BY
WANGETHI MWANGI
E-Mail: wmwangi@nation.co.ke
70751
JUNE 2009
Declaration
This research project report is my original work and has never been presented for a
degree in any other university. No part of this research report may be reproduced 'without
prior permission of the author and/or Strathmore University
Signature ________________________ _
Date:
\VANGETHI MWANGI
This research report has been submitted for examination with my approval as the
Dedication
I dedicate this research report to my family members and colleagues at Nation Media Group for
their immeasurable support and encouragement during my studies. I am particularly indebted to my
dear wife, Lizzie Wangui, for her patience as I immersed my self in my studies and nigh well
neglected my domestic obligations. If it were not for her prodding in her characteristic gentle way,
most likely I would have taken longer than I did to complete the project.
111
Acknowledgement
This study is the result of hard work in which I have been accompanied and supported by
many people to whom I am happy to express my gratitude. In particular, I would like to
express my sincere appreciation to my supervisor, Dr. Wahome Gakuru, for his valuable
guidance and inspiration throughout the study, the Dean of Students, Dr Edward Mungai,
for challenging me at every turn, the Director of the MBS Programme, Mr Vincent
Ogutu, for his patience and understanding, and the former Dean, Mr David Njenga, for
encouraging me to stay the course when the exigencies of my office demanded my
absence from class.
I would also like to acknowledge the assistance provided by the top management of the
Nation Media Group in allowing me time off to attend classes and to interview the staff
within the office premises. And to the librarians at Strathmore University, many thanks
for allowing me to use the library facilities for purposes of this research and my course
work. Finally, I would like to thank my family and friends for sharing with me the
difficulties I encountered during the process of finalising this study. Finally, I would like
to thank my secretary, Joyce Kimani, family and friends for sharing with me the
difficulties I encountered during the process of finalising this study. I wish you all peace
and God's abundant blessings.
lV
Abstract
The most critical asset of any organisation is its human capital. Inevitably, therefore, organisations
are continually investing in talent management, which Cappelli (2009) describes as "the process
through which employers . . . anticipate their human capital needs and set about meeting them", or,
simply, "the basic people management in organisations". This research sought to explore talent
management in its various facets at the Nation Media Group (NMG) , Kenya's and Eastern Africa's
largest and most influential media organisation. By extrapolation, the study sought to establish the
causes of talent migration from the media industry to other sectors in Kenya. The research involved
an evaluation of NMG's J1uman resources practices and how they may be contributing to staff
turnover.
The research applied an exploratory design. Primary data was collected through questionnaires and
interview guides, targeting a study sample of 98 current and former employees from a population of
980. Additional data was collected through an oral interview with the Human Resources Director.
Descriptive statistics, namely, frequency tallies and their corresponding percentage scores and
Pearson correlation coefficients, were used to analyse the data, using Statistical Package for Social
Sciences (SPSS). Qualitative analysis involved grouping interview notes into common themes,
otherwise known as content analysis. The findings are presented using tables and charts.
The study found out that the success ofNMG's talent management and, by extension its ability to
attract and retain key performers, was influenced primarily by its rewards schemes, the physical
working environment, and organisational culture. The quality of leadership and job security were
found to have little, if any, significant influence. The study makes several recommendations. Key
among these is the critical need for NMG to invest more time and energy to understand its
employees' expectations, needs and wants, and to establish a partnership with to identify and
implement the right mix of solutions.
Key words: Talent, Talent Management, Attraction, Retention, and Motivation
VI
Table of Contents
Title ................................................................................................................................................ i
Declaration ..................................................................................................................................... ii
Dedication ..................................................................................................................................... iii
Acknowledgement ......................................................................................................................... iv
Abstract. ......................................................................................................................................... v
Table of Contents ......................................................................................................................... vi
List of Tables .................................................................................................................................. x
List of Figures ............................................................................................................................... xi
List of Abbreviations and Acronyms ............................................................................................ vi
Vll
Vlll
lX
BIBLIOGRAPHY ................................................................................................................ 59
Appendix 1: Questionnaire Cover Letter ......................................................................... 63
Appendix II: Questionnaire for NMG Staff.. ................................................................... 64
Appendix III: Questionnaire for Past NMG Staff.. .......................................................... 73
Appendix IV: Interview Guide for Top and Middle-Level Managers .............................81
List of Figures
Figure 2.1: The Leadership Cyclic Process ........................................................................... 16
Figure 2.2: Maslow's hierarchy of needs ............................................................................... 18
Figure 3.1: Conceptual framework ........................................................................................ 23
Figure 6.1: Extent of provision of benefits and allowances (current staff) ........................... 37
Figure 6.2: Nature of Leadership Styles Exercised at NMG ................................................. 41
Figure 6.3: Extent of Effectiveness of Leadership Styles ...................................................... 42
Xl
List of Tables
Table 5.1: Sampling Design ................................................................................................... 29
Table 5.2: Illustration of Data Coding .................................................................................. 31
Table 6.1: Demographic Characteristics of the Sample (Current Staff at NMG) .................. 33
Table 6.2: Demographic Characteristics of the Sample (Past Staff at NMG) ....................... 34
Table 6.3: Extent of satisfaction with the pay offered at NMG ............................................. 35
Table 6.4: Extent of Promotion amongst NMG Staff.. .......................................................... 36
Table 6.5: Extent of Satisfaction to Aspects of the Reward Systems (Current Staff) ........... 38
Table 6.6: Extent of Satisfaction to Aspects of the Reward Systems (Past Staff) ................. 39
Table 6.7: Extent of Friendliness of the Working Environment.. .......................................... 40
Table 6.8: Effect of Leadership on Staff Morale at NMG ..................................................... 43
Table 6.9: Effect of Organisational Culture on Talent Attraction and Retention .................. 44
Table 6.10: Status of Employment for Current and Past NMG Staff.. ................................ 455
Table 6.11: Correlation analysis of factors affecting talent management at NMG ................ 48
Xli
CHAPTER ONE
1.0. INTRODUCTION
1.1. Background to the study
A key concern of organisations is the need to achieve high levels of performance through people.
Inevitably, this means paying close attention to how individuals can best be motivated through such
means as incentives, rewards, career advancement, effective leadership and, more importantly, the
work they do and the organisational context within which they carry out that work. The aim is to
develop processes that motivate and a work environment that will help to ensure that individuals
deliver results in accordance with the expectations of management. People have different needs,
establish different goals to satisfy those needs and take different actions to achieve those goals.
Motivating other people is about getting them to move in the direction you want them to go in order
to achieve the desired results (Armstrong, 2003).
In today's competitive labour market it is increasingly difficult to find good quality staff (Onyango,
2005). Employers have to be more aware of what people are looking for in their work. The rewards
are not just financial - many people put more value on fair and sensitive treatment and a chance to
keep their life and work in balance. A positive approach to staff motivation makes good business
sense to employers. It can produce better-motivated and happier employees. It .can also attract new
employees, improve productivity and reduce labour turnover.
In the Kenyan media industry, employers have resorted to blending their workforce with both
permanent (pensionable) and non-permanent (contractual) employees. Compounding the problem is
the advent of digital technology, which is redefining journalism. New media such as websites,
podcasts, chatrooms, blogs and social sites like facebook, are not just threatening the old order or
traditional media forms (print, television and radio), but they are also demanding a different set of
skills, new talent that can sit comfortably in a multi-media environment. In other areas, employers
grappling with a scarcity of talent are gambling with untrained men and women whose only
attraction is their potential for development or a discernible profile for radio/television broadcasting.
This is a recent phenomenon and it is already raising fears of dilution of journalistic quality.
