The Influence of Talent Management On Strategy On Employee Performance Among Real Estate

THE INFLUENCE OF TALENT MANAGEMENT ON
STRATEGY
Mfundo Piti
9925144
Masters in Business Administration

(MBA)
in the
Faculty of Business and Economic Sciences
of the
Nelson Mandela Metropolitan University
September 2010
i
DECLARATION
I, Mfundo Piti, hereby declare that:
The work in this dissertation is my own original work;
All sources used to have been documented and recognised; and
The dissertation is my own work and has not been submitted for any
degree or examination in any other university.
Mfundo Piti Date..

ii
ABSTRACT
Research indicates that effective talent management is essential in achieving

organisational excellence and is a driving force for business success. This study
focused on investigating VWSA Group Service divisions employee talent
management process as seen or perceived by employees. The employee
attitude and understanding of the 2010 strategy was also evaluated. In achieving
this objective a literature review on talent management was conducted and
questions formulated which formed part of the survey. The questionnaire was
self-administered and sent to the stratified random sample of individuals who
were eligible for survey.
The main findings of this research are that the 2010 strategy was well received
by the employees and that seventy seven percent of the respondents who took
part in the study do understand the 2010 strategy and what it is all about. The
study also highlighted that employees believe Project 1 in the 2010 strategy will
be achieved. Employees were uncertain that compensation and leadership style
are variables that influence or promote talent management.
From the literature review it is explained that in order for talent management to
be effective it must be aligned to organisational strategy. Various
recommendations were made, for example conducting of skills gap analysis with
a view to identify skills employees need to possess in order to meet the
objectives of the 2010 strategy. Another recommendation was the formation of
talent pools from which to recruit high talented staff and whose skills will be
required to meet the objectives of the organisational strategy.
A final point emanating from the study, is that when it comes to talent
management and achieving organisational strategy it is not business as usual.
Companies need to be aware of brand profiles most desired by highly talented
individuals; they also need to be aware of various recruiting strategies as well as
acknowledge that different employees are at different levels of the motivational
hierarchy.
iii
ACKNOWLDGEMENTS
It is with sincere and deep gratitude that I acknowledge the following people
who have supported, guided and encouraged me immensely towards the
successful completion of this treatise:
My dear loving wife Noxolo Piti for being so patient, supportive and
understanding when I had to put in late nights compiling the treatise;
My two sons Chumani and Zenande Piti, you guys are the reason I
persevered;
Dr Margaret Cullen of Nelson Mandela Metropolitan University

Business School (Family Unit) for the guidance, tolerance and
willingness to share your knowledge;
The library staff at the NMMU Second avenue for always willing to
assist; and
My colleagues at Volkswagen South Africa Group Service division for

taking part in this study.
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TABLE OF CONTENTS
Page
Declaration i
Abstract ii
Acknowledgements iii
Table of contents iv
List of figures viii
List of charts ix
List of tables ix
List of appendices x
Chapter 1
INTRODUCTION, PROBLEM STATEMENT AND OUTLINE OF THE

RESEARCH PROJECT
1.1 INTRODUCTION 1
1.2 PROBLEM STATEMENT 2
1.3 MAIN PROBLEM 4
1.4 DELIMITATIONS OF THE RESEARCH 4
1.5 OBJECTIVES 4
1.6 REASONS AND SIGNIFICANCE OF THE RESEARCH 5
1.7 OUTLINE OF THE STUDY 6
1.8 CONCLUDING REMARKS 6

v
Chapter 2
VOLKSWAGEN GROUP, VOLKSWAGEN SA, HISTORY OF COMPANY,

SOUTH AFRICAN MOTOR INDUSTRY AND COMPANY STRATEGY
2. VOLKSWAGEN GROUP 7
2.1 ABOUT VOLKSWAGEN SA 7
2.2 HISTORY OF VOLKSWAGEN SA 9
2.3 VOLKSWAGEN BRAND CLAIM: DAS AUTO 10
2.4 VOLKSWAGEN 1:10:100 BY 2010 STRATEGY 11
2.5 SOUTH AFRICAN MOTOR INDUSTRY 12
2.6 GROWTH IN THE INDUSTRY 12
2.7 INVESTMENT 13
2.8 MIDP 13
2.9 AUTO COMPONENT MANUFACTURER 14
2.10 VWSA MARKET POSITION IN INDUSTRY 15
2.11 ON VEHICLE SALES 15
2.12 ON VEHICLE SERVICING 17
2.13 OVERALL INDEX (SERVICE AND SALES) 18
2.14 CONCLUSION 19
vi
Chapter 3
LITERATURE REVIEW ON TALENT MANAGEMENT
3.1 INTRODUCTION 20
3.2 DEFINITION OF TALENT MANAGEMENT 21
3.3 ATTRACTING AND SOURCING TALENTED EMPLOYEES 21
3.4 EMPLOYEE TALENT MANAGEMENT 25
3.5 RETAINING TALENTED EMPLOYEES 28
3.6 CONCLUSION 34
Chapter 4
RESEARCH METHODOLOGY, SAMPLE DESIGN AND DATA COLLECTION

METHODS
4.1 INTRODUCTION 35
4.2 RESEARCH PARADIGM 36
4.3 SAMPLE DESIGN 37
4.4 DETERMINANTS OF RESPONSE RATE 44
4.5 DATA COLLECTION METHODS 46
4.6 DEVELOPING QUESTIONNAIRE 48
4.7 QUESTIONNAIRE COVERING LETTER 50
4.8 CONCLUSION 50
vii
Chapter 5
ANALYSIS OF BIOGRAPHICAL INFORMATION, INTERPRETATION OF

EMPIRICAL RESULTS, SUMMARY AND MEANING OF THE RESULTS
5.1 INTRODUCTION 51
5.2 RESPONSE RATE 51
5.3 ANALYSIS OF RESPONDENTS BIOGRAPHICAL INFORMATION 54
5.4 ANALYSIS OF RESPONDENTS ATTITUDE TOWARDS 59

2010 STRATEGY
5.5 ANALYSIS OF RESPONDENTS JOB INFORMATION 64
5.6 ANALYSIS AND INTERPRETATION OF TALENT MANAGEMENT 67

RESULTS
5.7 RELIABILITY AND VALIDITY OF RESULTS 74
5.8 COMPARISON OF MEANS AND STANDARD DEVIATIONS OF THE 75

VARIABLES OF TALENT MANAGEMENT
Chapter 6
SUMMARY RECOMMENDATIONS AND CONCLUSION
6.1 INTRODUCTION 77
6.2 RESOLUTION OF THE MAIN PROBLEM 77
6.3 PROBLEMS AND LIMITATIONS 78
6.4 SUMMARY OF RESEARCH FINDINGS 78
6.5 RECOMMENDATIONS 80
6.6 CONCLUDING REMARKS 80
6.7 LIST OF SOURCES 81

viii
LIST OF FIGURES
Figure 2.1 Organogram of VWSA Leadership 8
Figure 2.2 Vehicle Sales CCSI and CSI Ranking 16
Figure 2.3 Vehicle Service CCSI and CSI Ranking 17
Figure 2.4 Overall Index (Sales and Service) 18
Figure 3.1 Brand profile most desired by high value talent 18
Figure 3.2 Strategic framework for employee recruitment 22
Figure 3.3 Illustration of Talent Management Process 24
Figure 3.4 Traditional approach to Talent management process 25
Figure 3.5 Illustration of Maslows hierarchy of needs 32
Figure 4.1 Group service population by gender 38
Figure 4.2 Group service population by level 38
Figure 4.3 Supervisors by gender 39
Figure 4.4 Managers by gender 39
Figure 4.5 Sample size for given population sizes 42
Figure 5.1 Number of employees surveyed 51
Figure 5.2 Number of responses received before due date 52
Figure 5.3 Number of responses received after due date 53
Figure 5.4 Number of responses according to gender 54
Figure 5.5 Age distribution of respondents 56
Figure 5.6 Race of respondents 57
Figure 5.7 Respondents education level 58
Figure 5.8 Respondents extent of understanding of 2010 strategy 59

ix
Figure 5.9 Respondents extent of excitement about the 2010 strategy 60
Figure 5.10 Respondents belief that Project 1 will be achieved 61
Figure 5.11 Respondents belief that their work contributes to Project 1 62
Figure 5.12 Respondents pride in telling outside people about Project 1 63
Figure 5.13 Respondents years of experience in the company 64
Figure 5.14 Respondents level of management with the division 65
Figure 5.15 Respondents by department 66
LIST OF CHARTS
Chart 5.1 Number of employees surveyed 52
Chart 5.2 Number of responses received before due date 53
Chart 5.3 Number of responses received after due date 53
Chart 5.4 Number of responses according to gender 55
Chart 5.5 Age distribution of respondents 56
Chart 5.6 Race of respondents 57
Chart 5.7 Respondents education level 58
Chart 5.8 Respondents years of experience in the company 64
Chart 5.9 Respondents level of management within division 65
Chart 5.10 Respondents by department 66
LIST OF TABLES
Table 5.1 Means and standard deviations for the influence training and
development have on employee talent management 69
Table 5.2 Means and standard deviations for the influence employee
compensation have on employee talent management 70
x
Table 5.3 Means and standard deviations for the influence organisational
culture have on employee talent management 71
Table 5.4 Means and standard deviations for the influence leadership
style have on employee talent management 72
engagement have on employee talent management 73
Table 5.5 Comparisons of means and standard deviations of the variables

that influence employee talent management 74
LIST OF APPENDICES
Appendix A Covering Letter 90
Appendix B Questionnaire 91
1
CHAPTER ONE
INTRODUCTION TO THE STUDY
1.1. INTRODUCTION
South African organisations have some unique challenges when it comes to

attracting and retaining people. In order to be innovative, step number one is to
get the right people in the door. Getting the right people in the door involves
accessing talent, selecting talent, incentivising talent and orientating talent
(Fisher & Davey, 2007).
It is important that recruiters maintain a strategic approach to recruitment, which

implies that job descriptions and job specifications, among other things, must be
in line with general strategic direction of the organisation (Swanepoel & Erasmus
2003:277). There are now wide variations in recruitment and selection practices,
reflecting an organisations strategy and its philosophy towards the management
of people (Bratton & Gold, 2003:223).
Bratton and Jones (2003:284) define strategy as a specific pattern of decisions

and actions that managers take to achieve an organisations goals. Current
management literature suggests that a major determinant of success in business
strategy implementation is an effective reward system. By effective, it means that
rewards are aligned with the organisational strategy. In addition, the closer the
alignment or fit between reward system and strategic context, the more effective
the organisation (Bratton & Gold, 2003:284).
Taking an interest in employees careers as well can also improve morale, boost
productivity, and help the organisation become more efficient. An emphasis on
career development can also have a positive effect on the ways employees view
their jobs and employers (Byars & Rue, 2006:200).
2
Against the above background, it is important that research be conducted on

understanding the possible influences that employee talent management can
have on the overall organisational strategy. It will be difficult for any organisation
to achieve its desired strategic goals without the full commitment and proper
talent management of its workforce. The present study attempts to investigate or
evaluate VWSA Group Service employee talent management process, its
employee understanding or attitude towards the 2010 strategy and whether the
two will have an influence on the achievement of the 2010 strategy.
1.2. PROBLEM STATEMENT

Strategy is not only about what you are going to do, it is also about getting people
to buy in and commit to what is going to happen and having them understand
their role in implementation (Pearce & Robinson, 1997: 41).
Strategy formation is the selection of objectives to be achieved and the way in
which this is to be realised (Croon, 1974:13). If the objectives have not been
attained, there can be various reasons for the failure. It may be that the
objectives were realistic enough, but execution fell short of the mark. It may also
be that the strategy was too optimistic or pessimistic because external
developments were misjudged or because the organisation has over or
underestimated its own strong and weak points (Croon, 1974:21). In order to
execute a strategy successfully, it must be translated into short-term operational
metrics that are related to long-term needs, which can be used to assess
strategic performance and help organisation achieve long-term strategic goals
(Hrebiniak, 2005:86).
In 2008 Volkswagen of South Africa introduced a set of strategic objectives which

are to be achieved by the end of year 2010. These strategic objectives are called
1:10:100 by 2010.
3
Project 1 - is about Customer Centricity. Volkswagen of SA wants to be the

automotive benchmark in customer service, customer loyalty and number one in
the sales of passenger cars in the South African market by the end of 2010.
Project 10 - is about Quality and Production Breakthrough, to be one of the Top
10 performing production plants in the Volkswagen Group by the end of 2010, in
terms of product quality and processes.
Project 100 - is about the Companys Supplier Strategy. Volkswagen of SAs
component costs is to be no more than 100% of these same components in
Western Europe. The company aims to achieve each of these key focus points
by end of 2010.
This study will mainly be centred around Project 1 only; this is the area where
Group Service division has the major influence, particularly on customer service
and customer loyalty.
The objective is to investigate or evaluate VWSAs Group Service division

employee talent management process as seen by employees as well as
investigate the employees understanding and attitude towards the 2010 strategy,
particularly project 1. The last objective is to deduct from the research findings
whether the aforementioned two objectives will have an influence on the outcome
of project 1 in the 2010 strategy.
The research questions that arise:

Did VWSA Group Service division appropriately address the key areas of
talent management (as outlined in the literature review chapter) that could
have an influence on the outcome of the 2010 strategy, specifically Project 1?
Do VWSA Group Service division employees clearly understand the 2010
strategy?
Are the employees fully committed to the organisation in order to help achieve
2010 project 1 objectives?
4
Do the employees clearly understand their role towards achieving the goals
of 2010 project 1?
1.3. MAIN PROBLEM

How can VWSA Group Service division use talent management to influence
the positive outcome of the 2010 strategy through its employees?
SUB-PROBLEMS
What does the literature reveal regarding talent management and
organisational strategy implementation?
What are the employee perceptions regarding talent management and 2010
Strategy?
What is the level of employee engagement and commitment to the
organisation?
1.4. DELIMITATIONS OF THE RESEARCH

