leveraging employee engagement through a talent management

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Leveraging Employee Engagement through a Talent Management Strategy: Optimizing Human Capital through Human Resources and Organization Development Strategy in a Field Study A dissertation submitted by Susan L. Sweem to Benedictine University in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Organization Development This dissertation has been accepted for the faculty of Benedictine University. 'eter F. Sorensen Jr., Ph.D Chair May 17, 2009 jrson, Ph.D. Committee member May 17, 2009 May 17,2009

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Page 1: Leveraging Employee Engagement through a Talent Management

Leveraging Employee Engagement through a Talent Management Strategy: Optimizing Human Capital through

Human Resources and Organization Development Strategy in a Field Study

A dissertation submitted

by Susan L. Sweem

to Benedictine University

in partial fulfillment of the requirements for the

degree of

Doctor of Philosophy in

Organization Development

This dissertation has been accepted for the faculty of

Benedictine University.

'eter F. Sorensen Jr., Ph.D Chair

May 17, 2009

jrson, Ph.D. Committee member

May 17, 2009

May 17,2009

Page 2: Leveraging Employee Engagement through a Talent Management

UMI Number: 3349408

Copyright 2009 by

Sweem, Susan L.

All rights reserved.

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© Copyright 2009 Susan L. Sweem

ii

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Abstract

In the past, the human resources function of most organizations has been viewed as

administrators handling paperwork instead of business partners with management.

Yet, most companies have a mission or vision statement that states people are their

most valuable asset. If this is true, the development and concern of employees in any

organization would have the highest strategic priority and employee engagement

within those organizations would be very high. Unfortunately, many organizations

that claim to hold employees as their most valuable asset do not engage their

employees and, as a result, they are underperforming.

The human resource departments should be intricately involved with strategically

planning and implementing human capital programs. If human resources within

organizations want to participate in the formulation of organizational strategy, they

will need to enact a change in the human resources role. Human resources must

partner with organization development in order to integrate organization development

principles and practices into the mainstream. This is a fundamental building block of

talent management strategy.

This field study explores how talent management and employee engagement are

defined and investigates how a talent management strategy affects employee

engagement within a US service unit of a coatings/chemical company. It also

iii

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explores how human resources (HR) and organization development (OD) can support

a talent management strategy.

Using a mixed methods approach of implementing various interventions within the

service unit and comparing the results with the other US business units through

survey data and semi-structured interviews, the findings conclude that the key

components of talent management are a continuously improving work environment,

an open climate and clear top communication. The components of the engagement

construct are: A supervisor who coaches; employee development; transparent trust;

meaningful and challenging work; and commitment. Based upon these constructs and

this field study, a talent management strategy does significantly increase employee

engagement. Further, when these two constructs are combined, they drive

environmental and cultural organization change. Finally, the research demonstrates

that talent management is strategic HR/OD. As a result, a model is proposed in which

talent management strategy is rooted within HR/OD strategy. In turn, HR/OD

strategy is embedded within organizational strategy.

iv

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Acknowledgements

I would like to acknowledge the contribution of key individuals who gave me

guidance and support throughout this dissertation process and journey. First, I thank

my husband, Steve, and our three children, Tyler, Kristin and Alex who shared

sacrifices, stresses and celebrations along the way. Your never-ending encouragement

and support was instrumental in allowing me to spread my wings and complete my

dreams. Learning is a life long experience and I hope I can support you just as you

have me wherever your learning journey takes you. I love you all so much.

Second, I acknowledge the assistance of my committee: Dr. Peter Sorensen, Dr.

Therese Yaeger and Dr. Philip Anderson. Each one of you offered valuable input

while also providing support and encouragement throughout this process.

Third, I thank Dr. George Hay for his beneficial assistance and coaching throughout

my journey. Your "good cheer" and positive affirmation were most appreciated.

In addition to these individuals, I acknowledge my manager as well as my colleagues

in the organization in which I worked during this process for supporting my research.

I thank you for your willing participation in interviews, workshops and other

activities.

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Finally, I thank my fellow Cohort 6 members for their support and encouragement

throughout our time together. We trusted the process and made it together!

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Dedication

To Steve, Tyler, Kristin and Alex -

Because of your never-ending love and support, I have been able to spread my wings

and soar!

vii

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Table of Contents

Leveraging Employee Engagement through a Talent Management Strategy: Optimizing Human Capital through Human Resources and Organization Development Strategy in a Field Study i Abstract iii Acknowledgements v Dedication vii Table of Contents viii List of Figures x List of Tables xi Chapter 1: Introduction 1

Introduction 1 Background 2 Research Proposal 11

Chapter 2: Literature Review 16 Talent Management 16 Employee Engagement 25 Talent Management and Its Relationship to Employee Engagement 31 How Can a Talent Management Strategy Drive Employee Engagement and Influence Organizational Strategy? 33

Resource-based Theory 35 Integrated Strategic Change Theory 38 Built-To-Change Theory 40 Talentship 42 The Impact and Practicalities of Talent Management Theories 45

A Model for Leveraging Engagement Through a Talent Management Strategy... 49 Chapter 3: Research Approach and Methods 53

Research Approach 53 Field Study 56

Research Questions 60 Design 60 Data Collection and Analysis 68

Summary 92 Chapter 4: Findings and Results 94

Organization of Field Study Findings 94 Summary of Results 95 Quantitative Survey Results 100

Engagement Construct Factor Analysis 101 Talent Management Construct Factor Analysis 124

Quantitative Findings 140 Engagement and Talent Management Constructs 140 Talent Management Model 142

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Quantitative Limitations 146 Qualitative Results/Findings 147

Supporting Qualitative Themes for the Talent Management Construct 150 Supporting Qualitative Themes for the Employee Engagement Construct 158 Talent Management Strategy 174

Intervention Results/Findings 175 Supporting Interventions for the Talent Management Construct 175 Supporting Interventions for the Employee Engagement Construct 180 Summary of Intervention Findings 187

Summary of Triangulation of Results and Findings 187 Summary 192

Chapter 5: Discussion 193 Introduction 193 Summary of Key Findings 193

Talent Management Positively Affects Employee Engagement 194 Impact of Results on the Field Study and the Key Findings 202

Limitations of the Study 213 Summary 215

Chapter 6: Conclusion, Implications and Future Research 216 Conclusion 216 Implications 217 Future Research 220 Contributions of this Study 221

Appendix A: Timeline for CSU Study 222 Appendix B: Survey Questionnaires 224 Appendix C: Interview Questionnaires 255 Appendix D: Supplemental Statistical Data 262 Reference List 277

ix

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List of Figures

Figure 1. Talent Management Model 50 Figure 2. Axial Coding Framework 90 Figure 3. Selective Coding toward a Central Category 91 Figure 4. Means for Overall Engagement including Commitment 122 Figure 5. Means for Coaching Supervisor 122 Figure 6. Means for Performance Development 123 Figure 7. Means for Transparent Trust 123 Figure 8. Means for Challenging and Meaningful Accomplishments 124 Figure 9. Means for Continuous Work Environment Improvement 136 Figure 10. Means for Open Climate 136 Figure 11. Means for Communication; Clear Top Management Direction 137 Figure 12. Key Talent Management Themes that Affect Employee Engagement... 148 Figure 13. Qualitative Key Themes that Link to the Talent Management and Employee Engagement Constructs 149 Figure 14. Talent Management Model Dimensions and Corresponding Talent Management and Employee Engagement Constructs 189 Figure 15. Talent Management Defined Through Practice and Theory 196 Figure 16. Employee Engagement Defined through Practice and Theory 199 Figure 17. Strategic Talent Management Model 201

x

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List of Tables

Table 1. Definitions of Talent Management 20 Table 2. Definitions of Employee Engagement 30 Table 3. Employee Engagement Survey Questions 76 Table 4. Survey Response Rate 82 Table 5. Open Coding Categories 88 Table 6. Talent Management and Employee Engagement Drivers and Supporting Dimensions 96 Table 7. Engagement Dimension and Corresponding Survey Questions 102 Table 8. Engagement Construct: Total Variance Explained 108 Table 9. Engagement Construct 109 Table 10. Engagement and Commitment Constructs: Total Variance Explained... 112 Table 11. Engagement and Commitment Construct 113 Table 12. Cronbach's Alpha for the Engagement Construct 114 Table 13. Validation of the Engagement Construct based on Survey Questions 116 Table 14. Means for Engagement Dimensions 120 Table 15. Percentage of Survey Respondents that Agree with the Statement under each Engagement Dimension 121 Table 16. Talent Management Dimension Survey Questions 125 Table 17. Talent Management Construct: Total Variance Explained 128 Table 18. Talent Management Construct 129 Table 19. Cronbach's Alpha for the Talent Management Construct 130 Table 20. Validation of the Talent Management Construct Based on Survey Questions

131 Table 21. Means for Talent Management Dimensions 134 Table 22. Percentage of Survey Respondents that Agree with the Statement under each Talent Management Dimension 134 Table 23. ANOVA Results of Talent Management and Engagement CSU Questions

138

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Chapter 1: Introduction Introduction

Change is often perceived as not only necessary for progression forward but also

essential for survival (Falkenberg, Stensaker, Meyer, & Haueng, 2005). Organizations

strive to become better and better, but in order to become the best they can be, change

must occur. Change can be viewed as negative or positive and, in some cases in order

to move forward, it becomes both for those involved in the process. However, for

organizations to become the "best," the change must ultimately result in a positive

stance. So often it is the behavior of the organization that drives the employee talent

and ultimate success.

The success of any organization relies on strategy (Worley, Hitchin, & Ross, 1996). It

is important for functions within an organization to collaborate and partner in order to

build and implement a company's strategy. Human Resources (HR) is no exception.

Organizations must change their human resources focus from one of administration

towards one of developing business partner strategies in order to integrate

organization development principles and practices into the mainstream. This is a

fundamental building block of a talent management strategy which involves both

employee and organization development (McCauley & Wakefield, 2006). It begins

with a focus on commitment, engagement and accountability (Ready & Conger,

2007). As organization development (OD) has evolved and connected with HR, it has

focused on aligning its practices in multiple roles and directly affecting firm

1

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2

performance (Lawler & Worley, 2006). So many organizations have a vision or

mission statement that states people are their most valuable asset. If this is true, the

development and concern of employees in any organization would have the highest

strategic priority and employee engagement within those organizations would be very

high. Many surveys conducted by consulting firms consistently state that high

employee engagement enhances organizational performance and contributes to the

bottom line (Debunking the Myths of Employee Engagement, 2006; Employee

Engagement Report 2006,2006; Gebauer, 2006). Why is it then that many

organizations that claim to hold employees as their most valuable asset do not engage

them and employees are, in fact, underperforming?

As human resources begins to focus on developing its most valuable resource (i.e.

employees), how does a talent management strategy affect employee engagement?

What is talent management and what is employee engagement? What is the affect of

talent management on organizational strategy? These are questions that should be

answered in order to develop an effective talent management strategy that promotes

employee engagement and drives organization effectiveness.

Background

This is a field study of a country service unit, CSU, within a large, multinational

coatings and chemical company, CoatCo. CoatCo is foreign-owned and

headquartered in Europe. The organization has been experiencing dramatic change as

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it is refocusing on its core product competencies of coatings and chemicals. In 2007,

it divested a pharmaceutical division that had been known as the cash cow of the

company throughout the 1980s and 1990s. However, this pharmaceutical organization

had only niche products and markets with limited expansion possibilities. As a result

it was sold to another pharmaceutical organization.

In January of 2008, CoatCo acquired a global coatings organization that increased its

size and revenues by one third. This confirmed the direction of the organization

towards becoming one of the largest coatings and chemicals companies in the world.

Originally, CoatCo had its roots in Europe—as early as the late 1700s. Through

acquisitions, the company grew and expanded its products in both chemicals and

pharmaceuticals. For the past fifteen years CoatCo had been highly decentralized and

each business unit ran its own business as a separate entity. Talent was "home grown"

as technical and functional career tracks allowed individuals to advance, although

typically it was only within one business unit. Employees did not transfer across

business unit boundaries. Historically, employees had been loyal to the company with

tenure averaging over 11 years. Based upon its European roots, job security was a

given, even in the US. Employees were taken care of from cradle to grave. With poor

financial results and the downturn of economic times in 2001 and 2002, CoatCo

began to address a need for a new business strategy.

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In May of 2003, a new CEO was appointed and, for the first time, an outside

candidate was selected. This gentleman was considered young by company standards;

he was not nearing retirement and he had multiple years of global experience in

different industries. He was not "home grown" and would become the outside change

agent the company needed in order to move the organization forward with growth and

sustainability.

The CEO's basic philosophy with respect to recruiting senior management teams was

to find people who were curious, who did not necessarily know all the answers but

showed willingness to look for innovative solutions, were committed to change and

possessed a passion for quality. He reconfigured his senior management team by

hiring an outside candidate for the position of Senior Vice President of Human

Resources in June, 2004.

In the past, the VP of HR had simply been a holding position for individuals who

were waiting to retire regardless of their prior experience or expertise. Human

Resources did not have the respect of the organization and certainly did not sit at the

table with other senior leaders. It was strictly an administrative function and viewed

as a "necessary evil" unable to provide value-added assistance to the businesses.

The new Sr. VP of HR was also relatively young, from a different country than

CoatCo headquarters location and offered global HR expertise. The organization was

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becoming ripe for change with new ideas and experiences abounding from top

management but would have to determine how it would cascade a new philosophy to

the business units who ran their businesses very autonomously. A new strategy would

need to be developed and HR would be an important contributor as a business

partner.

The new strategy emphasized creating a platform for growth both organically and

through acquisitions for the prominent businesses and reinforcing the financial

position. Long-term growth and sustainability were vital components. This strategy

would be implemented to build a performance-driven culture. It included pursuing an

entrepreneurial spirit within the business but also focusing on individual integrity as

well as social responsibility. Business units that did not perform would risk the

possibility of being divested.

One of the main reasons for change within the organization was driven by the poor

results of the pharmaceutical business units. Despite tough economic and market

conditions, the rest of the company did manage to grow but not the pharmaceutical

units. This group had lost a patent on a best-selling drug and did not have new drugs

in the pipeline. As a consequence, the organization had to make a significant decision

to either reinvest in the unit or divest it. In early 2006, the company announced its

intention to separate from the pharmaceutical group. The company would now focus

on its core business: coatings and chemicals.

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Another reason for the change was the intense growth opportunities for the company

in the developing markets of Asia. The potential for economic growth was already

becoming a reality in this region. The coatings and chemical groups could become the

largest in the world with this growth opportunity.

Included in the company's strategy was the focus of its people. The organization

issued a new company statement in 2005 with refocused commitments and ambitions

to its people.

The company regards people as its most important resource. We foster leadership, individual accountability, and teamwork.

Our employees are professionals whose entrepreneurial behavior is result-oriented and guided by personal integrity.

They strive for the success of their own units in the interest of the company as a global company. In return, our employees can count on opportunities for individual and professional development in an international working environment. We offer them rewarding and challenging assignments with room for initiative.

It became clear that change was imminent and the human capital element would play

a large role. The CEO made note that what really differentiates companies in the

long-term is not the product or even the service, but the quality of the people.

Therefore, what really matters in making companies strong and competitive is

developing people. With this driving principle at the forefront, the CEO's goal was to

build a talent factory. It would require consistent policy in terms of developing talent

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that could be innovative and, as a result, provide sustaining success. This was the new

role of HR as a business partner.

There were several external challenges for HR as it analyzed the situation. The

continuing globalization with heterogeneous, geographic profiles became very

evident. The intensity and pace of the competition was fierce. In many areas, the

competition for talent was immense due to a shortage of skilled workers. The

workforce was becoming "mature" with differing generational needs and wants. And,

technology had changed the requirements for managing and communicating with

people.

Internally, the company was made up of small business units with a broad portfolio of

businesses. The company desired to move from a fully independent model to an

entrepreneurial synergy model. It desired to become one company but with

entrepreneurial business units. The workforce had matured with long serving and

stable individuals. Equally vital, limited investment had been made into the people in

the past.

To create a high performing organization, change in many areas would need to occur

including communications, performance management, employee development, and

rewards and recognitions. Each business unit would have to embrace this new

strategy in order to build a talent factory.

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In an initial move to gain support, the executive compensation program for all

business units was revised for consistency purposes. In the past, bonuses were granted

based upon individual objectives and little focus on company performance. With the

introduction of the new Economic Value-Added (EVA) model, the emphasis turned

to creating value for the organization for long-term growth. In addition, long-term

incentives were added to the package. This was the first time that the company was

looking long-term versus quarter to quarter.

In another move to further advance the road toward a talent factory, an individual

from outside the organization was hired to become the Director of Talent

Management in June, 2005. This individual was not a European but an American,

another sign of change as well as diversity. It signaled that the organization was

changing its focus and approach to its most valuable asset, its people, while

recognizing the necessary diversity of a global company.

As a part of this talent management function, a world-wide performance management

system was implemented in 2006 for the first time in the company's history. It was

applicable to all business units with a consistent form of evaluation structures,

focused on six company competencies:

Results orientation

Customer focus

Quality commitment

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Trustworthiness

Teamwork

Innovation

These core competencies were derived from the organizational strategic building

blocks of entrepreneurial spirit, social responsibility and personal integrity. The new

process would drive the culture of the company to focus on results, development and

differentiation. It was considered a critical and timely opportunity to initiate and

improve the focus on the people.

However, the most sweeping change from the performance management system was

the drive for performance differentiation through the executive compensation

program. Both the short-term and long-term incentive plans were directly tied to the

individual results of the performance appraisal. It was impossible to receive one

hundred percent of the bonus without exceeding expectations and goals. To simply

meet the basic requirements of a job would no longer be acceptable. The drive for

performance was on.

In May of 2006 a world-wide employee survey was conducted. This was the first time

all business unit employees participated in an employee survey. The results would

serve as a benchmark for the global organization, country organizations and the US

country service unit (CSU). Surveys have broad appeal and carry a sense of

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legitimacy as they are viewed by many people as being democratic, fair, and typically

a confidential means of assessing a wide range of opinions with an easy method

(Church & Waclawski, 1998). In the words of the CEO, the survey was conducted

because, "We want to create a true 'talent factory' at CoatCo and to strengthen our

focus on our people, their capabilities and ongoing development." The survey was

utilized as a tool to provide feedback to business units and departments on how it

feels to work at CoatCo; and the survey would allow improvement action plans to be

put in place.

A basic belief at CoatCo was that business results and customer satisfaction are

stronger when people feel motivated, energized and engaged. Church and Waclawski

(1998) purport that through the use of surveys and data analysis, one can identify

what types of behaviors or working conditions need to be changed or reinforced that

will lead to employees feeling more satisfied. In addition, they emphasize that a

company can use initial survey data to establish a baseline measure against which

future survey results can be tracked.

Overall on a global basis, the most favorably rated items were: customer focus,

quality commitment, and teamwork. The most unfavorably rated areas that needed

attention included developing others, managing performance, and stimulating an open

climate. While employee engagement rated in the middle, it was clearly linked to

these factors. These results came as no surprise to the company or the employees. If

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the company was going to become a high performing organization, it would have to

further develop and implement a talent management strategy. The company would

need to focus alignment on its most valuable asset with the strategic intent of

becoming a high performing coatings/chemical organization. "Strengthening the

business by engaging our people" became the company motto.

Research Proposal

In order to develop the talent within the individual business units, organizational

change has to occur as part of the human resources strategic plan. Organization

development tools and interventions must be incorporated into the business unit

model. However, in a highly decentralized company, this can be difficult. Each

business unit may have different methods of accomplishing this feat.

This research will examine one particular country service unit in the US referred to as

CSU. The service unit is responsible for the functional areas of the corporation such

as legal, tax, human resources, finance, treasury, procurement, and IT functions

within the US. The human resources function of this service unit (SU) strives to be a

business partner with the business units located in the US that provide programs and

processes to enable the business unit to attract, motivate, deploy and retain talent to

support the business objectives. The main focus is a consultative role to provide the

expert HR resources business units that will typically not employ themselves. These

areas of expertise include benefits, compensation, expatriate administration, retiree

administration, organization development and acquisition and divestiture activity. The

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business unit is then better able to focus on its core business objectives. The core HR

objectives of the CSU are,

1. Deliver services in a customer-focused environment,

2. Create an entrepreneurial organization which embraces the shared values of

working together and understanding the business unit (BU) objectives,

3. Improve continuously through the constant review of work streams and provide

continuing education.

As a service unit, it both struggles with its identity and providing development and

growth for its own employees. So much time and effort is put into servicing the

business units that it often ignores its own needs that are keys to providing sustainable

growth and opportunities for the future to the entire organization. This situation

yielded a new opportunity to focus on investing in its own human capital in order to

improve performance and engagement within the service unit. Here was the pristine

time to create a talent management strategy designed to enhance the skills and

knowledge of the employees of the organization.

Based upon the initial employee survey in 2006, the key areas identified with the

lowest scores for the CSU were survey utilization, developing others and managing

performance. These same areas were identified for the organization on a global basis

as well as within the US.

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The management of the service unit put together goals for improving its talent

management and engagement strategy based upon the benchmark global data.

1) Managing the performance of the employees was rated extremely low. The rewards and recognition of the employees were seen as a detriment instead of as an award. A review of the rewards and recognition program would need to be conducted as well as examining the work-life balance programs.

Specific areas to address included: a) merit increases b) recognition programs c) flexibility

2) Development of employees was also rated low. The existing programs needed to be reviewed and analyzed and new recommendations needed to be made. In addition, there was a corporate initiative to review development needs within the entire organization. The CSU would participate on the global committee and the results would be incorporated into the CSU strategy as well.

Specific areas to address included: a) Education and seminar opportunities b) Cross-training c) Development dialog program

3) Communication was a strong concern from the survey. The employees perceived a weak link in communications. Vehicles for a higher level of communication would need to be explored as well as determining the most effective types of communications.

These goals began to form the building blocks of a talent management strategy that

would focus on the organization's most value asset; it's people.

This field research exploration will look to answer the following questions:

• What is talent management? How is it defined?

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• What is employee engagement and how can it be defined for both practitioner and

academic purposes?

• How does a talent management strategy affect employee engagement?

• Can organizations increase employee engagement through a talent management

strategy that yields better organizational effectiveness and alignment with

strategy?

• How should HR/OD support a talent management strategy?

The study of this particular CSU will illustrate how human resources and organization

development have partnered to contribute to the overall company strategy of holding

the most valuable asset, the people, as the differentiator of a successful, effective, and

sustainable organization. It will highlight the attributes that allow for a change in

emphasis on the employees of an organization through talent management and how

their engagement can make a difference toward achieving an organization's overall

goals and strategy.

Chapter 2 outlines the relevant literature research related to talent management,

engagement and organizational change. The research approach and methods are

covered in Chapter 3. A triangulation of data approach is outlined that includes

utilizing both quantitative and qualitative methods. Chapter 4 discusses the results

and findings of the quantitative surveys and the qualitative interviews. It also outlines

the interventions and their results in relationship to the quantitative and qualitative

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data. Chapter 5 discusses the implications of the findings as they relate to theory and

the scholar-practitioner use in talent management strategy and engagement. Chapter 6

summarizes the conclusions and reviews the implications of the study for scholars

and practitioners. It concludes with a discussion of potential future research.

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Chapter 2: Literature Review

Talent Management

The term talent management first emerged in the late 1990s and was popularized

when a study completed by researchers within McKinsey and Company revealed that

it was not "best" practices that distinguished high performing companies but it was a

pervasive talent management mindset (Michaels, Handfield-Jones, & Axelrod, 2001).

The competitive advantage for organizations comes from having superior talent and

managing it appropriately throughout the organization. It is the responsibility and job

of all managers. Michaels, Handfield-Jones and Axelrod (2001) found that on average

companies that did a better job of attracting, developing and retaining talented

employees earned a 22 percentage point higher return to shareholders. But is talent

management just a new term for an old concept?

There is nothing new about companies wanting to secure the best talent

("Everybody's doing it," 2006). The East India Company, founded in 1600, used

competitive examinations to recruit alpha minds. GE did it with its "people

development." But something is new in the air. Managing talent has become more

important to a much wider range of companies than it used it be. Talent management

practices have developed and adapted through the years in response to many changes

in the workplace, from the industrial revolution to globalization to outsourcing.

16

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Talent management has taken different forms over the years and does not only look at

finding the best talent but also at developing the individual. Schein (1978) examined

development of the individual throughout the career cycle and developed the concept

of career anchors. Career anchors evolve over time in one's personal and

occupational experiences. It is defined as the area of self concept that a person would

not give up if forced to make a choice (Schein, 1978). They organize and constrain

career decisions. A career anchor has three components:

1. self-perceived talents and abilities,

2. self-perceived motives and,

3. self-perceived attitudes and values.

The concept emphasizes the interaction between abilities, motives and values into a

person's "self concept". It is the "real self.

Schein (1978) originally identified five career anchors:

1. technical/functional competence,

2. general managerial competence,

3. autonomy/independence,

4. security/stability,

5. entrepreneurial creativity.

In the 1980s, Schein (1996) identified three additional anchors:

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1. service/dedication to a cause,

2. pure challenge,

3. lifestyle.

It was very evident in the 1970s where individuals stood with respect to their career

anchors. However, in the 1980s, Schein (1996) found that people had to adjust to the

turbulent environment that existed within organizations and the three additional

anchors emerged. He found that people had to become more self-reliant with rapid

technological and economical changes. People do want to increasingly provide a

contribution to the greater good and general managerial skills were becoming more of

a standard process for most jobs.

In order to attract talent, organizations need to take these factors into account. In

addition, these same factors will play a role in the development of individuals within

the organization. As firms provide development opportunities, individuals will need

to assess their own career anchors to determine how to best increase productivity and

engagement. However, not all firms provide development. Schein (1996) questions

whether, "individual career occupants have to plan and budget for their own learning,

or will private and/or public organizations take on some of this burden because it will

ultimately be to their advantage as organizations?" (p. 83). Unfortunately, ten years

later, this question still has not been answered. Most organizations are still trying to

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figure out what talent management is and how best to optimize it. There are no

standard development programs.

Schein (1996) does advocate greater employee participation especially with his

research on career anchors, but also imposes on organizations a need to do better

work design and development of roles through open-systems planning. He adds that

employee development will become a process rather than an initial selection based on

an individual's history. Schein (1996) predicted that organizational culture and

climate will be a key factor to changing this direction and human resource strategy

will become decentralized into organizations in order to become integrated with the

overall corporate activity. He acknowledged that talent can be developed in the

individual but that the culture or climate must also be appropriate for this to occur.

This laid the foundation for further development and alignment of talent management

strategy.

Managing talent has become more important to a wider range of companies than it

used to be. The future of talent management may be about embracing and leveraging

connectedness (Frank & Taylor, 2004). Corporations now appear ready to embrace

this concept (Oakes, 2006). In fact, it has become a strategic imperative for many

organizations (Ashton & Morton, 2005). Talent management is actually a part of the

overall strategy for companies. It is taking precedent in terms of how organizations

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can compete with the best resources available for the highest organizational

effectiveness.

There are numerous articles and literature primarily in the popular and practitioner

press directed towards the field of talent management (Lewis & Heckman, 2006). But

there is a lack of clarity regarding the definition, scope and overall goals of talent

management; it is rarely addressed in the academic journals (Lewis & Heckman,

2006). This is the gap to bridge the practitioner and academic worlds. Table 1

provides a summary of the various streams of thought with respect to talent

management as well as provides a proposed holistic definition of talent management

based on the research.

Table 1. Definitions of Talent Management

Human Resources = - Talent management is a collection of Talent Management typical HR department practices (recruiting,

selection, development, career/succession management) - Replaces the term HR with Talent Management

Talent Pool Concept - Talent management is a set of processes designed to ensure an adequate flow of employees into jobs throughout the organization

- Related to human resource planning - Focus is on internal "workforce/manpower" planning; succession planning

Right people at the right time in the right job

Table 1 continues

(Byham,2001; Heinen & O'Neill, 2004; Olsen, 2000)

(Cheloha & Swain, 2005; Jackson & Schuler, 1990; Kesler, 2002)

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Generic Talent Management

- Talent management does not just focus on specific positions or boundaries: 1) manage talent according to performance 2) manage talent as an undifferentiated good and emerges from both humanistic and demographic perceptions - It is critical to manage everyone to high performance because demographics and business trends make talent more critical - Cooperation and communication of managers at all levels - Align the talent and developmental needs of organizations and their leaders to achieve business results through succession planning and management.

(Buckingham & Vosburgb.,2001; McCauley & Wakefield, 2006; Redford, 2005; Rothwell & Poduch, 2004)

Holistic Talent Management Concept

- Talent management is a concept and a strategy that: 1) Integrates human resources and systems

a) cuts across all departments and levels b) cooperation of all employees and managers from Board ofMgmt to the lowest level of employees 2) Facilitative in nature (OD-like) 3) Aligns talent with business strategy (not an HR initiative) 4) Proactive in terms of future growth and sustainability 5) Develops improved processes for developing and managing talent 6) Connectedness in culture among all employees/managers

The first area of consideration is that talent management is a collection of typical

human resources department practices, functions, activities or specialist areas such as

recruiting, selection, development and career and succession building (Byham, 2001;

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Heinen & O'Neill, 2004; Olsen, 2000). It is managing the HR function but doing it

faster or across the entire organization. The term HR is essentially replaced by Talent

Management (Conn, Khurana, & Reeves, 2005; Conger & Fulmer, 2003; Garger,

1999).

A second stream defines talent management in terms of talent pools. This track is

closely related to succession planning or human resource planning as it focuses on

internal talent rather than external (Cheloha & Swain, 2005). Talent management is

an architecture where a set of processes are designed to ensure an adequate flow of

employees into jobs throughout the organization (Jackson & Schuler, 1990).

Essentially, it is having the right people at the right time in the right job (Kesler,

2002). It is not unusual for many organizations to consider talent management as the

recruitment process where technology can automate the procedures. If the definition

is more than recruitment, it takes the employee lifecycle into consideration and

includes not only attracting talent but also aligning and maintaining performance

while developing talent ("A framework for talent management," 2007).

Buckingham and Vosburgh (2001) define talent management in terms of managing

talent according to performance and as an undifferentiated good that emerges from

both humanistic and demographic perceptions. This is "generic" talent management.

It does not focus on just specific positions or boundaries. A critical component is to

manage everyone to high performance which requires cooperation and

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communication of managers at all levels (McCauley & Wakefield, 2006; Redford,

2005). It is the implementation of integrated systems designed to increase workplace

productivity by developing improved processes for attracting, developing, retaining

and utilizing people to meet current and future business needs ("SHRM HR

Glossary,"). Rothwell and Poduch (2004) further develop the notion that talent

management includes succession planning which is a systematic, long term approach

to meeting present and future talent needs in order to meet business objectives but

also go a step further. It is not just about putting the right people in the right place at

the right time but embodies any effort designed to ensure the continued effective

performance of an organization or department by focusing on the development,

replacement and strategic application of key people over time (Rothwell, 2000).

Rothwell and Wellins (2004) purport utilizing competency models to help plan for

future talent requirements, identify work expectations, provide a common language

for feedback discussion regarding performance and recruit and select new talent.

These all work in concert to develop individuals and plan for the future needs of an

organization.

Talent management is much more than simply recruiting, succession planning,

training and putting people in the right jobs at the right time. While these dimensions

are all included in talent management, there are other important components to

consider as well which include communication, development of the individuals, and

the culture or climate of an organization. It is a strategic imperative (Ashton &

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Morton, 2005). When talent management becomes a core competence, it significantly

improves strategy execution and operational excellence. It is a holistic approach to

both HR/OD and business planning. It improves the performance and the potential of

people who can impact the organization. Ashton and Morton (2005) conclude since

there is no single, consistent, concise definition, talent management must be fluid so

that as the business drivers change so does the talent management strategy. It

involves the cooperation and communication of managers at all levels. Talent

management must be more strategic, connected and broad-based than ever before in

order to drive performance, deal with an increasingly rapid pace of change, and create

sustainable success which aligns with the business strategy (McCauley & Wakefield,

2006).

Based on the review of these various interpretations, it is proposed that the concept of

talent management may need to take on a more holistic approach. Talent management

is defined by combining many of the attributes into a "whole" model viewed in terms

of a concept and strategy that:

1. Integrates human resources and systems across all departments and levels,

2. Involves the cooperation of all levels of managers from the Board of Management

to the first line supervisors,

3. Facilitates by nature,

4. Aligns talent with the business strategy,

5. Proactive in terms of future growth and sustainability,

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6. Develops improved processes for developing and managing talent,

7. Provides connectedness in culture among all employees and managers.

Talent management is not a HR/OD initiative but is integrated within organizational

strategy. It provides the framework for driving the strategy throughout the company

and at all levels. An organization cannot simply implement one facet of talent

management but must combine them all together in order to build a complete concept

and strategy. By combining all talent management contexts together, talent

management enables an organization to "grow" the future from a holistic perspective.

In order to develop a successful talent management strategy, employees need to feel

"connected" or engaged to their job and/or organization. Effective talent management

policies and practices that demonstrate commitment to human capital result in more

engaged employees and lower turnover (Driving Performance and Retention Through

Employee Engagement, 2004). Employee engagement can make or break a bottom

line (Lockwood, 2006). If this is in fact true, a talent management strategy cannot be

sustained without employee engagement.

Employee Engagement

Similar to talent management, engagement has multiple definitions in both the

practitioner and academic spheres. The practitioner models of engagement are often

defined by the consultants that design employee engagement surveys. The Gallup

Management consultants ("Gallup study: Engaged employees inspire company

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innovation," 2006) express engagement as employees who work with passion and feel

a profound connection to their company. They drive innovation and move the

organization forward. Watson Wyatt views engagement as a combination of

commitment and line of site (Debunking the Myths of Employee Engagement, 2006).