The Kenyan media industry has its beginnings in the early part of the 19th century. Historical
records make particular mention of newspaper titles like the Taveta Chronicle, Mombasa Leader,
The African Standard and The Indian Voice as the precursors of modern English language
journalism in Kenya. Throughout the country's colonial history, from 1920 to 1963, journalism was
defined by the interests of the dominant political and economic classes, namely the British settlers
and colonial administration, and the Indian merchants who had entrenched themselves in commerce
and industry.
Journalistic talent was sourced primarily from Britain. Formal training of African journalists was
confined to the Kenya Institute of Mass Communication, a government agency catering primarily to
the human capital needs of the state broadcaster. When the Nation Group was established in 1960, it
immediately embarked on a structured training
2
programme for its fledgling African corps of journalists. However, it remains true that the early
crop of African journalists picked up the skills of the craft on the work benches, some even
migrating from menial tasks like tea-making and messenger duties to the top echelons of newspaper
editorship.
In later years, the intervention of organisations like the International Press Institute (IPI), which
sponsored a programme at the then fledgling University of Nairobi's School of Journalism,
practically raised the bar of journalistic standards in Kenya. That was in 1970 and the School has
since morphed from a diploma-based into a bachelors' programme.
Today, Kenya is awash with institutions offering some form of journalistic training, with varying
degrees of quality. Nearly all of Kenya's 23 public and private universities run a media or
journalism department. In addition, private journalism schools have mushroomed, particularly in
Nairobi, Kenya's capital, some with very questionable credentials. Paradoxically, the expansion of
the training capacity has not resulted in the availability of abundant talent and the sheer expansion
of the media industry in the last 10 years has simply intensified the competition for good skills.
While the newspaper sector has remained fairly small in terms of number of publishers (the
dominant players are NMG and the Standard Group), the broadcast sector has grown exponentially,
boasting 49 FM radio and 11 television stations. By their sheer size and combination of multimedia
operations, NMG, the Standard Group and the fast expanding Royal Media Services, are the biggest
competitors for talent. Inside this mix are public relations firms and companies with established
media liaison departments all fishing from the same pool of talent, thus creating a veritable battle
for top skills. This is the issue that confronts the
industry today, whose root cause this study sought to unravel using NMG's experience as an
example.
In a very practical sense, talent management may be defined as the business process of identifying
an individual's particular skills and developing them in the most optimal manner to help an
organisation attain its business objectives. Today, a competitive marketplace continues to make
talent a primary driver for organisational success. Indeed, the organisation that establishes its core
competence in talent attraction, development and retention becomes not just the envy of its rivals,
but it also guarantees itself stability and commercial success.
In the majority of cases, employee restiveness is caused by, among others, factors such as low
morale, poor job fit, unmet career aspirations and a poor work environment. This state of affairs is
creating pressure on organisations to focus more attention and energy on retaining talented
employees and keeping them actively engaged at work. Organisations that wish to have continued
and consistent growth will need to embrace retention of key workers as the most critical factor to
plan for years ahead (Price Waterhousef.oopers, 2004) Simply put, the number one priority on the
human resources department's agenda of the 21 st century organisations is to attract and retain key
talent (Perrin, 2004). In addition, among all the factors that could influence the effectiveness of
organisations in the future, the foremost driver is talent (Buckingham and Vosbrgh, 2001)
Some experts predict that few issues, if any, will compare in importance to acquisition
and retention of talent in organisations. For example, Webber (2004) argues that the most
critical issue for organisations is not jobs - it is work (talent). Certainly, the battle for
qualified talent witnessed daily in Kenya's broadcast industry attests both to the dire
shortage of qualified human capital and the challenges of keeping it in-house. During the
course of my study, the global financial meltdown took a toll on NMG's business
fortunes, forcing it to close down one of its newspaper titles due to mounting revenue
losses. With the closure, some key personnel opted to leave despite assurances that they
could be absorbed elsewhere in the newspaper division. At the same time, a number of
talented employees left for one reason or another.
To establish the effect of reward systems like salaries, allowances, training and promotion on
talent management at NMG.
2.
3.
To find out the relationship between leadership styles and talent management.
4.
5.
In what ways do reward systems such as salaries, allowances, training, and promotion
influence talent management at the NMG?
2.
What are the effects of physical working conditions (the physical office environment)
on talent management at the NMG?
3.
What is the relationship between leadership styles and talent management at NMG?
4.
5.
The scope of the study was the workforce ofNMG, as well as those who have left within the
1998-2008 period. However, the study was confined to a sample drawn from the staff at the NMG
headquarters in Nairobi. The restriction was due to the fact that most of the NMG staff are stationed
in Nairobi. The restriction also reduced the cost of travelling outside Nairobi since the researcher
was also based in Nairobi. The research sample of 10% could easily be drawn from all NMG
departments in Nairobi. The study was restricted to staff motivational issues that could be
considered to have a direct influence on talent management. Inevitably, the exclusive focus on
NMG meant that the findings could only cautiously be generalised with respect to the larger media
industry. The other limitation was the skew towards journalism talent. By design, the researcher did
not focus too much on non-journalists. Given the nature of journalism, it is likely that this category
of knowledge workers has its own peculiarities, which may not be applicable to others.
Talent, as defined by the Collins English Dictionary and Thesaurus refers to above average
ability. Ed Michaels (2001) refers to it as the sum of a person's abilities - his or her intrinsic gifts,
skills, knowledge, experience, intelligence, judgment, attitude, character and drive, and includes
ability to learn and grow.
Employee retention may be defined as the effort by an employer to keep desirable workers in
order to meet business objectives.
Labour turnover refers to the unplanned loss of workers, who voluntarily leave and whom
employers would prefer to keep.
Employee motivation refers to the psychological feature that arouses an employee to action
toward a desired goal; the reason for the action; that which gives purpose and direction to
behaviour.
Talent Management can be defined as the effort by an employer to keep desirable workers in order
to meet business objectives.
The study explored the management of talent at NMG from the perspective of the factors that
influence its attraction and retention, specifically with regard to journalists. In particular, the study
sought to answer the following question: What undermines NMG's efforts to attract and retain key
talent in its editorial ranks and how does the loss of talent affect the organisation's stability and
pre-eminent position as Eastern and Central Africa's largest and most influential media house?
Further, the study proposes strategies for improving retention of talented journalists.
In Chapter 1, the report first introduces the study with background information about the Kenya
media industry; it then defines the problem and objectives of the research, and explains the key
concepts used in the research. Chapter 2 presents the literature on factors influencing talent
management while Chapter 3 dwells on the methodology that describes how the study was
accomplished. The final three chapters present the hypotheses. data analysis, findings, discussions,
conclusions, and recommendations derived from the study.
CHAPTER TWO
2.0. LITERATURE REVIEW
2.1. Introduction
This chapter presents a review of the related literature on the subject under study as presented by
various researchers, scholars, analysts and authors. The research has drawn materials from books
and journal articles, which are closely related to the theme and the objectives of the study. Models
by writers are used as illustrations on some of the subtopics mentioned in the objectives of the
study.
Talent management can be defined as the effort by an employer to keep desirable workers in order
to meet business objectives. Turnover, on the other hand, is most often used to describe the
unplanned loss of workers, who voluntarily leave and whom employers would prefer to keep
(Frank, Finnegan and Taylor, 2004). In statistical terms, measuring employee turnover is
comparatively straightforward and most organisations do track it. In a 2004 study of 351
companies, representing a wide range of sizes and industries, 87 percent reported that they tracked
turnover at the overall organisational level; 54 percent monitored turnover at the leader level
(Talent Keepers Research Report, 2004).
