UNIVERSITY OF GHANA 

COLLEGE OF HUMANITIES 

DEPARTMENT OF ORGANISATION AND HUMAN RESOURCE MANAGEMENT 
 

 

 

THE EFFECT OF TALENT MANAGEMENT ON ORGANIZATIONAL AND 

EMPLOYEE TASK PERFORMANCE: EVIDENCE FROM THE GHANAIAN 

BANKING INDUSTRY 

BY 

 

SELASI ABLA AWADZI (10637651) 

 

 

THIS THESIS IS SUBMITTED TO THE DEPARTMENT OF ORGANISATION AND 

HUMAN RESOURCE MANAGEMENT, UNIVERSITY OF GHANA BUSINESS 

SCHOOL, UNIVERSITY OF GHANAN, IN PARTIAL FULFILMENT OF THE 

REQUIREMENTS FOR THE AWARD OF A MPHIL IN BUSINESS 

ADMINISTRATION (HUMAN RESOURCE MANAGEMENT) DEGREE 

 
 

JULY, 2021 

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DECLARATION 

 
 

I do hereby declare that this work is the result of my own research and has not been 

presented by anyone for any academic award in this or any other university. All references 

used in the work have been fully acknowledged. 

 
 

I bear sole responsibility for any shortcomings. 

 

 
 

  JULY 30, 2012 

……………………………… …………………… 

 

SELASI ABLA AWADZI DATE 

 

(10637651) 

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CERTIFICATION 

 

I hereby certify that this thesis was supervised in accordance with procedures laid down 

by the University. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

           

          JULY 30, 2012 

…………………………...………………… ……………………………… 

PROF. KWESI AMPONSAH-TAWIAH  DATE 

(SUPERVISOR) 

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DEDICATION 

 
 

I dedicate this work to my parents of blessed memory and my entire family. 

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ACKNOWLEDGEMENT 

 

I am grateful to God for His never-failing grace, strength and faithfulness throughout this 

study. I wish to express my sincere gratitude to my lecturer and supervisor, Prof. Kwesi 

Amponsah-Tawiah for his wise counsel, guidance, understanding and encouraging words 

throughout this study. 

I am most grateful to my family for their support in divert ways. And finally, my gratitude 

to Sena Kunateh Abubakar and Setronam Tamakloe for their immense help through the 

study, I am indebted to them 

 

 

 

God bless you all! 

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TABLE OF CONTENT 

 

 

 

 
DECLARATION................................................................................................................ i 

CERTIFICATION ............................................................................................................ ii 

DEDICATION.................................................................................................................. iii 

ACKNOWLEDGEMENT ............................................................................................... iv 

TABLE OF CONTENT .................................................................................................... v 

LIST OF TABLES ............................................................................................................ x 

LIST OF FIGURES ......................................................................................................... xi 

LIST OF ACRONYMS .................................................................................................. xii 

ABSTRACT ..................................................................................................................... xii 

CHAPTER ONE ............................................................................................................ xiii 

INTRODUCTION............................................................................................................. 1 

1.1 Background of the Study .......................................................................................... 

1.2 Statement of the Problem ..................................................................................... 23 

1.3 Research Objectives ............................................................................................. 25 

1.4 Research Questions............................................................................................... 26 

1.5 Research Hypotheses .............................................................................................. 6 

1.6 The Ghanaian Banking Industry ........................................................................... 27 

1.7 Significance of the Study ...................................................................................... 31 

1.8 Chapter Disposition ........................................................................................................ 32 

CHAPTER TWO ............................................................................................................ 33 

LITERATURE REVIEW .............................................................................................. 33 

2.0 Introduction .......................................................................................................... 33 

2.1 Definition of Key Concepts .................................................................................. 33 

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2.1.1 Talent ................................................................................................................. 33 

2.1.2 Talent Management ........................................................................................... 35 

2.1.2.1 Talent Management Practices ......................................................................... 40 

2.1.2.2 Talent Management and Human Resource ..................................................... 47 

2.1.2.3 Talent Management in Ghana ......................................................................... 51 

2.2.1 The Concept of Performance ............................................................................. 54 

2.2.2 The Concept of Organisation Performance ....................................................... 55 

2.2.3 The Concept of Employee Task Performance ................................................... 56 

2.3 Theoretical Framework: Resource-Based View Theory (RBV) .......................... 57 

2.4 Empirical Review ................................................................................................. 60 

2.4.1 Talent Management and Employee Task .......................................................... 60 

2.4.2. Talent Management and Organisational Performance ..................................... 61 

2.4.3 Talent Management Practices in the Ghanaian Banking Industry..................... 63 

2.4.4 Challenges Talent Management Practices in the Ghanaian Banking Industry 64 

2.5 Conceptual Framework ......................................................................................... 66 

CHAPTER THREE ........................................................................................................ 67 

METHODOLOGY ......................................................................................................... 67 

3.0 Introduction .......................................................................................................... 67 

3.1 Research Philosophy ............................................................................................. 67 

3.2 Research Approach ............................................................................................... 71 

3.3 Research Design ................................................................................................... 72 

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3.4 Study Area ............................................................................................................ 73 

3.5 Population ............................................................................................................. 73 

3.6 Sampling Technique ............................................................................................. 74 

3.7 Data Source ........................................................................................................... 75 

3.8 Data Collection Procedure .................................................................................... 75 

3.8.1 Instrumentation .................................................................................................. 75 

3.8.2 Description of Measure Scale/Variables ........................................................... 75 

3.9 Pilot Study ............................................................................................................ 76 

3.10 Data Collection Procedure .................................................................................. 77 

3.11 Selection Criteria ................................................................................................ 79 

3.11.1 Inclusion Criteria ............................................................................................. 79 

3.11.2 Exclusion Criteria ............................................................................................ 79 

3.12 Data Analysis ...................................................................................................... 79 

3.13 Ethical Consideration ......................................................................................... 81 

CHAPTER FOUR ........................................................................................................... 83 

DATA ANALYSIS AND RESULTS PRESENTATION ............................................ 83 

4.0 Introduction .......................................................................................................... 83 

4.1 Quantitative Findings ......................................................................................................................... 83 

4.1.1 Demographic Details of the Respondents .............................................................................. 83 

4.1.2 Missing Value Analysis ............................................................................................... 85 

4.1.3 Exploratory Factor Analysis (EFA) ............................................................................. 86 

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4.1.4 Skewness and Kurtosis ..................................................................................................................... 8 

4.1.5 Structural Equation Modelling Results ....................................................................................... 8 

4.1.5.1 Measurement Model Assessment .......................................................................................... 87 

4.1.5.2 Correlation Matrix of the Study Variables .......................................................................... 91 

4.1.5.3 The Validity and Reliability Analysis of (CFA) Measurement Model ...................... 92 

4.1.6 Validation of the Structural Model ............................................................................................ 93 

4.1.7 Test of Hypothesised Relationships ......................................................................................... 95 

4.2 Findings from the Qualitative Data ...................................................................... 97 

4.2.1 Talent Identification in Organisations ..................................................................................... 97 

4.2.2 Organisation’s Philosophy of Talent Management and Policy Document .................. 98 

4.2.3 Talent Management Programmes and Policy Document ................................ 99 

4.2.4 Impact of Talent Management on Task and Organisational Performance ............. 101 

4.2.5 Talent Management Practices in the Ghanaian Banking Industry .............................. 103 

4.2.6 Challenges of Managing Talent in the Ghanaian Banking Industry ............................. 88 

CHAPTER FIVE .......................................................................................................... 107 

DISCUSSION, CONCLUSION AND RECOMMENDATION ................................ 107 

5.0 Introduction ........................................................................................................ 107 

5.1 Discussion ........................................................................................................... 107 

5.1.1 Talent Management and Task Performance ....................................................................... 108 

5.1.2 Talent Management and Organisational Performance ................................................... 109 

5.2 Summary of the Research Findings .................................................................... 110 

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5.2.1 Research Objective One .................................................................................. 111 

5.2.2 Research Objective Two .................................................................................. 112 

5.2.3 Research Objective Three ................................................................................ 112 

5.2.4 Research Objective Four ................................................................................. 112 

5.3 Conclusion .......................................................................................................... 114 

5.4 Contribution to Practice ...................................................................................... 114 

5.5 Contribution to Policy ........................................................................................ 115 

5.6 Study Limitations and Suggestions for Further Studies ..................................... 115 

REFERENCES .............................................................................................................. 117 

APPENDIX A ................................................................................................................ 142 

APPENDIX B ................................................................................................................ 147 

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LIST OF TABLES 

 
 

Table 3.1: Results of Pre-test ............................................................................................ 77 

 

Table 4.1: The Demographic Details of the Respondents ................................................ 84 

 

Table 4.2: Summary of Test Results for EFAnalysis of the Study Variables ................... 86 

 

Table 4.3: Skewness and Kurtosis of the Study Variables ............................................... 87 

 

Table 4.4: Model Fit Measures and their Interpretations of the Measurement Model ..... 89 

 

Table 4.5: Pearson’s Correlation Matrix of the Study’s Variables ................................... 91 

 

Table 4.6: Validity and Reliability Analyses for (CFA) Measurement Model .................92 

 