Committed employees are proud to work for their companies and motivated to help

drive success. Line of sight is where employees understand the organization's

business goals, the steps that must be taken to achieve those goals and know how they

can contribute to achieving the goals. Similarly, Right Management (Measuring True

Employee Engagement, 2006) defines engagement as employees committed to the

success of the business strategy. This is interpreted through job satisfaction,

commitment, pride and advocacy. According to Blessing White (Employee

Engagement Report 2006,2006), employee engagement represents an alignment of

maximum job satisfaction with maximum job contribution. Employees are enthused

and use their talents to make a difference in their employer's quest for sustainable

business success. And, Towers Perrin (Global Workforce Study, 2005) views it as

employees' willingness and ability to help their companies succeed by freely and

consistently delivering discretionary effort on the job. In general, most definitions

include employee commitment, a connection to the job and organization and an

understanding of the organization's goals and strategies. Engaged employees exhibit

a willingness to make an extra effort for the success of the company.

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From an academic perspective, employee engagement has multiple definitions as

well. Kahn (1990) defines personal engagement as the "harnessing of organization

members' selves to their work roles; in engagement, people employ and express

themselves physically, cognitively, and emotionally during role performances" (p.

694). They promote connections to work and to others in an engaged environment.

He measures these based on four dimensions of psychological presence: a)

attentiveness, b) connection, c) integration and, d) focus. Rothbard (2001) defines

engagement similarly to Kahn but adds two motivational dimensions which are

attention (amount of time one spends thinking about a role) and absorption (being

engrossed in a role and refers to the intensity of one's focus on a role).

Correspondingly, Salanova, Agut and Peiro (2005) also purport a motivational

construct. A positive, fulfilling, work-related state of mind is characterized by vigor,

dedication and absorption. May, Gilson and Harter (2004) conclude that engagement

is concerned with how the individual employs his/her self during the performance of

his/her job. It entails the active use of emotions and behaviors as well as cognitions.

Maslach, Schaufeli, and Leiter (2001) characterize engagement as the opposite of

burnout and defined by involvement, efficacy and energy.

The antithesis of engaged is disengaged which also has connection to the term

"burnout." If an employee is not engaged, he/she could be burned out or disengaged.

Burnout is a syndrome of emotional exhaustion, depersonalization and reduced sense

of accomplishment (Leiter & Maslach, 1988). It is the feeling of being emotionally

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overextended and drained by one's contact with other people. Maslach, Schaufeli and

Leiter (2001) further define six antecedents of burnout: workload, control, reward,

community, fairness and values. Disengagement is in a similar context. Kahn (1990)

notes that when individuals are disengaged, people withdraw physically, cognitively

or emotionally. Individuals lack connections with others. Gallup ("Gallup study:

Engaged Employees Inspire Company Innovation," 2006) classifies disengaged

employees as "not-engaged" and "actively disengaged." Not-engaged employees are

essentially "checked out." They are putting their time in towards their work but with

no energy or passion. Actively disengaged employees are not just unhappy at work;

they're busy acting out their unhappiness. Thus, burnout can be viewed as the

opposite of engagement. It is the erosion of employee engagement (Maslach & Leiter,

1997). The ability to identify when people are disengaged can play a role in defining

how employees can be engaged. It helps to determine the factors that are important

order to identify areas to improve engagement.

Overall, in the academic literature, employee engagement has been consistently

defined as a distinct and unique construct that consists of cognitive, emotional, and

behavioral components that are associated with individual role performance. Saks

(2006) emphasizes that it is different from organizational commitment in that

engagement is not an attitude; it is the degree to which an individual is attentive and

absorbed in the performance of his/her roles. It also differs from job involvement in

that engagement has to do with how individuals employ themselves in the

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performance of their job; it is not the result of a cognitive judgment about the need

satisfying abilities of the job. Engagement involves the active use of emotions and

behaviors in addition to cognitions. The practitioner definitions tend to overlap into

other constructs such as job involvement and commitment and the academic

definition is more precise, but in general, they both attempt to measure the alignment

and motivation of an employee's effort toward his/her job and the goals of an

organization.

Table 2 summarizes these various definitions and brings forth a proposal for a

combined academic and practitioner definition of employee engagement.

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Table 2. Definitions of Employee Engagement

Practitioner - Engaged employees work with passion and feel a profound connection to their company

- Engagement is a combination of commitment and line of sight. - Employee engagement represents an alignment of maximum job satisfaction with maximum job contribution.

- Engagement means each individual understands and is committed to the success of the business strategy/interpreted through job satisfaction, commitment, pride and advocacy.

- Employees' willingness and ability to help their companies succeed by freely and consistently delivering discretionary effort on the job.

Academic - Harnessing of organization members' selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally; promote connections to work and others (attentiveness, connection integration, focus)

- Attention and absorptions

- Involvement

- A positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, absorption

Combined academic and practitioner approach:

- Job is challenging & meaningful

- Have resources to do job

- Trust in management

- Perceived support from organization

- Perceived support from supervisor

- Rewarded and recognized

- Committed to organization

- Safe to act

(Debunking the Myths of Employee Engagement, 2006; Employee Engagement Report 2006,2006; "Gallup study: Engaged employees inspire company innovation," 2006; Global Workforce Study, 2005; Measuring True Employee Engagement, 2006)

(Kahn, 1990; Maslach et al., 2001; D.R. May et al., 2004; Rothbard, 2001;Salanovaetal., 2005)

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It is proposed that employee engagement should be defined based on both academic

and practitioner characteristics and attributes. There are cognitive, emotional and

behavioral aspects defined by job satisfaction and commitment. The employee is

connected to the job and able to independently and freely perform. It is the notion that

a job is challenging and meaningful. Individuals have the appropriate resources for

their job and perceive adequate, if not positive, support from their supervisor as well

as from the organization. This invites employees to be committed to their job and

company. They feel that they are appropriately rewarded and recognized for their

performance. Employees have trust in management and feel the organizational culture

promotes a positive environment in which to perform. These behaviors, emotions and

cognitions all play a part in the level of engagement for employees that ultimately

affect organizational effectiveness.

Talent Management and Its Relationship to Employee Engagement

Talent management practices and policies that demonstrate commitment to human

resources result in more engaged employees and lower turnover (Driving

Performance and Retention Through Employee Engagement, 2004). Consequently,

employee engagement has a substantial influence on employee productivity and talent

retention. Employee engagement and talent management combined can make or

break the bottom line (Lockwood, 2006). According to a study completed by the

Corporate Leadership Council (Driving Performance and Retention Through

Employee Engagement, 2004), employees who are committed perform 20% better

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and are 87% less likely to resign. In addition, they found a workforce that is engaged

begins with the quality, depth and authenticity of communication by both HR and

senior management to employees. The role of the manager is a key component, if not

one of the most important. It is the manager who enables employee commitment to

the job and organization.

The process of building employee engagement is ongoing. Effective employee

engagement fosters an environment of stimulation, development and learning,

support, contribution and recognition (Lockwood, 2006). Lockwood (2006)

concludes that it is the work experience and ultimately, the organizational culture that

determine employee engagement and retention of talent. To sustain high-level

business results in a global economy, organizations have to reinvent their approaches

to talent management. Effective talent management requires strong participatory

leadership, organizational buy-in and employee engagement (Lockwood, 2006).

Companies that master talent management will be well positioned for long-term

growth in workforce performance for the future.

The demands to manage talent are placing new emphasis on strategic requirements of

the HR/OD function. This paradigm shift requires a new level of participation at the

executive level. As Rothwell and Poduch (2004) note, most executives think of talent

planning as "executive placement planning—that this, planning for senior-level

backups" (p. 45). Rothwell (2002) further explains that talent planning is proactive

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and attempts to ensure the continuity of leadership by developing internal talent, and

needs to be considered at the same time executives make business decisions. But it

goes beyond looking at internal needs to exploring the future goals that may be

outside of the organization and incorporates wider dimensions of strategy planning.

The culture and communications of an organization must also be integrated. The

talent management concept is holistic and encompasses translating corporate goals

into workforce needs, linking people to profit and effectively managing talent to

improving business performance (Farley, 2005). The executive level management

will need to redefine how human capital is incorporated into the overall

organizational strategy. Improved outcomes will only come to those organizations

that learn to master talent management functions.

How Can a Talent Management Strategy Drive Employee Engagement and Influence Organizational Strategy?

In order to sustain business results in a global economy, organizations will have to

rethink their approaches to talent management and how it affects employee

engagement. Many managers understand or even recognize that skilled and motivated

people are key to the operations of any company that wishes to flourish (Barlett &

Ghoshal, 2002). Yet, after a decade of reengineering and decentralizing, employees

are more exhausted than empowered and more cynical than positive. Only marginal

attention has been focused on the issues of employee capability and motivation.

According to Bartlett and Ghoshal (2002), "Somewhere between theory and practice,

precious human capital is being misused, wasted or lost" (p. 34).

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As change continuously occurs in sustaining companies, the talent management

strategy is an integral component of driving continuous transition in the company

(Grossman, 2007). As complexity and change drive organizations, managing talent

will need to move from an art to a science. Long gone is the day of the "gut instinct"

management style (Davis & Stephenson, 2006). Today's business leaders are looking

for decision-making techniques to help run their organizations and to engage the

population. According to Davis and Stephenson (2006), scientific management will

become a necessary tool to not only maintain a competitive edge but simply to stay in

the game. It should come as no secret that people are the ultimate source of sustained

competitive advantage since traditional sources related to markets, financial capital

and scale economies have been weakened by globalization (Ulrich & Lake, 1991).

Pfeffer (1994) also makes the case that if firms are going to compete in today's

economy, they need to build employees who possess the right skills and capabilities.

The best talent management decisions are made when leaders have a wealth of data

on talent in the organization (Farley, 2005). To maintain and build talent requires that

the employees be engaged.

The talent management mindset must be altered. Many senior level managers believe

that capital is the critical strategic resource to be managed. However, it is the human

capital that should be viewed as the strategic resource. There are several different

theories that drive talent management strategy toward engagement and ultimately,

improved organizational effectiveness.

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Resource-based Theory With traditional strategies focusing on profit opportunities in relation to the external

environment, the resource-based view is concerned with the pool of resources and

capabilities as the primary determinants of strategy and performance (Grant, 2005).

Barney (1991) advocates that the role of resources in producing firm-wide results

should be taken into consideration. Sustained competitive advantage comes from

developing resources that are rare and difficult to imitate. Barney includes human

capital in his definition of resources but it must be rare and imitable. Managerial

resources are not necessarily rare unless there is a specific attribute that is not found

in any other firm (Barney, 1991).

The resource-based view emphasizes that the uniqueness of each company is key to

profitability and that exploiting these differences will maintain and sustain

competitiveness. This also includes human capital. Deregulation in many industries

and globalization have played major roles in this change from a pure profitability

view to deploying resources and capabilities. Organizations must have capabilities to

undertake a particular productive role. Hamel and Prahalad (1994) coined the term

core competencies to distinguish those capabilities fundamental to a firm's

performance and strategy. They define core competencies as those that make a

disproportionate contribution to ultimate customer value and provide a basis for

entering new markets. This, too, includes the human capital factor. Bartlett and

Ghoshal (2002) purport that by definition, competency-based strategies are dependent

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on people. People are the key strategic resource and as more and more companies

come to this conclusion, competition for scarce human resources will heat up.

Competency modeling has become a preferred model for identifying a set of skills,

knowledge and values that will align human resources with the organization's

strategy (Grant, 2005). This is an essential factor or else the organization's overall

strategy cannot be implemented and carried forward.

Lado and Wilson (1994) assert that, "The resource-based view suggests that human

resource systems can contribute to sustained competitive advantage through

facilitating the developing of competencies that are firm specific, produce complex

social relationships, are embedded in a firm's history and culture, and generate tacit

organizational knowledge" (p. 699). Companies such as Marriott, Borg-Warner and

Merck have attributed their competitive advantage to their unique methods for

managing human resources. A human resource (HR) system is defined as a set of

distinct but interrelated activities, functions and processes that are directed at

attracting, developing, and maintaining (or disposing of) a firm's human resources. It

is possible that HR systems could destroy or prevent competencies to be fully

developed, thus it is essential to integrate the HR/OD processes into the strategy. OD

contributes by developing the methodology for change to ensure the proper human

resources are available at the right time. In order to achieve sustainable competitive

advantage, continuous monitoring by the firm of competency patterns is vital as

patterns continue to change over time (Lado & Wilson, 1994).

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Organizational culture is another piece of the resource-based view. Simply hiring

individual contributors is typically not acceptable in an organization that has a

strategy of integration or requires teamwork. If employees are not engaged, the

culture cannot be collaborative. Collaboration is a key component of a successful

strategy and often it relates to an intangible asset, which is culture. Schein (1990)

eloquently defines culture as

(a) a pattern of basic assumptions, (b) invented, discovered, or developed by a given group, (c) as it learns to cope with its problems of external adaptation and internal integration, (d) that has worked well enough to be considered valid and, therefore (e) is to be taught to new members as the (f) correct way to perceive, think and fall in relation to those problems, (p. I l l )

This relates directly to resource-based strategy for what a group learns over a period

of time as it solves its problems of survival in an external environment; and its

problems of internal integration as it becomes a complex process to integrate and

account for in totality. Culture can become ingrained and difficult to change but this

is the function of HR/OD to enable the organization to move forward. The change

agent is HR/OD. Many organizational programs fail because culture forces are

ignored (Schein, 1990).

Barney (1986) confirms that a firm's culture does generate sustained competitive

advantages if it has the required attributes. The required attributes include: (a) the

culture must be valuable, (b) it must be rare, and (c) it must be imperfectly imitable.

The firm must be able to do things that enable it to add economic value while

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maintaining engagement and it must have a distinct culture that enables it to

differentiate itself from competitors. As with general products, the culture cannot be

imitable if it is going to be sustainable. This research suggests that if firms can

modify their cultures to improve not only financial results but also increase

engagement and still maintain a culture that is imperfectly imitable, it will sustain

superior performance. Here is where HR/OD can play a pivotal role in developing

this type of sustainable culture. HR/OD must undertake the objective to help

management develop an engaging, motivating and bonding culture necessary to

attract and keep talented employees (Barlett & Ghoshal, 2002). Human resource

practices or processes are developed to manage the skills and abilities of talent in

order to make them more difficult to duplicate for competitors (Lewis & Heckman,

2006).

Integrated Strategic Change Theory

The Integrated Strategic Change (ISC) model encompasses a process that involves

learning and adapting over time to ensure long-term competitiveness to business

changes (Worley et al., 1996). This model includes not only formulating strategy but

also implementing and executing the strategy. Most importantly from an HR/OD

perspective, it focuses on organizational capabilities, human resources and

organizational changes required to implement strategies. It provides for active

participation by the members of an organization to be involved to create higher levels

of shared ownership and commitment and is a continuous process. The essential

factor is the alignment of the firm's structure and processes to support its strategy.

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In this model, formulating strategy and gaining commitment and support for that

strategy, as well as planning and implementing the execution is all one integrated

process (Worley et al., 1996). They are not separate independent activities. HR/OD

works in concert with the rest of the organization to create strategy and provide the

support processes to meet and sustain the goals. The other departments in the

company are embracing and contributing through the processes and steps supported

by HR/OD. This is vital with a talent management strategy.

In the initial step, the organization reviews its readiness for change. Often, the

organization's employees are not ready for change and an HR/OD communication

and intervention must occur. This first stage also includes reviewing the

organization's values and assumptions as well as performance. HR/OD supports this

process through culture as well as activities that are incorporated into the daily

routines of the various departments by supervisors and employees. The HR/OD

system that includes the line management is responsible for selecting, developing and

rewarding managers and employees. If this initiative is not in alignment with the

overall strategy, the process will fail.

In the ISC model, strategy making is also a vital step. The firm's strategic vision is

created. The vision should be developed with participation of the organization

members so they may "buy in" or engage with the vision. The process must involve

employee participation, without it dismal failure will ensue (Worley et al., 1996). To

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gain commitment and trust, the employees must have a say in the direction. Secondly,

they will then perceive the appropriate support from the organization and feel they

have developed the right environment in which to thrive. Finally, with the proper

rewards and recognitions, the employees will feel motivated and be engaged to both

their job and the organization.

Built-To-Change Theory Similar to the resource-based theory, human capital is critical for a competitive

advantage in built-to-change organizations. There is a recognition that market value

rests with human capital. Research by Huselid (1995) has shown that the impact of a

firm's human capital management practices, such as training programs, efforts to

create a good place to work and reward systems do produce superior results. Other

research suggests that one of the key factors is management of talent (Lawler&

Worley, 2006). Competitive advantage now rests in a company's people and its

ability to organize its human capital rather than compete on the basis of tangible

resources. This is a critical component of the built-to-change theory.

The built-to-change model developed by Lawler and Worley (2006) is a continuous

change and adaptive method that consists of environmental scenarios and three

primary organizational processes—strategizing, creating value and designing—which

all revolve around the organization's identity. The strategizing is a process for

enabling a possible scenario for the future through constant change processes.

Organizational capabilities must be created so that change is the key to success. This

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can be accomplished through a partnership of HR/OD with the organization building

the appropriate structure and configuring the appropriate talent management

initiatives and rewards (Lawler & Worley, 2006). Talent management includes

developing individuals to provide the skills as the organization and jobs change. It

may mean hiring individuals who already have the desired skill set but who also are

willing to change along with the business. In other situations, it could mean the

strategy may be to acquire and discard talent as necessary. This travel-light theory,

however, may not build a long-term committed workforce. More typically, it is the

commitment to develop employees that is part of the employment terms.

The built-to-change model advocates managing human capital and making people

responsible for their careers (Lawler & Worley, 2006). An organization needs to keep

the right people, which means utilizing appropriate rewards towards satisfaction.

Lawler and Worley (2006) point out that one of the great challenges in satisfying

employees is achieving alignment between what they value and what the organization

can offer. What might not be readily apparent in this model is that culture influences

this challenge. "All of the activities that revolve around recruitment, selection,

training and socialization, the design of the reward systems, the design and

description of jobs, and broader issues of organization design require an

understanding of how organizational culture influences present functioning" (Schein,

1990, pp. 117-118). In essence, this is the talent management concept that the

HR/OD function can incorporate into the strategy. By measuring the results through

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attitude surveys and statistics such as turnover figures, the effect can be measured on

performance.

IBM is an example of an organization that that has developed HR systems to help

employees manage their careers and provide managers with tools to assist in

employee recruitment (Lawler & Worley, 2006). By providing tools to employees, it

can retain and develop its human resources for future strategic changes. It is

interesting to note that many mangers believe that job satisfaction is an important

determinant of motivation and performance. Lawler and Worley (2006) advocate that

this is false. Job satisfaction does not cause performance but could influence

organizational performance. If dissatisfied employees become disgruntled employees,

they become disengaged and this could result in activities that deviate from the

intended strategy. Hence, it is desirable to create built-to-change organizations that

can make strategy adjustments and change easily throughout the company.

Talentship

Boudreau and Ramstad (2005) have proposed a "decision science" model called

"Talentship" that enhances decisions about talent resources. Their model allows

organizations to enhance decisions about human capital and it connects human

resources to strategy by examining impact effectiveness and efficiency. "People,

intellectual capital and talent are ever more critical to an organization's strategic

success. This observation is so common today that it almost goes without saying"

(Boudreau & Ramstad, 2005, p. 18). Yet, when top executives are asked if their

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decisions about the talents of their people are made with the same rigor and strategic

connections as their decisions about money, technology and products, they admit that

their talent decisions are not (Boudreau & Ramstad, 2005). This is where HR/OD can

help shift the paradigm for organizational strategy.

According to Boudreau and Ramstad (1997), fields such as finance have augmented

their service delivery with a "decision science" paradigm that teaches the frameworks

to make good choices. HR/OD, like finance and marketing, helps the organization

operate within a critical market for talent. It needs a new paradigm of decision

science for talent (Boudreau & Ramstad, 2005). Decision science provides a system

to identify and analyze key issues, adapting to the unique information and

characteristics of the specific context. According to Boudreau and Ramstad (2005):

The lessons from marketing and finance tell us that the goal of talent decision science would be "to increase the success of the organization by improving decisions that impact or depend on talent resources." We have coined the term "talentship" to describe the new decision science, and to reflect the notion of stewardship for the resource of employee talents. Talentship is to HR what finance is to accounting and what marketing is to sales, (p. 20)

Talent decision mistakes are not being made by HR/OD professionals but by leaders

who do not have a full understanding of their implications and effects on talent

backgrounds of individual employees. The greatest opportunity to improve talent

decisions is outside the HR/OD profession.

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HR/OD can control the decisions or equip those outside the profession to better

understand the implications of the decisions they make (Boudreau & Ramstad, 2005).

In order for HR and OD to sit at the table with finance and marketing, they must have

a perspective for offering a unique talent for improving decisions and not just

implementing them. The elements of such a talent decision science model include

impact, effectiveness and efficiency. Often, business leaders and strategists focus

only on business processes and market outcomes while ignoring the human capital

factor. Boudreau and Ramstad's (2005) decision framework provides the means to

participate in strategy discussions which routinely take into account the connection

between talent and strategic success. Their anchor points are impact, effectiveness

and efficiency. Impact relates to sustainable strategic success and the resources and

processes available. Effectiveness correlates to the talent pools, the human capacity

and the corresponding aligned actions. Efficiency links to the policy and practices in

place as well as the investments. Combined together, these all connect toward a

decision-making framework that allows human capital to be evaluated as a valuable

asset within the overall organization strategy.

This change in paradigm of valuing human capital as a top priority allows sustainable

strategic success by implementing this decision science strategy within the

organization's ongoing processes. This is one approach to improving organization

effectiveness by integrating the decision process with on-going systems. It is essential

to determine the effects of a decision before it is made.

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These theories and models provide an opportunity for organizations to achieve

success through one of their most important resources—the talents of their people.

The challenge is to find and implement the preeminent talent management strategy

that will increase engagement and, ultimately, improve organization performance

through alignment with organization strategy.

The Impact and Practicalities of Talent Management Theories If human resources are considered the most important asset, it would seem logical

that there would be a foremost predominant theory for how best to utilize human

capital. Yet, it is very evident that organizations have not placed emphasis on the

talent management of their organizations; technology and costs are driving factors in

what organizations consider key elements to success. However, if companies want

sustainability into the 21st century, they are going to have to change the paradigm and

consider talent into the strategy as a factor.

The resource-based theory accentuates the role of resources. It is the uniqueness of

the resource that provides the competitive advantage (Barney, 1991). However, what

is unique about managers in an organization? Do all managers exhibit the same

managerial skill sets across organizations? It is only through identifying unique skill

sets for the managers that human resources become valuable. Organizations that focus

on development of managers will have an advantage but the focus must be aligned

with company values and competencies. There is no value in organizations that

promote competencies that do not align with company values, as the people will not

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exhibit the appropriate behaviors in the workplace. This will not align with the

direction of the organizational strategy. It may not be difficult to imitate development

models but they will not be valuable or successful unless they align with the

organizational strategy. This includes policies, procedures and culture. The culture of

an organization must be incorporated into the body of the strategy. Individuals that

have not only the appropriate skill sets but also fit into the culture will succeed.

Organizations will have to take this factor into account when evaluating talent needs.

HR/OD will need to be able to identify the culture as well as the resources that fit into

the organizations' environment. Resource-based theory must include the human

element and not only the products or technology.

In order for an organization to create or change a talent management culture, it is

essential to have the participation of the members of an organization (Worley et al.,

1996). HR/OD strategy is integrated directly into the organizational strategy. It is

embedded into it. If employees are involved in the process of defining the strategy

that includes engaging in the vision and support practices, the process will be a

success. However, so many organizations have functional areas that operate in silos

and do not involve other departments in the overall planning, let alone the employees.

The HR/OD function can play a vital role by facilitating communication and planning

across functional lines and ensuring participation by the employees. Commitment and

trust will only emerge once employees are involved. Integrated strategic change will

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not become a reality until managing change and human resources becomes a process

rather than an afterthought.

With the reality that the global world operates on a fast-moving continuum, change is

constantly occurring. No organization can rest on a single strategy for long. It must be

constantly adjusted and reviewed. Lawler and Worley (2006) accentuated this

concept in their Built-to-Change theory and emphasized that talent management

initiatives must be a piece of the integrated strategy. But many organizations do not

consider talent in their strategy even if they are constantly adjusting it. The employees

and skill sets that are valued in an organization may change and an organization, as

well as the employees, must be able to prepare and change for the future. Employees

that fit one day in an organization may not fit the next depending on the needs of the

company. Yet organizations do not restructure their talent needs quickly or

appropriately. The role of HR/OD is not one of processing people but facilitating the

role of providing tools and direction for the development of people for the right jobs

at the right time. As strategy changes, so must the support practices and culture that

support it, such as reward programs, recruitment selection and socialization

processes. HR/OD has not incorporated this into their organization roles and

structures because talent has not yet been a driving strategic factor.

The structures to make these decisions have not been developed within organizations.

Consider the decision of a company to implement a new ERP system. So many

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factors are evaluated in the process such as system requirements, vendor selection,

and cost. The same factors are not considered within a talent decision. When a new

manager is hired or promoted, the same evaluation does not occur. Factors such as

cost, efficiency and impact need to be evaluated and incorporated into the decision.

Regardless of level, it is the employees that will affect the success of an

organization's strategy through commitment and engagement. And, if they are not the

appropriate individuals, the organization's effectiveness will diminish and fail.

As organizations look for the ability to competitively succeed and sustain for the

future, talent management is taking on a new role. A recent survey found that

employers now view "talent management" as the top organizational challenge (2008

Top Five Total Rewards Priorities Survey, 2008). Corporations are now reconsidering

the role of the most valuable asset. It is evident from the emerging theories that the

focus on the alignment of human resources in organizations is vital for success. No

organization is exempt from the rapid global change that occurs continuously. Status

quo is no longer an option for any company. What is successful on one day may not

be the next day. Change and adjustment must occur simultaneously. And, the "asset"

decisions are not only based on technology and equipment but also on people. This

talent management strategy must be integrated and embedded into the overall

organization strategy in order to drive success and sustainability.

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A Model for Leveraging Engagement Through a Talent Management Strategy

Talent management is a strategy, not an HR initiative. It is not a one-time occurrence

or communication. Talent management supports all strategic and cultural objectives

and embodies emotional commitment by management that is reflected in their actions

and decisions (Ready & Conger, 2007). This allows organizations to develop and

retain key employees to meet evolving business needs. However, talent management

will fail without commitment from top management. The passion must start at the top

and be infused into the culture. Ready and Conger (2007) state that the vitality of a

company's talent management process is a product of three defining characteristics:

commitment, engagement, and accountability. Fostering commitment begins with the

new hire and continues throughout a career. Engagement reflects the degree to which

company leaders show their commitment to talent management. Even down to line

management, engagement is vital to ensure strategy is carried out with specific

policies and practices oriented towards talent implementation. As a result, all

stakeholders, including the employees themselves, are held accountable for making

systems and processes robust.

The model below (Figure 1) proposes a holistic concept of talent management. A

talent management strategy encompasses: open communication, employee

development, rewards and recognitions, managing performance and a culture that

supports these attributes. It is a concept that is supported by top management and

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embraced by all managers. Through this strategy, employee engagement can be

secured in order to positively affect overall organization strategy as it is embedded

within the culture and company. It is only through this holistic concept, however, that

an impact can be made. If talent management is not part of the organization-strategy,

it is doomed for failure. It is an entire organizational goal and effort.

Organizational Strategy

HR/OD Strategy

Employee Engagement

Have resources to do job

Trust in management

Rewarded and recognized

Committed to organization

Safe to act

Figure 1. Talent Management Model

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If the basic architecture of a model can be identified and confirmed as core

components of a talent management strategy, organizations can begin to move toward

a more successful performing company.

Organizations must acknowledge that people are their most valuable asset that is a

strategic resource. It is only through maximizing human capital that organizations

will be able to achieve growth and sustain success. Change will continuously occur

but developing a talent management strategy to enhance engagement can result in

improved performance for both the employee and the organization. Ready and

Conger (2007) have summarized the essence of recognizing people as the most

valuable resource:

Leaders have long said that people are their companies' most important assets, but making the most of them has acquired a new urgency. Any company aiming to grow—and, in particular, to grow on the global stage—has little hope of achieving its goals without the ability to put the right people on the ground, and fast. Companies apply focus and drive toward capital, information technology, equipment, and world-class processes, but in the end, it's the people who matter most. (p. 77)

With the proper talent management strategy, human capital can be affirmed as the

number one strategic resource in an organization. This strategy improves employee

engagement that in turn increases organizational success.

This review of the literature has provided contemporary definitions of talent

management and employee engagement. Together, they outline the concepts that are

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examined within the CSU case. The talent management model will be used as a lens

to interpret the data in this study rather than prove or disprove the model. It provides

the foundation for defining more definitive building blocks that bridge talent

management and employee engagement.

The next chapter outlines the methods utilized to explore and explain the talent

management and engagement challenges faced by the CSU at CoatCo.

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Chapter 3: Research Approach and Methods Research Approach

With a holistic talent management approach as an integral component of any

organizational strategy, it is imperative to understand how it affects the engagement

of employees and the corresponding effects on employee and organizational

effectiveness. Continuous change is a basic factor that all companies will have to

contend with in their business strategies (Grossman, 2007; Lawler & Worley, 2006).

However, it is the human capital element that must be considered in the strategy to

determine what factors can have an impact on engaging employees toward higher

levels of performance and commitment, vital to any successful organization.

This dissertation uses an exploratory field study approach to investigate talent

management and how it strategically affects employee engagement. An exploratory

approach allows for investigation and determination of the factors in a talent

management strategy that affect employee engagement. A confirmatory approach

does not allow for the investigation of new factors or values and does not address

how factors are established and utilized. It only tests whether a model is true or not.

An exploratory approach also enables the process of learning from an experience or

action. It is possible to evaluate the impact of interventions or changes and apply the

learning.

53

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This makes the exploratory study more meaningful in terms of understanding the

changes at different points and making adjustments if necessary. This research is

using a proposed talent management model as a lens to view the field study and

explore what did and did not have impact. It will also examine what drivers

influenced engagement. Specifically, it will determine if key components of a talent

management strategy identified as communication, employee development, managing

performance and rewards as well as providing an open climate directly affect

employee engagement; it will also examine how they influenced engagement.

Employee engagement has been shown to be a contributing factor in organization

effectiveness and strategy and therefore, plays an important role in how an

organization best utilizes its human capital {Employee Engagement Underpins

Business Transformation, 2008).

Central to the exploration is the documentation and analysis of a global company's

implementation of a talent management strategy in the US. With talent management

defined in so many different forms, this study will be able to look at one holistic

approach and determine the key factors and outcomes. This will be useful for other

organizations to study as they embark on talent management strategies. They will be

able to leverage the findings within this organization and apply it to others. It

provides a mechanism to develop future talent management strategies.

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As described in Chapter 1, the global organization in this field study was making

changes to its core business and had brought in new leadership. With these top-level

changes, the emphasis turned to strengthening the business by engaging the people.

Each business unit and country organization would need to implement a talent

management strategy. Thus, began the initiative to determine how the most valuable

resource of the organization would be best utilized and developed.

The CSU in the US regards its human resources very seriously given that people

providing services run a service unit. There is no physical product that is

manufactured, but instead, a service is provided and only with top talent will best in

class service be supplied. The CSU would begin a journey to implement a talent

management strategy intending to strengthen employee engagement and building

upon organizational strategy to become a high performing organization.

The chapter begins by clarifying the field study methodology to conduct and describe

the exploratory research. Next, it explains the methodological process that includes

the research questions as well as defining the design. Following the design section,

the data collection and analysis process are explained. It closes by discussing the

limitations of this methodology.

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Field Study

Field studies involve real managers and organizations in contrast with a laboratory

setting where ad hoc groups are created and studied (Scott, 1965). Snow and Thomas

(1994) assert that, "Field research methods can, perhaps more than any other method,

realistically examine strategic processes and outcomes—that is, they provide

mechanisms for observing strategists and organizations in their natural settings" (p.

457). Field studies have taken many forms including single and comparative case

studies, surveys, simulations and natural experiments (Snow & Thomas, 1994). This

research uses a quasi-experimental approach with a comparison of two groups within

a case study of CoatCo. Quasi-experiments are studies that have "treatments,

outcomes and experimental units but do not use random assignment to create the

comparisons from which treatment-caused change is inferred" (Cook & Campbell,

1979, p. 6). Responses of a treatment group and comparison group are measured

before and after a treatment. As an example, Ventkatraman and Zaheer (1990)

conducted a study of an untreated control group design with a pre-test and post-test

design to examine the effects of a technological change on firm performance. Quasi-

experiments can be a powerful method in a field study.

It should be acknowledged that the boundaries between types of organizational

research methods as well as field techniques can be fuzzy (Snow & Thomas, 1994).

Snow and Thomas (1994) cite a variety of research methods that can be used in field

studies: observation, interviews, questionnaire surveys and archival analysis. These

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methods are also often utilized in case studies. A case study involves the study of an

issue explored through one or more cases in a bounded system (Creswell, 2007). It

can be viewed as a methodology or a comprehensive research strategy. Creswell

(2007) defines case study research succinctly as,

A qualitative approach in which the investigator explores a bounded system (a case) or multiple bounded systems (cases) over time, through a detailed, in depth data collection involving multiple sources of information (e.g. observations, interviews, audiovisual material, and documents and reports), and reports a case description and case-based themes, (p. 73)

Case studies are used across a range of disciplines which explains why there is a

variety of definitions and can also include quantitative and mixed method approaches

(Miles & Huberman, 1994; Stake, 2005; Yin, 2003). Yet, most authors agree that it is

a research strategy that covers the design, data collection and analysis. Case studies

can be embedded in the broader field experiment design.

Yin (2003) points out that in a real-life case study inquiry the boundaries between

phenomenon and context are not always clear. As a result, there will be many more

variables of interest than data points. Therefore, the researcher must draw on multiple

sources of evidence and triangulate to discover converging themes to guide the

analysis process. This is true in this research. There are multiple variables of interest

and triangulation that are used with the data to determine overarching themes.