Companies initiate "involuntary turnover" of employees who are poor performers, violate company
policies, participate in illegal activities and the like, but it is the unplanned, voluntary turnover that
companies strive to control. Unplanned, voluntary turnover is
most often associated with high labour costs, defeat of skills and company knowledge, low morale,
poor customer satisfaction, and financial losses (Hay Group, 2001). Planned, involuntary
terminations such as layoffs in response to shifting strategies or business conditions are considered
to be appropriate and necessary management practices and are generally not considered part of an
organisation's effort to control unwanted turnover; However, these moves have doubtless had a
direct impact on an organisation's culture and morale and contribute further to the unplanned exit of
talented employees.
In April 2009, NMG closed down one of its loss-making business units, the Daily Metro newspaper,
after it had been in the market for only 17 months. The closure resulted in 20 job losses and the
ripple effects in the rest of the company were instructive. Staff morale, particularly in the editorial
and advertising departments, hit rock bottom and despite management assurances of job security, a
sizeable number of talented workers started scanning the environment for job opportunities .
. As the 215t Century unfolds, major changes are beginning to occur in today's workplace.
A growing awareness of unavoidable demographics is creating a greater urgency for HR
professionals everywhere to focus more attention and energy on retaining talented employees and
keeping them actively engaged in their work. New strategies are emerging that go well beyond
traditional solutions, holding much promise in the effort 10 keep and engage well-performing
employees (Frank, Finnegan and Taylor, 2004).
Thus employee retention is king and employee engagement is not far behind. CEOs of the nation's
(USA) fastest growing companies overwhelmingly cite retention of key
10
workers as the most critical factor to plan for 111 the next year ahead (PricewaterhouseCoopers,
2004).
In an analysis of 67 reasons taken from exit surveys done by employees who were changing jobs in
various industries in the US, Branham (2005) narrowed down the causes of exit to what he referred
to as "hidden reasons why employees leave". These included: job or work place not living to
expectations; mismatch between job and person; too little coaching and feedback; few growth and
advancement opportunities; feeling devalued and unrecognized; stress and overwork from
world-life imbalance; and loss of trust and confidence in senior leaders. Similarities abound with
these and other findings and they are discussed below under broad themes that attempt to
incorporate Branham's analysis.
2.3.2. Physical working conditions
Macfie (2002) opined that it was symptomatic of management's efforts to create a work
environment where everyone was highly motivated and felt valued. He added that if staff looked
after their health, they would be better in their own lives and in the business. If people felt better
about the way they managed their lives, they would be more creative and productive at work. In
other words, it was in the interest of the management for people to see their lives as integrated.
Mayo Hawthorne's Studies on human relations as the prime motivator (Mayo, 1933) realised that
physical surroundings, interpersonal relationship and informal work groups affected output;
communication, group norms and
11
values are directly related; worker participation, type of supervision, morale and satisfaction were
all important.
Indeed, the literature shows that office design is a motivator and that most companies have
redesigned their buildings and workplaces with the intent of reshaping employee attitudes and
behaviour (Milford, (1997). As organisations have sought to become more egalitarian, the trends
have been toward reducing the space dedicated to specific employees, lessening or eliminating
space allocations based on hierarchical position, and making more space available in which groups
or teams can meet (Robbins, 2003).
Whereas size measures the amount of space per employee, arrangement refers to the distance
between people and facilities. The arrangement of one's workplace is important primarily because it
significantly influences social interaction (Robbins, 2003). One of the most widespread work space
design trends in recent years has been the phasing out of closed offices and replacing them with
open office plans that have few, if any, walls or doors. Sometimes described as the cave versus cube
debate, the former provides privacy whereas the latter facilitates open communication (Lohr, 1997).
Caves limit interaction. So organisations have sought to increase flexibility and employee
collaboration by removing physical barriers like high walls, closed offices, and doors. Yet, while
the trend is clearly towards cubes, organisations are making exceptions for employees engaged in
work that requires deep concentration (Bencivenga and Gallagher, 1999).
12
Scholars indicate that organisational culture is central to an organisation's ability to manage its
knowledge more effectively (Davenport and Klahr, 1998; Davenport, DeLong, and Beers, 1998;
DeLong, 1997). Three components of organisational culture receiving consistent attention related
to effective knowledge management include clear organisational vision and goals (Leonard, 1995);
trust (Von Krogh, 1998); and social networks (Leonard and Sensiper, 1998). As noted by Leonard
(1995), an important component of culture is organisational vision. The overall vision generates a
clear organisational purpose so that it can achieve its desired future goals (Kanter, Stein, and Jock,
1992). Clear organisational vision and goals are also important to engender a sense of involvement
and contribution among employees (O'Dell and Grayson, 1998).
Along with clear organisational vision and goals, Von Krogh (1998) suggested that trust and
openness in organisational culture promote employees' active knowledge of management
behaviours. Scholars and practitioners also indicate that communications, dialogue, and interaction
between individuals or groups are important to support and to encourage employees'
knowledge-related activities (Leonard and Sensiper, 1998). Especially, formal and informal
relationships and contacts are important for sharing different perspectives and knowledge in
organisations (O'Dell and Grayson, 1998). This explored how organisational culture, including
vision and goals, trust, and social networks affect talent attraction and retention. Finally,
organisational work culture contributes to the individual's level of commitment and motivation,
(Bennett and Lynne,
1999).
13
The link between organisational objectives and personal motivation is the psychological contract
between the individual and the organisation (Kotter, 1973). This describes a reciprocal relationship,
which may be defined as the mutual expectations of the individual and the organisation with each
other. The psychological contract is often unwritten and unspoken, but represents each party's
expectations for the relationship's continued existence, (Thomas, 1990). The psychological
contract, for many individuals, includes an intrinsic belief that their work will give them a
fulfillment, which has many dimensions: it concerns self-actualisation, a sense of achievement,
recognition, responsibility and the quality of personal relationships in the workplace. It is
increasingly being recognised that these sources of motivation are vital for managers to consider in
the
public sector, (Rantz et al., 1996).
14
A leader shapes and shares a vision, which gives point to the work of others (Handy, 1991).
However, after a century of theory and research, there is little agreement on a definition. A
traditional view of leaders centers on the strong individual providing vision and inspiration to
organisations, and sees leadership as a process of them motivating other people to act in particular
ways in order to achieve specific goals.
Brown (1996) working with the Managing Change through Innovation Project found leadership as
essentially about moving people in unison and with consensus towards a commonly defined goal.
For this reason, he sees leadership and managing change as often synonymous and bound up in a
cyclical process as shown in Figure 2.1 below. Brown concludes that effective leadership involves
change management (and managing change requires good leadership). Being a successful leader
entails encouraging innovation in others by using skills of active listening and empowering.
15
D'Souza (2003) argued that leadership is one of the most important means of directing
people. It is the process by which an executive influences the work and behaviour of
subordinates in choosing and attaining specific objectives. A person is said to have an
influence on others when they are willing to carry out his wishes and accept his advice or
guidance. Leadership is also the ability of a superior to influence the behaviour of his
subordinates and persuade them to follow a particular course of action (Van, 1982).
Appleby (1994) further sees leadership as a means of direction; it is the ability of
management to induce subordinates to work towards group ideas with confidence and
keenness.
16
Further insights were provided by Branham (2005), who brought a new perspective to the
leadership issue. He refers to it as a "crisis of trust and confidence" and summarises employees'
evaluation of leaders into three "fundamental questions" namely: "Will these leaders steer the ship
to success?" "Can I trust them to do what they say?" and "Do they have trust and confidence in me?"
Okumbe (1998) argued that theories of motivation can be classified as either content theories or
process theories. Content theories focus on factors within a person, such as needs; goals and
motives that energise, direct, sustain and stop behaviour. The content theories concentrate on
individuals, placing primary emphasis on people's characteristics. Content theories of motivation
place the emphasis on what motivates. Content theories comprise the Maslow's Hierarchy of Needs
Theory, the Herzberg Two-Factor Theory and the Mclleland Achievement Motivation Theory.
