Executive Summary
The retail industry is focusing on the talent management process, and companies are shaping the business strategy, which can be aligned with the talent management strategy. After understanding the talent management and cultural perspective, the study has evaluated the cost leadership strategy (Business Strategy) of the company and depicted its alignment. It is a perfect example, which has been derived from Wal-Mart Company. Furthermore, every firm in retail industry contains a unique method to develop talent. Comprehensive insights regarding the cultural integrations to develop people have been illustrated. Global organizations are facing several issues or challenges in managing and developing talent. QUAD model, Hofstede’s cultural dimensions theory, and recruitment concepts have been applied to obtain some challenges. Some recommendations are provided, which can help companies in retail industries hire and retain the best people.
Introduction
Every organization needs talented employees at a workplace to produce high-quality outputs. In this modern business era, the management of the companies usually considers the success of the company with the perspective of employees. On the other hand, if employees are effectively engaged by the company, the chances of success increase. This study revolves around the cultural perspective on talent management (Bolander, Asplund and Werr, 2014).The objective of the study is to portray the relationship between talent management with the cultural integration. It seems relevant to understand the perspective and link it with two different talent management concepts. The link between business strategy and talent strategy and developing talent are two main concepts, which are to be evaluated in this study. Of course, some issues or approaches in managing and developing talent in the global business are in the limelight. Different theories and concepts such as performances management, QUAD model, including planning, acquiring, developing and retaining, and Hofstede’s cultural dimensions theory, including several dimensions of cultures, are interpreted (Lakshman, Lakshman and Estay, 2017).
Cultural Perspective and Talent Management
Talent management indicates the intention of organizations to hire, recruit, develop, and retain the talented and superior employees. Accordingly, the management usually develops an organizational culture, which facilitates the talent development process. For Instance, when an organization hires people, talent managers must have to train employees to integrate with the culture of the company. Employees must use their skills, abilities, and potential and know the limitations of better cultural integrations (Egerová et al., 2015).
Normally, in an international business, the management has to deal with different employees, consisting different cultural values. The employee diversity is a good source for the management to identify employees, which are capable to integrate with the culture of organizations. The cultural perspective seems more visible when a manager hires employees from the different culture and makes human resources strategies. The talent management perspective is developing employee behavior, skills, and abilities to work in a dynamic business environment (Seopa, Wöcke and Leeds, 2015).
The linkage between talent strategy and business strategy is being discussed hereunder.
The Links between Business Strategy and Talent Strategy
Country: The United States, Industry: Retail, Examples: (Wal-Mart & Target)
The company depicts the business strategy to the success and competitive advantage. In the business strategy, contributions of employees are quite visible. For example, in the retail industry, Wal-Mart Company contains a cost leadership, business strategy to come up with low-cost products and services for customers (Borisova et al., 2017). Remarkably, this organization has an exceptional employee team to adopt and develop several work traits and measures to keep the cost of process low. It is possible due to the talented employee (Oppong and Gold, 2016). With the perspective of culture, for instance, health and financial benefits, mentoring programs and talent acquisition are some powerful sources to meet the goal, as far as the cost leadership strategy of the company is concerned. Critically, the business strategy has been linked to the talent strategy of the organization (Burbach and Royle, 2010). It relies on the management that how it hires and develops the employees to enable low-cost products. In Wal-Mart, the employee knows the purpose of training and development and other talent consideration, which makes this integration quite successful (Ross, 2013).
In the retail industry and the link between talent and strategy seems worthy. For example, Target, a prominent discounted store in the United States, expresses “cheap-chic “business strategy (Comparatively low-cost products). Disparagingly, this business strategy has been translated into the organizational capabilities to accelerate the talent investment decisions. Target knows that its human resource department can maintain and develop talent to align with this strategy (Buttiens and Hondeghem, 2015).
Interpreting the link between business strategy and talent management, the organization usually intends to increase the performances through integrating the employees with business objectives or strategies. When the firm makes a business strategy, the talent alignment is the best practices to execute plans. For Instance, if the firm focuses on the market-is driven business strategy, it usually has several employees which can integrate with modern market and customer trends. Usually, there is a need to congruent the employee goals with each department in the company to justify this link in an effective manner (Sharma and Bhatnagar, 2009).
Performance Management
Furthermore, performance management is an appropriate concept to link the business strategy with the talent. When an organization makes business strategies, it can evaluate the performance of employees in the context of the business strategy. If an employee is performing well to meet the goals and objectives according to the strategy, he can be ranked and rewarded accordingly. Concerning this intention, training and development to groom and motivate employees to perform better is also a talent management practice, which links with the business strategy (Green, 2015).
Developing Talent
Different organizations use different strategies to develop talent. The talent strategy becomes a part of the culture in the company. In Wal-Mart, the participative decision-making process is the main part of the culture. Management engages employees on the different issue to find the solutions. Concerning the talent development, the culture of the company to work with the employees and derive their personal interests by making an individual development plan worked for this company (Chodorek, 2012). In competitive retail industry, the management exists in a culture, which empowers the employee to improve performances. In other words, employees are recognized due to their performances. Thus, the best way with this company to develop talent is to identify or create the performance metrics. The purpose is to ensure that employees are meeting the company goals and objectives according to the expectations (Ganapathy, 2012).
Another example of the retail industry can be elaborated. The part of talent strategy in the company is to provide several opportunities to employees to perform outside their main job functions (Cooke, Saini and Wang, 2014). Sales assistant in the company usually shares his experience along with good insights. The sales assistant in the store is trained and developed to manage other areas of work in the absence of any other employee. Multitasking is also a prominent aspect of Wal-Mart culture, and it has been justified in an effective manner (van Zyl, Mathafena, and Ras, 2017).
