The Effect of Talent Management Practices on Organizational Success: Experience from Ethio Telecom – Jimma Town

Abstract

In this volatile and competitive business environment, talent management is found to be crucial for contemporary organizations, and their success is directly linked to the practices employed for talent management. Talent management practice is an approach used by organizations to attract, engage, develop, deploy and retain employees with the right skills, special abilities, high potentials, scarce knowledge or who can successfully bring about transformation and change in the organization. The study sought to determine the effects of talent management practices on the success of Ethio Telecom’s business operations in Jimma town. Specifically, it looked at how linking talent management strategy with corporate strategy, recognizing and rewarding high potentials and performers as well as conducting talent review sessions and regular performance appraisals affect organizational success. Both exploratory and explanatory research designs were used to achieve the purpose of this study. The study population was three hundred and fifteen (315). A sample size of one hundred and seventy six (176) was used, consisting of top management, middle level management, lower level management and operational staff. Both simple random and purposive sampling techniques were employed in selecting the sample size. A selfadministered questionnaire was used as the main source of primary data collection and the company’s periodical/website was the main source of secondary data. The data gathered were analyzed using SPSS version 22. The study found that talent management practices such as linking talent management strategy with corporate strategy, recognizing and rewarding high potentials and performers as well as conducting talent review sessions had a significant positive influence on organizational success. However, the study found that regular performance appraisals did not have a significant impact on organizational success. It is recommended that Ethio Telecom should improve and emphasize its talent management practices; as doing so brings about greater organizational success. The particular practices should include linking talent management strategy with corporate strategy, recognizing and rewarding high potentials and performers as well as conducting talent review sessions. The study suggests that future researchers should employ other elements as independent variables under talent management practices and investigate their effects on organizational success.