Assignment Grading Rubric Course: GB540 Unit: 3 For most firms today, success or failure is determined by the ability to find, attract, keep, develop, and tap into the most talented workforce that can be assembled. Use the Kaplan Online Library to search for articles related to this topic. Write a 5-page report outlining what firms need to do in order to bring in the most talented people (from anywhere) and make the fullest possible use of their abilities. Support your paper with at least two articles from the Library. Your paper must be APA compliant. GB540 Unit 3 Assignment Rubric Content and Analysis Paper includes a discussion with an appropriate analysis of success or failure in the following areas: Competition for talent Utilizing talent Ability to find talent Ability to attract talent Ability to retain talent Ability to develop talent Paper is the appropriate length Writing Style, Grammar, APA Format, at least two resources are used Total Submit your paper to the Unit 3 Dropbox by the end of Unit 3. Copyright Kaplan University Points Possible 48 8 14 70 Points Earned Human Resources Management How to Attract and Retain Artistic Talent: The Case of an Italian Ballet Company Annachiara Scapolan, Fabrizio Montanari Introduction O ver the last two decades, several researchers have argued that people may be the ultimate determinant of organizational performance, since traditional sources of competitive advantage have been weakened by globalization and other changes in the competitive landscape (e.g., Barney and Wright, 1998; Boxall and Purcell, 2011; Pfeffer, 1994). In accordance with this focus on the human element, organizations have expended great effort on the development of appropriate human resource management (HRM) architectures in order to recruit, motivate and retain individuals who possess those knowledge, skills, abilities and other characteristics that contribute to organizational performance (Bowen and Ostroff, 2004; Huselid, Jackson and Schuler, 1997; Lepak and Snell, 1999). Human capital is particularly relevant in highskilled contexts like the performing arts where knowledge, skills, abilities and reputation of both artistic roles and “humdrums” play a crucial role in determining organizational performance (e.g., Baumol and Bowen, 1965; Caves, 2000; Throsby, 2001). Furthermore, labour markets in these sectors have particular characteristics, which makes them atypical (Hausmann, 2010). For example, market uncertainty and the complexity of cultural products call for flexibility in managing cultural productions – for instance, promoting projectbased organizational solutions and temporary organizations – which, in turn, have favoured the emergence of contingent work contracts (Menger, 4 1999). As a result, employment is characterized by highly mobile workers who move from one organization to another while accumulating experience through on-the-job training (Alper and Wassall, 2006; Menger, 1999). In such a context, attracting and retaining individuals with valuable knowledge, skills and abilities can be a critical issue for organizations (e.g., Coff and Kryscynski, 2011; Holland, Sheehan and De Cieri, 2007; Wright, McMahan and McWilliams, 1994). Although the literature acknowledges the relevance of human capital in the performing arts (e.g., Benhamou, 2000; Brown, 2004; Cardinal and Lapierre, 2007), previous studies have not investigated the issue of how performing arts organizations attract and retain artistic talent. In fact, previous studies on human resources attraction and retention (for a review, see Collings and Mellahi, 2009; Griffeth and Hom, 2001; Nyberg et al., 2012) have investigated organizations operating in several sectors without taking the cultural industries into consideration. Studies on the performing arts (e.g., Eikof and Haunschild, 2007; Haunschild, 2003; Jackson, 1996) have focused more on individual motivation or macro employment trends than on organizational characteristics that could affect individual intention to join and stay with an organization. The purpose of this study is to examine which factors serve to attract and retain artistic talent in the performing arts. More specifically, we aim to contribute to the debate by answering three research questions: How can cultural organizations attract and retain artistic talent? Why do artists choose to work for a Annachiara Scapolan (PhD, Management, Ca’ Foscari University, Venice) is an assistant professor at the University of Modena and Reggio Emilia, where she is also researcher at OPERA (a research unit at the GIUnO Research Center specializing in the creative industries). Her main research interests are strategic HRM, organizational solutions, and HRM practices in innovation and creativity. Fabrizio Montanari (PhD, Business Management, Bocconi University) is an assistant professor at the University of Modena and Reggio Emilia and scientific coordinator of OPERA. His main research interests are networks, creative clusters and teams in the creative industries. He is also a lecturer at Bocconi University, where he is active at the ASK Research Centre. INTERNATIONAL JOURNAL OF ARTS MANAGEMENT particular organization? Do retention factors differ from attraction factors? We conducted an exploratory study of Fondazione Nazionale della Danza Aterballetto, the foremost contemporary ballet company in Italy and one of the most renowned in Europe. We adopted a case study methodology and combined three data-collection methods: archival analysis, interviews and direct observation. Dance represents an interesting setting for our purposes, for several reasons. Despite the fact that in recent decades scholars from different disciplines have devoted increasing attention to the study of the performing arts (Agid and Tarondeau, 2007; Bussel and Forbes, 2007; Slavich and Montanari, 2009), dance remains an under-investigated sector. Furthermore, dance is an interesting setting in which to study issues related to HRM, as voluntary turnover is high and careers are short and uncertain (Jeffri and Throsby, 2006; Levine, 2004). This article is divided into three sections: theoretical background and motivations for the study, data analysis, and discussion of the results and conclusion. Theoretical Background D rawing on resource-based theory, which maintains that an organization’s unique internal resource configuration can be a source of sustainable competitive advantage (Barney, 1991), many scholars in the fields of strategy and strategic HRM emphasize the importance of an organization’s human capital as a key asset for competing successfully (Nyberg et al., 2012). More specifically, scholars in the field of strategy have focused on examining the process by which an organization’s human capital is created and becomes a source of competitive advantage (e.g., Barney and Wright, 1998; Chadwick and Dabu, 2009; Wright, McMahan and McWilliams, 1994). Conversely, the strategic HRM literature investigates how HRM affects an organization’s human capital, which in turn influences organizational performance, by examining, for instance, how HRM practices are related to organizational performance and assuming a mediating role for human capital resources (e.g., Boxall and Purcell, 2011; Huselid, Jackson and Schuler, 1997; Macky and Boxall, 2007; Youndt et al., 1996). In investigating these issues, several scholars (e.g., Hitt et al., 2001; Lepak and Snell, 1999, 2002; Snell and Dean, 1992) have grounded their theoretical arguments in human capital theory (Becker, 1964), which defines human capital as an individual’s stock of knowledge, skills and abilities that can be increased through, for instance, education, training and experience. Other scholars recognize the “micro-foundations” (Teece, 2007) of an organization’s human capital resources, arguing that these emerge from the combination and transformation of individuals’ knowledge, skills, abilities and other characteristics, such as psychological attributes (Ployhart and Moliterno, 2011). Acknowledgements The authors would like to thank Fondazione Nazionale della Danza Aterballetto, in particular the general director, Giovanni Ottolini, the artistic director, Cristina Bozzolini, and Irene Sartorelli, Federica Falduto and Alberto Maestri, for their valuable assistance during data collection. The authors would also like to thank an anonymous reviewer and Zannie Voss for their helpful ­c o m m e n t s a n d suggestions. Thus, recent research suggests that attracting, motivating and retaining employees with ABSTRACT Previous studies have highlighted the relevance of human capital in the performing arts but have not investigated which factors attract and retain artistic talent. This article aims to fill the gap by answering three research questions: How can organizations attract and retain artistic talent? Why do artists choose to work with a particular organization? Do retention factors differ from attraction factors? In order to address these questions, the authors conducted an explorative case study of Italy’s most renowned contemporary ballet company, Fondazione Nazionale della Danza Aterballetto. Differences among attraction and retention factors emerged based on individual characteristics such as professional experience and professional needs. All dancers were attracted by the reputation of the resident choreographer, the reputation of the organization and the “flat” structure of the organization. The main retention factors were as follows: for all dancers, characteristics of the creative process; for the more experienced dancers, the perception of a collaborative and open environment offering opportunities to collaborate with both organizational members and external artists and thus to develop a professional network. Implications for research and management are discussed. KEYWORDS Dance industry, attraction, retention, human capital, case study VOLUME 16, NUMBER 1 • FALL 2013 5 valuable human capital is critical in order to gain a human capital-based competitive advantage (e.g., Coff and Kryscynski, 2011; Gardner, 2002; Lockwood, 2006). However, according to Coff and Kryscynski (2011) attracting, motivating and retaining the best employees poses significant challenges in terms of idiosyncratic dilemmas, which arise from the attributes that make human resources a potential source of value creation, namely specificity, social complexity and causal ambiguity. Since universalistic