Generation Y Talent Management Strategy and Competitive Advantage: Case of Commercial Banks in Kenya
Journal of Human Resource Management
Volume 4, Issue 2, April 2016, Pages: 10-18
Received: Feb. 27, 2016; Accepted: Mar. 11, 2016; Published: Mar. 24, 2016
Views 7066      Downloads 260
Authors
Angelica Gatiiria Gitonga, Department of Business Administration, Kenyatta University, Nairobi, Kenya
James M. Kilika, Department of Business Administration, Kenyatta University, Nairobi, Kenya
Eliud Obere, Department of Business Administration, Kenyatta University, Nairobi, Kenya
Article Tools
Follow on us
Abstract
Almost every organizational activity brings about a competitive world thus, making a paradigm shift inevitable. It therefore calls for the function of human resource in the organization to understand the category of that shift in order to implement meaningful change. Organizations need to identify the impact of values and work preferences of the young generation of workers in order to employ, develop, retain and prepare staff for future leadership. This study examined the relationship between talent management strategies for Generation Y which included Human Resource Planning, Human Resource Procurement, Human Resource Retention and Human Resource Development and the competitive advantage of commercial banks in Kenya. The study tested four hypotheses that related to independent and dependent variables and a cross sectional descriptive survey design was employed. The target population was a census of all the 43 Commercial Banks in Kenya as indicated in Central Bank’s Annual Report of December 2014 and the unit of observation was six (6) departments in each bank. A sample of 258 respondents was drawn and data was obtained through a semi-structured questionnaire that was self-administered through a drop-and-pick later method. The data collected was analyzed using both descriptive and inferential statistics with multiple linear regression analysis to test the hypotheses. With the analysis of the data collected on all the variables and the testing of hypotheses, the study revealed that Talent Management Strategies of HR Planning, HR Procurement, HR Development and HR Retention contributed to a fairly good extent (Mean = 3.8) so as to contribute to competitive advantage of Commercial Banks in Kenya with a percentage level of 56.3% (R2 = .563). The results of the hypotheses found that there exists a statistically significant, but negative relationship between HR planning strategies and competitive advantage (β=-0.323, p<0.05) while that of HR Development strategies had a weak relationship that was not statistically significant (β=.162, p>0.05). However, there was a strong positive and statistically significant relationship between HR retention strategies and competitive advantage (β=.599, p<0.05). There was also a positive statistically significant relationship between HR procurement strategies (β=.322, p<0.05).The study suggested that Commercial Banks in Kenya should consider Talent Management Strategies for Generation Y when making organizational policies. They should also embrace best HR practices that contribute to the management of human capital in order for them to realize a competitive advantage.
Keywords
Commercial Banks, Competitive Advantage, Generation Y, Human Resource Planning, Human Resource Procurement, Human Resource Development, Human Resource Retention, Talent Management
To cite this article
Angelica Gatiiria Gitonga, James M. Kilika, Eliud Obere, Generation Y Talent Management Strategy and Competitive Advantage: Case of Commercial Banks in Kenya, Journal of Human Resource Management. Vol. 4, No. 2, 2016, pp. 10-18. doi: 10.11648/j.jhrm.20160402.11
Copyright
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
References
[1]
Agarwala, T. (2007). Strategic Human Resource Management, New Delhi: Oxford University Press.
[2]
Amoroso, C. R. (2007). Generational talent management for insurers Strategies to attract and engage Generation Y in the U.S. insurance industry: Deloitte & Touche USA LLP, available at: www.deloitte.com/us/talentpov, accessed on 5th February 2013.
[3]
Anantatmula, V. A. and Shrivastav, B. (2012). Evolution of project teams for Generation Y workforce. Emerald Group Publishing Limited.
[4]
Armstrong, M. (2006). A Handbook of Human Resource Management Practice, 10th Edition. London: Kogan Page.
[5]
Armstrong, M. (2006). Strategic Human Resource Management, 3rd Edition. London: Kogan Page.
[6]
Armstrong, M. (2009). Armstrong’s Handbook of Human Resource Management, 11th Edition. London: Kogan Page.
[7]
Beardwell, J., Claydon, T. (2010). Human Resource Management, A Contemporary Approach, 6th Edition. England: Financial Times, Prentice Hall.
[8]
Billikopf, G. (2006). Interacting with Employees: workforce Interpersonal Relations. University of California, Barkley.
[9]
Bryman, A. Bell, E. (2015). Business Research Methods, 4th Edition, Oxford University Press.
[10]
Boudreau, J. (2003). Sustainability and the Talent Paradigm: Strategic Human Resource Management Beyond the Bottom line.CAHRS Working paper seris, 1-33.
[11]
Central Bank of Kenya (2014). Supervision Annual Report. Retrieved from https://www.centralbank.go.ke
[12]
Central Bank of Kenya (2014). Annual Review. Retrieved from https://www.centralbank.go.ke
[13]
Central Bank of Kenya (2010). The World Bank Development Research Group Finance and Private Sector Development Team. https://www.centralbank.go.ke
[14]
Chen, S. (2009). Generation Y: Challenges and Strategies for HR Management: available at: http://www.careerealism.com/characteristics-generation-y-workplace/ accessed on 03/02/2013
[15]
Cummings, T. G. and Worley, C. G. (2009:2015). Organisational Development and Change, 10th Edition, Cengage Learning.
[16]
Darwish, T. K. and Singh, S. (2013) "Does strategic human resource involvement and devolvement enhance organisational performance? Evidence from Jordan", International Journal of Manpower. Emerald Group Publishing Limited. Available at www.emeraldinsight.com (accessed on 23 June 2014).