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A first step in determining how the field study will be designed is to determine how

many cases to include in the study. It could be a single-case study or a multiple case

study. This field study is a single-case study with two comparison groups. The CSU

group will participate in the interventions and the other US business units will not.

There could be some ethical question about providing interventions for one group and

not the other, but in this situation, the other business units are decentralized and

independently acting on their own. They are not in the "control" of the CSU.

Yin (2003) describes five situations in which using single-case design is appropriate.

The first one is to test the critical case in a well-formulated theory. A second situation

is when the case represents an extreme or unique case. The situation is so rare or

unique, it warrants documentation. Alternately, a third case is one where it is

representative or typical. In this situation, it is assumed that by studying an everyday

occurrence, something will be learned that can be applied to a larger context. A fourth

case is where the case is a revelatory case. Here, the researcher studies something that

was previously inaccessible. A final situation exists where the case is longitudinal.

The researcher can study the same single case at one or more points in time.

This particular study is both representative and unique. The organization which is

being studied is representative of the Chemical and Coatings Industry, yet it has

unique attributes in that it both divested and acquired a large group within a matter of

the two and half years of study. Single case studies exploit the opportunity to explore

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a significant phenomenon under rare or extreme circumstances (Eisenhardt &

Graebner, 2007). This study exploits the opportunity to investigate how a talent

management strategy is developed and implemented in a service unit when an

organization is changing its business portfolio as well as its emphasis on the

importance of human capital in the business strategy. In addition, this study is

longitudinal in that it took place over a period of two and one half years.

Interestingly, this field case study is also revelatory in nature. A review of the

literature confirms that there is no other documented field or case studies that define,

review and study the outcomes of a talent management strategy and employee

engagement.

The challenge of a single-case study is providing data that is relevant to other

situations. Eisenhardt and Graebner (2007) explain that this can be solved by

presenting a relatively complete rendering of the story within the text. "The story is

intertwined with the theory to demonstrate the close connection between empirical

evidence and emergent theory" (Eisenhardt & Graebner, 2007, p. 29). This will be the

approach of this field study to show how the story compliments the theory through

combined quantitative and qualitative approaches.

The design of the study must also be created to ensure that the research is valid.

According to Yin (2003), this process includes the research questions, its

propositions, if any; its units of analysis; the logic linking the data to the propositions;

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and the criteria for interpreting the findings. This process is outlined in this research

by the research questions, design, data collection, data analysis and findings.

Research Questions

This quasi-experimental field study examines how a talent management strategy

impacts employee engagement. The research questions seek to uncover how talent

management is defined in the organization and what attributes positively affect

employee engagement. Specifically, they include:

1. How can organizations increase employee engagement through a talent

management strategy?

2. What are the talent management and employee engagement drivers?

3. How can employee engagement and talent management be defined for both

practitioners and scholars?

4. How should HR/OD support a talent management strategy?

Design

Unit of Analysis

The primary unit of analysis is a US country service unit (CSU) within the CoatCo

organization. This is the group that is being studied. This group provides functional

services to all of the twelve business units within the United States. The CSU results

are being compared to the other business units in the US. The US business units are

not control groups in the sense of one group is provided with a treatment and one is

not in the same identical settings. Cook and Campbell (1979) refer to this as quasi-

experiments with nonequivalent groups that differ from each other in ways other than

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the presence of a treatment. In this case, the CSU is a service unit and is being

compared to business units. They often have different goals and services. The term

"control" is used in an experimental design sense to eliminate threats to valid

inference (Cook & Campbell, 1979). The assessment of the interventions

implemented for the CSU in comparison to the other US business units helps to

separate the effects and correlates of the treatment. It could be argued that ethically

all groups should receive an intervention, but the traditional notion that an

experimental group should receive the treatment not given to a control group "is a

case of the more general rule that comparison groups are necessary for the internal

validity of scientific research" (Kerlinger & Lee, 2000, p. 487).

The global organization of CoatCo began to obtain opinions through survey data on

employee engagement from employees in May of 2006. The results clearly defined

talent management and development as one of the lowest aspects of the organization

on a world-wide basis. The US service unit would take the initial results of the survey

to begin to build its own talent management strategy.

As part of this process, a talent management model (see Figure 1 in Chapter 2) was

developed to determine if and how it could affect employee engagement. The

management team at CSU supported exploring the model and pursuing interventions

to try to change the culture to focus on employees and enhance engagement.

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Mixed Methods

To examine the model components in Figure 1 for the field study, a mixed methods

plan design was identified using a triangulation approach. Both quantitative and

qualitative measures were utilized for this study as well as reviewing the longitudinal

intervention effects. The model is used as a theoretical lens to interpret what is

occurring in the field study. It allows a better understanding of what is happening

over a period of time.

Mixed methods are often used to increase the validity and support of the results (Yin,

2003). It provides both explanatory and exploratory views. Rossman and Wilson

(1985) state there are three advantages to using mixed methods: corroboration,

elaboration and initiation. Corroboration is the convergence of findings. Elaboration

provides detail and richness and initiation explores ideas missed without looking at

this view. It is through multiple lenses that research can be created and validated.

From a quantitative perspective, scientific research is defined as a "systematic,

controlled, empirical, amoral, public, and critical investigation of natural phenomena"

(Kerlinger & Lee, 2000, p. 14). After intellectualizing the problem, hypotheses are

formulated and deductive reasoning occurs. A test and experiment follows with either

acceptance or rejection of the hypotheses. These results are used to explain causal

relationships and explanations that can then be generalized to other situations and

settings (Newman & Benz, 1998). It should be noted, however, that in some cases,

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quantitative data is used for exploratory purposes rather than to only confirm a

hypothesis. As noted by Rossman and Wilson (1985), it is through the use of

corroboration and elaboration that quantitative in conjunction with other sources of

data can provide validated results. The quantitative data does not have to only

confirm or disprove data. This field study is utilizing the quantitative data for

exploratory purposes.

Surveys provide one form of quantitative data analysis. The data can be used to

review correlations and relationships for further explanation or research. However,

surveys have limitations as well. There is no consistent manner to determine how a

participant is interpreting or answering a question based on the current emotional

state or environment and questionnaires do not always have a high response rate

(Snow & Thomas, 1994). In order to enhance the outcomes, qualitative research is

used in concert with the quantitative data to explain the "how" and "why" of the

calculated result.

Qualitative methods provide a way to ask more questions around a subject (Rubin &

Rubin, 2005). They provide multiple sources of data such as interviews, observation,

documents, and reports (Creswell, 2007). It is a good way to develop further

understanding of survey results by investigating the "whys" of responses, and

provides opportunities to create more explicit validation as well as expansion of

initial findings.

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A third perspective in this triangulation involves the longitudinal aspect of the study

through interventions to determine if change evolved. The service unit would develop

action plans for implementing the talent management strategy and would focus on

areas where improvement was needed as identified through initial survey data. These

included managing performance, developing employees and communication.

The triangulation of the quantitative, qualitative and longitudinal interventions

provides the basis for this research. The quantitative perspective in concert with the

qualitative data is especially important in the research as it is exploratory in nature.

As Yin (2003) has noted, triangulation is a way to discover converging themes to

guide the analysis process. The quantitative data is providing a base to further explore

relationships. The qualitative research can support this initiative in addition to looking

at aspects not fully covered in the quantitative study and the interventions look at

change over a period of time. Triangulation also contributes to the validity of the

quasi-experimental field study results.

Validity

According to Miles and Huberman (1994), validity allows the readers of a study to

make sense of the findings. Construct validity ensures that a measurement actually

measures what the research claims it does. Cook and Campbell (1979) exert that

construct validity is similar to what psychologists worry about with confounding.

This refers to the possibility that the operations which are meant to represent a particular cause or effect construct can be construed in terms of more than one construct, each of which is stated at the same

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level of reduction. Confounding means that what one investigator interprets as a causal relationship between theoretical constructs labeled A and B, another investigator might interpret as a causal relationship between constructs A and Y or between X and B or even between X and Y. (1979, p. 59)

The concern or threat from a construct validity perspective with the talent

management model may be that it is not talent management that drives engagement

but some other construct. In order to control for this concern, the CSU is being

compared to another group consisting of the US business unit population. This will

assist with validating the results.

Another threat could be that it is simply the extra attention that is being provided to

the participants that is producing change or higher engagement as opposed to a talent

management strategy. This is similar to the "Hawthorn effect." However, this is

being controlled through the longitudinal aspect as well as the qualitative interviews.

Yin (2003) recommends using multiple sources of evidence, establishing a chain of

evidence and getting feedback from key informants on the research study report. This

triangulation process allows for a check on the validity of the constructs of talent

management and employee engagement.

To address validity in this study, several different sources of data were utilized which

included participant observations, interviews, and surveys. These all bring richness

and depth to the case study. In addition, these were tested over time.

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Internal and External Validity

Internal validity requires confidence in the results and relationships of the concepts.

There should not be significant differences between groups in the study (Kerlinger &

Lee, 2000). The two groups in this case study were not identical, but all employees

were located in the same global organization in the same country. There was

consistency of participants which adds to the internal validity.

The survey instrument used to address the topical areas of importance to management

was consistent throughout the study. The survey was not originally intended to be

used for the purpose of studying talent management strategy and engagement so there

should not be any response bias on the part of the employees. The survey was

originally intended to be used to collect opinions from employees based upon the

current organizational climate and structure.

For internal interviews, participants were randomly selected to be interviewed.

Internal validity also includes the process of checking and questioning results but is

not a strategy for establishing rule-based correspondence between the findings and

the "real world" (Kvale, 1989). In an exploratory research study, internal interviewees

can validate the timeline, source of data and the feedback on the outcomes. It is

important to continually ask questions and collect responses on findings, but there can

be no definitive rules as there is only one case being observed.

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External validity deals with the issue of whether or not the results are generalizable

beyond the immediate case study. Typically, field studies of one organization are not

generalizable, however individual studies do offer insights that can be applied to

other studies or research. Cook and Campbell (1979) point out that there is a

distinction between generalizing to target populations and across multiple

populations. They assert that in field research, "the practice is more one of

generalizing across haphazard instances where similar-appearing treatments are

implemented" (Cook & Campbell, 1979, p. 73). It is difficult to apply findings to

other settings but external validity can be enhanced by generalizing across a number

of smaller studies within a target area. Importantly, there is also the potential to

transfer ideas or propositions to other research studies. This can be especially

important for the creation of future models or theory. As talent management has not

been thoroughly researched through field studies, this research serves as an initial

study to determine where its findings can be further explored in other studies.

It is through triangulation that construct validity can be explored and the threats can

be minimized. The quasi-experimental field study provides the format and allows for

further research from the findings.

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Data Collection and Analysis

The data collection for this study involved carrying out interventions as a field study

for the various areas of concentrations in the CSU. It also included conducting and

collecting company engagement surveys for quantitative analysis. To strengthen the

outcomes of the quantitative results and to further build academic theory, qualitative

interviews were conducted (Miles & Huberman, 1994; Yin, 2003), and participant

observations were recorded. These methods along with the longitudinal aspect of the

study allow for a triangular analysis.

Interventions

It is over a period of two and one half years that interventions occurred within the

CSU. These interventions would help define a talent management strategy and

culture. They would assist with the implementation and transition to an employee

focused environment. Often, change does not occur rapidly but rather gradually

(Burke, 2002). It becomes necessary to measure if change is occurring and where

progress is being made. This information from a longitudinal perspective along with

the opportunity to measure impact of actions, allows for an analysis that contributes

to the triangulation.

The interventions were based upon the action plans created from the initial survey

results for the CSU. The initial survey identified developing others, managing

performance and acting on the survey results as the lowest ranked dimensions. The

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management team of the CSU felt it was important to provide this information for the

impetus toward change.

Survey feedback enables a system to change. It does not automatically bring it about

(Nadler, 1977). It is possible for survey feedback to be ignored, however when

utilized appropriately, it can create energy which is a motivating function and serves

to direct behavior where motivation already exists (Nadler, 1977). Data feedback can

begin at the top of the organization and cascade down or it can occur in a "bottom-

up" approach (Cummings & Worley, 2005). Feedback meetings typically provide an

opportunity for members to discuss and interpret the data and then develop action

plans to address any issues.

It was evident by the results of the initial survey that respondents did not feel

management would respond or act upon the results of the survey. An employee

communications meeting was held shortly after the results of the survey were

received in October of 2006. Often, there is a preconceived notion that if a meeting is

held and the results are discussed, little else will happen. Yet, it is a process for a

springboard to development if handled appropriately (Bowers, 1973).

In order to pursue developing an action plan, focus groups were held with a cross-

sectional selection of volunteer employees. With survey data, participants can

interpret the meaning of a question differently in terms of how they respond (Church

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& Waclawski, 1998). To attempt to calibrate a general understanding of the results of

the survey, employees could expound and explain their stance on the questions. With

the results of these sessions summarized confidentially, the management team created

action plans and interventions to address each area of focus and began

implementation in late 2006.

Specifically, the CSU focused on the following areas:

• Managing Performance/Employee Development - The CSU wanted to start the

process of developing employees and encouraging a higher level of performance.

In order to determine what employees wanted with respect to development, the

CSU used an appreciative inquiry (AI) approach. All employees gathered for a

two day offsite workshop to explore what type of culture or environment the CSU

should have to support this initiative. The results of the AI workshop would be

integrated into CSU action plans. If the organization was going to change, it

would have to change its culture and the employees would need to actively

participate to make it happen.

In addition, the introduction of a formal development action plan called

Development Dialog was implemented. Each employee and their respective

supervisor were required to develop an action plan together for the next two to

five years. These would be recorded and reviewed twice a year to ensure that

employees were making progress and utilizing the opportunities for growth.

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Personal development was also encouraged for the first time. Employees could

take courses or seminars in areas of interest that were related to the business but

not necessarily their job. Education in all facets from classroom learning to hands

on community service was promoted.

Finally, formal management development training programs were introduced.

Managers had never been through any kind of supervisory training; for the first

time supervisors were provided training for basic management essentials in

addition to performance management. Workshops were held to learn how to

consistently evaluate employees throughout the service unit as well as how to

coach employees. Workshops were also conducted for employees on performance

management and their role in developing their careers. It was not the

responsibility of the supervisor to ensure development but rather it was a

participatory process where the employee had to take the first action for

determining the career interests with the supervisor providing support.

• Managing Alignment of Rewards and Recognition Programs - Recognition and

rewards were other areas of focus. A spot award program was initiated where

supervisors could recognize an employee for a job well done or a project

completed with a monetary reward. It was important to time the recognition with

the successful completion of a task or project. This allowed supervisors to

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acknowledge an employee for a specific task even if the employee was an

"average" performer. It accentuated the positive.

In addition to one time spot awards, the organization recognized that it did not

differentiate between an employee who met expectations and one who exceeded

expectations. A merit increase of 3.5% for a meets expectations and 4.0% for

exceeds expectations did not recognize nor incent higher performance. The

service unit then provided an additional 3-4% lump sum amount for those who

exceeded. Higher performance had to be recognized and encouraged.

These programs also had to be communicated to employees. It was important for

employees to know that they existed and could be utilized. At employee

communication meetings, the programs were discussed and reviewed. At

leadership meetings with managers, the programs were also reiterated to ensure

employees were appropriately being recognized.

• Communications - Communications was a final focal point. Employee

communications meetings were held three times a year to provide updates and

information to all employees. Different speakers and topics were covered each

time but the meeting also allowed for the communication of new programs or

updates. This was also the best setting to provide employee feedback from survey

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data. The results of the employee survey were discussed and updated each year at

the communications meetings.

Plans for company announcements were cascaded throughout the entire service

unit. Often, only top-level managers would receive notice of new individuals or

global news. A new procedure was put in place to distribute all published

announcements to all CSU employees. In addition, a service unit website was

created to store such announcements and for information that all employees could

access. It would house all websites and links to various company initiatives.

Finally, as the service unit employees did not feel that they understood, nor felt

that anyone ever told them about the overall direction of the global company, a

Board of Management member was invited to attend a CSU employee

communications meeting on an annual basis. This would provide an opportunity

for employees to ask questions and receive responses directly from those who set

the strategy.

A timeline of events was established to monitor the interventions that were

conducted between surveys. This provided the opportunity to review the overall

number of interventions and communications in relationship to the exhibited

survey results and to track major and minor instances. The timeline of events can

be found in Appendix A.

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These interventions would specifically address areas of the talent management

action plans, developed by CSU management. In order to measure the success of

the interventions, both quantitative and qualitative measures would be evaluated.

Quantitative

The quantitative method explores data based employee surveys. A world-wide

company employee engagement survey was conducted for the first time in May of

2006 at CoatCo. This questionnaire was developed by an outside consultant and was

administered on an electronic basis to all CoatCo employees through the company

intranet. There were 52 questions utilizing a Likert- scale response scheme (1 =

strongly agree; 5 = strongly disagree). All responses were confidential. The survey

responses were collected on a global basis with reporting provided back to the

business units and service units on a country level. This study examined the US

country service unit (CSU) as compared to the other US business unit (US BU)

results of the survey. The global population was not included as cultural differences

were not being taken into account. It focuses on American practices and norms.

The original intent of the survey as defined by CoatCo addressed nine topical areas of

importance to management: commitment to values, customer focus, developing

others, innovation, managing performance, quality commitment, results orientation,

stimulating an open climate, and teamwork. These topical areas reflected the values

and priorities for the overall business as determined by the global management team.

In addition, participants were asked to identify supervisory status.

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A second employee survey was administered in 2007 to the CSU group to gauge how

the employees were responding to the interventions and feedback based upon the

2006 survey results. These questions were a subset of the 2006 survey but were

customized for the service unit. The survey was conducted electronically and

responses were collected on a confidential basis.

A pulse survey was also conducted in 2007. This was distributed to a random

sampling of employees around the world to gauge if talent management initiatives or

engagement had increased for the world-wide organization. The survey content and

questions were the same as the 2006 world-wide survey.

A final employee survey in this study was conducted in May of 2008. The 2008 pulse

survey mirrored the first survey conducted in 2006 and was sent to a random sample

of the population for completion. The survey was also sent to all CSU members so

that it could be determined if engagement had increased as a result of the

interventions during the prior two years.

The results of the surveys were provided and distributed back to the CSU employees

each year at employee communications meetings so that they were informed of the

progress and impact of the action plans.

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A list of the questions that were on the survey for each of the three years it was

conducted are listed in Table 3 and the survey response rates are listed in Table 4.

The survey questionnaires for each year can be found in Appendix B.

Table 3. Employee Engagement Survey Questions

Employee Engagement Survey Dimension

2006, 2007, 2008 Survey Questions for US-wide & Pulse survey and 2006 & 2008 CSU survey questions

2007 CSU US Survey

Commitment to Values

1. My immediate supervisor is open and honest with me.

2. Within my department we take action if the company's Business Principles are challenged or violated.

3. Employees in my department are treated in a fair and equitable manner.

4. My Business Unit/Service Unit acts socially responsible in the community where I work.

5. In my Business Unit/Service Unit we practice what we preach.

Table 3 continues

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Customer Focus 6. Within my department we know who our most important customers are.

7. Within my department we work to understand our customers' needs.

8. Within my department we act on customer complaints.

9. Within my department we constantly look for better ways to serve our customers.

10. Within my department we objectively measure customer satisfaction.

Developing Others 11. My immediate supervisor delegates responsibility to me.

12. My immediate supervisor discusses my future career with me.

13.1 have opportunities for further development within my current job.

14.1 see clear opportunities for my next job.

15. My organization offers the support and resources I need for my development.

10. My immediate supervisor discusses future opportunities with me.

11. My immediate supervisor delegates responsibility to me.

12.1 have opportunities for further development within my job.

13.1 see opportunities for my next job.

14. My organization offers the support and resources I need for development.

Table 3 continues

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Innovation 16.1 am encouraged to be innovative on my job.

17. Within my department we search for new ways to work and do business.

18. Within my department new ideas are effectively implemented.

19. Within my department generating new ideas is recognized.

20. My Business Unit/Service Unit provides innovative products and services.

Managing Performance

21. My immediate supervisor sets ambitious objectives for my department.

22. My immediate supervisor clearly explains how my performance is evaluated.

23. My immediate supervisor gives me regular feedback on my performance.

24. My immediate supervisor is a good coach for me.

25. There is a clear link between my performance and pay.

4. I understand how my personal objectives support my department's goals.

5. Within my department, generating new ideas is encouraged and recognized.

6. My immediate supervisor gives me regular feedback on my performance.

7. My immediate supervisor explains how my performance is evaluated.

8. Appropriate rewards and recognition are provided for my performance.

9. There is a clear link between my performance and pay.

Table 3 continues

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Quality Commitment 26. Where I work, we take appropriate measures to protect the environment.

27. Within my department we ensure employee safety.

28. Within my department we continually work to improve working conditions.

29. Within my department we learn from our mistakes.

30. Within my department we recognize efforts to improve quality.

Results Orientation 31.1 understand the goals of my department.

32.1 understand how my personal objectives support my department's goals.

33. My department produces results that exceed expectations.

34. My department acts with great urgency where change is required.

35. Senior management gives employees a clear picture of title direction the company is headed.

Table 3 continues

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Stimulating Open Climate

36. My immediate supervisor asks for opinions and suggestions from employees.

37. Within my department people can challenge the present way of doing things.

38. Within my department we value diversity in our employees.

39. We have adopted ideas from people outside my department.

40. My Business Unit/Service Unit keeps employees informed about matters affecting us.

2. Senior management of the world-wide organization provides a clear picture of the direction the company is headed.

3. Senior management of my Service Unit provides a clear picture of the direction the company is headed.

15. Management of the world­wide organization keeps employees informed about matters affecting us.

16. Management of the Service Unit keeps employees informed about matters affecting us.

17. My manager keeps me informed about matters affecting me.

Teamwork 41. My immediate supervisor encourages teamwork.

42.1 have shared my personal objectives with my colleagues.

43.1 understand the influence my job has on the work of others.

44. Within my department we work effectively as a team.

45. Within my department we look proactively for opportunities to cooperate with others.

Table 3 continues

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Engagement 46.1 get a feeling of personal accomplishment from my work.

47.1 am satisfied overall with my Business Unit/Service Unit as a place to work.

48.1 would recommend my Business Unit/Service Unit to others as a good place to work.

49.1 will not leave CoatCo in the near future.

50.1 am proud to be part of my Business Unit/Service Unit.

51.1 am proud to be part of CoatCo.

1. I am proud to be a part of the Company.

18. I am satisfied overall with my Service Unit as a good place to work.

19. I am proud to be a part of this Service Unit

Other 52.1 am confident management will act on the results of this survey.

53.1 have attended a feedback meeting with our department on the 2006 Employee Survey (2007 & 2008 Pulse survey question).

54. We are following an action plan from the 2006 Employee Survey (2007 & 2008 Pulse survey questions).

20. Management acted upon the results of the last employee survey.

21.1 am confident that management will act on the results of this survey.

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Table 4. Survey Response Rate

Survey Year

2006 US BU Survey US CSU Survey

2007 US BU Pulse Survey US CSU Survey

2008 US BU Pulse Survey US CSU Survey

Responses Received

3,252 88

1,461 37

3,606 82

Response Rate

66% 72%

50% 40%

60% 75%

For analysis purposes, the three years of data is roughly equivalent in terms of

representing the population. The same populations were sampled and included in the

survey population. As the survey was originally developed for business purposes by

an outside consultant for CoatCo, the global firm was not using the survey for the

referenced talent management model in this research study.

The data received from these surveys was statistically analyzed to determine if any of

the talent management drivers had significantly affected employee engagement.

Factor analysis was chosen as, "Its fundamental purpose is to help a researcher

discover and identify the units or dimensions, called factors, behind many measures"

(Kerlinger & Lee, 2000). In effect, it explains what measures measure the same thing

and to what extent they measure what they are intended to measure. Factor analysis is

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an iterative process in order to find an optimal solution. It reduces a large number of

measures to a smaller number by discovering which ones go together and the

relationships between them. This is a powerful method of construct validation

(Kerlinger & Lee, 2000). The factor analysis of the data in this study evaluated what

factors, if any, were significant in defining employee engagement and what factors

were significant in a talent management strategy that promotes employee

engagement.

Factor analysis was utilized to test whether or not the theoretical assignments were

valid. It analyzed how much variance the retained factors have on engagement and

allowed an analysis to determine what factor or factors explains a majority of the

variance. Factor analysis was also a statistical quality check for the employee

engagement and talent management constructs. In addition, it showed the strength of

association within the constructs.

Finally, the means were calculated to determine improvement in the factor constructs

over time. The means look at changes over a time period utilizing a multivariate

analysis of variance (MANOVA).

The qualitative exploration of this study examines and considers if the quantitative

results of the surveys are confirmed and explained as well as identifies through which

dimensions improvement in engagement can be accomplished by employing a talent

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management strategy over time. With the annual surveys deployed, it was possible to

decipher any changes in the talent management dimensions that occurred over time.

The qualitative data would be another piece of the triangular exploration toward

validating the quantitative findings.

Qualitative The qualitative data was collected through observations and interviews and analyzed

utilizing a coding process developed by Strauss and Corbin (1998).

Observations

Observations were gathered from various workshops that were conducted with the

CSU group of study. These included the appreciative inquiry and performance

management workshops. The data gathered was reviewed and coded so it could be

compared and contrasted with the overall concepts that were emerging. This is

another source of validity for the constructs (Spradley, 1980).

Interviews

In order to determine how participants interpreted and defined key concepts in the

surveys and to gain a better understanding of why they responded in certain ways,

twelve employees were chosen randomly from the CSU group to conduct semi-

structured interviews. Five members of the management team were interviewed to

validate the senior management responses compared to lower level supervisors and

employees. The interviews with all participants were semi-structured allowing

participants to elaborate in areas of their choice. The first round of interviews with

five employees asked open-ended questions aimed at the research questions and

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written from an appreciative inquiry stance (Cooperrider & Sekerka, 2003; Ludema,

Whitney, Mohr, & Griffin, 2003; Reed, 2007). This approach enabled the participants

to respond to questions from their own positive perspective. They could simply tell a

story. The questions were probing which resulted in collecting details from the

interviewees (Rubin & Rubin, 2005). Based on these interviews, evidence was

collected to construct key concepts.

The second set of interviews with another sample of seven employees was conducted

after the first round had been coded and analyzed. Concepts derived from the first set

of interviews were then incorporated into the second round and provided validity

around the concepts developed (Yin, 2003). The researcher conducted the interviews.

Copies of the interview questions are in Appendix C.

The interviews were recorded and transcribed so that they could be coded and

analyzed. Consistent with the exploratory approach, a coding strategy was used that

maximized the discovery and findings. The coding process developed by Strauss and

Corbin (1998) was chosen for its well documented steps and applications. Strauss and

Corbin outline the coding process with three phases: open coding, axial coding, and

selective coding.

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Open Coding

Coding is a dynamic and fluid process (Strauss & Corbin, 1998). It is the beginning

of the process for theory building which entails conceptualizing, defining categories

and developing categories in terms of their properties and dimensions.

Conceptualizing involves grouping similar items or ideas based upon common links.

It reduces large amounts of data to smaller, more manageable data. The categories are

then formed from the small groups and compared against properties. There can be

different dimensions along the properties and it is at this point that patterns emerge.

The researcher coded all the interviews. Each sentence was coded to capture events,

happenings or interactions (Strauss & Corbin, 1998). A word or code was used to

describe the word or phrase and recorded on the document. When the exact word or

phrase is used directly from the text, it is called an in-vivo code (Strauss & Corbin,

1998). As each document was coded, it was important to identify interesting

quotations as well as to compare the coding to earlier documents. A definitive part of

the process was to constantly compare and contrast the different coding throughout

the documents to determine if the same categories emerge and are valid or if they

change (Strauss & Corbin, 1998).

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In order to rule out any single coder bias, another colleague was educated on the

process of coding and asked to code portions of the interviews. This was to establish

inter-rater agreement for the codes.

After coding an interview, a memo was written which is a way to define and analyze

ideas that come from the text. The codes were then entered into spreadsheets and

analyzed for similarities so that categories could be created. The categories would

create families of themes or ideas that would provide further definition. This process

was iterative as constant comparing and redefining occurred. A sample of the coding

categories is listed in Table 5 below.

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Table 5. Open Coding Categories

Open Coding Categories

Influencers

Interesting, Fun & Enthusiastic Work

The mentality around here that allows it to occur

Care

Come to Understand

Back bone of Company

Tenure

Flat Periods

Stimulation

If you're not growing, you're stagnant

Helping Industry

Appreciate the Nuances

Test the Water

Puppeteer Stuff

Fair Shake

Reflection

They heard but they didn't really hear

Pigeon Hole People

Kudos

Based on the categories that surfaced, open coding memos were written which assists

with the next step that is axial coding.

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Axial Coding

With axial coding, the goal is to systematically develop and link categories (Strauss &

Corbin, 1998). This involves identifying actions, conditions and consequences

associated with a phenomenon and asking questions such as why, how come, when

and where in order to uncover relationships among categories. It is looking at categories around an "axis" and relating them to each other.

Through written memos and drawing frameworks of categories, an analysis of the

relationships and various codes was conducted. Figure 2 is an example of one such

framework.

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Boring, Dry Periods

2

a <0

Interesting Job

c a) 3

5

•E

2 CO

Challenging, Stimulating, Variety

Figure 2. Axial Coding Framework

In order to facilitate the mapping of ideas and dimensions, whiteboards and paper

posters were utilized which assisted with viewing the bigger picture of talent

management emerging.

Selective Coding

Selective coding is the process of integrating and refining theory (Strauss & Corbin,

1998). The researcher is analyzing the relationships and looking for a central

explanatory concept. According to Strauss and Corbin (1998), a central category

possesses the power to pull all of the categories together to form an explanatory

whole. This is a key part of the exploratory process.

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In the broadest sense, the selective coding process should develop an explanatory

concept for the research in question. Based upon the exploratory nature of the case

study, a central theme should emerge. A central category mapping could materialize

in some form similar to Figure 3 where this is a central theme with key influencing

factors.

Interesting Work

> Employee Engagement

Influencer Climate

Figure 3. Selective Coding toward a Central Category

The coding process will create the support for explanations based on the quantitative

results and allow for expansion of ideas in this field study exploration.

Code Checking

Miles and Huberman (1994) suggest specific guidelines for code checking. First, it is

best to have more than one person code data. If there is a disagreement among

definitions, it means the explanation may need to be expanded. Second, code

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checking is a good reliability check. Third, they suggest that more than one person

code the same data in order to discuss it together.

In this study, the data was checked at various times. Several of the interviewees were

provided with preliminary results and diagrams to confirm it related back to their

comments and discussions. Parallel coding was conducted also with another

colleague to eliminate any single coding bias and establish inter-rater agreement for

the codes.

Triangulation

By combining the three methods of quantitative, qualitative and intervention data, it is

possible to reach conclusions with valid reasoning. In addition, with the longitudinal

perspective of measuring this change and its effects over a period of time, conclusions

and implications can be reliably developed. The triangulation also provides an

opportunity to incorporate the learning that occurs as the research emerges over a

period of time. Through exploration of the study and by applying the learning, the

field case study results in a rich analysis of data with evidence to support the

conclusions.

Summary

This chapter outlined the methods used in the field case study of CoatCo to research a

talent management strategy. Employee surveys and interviews provided quantitative

and qualitative data respectively. The interventions which included an appreciative

inquiry workshop, implementation of employee development and performance

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management programs, as well as various communication efforts play a significant

role in allowing a triangular approach for exploration. It gives the case and research

more relevant data for analysis.

The next chapter discusses the results of the employee survey data and the qualitative

interviews as explored through the lens of the talent management model. It defines

and describes the dimensions of a talent management strategy that drives employee

engagement. It also expands on the intervention efforts and outcomes to provide a

triangulation of the results.

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Chapter 4: Findings and Results Organization of Field Study Findings

The focus of this study is to explore a talent management model and it's affect on

employee engagement. It is critical to be able to define the drivers within a talent

management strategy that will enhance or increase employee engagement. Further, it

is important to define the key dimensions of employee engagement so emphasis can

be enforced on areas that will be effective in integrating HR/OD strategy and the

overall organizational strategy.

The proposed model defines employee engagement with the following dimensions:

• Job is challenging/meaningful • Have resources to do job • Trust in management • Perceived support from organization • Perceived support from supervisor • Rewarded and recognized • Safe to Act • Committed to organization

If these dimensions are positively embedded and perceived by employees, they

should be actively engaged. However, identifying the key drivers of engagement

dimensions is an essential first step.

The model proposes the following talent management dimensions as positively

impacting employee engagement:

• Communication

94

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• Employee development • Rewards and recognition • Managing performance • Open climate/culture

If these key drivers are enabled within an organization, employee engagement should

increase. The field study explores how a talent management strategy can be built and

implemented to positively engage employees towards accomplishing organizational

goals.

With various interventions occurring within the CSU, it is important to be able to

measure and monitor the results of the talent management strategy and its impact on

engagement. This chapter will present the quantitative, qualitative and intervention

longitudinal results and findings of the study. They will be presented from a

triangulation perspective where it becomes evident that the survey results are

supported by the interviews as well as the interventions. An overview of the

triangulation will be presented followed by detailed descriptions of each component

of the triangulation which includes the quantitative, qualitative and intervention

findings.

Summary of Results

The talent management model presented in Chapter 2 (Figure 1) is valid based upon

the results of the case study. Employee engagement did increase based upon a talent

management strategy. Key drivers of talent management emerged as did the key

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dimensions of employee engagement which positively impacted overall employee

engagement. These drivers were supported through the qualitative interviews and

results of the CSU interventions. Table 6 provides an overall summary of the results

and corresponding corroboration.

