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What are the individual and programmatic determinants for a corporate social responsibility program developed for high

potentials in a talent management program?

Written by: Ingrid Christina Josephina van Miert, 2012, Voorburg

PhilipsMaster thesis ICJ van Miert

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What are the individual and programmatic determinants for a corporate social responsibility program developed for high

potentials in a talent management program?

Written by: Ingrid Christina Josephina van MiertAppelgaarde 101, 2272TC Voorburg

Thesis submitted: still need to add

Student number: 3055345

University: Utrecht University

Master: Strategic Human Resource Management

Supervisor University: Dr. Ir. Marc Peeters

Supervisor Philips: Dorine van de Westelaken


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“... perhaps the most distinguishing trait of visionary leaders is that they believe in a goal that benefits not only themselves, but

others as well. It is such vision that attracts the psychic energy of other people, and makes them willing to work beyond the call of

duty for the organisation.”

Mihaly Csikszentmihalyi (2003)

“It is one of the beautiful compensations of this life that no one can sincerely try to help another without helping himself.”

Ralph Waldo Emerson


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AbstractIn the ongoing globalization, it becomes difficult to attract the talents that are suited for an organisation as Philips. Previous research shows that organisations need to innovate and listen to the needs of the High Potentials (HPs). The needs are to give something back to the community. Therefore a solution could be to implement a corporate social responsibility program. This research examined the individual (based on organizational citizenship behaviour (OCB)) and the programmatic (based on the job dimensions of Hackman & Oldham (1975)) determinants of a successful corporate social responsibility program. With successful we mean that participants, HPs enrolled in a talent management program, are willing to participate. Using a sample of 134 participants from the Benelux, significant results showed that job dimensions lead to a higher willingness to participate, and that task significance is especially important. OCB showed to be positively related to the willingness of respondents to participate in a corporate social responsibility program. Implications for future research, theory, and practice are discussed. Moreover an advice is given for the implementation of a corporate social responsibility program for the HPs of Philips.

KEY WORDS: Corporate social responsibility; organizational citizenship behaviour; job dimensions; corporate citizenship; determinants; participation


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Contents

Abstract......................................................................................................................4Contents.....................................................................................................................5Acknowledgement......................................................................................................71. Introduction.........................................................................................................8

1.1. Organisation.............................................................................................................8

1.2. Problem indication....................................................................................................9

1.3. Central Question.....................................................................................................12

1.4. Research objective..................................................................................................12

1.5. Relevance................................................................................................................13

1.5.1. Scientific relevance.............................................................................................13

1.5.2. Practical relevance..............................................................................................13

1.6. Thesis arrangement................................................................................................14

2. Theoretical framework...................................................................................152.1. Talent Management for high potentials..................................................................15

2.1.1. What are the best practices in talent management for high potentials in general?17

2.2. Corporate social responsibility...............................................................................22

2.2.1. How can corporate social responsibility be described?......................................22

2.2.2. Which corporate social responsibility practices are used in talent management programs?......................................................................................................................24

3. Methodology...................................................................................................323.1. Central question.....................................................................................................32

3.2. Research domain....................................................................................................33

3.2.1. Literature research.............................................................................................33

3.2.2. Quantitative research......................................................................................33

3.2.3. Qualitative research.........................................................................................33

3.3. Sample....................................................................................................................34

3.4. Data collection & measurement instruments.........................................................35

3.4.1. Survey research...................................................................................................35

3.4.2. Document analysis...........................................................................................36


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3.5. Data analysis...........................................................................................................37

4. Results............................................................................................................404.1. Which practices are used, by CTM Benelux, in the program for talent management?....................................................................................................................40

4.2. Which programmatic determinants are important for a successful corporate social responsibility program for high potentials involved in a talent management program?...42

4.3. Which individual determinants are important for a successful corporate social responsibility program for high potentials involved in a talent management program?...43

5. Conclusion and discussion.............................................................................455.1. Conclusion..............................................................................................................45

5.2. Implications for research and future research.......................................................46

5.3. Implications for practice.........................................................................................47

5.4. Limitations..............................................................................................................48

References...............................................................................................................50


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Acknowledgement

This thesis represents the finish of a long period of studying, and more specifically it will represent my graduation. Although it went with ups and downs, and sometimes it was really struggling to stay motivated, I am glad I have finished my thesis. Throughout the whole process I have learned a lot, and I consider this thesis the final puzzle piece of my development on the University Utrecht.

During the time I was writing my thesis, the subject more and more become a personal interest to me. This made it more and more fun and especially more interesting. This helped me in staying motivated to finish my thesis.

Especially in the beginning it was a struggle between practice and science. Philips requested completely different things compared to my supervisor Marc Peeters. I therefore hope that Philips, as well as my supervisor, are satisfied with the final product.

The fulfilment of this thesis could not have been fulfilled without the support, supervision and help of people. First I would like to thank my supervisor from University Utrecht, Marc Peeters. Although sometimes we have had though discussion, I am very thank full for his supervision. He always challenged me to look critically at the things I had written and because of this the final product is better than I could expect. I am also grateful to Wouter Vandenabeele, who assisted me with designing my survey. Moreover he supported me in the statistical analyses of my thesis. This he all did without me being one of his students.

I would further want to thank all my colleagues at Philips, especially Mariya, Sybilla, Sonia & Maria. They supported me during my internship at Philips and because of them I developed myself even more. Finally I would like to thank my managers at Philips, Mike & Dorine, who helped me during the start of my thesis and gave me a lot of freedom in doing my research.

