The chapter applies a human capital management lens to research on selection, assessment and turnover. It examines two core but inter-dependent HRM processes – selection and retention – in the context of the talent management research agenda. It examines the relationship between turnover and performance through a number of research lenses: the loss for valuable knowledge, skills, and abilities (the KSAO model); operational disruption and loss of important information flows; and human resource accounting for the true costs of turnover. It discusses the effect of cultural influences on predictor methods, the impact of cultural differences on retention practices and outcomes, and the use of technology for selection and retention. It calls for more study of selection and retention at the unit or firm level, the incorporation of theory from organisational strategy, and the link between investments in selection and training and the recovery of firm productivity.
Robert E. Ployhart and Jason Kautz
Dave Lepak, Kaifeng Jiang and Robert E. Ployhart
This chapter examines the nature of strategic HRM as a system and draws attention to different models that have been used to analyse this system, such as the abilities, motivations and opportunities (AMO) model, or models of the employee–organisation relationship. It lays out the rapid evolution of the field and its future trajectory. Attention is drawn to four shifts: giving more attention to the different patterns of strategic execution often seen across work groups within a single organisation; more attention to those factors that promote group work; understanding how team cognition, team diversity, team demographics, and team efficacy impact effectiveness; and understanding the linkages between these issues to explain how group-level factors help transfer the impact of organisation-level HR systems to outcomes across levels. The chapter draws attention to the importance of time in HR strategy with more longitudinal datasets, better controls for prior factors that might predispose an organisation to perform in one way versus another, and not assuming linear effects. It blends ideas from human capital theory with those from the field of strategy and a resource-based view of the firm, and how this has led to the current attention that is being given the different forms of human capital and the enabling processes that transform individual knowledge, skill, ability, and other characteristics (the KSAO model) into unique, unit-, operations- and firm-level resources.