HRM best practices cannot resolve these problems, organizations need to develop specific coping strategies, leveraging their unique capabilities in attracting, motivating and retaining human capital. In accordance with this line of thinking, several studies have addressed the issue of attraction and retention, providing useful insights into factors that affect an organization’s ability to attract and retain valuable human resources (Griffeth and Hom, 2001; Holland et al., 2007; Holtbrügge, Friedmann and Puck, 2010; Hutchings, De Cieri and Shea, 2011). Several studies on the recruitment process (Cable and Turban, 2003; Collins and Han, 2004; Gatewood, Gowan and Lautenschlager, 1993) demonstrate that an organization’s image or reputation plays an important role in attracting human resources, since it affects “the intention to accept a job and ultimate job choice” (Williamson et al., 2010, p. 669). More specifically, scholars have found that job seekers consider organizational reputation to be reflective of an organization’s working conditions and that organizations with a good reputation are likely to receive public recognition, validating them also as suitable employers (Rindova et al., 2005). Recent studies have underlined the important role of an organization’s “employer brand” (Backhaus and Tikoo, 2004; Berthon, Ewing and Hah, 2005; Lievens, 2007), defined as “the set of distinctive associations made by employees (actual or potential) with the corporate name” (Davies, 2008, p. 667). A good/positive employer brand contributes positively to attracting better applicants, since it “shapes their expectations about their employment” (Davies, 2008, p. 667). Similarly, several studies on how organizations might attract valuable human resources have highlighted the importance of creating a distinctive employment experience and promoting “both within and outside the firm, a clear view of what makes it different and desirable as an employer” (Backhaus and Tikoo, 2004, p. 501). Erickson and Gratton (2007) introduce the concept of “signature experience” to indicate the “visible, distinctive element of an organization’s overall employee experience” (p. 106) and Moroko and Uncles (2008) conceptualize “the employment experience of a firm as a product produced by the culture, policies and processes of the firm” (p. 160). Accordingly, an organization’s ability to provide and communicate a distinctive employment experience is said to affect its desirability and attractiveness as an employer, since it “serves as a powerful and constant symbol of the organization’s culture and values” (Erickson and Gratton, 2007, p. 106). Several studies (Cable and Judge, 1997; Turban et al., 2001) provide empirical evidence that job seekers are attracted by an organization’s values and culture, especially when these are consistent with RÉSUMÉ Certaines études ont fait ressortir l’importance du capital humain dans les arts de la scène, sans pour autant examiner les facteurs qui permettent d’attirer et de retenir les talents artistiques. Cet article vise à combler cette lacune en posant les questions suivantes: comment les organisations culturelles peuvent-elles attirer et retenir des talents artistiques? Pourquoi les artistes choisissent-ils de travailler pour une organisation en particulier? Les facteurs de rétention diffèrent-ils des facteurs d’attraction? Afin d’apporter des réponses à ces questions, les auteurs ont mené une étude exploratoire à partir de l’étude de cas de la Fondazione Nazionale della Danza Aterballetto (ou Aterballetto), la compagnie de ballet contemporain la plus célèbre d’Italie. Il est alors apparu que les différences entre les facteurs d’attraction et les facteurs de rétention sont attribuables à des caractéristiques individuelles telles que l’expérience professionnelle et les besoins professionnels. Tous les danseurs étaient attirés par la réputation du chorégraphe résident, la réputation de l’organisation et la structure horizontale de l’organisation. Les principaux facteurs de rétention sont les suivants: pour tous les danseurs, les caractéristiques du processus créatif; pour les danseurs chevronnés, la perception d’un environnement ouvert et coopératif où il est possible de collaborer aussi bien avec les membres de l’organisation qu’avec les artistes de l’extérieur et, par conséquent, d’établir un réseau professionnel. Les implications pour la recherche et le management sont également discutées dans l’article. MOTS CLÉS Industrie de la danse, attraction, rétention, capital humain, étude de cas 6 INTERNATIONAL JOURNAL OF ARTS MANAGEMENT their own. Indeed, the research demonstrates that the congruence between a person and an organization (the “P-O fit”) is an important factor, since organizations hire people who present characteristics that are consistent with their organizational culture (Schneider, 2001) and people seek jobs with organizations where they perceive a good fit between their own values and beliefs and those of the organization (KristofBrown, Zimmerman and Johnson, 2005). Finally, several studies note that the adoption of innovative HRM, which promotes employee involvement and participation, and high-commitment work practices such as selective staffing, extensive training, pay for performance (i.e., gain-sharing, profit-sharing), and teamwork contribute positively to attracting new employees (Berthon, Ewing and Hah, 2005; Hutchings, De Cieri and Shea, 2011). To sum up, extant literature on factors attracting job seekers provides useful insights into how organizations might promote their desirability and attractiveness as employers. However, the literature has neglected important aspects that could contribute to creating an organizationspecific human capital-based competitive advantage by attracting valuable human resources. For instance, studies have not investigated whether different attraction factors have the same relevance for all job seekers or whether their relevance varies depending on individual characteristics such as professional experience and professional needs. As for retaining valuable employees, a number of studies have investigated the determinants of turnover (for reviews, see Griffeth, Hom and Gaertner, 2000; Maertz and Campion, 1998) and intention to stay (Mitchell et al., 2001; Hausknecht, Rodda and Howard, 2009). They show that employee satisfaction, organizational commitment and job alternatives are the main factors predicting both turnover and intention to leave. For instance, Griffeth and Gaertner (2001) provide empirical evidence that employee satisfaction with pay, supervisor and work reduces intention to quit, which in turn reduces voluntary turnover. Mitchell and colleagues (2001) demonstrate that on-the-job embeddedness predicts intention to leave and voluntary turnover, over and above traditional determinants – that is, job satisfaction, organizational commitment and job alternatives. “On-the-job embeddedness” has been described as a web of connections “in which an individual can become stuck” (Mitchell et al., 2001, p. 1104) and which affects intention to stay in a job, since the harder it is to break these connections, “the more difficult it will be for him or her to sever employment with the organization” (p. 1105). These connections are defined as the extent to which individual abilities and values match organizational requirements and culture (fit), the number of one’s ties with coworkers and activities (links), and what individuals would have to give up if they were to leave their present settings (sacrifice) (Lee et al., 2004). Previous research has also investigated how HRM practices impact turnover (Arthur, 1994; Hoque, 1999; Huselid, 1995). For instance, Huselid (1995) demonstrates that the adoption of a set of best practices, which includes the innovative and high-commitment work practices mentioned above, is positively related not only to higher organizational productivity and financial performance but also to lower employee turnover. Similarly, other studies have provided insight into factors affecting employee RESUMEN En estudios previos se ha destacado la importancia del capital humano en las artes escénicas pero no se han llevado a cabo investigaciones sobre los factores que atraen y retienen talentos. En este artículo se propone colmar el vacío respondiendo a tres preguntas: ¿qué tienen que hacer las organizaciones para atraer y retener talento artístico? ¿Qué es lo que motiva a los artistas a ir a trabajar a una organización en particular? ¿Hay una diferencia entre los factores de atracción y los de retención? Para responder a dichas preguntas, los autores realizaron un estudio de caso exploratorio sobre la compañía de ballet contemporáneo más famosa de Italia, la Fondazione Nazionale della Danza Aterballetto. Se observaron diferencias entre ambos factores basadas en características individuales tales como la experiencia y las necesidades profesionales. La reputación del coreógrafo residente y la estructura horizontal de la organización aparecen como elementos de atracción para los bailarines. Se destacaron los siguientes factores de retención: para todos los bailarines, el proceso creativo; para los bailarines más experimentados, la percepción de un entorno abierto a la colaboración tanto con los integrantes de la misma organización como con artistas de fuera de ella, permitiendo desarrollar una red profesional. Se presentan en este artículo las repercusiones en la investigación y la gestión. PA L A B R A S CLAVE Industria de la danza, atracción, retención, capital humano, estudio de caso VOLUME 16, NUMBER 1 • FALL 2013 7 retention by demonstrating that intention to stay is high in an “overinvestment employeeorganization relationship,” where even though the employee performs a well-specified set of job-focused activities, “the employer offers open-ended and broad-ranging rewards, including training and a commitment to provide the employee with career opportunities” (Tsui et al., 1997, p. 1093). More recently, Hausknecht and colleagues (2009) demonstrate that job satisfaction, extrinsic rewards, and good relationships with employer and colleagues are the main reasons for staying with an organization. Other retention factors are the organization’s reputation, the lack of alternative job opportunities, and organizational identification and commitment. Furthermore, Hausknecht and colleagues highlight significant differences