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The Significance of Talent Management for ABC Distribution


Discuss about the ABC Distribution Strategic Talent Management.

The ABC Distribution is a small distribution company, which is concerned with conducting business nationally. The company has been experiencing success in terms of its financial growth and the number of employees present in the company has grown from 20 to 90 over the time from 2012 to 2017. However, the succession planning and internationalization process has posed to be a hindrance in the process of development of talent management. This paper aims to study and analyze the need and importance of better talent in the organization, understanding the key areas affecting the talent management process and providing recommendations on the changes that need to take place in order to bring in the necessary talent.

Talent management is the process of recruitment, management, development and retention of employees, necessary for the long-term growth of an organization (Al Ariss et al., 173-179). In case of ABC Distribution, the talent management process is of great significance, as it would add to an increase in the productivity of the firm with an increase in the processes of growth and innovation. The presence of a trained and skilled workforce reduces the consumption of time and errors, making the production process cost effective. Since the organization is involved in client meetings and sales processes, the presence of motivated employees would help increase the levels of customer satisfaction.

Due to the nature of importance of talent management in the organization, the senior management or the decision makers (executive managers/Directors), need to be informed and aware of the deteriorating situation the organization currently is facing. The high rates of staff rotation, lack of proper technological resources, and the succession planning and international business expansion process- all have lead to alarming rates of employees leaving the organization. The replacement of an employee directly involved in sales or interaction with clients/consumers, establish good relationships with the customers and would affect the sales process greatly on quitting the organization. The development of necessary talent would provide a scope for producing skilled successors in key management positions. Thus, the information should be conveyed in a manner to the management that addresses the present status of the organization, the problems it is facing and the relevance of talent management for increasing the sales.

The decision to introduce talent management in an organization has its own positive and negative aspects and discontent may arise in employees who are not part of the program. Therefore, for the role of a Human Resource manager, it is important to maintain a transparency of communication, which would help in properly addressing the causes of dissatisfaction among employees as well as informing the employees who are to be retained by the organization.

Factors Hindering Talent Management in ABC Distribution

In order to define a strategic vision of talent to the mid-levels of management, there are certain steps that need to be adopted. They are as follows:-

  • Understanding the company goals and objectives- All aspects regarding to the market position, the potential consumers, competition analysis, strengths and weaknesses of the organization need to be examined (Nankervis et al., "Human resource management: strategy and practice.").
  • Managing the internal talent- The internal talent can be managed through the analysis of the skills, levels of competency, experiences and talents of the employees working within the organization (Elegbe and Joel Alemibola, “Talent management in the developing world: Adopting a global perspective.”).
  • Employer branding- An organization that has a good reputation or goodwill is susceptible to gain a favorable position in the market and attract a pool of quality employees (Figurska, Irena, and Ewa Matuska, "Employer Branding As A Human Resources Management Strategy.").
  • Improving relationships with candidates- Maintaining a positive relationship with candidates, regardless of the outcome of their selection process allows more and more individuals to be interested in joining the organization.

The reason staff may leave a company depends on a number of causes. Some of these are as follows:-

  • Lack of motivation- The lack of motivation in employees is mainly caused due to lack of communication and proper flow of information in the organization. Lack of motivation in employees gives rise to unproductive work and ultimately leads to the employee resigning from the organization (Taylor, 19).
  • Lack of proper future- If the financial position of the organization is in a threatening position or the company has been losing out to its competition on a frequent basis, employees feel threatened since it questions the long-term growth of the organization. Apart from this, employees may also leave in order to look for better job positions.
  • Lack of skills and training- The lack of proper skills and training may cause inconvenience in work for an employee, leading to lack of motivation and interest in performing the given job role.
  • Inability to perform- The lack of proper skills and expertise may not allow an employee to perform his job efficiently. It can also take place by assigning an employee in a field that he knows very little or nothing about.
  • Lack of loyalty- Loyalty is a rare quality possessed by individuals in recent times, and is almost absent in the employer and employees in today’s time and both individuals constantly looking for better means and opportunities.
  • Changes in core management decisions- A change in the core management policy or changes in the management may affect an employee’s decision to continue working in an organization in the future.
  • Stress- The rotation of staff to various departments within an organization increases the amount of work significantly with an increase in the levels of stress in employees and may cause the employee to quit.

