The impact of social capital-based selection practices on talent management: evidence from telecom MNCs in Bangladesh

Syed Monirul Hossain,Mohammad J Uddin,Seong Yuen Toh,Yuka Fujimoto

doi:10.1504/ejim.2021.10034513

Abstract

The purpose of this paper is to explore how social capital-based selection practices influence talent management (TM) in multinational companies (MNC). To date, little is known about how this relationship fulfills business priorities. The study collected empirical data through in-depth interviews with 12 managers from three telecommunication firms in Bangladesh. Our study found a significant influence of social capital-based selection practices on TM. We found that the relational and cognitive dimensions of social capital were the major drivers of selection practices that influenced a talent search process. Trust and cultural norms especially within networking relationships through shared narratives, codes and language, and vision affected TM involving selection practices. Therefore, the role of existing human resource management (HRM) system for selection practices was found inadequate without the integration of social capital. We report that upper-level managers have the capability to shape and implement a TM system that benefits candidates with network ties of informal social relationships, which consequently marginalized formal HRM practices. HRM system is only an administrative function alongside the dominant social capital-based TM selection practices. For practical implications, upper-level managers used social capital-based selection practices beyond HRM systems that were deemed pragmatic in selecting the right candidates for positions in organizations favoring intra-group homogeneity.

Highlights

Since proper talent management has been perceived as a solution to human resource (HR) challenges (Beechler and Woodward, 2009), selection practices have become imperative functions of human resource management (HRM) in the quest for talents to achieve person-organization fit (Collins and Clark, 2003; Collins and Smith, 2006; Lado and Wilson, 1994; Mahmud et al, 2012; Van Maanen, 1977)
The findings revealed that HRM practices aimed to internally employ people of higher quality and to facilitate in creating a skilled workforce for an organization
The participants claimed that there was social capital, through its relational and cognitive dimensions, integrated in their selection practices to support talent management (TM) apart from the existing HRM system: “It is difficult and to some extent, extremely time consuming to find talents from external sources to adjust to our needs, so we’ve gone far more to develop it in-house, creating junior positions and trainees and enhance their leadership role in the organization.”—HR and Administration Director, from Upper-level managerial group (ULMG) of Company A

Summary

Introduction

Since proper talent management has been perceived as a solution to human resource (HR) challenges (Beechler and Woodward, 2009), selection practices have become imperative functions of human resource management (HRM) in the quest for talents to achieve person-organization fit (Collins and Clark, 2003; Collins and Smith, 2006; Lado and Wilson, 1994; Mahmud et al, 2012; Van Maanen, 1977). Nowadays, this concern regarding HR Challenges is true when filling most positions in organizations (Dreikurs et al, 2013). Research that addresses talent selection of multinational corporations (MNCs) from the perspective of social capital theory is somewhat lacking

Objectives

Methods

Results

Conclusion