Table 4.7: Fornell and Larcker (1981) Procedure for Discriminant Validity ................... 93 

 

Table 4.8: Model Fit Measures and their Interpretations of the Measurement Model ..... 93 

 

Table 4.9: Path Relationships for the Hypothesised Relationships .................................. 95 

 

Table 4.10: Respondents Demographics ........................................................................... 96 

 

Table 4.11: Objectives and Themes of the Study ............................................................. 96 

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LIST OF FIGURES 

Figure 2.1: Broader Classification of Talent Management Practices ............................. 42 

Figure 2.2: Conceptual Framework .................................................................................. 66 

Figure 4.1: The Initial Measurement Model (CFA) with Unstandardized Loadings ....... 90 

Figure 4.2: Final Measurement Model (CFA) Showing Standardised Loadings ............. 90 

Figure 4.3: The Final Structural Model ............................................................................ 94 

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LIST OF ACRONYMS 

 

BOG Bank of Ghana 

 

CIPD Chartered Institute of Personnel and Development 

EFA Exploratory Factor Analysis 

HR Human Resource 

 

TM Talent Management 

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ABSTRACT 

 

 

The study broadly examines the effect of talent management practices on employee task 

performance and organisational performance in the Ghanaian banking industry. The 

research design adopted was the convergent parallel mixed-method research design. The 

survey sample size was 250 gathered from a self-administered structured questionnaire for 

the quantitative data and five interviewees using an interview guide for the qualitative data. 

Structural Equation Modelling (SEM) was used to analyse the quantitative data and 

thematic data analysis was adopted to analyse the qualitative data of this study. 

 

The results showed that there is a significant positive relationship between talent 

management and organisational performance, and a meaningful relationship between talent 

management and task performance. In addition, the qualitative data analysed indicated that 

talent management impacts positively on task and organisational performance. These 

findings were discussed in relation to extant literature and conclusions were drawn. 

Recommendations were then made in relation to policy, practice and areas for further 

research. 

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CHAPTER ONE 

 

 

INTRODUCTION 
 

1.1 Background of the Study 

 

According to Gelens, Dries, Hofmans and Pepermans (2013), Iles (2013), Iles, Chuai and 

Preece (2010), Tansley (2011), Tansley, Kirk and Tietze (2013) and Ulrich and Smallwood 

(2012), there are different definitions of talent in various organisations, positions, and 

industries. The definition of "talent" can also vary between organisations, or within the 

same organisation over time (Lewis & Heckman, 2006). Many organisations seek to map 

individuals across the organisation in terms of performance and potential, and it is those 

who are identified as high performers with high potential who are most often the focus of 

talent management (TM). Gupta and Aggarwal (2012) asserted that most organisations 

define talent in reference to high potential people who are demonstrating some potential 

to progress in the organisation at any given point in time. 

CIPD (2012) described talent as the personal qualities of those individuals who can make 

a difference to organizational performance either through their immediate contribution or, 

in the longer-term, by demonstrating the highest levels of potential. Talent is associated 

with general and contextually relevant competence as a foundation for successful employee 

performance and organizational competitiveness (Brown & Tannock, 2009). Talent mostly 

includes the competence that is central to individual employability and may be defined 

as a critical skill set, which has become difficult to obtain in the labour market. DEA 

(2009) defines talent as an individual with unique competencies. In a 

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business or other context, these competencies are of strategic importance to the 

organisation. Therefore, the absence of these competencies would pose an actual situation 

of crisis for the organization. 

In practice, people implicitly have an understanding of who the 'talents' of their 

organization are. Most organizations that make a distinction between groups of employees 

tend not to label a specific group as 'talents'. The most commonly mentioned distinctions 

in the literature refer to so-called 'high-potentials' and 'high-performers' or some 

combination of both (e.g., Blass, 2007; Tansley, 2011). High-potential employees might, 

for instance, be defined as employees who have the ability, engagement, and aspiration to 

become future leaders of the organization. High-performing employees are those who have 

already shown these kinds of attitudes, skills, and behaviours (Wang- Cowham, Kamoche, 

Tansley, & Iles, 2012). 

The human resource management field has become very crucial, because it is considered 

as the main factor behind the organizational profit generation, market share growth, 

innovation, productivity, creativity and employees’ work effectiveness. Organizations 

count on their labour force to reach their objectives and goals in the market (Yarnall, 2011). 

Talents are considered as organizational assets that help in achievement of organisational 

goals (such as mentioned above) (Tansley, 2011). 

For this study, the definition of talent by Goffee and Jones (2007) will be adopted. This 

study defines talented as any worker who is capable of using his or her abilities such as 

ideas, knowledge, cognitive ability, skills, and potential to contribute to the overall 

performance of the organisation, and supplement other resources that are available in the 

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organisations (Goffee & Jones, 2007). This definition was chosen because it captures 

both the practical and cognitive ability of any worker. 

 
 

Lewis and Heckman (2006) pointed out that it is challenging to identify a precise meaning 

of talent management, because of its confusion regarding definitions of terms used, and 

differences in assumptions made by authors who write about the issue. Dhanabhakyam and 

Kokilambal (2014) agree with this assertion and added that the lack of a comprehensive, 

systematic and detailed framework makes it challenging for both practitioners and scholars 

to understand the whole concept of TM and explore similarities and differences between 

organizations; hence, they define the term to suit their requirements. It is challenging to 

define talent management because of confusion surrounding the concept, stemming from 

the interchangeable use of the term talent management, succession planning, and human 

resources planning. While all three terms focus on directing employees, there are subtle 

differences between the concepts (Tetik, 2016). Therefore, in presenting a definition of 

TM, it is necessary first to develop an understanding of what TM encompasses by 

discussing some of the attributes commonly used to characterize it. Literature classified 

TM into two categories: management of talent focuses on how organisations can attract, 

recruit, retain, and reward high performers, whiles the talented individuals concentrate on 

what constitutes talent and behaviour of talented individuals. Lewis and Heckman (2006) 

suggest that TM comprises three different conceptions: a) a collection of typical human 

resource department practices; b) the flow of human resources throughout the organization; 

and c) sourcing, developing and rewarding employee talent. 

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Talent management is the implementation of integrated strategies or systems designed to 

increase workplace productivity by developing improved processes for attracting, 

developing, retaining, and utilizing people with the required skills and aptitude to meet 

current and future business needs (Lockwood, 2006). TM is a meaningful, shared, 

conscious, and deliberate approach undertaken to attract, develop, and retain people with 

the aptitude and abilities to meet the defined current and future organizational needs in 

terms of capability, behaviour, attitude, knowledge, and style. TM refers to an 

organization's effort to attract, select, develop, and retain talented key employees (Stahl et 

al., 2007). Guthridge, Komm and Lawson (2008) suggested that TM is in three main stages, 

namely talent recruitment, talent development, and talent retention. TM is the additional 

management process and opportunities that are made available to people in the organization 

who are considered to be “talent'" (Blass, 2008). Mudoli (2008) defines TM as the 

implementation of integrated strategies or systems designed to increase workplace 

productivity by developing improved processes for attracting, developing, retaining and 

utilizing people with the required skills and aptitude to meet current and future business 

needs. In the broadest sense, TM is the strategic management of the flow of talent through 

an organization aligned to the right people with the right jobs at the right time based on 

business priorities (Paquet & Rogers, 2008). 

 
 

CIPD (2012) defines talent management as the systematic attraction, identification, 

development, engagement, retention, and deployment of those individuals who are of 

particular value to an organization, either given their 'high potential' for the future or 

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because they are fulfilling business/operation-critical roles. It can also be defined as a 

holistic and strategic approach to human resources and business planning. This study 

adopts the definition of CIPD (2012). TM can similarly be viewed as a new way to increase 

organizational effectiveness through strategic management of human capital. Its first goal 

is to improve the potential of employees who are seen as able to make a valuable difference 

for the organization, now or in the future. The other goal is to satisfy the employee and 

make them enjoy working in a job that suits their skills and competencies. TM is aimed at 

the systematic attraction, identification, development, engagement/retention, and 

deployment of high potential and high performing employees to fill in key positions that 

have a significant influence on the organisation's sustainable competitive advantage. A 

summarized definition of talent management is a process that starts from attracting the 

employees to managing and retaining them in the organisation (Collings & Mellahi, 2009; 

Berger & Berger, 2004; Schiemann, 2014). 

Dries (2013) states that many scholars fail to define "which specific practices fall under the 

TM label". Talent management is associated with a set of typical Human Resource 

Management /Human Resource Development practices or functions such as recruitment, 

training, and development (Heinen & O’Neill, 2004). According to Fegley (2006), TM 

practices involve four main activities: recruitment, performance management, leadership 

development and organizational strategy. Figliolini et al. (2008) identifies four activities in 

the practice of TM, which are identifying, selecting, developing, and retaining the best 

employees, as well as building their potential for the most strategic positions, and assisting 

them in formulating the best use of strengths in order to gain their engagement and 

contribution, which ultimately contribute to organisational benefits. According to 

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Mehta (2011), the practice of TM involves five core components: strategic workforce 

planning, total talent acquisition, employee development, performance management and 

succession planning. Talent management practices are aimed at improving employee 

benefits, employee engagement, competence compensation, and learning and 

development; and instruments for measuring the outcome of talent management are 

absenteeism, turnover, and productivity (Mudoli, 2008). Several approaches of TM have 

been outlined, and the assimilated approach involves the processes of planning for the 

workforce, talent recruitment, development, talent retention, and succession plan. The 

key strategies of organizations that adopt this approach in terms of policies include 

performance management, leadership development, creativity participation, human capital 

succession, and workforce management. Highly sophisticated strategies guide these 

activities as talent management has become a top priority in businesses across the globe 

(Mahmoud, 2019). Talent management practices are aimed for business results like 

business or financial performance of an organization and work force results like skill 

development and professional development for the workforce (Hoglund, 2012). 

