Talent management in Cross Cultural Context with Special reference to Nurses in Hospitals

Introduction: Talent management is increasingly identified as a critical success factor in the corporate world. The topic came to prominence in the late 1990s when a group of McKinsey consultants coined the term The War for Talent (for a summary see Michaels,HandficldJones and Axelrod, 2001). The typical focus of talent management is on differentiated performance. For the McKinsey consultants this differentiation related to individual employee performance. The key focus of this approach is that all roles within the organisation should be filled with A performers*, referred to as topgrading* (Smart, 1999) and it emphasizes the management ofC players, or consistently poor performers, out of the organization (Michaels. Ilandfield-Jones and Axelrod, 2001). Appositely an emerging stream focuses on the differentiation of positions. The emphasis here is on the identification of key positions which have the potential to differentially impact the competitive advantage of the firm (Boudreau and Ramstad, 2007; Huselid etal.. 2005)The point of departure is identification of key positions rather than talented individuals per se (see also Collings and Mellahi, 2009).Research suggests that interest in global talent management has increased considerably in the past decade (Scullion, Collings and Caligiuri, 2010, Farndalc et ai, 2010). A recent report highlighted the growing interest in talent management among Chief Executive Officers (CEOs) and suggested that 70 per cent of corporate leaders spend more than 20 per cent of their time on talent management activities (Economist Intelligence Unit. 2006). Similarly, Price waterhouseCoopers' I l,h annual global survey showed that almost 90 percent of CEOs surveyed put the people agenda as one of their top priorities (Price

waterhouseCoopers, 2008). Notwithstanding this, the Boston Consulting Group (2007) identified wide differences between the rhetoric and reality of talent management in practice and showed that while firms recognized the importance of talent management, they often lacked the competence required to manage it effectively. Commenting on the global financial crisis Beechler and Woodward (2009) concluded that talent remains a criticalagenda item' for key organizational decision makers. Thus, the global recession and resultant restructuring has increased the emphasis on talent and high value

employees for many firms (Guthridge etal ., 2008. Famdaleetai, 2010). However, while practitioners interest in the topic of talent management has grown rapidly over the last decade, surprisingly, academic research on the area has developed more slowly. This book builds on a number of recent contributions to the global talent

Factors influencing the growth of global talent management: (Need for Cross Cultural Talent Management )
Global talent management has emerged in recent years as a key strategic issue for multinational corporations (MNCs) for several reasons. Some of these have been outlined by Scullion, Codings and Caligiuri (2010) and are developed further below. The effective management of human resources is increasingly being recognized as a major determinant of success or failure in international business. In this regard, there is a growing recognition both of the critical role played by globally competent managerial talent in ensuring the success of MNEs reflecting the intensification of global competition and the greater need for international learning and innovation in MNCs (Bartlett and Ghoshal, 1989). Indeed there is a growing recognition that the success of global business depends most importantly on the quality of management in the MNC (Black et al., 2000; Scullion and Starkey, 2000; Codings el al., 2007). However, shortages of international managers have become an increasing problem for international firms and have been a significant constraint on the implementation of global strategies (Scullion, 1994; Cohn et al., 2005; Stahl et al., 2007; Famdale et al., 2010). Indeed, shortages of managerial and professional talent have emerged as a key HR challenge facing the majority of MNCs (Bjorkman and Lervik, 2007; Scullion, 1994) and research highlights that shortages of leadership talent are a major obstacle facing many companies as they seek to operate successfully on a global scale (Scullion and Brewster, 2001; Stahl et al., 2007). Competition between employers for talent has shifted from the country level to the regional and global levels (Sparrow et al., 2004). There is a growing recognition that MNCs need to manage talent on a global basis to remain competitive and that talent may be located in different parts of their global operations (Ready and Conger, 2007). MNCs are facing growing difficulties in recruiting and retaining the necessary

managerial talent for their global operations and increasingly MNCs compete for the same global talent pool. Talent management issues are becoming increasingly significant in a far wider range of organizations than previously due to the rapid growth in internationalization of small and medium-sized enterprises (SME) and the emergence of micromultinationals* in recent years (Dimitratos et a I., 2003). Research highlights the importance of developing a global mindset among the top management team, in such international SMEs and the importance of succession planning in family owned SMEs (Anderson and Boocock, 2002). Demographic trends also influence the nature of the talent management challenges facing organizations. Declining birthrates and increasing longevity are the key demographic trends driving a rapid shift in the age distribution of the general population and also the supply of labour (Taylor and Napier, 2005). In addition, the baby boom generation are aging with Europe and Japan facing the most dramatic shift in population profiles and old age dependency ratios (Beechler and Woodward. 2009). Research has highlighted rapid shifts in the demographic profiles of many countries. For example, many European countries face rapidly aging populations and changing demographics and for example, countries such as US, Germany, Italy and Japan will experience a significant decline in the number of workers aged 35-44 years over the next decade (Stahl et a I., 2007). The US will soon have a population dominated by immigrants or secondgeneration young people with a non-European background. The problem of uneven gender balances is a major challenge for China as the one-child policy has resulted in more boys than girls thus altering the balance of men to women. These trends affect such issues as the types of employees that will be available to employers, and as the labour supply declines in some countries, firms may have to change their recruitment strategies (see also Tarique and Schuler, 2010). Another factor impacting on global talent management is that companies operating in a globalized environment increasingly face the challenge of managing highly diverse employee groups (Briscoe et al., 2009). It has been argued that the level of ethnic, cultural, generational and gender diversity of individuals working within organizations is increasing (Beechler and Woodward, 2009). For example, there is increasing gender