Ingrid van Miert

Voorburg, April 21st 2012


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1. Introduction

“Societal needs, not just conventional economic needs, define markets, and social harms can create internal costs for firms” (Porter & Kramer, 2011:65).

This thesis will start with an introduction of Philips. Here it will become clear what the mission and ambition is of Philips. Furthermore the Country Talent Management (CTM) Benelux will be introduced and their activities. Following on that, the problem indication of this research will be presented. It will be clear why this research is important not only for Philips, and specifically the department of CTM, but for similar organisations as well. In the third paragraph, the central question, sub questions and research objective will be introduced. Fourth, the scientific and organisational relevance will be addressed. In the last paragraph the outline of the thesis is presented.

1.1.OrganisationPhilips is a Dutch multinational organisation founded in 1891. It is one of the largest global diversified industrial organisations with a focus on the sectors Healthcare, Consumer Lifestyle and Lighting. Philips sells products and services in over 100 countries worldwide, has 118 production sites and 7 research laboratories. At the end of 2010 Philips Group consisted of 119,001 employees, whereof 55% is located in mature markets and 45% in emerging markets (Philips Annual Report 2010:6,12).

Like every global organisation Philips strives for profit and market share. However the social face of the organisation becomes more and more important. Philips strives to deliver meaningful innovations that improve people’s health and well-being. The focus on health and well-being is extended beyond the products and services, to include the way of working at Philips. This is visible in the way they engage and develop their employees, their focus on social investment in communities, the way they are trying to reduce the environmental impact and the drive for sustainability (Philips Company Manual, 2010). In line with this is the mission of Philips: “Improve the quality of people’s lives through the timely introduction of meaningful innovations” (Philips Annual Report 2010:11). To make this all more feasible Philips makes a five year strategic plan. The running five year plan is for 2010 until 2015 and is called Vision 2015. The ambition that is congruent to the Vision 2015 is:


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“Philips wants to be a global leader in health and well-being, becoming the preferred brand in the majority of our chosen markets. We believe Philips is uniquely positioned for growth through its ability to simply make a difference to people’s lives with meaningful, sustainable innovations” (Philips Annual Report 2010:13).

Philips wants to reach this vision by developing the leadership skills, talent and engagement of employees and compare them with the best in the same industry (Philips Vision 2015:9). Therefore Philips is not guided by internal consideration, but by the market (ibid). They concentrate on external trends to determine the issues most relevant and where they can make a positive contribution to society at large (Philips Annual Report, 2010).

CTM Benelux is a department within Royal Philips Electronics in Eindhoven, the Netherlands. It focuses on the talent development of so-called High Potentials (HPs) within the company, meaning highly motivated employees with the potential to become business leaders at the moment they join the pool or later in their career (Mäkelä, Björkman & Ehrnrooth, 2010). Talent management is the development of HPs and focuses on a specified pool of employees who “rank at the top in terms of capability and performance” (Stahl et al., 2007: 4). Talent management can entail “a more integrated version of traditional human resource practices to a performance-based ranking of employees and the related management of talent pipelines for the purpose of global staffing and succession planning” (Mäkelä, Björkman & Ehrnrooth, 2010: 134). However the focus lies on a specified pool or pools of general managers who are seen as potential executive talent (Stahl et al.,2007). In order to divide employees into different stages of their career, Philips uses a grade system, starting from grade 45 (career starters) up to grade 90 (Mahfoud, 2011). Those grades are associated with certain functions and have a company defined grade. The employee then automatically gets the grade dedicated to the position. This is linked to payment and is decided upon by job grading. CTM organizes talent events and High Potential Development Centers (HPDCs) in order to support the HPs’ development (Mahfoud, 2011). The total talent pool of Philips consists of approximately 2,000 High Potentials, or highly educated employees from a number of countries (Blom, 2010). In de the Benelux this talent pool consists of approximately 700 High Potentials.

CTM is always looking for new ways to improve the leadership development of their High Potentials. As mentioned above, Philips concentrates on external trends to determine the issues most relevant. A concept which is getting more attention in the business world is social responsibility. Therefore, this thesis will examine if CTM Benelux can incorporate a cooperation of corporate social responsibility in their business, specifically their HPs, and


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civil society in their leadership development program. This will be explained more in depth in the next section of this paragraph.

1.2.Problem indication According to Henk de Bruin (Global head of Sustainability) Philips has always been an organisation which had a focus on more than profit and revenue:

“Philips has a long-standing sustainability history. Our founding fathers Gerard and Anton Philips were already social entrepreneurs ahead of their time. They realized housing, sporting and cultural activities for their employees. They also set up schools to ensure basic education for the children of Philips employees. Since then, our company has evolved greatly, and the social fibre of those early days has long survived” (EcoVision5, 2010: 8).

As became clear, from the introduction of the organisation Philips, the CTM Benelux is focused on talent management. In the talent management program they want to try to incorporate social responsibility. There are several societal developments that can be the cause of why an organisation, and specifically CTM Benelux, wants to incorporate this in their activities.

One of the biggest challenges in the business world is the ongoing globalization. Globalization is hard to define as every researcher, depending on the scientific background, has another description of the word. Globalization is active on the level of governance, economics, environment, demographic characteristics, and many more areas (Martens, Dreher & Gaston, 2010). The problems and challenges of this process do not stop at national borders, for example in the case of financial crises, world-wide pandemics and cross-border pollution (Martens, Dreher & Gaston, 2010). It is important for Philips to arrange their talent management activities according to the challenges of globalization. Besides aligning their policy, it is still very much important to align it with the performance and revenue of an organisation. In the past the main concern of organisations was sales and revenue for themselves and the shareholders (Bolman & Deal, 2003;133-135). Nowadays, organisations have more concerns and more stakeholders to keep in mind. The global trends most concerned with globalization are the aging population, increased consumer empowerment and sustainable lifestyles, climate change and sustainable development (Philips Annual Report 2010). What are these global trends exactly and what is their connection with Philips?


