A new decade for social changes

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A new decade

for social changes

ISSN 2668-7798

Vol. 17, 2021

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The Role of Talent Management in Improving the Quality of Human Resources: A Case Study approach of National

Private Companies

1Dr. Cundo Harimurti, S.T, M.Si, ²Rudianto Hermawan, S.E, M.A ^{1 2}STIAMI- Institute of Social Sciences and Management, Jakarta-INDONESIA

Abstract. One of the qualities of a company can be assessed is the quality of its human resources.

Therefore, human resources are one of the most valuable company assets, because every employee has talent, skills, knowledge and experience that can make a big contribution to the company in improving the performance of the employees concerned and the continuity of the company that wants employees to work optimally. Human resource management in the company has evolved and experienced changes from Personnel, Human Resources Strategic and Talent Management. This study aims to answer the question of why there are still many national private companies that have not used the Talent Management system and how the application of talent management is to improve the quality of the company's human resources. This is a qualitative research with a case study approach. Semi-structured interviews were used in data collection.

This study shows that Talent Management can increase employee motivation and enthusiasm to work because every employee feels cared for, evaluated on their work and given feedback so that employees can immediately improve their work and can improve the quality of their work performance. Talent Management also does not differentiate between employees. All employees are considered talents and must be developed uniquely because each employee has their own strengths and weaknesses.

Keywords. Personnel management, quality of human resources, talent management

1. Introduction

Human resources owned by the company are one of the important factors that play a role in achieving company goals. Human resources function to achieve goals and objectives through the efforts of a group of people in it, so it can be said that human resources are a determining factor for the success or failure of a company in achieving its goals. The human resources in question are employees. Many companies say that employees are the most valuable asset for the company, but the fact is that not many companies really value the people in the organisation as their most important asset that can have the greatest influence on the survival of an organisation.

In connection with the importance of the role of human resources for the company, it is necessary to manage and organise in a directed manner in order to make a positive contribution to improving company performance [1]. One of the strategies for companies to improve the quality of their human resources is through talent management. Talent management is a new paradigm in human resource management that was born towards the beginning of the 20th Technium Social Sciences Journal

Vol. 17, 386-397, March, 2021 ISSN: 2668-7798 www.techniumscience.com

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century. This paradigm is in line with the creation of a new world order which is increasingly global. The old ideas cannot be used and must be re-adapted for the benefit of managers.

Previous research on talent management has been conducted, among others, by [2]. This research aims to determine the effect of talent management and knowledge management on employee performance. The method used is quantitative. Her research results indicate that Talent Management and Knowledge Management simultaneously have a significant effect on employee performance. Other researchers who also examined talent management were [3]. This study aims to determine whether there is an effect between the existence of talent management in the company on employee performance. The method used is descriptive quantitative. The results of the research based on the t test show that "the deep talent management variable significantly contributes to the performance variable" while the simple linear regression analysis technique shows that the effect of changes in the talent management variable on the performance variable is 63.8%. What the two previous studies have in common is that they all discuss talent management, but the difference is that the two previous studies used quantitative methods while this study was a qualitative study.

Although the results of previous studies show that talent management has a significant influence on employee performance, until now there are still many companies that have not implemented a talent management system. In general, companies in Indonesia still use the old system, namely the personnel or human resources department, so that the job placement of employees is not entirely appropriate and in accordance with their talents and abilities. This study aims at answering the following questions: (1) Why are there still many national private companies have not apply a talent management system in managing their human resources (2) How can talent management in national private companies improve the quality of the company's human resources.

2. Literature Review

2.1 Definition of Talent Management

Talent can be defined as an individual in an organisation who has more or less unique abilities that can make a major contribution to the achievement of organisational goals, both in terms of production and in managerial positions. This causes organisations to consider talent as a human resource that must be maintained and maintained properly because of its values [4].

Talent management is part of the process carried out by organisational management in terms of fulfilling the availability of employees who have talent in the organisation [5].