among employees: While high performers and employees at higher hierarchical levels within the organization were retained by intrinsic rewards, such as career opportunities, interpersonal relationships, job satisfaction, organizational fairness and company reputation, low performers and employees at lower hierarchical levels were retained by extrinsic rewards and contractual flexibility. To sum up, the existing research on employee turnover, intention to leave and intention to stay provides useful insights into factors affecting human resources retention. However, the literature neglects other important aspects. For example, even though the recent study by Hausknecht and colleagues (2009) shows that retention factors may vary across different employee segments, depending on their performance and their organizational role, the research has not yet investigated how the relevance of the same retention factor may vary depending on other individual characteristics such as accumulated professional experience or professional needs. Moreover, previous studies on attraction and retention have focused on organizations in several sectors (e.g., manufacturing, health and community services, education, hospitality) but do not consider the performing arts despite the important role of human capital in this sector. Similarly, extant research on the performing arts has analyzed employment systems, pointing out that labour markets in this sector are characterized by restricted access, high inter-organizational mobility and huge pay differences (Eikof and Haunschild, 2007; Menger, 1999). In the performing arts, HRM practices are highly personalized and are limited to staffing decisions and recruitment and contract negotiations, while career planning is relegated to artists’ individual 8 entrepreneurship and relational skills (Eikof and Haunschild, 2007; Haunschild, 2003). Although these studies provide interesting insights into factors that affect human resources attraction and retention in the performing arts, they have not investigated the reasons why artists decide to join and remain with a specific organization. Therefore, this study is intended to contribute to the literature on how an organization might attract and retain valuable human resources by investigating a sector that has not been considered in previous studies and by analyzing whether organization-specific factors that attract employees are the same ones that retain them. More specifically, we investigate whether and why the relevance of different attraction and retention factors varies among individuals – for instance, based on their professional characteristics. In so doing, we hope to also contribute to the literature on the cultural industries in general and the performing arts in particular. The Case of Fondazione Nazionale della Danza Aterballetto W e conducted an exploratory study of Fondazione Nazionale della Danza Aterballetto, Italy’s best-known contemporary ballet company. Founded in 1979, Aterballetto is based in the city of Reggio Emilia in the north of Italy. After almost 18 years under the artistic direction of Amedeo Amodio, in 1997 the company entrusted this role to Mauro Bigonzetti, a dancer with Aterballetto from 1983 to 1993. Bigonzetti renewed the artistic identity of the company, giving it an international profile. In February 2008 he left the post of artistic director to dedicate more time to his creative projects and became Aterballetto’s resident choreographer. The role of artistic director was given to Cristina Bozzolini, a former star of the Maggio Musicale Fiorentino. Over the past 10 years Aterballetto has gained wide international recognition for its artistic productions and signature style: “The founding element of Aterballetto’s artistic identity is its commitment to supporting and developing the . . . language of dance . . . as forms in space, as an embodiment of expressive and aesthetic reverberations, and as a dialectic with music” (www.aterballetto.it). Over the years, Aterballetto has collaborated with renowned INTERNATIONAL JOURNAL OF ARTS MANAGEMENT Italian and foreign choreographers (e.g., Jiri Kylian, William Forsythe, Iztik Galili, Fabrizio Monteverde), composers, set and costume designers, and other artists. These collaborations have strengthened Aterballetto’s reputation in its milieu. Every year, several Italian and foreign theatres host Aterballetto performances (see Table 1). The company’s productions have been performed in theatres and festivals throughout Europe, North America, South America, Africa and Asia. In addition to its core artistic activity, Aterballetto engages in other activities to promote the art of the dance – for example, professional training for young dancers and teachers, workshops and seminars. These activities take place both in Reggio Emilia at the company’s premises, the Fonderia,1 and in other Italian cities. Another interesting feature of Aterballetto is the organizational structure of its corps de ballet. Aterballetto is the only Italian ballet company with a “flat” structure. In other words, it does not feature the classic hierarchical structure2; all dancers have the same status and different artistic roles are defined by the choreographer based on the characteristics of each artistic project. Today Aterballetto has 38 employees. Eleven (including the general director) work in management and administration, responsible for scheduling, promotion, tour management, training projects, accounting and communication. The other employees work in the artistic area. They include the artistic director, resident choreographer, lighting director, 18 dancers, two maîtres de ballet 3 and four technicians. Aterballetto has an annual budget of roughly US$4.2 million, of which $2.8 comes from the public coffers (the municipality of Reggio Emilia, the region of Emilia Romagna and the Italian minister of culture) and $1.4 from admission fees and the sale of shows. Methodology I n order to answer our research questions, we adopted an inductive case-based methodology (Eisenhardt, 1989; Yin, 1994). As noted by Eisenhardt (1989), case studies are “particularly well suited to new research areas” (p. 548) since they generate useful insights in providing answers to how and why questions and offer a more indepth analysis for contemporary phenomena within a real-life context. We used source VOLUME 16, NUMBER 1 • FALL 2013 TA B L E 1 NUMBER OF ATERBALLETO PERFORMANCES, BY YEAR 2010 2009 2008 2007 In Italy 96 55 33 42 Abroad 3 23 17 22 Source: Authors’ elaboration of secondary data triangulation combining different data-collection methods: in-depth, semi-structured interviews, consultation of secondary sources and direct observation. We conducted interviews with 25 members of Aterballetto (the general director, the artistic director, the resident choreographer, the two maîtres de ballet, the tour manager, the general secretary and the 18 dancers). The interviews ranged from 30 to 90 minutes in length. Interviewees were asked about their personal background, the main characteristics of Aterballetto (e.g., reputation, characteristics related to the creative process, internal dynamics), dancer management (recruitment and selection, remuneration), reasons why dancers choose Aterballetto, and factors motivating them to stay with the company or to quit (i.e., potential turnover determinants). In order to collect complementary data, before and after the interviews we analyzed secondary sources such as official documents, the company Web site and industry journals. We also interviewed four industry experts (the artistic director and general director of an important Italian ­theatre, a buyer of dance acts for German theatres and a journalist working for a prominent industry magazine). These interviews allowed us to gather external viewpoints and to gain further insight into the dance industry. Finally, we made several visits to the Fonderia, attending administrative and artistic meetings, rehearsals and official performances. The field work was carried out between November 2009 and July 2011. Aterballetto: An Organization That Attracts and Retains Creative Talent A terballetto’s 18 dancers are young professionals with an average age of 28 years. As reported in Table 2, seven of the dancers are not Italian and none is a native of Reggio Emilia. This is a consistent feature of Aterballetto: As 9 supported by the interview data, the company has always been able to attract artistic talent (i.e., dancers, maîtres de ballet, choreographers) from both Italian and foreign labour markets. TA B L E 2 Aterballetto receives about 50 résumés per year from young dancers, some from outside Europe (while conducting this study, we observed the audition of a dancer from the United States). Our interview data indicate that only 20% of applicants audition with the artistic director, the resident choreographer and the maîtres de ballet. Dancers are assessed and selected on the basis of their training, experience, technique, physical characteristics, learning capacity and curiosity. Variables The secondary data summarized in Table 2 show that Aterballetto’s dancers have a longer tenure than the industry average, which, according to our expert interviewees, is about three years. In some cases, dancers have been with Aterballetto for seven years or longer. According to the managers who were interviewed, long tenure is a distinctive characteristic of Aterballetto. Indeed, the two maîtres de ballet previously worked as dancers for the company for several years and Bigonzetti was an Aterballetto dancer for 11 years before becoming artistic director and subsequently resident choreographer. Such a long tenure has positive effects, since remaining with a ballet company for a long time allows dancers to improve their technique and to better express the signature style of the company and the choreographer. All of the evidence seems to support the idea that Aterballetto is able to attract and retain its valuable employees. Age (years) CHARACTERISTICS OF ATERBALLETTO DANCERS Number of dancers Gender Country of origin Average age (years) Male 9 Female 9 Italy 11 Other 7 22–25 7 26–28 4 29–31 4 32–35 2 > 35 1 28.2 Organizational tenure (years) Average organizational tenure (years) Professional experience (number of years as professional dancer) Aterballetto’s Attraction Factors 2 1 3 7 4 4 5 3 7 1 11 2 4.6 4–6 7 7–9 6 10–12 2 > 12 