Organizations generally don’t have a clear understanding about how talent management 

strategy supports business strategy (Wellins, Liu, & Qiuyong, 2010). Tansley, Harris, 

Stewart and Turner (2006) added that the main barrier could be that strategy making in 

areas of HR are limited generally, usually being done for operational, not strategic reasons. 

Organizations seek the right measures of validating TM initiatives to weight the impact on 

their business because of increasing focus on talent management strategies. The majority 

of organizations fail to properly measure the outcomes of their HR development 

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initiatives. Data analysis plays an important role in prompting business decisions, yet most 

organizations are still pursuing traditional workforce procedures, such as headcount, 

turnover and cost-based metrics resulting in limited use of meaningful talent analytics 

(Becker & Beatty, 2005). However, few organizations have pursued the metrics that matter. 

Without metrics it is almost impossible to know which practices are working and how to 

improve them (Wellins, Liu, & Qiuyong, 2010). According to Lockwood (2006), talent 

management metrics are evolving; however, many firms are beginning to include talent 

management in their dashboards or scorecards. For example, HSBC, a banking and 

financial services institution, uses the Balanced Scorecard with talent management listed 

under “learning and growth”. Morton (2005) argues that scorecards provide a clear "line 

of sight" to organizational strategic goals by linking talent management to objectives and 

performance appraisals. Measures may include factors such as employee survey results, 

turnover (e.g., talent pools) and the number of employees on temporary assignments. 

This challenge poses the question of whether managers have access to data and are 

motivated to use these data capably in order to monitor progress and communicate the 

strategic intent of talent management initiatives (Becker & Beatty, 2005). Wellins, Liu, and 

Qiuyong (2010) are of the view that frontline leaders in many organizations are not 

competent in applying talent management tools and processes. They fail to select and 

develop talent, which is the most critical job for leaders. Again, they contend that most 

organizations lack an accurately assessed pool of ready talent, which is critical to 

effectively promoting the right people into critical leadership positions. Hejase et al. 

(2012a), in their research on Lebanese institutions, report that most companies are applying 

some  components of talent management, but not together in an integrated 

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manner. As with all human resource strategies, a talent management programme should be 

an integral piece of an organization’s human resource agenda, and must align with the 

company’s vision, culture and overall strategy. The Human Capital Institute and Hewitt 

Associates (2008) assert that companies still lack the ability to integrate TM programmes 

and assess the return on their talent investments, with most managers lacking the necessary 

capability to effectively develop talent. Most companies hold their executives and 

managers accountable for achieving business results, but not for talent development; hence, 

a lack of accountability and capability for talent development (Wellins, Liu, & Qiuyong 

2010). These researchers assert that there is inconsistent execution and integration of talent 

programmes although the majority of organizations have essential processes for TM, such 

as basic workforce planning, development programmes for high potential employees, and 

succession planning. Very few constantly execute such programmes across the whole 

organization. 

A study by Swailes (2013) shows how different ethical frameworks can be used to analyse 

elitist approaches to talent management, and the researcher made the assertion that growing 

literature on talent management is silent in relation to the ethical issues confronting 

organisations that operate talent programmes. The study further stated that the exclusive 

approach of TM, which is the practice of regarding a small group of employees as having 

special potential, is problematic because doing so can be seen as a dehumanising act in 

relation to others. Again, some employees may be unconcerned that they have not been 

selected for a talent programme as they do not see themselves as future leaders; some may 

nevertheless feel excluded. The excluded may feel they are inferior and that the 

organisation expects less of them resulting in negative emotional 

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states and underperformance. If the excluded feel marginalized, then there is an ethical 

problem. This approach poses the danger of increasing the psychological distance and the 

level of abstraction between the talented and the excluded. Praising one group, (managerial 

elite of presumed high-performing and high-potential employees) as ‘stars’ for their 

contribution while downplaying the contributions of others enhances the potential for 

division (Pfeffer, 2001). 

This segmentation nature of TM may discourage, de-motivate, frustrate and cause 

dissatisfaction and jealousy of those employees who are not in the talent pool, resulting in 

lower productivity or increased turnover (Bothner et al., 2011). It promotes inequality, 

making it a sensitive matter (Gelens et al., 2013), and exclusion from the TM pool could 

be interpreted as inferior, which might lead to lower self-efficacy (Iles, 2013; Swailes, 

2013). Hence, Iles (2013) poses the question as to whether TM impacts team contribution, 

whereas Larsen et al. (1998) stresses that the talent label may lead to arrogance and 

complacency (p. 303). Apak and Kurban (2013) are of the view that the real challenge is 

not about working on enriching and increasing employees’ talents, rather it is in the 

insufficiency of talents in the market workforce supply. The challenge appears in the fact 

of finding and discovering employees’ talents and applying appropriate tools to keep up 

with these talents. Firms tend to recognize the importance of talent management; however, 

they often fail to manage it effectively (Scullion et al., 2007; Schuler et al., 2011; Collings 

et al., 2011). The convergence of principles and practices is also evident, but firms must 

adopt "best practices" in light of their particular contexts. "Best practices" are a start, but 

ultimately each organization must adopt TM practices that reflect "best fit". Executing 

unique TM processes enables companies to gain a 

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competitive edge and allows them to meet or exceed their customers' expectations. Talent 

management is likely to be a challenge for organizations in all the major economies right 

across the world, with recent research suggesting that talent management challenges may 

even be more acute in the emerging markets (Yeung et al., 2008; Tymon et al., 2010; 

Vaiman & Holden, 2011). Having talented individuals on the payroll is one thing; 

leveraging their capabilities to secure competitive advantage is another (Lawler, 2009). 

According to Project Management Institute (2013), talent management practices benefit 

both the individual and organization, which are interconnected in nature. Talent 

management alignment to organizational strategy has a clear impact on the success of 

projects meeting their original goals and business intent. Organizations in which talent 

management is aligned to organizational strategy have an average project success rate of 

72 per cent, while organizations in which talent management is not effectively aligned to 

organizational strategy have an average project success rate of 58 per cent. The difference 

of 14 percentage points in project success rates equates to risking 50 per cent more project 

money when talent management is not effectively aligned with strategy. 

Schuler et al. (2011) believes that talent management strategies help develop employees’ 

knowledge and know-how so as to gain a competitive advantage. Talent management 

provides organizations with a high level of attainment and human capabilities and 

distinguished workforce (Meyers & Van Woerkom, 2014). It is also verified as an effective 

tool that achieves employees’ satisfaction, retention, engagement and organizational 

profits (Bethke-Langenegger, Mahler & Staffelbach, 2011). Talent management is an 

important aspect in building and maintaining strategic planning for organizations, ensuring 

survival and acquisition of a market competitive advantage 

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(Tansley, 2011). TM has been found to lead to higher job satisfaction (Collings & Mellahi, 

2009; Mensah, 2015), affective commitment (Chami-Malaeb & Garavan, 2013; Gelens et 

al., 2015), higher retention rates (Bhatnagar, 2007; Hughes & Rog, 2008) and better 

employee performance (Gelens et al., 2014; Luna-Arocas & Morley, 2015). TM can 

reduce expenses and labour costs and improve competitiveness (Jackson et al., 2009) and 

business performance (Yapp, 2009; Ulrich & Allen, 2014). Organisations that apply talent 

management practices demonstrate significantly higher financial performance compared 

to their industry’s peers. This is evident in their sales revenue and productivity (Steinweg, 

2009), Net Profit Margin and Earnings Before Interest, Depreciation, and Amortization 

(EBITDA), Return on Assets and Return on Equity, or Return on Shareholders‟ Value and 

Market Value (Rabbi, Ahad, Kousar, & Ali, 2015). It is the only talent management practice 

that gives the sustained competitive advantage in the market by organization attraction, 

development, motivation, management and reward the talent (Heimen & Colleen, 2004). 

TM helps employees achieve their best individual potential, concurrently helping the 

business respond to challenges, enter new markets, and move ahead of the competition. An 

organization with a talented work force can attain a public reputation of being a great place 

to work at; a fact that promotes faithfulness among its current employees (Hengst, 2007). 

According to Amble (2008), organizations with a strong talent management culture 

positively influence the rate of workers’ pride in their organizations and the willingness 

to recommend it as a worthy place of work. Amble (2008) made a further assertion that 

employees who have trust in their companies' talent management practices have more 

favourable attitude toward their management because these employees believe their 

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leaders have effectively managed the workload and that senior management have 

demonstrated that employees are important to the success of the company. Therefore they 

feel they are job secured, satisfied with job training, and feel that evaluation is fair; thus, 

having a better feeling of personal achievement. 