The staff rotation process is very time consuming and a lot of time is wasted in motivating and persuading the employees for rotation of their job roles. Employees also need time to settle down in their new job role and be familiar with the co-workers. It adds to an increase in the levels of stress and anxiety of employees, since most employees wish to perform within their comfort zone and in a familiar environment. In case the process is forced on by the organization, it may lead to wastage of time training unfit and unwilling employees to take up the job role. It is due to all of these reasons, that high levels of staff rotation make it difficult to implement a talent management process in ABC Distribution.

The retention of employees in ABC Distribution can be achieved via the following ways:-

  • Good flow of communication- The presence of good flow of communication allows the employees to be aware of the changes in company policy and objectives. Listening to the ideas and opinions of employees regarding various decisions helps to make them feel more important and increases motivation and active participation in work.
  • Rewards system- Rewarding employees for their hard work and contribution towards the organization make the employees feel more respected and worthwhile (Deery, Margaret, and Leo Jago, 453-472). Employees who feel that their work is underappreciated may look for potential jobs elsewhere.
  • Conduct employee development programs- It helps in developing new skills in employees and training them to be more efficient in the work performed by them. Instead of managing employees, emphasis should be given on the quality of the task performed and how it could be enhanced further (Douthitt, Shane, and Scott Mondore, 16.).
  • Providing opportunities for growth- The internal environment needs to be scanned frequently to provide higher positions of job role to deserving employees. The interested employees may take up the promotion offer and this creates a sense of loyalty and respect in the employees regarding the business organization (Oladapo, 19).
  • Performance reviews- Performance reviews help evaluate the skills and work done by an employee and it informs him about his strengths and the areas he needs to focus more on. It helps the employees to know what the organization or the job demands from them and develop the necessary skills or receive training accordingly (Thunnissen et al., 326-336.).

Being a Human Resources specialist in talent management, a number tools can be used to try and attract the right talent candidates for ABC Distribution. They are as follows:-

  • Clearly defined objectives- An organization that has good communication flow and informs its employees about the objectives that are to be achieved, it results in the maximum utilization of the workforce. It also helps the employees to be clearly aware of their position and job role in the organization (Cappelli, Peter and J. R. Keller, 305-331.).
  • Coaching- It helps in establishing healthy relationships with employees and motivating and inspiring them to work hard towards achieving the organizational goals. The executive trainers assess the employees and they develop new skills (Sparrow et al., 177-212).
  • Diversity of workforce- The diversification of workforce helps remove differences in ethnicity, caste, culture, gender and age. It provides a wider scope of providing customer service and catering to all sections of the crowd (Thunnissen and Marian, 326-336).
  • Retention- Losing out experienced and skilled employees to competition or other organizations is a great drawback for any business. Therefore, it is important to retain employees and this can be achieved by the implementation of proper compensation, safe and comfortable work environment and offering the employees a chance to progress or advance (Chitsaz-Isfahani, Ali, and Hamid Reza Boustani, 114).
  • Effective recruitment process- The recruitment of new employees to a organization brings in new talent and fresh new ideas and thoughts, vital to the workings of the organization. It also helps to focus more on the requirements of the organization and the employees are selected in accordance with their skills and training (Meyers et al., 305-321.).

The presence of technological resources is an important and essential part of any business organization in recent times. ABC Distribution, makes use of outdated methods to communicate with its clients and completely ignores the usage of any form of hardware or software, be it smart-phones, tablets, social media and so on. This affects the efficiency of business since the presence of technological resources serves as a great advantage to business organizations (Benitez-Amado et al., 207-220). It helps to ease the communication process making it less time consuming and cost effective. Apart from this, it also helps in maintaining good communication flow between the organization and its employees as well as suppliers, factory workers and others. The presence of technological resources helps to strengthen the security of an organization by securing confidential files and reports on a digital database. Lastly, it enables business organizations to conduct research on the present market conditions and stay a step ahead of competition.

As a Human Resources Manager of ABC Distribution, the following recommendations are to be provided to the executive heads regarding the importance and implementation of technological resources. They are as follows:-

  • The use of an online database to store confidential files, reports and executive decisions which if leaked, may affect the operations of the organization.
  • The presence of a website for ABC Distribution would help in communicating freely with consumers and would add to the improved brand value of the organization.
  • A common portal or application being used to communicate all decisions, objectives and policies to all employees of the organization at once cutting down time and cost and reducing the chances of confusion and miscommunication.