Maslow (1954) was of the opinion that a business can provide for these basic needs by a fair wage,
a meal and rest facilities. Safety needs include job security, safe working conditions and pension
schemes. Introducing teamwork and perhaps providing social
17
facilities like a club or sports pitch meet social needs. Self-esteem needs involve how others see us
at work and can be provided for by rewarding staff with status symbols like cars, offices and new
job titles. Allowing staff to gain qualifications at work can boost self-esteem too. Self-actualisation
entails achieving your full potential. A business must ensure that promotion is possible and that
there are opportunities to use initiative. Maslow suggested that the needs of human beings are
arranged in a hierarchical order of importance as shown in the Figure 2.2:
18
others; and (v) Self-actualisation need - the need to live up to one's fullest and unique potential.
A similarly famous theory of motivation was developed by Herzberg (1974) and is called the
two-factor theory of motivation. He theorised that there was a set of factors which, if absent, cause
dissatisfaction. They are related to job context, job environment and extrinsic to the job itself
(hygiene or maintenance factors). The other set of factors serve, if present, to stimulate the
individual to superior effort and performance (motivators or growth factors). The two-factor theory
does not deny the importance of the hygiene factors, but stresses their importance to maintain a
healthy work environment. If absent, even strong growth factors would not compensate for their
lack.
The Herzberg theory has two unique features. In the first place, it stresses that some job factors lead
to satisfaction (motivators). Secondly, that other factors can only prevent dissatisfaction (hygiene),
but cannot lead to job satisfaction. Herzberg proposed the following theoretical relationship
between motivation needs and hygiene needs: (i) When motivator needs are met workers will be
satisfied, when these needs are not met workers will not be satisfied; and (ii) When hygiene needs
are met, workers will not be satisfied; when these needs are not met workers will be dissatisfied.
Hygiene factors or dissatisfiers are potential dissatisfies and their presence is necessary to avoid
dissatisfaction among employees. They involve the job context i.e. they are external (extrinsic) to
the job and relate to the job environment while motivational factors
19
or growth factors or satisfiers are related to the content of the job, i.e., are inherent (intrinsic) in the
job and not the surrounding environment.
Herzberg proposed the following ways in which a high level of motivation could be promoted: (i)
Good quality training - the more a person can do the more that person can be motivated; (ii) Job
rotation - improving the variety of tasks and responsibilities; (iii) Job enlargement - making a
person capable of more; (iv) Job enrichment - this is creating more meaningful work; and (v) Focus
on quality of communication rather quantity - communication should be direct whenever possible.
Equity Theory of motivation (Adams, 1965) is related to the potential rewards that are promised to
an individual. Adams gave the name "equity theory" to the simple assertion that members of any
workforce wish to be treated fairly, that is to say, equitably in relation to others and to avoid
inequality. Thus individual employees are in a constant process of "comparing" themselves, i.e.,
their pay package, their terms and conditions to those of colleagues or even similar groups outside
the organisation. Should they feel themselves to be treated unfairly, effort and contribution will be
affected negatively.
Another process theory is the "goal setting theory" developed by Locke and Latham (1990). It
postulates that people are motivated to work towards achieving certain goals. Therefore,
goal-setting is an important motivational process. Goals enhance performance by clarifying what
type and level of performance is expected or required. Achieving a
20
goal leads to feelings of competence and success. Falling short of goals creates dissatisfaction, so
people are motivated to work hard to avoid failure.
Only limited local information was available on talent management, development, employee
retention, and employee engagement, which suggests that substantive studies to draw lessons from
in Kenya are not documented. There was, therefore, a need to document any findings from such
experiences. Due to the fluidity, both organisational and technological, of the media industry, there
was also a need for increased staff talent development and reduced labour turnover, hence there was
a gap posed by the need to study how this could be improved. That knowledge gap is what the study
intended to fill by carrying out the research on the problem identified in Chapter 1 and answering
the subsequent research questions. The next chapter outlines the conceptual framework of the
study.
21
CHAPTER THREE
3.0. THE CONCEPTUAL FRAMEWORK
3.1. Introduction
Henderson (1994) argued that that the major aims of research should be either to relate data to a
theory or to generate a theory from data. In order to hold existing and new knowledge, theory
should provide a conceptual framework so that knowledge can be interpreted for empirical
application in a comprehensive manner. This section discusses the conceptual framework for
analysing the factors affecting talent management at NMG. The possible reasons for NMG's talent
management issues are identified as follows:
Reward systems, physical working conditions, organisational culture, particularly its bearing on
career advancement, leadership styles and job security. These form the independent variables of the
study. The model treats talent management as the dependent variable for the study (Figure 3.1).
The model demonstrates how the independent variables affect the dependent variable and the
moderating effect of external factors such as the proliferation of media outlets, (particularly FM
radio and television stations) and the global economic crisis, which set in during the course of the
study.
22
23
CHAPTER FOUR
4.0. STUDY HYPOTHESES
The literature reviewed in Chapter 2 helped identify the key factors to consider in an examination
of talent management and this led to the formulation of the conceptual framework discussed in
Chapter 3. The framework explores the presumed correlation between the various levels of
motivation and talent management. This Chapter, therefore, puts forth a number of hypotheses,
which try to address the postulated research problem and objectives. Five such hypotheses were
formulated, each related to the research questions. The hypotheses allowed for limited statistical
analysis due to the fact that study undertook a qualitative approach. (See Appendices II, III and
IV). The following are the study hypotheses with their corresponding alternative propositions.
4.1. Hypothesis 1
It emerged from the literature that employee motivation or the desire to perform is the foundation of
productivity improvement. In addition, the literature showed that incentives have a positive
influence on motivation and productivity levels (Smithers, 2000; Huysamen, 1999). This
hypothesis stipulates that provision of incentives has a bearing on management of talent at NMG.
Some of the incentives considered included: Fair rewards for effort put in, possibility for growth
and promotion based on good performance, feedback on performance, praise, promotion and salary
increase for good performance, freedom in making decisions with regard to work, room for talent
development and self24
4.2. Hypothesis 2
The literature by Macfie (2002), Robbins (2003), and Bencivenga and Gallagher (1999) showed
that congested and poorly designed physical working conditions limit interactions among
employees at the workplace. Thus the following hypothesis sought to determine whether or not the
above empirical evidence influences talent management at
NMG.
Hypothesis 2: The nature of physical 'working conditions has a significant influence on talent
management at NMG.
4.3. Hypothesis 3
Empirical literature showed that effective leadership involves change management (and managing
change requires good leadership). Being a successful leader entails encouraging innovation in
others by using skills of active listening and empowering. Thus the hypothesis sought to determine
whether the leadership skills applied at NMG have a significant influence on talent management in
the organisation.
Hypothesis 3: The nature of leadership style applied has a significant influence on talent
management at NMG.
25
4.4. Hypothesis 4
Empirical review indicated that organisational culture is central to an organisation's
ability to manage its knowledge more effectively (Davenport and Klahr, 1998;
Davenport, DeLong, and Beers, 1998; DeLong, 1997). Thus this hypothesis sought to test
whether organisational culture is one of the determinants of running a successful talent
management programme in modern day organisations like NMG.
Hypothesis 4: Organisational culture has a significant influence on talent management at
NMG.
4.5. Hypothesis 5
According to Maslow's Hierarchy of Needs pyramid, safety/security needs (defined by
the need to feel that the world is organised and predictable, need to feel safe, secure and
stable) must be met in order for employees to become more innovative and remain loyal
to the organisation. Thus the following hypothesis postulates that employees need to feel
that their jobs are secure enough for them to fully exploit their skills for the growth of the
organisation.
