You are on page 1of 11

Literature review. The literature review aims to highlight aspects of Human Resource Management in present times.

Motivation and Talent management are the two key concepts under the umbrella of Human Resource management discussed in this review three theories under Motivation is discussed which can be fruitful in motivating employees to reap profits for the organization. Talent management on the other hand deals with the issue of engaging employees and how to retain and recruit employees which could prove to be an asset in the future for the organization. This review takes into account the works of all the previous researchers who have researched in this field of management. Human Resource Management is a strategic collectively contribute to the achievement of its objective (Armstrong, 2004, p 3). If an organization uses its employees efficiently and capitalizes on their expertise it will meet its clearly defined objectives. Human Resource Management is basically concerned with recruiting, motivating and retaining employees and makes them an asset for the organization in the long run (Price, 2007, p 32-35) Motivation The process of motivation is a simple one but it is not the fact as different people have different needs, and different goals are set to achieve these needs. (Armstrong 2004, p 219). Thus every organization is concerned with what should be done in order to receive high levels of performance through people as of now many employees are demoralized which can cause harm to any organization and force it into losses. Means such as incentives and rewards may help to motivate employees in a positive manner so that they become assets to the organization they are working for. The ultimate goal is to create such an atmosphere wherein the employer is satisfied with his employee.

The components or constituents of motivation as noted by (Arnold, Robertson and cooper 1991, in Armstrong 2004, p 216) are direction, effort, persistence. Direction implies what the person is trying to do to make an effort to attain his set goal and eventually his target. Effort implies how hard the person is trying to attain his set goal that is how much of a hard work is he doing to attain the set goals. Persistence shows how long the person is willing to walk on the road which leads to his goal. Therefore the ultimate aim to motivate people or oneself is to make them tread on the direction that the employer wants them to and they too tend to move as they are lured by incentives and rewards that are provided according to the companys policies if the set goals are attained. While Arnold, Robertson and Cooper have described the constituents of motivation, (Maslow 1954 in Armstrong 2004 p. 219) in his traditional theory the needs-related model which analyses the process of motivation suggests that motivation is created by conscious or unconscious recognition of unsatisfied needs. The needs give rise to wants which are desires to achieve or obtain something. Then goals are set which it is believed will satisfy these needs and wants and a behavioural pathway is selected which it is expected will achieve the goal. If the goal is achieved the need is satisfied and the behaviour is likely to be followed the next time a similar need emerges but if the goal is not achieved then the action is less likely to be repeated. (Hull 1951, in Armstrong 2004) states that the process of repetition of successful behaviour is known as the law of effect. (Herzberg, Mausner, Synderman 1957 in Armstrong 2004 p. 224) on the other hand identifies two types of motivation as intrinsic motivation in which self generated factors like sense of responsibility, scope to use and develop skills drive employees to self motivate themselves and act in accordance. While in extrinsic motivation rewards, incentives play a major role in motivating the employees to make them act them in a particular direction.

There are three theories given by some eminent authors which are discussed in the lines given below the first being the Instrumentality Theory which states that It is impossible, through any long period of time; to get workmen to work much harder than the average men around them they are assured a large and permanent increase in their pay (Taylor 1911, in Armstrong 2004, p.218). The theory challenges the theoretical assumptions which stated that job satisfaction and dissatisfaction could be presented on the same band (Jones and Llyod 2005). This theory is based on the principle of reinforcement as influenced by the concept of conditioning which implies that the people can be conditioned to what work has been told to them if they are given any form of incentives for behaving in that particular manner. The theory states that reward and punishment is correlated that is if the objective or the goal is achieved then the employee should be rewarded but if he fails he should be punished in accordance to the applicable laws. However The theory fails to appreciate the fact that the formal control system can be seriously affected by the informal relationship existing between workers. (Armstrong 2004, p 219) While appreciating this theory given by Taylor, (Maslow 1954 in Armstrong 2004, p. 219) formulates yet another theory which states that, Needs are fundamental to the personality. The theory states that unsatisfied needs give rise to tensions and a state of disbalance. To restore balance a behavioural path which will ultimately fulfil the goal is selected. Like a new car which provides both transport as well as an opportunity to impress the neighbours. Likewise a new trendy mobile handset provides both means of communication and also creates envy among peers. According to the author a need can be satisfied by a number of different goals and stronger the need the longer is its duration and broader the range of possible goals.