According to [6], talent management is a process carried out by proactive organisational management, which in practice must always refer to the following three things:

1. Focus on identifying, selecting, developing and retaining high-performing employees who are role models for other employees.

2. Focus on identifying and developing highly qualified employees as future leaders of the organisation.

3. Focus on classification and investment in employees according to the contribution made to the organisation.

[4] stated that the character of talent management is: (1) having a mind-set development, especially the personal development of students; (2) realising a work culture, in which every student feels ownership, appreciates, and implements a high performance culture; (3) having Executive Sponsorship, namely having top executives, board of directors, or senior dreamers who are the main sponsors or supporters of high potential human resources development; (4) establishing a good human resource information system, namely an accurate human resources information system. The organisation constantly maintains and updates employee data.

Technium Social Sciences Journal Vol. 17, 386-397, March, 2021 ISSN: 2668-7798 www.techniumscience.com

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[7] states that talent is a product of abilities, character and opportunities. Capabilities in this case are competence, education, training and experience. Meanwhile, what is meant by character is motivation, involvement, satisfaction, challenges and welfare. Another element that is part of the talent factor is opportunity. [8] defined talent through the identification of eight elements that characterise truly gifted people. These eight elements are: a. have a passion for learning; b. responsive to role models and inspirational influences; c. thirst for achievement d.

have ambition and drive for supremacy; e. non-conformity f. self-sufficiency and preference for solitude; g. physical vulnerability; h. personal branding.

[9] in [10] argues that: "Talent management is concerned with finding the right person with the right skills for the right position." According to [11] TM is a process of anticipating and fulfilling organisational needs for talent or talent in strategic work. TM is a long-term practice with the aim of producing the right people in the right job at the right time, TM includes workforce planning, succession planning, employee development, and career management [11].

Talent is often defined by combining the terms quality and activity, so that [12] defines talent as a particular talent or skill possessed by a person, [13] argues that talent is the natural ability (innate, unique ability) of a person and as mastery (skills and knowledge that are developed systematically) Another opinion was conveyed by [14] who said that talent is not an innate ability but can be obtained and developed so that talent can drive business in the future.

The concept of Talent Management, which was popularised by the Mc Kinsey Consulting Group in 1998 [15] attempt to answer this question. Talent management can be understood as a strategic approach to ensure an organisation is able to achieve its goals, therefore the parameters used as a reference are business results [16] or also termed succession development [17].

Talent management programs are used in companies and most of the talent management program activities are related to human resources activities including recruitment, selection, development, evaluation, retention and succession planning [18]. Talent management is a series of activities carried out by companies to find the right employees and place them in the right place through the process of identification, development, defence, and placement in the appropriate position [19]. [20] states that the success of each company is determined by the strategy of talent management and employee development.

Experts state that there have been three human resource management paradigms that have run evolutionarily, namely (1) the Personnel Department Paradigm; (2) Strategic Human Resources; and (3) the era of Talent Management Paradigm [21]. The evolution of the Human Resources Management Paradigm is described as follows:

Figure 1

Evolution of Human Resources Paradigm

Source: Afiff ( 2013)

Talent Management Era Human Resources

Strategic Personnel Department

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2.2 Definition of Human Resources

Human resources are people in the organisation who contribute ideas and do various types of work in achieving organisational goals. The contribution in question is the thoughts and work they do in various activities within the company. In terms of human resources, what is covered is not limited to experts, education personnel or experienced personnel, but all workers used by the company to achieve its goals [22].

According to Hadari Nawawi in [23], what is meant by human resources (HR) includes three definitions, namely: a). HR is a human being who works in an organisation, also called personnel, labour, employees or staff. b). HR is the human potential as an organisational driving force in realizing its existence. c). HR is the potential which is an asset and functions as capital (non-material or non-financial) in a business organisation, which can realise physical and non- physical potential in realising the organisation's existence [23].