diversity with female labour force participation rates increasing significantly across the world. However, research highlights that women continue to be seriously underrepresented in senior international management positions (Linchan and Scullion, 2008), despite research w'hich shows the performance benefits of having women in senior management positions (Jacobs, 2005). Global talent management is also influenced by the increasing mobility of people across geographical and cultural boundaries which results from globalization and lower barriers to immigration and emigration (Tung and Lazarova, 2007). These flows of labour are also stimulated by wide differences in levels of economic development between countries and in real wage rates. The trend towards greater mobility is higher amongst professionals and high skilled workers and migration (flows of such people are known as brain drain) as these talents have much larger emigration rates than for medium-skilled workers (Tung and Lazarova, 2007). The greater integration of labour markets across the world, which is largely driven by foreign direct investment, also increases global labour flow. Research suggests that reverse migration is becoming more significant in recent years with many countries seeking to encourage returnee immigrants due to their international management experience and networks as well as their social capital in the domestic market (Tung and Lazarova. 2006). Countries which have traditionally been exporters of skilled workers are increasingly seeking to convert 'brain drain* into talent flow by proactively encouraging reverse migration (Carre/a/., 2005). This offers the opportunity to both foreign-owned and indigenous firms in these economies to recruit from this pool which may have significant expertise and potential. One trend resulting from the current recessionary climate is corporate rationalization and downsizing, meaning that professionals and managers are increasingly trading security for flexibility and becoming less dependent on a single employer (Sparrow et at., 2004). Trust between employer and employees is decreasing and the traditional social contract

MANAGERIAL IMPLICATIONS FOR HUMAN RESOURCE PRACTITIONERS (STRATEGIES) This review shows that global talent management is an important function for HR practitioners as organizations grapple with the new era of talent shortages and how best

to attract, retain, develop, and mobilize talent. Our findings have clear implications for global talent management in multinational organizations, specifically for: Global talent planning; and Embracing six principles. Focus on Global Talent Planning In the current environment where the economic, political, and financial conditions are changing so rapidly, it is important for multinational organizations to scan the environment on a continuing basis to better understand the nature of changes in the workforce demographics, job structures, and labor markets, both locally and globally to identify key gaps between the available talent and the talent required to support organizational goals and objectives. Global talent planning should become an integral part of human resource planning.

Need for a Global Talent Management Officer.Consistent with the recommendation of Heidrick& Struggles (Strategic Talent Management. The emergence of a new discipline, 2012), it is critical for multinational organizations to create a position of chief global talent management officer (CTMO) and have a dedicated staff to assist the CTMO with the coordination and facilitation of organization-wide global talent management practices.Multinational organizations with a large and formalized global talent management responsibility are more likely to benefit from having a CTMO than are smaller, mainly domestic organizations.

Need for Workforce Differentiation/Segmentation. At the heart of global talent management is the assumption that organization should treat highly valuable and most talented employees differently. Thus it is important for organizations to identify who the talented individuals are. This can be done by dividing employees into A, B and C player categories and providing different global talent management practices for each.

Design Global Talent Management Systems Using Best Policies. Consistent with research done by Stahl and colleagues (2012; 2007) there are certain global talent management policies that can be considered best policies (consistent with our literature review, specific practices may best be conceived and implemented at the local level). These global talent management policies can guide multinational organizations in terms of designing global talent management systems.Examples of these policies include:

Attracting Talent Recruit using a talent pool strategy which means hiring the most talented individuals and then place them into critical positions. It is highly recommended not recruit specific people for specific positions; Develop partnerships with talent producers such as universities and business schools; and Be highly selective in hiring.

Developing Talent

Leadership development is a priority; Promotion from within; and Individual development aligned with succession planning.

Retaining Talent Personalized career plans; Flexible work arrangements; and Attention to attrition rates by performance levels.

In addition to these aspects of global talent planning that HR practitioners may wish to focus on, are six guiding principles to consider.

