Relationship of Talent Management with

Organizational Culture: A Discussion Paper

Anuroopa Mahajan
Introduction
This article discusses the relation-
ship between talent management The term ‘talent management’ has
and organizational culture. Talent been in use for more than two decades
management is associated with now. It is being defined differently by
various human resource practices researchers and practitioners. Organiza-
and is gaining importance in or- tions are adopting various practices of
ganizations in order to achieve talent management focusing on differ-
competitive advantage. Organiza- ent aspects such as leadership develop-
tional culture is developed by ment, employment stages, organizational
leaders in the organization which processes based on the present chang-
encompasses core values and be- ing business environment. This is needed
liefs. Different types of organiza- so that organizations can develop com-
tional culture that exist in organi- petitive advantage and talented employ-
zation is discussed, such as bu- ees drive this advantage. Therefore tal-
reaucratic, entrepreneurial clan ent management is needed to focus on
and marketing along with strong the talent of the organization, who are
and weak cultures. Organizational most skilled and experienced employees.
culture is associated with various In this paper we will be discussing tal-
functions and one of them is ef- ent management and its relationship with
fective talent management. Orga- organizational culture in light of current
nizational culture is also associ- corporate milieu.
ated with business strategy to gain
competitive advantage. Latest The culture of an organization rep-
trends in business scenario with resents the way things are done in the
respect to organizational culture organization. It mainly revolves around
have also been discussed. the behavioral patterns and relationships.
Culture is developed over a period of
time in the organization by the people
Anuroopa Mahajan is Research Fellow, Indian
Institute of Management, Kashipur Uttarakhand,
who work for it. To create a dynamic
India. E-mail:anuroopa.efpm2014@iimkashipur.ac.in. culture organization’s core values and its

The Indian Journal of Industrial Relations, Vol. 54, No. 3, January 2019 471
 Anuroopa Mahajan

cannot be created and innovation would

Corporate culture is an intensely never occur. All non – living assets of the
rooted form of social control that organization can give a short lived com-
influences employee behavior. petitive advantage whereas investing in
employees would give non - imitable com-
petitive edge to the organization.
vision is a fundamental requirement
(Times, 2013). Corporate culture is an in- Ed Michaels, Helen Handfield -
tensely rooted form of social control that Jones and Beth Axelrod in their 2001
influences employee behavior. Culture is book, “The War for Talent” enunciated
omnipresent and works unconsciously. It a universal talent mind-set – a con-
acts as a glue that ties people together viction shared by leaders in organiza-
and makes them feel part of organiza- tions that competitive advantage is
tion. It motivates employees to internal- achieved by having better talent at all
ize its core values as it gives them social levels. They have quoted examples of
identity. It helps employees understand successful organizations who have
organizational events, communicate more adopted talent management mind-set
efficiently and reach higher standards of and have implemented and followed
cooperation as they share common val- certain guidelines regarding talent
ues (Schein, 2009). management.

Importance of Talent Management Talent management is associated

with implementation of organizational
In recent years talent management strategies to improve productivity through
has turned into a top priority for organiza- upgradedprocesses for attracting, devel-
tions. Main reason articulated for this is: oping, retaining and employing individu-
shortage of availability of talented employ- als with requisite skills and aptitude to
ees. According to James Canon and Rita meet contemporary and future business
McGee (2011) in 2011, the competition for requirements (Muduli, 2008).
talent has risen as the availability of tal-
ent has considerably fallen in 2010 to 41% According to Brown and Hesketh
from 2009 which was 20% (2004), Collings and Mellahi (2009),
Lewis and Heckman (2006), talent man-
Eminent researchers have written agement is closely associated with hu-
about the importance of talent manage- man resource planning, strategic human
ment and benefits thus extended. Jeffery resource management and employabil-
Pfeffer (1998) in his book titled, “The ity. Heinen and O’Neil (2004) associ-
Human Equation – Building Profits by ate typical human resource practices of
Putting People First”, emphasizes that recruitment, training and development
people are an important strength for an with talent management. Lynne Morton
organization, without them strategies (2004) has suggested a wider coverage
would not be executed, customer delight of human resource practices to be part