3 Source: Authors’ elaboration of secondary data All dancers stated that they had joined Aterballetto because of its resident choreographer, who has a particular artistic style and an international reputation: He has a signature style and both audience and critics easily recognize and appreciate it.4 All of the dancers stated that they wanted to join Aterballetto mainly in order to dance Bigonzetti’s choreographies and to work with him. They wished to test their talent and build their reputation within the dance industry. Working with a famous choreographer like Bigonzetti can positively affect a dancer’s career, because it enhances her or his reputation and employability within the industry. A comment by the general director supports the idea that the resident choreographer is the main attraction 10 factor: Dancers come here to work with Bigonzetti; he is our main strength. (All attraction factors are described in Table 3.) All of the dancers also referred to the important role played by Aterballetto’s reputation in their decision to join the company. According to the interviews, when submitting their résumés all of the dancers perceived Aterballetto as a highly innovative ballet company with a strong contemporary profile. These elements make it renowned in the dance milieu and contribute positively to its international reputation, as illustrated by the comments of a manager INTERNATIONAL JOURNAL OF ARTS MANAGEMENT TA B L E 3 ATERBALLETTO’S ATTRACTION FACTORS: DATA FROM MULTIPLE INFORMANTS Attraction factors Dancers (professional experience) Managerial informants Reputation of resident choreographer Dancers are attracted by our repertoire. Bigonzetti is known all over the world and his repertoire is very particular – more physical than technical. Dancers come here to work with Bingonzetti; he is our main strength. Reputation of Aterballetto Dancers join Aterballetto because it is the only Italian contemporary ballet company with an international reputation. Dancers join Aterballetto even though we have lower pay levels [than other European companies] because it is an experience that enhances their professional profile. Flat structure at Aterballetto Dancers like the idea of working in a more egalitarian environment with no permanent roles. and a dancer: Dancers join Aterballetto because it is the only Italian contemporary ballet company with an international reputation. (manager) Aterballetto is the best Italian contemporary ballet company, the only one based on a European model. (dancer) Thus, working with a prestigious company like Aterballetto can have an effect on a dancer’s career, since it can enhance her or his employability and future career prospects5: I wanted to join Aterballetto in order to enrich my professional experience, thus adding to the value of my professional profile. (dancer) Actually, the dancers are not chosen by me, the artistic director or the maîtres de ballet; dancers choose us and our company. (­resident choreographer) VOLUME 16, NUMBER 1 • FALL 2013 I wanted to join Aterballetto in order to dance with Mauro Bigonzetti. I liked his style and his choreographies. (4 years) I joined Aterballetto because Mauro Bigonzetti is the resident choreographer. He has a signature style and both audience and critics easily recognize and appreciate it. (8 years) Aterballetto is one of Europe’s most prestigious ballet companies. (4 years) Aterballetto is the best Italian contemporary ballet company, the only one based on a European model. (9 years) I liked the idea of dancing in a ballet company where all dancers are principal dancers. (5 years) I wanted to join Aterballetto because of its egalitarian structure. (7 years) Other artistic informants Mauro [Bigonzetti] has significantly contributed to attracting dancers; they send us their résumé because they want to work with one of the most renowned European choreographers. [Bigonzetti] has a unique style and an international reputation. We have a particular identity, which in my opinion is not Italian at all. I don’t believe there are Italian and non-Italian dancing styles. We are just Aterballetto. A dancer is attracted to Aterballetto because in our company all dancers are the leading actors in an artistic project they believe in and in which they perceive themselves as a fundamental component. All of the dancers also indicated that they were attracted to Aterballetto because of its “flat” structure. By joining a company composed of 18 principal dancers they expected to have more opportunities to perform different roles, thus developing their skill and creativity. They were convinced that the flat structure of the corps de ballet would provide them with several opportunities to put themselves to the test, thus contributing to their professional development. The resident choreographer supports this perception of the dancers: A dancer is attracted to Aterballetto because in our company all dancers are the leading actors of an artistic project they believe in and in which they all perceive themselves as a fundamental component. 11 Finally, all of the dancers explained that they had not been attracted by the compensation. When they submitted their applications, they were fully aware that the pay level at Aterballetto was lower than at other large European ballet companies (for instance, the Lyon Opera Ballet or Les Ballets de Monte-Carlo). Also, the interviews with other artistic personnel and with managers indicated that the extrinsic rewards offered by Aterballetto do not represent an attraction factor. Aterballetto’s Retention Factors All of the dancers stated that, while they care about Aterballetto’s success, they are much more interested in their own personal reputation, professional development and career: It is more important to be a good dancer than to be a dancer with a successful ballet company. (dancer) Moreover, all dancers stated that while they do not dismiss the possibility of leaving Aterballetto in order to join another ballet company, they will never give up their occupation. In other words, Aterballetto’s dancers show strong intrinsic motivation (i.e., devotion to dance for dance’s sake) and are more loyal to the dance community than to the organization. As a result, dancers do not consider the company’s reputation as a relevant reason for staying with Aterballetto. In accordance with such a strong focus on personal skill and knowledge development, dancers told us that, despite several constraints (e.g., low extrinsic rewards, few career opportunities), they will remain with Aterballetto because it fosters their professional growth and artistic endeavours. One dancer explained: Why do I remain with Aterballetto? Because of my desire for continuous learning, which is strongly supported by this company. Other members of Aterballetto supported this dancer’s perception. The following statement was made by one of the maîtres de ballet: At Aterballetto there are many opportunities for artistic and creative creation; this is important because it facilitates and supports dancers’ growth. More specifically, all of the dancers stated that the resident choreographer is an important retention factor. However, in contrast with what emerged in the analysis of attraction factors, dancers remain with the company not because of Bigonzetti’s reputation but because of the characteristics of his creative process. All of the dancers appreciate how he manages the creative process by developing new choreographies from the distinctive physical, technical and emotional 12 traits of each individual dancer and the corps de ballet, often leveraging improvisation and experimentation. Dancers explained that Bigonzetti’s creative process puts them to the test, supporting the development of their own creativity and sustaining their individual artistic growth, which positively affects their intention to stay with Aterballetto: The main factor that enhances individual creativity is related to the fact that we [dancers] can express ourselves in the choreographies and the choreographer allows us to do it. (dancer) (All retention factors are described in Table 4.) Moreover, all of the dancers said that they like working with Aterballetto because of its flat structure – roles are assigned based on the characteristics of each artistic project and every dancer performs a leading role at least once a year. However, some differences emerged among the dancers. Dancers with less than six years’ professional experience seem to appreciate the flat structure because it affords them opportunities to develop their talent, thus influencing their intention to remain with Aterballetto. The more experienced dancers favour the flat structure for other reasons. They indicated that this corps de ballet structure sustains an organizational culture of teamwork and collaboration. In other words, dancers with at least six years’ experience remain with Aterballetto because of its positive internal dynamics, which are supported by the flat structure. For these dancers, the characteristics of Bigonzetti’s creative process support collaborative relationships: The resident choreographer leads and encourages all of us [dancers]; he wants us to think and behave as a group. (dancer) Furthermore, the more experienced dancers appreciate the opportunity to work not only with other members of the artistic staff (e.g., resident choreographer, artistic director), but also with external artists (musicians, actors, Italian and foreign choreographers) who collaborate with Aterballetto on a temporary basis. Such collaboration contributes to the dancers’ perception of Aterballetto as an interesting and stimulating company that provides them opportunities to explore and to challenge themselves with different projects, and thus to develop a network of creative professionals. A dancer with nine years’ experience said: I like working with Aterballetto because of the people I get to work with: my colleagues [the dancers], the choreographers and the artists . . . There are many people – the artistic director, choreographers, maîtres de ballet – who perfectly manage our energy in order to produce harmony. This aspect is consistent with the two previously described elements (the characteristics of Bigonzetti’s creative process and the flat structure) and enhances dancers’ view INTERNATIONAL JOURNAL OF ARTS MANAGEMENT TA B L E 4 ATERBALLETTO’S RETENTION FACTORS: DATA FROM MULTIPLE