Talent Management Practices and Organizational Performance in Information Technology Firms of South India
Author(s):
A. Muthumari, Dr. B. Kayathiribai
Journal:
International Journal of Business Dynamics and Management
Abstract
Objective: Knowledge-intensive industries depend on their human workforce to create competitive advantages, but organizations fail to recognize employees as essential workforce resources. The existing research links talent management (TM) practices to better firm performance (FP) outcomes, but there remains a knowledge gap about how organizations use human resource analytics (HRA) to assess their talent-based investments. The research develops a Human Talent Management (HTM) framework that defines talent as organizational wealth and assesses analytics capabilities as a factor that affects the connection between TM and FP.
Design/Methodology/Approach: The study used a quantitative explanatory research design which combined Resource-Based View and Social Exchange Theory as its theoretical framework. The study collected survey data from 250 IT professionals who worked in Chennai, Bengaluru, and Hyderabad. The study used structural equation modeling to validate research constructs and analyze direct and indirect relationships between TM practices and human resource analytics (HRA) capabilities and FP.
Findings: HRA predicts FP outcomes and functions as a partial mediator which connects TM activities to FP results because analytics help businesses measure their talent development results. Organizations achieve better performance results when they combine analytics with TM than when they use TM practices without analytics support.
Originality/Value: The HTM framework provides an advanced method for evaluating TM which shows how organizations create value through their TM activities in information technology sectors of emerging markets.
Practical Implications: Organizations should prioritize workforce development and invest in analytics capabilities to enable evidence-based talent decisions that enhance sustainable performance.
Keywords:
Human Talent Management; IT sector; Firm performance; Retention; Performance