472 The Indian Journal of Industrial Relations, Vol. 54, No. 3, January 2019
 Relationship of Talent Management with Organizational Culture

of talent management such as talent ac- of the organization. In this way organi-
quisition, leadership development, per- zational cultures are created by
formance management and building cul- leaders,what leaders pay consideration
ture. Berger and Berger (2009) have ar- to, what actions are rewarded or pun-
ticulated about talent management in ished and distribution of resources is
their handbook. They have inferred from under consideration(Caver & White,
their research, consulting assignments 2013).
and from inputs of eminent authors, that
talent management is required to cre-
Invisible layer is built within, it is
ate a culture for success in the organi-
deeply embedded within the orga-
zation. It is based on certain factors such
nization and includes common val-
as the internal beliefs, which includes
ues, beliefs or faith and norms of
core principles, values and mutual op-
the organization.
portunities of an organization and its
employees, talent strategy of the orga-
nization which specifies the types of Culture is two tiered – one the vis-
employee organization would be invest- ible layer or characteristics and sec-
ing in and talent management system, ond the invisible. Visible characteris-
processes and procedures. tics include external features such as
building, furniture, dress code, behav-
To sum up the importance of talent iors, processes and regulations.
management, it is vital for human re- Whereas invisible layer is built within,
source department to place right talent it is deeply embedded within the orga-
at the right place and right talent is the nization and includes common values,
biggest asset for an organization (Ramco, beliefs or faith and norms of the orga-
2012). Organizations thus should focus nization (Schein, 1990).Organizational
on managing the talent: most skilled and culture depends upon many factors,
experienced individuals. For organizations such as the type of business an organi-
retaining talent is of ultimate importance zation is in, its products and custom-
to stay ahead of the competitors ers, its size and location and methods
(Serendi, 2015). of operation (Rowe, et al., 1994).
Hellriegel and Slocum (2010) in their
Types of Organizational Cultures book Organizational Behavior have
elaborated on typology of organizational
Leaders outline the vision and mis- culture and have pointed towards four
sion for an organization – define and dif- types of organizational cultures viz. bu-
ferentiate the organization. Leaders take reaucratic culture, clan culture, entre-
the responsibility to model and reinforce preneurial culture and market culture.
the behavior that helps to accomplish or- These cultures develop in the organi-
ganizational goals and to ensure they zation depending on their focus on
are creating and cultivating a culture that forms of organization attention and con-
promotes engagement of talent segment trol orientation (Fig.1).

The Indian Journal of Industrial Relations, Vol. 54, No. 3, January 2019 473
 Anuroopa Mahajan

Fig.1 Types of Organizational Culture

Source:(Hellriegel & Slocum, 2010)

No two organizations can have same

culture. Organizations have to develop commitment, teamwork, self – man-
one which suits their ideologies and value agement and social influences. Em-
system. Four different types of cultures ployees of such organizations realize
described by Hellriegel and Slocum are: that their association with the orga-
nization is beyond collecting only sal-
1 Bureaucratic Culture – Organiza- ary in exchange of work. The
tions adopting bureaucratic culture individual’s commitment in the form
are the ones who practice standard of loyalty towards organization is re-
operating systems, hierarchical man- spected and returned in the form of
agement system, and formal rules long term commitment of organiza-
with a focus on efficiency, predict- tion towards employee as a job se-
ability and steadiness. Behavioral curity. Unity in this type of culture is
norms follow formality over infor- created through socialization process
mality. Leadership roles are interwo- and senior clan members act as men-
ven around good coordination, orga- tors for new employees. Success in
nizing and enforcing of written rules these types of organizations depends
and standards. The jobs, responsibili- primarily on team work, participation,
ties and authority for all employees consensus decision.
are well defined and employees pre-
3. Entrepreneurial Culture – This cul-
fer to follow rules and regulation writ-
ture represents high levels of risk–
ten in manuals and hence they “go
taking, dynamism, and creativity.
by the book”.
Employees give commitment for ex-
2 Clan Culture – Characteristics of this perimentation, innovation and being
culture are tradition, loyalty, person on leading edge. Organizations fol-

