Academic journal article Asian Social Science

The Role of Leader's Talent Management Ability in Relations between Leadership Styles and Organizational Effectiveness

Academic journal article Asian Social Science

The Role of Leader's Talent Management Ability in Relations between Leadership Styles and Organizational Effectiveness

Article excerpt

1. Introduction

In 1997, McKinsey brings the view of "war for talent" forward and then prompts the success of some companies while managing their teams' enormous asset. Rapidly followed by this, the expression of "talent management" has attracted much attention in both the theoretical and practical practices (Scullion & Collings, 2010). For every organization who wants to gain much more advantages in current knowledge-based time, human capital have been regarded as the important than any other resources (Hitt & Ireland, 2002), and a determinant of organizational performance (Yukl, 2008). Accordingly, talent management has been viewed as critical success factor for any organization.

Although talent management has been seen as the basic function of human resource management, it cannot work well if the function alone (Whelan, Collings, & Donnellan, 2009). That is, all levels of management must be involved because of the importance of talent management strategies. Therefore, talent management is not just a function of the HR department, but a combination of requiring acknowledgment and supporting from all other departments of the enterprises.

Historically and commonly, great leaders have the ability to hire the most talented people in the best positions at the right time. Winning the war for talent, which includes recruiting and retaining talent and creating leadership opportunities, will be the predominant business challenge for this century (Hajim, 2007). Using the metaphor of a bus, Collins (2001) indicated that the executives who ignited business transformations from good to great first got the right people on the bus, and then figured out where to go. He stressed the importance of utilizing good people for companies' success.

Despite a great deal of researches on talent management in the past, majority of studies have focused on the strategic human resource management point of view. Consequently, there are few studies on talent management from the leadership perspective.

Our research questions are as follows:

1. Do leadership styles affect leaders' talent management ability?

2. Does a leader's talent management ability directly affect organizational effectiveness?

3. Does a leader's talent management ability and leadership style indirectly affect organizational effectiveness?

Based on a literature review and empirical analysis, the primary aim of this study is to identify the mediating effect of a leader's talent management ability on the relation between leadership styles and organizational effectiveness including organizational commitment, job satisfaction, and turnover intention.

2. Theoretical Background

2.1 Leadership Styles

After 1990s, transformational-transactional leadership theory is developed as a mainstream research gradually. This leadership theory was introduced by Burns in 1978at first and then Avolio and Bass (1991) made it complied.

2.1.1 Transformational Leadership

Bass (1999) defines the transformational leadership as "a process in which a leader tries to increase subordinates' awareness of what is right and important and to encourage them to perform "beyond expectation"".

Transformational leaders generally incorporate the following four characteristics their behaviors: Charisma, or Idealized Influence (II) is "the degree to which the leader behaves in admirable means that cause subordinates to identify with the leader". Inspirational Motivation (IM) is "the degree to which the leader articulates a vision that is attracting and motivating to subordinates". Intellectual Stimulation (IS) is "the degree to which the leader challenges assumptions, takes risks, and solicits subordinates' thinking". Individualized Consideration (IC) is "the degree to which the leader attends to each subordinate's needs, acts as a teacher or coach to the subordinate, and give audience to the subordinate's concerns, needs and well-beings" (Muenjohn & Armstong, 2008). …

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