Table 6. Talent Management and Employee Engagement Drivers and Supporting Dimensions

Key Drivers/Dimensions

Derived from Quantitative Survey

Data

Talent Management:

1) Continuous Work Environment Improvement

2) Open Climate

Applied Interventions

Appreciative Inquiry (AI) workshop on CSU culture and employee development; flexible work schedules implemented, merit differentiators and spot awards implemented

AI workshop on CSU culture; flexible work schedule implemented

CSU Survey Results 2006 to

2008

2006 Mean

2.32

2.29

2008 Mean

4.05

4.01

Corresponding Emergent Themes from Qualitative

Interviews

Interesting Work (freedom, involvement, challenging, variety, learning, development) and Climate (flexible, trust, willingness, recognition)

Climate (flexible, trust, willingness, recognition) and influencers (caring managers, people)

Table 6 continues

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Key Drivers/Dimensions

Derived from Quantitative Survey

Data

Applied Interventions

CSU Survey Results 2006

to 2008

Corresponding Emergent Themes from Qualitative Interviews

3) Communication; Clear Top Management Direction

Communications action plan (quarterly employee meetings, informational websites, Board of Management visits)

2.93 3.73 Influencers (mentor, team, people, managers providing feedback, involvement, knowledge) and Climate (trust, flexible, willingness, recognition)

Employee Engagement

1) Coaching Supervisor

2) Performance Development

Management development programs implemented

2006 2008 Mean Mean

2.12 3.83

Performance management and development dialog workshops initiated and programs implemented; cross-training initiated

2.63 3.20

Influencers (caring manager who is supportive, proactive, and approachable) and Interesting Work (freedom, involvement, challenging, learning and development)

Interesting work (development which focuses on strengths, opportunities, growth) and Climate (trust, flexible, willingness, recognition)

Table 6 continues

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Key Drivers/Dimensions

Derived from Quantitative Survey

Data

Applied Interventions

CSU Survey Results 2006

to 2008

Corresponding Emergent Themes from Qualitative Interviews

3) Transparent Trust AI workshop on CSU culture and employee development; management development programs implemented

2.36 3.70 Climate (trust, flexible, willingness) and Influencers (caring manager)

4) Meaningful Accomplishments and Challenging Work

5) Commitment

AI workshop on employee development; development dialog program implemented

AI workshop on employee development and culture; development dialog program implemented; performance development workshops; communications action plan

2.93 3.73

2.15 3.89

Interesting work (freedom, involvement, challenging, variety, learning, development) and Influencers (caring manager, self)

Interesting work (freedom, involvement, challenging, variety, learning, development) and Influencers (caring manager, self, mentor, team, feedback, involvement)

The survey data showed significant improvement for employee engagement utilizing

a talent management strategy. The talent management drivers of a continuously

improving work environment along with an open climate and clear communication

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were corroborated by employee and manager interview themes of interesting work,

climate and influencers. These were defined as the talent management drivers. These

findings then correlated to the engagement results where employees were found to be

engaged and committed with a supervisor who was a good coach, where growth

opportunities and challenging work were encouraged and where transparent trust was

inherent.

The environment and culture at the CSU changed and a talent management strategy

was formalized. The climate changed from one where communication was low and

information not shared to a more open environment with regular communication

meetings and feedback openly encouraged. Employees were provided with

opportunities to explore new challenges and development through cross-training and

project work. This evolved through the talent management strategy where employees

were engaged and linked to the overall organizational strategy.

The details of the key drivers from the survey results will be explained in the

quantitative survey results and findings section and is followed by the supporting

evidence of the qualitative interviews. A summary of the interventions that occurred

and the corresponding results are described as well.

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Quantitative Survey Results

The employee engagement survey was sent to all US CoatCo employees in May of

2006. There were 4,927 employees who were contacted to complete the survey and,

of these, 3,252 (66%) responded. The CSU had 122 employees invited to participate

and 88 (72%) completed the survey.

Follow-up surveys were distributed and completed in 2007 and 2008. These follow-

up surveys were conducted with a sample of the larger population but were big

enough to be statistically valid. In 2007,2,922 employees were asked to participate

and 1,461 (50%) responded. In 2008,6,010 employees were asked to participate and

3,606 (60%) responded. More employees were asked to participate in 2008 as CoatCo

had acquired another large company effective January 1, 2008. However, for analysis

purposes, all three years of data were considered to be equivalent for representing the

general population. Survey data was also specifically collected for the CSU and, in

2007,93 employees were invited to participate and 37 (40%) responded while in

2008, 109 employees were invited to participate and 82 (75%) responded.

The survey utilized a Likert-scale response scheme (1 = strongly agree; 5 = strongly

disagree). For ease of interpretation in the statistical analyses, the scale was

transposed to 5 = strongly agree; 1 = strongly disagree.

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Factor analysis was used to explore and interpret the components of the talent

management model (Figure 1). This factor analysis determined what underlying

psychological dimensions (factors) characterize employee engagement and talent

management. Responses from managers were used to determine the talent

management constructs and the responses from employees were used to determine the

engagement constructs. It is the management team that implements a talent

management strategy and it is the subordinates who are measured on engagement.

This study does not look to prove direct cause and effect, but by utilizing a different

group for each dimension, it diminishes any bias due to item response overlap. In

addition, CoatCo generally releases access to data but declined to measure which

groups they belong. It is impossible to match individuals with supervisors. This was

minimized and controlled for by using engagement only for employee responses and

talent management only for supervisory responses. Ideally, it would best to have both

to measure in the future.

Engagement Construct Factor Analysis In order to identify the employee engagement concept, a factor analysis was

conducted. The steps of the process are outlined below.

Reassign Scales to Theoretically Valid Constructs The variables chosen for the factor analysis were based upon the talent management

model constructs and correlated questions from the employee survey. Table 7 shows

the engagement dimensions and the corresponding survey questions that were used

for the factor analysis.

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Table 7. Engagement Dimension and Corresponding Survey Questions

Engagement Dimension 2006,2007,2008 Survey Questions for US-wide & Pulse survey and 2006 & 2008 CSU survey questions

2007 CSU US Survey

Job is challenging and meaningful

11. My immediate supervisor delegates responsibility to me.

13.1 have opportunities for further development within my current job.

14. I see clear opportunities for my next job.

16.1 am encouraged to be innovative on my job.

17. Within my department we search for new ways to work and do business.

18. Within my department generating new ideas is recognized.

21. My immediate supervisor sets ambitious objectives for my department.

46.1 get a feeling of personal accomplishment from my work.

11. My immediate supervisor delegates responsibility to me.

12.1 have opportunities for further development in my job.

13.1 see opportunities for my next job.

Have resources to do job 15. My organization offers the support and resources I need for my development.

14. CSU offers the support and resources I need for development.

Table 7 continues

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Trust in management 35.

Perceived support from organization

Senior management gives employees a clear picture of the direction the company is headed.

40. My Service Unit keeps employees informed about matters affecting us.

52.1 am confident management will act on the results of this survey. (This is question 57 in the 2007 pulse survey and question 59 in the 2008 pulse survey)

3. Employees in my department are treated in a fair and equitable manner.

5. In my Service Unit we practice what we preach.

2. Senior Management of CoatCo world-wide provides a clear picture of the direction the company is headed.

3. Senior Management of CSU provides a clear picture of the direction the company is headed.

15. Management of CoatCo world-wide keeps employees informed about matters affecting us.

16. Management of CSU keeps employees informed about matters affecting us.

20. Management acted upon the results of the last employee survey.

21.1 am confident that management will act on the results of this survey.

Table 7 continues

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Perceived support from supervisor

1. My immediate supervisor is open and honest with me.

12. My immediate supervisor discusses my future career with me.

23. My immediate supervisor gives me regular feedback on my performance.

24. My immediate supervisor is a good coach for me.

36. My immediate supervisor asks for opinions and suggestions from employees.

41. My immediate supervisor encourages teamwork.

44. Within my department we work effectively as a team.

45. Within my department we look proactively for opportunities to cooperate with others.

6. My immediate supervisor gives me regular feedback on my performance.

7. My immediate supervisor explains how my performance is evaluated.

10. My immediate supervisor discusses future opportunities with me.

17. My manager keeps me informed about matters affecting me.

Table 7 continues

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Rewarded and recognized

Committed to organization

19. Within my department generating new ideas is recognized.

23. My immediate supervisor gives me regular feedback on my performance

25. There is a clear link between my performance and pay.

30. Within my department we recognize efforts to improve quality.

47.1 am satisfied overall with my Service Unit as a place to work.

48.1 would recommend my Service Unit to others as a good place to work.

49.1 will not leave CoatCo in the near future.

50.1 am proud to be a part of my Service Unit.

51.1 am proud to be a part of CoatCo.

5. Within my department generating new ideas is encouraged and recognized.

7. My immediate supervisor explains how my performance is evaluated.

8. Appropriate rewards and recognition are provided for my performance.

9. There is a clear link between my performance and pay.

1. I am proud to be part of CoatCo.

18.1 am satisfied overall with CSU as a good place to work.

19.1 am proud to be part of CSU.

Table 7 continues

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Safe to Act 2. Within my department we take action if the company's Business Principles are challenged or violated.

19. Within my department generating new ideas is recognized.

29. Within my department we learn from our mistakes.

37. Within my department people can challenge the present way of doing things.

39. We have adopted ideas from people outside my department.

5. Within my department generating new ideas is encouraged and recognized.

Company Pride 51.1 am proud to be a part ofCoatCo.

1. I am proud to be part ofCoatCo.

Work Unit Pride 50.1 am proud to be a part of my Service Unit.

19. I am proud to be part ofCSU.

Work Unit Satisfaction 47.1 am satisfied overall with my Service Unit as a place to work.

18.1 am satisfied overall with CSU as a good place to work.

Action on Survey 60.1 have attended a feedback meeting with our department on the 2006 Employee Survey (from the 2008 pulse survey; it is question 58 in the 2007 pulse survey))

61. We are following an action plan from the 2006 Employee Survey (from the 2008 pulse survey; it is question 59 in the 2007 pulse survey)

20. Management acted upon the results of the last employee survey.

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Three samples of employee respondent data were created to obtain the factor

structure. The factor analysis allowed distinct patterns to emerge. As the patterns

emerged, they were tested against another iteration of sample data to ensure construct

validity. Once the patterns were determined and validated, they could be used as a

scale to measure the construct.

Variance and Strength of Association

As a result of iterative factor analysis process, four factors emerged to characterize

the engagement construct. Component one is labeled coaching supervisor, component

two is performance development, component three is transparent trust and,

component four is meaningful accomplishments. Together, they explain 69.55% of

the variation within the included variables. The factor which explains the most

variance, component one (21.02%), is characterized by high-loading questions about

the relationship of the supervisor to the employee. Table 8 shows the variance

explained by the four factors.

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Table 8. Engagement Construct: Total Variance Explained

Comp onent

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Total

6.991

1.033

.992

.721

.644

.599

.512

.491

.432

.364

.355

.328

.311

.228

Initial Eigenvalues

%of Variance

49.936

7.375

7.089

5.152

4.598

4.279

3.654

3.504

3.087

2.600

2.536

2.343

2.221

1.625

Cumulative %

49.936

57.311

64.400

69.552

74.150

78.429

82.083

85.587

88.675

91.275

93.811

96.154

98.375

100.000

Rotation Sums of Squared Loadings

Total

2.943

2.470

2.190

2.134

%of Variance

21.024

17.643

15.644

15.241

Cumulative %

21.024

38.668

54.311

69.552

Extraction Method: Principal Component Analysis.

Table 9 displays the engagement construct and the four component factors with their

corresponding factor loadings. Generally, the strength of the factor loading should be

.65 or higher. This means that the item "loads" well on a given factor and "belongs"

there.

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Table 9. Engagement Construct

Rotated Component Matrix* Component

1 2 3 4

Q36 Supervisor asks opinions and suggestions from employees Q41 Supervisor encourages teamwork

Q24 Supervisor is a good coach

Q23 Supervisor gives me regular feedback on my performance

Q12 Supervisor discusses future career

Q13 Opportunities for further development in job

Q25 Clear link between performance and pay Q15 Organization offers support and resources for development

Q05 In BU, we practice what we preach

Q59 Confidence Mgmt will act on survey results

Q03 In dept. we are treated fairly

Q33 My dept. produces results exceeding expectations

Q32 I understand how personal objectives support depts. Goals Q46 Feeling of personal accomplishment from work

Extraction Method: Principal Component Analysis. Rotation Method: Equamax with Kaiser Normalization.

a. Rotation converged in 9 iterations.

Component one, labeled coaching supervisor, accounted for the highest explanation

of engagement. The questions involved the supervisors interacting with their

subordinates. When opinions or suggestions are asked of subordinates, they will feel

.766

.730

.714

.684

.575

.743

.707

.655

.791

.699

.661

.783

.695

.685

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more highly engaged. The supervisor who encourages teamwork and offers regular

feedback provides employees opportunities to become engaged and they are more

likely to act on that opportunity.

Performance development, the second component, interpreted as providing

opportunities for further development in an employee's current job was also a

significant variable as was performance and pay. Employees want to feel that they are

being paid appropriately for their work and being rewarded based upon performance.

Being treated fairly also involves trust of the supervisor and management and

practicing what they preach which is explained in component three. It takes a lot

more action to walk the talk. This is the authenticity that becomes apparent with trust.

Component four, the challenge and accomplishment of a job is also important along

with striving to exceed the expectations. Discussing future career plans did not load

high but has to be questioned if a supervisor is acting as a coach or just in a pure

supervisory manner when discussing career paths. This may also imply that an

employee has to take some ownership as well instead of waiting for the supervisor to

act.

The definition of engagement can be difficult to conceptualize especially when

individual satisfiers may have some effect on engagement. The model considers this

effect and in order to address the concern of looking at engagement as a concept in

addition to the individual drivers, a factor analysis was conducted with the overall

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factors of engagement including commitment. Five factors explain 71.53% of the

variance. These five factors (components) are as follows: component one is

commitment, component two is a coaching supervisor, component three is

performance development, component four is transparent trust and component five is

meaningful accomplishments. Commitment is the factor that explains the most

variance (48.85%) and is characterized by high-loading questions about the

relationship of the how the employee feels committed to the organization. Table 10

displays the five components that explain the variance.

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Table 10. Engagement and Commitment Constructs: Total Variance Explained

Compo

nent

Initial Eigenvalues Rotation Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

9.281

1.806

1.019

.758

.727

.642

.561

.532

.479

.440

.431

.402

.364

.348

.326

.311

.228

.179

.167

Extraction Method: Pi

48.845

9.503

5.365

3.990

3.824

3.381

2.952

2.801

2.520

2.316

2.271

2.115

1.916

1.832

1.713

1.635

1.198

.940

.881

48.845

58.348

63.714

67.703

71.527

74.908

77.860

80.661

83.182

85.498

87.768

89.884

91.800

93.631

95.345

96.980

98.178

99.119

100.000

3.300

3.073

2.617

2.437

2.163

17.367

16.175

13.775

12.826

11.385

17.367

33.541

47.316

60.142

71.527

Method: Principal Component Analysis.

When commitment values are factored into the analysis as a dependent value, it is

evident that engagement also includes dimensions such as satisfaction of working at

the organization and proud to work for the company. Generally, the strength of the

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factor loading should be .65 or higher. This means that the item "loads" well on a

given factor and "belongs" there. Table 11 shows the engagement and commitment

construct.

Table 11. Engagement and Commitment Construct

Rotated Component Matrix* Component

1 2 3 4 5

Q50 Proud to be part of BU

Q51 Proud to be part of CoatCo

Q49 Will not leave CoatCo in near future

Q48 Recommend BU as a good place to work

Q47 Satisfied with BU as place to work

Q46 Feeling of personal accomplishment from work Q36 Supervisor asks opinions and suggestions from employees Q41 Supervisor encourages teamwork

Q24 Supervisor is a good coach Q23 Supervisor gives me regular feedback on my performance

Q12 Supervisor discusses future career

Q13 Opportunities for further development in job

Q25 Clear link between performance and pay

Q15 Organization offers support and resources for development Q05 In BU, we practice what we preach

Q03 In dept. we are treated fairly

Q59 Confidence Mgmt will act on survey results

Q33 My dept. produces results exceeding expectations Q32 I understand how personal objectives support dept goals

Extraction Method: Principal Component Analysis. Rotation Method: Equamax with Kaiser Normalization.

a. Rotation converged in 10 iterations.

.788

.779

.746

.634

.631

.549

.772

.744

.711

.675

.563

.730

.717

.644

.763

.651

.605

.860

.690

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Proud to be part of the service unit and the organization both load extremely high.

When combined with the intent of staying at the firm and recommending the firm as a

good place to work, the overall value of commitment is highly significant. The other

components are also still highly significant in this factor analysis which concludes

that that engagement is multi-faceted and holistic in nature.

Supporting Evidence for Construct Categorization

The challenge of working with data defined by practical needs of an organization

needs to be able to enhance theoretical concepts. To develop and integrate the

practical with the theoretical, factor analysis was conducted. To further authenticate

the statistical validity of the results, the Cronbach's alpha for each component was

also calculated. Cronbach's alpha measures how well a set of items measures a single

unidemensional construct. It is a coefficient of reliability and scalability. If the

Cronbach's alpha is 0.7 or greater, there is high reliability that the questions grouped

together are all measuring the same component. Table 12 lists the Cronbach's alphas

for the engagement construct.

Table 12. Cronbach's Alpha for the Engagement Construct

Engagement Construct Cronbach's Alpha

Commitment 0.91

Coaching Supervisor 0.88

Performance Development 0.77

Transparent Trust 0.77

Meaningful Accomplishments/ 0.70 Challenging Work

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Since all of the Cronbach's alphas are 0.70 or above, there is high reliability within

the scales for each engagement component. The questions grouped together

consistently measure the corresponding component.

The survey questions in the engagement construct can also be validated through

comparison and review of other prior research. Table 13 validates the components in

the engagement construct through literature review for categorizing the questions into

the corresponding component.

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Table 13. Validation of the Engagement Construct based on Survey Questions

Construct & Survey Questions

Literature Definition

Supporting Evidence for Construct

Convergence or Divergence

Employee Engagement Coaching Supervisor

Q36 Supervisor asks opinions and suggestions from employees Q41 Supervisor encourages teamwork Q24 Supervisor is a good coach Q23 Supervisor gives me regular feedback on my performance Q12 Supervisor discusses future career

Employee engagement fosters support from managers (Lockwood, 2006), strong manager-employee relationships remain a crucial ingredient in engagement (Employee Engagement Report 2006, 2006); Regular, specific feedback is essential for high engagement (Employee Engagement Report 2006, 2006)

Emotional commitment to manager (Driving performance and retention through employee engagement, 2004); supportive manager (D. R. May, R. L. Gilson, & L. M. Harter, 2004); manage-employee relationship is often the "deal breaker" (Lockwood, 2007); help find solutions to problems, respect and care for employees, (Driving performance and retention through employee engagement, 2004); recognition and feedback from supervisor (Vance, 2006)

Convergence -good match although one study cites senior level managers have more influence than direct supervisors

Table 13 continues

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117

Construct & Survey Questions

Literature Definition

Supporting Evidence for Construct

Convergence or Divergence

Performance Development

Q13 Opportunities for further development in job Q25 Clear link between performance and pay Q15 Organization offers support and resources for development

Transparent Trust

Q05 In BU, we practice what we preach Q03 In dept. we are treated fairly Q59 Confidence Mgmt will act on survey results

Employee engagement fosters development and learning as well as recognition and reward (Lockwood, 2006); getting more opportunities at what employee does best and career development engages employees {Employee Engagement Report 2006, 2006) Trust in senior level leadership is essential for engagement (Debunking the Myths of Employee Engagement, 2006);

Involvement in work processes such as conceiving, designing and implementing workplace changes (Lockwood, 2007); job enrichment and resources available (D. R. May et al., 2004); understanding prospects for future growth (Vance, 2006)

Treat employees with dignity and respect creates a workplace culture that fosters loyalty and engagement (Ramarajan & Barsade, 2006)

Convergence -very good match

Convergence -good match

Table 13 continues

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118

Construct & Survey Questions

Literature Definition

Supporting Evidence for Construct

Convergence or Divergence

Meaningful Accomplishment/Cha llenging Work

Q33 My dept. produces results exceeding expectations Q32 I understand how personal objectives support dept goals

Willingly do more than is expected if engaged (Employee Engagement Report 2006, 2006)

Dedication refers to a sense of inspiration, pride, significance and challenge at work (Driving performance and retention through employee engagement, 2004); opportunity to perform well at challenging work and understanding the link between one's job and the company's mission (Vance, 2006)

Convergence -fair match

Commitment

Q50 Proud to be part ofBU Q51 Proud to be part ofCoatCo Q49 Will not leave CoatCo in near future Q48 Recommend BU as a good place to work Q47 Satisfied with BU as place to work Q46 Feeling of personal accomplishment from work

Commitment and line of sight drive engagement (Debunking the Myths of Employee Engagement, 2006); proud to work for the company (Employee Engagement Report 2006, 2006)

The extent to which employees entrust to something or someone in their organization; how hard they work; how proud they are to work at the company how long they stay as a result of that commitment (Driving performance and retention through employee engagement, 2004); How proud to work for the company and intent to stay with the firm (Measuring True Employee Engagement, 2006)

Convergence very good match

All of the categories provide a good convergence in terms of defining the components

with the appropriate survey questions and topics. The one component that is

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119

somewhat marginal is meaningful accomplishments. Challenging work can entail

more than a willingness to try to do something. It may not necessarily mean

exceeding expectations. It could simply be meeting the expectations of the task.

However, overall, they provide a good match for validation of the engagement

construct.

Means

In order to determine if there were significant differences over time between the CSU

and the other business units in the US, a multivariate analysis of variance

(MANOVA) was generated. MANOVA helps to assess the effects of independent

variables on dependent variables (Kerlinger & Lee, 2000). The US business units

served as a comparison group to determine if any change or improvement occurred.

The interventions were implemented with the CSU so the other business units served

as a quasi-experimental control group. The detailed results of the MANOVA analysis

are in Appendix D.

The mean scores for the engagement dimensions all significantly increased as listed

in Table 14. They were calculated based on a Likert scale of 1 to 5 with 5 = strongly

agree and 1 = strongly disagree. The overall engagement and commitment factor

increased from 2.15 in 2006 to 3.89 in 2008. Table 15 displays the percentage of

survey respondents that agreed with the statement listed under the component. Each

statement can be presented as a percentage but since there are multiple items for each

component, it is not possible to turn a composite mean score into an overall

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percentage in order to safeguard the natural variation along the scale. This preserves

the statistical validity of the constructs (Cook & Campbell, 1979).

Table 14. Means for Engagement Dimensions

Engagement Dimension

Overall Engagement including commitment Coaching Supervisor

Performance Development

Transparent Trust

Challenging and meaningful accomplishments

2006 Mean US

BUs 3.70

3.52

3.06

3.31

3.84

US

csu 2.15

2.12

2.63

2.36

1.98

2008 Mean US

BUs 3.89

3.64

3.24

3.70

3.86

US CSU 3.89

3.83

3.20

3.70

3.92

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121

Table 15. Percentage of Survey Respondents that Agree with the Statement under each Engagement Dimension

Engagement Dimension 2006 2008 % Agree % Agree us us us us~

BUs CSU BUs CSU

Overall Engagement including commitment Q50ProudtobepartofBU/SU 72% 2% 86% 76% Q48 Recommend BU/SU as a good place to 63% 11% 73% 70% work Q47 Satisfied with BU/SU as good place to 66% 11% 67% 74% work Coaching Supervisor Q36 Supervisor asks opinions and suggestions 65% 6% 67% 87% from employees Q41 Supervisor encourages teamwork 74% 4% 75% 81% Q24 Supervisor is a good coach 51% 10% 54% 60% Q23 Supervisor gives me regular feedback on 53% 15% 55% 71% my performance Performance Development Q13 Opportunities for further development in 44% 30% 49% 46% job Q25 Clear link between pay and performance 37% 29% 35% 34% Ql5 Organization offers support and resources 48% 17% 52% 57% for development Transparent Trust Q50 In BU/SU we practice what we preach 58% 11% 75% 65% Q03 In dept. we are treated fairly 58% 15% 67% 72% Q59 Confidence management will act on 39% 17% 60% 61% survey results Challenging and meaningful accomplishments Q33 My dept. produces results exceeding 64% 7% 58% 74% expectations Q321 understand how personal objectives 79% 4% 82% 78% support departmental goals

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Figures 4, 5, 6, 7 and 8 graphically show the positive changes in the means that

occurred for the CSU as compared to the BUs in each of the engagement components.

Figure 4. Means for Overall Engagement including Commitment

4.5

4

£ 3.5 4»

* 3

2

* ,_ _ , - *

,.. ...=•... ~r... _ . . _ . , ..it. .._.,.,.._,..„,...

* •

.*^ "'• _, i i c Ql Itt _ y.„ . , i ua BUS \,

s** USCSU f

2006 2008 Year

Figure 5. Means for Coaching Supervisor

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123

Figure 6. Means for Performance Development

4.5

4

S3.5 « 4>

2.5

2

4* «*•*

— — - • — ~ — ^ — — • • ' ' " Uo B U S i

1 uscsu I i ,., ,., „ „ ,..,,, ,J

2006 2008

Year

Figure 7. Means for Transparent Trust

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124

3 ^

• ^ ^ U S B U s

* U S C S U

2006 2008 Year

Figure 8. Means for Challenging and Meaningful Accomplishments

These graphs all indicate the significant change in engagement.

Talent Management Construct Factor Analysis A factor analysis was also conducted to identify the talent management concept and

drivers. The steps and results are described below.

Reassign Scales to Theoretically Valid Constructs

The variables chosen for the factor analysis were based upon the model constructs

and correlated questions from the employee survey. Table 16 shows the talent

management dimensions and the corresponding survey questions that were used for

the factor analysis.

4

1 3.5

3

2.5

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125

Table 16. Talent Management Dimension Survey Questions

Talent Management Dimension

2006,2007,2008 Survey Questions for US-wide & Pulse surveys and 2006 & 2008 CSU survey questions

2007 CSU US Survey

Communication 1. My immediate supervisor is open & honest with me.

31.1 understand the goals of my department.

32.1 understand how my personal objectives support my department's goals.

35. Senior management gives employees a clear picture of the direction the company is headed.

40. My Service Unit keeps employees informed about matters affecting us.

60.1 have attended a feedback meeting with our department on the 2006 Employee Survey (from the 2008 pulse survey)

61. We are following an action plan from the 2006 Employee Survey (from the 2008 pulse survey)

2. Senior management of CoatCo world-wide provides a clear picture of the direction the company is headed.

3. Senior management of CSU provides a clear picture of the direction the company is headed.

15. Management of CoatCo world-side keeps employees informed about matters affecting us.

16. Management of CSU keeps employees informed about matters affecting us.

17. My manager keeps me informed about matters affecting me.

Table 16 continues

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126

10. My immediate supervisor discusses future opportunities with me.

11. My immediate supervisor delegates responsibility to me.

12.1 have opportunities for further development in my job.

13.1 see opportunities for my next job.

14. CSU offers the support and resources I need for development.

Employee Development 11. My immediate supervisor delegates responsibility to me.

12. My immediate supervisor discusses my future career with me.

13.1 have opportunities for further development within my current job.

14.1 see clear opportunities for my next job.

15. My own organization offers the support and resources I need for my development.

16.1 am encouraged to be innovative in my job.

17. Within my department, we search for new ways to work and do business.

18. Within my department new ideas are effectively implemented.

19. Within my department generating new ideas is recognized.

42.1 have shared my personal objectives with my colleagues.

Rewards and Recognition 30. Within my department we recognize efforts to improve quality.

33. My department produces results that exceed expectations.

5. Within my department generating new ideas is encouraged and recognized.

8. Appropriate rewards and recognition are provided for my performance.

Table 16 continues

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Managing Performance

21. My immediate supervisor sets ambitious objectives for my dept.

22. My immediate supervisor clearly explains how my performance is evaluated.

23. My immediate supervisor gives me regular feedback on my performance.

24. My immediate supervisor is good coach for me.

25. There is a clear link between my performance and pay.

41. My immediate supervisor encourages teamwork.

4.1 understand how my personal objectives support my department's goals.

6. My immediate supervisor gives me regular feedback on my performance.

7. My immediate supervisor explains how my performance is evaluated.

9. There is a link between my performance and pay.

Open Climate 28. Within my department we continually work to improve working conditions.

29. Within my department we learn from our mistakes.

34. My department acts with great urgency where change is required.

36. My immediate supervisor asks for opinions and suggestions from employees.

37. Within my department people can challenge the present way of doing things.

38. Within my department we value diversity in our employees.

39. We have adopted ideas from people outside my department.

45. Within my department we look proactively for opportunities to cooperate with others.

5. Within my department, generating new ideas is encouraged and recognized.

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Three samples of respondent data (supervisors) were created to obtain the factor

structure. The factor analysis allowed distinct patterns to emerge. As the patterns

emerged, they were tested against another iteration of sample data to ensure construct

validity. Once the patterns were determined and validated, they could be used as a

scale to measure the construct.

Variance and Strength of Association

Three factors characterize the talent management construct. They explain 70.55% of

the variation within the included variables shown. Table 17 shows the variance

among the three variables.

Table 17. Talent Management Construct: Total Variance Explained

Extraction Sums of Rotation Sums of Squared Initial Eigenvalues Squared Loadings Loadings

%of Cumulative %of Cumulative %of Cumulative Component Total Variance % Total Variance % Total Variance %

1 2 3 4 5 6

7 8 9

4.342 48.247

1.099 12.212

.908 10.094

.626 6.960

.475 5.273

.432 4.802

.398 4.426

.378 4.199

.341 3.786

48.247

60.459

70.553

77.513

82.786

87.589

92.014

96.214

100.000

4.342 48.247

1.099 12.212

.908 10.094

48.247

60.459

70.553

2.210 24.551

2.142 23.805

1.998 22.196

24.551

48.357

70.553

Extraction Method: Principal Component Analysis.

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The three factors that emerged as significant were component one labeled continuous

work environment improvement, component two labeled open climate and,

component three labeled communication/clear top management direction. Table 18

displays the talent management construct and the three component factors with their

corresponding factor loadings.

Table 18. Talent Management Construct

Rotated Component Matrix*

Component

1 2

Q28 In dept. we work to improve working conditions .823

Q30 In dept. we recognize efforts to improve quality .786

Q29 In dept. we learn from mistakes .780

Q39 Have adopted ideas from people outside dept. .804

Q37 In dept. people can challenge the way of doing things

Q38 In dept. we value diversity in employees .744

Q35 Senior Mgmt give employees a clear picture of the company direction

Q25 Clear link between performance and pay .761

Q40 My BU keeps employees informed about matters affecting us

Extraction Method: Principal Component Analysis Rotation Method: Equamax with Kaiser Normalization

a. Rotation converged in 6 iterations.

The continuous work environment improvement (component one) had the highest

factor loading. This is significant as it relates to improving processes and working

792

.738

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conditions. It relates to the ability to make a mistake and learn from it rather than

being punished. An open climate was also significant (component two). Employees

can challenge the way of doing things and adopt ideas from others. A final significant

factor was communication (component three). Knowing the direction and vision of

the company from a high level as well as being informed locally was important.

Employees also value a clear link between performance and pay. From a managerial

viewpoint, this is a communication to employees informing them of their worth to the

supervisor and to the company. From an employee perspective, it is feeling a sense of

equity with respect to rewards and recognition. All of these components have a large

strength of association (.65 or higher) within this talent management model.

Supporting Evidence for Construct Categorization

Similar to the engagement construct, Cronbach's alphas were calculated for each

talent management component to authenticate the statistical validity of the factor

analysis results. Cronbach's alpha measures how well the set of survey questions

measures the identified component. A Cronbach's alpha of 0.7 or greater purports a

high reliability that the questions grouped together are all measuring the same

component. Table 19 lists the Cronbach's alphas for the talent management construct.

Table 19. Cronbach's Alpha for the Talent Management Construct

Talent Management Construct Cronbach's Alpha

Continuous Work Environment Improvement 0.81

Open Climate 0.79

Communication; Clear Top Management 0.77 Direction

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Since all of the Cronbach's alphas are 0.70 or above, there is high reliability within

the scales for each talent management component. The questions grouped together

consistently measure the corresponding component.

The survey questions in the talent management construct can be validated through

comparison and review of other prior research. Table 20 validates the construct

through literature review for categorizing the questions into the corresponding

components.

Table 20. Validation of the Talent Management Construct Based on Survey Questions

Construct & Survey Literature Supporting Convergence Questions Definition Evidence for or Divergence

Construct Talent Management Continuous work Employees will environment improvement be engaged if

they work in a Q28 In dept. we work to respectful improve working conditions environment Q30 In dept. we recognize (Measuring efforts to improve quality True Employee Q29 In dept. we learn from Engagement, mistakes 2006)

Table 20 continues

Physical and psychological well-being affect quality of work (Crabtree, 2005); Foster a workplace environment that caters toward improvements (Salanova et al., 2005)

Convergence -Good match in terms of interpretation of working environment

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Construct & Survey Questions

Open climate/culture

Q39 Have adopted ideas from people outside dept. Q37 In dept. people can challenge the way of doing things Q38 In dept. we value diversity in employees

Literature Definition

Effective employee engagement fosters an environment of stimulation (Lockwood, 2006)

Supporting Evidence for Construct Foster open workplace culture through engagement (Salanova et al., 2005); safe to act environment leads to more engagement employees (D. R. May et al., 2004)

Convergence or Divergence Convergence -Good match but there is some overlap with the continuous work improvement environment; safe to act or acceptable to learn from mistakes could be in this dimension as well.