INFORMANTS Retention factors All dancers Dancers with less than 6 years’ experience Managerial informants How the resident choreographer manages the creative process Aterballetto’s flat structure Aterballetto’s flat structure Dancers with 6 or more years’ experience Opportunity to meet, interact with and work with external artists VOLUME 16, NUMBER 1 • FALL 2013 At Aterballetto there are many opportunities for creativity. This facilitates and supports the development of all dancers. Dancers (professional experience) Working with Mauro really challenges me . . . the more I work with him, the more I improve. (4 years) The main factor enhancing individual creativity is related to the fact that we can express ourselves in the choreographies and the choreographer allows us to do it. (7 years) Other artistic informants The dancers are the “workshop” of Mauro Bigonzetti. He creates at least one new choreography every year. He’s always experimenting and doing new things. Here, everyone is an artist and all dancers could be considered principal dancers or étoiles. I’m happy working with this organization because at least once a year I play an important role in a choreography . . . I don’t know if I’d have the same opportunity in other ballet companies. (5 years) Dancers remain with Aterballetto because they appreciate it . . . you know that if you don’t have an important role in the choreography we’re performing tonight, you’ll have one in the choreography we perform next week. Aterballetto combines the characteristics of large foreign ballet companies with a positive and friendly atmosphere and attention to detail. I like working with Aterballetto because the atmosphere is informal and collaborative. We [dancers] are a harmonious group. There’s not much competition among us because we’re required to be excellent at both the individual and the group level. (9 years) Individuals have to move like a team. They are 18 dancers who have to become one entity. Dancers remain with Aterballetto because they appreciate the people they work with: the artistic director, Bigonzetti, and the other choreographers and other artists – musicians, actors and so on – who collaborate occasionally with our company. I like working with Aterballetto because of the people I have an opportunity to work with: my colleagues [dancers], the choreographers and the artists . . . There are many people – the artistic director, choreographers, maîtres de ballet – who perfectly manage our energy in order to produce harmony. (10 years) Dancers like to work on artistic projects that involve not only Aterballetto members. This way, they have a chance to meet several artists and to experience different styles and artistic languages. All these things favour a cross-fertilization process. 13 of Aterballetto as a positive environment that supports experimentation, cooperation and crossfertilization. More experienced dancers sustained this idea and explained that their decision to remain with Aterballetto is strongly influenced by the positive internal dynamics, which were not a feature of companies where they had previously worked. Finally, none of the dancers indicated that compensation is a retention factor. However, some of the interview data suggest that low extrinsic rewards could play a role in intention to leave in the case of dancers who are close to retirement. At this stage in their career, dancers are beginning to focus on how to maximize returns from their reputation and professional experience, and thus might consider quitting if they are not satisfied with their remuneration. As a result, low extrinsic rewards are perceived as a potential determinant of turnover in the long term. Discussion and Conclusions T his study has attempted to shed light on the subject of attracting and retaining valuable human resources in the performing arts, an issue that has been under-investigated. We believe that the study has produced several interesting results. Our analyses show that all dancers were attracted by the resident choreographer’s reputation, the company’s reputation and the organizational structure of the corps de ballet. In terms of retention, some differences emerged among the dancers. While all dancers appreciate how the resident choreographer manages the creative process, dancers with less than six years’ professional experience choose to stay with Aterballetto because its flat structure affords them opportunities to develop their creativity. Such a structure positively affects the more experienced dancers’ intention to stay because it also contributes to sustaining an organizational culture of teamwork and collaboration. In other words, the more experienced dancers choose to remain with Aterballetto because of its positive internal dynamics. These dynamics are sustained not only by strong interpersonal relationships with other dancers and artistic personnel but also by the opportunity to work with external artists who collaborate with Aterballetto on a temporary basis. 14 The findings suggest that some of the factors that attract dancers do not play a role in retaining them while others play different roles in the two processes. One explanation for such differences could be individuals’ different professional needs and expectations. All of the dancers were attracted by organizational characteristics that satisfied their need for skill development and reputation building. In other words, dancers want to join a ballet company if they perceive that it has particular features (e.g., if the organization itself and the resident choreographer have a good reputation) that could enhance their employability within the industry. Since dancers display such a strong need for continuous skill and knowledge development over time, organizational characteristics that help to satisfy this need (e.g., the resident choreographer’s creative process) play an important role in retention. However, since dancers may have other needs, depending on their accumulated professional experience, the more experienced dancers consider other retention factors (i.e., the opportunity to meet and work with external artists, the flat structure) that satisfy their need for networking and positive work relations. It is interesting to note that extrinsic rewards represent neither an attraction factor nor a retention factor. Despite low pay levels, dancers wanted to join the organization because they thought the experience would enhance their future professional prospects. In the long term, however, low extrinsic rewards could represent a turnover determinant for those dancers who are close to retirement. We believe our findings contribute to the literature in several ways. First, they suggest the important role that a single member of an organization plays in attracting valuable human resources, since job seekers could be attracted by the reputation of a single individual (e.g., a manager). Previous studies have investigated how corporate reputation and/or organizational reputation can affect an individual’s decision to join an enterprise, demonstrating that organizations with a good reputation are likely to receive public recognition and validating them as desirable and attractive employers (Backhaus and Tikoo, 2004; Rindova et al., 2005; Williamson et al., 2010). However, these studies have not addressed the role that the reputation of a specific member of the organization (holding an important position) might play in attracting job seekers. INTERNATIONAL JOURNAL OF ARTS MANAGEMENT The results also contribute to the literature on cultural industries in general and the performing arts in particular, which has never directly addressed how individual or organizational reputation might affect the decision of artists to join an organization (e.g., a theatre or ballet company). Previous studies have focused on the role played by reputation (at both the individual and the organizational level) in structuring consumer expectations with respect to the quality of a creative product (Acheson and Maule, 1994), affecting individual careers (Faulkner and Anderson, 1987) or determining the performance of a creative product (Delmestri, Montanari and Usai, 2005). Hence they have not investigated the role played by reputation in attracting artistic talent. Second, the finding that extrinsic rewards are not an attraction factor could contribute to the literature on HRM in the performing arts, which shows how organizations use extrinsic rewards to effectively attract the best artistic talent (Eikof and Haunschild, 2007; Haunschild, 2003). Our findings suggest that artists, in accordance with their strong intrinsic motivation and professional commitment (Jones, 1996; Menger, 1999), are attracted to organizations that are perceived to provide opportunities for skill and reputation development. In other words, artistic talent is more interested in factors that increase employability than in high pay levels. Another contribution concerns the role that the particular structure of relational patterns within an organization might play in retaining artistic talent, since the more that creative individuals perceive an organization to be characterized by positive and stable interpersonal relationships, the more likely they are to remain with the organization. One explanation could be the fact that an organization characterized by such relational patterns approaches the model of a clan (Ouchi, 1979), exploiting the advantages associated with this form of organization (e.g., reduced potential for opportunism and the development of reciprocity). Therefore, a clan-like organization might retain artistic talent since its relational structure reduces differences between organizational and individual goals, supporting the development of a sense of community and inclusion (Ouchi, 1980; Ouchi and Jaeger, 1978). Furthermore, retention of artistic talent could be enhanced by the relational patterns developed not only with members of the organization but also with external artists who VOLUME 16, NUMBER 1 • FALL 2013 collaborate with the organization in developing artistic projects. Such collaboration supports the perception of the organization as an “open place” presenting opportunities to experiment and to develop a network of professionals operating in the cultural industries. This finding is consistent with those of previous studies underlining how relational patterns developed with other industry