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The first trend of the aging population has two causes, namely the decline in the birth rate and mortality rate. Since 2000 the birth rate has declined. Between 2008 and 2009 there has been a light increase (Centraal Bureau voor de Statistiek, 2010). The same is true for the mortality rate. Since 2000 there is a decline in this rate, although only in 2008 it increased a little (ibid). Another identifiable fact is that in the last ten years the life expectancy in the Netherlands has increased with 2.1 years (ibid). According to Bogaert & Vloeberghs (2005) these developments compel organisations to take into account and use other employees than the employees they always preferred to select. They are compelled to recruit employees that are not only “young, healthy and autochthonous men, who are available fulltime, highly qualified, mobile, and flexible” (Bogaert & Vloeberghs, 2005, p. 484). There is a need to look beyond the standard picture of socio-demographic characteristics, e.g. gender, race, age and physical limitations. The consequences of globalization are that organisations become more complex and becoming more dependent on well-trained human capital (Bolman & Deal, 2003). Different research concludes that a way of creating competitive advantage is to attract and retain highly skilled, quality employees (Teece, 1998; Turban & Greening, 1997). Competition for talent will intensify and become more global according to research from the Corporate Leadership Council Human Resources (2011). Their research was held under senior executives who rated the top three impacts on business over the next five years. Although this research is from 2008 they conclude that this impact is still on top of the list of multinational companies as in more recent research talent shortages are still depicted as one of the biggest HR concerns (Mäkelä, Björkman & Ehrnrooth, 2010). This is the so called “war for talent”. A term coined in 1997 by McKinsey & Company (Collings & Mellahi, 2009). “In today’s competitive knowledge-based world, the caliber of a company’s talent increasingly determines success in the marketplace” (McKinsey & Company, 2001). However this is becoming increasingly difficult as there is a gap between supply and demand of talent (ibid). Although in the last years organisations were involved in restructuring processes and lay-offs, recently “the number of employees voluntarily quitting their jobs surpassed involuntary terminations and therefore it is important that talent management strategies are looked at again and if needed are revised (Bersin & Associates, 2010). Moreover organisations are not well prepared for this challenge (McKinsey & Company, 2001) and therefore it is important organisations stand out to future employees. The theory supporting this statement is the resource-based theory of the firm. This theory “emphasizes that organisations can develop unique resources and capabilities that provide the basis of an organisations profitability” (Griffin & Prakash, 2010). Profitability is something that in the present times is an important part of the overall strategy of an organisation.


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The last two last global trends have a lot in common. These trends are increased consumer empowerment and sustainable lifestyles, climate change and sustainable development (Philips Annual Report 2010). They will be all collected under the concept of social responsibility. This development tries to persuade that people and organisations, in their path of fulfilling their needs, think about future generations and their needs (Rondinelli & Berry, 2000). Nowadays an organisation needs to have great products and they “have to do the right thing on a number of activities” (Reputation institute, 2011). Employees look for ways to give their work more meaning. This interest can be supported by one of the conclusions from the research of Blom (2010). In her research at Philips she explored the expectations regarding leadership and career development of the employees that are in the talent pool of Philips. One of the conclusions is that employees that are in the developmental program for future leaders have the need to serve the community. This is in accordance with the research of Chiang (2010) as this study concludes that the motivation and performance of employees not only depends on rewards and compensation but also on the image of the organisation. This means that the more an organisation has an image of a responsible player in the community, the more employees are motivated to work for this organisation with a better performance in the end. Moreover American HPs tend to chose more and more an organisation based on the involvement of the organisation in the area of corporate social responsibility (Roza, 2009). Closer to the Benelux is the research from Gooderham, Nordhaug, Ringdal & Birkelund (2004) in which Norwegian business school students were surveyed to find out their job-related values which were more non materialistic than materialistic.

Multinational companies, like Philips, struggle with the war for talent and social responsibility. Is there a possibility to combine these two struggles? According to Griffin & Prakash (2010) corporate social responsibility is important in the process of innovation of organisations and consequently for the creation of a competitive advantage. Moreover corporate social responsibility can have a positive effect on corporate financial performance and on the sustainability of above average profitability (Lin et al, 2010). The new paradigm for business increased the intention of organisations to the implementation of the concept of corporate social responsibility in the corporate world (Greening & Turban, 2000; Evans & Davis, 2011). Moreover with the global war for talent there is an urge to listen to the needs of the employees. When it comes to corporate social responsibility there is not much known about what it is exactly what they want from a corporate social responsibility program, besides some general remarks as in the research of Blom (2010). The next step is to implement this program and evaluate it concerning


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what it adds to the development and the performance of employees, if that can even be possible.

How can CTM Benelux, with a global focus but with the headquarters in the Netherlands, combine talent management and social responsibility? The above explanation of the present situation results in the following research objective and central question.

1.3.Central Question How can corporate social responsibility be part of a talent management program for high potentials and what individual and programmatic determinants make a successful corporate social responsibility program for high potentials involved in a talent management program?

Sub questions1) Talent management for high potentials

a) What are the best practices in talent management for high potentials in general? b) Which practices are used, by CTM Benelux, in the program for talent management?

2) Social responsibilitya) How can corporate social responsibility be described? b) Which corporate social responsibility practices are used in talent management

programs?