Recommendations for Improving Talent Management in ABC Distribution

The task of approaching and convincing the executive heads of an organization is a difficult one. However, the present status of ABC Distributions is alarming in nature and needs to be addressed promptly failing to do which would affect the implementation of a talent management strategy. This can done via the following ways:-

  • Brief and to the point message.
  • Creating a presentation or slide containing a summary of the issues to be addressed.
  • Rehearse on the speech that needs to be delivered beforehand.
  • Provide a detailed information of all the threats currently faced by the organization and how it can be solved. All topics should be covered carefully without missing out on important information.

The implementation of a successful talent management process requires the presence of a few essential prerequisites. They are as follows:-

  • Clarify the company’s strategic vision- In other words; the employees should be aware of the workings of the organization and the set of goals and objectives that are to be achieved by the organization within a given time.
  • Changes in internal environment- The constant changes in leadership affect the decision making process and workings of an organization (Bryant, Phil C and David G. Allen, 171-175). Although ABC Distribution is expanding its business internationally, it maintains a SME culture and functions through ‘silos’. These factors needs to be considered and resolved before implementing a talent management strategy.
  • External factors- The presence of SME culture has affected the organization and its operations since the organization is currently undergoing the process of expansion. Since the business is undergoing international expansion, new laws, policies, decisions, new market and competitors are the external factors that need consideration before the implementation of a talent management strategy.


Thus the conclusion can be drawn that the implementation of a talent management strategy serves as an important aspect for the growth and success of an organization. However in the given case study, ABC Distributions is currently being affected by a number of factors that do not permit the implementation of a talent management strategy and the employee retention rates are alarmingly high. Therefore, these issues need to be addressed to the executive heads and necessary steps taken to ensure the growth and survival of the organization as well as bringing in a skilled and talented workforce.


Al Ariss, Akram, Wayne F. Cascio, and Jaap Paauwe. "Talent management: Current theories and future research directions." Journal of World Business 49.2 (2014): 173-179.

Cappelli, Peter, and J. R. Keller. "Talent management: Conceptual approaches and practical challenges." Annu. Rev. Organ. Psychol. Organ. Behav. 1.1 (2014): 305-331.

Thunnissen, Marian, Paul Boselie, and Ben Fruytier. "Talent management and the relevance of context: Towards a pluralistic approach." Human Resource Management Review23.4 (2013): 326-336.

Nankervis, Alan R., et al. "Human resource management: strategy and practice." (2013).

Meyers, M. Christina, Marianne van Woerkom, and Nicky Dries. "Talent—Innate or acquired? Theoretical considerations and their implications for talent management." Human Resource Management Review 23.4 (2013): 305-321.         

Oladapo, Victor. "The impact of talent management on retention." Journal of business studies quarterly 5.3 (2014): 19.

Figurska, Irena, and Ewa Matuska. "EMPLOYER BRANDING AS A HUMAN RESOURCES MANAGEMENT STRATEGY." Human resources management & Ergonomics 7.2 (2013).

Douthitt, Shane, and Scott Mondore. "Creating a business-focused HR function with analytics and integrated talent management." People and Strategy 36.4 (2014): 16.

Deery, Margaret, and Leo Jago. "Revisiting talent management, work-life balance and retention strategies." International Journal of Contemporary Hospitality Management 27.3 (2015): 453-472.

Thunnissen, Marian. "Talent management: For what, how and how well? An empirical exploration of talent management in practice." Employee Relations 38.1 (2016): 57-72.

Chitsaz-Isfahani, Ali, and Hamid Reza Boustani. "Effects of talent management on employees retention: The mediate effect of organizational trust." International Journal of Academic Research in Economics and Management Sciences3.5 (2014): 114.

Benitez-Amado, Jose, F. Javier Llorens-Montes, and Virginia Fernandez-Perez. "IT impact on talent management and operational environmental sustainability." Information Technology and Management 16.3 (2015): 207-220.

Taylor, Stephen. Resourcing and talent management. Kogan Page Publishers, 2014.

Sparrow, Paul, Martin Hird, and Cary L. Cooper. "Strategic Talent Management." Do We Need HR?. Palgrave Macmillan, London, 2015. 177-212.

Bryant, Phil C., and David G. Allen. "Compensation, benefits and employee turnover: HR strategies for retaining top talent." Compensation & Benefits Review 45.3 (2013): 171-175.

Elegbe, Joel Alemibola. Talent management in the developing world: Adopting a global perspective. Routledge, 2016.

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