Designing a talent management model in Mobarakeh Steel Company

1Introduction

The complexity and competitiveness of business context, changing environmental demands, changing generations, and the transition from traditional to modern human resource management has faced organizations with talent challenge. More than 75% of CEOs highlighted the scarcity of essential skills and capabilities as a key threat to the growth prospects of their organizations [1]. Therefore, the need to focus on identifying, attracting, hiring, developing, and retaining talent has increased and the area of talent management has become one of the fastest-growing areas of academic work in management over recent decades.

The review of published articles shows three distinct strains of thought in this field: The first defines talent management as a set of practices, functions, and activities such as recruitment, selection, development, and career management. Some practitioners tend to focus on sub-disciplines of HR to narrow the definition of TM. For example, recruiters tend to discuss talent management in terms of finding the best possible. They replace the traditional term “human resources” with “talent management.” The second perspective is based on the concept of talent pools. In this perspective, TM is a set of processes designed to ensure an adequate flow of employees throughout the organization. These topics are very close to succession or human resource planning. A third perspective on TM focuses on talent generically. That is, regardless of organizational boundaries or special situations, two general views about talent emerge in this view. The first refers to talent as an unqualified commodity and a resource to be primarily managed and the second view sees it as an undifferentiated commodity that human and demographic perspectives of talents are very important because the role of a strong HR function is for management [2].

Talent management ensures that organizations have qualified people with the right skills and the right job position. Talent management also helps to introduce employees extensively. Effective implementation of a talent management strategy leads to the successful acquisition and retention of talent, and these employees are selected for key positions in the future [3]. Talent management can be a factor that creates effective reforms and development [4]. Talent management can pave the way for employees to develop their potential by informing them of their weaknesses [5].

Talent management has a positive effect on financial, organizational, and human resource outcomes such as employee participation, improving quality and skills, and more satisfaction. Findings in the literature show that talent management is positively associated with variables such as job satisfaction, emotional commitment, work motivation, retention, and citizenship behavior [6]. Talented employees have the desired abilities and therefore the implementation of talent management motivates them and provides them with the necessary opportunities by placing them in key situations [7].

Talent management is a big challenge for developing countries including Iran because it is difficult to find and retain local talent that can cope with a global business world. Despite conducting studies on the challenges of talent management in developing countries and providing talent management models, reviewing related research shows that in the field of talent management theory development, there is a lack of a unified and coherent theory and theoretical framework in this field.

MSC as the most important company in the steel industry in Iran plays a key role in the economic system of the country and it is affected by the changes in the environment. The experience of several decades of scientific management in various organizations indicates that the success of the organization is fundamentally dependent on the performance of human resources. So, the success of this industry is not possible without the role of talent. In such a situation, managing talent is considered an effective strategy. This organization has become a knowledge-based organization so in addition to the need to obtain the latest scientific materials, it requires a new system of human resource management as talent management to ensure the use of talented human resources for goals achievement. Therefore, designing the model of talent management is a critical topic to study.

The following questions have been designed to identify the dimensions, components, and indicators of the talent management model of MSC:

Main question: What is the talent management model in MSC?

Sub questions:

2Talent management and human resource management

Some studies claim that there is no difference between talent management and human resource management, especially considering the comprehensive approach to talent management that considers all employees as talent. In most management texts, the term talent management and human resource management are often used interchangeably, but there is a distinction between these two terms [8] HR professionals are valued because of the value of human talent. At first glance, it may seem that this issue is related to semantics. However, this change represents a fundamental change in the way employees and future employees are organized, and it also affects all interactions with people, including recruitment, development, coordination, evaluation, and, of course, employee retention. One of the goals of talent management programs is to achieve the valuable goals of the stakeholders. In this regard, it helps to optimize the performance of human resources in the organization. Perhaps talent management has changed the focus of human resource management from considering employees as sources of capital to the concept of employees as people who should be treated fairly and their human status and dignity considered. This change in concept has been accompanied by a change in position in human resource management towards management away from authority and control and joint decision-making between managers and employees. Therefore, human resource management as a task plays an important role in the organization’s strategies [9].

