THEORETICAL FRAMEWORK AND CONCEPTUAL DEVELOPMENT
3.3 Hypotheses and Conceptual Development
3.3.19 The Mediating Role of Satisfaction in the Relationship between TM and Intention to
Oehley and Theron (2010) in their development and evaluation of a partial TM structural model found that employee satisfaction mediated the relationship between TM and the intention to quit. In a review of the empirical literature on TM and employee retention in Kenya, Kibui, Gachunga, and Namusonge (2014) argued that the relationship between TM and employee retention was not direct and that employee satisfaction mediated the relationship. TM may lead to employee satisfaction while employee satisfaction may also reduce the employee’s intention to quit. Therefore, in this study it was expected that employee satisfaction would mediate the negative relationship between TM and the intention to quit. This position is based on the notion that TM leads to employee satisfaction and that satisfied employees are less likely to quit their job. This has however been less researched in the TM literature and in this study such a proposition will be subjected to empirical testing. As a result, I made the following hypothesis:
H19: Employee satisfaction mediates the relationship between TM and the intention to quit.
Based on the relationship between the variables above and SET, AMO theory, and ST, I developed and hypothesized a research model for this study (figure 3.1). In other words, the influence of business strategy in the relationship between TM and employee performance as well as the intention to quit through the mediating role of TM outputs is displayed in figure 3.1 as the research model for this study. The model proposed here represents the inter-relationships of various variables and constructs that exist independently of the researcher. The variables used in the model have been derived from theoretical and empirical research examining TM. The elements or components of this framework were taken from several sources. First, the component of business strategies was adopted from generic business strategies because they are widely accepted, recognised, simple, accurate, and generalisable through empirical analysis (Miller and Friesen, 1983; Porter, 1980; Parnell, 2000).
Second, TM was measured with five dimensions as adopted from Luna- Arocas and Morley (2015). According to Luna-Arocas and Morley, TM is made up of five dimensions: talent alignment, talent application, talent competency, talent
autonomy, and talent development. These dimensions were adopted because they appeared to be fully supported in the TM literature (McCauley and Wakefield, 2006;
Farndale et al., 2010; Kim and Scullion, 2011; Nilson and Ellström, 2012; Stahl et al., 2012). Third, the component of TM outputs was made up of employee commitment, satisfaction, and POS. These outputs were used because they have been demonstrated in the TM literature to be the immediate outcomes of TM (Lockwood, 2006;
Bhatnagar, 2007; Hughes and Rogs, 2008; Collings and Mellahi, 2009; Anand, 2011;
Chami-Malaeb and Garavan, 2013; Barkhuizen et al., 2014; Gelens et al., 2015; Luna- Arocas and Morley, 2015; Mensah, 2015).
Fourth, the component of employee performance was adopted from Koopmans et al. (2011). Koopmans et al. (2011) conducted a comprehensive review of the employee performance literature and concluded that the totality of employee performance consisted of four dimensions: task, contextual, adaptive, and counterproductive work behaviours. Therefore, in order to capture all of the dimensions of employee performance, these were adopted. Finally, TM was related to employee retention or quitting and since the data on quitting are difficult to obtain, and the intention to quit is often used because it is the last stage of the decision to quit a job (Tett and Meyer, 1993; Griffeth, Hom and Gaertner, 2000; Sutherland and Jordaan, 2004). This framework as shown in figure 3.1 will guide this thesis and SEM will be used to test the relationship between the variables.
Figure 3.1 Talent Management-Employee Performance Linkage Framework
This framework shows that TM is affected by the business strategy of the organisation. The idea to develop a TM strategy is determined by the business strategy of the organisation. This is based on the increasingly advocated idea that in order to achieve performance, cope with the increasing rapid pace of change, and sustain success, an organisation must align and integrate its TM system with its business strategy (Ashton and Morton, 2005; Guthridge, Komm and Lawson, 2006;
McCauley and Wakefield, 2006; Beechler and Woodward, 2009; McDonnell, 2011).
In other words, the business strategy of the organisation often shapes its TM strategy.
TM is related to employee performance and as well as the intention to quit.
However, this framework is of the view that the relationship may not be direct and that TM output mediates the relationship between TM and employee performance, and the intention to quit. Therefore, this model not only represents the direct path of TM on employee performance as well as the intention to quit, but also the indirect effect of TM outputs variables on this relationship. This model has distinctive and unique features. First, it captures all of the dimensions of employee performance and organisations implementing TM strategy will have a comprehensive view of how TM will impact the various dimensions.
Second, it is comprehensive as it captures all of the important variables that affect TM (business strategy) and that are affected by TM (TM outputs, employee performance, and intention to quit). Previous studies have tended to look at TM in relation to single variables such as job performance, satisfaction, commitment, POS, and retention. However, this framework captures all of these variables together and thus organisations will be able have a comprehensive view of how TM affects employees’ performance. Third, for the purpose of practice, this framework can be used in all organisations that are practicing TM as it provides a clear path for implementing a TM strategy in order to get expected results. At the same time it can be used by TM researchers. Therefore, both researchers and managers can benefit from this conceptual framework; the former can use the framework as the basis for theorising and empirical work, while the latter can use it to inform the organisation’s strategy and practices.