actors can affect both individual and organizational creative performances (Montanari and Mizzau, 2007; Skilton and Dooley, 2010; Sosa, 2011). We believe it contributes to the managerial literature on the retention of valuable human resources, since previous studies on turnover and intention to stay have focused on the role played by relationships with supervisors and peers, highlighting how satisfying relationships can reduce intention to quit (Griffeth and Gaertner, 2001; Hausknecht, Rodda and Howard, 2009). However, these studies have not investigated the role played by relations developed not only with organizational members but also with external collaborators. Such relations could be a relevant retention factor, especially for more experienced employees. This study presents a number of limitations that are typical of single case studies, which trade generality for accuracy and insight into the observed phenomena (Bate, 1997). More specifically, one limitation concerns the unique setting we investigated (i.e., the dance industry in general and the Italian context in particular), which is a niche industry funded mainly by public institutions. Furthermore, we cannot exclude the possibility that specific traits of the investigated organization – the largest Italian producer of contemporary dance – might have affected how the observed process unfolded. These limitations also suggest directions for future research. For example, it would be useful to compare our results with those for organizations operating in different countries or in different cultural industries. It would be particularly interesting to analyze organizations operating in other sectors of the performing arts (e.g., theatre, music) in order to investigate the role played by the reputation of individuals (directors, orchestra conductors, etc.) in attracting and retaining artistic talent. It would also be intriguing to analyze how the characteristics of an organization’s creative processes affect the retention of artistic talent. Also, future research would benefit from an analysis of whether and how attraction factors differ from retention factors depending on organizational features (e.g., organizational size, HRM 15 practices) and the characteristics of the industry in which the organization operates. Finally, it would be interesting to adopt quantitative methodologies and analyze how different relational patterns (in terms of stability, strength of ties, etc.) that have developed within the organization or between the members of the organization and external artists affect the attraction and retention of artistic talent. Despite these limitations, the study has relevant managerial implications. For example, we can speculate on how cultural organizations in general and those operating in the performing arts in particular might attract and retain artistic talent. For instance, an organization might attract artists by leveraging those characteristics that help to satisfy artists’ need for skill development and reputation building. In other words, organizations should invest in and promote those organization-specific characteristics that positively influence an artist’s reputation and employability within the milieu. With respect to retention, organizations could seek to retain artists by attending to the different professional needs and expectations of individuals. For instance, an organization could influence intention to stay by providing artists, especially those with little accumulated professional experience, with opportunities for human capital development. Such opportunities would help to satisfy artists’ need for skill development and professional growth. For more experienced artists, organizations could foster positive and stable interpersonal relationships in order to address their need for positive work relations. Moreover, organizations should extend their organizational boundaries to enable the development of links between their artists and other professionals in the cultural industries. For more experienced artists, such opportunities might help to satisfy not only their need for positive work relationships but also their need for networks. For these artists, developing a wide professional network is important in order not only to sustain their inter-organizational mobility but also to explore new professional projects and increase their professional experience. These managerial implications can be extended to organizations operating in more traditional sectors (e.g., IT services, consultancy, R&D); such organizations could retain valuable employees without offering high levels of compensation, career opportunities or partnership qualifications but by fostering positive work relations and providing continuous opportunities for the development of human and social capital. 16 Notes 1. The Fonderia is the home of Fondazione Nazionale della Danza Aterballetto. Inaugurated in 2004, it is a prime example of architectural salvage – in this case, a foundry from the 1930s, part of an industrial complex located close to the historic centre of Reggio Emilia. 2. Ballet companies usually rank their dancers in a hierarchical fashion, including at least three levels: principal dancer (primo ballerino) and étoile (prima ballerina), soloists, and the corps de ballet. 3. Maître de ballet is the term used for ballet master (or mistress), the person responsible for dancers’ daily training. Maîtres de ballet are generally charged with teaching the daily ballet class and rehearsing the dancers for both new and established ballets in the company’s repertoire. 4. All dancers made this statement. 5. 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VOLUME 16, NUMBER 1 • FALL 2013 19 Copyright of International Journal of Arts Management is the property of International Journal of Arts Management and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. TALENT OR NOT? EMPLOYEE REACTIONS TO TALENT IDENTIFICATION I N G M A R B J Ö R K M A N , M AT S E H R N R O O T H , K R I S T I I N A MÄKELÄ, ADAM SMALE, AND JENNIE SUMELIUS In this article, we examine the effect of talent identification on employee attitudes. Building on social exchange theory, we analyze the association between employees’ perceptions about whether or not they have been formally identified as “talent” and the following attitudinal outcomes: commitment to increasing performance demands, building skills, and supporting strategic priorities; identification with the unit and the multinational enterprise; and turnover intentions. Our analyses of 769 managers and professionals in nine Nordic multinational corporations reveal a number of differences between employees who perceive that they have been identified as “talent” and those who either perceive that they have not been identified or do not know whether they have been identified. We found only limited differences between the two latter categories. Keywords: talent, talent management, attitudes, career, selection, multinational enterprises Introduction nterest in talent management has proliferated over the last decade, with the global shortage of leadership talent being touted as one of the highest HR concerns for multinational enterprises (MNEs) today (Cappelli, 2008; Guthridge, Komm, & Lawson, 2008). Consequently, MNEs have directed increasing attention to global talent management (Farndale, Scullion, & Sparrow, 2010; McDonnell, Lamare, Gunnigle, & Lavelle, 2010; Stahl et al., 2012; Tarique & Schuler, 2010), defined as “all organizational activities for the purpose of attracting, selecting, developing, and retaining the best employees in the I most strategic roles (those roles necessary to achieve organizational strategic priorities) on a global scale” (Scullion, Collings, & Caligiuri, 2010, p. 106). Although approaches vary, talent management usually focuses on a pool of employees who rank at the top in terms of performance and competencies, and are therefore considered leaders or key professionals either at present or at some point in the future (Collings & Mellahi, 2009; Lewis & Heckman, 2006). In MNEs, talent management decisions are increasingly global in that employees may be identified as “talent” or “high potentials” regardless of whether they are parent-country nationals, expatriates, or local employees Correspondence to: Ingmar Björkman, School of Business, Aalto University, P.B. 21210, FI-00076 Aalto, Finland, Phone: +358407040291, E-mail: ingmar.bjorkman@aalto.fi. Human Resource Management, March–April 2013, Vol. 52, No. 2. Pp. 195–214 © 2013 Wiley Periodicals, Inc. Published online in Wiley Online Library (wileyonlinelibrary.com). DOI:10.1002/hrm.21525 196 HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2013 working in foreign subsidiaries (Collings, Scullion, & Morley, 2007). At the core of talent management is the assumption that the “talent” must be found, segmented, nurtured, and placed in pivotal positions that are crucial for the competitive advantage of the firm (Boudreau & Ramstad, 2005). Some attention has been paid to the question of how to identify talent, and scholars have also begun to examine factors that influence whether or not someone is classified as talent (Mäkelä, Björkman, & Ehrnrooth, 2010; Mellahi & Collings, 2010). This is in line with calls for literature on HRM to shift emphasis from HR practices to include an increased focus on the human capital that constitutes the underlying resource of these practices (Wright At the core of talent & McMahan, 2011). One key issue that many MNEs management is the wrestle with is whether or not assumption that the to inform high potentials about their status after talent reviews “talent” must be have been conducted and corporate talent pools decided upon found, segmented, (Evans, Pucik, & Björkman, 2011). nurtured, and placed The differential treatment of such employees in terms of developin pivotal positions mental support or compensation can be a sensitive matter. If the stathat are crucial for tus of high potentials is not made public, this may, for instance, the competitive lead to frustration among high advantage of the performers who do not feel adequately recognized. On the other firm. hand, if talent pool membership is publicized, the motivation of those not on the list of talent may drop. While the question has been posed of whether or not to inform individuals about their possible status as talent, there is little, if