Communication: Clear top management direction

Q35 Senior Mgmt give employees a clear picture of the company direction Q25 Clear link between performance and pay Q40 My BU keeps employees informed about matters affecting us

Senior level leaders have more impact on employees than direct supervisors (Debunking the Myths of Employee Engagement, 2006); organization strategy is well communicated (Employee Engagement Report 2006,2006); Employees want to be fairly rewarded for their work (Measuring True Employee Engagement, 2006)

Good internal communication (Driving performance and retention through employee engagement, 2004); clear, consistent and honest communication is an important management tool for engagement (Lockwood, 2007); communicate from top down to build employee confidence and buy-in (Kress, 2005)

Convergence - very good match

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All of the categories provide a good convergence in terms of defining the constructs

with the appropriate survey questions and topics. There is some overlap between the

open climate and a continuous work environment improvement. It is encouraged in

both components to have a safe environment where employees can make mistakes

without the fear of punishment. Individuals learn from errors. Employees need to

know that they have the freedom to try new ideas and challenge old ways of doing

things. It is clear that the environment and culture play a role but with potential

impact in both dimensions, the probability is high that overall, they both provide a

good match for validation of the talent management construct.

Means

Since the talent management action plan which was developed and implemented by

the management of CSU would be the main cause of effect on employee engagement,

a MANOVA analysis was performed to see if any significant changes occurred within

the talent management drivers. The full MANOVA analysis can be found in

Appendix D.

Based upon the results, the mean scores for the talent management dimensions all

increased significantly as listed in Table 21. They were calculated based on a Likert

scale of 1 to 5 with 5 = strongly agree and 1 = strongly disagree. Table 22 displays

the percentage of survey respondents that agreed with the statement listed under the

component. Each statement can be presented as a percentage but since there are

multiple items for each component, it is not possible to turn a composite mean score

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into an overall percentage in order to safeguard the natural variation along the scale.

This preserves the statistical validity of the constructs (Cook & Campbell, 1979). The

positive results of each talent management component over time are displayed in

Figures 9,10 and 11.

Table 21. Means for Talent Management Dimensions

Talent Management Dimension

Continuous Work Environment Improvements Open Climate

Communication; Clear Top Management Direction

2006 Mean US

BUs 4.01

3.80

3.34

US CSU 2.32

2.29

2.93

2008 Mean US US

BUs CSU 4.08 4.05

3.92 4.01

3.51 3.73

Table 22. Percentage of Survey Respondents that Agree with the Statement under each Talent Management Dimension

2006 2008 % Agree % Agree

~us us us us" BUs CSU BUs CSU

Continuous Work Environment Improvement Q28 In dept. we work to 79% improve working conditions Q30 In dept. we recognize 77% efforts to improve quality Q29 In dept. we learn from 86% mistakes

Talent Management Dimension

7%

10%

3%

86%

79%

87%

65%

92%

96%

Table 22 continues

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135

Open Climate Q39 Have adopted ideas 69% 11% 72% 65% from people outside dept. Q37 In dept people can 73% 14% 81% 79% challenge the ways of doing things Q38 In dept. we value 74% 3% 81% 83% diversity in employees Communication; Clear Top Management Direction Q35 Sr. Mgmt give 81% 38% 79% 68% employees a clear picture of the company direction Q25 Clear link between pay 47% 24% 28% 58% and performance Q40 My BU/SU keeps 57% 24% 70% 77% employees informed about matters affecting us

The mean for each talent management component in 2006 and 2008 for the CSU as

well as the BUs are displayed in Figures 9,10 & 11.

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4.5

4

1 3"5

3

2.5

2

,, _ _ „ . . . rff....... ...

•<» 1 IC D l I n ' • • UJ> BUS

US CSU 1 S , „mm„,mlll,„mta ,„H , „,,,„• „,„,,?:

2006 2008

Year

Figure 9. Means for Continuous Work Environment Improvement

4.5

4

1 3.5 x 3

2.5

2

2006

JU.

• * *

*^ >* r

2008

Year

-US BUS j

US CSU 1 i!

Figure 10. Means for Open Climate

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Figure 11. Means for Communication; Clear Top Management Direction

The talent management dimensions all increased significantly for the CSU, while on

the whole, nothing changed on a US-wide basis. At the very least, the CSU was

positively impacting and improving both its talent management and engagement

scores.

Significant Differences between Years

The overall results exhibit improvement for the CSU in all dimensional categories.

However, when the questions are individually analyzed through an ANOVA analysis

to determine if there were significant changes in responses over time, all but two

questions displayed significant differences. There was no significant improvement for

the question of having opportunities for further development in the job nor was there

any improvement for the question of a clear link between performance and pay in

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2007 or 2008. In addition, the overall results show that there was no significant

change from 2007 to 2008. The results for the CSU are listed Table 23.

Table 23. ANOVA Results of Talent Management and Engagement CSU Questions

SigDif SigDif SigDif 2006 2007 2006 2008 2006 2007

Question (p<05) (p<05) (p<05) Sample Size 84 36 73 Overall Engagement/Commitment Q47 Satisfied with BU as place ' ,-1 . 01 Y

to work Q48 Recommend BU as a good ,_ ~, , g. Y

place to work Q50 Proud to be part of BU 2.02 4.1 Y Q51ProudtobepartofCoatCo 1.93 4.22 Y 4.25 Y N Coaching Supervisor Q23 Supervisor gives me regular feedback on my 2.53 3.86 Y 3.71 Y N performance Q24 Supervisor is a good coach 2.32 Na 3.6 Y Q41 Supervisor encourages . „ , ,, . ,_ ., . , • 2.06 Na 4.17 Y teamwork Q36 Supervisor asks opinions ^ . XT . on v

and suggestions from employees Qll Supervisor delegates 184 4 05 Y 412 Y N responsibility Performance Development Q13 Opportunities for further 2 g5 3 og N N

development in job Ql5 Organization offers support _ „ „_ Y - - ^ „ and resources for development Q25 Clear link between _ ., . .. XT . A_ XT XT _c , 3.01 3.05 N 3.07 N N performance and pay

Table 23 continues

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SigDif SigDif SigDif 2006 2007 2006 2008 2006 2007

Question (p<.05) (p<.05) (p<.05)

Transparent Trust Q03 In dept. we are treated fairly 2.15 3.84 Y Q05 In BU, we practice what we _ . ~ . ~. Y

preach Q59 Confidence Mgmt will act „ _ „ _1 y N

on survey results Meaningful Accomplishment Q46 Feeling of personal _ „<- 41 v accomplishment from work Q33 My dept. produces results _ __ i Q7 Y exceeding expectations Q311 understand the goals of 1 ,> 4 n Y my dept. Continuous Work Environment Improvement Q30 In dept. we recognize _ lg 3 86 Y efforts to improve quality Q28 In dept. we work to _ .„ 3 73 Y improve working conditions Q29 In dept. we learn from 1 Q, 4 07 Y mistakes Open Climate Q37 In dept. people can challenge ~ .,g 1 74 Y the way of doing things Q38 In dept. we value diversity in employees Q39 Have adopted ideas from people outside dept. Communication; Clear Top Management Direction Q25 Clear link between performance and pay Q35 Senior Mgmt give employees a clear picture of the 2.86 3.46 Y 3.6 Y N

2.15 3.85 Y

2.55 3.59 Y

3.01 3.05 N 3.07 N N

company direction Q40 BU keeps employees informed about matters affecting 2.56 3.72 Y 3.7 Y N us

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There are several factors that could drive the outcomes for little significant difference

between 2007 and 2008. One includes the possibility that not enough time had

elapsed for the next level of engagement to transpire. The interventions need more

time to produce a stronger impact. Another possibility is that that attention the

employees were receiving positively affected them initially but after a period of time,

no longer had an impact. This is similar to the Hawthorne effect (Cook & Campbell,

1979). A third consideration is that the survey questions did not specifically ask

employees about improvements but rather how they felt at one point in time rather

than compared to previous years. However, the overall change from 2006 to 2008 is

significant which demonstrates a change did occur with respect to talent management

strategy having an impact on employee engagement.

Quantitative Findings

Engagement and Talent Management Constructs

Based on the results of these statistical analyses, there is clear improvement of the

engagement scores for the CSU. The four significant engagement components that

emerged from the initial analysis concluded that coaching, performance development,

transparent trust and meaningful accomplishments were important for employee

engagement. The importance of the supervisor acting in a role as a coach is

emphasized. There must be support from the supervisor. If there is support, the

employee can feel safe to act. The employee will also be more engaged if there is

development within the job and a future career path. Trust in the supervisor and

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management is also vital. The employee needs to feel challenged as well as a sense of

contribution towards meaningful accomplishments at the company.

When commitment is added to the analysis to more fully explore the holistic concept

of engagement, the significance of the model continues to grow. Commitment

becomes another variable within the engagement construct. It is the psychological

aspect of how an employee feels satisfied with the job and the organization which

also contributes to engagement. If these factors are regarded positively, employees

are more likely to be engaged.

The talent management components derived from the factor analysis are statistically

significant. Continuous work environment improvement, open climate and

communication all contribute to a talent management strategy as provided in the

model. These dimensions are statistically significant factors for complementing and

increasing employee engagement.

Rewards and recognition also factor into both the talent management and employee

engagement constructs but did not show significant improvement. Although the talent

management action plan of the CSU did not specifically focus on rewards, it did

implement a few programs. This is an area where more in-depth research may need to

occur. However, the components derived from the factor analysis do correspond to

the talent management model lens, and, if they are included in a talent management

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strategy, employees are likely to become even more highly engaged as evidenced by

the survey results.

Talent Management Model The proposed talent management model presented in Chapter 2 is valid based upon

the quantitative results as a lens for viewing and pursuing a talent management

strategy. Communication and an open climate are distinctly identified as key talent

management components within the model. Continuous improvement within the work

environment is another key talent management component which encompasses the

employee development and managing performance dimensions. These include

focusing in areas such as improving quality and processes as well as challenging the

status quo. The rewards and recognition factors emerged in the communication area.

Employees want to ensure that they are receiving what they feel they deserve and

managers are informing employees what they are worth to the organization. Based

upon the quantitative results, the talent management construct is valid within the

model.

The model is also valid for the engagement construct. The five key components of the

construct that emerged from the data were identified within the model. The first

component identified was a supervisor who coaches. This factor was significant and

corresponded to the proposed model dimensions of perceived support from a

supervisor as well as existing in an environment that is felt by employees to be safe to

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act. Mistakes can occur without repercussion and opinions can be openly voiced.

Feedback also occurs regularly.

The second component, performance development, encompasses the model

dimensions of having the resources and organizational support to do the job. It also

involves linking performance with pay. These interconnect together to support

engagement.

The third component, transparent trust, is essential and was validated by the data as

also proposed in the model. Trust in management must exist if engagement will

occur. Trust also means being treated fairly and appropriately.

The fourth component, meaningful accomplishments correlated to the model

dimensions as the job needs to be challenging and provide growth opportunities.

Finally, as the model also suggests, commitment to the organization is another

important factor. This was included in the factor analysis and was found to be

significant. Commitment is a psychological factor that plays a role in employee

engagement.

The model serves as a lens to develop a talent management strategy that links to

engagement. The purpose of this research is not to show cause and effect but rather to

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explore how a talent management strategy can be positioned to enhance engagement

and, ultimately, organizational strategy. The factors in the model as verified by the

factor analysis are significant in a talent management strategy and when applied due

increase employee engagement.

When combined together, talent management and employee engagement enhance the

HR/OD strategy which is embedded in the organizational strategy. The culture,

communications and work environment are key factors in organizational strategy

which impact the direction and goals of the company. If employees are going to

accept and pursue change, they must be engaged. So, it is not necessarily that talent

management drives engagement which, in turn, drives HR/OD strategy and

organizational strategy, but rather they work in concert together.

Although the model is significant with positive results and change occurring over the

three year period, there are areas in the data that indicate change did not continuously

occur. There was little movement from 2007 to 2008. This could be a result of the

interventions being implemented in 2007 and continuing into 2008. The survey

timing occurred in May of 2007 and 2008 so only 1.5 years lapsed for progress via

the interventions. The action plan was not fully implemented and took longer to put in

place than expected. In addition, the expectation of the employees would be that

progress would continue moving forward but at a pace considered "status quo".

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The initial baseline CSU engagement scores were considerably lower than the general

US scores and, therefore, the CSU had considerable improvement to become par with

the rest of the population. There are several factors that could account for the initial

difference. The service unit has a more difficult time developing and becoming part

of the business strategy. Each individual business unit has a product to sell and a

business to run. The service unit provides services which should integrate into the

overall business plan but it is more difficult to identify with the world-wide business

plan.

Another consideration is that fact that each function (i.e. tax, legal, audit, etc.) acts

and responds in a very decentralized and independent environment. Each function is a

"silo" with very little overlap or coordination. There are several functions such as tax

and legal that report directly into the corporate headquarters where others do not. This

causes a lack of unified goals and communication.

Third, a country service unit is very focused on providing the highest level services to

the business units in a country and they do not focus internally on themselves.

Programs may be rolled out globally or regionally, but the CSU must make a diligent

effort to focus on itself.

The CSU also did not move significantly beyond the comparison group means in any

dimension. Coaching and communication did exceed the US business unit population

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score but not by a significant amount. It could be considered that the CSU did not

have enough time to fully implement the talent management action plan and measure

the outcomes of the interventions. The survey outcomes for 2009 could see additional

movement as the CSU progresses.

Quantitative Limitations These quantitative findings are significant and posit that a talent management strategy

does positively affect employee engagement. However, as Cook and Campbell (1979)

purport, there could be alternate reasons for the significant change that took place

within the study. It is possible that the employees of the CSU were being giving

attention that they had never earlier received and the impact was a perceived increase

in engagement. This is similar to the Hawthorne Effect where productivity did not

increase due to the planned experimental intervention but from the attention the

participants received within the study (Cook & Campbell, 1979). However, with the

length of the study and increases that continued over a two year period, it is most

likely that the Hawthorn Effect is not relevant. This supports the positive impact of

the interventions on talent management.

Controlling for the construct and measurement of engagement is another

consideration. Perhaps, engagement is not a true measure. Do employees or

organizations perceive that engagement is important and is it being measured

appropriately?

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In order to control for these factors and confirm the quantitative results, triangulation

through qualitative interviews and the interventions is explored. The results and

findings of the semi-structured interviews will be discussed in the next section. The

findings of the interventions will follow the qualitative discussion.

Qualitative Results/Findings

There is an important link between quantitative and qualitative data. The debates

were outlined in Chapter 3 but it is important to emphasis the connection between the

two and the rationale to do so.

Rossman and Wilson (1984,1991) suggest three broad reasons: (a) to enable confirmation or corroboration of each other via triangulation; (b) to elaborate or develop analysis, providing richer detail; (c) to initiate new lines of thinking through attention to surprises or paradoxes, turning ideas around, providing fresh insight. (Miles & Huberman, 1994, p. 41)

The qualitative data supports the quantitative data outcomes.

Interviewing participants from the CSU gives insight and anecdotal evidence on

which talent management strategy factors affect employees' engagement and why

they feel those dimensions are important. Semi-structured interviews were conducted

and three dominant themes emerged that explain how a talent management strategy

affects employee engagement: (a) interesting work; (b) influential influencers; and (c)

the climate of the working environment. Figure 12 shows a mapping of the key

themes and the corresponding attributes.

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Involvement

Freedom/Flexibility

Proactive, Supportive, Approachable

Safe

Challenging/ Contributing/Giving ^ ^

Variety

Development

Grow

Knowledgeable Feedback/communication Involvement

Trust Willingness

Figure 12. Key Talent Management Themes that Affect Employee Engagement

Each of these themes link back to the talent management and employee engagement

constructs. Many of the themes overlap both the talent management and employee

engagement dimensions. Figure 13 displays the connectivity of both constructs.

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Interesting Work

Performance Development

Continuous Work Environment Improvement

Coaching Supervisor

Meaningful Accomplishments/ Challenging Work Commitmen

Talent Management

Strategy

Climate

Open Climate

Communications

Transparent Trust

Influencers

Figure 13. Qualitative Key Themes that Link to the Talent Management and Employee Engagement Constructs

A description of how the key themes support the talent management and employee

engagement constructs is examined in detail.

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Supporting Qualitative Themes for the Talent Management Construct The talent management construct components are supported by the key themes that

emerged from the interviews. For each component, the supporting themes are

described.

Continuous Work Environment Improvement

Two themes from the coding of the interviews emerged that supported this

component. Interesting work and climate both had strong support.

Interesting Work

The concept of interesting work first needs to be defined. Interesting work involves a

lot more than simply being interested in a topic or job as described by participants of

the interviews. It is multi-faceted and is made up of several connecting attributes: (a)

freedom and flexibility; (b) challenging/variety of responsibilities; (c) involvement;

(d) contribution/giving back to the job or organization; (e) learning; and (f)

development. It is through these attributes that interesting work supports the talent

management construct of continuous improvement in the work environment.

Freedom and flexibility are essential to improving the work place environment. A

supervisor must have the freedom to develop and design a department structure so

that it runs smoothly and efficiently. If a supervisor rearranges a department from

time to time to fit the employee's strengths, employees must flexible enough to

change as well. As one supervisor noted:

So you have the freedom to rearrange your department from time to time to fit those strengths without adding to or subtracting from your

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department. If I do this, I can get a different skill out of a person. But to do that the employees have to be flexible. In other words, they have to identify that you are doing this for a couple of reasons. One is to maximize the department's effectiveness but to also maximize the employee's effectiveness. And, you may be taking something away from somebody that maybe they think is valuable but in order to get your department going in the most effective manner, you need to do that.

As changes occur continuously, it is important to be flexible but to also have the

freedom to act.

Participation and involvement is also essential in building and improving the

environment. If employees do not have a say in what the improvements will be, they

may not buy into the plan. As one employee stated, "You have a say in the company"

and that is where employees can bring impact.

Another employee added that what keeps her at CoatCo is "the people and it's the

opportunity to get involved in stuff." And when employees are involved, then they

will have more opportunities for input. One long term employee made the statement

that "it makes you feel that you are more a part of the company than simply going

here after twenty years to the same place." It is "the ability to feel a part of it" and

"you do have a say in the company." Involvement is crucial to employees feeling that

they belong and contribute.

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Learning and development is also important for improving the work environment.

People have to be given the opportunity to learn more and develop new skills if the

environment is going to be more effective. One participant stated that "I need more

opportunities to take on more things." Only by developing and providing

opportunities will employees improve the work place environment and productivity.

But it is not only interesting work that enhances the work environment. It is also the

climate of the organization.

Climate Climate is a key component in a working environment. It must be an open and

flexible environment with trust and appropriate rewards and recognition.

The working environment plays a role of providing a place for employees to

productively thrive in their work. Employees described a good environment as one

"where it is open, not just to suggestions, but an environment where you are free to

say opinions." It is a two-way street for communication. People have to want to be at

work because as one employee stated, "If you have an interesting job and a good

boss, but the environment is say confrontational, then people aren't going to want to

be here."

The environment must also support employee learning and growing. And, part of this

process is going to be making mistakes. Mistakes need to become learning tools and

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not punishments. One employee described how her manager supported her even when

errors occurred: "If we make a mistake, he always figures out how we will learn from

it." Employees should not be afraid to make a mistake or take a risk for fear of

retaliation. If there is no fear of mistakes, they will be willing to learn new skills or

gain new knowledge. This type of environment promotes an open culture which

encourages learning and growing.

Flexibility and rewards are also important in terms of making changes when needed.

This comes from both the organizational and individual perspective. Employees need

to be flexible, too. Flexibility also entailed the ability to balance work and family life.

Without work life balance, work can become draining. One employee stated that

"maybe money is important, sure, but you know right now for me, I just need some

time away from here." Flexibility to schedule hours and days is also important to

employees. It takes "flexible work schedules to maintain that work family balance."

Recognition is not always about monetary rewards. In order to have that flexibility,

trust must be a part of the culture.

The climate of an organization will set the tone for the working conditions and

commitment of the organization to its employees. However, it is more than just the

working environment that contributes to a talent management strategy.

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Open Climate Two themes from the coding of the interviews emerged that supported an open

climate as a talent management driver. The climate and influencers both contribute to

an open environment within an organization.

Climate

The climate of a company is important for setting the stage for change or

implementing an initiative. The CSU was described as a "dynamic environment"

which supports the continuous change process, but employees also expressed the need

for "an open environment where it's not dictatorial." In fact, one employee stated that

"the vision of the company has definitely taken a different turn; it's like evolving; it's

like all this talk, talk, talk, but now it's really happening." Employees could see that

the climate was changing and action was occurring instead of talk. The climate does

play a role in talent management.

Flexibility and rewards are also important just as they were referenced under the

continuous work environment dimension. Again, rewards do not necessarily have to

be monetary. "Change it; make it better; and the process of doing that is the reward."

That is not to say that recognition is not important. Many employees commented on

the recognition of accomplishing a project or task. "It is good to be recognized for

something that you had a say in" or that the "CEO recognized me for that

accomplishment." It is almost as if employees just want acknowledgement. "It's kind

of recognition or just that he (supervisor) knows that he knows I did it."

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Influencers

An open climate also includes the impact of others on the culture and environment.

Any organization is made up of people but it is how these people interact and

communicate that can make a difference. One employee describes the culture of

people and how they work together at the CSU:

Sense of humor, sarcastic sense of perspective about the craziness that this company sometimes does have. Willingness to work hard and dig things out and I think, it's hard not to let, this company is not perfect, it certainly has its wackiness, has its frustrations, but I think being with people who get that and keep a sense of humor about it, recognize the wackiness, the frustrations and get through that together. I think that is huge. It's being in the trenches together mentality to a degree.

Employees spend so much time at their job that the interactions with people are

important. Consistently, when asked why individuals stay at the CSU, the common

response is "the people". One employee stated that "I tell everybody this is more your

family than your family. So whether you like to admit it or not, you know we are

family." People need to have "friendly colleagues who are also happy with their

current environment."

This also melds in with supervisors or managers. These individuals can impact a

climate as well. If it is an open climate, the supervisor can provide feedback and

allow for mistakes to occur in a safe environment. One employee describes bis

supervisor as someone who "always gives me the time" and "he will go to bat for me"

whenever an issue arises. Employees need to sense that it is acceptable to ask and

question processes but will also have the backing of his/her supervisor. This allows an

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employee to learn new skills or concepts in a safe atmosphere and without

repercussions.

A part of this climate is trust. Employees have to have trust in their managers as well

as their colleagues to be open. One employee stated that, "I can't work if I can't trust

the people I work with."

An open climate is one prominent piece of a talent management strategy but

communications and clear directions also play a role.

Communication/Clear Top Management Direction

Two themes from the coding of the interviews emerged that supported a

communication and clear top direction as a talent management component. Both an

open climate and influencers contribute to successful communications within an

organization.

Climate

Without communication, employees have no goal or vision to try to achieve. It is the

ability to communicate in an open environment where information is free flowing that

is essential. Employees consistently communicated this message. One employee

emphasized that "open communication; that's what really gets my ideas flowing."

The influence of the culture and environment is also guided by top management and

employees alike.

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Influences

Communication is a two-way path. Supervisors are encouraged to hear employee

opinions and suggestions. This has changed as one employee explained that with the

prior CEO, "I don't feel like he fostered that openness. I think that since the new CEO

has come on board, that's changed." Top management has a role in setting the stage

for the climate and culture. Employees want to know what is happening and what to

expect. It is only through communication that they can be informed. Another

employee stated that "I think it helps to have management up here who also continues

to trickle that [communication] down." Without leadership informing the employees

of the strategy, they would not know how to move toward a common goal or vision.

It is not only senior management that needs to keep everyone informed.

Communication also involves feedback from supervisors. Having a manager or

colleague provide feedback is vital. Both positive and constructive feedback need to

occur for improvements. Combining feedback with helping or guiding the employee

through the next steps produces a positive future. One respondent noted that "a

manager needs to give feedback more than once a year." Often, feedback is only

provided at the time of a performance appraisal. Employees want to know how they

are doing so expectations can be set and performance adjusted if necessary. One

manager noted that it is the responsibility of the manager to not only provide

feedback but to also assist with guiding the employee forward when he said, "I am

going to try to give you some feedback and I'll guide you for the next steps." This

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allows for a supportive environment. It needs to be a "two-way" communication in an

environment where the employee is free to communicate. Continuous communication

must also occur from all levels. It is the constant feedback and open informational

flow that allows for employees to be aligned with top management goals and to

pursue improvement in their own job and career development.

Supporting Qualitative Themes for the Employee Engagement Construct

The employee engagement dimensions are also supported by the key themes that

emerged from the interviews. For each engagement dimension, the supporting themes

are described.

Coaching Supervisor

The two themes that emerged from the interviews that support a coaching supervisor

factor were influencers and interesting work. These two themes overlap in their

identification of the importance of supervisory support.

Influencers

The support of a manager providing encouragement and opportunities is essential for

employee development and engagement. However, a supervisor that is "caring"

emerged as a leader for employees. A caring manager was described by one employee

as "somebody that supports your development and thus supports your strengths."

Another employee described it as "somebody who cares enough to know when you

could be left alone but cares enough to know when he senses some stress here" and

yet another stated "somebody who is a little bit more intuitive." A caring manager

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does not always have the expertise or knowledge to help an employee but can support

the employee and find the appropriate resources.

The key attributes of a caring manager that emerged are approachable, supportive and

proactive. One employee described a caring manager environment as "the helping

industry." A caring manager encourages questions and has an open door policy. But

could a caring manager also be a mentor? Is there a difference?

A mentor was defined by employees as "somebody that you know will take you

along" or who "might see more in you than what you see in yourself and "takes you

under their wing." A mentor can be different than a manager as described by one

employee:

I think a mentor, when I think of the word as someone who is really and maybe directly or indirectly but really kind of helping you along in some way, whether it's just giving the opportunity or guidance, where a manager can be someone who's very uninvolved in what you do and just wants to know the work's getting done.

Yet, some employees have had both a caring manager who is also a mentor. "I had

both somebody who was a caring manager who I would easily call a mentor." Both

encourage learning, teaching and growing. But, a mentor can be a person who an

employee does not feel afraid to speak with since the control of the job is ultimately

with the manager.

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A supervisor also provides a safe environment for learning. Mistakes may occur but

they are used as an opportunity to learn. One employee describes a coaching

supervisor as one who "lets you fall on your face if you will and learn from your

experience." It is the opportunity for learning that counts rather than punishment for

the error. And, the supervisor should also be providing coaching to the employee for

developing new skills.

Interesting Work

A coaching manager provides freedom for employees to learn and engage. This

includes allowing employees to choose how or where to be involved in projects. One

employee made a statement to this effect very succinctly:

I think I kind of pushed myself into certain areas, too. Because I wanted to be involved in certain areas and I was allowed the freedom to do that at that point in time. So freedom is another criterion of engaging employees. It comes down to the desire of the employee to want to be involved and the freedom to use your expertise.

Without freedom on the job and to try new things, employees do not find the work

interesting.

Employees themselves linked freedom directly back to engagement. A supervisor has

to provide this freedom and be able to coach an employee to work on new skills as

part of the employee development plan. Freedom contributes to an employee's

engagement or a supervisor's interaction with employees.

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Another key area that employees expressed a need for assistance from a supervisor is

development and career planning. A manager is viewed positive and helpful if he

"truly, honestly and sincerely has employees, has my welfare, has employees'

welfare, professional welfare, personal welfare, developmental welfare at heart." It is

a supervisor "who puts your development, your quality of life in their mind." The

supervisor truly wants to develop the employee and not just with job tasks but as a

whole person. Opportunities are created for employees to get involved in areas that

will let them grow. One supervisor commented that "there are certain talents that can

be acquired but you need to give them opportunity." It is acknowledged that the

supervisor has the responsibility for providing employees with growth opportunities

in order to advance but employees also have to participate in looking for

opportunities. One employee described a development opportunity he was able to

become engaged in:

We made a purchase offer and we said okay now we take this little project of three business units and they get this huge project of Chemical Company X very quickly. Alright, that's when we formed this team. I still wasn't officially taken out of my job. I more or less just kind of moved myself out of the job and into the project team. But that's when Phil headed up that project. So Phil [his boss] was my mentor on that project. Also, Bill from IT was a mentor as he had some good background in the whole logistics area. We learned off of each other.

This situation exemplifies where the employee took charge but was given the

opportunity from his boss.

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It is readily apparent that the supervisor plays a large role in promoting employee

engagement. It is evident that how managers treat employees does affect employee

engagement.

Performance Development

The performance and development of employees is also critical for engagement. The

two themes that emerged from the interviews connecting to performance development

are interesting work and climate.

Interesting Work

In order for employees to develop, they must be given the freedom to pursue new

knowledge and skills. This freedom includes extending boundaries or creating new

ones. As one employee explained it, "the amount of freedom I have and the fuzzy

boundaries I have can be very good." This employee pointed out that freedom can

come from not having explicit boundaries around a job. She had freedom to go in

multiple directions to learn new knowledge. Freedom also means allowing "someone

to put their two cents into it." Open suggestions and being able to voice an opinion

are important for an employee to find interesting work which leads to learning and

development.

The opportunity to learn something new is appealing to most employees. Every

employee interviewed discussed a learning aspect of their job. Most often, employees

want an opportunity to learn something new. "Learning new things" was a common

theme and viewed as a positive trait. One employee commented that "if I stop

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learning then things are not good." But the learning experience has different

dimensions including "learning from each other" to getting opportunities to go into

new fields to simply understanding the big picture of why someone completes a

certain task. Learning also occurs from errors or mistakes. As one supervisor stated,

"If it doesn't succeed, it's not going to be the end of the world, that it'll be a learning

experience." Interesting work is a continuous learning cycle.

Learning is a key element of employee development and performance. No employee

can be perfect all the time and mistakes will occur. But the ability to make

improvements based on past errors is essential and in order for employees to be

willing to work towards improvement, they must be properly coached to perceive the

challenge as positive. It will provide development for the employee and improvement

for the department. This has to be ingrained in the culture as well.

Development is another major factor of interesting work. Employees defined

interesting work to include development opportunities or embedding development

within the job. But what quickly emerged through the initial interviews was that

employees do not often even realize when development occurs. One employee made

the statement that "If I were to sit down and work on my resume, it would look so

much different than what it did ten years ago. And I would sit back and say, holy cow

that was development." Another noted after much thought that "development happens

on the job every day." Employees cross-train or learn a new skill and, in fact, it is

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development. Recognizing and acknowledging development by employees was often

an afterthought.

Once an employee thought about development within their own personal situations or

careers, four key sub-dimensions consistently emerged: (a) opportunity; (b) stretch;

(c) strengths; and (d) grow. Opportunity involved the chance to get involved in

something new or to participate in a project with freedom to make decisions and lead

in a new direction. One employee discussed an opportunity as "it gave me the

opportunity to not only show what I knew but to be able to understand what CoatCo

knew." Opportunities are not always handed to employees; they are often spotted or

seeked out by employees. As one supervisor explained, "The employee needs to be

able to have a desire to look for these opportunities and, ask, not expect management

to come to them."

Advancement was also a part of development but it came through involvement and

opportunities to gain new knowledge. To learn new skills, employees would need to

stretch their goals or abilities to reach a higher level. Exposure to new ideas or

concepts would assist with development. Several employees made comments similar

to this one; "Giving assignments and projects that enhance your ability to use your

strengths" was seen as a positive. It was focusing on strengths as opposed to areas of

weakness. Employees felt that if managers acknowledged strengths and provided

work geared toward them, success was inevitable. As a result of the emphasizing

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strengths, individuals would also grow. As one employee put it, "If you are not

growing, you're stagnant and what happens to stagnant water?" Job growth as well as

individual growth are important and are not always an easy path. In fact, "we're not

growing if everyone is patting us on the back." It involves the learning, challenge and

freedom to solve problems that when combined together, create interesting work. But

the interesting work must coexist in an open climate.

Climate

For development and growth opportunities to exist and expand, the climate or culture

of the organization has to support the efforts. Employees must feel they work in an

environment of trust especially with their supervisors. Through the interviews the

theme of "trusting them" or "somebody that I trust" was said continuously by

respondents.

There is also a willingness on the part of employees to learn new skills or cross-train

with others. This requires flexibility on both the part of the employee and the

organization. "Employees have to be flexible" but the organization also has to

provide a flexible environment. This includes providing flex time and alternative

work arrangements. Employees emphasized over and over again that "flexibility is

key" to maintain a positive climate.

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Rewards and recognition also contribute to the climate and can take many forms.

According to the employees interviewed, intrinsic rewards were seen as very

important:

"The more projects that came through, the more rewarding I think it is."

"Change it; make it better, and the process of doing that is the reward."

"You service another group and in a way that's helpful to them and so that's the

reward."

They were not necessarily looking for more money but a reward that has a sense of

accomplishment. One employee stated that rewards should not be "just financially at

times, but also in opportunities.. .to me this is more key."

Recognition also is important whether it comes from a manager or from a colleague.

Employees feel good for being recognized and it enhances their working climate:

"Our executive CEO recognized me."

"It's good to be recognized for something you had a say in."

"If it was total non-recognition maybe after a while you would say, hey, maybe it's

not worth it."

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Rewards are important and discussing pay and performance did not emerge in the

interviews. However, it remains a concern from a quantitative perspective.

Employees may be hesitant to discuss monetary rewards in person rather than via a

survey.

Recognition is important as part of the culture and climate of an organization as is

flexibility and freedom. In concert, they enhance the development and performance of

employees toward higher levels of engagement. This can be further influenced with

trust.

Transparent Trust

Trust is an essential element in the engagement concept. Employees will not become

engaged unless there is trust with a supervisor as well as the organization as whole.

This emerged through the two key themes of climate and infiuencers.

Climate

Trust is a basic building block of the climate. Employees must trust management and

management must trust employees. It is a two-way street. One employee described

the environment as "If I don't trust a manager, I am going to still be professional and

do my job, but I'm not going to be nearly as open." Work can still get accomplished

but the employee is not going to move to the next level if there is no mutual trust. The

manager has to also trust the employee. It also holds true for colleagues in a team

environment. An employee described a situation where she is working with

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colleagues in her department and states, "It was a real problem and it's more you get

to the point of I can't work this way if I can't trust people I work with."