3Talent and talent management

The primary concept of talent management was introduced in the late 1990 s when a group of McKinsey consultants coined the term war for talent [10]. The word “talent” is thousands of years old and linguists have examined how the term has varied greatly in terms of time, people, and place. For example, one of the first definitions defines “talent” as a measure of weight used by ancient people. When the value was assigned to a unit of silver, talent became a unit of money. The word talent was introduced to the English language through the Bible. In Matthew 25 : 14– 30, the term tells of a master who was leaving his house to travel, and, before leaving, entrusted his property to his servants. According to the abilities of each servant received five talents. The Greek version of this verse uses the word talent, while the new English translation of the Bible uses the word capital. Today, the term human capital is used in human resources discussions, which is used in some texts as a synonym for talent. In the thirteenth century, the word talent referred to a desire or tendency. In the fifteenth century, it referred to treasure, wealth, income, or natural ability. In the fifteenth century, talent referred to various abilities or competencies and disciplines. In the nineteenth century, talent was considered a talented and capable person.

Therefore, over the centuries, the word talent, which began its life as a unit of weight and then as a currency, took on new meanings in medieval Europe and changed to special ability or attitude, and talented people were able to show outstanding achievements in the mental and physical fields. Here the emphasis was on distinguishing talent from ordinary skill [11]. Talent management is therefore part of the field of human resource management, which is defined as all the policies, operations, and systems that affect the behavior, attitudes, and performance of employees. In addition, it includes a set of human resource activities that focus on recruiting and retaining a small group of talented employees. Some definitions of talent management are given in Table 1. Talented employees are identified through characteristics such as competencies, skills, abilities, experiences, knowledge, intelligence and enthusiasm, and the ability to learn and grow. Compared to other human resources and employees, they are a key strategic resource of the organization because they have the greatest impact on the performance and competitive advantage. They are valuable, rare, and unmitigated [12].

4Talent management models

Numerous models in the talent management literature have been proposed by various experts and theorists, for example, Phillips and Roper’s Talent Management model is designed for the real estate service industry based on organizational values and competencies and includes attracting, selecting, engaging, developing, and retaining employees. At the heart of this model are the core competencies and values of the organization, and these factors are interconnected through a continuous process, strategy, implementation, and evaluation. Talent management begins and develops from the core of this model. High-performing organizations have a strong culture. Culture includes the values, characteristics, behaviors, and actions of the members of the organization. Behaviors that are associated with a certain level of performance are defined as competencies and when the members of the organization associate themselves with the type of organization and its main characteristics, it is called value.

The next model was presented by Wellins, Smith, and Rogers [30]. This model is based on the organization’s vision and goals, and the demand for talent. This demand is determined based on the cultural and strategic priorities of the organization. After determining the required talents, it enters the stage of talent management, which currently manages the organization’s talents and it consists of five stages: identifying existing potentials, evaluating their readiness, developing talents, selecting and applying talents, and emphasizing their performance. The next model is proposed by Collings and Melahi [31]. This model includes four output components, namely the identification of key positions, the development of a source of talent, and the creation of a separate human resource structure and headquarters.

According to the model, using the internal labor market and the external labor market formed a repository of talents, and we use them to fill vital positions in the organization. The main results of using this model can be work motivation, organizational commitment, and extra-role behavior these factors directly affect the company’s performance. Another model called the “Coalesced Framework” of talent Management and employee performance was introduced in 2015 by Mensah [4]. This model consists of three parts of talent management, talent management output, and employee performance. This model refers to the position of the talent management system in the organization. The next model was presented by Oppong and Gold [32] and has three stages input, process, and result. The values and cultural practices of Ghana are considered as input. The five elements of identification, training, and development, maintenance and operation, deployment, and reward share shape the talent management process.

The Collings and Melahi model addresses the market gap, but the components of talent management are not fully integrated into the model. Mensah completes Collings and Melahi’s talent management framework and the results of talent management are well expressed in the two parts of talent management output and employee performance in this model. The talent management process in the framework of Oppong and Gold talent management has been well studied.

Table 2 compares the most important and prominent talent management models:

In the following, some of the research conducted in the field of talent management have been reviewed:

Krishnan and Scullion [33] in a study entitled “Talent management and dynamic view of talent in small and medium enterprises” believe that talent management is one of the key issues for leaders in global multinational corporations. Despite the importance of small and medium-sized enterprises, there is little research on talent management in this area, especially conceptual research. This research tries to fill this gap by providing a theoretical logic for the difference between large and small and medium enterprises in their talent management and human resource practices.