The study was confined to the salaried employees of Volkswagen South Africa
Group Service division only. The division has 74 salaried employees; all the
employees were sent a letter requesting them to participate in the study, except
for employees who have less than a year working in the company.
1.5. OBJECTIVES
The objectives of this study were as follows:
To study existing literature and determine how talent management can be
used to achieve the strategic objectives of an organisation;
To evaluate the divisions employee talent management process as seen or
perceived by employees;
To investigate the employee understanding and attitude towards the 2010
strategy and how this could influence the outcome of the strategy; and
5
To recommend to the division on how talent management could be used to

gain employee commitment thereby positively influencing the outcome of the
strategy.
1.6. REASONS FOR AND SIGNIFICANCE OF THE RESEARCH
Effective talent management is essential in achieving organisational excellence

and is a driving force for business success (Tanton, 2007). Gubman (1998:20)
suggests aligning talent to business strategy by ensuring that people know where
the business is going, what the business is doing to get there, how the people
can contribute to what the business is trying to achieve and what is in it for the
people when they do. Johnson (2000:30) asserts that the days when readymade,
well-trained and culturally acceptable successors who knew the business
intimately were waiting in the wings have gone.
In light of the assertions made in the preceding paragraphs, it was significant for
the researcher to evaluate or investigate VWSA Group Service division talent
management process, because of the following reasons:
The divisions mandate is to drive customer satisfaction and loyalty in the

entire VWSA dealer network through the services the division provides to the
network; and
The division is a major shareholder on Project 1 in the 1:10:100 by 2010

strategy.
6
1.7. OUTLINE OF THE STUDY

The treatise is divided into six chapters:
Chapter 1 Introduction, problem statement and outlines the scope of the study.
Chapter 2 Discusses Volkswagen Group and Volkswagen South Africa, history of

the company, South African motor industry and outlines VWSA 2010 Strategic
objectives.
Chapter 3 Research literature review on talent management.
Chapter 4 Research methodology, including sample design, data collection

methods and determinants of response rate are discussed in this chapter.
Chapter 5 Analysis of biographical results, interpretation of empirical results,

summary and meaning of the results.
Chapter 6 Summary, recommendations and conclusion.
1.8. CONCLUDING REMARKS

In this chapter the objectives of the study, the problem statement and sub-
problems were introduced as well as the outline of the study. The broad overview
of VWSAs 2010 strategy was discussed. The next chapter is on the history of
Volkswagen South Africa, South African Motor Industry and VWSA market
position within the industry. The next chapter also discusses development in the
South African Motor Industry.
7
CHAPTER TWO
VOLKSWAGEN OF SOUTH AFRICA
2. VOLKSWAGEN GROUP (VWAG)
Based in Wolfsburg Germany, the Volkswagen Group is the worlds fourth largest
automobile manufacturer and the largest car producer in Europe.
The Volkswagen Group consists of eight brands Audi, Bentley, Bugatti,

Lamborghini, SEAT, Skoda and Volkswagen Commercial Vehicles, including the
newly acquired Scania of Sweden. Each brand has its own character and
operates as an independent entity on the market. The product range extends
from low consumption small cars to luxury class vehicles. In the commercial
vehicle sector, the product offering spans pick-ups, buses and heavy trucks.
The Group operates forty-four manufacturing facilities. These are found in twelve
European countries, as well as six countries in Americas, Asia and Africa.
Wherever Volkswagen brands are sold and supported, the aim of the Group is to
provide attractive, safe, environmentally friendly vehicles, which set the global
benchmark in their respective classes (http//www.vwsa.co.za, 2010).
2.1. About Volkswagen of South Africa (VWSA)
Established in 1946, Volkswagen of South Africa is a wholly owned subsidiary of

Volkswagen Aktiengessellschaft (VWAG) in Germany. It is the largest German
investment in South Africa and is a major contributor to the foreign direct
investment, technology transfer and skills development. Volkswagen of South
Africa is located in Uitenhage, an industrial town some 35km from Port Elizabeth
in the Eastern Cape (http//www.vwsa.co.za, 2010).
8
For generations, Volkswagen of South Africa has been leading in key areas of
transformation. The company set key targets and measure its success, which is
the reason they have such a proud record as a responsible corporate citizen
(http//www.vwsa.co.za, 2010).
Volkswagen of South Africa believes strongly that job creation and skills
development will fuel Black Economic Empowerment. Volkswagen of South
Africas first priority therefore is to build a strong and successful business that
protects and creates jobs within Volkswagen of South Africa and broader
Volkswagen family of suppliers and franchised dealers.
As a multi-national corporation, Volkswagen of South Africa has a strong

commitment to boost foreign direct investment in South Africa and to promote the
transfer of world-class technology, knowledge and skills. Hundreds of
Volkswagen of South Africa employees at all levels have received training at
Volkswagen plants throughout the world (http//www.vwsa.co.za, 2010).
Figure 2.1 Organogram of Volkswagen South Africa Leadership
Source: VWSA Intranet, 2010
As indicated in Figure 2.1, the Volkswagen of South Africa Board of Directors

consists of five Executive Directors and one non-executive Director. Of the six
Director positions, two are filled by black directors including one female.
Volkswagen of South Africa directly employs over 6000 people and 82 percent
are from previously disadvantaged groups (PDGs). The representation of PDGs
9
within Volkswagen of South Africa is vast: 25 percent of management, 32 percent

of team leaders, senior officials and managers and 64 percent of professionals,
technicians and associate technicians are PDGs (http//www.vwsa.co.za, 2010).
Volkswagen of South Africa has an extensive Employment Equity Programme

that consists of training and development initiatives, succession planning and
departmental targets that are strictly enforced. These are aimed at significantly
increasing black and female representation at the executive and senior levels
within the company. Administering this programme is a fully functioning
Employment Equity Committee consisting of senior management
representatives, trade union representatives and representation by disabled and
female employees. Volkswagen of South Africa is committed to achieving the
management and equity targets set out in the broad based black economic
empowerment (BBBEE) Codes of Good Practice (http//www.vwsa.co.za, 2010).
2.2. History of Volkswagen South Africa
Volkswagen has a long history of involvement in transformation of the way that

people live in South Africa. Since the first Beetle rolled off the line on 31 August
1951, Volkswagen became one of the leading passenger car manufacturers in
the country. Pioneering steps in Volkswagens journey to create a better future
and life for all in the country include the following:
The official opening of Assemblers and Distributors (SAMAD) was on 18

February 1949. Two years later the first Beetle is produced and in 1956 a
controlling interest in the Company is bought by Volkswagen AG and ten years
later the company is renamed Volkswagen of South Africa. In 1970 Volkswagen
was one of the first companies to officially recognise a Black Trade Union and
was also the first company in South Africa to appoint full time Shop Stewards
10
even though trade unions were not recognised at the time

In 1974 Volkswagen of South Africa became a wholly owned subsidiary of

Volkswagen AG. In 1978 the Volkswagen Golf was introduced. In 1981
Volkswagen qualified the first black artisan in South Africa, a motor mechanic.
The following year Volkswagen was instrumental in getting the first black
students enrolled at then Port Elizabeth Technikon, pioneering the racial
integration of tertiary institutions in South Africa (http//www.vwsa.co.za, 2010).
Fast tracking to 2005, 2006 and 2007, Volkswagen became the passenger car
market leader in South Africa. In the same year a Volkswagen Driving Academy
was opened at the Kyalami racing circuit in Midrand, Johannesburg. In 2006
Volkswagen announced its People for the Future initiative, with the Company
investing more than R400 million in training and skills development between
2006 and 2010. Guest of honour then President Thabo Mbeki officially opened
the motor manufacturers new state-of-the-art Paint Shop. In 2008 Managing
Director David Powels announced that Volkswagen of South Africa will export in
excess of 40 000 vehicles in 2008 including a new export contract for 10 260 fifth
generation Jettas to countries including Australia, New Zealand, Japan, Great
Britain and Ireland. Volkswagen of South Africa was awarded a R12 billion
contract to supply the Volkswagen Group with Diesel Particulate Filters (DPFs)
for the next five years (http//www.vwsa.co.za, 2010).
2.3. VOLKSWAGEN BRAND CLAIM: DAS AUTO
Volkswagen is a strong, enduring brand, with a rich history and heritage. This
heritage began with the legendary Beetle, which made motoring history in the
1950s by providing affordable transport to millions of people. Since then,
Volkswagen cars have successfully became benchmark vehicles in their
11
respective categories from five generations of Golf, to the beloved Kombi and
the amazing Touareg. Likewise, technological advancements such as DSG, TSI
and TDI have set new standards, illustrating Volkswagens innovative nature
Volkswagens brand claim, Das Auto, unveiled at the Frankfurt Motor Show in
September 2007, was implemented by Volkswagen South Africa in January
2008. Das Auto, which literally means The Car, is a positive and bold brand
claim that expresses the companys ambitious nature. This change marked a
crucial milestone in the development of the Volkswagen brand and underlined
the groups vision for the future to be the most innovative volume brand in the
world. Global alignment to the German language claim upholds and
communicates the strength and consistency of the Volkswagen brand throughout
the world.
Volkswagen builds peoples cars that set standards and have helped define
whole generations attitude to living. Volkswagen makes it innovations available
to everyone and never stops anticipating tomorrow. Das Auto articulates this,
and is an enduring long-term brand pledge that will grow and strengthen the
brand into the future (http//www.vwsa.co.za, 2010).
2.4. VOLKSWAGEN 1:10:100: 2010 STRATEGIC OBJECTIVES
In 2008 Volkswagen of South Africa set a strategic objective which the company
wants to achieve by year-end of 2010. The 2010 strategic objective is
1:10:100:2010,
Project 1 is about Customer Centricity, Dealer Relationship and Market

Leadership. Volkswagen of SA wants to be the automotive benchmark in the
South African market in areas of customer service, customer loyalty, and number
one in the passenger car market by end of year 2010 (Bantam, 2009:3).
12
Project 10 is about Quality and Production Breakthrough, to be one of the Top

10 performing production plants in the Volkswagen Group, in terms of product
quality, the quality of our processes and productivity by end of year 2010
(Bantam, 2009:3).
Project 100 is about the Companys Supplier Strategy. Volkswagen of SAs

component costs are to be no more than 100 percent of these same components
in Western Europe. The company aims to achieve each of these key focus points
by end of 2010 (Bantam, 2009:3).
2.5. SOUTH AFRICAN MOTOR INDUSTRY
South Africa's automotive industry is made up of manufacture and export of

vehicles and components. The sector accounts for about 10 percent of South
Africa's manufacturing exports, making it a crucial cog in the economy. The
automotive sector contributes about 7.5 percent to the country's gross domestic
product (GDP) and employing around 36 000 people. The government has
identified the automotive industry as a key growth sector, with the aim of
increasing vehicle production to 1.2-million units by 2020, while significantly
increasing local content at the same time (SouthAfrica.info, 2008).
2.6. Growth
South Africa has been one of the best performing automobile markets in the
world in recent years. New vehicle sales figures soared to record-breaking levels
for three years in succession, from 2004 to 2006. In 2006, sales increased by
14.4 percent to just under 650 000 units, generating revenue of R118.4-billion.
Major export programmes are likely to keep the local industry buoyant. Vehicle
exports were around 170 000 units in 2007, and the National Automobile
Association of South Africa (Naamsa) expected this to jump to 285 000 in 2008.
13
This was extraordinary growth, especially when compared to 1997, when the
number of units exported was below 20 000.
South Africa currently exports vehicles to over 70 countries, mainly Japan
(around 29 percent of the value of total exports), Australia (20 percent), the UK
(12 percent) and the US (11 percent). African export destinations include Algeria,
Zimbabwe and Nigeria (SouthAfrica.info, 2008).
2.7. Investment
All of the major vehicle makers are represented in South Africa, as well as eight
of the world's top ten auto component manufacturers and three of the four largest
tyre manufacturers. Many of the major multinational companies use South Africa
to source components and assemble vehicles for both the local and overseas
markets.
Between 2000 and 2006, the industry's investment in production and export
infrastructure quadrupled, from R1.5-billion to R6.2-billion, before slowing to R3-
billion in 2007. Capital investment was expected to be around the R4-billion mark
in 2008. Most of this has been foreign investment, with the parent companies of
local car manufacturers expanding local operations to improve production
capacity, export facilities and supporting infrastructure.
All of the large manufacturers in the country launched major export programmes
in recent years - the latest (in January 2008) being Ford Motor Company of
South Africa (SouthAfrica.info, 2008).
2.8. Motor Industry Development Programme (MIDP)

The catalyst for this phenomenal growth has been the government's Motor
Industry Development Programme (MIDP). Introduced in 1995, the programme
was legislated until 2009 and will be gradually phased out until 2012. The MIDP
has boosted exports by enabling local vehicle manufacturers to include total
export values as part of their local content total, then allowing them to import the
same value of goods duty-free. This has allowed auto- makers to concentrate on
manufacturing certain vehicles or components for export, while importing other
14
models. The programme also grants a production-asset allowance to vehicle

manufacturers that invest in new plants and equipment, giving them 20 percent
of their capital expenditure back, in the form of import-duty credits, over a period
of five years (SouthAfrica.info, 2008).
The government will introduce a successor to the MIDP in 2013 known as the
Automotive and Production Development Programme (APDP), which will be
aimed at improving the domestic value chain. The new programme, which will
last until 2020, will focus on value addition while being consistent with South
Africa's multilateral obligations. It will take the form of a subsidy to production
(Venter, 2009).
The Department of Trade and Industry said the new support programme would
result in more jobs as well as the long-term sustainability of the industry. The
plan will support production and investment plans that "intend to reach a
minimum volume of output for each platform of 50 000 units a year within a
reasonable period of time"(SouthAfrica.info, 2008).
2.9. Auto Component Manufacturers