Trust also involves giving people the freedom to try something new or lead a project.

One employee described the trust relationship between herself and her manager:

And I was given, I mean, I felt like yes, I'm being told to go ahead and take the lead because you know the manager has this, you know, actually the faith in me that I can do it. Being able to do it from beginning to end.

Trust provides opportunity for employee growth as well as organization growth.

Influencers

Trust is also very apparent in how the manager and employee relate to each other.

Employees gain trust by having a knowledgeable and caring supervisor. As one

supervisor said, "It's just commitment to them; wanting them to do a good job and

maximize their career." This may be transparent to the employee but only if a

supervisor has this attitude will the employee reap the benefit by having support from

the supervisor for job development and advancement. In addition, if the supervisor

has a good relationship with the employee and there is trust embedded in the

relationship, the employee will view work in a more highly engaged state and is

likely to find more meaningful results from his work.

Meaningful Accomplishments/Challenging Work Employees want to know that the work they are completing and coordinating is

meaningful to the organization and they are making a contribution. In addition, if the

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work is challenging, the employee is more likely to be engaged. Through the

interviews, two of the key themes evolved that supported meaningful work were

interesting work and influencers.

Interesting Work Interesting work provides challenges and offers a variety of tasks or opportunities.

One employee stated that:

I'm not enjoying this; this isn't making me happy at work when things are more routine and not challenging. You feel like you're just pushing papers and filling out forms and just doing things that you are just kind of spending time, but realize that you could do a lot more, a lot more higher level things I guess you would say...But the projects, the more projects that come through the more rewarding I think it (work) is.

The projects offer a variety from the routine daily work. It's the ability to put together

a puzzle from a mixture of pieces and make sense out of it. Another employee

described this puzzle:

Well, I think putting that puzzle together of taking something and making sense, make order out of chaos or at least you know taking a project and saying okay we've got to get it done. No one has said how and now you know it's my responsibility to get it done and find out who's going to do what or who's going to do it or yeah, how it has to get done. Something that's maybe not just straight forward, it's challenging to me because there is not a path yet. I am making the path. But certainly I enjoy that.

It may not be easy to solve that puzzle as another employee expressed that,

"Something challenging, even though it might be frustrating is interesting." She also

stated, "It's not until I'm challenged or I'm put into a position that I think I can do it."

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Solving the puzzle with freedom and involvement is key to an engaged employee

even when it may not be easy to solve.

If the work is challenging, the outcomes are perceived as meaningful. An interesting

attribute that emerged from the interviews was the ability to make a contribution. The

concept of contribution entailed the ability to provide or give something back to the

job as well as to the organization as a whole. One employee discussed the ability to

utilize skills towards making a contribution. "You're utilizing skills that you've had

in the past and you're making a contribution. I think that's where the satisfaction

comes in." Other participants discussed the giving aspect and feeling like a

"contributor" to a greater good:

I mean you have to feel good about the contribution that you're making but then also the additional stuff and the really hard stuff and I'm saying that probably some people may not even believe in this, that you believe that the company you're working for is also contributing to something.

I think a lot of people get to the point in their lives where they want to feel good about that they are contributing something good to the world, not just contributing something good to their job or to the people that they work for because they care about the people that they work for and they like their job, but they may not necessarily be sold on the idea of the company.

Employees expressed a sense of "gratefulness" when they were contributing. One

employee put it well when he stated, "As long as I feel that I am making a

contribution to help CoatCo, to be a part of CoatCo, then I feel fine." Without a sense

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of contribution and feeling good about making a difference, the work would not be

interesting.

Influencers

It is no surprise that supervisors can influence challenging work. What did emerge

from the interviews was the impact that the employees had on their job or work. It

was often a surprising element in a discussion for an employee to realize that there is

an internal element that can influence work and engagement. One employee

explained:

If I go back over my career and what I like about CoatCo and the job is I have over the years been given the opportunity to grab hold of opportunities and to challenge myself and to be able to learn through those experiences.

Another added:

If I just didn't say a word, I probably wouldn't be on it [the team]. It's my assumption looking back. So I as the employee took the initiative, spotting the opportunity and to let management know I thought I had something to contribute. I think I pushed myself into certain areas, too.

There is an internal drive that adds to an employee's desire to be better or to be at

work and to challenge one's self to improve. One employee called herself "internally

self driven." The internal thread is a piece that many employees have inside that

allows them to commit and try harder.

Well, if I give someone my word then I can't go back to that so I'm just committed, but that's just the individual that I am. If I take something on, I have to do it the best I can do it. That's where I would beat myself up.

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The self often takes a covert role, but it is always there. And how much the self gains

is largely dependent on the individual and the challenging work.

You can make interesting work out of almost anything that is given to you. A person who will succeed in my opinion again is somebody who will take something and find a better way to do it, will find an attachment to it, and say well this relates to this so maybe I can get involved in this area or whatever. That's what I've tried to do you know get something as you go through. Okay, fine, but how can you branch out, what's the interesting part? And the interesting comes in two forms, it comes in a self-education, self-fulfillment of what you like, what you can learn from it and it comes from this fulfillment of this expectation of helping or being part of the company or advancing within the company.

The interesting work feeds the challenge but often it comes from the individual's own

self influence.

Commitment

It is essential to comment on commitment in the engagement construct as employees

did comment on commitment in the interviews. The two qualitative themes that

emerged were interesting work and influencers.

Interesting Work

Employees who have interesting work are going to be more committed to their jobs.

Being involved in their work and taking ownership is part of being committed.

"Being able to put my name on it" is one aspect of commitment. Employees take

pride in working on something and claiming the success. This provides the impetus to

becoming committed.

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Development also plays a role in commitment as employees will want to stay at an

organization if there is an opportunity to grow and learn things. The employee has a

reason to engage and work harder if there is development on the job.

But commitment not only includes freedom, involvement and development but also

the contribution to the organization. One employee expressed her view that,

"Committed to the job; I think it's a feeling of being needed and you know having a

purpose." It is a feeling of completing meaningful accomplishments as employees

want and need to feel that what they are doing is worthwhile and provides to the

greater whole. It is often other people who can provide these opportunities.

Influencers

People within an organization can influence commitment whether they are

supervisors, colleagues or mentors. One employee commented on commitment, "I

think it has to do with the people though that you work with or for or for you."

Employees spend so much of their time at the job that they need to build relationships

as if they were family. This builds trust and allegiance not only among employees but

also to the organization.

Another employee commented that it is "the social aspect that keeps people

committed." If employees can interact with people outside of their department, they

can find out more information and have a better feel for the direction of a project or

the direction of the organizational goals. It also provides a path to build strong

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relationships with others which will ultimately produces more loyalty to colleagues

and the organization.

Commitment is multi-faceted as are the overall talent management and engagement

constructs. Interesting work, climate and influencers all impact the talent management

and employee engagement constructs. The talent management drivers clearly

influence and affect employee engagement and, combined, they form a strategy that

promotes talent management and engagement together feeding into the organizational

strategy.

Talent Management Strategy

The three themes that emerged from the interviews clearly overlap each other.

Interesting work cannot exist without key influencers in an appropriate working

climate. As one senior level manager explained:

Talent management to me becomes like part of the corporate company culture. I think it has to be imbedded in there. It has to be something that somebody can look at this and say, I have a direction and I have a say and let me define a little bit about that. The direction is the help; it's not the giving. It's providing the company and managers and the people on top the ability to excel to move the people but they've got to be involved in it, too. It's not a one time direction so this year you'll be doing this and now I'll move this way. It is communication and it is direction and making these things available; that's the hard part of it. I think the helping, education, the involvement; it's difficult but it should be done. It's providing the opportunities.

Talent management is embedded in the organization and strategy. There is a

triangulation between them so that when combined together, they work in concert and

impact employee engagement and contribute to the organizational strategy.

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Intervention Results/Findings

In order to complete the triangulation of this study, it is necessary to report the results

and findings of the interventions in support of the talent management strategy and

employee engagement concept. The results of the interventions are described based

upon observation and action plans implemented.

Supporting Interventions for the Talent Management Construct

Interventions and action plans had been implemented to promote a positive change

and focus on talent management drivers. The results of the interventions are discussed

for each talent management component.

Continuous Work Environment Improvement

In order to create change within the CSU, management supported the concept of

directly involving the employees. If the culture was going to have to change in order

to increase engagement and focus on the human resource assets, the employees were

the key to making it happen.

The management of CSU was approached with an opportunity to hold an appreciative

inquiry workshop with the purpose of exploring what kind of culture or environment

the CSU should have in order to encourage and foster employee development and

engagement. Appreciative Inquiry (AI) allows the transformation of an organization

to occur through exploration of affirmation and appreciation. Individuals can

influence success and change of an organization by focusing on strengths, values,

hopes and dreams (Whitney & Trosten-Bloom, 2003). Through an AI intervention, it

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is possible to learn, discover and appreciate what is most effective and successful

within an individual, organization, and the "whole" system (Ludema et al., 2003).

The "whole" system at CSU, which consisted of all of the employees, was able to

work through the AI process in a two-day offsite workshop. They addressed and

completed the four phases of AI: a) Discovery, b) Dream, c) Design, and d) Destiny.

The discovery phase enabled the CSU to identify the basic principles to preserve

within the organization. These consisted of teamwork, people relationships,

opportunities to expand knowledge and develop challenges, and be a part of the

diverse, global organization. The second phase, dreaming, resulted in creating

employee development culture statements:

• CSU encourages education while promoting teamwork within the organization. It offers a work/life balance by providing a flexible work schedule while recognizing outstanding service.

• A company that listens to its employees' needs and works toward meeting them through promoting diversity, growth opportunities, mentoring and rewards for hard work.

• CSU is a fun place to learn and grow. It has programs that help employees identify their strengths and provides programs to help them build on those strengths. Management encourages employee participation with time and resources.

• CSU develops its employees by fostering an open environment that provides career opportunities via cross-training, clearly defined career paths, mentoring programs and job rotation; at the same time offers work flexibility.

• CSU is one center of excellence—advising and consulting our operating divisions (former business units) because of our highly developed, talented, educated, creative, knowledgeable employees.

The major themes that emerged included a vacancy bank, rewards, training, cross-

training, flex-time, mentoring, career paths and an open door policy. In terms of the

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design phase, the organization listed ten brainstorming ideas of which the top five

included rewards (monetary), sabbaticals, career paths, on-site training classes and

flexibility. For the final phase, destiny, the smallest step that would have the largest

impact on the culture at CSU was in rank order: a) flexible work schedules, b)

rewards and recognition and c) improved vacancy bank. For development purposes,

employees voiced the following ranked order concerns: a) career paths, b) on-site

training, and c) cross-training. The AI process allowed the organization to move from

a deficit-based approach to a positive change mindset with lots of energy and

excitement emerging.

With flexibility as the key issue, the CSU pursued these areas with employee

participation intertwined in the process. A flexible work schedule committee was

formed with employees representing all departmental areas to develop a proposal for

alternative work schedules. The committee met over a period of four months and a

proposal was presented and accepted for implementation. It was through their voice

and business proposal that flexible schedules were formally permitted for the first

time. This supported the effort to continuously improve the work environment.

The AI process also brought together people for the first time from cross-functional

areas. Perspectives from different groups and employees were addressed and

discussed. This was a step toward opening the communications lines within the CSU

at all levels and providing an opportunity for direct input. This was confirmed when

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management took all employees offsite for two days. This would never have been

contemplated in the past.

The CSU management recognized the need for a cultural change to address employee

needs and was implementing an on-going process through AI to encourage it.

Open Climate

The AI workshop was the first step toward promoting a more open culture and

environment at CSU. It provided an opportunity for all levels of employees to come

together to influence and build the culture for the future. Higher level employees did

not account for more say in the process. There was equal input into the culture. The

President of the CSU participated in the AI workshop as a "regular" employee and

could not override any comments or direction at the workshop. For the first time,

many employees expressed their opinions to him.

In addition, the flexible work schedules that were designed could only be

implemented in an open culture. Both employees and managers had to be able to

address issues or concerns with flexible schedules. A new element of trust emerged.

Employees were being treated as responsible adults who did not have to be routinely

monitored but rather could work independently. This was a new "culture" for

employees.

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A vital element for both the continuous work environment and open climate was

communication. Activities toward improving the work environment or creating an

open climate could not be successful unless appropriate communications existed.

Communication/Clear Top Direction Based upon the initial survey data, communication is one area where employees

believed that they were not receiving information about the company or their

department. The CSU initiated employee communication meetings to be held three

times a year so that management members could provide updates on the direction of

the company or to communicate up-coming changes. These meetings were held

regularly every three or four months in 2006,2007 and 2008. They were held offsite

and a social hour afterwards was provided with food and drink. This capitalized on

the social networking possibilities.

One of the key drivers for communication was the ability to know what was

happening on a local as well as a global basis. The global CFO attended the CSU

annual communication meeting at the beginning of 2008 and was able to respond to

questions from employees. This was an essential meeting as two weeks prior the

company had acquired another large coatings company which would make the US

hold the largest population for CoatCo globally. It was decided that a Board of

Management member would be invited to attend a communications meeting at least

once a year as the feedback received from the employees was extremely positive.

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This was the first opportunity for many employees to ask questions directly of a

senior level member.

The other communication chain that was enabled was through the intranet.

Employees were able to subscribe to global and US newsletters as well as have a site

locally where company announcements were stored. All supervisors and managers

were asked to distribute any announcements that they received and to hold regular

staff meetings and regular management meetings were scheduled. The simple act of

keeping employees informed would allow them to work towards department and

company goals as well as feel a part of the organization.

Survey feedback meetings were also incorporated into the communications meetings

every year. It was important to report back to the employees the results of the annual

survey and what progress was being made at the CSU.

Supporting Interventions for the Employee Engagement Construct

The interventions and action plans that had been implemented did correlate to the

employee engagement construct as a result of the talent management initiatives. The

results of the interventions are discussed for each engagement component.

Coaching Supervisor

At the CSU and within CoatCo as a whole, supervisors had not been provided any

direct training or coaching for how to be a good manager. CoatCo began to

implement global management development programs for the first time to address

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this deficiency. These included first line supervisory programs, middle management

essential courses and executive level programs to address areas such as coaching for

employees and global strategy in a business unit.

The CSU also implemented performance management workshops for the supervisors

to learn how to consistently evaluate employees throughout the organization. Once

again, these supervisors had never been taught the skills they needed to conduct a

performance appraisal or deal with a performance issue. They also attended classes

on how to assist with the development of employees. Supervisors need to be able to

encourage and assist employees to grow and they had not learned any techniques.

Without these skills, they could not become a good coach to their employees.

Performance Development

Both the global organization and the CSU had not emphasized employee

development as part of the organizational purpose or goal and it was very evident in

terms of the survey results. There was a lot of dissatisfaction from the employee's

perception. Based upon the focus group results after the initial 2006 survey results,

the employees generally perceived employee development as taking a class or going

to a seminar. And, even this was seen as a privilege and not a "right" of all

employees. Some supervisors allowed employees to attend training while others did

not. A management meeting was held to clarify policies and practices to emphasize

consistency. All employees would be allowed to attend up to two seminars a year and

training as needed. Supervisors were encouraged to allow employees to go even

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though they felt that there was too much work to do in the office. All groups felt the

pressure of getting the work done with too few resources but employees had to be

developed and needed to attend training or seminars as appropriate. A "trip report"

was initiated whereby the participant would provide a quick synopsis of the training

session or seminar in order to share the knowledge he/she gained. This would benefit

more than just one person and allow an opportunity to explain new ideas.

For the employee development purposes, an interactive workshop was created for all

employees to attend where the development dialog process would be explained.

Employees would also be able to begin to work on their development plan in the

workshop. Development dialog is a process that was formalized on a global basis for

employees to complete a personal development plan. It focuses on both the current

job and longer term development. An employee completes a profile with his/her

capabilities and ambitions. The employee and supervisor then have a discussion and

finalize the action plan. Employees are responsible for their career development but it

is a manager's responsibility to actively support the process. The workshop reviewed

the definition of development and then asked participants to become familiar with the

on-line tools through a "searching quiz". One tool was a career insight program that

identifies career paths for most of the common job families. It also contains a

database of job profiles. A development activity guide was also available which

provides practical ideas for on-the-job development activities to develop needed

competencies. Finally, a learning guide was available with self-help activities for

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coaching and feedback tips. Once employees knew what tools were available, they

could begin to research and complete their own profiles. An employee could then

finish the development dialog profile and request to meet with his/her supervisor to

discuss ambitions and career opportunities. Each supervisor at CSU had also been

designated to have an objective for the year of conducting an employee development

dialog with each direct report. If these did not occur, the supervisor would not meet

his objective for the year and it would impact his management bonus.

A piece of this exercise was to formalize what other areas employees would like to

learn new skills or jobs. This planning assists supervisors with opportunities for

cross-training employees. Cross-training was one of the priorities for employees that

emerged from the AI workshop which would allow for more coverage solutions in

order for employees to attend training and seminars. As part of the supervisor's

objectives, an overall development and cross-training plan for the department had to

be created.

Once a development plan is in place, performance needs to be reviewed and

appropriately recognized. A spot award program was initiated where supervisors and

managers could reward an employee for a project or recognition of a good job at any

time. The intent was to provide the reward and recognition at the time of the action so

it could be appropriately recognized. The award could be provided in the form of

cash, a gift certificate or a lunch/dinner out. The freedom to determine the award was

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the responsibility of the supervisor. The basic concept of the spot award allowed an

employee to be recognized and rewarded for strengths even if he/she was an

"average" performer on a performance appraisal. This accentuated the positive.

A workshop was also created for all employees to attend prior to initiating the year-

end performance evaluation in order to increase the understanding of how ratings

were established. In the workshop, employees had an opportunity to rate hypothetical

employees through case studies and to discuss why they were evaluated in certain

ways. This created an internal calibration of definitions for ratings (needs

improvement, meets expectations, exceeds expectations) as defined by employees.

Employees gained an understanding of the relationship of a rating and the

corresponding merit increase they would receive based upon the rating.

In addition, the organization recognized that it did not differentiate enough between

an employee who met expectations and exceeded expectations. A merit increase of

3.5% for an employee meeting the requirements of a job versus a 4.0% increase for a

person exceeding the requirements did not provide recognition or incentive to move

to a higher level of performance. Therefore, an additional 3-4% lump sum amount

was provided. High performers needed to be recognized and valued.

While many of these reward and recognition programs were put in place, this was one

area where little to no improvement was made. Employees continued to express that

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there was no link between performance and pay. It is more likely that the employees

that received larger increases based on performance were more satisfied but,

generally, this would not be the majority of the employee population. The AI

workshops revealed that incentives and, specifically, monetary rewards were

important. This was a different finding than in the employee interviews.

While these interventions and programs were being implemented, the culture was

transforming to a more employee centric environment with an open and trusting

climate.

Transparent Trust

The culture of CSU had to build trust into its foundation. The building block began

with the AI workshop where employees and management sat together and shared

ideas and suggestions on an equal basis. This was often the first time that many

employees had sat and talked with many of the senior management team. Some

employees who sat with the President were thrilled to learn that he had many of the

same concerns such as development opportunities and providing more

communication.

Trust was also being initiated from a supervisor and employee relationship through

the management development programs for supervisors. They were being trained on

how to manage employees as well as their development. Employees needed to know

that they could depend on their supervisors to assist them and that supervisors could

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trust employees to fulfill their job tasks independently as well as learn new ones.

Employees wanted to be able to learn new skills while accomplishing meaningful

work.

Meaningful Accomplishments/Challenging Work

In order to provide meaningful and challenging work, employees had to define what

they wanted in terms of challenging and meaningful work. This was revealed through

the AI workshop where employees listed cross-training, mentoring, career paths and

open communication as requirements for meaningful work. They expressed wanting

to make a contribution to their department as well as to the organization. Employees

could express their interests through the development dialog program where both the

employee and supervisor would discuss future opportunities and career paths. The

work could be geared toward an employee's strength and interest with their input.

Commitment

The AI workshop provided an opportunity for employees to think about and express

their reasons for working at the CSU in CoatCo. It was a time for reflection. The

employees expressed that it was teamwork and the people relationships that

encouraged them to stay. It was the ability to work with many different people and at

all levels. They also expressed that the development opportunities to expand their

knowledge and to be a part of a diverse, global organization were important. These

positive attributes allowed them to become or maintain committed to their job and the

CSU.

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The development opportunities included attending workshops on performance

appraisals as well as coaching for supervisors. Employees also created development

plans for themselves. In essence, they would have control over their future career

plans with the supervisor guiding them. This committed employees to the process.

Employees could only become committed if they understood the strategic direction of

the department and company. Communications were vital for commitment for if

employees could not figure out the direction of the company, their contribution may

be in the wrong form and become meaningless. With the implementation of the

communications meetings as well as the electronic means of e-mails and websites,

employees were more readily informed and could commit to a path toward

accomplishing departmental and organizational goals.

Summary of Intervention Findings

Many of these events and interventions were occurring simultaneously but they all

had a purpose of implementing key components of a talent management strategy to

engage employees at higher levels and drive overall organizational strategy. The

results of the interventions support the components in the talent management model

and contribute to the HR/OD strategy.

Summary of Triangulation of Results and Findings

The quantitative results showed significant improvement in engagement for the CSU

employees over a two year period. The constructs that were defined for talent

management (e.g. continuous work environment improvement, open climate and

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communications) and employee engagement (e.g. coaching supervisor, performance

development, transparent trust, meaningful accomplishments/challenging work and

commitment) were corroborated with the qualitative interview themes of interesting

work, climate and influencers as well through the interventions that occurred. When

employees discussed their views of talent management, they embodied the essential

components of the model which were communication, employee development,

managing performance, rewards and recognition and an open climate/culture. The

same applied where employees discussed the engagement model factors which

include the job is challenging and meaningful, have the resources to do the job, trust

in management, perceived support from the organization and supervisor, rewarded

and recognized, safe to act and committed to the organization. Figure 14 displays the

correlating constructs with the proposed talent management model dimensions.

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Talent Management Model Dimensions

Communications

Employee Development "1 Managing Performance ?• Rewards & Recognition J

Open Climate/Culture

Job is challenging & meaningful

Trust in management

Perceived support from organization! Have resources to do job f-Rewarded and Recognized J

Perceived support from supervisor Safe to act

Committed to organization

}"

- >

- •

- •

- •

- •

-> •

- •

- •

Talent Management Construct

Communications, Clear Top Management Direction

Continuous Work Environment Improvement

Open Climate/Culture

Employee Engagement Construct

Meaningful Accomplishments/Challenging Work

Transparent Trust

Performance Development

Coaching Supervisor

Commitment

Figure 14. Talent Management Model Dimensions and Corresponding Talent Management and Employee Engagement Constructs

There were two areas where little progress or conflicting support occurred within this

triangulation process. One area with little support and conflicting views is rewards

and recognition. The link between pay and performance was a factor that was

evaluated in the quantitative data. It was significant in both the talent management

and employee engagement constructs. However, there was no improvement in this

area over the three year period as measured by the survey data (2006 = 3.01, 2007 =

3.05 and 2008 = 3.07 where p<.05). In the qualitative interviews, rewards and

recognition were mentioned and discussed but in the sense of non-monetary forms.

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People described internal satisfaction and getting recognized but not wanting more

money. In the intervention and, specifically, in the AI workshop, participants

expressed looking for more monetary rewards. This conflicts between the two

constructs. I believe that part of the reason is that during the interviews, individuals

were more reluctant to discuss money or salary in a one-on-one setting where in the

AI workshop; no one is individually identified when expressing concern about pay or

money. It also begs the question of whether compensation is really a long term

satisfier. As the managers in the interviews had more seniority, it may be that

individuals, who like their jobs, find challenging work and feel treated fairly, find

money will not buy happiness. It may buy short term satisfaction but not in the long

term.

Another area within the triangulation that showed no significant improvement was

opportunities for further development in one's job. The trend value for 2006 was 2.85

and in 2007 it was 3.08 where p<.05. This may have been expected during the first

year as little could occur with many of the interventions taking place in 2007.

However, no significant changes were recoded in 2008 as well with a trend value of

3.17. The interviews with employees revealed that they certainly did value

development and encouraged more. However, in the view of the employees, it had not

occurred into 2008. Interventions may have occurred such as providing training

classes to both employees and supervisors for working on development plans, but the

goals had not been accomplished. It may be that development requires a longer term

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to implement as managers still had until 2009 to initiate development dialogs with

their subordinates. Opportunities take time to develop.

Employees also have the responsibility for creating their own development. As was

noted by a manager, "The employee needs to have a desire to look for these

opportunities and, ask; not expect management to come to them." However, it can be

difficult if the tools to inform employees are not fully functional. A global vacancy

bank does not currently exist so open positions are not readily available on an

electronic vehicle. Communication of events or processes also has to occur so

employees can express an interest in participating. But the key factor is the

development of employees in their current jobs and looking for cross-training or

cross-functional opportunities to expand their knowledge and skills. This is an area

that will need to continue to be monitored.

Overall, the triangulation suggests that the talent management model is valid as a

means for exploring how talent management affects engagement. The scale and

reliability are valid in both the talent management and engagement constructs. The

survey data and interviews driven by the interventions confirm these constructs. What

the results also confirmed was the change within the CSU organization to one of

focusing more on employees and driving engagement toward the overall

organizational strategy and goals. This encompassed encouraging employees to learn

new skills and knowledge so that the organization can sustain it momentum forward

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towards being the number one chemicals/coatings company in the world. It is the

employees that can make it happen when they are informed of the strategic direction

and goals, working in a culture that embraces change and open communication and,

where the focus is on continuous improvement.

Summary

This chapter focused on presenting the quantitative and qualitative results along with

the intervention impact. The next chapter will discuss the key findings of this field

research from both the theoretical and practical views of a talent management strategy

as well as the limitations of the study.

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Chapter 5: Discussion

Introduction

Key findings presented thus far address what dimensions of talent management

emerged as key factors and show the correlation with employee engagement

dimensions. In this chapter, these findings will be related to the proposed theoretical

model and will discuss how talent management affects employee engagement through

both a scholar and practitioner lens. Extending from the results of the field study, two

additional key findings are included for discussion: a) talent management is a key

strategic driver of change and b) talent management strategy demonstrates that

Human Resources and Organization Development (HR/OD) is strategic.

Critical to understanding these outcomes is linking them to existing literature which

highlights the importance of an HR/OD strategy to the business as well as to the field

study. With continuous change occurring in almost every industry, effectively

managing the human resources of any business is essential. Finally, the limitations of

the study will be discussed.

Summary of Key Findings

The purpose of this study was to examine how a talent management strategy affects

employee engagement. This research exploration seeks to uncover key talent

management and employee engagement drivers and to identify the talent management

193

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attributes that affect employee engagement. This research explores the model

utilizing both a theoretical and practitioner lens.

Three key findings emerged from this field study:

• Talent management positively affects engagement

• Talent management and employee engagement combined drives environmental

and cultural organization change

• Talent management is strategic HR/OD

From a scholar-practitioner perspective, the findings are significant. Each of these

points is discussed in detail from both theoretical and practical perspectives and

reviewed in terms of the impact on the case in this field study.

Talent Management Positively Affects Employee Engagement

A talent management strategy does positively support employee engagement in this

study. As demonstrated with the quantitative and qualitative data, engagement

increases when a talent management strategy is implemented. This concept was

explored through the use of the talent management model as described in Chapter 2.

The key drivers of talent management strategy and employee engagement are

summarized and linked back to the theory. An overall definition is discussed for both

talent management and employee engagement. The affect of the talent management

model on the CSU study is discussed.

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Talent Management Defined and Linking the Theory

The critical drivers of a talent management strategy are three fold: a) continuous

work environment improvement; b) open climate; and c) communication. These three

components may seem simple in nature but they define talent management very

differently than much of the literature.

Talent management does not focus on placing people in the right job at the right time.

It also involves human resources and succession planning (Cheloha & Swain, 2005;

Jackson & Schuler, 1990; Kesler, 2002; Rothwell, 2000) as well as managing

performance (Buckingham & Vosburgh, 2001; McCauley & Wakefield, 2006). Talent

management includes incorporating the career anchors as described by Schein (1996).

Individuals will be at different points in their career and may need to evaluate the

appropriate resources for a particular point within their career. This means that the

culture of the organization has to be able to support a dynamic environment. What

these definitions lack is the strategic importance of working in concert in order to

contribute to the business strategy. Figure 15 presents the full dynamic picture

linking the theory with the talent management construct.

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Organizational Strategy

OD Values Foundation

Performance

Human Potential

Participation

Development

Figure 15. Talent Management Defined Through Practice and Theory

Ashton and Morton (2005) conclude that there is no single, consistent definition;

talent management must be fluid so that as the business drivers change so does the

talent management strategy. It is true that talent management must be fluid and align

with the business goals but the concept of fluidity is the very essence of organization

development (OD) constructs. "OD 's behavioral science foundation supports values

of human potential, participation, and development in addition to performance and

competitive edge" (Cummings & Worley, 2005, p. 3). Change will occur but the OD

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element focuses also on transferring knowledge or delegating decision-making so that

as change continues to occur, the individuals can continuously adjust accordingly.

Talent management must contain this OD element to become a strategic partner with

the business. The CSU case study provides the example of employee participation by

developing the strategy through the Appreciative Inquiry workshops so that they can

initiate the change themselves. Employees have the responsibility of participating in

their own development with the organization assisting in providing the appropriate

environment and training.

Talent management focuses on improving working conditions as well as the

communication that occurs between all levels of an organization. Supervisors and

employees of the CSU identified working conditions as a key element affecting their

ability to productively and creatively perform their jobs. Working conditions include

quality, flexibility and development. Individuals must be able to see the Big Picture

company vision in order to engage in the process of getting there. New ideas must be

accepted in an environment where mistakes are viewed as a learning experience and

not as a potential career-ending error. This is all encompassed in a facilitative

environment.

As proposed in this study, talent management is a holistic concept that incorporates

and integrates human resources and systems throughout the entire organization. It

does involve managing and developing individuals to the highest potential, but it

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aligns itself also with the business strategy in order to sustain and produce future

growth. For this to occur, there must be an organizational culture where individuals

are comfortable to challenge the status-quo and readily accept change.

Employee Engagement Defined and Linking the Theory

Talent management strategy succeeds when employees feel connected or engaged to

their job (Lockwood, 2006). Therefore, employee engagement is critical. The key

dimensions of employee engagement identified in this field study are: a) a coaching

supervisor, b) performance development, c) transparent trust, d) meaningful

accomplishments/challenging work and, e) commitment. These attributes combine

both the academic and practitioner definitions in a more holistic approach. Figure 16

shows how the engagement theory links directly to the findings.

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)rganizational Strategy

A )D Values f People e m P | 0 ^ / & express

Foundation Ithemselves physically] y ^- I amnftnnallu unri I n U I T i a n

Performance

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(Gallup Study: Engaged _

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Figure 16. Employee Engagement Defined through Practice and Theory

From an academic view, engagement is absorbing and committing one's self from a

psychological presence to individual work roles in terms of a cognitive, emotional

and behavioral stance (Kahn, 1990) as well as being motivated to perform (Salanova

et al., 2005). Engagement is not an attitude (Saks, 2006); it is the degree to which an

individual is attentive in his role. The practitioner view looks at job satisfaction and

contribution (Employee Engagement Report 2006, 2006) as well as an understanding

of the organization's goals and strategies (Debunking the Myths of Employee

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Engagement, 2006; Measuring True Employee Engagement, 2006). Combined, these

two approaches do define engagement as determined in this study.

The definition of engagement moves beyond individual attributes and emotions. The

support an employee receives from a supervisor is significant in terms of engagement.

If the supervisor provides a coaching environment where opinions and suggestions

are taken seriously and where teamwork is encouraged, employees will be more

likely to engage. It also involves regular feedback and discussions about development

opportunities. The organization must offer resources for further career development

and engagement, and will only be successful when there is trust between the

employee and management. Being treated fairly is essential for engagement and

having meaningful accomplishments or challenging work will keep employees

engaged.

Talent Management Model

The holistic definitions and dimensions of both talent management and engagement

support the talent management model (Figure 1, Chapter 2). The model can be refined

to reflect the findings of the study as shown in Figure 17. This model is significant

from a theoretical view as well as the practitioner's perspective.

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Figure 17. Strategic Talent Management Model

A holistic model is inherently complex but is promising from a conceptual construct.

Finding and developing the resources in an organization that will generate tacit

organizational knowledge is vital (Barney, 1991). These human resources must be

carefully chosen based upon well informed data (Boudreau & Ramstad, 1997). The

organization must also provide an appropriate culture and environment for learning in

order to sustain and move the firm forward (Lado & Wilson, 1994; Schein, 1990). It

is the human capital that will implement the HR/OD strategy that integrates with the

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overall organizational strategy (Worley et al., 1996). By managing human capital and

aligning it with employees' values and what the company can offer, the organization

can successfully accomplish its goals (Lawler & Worley, 2006).

Impact of Results on the Field Study and the Key Findings With the first world wide employee survey administered in 2006, it was an

opportunity for the US CSU in CoatCo to determine how it was viewed from an

employee perception and what the weaknesses were that needed to be addressed. The

CSU had been an "island in a sea" as perceived by the service unit. Service units

within the global organization were often viewed differently since they were not a

business unit manufacturing a product that contributed to the bottom line. However,

senior level management did recognize the expertise that existed within service units

that provided legal, tax and other vital services in order to operate the company

efficiently and cost effectively.

The 2006 world wide survey results exhibited significantly lower talent management

and engagement scores in all categories as compared to the business units in the US.

This was a bit of a surprise to management of the CSU, and it was acknowledged that

the service unit is often treated differently than the other respective business units in

terms of focus and development. It was acknowledged also that a service unit has

more difficulty aligning itself with the overall organizational strategy since it only

indirectly affects the business goals. Clearly, talent management and engagement had

to be addressed.