[17]
Deloitte Research LLC. (2011). Generation Y: powerhouse of the global economy Restless generation is a challenge–and a huge opportunity–for employers. Available at www.deloitte.com/us/genY (accessed on 14 February 2013).
[18]
Deloitte Research LLC. (2011). Generational Talent Management. Strategies to Attract and Engage Generation Y in the U.S. Banking & Securities Industries: An Approach to Gen Y Readiness. Available at www.deloitte.com/us/talentpov (accessed on 16 February 2013).
[19]
Desimone, W. (2006). Human Resource Development, South-Western: Cengage Learning.
[20]
Dessler, G. (2011). Human Resource Management, 12th Edition, England: Pearson Education Ltd, Edinburge Gate.
[21]
Dunford, B. B., Snell, S. A. & Wright, P. M. (2001). Human resources and the resource based view of the firm. Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies.
[22]
Gamble, E. J. & Thompson, A. A. (2011). Essentials of Strategic Management – Quest for competitive Advantage, 2nd Edition, London: McGrow Hill.
[23]
Geita, P. (2003). An Investigation of the factors affecting service delivery in Commercial Banks in Kenya. MBA Project, Egerton University.
[24]
Gupta, C.B. (2008). Human resource Management, 11th Edition. New Delhi: Sultan Chand & Son.
[25]
Hackman, J. R. and Oldham, G. R. (1980). Work Redesign. Philippines Addison-Wesley.
[26]
Hughes, J. C. & Rog, E. (2008). Talent management: A strategy for improving employee recruitment, retention and engagement within hospitality organisations. International Journal of Contemporary Hospitality Management. Canada: University of Guelph. www.emeraldinsight.com
[27]
Hough, J., Thompson, A. A., Stickland, J. and Gamble, E. J. (2011). Crafting and Executing Strategy – Creating Sustainable High Performance in South Africa 2nd Edition. London: McGraw Hill.
[28]
Ivancevich, J. M., Konopaske, R., and Matterson M. T, (2008). Organisational Behaviour and Management 8th Edition. London: McGraw-Hill.
[29]
Jackson, S. (2013). HR is Business: Achieving competitive advantage through strategic talent management.
[30]
Kamau, A. and Were, M. (2013). What drives banking sector performance in Kenya? Global Business and Economics Research Journal, 2(4): 45-59.
[31]
Karanja, S. C., Muathe, S. M. A. and Thuo, J. K (2014).The Effect of Marketing Capabilities and Distribution Strategy on Performance of MSP Intermediary Organisations’ in Nairobi County, Kenya. Macro think Institute ISSN 2157-606.
[32]
Khatri, N. (1999). Emerging issues in strategic HRM in Singapore. Singapore: MCB University Press, (available at http://www.emerald-library.com).
[33]
Lim, H. L. (2012). Generation Y workforce expectations: implications for the UAE. The United Arab Emirates: Petroleum Institute, Emerald Group Publishing Limited.
[34]
Luscombe, J., Lewis, I. M. and Biggs, H. C. (2013). Essential Elements for Recruitment and Retention: Generation Y. Education and Training. Australia: Kelvin Grove, Emerald Group Publishing Limited.
[35]
Mankin, D. (2009). Human Resource Development. New York: Oxford University Press.
[36]
Marescaux, E. and De Winne, S. (2013). HR practices and HRM outcomes: the role of basic need satisfaction. Belgium: University of Leuven. www.emeraldinsight.com/0048-3486.htm
[37]
Martin, C. A. (2005). From high maintenance to high productivity: What managers need to know about Generation Y: available at: http://www.emeraldinsight.com: Accessed 6th March 2012.
[38]
Mnjala, D. M. (2014). The Challenges of Creating Sustainable Competitive Advantage in the Banking Industry in Kenya. Journal of Business and Management (IOSR-JBM), 16(4), 82-87.
[39]
Murry, B., Hubert, S., Feilf, R. and Gatewood, D. (2011). Selection in human resource management. South-Western: Cengage Learning.
[40]
Pitts, R. A. and Lei, D. (2006). Strategic Management – Building and Sustaining Competitive Advantage. South-Western: Cengage Learning.
[41]
Pivateau, G. (2011). Preserving Human Capital: Using the Noncompete Agreement to Achieve Competitive Adavantage. Business Entreprenuership and Leadership(3), 320-34.
[42]
Saunders, M., Lewis, P. and Thornhill, A. (2009). Research Methods for Business Students 5th Edition. USA: Prentice Hall.
[43]
Seifert, M. and Hadida, L. A, (2006). Facilitating talent selection decisions in the music industry", Management Decision: available at: www.emeraldinsight.com/0025-1747.htm - accessed on 23rd March 2012.
[44]
Shaw, S. and Fairhurst, D. (2008). Engaging a new generation of graduates: available at: www.emeraldinsight.com/0040-0912.htm accessed on 10th April 2012.
[45]
Snell, S., Shadur, M.and Wright, P. (2000). Human Resource strategy: Era of our ways.CAHRS working paper series, 1-41.
[46]
Srivatstava, M., Franklin, A.and Martinette, L., (2013). Building a Sustainable Competitive Advantage. Journal of Technology management and Innovation, 8(2).
[47]
Vaiman, V. and Collings, D. (2012). Talent management decision Making. Emerald Group Publishing Limited.
[48]
Westerman, J. W. (2006). Generational preferences for work environment fit: effects on employee outcomes. USA: North Carolina, Emerald Group Publishing Limited.
[49]
Zikmund, W.G. (2011). Business Research Methods 7th Edition. New Dheli: Cengage Learning.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186