3) Successful corporate social responsibility in talent management programs for high potentialsa) Which programmatic determinants are important for a successful corporate social

responsibility program for high potentials involved in a talent management program?

b) Which individual determinants are important for a successful corporate social responsibility program for high potentials involved in a talent management program?

The sub questions 1a, 2a, 2b will be answered in the literature review in chapter 2. The sub questions 1b, 3a, 3b will be answered in the empirical review in chapter 4.

1.4.Research objective The objective of this thesis is to explore the interests of HP concerning the implementation of a corporate social responsibility program in the talent management program. Moreover


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the question is what a successful corporate social responsibility program is. With a successful program is meant a program in which HPs are willing to participate.

To sum it up this thesis researches what the individual and programmatic determinants are of social responsibility. Then with this information, recommendations can be written of how Philips can design and implement a corporate social responsibility program for their HPs.

1.5.Relevance

1.5.1. Scientific relevanceThe focus of this thesis is on corporate social responsibility and the central question corresponding to this focus has both scientific and practical relevance. This thesis will contribute to existing research on what a successful corporate social responsibility program is, specifically focused on HPs. Moreover it will looks into the individualistic and programmatic determinants that are important for a successful corporate social responsibility program for HPs involved in a talent management program. Determinants of a corporate social responsibility program remain largely unexplored (Pajo & Lee, 2011). Most research on this topic has a broad focus, that is to say it focus lies not only on the employee but also on the assignment, job and organisation (Roza, 2009; Bowen, Burke, Little & Jacques, 2009). There is a lack of research in the analysis of the effects of corporate social responsibility on the individual level, which has implications on their behaviours (Evans & Davis, 2011). Compared to those research topics, this thesis will only focus on the employee, specifically the HP. This research will try to make clear what is important for HPs so they will participate in a corporate social responsibility program. This information and corresponding conclusions can be used for future research. For example to evaluate these programs and to find out if there are effects on development and performance of the employee and financial performance of the organisation.

1.5.2. Practical relevanceIn addition, this thesis is of practical relevance as well. Especially as it is a form as applied organisational research as it aims to make a contribution to a real-world situation by solving problems (Van der Velde, Jansen & Anderson 2004). Therefore the emphasis is mostly on the usability and practical relevance. What a successful corporate social responsibility program embedded in a talent management program for HPs is, is besides of scientific relevance, also of practical relevance. There is a lot of information about how employers can implement a corporate social responsibility program (Pajo & Lee, 2011) but it lacks information of what the HPs want from this kind of initiatives. Moreover there is a lack of information about the characteristics that are important for employees to participate in a corporate social responsibility program (Pajo & Lee, 2011). It is important


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for organisations to get insights in the needs and expectations of HPs of the implementation of corporate social responsibility in the talent management program for HPs. Organisations can use these insights to better shape the program. Especially as the individual decision of an employee to volunteer is complex (Pajo & Lee, 2011). It is very important for organisations to appeal to this young generation since the ‘war for talent’ will only intensify in the near future (Bontekoning, 2007). Thus, organisations need to differentiate themselves from competitors when recruiting new talent. By offering talent management programs that are adjusted to their expectations, organisations could positively contribute to their level of attractiveness as an employer. This is in accordance with the research of Chiang (2010) which concludes that corporate social responsibility is becoming increasing important in talent recruitment and even talent retention.

Another point of practical relevance is the economic crisis at this moment, and specifically the cost-cutting program of €800 million of Philips. The scope of the overhead cost reduction was first aimed at €500 million however in September the CEO of Philips, Frans van Houten, made public that an extra €300 million was needed for the cost reduction (Philips, 2011). Talent management as a part of human resources is seen as an overhead cost. Something that became immediately noticeable was that the HPDCs planned for October 2011 were cancelled. Besides the overhead cost reduction Philips has announced a loss of 4500 jobs, among them 1400 in the Netherlands as part of this plan. At the same time Philips wants to innovate in the area of human resources, which also means innovation in talent management. Innovation is important as the ‘War for Talent’ will become more important than before in these times of economic crises and the fright for a double dip. There is an opportunity for corporate social responsibility programs.

1.6.Thesis arrangementIn the first part of the thesis a brief description has been given of the organisation, Philips, and the problem indication has been presented. Together with a short introduction of the literature the central question, research objective, and the relevance of the research have been described. In chapter 2 there will be a more in depth presentation of the literature research on the main concepts. First, previous literature on talent management will be discussed. Next, the general concept of corporate social responsibility will be discussed, and furthermore the previous literature on this topic. Furthermore there will be a literature review of how to incorporate corporate social responsibility in talent management. Last, talent management and high potentials will be linked to the concept of social responsibility. We will look into how corporate social responsibility can be successfully become part of a talent management program for HPs. Chapter 3 will bring the empirical part of this research. Here the method for data collection and data analysis will be presented together


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with validity and reliability issues. In chapter 4 the results of the research will be reviewed. In this review the way CTM Benelux arranges its talent management will be discussed. Furthermore, it will bring an analysis of the individual and programmatic determinants that are important for a successful corporate social responsibility program for high potentials involved in a talent management program. In the following chapter, chapter 5, these results will be analyzed and discussed. Finally, chapter 6 will give practical recommendations for Philips.


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2. Theoretical framework

As stated in the previous chapter, central in this thesis is the question whether and how attention can and should be paid to corporate social responsibility in talent management programs for HPs and what potential individual and programmatic determinants are there that make a successful corporate social responsibility program.

In this chapter the main concepts will be described, researched and discussed. First the concept of talent management for HPs will be reviewed according to the best practices in general. The sub question that will be answered here is: “What are the best practices in talent management for high potentials in general?”