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The management team of the CSU developed and implemented action plans to

address managing performance, employee development, managing the alignment of

rewards and recognition programs and improving communications. The employees of

the CSU had never focused on themselves because they were first driven to provide

services for others. In order to change the paradigm of the CSU employees and their

perception of the service unit, the culture would have to change. A talent management

strategy could set the path toward changing the company culture and climate. This

was another key finding that emerged from the study.

Talent Management and Employee Engagement Combined Drive and Instigate Environmental and Cultural Organization Change

One of the most inherent outcomes of this study was the recognition that talent

management in concert with employee engagement is a key driver of organization

change. It is important to designate that organization change is a broad concept that

can focus on any kind of change including technical or managerial innovations.

Moreover, when it focuses on organization development change such as change

toward improved problem solving, quality of work life and/or effectiveness, it is a

significant contributor to cultural changes (Cummings & Worley, 2005).

Lockwood (2006) concurs that it is the work experience and the organizational

culture that determine employee engagement and retention. However, it is more than

the work experience and climate that encompasses talent management strategy; it

includes communication and recognition as well. It is not just about retaining

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employees but engaging and developing them. Talent management is broader than

just retention and reaches out to instigate change.

Talent management strategy is an integral component of driving continuous change

and transition within an organization (Grossman, 2007). In this study, the CSU at

CoatCo did create a change within the working environment. Under Lawler and

Worley's (2006) Built-to-Change model, continuous change occurs and organizations

must be able to adapt and react as necessary. CoatCo is an example of continuous

change. The organization had changed its portfolio with the divestment of its

pharmaceutical division, followed by a major acquisition within the coatings industry.

The company changed its product focus and its branding strategy. As changes such as

these occur within an organization so must the talent management strategy. It is

necessary to continuously determine what type of employee best exemplifies the

skills necessary to promote growth and what type of environment or culture best

supports the goals or vision. CoatCo utilized the talent management strategy to induce

change.

The CSU in CoatCo promoted employee participation in the development of its talent

management strategy. The Appreciative Inquiry (AI) workshop allowed all of the

employees within the CSU to come together to create an appropriate environment for

a culture where employee development would be enhanced and encouraged. Schein

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(1990) promotes a collaborative effort to produce a culture because if the ownership

of the employees is not at stake, there is no impetus to change.

During the AI workshops, employees came together for the first time to create a new

culture. The functional silos had to be knocked down. For the first time, employees of

different departments were sitting together at the same table. One participant

described the AI process as follows:

The most important thing to me was, you know, here's the outline of what we're doing and here's why and we were able to spend two days coming up with that stuff together and everybody got to participate. The groups were mixed, so I kind of got it right at the beginning because you made it clear of what was going on and I thought that was pretty exciting. I thought that was pretty neat. So I didn't have one aha moment; it was just at the beginning that, wow, this is really an opportunity for the employees, all the employees, all the people who feel neglected or all those people to maybe voice an opinion.

It was evident that some employees had felt they did not have a voice in setting the

direction of the service unit. At the AI workshop, they were listening and exchanging

ideas amongst themselves that created an atmosphere ripe for inducing change. They

wanted to provide input into the process. The results at the AI workshop created an

environment where flexibility would be allowed and actually encouraged. It was a

surprise to management that one of the highest concerns for employees was flexibility

in the work place. This concept was consistent with the survey data where the work

environment developed as a key construct within talent management and also from

employee interviews. One participant professed about what was important to her

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within a company culture and stated, "I think it would be a dynamic environment,

something that is flexible and changes and wants to improve." The organization did

implement flexible work schedules with support from managers. Individuals could

work from home or within alternate hours of the day and still maintain service and

productivity levels. This change came from the development of the talent

management strategy and would not have been implemented otherwise; all managers

heard the voice of the employees at the AI workshops.

Employees also indicated that they wanted more communication from senior

management. This was readily emphasized through the survey results. The CSU

implemented employee communication meetings three times a year along with other

opportunities for communication such as informational e-mail blasts and establishing

websites. The CSU organization made a conscious effort to provide open

communications and encourage supervisors to be more open, to a point where it

became a subconscious practice rather than a conscious effort. One participant

described the changed environment:

But I think that it helps to have management up here who also continues to trickle that [communication] down. I think it's very open. The website, the CSU intranet, there's information about who is doing what in what country, what's going on, keeping us in the loop. I think that's good.

Communication affects how employees perceive the changes within the organization.

The more open the communication, the more positive employees react to the

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occurring changes. They understand the end goal and why it is important for them to

participate towards achieving it.

To drive change, the skill set of the employees has to be dynamic and the

expectations for employees and managers would need to shift. Employees needed to

have the opportunity to learn new skills. In order for the CSU to support the CoatCo

world wide vision of a "talent factory", they needed to broaden and raise the level of

skills and knowledge. Barney (1986) subscribes that the resources must also be rare

and imitable. But what could be rare about service unit employee skills or

knowledge? This was the challenge for the CSU. If the standards for the organization

were going to be higher and/or sustainable, they had to be unique. If they were going

to be unique, they had to be developed by the participants themselves. Employees

would have to participate in their own development plans.

Employee development workshops and action plans were implemented for all

employees. Managers also attended workshops designed to assist them with holding

career discussions with their subordinates. After the assessment and workshops with

employees, the CSU was able to build and provide the resources and tools for

development. The CSU concentrated on providing a broader learning environment

rather than a hierarchical one. The accounting department was reorganized to focus

on individual's strengths rather than typical job positions. Employees were

encouraged to work with peers and colleagues to gain cross-training so that they

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could have experience in multiple areas and also provide coverage during peak or

vacation times. This talent strategy changed the way the CSU addressed employee

development and the process for creating a high-level skilled employee population.

The participation and new skills of the employees would drive the world wide

business strategy of building a talent factory with high performing employees. With

these changes and a new found emphasis on the employees of the service unit, the

survey results concluded that employees were becoming more engaged at their jobs.

The engagement and talent management scores significantly increased over the two-

year period while the other US business unit scores remained constant. The CSU had

implemented a talent management strategy that increased engagement to a much

more acceptable level where employees viewed their jobs and contributions as

valuable and significant to the company.

It is interesting to note that the engagement and talent management scores did not

significantly increase above and beyond the other US business unit scores. The CSU

may not have had enough time to fully implement the interventions for a higher

impact. However, the recovery of the CSU was clearly significant in terms of its

engagement and talent management strategy. The CSU was able to turn around its

culture that is how it was valued and perceived by the employees through the talent

management action plans which included creating a new working environment,

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improving communications and enhancing employee development programs. Future

survey analysis may be able to determine further impact.

Within this talent management strategy, it is also evident that how managers treat

employees is highly significant and, ultimately, affects organizational change. The

surveys concluded that if employees trust management or perceive support from

them, employees will be more likely to be engaged. However, the organization has to

provide the tools and resources for supervisors to become effective. The CSU began

to hold workshops and training for supervisors on skill sets such as coaching and

performance management. The vision of both the CSU and the world wide CoatCo

organization is to make supervisors accountable for employee development and

people management. This is a change from the past where supervisors were not given

any training and expected to work along side subordinates. The talent management

strategy supports and pushes this organization change by holding supervisors

accountable for guiding employees and improving skills and performance.

Organizations that focus on development of managers that align with company values

have the advantage of reaching the organizational goals quicker and more efficiently.

The CSU did take into account the workplace environment, communication and the

development of its employees and succeeded in contributing toward driving

organization developmental change. The resources, as well as the culture of an overall

organization strategy must be identified and implemented in a talent management

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action plan. Participation by the employees is important to build the buy-in and belief

in the ultimate vision. One participant put it succinctly when he stated, "Talent

management to me becomes like part of the corporate company culture and, that I

think, has to be imbedded in there." Thus, it becomes embedded into the overall

organizational strategy. This, too, was another key finding from the research.

A Holistic Talent Management Strategy Demonstrates that HR/OD is Strategic

Talent management is an essential root of any organizational strategy. The HR/OD

function does not create a strategy after the business goals are developed, but rather,

formulates strategy and gains commitment and support for the strategy in one

integrated process. Worley et al. (1996) emphasizes this point in the Integrated

Strategic Change (ISC) model where a firm must focus on its organizational

capabilities and human resources to create and implement strategies for long-term

competitiveness. HR/OD is not only the strategic partner but is actually considered an

essential strategy for organizational success. It is the talent management process that

is responsible for selecting, developing, rewarding and providing the appropriate

communications and climate for managers and employees. A business cannot survive

or sustain success without the appropriate talent management strategy.

The question of whether HR/OD should be at the strategy table is moot. An

organization cannot sustain a business unless its employees are all working together

towards the firm's goals. HR/OD should be so ingrained into the organizational

strategy, down to the line management function that the question of whether or not

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HR as a function can survive has to be asked. Talent management is not an HR

initiative but rather a strategy that enables an organization to achieve its vision.

Talent management is strategic. Employees must be viewed as the most valuable

asset because they are the key to organizational success.

The paradigm of HR/OD must change. HR/OD provides the assistance and tools to

create the talent management strategy but it is the organization and its managers that

must participate in the development and implementation of it. Managers and

supervisors play a key role in engaging employees by their coaching styles and

perceived trust. They must be able to provide meaningful and interesting work with

the ability to develop their employees. The heart of employee development is in the

hands of the supervisor and the management direction. For supervisors to have these

very important skills, they must also be developed and trained. HR/OD provides the

tools and guidance to ensure that the organization is moving in the right direction

knowing that the path can change. This is the strategic talent management role.

Organizations and managers alike must view employees as their most important

capital resource. Decisions regarding human resources cannot be made lightly and

without thought. They need to be able to evaluate and analyze how individuals can

support the organization's goals. In the CSU, management development goals and

workshops began to turn this paradigm around. An emphasis was culturally placed on

training and providing tools for managers to learn how to evaluate and manage

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human resources. Senior management supported the change by incorporating it into

overall business and individual objectives. HR/OD provided the structure and process

through talent management to do this just as finance provided the tools to conduct an

asset cost analysis, but it is the managers who link the talent decisions to the business

(Boudreau & Ramstad, 2005). Without the HR/OD strategic process and perspective,

the organizational goals cannot be met.

It is clear in the CSU study that employees wanted to participate in creating an

environment ripe for change and to develop that change process. It is no mistake that

in order to engage employees, they must be involved in the process. Worley et al.

(1996) concur that without employee participation, dismal failure will ensue. In order

to involve employees, the culture must allow an open, two-way communication. The

environment must be continuously working towards improvements with input from

employees. It is the HR/OD function that permeates the strategy within the

organization to develop and encourage an appropriate culture. The AI initiative at the

CSU was an intervention that enabled an open culture to develop among all levels of

employees for the first time. Employees participated and had input in the direction of

the service unit. Management listened and implemented their ideas such as flexible

work schedules and more communication vehicles. HR/OD is the driver for the

organization development change that influences business success. The CSU can now

align its goal of viewing human resources as the most important asset with the global

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organization. The talent management strategy enables HR/OD to strategically

integrate the overall organizational goals.

Limitations of the Study

There are acknowledged limitations within this research study. The research is an

exploratory field study of one service unit in an organization. The challenge with a

single study of one organization is providing data that is relevant to other situations.

A single case study is not generalizable, yet, as Eisenhardt (1989) states, " Perhaps, it

will help others become informed consumers of the results" (p. 549). The data and

results can stimulate other theory and research. Yin (2003) points out, it is the

multiple sources of evidence in a real-life case study that is representative or typical

that can then be learned and applied to a larger context. It does provide other

organizations a lens and tool to begin to test the basic constructs of talent

management and employee engagement in this model. The talent management

strategy explored in the study can now be investigated with other organizations and

can stimulate new theory and research.

Another limitation is the utilization of a service unit rather than a business unit. A

service unit may not have the same business strategies and bottom-line responsibility

that a business unit does. The goals are different in a service unit as functional

responsibilities evolve around budgets instead of profits. However, employees in both

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service units and business units typically look for development opportunities in the

same manner.

The number of participants in the service unit is also a limitation. With only 109

employees in the country service unit, the sample size was relatively small. However,

the employees are representative of the US business units. By comparing the CSU to

the other US business units that are similar in demographics and background, the size

limitation has been minimized.

Survey data typically show a point in time when the behaviors or opinions that

respondents reported may or may not reflect reality. Hofstede (1991) identifies that

surveys that ask individuals to choose or comment on what they value lead to a result

that does not necessarily correspond to the way people actually behave. With a

longitudinal survey, some of this impact may be smoothed due to asking the same

questions on a consistent basis.

Hopefully, through the use of the methodology in this study, these limitations have

been reduced.

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Summary

This chapter has provided a discussion of the key findings from the field research.

Talent management does positively affect engagement and talent management and

combined with employee engagement, drives cultural organization change. In

addition to these two findings, a significant discovery concluded that talent

management is strategic HR/OD. The limitations of the study were also discussed.

The final chapter of this research study will present a summary conclusion along with

implications for both the scholar and practitioner. It concludes with thoughts for

future research.

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Chapter 6: Conclusion, Implications and Future Research

Conclusion

Talent management strategy has a direct impact on employee engagement as seen

through the talent management model lens. Talent management is a holistic concept

that must be viewed from several angles in order to truly impact strategy. What is so

vital in this strategy is that it encompasses not only the direct employee experience

(i.e. recruitment, development, and retention) but also includes the culture and

climate of the organization. The communications from senior level management to

employees and supervisors within all levels of the organization plays a significant

role. With a dynamic environment, continuous improvement in organizations

becomes a challenge. However, if the talent within an organization can adapt and

have the freedom to actually create change, organizations can move forward with

innovation and creativity.

It is the human capital within an organization that can provide this competitive

advantage and opportunity. Organizations develop strategies to grow and expand. It is

the talent of the organization that brings this to fruition. The culture and climate must

be appropriate for the organizational goals to succeed. The HR/OD function has the

responsibility for providing the tools to management and employees of an

organization in order to create the appropriate climate and communicate the

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appropriate messages. The HR/OD function permeates the strategy within the

organization. Talent management is strategic HR/OD.

This is not recognized in many organizations today, as the holistic concept has not

been fully explored. Talent management strategy is embedded within organizational

strategy and until this concept is recognized, companies will continue to miss

opportunities for improved performance and success. The organizations that do

recognize human capital as their most valuable asset will have a competitive edge;

those organizations that view talent management as strategic HR/OD, integrated with

the overall organization strategy, will find higher levels of success and sustainability

for the future.

Implications

There are implications from this research for both the scholar and the practitioner.

From a theoretical stance, the holistic talent management model shows significance as

measured by the triangulation of the quantitative, qualitative and applied longitudinal

intervention results. As a result, it provides operational definitions for talent

management and employee engagement based upon theory that can be applied to

future studies. There is limited academic literature on talent management and this

study provides a foundational base for the academic study of talent management.

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Theory is often developed but not always explored. From a scholar's perspective, this

talent management model is built upon literature and previous theory that provides for

the inclusion of talent management and engagement strategies. However, it bridges

the gap from theory to practitioner by applying the field study. From a practitioner's

perspective, it is the affect on practice that weighs positively.

Talent management theory is a luxury that practitioners do not have time to study.

Practitioners need to be able to apply a strategy and see positive results quickly. The

talent management model demonstrates that it is significant through the field study

and can be positively applied in an organization. A holistic model may seem complex

to a practitioner but is worth the effort when employee engagement is increased and

produces results that apply to the overall organizational goals.

The talent management model applies to employees, human resource professionals, as

well as to leaders of an organization. From an employee perspective, a talent

management strategy that promotes an open climate, clear communication and an

environment of learning and improvement will engage employees on a higher level to

support the company's mission and goals. Employees will feel fulfilled and also

receive personal as well as career development that will enhance their skills and

knowledge. Commitment to the organization improves with engagement and the

employee will find more opportunity within the company.

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Human resource professionals will now have a model that has been explored with

"real world" data. Exploring what actually works through a field study approach

provides confirmation of theory and strategies that have successfully been applied. It

offers a framework to build company specific talent management strategy. It is not

necessary for HR professionals to try to guess what might work for an organization.

In addition, confirmation of theory provides HR professionals the opportunity to

successfully contribute to the overall company strategy.

Finally, the leadership of any organization will benefit from this holistic talent

management model as it explains the various dimensions that contribute to both the

success of a manager and organizational strategy. It identifies the attributes important

for an employee to be engaged. Through these constructs, leaders can identify ways

to build trust, promote positive supervisory skills, and provide challenging work that

includes development aspects for all employees. These are the areas where senior

level management needs to ensure they have programs in place to educate supervisors

and provides support toward the company's overall goals.

Practitioners can view this model through a new paradigm. Talent management is not

just about recruiting, retaining and deploying employees. It is a strategy to contribute

to the overall organizational goals with positive outcomes and utilizing the

company's most valuable resources. It may mean changes have to occur through this

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shift in paradigm, but with a talent management strategy, change can be accelerated

with positive outcomes.

Future Research

The approach with this field study is to bridge the theory and practical views together.

It provides the basis for further testing and exploration with other organizations as

well. This study does bring both the theoretical and practical implications together.

For scholars, it confirms that talent management does affect engagement and, for

practitioners, it provides a model with which to create a talent management strategy.

It needs to be applied further to similar organizations and explored in other types of

industries as well as in larger groups.

This research could also stimulate further theory. The model could be tested in a

business unit to review and test the impact on engagement and on organizational

effectiveness. Did the profits and productivity increase after implementation of a

talent management strategy?

Further research could explore how rewards and recognition relate to talent

management and engagement. Do monetary and/or non-monetary rewards enhance

engagement? Each dimension could be individually studied for its affect on talent

management and engagement.

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Contributions of this Study

If organizations truly believe that people are their most valuable asset, a talent

management strategy must be in place as part of the overall organization strategy to

initiate and sustain the success of a company. Employee engagement cannot occur

until the appropriate talent initiatives are identified and implemented. The talent

management constructs include a working environment that encourages continuous

improvement, an open climate and clear communication from management. If this

occurs, employees will engage where a job is challenging with meaningful

accomplishments, there is trust in management, the supervisor serves as a coach, and

employee development is promoted.

This study does not provide support for a direct cause-effect relationship but rather

urges a more critical review of research-based inquiries into talent management and

employee engagement. As the results of this study suggest, a talent management

strategy does positively affect employee engagement. Talent management can drive

change where needed in a continuously changing business environment in order to

achieve the business goals when it is embedded within the organizational strategy.

HR/OD is the strategic force to promote this strategy throughout the entire

organization.

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Appendix A: Timeline for CSU Study

First world­wide Employee Survey

Receive survey

Results back for

CSU

Employee Communication

Meeting Feedback results

Employee Focus Groups were held to gain additional

info on survey results

Mgmt Team meets to discuss next

steps to address issues in employee

survey

Mgmt Team meets to finalize

recommendations for President

May, 2006 September, 2006 October 9, 2006 Nov. 13-17, 2006 Nov. 15, 2006 Dec 11,2006

Mgmt team meets Communications with President Meeting with

to finalize Group - Recap Recommendations On employee

For employee survey survey and how recommendations concems/spot awards addressing issues

Mgmt team meets With President

to discuss

2007 Pulse

Survey conducted

CSU conducts follow-up survey

Appreciative Employee Inquiry

Communications workshops Meeting held offsite

Dec. 13, 2006 Feb. 19, 2007 March 19, 2007 May/June, 2007 Jun 27, 2007 Aug 7, 2007 Aug 27&28, 2007

Summary of results Mgr Meeting Mgr Meeting of Al workshops held to

held to sent out to all discuss EE Second discuss participants/ call for development First flexible flexible

outcomes of volunteers to work and schedule schedule Al workshops on flexiDle schedule performance committee committee

committee management meeting meeting

Employee Workshops

on Performance

Mgmt and Development

Third Fourth flexible Flexible

schedule Schedule meeting Meeting

Sept. 24, 2007 Sept. 26, 2007 Oct. 11, 2007 Nov. 11, 2007 Nov. 12, 2007 Nov. 12,19 Dec. 12, 2007 Dec. 18, 2007 & 30, 2007

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Acquisition of new

company

CFO and future

BOM visits CSU and holds EE meeting

US Mgmt Committee Mtg -Announcement of

MD Programs to be rolled out

President Is sent to

acquisition site

to oversee integration

Calibration Meeting Held for

Mgmt Team First time to

discuss Performance

Fifth flexible

Schedule meeting

Manager Mtg held to discuss 2008 P&D objectives. AIIEE&& Mgrs will have Development Dialog goal. Also discussed flexible work schedules. Await proposal from committee. Will initiate Rewards/recognition committee 3rd qtr

Jan 2, 2008 Jan 10, 2008 Jan 11, 2008 Jan 14, 2008 Feb 1,2008 Feb 26, 2008 March 11, 2008

Flexible Work Schedule

survey Sent to

employees For input

Development Dialog

CSU Communications To discuss

Sixth flexible Schedule meeting Development

2008 Pulse

Engagement

Workshop " M e e , i n g " su^ey7es~uits Wo^shops c o ^ X L

Flexible Schedule

Committee 2008 Presents CSU proposal Engagement

to Survey Mgmt Team Conducted

Mar 31, 2008

Flexible Schedule Proposal Sent to

President

April 8, 2008

Flexible Work

Schedule Proposal Approved

April 14,2008 April 17,

Rewards & Recognition

Initiative approved; Research

begins

2008 April 29 & 30 2008

Flexible Work

Schedule EE

Meetings

May 1,2008

Mgmt team Staff Meeting

May 6, 2008 May 27, 2008

Flexible Schedule CSU

Policy Communications Becomes Meeting effective

May 31, 2008 June 5, 2008 June 6, 2008 June 17, 24 & 25, 2008 June 30, 2008 July 7, 2008 Sept. 11,2008

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Appendix B: Survey Questionnaires

2006 Employee Survey Questionnaire Employee World-wide Survey Questions (Electronic)

• Choose only one answer for each question - the one that best fits your opinion.

• Do not spend a lot of time on each question. If you don't know how to respond to a question or do not have an opinion on a question, either mark "Don't Know/Not applicable" or skip that question.

• No one at the Company or any of its Business Units will see any individual completed survey. You responses will remain confidential.

Term/Definitions When answering the survey questions, please consider the following:

• "Company Name" refers to the company of which your Business Unit/Service Unit is a part.

• "My business unit/service unit" is the organization you and your department are part of.

• "My department" refers to the immediate department or team that you work with on a day-to-day basis.

• "My immediate supervisor" refers to the person to whom you report directly and who does your annual performance appraisal (P&D Dialog).

Survey Please rate the extent to which you agree or disagree with the following statement: Indicate ONE answer for each line across.

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Commitment to Values

1. My immediate supervisor is open and honest with me. 2. Within my department, we take action if the company's business Principles are challenged or violated. 3. My BU/Service Unit acts socially responsible in the community where I work. 4. My Business Unit/Service Unit acts socially responsible in the community where I work. 5. In my Business Unit/Service, we practice what we preach.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Customer Focus

6. We know who our most important customers are. 7. We work to understand our customer's needs. 8. We act on customer complaints. 9. We constantly look for better ways to serve our customers. 10. We objectively measure customer satisfaction.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Developing Others

11. My immediate supervisor delegates responsibility to me. 12. My immediate supervisor discusses my future career with me. 13.1 have opportunities for further development within my current job. 14.1 see clear opportunities for my next job. 15. My organization offers the support and resources I need for my development.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Innovation

16.1 am encouraged to be innovative on the job. 17. Within my department we search for new ways to work and do business. 18. Within my department new ideas are effectively implemented. 19. Within my department generating new ideas is recognized. 20. My Business Unit/Service Unit provides innovative products and services.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Managing Performance

21. My immediate supervisor sets ambitious objectives for my department. 22. My immediate supervisor clearly explains how my performance is evaluated. 23. My immediate supervisor gives me regular feedback on my performance. 24. My immediate supervisor is a good coach for me. 25. There is a clear link between my performance and pay.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Quality Commitment

26. Where I work, we take appropriate measures to protect the environment. 27. Within my department we ensure employee safety. 28. Within my department we continually work to improve working conditions. 29. Within my department we learn from our mistakes. 30. Within my department we recognize efforts to improve quality.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Results Orientation

31.1 understand the goals of my department. 32.1 understand how my personal objectives support my department's goals. 33. My department produces results that exceed expectations. 34. My department acts with great urgency where change is required. 35. Senior management gives employees a clear picture of the direction the company is headed.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Stimulating Open Climate

36. My immediate supervisor asks for opinions and suggestions from employees. 37. Within my department people can challenge the present way of doing things. 38. Within my department we value diversity in our employees. 39. We have adopted ideas from people outside my department. 40. My Business Unit/Service Unit keeps employees informed about matters affecting us.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Teamwork

41. My immediate supervisor encourages teamwork. 42.1 have shared my personal objectives with my colleagues. 43.1 understand the influence my job has on the work of others. 44. Within my department we work effectively as a team. 45. Within my department we look proactively for opportunities to cooperate with others.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Engagement

46.1 get a feeling of personal accomplishment from my work. 47.1 am satisfied overall with my Business Unit/Service Unit as a place to work. 48.1 would recommend my Business Unit/Service Unit to others as a good place to work. 49.1 will not leave the Company or the planned new company in the near future. 50.1 am proud to be a part of my Business Unit/Service Unit. 51.1 am proud to be part of the Company.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Other

52.1 am confident management will act on the results of this survey.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Background question • Supervisor (Yes/No) • Department • Country

Thank You Very Much For Your Participation!

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2007 Employee Pulse Survey Questionnaire Employee Pulse Survey Questions (Electronic)

• Choose only one answer for each question - the one that best fits your opinion.

• Do not spend a lot of time on each question. If you don't know how to respond to a question or do not have an opinion on a question, either mark "Don't Know/Not applicable" or skip that question.

• No one at the Company or any of its Business Units will see any individual completed survey. You responses will remain confidential.

Term/Definitions When answering the survey questions, please consider the following:

• "Company Name" refers to the company of which your Business Unit/Service Unit is a part.

• "My business unit/service unit" is the organization you and your department are part of.

• "My department" refers to the immediate department or team that you work with on a day-to-day basis.

• "My immediate supervisor" refers to the person to whom you report directly and who does your annual performance appraisal (P&D Dialog).

Survey Please rate the extent to which you agree or disagree with the following statement: Indicate ONE answer for each line across.

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Commitment to Values

232

1. My immediate supervisor is open and honest with me. 2. Within my department, we take action if the company's business Principles are challenged or violated. 3. My BU/Service Unit acts socially responsible in the community where I work. 4. My Business Unit/Service Unit acts socially responsible in the community where I work. 5. In my Business Unit/Service, we practice what we preach.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Customer Focus

6. We know who our most important customers are. 7. We work to understand our customer's needs. 8. We act on customer complaints. 9. We constantly look for better ways to serve our customers. 10. We objectively measure customer satisfaction.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Developing Others

11. My immediate supervisor delegates responsibility to me. 12. My immediate supervisor discusses my future career with me. 13.1 have opportunities for further development within my current job. 14.1 see clear opportunities for my next job. 15. My organization offers the support and resources I need for my development.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Innovation

16.1 am encouraged to be innovative on the job. 17. Within my department we search for new ways to work and do business. 18. Within my department new ideas are effectively implemented. 19. Within my department generating new ideas is recognized. 20. My Business Unit/Service Unit provides innovative products and services.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Managing Performance

21. My immediate supervisor sets ambitious objectives for my department. 22. My immediate supervisor clearly explains how my performance is evaluated. 23. My immediate supervisor gives me regular feedback on my performance. 24. My immediate supervisor is a good coach for me. 25. There is a clear link between my performance and pay.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Quality Commitment

26. Where I work, we take appropriate measures to protect the environment. 27. Within my department we ensure employee safety. 28. Within my department we continually work to improve working conditions. 29. Within my department we learn from our mistakes. 30. Within my department we recognize efforts to improve quality.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Results Orientation

31.1 understand the goals of my department. 32.1 understand how my personal objectives support my department's goals. 33. My department produces results that exceed expectations. 34. My department acts with great urgency where change is required. 35. Senior management gives employees a clear picture of the direction the company is headed.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Stimulating Open Climate

36. My immediate supervisor asks for opinions and suggestions from employees. 37. Within my department people can challenge the present way of doing things. 38. Within my department we value diversity in our employees. 39. We have adopted ideas from people outside my department. 40. My Business Unit/Service Unit keeps employees informed about matters affecting us.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Teamwork

41. My immediate supervisor encourages teamwork. 42.1 have shared my personal objectives with my colleagues. 43.1 understand the influence my job has on the work of others. 44. Within my department we work effectively as a team. 45. Within my department we look proactively for opportunities to cooperate with others.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Engagement

46.1 get a feeling of personal accomplishment from my work. 47.1 am satisfied overall with my Business Unit/Service Unit as a place to work. 48.1 would recommend my Business Unit/Service Unit to others as a good place to work. 49.1 will not leave the Company or the planned new company in the near future. 50.1 am proud to be a part of my Business Unit/Service Unit. 51.1 am proud to be part of the Company.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Health & Safety Environment

52. My immediate supervisor frequently communicates HSE issues with my department. 53. In my department we receive adequate training and instructions on HSE matters. 54.1 can influence the HSE performance in my workplace. 55. In my department, we have a strong commitment to improve HSE performance. 56. In my department, good HSE performance is recognized.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Other

57.1 am confident management will act on the results of this survey.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

58.1 have attended a feedback meeting with our department on the 2006 Employee Survey. 59. We are following an action plan from the 2006 Employee Survey.

Yes No

Background questions • Supervisor (Yes/No) • Department • Country • Female/Male • Length of time employed at CoatCo

Thank You Very Much For Your Participation!

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2008 Employee Pulse Survey Questionnaire Employee Pulse Survey Questions (Electronic)

• Choose only one answer for each question - the one that best fits your opinion.

• Do not spend a lot of time on each question. If you don't know how to respond to a question or do not have an opinion on a question, either mark "Don't Know/Not applicable" or skip that question.

• No one at the Company or any of its Business Units will see any individual completed survey. You responses will remain confidential.

Pulse Survey Glossary P&D Dialog - Performance & Development Dialog (Performance Review) Company X - Name of company conducting the survey BU - Business unit Business Principles - Code of Conduct HSE - Health, Safety and the Environment (i.e., SHE) Q60 and 61 - Employees of the company just acquired need not complete Questions 60 and 61 since these relate back to the previous CoatCo global surveys

Term/Definitions When answering the survey questions, please consider the following:

• "Company Name" refers to the company of which your Business Unit/Service Unit is a part.

• "My business unit/service unit" is the organization you and your department are part of.

• "My department" refers to the immediate department or team that you work with on a day-to-day basis.

• "My immediate supervisor" refers to the person to whom you report directly and who does your annual performance appraisal (P&D Dialog).

Survey Please rate the extent to which you agree or disagree with the following statement: Indicate ONE answer for each line across.

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Commitment to Values

239

1. My immediate supervisor is open and honest with me. 2. Within my department, we take action if the company's business Principles are challenged or violated. 3. My BU/Service Unit acts socially responsible in the community where I work. 4. My Business Unit/Service Unit acts socially responsible in the community where I work. 5. In my Business Unit/Service, we practice what we preach.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Customer Focus

6. We know who our most important customers are. 7. We work to understand our customer's needs. 8. We act on customer complaints. 9. We constantly look for better ways to serve our customers. 10. We objectively measure customer satisfaction.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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240

Developing Others

11. My immediate supervisor delegates responsibility to me. 12. My immediate supervisor discusses my future career with me. 13.1 have opportunities for further development within my current job. 14.1 see clear opportunities for my next job. 15. My organization offers the support and resources I need for my development.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Innovation

16.1 am encouraged to be innovative on the job. 17. Within my department we search for new ways to work and do business. 18. Within my department new ideas are effectively implemented. 19. Within my department generating new ideas is recognized. 20. My Business Unit/Service Unit provides innovative products and services.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Managing Performance

21. My immediate supervisor sets ambitious objectives for my department. 22. My immediate supervisor clearly explains how my performance is evaluated. 23. My immediate supervisor gives me regular feedback on my performance. 24. My immediate supervisor is a good coach for me. 25. There is a clear link between my performance and pay.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Quality Commitment

26. Where I work, we take appropriate measures to protect the environment. 27. Within my department we ensure employee safety. 28. Within my department we continually work to improve working conditions. 29. Within my department we learn from our mistakes. 30. Within my department we recognize efforts to improve quality.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Results Orientation

31.1 understand the goals of my department. 32.1 understand how my personal objectives support my department's goals. 33. My department produces results that exceed expectations. 34. My department acts with great urgency where change is required. 35. Senior management gives employees a clear picture of the direction the company is headed.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Stimulating Open Climate

36. My immediate supervisor asks for opinions and suggestions from employees. 37. Within my department people can challenge the present way of doing things. 38. Within my department we value diversity in our employees. 39. We have adopted ideas from people outside my department. 40. My Business Unit/Service Unit keeps employees informed about matters affecting us.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Teamwork

41. My immediate supervisor encourages teamwork. 42.1 have shared my personal objectives with my colleagues. 43.1 understand the influence my job has on the work of others. 44. Within my department we work effectively as a team. 45. Within my department we look proactively for opportunities to cooperate with others.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Engagement

46.1 get a feeling of personal accomplishment from my work. 47.1 am satisfied overall with my Business Unit/Service Unit as a place to work. 48.1 would recommend my Business Unit/Service Unit to others as a good place to work. 49.1 will not leave the Company or the planned new company in the near future. 50.1 am proud to be a part of my Business Unit/Service Unit. 51.1 am proud to be part of the Company.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Health & Safety Environment

52. My immediate supervisor frequently communicates HSE issues with my department. 53. In my department we receive adequate training and instructions on HSE matters. 54.1 can influence the HSE performance in my workplace. 55. In my department, we have a strong commitment to improve HSE performance. 56. In my department, good HSE performance is recognized.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Other

57. The Code of Conduct has been adequately communicated to me by CoatCo. 58.1 am familiar with the complaints procedure within CoatCo to report violations of the Code of Conduct. 59.1 am confident management will act on the results of this survey.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Q60 and 61 - Employees of the acquisition need not complete Questions 60 and 61 since these relate back to previous CoatCo global surveys

60.1 have attended a feedback meeting with our department on the 2006 Employee Survey. 61. We are following an action plan from the 2006 Employee Survey.