There are more than two hundred automotive component manufacturers in South
Africa and upwards of another hundred and fifty that supply the industry on a
non-exclusive basis. The component industry has a turnover of about R50-billion,
or approximately two percent of the country's GDP, and is looking to strong
growth as export potential continues to increase.
South Africa exported R30.3-billion worth of auto components in 2006, a 32
percent increase over 2005. Catalytic converters continued to be the country's
most exported vehicle part, accounting for almost half of all component exports.
Other key exports include engines, silencers and exhausts, radiators, wheels and
tyres, stitched leather car seat covers, car radios and sound systems and axles
especially for heavy trucks.
15
Germany, Spain, the UK, the US, France and sub-Saharan Africa are the leading
destinations for South African auto parts exports (SouthAfrica.info, 2008).
2.10. VWSA MARKET POSITION IN SA MOTOR INDUSTRY
2.11. On Vehicle Sales

A South African Automotive Market research company called Synovate
measures the Sales and Service performance of various vehicle manufactures
and supplies the manufacturer with results via Synovate website. The Competitor
Customer Satisfaction Index (CCSI) surveys are done every six months. The
Customer Satisfaction Index (CSI) surveys are done monthly by Synovate to
each manufacturer customer base only.
CCSI is a measure of how satisfied were the customers of other manufacturers

with their vehicle purchase and service experience received from other
manufacturers compared to the experience Volkswagen and Audi customers on
the same index. CSI is an internal measure of the vehicle sales and service
experience received by Volkswagen and Audi customers only. The fundamental
difference is that the CSI monthly questions are different for each manufacturer.
The CCSI questions however are the same for all competitor manufacturers,
meaning all customers of different manufacturers get to answer the exact same
questions.
As indicated in figure 2.2 below, each bar represents each manufactures score,
the blue bar represents Volkswagen brand and the red bar represents the Audi
brand. CCSI results for the period of January to June 2009, VW rated at position
four with a score of 91.8 percent amongst all brands including premium brand,
excluding premium brand and only focusing on volume brand VW rated at
position three. On CSI results for the period of April to September 2009 VW rated
at position four with a score of 92.3 percent. The objectives of Project 1 2010,
Volkswagen of South Africa (VW and Audi) is planning to be number one on
16
passenger car sales on both volume and premium segments when it comes to
passenger vehicles sales.
For the period of January to June 2009, Chevrolet was the market leader on
CCSI with a score of 93.6 percent. It is the opinion of the researcher that
Chevrolets achievements can be attributed to the fact that there is lower vehicle
population of Chevrolets which inevitably means fewer customers to attend to.
Unlike Volkswagen, which has a much higher vehicle population in the
passenger car market, which means more customers to attend to than Chevrolet.
Figure 2.2 Vehicle Sales CCSI and CSI Ranking
CCSI Sample CSI Sample
Jan - Jun 2009 Apr - Sept 2009
1:BMW 93.6
1:Chev 93.6
2:BMW 1:Toyota 93.6

93.4
3:Toyota 93.2 3:Chev 92.9
4:Opel 91.8 4:VW 92.3
4:VW 91.8 5:MB 92.2

6:Audi 91.7
5:Opel 92.2
7:Nissan 91.5
7:Audi 92.1
8:MB 91.3
8:Ren 91.1
9:Ren 89.9
9:Ford 88.7
10:Ford 87.2
10:Peu 88.0
11:Chry 86.5
12:Mazda 85.4 11:Chry 86.7
13:Peu 85.1 12:Mazda 86.4
75 80 85 90 95 75 80 85 90 95
Source: VWSA research dept, 2010

17
2.12. On Vehicle Service

As indicated in figure 2.3 below, each bar represents each manufactures score,
the blue bar represents Volkswagen brand and the red bar represents the Audi
brand. CCSI results for the period of January to June 2009 VW rated at position
nine with a score of 81.9 percent amongst all brands including premium brand,
excluding premium brand and only focusing on volume brand VW rated position
six. CSI results for the period of April to September 2009 VW rated at number
seven with a score of 82.6 percent. The objectives of Project 1 2010,
Volkswagen of South Africa (VW and Audi) is planning to be number one on
vehicle servicing on both volume and premium brands.
Figure 2.3 Vehicle Servicing CCSI and CSI Ranking
CCSI Sample
CSI Sample

1:Lexus 91.7
1:Lexus 91.9
2:Mits 86.8
2:Chev 87.0
3:MB 86.3
4:Chev 85.7 3:Mits 86.8
5:Toyota 85.3 4:MB 86.3
6:Nissan 83.7 5:Toyota 85.5
7:Mazda 83.4 6:Mazda 82.7
8:Audi 82.7 7:VW 82.6

9:VW 81.9 8:Chry 82.4
10:Opel 81.6 9:BMW 82.0
11:BMW 81.1 9:Opel 82.0
12:Ford 79.6 11:Audi 80.8
13:Volvo 79.4 12:Vol vo 78.4
13:Chry 79.4 13:Ford 77.8
15:Fiat 76.9 14:Mini 77.6
16:Mini 76.5 15:Fiat 77.4
17:Ren 76.2 16:Ren 76.9
18:Alfa 71.9 17:Alfa 71.9
19:Peu 70.1 18:Peu 69.4
65 70 75 80 85 90 95 65 70 75 80 85 90 95

18
2.13. Overall Index (Sales and Service)

As indicated in figure 2.4 below, the overall index, that is both Sales and Service
index for the period of January to June 2009, VW brand is rated at position seven
on CCSI with a score of 86.8 percent amongst all segments, however position
four on the volume brand segment. On CSI VW brand is rated at position five on
CSI with a score of 87.4 percent amongst all segments, however position three
on the volume brand segment.
Figure 2.4 Overall Index (Sales and Service) CCSI and CSI Ranking
CCSI Sample CSI Sample

1:Chev 89.7
1:Chev 90.0
2:Toyota 89.3
2:Toyota 89.5
3:MB 88.8
3:MB 89.3
4:Nissan 87.6
4:BMW 87.8
5:BMW 87.2
5:VW 87.4
5:Audi 87.2
6:Opel 87.1
7:VW 86.8
7:Audi 86.4
8:Opel 86.7
8:Mazda 84.6
9:Mazda 84.4
9:Chry 84.5
10:Ford 83.4
11:Ren 83.1 10:Ren 84.0
12:Chry 82.9 11:Ford 83.2
13:Peu 77.6 12:Peu 78.7
50 60 70 80 90 100 50 60 70 80 90 100

19
2.14. Conclusion
It is the overall index score and rating that will determine by the end of 2010
whether Volkswagen as a brand, that is VW and Audi will reach its 2010 Project
1 objectives. It should be noted that whenever looking at CSI and CCSI scores,
volume brands and premium brands should always be looked at separately as
they are totally two different markets.
The following chapter is focusing on the literature review of talent management,
the process in its broader context.
20
CHAPTER THREE
UNDERSTANDING TALENT MANAGEMENT
3.1. INTRODUCTION
The growing effects of the information economy, globalisation and changing

demographics are coinciding to create a new era in business, the era of talent
(Gubman, 1998:292). Whether it is called people, labour, intellectual capital,
human resources, talent or some other term, the resource that lies within
employees and how they are organised is increasingly recognised as critical to
strategic success and competitive advantage (Boudreau & Ramstad, 2007:4).
Tanton (2007) explains effective talent management is essential to achieving
organisational excellence and is a driving force for business success.
South African organisations have some unique challenges when it comes to

attracting and retaining people (Fisher & Davey, 2007). Attracting and keeping
top talent will continue to be a challenge for managers in organisations of all
sizes and types, so it is important to understand what attracts top talent and use
those factors in job advertisements, organisations website and in conversation
with employees and job candidates (Ahlrichs, 2003:196). Ability to attract,
manage and retain talent will determine whether success is realised (Gubman,
1998:292).
Recruitment approaches will have to change significantly to enable

organisations to move into a new era of international competition. Recruiters
must be aware of the factors influencing job choice, as this will enable them to
give better advice and to make better choices when recruiting candidates
(Swanepoel, Erasmus, Van Wyk & Schenk, 2003: 264).
Johnson (2000:30) argues that the prices for talent are going up and the only
success factors will be how much longer an organisation can keep top talent than
21
competitors and how quickly can these organisations plug the holes left by the
talent that left.
3.2. DEFINITION OF TALENT AND TALENT MANAGEMENT

Boudreau & Ramstads (2007:2) definition of talent is a resource that includes the
potential and realised capacities of individuals and groups and how they are
organised, including those within the organisation and those who might join the
organisation.
Bechet (2008:19) defines talent management as a collection of innovative actions

and solutions that allows an organisation to maximise the effectiveness of the
talent it employs.
Joubert (2007:6) defines talent as a persons power or ability to repeatedly

inspire and arouse emotion in other people.
Michaels, HandfieldJones and Axelrod definition of talent cited in Cartwright

(2003:6) is the sum of a persons abilities, including intrinsic gifts, skills,
knowledge, intelligence, attitude, drive and the ability to learn.
Stockley (2005) defines talent management as a conscious, deliberate approach

undertaken to attract, develop and retain people with the aptitude and abilities to
meet current and future organisational needs.
3.3. ATTRACTING AND SOURCING TALENTED EMPLOYEES

Attracting talent means creating an employment brand or image in the
marketplace that naturally attracts the attention of the candidates who have a
high level of fit to the organisation (Atkins, McCutcheon & Penna, 2004:8).
22
3.3.1. Brand image as a competitive advantage

A companys brand is what differentiates its products or services from others.
Recruiters from well-known businesses need not describe to applicants what it is
that they make or do. Lesser-known and unknown organisation must work hard
at cultivating their brand image (Arthur, 2006:11). An organisation that starts
closing plants and laying-off workers, quickly slips off the hot talent A-list
(Johnson, 2000:77).
Figure 3.1: Brand profile most desired by high-value talent

Organisational Values Organisational Culture
Make honesty and integrity the There's no morale boost that beats
cornerstone of our spirit. working in a team where creativity and
Emphasize excellence in all that innovation are valued.
we do, and demonstrate caring
in all our relationships.
Organisation Brand Strength Organisation Leadership
Be known as a good place for Set a strong vision, manage effectively to
talented people to work. Be realise that vision and keep me well
known for superior quality and informed. Tell it often and tell it straight.
service as an industry leader.
Work Environment Compensation/Benefits/Development
Giving me autonomy to solve Competitive compensation is a deal-
problems when and where I breaker. But, fairness in linking pay to
want is great. But don't let go of performance and support for work, family
the lifeline, keep me in the loop balance are the deal- makers.
on changes taking place.
Source: Ahlrichs, 2003:197
Figure 3.1 above sums-up the entire brand profile requirements that attract and
retain high talented employees to an organisation.
23
3.3.2. Recruiting strategies

Often, talent management processes assume that most (if not all) of an
organisations talent needs will be recruited from the outside. Critical talent needs
can be met by utilising or redeploying current staff or by using part time staff,
contractors, consultants and other contingent workers (Bechet, 2008:264).
The choice of recruitment method depends on the vacancy to be filled, but the
elements of studying the job and the applicants, comparing what each has to
offer against the demands of the job and subsequently following up the selection,
are common to all methods (Ungerson, 1983:37). Traditional recruitment sources
reach a wide audience and are usually costly. Innovative recruitment sources
appeal only to certain work environments during specific market conditions
(Arthur, 2006:46). Recruiting sources include:
Traditional sources:
Newspaper and journals: these are the most familiar places to place
advertisements and are where most job seekers begin their search (Dale,
2006:43).
Internet: the shortage of suitably qualified applicants is forcing employers
to be more creative about filling vacancies and some are seeking recruits
abroad (Dale, 2006:44).
Innovative sources:
Airplane banners: attention getters, but also intrusive.
Company sponsored social events: cost effective, reaches a limited
number of people (Arthur, 2006:47).
24
Figure 3.2: Strategic framework for employee recruiting
Source: http: docstoc.com (2010:6).
Figure 3.2 above illustrates the strategic framework for employee recruiting.
There are two approaches used in business today:
Broad skill scope: strategy focuses on attracting a large number of
applicants.
This approach makes sense when a lot of people have characteristics needed
to succeed in the job. Organisation using the Bargain Labourer HR Strategy
would use this approach to higher a large number of non-specialised
employees, who often stay with the company for short periods of time.
Organisation with a Loyal Soldier HR Strategy seeks to keep employees for
longer periods, but the employees do not need specialised skills to succeed
(http: docstoc.com, 2010:7).
Targeted skill scope: strategy seeks to attract a small group of applicants

who have a high probability of possessing the characteristics that are needed
to perform the specific job. This approach is used when looking for a very
limited number of applicants with a very specific or rare set of skills.
25
Therefore it is clear from the strategic recruitment framework that the choice
of recruiting strategy largely depends on the vacancy to be filled and the skill
level required from the incumbent (http: docstoc.com, 2010:8).
3.4. EMPLOYEE TALENT MANAGEMENT

There is the growing amount of empirical evidence that shows clear relationship
between excellent talent practices and improved shareholder returns. Talent
management recognises that different people make different contributions to the
enterprise and that top talent is the key competitive differentiation (Forman,
2005:6). In order to be most effective, talent management must align with
company strategy, define leadership criteria that are consistent across all
functional areas and identify the technical skills that are needed for growth
(McGarrity, 2007).
Figure 3.3: Illustration of a talent management process
Source: Bersin & Associates, 2007