Second, the concept of corporate social responsibility will be discussed in paragraph 2. This will be done by a description of corporate social responsibility and following on that, manners how to incorporate corporate social responsibility in talent management. The sub questions corresponding to this are: “How can corporate social responsibility be described?” and “Which corporate social responsibility practices are used in talent management programs?” In this part will also be discussed what can be seen as a successful corporate social responsibility program for HPs involved in a talent management program. We will discuss both the individual determinants that are important for a successful corporate social responsibility program and the programmatic determinants that are important for a successful corporate social responsibility program.

2.1.Talent Management for high potentialsThe way organisations fill in their talent management is divers (Mäkelä, Björkman & Ehrnrooth, 2010). As already mentioned in the introduction the thing most organisations have in common is that talent management is focused on “a specified pool or pools of managers who are seen as potential executive talent” (Stahl et al.,2007). This paragraph will start with a clarification of the concept of talent management, although this will be challenging.

Not only is there no consensus in organisations concerning talent management, the same goes for science. There is no “clarity regarding the definition, scope and overall goals of talent management” (Lewis & Heckman, 2006: 139). According to the review of Lewis & Heckman (2006) there are three streams of talent management:


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1. Authors (Byham, 2001; Heinen & O’Neill, 2004; Olsen, 2000) that renew the traditional human resources by talent management. The difference is that the practices have to be done faster or across the whole organisation. Therefore there is no real difference between the traditional human resources and the so called talent management, which implicates they fail in making advancement compared to the traditional human resources.

2. Authors (Kesler, 2002; Pascal, 2004) that focus on the concept of talent pools. For them talent management is only “an adequate flow of employees into jobs throughout the organisation”. As it resembles both succession and workforce planning, there is almost no improvement compared to succession and workforce planning. The only small improvement is that it sometimes works together with other departments as the recruitment department.

3. Authors that have no concern for organisational boundaries or specific positions. This stream can be divided in authors that see talent as an unqualified good or as an undifferentiated good. The first stream is in favour of managing people by performance and differentiating on performance (Axelrod, Handfield-Jones & Michaels, 2002; Smart, 2005, as cited in Beechler & Woodward, 2009, 274). The second, softer, stream prefers to manage everyone to high performance, not only the high performing employees (Walker & Larocco, 2002).

It is clear from the description above of the different streams there is no consensus in the literature. However for the purpose of this research it has to be clear what talent management exactly is. If we split the concept up into talent and management it will be easier to come to a definition of talent management. Talent is not imitable (Lewis & Heckman, 2006) and is specific to an organisation as it depends on the employees. It depends on their skills, knowledge and abilities which will be developed over time and depends on the culture, social networks, and on the organisational or management structure (Barney, 1995 in Lewis & Heckman, 2006). The definition of management is “a process of strategy making: of forming and, if the firm survives, of re-forming its strategy over time” (Boxall & Purcell, 2003). Management is linked to strategy as the first goal of an organisation is to survive. Therefore business leaders need to become aware of the fact that talent management can open strategic opportunities instead of being part of the strategic decisions (Lewis & Heckman, 2006). A talent management program is not only a process of formal learning of knowledge, skills and abilities but also “includes informal and experiential modes of human capital formation” (Beardwell & Claydon, 2007). The informal and experiential part of a talent management program is hard to identify and measure as it


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is not registered. The formal learning part is easier to identify and consists of practices as management training.

The definition of talent management that will be used in this thesis is the following:

“Activities and processes that involve the systematic identification of key positions which differentially contribute to the organisations sustainable competitive advantage, the development of a talent pool of high potential and high performing incumbents to fill these roles, and the development of a differentiated human resource architecture to facilitate filling these positions with competent incumbents and to ensure their continued commitment to the organisation” (Collings & Mellahi, 2009).

If we look back at the three streams defined by Lewis & Heckman (2006), the definition from Collings & Mellahi (2009) resembles a combination of the second and third stream. While Lewis & Heckman (2006) chose to see this as two different streams, Collings & Mellahi (2009) see it as one. In this thesis the preference is to combine these two together as the overall thought is that these combinations make a stronger strategy concerning talent management which will hopefully help the overall aim of an organisation, which is to be vital.

As it is clear what talent management is, by have given a definition of the concept, it is important to review the best practices in talent management for high potentials in general to go more in depth in this concept so than further on it will be easier to try to fit in corporate social responsibility in talent management.

2.1.1. What are the best practices in talent management for high potentials in general?

According to the definition of talent management from Collings & Mellahi (2009) we can differentiate between three parts of where we can divide the best practices of talent management in, namely:

1. Identifying central talent positions;2. Developing a talent pool;3. Creating a differentiated HR architecture.

The three part division of best practices makes clear that it is composed of the second and third stream according to the differentiation of Lewis & Heckman (2006). It can even been seen that the first stream according to Lewis & Heckman, the traditional human resources but then put into a new form, is also present in this division. The question is why Lewis & Heckman (2006) make a strict differentiation, while Collings & Mellahi (2009) depict it as a


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circular division. That is to say they are connected. For this thesis it is clear that the choice is for the circular division as this is where an organisation should strive for in order to be vital and furthermore create a competitive advantage compared to their competitors.