According to Ballesteros and Inmaculada (2010), organization success with the help of 

talent management is anchored in three factors: development and reward plan, creation of 

set of career paths for the talented employee. This will help in ensuring the high quality 

work in the organization, which will ultimately result in superior performance. 

The talent management process helps to build competencies, skills and career plans, 

maximize contribution, and make preparation for advancement or transitioning to 

retirement. In addition to contributing to the effective recruitment and retention of 

employees, an organization’s talent management strategy also contributes to employee 

engagement (Hughes & Rog, 2008). Talent management practices reap benefits like 

meeting common talent challenges, implementing career paths, and reducing 

communication challenges (Project Management Institute, 2013). Talent management 

allows an organization's senior management to focus on employee potential and identify 

current and future career needs, highlighting not only the career aspirations, but 

contributing to the organization through mentoring and knowledge transfer. Talent 

management systems are deployed to elicit desired role behaviours among the 

organization’s talent pool and assist in realizing the organization’s goal (Lepak & Shaw, 

2008). Talent management, if given the proper development of skills and increased 

responsibility to focus on an employee‘s potential, will result in an employee’s future 

performance (Hamid, n.d.). According to Dhanabhakyam and Kokilambal (2014), talent 

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management strategies develop innovation capability and achieve a high level of 

performance. The talent management exercise adds rigor and structure for a more 

meaningful discussion with superiors; and an executive talent management process creates 

an opportunity to connect with executives about their interests, and enables better support 

in their career development. Managers practicing talent management get to know 

executives’ needs, aspirations, willingness, and readiness for new challenges. It also 

helps support succession planning and ensures that executives are well placed in their 

current roles. Talent management enables the public service to keep and attract skilled 

leaders. Robust and progressive talent management will better equip the public service to 

have the right people, in the right place at the right time (Public Service Secretariat - 

Government of Newfoundland Labrador, 2008). Talent management meets the demands 

that are associated with increased complexity and uncertainty. To achieve sustainable 

success, an organization should align these processes with its business strategies (Nilsson 

& Ellström, 2012). A significant body of strategic HRM literature has pointed to the 

potential of human resources as a source of sustainable competitive advantage (Becker & 

Huselid, 2006), and argued that the resources and capabilities that underpin firms' 

competitive advantage directly tie to the capabilities of talented individuals who make up 

the firm's human capital pool (Cheese, Thomas, & Craig, 2007; Wright, McMahan, & 

McWilliams, 1994). Although a review of the literature shows that talent management is 

a growing field, the effectiveness of talent management and its added value have still not 

been accurately stated. 

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Talent management focuses on the manpower or workforce that constitutes the necessary 

skills and knowledge of employees. In recent times talent management has been shown to 

be a global challenge as far as employee performance, and organizational performance is 

concerned (Mahmoud, 2019). Using the psychological-contract theory as a lens, Hoglund 

(2012) suggested that talent management is employee perceptions of the extent to which 

talent qualities are rewarded, and such opinions have an effect on employee-felt obligations 

to develop skills. The relationship between talent management and employee task 

performance can be explained using three key components: capacity, commitment and 

alignment. The three elements are considered fundamental and should be embedded in an 

organisation’s talent management strategy (Deloitte, 2004). By putting much emphasis on 

these three elements, business organizations can generate capacity, commitment, and 

alignment in the key workforce divisions; thus, it results in improved employee tasks and 

business performance. Effective allocation of resources and technologies plays a vital role 

in the way business organizations are organized and able to extract optimal performance 

from employees. An effective talent management strategy is critical in the discovery and 

development of talented employees in the workforce market. Talent management strategies 

provide significant empowerment, and ensure that employees engage both their mind and 

heart, thus becoming loyal and approaching their work with full enthusiasm. Talent 

management strategies ensure that employees are comfortable and able to execute their task 

requirements effectively, thus resulting in the positive development of business 

organizations (Mahmoud, 2019). 

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According to researchers, there is no standardized or unified definition for performance 

and it is a multidimensional concept (Ghalem, Okori, Chroqui & Semma, 2016). 

Samsonowa (2012) defines performance as the level or degree of goal achievement of an 

organization/department rather than of individuals. According to Samsonowa (2012), all 

the different definitions have one common characteristic related to two terms; effectiveness 

and efficiency. The degree of a goal attainment is indicated by effectiveness, and 

efficiency shows of the resources that were consumed to reach the level of achievement. 

Ghalem, Okori, Chroqui and Semma (2016) disagreed that performance should be 

progressive stages towards the final goal; instead performance should be about achieving 

the overall goal. Ghalem, Okori, Chroqui and Semma (2016) therefore defined three levels 

of performance where at level 1, which is the under- performance level, the company is 

going through a process to achieve its pre-defined goals and trying to reach them. Level 2 

is the performance level and it is the stage where the company successfully achieves its 

pre-determined goals. Level 3 is the excellence level and at this level the company has 

exceeded expected results and got better results. Performance can therefore be defined as 

the goal achievement of an organization rather than of individuals, with the minimum 

resources consumed to reach the goal (Ghalem, Okori, Chroqui and Semma, 2016). Otley 

(2001) analysed performance in the context of a business or public sector and 

propounded the three ‘E’s’ of performance, namely effectiveness (delivering desired 

outputs, and even outcomes), efficiency (using as few inputs as possible to obtain these 

outputs), and economy (buying inputs as cheaply as possible). According to Varma, Pawan 

Budhwar and DeNisi (2008), the definition of performance and the management of 

performance can change due to the culture of each 

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country therefore the mechanisms to evaluate and manage performance must be designed 

to suit the local context. Performance is a multidimensional influence by context therefore 

a single definition is a challenge because it is a changeable nature depending on the context 

(Ghalem, Okori, Chroqui & Semma, 2016). 

 
 

According to Muogbo (2013), organisational performance is aimed at ensuring 

achievement of organisational goals and objectives. An organisational performance is 

considered to be the process that focuses on enhancing the effectiveness of the operations 

and how employees aid in achieving the organization’s vision. According to Zablah, 

Franke, Brown and Bartholomew (2012), task performance “is the extent to which an 

employee contributes to organisational effectiveness given the expectations associated with 

his/her work role” (p.25). 

Moreover, research dealing with talent management strategies and organisational 

performance is somewhat lacking; the question has not yet been answered as to whether 

deciding upon the right approach would achieve the desired impact on organisational 

performance (Lawler, 2008). As a result, there is a great need for empirical research to 

investigate the dynamics and impact of talent management strategies. It has to be 

acknowledged that the research that exists is mostly confined to the USA, raising the 

question as to the extent to which talent management influences organisational 

performance in other labour market structures or cultures (Tarique & Schuler, 2010). Many 

surveys illustrate that HR leaders and business executives rate talent management as their 

top people issue, believing it has a very high impact on business performance (Reilly, 

2012). 

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Findings by Mensah (2016) revealed that talent management does not only lead to positive 

performance but also reduces counterproductive behaviours. This is because the 

implementation of talent management will lead to employee performance in terms of core 

job functions, contextual behaviours, as well as creativity and innovativeness, concurrently 

reducing negative behaviours at work. The findings also support the view that when 

organisations invest in TM practices, talented employees will compensate the organisation 

with performance because investment in TM practices sends a signal to employees in the 

talent pool to perform. 

 
 

The banking industry of Ghana, which is an umbrella under the service sector, remains 

the most significant contributor to GDP in the country, holding 46.3 per cent of economic 

activities (Ghana Statistical Service, 2019). Ghana’s banking industry entails a national 

system of licensed and statutory financial organisations involved in the business of banking 

regulated under the banking laws of Ghana. The banking sector is governed by laws of 

Ghana, and it is regulated by the Bank of Ghana. In 2002, the Bank of Ghana Law 1992 

(PNDCL 291) was substituted by the Bank of Ghana Act (2002) (Owusu- Antwi, Banerjee 

& Antwi, 2017). The Banking Act 2004 (Act 673) was passed in 2005 to replace the 

banking law 1989 with the aim to fortify its risk based on sensible supervision policies 

(Monetary and Capital Markets and African Departments, 2011). The introduction of 

Banking Act 2004 (Act 673) aided in setting up international financial services in Ghana; 

for instance, a local subsidiary of Barclays Bank was granted license to start business as 

an off-shore bank (Kovanen, 2011). In 2007, the Banking Amendment 

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Act 2007 (Act 738) and Credit Reporting Act 2007(Act 726) were passed to provide total 

legislative transformation targeted at developing a robust banking industry in Ghana (BOG 

Report, 2007). Significant and rapid changes in the financial system in the recent past has 

necessitated the promulgation of new laws and regulations, and one of such is the Banks 

and Specialised Deposit Taking Institution Act, Act 930, in 2016. 

 
 

The Banks and Specialised Deposit-Taking Institutions Act 2016, Act 930, is the primary 

statute governing the banking industry in Ghana. This came into force on 14 September, 

2016 to repeal the Banking Act 2004, Act 673. The new banking law has consolidated the 

laws relating to deposit taking and regulates institutions that carry on deposit-taking 

business. It does not apply to credit unions and leasing companies that are licensed and 

supervised under the Non-Bank Financial Institutions Act 2008, Act 774. The new Act is 

wider in scope compared with the repealed Banking Act 2004, Act 673. It has given the 

BoG increased supervisory powers (Taiwiah, 2019). 