Foteini Kravarity et al. [34] in the research “Talent management and performance in the public sector: the role of organizational and line managerial support for development” investigates talent management in the public sector context of Bahrain addressing an important research gap. Drawing on organizational support theory and strategic human resource management literature, the researchers test the role of line managerial support for the development and organizational support for development as mechanisms through which talent management practices influence individual talent performance. Results from a survey based on a talent pool of a Bahraini governmental administrative institution show that line managerial support for development fully mediates the relationship between talent management practices.

Ishiyama [35] in the research “The impact of the talent management mechanism and self-perceived talent status on work engagement: the case of Japan” investigate the connection between the talent management (TM) mechanism and work engagement with a perceived moderating effect of the self-perceived talent status on work engagement. The results demonstrate that the TM mechanism and the self-perceived talent status have mutually exclusive and positive effects on work engagement.

Boulander et al. [36] in their research “The practice of talent management: A framework and typology” developed a deeper understanding of the conceptual and practical boundaries of talent management so that researchers and managers can increase their knowledge in the field of talent management and how it works. The method of this research was a comparative study that has been done on talent management in 30 organizations in Sweden. Data were collected through in-depth interviews with 56 organizational representatives and analyzed through the qualitative content analysis method. The findings show four distinct types of talent management, i.e. human, competitive, elite, and entrepreneurial type.

Ingram and Glod [37] in a study entitled “Talent management in healthcare organizations: Qualitative research results” believe that the need for skilled employees, who can be considered talented, has been emphasized in these organizations. Studies conducted in healthcare organizations are rare. In this study, five semi-structured interviews were conducted to select different healthcare organizations in Poland. The collected data were qualitatively analyzed during the interview. Finally, theoretical concepts in the form of hypotheses and practical applications were presented as a list of appropriate talent management operations for healthcare organizations.

Sonnenberg et al. [38] conducted a study entitled “The role of talent-perception incongruence ineffective talent management”. This study examines the impact of talent management on various psychological contract strategies. The results of the analysis of 2660 respondents in 21 organizations emphasize the importance of paying attention to incompatibility in the perception of talent. Incompatibility occurs when executives in an organization consider a person to be talented when the person is unaware of it, and also when executive agents do not consider a person to be talented while that person is talented.

In an article entitled “Talent management and creating high-performing organizations,” Coulson [39] argues that many contemporary approaches to talent management are inappropriate. This article summarizes some of the key findings from a five-year study of faster and more cost-effective ways to build high-performance organizations and its purpose is to provide a practical and cost-effective way to do business. The results showed that hiring exceptional people can cause many problems if not managed properly. The presence of talented people is not noticeable for organizations that cannot harness and use this talent. Talent must be commensurate with the goals of the organization and what it seeks to do.

Koohi Khor et al. [40] conducted a study entitled “Meta-synthesis model of integrated talent management”. Researchers have studied the subject in detail and depth through a meta-synthesis method and combined the results of previous research. In this regard, by searching Web science (2008-2018), Magiran, and the journals of the University of Tehran and English books, 106 research in the field of talent management were selected and analyzed for content. Dimensions and codes related to their content were extracted and prioritized using Shannon entropy. According to the research findings, the codes of management and planning succession, learning, engaging talented employees, organizational acceptance, the relationship between talent strategy and business strategy, progress management, and organizational culture, have the most impact.

Akhavan Dorbash et al. [41] conducted a study entitled “Optimal talent management model in the National Iranian Oil Company based on the grounded theory”. To analyze the data, the data coding method was used in three stages open, axial, and selective coding with a grounded theory approach. Findings showed that the optimal model of talent management consists of causal conditions which include internal and external industrial factors, contextual conditions (organizational development), intervening factors (organizational learning), central phenomenon (talent management and development), and action strategy (establishment of a comprehensive performance management system).