any, empirical research on the extent to which firms do this, how, and why. More important, there is no research that analyzes this issue in terms of the effects this may have on the individuals themselves. This is a serious omission since employee perceptions of talent management practices and decisions are likely to influence attitudes that are important for the performance of the organization (Boxall & Macky, 2009; Wright & Nishii, forthcoming). In this article, we seek to address this research gap by analyzing the association between employees’ perceptions about whether or not they have been formally identified as “talent,” and a number of attitudes that have been associated with positive organizational outcomes in previous research, and which thus are central to effective talent management systems. Building on social exchange theory, we develop a range of hypotheses with regard to how individuals’ perception of their talent status is related to the following attitudinal outcomes: acceptance of increasing performance demands, commitment to building competencies, support of company strategic priorities, identification with the focal unit and the MNE, and turnover intent. Our analyses of 769 managers and professionals in nine Nordic multinational corporations reveal a number of differences between employees who perceive that they have been identified as talent and those who either perceive that they have not been selected or do not know whether they have been identified. Talent Identification and Employee Attitudes: A Social Exchange Perspective Social exchange theory suggests that when corporations invest in their employees, they are likely to reciprocate these corporate investments in positive ways (Cropanzano & Mitchell, 2005), providing a useful lens through which to understand the mechanisms involved in how employees interpret and react to organizational talent management practices. Within this strand of research, there are a number of different ways of conceptualizing the employee–organization relationship. An employer perspective, for example, features in research on employment modes (March & Simon, 1958), in which it is analyzed in terms of the inducements an organization offers and the contributions it expects from its employees (e.g., Guest & Conway, 2002; Tsui, Pearce, Porter, & Tripoli, 1997). The employee view of this organization– employee exchange relationship has, in turn, been extensively studied in relation to Human Resource Management DOI: 10.1002/hrm TALENT psychological contracts (Rousseau, 1995), which focuses on individuals’ perceptions of what the organization offers and what employees are obliged to contribute in return (Conway & Briner, 2002, 2005; Guest, 2004). Previous empirical studies have established a link between perceived organizational inducements and employee obligations (e.g., Rousseau, 1990; Shaw, Dineen, Fang, & Vellella, 2009; Shore & Barksdale, 1998), with individuals perceiving that when the organization has invested in the employment relationship, they have an obligation to reciprocate the investment (Cole, Schaninger, & Harris, 2002; Kuvaas & Dysvik, 2010). A related research stream—organizational support theory—has examined employee reactions to their beliefs regarding how the organization values their contributions and cares about their wellbeing (Eisenberger, Fasolo, & Davis-LaMastro, 1990). Employees interpret corporate actions, especially HRM decisions (Guzzo & Noonan, 1994; Rousseau & Greller, 1994), as commitments or support on the part of the organization, which they then reciprocate through positive attitudes and behaviors that support the attainment of organizational goals (CoyleShapiro & Conway, 2005). Building on the social-exchange perspective, we argue that talent identification, which explicitly assumes differential treatment of selected employees, is likely to be viewed by talent pool members as an indication of their employer’s commitment toward them (Meyer & Allen, 1991) and as discretionary, future organizational support (Eisenberger et al., 1990; Eisenberger, Cummings, Armeli, & Lynch, 1997). In other words, inclusion in a talent pool is perceived as a signal that the focal individual’s contribution to the organization has been valued and that the employer has fulfilled its contract by deciding to invest in his or her future career. This, in turn, is likely to lead to an internalized, normative obligation to act in a way that meets organizational goals and interests (Allen & Meyer, 1990; Lee, Liu, Rousseau, Hui, & Chen, 2011; Wiener, 1982). We therefore expect individuals who believe that they know or, in other words, perceive that they have been identified as talent Human Resource Management DOI: 10.1002/hrm OR NOT? EMPLOYEE REACTIONS TO TALENT IDENTIFICATION 197 to be more committed toward issues that are important for their employer than those who either perceive that they have not been identified or those who do not know whether they have been selected or not. Similarly, based on research into the effects of perceived psychological contract breach (or violation) on employee attitudes and behaviors (Morrison & Robinson, 1997; Zhao, Wayne, Glibkowski, & Bravo, 2007), we further expect the attitudes of those who perceive that they are not included in talent pools to differ from those of individuals who do not know whether they have Inclusion in a talent been selected. The attitudes of pool is perceived the former will be based on perceptions of unmet expectations as a signal that the and negative signals sent by the focal individual’s organization concerning its support and future investments in them. Thus, employees who do not know whether they are identified as talent are likely to be more positive toward the organization than those who perceive they have not been singled out as talent. Acceptance of Increasing Performance Demands contribution to the organization has been valued and that the employer has fulfilled its contract by deciding to invest in his or her future From the organization’s point of career. view, how employees perform in their job is of obvious importance and the performance of individuals labeled as talent is likely to be particularly important (Collings & Mellahi, 2009). Individual performance is to a significant extent an outcome of their knowledge and skills and their personal efforts. Related to the latter, in accordance with social exchange theory, we expect individuals who perceive that they have been identified as talent to be more likely to accept increasing demands to do well in their jobs. This expectation is in line with the positive relationship that was found in a metaanalysis of the relationship between perceived organizational support and employee performance (Riggle, Edmondson, & Hansen, 2009). Therefore, and although there is little existing research that specifically examines employee 198 HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2013 acceptance of increasing performance demands, the following hypotheses will be tested in this study: Hypothesis 1a: Individuals who perceive that they are identified as talent are more likely to accept increasing performance demands than those who perceive that they are not identified as talent. Hypothesis 1b: Individuals who perceive that they are identified as talent are more likely to accept increasing performance demands than those who do not know whether they are identified as talent. Hypothesis 1c: Individuals who perceive that they are not identified as talent are less likely to accept increasing performance demands than those who do not know whether or not they are identified as talent. Commitment to Building Competencies A central tenet of talent management is that corporations need to meet their future need for human capital in particular competencies needed in positions that are important for the competitiveness of the organization (Collings & Mellahi, 2009). One central strategy for meeting these needs is employee development. Applying social exchange theory, individuals who perceive that they are part of talent pools can be expected to reciprocate by building company-specific competencies by seeking out developmental job experiences (De Pater, Van Vianen, Bechtoldt, & Klehe, 2009; McCall, Lombardo, & Morrison, 1988), feedback from their colleagues, mentors, and others whose knowledge and insights they may learn from, as well as striving to develop their knowledge and skills in other ways. This tendency may be further strengthened by efforts on the part of talented individuals to maintain current perceptions about their knowledge and skills (Firfiray, 2009), with management and leadership competence development being one of the ways in which they can achieve this. Therefore, we hypothesize the following: Hypothesis 2a: Individuals who perceive that they are identified as talent are more likely to be com- mitted to building competencies than are those who perceive that they are not identified as talent. Hypothesis 2b: Individuals who perceive that they are identified as talent are more likely to be committed to building competencies than are those who do not know whether they are identified as talent. Hypothesis 2c: Individuals who perceive that they are not identified as talent are less likely to be committed to building competencies than those who do not know whether they are identified as talent. Support of Strategic Priorities Again following social exchange logic, we expect employees to differ in the extent to which they support the strategic objectives of the corporation based on whether they perceive themselves to be identified as talent. Van Riel, Berens, and Dijkstra (2009) found that organizations can support strategically aligned behaviors in workgroups by stimulating employee motivation, informing employees, and encouraging capability development. Similarly, talent management activities, such as the inclusion of a person in a corporate talent pool, that shape employee interpretations of the terms of their psychological contract (Guzzo & Noonan, 1994; Rousseau & Greller, 1994) and signal the kinds of behaviors that are desired and rewarded within the organization (Bowen & Ostroff, 2004) create stimuli that increase individual motivation to actively support the strategic priorities of the employer. We expect employees who perceive they have received talent status to draw more favorable interpretations about their