The banking sector clean-up exercise witnessed the revocation of licenses of 420 banks, 

specialised deposit taking institutions, and non-bank financial institutions, which, 

according to BOG, was necessary to save the financial system from total collapse. Of the 

420 institutions closed, 379 made up of nine banks, 23 savings and loans and 347 

microfinance companies are currently being resolved under the special resolution regime 

established under section 123 of the Banks and Specialised Deposit-Taking Institutions Act 

of 2016 (Act 930), while 41 non-banking financial institutions made up of 39 microcredit 

institutions, one leasing company, and one remittance company regulated under the NBFI 

Act of 2008 (Act 774) and are being resolved through liquidation under 

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the now-repealed Bodies Corporate (Official Liquidations) Act, 1963 (Act 180) and Act 

1015, following Bank of Ghana’s appointment of the Registrar of Companies as Official 

Liquidator pursuant to section 7 of the NBFI Act (Bank Of Ghana, 2020). The government 

of Ghana is pursuing a policy that provides appropriate mechanisms to minimise financial 

system instability and deal with emerging risks using effective supervision and regulatory 

measures. Through the policy, the government seeks to make the financial sector of the 

country the preferred source of finance for domestic companies and further develop, 

strengthen and modernise the financial sector to support the government’s economic vision 

and transformational agenda (Taiwiah, 2019). 

 
 

According to Opoku-Agyemang (2015), the Ghanaian banking industry began with Bank 

of British West Africa established in 1896 and Barclays Bank DCO in 1917. Universal 

Banking Business License (UBBL) was introduced in 2003, which gave banks the 

opportunity to include all acceptable businesses without restriction and 

compartmentalisation. The license policy eliminated three banking pillar models, namely 

commercial banking, merchant banking and development banking (Bank of Ghana, 2011). 

Minimum capital requirement (MCR) was first introduced by the central bank in 2003. 

Licensed universal banks where mandated to have a minimum capital of 70 billion cedis 

(now 7 million Ghana cedis). From that period onwards, banks were directed to hold 9% 

of the cedi and forex deposit base with the central bank on a day-to-day basis as primary 

reserves and 35% (later adjusted by 15%) of deposits primarily cedi denominated assets as 

secondary reserves (Akomea & Adusei, 2013). After the redenomination of the Ghana cedi 

in 2007, banks were obligated to increase their minimum capital from GHS 7 

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million to GHS 60 million. The new minimum paid-up capital requirement is GH¢400 

million mainly through capitalization of income surplus and fresh capital injection. The 

industry currently consists of 23 licensed universal banks who have met the new minimum 

paid-up capital requirement. Of these 23 comprises, of ten are classified as domestically 

controlled, while 13 are foreign-controlled with 1,225 branches spread across the 16 regions 

of the country. Foreign banks were required to hold a minimum capital of GHS 60 million 

and GHS 25 million for domestic banks (BOG, 2019). Reports on the banking sector 

indicate that in 2013, 50% of the industry’s assets and deposits were owned by six banks; 

where five out of the six were foreign banks and one was a Ghanaian owned bank. These 

six banks were Ecobank, Stand Chart Bank, Zenith Bank, UBA, Barclays Bank and GCB 

Bank (Bank of Ghana, 2020). A study conducted by Owusu-Antwi, Banerjee and Antwi 

(2017) demonstrates that foreign banks such as Ecobank, UBA, and Zenith Bank hold 60% 

of operating assets and deposits. 

The BOG believes that due to earlier reforms instituted by the Bank of Ghana over the last 

three years that has strengthened the resilience of the sector, the Ghanaian banking sector 

is capable of financing the economic rebound of a more self-reliant and resilient economy 

post-COVID (BOG, 2020). 

 
 

Sustainable competitive advantage can be obtained from talent-management practices, 

which include attracting, developing, motivating, managing, rewarding and retaining talent 

(Heinen & O'Neill, 2004). Talent management systems have the potential to generate and 

measure both financial and non-financial organisational outcomes such as company profit, 

talent productivity, market value, job satisfaction, motivation, and 

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commitment (Venkateswaran, 2012). More importantly, research has indicated that 

companies with automated talent systems are active when it comes to developing leaders 

and employees and are useful in planning and identifying talent needs (Leonard, 2010). 

The concept of talent management, which is seen as a fuel for the engine of human capital 

management transforms into a critical strategic asset and the natural resource of an 

organization. It should be stable in supply to mitigate risk, enhance employee's 

productivity, and cultivate and flourish an organisation's values. Talent management should 

be at the right time and in the right place. The issue of limited supply of talented employees 

has made talent management a top priority for organisations, especially in the quest to gain 

competitive advantage. Besides, a potential role of talent management is to discriminate 

between high and low performing organisations; therefore it is a critical issue for 

organisational success (Anlesinya, Amponsah-Tawiah & Dartey-Baah, 2019). Other 

researchers such as Berger and Berger (2003), Burbach and Royle (2010) and Capelli 

(2008) are likewise of the view that talent management has become a central component 

of corporate human resource strategies. Thus, talent management has gained increasing 

interest in the area of Human Resource Management (HRM) and Human Resource 

Development (HRD) research. Nilsson and Ellström (2012) point out that the learning 

perspective of people has changed from job security and lifelong employment to lifelong 

learning, employability, and talent management. 

Evidence from the Bank Governance Leadership Network (2018) points out that securing 

and retaining talent has become essential to competition and innovation in the banking 

industry. Hence, banks fight for skilled people not only with their traditional sector rivals 

but also against a new wave of competition from technology giants and start-ups. As the 

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workforce changes and new skills become increasingly important, bank leaders are 

compelled to think differently about how talent fits into their strategy from the top down. 

Not only is technology likely to change the number and kinds of people working in banks, 

but the nature of a banking career is also changing. Employment is becoming more fluid. 

Most analysts expect tenure within any single firm to continue to decline. In the United 

States, the median tenure in 2016 for workers between the ages 25–34 was less than 

three years, compared with more than ten years for workers in the 55–64 age bracket 

(Bureau of Labor Statistics, 2016). Across Europe, there is variation in job tenure by 

country, but even so, between 2000 and 2014, job tenure for millennials trended downward 

(Bureau of Labor Statistics, 2016). In the coming years, those with the ability to work 

across different functions and business lines will be increasingly valuable, and firms will 

need to adjust how they view their employees as a result. Banks, therefore, need to focus 

on the people and not roles, to shift to thinking about capabilities rather than positions. 

Banks are in the early stages of planning for workforce transformation with a focus on 

ways to improve efficiency and offer more to customers to remain competitive and improve 

returns (Bank Governance Leadership Network, 2018) and this require talented employees 

to achieve. 

The study therefore sought to investigate the effect of talent management on employee task 

performance and organisational performance in the Ghanaian banking industry. The 

purpose of this study was to identify what talent management practises are used in the 

Ghanaian banking industry and its effect on employee task performance and organisational 

performance. The study also sought to draw up the challenges associated with the 

pertaining practices in the Ghanaian banking industry. 

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1.2 Statement of Problem 

 

Globalization and economic turbulence in the business environment have progressively 

made organisations lean heavily on their human capital to provide them with a competitive 

advantage that will enhance their business, most notably their bottom line 

(Poorhosseinzadeh & Subramaniam, 2012). Talented workers are in high demand, and 

there is fierce competition for their services. Therefore, organisations have no choice other 

than to manage talents to remain competitive in the business environment (Cheese, 

Thomas, & Craig, 2008). Bank leaders, in particular, face primary challenges in developing 

talent strategies preparing for technology-driven disruptions that could require widespread 

retraining, identifying the skills and expertise needed to compete in the future, and 

attracting and retaining the people with those skills (Bank Governance Leadership 

Network, 2018). 

 
 

According to Anlesinya et al. (2019) and Tarique and Schuler (2012), there is ever- 

growing competition among firms globally for the attraction and retention of scarce 

talented employees. Consequently, talent management has become an essential subject 

for both scholars and practitioners. Talent management has become a critical issue for 

organisational success due to its potential roles in discriminating between high and low 

performing organisations. It has also become a top priority for organisations as a result of 

the limited supply of talent (Collings, Mellahi & Cascio, 2019). 

 
 

Anlesinya et al. (2019) in their systematic review of talent management in Africa, reveal 

that effective talent management has significant transformative and growth power 

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through its varied positive contributions. However, their findings noted that talent 

management in Africa is faced with numerous organisational and macro-level challenges 

and requires attention from relevant stakeholders if African talents are to be harnessed to 

facilitate the development of the continent. Unfortunately, there is a lack of in-depth 

exploration of specific challenges affecting talent management practices generally and 

specifically in the banking sector and Ghana. Limited studies in talent management are also 

consistent with the findings that apart from the Southern Africa sub-region, talent 

management research is highly under-researched in the North African, West African, and 

Eastern African sub-regions of the continent (Nzewi, Chiekezie & Ogbeta, 2015). 

Therefore, talent management research in Africa can be described as being at an embryonic 

stage and needs more empirical examination (Anlesinya et al., 2019). 