Hypothesis 5: Job security has a significant influence on talent management at NMG.
26
CHAPTER FIVE
5.0. RESEARCH METHODOLOGY
5.1. Introduction
This chapter describes the methodology that was used as an aid to carrying out the research study. It
constitutes the blueprint for the collection, measurement and analysis of data. It is a plan for
selecting the sources and types of information used to answer the research question and meet the
study objectives. It is also a framework for specifying the relationships among the study variables.
The chapter covers various aspects of the target population, methods of data collection, sampling
methodology and data analysis among others.
The study adapted an exploratory research design and the researcher conducted a field survey at
NMG. The survey design was based on questionnaires that were used as data collection instruments.
The researcher applied this design to investigate the current situation on talent management at NMG
and it was very useful in studying the interrelations between the variables already mentioned in the
conceptual framework. Additional data was obtained through a personal interview with NMG'S
Human Resources Director. This design was also adopted because it allowed for collection of large
amounts of data from the target population.
27
NMG is structured into five divisions and two subsidiary companies: Nation Newspapers Division
(NND); Nation Marketing and Publishing Limited (NMP); Nation Broadcasting Division (NBD);
Nation Carriers Division (NCD); Nation Digital, Monitor Publications Ltd and Mwananchi
Communications Ltd. The divisions were purposively selected based on their operations within
Kenya and centrality of their head offices in Nairobi. The subsidiary companies in Uganda and
Tanzania were not considered necessary for the study. The Nation Digital Division was established
during the course of the study while the investment in another, East African Magazines, which was
jointly owned with Media 24 of South Africa, was discontinued for strategic reasons.
Primary data was collected from the staff drawn from the selected divisions. To control variations
in responses amongst the cadres of staff, the staff were divided into three categories: Senior
management staff, middle-level managers/supervisors, and junior staff. Additional data was
collecting in an interview with the HR director.
The sample for the study was drawn through purposive and simple random sampling techniques.
Purposive sampling was used to select senior managers while simple random sampling was used to
select middle level managers and junior staff (both current and those who left between 1998 and
2008). The sample comprised senior managers, middle level managers and junior staff drawn from
across all the divisions. Kothari (2003) described purposive sampling to be applied when the
researcher intends to pick subjects
28
of study that meet a certain criterion. Simple random sampling was applied in the two
lower cadres of staff to ensure that there was no bias in selection. A sample percentage of
10% was drawn from each cadre. Ninety-seven (97) staff members were interviewed
from the five departments as indicated in Table 5.1.
29
interview with the Human Resources Director, who is the chief custodian of NMG's human
resources data.
5.6.2. Data Collection Procedures
After obtaining authority from NMG's top management, the questionnaires and interviews were
administered to the target respondents during working hours. A followup of the staff that exited was
done through the Human Resources Department. A deadline was set by which the completed
questionnaires and interviews were to be ready, but only a few respondents met the deadline. The
researcher followed up with telephone calls and email messages until all the questionnaires were
collected. To ensure high response rates, the researcher interpreted each of the sections of the
questionnaires to the respondents to ensure that they fully understood the questions before
answering. Given that the researcher held a top managerial position at NMG at the time of the
study, there was a need to control for factors that would otherwise have affected the objectivity of
the study. To eliminate bias and ensure integrity of the data, the respondents were not required to
indicate their names when answering the questionnaires. A central collection point was also
designated near the exits of certain floors for the respondents to drop off the completed
questionnaires without necessarily being noticed.
After the fieldwork, the questionnaires were coded for purposes of transcribing the findings into the
computer and identifying coherent categories or common themes as illustrated in Table 5.2. The
codes were then entered in a computer spreadsheet. The data from the study was analysed using
both qualitative and quantitative techniques. Quantitative data was analysed using the Statistical
Package for Social Sciences (SPSS).
30
themes. After the data was analysed the research findings were presented using frequency
tables, pie charts and bar graphs.
31
CHAPTER SIX
6.0. DATA ANALYSIS AND PRESENTATION OF FINDINGS
6.1. Introduction
This chapter presents the findings of the study, analysis of data and presentation of findings. For the
purpose of showing the relationship amongst the variables, descriptive statistics such as frequencies
and percentages have been used. The study applied primary data that was collected from the sample
respondents as outlined in Chapter five. Both samples were randomly picked. The data formed the
basis for the findings presented in this chapter. The study achieved a 100% response rate for all four
cadres of staff targeted. The chapter is organised as follows: Section 6.2 presents information on
demographic characteristics of the sample; and Section 6.3 presents the findings on the factors
affecting talent management at NMG.
The findings presented in Table 6.1 indicate the demographic characteristics of the sample
respondents derived from NMG's current staff. The sample largely comprised male respondents
(60.6%); 39.4% were female. The findings also indicate that a majority of the respondents (59.2%)
were aged between 31 and 40 years with 18.3% aged below 30 years. This indicates that youthful
respondents dominated the sample. A cumulative majority of the sample respondents (85.9%) had
attained a university level of education. Finally, the findings indicate that even though most of the
sample respondents had vast
32
experience in the media industry (six to 10 years), for most of them, their experience at
NMG was not more than five years.
Table 6.1: Demographic Characteristics ofthe Sample (Current Staff at NMG)
33
findings indicate that most of the respondents (61.5%) had more than 10 years experience
in the media industry at the time of exiting, as compared to 53.8%, which indicates that a
majority had served fewer than five years at NMG. One can deduce from this that NMG
was seriously losing key talented and experienced staff over the years. The sample
respondents had reported that they exited during the period 2001 and 2008.
34
following variables had on talent management at NMG: Reward systems such as salaries,
allowances, training and promotion; working conditions; leadership styles; organisational
culture; opportunities for career advancement, and job security. The following subsections present the findings that seek to address these objectives.
35
addition, there was no comparison between the rate of pay increase and the rate of price
increase of common consumer items hence the cost of living was higher than their
earnings. Others argued that their workload did not match their pay.
The findings presented in Table 6.4 shows that a majority of the current staff sample
(70.4%) had been promoted since joining NMG, and their future prospects regarding job
mobility (promotions) were still high. On the contrary, a majority of the exited employees
(61.5%) had never been promoted by the time they left. This indicates that the staff could
have exited NMG after realising that their prospects for job mobility were dwindling over
time.
Table 6.4: Extent of Promotion amongst NMG Staff
36
37
the other two attributes, namely: "The pay package for NMG comes along with a lot of
benefits" (53.5%); and "NMG staff find their remuneration adequate to meet their needs"
(70.4%). The trend manifested in the responses indicates the respondents' dissatisfaction
with the level of remuneration and the company's reward schemes. Finally, it is evident
that 90.1 % of the sample respondents agreed that staff remuneration could influence staff
morale towards service delivery to the organisations clients.
Table 6.5: Extent of Satisfaction to Aspects of the Reward Systems (Current Staff)
presented in Table 6.5 whereby former NMG staff expressed stronger dissatisfaction
with the level of remuneration and the company's reward schemes. The trend in the
responses from the two categories of responses indicates that lack of commitment by the
top management towards employee remuneration and enhancement of the staff reward
schemes would have contributed to loss of talent at the NMG. Some examples of the staff
reward aspects that would make the current staff feel like exiting the group included,
unrealistic cash benefits (car loans and mortgage allowances), level of remuneration, and
poor benefits attached to the pay package.
38
Table 6.6: Extent of Satisfaction to Aspects of the Reward Systems (Past Staff)
The aspects of the working conditions captured in the study included the physical
working environment, peer-to-peer employee relationship, and employee-to-seniors
relationship. In keeping with general trends in any working environment, a bigger
proportion of the staff surveyed had a friendly peer-to-peer relationship on the one hand,
and with their seniors on the other. The findings in Table 6.7 show splits between
different perceptions of friendliness. The findings show that the working environment
within NMG is rather friendly since the employees can relate well with their seniors and
their peers. However, the fact that 30.4% of the past staff were of the opinion that their
relationship with their seniors was "fairly unfriendly" would be an indication that some
of them could have exited NMG due to poor relationship with their seniors.
