RESILIENCE-ORIENTED TALENT MANAGEMENT PRACTICES: THE CASE OF RUSSIAN FIRMS
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Аннотация
Introduction 7
Chapter 1. Theoretical foundations of organizational resilience and talent management ... 10
1.1. Definition of organizational resilience 10
1.2. The role of employee capabilities within organizational resilience 12
1.3. Employee resilience as a link between talent management and organizational resilience ..16
1.4. Resilience-oriented human resources management and talents 18
Chapter 2. Methodology of research and data collection 23
2.1. Research approach and scope 23
2.2. Research design 24
2.3. Measurement scale for organizational resilience 24
2.4. Measurement scale for employee resilience 26
2.5. Measurement scale for talent management practices 27
2.6. Data collection 28
2.7. Data analysis 28
2.8. Validity and reliability of the study 29
Chapter 3. Empirical assessment of the relationship between organizational resilience and
talent management in Russian firms 30
3.1. Preliminary data review 30
3.2. Scale testing 30
3.3. Relationship between talent management and organizational resilience 33
3.4. The effect of employee resilience on the interaction between talent management and
organizational resilience 34
3.5. The impact of talent management practices on organizational and employee resilience ....37
3.6. Discussion of results 42
3.7. Theoretical contributions 44
3.8. Managerial implications 45
Conclusion 47
List of references 49
Appendix 58
Introduction 7
Chapter 1. Theoretical foundations of organizational resilience and talent management ... 10
1.1. Definition of organizational resilience 10
1.2. The role of employee capabilities within organizational resilience 12
1.3. Employee resilience as a link between talent management and organizational resilience ..16
1.4. Resilience-oriented human resources management and talents 18
Chapter 2. Methodology of research and data collection 23
2.1. Research approach and scope 23
2.2. Research design 24
2.3. Measurement scale for organizational resilience 24
2.4. Measurement scale for employee resilience 26
2.5. Measurement scale for talent management practices 27
2.6. Data collection 28
2.7. Data analysis 28
2.8. Validity and reliability of the study 29
Chapter 3. Empirical assessment of the relationship between organizational resilience and
talent management in Russian firms 30
3.1. Preliminary data review 30
3.2. Scale testing 30
3.3. Relationship between talent management and organizational resilience 33
3.4. The effect of employee resilience on the interaction between talent management and
organizational resilience 34
3.5. The impact of talent management practices on organizational and employee resilience ....37
3.6. Discussion of results 42
3.7. Theoretical contributions 44
3.8. Managerial implications 45
Conclusion 47
List of references 49
Appendix 58
The operations of organizations highly depend on their environment: the risks that they are facing can have a significant impact on how companies reach their goals and conduct their activities. In a globalized world where information and innovations spread rapidly, such risks may appear in the least expected forms, be it a global crisis or a local emergency. Consequently, there has been increasing interest in the topic of organizational resilience in the last years, which can be observed in the academic world and is strongly supported by curiosity on the side of practitioners. The latter is expressed through a variety of reports on organizational resilience provided by consulting companies that reflects the general interest of senior executives in the topic, who see resilience as a priority due to economic and political uncertainty (Denyer, 2017; McKinsey & Co., 2021).
The problem of organizational resilience has become even more evident during the COVID-19 pandemic. The length of the crisis and the shutdown of various sectors of the economy forced businesses all over the world to close or significantly modify their operations (Bartik et al., 2020; McKibbin & Fernando, 2020). With ongoing debates about the perspectives of the pandemic and several possible growth scenarios (World Bank Group, 2021), it is still quite unclear how the economy will develop in upcoming years, given the effects the pandemic had on economic growth and social well-being (UNDESA, 2021). This uncertainty has significantly increased in the context of the political, social, and economic disruptions surrounding the situation in Ukraine, the consequences of which reach far beyond Europe. The visible economic effects include but are not limited to broken supply, R&D and production networks, rising commodity prices, and unstable financial markets (Deloitte, 2022; RBK, 2022). Rising inflation, tectonic shifts in global governance together with climate change pose serious challenges to the world economy (Georgieva, 2022; UN, n.d.).
