factors affecting the efficiency of talent management in

C M U J O U R N A L O F S O C I A L S C I E N C E S A N D H U M A N I T I E S ( 2 0 0 9 ) V o l . 3 ( 3 )

135

Factors Affecting the Efficiency of Talent Management in State Enterprise Organizations:

A Case Study of the Sports Authority of Thailand

Nathanicha Na Nakorn

Faculty of Management of Science, Kanjanaburi Rajabhat University, Kanjanaburi 71000, Thailand, E-mail: [email protected]

The purpose of this research is to propose influence factors that affect the efficiency of talent management for the Sports Authority of Thailand, a state enterprise organization in Thailand, using a quantitative approach. The study consists of three parts. Part 1 explores driving forces from the philosophy of organizational duties. Part 2 is an appraisal of the influ-ence factors that affect the efficiency of talent management using survey questionnaires (sample size of 145). Part 3 develops a model for talent management for the Sports Authority of Thailand. Four factors were found to affect the effectiveness of talent management: the criteria for identifying talent, the method of developing talent, the system for rewarding talent, and the arrangements for retaining talent.

Keywords: Talent management, State enterprise organization, Sports Authority of Thailand

Introduction Sport is essential to quality of life, both for physical and mental health. Accordingly, believing that the development of sports is important, the Thai government created the Sports Authority of Thailand (SAT) as the principle organization responsible for the management of the coun-try’s sports activities according to objectives described in the National Economic and Social Development Board’s Sports Policy. SAT’s mission is to promote national sports activities and develop sporting excellence, while making Thailand one of Asia’s leading professional sports countries. To do so, SAT has established three key management strategies: (a) sports development for excellence, (b) professional sports development, and (c) sports services for the public. To best carry out its mission of sustainable sports development, SAT focuses internally on human resource manage-ment to help the organization function at peak strength and efficiency. To manage and accomplish its Sports Strategy, SAT employs 549 government officials, in comparison to the organizational structure’s 632

T A L E N T M A N A g E M E N T I N S T A T E E N T E R p R I S E O R g A N I z A T I O N S

136

positions. SAT does not operate at full capacity because of budget shortfalls and the Thai Government’s Officials System Reform Plan, which aims to reduce staff across the government while increasing productivity. While the organization’s mission is large, and countrywide, it has to accomplish this at reduced staffing levels, making efficient talent management critical. The Office of the Civil Service Commission’s (OCSC) High Performance and Potential System (HiPPS), announced in June 2003, supports these ef-forts by working to retain, promote, and develop talented civil servants. In light of the above, this researcher became interested in studying the influence factors that affect the efficiency of talent management in the Sports Authority of Thailand. The research results will benefit the organization’s ability to manage its talent and boost the productivity and efficiency of these officials, while preparing them for future organizational leadership.

Research Objectives 1. To study the influence factors that affect the efficiency of talent management in SAT. 2. To build a model of talent management in SAT.

Background and Review In the past, management frequently viewed machines as the most important organizational resource. If an organization had technologically advanced machines, it would have a competitive advantage. However, with the birth of the information age in the 1980s, the role of tangible assets such as machines, factories, and capital grew less important. At the same time, intangible assets such as reputation, image, intellectual property, value, networking, and human resources gained in importance, and soon came to play higher roles than tangible assets. Organizations and academics have increasingly realized the growing importance of human resources. Human resource development planning is key to setting direction and guiding an organization’s action plan for personnel management to enable the improvement and development of production and efficiency to meet organizational goals. Human resource development planning should correlate with an organization’s strategy. After specifying organiza-tional policies, goals, and strategies, management must choose the human resource development tools most appropriate for the organization, and be careful not to choose tools based solely on the latest “fashion” in human resource management. Talent management is one of the human resource development options available for managing, developing, and retaining an