According to [24], talented employees can be observed / noticed from their attitudes and behaviour. The following shows the attitudes / behaviour of talented employees: a). Talented employees formulate rules. Employees with high talents do not hesitate to create and formulate rules that can improve performance, b). Talented employees initiate and make changes, c).

Talented employees create creativity, d). Talented employees serves as reliable sources of information within their unit or organisation. They provide data, suggestions and creatively shape new things that are important and change for the better; e). Talented employees create innovation; f). Talented employees direct employees; g). Talented employees inspire and motivate other employees.

Figure 2 Talented Employees

Source: Shahindra (2007)

Ruhana in [25] states that for the purposes of quality improvement, basically it can be done through 3 main channels, namely: a). Formal education pathway. It consists of general and vocational education starting from the elementary school level, junior high school and college. This formal education path aims at equipping a person with the basics of knowledge, theory and logic, general knowledge, analytical skills, character and personality development;

b). Line of job training. This path is a process of developing skills and job skills. The purpose of this job training is to improve professional skills and prioritise practice over theory, mental attitudes, morals and dedication to the implementation of tasks can be developed through a work training system; c). Work experience path. This path is a vehicle in which a person can improve his technical knowledge and work skills by observing other people, imitating, and doing his / her own job tasks. By doing work repeatedly, a person will be more proficient at doing his job,

Talented People

Formulating Rules

Making a Change

Creative

Reliable information

Source Creating

Innovation

Directing Employees

Inspiring and motivating employees

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besides that, he will be able to find ways that are more practical, efficient and better in carrying out his job.

[26] states that human resources are employees who are ready, capable and alert in achieving organisational goals. As stated that the main dimension of the resource side is its contribution to the organisation, while the main dimension of human beings is the treatment of their contribution, which in turn will determine the quality and capability of their life.

High quality human resources according to [27] are human resources that create not only comparative values but also competitive, generative, innovative values using the highest energies such as: intelligence, creativity and imagination; no longer solely using gross energy, such as raw materials, water fields, energy, muscles and so on. According to [28], the quality of human resources is a person's knowledge, skills and abilities that can be used to produce professional services. According to [28], the term quality of human resources is the level of ability and willingness that can be demonstrated by human resources. That rate is compared with the level required over time by the organisation that owns the human resources.

Widodo in [29] states that human resources can be said to be of quality when they have the ability to carry out the authority and responsibility given to them. This ability can only be achieved when they have sufficient education, training and experience to carry out the assigned tasks and responsibilities. If employees do not have good quality, it will affect the resulting performance and will have an impact on the company. The quality of human resources is not only determined by the aspect of skills or the strength of their physical energy, but also by their education or level of knowledge, experience or maturity and their attitudes and values [30].

Meanwhile, according to Ndraha, quoted by [31] says that human resources with high quality are human resources capable of creating not only comparative values but also competitive and innovative values by using energy such as intelligence, creativity, and imagination. Quality of work refers to the quality of human resources. The quality of human resources refers to: a) Knowledge, namely the ability of employees who are more oriented towards intelligence and thinking power as well as mastery of broad knowledge possessed by employees; b) Skill, capability and technical mastery of operations in certain areas of employees; c) Abilities, namely abilities that are formed from a number of competencies possessed by an employee which includes loyalty, discipline, cooperation and responsibility [32].

3. Method

This is a qualitative research with a case study approach. Bogdan and Taylor in [33], explain "a qualitative method as a research procedure that produces descriptive data in the form of written and spoken words from people and observable behaviour". Case studies are used to provide an understanding of something that grabs attention, social processes that occur, concrete events, or experiences of the person who is the background of a case. A case study is expected to capture the complexity of one case and this methodology is increasingly developing in the social sciences, including in practice-oriented fields such as environmental studies, education, and business [34]. As an approach, key case study research makes it possible to investigate a particular event, situation, or social condition and to provide insight into the processes that explain how certain events or situations occur [35]. Furthermore [35] explained that individual, group, community case studies help to show important things of concern, social processes in society in concrete events, stakeholder experiences.