26
Figure 3.3 above shows practical talent management process as a continuos

circle instead of a linear approach. It highlights critical skills gap analysis,
compensation and benefits, recruiting and training and development. At the
centre of the talent management process are job roles, job descriptions and
competency models as being central to the process.
Figure: 3.4: Traditional approach to Talent management process
Source: Deloitte, 2005:1.
Figure 3.4 above shows a traditional approach to talent management as a linear

activity that begins with acquiring talent and retaining talent, as two areas of
focus. The traditional approach to talent management has focused on the
recruitment and retention activities. While these are critical issues, it is also
important to have a holistic approach to talent management (Deloitte, 2005:1).
3.4.1. Analysis of future skills requirements (skills gap analysis):

If professional firms are to respond to the changes in their market and business
environment, they will need to identify the type of staff and the skills they require
in the future and these may be different to those in the past (Meyer, 2005:5). This
process is identified as important, an often overlooked function in many
industries. It helps identify roles, individuals and competencies that are leaving
(Bersin & Asscociates, 2007).
27
3.4.2. Training and development:

One of the distinctions of a successful talent management program is the
creation of talent pools within a company, which provides a reliable and
consistent internal source of talent. The development of talent pools make it
easier to train and develop desirable skills and traits in a broader group of
employees, which results in improvement of performance across functions and
levels (McGarrity, 2007). But development activities can be agreed and targeted;
participants must have a firm grasp of the areas in which they have strengths and
those they need to develop (Atkins et al. 2004:20).
The biggest concern with development seems to be attrition, companies invest in

employees and employees leave. The way companies deal with the attrition
problem is getting employees to share development cost (Cappeli, 2009).
3.4.3. Competencies assessment:

Having identified the future strategy and challenges facing the organisation, the
next step is to identify the competencies and other success criteria, which the
firm will require to achieve its strategy. It is essential that these are identified and
form the basis of personal career development (Meyer, 2005:6).
Competencies are the gauges for job success. There are four primary
competency categories, namely:
Tangible competencies;
Knowledge based competencies;
Behaviour based competencies; and
Job specific competencies;
(Arthur, 2006:128).
28
3.4.4. Employee Compensation and benefits

This is an integral part of people management. Here organisations try to tie the
compensation plan directly to performance management so that compensation,
incentives and benefits align with business goals and business execution (Bersin
& Associates, 2007).
Remuneration is the process, which takes place after functions have been
ranked and through which a salary structure will be established (Poels, 1997:9).
The purpose of remuneration and rewards is to demonstrate tangibly to
employees their relative value within the organisation and it is also a way for
employees to evaluate their comparative worth within the labour market. In this
sense, the remuneration strategy affects both organisational capacity and
employee commitment (Brewer, 1993:121).
Items such as pensions, sick pay, holidays and varying range of other benefits
are an integral part of every companys condition of employment (Armstrong &
Murlis, 1980:140). Company salary scales must be adequate to attract and keep
the people the business needs. Whether or not the employee is satisfied with his
salary will largely depend on his perception of his job, combined with
expectations of the rate at which his salary should increase with experience
(Bird, 1989:104).
3.5. RETAINING TALENTED EMPLOYEES

Todays talented individuals know their worth and also know that there are those
who wish to use their talents. Organisation need to think through how they can
retain talent within organisation (Cartwright, 2003:96). One of the best ways to
retain key individuals is to make sure that they are fully engaged in the work they
are doing and know that the contributions resulting from that engagement are
recognised and appreciated (Bechet, 2008:267).
29
3.5.1. Employee engagement and commitment

Kock & McNamaras (2009) definition of employee engagement is a
psychological state within which an employee connects and identifies at a
personal level with their job and organisation, resulting in retention and improved
performance. When a committed employee serves a customer, the customer
senses it and responds positively, becoming more committed in turn. Employees
who identify with their organisation transfer that identity to customers they
interact with (Ulrich & Smallwood, 2003:92). Employee commitment is essential
for the success and survival of the organisation (Brewer, 1993:24). Creating
commitment requires a comprehensive management programme, one consisting
of a package of concrete management practices and personnel policies (Dessler,
1993:10).
Employee engagement promotes a positive service climate and customer loyalty.

Organisational resources and employee engagement predict service climate,
which in turn, predicts employee performance and then customer loyalty (Cascio
& Boudreau, 2008:129). Achieving competitive advantage, organisations must
find a way to create and then sustain the level of energy and passion that people
bring to work. The way to do that is by creating and sustaining a culture where
engagement is not only the norm but one which attracts the kinds of people who
are disposed to doing well in that kind of environment (Macey, Schneider,
Barbera & Young, 2009:43).
Employee attitudes drive not just customer service but also turnover. An ability to
see the connection between employees work and the companys strategic
objectives is a driver of positive behaviour (Becker, Huselid & Ulrich 2001:27).
How to develop employee engagement?

1. Clear career expectations regarding the job: if the expectations are not
clear and the basic materials and equipment not provided, negative emotions
such as boredom or frustration may result (Mazzuca, 2007:3).
30
2. Connect: employee engagement is a direct reflection of how employees feel

about their relationship with the boss (Ambler, 2007).
3. Build trust: trust is the foundation upon which all relationships rest, and for
which all ideas take on the shape of possibilities. If the intentions are suspect,
any project or idea cannot move forward. Resistance is intensified without trust,
but with trust all things are possible (Brenner, 2010).
4. Regular feeback at all level: feedback is a key tool enabling employees to

have a sense of where they are going (Mazzuca, 2007:3).
5. Convey: Leaders clarify their expectations about employees and provide

feedback on their functioning in the organisation (Ambler, 2007).
There are more than five steps in developing employee engagement that the
researcher has come across; different authors give different number of steps.
The five steps listed above, based on the research are some of the most popular
steps in employee engagement.
3.5.2. Organisational culture

A positive culture helps employees stay with the organisation. Understanding
corporate culture and using it as a retention strategy has become the subject of
much research. Culture helps employees feel connected to their company and
job (Phillips & Connell, 2003:169). Managers are the living, breathing
embodiment of the culture of the organisation. It is important that the messages
they are sending are aligned with the overall corporate culture (Ahlrichs,
2003:63). Social support, leadership and good work-life balance are part of the
culture solution (Phillips & Connell, 2003:168).
31
Several alternative approaches to leadership emerged in line with the

behavioural movement in the late 1950s. The first of these approaches was to
delineate characteristic patterns or styles of leadership behaviours such as
Lewins three classical styles of leadership behaviour
(Swanepoel et al. 2003:344).
Classical leadership Styles:

Authoritarian (Autocratic): leader retains all authority and responsibility.
Primary strength: stresses prompt orderly and predictable performance.
Weakness: approach tends to stifle individual initiative
Participative (Leadership): leader delegates a great deal of authority, while

retaining ultimate responsibility.
Primary strength: enhances personal commitment through participation.
Weakness: democratic process is time consuming (Swanepoel et al. 2003:345).
Delegative (Laissez-faire): leader denies responsibility and abdicates authority

to group. Group members are told to work things out themselves and to do the
best they can.
Primary strength: permits self-starters to do things as they see fit without leader
interference.
Weakness: group may drift aimlessly in the absence of direction from leader
3.5.3. Motivation
Motivation is a willingness to do something and is conditioned by actions ability
to satisfy some need of the individual (Swanepoel, et al. 2003:324).
Several motivation theories work on the assumption that given the chance and
right stimuli, people work well and positively. Theorist Abraham Maslow cited in
Heller (1998) grouped them into five areas. The models of work motivation
32
suggest that people work primarily out of psychological and social needs and
continue to do so provided they are adequately compensated. What is important
in looking at these models is the notion that employees do not regard their jobs in
a purely instrumental sense, or as simply a way to earn money. People work to
satisfy a range of needs (Brewer, 1993:9).
Maslows hierarchy of needs:

Figure 3.5: Illustration of Maslows hierarchy of needs
Source: http: jayderagon.com (2009)
Maslows theory of hierarchy of needs simply stipulates that within every person
there exists a hierarchy of five need levels, depicted in figure 3.5. The five levels
are namely:
Self-Actualisation: realising individual potential, winning and achieving;
Esteem Needs: being well regarded by other people, appreciation;
33
Social Needs: interaction with other people, having friends;

Safety Needs: a sense of security, absence of fear; and
Physiological Needs: warmth, shelter, food, sex a human beings animal
needs;
(Heller, 1998:8).
Maslows hierarchy simply means that as a lower level of needs become

substantially fulfilled the next higher order need increases in strength and thus
becomes a powerful motivator. A person fighting for his or her survival (that is, a
person whose safety needs are unfulfilled) will not be motivated by opportunities
to fulfil his or her status needs, because safety as a lower-order need must first
be satisfied before the higher-order esteem needs (Swanepoel, et al. 2003:326).
Hertzbergs dual theory

Using Maslows view of motivation, Herzberg cited in Brewer (1993) proposed
two categories of needs. The first category of needs is termed motivators which
includes Maslows higher order of needs. The second category of needs
identified by Hertzbergs research related to extrinsic factors known as hygiene
factors which related primarily to Maslows lower order of needs (Brewer,
1993:10).
Motivation factors associated with achievement and recognition were most

common amongst individuals who experienced satisfaction. Conversely, the
absence of these factors did not result in dissatisfaction but rather no satisfaction
was experienced. The hygiene factors such as work condition, pay, supervision
and company policies, if perceived inadequate, lead to feelings of dissatisfaction.
However, if these factors were perceived as adequate it did not lead to feelings
of satisfaction, instead individuals experienced feelings of no dissatisfaction
(Poisat, 2006:45). This represents the fundamental difference between the
traditional view of job satisfaction and Hertzberg theory.
34
3.5.4. Work-life balance:

Balancing the interest of employees and employers is the key and a number of
companies have arrangements to negotiate compromises (Cappelli, 2009).
When work interferes with family time and relationships, there is a higher
absenteeism rate and turnover than when the individual is able to balance family
needs with the support of organisational programs (Phillips & Connell, 2003:172).
Employees are asking for a workplace that helps them balance the demands of
their work and family lives, rather than forcing them to choose one over another
(Kaye & Jordan-Evans, 2004:51).
3.6. CONCLUSION
There could be no doubt that talent management is important for organisational
excellence and for business success as the research already reveals. Many
authors referenced in this chapter have emphasised the importance of having
committed, engaged employees and employees with positive attitude. It has
been argued in this chapter that organisational culture and work environment has
to be conducive for talent to be nurtured and developed. Creating talent alone is
not enough; creating opportunities for the talented employees to flourish is also
essential.
The motivational theories also do explain that a blanket approach to talent

management is not they way to go, as different employees are at different levels
of the motivational hierarchy and therefore motivated by different things.
The next chapter is on research methodology, design and construction of

questionnaire, sampling methods and methods of collecting data.
35
CHAPTER FOUR
RESEARCH METHODOLOGY
4.1. INTRODUCTION
Before discussing research methodology it is important to understand the
meaning, purpose, types and characteristics of research. Sekaran (2000:3)
defines research as simply the process of finding solutions to a problem after a
thorough study and analysis of the situational factors. Some research may seek
confirmation of existing facts rather than the discovery of new ones (Riley, Wood,
Clark, Wilkie & Szivas, 2000:7).
There are many different purposes of a research project. Three common ones
are:
To review existing knowledge;
To describe some situation or problem; and
Explanation;
(Mullins, 1994:3).
The choice of the type of research depends on the following factors:

The object of the research;
The aim of the research; and
The nature of the data to be collected; (Bless & Higson-Smith, 1995:42).
Types of Research
Research does have different meanings for different people but there are some
general areas of agreement (Riley et al. 2000:8). The following are some of the
research types.
36
Descriptive and explanatory research

Descriptive research is largely concerned with what, when, where and who
questions, whereas explanatory research goes beyond this and is concerned
with why and how questions. Descriptive research is thus essentially information
in character. Explanatory research is directed towards exploring the relationships
between concepts and phenomena (Riley et al. 2000:9).
Applied and basic research

A particular product may not be selling well and the manager might want to find
reasons for this in order to take corrective action, such research is called applied
research. The other is to generate a body of knowledge by trying to comprehend
how certain problems that occur in organisation can be solved (Sekaran, 2000:6).
Characteristics of research
Research begins with a question in the mind of the researcher:
Research requires a plan and design;
Research demands a clear statement of the problem;
Research deals with the main problem through sub-problems;
Research seeks direction through appropriate hypotheses;
Research deals with facts and meaning; and
Research is circular;
(Mullins, 1994:2).
4.2. RESEARCH PARADIGM

The term paradigm refers to the progress of scientific practice based on peoples
philosophies and assumptions about the world and the nature of knowledge, in
this context it is about how research should be conducted (Collis & Hussey,
2003:46). According to Creswell (2007:19) a paradigm or worldview is a basic set
of beliefs that guide action.
37
Positivist paradigm Quantitative approach

The positivists define their approach as the study of observable human
behaviour. The positivist aims at uncovering general laws of relationships and or
causality that apply to all people and at all times (Welman & Kruger, 1999:7).
Major criticism of positivism

Critics of positivism have a number of concerns motivated by the underlying view
that positivist approaches to research are inappropriate to the study of social
phenomena. This is because social phenomena are the products of human
action and the study of people and their actions is not amenable to research
techniques most closely associated with positivism (Riley et al. 2000:13).
Anti-positivist paradigm Qualitative approach

Qualitative research is a situated activity that locates the observer in the world.
The qualitative researchers study things in their natural settings, attempting to
make sense of or interpret phenomena in terms of the meanings people bring to
them (Creswell, 2007:36). Anti-positivist hold that the natural-scientific method is
designed for studying molecules, organisms and other things and is thus not
applicable to the phenomena being studied in the human behavioural science
(Welman & Kruger 1999:7).
This study followed a quantitative paradigm because of the nature of the problem
statement and the nature of data collected.
4.3. SAMPLE DESIGN

A sample is part of something larger called a population, the population is the
totality of entities in which we have an interest, that is the collection of individuals,
objects or events about which inferences are to be made (Diamantopoulos &
Schlegelmilch, 2000:10).
38
4.3.1 Defining the population to be sampled