39
With regard to the physical working environment, the respondents cited lack of spacious
offices and congestion in the work areas. The offices cannot fully accommodate the
employees since the nature of work at NMG is labour-intensive. In some offices,
employees have their desks arranged very close to each other. In some sections, the floor
space is inadequate to seat everyone thus forcing staff to share workstations. Very few
respondents claimed to have adequate working space. Respondents complained of lack of
sufficient ventilation within the offices, except for those located near windows. These
were also identified as some of the aspects of the physical working environment that
would make the current staff feel like exiting NMG.
40
the ranks of departmental heads and members of the top management. This was closely
7.
41
indicate that the leadership styles outlined in Figure 6.2 above are effective (70.4%) in
8.
Effects of organisational culture on talent attraction and retention were evaluated through
aspects relating to the nature of work, organisational policies, administrative support, and
commendation from senior managers. The findings presented in Table 6.9 indicate the
ratings of various aspects of the organisational culture at NMG on a five-point scale. As
the findings show, a majority of the sample respondents agreed with the following
aspects: The nature of their work is interactive and keeps them highly motivated
(59.2%); administrative support, effective supervision and good pay are necessary for
developing talent (84.5%); migration of staff across companies in the media industry is
attributed to unfriendly organisational cultures (64.8%); and feedback from seniors
increases one's level of motivation (71.4%). Most of the respondents (37.7%) seemed
uncertain of whether or not the organisational policies and administration were workfriendly; as well -as whether or not the nature of work changed as the organisation
changed in response to new demands and environmental pressures (42.6%). Other issues
43
included too much red tape, lack of clearly-defined career development paths, failure to
9.
develop talent amongst staff, and poor staff motivation.
Table 6.10 presents findings on the status of employment for both the current and past
staff samples. The findings show that a majority of the staff in both categories had been
permanently employed (95.8% for current staff and 92.3% for the past staff). This
indicates that the organisation desires to recruit most of its staff under permanent terms of
service.
44
Table 6.10: Status of Employment for Current and Past NMG Staff
The findings from the top managers and heads of department revealed that some of the
issues that would make NMG staff feel that their jobs were insecure, or make them quit,
include, a leadership which is wholly autocratic and uses threats and disciplinary action at
every step to achieve its objectives; a leadership which did not listen to employees' views
and showed little regard for an individual's expertise; redundancy due to the ever-
45
changing market environment; lack of career path or avenues for career growth; inadequate
compensation; and psycho-social factors such as work/life imbalance.
In an interview with the Human Resources Director, it seemed that career advancement accounted
for the majority of staff exits, between 60 and 70 percent. That created an urgent need for NMG to
design strategies to address employees' career growth aspirations. Data from exit interviews with
departing employees also suggested that some employees had left for similar jobs elsewhere. The
HR director's concluded that such employees were motivated by the desire for quick wins, rather
career advancement. The HRD saw NMG as a breeding ground for talent, making it an easy target
for predators.
On salary structures, the HR director was of the view that NMG was competitive in some areas
(middle level ranks) and less competitive at the joining level. For instance, fresh university
graduates came in about Ksh50,000 a month while other industries paid higher than that. However,
it was difficult to establish the degree of competitiveness in the editorial department due to a lack of
data on comparator organisations in the media. It appeared that NMG was in the unique position of
being the only media house in the country that participated it the annual Price WaterhouseCoopers
(PWC) salary survey.
Overall, talent migration resulted in salary distortions, according to the HR director. In most cases,
any threatened staff departures tended to precipitate salary reviews by as much as 20 percent, thus
raising the general wage bill and making it difficult for the less financially endowed media houses
to afford key talent. Indeed, there was much anecdotal evidence that the salary distortions had
assumed a different dimension where some
46
unscrupulous media houses offered as much as four times what was considered the industry mean.
In other instances, as the competition for talent intensified, some employers resorted to
under-the-table payments.
Further interrogation of the HR director established that the organisation had made a number of
initiatives to stem the migration of talent from its stable. These included a process to identify what it
referred to as "must keep" employees and the introduction of incentives like lock-in bonuses,
variable pay based on performance and a development programme to motivate the individuals to
stay for the long term. At a more companywide level, it had initiated what it called a "Formula For
Success", which was essentially an effort to better realign the organisation's culture to its business
objectives with particular emphasis on people issues. It involved all employees and they were
required to participate by identifying the 10 most disabling features in the company and the 10 most
enabling ones. Employees had subsequently been rallied together to continually chip away at the
disablers while building on the enablers.
Significantly, attracting and retaining the best people, developing a clear career path, good working
environment, and pay for performance had been identified as key enablers that, if properly
executed, could resolve the organisation's most troubling people issues. However, despite these
efforts, key talent continued to be attracted away from the organisation.
Regarding the proliferation of media houses and what impact, if any, that had had on NMG, it was
clear from the interview that demand for top talent had grown rapidly and
47
NMG had found itself losing some of its best people to better paying employers. For
instance, during the period of the study, a radio manager who had managed to make NMG's newest
business unit, QFM, competitive in the crowded and fragmented market,
was snapped up by a rival broadcaster for three times the pay he was earning at NMG. This
suggested that the competition was for the same pool talent and was likely to
continue that way unless employers devised new strategies to expand pool.
Using the Likert scaling method (see questionnaires Appendix II), indices were developed for each
of the independent variables of the conceptual model. The indices
were treated as proxies through which the influence of the independent variables on talent
attraction and retention could be tested. Correlation analysis was performed to establish
the relationship between various factors regarding talent attraction and retention as
outlined in the conceptual model of Figure 3.1 (Page 23). The correlation coefficients and their
corresponding tests of significance are presented in Table 6.11. The table also
indicates the decisions derived on whether or not to reject the null hypothesis based on
the strength of the tests on the correlation coefficients obtained. The decision rule was to
reject the null when the Pearson correlation coefficients were found to be significant at
either 95% or 99% levels of confidence.
Table 6.11: Correlation analysis of factors affecting talent management at NMG
Variable
P-values
Decision
0.268*
< 0.05
Reject Ho
0.251*
< 005
Reject Ho
0.226
0059
Accept Ho
0.359**
< 001
Reject Ho
-0.073
0.550
Accept Ho
48
Ho:
Staff reward systems (such as salaries, allowances, training and promotion) have no
significant influence on talent management at NMG
H1:
Staff reward systems (such as salaries, allowances, training and promotion) have a
significant influence on talent management at NMG
Hypothesis 2
Ho:
H1:
Hypothesis 3
Ho:
H1:
The nature of leadership style applied has a significant influence on talent management
at NMG
Hypothesis 4
Ho:
H1:
Hypothesis 5
Ho:
Job security has no significant influence on talent attraction and retention at NMG
H1:
Job security has a significant influence on talent attraction and retention at NMG
The findings presented in Table 6.11 indicate that talent management is strongly
influenced by: Staff rewards systems such as salaries, allowances, training and
promotion; the physical working conditions; and organisational culture. This is based on
the significance levels of the correlation strengths of the three independent variables
against the dependent variable (talent management). The findings indicate that leadership
styles and security of tenure for employees have little influence on their decision to stay
on or leave the company. The key emphasis is on remuneration, the working
environment, career advancement and peer to peer relations at the workplace.
49
CHAPTER SEVEN
7.0. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
7.1. Introduction
This chapter summarises the research findings, conclusion as well as recommendations.