[36] define a case study as a description and in-depth analysis of a bounded system. [37]

defines a case study as a research process. “A case study is an empirical inquiry that investigates a contemporary phenomenon (the 'case') within its real-life context, especially when the Technium Social Sciences Journal

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boundaries between phenomenon and context may not clearly evident” (p. 16). The case study approach, according to [37] is used by considering (a) the focus of the research is to answer the questions "how" and "why"; (b) the researcher cannot manipulate the behaviour of those involved in the research; (c) the researcher wants to cover the contextual condition because he believes it is relevant to what is being studied; (d) unclear boundary between phenomenon and context.

[38] explained that case studies can be used in several contexts. First, in a broader context, such as organisation. [37] divides case studies into explanatory, exploratory, descriptive case studies. This study uses a comparative descriptive case study because it compares 2 national private companies that are in the medium and large categories. Data collection techniques in this study used semi-structured interviews. Semi-structured interviews are more appropriate in this study. The form of semi-structured interview questions is an open question, but there are limitations to the theme and flow of the conversation, the speed of the interview is predictable, flexible but controlled, there are interview guidelines that are used as a benchmark in the flow, order and use of words, and the purpose of the interview is to understand a phenomenon [39]. In semi-structured interviews "the researcher has a list of questions or fairly specific topics to be covered, often referred to as an interview guide, but the interviewee has a great deal of leeway in how to reply" [40].

In this study, the researcher interviewed 2 Personnel Managers of medium-sized national private companies who were still using the personnel system and 2 Talent Management Leaders in large-sized national private companies. To be able to produce more objective research, the researcher also interviewed 5 staff in large-sized category companies and 5 staff in medium-sized category companies. For ethical issues reasons, the company names and informants are not mentioned in this study. Yin recommends data analysis by categorising the data then organising the data in four ways, namely pattern matching, building explanations, finding the logic of the model, and performing time-series analysis.

4. Results

The results of interviews with Personnel Managers in medium-sized national private companies and Talent Management Leaders in large-sized national private companies can be summarised as follows:

Table 1

Excerpt of interviews with the Personnel Managers and Talent Management Leaders

Personnel Leaders

Medium Category National Private Companies

Talent Management Leaders

Large Category National Private Companies Personnel management is better at managing human

resources because they do not differentiate between employees who are talented and underachieved or employees who are high achievers and underachievers, so that all employees will have the same opportunity to improve their talents and achievements.

TM practice is defined as a company policy that does not differentiate between employees. All employees are considered talents and must be developed uniquely because each employee has their own strengths and weaknesses.

The quality of human resources is not only determined by the aspect of skills or the strength of their physical energy, but also by their education or level of knowledge, experience or maturity and their

Talent Management is a forum to discuss one's career path. Talent management is a series of activities carried out by companies to find the right employees and place them in the right place through

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attitudes and values. In our company there is a career development division called the Individual Development Plan (Short term, Medium Term, Long Term) and provided by mentors.

the process of identification, development, defense, and placement in the appropriate position.

The main goal of the personnel department is to make work plans for human resources in the company such as job descriptions, job analyses, and job specification, determining the stage of selection, arranging matters related to workforce development, the process of dismissal of workers (retirement, etc.), ensuring the welfare of workers in the company.

TM in our company is to focus on everyone, so it is not only employees who excel, it moves employees to focus on goals, learning, welfare and rewards.

Most of the talent management program activities are related to activities that include recruitment, selection, development, evaluation, retention and succession planning.

Human resources can increase and have quality when they have the ability to carry out the responsibilities assigned to them. To improve the quality of human resources, the personnel department collaborates with the training and employee development division to hold training because quality or talent is not an innate ability but can be obtained and developed.

TM aims to create high quality human resources.

Human resources who are able to create staff that has advantages, is able to compete and be innovative. To improve their quality, employees are provided with training. Training can be held in companies or employees are welcome to take part in training outside the office at the expense of the company.