The first category of best practices is identifying central talent positions instead of identifying the talents, something which is opposed to what most literature states. According to Collings & Mellahi (2009) organisations should not focus on identifying the “A performers” (Stahl et al.,2007) but focus on the “A positions”. Huselid, Beatty & Becker (2005) describe “A positions” as “its disproportionate importance to a company’s ability to execute some part of its strategy and the wide variability in the quality of the work displayed among the employees in the position.” These positions can be seen as the core positions of an organisation. It is important for a company’s strategy to place the “very best employees in the strategic positions, good performers in support positions, and eliminating nonperforming employees and jobs that don’t add value” (Huselid, Beatty & Becker, 2005). These so called “A performances” or HPs should not be placed everywhere in the organisations as they are expensive and to create a competitive advantage it is not needed to have them in every positions in the organisations but in the strategic positions in the organisation to create this competitive advantage. However to work according to identifying central talent positions it is important that the organisation knows and understand which jobs contribute to the strategy of the organisation.

Next is the group of best practices that fall under developing a talent pool. After the central talent positions have been identified it is important to fill these positions. For talent management this means filling the strategic positions with HPs. This is sometimes referred to as succession planning (Collings & Mellahi, 2009: 305). Organisations hire HPs and develop them with the possibility to fill in a key strategic position when it becomes vacant. A central point is that the HPs are not developed for one particular role, but they can be “developed with broader competencies which would fit a range of roles” (Cappelli, 2008, as cited in Collings & Mellahi, 2009, 308). Instead of being a talent buyer, organisations have to become a talent builder. This is especially important for multinational organisations, as those organisations are complex and big. To understand such an organisation you have to work for this organisation for a longer time to get the general knowledge of how the organisation works. If an organisation buys the talent for a strategic position, this HP cannot operate on the level it is supposed to be until it understands how the organisation operates in their business. However according to research from Rao & Drazin (2002) newer organisations recruit their HPs via competitors, whom will bring their knowledge, abilities and skills from the other organisation. The possibility is that this new organisation will look more similar or will operate in the same market as from where they have recruited their


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HPs. This will most probably not be the way multinational organisations recruit their HPs, but it could be a way how they will lose their HPs.

The last group of best practices is creating a differentiated HR architecture. According to the review of Delery & Shaw (2001) divers research concludes that if an organisation has different employee groups they should have a differentiated HR architecture. A recent contribution of Lepak & Snell (2002) differentiates between four differentiators; these so called 4 quadrants are depicted in figure 1.

Figure 1: Human capital characteristics and employment modes (Lepak & Snell, 1999)

High

Quadrant 4: Alliances/ Partnerships

Collaborative-Based HR Configuration

Quadrant 1:Knowledge-Based

Employment

Commitment-Based HR Configuration

Uniqueness

Low

Quadrant 3:Contractual Work

Arrangements

Compliance-Based HR Configuration

Quadrant 2:Job-Based Employment

Productivity-Based HR Configuration

Low HighStrategic Value

The first quadrant is knowledge-based employment. Employees in this quadrant are of high strategic value and are high in uniqueness. They will contribute to the strategic objectives of the organisation and have a big pool of knowledge. The focus of these organisations lies on “internal development and long-term employee commitment for their core employees” (Lepak & Snell, 1999). Development refers to training, education and other ways in which skills can be enhanced.

The job-based employment is the next quadrant. These employees are of high strategic value but contrary to the first quadrant they are low in uniqueness. They will not manage to create a competitive advantage for the organisation compared to other organisations. Therefore can these employees add something to the organisation but their skills are


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widely transferable (Lepak & Snell, 2002). Compared to quadrant one these employees are recruited instead of internally developed.

The third quadrant is contract work. This human capital is neither of strategic value for the organisation nor is it unique. These jobs will be most likely outsourced or the organisation will chose to seek “short-term contractual arrangements for the performance of tasks with limited scope, purpose, or duration” (Lupak & Snell, 2002). When organisations want to cut down in costs, these jobs are the first in line to be outsourced when they are still arranged internally.

Alliances and partnerships is the last quadrant according to Lepak & Snell (1999). These employees are of low strategic value to the organisation but there are highly unique. In these situations external workers provide the organisation with unique knowledge that is not in the organisation (Sharma, 1997). By doing this the organisation saves “costs of internal employment while gaining the ability to maintain an ongoing relationship that is necessary for application of unique and specialized skills (Lupak & Snell, 2002).

HPs can be labelled as quadrant 1; they are knowledge based employees with a high strategic value and they are highly unique. This is as well concluded by McDonnell, Lamare, Gunnigle, & Lavelle (2010). The commitment-based HR system should focus on building the motivation, commitment and development of the HPs internally. Furthermore the employment relationship should be a mutual long-term investment from the employers and the employees in developing critical skills that are specific for the organisation (Lepak & Snell, 1999). If employees can take part in the decision making of an organisation this leads to exceptional performance (Lawler, Mohrman, & Ledford, 1995, as cited in Lepak & Snell, 1999, 37). This can all be accomplished by a commitment-based HR system, which should nurture employee involvement and maximizes the firms’ return on human capital investments. Internal development will, in the end, enhance the employees with knowledge that is specific to the organisation and it will nurture a relationship between employers and employees and the organisation and the employees. This will hopefully create a stronger relationship between the HP and the organisation; hence will make the chance of the HP leaving the organisation smaller.

To provide the HR architecture depicted in quadrant one in figure one, or only one HR architecture in general, across the whole organisation, could mean that it creates all kind of disadvantages as the costs for achieving high productivity in the non-core area is likely to be equal or greater than the benefits it produces (Delery & Shaw, 2001). However Collings & Mellahi (2009) advocate “a contingency approach and argue that the key is to deploy HR practices that are appropriate to the context of the organisation”. This is in


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accordance with Boxall & Purcell (2003). They are advocates of the best-fit approach compared to the best-practices approach as HR practices are influenced by context, for example economic and socio-political factors. In the research of Stahl et al. (2007) it concludes something similar, namely that competitive advantage can best be generated “from the proper internal alignment of various elements of an organisations talent management system, as well as their embeddedness in the value system of the organisation, their links to business strategy, and their global coordination. Compared to the approach of Collings & Mellahi (2009), Stahl et al. (2007) focus more on both the internal and external context of an organisation compared to Collings & Mellahi that focus mostly on the external context an organisation operates in.