In such an environment, the survival of businesses relies on their ability to prepare for and adjust to changes. Companies need to adapt their strategy, which inevitably means financial, operational, and structural adjustments. Thereby, much of the success depends on the speed of response, which in turn is heavily influenced by structural processes and employee capabilities. As a result, the topic of organizational resilience taps into the area of human resources management (HRM): how should a firm prepare and support its workers to foster decision-making that would contribute to the overall resilience of the company? The focus on strategic choices and resilience- oriented capabilities connects this study with a very specific area of HRM, namely talent management (TM).
The actuality of the problem of organizational resilience is heavily supported by the growing number of studies dedicated to its development and the potential role of human resources (HR) within that concept. Recent studies have confirmed the existence of a relationship between strategic HRM and organizational resilience, suggested potential practices and asked for the elaboration of resilience-oriented HR strategies. Nevertheless, despite the rising interest, few connections were confirmed empirically, and most models remain theoretical.
Furthermore, there is a limited number of studies that focus on the connection between HR and employee resilience, even though it is a trait whose positive effect on organizational resilience has been confirmed in multiple studies. There also is a lack of research that specifically focuses on the impact of TM on organizational resilience - a connection that arises from the focus on strategic employees, which results from the need for efficient and fast responses during crises and the potential role of individual employee resilience that is assumed to be fostered by on-work environments. Therefore, the research gap consists in the absence of studies on the connection between talent management, organizational and employee resilience, and a lack of specific and practical resilience-oriented recommendations for firms.
Thus, the aim of this study is to understand what TM practices can contribute to organizational resilience. To attain that goal, the following research questions are formulated:
1. Is there any relationship between TM and organizational resilience?
2. How does employee resilience affect the relationship between TM and organizational resilience?
3. Which TM practices have the strongest positive effect on organizational and employee resilience?
To answer these questions, it is necessary to meet the following objectives:
• Define the theoretical and methodological foundations of organizational resilience,
employee resilience, and TM.
• Explore the connection between specific TM practices, employee, and organizational
resilience on the example of real companies.
• Generalize findings to elaborate recommendations for the strengthening of
organizational resilience through the implementation of specific TM practices.
The study is conducted on the Russian market due to the availability of businesses that have recently overcome challenges and still pertain in uncertain conditions. The latter include the Covid-19 pandemic and economic sanctions imposed on Russia by Western countries, both of which have heavily affected the way the firms operate (Russian Union of Industrialists and Entrepreneurs, 2020; 2022). This approach allows to accurately measure the impact of specific TM practices because enough time had passed for the implemented measures to show an effect and for firms to adjust their operations based on previous experience.
The objects of the study thus include TM policies, employee resilience and organizational resilience of Russian firms. The subject, on the other hand, is the interaction of these dimensions.
The problem of organizational resilience has become even more evident during the COVID-19 pandemic. The length of the crisis and the shutdown of various sectors of the economy forced businesses all over the world to close or significantly modify their operations (Bartik et al., 2020; McKibbin & Fernando, 2020). With ongoing debates about the perspectives of the pandemic and several possible growth scenarios (World Bank Group, 2021), it is still quite unclear how the economy will develop in upcoming years, given the effects the pandemic had on economic growth and social well-being (UNDESA, 2021). This uncertainty has significantly increased in the context of the political, social, and economic disruptions surrounding the situation in Ukraine, the consequences of which reach far beyond Europe. The visible economic effects include but are not limited to broken supply, R&D and production networks, rising commodity prices, and unstable financial markets (Deloitte, 2022; RBK, 2022). Rising inflation, tectonic shifts in global governance together with climate change pose serious challenges to the world economy (Georgieva, 2022; UN, n.d.).