Yes No

Background questions • Supervisor (Yes/No) • Department • Country • Female/Male • Length of time employed at CoatCo

Thank You Very Much For Your Participation!

2007 CSU Employee Pulse Survey Questionnaire

Employee Service Unit (ANI) 2007 Survey Questions

• Choose only one answer for each question - the one that best fits your opinion.

• Do not spend a lot of time on each question. No one at the Company will see any individual completed survey. You responses will remain confidential.

Term/Definitions When answering the survey questions, please consider the following:

• "Company Name" refers to the company of which your Service Unit is a part. • "My service unit" is the organization you and your department are part of. • "My department" refers to the immediate department or team that you work

with on a day-to-day basis. • "My immediate supervisor" refers to the person to whom you report directly

and who does your annual performance appraisal (P&D Dialog).

Survey Please rate the extent to which you agree or disagree with the following statement: Indicate ONE answer for each line across.

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Company Direction

1.1 am proud to be a part of the Company. 2. Senior management of the world­wide organization provides a clear picture of the direction the company is headed. 3. Senior management of my Service Unit provides a clear picture of the direction the company is headed.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Performance

4.1 understand how my personal objectives support my department's goals. 5. Within my department, generating new ideas is encouraged and recognized. 6. My immediate supervisor gives me regular feedback on my performance. 7. My immediate supervisor explains how my performance is evaluated. 8. Appropriate rewards and recognition are provided for my performance. 9. There is a clear link between my performance and pay.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Development

10. My immediate supervisor discusses future opportunities with me. 11. My immediate supervisor delegates responsibility to me. 12.1 have opportunities for further development within my job. 13.1 see opportunities for my next job. 14. My organization offers the support and resources I need for development.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Communications

15. Management of the world­wide organization keeps employees informed about matters affecting us. 16. Management of the Service Unit keeps employees informed about matters affecting us. 17. My manager keeps me informed about matters affecting me.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Engagement

18.1 am satisfied overall with my Service Unit as a good place to work. 19.1 am proud to be a part of this Service Unit

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Other

20. Management acted upon the results of the last employee survey. 21.1 am confident that management will act on the results of this survey.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

We appreciate your time with completing this survey. Thank you!

2008 CSU Employee Pulse Survey Questionnaire Employee Pulse Survey Questions (Electronic)

Introduction We would like to encourage you to complete this employee survey for CSU. This is your opportunity to share your thoughts about management and the company. The survey is a follow-up to the last employee survey and will inform us as to the status and progress made since then.

This survey should not take you ore than 15 minutes to complete. Please keep in mind that all responses are confidential. Please only answer once for each question.

We appreciate your time and input as we seek to continue to further improve CSU.

About yourself: The following questions ask about your gender, length of service, etc. This will allow us to determine if different groups are answering questions in different ways.

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If you feel uncomfortable answering any of these questions, simply leave them blank and go to the next section.

1. Gender i. Male

ii. Female 2. How long have you been employed by CSU?

i. <1 year ii. 1 -5 years

iii. 6 - 1 0 years iv. 11-20 years v. 20+ years

3. Are you a supervisor? i. Yes

ii. No

For the following sections, please indicate the extent to which you agree or disagree with the following statements:

Commitment to Values

1. My immediate supervisor is open and honest with me. 2. Within my department, we take action if the company's business Principles are challenged or violated. 3. My BU/Service Unit acts socially responsible in the community where I work. 4. My Business Unit/Service Unit acts socially responsible in the community where I work. 5. In my Business Unit/Service, we practice what we preach.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Customer Focus

6. We know who our most important customers are. 7. We work to understand our customer's needs. 8. We act on customer complaints. 9. We constantly look for better ways to serve our customers. 10. We objectively measure customer satisfaction.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Developing Others

11. My immediate supervisor delegates responsibility to me. 12. My immediate supervisor discusses my future career with me. 13.1 have opportunities for further development within my current job. 14.1 see clear opportunities for my next job. 15. My organization offers the support and resources I need for my development.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Innovation

16.1 am encouraged to be innovative on the job. 17. Within my department we search for new ways to work and do business. 18. Within my department new ideas are effectively implemented. 19. Within my department generating new ideas is recognized. 20. My Business Unit/Service Unit provides innovative products and services.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Managing Performance

21. My immediate supervisor sets ambitious objectives for my department. 22. My immediate supervisor clearly explains how my performance is evaluated. 23. My immediate supervisor gives me regular feedback on my performance. 24. My immediate supervisor is a good coach for me. 25. There is a clear link between my performance and pay.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Quality Commitment

26. Where I work, we take appropriate measures to protect the environment. 27. Within my department we ensure employee safety. 28. Within my department we continually work to improve working conditions. 29. Within my department we learn from our mistakes. 30. Within my department we recognize efforts to improve quality.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Results Orientation

31.1 understand the goals of my department. 32.1 understand how my personal objectives support my department's goals. 33. My department produces results that exceed expectations. 34. My department acts with great urgency where change is required. 35. Senior management gives employees a clear picture of the direction the company is headed.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Stimulating Open Climate

36. My immediate supervisor asks for opinions and suggestions from employees. 37. Within my department people can challenge the present way of doing things. 38. Within my department we value diversity in our employees. 39. We have adopted ideas from people outside my department. 40. My Business Unit/Service Unit keeps employees informed about matters affecting us.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Teamwork

41. My immediate supervisor encourages teamwork. 42.1 have shared my personal objectives with my colleagues. 43.1 understand the influence my job has on the work of others. 44. Within my department we work effectively as a team. 45. Within my department we look proactively for opportunities to cooperate with others.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

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Engagement

46.1 get a feeling of personal accomplishment from my work. 47.1 am satisfied overall with my Business Unit/Service Unit as a place to work. 48.1 would recommend my Business Unit/Service Unit to others as a good place to work. 49.1 will not leave the Company or the planned new company in the near future. 50.1 am proud to be a part of my Business Unit/Service Unit. 51.1 am proud to be part of the Company.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

Other

52.1 am confident management will act on the results of this survey.

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don't Know/Not Applicable

53.1 have attended a feedback meeting with my department on the previous Employee Survey. 61. My department is following an action plan from the previous Employee Survey.

Yes No

Thank You For Your Participation!

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Appendix C: Interview Questionnaires

Interview Guide I

Research Question

How does a talent management strategy affect employee engagement?

Interview Guide

I. Introduction:

• I am working on a research project for school that encompasses looking at what the company is doing to enhance the skills of employees and to encourage them to want to work hard at their job. As you are aware, our organization has emphasized that employee development is an essential component of our company's focus so I would like to get your views on how you feel the company is assisting you to develop your skills and career path. I am trying to understand how the company can best help you the employee/manager learn new skills to want to continue to work here.

• I am looking at these perspectives from different levels within the company and I know that you have participated in past workshops and contributed valuable information. So, I am pleased that you are willing to speak to me today.

• Your answers will remain anonymous and I will not identify them to anyone within our organization. I intend on using the information you provide me to guide my studies in terms of learning how organizations can use employee development to gain better employee commitment and engagement.

• There is no right or wrong answer. • After our interview or at any time, you may review the notes that I am

taking to ensure accuracy and clarity.

II. What is employee development to you?

255

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o Can you describe a time that you feel best explains how and when you experienced employee development at this company? (If none, at another place of employment?)

o Can you describe the attributes? o What type of employee development have you had at here? At

other places?

III. What makes you want to work at our company?

o Can you describe what you like best here? o What do you dislike?

IV. After attending the recent P&D Dialog workshop, could you describe what you learned as you went through the session?

o What was helpful about the session? o What was not so useful?

V. Have you seen any changes in terms of how this company treats employees over the past year or so?

o If yes, can you tell me about the changes you have seen? Provide some examples?

o If not, what has remained the same? Provide some examples. o If you could find the "perfect" company to work for, what

would it look like? o What would attract you? o What would keep you there?

VI. Conclusion: You've been great responding to my inquiries today. I really appreciate the time you spent speaking with me. As I go through my notes, would you mind if I came back to you if I need to clarify or follow-up on a response? Thanks again.

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Interview Guide II

Research Question

How does a talent management strategy affect employee engagement?

Interview Guide

I. Introduction:

• I am working on a research project for school that encompasses looking at what the company is doing to enhance the skills of employees and to encourage them to want to work hard at their job. As you are aware, our organization has emphasized that employee development is an essential component of our company's focus so I would like to get your views on how you feel the company is assisting you to develop your skills and career path. I am trying to understand how the company can best help you the employee/manager learn new skills to want to continue to work here.

• I am looking at these perspectives from different levels within the company and I know that you have participated in past workshops and contributed valuable information. So, I am pleased that you are willing to speak to me today.

• Your answers will remain anonymous and I will not identify them to anyone within our organization. I intend on using the information you provide me to guide my studies in terms of learning how organizations can use employee development to gain better employee commitment and engagement.

• There is no right or wrong answer. • After our interview or at any time, you may review the notes that I am

taking to ensure accuracy and clarity.

VII. You and the Company What makes you want to work at here? Can you describe an experience or a situation that you have been involved in that exemplifies what you like best about it? Tell me about a time when you felt so good about working at the company and you thought to yourself, this is a great place to work.

a. Who was involved and what did they do to make it so good?

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b. Can you describe to me a time when you were not so happy here? How did you feel?

VIII. You and Employee Development Can you tell me about a time that you feel best explains when you experienced a great employee development scenario at the company? When you had that "aha" moment of this is what it's all about? (If none, think of another place of employment).

a. What was it that made it so good? b. Who else was involved and what was it about them that made this a

great experience? How did he/she contribute to this development? i. Describe what a caring manager or mentor is.

c. How did you feel? d. Think about other types of employee development you have

experienced here or someone else. Can you tell me about what you experienced?

IX. You and Your Own Development As you think about your own development at the company (or elsewhere) describe for me what you consider to be "interesting work."

a. What does it look it? b. How does it make you feel? c. What is "enthusiastic work?" How does it differ from interesting

work?

X. Overall, if you were to think about the various dimensions of talent management, what would you describe as key factors to be considered? Can you describe them to me?

a. Are some more important than others or weigh heavier in terms of what matters most to you as an employee?

i. Influencers ii. Interesting Work

iii. Climate

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XL Conclusion: You've been great responding to my inquiries today. I really appreciate the time you spent speaking with me. As I go through my notes, would you mind if I came back to you if I need to clarify or follow-up on a response? Thanks again.

Interview Guide III

Research Question

How does a talent management strategy affect employee engagement?

Interview Guide

I. Introduction:

• I am working on a research project for school that encompasses looking at what the company is doing to enhance the skills of employees and to encourage them to want to work hard at their job. As you are aware, our organization has emphasized that employee development is an essential component of our company's focus so I would like to get your views on how you feel the company is assisting you to develop your skills and career path. I am trying to understand how the company can best help you the employee/manager learn new skills to want to continue to work here.

• I am looking at these perspectives from different levels within the company and I know that you have participated in past workshops and contributed valuable information. So, I am pleased that you are willing to speak to me today.

• Your answers will remain anonymous and I will not identify them to anyone within our organization. I intend on using the information you provide me to guide my studies in terms of learning how organizations can use employee development to gain better employee commitment and engagement.

• There is no right or wrong answer. • After our interview or at any time, you may review the notes that I am

taking to ensure accuracy and clarity.

II. You and the Company What makes you want to work at here? Can you describe an experience or a situation that you have been involved in that exemplifies what you like

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best about it? Tell me about a time when you felt so good about working at the company and you thought to yourself, this is a great place to work.

a. Who was involved and what did they do to make it so good? b. Can you describe to me a time when you were not so happy here? How

did you feel?

You and Employee Development Can you tell me about a time that you feel best explains when you experienced a great employee development scenario at the company? When you had that "aha" moment of this is what it's all about? (If none, think of another place of employment).

a. What was it that made it so good? b. Who else was involved and what was it about them that made this a

great experience? How did he/she contribute to this development? i. Describe what a caring manager or mentor is.

c. How did you feel? d. Think about other types of employee development you have

experienced here or someone else. Can you tell me about what you experienced?

You and Your Own Development As you think about your own development at the company (or elsewhere) describe for me what you consider to be "interesting work."

a. What does it look it? b. How does it make you feel? c. What is "enthusiastic work?" How does it differ from interesting

work?

Describe what think are the key factors that make you feel committed to your job?

a. Now think about our service unit as an organization. What are the key factors that make you feel committed to the CSU? (Are they different than to your job?)

b. Are some factors more important than others or weigh heavier in terms of what matters most to you as an employee?

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i. Influencers ii. Interesting Work

iii. Climate

XIV. You and the Company Over the Past Year Think back a year or so about the company and the global company as whole and how it views and treats its employees. Can you describe to me a time when you experienced a positive change and thought this is really the direction that we should be going?

a. Describe to me what changed. b. In a perfect world, describe for me the "perfect" company that you

would want to work for. i. What attracts you to it?

ii. What would keep you there?

XV. Conclusion: You've been great responding to my inquiries today. I really appreciate the time you spent speaking with me. As I go through my notes, would you mind if I came back to you if I need to clarify or follow-up on a response? Thanks again.

Page 274: Leveraging Employee Engagement through a Talent Management

Appendix D: Supplemental Statistical Data

Multivariate Analysis of Variance (MANOVA) for Engagement Construct Supervisor = 2

Multivariate Tests0

Effect

Intercept

Year

Sample

Year*

Sample

Pillai's Trace

Wilks' Lambda

Hotelling's Trace

Roy's Largest Root

Pillai's Trace

Wilks' Lambda

Hotelling's Trace

Roy's Largest Root

Pillai's Trace

Wilks' Lambda

Hotelling's Trace

Roy's Largest Root

Pillai's Trace

Wilks' Lambda

Hotelling's Trace

Roy's Largest Root

a. Exact statistic

b. Computed using alpha = .05

Value

.762

.238

3.200

3.200

.078

.922

.085

.085

.075

.925

.081

.081

.080

.920

.086

.086

c. Design: Intercept + Year + Sample + Year'

F

1.307E33

1.307E33

1.307E33

1.307E33

34.652a

34.652a

34.652a

34.652a

33.061a

33.061a

33.061a

33.061a

35.302a

35.302a

35.302a

35.3023

* Sample

Hypothesis

df

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

Error df

3.266E3

3.266E3

3.266E3

3.266E3

3.266E3

3.266E3

3.266E3

3.266E3

3.266E3

3.266E3

3.266E3

3.266E3

3.266E3

3.266E3

3.266E3

3.266E3

Sig.

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

Partial

Eta

Squared

.762

.762

.762

.762

.078

.078

.078

.078

.075

.075

.075

.075

.080

.080

.080

.080

Noncent.

Paramete Observ

r Power*3

10452.337

10452.337

10452.337

10452.337

277.215

277.215

277.215

277.215

264.486

264.486

264.486

264.486

282.415

282.415

282.415

282.415

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

262

Page 275: Leveraging Employee Engagement through a Talent Management

263

Tests of Between-Subjects Effects

Dependent

Source Variable

Type III

Sum of Mean

Squares df Square

Partial

Eta Noncent. Observed

Sig. Squared Parameter Power"

Corrected Overall

Model Engagement

Mean Short

Trust &

Transparency

Coaching

Career

Development

Challenging

and Meaningful

Improve

Working

Conditions

Open Climate

Communication

165.2353 3 55.078 72.025 .000 .062 216.075 1.000

179.338c 3 59.779 71.884 .000 .062 215.653 1.000

122.952° 3 40.984 45.928 .000 .040 137.784 1.000

37.019e 3 12.340 13.442 .000 .012 40.327 1.000

183.097' 3 61.032 123.245 .000 .101 369.734 1.000

171.5399 3 57.180 92.093 .000 .078 276.280 1.000

89.998h 3 29.999 42.486 .000 .037 127.458 1.000

43.2951 3 14.432 17.830 .000 .016 53.489 1.000

Intercept Overall

Engagement

Mean Short

Trust &

Transparency

Coaching

Career

Development

Challenging

and Meaningful

Improve

Working

Conditions

Open Climate

4436.855 1 4436.855 5.802E3 .000 .639 5801.989 1.000

4080.814 1 4080.814 4.907E3 .000 .600 4907.157 1.000

4104.545 1 4104.545 4.600E3 .000 .584 4599.689 1.000

3510.862 1 3510.862 3.825E3 .000 .539 3824.603 1.000

4416.264 1 4416.264 8.918E3 .000 .732 8917.895 1.000

4399.267 1 4399.267 7.085E3 .000 .684 7085.435 1.000

4016.570 1 4016.570 5.688E3 .000 .635 5688.388 1.000

Page 276: Leveraging Employee Engagement through a Talent Management

264

Communication

Year Overall

Engagement

Mean Short

Trust &

Transparency

Coaching

Career

Development

Challenging

and Meaningful

Improve

Working

Conditions

Open Climate

Communication

Sample Overall

Engagement

Mean Short

Trust &

Transparency

Coaching

Career

Development

Challenging

and Meaningful

Improve

Working

Conditions

Open Climate

Communication

3670.365

88.797

71.585

80.005

13.390

91.890

81.961

46.885

18.297

57.996

21.804

34.749

5.138

77.446

76.290

27.038

2.562

1 3670.365

1 88.797

1 71.585

1 80.005

1 13.390

1 91.890

1 81.961

1 46.885

1 18.297

1 57.996

1 21.804

1 34.749

1 5.138

1 77.446

1 76.290

1 27.038

1 2.562

4.535E3

116.118

86.080

89.656

14.587

185.556

132.006

66.399

22.605

75.840

26.219

38.941

5.597

156.389

122.872

38.292

3.165

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.018

.000

.000

.000

.075

.581

.034

.026

.027

.004

.054

.039

.020

.007

.023

.008

.012

.002

.046

.036

.012

.001

4534.627

116.118

86.080

89.656

14.587

185.556

132.006

66.399

22.605

75.840

26.219

38.941

5.597

156.389

122.872

38.292

3.165

1.000

1.000

1.000

1.000

.968

1.000

1.000

1.000

.997

1.000

.999

1.000

.657

1.000

1.000

1.000

.428

Year * Overall

Sample Engagement 57.290 1 57.290 74.917 .000 .022 74.917 1.000

Mean Short

Page 277: Leveraging Employee Engagement through a Talent Management

265

Trust &

Transparency

Coaching

Career

Development

Challenging

and Meaningful

Improve

Working

Conditions

Open Climate

Communication

Error Overall

Engagement

Mean Short

Trust &

Transparency

Coaching

Career

Development

Challenging

and Meaningful

Improve

Working

Conditions

Open Climate

Communication

Total Overall

Engagement

Mean Short

Trust &

Transparency

21.481

60.976

3.605

88.034

58.410

25.911

5.409

2502.905

2721.841

2920.670

3004.508

1620.835

2032.169

2311.065

2649.194

48784.083

41779.389

1

1

1

1

1

1

1

3273

3273

3273

3273

3273

3273

3273

3273

3277

3277

21.481

60.976

3.605

88.034

58.410

25.911

5.409

.765

.832

.892

.918

.495

.621

.706

.809

25.831

68.332

3.927

177.771

94.075

36.696

6.683

.000

.000

.048

.000

.000

.000

.010

.008

.020

.001

.052

.028

.011

.002

25.831

68.332

3.927

177.771

94.075

36.696

6.683

.999

1.000

.508

1.000

1.000

1.000

.734

Coaching 44290.438 3277

Page 278: Leveraging Employee Engagement through a Talent Management

266

34934.979 3277

49670.556 3277

Career

Development

Challenging

and Meaningful

Improve

Working 49438.000 3277

Conditions

Open Climate 41890.167 3277

Communication 35274.389 3277

Corrected Overall

Total Engagement 2668.140 3276

Mean Short

Trust &

Transparency

Coaching 3043.622 3276

Career

Development

Challenging

and Meaningful

Improve

Working 2203.708 3276

Conditions

Open Climate 2401.063 3276

Communication 2692.488 3276

2901.179 3276

3041.528 3276

1803.932 3276

a. R Squared = .062 (Adjusted R

Squared = .061)

b. Computed using alpha = .05

c. R Squared = .062 (Adjusted R Squared =

.061)

d. R Squared = .040 (Adjusted R Squared •

.040)

e. R Squared = .012 (Adjusted R Squared :

.011)

Page 279: Leveraging Employee Engagement through a Talent Management

267

f. R Squared = .101 (Adjusted R Squared =

.101)

g. R Squared = .078 (Adjusted R Squared =

.077)

h. R Squared = .037 (Adjusted R Squared =

.037)

i. R Squared = .016 (Adjusted R Squared =

.015)

Descriptive Statistics

Year Sample Mean Std. Deviation N

Overall Engagement Mean Short 2006

2008

Total

Trust & Transparency 2006

2008

Total

Coaching 2006

2008

Total

Career Development 2006

2008

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

U S C S U

3.7062

2.1509

3.6662

3.8961

3.8913

3.8959

3.7760

2.9596

3.7513

.93628

.69665

.96277

.76554

.85506

.76873

.88199

1.16377

.90247

3.3146

2.3616

3.2901

3.7064

3.7029

3.7063

3.4587

2.9848

3.4444

.98840

.77882

.99492

.77102

.87271

.77471

.93367

1.06002

.94106

3.5246

2.1211

3.4885

3.6409

3.8370

3.6484

3.5674

2.9184

3.5478

.99689

.76141

1.01598

.86069

.81346

.85944

.95058

1.16247

.96388

3.0603

2.6336

3.0493

3.2406

3.2029

.99642

.86823

.99544

.89748

.82844

2009

53

2062

1169

46

1215

3178

99

3277

2009

53

2062

1169

46

1215

3178

99

3277

2009

53

2062

1169

46

1215

3178

99

3277

2009

53

2062

1169

46

Page 280: Leveraging Employee Engagement through a Talent Management

268

Total

Challenging and Meaningful 2006

2008

Total

Improve Working Conditions 2006

2008

Total

Open Climate 2006

2008

Total

Communication 2006

2008

Total

Total

US BUs

US CSU

Total

US BUs

US CSU

Total

US BUs

US CSU

Total

US BUs

US CSU

Total

US Bus

US CSU

Total

US Bus

US CSU

Total

US BUs

US CSU

Total

US BUs

US CSU

Total

US BUs

US CSU

Total

US BUs

US CSU

Total

US BUs

US CSU

Total

US Bus

US CSU

Total

US BUs

US CSU

Total

3.2392

3.1266

2.8981

3.1197

.89467

.96499

.89250

.96355

3.8435

1.9811

3.7956

3.8643

3.9239

3.8665

3.8511

2.8838

3.8219

.72656

.61816

.78157

.66793

.66454

.66762

.70553

1.16361

.74206

3.7717

2.0943

3.7286

3.9162

3.8043

3.9119

3.8248

2.8889

3.7966

.83797

.61802

.87422

.70208

.76844

.70469

.79366

1.09937

.82017

3.4219

2.3679

3.3948

3.6018

3.5906

3.6014

3.4880

2.9360

3.4714

.90450

.70813

.91519

.72284

.84233

.72733

.84659

.98363

.85611

3.0845

2.6824

3.0742

3.2844

3.3587

3.2872

3.1581

2.9966

3.1532

.94653

.90598

.94744

.81694

.78879

.81570

.90604

.91442

.90658

1215

3178

99

3277

2009

53

2062

1169

46

1215

3178

99

3277

2009

53

2062

1169

46

1215

3178

99

3277

2009

53

2062

1169

46

1215

3178

99

3277

2009

53

2062

1169

46

1215

3178

99

3277

Page 281: Leveraging Employee Engagement through a Talent Management

269

Multivariate Analysis of Variance (MANOVA) for Talent Management Construct

Supervisor = 1

Multivariate Tests

Effect

Intercept

Year

Sample

Year*

Sample

Pillai's Trace

Wilks' Lambda

Hotelling's Trace

Roy's Largest Root

Pillai's Trace

Wilks' Lambda

Hotelling's Trace

Roy's Largest Root

Pillai's Trace

Wilks' Lambda

Hotelling's Trace

Roy's Largest Root

Pillai's Trace

Wilks' Lambda

Hotelling's Trace

Roy's Largest Root

Value

.834

.166

5.027

5.027

.129

.871

.148

.148

.115

.885

.131

.131

.127

.873

.145

.145

F

1.004E3a

1.004E33

1.004E36

1.004E3a

29.520a

29.5203

29.520a

29.520a

26.0793

26.079a

26.079a

26.079a

28.964a

28.964a

28.964a

28.964a

Hypothesis

df

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

8.000

Error df

1.598E3

1.598E3

1.598E3

1.598E3

1.598E3

1.598E3

1.598E3

1.598E3

1.598E3

1.598E3

1.598E3

1.598E3

1.598E3

1.598E3

1.598E3

1 598E3

Sig.

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

.000

Partial

Eta

Squared

.834

.834

.834

.834

.129

.129

.129

.129

.115

.115

.115

.115

.127

.127

.127

.127

Noncent.

Parameter

8033.002

8033.002

8033.002

8033.002

236.162

236.162

236.162

236.162

208.630

208.630

208.630

208.630

231.712

231.712

231.712

231.712

Observ

Power"

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

a. Exact statistic

b. Computed using alpha = .05

c. Design: Intercept + Year + Sample + Year'

Sample

Page 282: Leveraging Employee Engagement through a Talent Management

270

Tests of Between-Subjects Effects

Dependent

Source Variable

Type III Sum Mean

of Squares df Square Sig.

Partial

Eta Noncent. Observed

Squared Parameter Power"

Corrected Overall

Model Engagement

Mean Short

Trust &

Transparency

Coaching

Career

Development

Challenging and

Meaningful

Improve Working

Conditions

Open Climate

Communication

99.847a 3 33.282 49.763 .000 .085 149.288 1.000

93.192c 3 31.064 53.056 .000 .090 159.167 1.000

52.014° 3 17.338 24.524 .000 .044 73.572 1.000

8.980s 2.993 3.788 .010 .007 11.363 .817

129.512f 3 43.171 105.943 .000 .165 317.829 1.000

86.2779 3 28.759 61.889 .000 .104 185.668 1.000

74.581h 3 24.860 45.790 .000 .079 137.370 1.000

19.2071 3 6.402 8.435 .000 .016 25.305 .994

Intercept Overall

Engagement

Mean Short

Trust &

Transparency

Coaching

Career

Development

Challenging and

Meaningful

Improve Working

Conditions

Open Climate

Communication

2561.979 1 2561.979 3.831 E3 .000 .705 3830.581 1.000

2518.300 1 2518.300 4.301E3 .000 .728 4301.123 1.000

2403.804 1 2403.804 3.400E3 .000 .679 3400.073 1.000

2211.341 1 2211.341 2.798E3 .000 .635 2797.943 1.000

2591.114 1 2591.114 6.359E3 .000 .798 6358.714 1.000

2658.077 1 2658.077 5.720E3 .000 .781 5720.199 1.000

2495.793 1 2495.793 4.597E3 .000 .741 4596.971 1.000

2316.965 1 2316.965 3.053E3 .000 .655 3052.537 1.000

Page 283: Leveraging Employee Engagement through a Talent Management

271

Year

Sample

Year*

Sample

Overall

Engagement

Mean Short

Trust &

Transparency

Coaching

Career

Development

Challenging and

Meaningful

Improve Working

Conditions

Open Climate

Communication

Overall

Engagement

Mean Short

Trust &

Transparency

Coaching

Career

Development

Challenging and

Meaningful

Improve Working

Conditions

Open Climate

Communication

Overall

Engagement

Mean Short

Trust &

60.402

49.693

28.856

3.811

63.753

41.156

42.742

12.006

31.694

24.919

15.591

2.438

52.456

38.045

25.710

.468

48.252

25.928

1 60.402

1 49.693

1 28.856

1 3.811

1 63.753

1 41.156

1 42.742

1 12.006

1 31.694

1 24.919

1 15.591

1 2.438

1 52.456

1 38.045

1 25.710

1 .468

1 48.252

1 25.928

90.310

84.874

40.816

4.822

156.452

88.568

78.725

15.818

47.387

42.560

22.053

3.085

128.728

81.872

47.354

.617

72.145

44.284

.000

.000

.000

.028

.000

.000

.000

.000

.000

.000

.000

.079

.000

.000

.000

.432

.000

.000

.053

.050

.025

.003

.089

.052

.047

.010

.029

.026

.014

.002

.074

.049

.029

.000

.043

.027

90.310

84.874

40.816

4.822

156.452

88.568

78.725

15.818

47.387

42.560

22.053

3.085

128.728

81.872

47.354

.617

72.145

44.284

1.000

1.000

1.000

.593

1.000

1.000

1.000

.978

1.000

1.000

.997

.419

1.000

1.000

1.000

.123

1.000

1.000 Transparency

Page 284: Leveraging Employee Engagement through a Talent Management

Coaching

Career

Development

Challenging and

Meaningful

Improve Working

Conditions

Open Climate

Communication

Error Overall

Engagement

Mean Short

Trust &

Transparency

Coaching

Career

Development

Challenging and

Meaningful

Improve Working

Conditions

Open Climate

Communication

Total Overall

Engagement

Mean Short

Trust &

Transparency

Coaching

Career

Development

Challenging and

Meaningful

272

31.307 1

1.483 1

61.810 1

35.090 1

32.596 1

5.130 1

1073.460 1605

939.725 1605

1134.712 1605

1268.504 1605

654.022 1605

745.816 1605

871.388 1605

1218.242 1605

25715.667 1609

24401.083 1609

23281.451 1609

19774.986 1609

27116.194 1609

31.307 44.283

1.483 1.876

61.810 151.684

35.090 75.515

32.596 60.038

5.130 6.758

.669

.585

.707

.790

.407

.465

.543

.759

.000 .027

.171 .001

.000 .086

.000 .045

.000 .036

.009 .004

44.283 1.000

1.876 .278

151.684 1.000

75.515 1.000

60.038 1.000

6.758 .738

Page 285: Leveraging Employee Engagement through a Talent Management

273

Improve Working

Conditions 26759.083 1609

Open Climate 24463.000 1609

Communication 19849.278 1609

Corrected Overall

Total Engagement 1173.307 1608

Mean Short

1032.917 1608 Trust &

Transparency

Coaching 1186.726 1608

Career

Development

Challenging and

Meaningful

Improve Working

Conditions

Open Climate 945.970 1608

1277.484 1608

783.534 1608

832.093 1608

Communication 1237.449 1608

a. R Squared = .085 (Adjusted R Squared

= .083)

b. Computed using alpha = .05

c. R Squared = .090 (Adjusted R Squared = .089)

d. R Squared = .044 (Adjusted R Squared = .042)

e. R Squared = .007 (Adjusted R Squared = .005)

f. R Squared = .165 (Adjusted R Squared = .164)

g. R Squared = .104 (Adjusted R Squared = .102)

h. R Squared = .079 (Adjusted R Squared = .077)

i. R Squared = .016 (Adjusted R Squared = .014)

Page 286: Leveraging Employee Engagement through a Talent Management

274

Descriptive Statistics

Year Sample Mean Std. Deviation

Overall Engagement Mean 2006 US BUs

Short

Trust & Transparency

Coaching

USCSU

Total

2008 US BUs

USCSU

Total

Total US BUs

USCSU

Total

3.8935

2.1264

3.8441

4.0094

4.1944

4.0172

3.9342

3.0629

3.9055

.87823

.65716

.91993

.71146

.57245

.70672

.82509

1.20727

.85421

1009

29

1038

547

24

571

1556

53

1609

2006

2008

Total

2006

2008

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

3.7387

2.3218

3.6991

4.0137

4.0278

4.0143

3.8354

3.0943

3.8110

3.7375

2.3966

3.7001

3.7061

3.9375

3.7158

3.7265

3.0943

3.7057

.84034

.71538

.86880

.61628

.51935

.61213

.77998

1.06293

.80147

.88399

.76333

.90785

.76817

.60904

.76313

.84496

1.03801

.85908

1009

29

1038

547

24

571

1556

53

1609

1009

29

1038

547

24

571

1556

53

1609

Career Development 2006 US BUs 3.3617 .94181 1009

Page 287: Leveraging Employee Engagement through a Talent Management

275

Challenging and Meaningful

Improve Working Conditions

Open Climate

2008

Total

2006

2008

Total

2006

2008

Total

2006

2008

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUS

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

2.9713

3.3508

3.4650

3.4167

3.4629

3.3980

3.1730

3.3906

4.0763

1.9540

4.0170

4.0935

4.1806

4.0972

4.0824

2.9623

4.0455

4.0208

2.3218

3.9733

4.0899

4.0556

4.0884

4.0451

3.1069

4.0142

3.8077

2.2931

3.7654

3.9241

4.0139

.94420

.94362

.78575

.73228

.78304

.89118

.87597

.89132

.67904

.69991

.76412

.55647

.52914

.55518

.63851

1.28046

.69805

.72387

.75846

.77674

.59990

.46798

.59466

.68346

1.07968

.71935

.78755

.72874

.82438

.63811

.62538

29

1038

547

24

571

1556

53

1609

1009

29

1038

547

24

571

1556

53

1609

1009

29

1038

547

24

571

1556

53

1609

1009

29

1038

547

24

Page 288: Leveraging Employee Engagement through a Talent Management

276

Communication

Total

2006

2008

Total

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

US BUs

USCSU

Total

3.9279

3.8487

3.0723

3.8231

3.3454

2.9310

3.3338

3.5140

3.7361

3.5234

3.4047

3.2956

3.4011

.63730

.74035

1.09852

.76700

.93095

.84693

.93084

.76223

.56448

.75590

.87880

.83118

.87724

571

1556

53

1609

1009

29

1038

547

24

571

1556

53

1609

Page 289: Leveraging Employee Engagement through a Talent Management

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