The first step in sampling is to define the population of interest clearly and
accurately (Sapsford & Jupp, 2006:27).
The target population of this study consisted of all Uitenhage based VWSAs
Group Service division employees that had at least a years working experience
in the company as they were more likely to be aware of the divisions talent
management process and the companys 2010 project 1 objectives.
VWSAs Group Service employees defined

Figure 4.1 below shows the total number of male and female salaried employees
working in the Group Service division as well as the population size.
Figure 4.1: Group service population by gender

M F N (Population size)
57 17 74
Source: (VWSAs intranet, 2010)
Figure 4.2 below shows the number of Supervisors, Managers and staff
employees working in the division.
Figure 4.2: Group service population by level

Level
Supervisor Manager Staff N
11 4 59 74
Source: (VWSAs intranet, 2010)
Figure 4.3 and Figure 4.4 below show the number of Supervisors and Managers
by gender working in Group Service division.
39
Figure 4.3: Supervisors by gender Figure 4.4: Managers by gender
Supervisor Manager
M F Total M F Total
11 0 11 4 0 4
Source: (VWSAs intranet, 2010) Source: (VWSAs intranet, 2010)
4.3.2. Sampling methods

Having identified and defined the population from which the sample was drawn,
the next step was to decide how the sample itself would be selected. The
methods fell into two main categories, probabilistic sampling and non-
probabilistic sampling (Sapsford & Jupp, 2006:29).
Probability sampling is most commonly associated with survey based research

where inferences about a population are made in order to answer the research
questions or to meet objectives (Saunders, Lewis & Thornhill, 2000: 153).
The process of probability sampling can be divided into four groups:

1. Identifying a suitable sampling frame based on research questions or
objectives;
2. Deciding on suitable size;
3. Selecting the most appropriate sampling technique and selecting the sample;
and
4. Checking that the sample is representative of the population;
(Saunders et al. 2000:153).
Types of probability sampling

Simple random sampling, in order to achieve a true simple random sample
a complete list of all possible units in the population from which to choose a
sample must be available (Nardi, 2006:113).
40
Stratified random sampling, the principle of random sampling is to divide a

population into different groups, called strata, so that each element of the
population belongs to one and only stratum (Bless & Higson-Smith, 1995:91).
Systematic random sampling, this method involves taking every nth
element in the sampling frame until the total is reached (Nardi, 2006:116).
Multistage or cluster sampling, is a type of sampling in which the added
information desired from certain cases is obtained in the first contact instead
of being secured in a second survey (Balsley & Clover, 1988:114).
Non-probability sampling is where the probability of selecting a single element is

not known (Bless & Higson-Smith, 1995:94).
Types of non-probability sampling

Convenience sampling is simply sampling people that are easy to survey.
With convenience sampling the sample is not known if it represents the
population (Mitchell & Jolley, 1992:475).
Quota sampling is designed to make a convenience sample more
representative of the population. Like stratified random sampling, quota
sampling is designed to guarantee a sample matched population on certain
characteristics (Mitchell & Jolley, 1992:475).
Judgemental sampling, subjects selected on the basis of their expertise in
the subject investigated (Sekaran, 2000:281).
Therefore from the above discussion the most suitable method for this study was
the stratified random sampling, which is the form of probability sampling. The
sample has already been clearly defined in the previous pages; therefore
stratified random sampling was a way to guarantee a proportionate
representation of the population.
41
4.3.3. Sample size

Firstly, when determining sample size the population size must be kept in mind.
In general, it holds that the smaller the total population, the relatively larger the
sample should be to ensure satisfactory results (Welman & Kruger, 1999:64).
There are four key statistical considerations in sample size determination:

Degree of variability in the population, the more heterogeneous the
population the larger the sample size needed to capture the diversity in the
population;
Degree of precision associated with population estimates based on a

sample, the greater the precision required, the larger the sample size needed;
Degree of confidence associated with any estimates made. There is a trade-

off between precision and confidence with a sample of fixed size; and
A final statistical consideration concerns the extent to which the intended

analysis will involve the use of sub-samples for cross-classification
purposes and make use of statistical techniques which assume a minimum
sample size to produce meaningful results
(Diamantopoulos & Schlegelmilch, 2000:17).
42
Figure 4.5: Sample Size for Given Population Sizes

N S N S
10 10 220 140
15 14 230 144
20 19 240 148
25 24 250 152
30 28 260 155
35 32 270 159
40 36 280 162
45 40 290 165
50 44 300 169
55 48 320 175
60 52 340 181
65 56 360 186
70 59 380 191
75 63 400 196
80 66 420 201
85 70 440 205
90 73 460 210
95 76 480 214
100 80 500 217
Source: Adapted from Sekaran, 2000:295
Krejcie and Morgan cited in Sekaran (2000) greatly simplified the sample size
decision by providing a table that ensures a good decision model. Figure 4.5
provides that generalised scientific guideline for sample decisions (Sekaran,
2000: 296).
Therefore based on figure 4.5 the researcher aimed for a target sample of fifty-
nine (59) from the eligible population size of seventy-one (71).
43
4.3.4. Proportionate representation of population

Population size (N) = 74
Eligible population size for survey (N) = 71
Targeted sample size (S) = 59
Selected sampling method, was stratified random sampling
Therefore,
Sampling fraction = 59 / 71 = 0.830
Representation of Group Service population by category was worked out the

following way:
1. Targeted sample of male employees

= Sample fraction x number of male eligible employees
= 0.830 x 55
= 45.70
Therefore 46 male employees was the targeted number of respondents.
2. Targeted sample of female employees

= Sample fraction x number of female employees
= 0.830 x 16
= 13.28
Therefore 13 female employees was the targeted number of respondents.
3. Targeted sample of supervisor employees

= Sample fraction x number of supervisors
= 0.830 x 11
= 9.13
Therefore 9 supervisors was the targeted number of respondents.
4. Targeted sample of manager employees

44
= Sample fraction x number of managers

= 0.830 x 4
= 3.332
Therefore 3 managers was the targeted number of respondents.
Summary
There were 46 male employees that were targeted respondents, of that 46, 9
employees were targeted male supervisors and 3 were targeted male managers.
In essence this meant the researcher targeted 34 male employee staff members
out of a population of 71 eligible employees. Since there are zero female
supervisors and managers, this meant the researcher targeted 13 female
employees who all happened to be salaried staff members, this took the total of
salaried staff targeted sample to 34 + 13 = 47. In total the targeted sample
numbers of salaried staff, supervisors and managers added together gave the
total targeted sample of 59. This methodology ensured that the researcher was
able to make accurate and representative conclusions about the population
studied.
4.4. DETERMINANTS OF RESPONSE RATE

Towler (2003) explains that a survey must have a good response rate in order to
produce accurate, useful results. Low response rate can lead to inaccurate
estimates and large standard errors resulting in incorrect population conclusions
being drawn (de Baux, 2004:7). A variety of factors influence the response rate,
the following are some of the factors that can determine the response rate.
Length, the longer the interview or questionnaire the less likely someone is to
begin it. The longer it takes to complete, the better chance there is the
respondent will either terminate the survey or leave large numbers of
questions unanswered (Mullins, 1994:50).
Incentives, some firms offer cash incentives, but this is fraught with danger.
No matter how much or how little is offered, someone will object to it being
45
either too much or not enough. Offering a small amount to everyone may be
perceived to be nothing more than a bribe and may not lead to any increase
at all (Towler, 2003).
Relationships to respondents, the better the respondents are known to the
researcher the more likely is a higher response rate. In a smaller sample,
building relationship with respondents may make them more likely to respond
(Response rate & surveying techniques 2009:1).
Simplicity, if the survey is complex and hard to understand, the response
rate will be low (Towler, 2003).
Formula to calculate response rate:
total number of responses

Response rate =
total number in sample - (ineligible + unreachable)
Source: Saunders, et al. 2000:157
All the targeted respondents in this research study were working in the same
building as the researcher and most had good relationship with the researcher.
The researcher used the good relationship he had with the targeted respondents
to encourage higher response rate. Follow-ups were made to those that had not
responded and no money was used as an incentive to those who were not
responding despite the follow-up. Lastly, in order to secure co-operation an
advance notice in the form of a personalised letter was sent to the targeted
respondents informing them of the study.
46
4.5. DATA COLLECTION METHODS

Planning and managing data collection systematically requires an understanding
of the different types of data allied to the different approaches to, methods of and
specific techniques of data collection (Lancaster, 2005:65).
Primary versus secondary data

Primary data is data gathered and assembled specifically for the research project
at hand (Zikmund, 2001:167). Primary and secondary sources each have
strengths and weaknesses. With primary sources, researchers can collect
precisely the information they want. Limitation with secondary sources is that the
information may not meet ones specific needs (Cooper & Emory, 1995:241).
Although there are several facets to the design and categorisation of research
methodologies a major distinguishing feature between different research
methodologies is indeed the different approaches of data collection (Lancaster,
2005:68). Data collection methods include, but not limited to:
Observation, simple observation is the recording of events as observed by

an outsider. Participation observation has been found particularly useful for
anthropological research and studies of minority groups. Observation as
method of data collection has some major limitations; it is costly and time
consuming (Bless & Higson-Smith, 1995:106).
Self-administered questionnaires, questionnaires can be mailed and

returned at a later time in person or by mail, distributed to a large groups of
people in one location at one time, such as in a classroom or at a meeting, or
can be sent through email or placed on a web page on the internet (Nardi,
2006:67).
47
Advantages of Self-Administered questionnaires:

1. They are easily distributed to a large number of people;
2. They are relatively inexpensive to conduct;
3. They allow anonymity; and
4. Yield reliable data with ease and economy
(Mitchell & Jolley, 1992:456).
Disadvantages of Self- Administered questionnaires:

1. Usually have a low return-rate;
2. Errors or oversight in the questionnaire cannot be corrected; and
3. Researcher has no way of knowing whether respondents are correctly
interpreting the questions
(Mitchell & Jolley, 1992:456).
Face-to-face interviews in a free format, these are conducted,

approximately, like natural conversation between two people. They are often
recorded in full analysis, although the interviewer may take continuous notes,
this is difficult to do while concentrating on the management of the interview
(Sapsford & Jupp, 2006:94).
Advantages of face-to-face interviews,

1. Can clarify the questions, clear doubts; add new questions (Sekaran,
2000:250).
2. Response rates tend to be the highest with face-to face interviews (Nardi,
2006:70).
3. Can read non-verbal cues (Sekaran, 2000:250).
4. Respondents tolerate longer face-to-face interviews (Nardi, 2006:70).
48
Disadvantages of face-to-face interviews,

1. Finding respondents and interviewing them takes more time (Nardi, 2006:70).
2. Respondents might be concerned about the confidentiality of information given
(Sekaran, 2000:250).
After weighing the advantages and disadvantages of the different data collection
methods discussed in this research study, the researcher used the self-
administered questionnaire that was sent through an email to all the eligible
respondents. The choice of this particular data collection method was because of
the previously discussed advantages. The researcher attempted to overcome the
drawbacks of this type of data collection method. The method of improving
response rate, as already been discussed in the previous section that talks about
determinants of response rate was followed. The researcher worked in the same
building as the respondents therefore the researcher was available at times to
clarify or answer questions that the respondents had.
4.6. DEVELOPING A QUESTIONNAIRE

The first essential condition in the process of constructing a questionnaire is to
decide what information is required and whether the questionnaire is for mail
survey, a personal interview survey or a telephone survey (Balsley & Clover,
1988:197).
Cooper & Emory (1995:303) discusses four major decision areas in developing a
survey instrument:
Question content, questions that merely produce interesting information
cannot be justified on either economic or research grounds. Each question
should contribute significant information toward answering an investigative
question;
Question wording, the vocabulary used must be common to both parties;
Response structure, the options range from open to closed questions; and
49
Question sequence, the first challenge is to awaken the respondents interest

in the study and motivate participation; this is done by choosing questions
that are attention getting and not controversial.
Zikmund (2001:315) recommends the following guidelines for a development of

questionnaire:
Avoid complexity, use simple and conventional language. Words used in

questionnaires should be readily understandable to all respondents;
Avoid leading and loaded questions. Asking leading and loaded questions is a
major source of bias in question wording;
Avoid ambiguity, be specific as possible. Items on questionnaire are often
ambiguous because they are too general. Consider indefinite words like
words such as often, occasionally, usually, regularly, frequently, many, good,
fair and poor;
Avoid double-barreled items. A question covering several issues at once is
referred to as double-barreled and should always be avoided;
Avoid making assumptions. Research that induces people to express
attitudes on subjects they do not ordinarily think about is meaningless; and
Avoid burdensome questions that may tax the respondents memory.
Researchers writing questions about past behaviour or events should
recognise that certain questions may make serious demands on the
respondents memory.
The questionnaire that was used in this research study was constructed to meet
the criteria specified by Zikmund (2001:315). The researcher also took into
account some of the major decision areas pertaining to survey instrument
outlined by Cooper & Emory (1995:303).
The versatility of a survey method is its greatest strength. It is an exceptionally

practical way to gather opinions, knowledge and behavioural intentions. Its
50
dependency upon the respondents verbal behaviour is its greatest weakness

(Cooper & Emory, 1995:321).
4.7. QUESTIONNAIRE COVERING LETTER

Parasuraman cited in Poisat (2006:234) believes that the primary purpose of the
covering letter is to win the co-operation of the respondents. They assert that
what the covering letter says and how it says can affect response rate. De Baux
(2004:12) outlines the contents of the cover letter as follows:
Request to comply and due date;