 
 

Although there has been some studies on talent management in the banking industry, 

researchers such as Akar1 and Sharma (2018), Prathibha and Balakrishnan (2014), Gupta 

and Aggarwal (2012), Mawlawi and Fawal (2018) and Rawashdeh (2018), these have been 

largely foreign with very little attention paid to the Ghanaian banking industry. Given the 

numerous challenges and the potential contributions of an effective talent management 

regime to the growth of the sector, there is the need to examine the talent management 

practices in the Ghanaian banking industry and its impacts on employee job performance 

and subsequent organisational performance. 

 
 

1.3 Research Objectives 

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This study will broadly examine the effect of talent management practices on employee 

task performance and organisational performance in the Ghanaian banking industry. 

Specifically, the following objectives informed the study: 

1. To examine the effect of talent management on organisational performance of 

banks in Ghana. 

2. To assess the effect of talent management on task performance of employees of 

banks in Ghana. 

3. To explore talent management practices in the Ghanaian banking industry. 

 

4. To examine the challenges associated with talent management practices in the 

Ghanaian banking industry. 

 
 

1.4 Research Questions 

 

To address the objectives of the study, the researcher posed the following questions: 

 

1. What relationship exists between talent management and organisational 

performance of banks in Ghana? 

2. What relationship exists between talent management and task performance of 

employees of banks in Ghana? 

3. What are the talent management practices in the Ghanaian banking industry? 

 

4. What are the challenges associated with talent management practices in the 

Ghanaian banking industry? 

 
 

1.5 Research Hypotheses 

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The following hypotheses were formulated concerning the objectives of the study and 

empirical literature review: 

H1: Talent management will significantly have effect  organizational performance of 

banks in Ghana. 

H2: Talent management will significantly have effect the task performance of employees 

of banks in Ghana. 

 
 

1.6 The Ghanaian Banking Industry 

 

In the past three years, the industry has experienced a dramatic revolution due to the 

enactment of Act 930 and the Deposit Protection Act in late 2016, followed by a stream 

of other initiatives and proactive monitoring to further strengthen and stabilize the industry. 

These revolutions reflect a banking industry that is well-capitalized, solvent, liquid, and 

more resilient; and that has restored trust and confidence in the system (BOG, 2019). The 

2019 banking survey by PricewaterhouseCoopers (PWC) characterised the year 2018 as a 

challenging and eventful year for Ghana’s banking industry as banks had to adjust to 

several reforms including full implementation of the minimum capital requirement, new 

capital requirement directive, revocation of banking licences, as well as intensified 

competition from non-traditional competitors, such as FinTechs and Telecommunication 

companies. Total assets as a percentage of GDP declined from 36.4% in 2017 to 35.7% in 

2018, while total credit to GDP declined from 14.7% to 14.2% over the same period. The 

industry has, however, demonstrated resilience in the face of uncertainties as banks posted 

strong financial performance throughout the year. Total operating assets increased by 

11.3% (from 2017) to GHS80.64 billion, while the 

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industry profitability ratio increased to 25.8% from 24.7% in 2017 (PWC, 2019). The 

profitability indicators of the banking sector also showed improvement during the first half 

of 2019 compared with the same period last year. The industry recorded an after-tax profit 

of GH¢1.67 billion, representing year-on-year growth of 36.3 per cent compared with 21.7 

per cent in the same period the previous year. Bank of Ghana’s latest financial soundness 

indicators show that while assets held by the banking sector with 39 bank in August 2017 

when the reforms started stood at GH¢89.1 billion. The current total assets of the industry 

with 23 banks have increased significantly to GH¢138 billion as at the end of the second 

quarter of 2020 (BOG, 2020). 

According to The Report: Ghana 2020, there are no reliable statistics as yet to indicate 

the number of job losses resulting from the banking sector clean-up; however, BOG claims 

the clean-up has saved 70% of potential job losses. The report revealed that the issuance of 

the new corporate governance directive by BOG establishes a criteria for key management 

personnel and gives BoG power over their appointment. The report added that although 

these measures had been welcomed by the majority in the industry, there are a few 

concerns such as the tenure of non-executive directors and board chairpersons being limited 

to 12 years and nine years, respectively, could pose talent challenges. They argue that some 

individuals have a valuable set of skills and securing a replacement is costly and time-

consuming. 

The human component of an institution’s resource is opined as important in determining 

organization performance outcomes (Dominguez, 2011). Therefore how effective an 

organization manages its human resources is very critical to an institution’s survival, 

whether being a state or private entity (Juhdi, Pa’wan, Hansaram, & Othman, 2011). 

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According to Ortega-Parra and Sastre-Castillo (2013), managing the human resources of 

a firm demands the application of bundle human resource practices, which will enable 

institutions to improve employees performance and attitudes (Fong, Ooi, Tan, Lee, & 

Chong, 2011; Lew, 2011). 

 
 

In today’s dynamic business economy, most employers are investing into improving their 

employees’ knowledge for a competitive advantage in order to survive. Knowledge 

sustainability is very important for organizations (Nonaka & Takeuchi, 1995). Knowledge 

imbedded in the individual is the most valuable asset and the most significant arsenal for 

business survival today (Ipe, 2003). Organizations must not only focus on retaining the 

knowledge they already possess, but must also acquire new knowledge through training 

and development to remain competitive (Cumming & Worley, 2009). According to 

Okyere-Kwakye, Nor, Assampong and Awang (2018), it has become a norm for 

employees in Ghana to move from one organization to another, especially within the 

banking industry. They also stated that research confirms that the expense of training and 

developing a new employee can be more than double the salary of the exiting employee 

as well as the time cost of completing the recruitment processes and the possible loss of 

revenue when the position is vacant. This means that losing an employee is a huge loss to 

the company. The mobility of talented employees presents organizations with the challenge 

to keep such employees therefore the need to implement proper structures, practice and 

policies. 

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The Ghanaian economy has been impacted adversely by the COVID-19 pandemic resulting 

in a significant growth downturn and higher inflation. All leading economic indicators, 

international trade, construction, and manufacturing activities have declined significantly. 

Recent data on business and consumer confidence, and private sector credit growth indicate 

a decline on a year-on-year basis. In view of these economic challenges, the report of the 

95th Monetary Policy Committee (MPC) of the Bank of Ghana indicates a robust 

performance despite the emerging risks posed by the pandemic on the sector’s operations. 

The committee indicated that the industry’s profitability performance has been adversely 

impacted by higher operational costs due to measures being put in place to limit the impact 

of the pandemic on banks’ operations. Sectors mostly affected by the pandemic 

consequently have challenges with loan repayments to the banks and SDIs include the 

services, commerce & finance, and manufacturing. These conditions have heightened the 

risk of loan default in the banking sector and are pushing non-performing loans up. The 

report shows a banking sector with a total asset base expanding by 23.2 per cent in year-

on-year terms to GH¢139 billion at end-June 2020. The central bank’s latest stress tests 

conducted in July 2020 indicate that the banks are well-positioned to withstand moderate 

liquidity and credit shocks due to the existence of strong capital buffers despite the adverse 

hit of the COVID-19 pandemic (Bank of Ghana Monetary Policy Committee Press Release, 

2020) 

 
 

It is evident that the banking reform as well as technology contribute to the change in 

number and type of workforce working in the banking industry. Evidence from the Bank 

Governance Leadership Network (2018) points out that the nature of a banking career is 

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changing therefore new skills are becoming increasingly important and bank leaders are 

compelled to think differently about how talent fits into their strategy from the top down. 

Banks fight for skilled people not only with their traditional sector rivals but also against 

a new wave of competition from technology giants and start-ups; hence, securing and 

retaining talent has become essential to competition and innovation in the banking industry. 

The loss of skilled and talented staff by these institutions will be a considerable disruption 

towards achieving a sustained competitive edge (Hana & Lucie, 2011). However, as Mehta 

(2011) contends, the winners in the war for talent will be those who invest time to define a 

talent management strategy and process for all of the components and managing a great 

talent management programme will optimize organizational performance (p. 49). 

 
 

1.7 Significance of the Study 

 

Talent management is to create a motivated workforce that will remain committed to the 

organisation and ensure its growth and success. There is consensus amongst HR 

practitioners and academics that talent management is one of the most critical human 

capital challenges faced by twenty-first-century organisations, more so in Africa (Koketso 

& Rust, 2012). This study will help managers of banks to understand the effect of talent 

management on employee task performance and organisational performance to adopt the 

best fit for their organisations resulting in developing talent capabilities and retaining 

skilled staff to achieve organisational goals. The study would raise awareness amongst 

financial organisations on the need to develop talent management capabilities to gain its 

associated benefits. In addition, given the significance of the topic, generally, 

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developing economies and specifically the banking industry can benefit from this study 

that will provide systematic evidence of talent management practices and its effect on 

employee task performance and organisational performance. 

 
 

In research, the study findings would make a valuable addition to the knowledge that has 

been acquired from other studies on the relationship between talent management and 

performance and may help other individuals who might wish to undertake further studies. 

The study will also contribute to the increasing amount of research related to talent 

management and performance. It is considered that the study will be valuable in that it adds 

to the literature on talent management and performance, particularly in Ghana and Africa 

at large, an area that remains under-researched. 