As there is no consensus concerning the definition of talent management, there is also no consensus concerning which practices should be used for talent management. According to Lew & Heckman (2006) more research is needed to identify which practices can best be used, and moreover the impacts of the practices on the other practices. According to Derr (1987: 73) the best approach to talent management “involves deciding on future organisational needs, discovering what mix of people is needed for success, knowing how to select candidates, and knowing what to offer them to ensure and motivate service to the company throughout their career”. Opposite from Lew & Hackman is Stahl et al. (2007) which concludes that talent management should encompass recruitment, staffing and succession planning; training and development; retention management. While McDonnell et al. (2010) formulate it more as an umbrella concept, namely global talent management, which could encompasses formal succession planning, a formal development program and performance management. Their reason behind this is that it could otherwise “lead to a silo mentality which subsidiaries working too much towards their own agendas rather than that of the parent company”. Silos can here be seen as the national policy of the different locations of a multinational. The research of Stahl et al. (2007) supports global talent management as it concludes that talent management from multinationals becomes more similar. Therefore it agrees with using the umbrella concept and putting it into practice.

According to the research of Stahl et al. (2007), the best practices focus around recruitment, staffing and succession planning; training and development; retention management. The first two best practices correspond with the three parts of best practices according to Collings & Mellahi (2009). Recruitment, staffing and succession planning are about identifying central talent positions, and training and development are about developing a talent pool. However the last of best practices according to Stahl et al. (2007), retention management, does not corresponds to the best practices according to Collings & Mellahi (2009).


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Recruitment, staffing and succession planning is about hiring the people and assess those employees to find out if they have the right characteristics, skills, abilities, knowledge, values, attitudes or personality traits to be classified as a HP in the organisation. Furthermore it is about finding out which positions in the organisation are the A positions and when is there a need for a new HP to be trained to fill this position when it becomes vacant. The second group of best practices, Training and development, concerns formal training, either online or in a classroom setting. In the case of classroom learning this can happen in-house or by an international business school. More and more research shows that the effects of formal learning are smaller than informal learning. However organisations have a difficulty making the switch from formal to informal learning as can be seen in the trainings of many different organisations. Retention management, the last group of best practices is about the retention of the HPs when they are hired. In figure 2 there is a synopsis of talent management best practices according to Stahl et al. (2007). The difference between general human resource management best practices and talent management best practices is that in the former the practices are focused on all employees while in the latter the practices are focused on a specific group of employees, namely HPs.

Figure 2: Synopsis of Talent Management Best Practices (Stahl et al., 2007)

Recruitment &

staffing

Talent pool strategy rather than hiring for specific positionsClose relationships with leading business schools and universities

Highly selective hiringCompelling “employee value proposition” and strong emphasis on global brandingFocus on values and cultural fit, not just job-related skills and experienceContinuous assessment of both performance and potential, using multiple inputsGrading against competency profile of successful leadersUse of talent inventories for selection and succession purposesDifferent talent pools with different career paths

Training &development

Leadership development is top priority and deeply ingrained in culturePromotion-from-within policyContinuous assessment of training needs and feedback (360-degree reviews)Individual development plans linked to succession planning processJob rotations and international transfers as career development toolsLine manager involvement (coaching, mentoring, job shadowing, etc.)Use of open job posting system and internal talent marketplaces

Retentionmanagement

Continuous monitoring of attrition rates by performance levelHighly competitive compensation, particularly long-term wealth accumulationPersonalized career plans and broadening assignmentsSenior management attentionFlexible working arrangements and other work-life balance practicesDiversity programs designed to develop, retain, and promote diverse


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talent

These are all examples of which the different groups of best practices encompass. The success of an organisation in attracting talents “depends on the integration” of the talent management practices (Bersin & Associates, 2010). However not all of these separate best practices can be and should be integrated in the talent management program of an organisation. First of all as besides best practices, it is important to not forget the best fit. Most organisations are different from one another and therefore the way they arrange their talent management should also be different. Moreover the practices have to be connected to be efficient (Bersin & Associates, 2010). Besides that organisations that are multinationals have employees in many different countries or hire employees from many different countries. When applying these practices, research shows that the practices and priorities differ across countries (Mabey, 2004). Secondly, in the end it is most important that an organisation survives, therefore profit is and will be the most important part of where the strategy and consequently talent management is based upon. In chapter 4 the practices used by CTM Benelux will be analyzed and ordered according to figure 1. Before making the connection between the scientific and practical side of talent management it is of essence for this research to first look more into social responsibility, which will be introduced in the next paragraph. It is important to note that, in accordance with figure 1, McKinsey & Company (2001) concluded that leading organisations in the war for talent give their HPs job opportunities that excite and challenge them. One of these job opportunities could be social responsibility.

2.2.Corporate social responsibilityIn recent years corporate social responsibility has received increasing attention and popularity as it is an important instrument in the economic globalization (Gjølberg, 2010), and it is not only in organisations but also in science. Organisations deal with very different forms of social responsibility. The question is what corporate social responsibility is and what not corporate social responsibility is. This question will be answered in the first part of this paragraph supported by the sub question “How can corporate social responsibility be described?” In the second part we will try to make the connection between the previous paragraph about talent management and this paragraph by asking “Which corporate social responsibility practices are used in talent management programs?” As there is a lack in the literature to answer this question specifically we used general literature of corporate social responsibility practices. However as said in paragraph 2.1.1., it is important that different employee groups should have differentiated HR architectures. As of the economic crisis at this moment and consequently the cut backs of organisations it can be reasoned that corporate social responsibility practices are only used for HPs.