Human resources are of high quality when they have the ability to carry out the authority and responsibility given to them. This ability can only be achieved when they have sufficient education, training and experience to carry out the assigned tasks and responsibilities.

TM can assess talented employees from their attitudes and behaviours, including: (1) Can make changes, (2) Can create creativity, (3) Become a reliable source of information both for their superiors and within the unit or organisation, (4) Able to create innovation, (5) Able to motivate and direct employees, (6) Can be an inspiration for other employees.

The results of interviews with 5 staff in large category companies and 5 staff in national private companies in the current category are summarized as follows:

Table 2

Excerpt of interviews with National Private Company staff

Staff under the Personnel Manager Medium Category National Private Company

Staff under TM

Large Category National Private Company Employee performance evaluation is conducted

once or twice a year

Employee evaluation is conducted every 3 months Employee placement is often not quite right and is

only assessed from their educational background but does not consider work experience factors. Job rolling is frequently done to find the right person, but the strategy or method of assessment is not right so that the placement of employees is not suitable.

Talent management really helps employees to achieve, because TM always looks at assessing employees in detail based on their talents, abilities, knowledge and experience so that they can put employees in the right positions. TM includes workforce planning, succession planning, employee development, and career management.

Training for employees is very rarely carried out, if there is training more technical (hard skills), but not training to improve soft skills. The training manager is also not a Personnel Division but there is a separate division, namely Employee Training and Development

Although TM has been able to identify each employee based on their talents and abilities, the company regularly encourages employees to take part in training to improve their quality. The training held has gone through a needs assessment process so that it is in accordance with what is needed by the employees.

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The company has never encouraged employees to seek self-training outside of the office to improve their competence, but employees have to wait for training held by the company.

TM always encourages employees to improve their quality by following out of office trainings in the form of training, workshops or seminars.

The results of interviews with 5 staff in large category companies and 5 staff in national private companies in the current category are summarized as follows:

Table 2

Excerpt of interviews with National Private Company staff

Staff under the Personnel Manager Medium Category National Private Company

Staff under TM

Large Category National Private Company Employee performance evaluation is conducted

once or twice a year

Employee evaluation is conducted every 3 months

Employee placement is often not quite right and is only assessed from their educational background but does not consider work experience factors. Job rolling is very often done to find the right person, but the strategy or method of assessment is not right so that the placement of employees is not suitable.

Talent management really helps employees to achieve, because TM always looks at assessing employees in detail based on their talents, abilities, knowledge and experience so that they can put employees in the right positions. TM includes workforce planning, succession planning, employee development, and career management.

Training for employees is very rarely carried out, if there is training more technical (hard skills), but not training to improve soft skills. The training manager is also not a Personnel Division but there is a separate division, namely Employee Training and Development.

Although TM has been able to identify each employee based on their talents and abilities, the company regularly encourages employees to take part in training to improve their quality. The training held has gone through a needs assessment process so that it is in accordance with what is needed by the employees.

The company has never encouraged employees to seek self-training outside of the office to improve their competence, but employees more often wait for training held by the company.

TM always encourages employees to improve their quality by following out of office trainings in the form of training, workshops or seminars.

5. Discussion

From the data presentation above, it is found that national private companies with the medium category are still using the Personnel System and not Talent Management. This is due to certain reasons, namely because according to the two informants, personnel is better at managing human resources because they do not differentiate between talented and less talented employees or employees who are high achievers and underachievers, so that all employees will have the opportunity to increase their talents and abilities and achievement. Personnel also assume that achievement is determined by their educational background or knowledge, also supported by their experiences, attitudes and values, not only by their talents. [30], as stated by the Personnel Manager in medium category national private company:

“In our company there is a career development division called the Individual Development Plan.