Embrace Six Guiding Global Talent Management Principles Stahl and colleagues (2012), in addition to their best policy suggestions, they suggest six principles that should be considered in an effective global talent management initiative. They include: Align Talent strategy with business strategy, values, and organizational culture; Design global talent management systems so that the various practices in the system support each other. The combination of practices should lead to a whole that is that is more than the sum of its parts; Make talent management a critical part of organizational culture;

Involve and encourage senior leaders and managers at all levels to be involved in the talent management process;

Find the optimal balance between global integration (e.g., similar talent management practices across regions) and localization (adapt talent management practices to the local conditions); and

Improve and differentiateto attract talent.

Cost Organizations havo not boon as successful in managing women and racioethnic minorities (racially and/or ethnically different from the white/Anglo majority) as white males. Date shows that turnover and absenteeism are often higher among women and racioethnic minorities than for white males. For example, one study reported that the overall turnover rate for blacks in the United States workforce is forty percent higher than for whites. Also, Coming Glass recently reported that between 1980-87, turnover among women in professional jobs was double that of men, and the rates for blacks were 2.5 times those of whites. A two-to one ratio for women/men turnover was also cited by Felice Schwartz in her article on multiple career tracks for women in management.4 lob satisfaction levels are also often lower for minorities. A recent study that measured job satisfaction among black and white MBAs revealed that blacks were significantly less satisfied -with their overall careers and advancement than whites.5 Frustration over career growth and cultural conflict with the dominant, white-male culture may be the major factor behind the different satisfaction levels. Two recent surveys of male and female managers in large American companies found that although women expressed a much higher probability

of leaving their current employer than men, and had higher actual turnover rates, their primary reasons for quitting wore lack of career growth opportunity or dissatisfaction with rates of progress. One of the surveys also discovered that women have higher actual turnover rates at all ages, and not just during the child-bearing and child-rearing years.6

Global Talent Challenges and Global Talent Management

In todays rapidly moving, extremely uncertain, and highly competitive global environment, firms worldwide are encountering numerous global talent challenges. Global talent challenges are significant (strategic and high impact) HR-embedded business issues that focus on managing a firm to ensure just the right amount of the right talent and motivation, at the right place, at the right price, during all economic and financial ups and downs in a very competitive world for the purposes of balancing the workforce with the needs of the firm in the short term, and positioning the firm to have the workforce needed in the long term (Schuler, et al., 2011). Global talent challenges emerge in the context of a dynamic environment. Among the many factors that shape the specific challenges and responses of particular firms are: (a) globalization, (b) changing demographics, (c) demand for workers with needed competencies and motivation, and (d) the supply of those needed competencies and motivation (Beechler and Woodward, 2009;Scullion and Collings, 2011). To provide support for the emergence of the global talent challenges presented, we describe these forces and shapers in more detail in the following paragraphs. To successfully address global talent challenges, firms can and must take advantage of a wide variety of HR policies and practices (and an expanded number from those associated with the traditional approach to GTM (Scullion and Collings, 2011)). Conceptualized broadly, global talent management refers to the systematic use of specific HR policies and practices to manage the several global talent challenges that a firm confronts. These include specific aspects of HR policies and practices related to location and relocation management, planning and forecasting, staffing (to include attracting, selecting, retaining,

reducing and removing), training and developing, and evaluating employees consistent with a firms strategic directions while taking into account the evolving concerns of the workforce and regulatory requirements. Major Forces and Shapers of the Global Talent Challenges In the discussion and conceptualization of global talent challenges, context is extremely important. Figure 1 depicts the framework of the major contextual forces and shapers of GTCs and several HR policies and practices used in crafting global management talent initiatives to manage global talent challenges. We propose that an understanding of the realities and trends of these

contextual forces and shapers is essential to identifying the GTCs and crafting the appropriate GTM initiatives. Thus we want to initiate that understanding here and identify sources of information that can be used to stay informed of the new realities and trends Globalization: World Trade/Wage Differentials, Competition,

Customers/Markets, Individuals Globalization is a concept that people use when referring to many different phenomena. Of particular relevance to our discussion are: expansion of world trade, intensified competition among firms, the potential to reach many more customers around the world, and the array of individuals worldwide who now comprise a global labor market. World Trade/Wage Differentials. The value of world trade expanded from $89 billion in 1953 to more than $10 trillion in 2008 (UNCTAD, 2008). Although there was an economic contraction in 2009 it appears that the value of world trade is returning and that it may reach $27 trillion by 2030. Foreign direct investment (FDI) went from $59 billion in 1982 to more than $1 trillion in 2008 (UNCTAD, 2008). The formal labor market expanded from 2 billion workers in 1990 to more than 3.5 billion in 2008 (US