474 The Indian Journal of Industrial Relations, Vol. 54, No. 3, January 2019
 Relationship of Talent Management with Organizational Culture

lowing this culture are able to react Rowe et al (1994) have elaborated on
quickly to the change and adapt be- cultural environments that exist in organi-
cause individuals are encouraged and zation based on their value system, norms
rewarded for their initiatives, flexibil- and organization’s orientation whether it
ity and for growth prospects. Such is technical or social. Four types of cor-
organizations have their attention fo- porate cultures identified by them include
cused externally and control orienta- Productive Culture, Quality Culture, Cre-
tion is flexible in order to nurture in- ative Culture and Supportive Culture. Pro-
novation and change. ductive culture is present in those organi-
zations where orientation is technical and
4 Market Culture – Achievement of fi-
stress is given on efficiency, consistency
nancial and market oriented goals is
and performance. This type of culture
the primary focus of this culture. The
resists change. The Quality Culture fo-
relationship between employee and
cuses on problem solving and effective
organization is contractual where
planning for the organization’s growth.
terms and conditions are agreed upon
Such organizations can accept change
and hence formal control orientation
when it occurs as they are flexible in their
is quite strong. Since employee is ex-
approach. Achievement of individual is of
pected to perform the set standard of
great value and organization has techni-
output, organization has to give remu-
cal orientation. The Creative Culture is in-
neration based on the same. Competi-
novative and entrepreneurial and is in-
tiveness and a profit gaining attitude
clined towards risk taking and initiating
persists in the entire organization as
change. Organization with Creative Cul-
better performance of employees is
ture values individual achievement and is
rewarded in the form of increased
social in orientation. The Supportive Cul-
remuneration (Hellriegel & Slocum,
ture has teamwork, cooperation and rein-
2010, Cameron & Quinn, 2011).
forcement of it values as characteristics.
Similarly Terrence Dean and Allan Organization focuses on performance and
Kennedy (2000) have also discussed cor- has social orientation. Thus they are able
porate culture as strong and weak cultures. to give a quick and ready response to the
A strong culture is composed of deeply held change.
core values and beliefs. It is also supported
by all members of the organization. Cer- Organizational Culture & Talent
tain features of strong culture are a com- Management
mon shared philosophy, consideration of
individuals, recognition of protagonists, be- Brown (1995) associates several
lief in ritual and ceremony, well framed, functions with organizational culture such
informed and understood informal rules and as conflict resolution, control and coor-
expectations. On the other hand a weak dination, motivation and competitive ad-
culture is not supported by members of vantage. Greenberg and Baron (2003)
organization as it is not deep rooted in the differ in their opinion, regarding functions
value system of the organization.. of organizational culture, from that of

The Indian Journal of Industrial Relations, Vol. 54, No. 3, January 2019 475
 Anuroopa Mahajan