Why the recipient was chosen;
Who should respond (if specific person not identified);
Usefulness of the survey;
Confidentiality statement;
Contact details for queries and legitimacy;
Thank you for participation;
A real signature
A post script. To communicate instructions if the recipient is out of scope; and
Stamped return envelope.
In writing the cover letter for the questionnaire the researcher took into account
most the suggestion above regarding the content of the covering letter.
4.8. CONCLUSION
It can be observed from this chapter that indeed research design is the plan and
structure of investigation so conceived so as to obtain answers to research
questions. Despite the fact that the research process that was followed is
depicted and discussed in this chapter as if it were a step-by step linear process,
the researcher was mindful of the challenges that he faced in executing this
study. The next chapter is on analysis of results from the questionnaires that
were received back from the respondents.
51
CHAPTER FIVE
PRESENTATION AND ANALYSIS OF RESULTS
5.1. INTRODUCTION
The aim of this chapter is to present and analyse the biographical information of
the respondents, that is section A and C of the questionnaire, as well as section
B of the questionnaire. The second objective is to analyse and interpret the data
that was obtained during the empirical study. The results of section D of the
questionnaire are presented and interpreted, which focus on the key areas of
Talent Management. The empirical study was conducted using an electronic mail
(email) survey. A survey questionnaire, which served as the measuring
instrument, was developed as recommended by Zikmund (2001:315) in the
previous chapter and used for this purpose.
5.2. RESPONSE RATE

A covering letter addressed to each respondent together with the questionnaire
was sent on the 26 and 27 May 2010 to all seventy-one VWSA Group Service
division salaried employees, who were eligible to be surveyed according to the
criteria stipulated in the previous chapter. The aim of the letter was to win the co-
operation of the respondents and all the respondents were asked to return the
fully completed questionnaire by 4 June 2010.
Figure 5.1: Number of employees surveyed

Number of
Percentage
employees
Eligible employees 71 95.95%
Ineligible
2 2.7%
employees
Unreachable
1 1.35%
employees
Total 74
52
Chart 5.1: Number of employees surveyed
2.70% 1.35%
95.95%
Eligible employees Ineligible employees Unreachable employees
From chart 5.1 it can be observed that 96 percent of employees surveyed were
eligible to be surveyed according to the criteria set by the researcher in chapter
four section 4.3.1.
The survey response rate was 63 percent, with one ineligible respondent who
has less than a year working experience in the company and the researcher who
is ineligible to take part in his own study; the last employee could not be reached
because she was on maternity leave. The response rate was calculated as
described in chapter four and suggested by Saunders et al (2000:157).
Figure 5.2: Number of responses received before due date
Before due
Percentage
date
Number of responses
18 25.35%
received
Outstanding 53 74.65%
Total Eligible 71
53
Chart 5.2: Number of responses received before due date
25%
75%
Number of responses received Outstanding
Figure 5.3: Number of responses received after due date

After due
Percentage
date
Total number of responses
45 63.38%
received
Outstanding 26 36.62%
Total Eligible 71
Chart 5.3: Number of responses received after due date
37%
63%
Total number of responses received Outstanding

54
Figure 5.2 and chart 5.2 respectively show that 25 percent of the responses were
received before the due date of 4 June 2010 and 75 percent of responses were
still outstanding. Figure 5.3 and chart 5.3 respectively show the total number of
responses received after the due date, 63 percent response rate. The targeted
sample size was 59 out of a population of 71 as explained in chapter four,
therefore the targeted response rate was 83 percent. Most follow-ups were done
via electronic mail and some were face to face with the respondents. As
explained in chapter four on determinants of response rate, the researcher
heavily relied on his relationship with the respondents in order to get them to
complete and return the survey questionnaire. In the researchers opinion the
significant improvement in the response rate is because the researchers initial
due date was too soon for most respondents.
5.3. ANALYSIS OF RESPONDENTS BIOGRAPHICAL INFORMATION

(SECTION A OF QUESTIONNAIRE)
Prior reporting on the analysis and discussing the biographical information of the
respondents that took part in the survey, it is important to mention that the
researcher had the list of all employees working in Group Service division. The
list specified name, surname, gender and race of each employee in the division,
as well as the level and department where each employee works. The researcher
obtained this information from the companys intranet known as VIKI. The only
information which the researcher did not know upfront was the highest level of
education attained, age as well as the years of working experience of each
respondent.
5.3.1. Responses according to gender

Figure 5.4: Number of responses according to gender
Responses
Gender Percentage
received
Male 35 77.78%
Female 10 22.22%
Total 45
55
Chart 5.4: Number of responses according to gender
22%
78%
Male Female
From figure 5.4 and chart 5.4 it can be observed that 35 completed
questionnaires were from male respondents out of a total of 45 respondents that
took part in the survey. Secondly 10 completed questionnaires were from female
respondents out of a total of 45 respondents that took part in the survey. Figure
and chart 5.4 show the response rate by gender, 78 percent were male
respondents and 22 percent were female respondents. This result did not come
as a surprise to the researcher as the majority of employees in Group Service
division are male.
In chapter four paragraph 4.3.4 the researcher specified the targeted number of
male and female respondents, 46 male and 13 female respondents were
targeted.
56
5.3.2. Responses according to age distribution of respondents

Figure 5.5: Age distribution of respondents
Number of Response
Age group
response Rate
26 35 years 19 42.22%
36 45 years 16 35.55%
46 55 years 8 17.77%
56 65 years 2 4.44%
Chart 5.5: Age distribution of respondents
4.44%
17.78%
42.22%
35.56%
26 - 35 36 - 45 46 - 55 56 - 65
From figure 5.5 and chart 5.5 it can be observed that the number of respondents
that took part in the survey were from age group 26 to 35 years, forming 42.22
percent response rate. The next age group is 36 to 45 years with 35.55 percent,
then age group 46 to 55 years with 17.77 percent. Lastly is age group 56 to 65
years with 4.44 percent response rate. The respondents that did not complete
the questionnaire or took part in the survey, the researcher does not know their
age distribution and that made it difficult for the researcher to make inferences on
why they did not complete the questionnaire.
There was no response rate targeted by the researcher on age group

distribution, since this information was not known up-front by the researcher.
57
5.3.3. Responses according to race of respondents

Figure 5.6: Race of respondents
Number of Response
Race
response Rate
Asian 5 11.11%
African 3 6.67%
White 18 40.00%
Coloured 19 42.22%
Chart 5.6: Race of respondents
11.11%
6.67%
42.22%
40.00%
Asian African White Coloured
From figure 5.6 and chart 5.6 it can be observed that the majority of employees
according to race that completed and returned the questionnaire are coloured
respondents comprising 42.22 percent response rate. The next groups were
white respondents with 40 percent, Asian respondents with 11.11 percent and
African respondents with 6.67 percent response rate.
58
5.3.4. Responses according to educational qualifications
Figure 5.7: Respondents education level

Number of Response
Qualification level
response Rate
Completed Secondary 4 8.89%
Trade qualification 13 28.90%
Some college or university studies 7 15.56%
Completed degree or diploma 19 42.22%
Completed post graduate
2 4.44%
qualifications
Chart 5.7: Respondents education level
4.44% 8.89%
28.89%
42.22%
15.56%
Completed Secondary Trade qualification Some college or university studies

Completed degree or diploma Completed post gradute qualifications
From figure 5.7 and chart 5.7 it can be observed that the majority of respondents,
42.22 percent response rate have completed a degree or diploma. Followed by
28.89 percent of respondents who have completed trade qualification, 15.56
percent have some college or university studies, 8.89 percent have completed
secondary and 4.44 percent have completed postgraduate qualifications.
There was no response rate targeted by education level, since this information
was not known up-front by the researcher.
59
5.4. ANALYSIS OF RESPONDENTS ATTITUDE TOWARDS 1:10:100 BY 2010

STRATEGIC OBJECTIVES (SECTION B OF QUESTIONNAIRE)
In chapter three paragraph 3.5.1 on employee engagement and commitment,

Becker, Huselid & Ulrich (2001:7) explain that employee attitude drive not just
customer service but also turnover, they also assert that an ability to see the
connection between employees work and the company strategic objectives is a
driver of positive behaviour. The research finding on section B of the
questionnaire depicts the employees attitude towards the companys 2010
strategy.
5.4.1. Section B
a) Respondents extent of understanding of VWSAs 1:10:100 by 2010 Strategic
Objectives, is shown in figure 5.8 below.
Figure 5.8 Respondents extent of understanding of the Strategy
45%
40%
41%
35%
36%
30%
25%
20%
15%
10%
9%
5% 7% 7%
0%
To a very great To great extent To some extent To a small extent To a very small
extent extent
From figure 5.8 above it can be observed that 77 percent of respondents

understand VWSAs 1:10:100 by 2010 strategic objectives, and these
respondents extent of understanding varies from great to very great extent. Only
60
14 percent of the respondents understanding of 1:10:100 by 2010 that varies

from small to very small extent. The rest of the respondents, that form 9 percent,
understand 1:10:100 by 2010 strategic objectives only to some extent.
On this question the mean is 2.04 and standard deviation 1.17, this indicates the
respondents understand the 1:10:100 by 2010 strategy to a great extent. The
standard deviation of 1.17 tells the researcher the respondents spread or
dispersion on answering this question.
b) Respondents extent of excitement about VWSAs 1:10:100 by 2010 Strategic

Objectives, is shown in figure 5.9 below.
Figure 5.9 Respondents extent of excitement about the Strategy
35%
30% 32% 32%
25%
20%
15%
16% 16%
10%
5%
4%
0%
extent extent
From figure 5.9 above it can be observed that 64 percent of respondents are
excited about VWSAs 1:10:100 by 2010 Strategic objectives, and these
respondents extent of excitement varies from great to very great extent. Only 20
percent of the respondents whose excitement about 1:10:100 by 2010 varies
from small to very small extent. The rest of the respondents that form 16 percent
are excited about the 1:10:100 by 2010 strategic objectives only to some extent.
61
On this question the mean is 2.27 and standard deviation 1.21, this indicates the
respondents are excited about the 1:10:100 by 2010 strategy to a great extent.
The standard deviation of 1.21 tells the researcher the respondents spread or
dispersion on this question is more than the previous question.
c) Respondents extent of belief that VWSA will achieve Project 1 in 1:10:100 by

2010 Strategic Objectives is shown in figure 5.10 below.
Figure 5.10 Respondents belief that Project 1 will be achieved
45%
40%
39%
35%
34%
30%
25%
20%
15% 18%
10%
9%
5%
0%
0%
extent extent

believe that VWSAs Project 1 will be achieved by end 2010, and these
respondents belief varies from great to very great extent. Only 18 percent of the
respondents who believe from small to very small extent that Project 1 will be
achieved. The rest of the respondents that form 34 percent believe to some
extent that Project 1 will be achieved. On this question the mean is 2.60 and
standard deviation 0.89, this indicates the respondents believe that the 1:10:100
by 2010 strategy will be achieved to a great extent. Interestingly on this question
is that, 34 percent of respondents are neutral on their belief. The standard
deviation of 0.89 tells the researcher the respondents spread or dispersion on
answering this question is the least of all.
62
d) Respondents extent of belief that their work makes a real contribution towards
achieving Project 1 in 1:10:100 by 2010 Strategic Objectives is shown in figure
5.11 below.
Figure 5.11: Respondents belief that their work contributes in achieving Project 1
35%
30% 32%
25% 27%
25%
20%
15%
14%
10%
5%
2%
0%
extent extent

believe that their work makes a real contribution towards achieving VWSA
Project 1 by 2010, and these respondents belief varies from great to very great
extent. Only 16 percent of the respondents who believe from small to very small
extent that their work makes a real contribution towards achieving Project 1 by
2010. The rest of the respondents that form 25 percent believe only to some
extent that their work makes a real contribution towards achieving Project 1 by
2010. On this question the mean is 2.29 and standard deviation 1.10, this
indicates the respondents believe to a great extent that their work makes a real
contribution towards the 1:10:100 by 2010 strategy.
e) Respondents extent of pride in telling outside people about VWSAs Project 1

in 1:10:100 by 2010 Strategic Objectives is shown in figure 5.12 below.
63
Figure 5.12: Respondents pride in telling outside people about Project 1
35%
30% 32%
25%
23%
20%
20%
15%
14%
10% 11%
5%
0%
extent extent
From figure 5.12 above it can be observed that 55 percent of respondents are
proud to tell outside people about VWSA Project 1, this varies from great to very
great extent. Only 25 percent of the respondents who are proud in telling outside
people about Project 1 vary from small to very small extent. The rest of the
respondents, that form 20 percent, are only proud to some extent in telling
outside people about VWSA Project 1. On this question the mean is 2.47 and
standard deviation 1.38, this indicates the respondents to a great extent are
excited to tell outside people about the companys strategy.
In conclusion the respondents attitude towards the company strategy can be

described as positive. However it should be noted that the question that had the
highest mean (mean = 2.60) and the least standard deviation (standard deviation
= 0.89) was the third question, that is the question on whether the respondents
believe the organisation will achieve Project 1 in 1:10:100 by 2010. The high
mean on this question indicates that this is the only question that had the least
positive answer, but with least widely dispersed answer, than any other question
posed to the respondents on this section B.
64
5.5. ANALYSIS OF RESPONDENTS JOB INFORMATION (SECTION C OF

QUESTIONNAIRE)
This section of the analysis looks at the job information of the respondents that
took part in the survey. That is the departments where respondents work within
Group Service division, as well as years of experience in the company and level
of management within the division.
Figure 5.13: Respondents years of experience in the company
Number of Response
Years of experience
response Rate
0 - 4 years 16 35.56%
5 - 10 years 10 22.22%
6 - 15 years 6 13.33%
16 - 20 years 3 6.67%
21 - 30 years 7 15.56%
31 years and above 3 6.67%
Chart 5.8: Respondents years of experience in the company
7%
16%
35%
7%
13%
22%
0 -4yrs 5 - 10yrs 6 - 15yrs 16 - 20yrs 21 -30yrs 31 yrs +