Department of Labor, 2010). The global economy (global GDP) is projected to expand to $75 trillion by 2030, up from $10 trillion in 1970 and $40 trillion in 2008 (A.T. Kearney, 2008; Stephenson and Pandit, 2008). 8 While FDI and trade are expected to increase, wage differentials are likely to continue across nations (U.S. Department of Labor, 2010). Even though wages are increasing slightly in India and China, workers in the developed

economies are likely to continue to enjoy salaries that are substantially greater than those in developing countries in Asia, Eastern Europe and Latin America (Barboza, 2010; Bradsher and Barboza, 2010). These differentials, as much as ten to one, along with the desire to produce products that satisfy domestic market growth, are likely to further the decision by firms to locate operations in the developing economies (Timmons, 2010; Bradsher, 2010; Galvin, Hexter and Hirt, 2010; Tabuchi, 2010). Competition. Competition is intense and multifaceted: it is fast developing, complex, extremely widespread. It is also subject to the current global economic and financial crises (The Economist, February 21, 2009; Zakaria, 2008; Cairns and Sliwa, 2008; IBM, 2008; Hill, 2007). Global competition has forced many firms (e.g., P&G, IBM, and Infosys) to improve quality and strive for innovation (often based on rapidly developed and more sophisticated technology). Increasingly, global competition means that enhanced quality and innovation must be achieved while also keeping cost low (Timmons, 2010; The

Economist, 2010). At the same time the U.S. appears to keep falling behind in rate of change in innovation capacity. In 2009 the Information Technology and Innovation Foundations Atlantic Century report ranked the U.S. last in innovation improvements (Ezell, 2009). Meanwhile, developing economies are constantly seeking to expand the scope of their operations, and with quality and low cost, they are proving to be a real threat to developed economies (Ezell, 2009; Timmons, 2010). For example, Indias pharmaceutical industry has been growing at around 12% yearly and it is estimated that the costs of drug discovery are as much as ten times cheaper in India than in the developed economies (Timmons, 2010). Globalization: World Trade/Wage Differentials, Competition,

Customers/Markets, Individuals Globalization is a concept that people use when referring to many different phenomena. Of particular relevance to our discussion are: expansion of world trade, intensified competition

among firms, the potential to reach many more customers around the world, and the array of individuals worldwide who now comprise a global labor market. World Trade/Wage Differentials. The value of world trade expanded from $89 billion in 1953 to more than $10 trillion in 2008 (UNCTAD, 2008). Although there was an economic contraction in 2009 it appears that the value of world trade is returning and that it may reach $27 trillion by 2030. Foreign direct investment (FDI) went from $59 billion in 1982 to more than $1 trillion in 2008 (UNCTAD, 2008). The formal labor market expanded from 2 billion workers in 1990 to more than 3.5 billion in 2008 (US Department of Labor, 2010). The global economy (global GDP) is projected to expand to $75 trillion by 2030, up from $10 trillion in 1970 and $40 trillion in 2008 (A.T. Kearney, 2008; Stephenson and Pandit, 2008). 8

While FDI and trade are expected to increase, wage differentials are likely to continue across nations (U.S. Department of Labor, 2010). Even though wages are increasing slightly in India and China, workers in the developed economies are likely to continue to enjoy salaries that are substantially greater than those in developing countries in Asia, Eastern Europe and Latin America (Barboza, 2010; Bradsher and Barboza, 2010). These differentials, as much as ten to one, along with the desire to produce products that satisfy domestic market growth, are likely to

further the decision by firms to locate operations in the developing economies (Timmons, 2010; Bradsher, 2010; Galvin, Hexter and Hirt, 2010; Tabuchi, 2010). Competition. Competition is intense and multifaceted: it is fast developing, complex, extremely widespread. It is also subject to the current global economic and financial crises (The Economist, February 21, 2009; Zakaria, 2008; Cairns and Sliwa, 2008; IBM, 2008; Hill, 2007). Global competition has forced many firms (e.g., P&G, IBM, and Infosys) to improve quality and strive for innovation (often based on rapidly developed and more sophisticated technology). Increasingly, global competition means that enhanced quality and innovation must be achieved while also keeping cost low (Timmons, 2010; The Economist, 2010). At the same time the U.S. appears to keep falling behind in rate of change in innovation capacity. In 2009 the Information Technology and Innovation Foundations Atlantic Century report ranked the U.S. last in innovation improvements (Ezell, 2009). Meanwhile, developing economies are constantly seeking to expand the scope of their operations, and with quality and low cost, they are proving to be a real threat to developed economies (Ezell, 2009; Timmons, 2010). For example, Indias pharmaceutical industry has been growing at around 12% yearly and it is estimated that the costs of drug discovery are as much as ten times cheaper in India than in the developed economies (Timmons, 2010).