Andrew Brown (1995). They say culture not necessarily associated with only one
provides a sense of identity, generates type of culture, rather there will be dif-
organizational commitment as well as ferent cultures depending upon the na-
commitment to the mission of the orga- ture of task to be performed, determined
nization and reinforces standards of be- goals, external environment, rules and
havior. They also emphasize that culture regulations, policies and types of individu-
influences employee attitude and behav- als employed in the organization at that
ior in the organization which results in point of time. Thus, organizational cul-
better commitment of employees to- ture has association with the employees
wards organization and higher perfor- of the organization and vice – versa.
mance is delivered.
Organizational culture is one of the
determinants of effective talent manage-
Culture influences employee atti-
ment as discussed by Wilska (2014) (Fig.
tude and behavior in the organiza-
2).Along with managerial staff who men-
tion.
tors the young talents in the organization,
personnel department takes care of all
Organizations have to face certain ex- the human resource activities, skills and
ternal (outside the organization) and in- competencies to identify the right talent,
ternal (within the organization) challenges systems of management and leadership
which call for a culture of external adap- style, corporate image in the market and
tation, internal integration and anxiety re- allocated budget for talent management
duction. For external adaptation organi- programs. Corporate culture that pro-
zations have to develop a strategic mis- motes learning and development of hu-
sion statement, set critical goals, which is man capital is very crucial for effective
facilitated by employee empowerment and talent management. Corporate cultures
establish planning and control system, so where managerial staff is constantly in-
that proactively organization can take volved at all levels in development of tal-
adaptive measures.Control system helps ent has a huge impact on overall talent
in evaluating the measures. Internal inte- management process in the organization.
gration can be achieved by having a com-
mon language, understood by all employ-
Corporate cultures where manage-
ees, which helps to develop bonding within
rial staff is constantly involved at
the organization. To increase accountabil-
all levels in development of talent
ity and responsibility, inclusive criteria
has a huge impact on overall tal-
should be used wherein all the employees
ent management process in the
are included in organizational activities.
organization.
Cross function team building helps in de-
veloping peer relationship (Hayden, 1986).
Wilska (2014) also talks about suc-
It is argued by Lesley Willcoxson and cession planning, future leaders, reiter-
Bruce Millet (2000) that organizations are ating that corporate culture, in form of

476 The Indian Journal of Industrial Relations, Vol. 54, No. 3, January 2019
 Relationship of Talent Management with Organizational Culture

Fig.2 Factors affecting talent management in organizations

Source: (Wilska, 2014)

traditions and procedures, plays a cru- ment, links organization’s success directly
cial role. She also points out that com- to commonality among talent manage-
munication is essential for effective tal- ment, employee engagement and organi-
ent management. Good communication is zational culture. He says the causal link
important for creating a pleasant envi- among the three is powerful. He gives a
ronment and conveying values of the or- comparison with rowing crew’s connec-
ganization, this helps in maintaining em- tion between rowers, oars and scull. Tim
ployee loyalty towards organization. defines talent management using compo-
Ewelina concludes by saying that talent nent of commitment to recruit, retain and
management is gaining strategic impor- develop the talented employees of the
tance for organizations to achieve com- organization. This commitment can be
petitive advantage (Wilska, 2014).Align- enriched by effective employee engage-
ing organizational culture with business ment, wherein employee invests time,
strategy is of importance for gaining com- energy, skills, knowledge and creativity
petitive advantage. There are organiza- in the direction set by the organization.
tions who promote innovation like Apple Organizational culture contributes to-
and Google. Employees are rewarded wards employee engagement, as culture
when their innovative ideas strike a jack- is composed of values and behaviors that
pot but they are not penalized for a con- contribute towards the environment of
structive failure. Such organizations en- the organization.
courage employees to think creatively,
innovatively and share their ideas (Caver Organizational culture impacts three
& White, 2013). talent management components – recruit-
ment, development and retention. Recruit-
Tim Wright, a professional coach in ment is the first point of contact for a can-
talent engagement and culture improve- didate with the organization. This process

The Indian Journal of Industrial Relations, Vol. 54, No. 3, January 2019 477
 Anuroopa Mahajan

should create a positive impression on the money – saver as it is very expensive to