This study highlights the importance of talent management to both employee and 

organisational performance. Thus, it provides a framework for policy development in the 

area of talent management in organisations and, by extension, the nation at large. 

 
 

1.8 Chapter Disposition 

 

The study is organized into five chapters, which focused on different dimensions of the 

research. The first chapter covered the introductory part of the study focusing on the 

broad overview, statement of the problem that led to the research purpose, objectives, and 

questions, significance of the study, and scope and limitation of the study. The next chapter 

consists of a review of the empirical literature and related studies on talent management 

with a focus on the relationship between talent management and human resource 

management, employee task performance, and organisational performance. 

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Chapter Three presents the research methodology used in the data collection and analysis 

for the study. It shows the research paradigm and design, the population for the study, 

sample size, techniques, and data collection procedure, established validity and reliability, 

and finally, ethical procedures for the study. Chapter Four covers the analysis for the study 

with a detailed discussion on the objectives set out at the beginning of the study. Chapter 

Five focuses on the summary and conclusions drawn from the study with implications and 

limitations subsuming the final chapter to ascertain if the research questions set out at the 

beginning of the study have been answered with directions for future research. 

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CHAPTER TWO 

 

 

LITERATURE REVIEW 
 

2.0 Introduction 

 

This chapter outlines the literature review. It consists of a review of the empirical literature 

and related studies on talent management. The chapter looked at the relationship between 

talent management and human resource management, employee task performance, and 

organisational performance. This chapter also looked at the theoretical and conceptual 

framework of the study. 

 
 

2.1 Definition of Key Concepts 

 

2.1.1 Talent 

 

Scholars have lately begun to explore in more depth the relationship between talent 

definitions and TM practices. A recent, comprehensive review concludes that three main 

areas are addressed in the academic literature on TM: the definition of talent, outcomes and 

effects of TM, and TM practices and activities (Thunnissen et al., 2013a). The 

configurations of talent definitions and TM practices that are drawn up in the research 

works of Gallardo-Gallardo et al. (2013), Meyers et al. (2013), and Meyers and Van 

Woerkom (2014) are an essential first step toward conceptually defining talents. The lack 

of a comprehensive, systematic, and detailed framework makes it challenging to explore 

similarities and differences between organizations. 

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Despite the difficulty, there is a framework with five well-established dimensions derived 

from theoretical perspectives on the talent that exists in six streams of literature: HRM, 

industrial and organisation psychology, educational psychology, vocational psychology, 

positive psychology, and social psychology (Gallardo-Gallardo et al., 2013; Meyers et al., 

2013; Dries, 2013). Each dimension is viewed as a continuum rather than mutually 

exclusive poles. Nonetheless, the position an organization takes in each dimension has 

implications for their TM practices (Dries, 2013; Thunnissen & Van Arensbergen, 2015). 

The first dimension is whether talent is seen as a subject or object. As a subject, talent is 

defined as individuals, whereas object views define it as characteristics of individuals, such 

as abilities and knowledge. The second is whether talent is inclusive and thus refers to all 

employees of an organization, or exclusive and refers to an elite subset of employees. The 

third dimension is innate-acquired: is talent a natural ability or something that can be taught 

and learned? The fourth is whether talent is based on input or output. Input-based views 

define talent as the employee's motivation, interest, ambition, values, and career 

orientation, whereas output-based perspectives define it as the employee's ability 

manifested in performance and achievements. Lastly, talent may be seen as a quality that 

remains unchanged when transferred between contexts, or as something that emerges and 

is recognized only in specific settings (Bolander, Werr & Asplund, 2017). 

 
 

The definition of talent can also vary between organisations, or within the same 

organisation over time. Many organisations seek to map individuals across the organisation 

in terms of performance and potential, and it is those who are identified as high performers 

with high potential who are most often the focus of talent management 

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(Dhanabhakyam & Kokilambal, 2014). Gupta and Aggarwal (2012) suggest that most 

organisations define talent regarding potential, in particular high potential. These are 

people who are demonstrating some potential to progress in the organisation at any given 

point in time. 

 
 

2.1.2 Talent Management 

 

Some researchers see talent management from a primarily human capital perspective 

(Cappelli, 2008), while others see it as mainly a mind-set with talent as the key to 

organizational success. Others see the alignment of talent management closer to the 

business strategy and the corporate culture as a critical feature of talent management 

(Farndale et al., 2010; Kim & Scullion, 2011). It is equally important not to lose sight of 

differences in how talent management is defined and conducted in different national 

contexts. Such an understanding should help to counteract an overly ethnocentric or Anglo-

Saxon conceptualization of talent management, which is not reflective of practice in many 

parts of the world (Luthans et al., 2006; Vance & Vaiman, 2008; Mellahi & Collings, 2010; 

Tymon et al., 2010; Scullion & Collings, 2011). 

 
 

Scholars consistently point to the conceptual ambiguity of TM and talent. While substantial 

advances have lately been made toward establishing mature theoretical frameworks for the 

concept of "talent" (Dries, 2013; Gallardo-Gallardo et al., 2013; Meyers et al., 2013; 

Thunnissen & Van Arensbergen, 2015; Nijs et al., 2014; Tansley, 2011), the framework 

for TM is considerably less developed (Al Ariss et al., 2014; Collings & Mellahi, 2009; 

Thunnissen et al., 2013b). Specifically, Dries (2013) states 

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that many scholars fail to define "which specific practices fall under the TM label". In many 

ways, it is still unclear what TM is. TM lacks an agreed definition, and there is strong 

evidence to suggest that. Hence, it has been the subject of review articles and conceptual 

papers, and some empirical work (e.g., Jones et al., 2012). 

 
 

Kontoghiorges and Frangou (2009) defined talent management as the implementation of 

integrated human resource strategies to attract, develop, retain and productively utilize 

employees with the required skills and abilities to meet current and future business needs. 

Collings and Mellahi (2009) define TM as activities and processes that involve the 

systematic identification of key positions that differentially contribute to the organization's 

sustainable competitive advantage, the development of a talent pool of high-potential and 

high-performing incumbents to fill these roles, and the development of a differentiated 

human resource architecture to facilitate filling these positions with competent incumbents, 

and to ensure their continued commitment to the organization. Hatum (2010) defined TM 

as a strategic activity aligned with the firm's business strategy that aims to attract, develop, 

and retain talented employees at each level of the organization. Talent management, in 

essence, encompasses identifying and development of various talents, explicitly relating to 

employees with high potential talents for future tasks and roles or positions (Mahmoud, 

2019). Hatum (2010) expressed the reality that all levels of employees in an organization 

contribute to its performance. Downs (2012) defined TM as the activities and processes 

throughout the employee life cycle: recruiting and hiring, on boarding, training, 

professional development, performance management, workforce planning, leadership 

development, career development, cross-functional work 

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assignments, succession planning, and employee exit process. Swapna and Raja (2012) 

agreed that TM is identifying, recruiting, hiring, and developing people with strong 

potential to succeed in an organization. 

 
 

Research conducted by Sonnenberg et al. (2014) found that organisations define talent 

management in the context of the array of practices used to manage people effectively at 

work. Many definitions talk about talent management in terms of attracting, developing 

and retaining 'talented people'; but in the wider people management context, talent 

management tends to be seen as an integrated set of activities, mostly concentrated on 

developing people to meet changing business needs. Prarthana (2019) asserts that strategic 

talent management has become a necessity in these times of a "hyper-change environment". 

The accompanying global trends in the management of talent and human capital have led 

to what they call "a renaissance of the work-worker-workplace collaboration/equation" 

 
 

The emergence of talent management is ascribed to the McKinsey Group, tabling the war 

for talent agenda (Chambers et al., 1998). McKinsey expressed great concern about the 

supply of human talent, the most valuable corporate resource, with pressing issues faced 

by organisations in the attraction and retention of key staff. Its growing significance 

appears premised on the assumption that superior TM is a crucial source of competitive 

advantage. Coupled with changes in global demographics (i.e., an aging workforce and 

falling birth rates), continued onset of globalisation and rise of the 'knowledge worker' 

(Tarique & Schuler, 2010; Guthridge et al., 2008). Since then, there has been a wave of 

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consultancy reports that discuss talent shortages, and which place a strong emphasis on the 

role of talent management in organisational success. For example, a survey of 418 

international executives found that eight in ten viewed an effective talent management 

strategy as key to competitive success, with more than half of this reporting that it would 

become more strategically important in future years (KPMG, 2012). Amid intensified 

global competition, weakening bonds between employers and employees, and the on- 

going shift toward knowledge-based economies, talent management has become a principal 

business activity and a critically important decision area (Sparrow & Makram, 2015; 

Collings & Mellahi, 2009). The increasing internationalisation of small to medium- sized 

enterprises further increases the talent competition, particularly for individuals with global 

business acumen (Tarique & Schuler, 2010). In essence, the dilemma is that talent has 

become an attractive source of competitive advantage. At the same time, many 

organizations are encountering talent shortages and finding it increasingly difficult to 

attract, manage, and retain talented people (Schuler et al., 2011). The maximization of the 

talents of employees is a source of sustained competitive advantage (Scullion et al., 2010). 