Talent management has received a lot of attention in recent years, but much research has focused on developing concepts, structures, and definitions. In most previous studies, only certain aspects of talent management and its relationship with other variables of organizational behavior have been considered but a comprehensive model for this purpose has not been provided. Therefore, it can be said that few studies have paid attention to the whole phenomenon of talent management from causal conditions and effective interventions the phenomenon to the phenomenon itself, its definition, phenomena strategies, and finally the consequences of the phenomenon in the form of a conceptual model. Research over the past two decades, despite understanding the concept of talent management, still needs to provide a comprehensive model of talent management in the workplace.

5Research methodology

The present research is conducted with mixed method. That is, first qualitative data is collected through interviews and then analyzed. Then, quantitative data is collected and analyzed, and in the end, interpretations and conclusions are made.

In the qualitative part, data was collected by the review of domestic and international articles and semi-structured interviews as well as documents of MSC. Interviews were conducted with 15 managers and experts by targeted sampling method (Table 3). To analyze the data, the comparative method of Strauss and Corbin including three stages of open coding, axial coding, and selective coding was used. The analysis of the interviews led to the extraction of 86 concepts, which were classified in 5 categories including causal conditions, central phenomenon, background factors, strategies, and consequences. In the quantitative stage, 1600 managers and experts in MSC were selected as the statistical population, and based on the Karjesi-Morgan table, the sample size was estimated to be 310 people and the data was collected by a researcher-made questionnaire. The validity of the questionnaire was confirmed through the content validity ratio and the content validity index (The results are shown in Table 4) and then it was distributed. Out of 310 distributed questionnaires, 300 questionnaires were returned. Structural equation modeling and confirmatory factor analysis with Amos software were used for data analysis.

According to the results of the content validity index for different parts of the questionnaire (contextual factors, causal conditions, intervening factors, the main phenomenon, strategies, and consequences), since all coefficients are higher than 0.75, the content validity of the questionnaire was approved.

6Research findings

6.1qualitative findings

The first step of the interview is about the concept of talent management and talent. Then questions were asked about the need for talent management, the existence or non-existence of a coherent talent management system in the organization, and managers’ awareness of the need to design a talent management system in the organization. In addition to these questions, some issues were raised during the interview that also affected the research from the researcher’s point of view and was analyzed. After that, the interviews were analyzed and 87 concepts were extracted, which were classified into 10 sub-categories and finally 5 main categories. In the following, while introducing each of the dimensions and features of this model, the coding and classification process is described. Table 5 shows an example of the initial interview coding.

Table 5

Sample of initial interview coding

Extracted concept	Interview text
Changing the paradigm from traditional HR management to modern HR management	One of the factors influencing talent management is how human resource management, recruitment, and retention systems are performed. How flexible is it? We must be flexible in the human resource management system. It must be different in every way.
Organization culture	Naturally, the people who enter the system will feel the difference when the leadership of the organization and the way it looks at the people of the organization when it is in the form of capital and values the talent and potential that exists in individuals. Or when the leader views the people in the organization as workers, these views are very effective in a bad way.
Differentiation of individual characteristics and abilities	The ability of people to do things differently may be a physical ability, for example, someone who has athletic talent, either it is a mental ability or it is in a skill such as effective communication. The potential that a person has and this potential can be different. In talent, it is important to be able to differentiate and make a difference.
Talent Management Acceptance	To implement talent management, we need to change people’s attitudes well. Because our top managers are from the previous generation and the concepts are related to the new generation, it is difficult for them to understand these concepts. But we must be able to make the connection between the generations and their thoughts.
Distinguish the salaries and benefits of individuals based on performance	It is very important to care about the person and to be involved in the work and to be right in the work that interests her/his. When an expert sees that she/he is no different from someone who does not do something, she is not very motivated to work. Most key people in the organization do not care much about rewards, but more value is important to them. These are the factors that keep the person in the organization and increase the sense of belonging.
Learning and informativeness of the position	The people we keep in the organization feel very bad that they are not learning anything from the day before. All employees need to feel that they are learning, and that learning is not just about training, it is about the work process. Learning from a higher level than oneself, for example, people learn a lot from their manager. The manager is very effective in growth and development. My selection criteria for the unit were where the manager taught me something. On-the-job training. I think personality training is more important. For example, meeting methods, decision-making methods, and training that convey the tacit knowledge of individuals.