137

organization’s human resources. Talent management studies by academics on human resource devel-opment, including Berger and Berger (2004), Hunter (1990), and Huselid (1995), found that organizations that applied talent management gener-ated performance increases of 30-50%. Talented individuals (talents) are typically studious, responsible, and enthusiastic to work. They also like work that challenges their ability. They are highly capable with consider-able potential and try to accomplish their goals with a quality exceeding the standards. They are filled with creativity, search for improvement, and seek opportunity to change. They never stick to old methods of working. Instead, they always try to introduce improvements and new developments in various working systems. Talents offer positive examples for other employees to follow. Talents are an essential driving force for improving the products, goods, and services of an organization, creating new business opportuni-ties and growth. Therefore, the characteristics of talents described above are desirable attributes to have and/or develop within employees at every organization. Furthermore, if an organization has a number of talented personnel, that particular organization might have a competitive edge in the market. The talent management process consists of identifying, developing, rewarding, and retaining talent as outlined in Figure 1 below.

Figure 1. Conceptual framework


138

Methodology The research focused on 226 SAT employees whose performance during 2006-08 was ranked excellent. The employees were selected from executives at the Deputy Governor level down to staff in 12 work sections. Proportional Stratified Random Sampling was used to disperse the samples to every unit in the organization and Stratified Random Sampling was used to best represent the whole population of the organization. The numbers of samples from each unit are as follows: Deputy Governor level (3), Internal Audit (2), Governor’s Office (15), Regional Sports Department (77), Policy and Planning Department (10), Finance Department (29), Human Resources Department (5), Sports Development for Excellence Department (20), Sports Science Department (15), Business and Conces-sion Department (26), Professional and Boxing Sports Department (10), Sports Venue Department (10), and Information and Sports Technique Department (4). Questionnaires were tested for reliability with Cronbach’s Alpha at 0.9496 and used as a survey tool to gather data on opinion levels re-garding the factors that affect efficiency of talent management in general officials. Data analytical tools used in this research consist of descriptive sta-tistics for data analysis and content analysis for compilation of suggestions from questionnaire respondents. Data analysis and descriptive statistics are used to describe the char-acteristics of the data: frequency, percentage, average, and standard devia-tion values to analyze opinion levels toward each factor in the model.

Results The study revealed that in each step of the talent management process, influence factors affect the talent management of SAT in four steps. 1. Talent Identification begins after talent characteristics for each position are clearly identified. The organization has to set up characteristics of talent at each position level according to its vision and key ability, and correlate these with the Mission of such position. Then the talent selec-tion process begins. The study found that SAT officials respond highly to talent characteristics in the order detailed in Table 1.


139

Table 1. Opinion levels on criteria for identifying talent that affect the efficiency of SAT’s talent management

Criteria for identifying talent Avg SDLevels ofopinion

1. SAT talents have high ethics, good human relationship and behaviors, and gain accept-ability from all level of officials through 360 Degree Evaluations

4.46 0.65 highest

2. SAT talents are committed firmly to the organization

4.41 0.64 highest

3. SAT talents are helpful, service-minded, and coordinate with the sports associations and general public who come for services as well as other external units

4.39 0.66 highest

4. SAT talents are leaders, decisive, and responsible for their decisions

4.34 0.66 highest

5. SAT talents are professional and have an attitude of achieving the organization’s objectives

4.31 0.67 highest

2. The Study found that SAT officials want their talents developed according to the order in Table 2.

Table 2. Opinion levels on methods of developing talent that affect the efficiency of SAT’s talent management

Methods of developing talent Avg SDLevels of opinion

1. Ethics training 4.19 0.84 high2. Enrolling in leadership programs 4.12 0.68 high3. Development methods are appropriate with learning ability and individual needs

3.79 0.88

4. Provision of administrative training for execu-tive levels, i.e., primary, secondary, and advanced levels, and promotion to higher level only after such training

4.03 0.89 high

5. On-the-job training 3.98 0.64 high

3. Rewarding and Motivating Talent includes two categories: finan-cial and non-financial. For non-financial/non-material rewards, the study found that SAT officials value rewards according to the results in Table 3.


140

Table 3. Opinion levels on rewarding and motivating talent that affect the efficiency of SAT’s talent management

Rewarding and motivating talent Avg SDLevels of opinion

1. Receiving SAT’s recommendation for Best Official annually organized by OCSC

3.78 0.92 high

2. Receiving an honorable plaque or certificate and recording in the personnel file

3.75 1.00 high

3. Getting selected to attend short training or official study abroad more frequently than other officials

3.74 0.95 high

4. Receiving employee of the month recognition 3.70 0.88 high

4. Retaining Talent means keeping talent within the organization as long as possible with talent devoting their capability to the organization with commitment and loyalty. The study shows most SAT officials want their talent retained in the order shown in Table 4.