In such an environment, the survival of businesses relies on their ability to prepare for and adjust to changes. Companies need to adapt their strategy, which inevitably means financial, operational, and structural adjustments. Thereby, much of the success depends on the speed of response, which in turn is heavily influenced by structural processes and employee capabilities. As a result, the topic of organizational resilience taps into the area of human resources management (HRM): how should a firm prepare and support its workers to foster decision-making that would contribute to the overall resilience of the company? The focus on strategic choices and resilience- oriented capabilities connects this study with a very specific area of HRM, namely talent management (TM).
The actuality of the problem of organizational resilience is heavily supported by the growing number of studies dedicated to its development and the potential role of human resources (HR) within that concept. Recent studies have confirmed the existence of a relationship between strategic HRM and organizational resilience, suggested potential practices and asked for the elaboration of resilience-oriented HR strategies. Nevertheless, despite the rising interest, few connections were confirmed empirically, and most models remain theoretical.
Furthermore, there is a limited number of studies that focus on the connection between HR and employee resilience, even though it is a trait whose positive effect on organizational resilience has been confirmed in multiple studies. There also is a lack of research that specifically focuses on the impact of TM on organizational resilience - a connection that arises from the focus on strategic employees, which results from the need for efficient and fast responses during crises and the potential role of individual employee resilience that is assumed to be fostered by on-work environments. Therefore, the research gap consists in the absence of studies on the connection between talent management, organizational and employee resilience, and a lack of specific and practical resilience-oriented recommendations for firms.
Thus, the aim of this study is to understand what TM practices can contribute to organizational resilience. To attain that goal, the following research questions are formulated:
1. Is there any relationship between TM and organizational resilience?
2. How does employee resilience affect the relationship between TM and organizational resilience?
3. Which TM practices have the strongest positive effect on organizational and employee resilience?
To answer these questions, it is necessary to meet the following objectives:
• Define the theoretical and methodological foundations of organizational resilience,
employee resilience, and TM.
• Explore the connection between specific TM practices, employee, and organizational
resilience on the example of real companies.
• Generalize findings to elaborate recommendations for the strengthening of
organizational resilience through the implementation of specific TM practices.
The study is conducted on the Russian market due to the availability of businesses that have recently overcome challenges and still pertain in uncertain conditions. The latter include the Covid-19 pandemic and economic sanctions imposed on Russia by Western countries, both of which have heavily affected the way the firms operate (Russian Union of Industrialists and Entrepreneurs, 2020; 2022). This approach allows to accurately measure the impact of specific TM practices because enough time had passed for the implemented measures to show an effect and for firms to adjust their operations based on previous experience.
The objects of the study thus include TM policies, employee resilience and organizational resilience of Russian firms. The subject, on the other hand, is the interaction of these dimensions.
The concept of organizational resilience appeared in response to external challenges that companies were exposed to and thus has been widely discussed both among practitioners and academics. Despite the large interest in the topic, it was only recently that a relatively unified definition was agreed upon that implied the ability to anticipate, avoid, and adjust to disruptions and changes. Due to the differences in approaches, there are various interpretations of the processes and structures of organizational resilience. Yet, most researchers agree on the role of employee-related factors, be it in the form of the development of specific capabilities, human capital, or communication systems.
In response, HRM studies have focused on the impact of HR on organizational resilience and highlighted the importance of pivotal job positions. In connection to that, they have often emphasized the concept of employee resilience, which reflects the ability of individual employees to respond to challenges in the workplace. Its impact on organizational resilience and the role of HR practices in its development have been confirmed in previous studies, yet no link has been established between the three concepts. The aim of this research thus was to identify TM practices that specifically contributed to organizational and employee resilience. TM was chosen over general HR practices because of the focus on pivotal positions within crisis response strategies and the fact that employee resilience resembled a trait that distinguished employees from one another.