The most famous classification of needs was formulated by the author consists of psychological, safety, social, esteem and self fulfilment needs. Psychological needs deals with essential commodities which are needed for individuals to survive. Safety needs caters to the protection of an individual against possible danger and if his basic psychological needs are deprived. Whereas Social needs are relevant as a human is a social animal and is required for an individual as it consists of love, affection and acceptance. Esteem needs caters to the need for an individual to have a stable, firmly based, high evaluation of oneself which is known as self esteem and gaining the respect of others as prestige. Self fulfilment implies to the need to develop potentialities and skills, to become what one believes he is capable of becoming. When a lower need is satisfied then the second highest need becomes dominant and the individual does what he can in order to fulfil the need. Like for example, an individual who achieves one target let say his weekly target then he is driven to do more labour in order to achieve more. Self-fulfilment is a need that possibly can never be satisfied and this thus justifies the statement given by the author, man is a wanting animal. In contrast to the above the theories (Herzberg, Mauser and Synderman 1957 in Armstrong 2004, p. 224) initiated another theory known to be the Herzberg Theory as a result of a probe into the sources of job satisfaction and dissatisfaction of accountants and engineers. The theory assumed that the employees could accurately justify the conditions which made them feel good or bad about the jobs they were/are doing. The authors found out that the good was merely concerned with the content of the job like incentives, awards, responsibility and advancement in particular. While on the other hand the bad was concerned with the context of the jobs mainly supervision of the job, company policy.

The wants of employees are divided into two groups one which is satisfied as they are effective in motivating the individual whereas the second group are the disatisfiers who serve primarily to prevent job satisfaction, having a little impact on job attitudes as said by the author. As one the above given theories one can see that the Instrumentality theory formulated by Taylor (1911) is based on crude attempts to motivate people by giving them rewards and incentives whereas the Content theory Maslow (1954) states that unsatisfied needs give a rise to motivation to achieve that goal at any cost. On the other hand Harzberg et al (1957) states that if incentives and rewards are not given to the employees for the work done it tends to increase dissatisfaction among them and to curb this rewards and incentives should be given to satisfy them. Taylor (1911) emphasizes on the whole only on work and work and nothing else. If reward is given for the work done the employee continues it or else quits. But Maslow (1954) states that unsatisfied needs are the motivators for the individual and they cease to be motivators once they are satisfied. On the other hand (Harzberg 1957 in Jones and Llyod 2005) state that the employee is satisfied when he senses achievement or his work has been recognized which further motivates him to work further. Talent Management-As motivation is important in any organization talent management also plays an important part. Talent management is the process of ensuring that the organization attracts, retains, motivates and develops the talented people it needs. This concept came into the forefront when the words the war for talent were coined. There are no changes in the processes which lead up to Talent management. The only difference is the development of a more coherent view to merge these processes together to acquire and nourish the talent at any point

of time it may be needed using uncountable interdependent policies and practices. (Armstrong 2004, p 387) (Lewis and Heckman 2006 in Hughes and Rog 2008) largely focus on sourcing, developing and rewarding the talent the employee has in him. The talent in every employee should be developed and nurtured. The goal of the HRM should be to increase the talent of all employees. As the authors say Talent Management may be viewed as an organizational mindset or culture in which employees are truly valued. The importance of Talent management lies in two basic reasons the first being that the companies or organisations retain their talented employees while the second being who should they be engaged. As (Morton 2005, p 11 in Hughes and Rog 2008) states Talent management is integral to engaging employees in the organization. Recruitment and retainment of talent is an important aspect of Talent Management as employees are fundamental to any organization. According to a recent survey conducted by (Deloitte 2005 in Hughes and Rog 2008) of human resource practioneers it was found out that the most important people management issues facing them now were the ability to attract and retain new talent. The authors rank the availability of talented managers/executives sixth amongst their top ten challenges of greatest concern. According to Powell and Wood (1999) recruitment and retention are the biggest challenges being faced by any other industry especially the hospitality industry as customer expectations is high. When the employees in this industry gain the customer skills required they tend to be absorbed in other industries where these skills are required. It can be said that hospitality industry employees can

easily get jobs elsewhere. (Baum 1995; Guerrier 1999; Riley 1996 in Hughes and Rog 2008). According to the authors further fuel is added to the recruitment and retention challenge being faced now are by the factors that have traditionally been characteristic of the industry and that have contributed to the perception that it is a less than ideal place to work. Other factors which contribute are management's traditional focus on minimizing labour costs,and lack of chances of promotion within the organization (Riley 1996 in Hughes and Rog 2008) the kind of work the people in the hospitality sector have to undergo (Guerrier and Pizam ,1999 in Hughes and Rog 2008) and poor working conditions in general for example long working hours, health and safety concerns, harassment. So what can be done to retain the employees? The talented staff should be given opportunities to for career development so that they can prove to be assets to the organization. Talent should be recognized and duly rewarded with incentives and other forms of rewarding. Regular talent audits should be conducted and the employees having potential in them but who have not been given a chance to show it have an opportunity to leave should be made to surface so that they do not leave the organization. A positive work environment also needs to be created in which the employee is appreciated. The employee must be felt to feel that there is a lot to improve in him and that also noticed and ears are also given to him for listening Morgan (2008). While providing effective recruitment and retention of employees an organizations talent management strategy should also provide opportunities for employee engagement. Employee Engagement-Employee engagement is a heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or co-workers that in turn influences him/her to apply additional discretionary effort to his/her work (Gibbons 2006 in Hughes and Rog 2008). A research done by (Hewitt and