The purpose of the study was to establish the factors influencing talent management in the Nation
Media Group. Specifically, the study sought to establish the effect of the following factors on talent
management at NMG: Reward systems like salaries, allowances, training and promotion; working
conditions; leadership styles; organisational culture, particularly its bearing on career advancement;
and job security. The findings indicated that a majority of both the current and former staff were
dissatisfied with their emoluments, which suggested that employees were unlikely to commit fully
to their work due to low morale and that could lead to a high staff turnover.
The respondents were of the views that salary reviews and increments did not correlate sufficiently
with one's length of service, desired level of comfort, rate of inflation and, therefore, rising standard
of living. Workload was also an issue with some respondents indicating that it not match their pay.
The study also established that one reason for leaving was the realisation that prospects for job
mobility had dwindled over time, living little room for career advancement.
50
A majority of those interviewed said they did not enjoy cash benefits or allowances. Instead, they
were paid a gross salary, which, for unionisable staff, included a modest house allowance.
Non-monetary benefits were in the form of a medical scheme cover. There was also an element of
travel allowance. Top managers and heads of department gave further insights into the available
benefits. These included car loans for eligible staff, annual salary increases based on performance, a
performance-based bonus scheme, a house-purchase mortgage scheme, selective training
programmes, and a lock-in scheme for broadcast news anchors where a certain amount of funds was
set aside every month to be claimed at the end of one's contract period. An employee share
ownership plan (ESOP) was also envisioned. The trend observed in the responses indicated a
general dissatisfaction with the level of remuneration and the company's reward schemes. The
responses were unanimous that staff remuneration could influence staff morale towards service
delivery.
The findings showed that poor remuneration and reward schemes would have contributed to loss of
talent. Some examples of the staff reward aspects that would make the current staff feel like leaving
the company included: Unrealistic cash benefits (car loans and mortgage allowances), level of
remuneration, and low value benefits attached to the pay package.
Aspects of the working conditions captured in the study included the physical environment,
peer-to-peer employee relationship, and employee-to-seniors relationship. A bigger proportion of
the staff surveyed indicated the existence of a friendly relationship between them and their seniors.
The findings showed that the working environment
51
within NMG was fairly congenial since it allowed employees to relate well with their seniors and
peers. However, some of the former employees indicated that their relationship with their seniors
had been "fairly unfriendly", thus indicating that that could have motivated their departure.
With regard to the physical work environment, some of the respondents cited lack of adequate
space. Congestion in the offices, sharing of desks and other resources were some of the disabling
environmental factors. Very few said they had adequate working space. Some suggested that
lighting and ventilation within the offices were also a problem. These were also identified as some
of the aspects of the physical working environment that would make staff feel like leaving NMG.
The findings on leadership styles established that an autocratic (dictatorial) form of leadership was
a common trait among departmental heads and members of the top management. In some
departments, a laisser-faire leadership approach moderated the severity of managers' bossy
attitudes. This suggested the existence of a hybrid system, combining openness with autocracy. All
in all, an open-door leadership style was evident only in a few areas. Interview notes from the top
and middle level managers suggested that a blend of autocracy and consensual leadership style
(mostly consensual) would serve best with creative people, who must be motivated to give their
best. The leadership should strive to empower staff to be more productive and independent. This
could be achieved if there was openness in communication. The two leadership styles (autocracy
and laisser-fairei would be effective in enabling the top leadership to achieve its organisational
goals.
52
The findings from a majority of both the current and the past employees agreed that the nature of
leadership styles had an effect on staff morale. The respondents were of the opinion that poor
leadership made them feel helpless. Dictatorial leadership limits employee creativity, as they are
not actively involved in decision-making. Some of the leadership traits that would make the current
staff feel like leaving the organisation (or has already resulted in exits) were identified as follows:
Taking too long to be nurtured into a leadership role; not being challenged with new
responsibilities; failure to involve employees in decision making; and failure to communicate
decisions in a timely manner.
The effects of organisational culture on talent management were evaluated through aspects relating
to the nature of work, organisational policies, administrative support, and commendation from the
senior managers. The findings showed that staff were satisfied in terms of the nature of work they
engaged in, administrative support, and feedback from their seniors. Issues of organisational culture
that hindered talent management included too much red tape, lack of clearly defined career
development paths, failure to develop talent amongst staff, and poor staff motivation.
Some of the key issues that the respondents identified that they would fear most at NMG included
retrenchment or downsizing, being made redundant, disciplinary action, and working long hours,
which drained one's energies. For the few contractual staff interviewed from both categories, the
common theme was that they had no job security. They were also worried that an economic
downturn would constrain the company's capacity to offer them rewards and bonuses. However,
they were of the view that technological development would enhance their work rather than become
a threat to their
53
jobs. Competition among media houses was also seen as a tool to drive creativity rather than a threat
to job security.
The findings from top managers revealed that some of the issues that would make NMG staff feel
that their jobs were insecure, or make them quit the Group, included: An autocratic and insensitive
leadership, which was wont to use threats and disciplinary action to achieve its objectives and one
that had little regard for individuals' expertise; redundancy due to the ever-changing market
environment; lack of career path or avenues for career growth; inadequate compensation; and
psycho-social factors such as work and life imbalance.
7.3. Conclusions
Two types of factors were identified in terms of their effect on talent attraction and retention:
Hygiene factors, which, by their presence or absence, determine levels of worker dissatisfaction
(for instance, supervision, interpersonal relations, work conditions, salary, and job security); and
54
satisfaction and motivation (for instance, achievement, the work itself, recognition, responsibility,
advancement, and growth).
Herzberg's theory suggested that it was difficult to produce positive motivation if hygiene factors
were absent. However, a distinction between hygiene and motivational factors is useful for
understanding worker behaviour, even if the distribution of factors between motivation and hygiene
may vary in different settings. The findings of the study are in agreement with past empirical
studies. In addition, it was deduced that the proliferation of media, which had resulted in a huge
demand for talent and intensified competition for top performers, had moderated the effect of the
independent variables already discussed.
7.4. Recommendations
7.4.1. Recommendations for Improvement
It is clear from the findings of the study and the comments by NMG's HR director that a number of
interventions are required to address the problem of talent management. At the strategic level,
NMG needs to make talent management its primary people related issue. The organisation's HR
strategy should be geared towards developing a sustainable programme of identifying high
potential employees and building on that to create a reservoir of what Berger (2004) refers to as
superkeepers. That reservoir can then be nurtured through systematic interaction with management
to keep it focused on the organisation's business goals while satisfying its needs through a
deliberately skewed rewards and incentives scheme.
55
Top management should not have any qualms about applying a discriminatory pay structure for
such a reservoir. With the current global economic downturn, which is already affecting the
fortunes of Kenyan companies, the need to nurture a reservoir of superkeepers cannot be gainsaid.
Lance A. Berger makes the point that regardless of the financial strength or weakness of the
economy, the best people are always needed and always have choices. They go on to argue that a
superkeeper's presence "when recognised and reinforced, can serve as a strong recruiting tool for
the organisation" as well as raise the performance standards
the investment that an organisation makes
111 such
111 a
More specifically, NMG needs to entrench a culture of closer interaction between supervisors and
employees so that employees needs and wants are well understood. Its rewards and incentive
schemes should be a mix of short and long term benefits that do not necessarily stick to the beaten
path. The planned employee stock option plan is both illustrative and instructive of the need for
creative thinking in designing an incentive scheme. The current economic downturn has
dramatically exposed the stock market as a fragile and highly risky investment option, making it
less attractive as a value proposition for employees. A great deal of creativity is, therefore, required
to generate the right mix of incentives. Branham (2005) touts the combination of pay and
recognition as "powerful tools for reinforcing organisation values or changes in personal behaviour
and work culture". He then highlights pay practices that engage and retain in which base pay is
linked more to "value creation and less to rank or years of service". At NMG, this would practically
translate into lower ranked, but talented staff deemed to be creating value,
56
earning more than their managers. It is a controversial proposition, almost untenable, but one that NMG
might want to consider if it hopes to stay on top of the talent management game.