QUAD Model
Modern organizations frequently use the QUAD model to develop the talent. The QUAD model includes planning, acquiring, developing, and retaining regarding employees in the company. The role of management in planning process seems crucial, as it has to identify different talent levels and required capabilities. Especially in the retail industry, in the acquiring process, employee are attracted through several talent management strategies, in retail, the big reason for employee retention is the talent management strategies. In the development process, coaching, mentoring and other performances management tools are better groom the talent. In last, for instance, Wal-Mart, target, and other retail giants retained employees through pertinent incentives and rewards, as the purpose is to keep the best talent to meet goals and objectives (Van Zyl, Mathafena, and Ras, 2017).
Approaches/Issues in Developing and Managing Talent in Global Businesses
Cultural Differences
In global business, the talent management faces various problems to manage and develop the talent. Due to diversity in the workplace, the management faces issues in the cultural integration process. (Rudhumbu, 2014). In the international business context, the management, especially in the retail industry, develops different work teams. With the perspective of culture differences, development of these teams is effective, but the biggest issue is ambiguous. When developing talent through training and development process, employee, due to different thinking and perception may understand things, which an organization usually does not intend to convey (Lenartowicz, Johnson, and Konopaske, 2014).
For example, in the retail industry, the companies operate different stores in different regions. Due to the cultural difference, the management may face the issue in developing the culture of listening. Possibly, employees are so certain of their values and beliefs, which may restrain them from listening to the company speakers. (Burbach and Royle, 2010).
For example, Wal-Mart has different employees, which are introvert and close-minded. When an Asian individual gets hired in this company, he may not show his talent effectively due to a new culture, as he has never experienced it (De Vos and Dries, 2013). Similarly, in the talent development process, the employee may not be assertive in the company. It is a depiction of inflexible attitude, which hits the talent management strategy when conducting the international business operations (Kathirvel and Febiula, 2017).
To understand the cultural differences, prominent factors of Hofstede’s cultural dimensions theory are illustrated
Hofstede’s cultural dimensions theory
Individualistic
Wal-Mart, in the retail industry, has considered different cultural; factors to retain employees and enhance overall performances of the business. The Wal-Mart management has prioritized needs of employees at the workplace. Aligning the needs of an individual with the organization goal, especially in the Individualistic culture is the best technique to retain and develop. In the United States, it is quite visible (Swoboda and Hirschmann, 2017).
Masculine/Feminine
In the global business operations, the company has to face different rules for men and women. Thus, Wal-Mart has to deal with a different talent and development strategies to justify this cultural differences, especially in developing and traditional countries (Glastra and Meerman, 2012).
Uncertainty avoidance
Uncertainty avoidance is another cultural dominion, which has been observed in different retail companies. Wal-Mart employees have less resistance to change, as they use to try new things to meet galas of the company. HR management usually does not have any issue with the change process. It is a part of the culture in which employees look assertive and aggressive (Harvey, 2014).
Power Distance
Power distance is less in the United States, and it has helped retail companies. In Asian countries, Wal-Mart has to be autocratic, and in western culture, it has to be democratic. Some people in the organization are comfortable when they are influenced. Conversely, in other cultures like the United States and Europe, people like to work independently. Thus, due to these cultural dimensions, separated talent strategies can be made (Kucza and Gebauer, 2011).
Time Perspective
People in different cultures usually plan for a long run. When developing and retaining the talent, there is a need for the long-term strategic plan, as it also integrates with intentions of people (Kunasegaran et al., 2016).
Indulgence/ restraint
A strict and relaxed social norm is another dimension. It is better to exist in a culture, which depicts life enjoyment and fun instead to strictly directed norm. Developing the talent in this culture is workable due to employee assertiveness (Meagher and Prasad, 2016).
Recruitment Considerations
The global business regarding the talent management and development needs an effective and workable recruitment process. The recruitment concept is triggered by the global talent management. For example, in Wal-Mart, as described earlier, the management invests heavily in the formation of business strategy and context and hire and develop the talent (Garavan, Carbery, and Rock, 2012). However, in sluggish economic conditions, the Wal-Mart management has terminated many employees. Only important people in leadership positions and the workplace were kept, and remaining was sacked by the top management. Investing heavily cannot be justified due to the poor economic conditions in the country. Mostly, companies stop the talent management process in the countries due to several business uncertainties. Thus, managing and developing talent is risky in the global business operations (Gálová and Horská, 2015).
Conclusion
In the end, it is to conclude that the developing talent is in the best interest of the company in the international business. Despite having differences in cultural values, it is important to develop people to integrate with the company’s strategy. The existence of the company in the international market, especially retail, is based on the best people, which can implement the strategies (Ibeh and Debrah, 2011). The study illustrates the cultural perspective on business strategy and talent management and the talent development process. To elaborate the global challenges in this process, some prominent theories along with some examples and insights have been presented to derive results. Talent and culture are related to each other, and every organization should quite up to it (Kontoghiorghes, 2016).
Recommendations
To keep the best people in the company, it is recommended that the management must go beyond the regular appraisal system in the company. In the decision-making process, open discussion policy recommended as the best approach, which helps key stakeholders of the company to take an active part in the decision-making process (Chodorek, 2012). Leveraging the HR technology is also a good choice for retail companies to enable a consistent, effective and lucrative talent management programs for a long run. Through providing the development opportunities to employees, the management can find assertive employees, which can be retained (Devins and Gold, 2014).
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