65
From figure 5.13 and chart 5.8 above it can be observed that the majority of
respondents 35 percent fall within the 0 to 4 years working experience in the
company, followed by 22 percent of respondents who fall within the 5 to 10 years
working experience. Respondents with 6 to 15 years and 21 to 30 years working
experience are tied at 14 percent response rate each group. Lastly, respondents
with 16 to 20 years and 31 years and above working experience are also tied at 7
percent response rate each group.
There was no response rate targeted by years of working experience, since this
information was not known up-front by the researcher.
Figure 5.14: Respondents level of management within the division
Number of Response
Level of Management
response Rate
Manager 2 4.44%
Staff 36 80.00%
Supervisor 7 15.55%
Total 45 100%
Chart 5.9: Respondents level of management within the division
4.44%
15.56%
80.00%
Manager Staff Supervisor

66
From figure 5.14 and chart 5.9 above it can be observed that the majority of
respondents that took part in the survey are staff employees with 80.00 percent
response rate, followed by supervisors with 15.56 percent and lastly managers
with 4.44 percent response rate.
In chapter four paragraphs 4.3.4 the researcher specified that he targeted 3

manager respondents out of 4 managers that are available in the division, also 9
supervisor respondents were targeted as well as 34 staff respondents. The
researcher exceeded his target on staff respondents and this in the opinion of the
researcher is because of the easy access the researcher has to staff employees
compared to management employees.
Figure 5.15: Responses by department

Number of
Department Percentage
responses
Warranty 24 53.33%
TSC 13 28.89%
Back-office 1 2.22%
Service Marketing 4 8.89%
CIC 1 2.22%
Parts return centre 2 4.44%
Total 45 100.00%
Chart 5.10: Responses by department
2% 4%
9%
2%
54%
29%
Warranty TSC Back-office Service Marketing CIC Parts return centre

67
From figure 5.15 and chart 5.10 above it can be observed that most respondents
were from the Warranty department with 54 percent response rate, followed by
Technical support centre with 29 percent response rate, then Service marketing
with 9 percent response rate. Customer interaction centre and the back office for
training and dealer support each have a 2 percent response rate.
There are more employees in the Warranty department than any department in
Group Service division, hence 54 percent response rate in the Warranty
department.
5.6. ANALYSIS AND INTERPRETATION OF TALENT MANAGEMENT

PROCESS (SECTION D OF QUESTIONNAIRE)
As already mentioned in the opening paragraph of this chapter the purpose of

this section is to analyse, present and interpret the results of section D of the
questionnaire which addresses the key areas of Talent Management. Before
presenting the results, it is imperative to discuss the steps the researcher took in
ensuring that the data was ready for processing.
Data Cleaning
The objective of data cleaning is to identify omissions and errors in the
responses. Thus data cleaning aims at avoiding errors in the data matrix
questionnaires both during and immediately after the collection of the data
(Diamantopoulos & Schlegelmilch, 2000:40). The researcher conducted a self-
administered questionnaire because of its advantages as well as the anticipated
time constraints during the research. The disadvantages of the self-administered
questionnaire as already outlined in chapter four are:
Errors or oversight in the questionnaire cannot be corrected; and
Researcher has no way of knowing the respondents are correctly interpreting
the questions (Mitchell & Jolley, 1992:456).
68
The above disadvantages meant that the researcher could not avoid all errors
during the collection of the data stage; the errors were only discovered after the
collection of data or questionnaires were received from the respondents. To
counter the above mentioned short-coming the researcher had to perform what is
referred to as central office editing. Central office editing is only a second best
alternative to field edit in that the researcher has to deal with ambiguous,
inconsistent or missing data without being able to clarify the problem with the
appropriate respondent (Diamantopoulos & Schlegelmilch, 2000:40).
Data Coding
Section D of the questionnaire was developed according to the Likert-type scale.
For each question respondents had to indicate whether they strongly agree,
agree, uncertain, disagree and strongly disagree. Numeric values ranging from
one for (strongly agree) to five for (strongly disagree) were built-in the
questionnaire. All questions that were left unanswered by the respondents were
coded by the numeric value nine in the data matrix. A data matrix and code book
was developed as recommended by (Diamantopoulos & Schlegelmilch,
2000:43). The function of the code book was to serve the following purpose:
Reference back to the source dater; and
Identification of the column location of the variable within the matrix (Sapsford
& Jupp, 2006:163).
The research results in section D are presented in table format in the same
sequence as the questions appear in the questionnaire. Data was processed and
results generated using SPSS (Statistical Package for Social Sciences). Mr.
Emmanuel Mufunda a statistician from Damelin assisted with SPSS.
69
5.6.1. Training and development

Table 5.1 indicates the means and standard deviations of each statement on
training and development which influence or promote employee Talent
management.
Table 5.1. Means and standard deviations for the influence training and
development have on employee Talent Management.
Std.
TRAINING AND DEVELOPMENT N Mean
Deviation
I have no firm grasp of the areas in which I need
45 3.38 1.32
development
I believe talent pools within a company provide a
45 2.18 0.75
reliable source of talent
I believe talent pools make it easier to train and
43 2.16 0.72
develop reliable skills
I have no problem sharing development cost with my
44 2.30 0.93
company
I will leave the company after my development in the
43 3.74 1.26
company is completed
The aggregate mean calculated from table 5.1 is 2.75 and the aggregate
standard deviation is 0.99. Before discussing what the mean and standard
deviation reveal in the context of the above measure variable, it is important to
understand the definition of mean and standard deviation.
The mean is the sum of all observations divided by the number of observations
and dispersion refers to the degree of variation in the data, that is numerical
spread (or compactness) of the data. The measure of dispersion is the standard
deviation, which is defined as the square root of the variance (Evans, 2007:56).
The aggregate mean of 2.75 and aggregate standard deviation of 0.99 reveal
that the respondents agree that training and development statements contained
in table 5.1 influence or promote employee talent management. Interestingly,
leaving the company after the development is completed received the highest
mean (mean = 3.74 and standard deviation = 1.26), this indicates that the
70
respondents that rated this statement are uncertain to almost disagree with the
statement. Belief that talent pools make it easier to train and develop reliable
skills, is the statement that had the least mean (mean = 2.16 and standard
deviation = 0.72) that indicates the respondents agree to the statement. The
standard deviation of 0.72 tells the researcher that the respondents are least
dispersed on their rating of this statement than any of the statements made
under this variable.
5.6.2. Employee compensation

employee compensation which influence or promote employee Talent
management.
Table 5.2. Means and standard deviations for the influence employee
compensation have on employee Talent Management.
Std.
EMPLOYEE COMPENSATION N Mean
Deviation
I believe my compensation reflects my relative value in
45 2.42 1.03
the organisation.
I am committed to the organisation regardless of my
44 2.23 0.99
compensation.
I am more concerned about developing my own career
45 3.89 0.78
than assisting in the development of this organisation.
I have no idea of my comparative worth within the
44 3.48 1.05
labour market.
The aggregate mean calculated from table 5.2 is 3.01 and aggregate standard
deviation of 0.96 reveals that the respondents are uncertain that employee
compensation influence or promotes talent management. I am more concerned
about developing my own career than assisting in the development of this
organisation had the highest mean (mean = 3.89 and standard deviation = 0.78)
this indicates the respondents are uncertain to almost disagree with the
statement made. The standard deviation of 0.78 tells the researcher that the
71
respondents are least dispersed on their rating of this statement than any of the
statements made under this variable. I am committed to the organisation
regardless of my compensation had the least mean (mean = 2.23 and standard
deviation = 0.99) this indicates the respondents agreed with the statement.
5.6.3. Organisational culture

organisational culture which influence or promote employee Talent management.
Table 5.3 Means and standard deviations for the influence organisational culture
have on employee Talent Management.
Std.
ORGANISATIONAL CULTURE N Mean
Deviation
I will stay in the company because of the organisational
45 2.47 0.99
culture.
I do not believe organisational culture can make me
45 3.76 0.88
feel connected to the organisation.
I see my manager as a living embodiment of the
45 2.24 0.86
organisational culture.
I am working in the organisation that helps me balance
44 2.36 0.77
the demands of my work and that of my family.
deviation of 0.88. This reveals that the respondents agree with statements on
table 5.3 that organisational culture influence or promotes talent management. I
do not believe organisational culture can make me feel connected to the
organisation had the highest mean (mean = 3.76 and standard deviation = 0.88),
this indicates that the respondents are uncertain to almost disagree with the
statement made. The standard deviation of 0.88 on this statement tells the
researcher the respondents rating of this statement is equally dispersed as that
of the aggregate mean. I see my manager as a living embodiment of the
organisational culture had the lowest mean (mean = 2.24 and standard deviation
= 0.86) this indicates the respondents agree that they see the manager as the
living embodiment of the organisational culture.
72
5.6.4. Leadership style

leadership style which influence or promote employee Talent management.
Table 5.4 Means and standard deviations for the influence leadership style have
on employee Talent Management.
Std.
LEADERSHIP STYLE N Mean
Deviation
I have no authority at all in my work. 45 4.02 0.72
I do things as I see fit without leadership interference. 45 3.04 1.13
I get a great deal of authority from my leader. 45 2.36 0.93
deviation of 0.93. This reveals that the respondents are uncertain with
statements made on table 5.4 that leadership style influence or promotes talent
management. I have no authority at all in my work had the highest mean (mean =
4.02 and standard deviation = 0.72) this indicates the respondents disagree with
this statement. The standard deviation of 0.72 tells the researcher that the
respondents are least dispersed on their rating of this statement than any of the
statements made under this variable. I get a great deal of authority from my
leader received the least mean (mean = 2.36 and standard deviation = 0.93) this
indicates the respondents agree with this statement. This makes logical sense as
the respondents disagree with the first statement that says I have no authority at
all in my work.
73
5.6.5. Employee engagement

employee engagement which influence or promote employee Talent
management.
engagement have on employee Talent Management.
Std.
EMPLOYEE ENGAGEMENT N Mean
Deviation
I do see the connection between my work and the
45 1.78 0.64
companys Project 1 in the 1:10:100 by 2010.
I do identify with my job at personal level. 45 1.87 0.59
I have not been provided with the basic materials to do
45 3.73 1.30
my job.
I do not have a good idea of what my company is trying
45 4.07 1.25
to achieve by 2010.
I have full trust in my manager. 45 1.96 0.82
I do receive regular feedback from my manager
45 1.78 0.70
regarding my functioning in the organisation.
deviation of 0.88. This reveals that the respondents agree with statements on
table 5.5 that employee engagement influence or promotes talent management.
I do not have a good idea of what my company is trying to achieve by 2010 had
the highest mean (mean = 4.07 and standard deviation = 1.25) this indicates the
respondents disagree with the statement. The standard deviation of 1.25 tells the
researcher that the respondents are fairly dispersed on their rating of this
statement. I do see the connection between my work and the companys Project
1 in the 1:10:100 by 2010 had the lowest mean (mean = 1.78 and standard
deviation = 0.64) this indicates the respondents strongly agree with the statement
and the dispersion of their rating on this statement is least of all statements under
this variable.
74
5.7. RELIABILITY AND VALIDITY OF THE RESULTS

Reliability is concerned with the presentation of the data. The representation of
the sample affects the reliability of the research results (Mullins, 1994:98).
Validity is concerned with whether the research actually measures what it tends
to (Mullins, 1994:98).
Overall, Cronbachs Alpha coefficient of reliability is 0.6 based on standardised

items. This means the questionnaire will yield the same results in different
occasions and will produce similar observations when administered on different
assertions. This further means the measurement instrument is 60% accurate and
there is only 40% measurement error on the items. The data collection
instrument has some degree of internal consistency. Since reliability is a pre-
requisite for validity it implies all other things being equal the study was valid.
5.8. COMPARISON OF MEANS AND STANDARD DEVIATIONS OF THE

VARIABLES THAT INFLUENCE OR PROMOTE TALENT MANAGEMENT
Table 5.6 shows the aggregate means and standard deviation of the variable that
influence or promote talent management.
Std.
TALENT MANAGEMENT PROCESS N Mean
Deviation
Training and development 45 2.75 0.99
Employee compensation 45 3.01 0.96
Organisational culture 45 2.70 0.88
Leadership style 45 3.14 0.93
Employee engagement 45 2.53 0.88
The analysis of the aggregate means and standard deviations of the variables
that influence or promote Talent management, reveal that the respondents agree
with only three of the variables, that is training and development variable,
organisational culture and employee engagement variable. This analysis also
reveals that the respondents were uncertain on two variables, which is employee
compensation and leadership style. The variable that has the lowest aggregate
mean and standard deviation is employee engagement with mean of 2.53
75
indicating this is the variable respondents most agree with a reasonably narrow
spread of 0.88.