candidate. Organizational culture influ- hire, on-board and bring a new hire up to
ences the recruitment process. In present speed. Strong employee engagement re-
business environment, people are technol- sults in better employee retention. Tim
ogy savvy and look for a job that provides Wright has quoted that in this present un-
satisfaction and an opportunity to social- predictable financial environment, organi-
ize, compensation is a secondary aspect zations need loyal, productive and en-
to choose a job. Recruitment via social gaged employees more than ever before.
media is a preferred option and is well An organizational culture that provides,
appreciated. Personalized attention is ex- encourages and maintains engagements
pected with internet – speed responsive- for employees certainly has greater im-
ness. People are highly mobile and they pact on the individuals who aspires to work
look for opportunity that would take them in such organizations (Wright, 2014).Lizz
all over the globe.Organizational culture Pellet (2012) remarks that organizational
is a determinant in attracting talent to- culture is too often at the bottom of the
wards the organization. strategic concerns for the organizations.
It is quickly dismissed many a times be-
cause of its reputation as a “touchy –
Organizational culture is a deter-
feely” component of organizational busi-
minant in attracting talent towards
ness, considering it as solely a human re-
the organization.
source aspect. The biggest challenge is
to get senior leadership to believe that or-
Talent development is an important ganizational culture is a valuable asset and
action of talent management. Organiza- should be treated as a key performance
tions are committed to talent development indicator (KPI) as any other.
from day one of the employee and
throughout his tenure with the organiza- Egerova (2013) highlights on a new
tion. Such a commitment of the organiza- approach which is termed as integrated
tion stimulates employee for a better en- talent management. Egerova defines it as
gagement. The commitment to talent de- an innovative and holistic approach that
velopment can be a cornerstone value of supports an organization in responding to
an organization’s culture. Employees ap- changes in business environment in a
preciate training, education and mentoring suitable and flexible manner.This ap-
programs offered by organization for per- proach assimilates concepts of business
sonal as well as professional growth. Or- strategy, human resource strategy, talent
ganization can provide engagement in management processes and organiza-
forms of training programs, formal edu- tional culture.Amalgamation with orga-
cation through university partnerships, pro- nizational culture reflects that the values
fessional associations and conferences. of talent management processes are
firmly tied with the values of organiza-
Talent retention is a very crucial fac- tional culture. Theeffective integration is
tor of talent management. It is certainly a possible when organizational culture sup-

478 The Indian Journal of Industrial Relations, Vol. 54, No. 3, January 2019
 Relationship of Talent Management with Organizational Culture

ports the policies and processes of talent

management. Support of managers and Organizations such as IGate retain
their engagement in creating talent man- its top talent by giving them stock
agement strategies leads to an effective options.
talent management process.
opted for strategies to manage talent in
Latest Trends their organizations. These include offer-
ing management programs at top business
Bersin (2015) mentions that compa- institutes such as Kellogg School of Man-
nies with strong positive culture are most agement and Indian School of Business
preferred companies by the employees. by Dabur India Limited. Organizations
Positive culture driven companies put such as IGate retain its top talent by giv-
their employees first. Such companies ing them stock options. NetApp puts its
work on the famous saying, “Take care employees on to new projects to stimu-
of your people and they will take care of late them. Aegis sign up top performers
your customers”.As per the survey con- in special assignments, provide leadership
ducted by Glassdoor in 2014, reveals top mentoring and team management training.
companies,chosen by employees for cul- Samsung posts employees at headquar-
ture and values, as best places to work. ters in Korea for six months and provides
These companies involve themselves in global scholarships. They also offer job
planning to attract young people and pro- rotations to employees so that they can
vide facilities to employees,apart from learn about other job profiles (Sengupta
free food, transportation etc,like vaca- & Puri, 2012). As per Global Human Capi-
tions, yoga classes, get together etc are tal Trends, 2015Leading in the New World
planned for wellbeing of employees of Work, culture and talent management
(Glassdoor, 2014).Report by Towers were rated as the most important issues.
Watson suggests certain steps to be With the growth in economy, skills have
adopted by organizations for talent man- become more specialized and competition
agement. These include transparency and for talent has increased. This has focused
clear communication regarding various more attention on culture and talent man-
programs run by the organization to en- agement. It is also mentioned that every
sure clear understanding of the value human resource program should address
they contribute. This will not only guar- issues related to talent engagement and
antee appreciation of employees for the work culture, without a positive and mean-
offerings of the organization but also ingful work environment employees tend
boost engagement at all levels of employ- to look for jobs elsewhere (Bersin, et al.,
ees. Such measures ensure talent en- 2015).
gagement and retention for a longer du-
ration (Georgiou-Botaris, 2015). Conclusion
According to a report published in The discussion is tending one to ac-
The Economics Times, organizations have cept the important role played by organi-

The Indian Journal of Industrial Relations, Vol. 54, No. 3, January 2019 479
 Anuroopa Mahajan

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