Effective talent management in Malaysian SMES: A proposed framework

Maniam Kaliannan, Mathew Abraham and Vanitha Ponnusamy
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Vanitha Ponnusamy: University of Nottingham Malaysia Campus

Journal of Developing Areas, 2016, vol. 50, issue 5, 393-401

Abstract: This study is intended to develop a framework for effective talent management among SMEs in Malaysia by examining talent management practices that influence job satisfaction and organisational commitment among employees in Malaysian SMEs. This is crucial as SMEs in Malaysia contribute towards the growth of domestic economy, yet they are ineffective in developing their human capital. Talent management pays attention to how company designs and maintains human resource policies that are strategic to a business organisation in meeting its goals. Four core talent management practices are identified for this research, i.e. Staffing and Recruitment, Training and Development, Rewards and Recognition, and Retaining practices. It is imperative to interpret the above practices from the practitioners’ viewpoint, hence qualitative research is deemed relevant for this study, data was collected via focus group interviews and structured interview. Findings indicate a gap between employees and employers in terms of expectations of talent management practices. Employees are looking for better training opportunities and some form of remuneration and recognition that demonstrates full potential at work. Besides this, a decent work environment is important for employees to be innovative and perform better at work. Management transparency and open communication is essential to build trust which cultivates commitment and job satisfaction that eventually retain talent in an organisation. Generation X managers find it difficult to manage their generation Y subordinates due to differences in value and attitude towards work. However, few have noted that open communication and equal treatment can help to manage this generation gap. SMEs in Malaysia need to be focussed and strategize their current HR practices to be relevant and effective, in their own mould and not to emulate MNCs. Hence it is crucial for them to work with relevant agencies and stakeholders.

Keywords: talent management; SMEs (search for similar items in EconPapers)
JEL-codes: M51 (search for similar items in EconPapers)
Date: 2016
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