As shown in Table 6, codes have been extracted from the text of the interviews that will be considered as the basis for the work in the following steps. In the next step, the codes that convey the same concept and complement each other, are categorized in the form of general concepts and categories. They were classified into five categories such as causal conditions, strategies, central phenomena, intervening factors, and consequences.

Table 6

Secondary coding and categorization

Main categories	Subcategories	Concepts	Interviewee code
Causal condition	Internal factors	Changing the paradigm from traditional HR management to modern HR management, organization prestige, ISO, and other standards	P1, P3, P6, P7, P8, P9, P10 P11, P15
		Participate in the field of competency and establish assessment centers, strategy map	P1, P2, P3, P4, P5, P10, P11, P15
		leading the steel company among successful industrial and economic enterprises in Iran, Being first in the Middle East	P2, P3, P4, P7, P8, P9, P10, P11, P12, P13, P14
	External factors	Localization, technology growth, business world complexity, human capital growth	P1, P2, P3, P4, P5, P6, P7, P11, P12, P13
		Smartening and use of intelligent systems, Raising the expectations of steel applicants and consumers, Industry outlook, and upstream documentation	P1, P2, P7, P8, P9, P10, P11, P12, P13, P15
Main phenomenon	Distinguishing talented force	Distinguishing individual characteristics Distinguishing personality traits	P1, P2, P3, P4, P5, P6, P7, P8, P9, P10, P11, P12, P13, P14, P15
Contextual factors	organization management	Manager support, leadership ability, Talent Management Acceptance	P1, P2, P3, P4, P8, P9, P10, P11, P14, P15
		Commitment to social responsibility The emotional-social competence of managers	P4, P5, P6, P7, P8, P9, P10, P11, P15
	Characteristics of the organization	Organization rules and regulations, the financial status of the organization Announcement of achievements in the steel company newsletter	P1, P2, P3, P4, P5, P10, P11, P14, P15
		Organizational excellence, organizational culture, and relationship with the university To be a model and bench of a steel company Knowledge system governance	P1, P2, P8, P9, P10, P11, P12, P13, P14, P15
Interfering factors		Tendency to talent due to fashionism, A different view of talent by the university and the organization, Convincing people, not in the talent pool, People’s desire for independence, Cumbersome office processes, Sanction, Involvement of political issues, Quotas, Fear of employing talented people(snake in one’s bosom), Willingness of people willing to work in Tehran or outside Iran, Type and process of exams and job interviews, The diversity of talents required by the company, Offering ordinary tasks to gifted people, Tough economic conditions	P1, P2, P3, P4, P5, P6, P7, P11, P14, P15
Strategies	Exploration	Talent bases, Identification of shared knowledge abilities Self-expression of capabilities, Identification by the direct manager if you have work experience	P5, P6, P7, P8, P9, P10, P11, P13, P14, P15
		Introduced by other elites Identification of academic elites	P1, P2, P3, P10, P11, P12, P13, P14, P15
	Absorption	Written exams, Personality and interview tests, Assessment Centers and Assessment Exercises, Martyrs and their families, Background, and resume of people	P1, P8, P9, P10, P11, P12, P13, P14, P15
		Judged by the directly responsible, Observance of legal considerations (labor law, insurance, civil service, etc.)	P1, P2, P3, P4, P5, P8, P9, P10, P11, P15
	Preservation	Learning and being informative of the position, Two-way and effective communication between manager and employees, Reward people based on hierarchy	P1, P2, P3, P4, P5, P6, P7, P8, P9, P10, P13, P14, P15
		Balanced attention to health and motivational factors, Distinguish salaries and benefits of individuals based on performance, Expression of expectations clearly and transparently, Employee participation	P1, P2P7, P8, P9, P10, P11, P12, P13, P14, P15
		Updating the job difficulty (In collaboration with the Labor Office, Health Network, and Social Security), Role optimization, Meritocracy	P1, P2, P3, P4, P5, P8, P9, P10, P11, P12, P15
	Development	Promotion of people in work based on competency, Communicating instructions to employees, Holding educational courses	P1, P2, P3, P8, P9, P10, P11, P12, P13, P14
		Career development involves informal opportunities, Documenting managers’ experiences, Coaching	P1, P2, P3, P10, P11, P12, P13, P14
consequences	Individual	Empowerment of employees, A feeling of greater commitment and satisfaction, Increasing knowledge and experience, Job stability and security of talented people, Individual brand promotion, Material rewards, and benefits	P1, P2, P3, P10, P12, P13, P14, P15
	organizational	Increasing effectiveness and efficiency, establishing a merit-oriented environment, and keeping people in the organization Improving organizational climate, becoming an organization with excellent performance, organizational entrepreneurship	P2, P3, P4, P5, P9, P10, P11, P12, P13, P14

Selective coding (based on the results of two previous coding steps) as the main stage of theorizing is given in Table 6.