Table 4. Opinion levels on retaining talent that affect the efficiency of SAT’s talent management

Retaining talent Avg SDLevels of opinion

1. Organizational culture and values for unity, affection, and affiliation

4.33 0.69 highest

2. Talent transfer depends on appropriate capability of the individual official

4.23 0.67 highest

3. Working atmosphere is arranged for convenience and is supportive of work

4.15 0.71 high

4. High-level executives are amiable, friendly, and appreciative of the talent

4.10 0.92 high

5. High-level executives assure, trust, and give talent important responsibilities

4.08 0.78 high

The following two figures are drawn from the conceptual framework and the research findings.


141

Figure 3. Talent management model for the Sports Authority of Thailand

Figure 2. SAT’s talent management process


142

Conclusion This study follows the Talent Management Approach concept and also integrates management theories, as follows: 1. Identifying Talent pertains to the Human Resources Management concept of recruiting and selecting by using criteria to put the right person in the right job. However, this is a more intense selection, which is the selection of key abilities and capabilities directly related to the organiza-tion’s needs. In other words, the selection pulls out strengths or potentials in an individual for development. 2. Developing Talent means ways to enhance the working poten-tial of the talent, i.e., their thoughts, actions, abilities, knowledge, skills, and attitudes, to motivate their creativity and innovation to develop their individual knowledge and organizational growth. Human Research Development theories state that human resource development can be of four categories: training, education, development, and learning. 3. Rewarding and Motivating Talent concepts are taken from well-known motivation theories used to get officials to achieve set goals including the Hierarchy of Needs Theory by Abraham Maslow, the X, Y Motivation Theory by Douglas McGregor, the Hawthorn Studies of Elton Mayo, the Two-Factor Theory by Frederic Herzberg, and the Expectancy Theory of David McCelland. The executives can apply these concepts for job enrichment and motivating talent to bring out their full potential. 4. Retaining Talent is sustaining talent in an organization to maintain loyalty to the organization. This is more challenging and difficult when compared to general officials who have fewer outside opportunities open to them. The organization must make them feel comfortable with good working conditions.

Acknowledgements The writer is most grateful to, and wishes to thank, the following faculty for kindly lending their time for counseling and suggestions with this study: Professor Dr. Kramol Thongthamachart, Professor Dr. Supang Chan-tavanich, Associate Professor Dr. Sanya Sanyawiwat, Associate Professor Dr. Preecha Hongskrailers, Associate Professor Dr. Chuta Thianthai, Associate Professor Dr. Napaporn Khantanapha, Dr. Jomphong Mongkolwanit, Dr. Jidapha Thirasirikul and Dr. Arporn Phuwittayapan. Moreover, the writer is most appreciative to the kind support of the executives and officials of the Sports Authority of Thailand for providing data, sitting for interviews, and responding to questionnaires, among numerous other services. Without them, this report would never have been completed.


143

ReferencesBerger, A. L., and D. R. Berger. 2004. The talent management handbook:

Creating organizational excellence by identifying, developing, and promoting your best people. New York: McGraw-Hill.

Gantz Wiley Research. 2005. Work trends 2005 show impact of talent retention efforts differ by worker generation. Retrieved December 18, 2008, from http//www.gantzwiley.com/gwupdates/WTO5_tal-entbygeneration.html.

Hunter, H. 1990. What makes a high-performance workplace? Evidence from retail bank branches. Working paper. The Wharton School, University of Pennsylvania.

Huselid, M. A. 1995. The impact of human resource management prac-tice on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38, 635-672.

Kaplan, R. S., and D. P. Norton. 1996. Translating strategy into action the balanced scorecard. Boston: Harvard Business School Press.

Yamane, T. 1973. Statistics: An Introductory Analysis (3rd ed.). New York: Harper & Row.

factors affecting the efficiency of talent management in

Documents