 
 

TM is an area of interest and importance to both practitioners and the academic community 

(McDonnell, Collings, Mellahi & Schuler, 2017). It has been almost two decades since 

studies specifically on talent management first appeared in management literature. During 

this time, TM has become a topic of considerable debate in the academic literature and a 

central element of managerial discourse and organisational practice (Boudreau & Ramstad, 

2007; Collings & Mellahi, 2009; Groysberg, 2010; Lewis 

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& Heckman, 2006; McDonnell, 2011). Thunnissen et al. (2013) have described interest and 

research in the field of TM as having grown from infancy to adolescence. Research interest 

is generated because, for organisations, TM practices have become the cornerstone not 

only of attracting the best and brightest employees but also achieving organisational 

sustainability in this dynamic and competitive global environment. Talent management has 

become a top priority for organisations as a result of the limited supply of talented 

employees. According to Anlesinya et al. (2019a) and Tarique and Schuler (2012), there is 

ever-growing competition among firms globally for the attraction and retention of scarce 

talented employees. Reliability is becoming a more recognized and appreciated component 

in gaining a competitive advantage. Best-practice organizations have identified talent 

management as a critical component of their business strategy to differentiate themselves 

from the competition and achieve desired goals (Ha, 2006). People are an increasingly 

valuable source of sustainable competitive advantage for organizations; therefore, getting 

and keeping the right people in the right places at the right time has been challenging. 

 
 

The talent management approach may influence the definition of both talent and talent 

management, whether TM is about managing the talent of all employees (inclusive or 

strengths-based approach to TM), or whether it is about the talents of high-potential or 

high-performing employees only (exclusive approach to TM; Iles, Chuai, & Preece, 2010; 

Iles, Preece, & Chuai, 2010). Cerdin and Brewster (2014) view these approaches as two 

conceptions of talent management, namely (1) the elitist, or talent segmentation, approach 

focused on a few chosen individuals, often termed 'high potentials', in whom 

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the organization invests, and (2) a broad aspect of Human Resource Management where 

all employees are considered as talent and not seen as relating to a specific group of 

employees or all employees. 

 
 

2.1.2.1 Talent Management Practices 

 

An organisation is nothing without skilled workers because it is the workforce that engages 

in productivity for the realisation of the goals of the organisation. Such employees are the 

organisation’s assets (human capital) and they need to be recognised, protected and 

retained for the organisation’s continuous success and sustainability. The challenges today 

of Human Resource managers is in the recognition of talent and nurturing it with care to 

achieve significant gains in productivity over a period of time (Akpey-Mensah, 2018). 

According to Swailes (2013), talent programmes typically involve the development of a 

set of criteria that reflect the organisational image of talent. This programme starts with 

employees evaluated against the criteria often through tough appraisal and rating schemes 

and may be selected or rejected for a talent development programme. Selected participants 

undergo a formal programme that typically includes being part of a team to work on 

challenging projects and job rotation to experience how other parts of the organisation 

operate. Self-understanding and self-development are important parts of the development 

programmes, which may include psychometric assessment and executive mentoring. 

Confidential counselling and support are added to help employees cope with the demands 

of high-stretch jobs that inevitably risk impacting on work–life balance (Gupta & 

Wasylyshyn, 2009). 

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From the above authors and many more there is indeed a broad variety of instruments 

regarding recruitment, staffing, development and retention that has been presented and 

prescribed, with no further classification or structuring in the practice of TM (Thunnissen, 

2016). The interpretation of the TM process provided by TM literature is that talents are 

recruited and developed with a broad variety of TM practices to direct their behaviour 

in a direction that fits the organizational needs, and, as a result, the individual is happy and 

motivated, and individual and organizational performance increases (Thunnissen, 2016). 

The majority of publications on TM have lacked a clear description of relevant practices 

involved in TM (Dries, 2013). Collings (2014) and Thunnissen et al. (2013) recommend 

that intended objectives of TM should be both the economic and non-economic value at 

the level of the organization, the talented employee and society. Organizations must 

constantly manage their human capital for continuous creation of value and maintain 

competitive advantage (Cania, 2014). 

Talent management practices in industry have different dimensions such as workforce 

planning, recruitment, on boarding new hires, training and development, coaching, 

employee engagement, high performance development, rewards and recognition, 

succession planning, record keeping reporting and analysis, culture and values (Elegbe, 

2012). A study by Dhanabhakyam and Kokilambal (2014) reveals that practices adopted 

generally differ from industry to industry in many cases and certain practices are more 

suitable for certain industries over others. At the same time there are some practices that 

are prevalent in most of the industries such as recruitment and selection, succession 

planning, training and development, performance management, compensation, and 

employee retention. These practices involve senior management and are aligned with 

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business goals and embedded in culture. They further clubbed all the above mentioned 

practices into three major classifications as in the figure below. 

Figure    2.1:     Broader     Classification     of     Talent     Management     Practices 
 
 

 
The cost of talent management (recruiting, training and developing and retention) is on 

the increase, yet organisations are willing to investment in it due to its immense 

contribution to organisational growth and survival (Ibidunn, Osibanjo, Adeniji, Salau, & 

Falola, 2015). 

Abraham (2011) defines recruitment as the ability to attract the right talent to the 

organization depends on how potential applicants view the organization and whether they 

share the same values as the organization. Recruitment is a process that requires constant 

attention. In mostly large organisations formal procedures in recruitment and section have 

been established, which is important for any organization (Sampson & Schwebler, 2004). 

Recruitment and staffing (selection) is the process of choosing the most appropriate person 

for a job. Recruitment and staffing involves the process of identifying, attracting, 

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interviewing, selecting, hiring and on-boarding employees. In other words, it involves 

everything from the identification of a staffing need to filling it. Successful on boarding 

is a key part of any talent management strategy (Dhanabhakyam & Kokilambal, 2014). The 

success of any business depends on the quality of its staff, that is employees with the correct 

skills that can be added value to the business (Naheed & Amir, 2012). The recruitment of 

talent pool is the first and most important task of the talent management process. The talent 

pool is a group of candidates who are the potential executives of the organization and who 

will steer the organization towards competitive performance. Therefore to gain and 

maintain the performance of the organization the recruitment and selection of talented 

individuals is very crucial. The creation of the talent pool can be done in two forms, one 

is internal and second one is external. The internal recruitment of the talent pool will be 

from the already existing employees of the organization (Rabbi, Ahad, Kousar & Ali, 

2015). Whereas the external sources is the best way of gathering a talent from outside the 

organisation when organization needs cultural change and innovation (Ballesteros & 

Inmaculada, 2010). There is high cost in recruitment therefore it is important that 

organisations effectively integrate new talents to ensure their success (Bauer, 2010). When 

talent has been successfully recruited either internally or externally the organisation should 

aim to develop and retain the talent for the benefit of both the individual and the 

organisation (Ibidunn, Osibanjo, Adeniji, Salau, & Falola, 2015). Long (2004) is of the view 

that talent management should be an integrated approach; hence, there should be a balance 

between developing individual talent and adding value to the organisation. 

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Training and development is the next important strategy in talent management practice. It 

is a structured programme with different methods for updating skills and knowledge of 

employees in accordance with the changing environment. Some authors refer to this stage 

as talent development. Talent development is the process of upgrading the skills and 

attitude of the employees’ integrated and strategic fit into the company’s strategy (Rabbi 

et al., 2015). Training is a systematic process of impacting knowledge to employees related 

to their jobs resulting in increased efficiency. Development refers to the overall holistic 

process of psychology and soft skills orientation for employees who deals with managerial 

tasks. Each employee must be assessed against the competencies and qualifications 

required to be successful in a new position (Perrine 2005). Training is considered as an 

organisational development intervention with the purpose of strategically enhancing the 

employees’ skills towards future organisational demands; whereas developing talent is an 

important managerial function necessary for the continuous improvement of all 

organizational systems and products (Nel, Van Dyk, Hassbroack, Schultz, Sono & Werner, 

2004). 

Armstrong and Taylor (2014) define training as the systematic application of formal 

processes to impart knowledge and help people to acquire the skills necessary for them to 

perform their jobs satisfactorily, and development is the growth or realization of a person’s 

ability and potential through the provision of learning and educational experiences. 

A training plan is developed after assessment that is written and executed to enable the 

employee to meet performance expectations. The employee can progress to a career 

development phase in which the training plan becomes a development plan to prepare the 

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employee for advancement opportunities or to enhance performance to exceed 

expectations. As the business continuously keep on changing the technologies, business 

models and new strategies to cope with changes, organization needs to enhance and 

upgrade the knowledge of the employees. In this competitive and dynamic business era 

talent development has become the backbone of success; therefore, without continuous 

learning, it is impossible to gain and maintain performance (Perrine, 2005). 

Blass (2009) asserts that although attracting talent is the initial process of a talent 

management process, an effective talent management depends on the retention of the 

talents; therefore, it is one of the most critical issues of the talent management process. 

Wisconsin State Government (2005) defines retention management as a systematic effort 

by organisation to create and foster an environment that encourages employee retention 

through policies and practices that address their diverse needs. 

Armstrong and Taylor (2014) defined talent retention as the implementation of policies 

designed to ensure that talented people remain as engaged and committed members of the 

organizatio