In this chapter the researcher analysed, presented and interpreted the findings of
the research from biographical information of the respondents, attitude of
respondents towards the company strategy as well as the variables that
respondents deem to influence talent management.
The analysis of the respondents attitude towards the 1:10:100 by 2010 strategy
reveals that the strategy was well received by the respondents, with each
question on attitude having a mean of less than three indicating that to a great
extent the strategy was well received. However one of the concerning findings of
this research analysis is that the respondents of all the questions posed on their
attitude towards the 2010 strategy, the question with the highest mean and least
standard deviation is on whether the respondents believe the company will
achieve Project 1 by 2010 (mean = 2.60 and standard deviation = 0.89). This is
concerning, as explained in chapter two the company has an objective of being
number one in customer service in the South African motor industry by end of
2010 and VWSA Group Service division employees have a huge role in ensuring
this objective is achieved.
It is also interesting to see that the variable with the least aggregate mean and
standard deviation on talent management is employee engagement; this reveals
of all the variables under talent management, employee engagement is the
variable the respondents agree with the most and with least spread of results. In
chapter three paragraphs 3.5.1 Cascio & Boudreaux (2008:129) assert that
employee engagement promotes positive service climate and customer loyalty.
76
In the next chapter, the researcher will focus on the problems and limitations of
the study, recommendations and final concluding remarks.
77
CHAPTER SIX
CONCLUSION AND RECOMMENDATIONS
6.1. INTRODUCTION
In this chapter the researcher will mainly focus on solutions to the main problems
and sub-problems. In this chapter the limitations of the research are discussed as
well as the recommendations and final concluding remarks.
6.2. RESOLUTION OF THE MAIN PROBLEM

The main problem identified in this study was:
VWSA Group Service divisions use of employee talent management to

influence a positive outcome of the 2010 strategy.
The following were the sub-problems to the main problem:
What does the literature reveal regarding talent management and

organisational strategy implementation?
What are the employee perceptions regarding talent management and 2010
Strategy? and
What is the level of employee engagement and commitment to the
organisation?
Sub-problem one was discussed in detail in chapter two, where the researcher
discussed talent management in detail, as well various recruiting strategies and
employee retention strategies, which are crucial in talent management.
Sub-problem two and three was dealt with in chapter five, in the analysis and
interpretation of results received from the respondents in section D of the
questionnaire. The conclusion of the third sub-problem was further discussed in
78
the last paragraph of chapter five. Therefore the findings of the aforementioned
sub-problems provide or lay a path to the answer of the main problem.
6.3. PROBLEMS AND LIMITATIONS

The single biggest problem the researcher encountered during this study were
the respondents who were concerned about the anonymity of their answers,
even though the researcher promised not to disclose their answers to anyone in
the division or the company. This led to some of the employees not returning the
questionnaire back to the researcher.
6.4. SUMMARY OF FINDINGS OF THE RESEARCH

It is from the summary of the research findings that the research will be able to
make recommendations to the division.
Employee understanding of the 2010 strategy: the results discussed in

chapter five particularly 5.4.1a, where 77 percent of respondents surveyed
indicated that they understand the 2010 strategy from great extent to very great
extent.
Employee belief that Project 1 will be achieved by end of 2010: the results
discussed in chapter five, reveal that only 48 percent of the respondents
surveyed believe that Project 1 will be achieved by end of 2010.
Employee belief that their work contributes towards Project 1: the results
discussed in chapter five, reveal that only 59 percent of the respondents
surveyed believed that they work contributes contributes towards Project 1.
Section D of the questionnaire revealed the following findings:
The results on table 5.6 in chapter five reveal that most respondents are
uncertain that employee compensation and leadership style form part of talent
79
management. The elements of talent management that the respondents agreed

with were organisational culture, training and development and employee
engagement.
6.5. RECOMMENDATIONS
The recommendations are based on the results discussed in chapter five and the
literature reviewed in chapter three.
1. Conduct an employee skills gap analysis, particularly skills that are required
for employees to possess in order to meet the objectives of project 1. This will
help build employees confidence and belief that project 1 will be achieved by end
of 2010.
2. Clearly define each departments role in helping achieve the objectives of

Project 1. The job role of each employees contribution towards achieving Project
1 should be continuously communicated and reflected on employees job
description.
3. Identify competencies and other success criteria which the division will require
to achieve Project 1 in the 2010 strategy.
4. The division should establish talent pools from which to recruit high talented
staff whose skills will be required in order to meet the objectives of project 1. In
table 5.1 employees indicated that they agree with the idea of talent pools.
5. The division should request employees to share development costs in order to

curb any anticipated attrition after the development of the employee is
completed. In table 5.1 employees indicated not having a problem sharing
development costs.
80
6. The division should conduct a SWOT analysis to establish the strong points
and weak points as well as the external opportunities. This will help the division
to assess whether the objectives of project 1 are realistic enough for the division
to achieve. If there are any weaknesses found necessary adjustments should be
made.
Customers today are more demanding and discerning, providing good service is
not enough. The goal should be to exceed customer expectations. It is the
opinion of the researcher that business can no longer compete on product
innovation alone, excellent customer service is quickly becoming the key
determinant of staying in business.
It is for this reason that employee talent management is a business imperative

instead of an HR issue like in the past. In a service business people are thee
most important asset and hence general people management is essential if the
business is to achieve its objectives.
Business strategy is something that should not be kept in big files in the
managers office, but something that the employees leave, breathe and eat daily.
Therefore business strategy should be clearly communicated, should be
understood by all and should be visible. When the lowest ranked employee in the
business is able to understand and tell others about the company strategy and
what his/her role is on that strategy, then this could be used as the measure that
the company has done well in selling its business strategy to its employees.
Different people are motivated by different things as already alluded in the

motivation section on chapter three, therefore taking an interest in employees
career and life is essential. It is from knowing each employee that a manager is
81
able to provide an incentive that will be of interest to the employee, what is

essential is for the incentive to be linked to performance.
82
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Welman, J.C. & Kruger, S.J. 1999. Research methodology for the business and
administrative sciences. New York: Thomson Publishing.
Zikmund, W.G. 2000. Business research methods.6th edition. Florida: Harcourt

college publishers.
http://www.southafrica.info/business/economy/sectors/automotive-overview.html
[Accessed 10 February 2010].
http:// www.vwsa.co.za [accessed 8 February 2010].
http://www.learning-theories.com/maslows-hierarchy-of-needs.html [Accessed 22
April 2010].
http://www.docstoc.com/docs/22745816/Recruiting-Talented-Employees
[Accessed 20 August 2010].
90
APPENDIX A COVERING LETTER

27 May 2010
103 Algoa Road
Uitenhage
Dear Michael
I would like to ask for your help in investigating the possible influence of group
service employee talent management strategy on the companys 2010 strategic
objectives, specifically project 1 in the 1:10:100 by 2010 company objectives.
The research survey is part of the requirement to complete a Masters degree in

Business Administration (MBA), and is intended only for this purpose and nothing
else. The research survey is limited to only Uitenhage based Group Service
division employees; this is the reason why you have been chosen to take part in
the survey.
Your answers to this survey will remain completely confidential, meaning they will
not be shared with anyone at VWSA. Results will be presented as summaries in
the treatise and individual respondents will not be able to be identified. You can
return the fully completed questionnaire by email or physically handing it in to the
researcher. In order for the researcher to make accurate conclusions or make
accurate inferences in the treatise the survey has to be fully completed. This
survey is voluntary. However, I would appreciate you taking sometime to fill in the
questionnaire.
If you have any questions about the survey, then please contact myself on 041
994 5478 or 074 423 6267 or [email protected]
I would like to thank you in advance for your time and consideration.
Sincerely
Mr. Mfundo Piti
91
APPENDIX B QUESTIONNAIRE
GROUP SERVICE EMPLOYEES
SECTION A DEMOGRAPHIC INFORMATION
Please supply the following information by marking with X in the appropriate

box.
1. What is your gender?

Male
Female
2. What is your race?

Asian
African
White
Coloured
2. What is your age in years?

18 25 years
26 35 years
36 45 years
46 55 years
56 65 years
3. What is the level of education that you have completed?

Completed secondary
Trade qualification
Some college or university studies
Completed degree or diploma
Completed post graduate qualifications
92
SECTION B STRATEGIC OBJECTIVE 1:10:100 BY 2010
On a scale from 1 to 5, where 1 is the highest and 5 is the lowest, please mark
with X the answer that best describes your opinion:
1 to a very great extent

2 to great extent
3 to some extent
4 to a small extent
5 to a very small extent
a. To what extent do you understand VWSAs 1:10:100 by 2010 strategic

objectives?
1 2 3 4 5
b. To what extent does the 1:10:100 by 2010 strategic objective excite you?
1 2 3 4 5
c. To what extent do you believe the organisation will achieve Project 1 in

1:10:100 by 2010 strategy?
1 2 3 4 5
d. To what extent do you believe your work makes a real contribution towards the
achievement of Project 1 in the 1:10:100 by 2010 strategy?
1 2 3 4 5
e. To what extent are you proud to tell people about the strategic objectives
(Project 1, 2010) of the organisation in which you work?
1 2 3 4 5
93
SECTION C CURRENT JOB INFORMATION
1. How long have you been employed at Volkswagen of South Africa?
0 4 years
5 10 years
6 15 years
16 20 years
21 30 years
31+ years
2. What level of management are you?

Senior Manager
Manager
Supervisor
Staff
3. In which section of VWSA Group Service division do you work?

Warranty department
Technical Support Centre
Back-office (Technical Support)
Service Marketing
Customer Interaction Centre (CIC)
Parts return centre
94
SECTION D TALENT MANAGEMENT PROCESS
Please indicate how strongly you agree or disagree with the following statements
by marking X under the number that best represents your opinion.
Uncertain
Disagree
disagree
Strongly
Strongly
Agree
Agree
No
.
D1- Training and development 1 2 3 4 5
I have no firm grasp of the areas in which I need

development.
1.1
I believe "talent pools" within a company provide
1.2
a reliable source of talent.
I believe "talent pools" make it easier to train and

1.3
develop desirable skills.
I have no problem sharing development costs

1.4 with my company.
I will leave the company after my development in
1.5
the company is complete.
D2- Employee compensation 1 2 3 4 5

I believe my compensation reflects my relative
2.1
value in the organisation.
I am committed to the organisation regardless of
2.2
my compensation.
I am more concerned about developing my own
2.3 career than assisting in the development of this
organisation.
I have no idea of my comparative worth within
2.4
the labour market.
95
D3- Organisational culture 1 2 3 4 5

I will stay in the company because of the
3.1
I do not believe organisational culture can make
3.2
me feel connected to the organisation.
I see my manager as a living embodiment of the
3.3
I am working in the organisation that helps me
3.4 balance the demands of my work and that of my
family.
D5- Leadership style 1 2 3 4 5
5.1 I have no authority at all in my work.
I do things as I see fit without leadership

5.2
interference.
5.3 I get a great deal of authority from my leader.
D6- Employee engagement 1 2 3 4 5

I do see the connection between my work and
6.1 the companys Project 1 in the 1:10:100 by
2010.
6.2 I do identify with my job at personal level.
I have not been provided with the basic material

6.3
to do my job.
I do not have a good idea of what my company

6.4
is trying to achieve by 2010.
6.5 I have full trust in my manager.
I do receive regular feedback from my manager

6.6
regarding my functioning in the organisation.
THANK YOU FOR COMPLETING THIS QUESTIONNAIRE

96
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THE INFLUENCE OF TALENT MANAGEMENT ON

Masters in Business Administration

Faculty of Business and Economic Sciences

Nelson Mandela Metropolitan University

I, Mfundo Piti, hereby declare that:

The work in this dissertation is my own original work;

All sources used to have been documented and recognised; and

Mfundo Piti Date..

Research indicates that effective talent management is essential in achieving

Dr Margaret Cullen of Nelson Mandela Metropolitan University

My colleagues at Volkswagen South Africa Group Service division for

List of figures viii

INTRODUCTION, PROBLEM STATEMENT AND OUTLINE OF THE

1.2 PROBLEM STATEMENT 2

1.3 MAIN PROBLEM 4

1.4 DELIMITATIONS OF THE RESEARCH 4

1.6 REASONS AND SIGNIFICANCE OF THE RESEARCH 5

1.7 OUTLINE OF THE STUDY 6

1.8 CONCLUDING REMARKS 6

VOLKSWAGEN GROUP, VOLKSWAGEN SA, HISTORY OF COMPANY,

2.1 ABOUT VOLKSWAGEN SA 7

2.2 HISTORY OF VOLKSWAGEN SA 9

2.3 VOLKSWAGEN BRAND CLAIM: DAS AUTO 10

2.4 VOLKSWAGEN 1:10:100 BY 2010 STRATEGY 11

2.5 SOUTH AFRICAN MOTOR INDUSTRY 12

2.6 GROWTH IN THE INDUSTRY 12

2.9 AUTO COMPONENT MANUFACTURER 14

2.10 VWSA MARKET POSITION IN INDUSTRY 15

2.11 ON VEHICLE SALES 15

2.12 ON VEHICLE SERVICING 17

2.13 OVERALL INDEX (SERVICE AND SALES) 18

LITERATURE REVIEW ON TALENT MANAGEMENT

3.2 DEFINITION OF TALENT MANAGEMENT 21

3.3 ATTRACTING AND SOURCING TALENTED EMPLOYEES 21

3.4 EMPLOYEE TALENT MANAGEMENT 25

3.5 RETAINING TALENTED EMPLOYEES 28

RESEARCH METHODOLOGY, SAMPLE DESIGN AND DATA COLLECTION

4.2 RESEARCH PARADIGM 36

4.3 SAMPLE DESIGN 37

4.4 DETERMINANTS OF RESPONSE RATE 44

4.5 DATA COLLECTION METHODS 46

4.6 DEVELOPING QUESTIONNAIRE 48

4.7 QUESTIONNAIRE COVERING LETTER 50

ANALYSIS OF BIOGRAPHICAL INFORMATION, INTERPRETATION OF

5.2 RESPONSE RATE 51

5.3 ANALYSIS OF RESPONDENTS BIOGRAPHICAL INFORMATION 54

5.4 ANALYSIS OF RESPONDENTS ATTITUDE TOWARDS 59

5.5 ANALYSIS OF RESPONDENTS JOB INFORMATION 64

5.6 ANALYSIS AND INTERPRETATION OF TALENT MANAGEMENT 67

5.7 RELIABILITY AND VALIDITY OF RESULTS 74

5.8 COMPARISON OF MEANS AND STANDARD DEVIATIONS OF THE 75

SUMMARY RECOMMENDATIONS AND CONCLUSION

6.2 RESOLUTION OF THE MAIN PROBLEM 77

6.3 PROBLEMS AND LIMITATIONS 78

6.4 SUMMARY OF RESEARCH FINDINGS 78

6.6 CONCLUDING REMARKS 80

6.7 LIST OF SOURCES 81

Figure 2.1 Organogram of VWSA Leadership 8

Figure 2.2 Vehicle Sales CCSI and CSI Ranking 16