According to the identified factors and their classification, the talent management model can be presented as shown in Fig. 1. Once the components of talent management have been identified, they will shape strategies alongside existing contexts and factors that somehow facilitate or limit the process. Finally, the implementation of these strategies will have consequences at the individual and organizational levels.

Fig. 1

In conclusion, the talent management model is designed as it is shown below

6.2Findings in the quantitative section: Model estimation

After the theoretical formulation of the model to explain the research topic and measure the defined latent variables, it is necessary to discuss model estimation and analysis of general and partial indicators of the model, to determine whether the partial data support the theoretical model or not.

To determine how acceptable the indicators are for measurement models, all measurement models must first be analyzed separately. Based on the adoption of such an approach, first, six measurement models related to variables are tested separately. General model Fit indicators for measurement models (confirmatory factor analysis) are presented in Table 7.

Table 7

General model fit indicators for measurement models

Variable	CMIN/DF	CFI	IFI	GFI	PNFI	RMR
Causal conditions	4.54	0.98	0.98	0.95	0.70	0.05
Axial phenomenon	4.05	0.94	0.94	0.92	0.66	0.04
Contextual conditions	3.19	0.93	0.93	0.93	0.61	0.07
Strategies	4.38	0.94	0.94	0.64	0.93	06.
Interfering conditions	4.56	0.91	0.91	0.96	0.62	0.06
Consequences	1.96	0.92	0.92	0.67	0.97	0.07

As the results show, the normalized chi-square value is between 1 and 5, it can be concluded that the chi-square value is suitable for measurement patterns. The comparative Fit Index(CFI) Incremental Fit Index(IFI)and GFI(goodness of fit index) are greater than 0.9 and it indicates a good fit of the data from the model. Root Mean Square Residual or RMR for these models is less than 0.08 and a is a small value, which also indicates a small error in the models and their acceptable fit. Finally, it can be concluded that the measurement models have a good fit. In other words, the general indicators confirm that the data supports the models well.

After the measurement models were analyzed separately, the results of the factor analysis of all models are presented to test the acceptability of the factor load related to each question and as can be seen in Table 8, convergent validity is accepted.

Table 8

Convergent validity of research variables

Variable	Average variance extracted
	AVE (≥0/4)
Causal factors	0.844
Interfering factors	0.51
Axial phenomenon	0.604
Consequences	0.687
Strategies	0.647
Contextual factors	0.582

After examining and confirming the measurement models in the first step, in the second step, structural equations are used to test the hypothesis. The results are shown in Table 9.

Table 9

Test of the hypothesis

Hypothesis	Beta coefficient	C.R. critical ratio (CR)	Significance p	Result
1. Causal factors have a significant effect on the axial phenomenon	0.89	14.50	0.000	confirmed
2. The central phenomenon has a significant effect on strategies.	0.82	14.57	0.000	confirmed
3. Contextual conditions have a significant effect on strategies.	0.93	12.7	0.000	confirmed
4. Interfering conditions have a significant effect on strategies.	0.74	9.62	0.000	confirmed
5. Strategies have a significant effect on the consequences.	0.92	19.04	0.000	confirmed

Figure 2 and Table 10 show the structural model fit indices. By comparing the values of the indicators with the appropriate fit, it can be concluded that the indicators have acceptable values.

Fig. 2

General model of research.

Table 10

Structural fit indices

Appropriate model\Fit Index	CMIN/ DF	PNFI	CFI	IFI	RMSEA
Structural	4.74	0.70	0.92	0.92	0.08
Proper fit	<5	<0/5	<0/9	<0/9	<0/1

7Discussion and conclusion