For that purpose, it was first necessary to confirm the relationship between talent attraction, development, retention, and organizational resilience and assess the role of employee resilience within that interaction. The exploratory analysis was conducted on a sample of 75 Russian companies with the application of scales developed and tested in previous studies on TM, employee, and organizational resilience. The Russian market was selected because of its exposure to major disruptive events, such as the pandemic and sanctions.
Correlation and regression analysis has confirmed the existence of a positive relationship between TM and organizational resilience, the linear relationship between TM, employee and organizational resilience, and the fact that TM could affect organizational resilience indirectly through employee resilience. For instance, talent retention practices proved to be positively associated with organizational resilience overall, whereas talent development was specifically connected with increased robustness. Employee resilience, on the other hand, is connected to TM at the stages of attraction and retention.
An overview of the relationship of organizational resilience with specific talent management practices also allowed to identify processes that accounted for most of the variance in the dimensions of organizational resilience: the orientation of feedback toward the development 47
of employees, the availability of job rotation and flexible work assignments, and the provision of opportunities to suggest how things are done. Positive effects were also associated with a stronger employer brand, which however is more likely to be an outcome rather than a source of organizational resilience. For employee resilience, a moderate effect resulted from performance- oriented feedback and the availability of interesting jobs.
Consequently, the results of the study contribute to the extensive literature on organizational resilience by defining and describing the role of TM and employee resilience within that concept. The findings can be used for future research by serving as a basis for qualitative and quantitative studies that would either aim at a more detailed description of the underlying mechanisms or at further generalization of the results. In the practical sphere, the identification of significant TM practices can be applied to strategic planning and specifically for the elaboration of resilience-oriented TM programs that would contribute to the successful response of firms to potential threats.
In response, HRM studies have focused on the impact of HR on organizational resilience and highlighted the importance of pivotal job positions. In connection to that, they have often emphasized the concept of employee resilience, which reflects the ability of individual employees to respond to challenges in the workplace. Its impact on organizational resilience and the role of HR practices in its development have been confirmed in previous studies, yet no link has been established between the three concepts. The aim of this research thus was to identify TM practices that specifically contributed to organizational and employee resilience. TM was chosen over general HR practices because of the focus on pivotal positions within crisis response strategies and the fact that employee resilience resembled a trait that distinguished employees from one another.
For that purpose, it was first necessary to confirm the relationship between talent attraction, development, retention, and organizational resilience and assess the role of employee resilience within that interaction. The exploratory analysis was conducted on a sample of 75 Russian companies with the application of scales developed and tested in previous studies on TM, employee, and organizational resilience. The Russian market was selected because of its exposure to major disruptive events, such as the pandemic and sanctions.
Correlation and regression analysis has confirmed the existence of a positive relationship between TM and organizational resilience, the linear relationship between TM, employee and organizational resilience, and the fact that TM could affect organizational resilience indirectly through employee resilience. For instance, talent retention practices proved to be positively associated with organizational resilience overall, whereas talent development was specifically connected with increased robustness. Employee resilience, on the other hand, is connected to TM at the stages of attraction and retention.
An overview of the relationship of organizational resilience with specific talent management practices also allowed to identify processes that accounted for most of the variance in the dimensions of organizational resilience: the orientation of feedback toward the development 47
of employees, the availability of job rotation and flexible work assignments, and the provision of opportunities to suggest how things are done. Positive effects were also associated with a stronger employer brand, which however is more likely to be an outcome rather than a source of organizational resilience. For employee resilience, a moderate effect resulted from performance- oriented feedback and the availability of interesting jobs.
Consequently, the results of the study contribute to the extensive literature on organizational resilience by defining and describing the role of TM and employee resilience within that concept. The findings can be used for future research by serving as a basis for qualitative and quantitative studies that would either aim at a more detailed description of the underlying mechanisms or at further generalization of the results. In the practical sphere, the identification of significant TM practices can be applied to strategic planning and specifically for the elaboration of resilience-oriented TM programs that would contribute to the successful response of firms to potential threats.
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