Associates, 2004, p 12) states that engaged employees are those who provide for improvement in the business in the organization they are working for. These employees are loyal and speak well about their workplace. Therefore it can be said that if the employee is engaged he will speak positive and would want to stick with the organization and exert a higher level of effort which would result in customer satisfaction and increase business. Service sector organizations think that employees will be motivated to work just because they have been given money and hired. But according to the authors this thinking is backdated. Money is not the only factor which makes people work for an organization but there are other non-financial factors too like advancement as they see to what extent they can go in both in short term or long term basis. Employer commitment is another factor in which the employees feel that their employers are whole heartedly committed to their career advancement. A pleasant environment in a high pressure job is another factor. Employees tend to feel that there are senior people who would help them if needed and are praised when such an opportunity comes. When an employee is given some responsible work one feels that one is trusted and is important to that organization. All these elements contribute to the employees level of engagement and the engagement of talented people should be a top priority (Woodruffe 2006) (Morton 2004 in Hughes and Rog 2008) states that higher officials must take steps to promote talents and thus retain employees.Pairing talent management with strategic business goals is uniform with what was reccomended in the war for talent Hughes and Rog (2008) within which (Chambers, 1998, p 46) sated that organizations need to elevate talent management to a burning corporate priority. The orientation of talent management with the delibrate business goals of the organization can be helped incalculably through providing informative data, theoretically generated in part from workforce planning which would include scientific methods for recruitment, orientation, induction, training, promotional

and incentive schemes and other important areas like premature retirement schemes, golden handshake and similar long term HR policies. Conclusion-By going through the above given literature review one sees that motivation is a very important factor in reaping benefits for the organization. Taylor, Maslow and Herzberg in their theories have sated that incentives, needs and scope of development are important for an all round development of the organization. On the other hand Talent Management is also an effective policy to fight labour crisis. Effective talent management ensures that organizations can successfully acquire and retain essential talent and to the extent to which these employees are engaged. The ability to effectively address both of these issues has become a primary determinant of organizational success and in some cases, even survival. If this strategy is implemented successfully it could prove to be vital in retaining older employees and recruiting new employees as and when employees are satisfied they work well and speak well about the organization. Employees are engaged with the organization so that they may have an opportunity to enhance their skills further.

References: Armstrong, M. (2004) A handbook of Human Resource Management, 9th Edition, London, Kogan Page Limited. Bramham, J. (1998) Human Resource Planning, 2nd Edition, Institute of personnel and development. Dell, D. and Hickey, J. (2002), "Sustaining the Talent Quest: Getting and Keeping the Best People in Volatile Times", [online] Research Report 1318 and the Conference Board. Available at [accessed on 6th November 2008] Gibbons, J. (2006), "Employee Engagement: A Review of Current Research and Its Implications", [online] The Conference Board, New York, pp. 1-21. Available at [accessed on 6th November 2008] Hughes, J.C. and Rog, E. (2008), "Talent Management, A strategy for improving employee recruitment, retention and engagement within hospitality organizations",[ online] International Journal of Contemporary Hospitality, Vol. 20 No. 7, pp. 743-757. Available at [accessed on 8th November 2008] Jones, N.B. and Llyod G.C. (2005), "Does Herzbergs Motivation theory have staying power?" [online] Journal of management Development, Vol. 24 No.10, pp. 929-943. Available at [accessed on 8th November 2008]

Morgan, H.J. (2008), "Keeping your Talent, identifying and retaining your star employees. [online] Strategic Direction, Vol. 24 No.9, pp. 6-8. Available at [accessed on 8th November 2008] Tietjen, M.A. and Myers, R.M. (1998), "Motivation and job satisfaction" [online] Management Decision, Vol.36 No.4, pp. 226231. Available at [accessed on 10th November] Woodruff, C (2006) Human Resource Management International Digest, [online] Vol.14, No.1, pp. 3-5. Available at [accessed on 10th November 2008]