In tandem with this, NMG could introduce a system of rewards for managers who prove more successful
at retaining talent than others. As noted earlier in the interview with the HR director, media managers are
spending enormous amounts of money to buy talent. The proposed rewards scheme would shift
managers' energies to devising creative measures to retain talent and, therefore, obviate the need to buy
it unless it was an absolute imperative.
Matching jobs with qualifications is also critical. Employees should also be given job assignments that
are in line with their professional qualifications. A positive work environment is important as well. The
work environment consists of the physical nature of the offices as well as the formal and informal
organisation, communication and morale-building infrastructure. Placing individuals in single or shared
offices or open space without their input often leads to frustration. A positive work environment extends
to emotional issues of the staff. The atmosphere should be friendly with free communication at all levels
of staff.
Within the workplace, staff should aim routinely to thank one other for their exceptional achievements
and share compliments. Senior managers should invest time in understanding every part of their
organisation and the people who work in them. Equally important, they should involve people in
decision-making wherever possible, encourage
57
opportunities for staff development, and ensure these are not compromised by other external and
internal pressures. A sense of belonging is what is needed and everyone can strive to establish the
right atmosphere for that. Likewise, there is a need for a collective effort to ensure there is a balance
between supporting people when a mistake is made, and ensuring appropriate accountability.
In the final analysis, NMG needs to look at its employees' concerns as what Branham refers to as
"negatively stated solutions" and actively work on them to enable it to become an employer of
choice. At the industry level, it is imperative for media managers to cultivate closer links with
training institutions to ensure a constant flow of talent that is clearly aligned to the specific needs of
the industry. This is particularly significant as the digital revolution brings with it the need for new
skills in journalism. Close collaboration between training institutions and media houses would help
realign the curricula to the specific needs of the industry. Ultimately, such efforts would help
expand the talent pool.
7.4.2. Recommendations for Further Research
Further research should be done on the appropriate Human Resource Development (HRD)
strategies that can help improve morale and working conditions for employees in the media
industry. There may also be other factors that contribute to high turnover of staff across media
houses. Employee needs assessment and satisfaction surveys should be conducted regularly in order
to establish more in-depth issues that affect HR within NMG or the media industry at large. Further
research may also be conducted with a special focus on specific talent pools such as those of editors
and broadcast news anchors
58
BIBLIOGRAPHY
Alderfer, c., (1969), "'An Empirical Test ofa New Theory of Human Needs."
Organizational Behaviour and Human Performance, 4: 143-175.
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1999
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62
February, 2009
Dear respondent,
MEDIA GROUP. For this reason I would appreciate if you would kindly spare a few minutes of
your time to fill in the blanks in the attached list of questions to the best of your knowledge as they
apply to yourself.
The information in this questionnaire will be treated with confidentiality and in no instance will
your name be mentioned in this research. In addition, the information will not be used for any other
purpose other than for this research. Your assistance in facilitating the same will be highly
appreciated.
Dr Gakuru Wahome
Wangethi Mwangi
Supervisor
Masters student
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29. Briefly outline how the following would threaten your current job at NMG?
a. Technological change _________________________________________ _
c. Competition ________________________________________________ _
30. Does NMG have a comprehensive job security agreement with you?
a. Yes
b. No
0
0
0
If YES, briefly explain your expectations from the management in honouring such
an agreement _____________________________________________________ _
31. What aspects of job security do you think would make you feel like leaving
NMG? ____________________________________________________________
71
32. What recommendations can you make to the management regarding attracting and
retaining quality talent as pertains the following issues?
a. Staff rewarding systems
b. Working conditions
c. Leadership styles
d. Organisational culture
e. Job Security
------------------------_.-
----
---------------------------_._- -
72
a) Male
a. Below 30 years
0
0
0
0
1. Gender
b) Female
2. Age Category
b. 31 - 40 years
c. 41 - 50 years
d. Above 50 years
3. Year that you left NMG
0
0
0
U ni versi ty (graduate)
d. University (Postgraduate)
0
0
0
0
73
0
0
0
0
0
a.Yes 0
b.No 0
11. What were your prospects regarding job mobility/promotion at NMG before
quitting the group? ____________________________________________________ _
12. Was your last gross pay at NMG comprised of benefits and allowances?
a.Yes 0
b.No 0
If YES, Briefly specify
_____________________________________________________________________
.
74
13. Kindly indicate the extent to which you agree or disagree to the following aspects
of staff reward systems for employees working at NMG
14. What aspects of staff reward aspects do you think affect talent attraction and retention at
NMG?
-----------------
0
0
0
0
0
75
16. How would you rate the relationship between the employees and their peers?
a. Very friendly
b. Fairly friendly
c. Friendly
d. Fairly unfriendly
e. Very unfriendly
0
0
0
0
0
17. How would you describe the physical working facilities at NMG in terms of the
following;
a. Working space _____________________________________________ _
--------------------------b. Ventilation -----------------------c. Tools and equipment (computers, stationery, etc).
76
0
0
0
0
19. How effective was the leadership style exercised in Q.18 above?
a. Very effective
b. Fairly effective
c. Effective
d. Fairly ineffective
e. Very ineffective
0
0
0
0
0
---
20. The leadership style stated in Q.18 affected your working morale at NMG
a. Strongly agree
b. Fairly agree
c. Not sure
d. Fairly Disagree
e. Strongly disagree
0
0
0
0
0
21. You frequently received encouragement from your seniors regarding your work
a. Strongly agree
b. Fairly agree
c. Not sure
d. Fairly Disagree
e. Strongly disagree
0
0
0
0
0
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22. Had you ever received training from NMG or been to a specific training
institution regarding effective leadership?
a.Yes 0
b.No 0
SECTION D: INFORMATION ON ORGANISATIONAL CULTURE
23. Please indicate your level of agreement to the following statement as regards
nature of work and organisational structure.
1 = Strongly agree
2 = fairly agree
3 = Agree
4 = fairly disagree
5 = strongly disagree.
a.Permanent 0
b.Contractual 0
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25. What did you fear most about your job at NMG? ____________________________ _
26. If contractual staff, were there assurances/ measures put in place by NMG to
ensure that you retained your job till the end of the contract period?
a.Yes 0
b.No 0
Briefly explain your response ___________________________________________ _
27. Briefly outline how the following would threatened your job at NMG?
a. Technological change
_
b. Economic downturn
-------------
c. Competition ___________________________________________________ _
28. Did NMG have a comprehensive job security agreement with you?
a. Yes
b. No
c. I'm not aware
0
0
0
If YES, briefly explain your expectations from the management in honouring such
an agreement _____________________________________ . _____ . __________._
..
---_._- --
79
29. What recommendations can you make to the management regarding attracting and
retaining quality talent as pertains the following issues?
a. Staff rewarding systems
b. Working conditions
c. Leadership styles
------------------------_.
__ ._--
d. Organisational culture
e. Job Security
------------------------_
..
_-- ---
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6-10
10-15
Over 16
7) What reward systems have the management put in to enhance talent attraction and
retention at NMG?
8) In your opinion, what aspects of working conditions affect talent attraction and
retention at NMG?
------------------------
- -_._-
--
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10) What would make NMG staff feel that their jobs are insecure, or make them quit the group?
11) What recommendations can you make to the management regarding attracting and
retaining quality talent as pertains to the following issues?
a. Staff rewarding systems
b. Working conditions
c. Leadership styles
d. Organisational culture
e. Job Security
82