Employee career development is divided into short term, medium term, and long term. The company also provides mentors, who are tasked with guiding employees so that they can truly work independently, and have a high leadership spirit, in order to lead and motivate other employees to progress and develop. "

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From this interview it is also known that the TM of large companies do not agree if it is said that the practice of TM is interpreted as a company policy that discriminates between employees. All employees are considered talents and must be developed uniquely because each employee has their own strengths and weaknesses. Human resources can be said to be of quality when they have the ability to carry out the responsibilities given to them. This ability can be achieved if employees have sufficient education, add to their knowledge with training and learn from experience [29]. Meanwhile, TM of large companies believe that TM can assess talented employees from their attitudes and behaviours, among others: (1) able to make changes, (2) able to be creative, (3) become a reliable source of information both for their superiors and within the unit or organisation, (4) able to create innovation, (5) able to motivate and direct employees, (6) able to be an inspiration for other employees [24].

To improve the quality of human resources, the Personnel Department collaborates with the training and employee development division to conduct training because quality or talent is not an innate ability but can be obtained by learning and continuing to be developed. [14].

Meanwhile, TM aims at creating high quality human resources. Human resources who are able to create HR that has advantages, is able to compete and be innovative [27] quoted by [31] and [32] . To improve their quality, employees are provided with training. Training can be held in companies or employees are welcome to attend training outside the office with fees from the company.

To improve the quality of human resources, the Personnel Department collaborates with the training and employee development division to conduct training because quality or talent is not an innate ability but can be obtained by learning and continuing to be developed [14].

Meanwhile, TM aims to create high quality human resources. Human resources who are able to create HR that has advantages, is able to compete and be innovative [27] quoted by [31] and [32]. To improve their quality, employees are provided with training. Training can be held in companies or employees are welcome to attend training outside the office with fees from the company.

Interviews with 10 staff consisting of 5 staff from medium category companies and 5 staff from large category companies resulted in different answers. Employee placement, for example, is said by company staff to be in the medium category, often it is not quite right and is only assessed from an educational background but does not consider the work experience factor. Job rolling is very often done to find the right person, but the strategy or method of assessment is not right so that the placement of employees is not suitable. Meanwhile staff from large companies said that TM is very helpful for employees to achieve, because TM always assesses employees in detail based on their talents, abilities, knowledge and experience so that they can put employees in the right position. TM includes workforce planning, succession planning, employee development, and career management [11].

“After there was a TM system in the company where I worked, I felt more enthusiastic about working, because there was always an evaluation of my work and I didn't have to wait for the feedback for six months or one year. Thus, I understand more and more about how to improve my performance in order to become a qualified employee, which of course will affect my position and income. " (SW- PT ANS staff)

Staff under personnel managers also said that training for employees was very rare. If there is training, it will be mostly technical (hard skills), but not training to improve soft skills, such as interpersonal communication skills, motivation and character building, self- management, and other training related to soft skills improvement. The training manager is also from the Training and Development Division, but the company never provides support to employees who want to attend training or workshops outside the office. This is in stark contrast Technium Social Sciences Journal

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to the answers of the staff of large companies under TM who always encourage employees to improve their quality by attending training outside the office. The type of training can be chosen according to their talents and abilities, either in the form of training, workshops or seminars and the company will pay for it.

“Two years ago before there was a TM system, employees were not allowed to take training outside the office. Training was always provided by the Training Division and often did not fit the needs of employees. After the TM system has been applied in the company where I am working, the changes have occurred significantly. Every employee feels more cared for, is placed in the right position, and is always given training to improve his quality, not only for employees who excel but also for other employees. The point is I am happy with the TM system as it is now and I am more motivated. " (YM- Marketing Department staff, PT HCI)

6. Conclusion

From the analysis conducted, the results of this study conclude that Talent Management can increase employee motivation and enthusiasm to work because every employee feels cared for, evaluated on their work and given feedback so that employees can immediately improve their work and can improve the quality of their work performance. Talent Management also does not differentiate between employees. All employees are considered talents and must be developed uniquely because each employee has their own strengths and weaknesses. For further research, researchers suggest to conduct a study on Talent Management in national private company with a different approach.

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