psychological contract and be more likely to support such priorities. Thus, we propose the following hypotheses: Hypothesis 3a: Individuals who perceive that they are identified as talent are more likely to actively support the strategic priorities of the firm than are those who perceive that they are not identified as talent. Hypothesis 3b: Individuals who perceive that they are identified as talent are more likely to actively support the strategic priorities of the firm than are Human Resource Management DOI: 10.1002/hrm TALENT those who do not know whether they are identified as talent. Hypothesis 3c: Individuals who perceive that they are not identified as talent are less likely to actively support the strategic priorities of the firm than those who do not know whether they are identified as talent. Organizational Identification Further, we expect talent identification to have an impact on how employees identify with their employer. Organizational identification refers to the strength of an employee’s identification with the organization in which the person works, indicating a “perception of oneness with or belongingness to an organization, where the individual defines him or herself in terms of the organization(s) in which he or she is a member” (Mael & Ashforth, 1992, p. 104). Organizational identification has been found to have several positive effects for individuals and organizations (Ashforth, Harrison, & Corley, 2008). For example, if employees identify with the organization and have positive feelings about its leadership, their self-esteem and selfmotivation will be enhanced. Organizational identification also facilitates cooperation across individuals and units since employees share values and loyalties. Identification is a perception of belonging to an organization that is influenced by situational cues highlighting common interests or shared outcomes between an individual and an organization (Ashforth & Mael, 1989). However, situational cues (e.g., perceived similarity to others) do not necessarily resolve the ambiguity that can exist about organizational membership. We argue that being formally identified as talent will reduce individuals’ ambiguity about organizational membership, strengthen their perceptions of positive distinctiveness, and lead to enhanced organizational identification (Firfiray, 2009). This is consistent with research showing perceived organizational support to be positively associated with organizational identification (Edwards & Peccei, 2010). Similarly, perceptions of not being identified as talent may Human Resource Management DOI: 10.1002/hrm OR NOT? EMPLOYEE REACTIONS TO TALENT IDENTIFICATION 199 lead to views of an imbalance in the social exchange process, which in turn may induce individuals to level the playing field by reducing their attachment to the organization (e.g., Turnley & Feldman, 1998). In MNEs and other large organizations, however, employees may identify with more than one organizational entity. For instance, a manager may identify with both the corporation as a whole and/or the focal unit in where he or she is working. This has been shown to be true for managerial employees in subsidiaries (e.g., Reade, 2001a) as well as for expatriates (e.g., Stroh, Black, Mendenhall, & Gregersen, 2005). Moreover, there is evidence that subsidiary managers (Vora, Kostova, & Roth, 2007) and even expatriates from the MNE home country We expect (Gregersen & Black, 1992) may employees who identify more with the local unit than with the MNE. perceive they have Identification with the Unit. A study by Reade (2001b) received talent reveals that employee identifistatus to draw cation with the local unit and identification with the whole cormore favorable poration are driven by different sets of antecedents. Three factors interpretations about shown to lead to greater identification with the unit were the pertheir psychological ceived support of the individual’s contract and immediate supervisor, perceived opportunities for career advancebe more likely ment and fulfillment of potential within the local unit, and to support such perceptions that the individual’s priorities. nationality is not a barrier to the organizational hierarchy within both the local company and the global corporation. Building on our earlier arguments regarding positive distinctiveness and organizational support, we argue that being identified as talent sends a strong message that will serve to increase or support these perceptions in the minds of employees. Furthermore, employee identification with the local unit may be particularly strong among those perceived as talent since the talent review process in MNEs is typically carried out at different levels in the organization, with local and regional units being 200 HUMAN RESOURCE MANAGEMENT, MARCH–APRIL 2013 responsible for assessing local talent (Evans et al., 2011). Similar to the positive effect of perceived support of the immediate supervisor cited earlier, employees are therefore likely to attribute their talent status (or lack of it) to decisions heavily influenced by decision makers in the local unit. Hence: Hypothesis 4a: Individuals who perceive that they are identified as talent are more likely to identify with their unit than are those who perceive that they are not identified as talent. Hypothesis 4b: Individuals who perceive that they are identified as talent are more likely to identify with their unit than those who do not know whether they are identified as talent. Hypothesis 4c: Individuals who perceive that they are not identified as talent are less likely to identify with their unit than those who do not know whether they are identified as talent. Identification with the MNE. Reade’s (2001b) study identified two antecedents of employee identification with the MNE that are relevant for the identification of talent— support and appreciation of superiors at MNE corporate headquarters, and the opportunity for career advancement and fulfillment within the global corporation. Although decisions concerning talent identification are likely to be influenced by people at the local or regional level, being identified as talent and placed in a corporate talent pool as a result of a formal talent review process is still likely to be perceived by an individual as evidence of his or her positive distinctiveness and a clear sign of organizational support from the MNE, and provide individuals with a stronger sense of membership within the MNE. Moreover, being identified as talent may lead to more and/or better opportunities, perceived or actual, for training and development opportunities and career advancement on a global scale. Indeed, an explicit objective of the talent management systems of many MNEs is to improve the possibilities for talented individuals from units worldwide to develop an international career within the corporation. We thus hypothesize: Hypothesis 5a: Individuals who perceive that they are identified as talent are more likely to identify with the multinational corporation than those who perceive that they are not identified as talent. Hypothesis 5b: Individuals who perceive that they are identified as talent are more likely to identify with the multinational corporation than those who do not know whether they are identified as talent. Hypothesis 5c: Individuals who perceive they are not identified as talent are less likely to identify with the multinational corporation than those who do not know whether they are identified as talent. Turnover Intentions Finally, from a talent management perspective, it is crucial for the corporation to retain high-performing individuals with valuable and rare competencies. Perceptions of psychological contract breach are commonly shown to have a strong correlation with turnover intentions (Zhao et al., 2007). There is also extensive evidence that employees who perceive that they receive support from the organization are less likely to consider leaving it: a meta-analysis revealed a mean corrected correlation of –.51 between perceived organizational support and turnover intentions (Rhoades & Eisenberger, 2002). Similarly, in the context of international assignments, Lazarova and Caligiuri (2001) and Stahl, Chua, Caligiuri, Cerdin, and Taniguchi (2009) found support for a negative relationship between international assignees’ satisfaction with company support and their turnover intentions. Both studies emphasized the centrality of perceptions, arguing that employees’ intent to stay or leave the organization is influenced by their subjective perceptions of the value and usefulness of the company support available to them, rather than by an objective evaluation of the existence or effectiveness of a certain practice. This continuance commitment (Meyer & Allen, 1991) can make it psychologically more difficult for an employee to leave the organization. Human Resource Management DOI: 10.1002/hrm TALENT In line with the arguments forwarded earlier, perceptions of having been selected as talent can be viewed by employees as an indication that the employer values their contributions and has fulfilled its obligations by deciding to invest in their future development (Lee at al., 2011). Based on this reasoning, we expect that talent identification will influence employees in terms of their turnover intentions as follows: Hypothesis 6a: Individuals who perceive that they are identified as talent are likely to have lower turnover intentions than those who perceive that they are not identified as talent. Hypothesis 6b: Individuals who perceive that they are identified as talent are likely to have lower turnover intentions than those who do not know whether they are identified as talent. Hypothesis 6c: Individuals who perceive that they are not identified as talent are likely to have higher turnover intentions than those who do not know whether they are identified as talent. Method Data Collection This study is based on data collected in the context of a large-scale research project on global HRM. The first step of the entire datacollection process was to identify the largest Finnish MNEs in terms of number of employees. We also checked that the scope of their international operations was suitable for the purpose of our project. Our aim was to gain access to at least ten subsidiaries in ten MNEs, one home-country and nine foreign units (excluding representative offices), in each MNE ...