How Do HR and Talent Management Practices Affect Organizational Performance?

How Do HR and Talent Management Practices Affect Organizational Performance?
from the Turning Good People Into Top Talent blog series

Kinetic Potential Energy

An article in the “Academy of Management Journal” by researchers at Rutgers and Notre Dame universities who summarized 116 articles, representing more than 31,000 organizations, found that different HR practices work on different outcomes.  For example, “skill-enhancing HR practices were more effective in enhancing human capital, whereas motivation-enhancing HR practices and opportunity-enhancing HR practices were more likely to improve employee motivation.”

The researchers concluded that financial and operational outcomes were indirectly affected by HR practices through enhanced capability.  Whereas, opportunity and motivation, which affects employee turnover and operational outcomes, influences financial outcomes.

Consider the term “capability” which means “Can they do it?” which is different than “opportunity” which means “Did they get the chance to do it?”  Add to the equation, “motivation” which means, “Do they want to do it?”

Now ask yourself, “Have leaders given your people the right opportunity to perform?”   For example, if you want more creativity and innovation, you must create time to give people the opportunity to think beyond their immediate tasks. Amazon and Google are prime examples.

In summary, talent management may be a matter of knowing physics. Kinetic energy is energy in motion. Potential energy is simply stored, waiting to be released like a bow and arrow. However, whether your arrow hits the target depends on the “opportunity” which is the aim and proximity to the target.

Consider how these basic concepts relate to why people perform as they do.  Then, assess how much and what kind of power and energy is available and how well and how often it gets applied to achieve the intended results. The answers you come up with will likely indicate how effectively people are influenced by the work of the leaders.  The Work of Leaders is a process that when applied improves engagement by assuring Vision, Alignment, and Execution are practiced effectively.

You can learn more by contacting with WORK OF LEADERS in the subject line.


Bob Moore, CMC®
CEO of Effectiveness, Inc. and
The Talent Management Institute
“Turning Good People Into Top Talent”

CMC®, Certified Management Consultant,
is the globally recognized certification mark
of competency, professionalism and ethics.​

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