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2.2.1. How can corporate social responsibility be described?The traditional manner for organisations to be involved in corporate social responsibility activities was to offer good labour conditions to their employees and their families. In the introduction of this thesis the example of Gerard and Anton Philips has been named before as “they realized housing, sporting and cultural activities for their employees. They also set up schools to ensure basis education for the children of Philips employees” (EcoVision5, 2010:8). It can therefore be said that corporate social responsibility started with labour conditions and human rights, which later on was elaborated to environmental conditions (Logdson & Wood, 2005). Another movement is philanthropy or unilateral acts, which means donating money to a good cause. However in the present time of more competition and downfall of the stock exchange, organisations are less interested in this form of social responsibility. In the United States philanthropy dropped between 1987 and 2002 by 50% (Porter & Kramer, 2002). They rather want to combine it with their employees working voluntarily for nongovernmental organisations (Bowen, Burke, Little & Jacques, 2009) as organisations more and more understand that this will benefit the own organisation as well individual skills of employees.

Corporate social responsibility is not the only word to describe the concept of a responsibility of organisations to contribute to the society on a voluntary base (Gjølberg, 2010), especially after it got more and more attention from scientists, practitioners and society. Not only corporate social responsibility is a concept which is used, also business citizenship (Wood & Logsdon, 2001), corporate citizenship (Roza, 2009; Lin et al, 2010), corporate social performance (Greening & Turban, 2000; Chiang, 2010), corporate community involvement (Van der Voort, Glac & Meijs, 2009), employee volunteering (Bowen, Burke, Little & Jacques, 2009) and social responsibility (Kraft, 1991). All these concepts are used intertwined (Roza, 2009), and there is confusion about the definition (Dahlsrud, 2008). In some cases they are used as synonyms, as the description of the concept is the same. In some research scientists have decided to not give a description at all (Gjølberg, 2010). According to Campbell (2007, as cited in Van der Voort, Glac & Meijs, 2009, 312): “socially responsible corporate behaviours may mean different things in different places to different people and at different times.” For example the focus can be on sustainability, more specifically the way organisations make products, or the focus can be on people, more specifically helping the community. Moreover it differentiates between the different sectors, contexts, and geographies (Griffin & Prakash, 2010).

Wood & Logsdon (2001) have tried to make a distinction between some of the concepts named above. First of all they describe a difference between corporate social responsibility,


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which is a broad defined concept, and corporate citizenship, which is a narrow defined concept (ibid). As nowadays the concept of corporate social responsibility is replaced by corporate citizenship (ibid), it is of use to have a closer look at the most important distinction between the two concepts, which are depicted in figure 3.

Figure 3: Comparison of corporate social responsibility with corporate citizenship (Wood & Logsdon, 2001)

Corporate social responsibility Corporate citizenshipHard to operationalize, measure and evaluate.

Limited and specific, easier to measure.

Obligatory and voluntary (through tax payment and law abidance as well as discretionary problem solving activities).

Largely voluntary, often with a corporate strategic focus (i.e. use corporate resources to help the community and the organisation as well).

Broad concern for many issues and stakeholders, and for society at large.

Narrow focus on local community and charity.

Self-interest benefits are possible and acceptable, but not assumed and are not primary in any case; ethical and legal concerns take precedence.

Self-interest are desirable and perhaps essential to serve as incentives for behaviour that benefits local communities.

It is threatening to popular neo-classical economic theories of capitalism.

It is reassuring: speaks to ‘constrained liberalism’ and ‘compassionate conservatism’.

The trend in research is that corporate social responsibility is replaced by corporate citizenship, however is this a valid and/ or sensible transition? On one side it looks as if the definitions of both concepts are quite different. On the other side, with all the confusion around the concepts and definitions of social responsibility, figure 3 is a first step in the direction of clearing up this confusion. In research it is important that you provide operational definitions of concepts in order to formulate the hypothesis (Van der Velde, Jansen & Anderson, 2007). Corporate citizenship provides a clearer definition compared to corporate social responsibility. However it is still not enough of an operationalization of the concept. Moreover Wood & Logsdon (2001) emphasize that it is important that in this particular case of transition from one concept to another “the content of social responsibility should not be lost” (Wood & Logsdon, 2001: 83) therefore they introduce the concept of “business citizen” (Wood & Logsdon, 2001: 86). The question arises ‘What is the definition of corporate social responsibility according to this research?’ The definition of the concept business citizen is an organisation that operates as a responsible local actor but is also consistent on a global level (Wood & Logsdon, 2001) via “volunteer services performed by employees who are in some way encouraged and supported by employers in the form of formal and informal policies and programs” (2005, as cited in Van der Voort, Glac & Meijs, 2009, 313). Therefore the “emphasis is on the organisation’s rights and


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societies within and across national and/ or cultural borders” (Wood & Logsdon, 2001: 87). However as the employee performs these activities the focus of this research is on the employees. The activities of corporate social responsibility can be divided in four general categories, namely the workplace, the marketplace, the community, and the environment (Soares, Marquis & Lee, 2011). This definition will be used for the concept of social responsibility. We will not change from using corporate social responsibility to business citizen as earlier on in this paragraph it has been already said that the different concepts often have the same definition and content.

By providing the definition of corporate social responsibility it is of essence for the completeness of this research to make the variable more concrete and give an explanation of the reason behind the decision for this specific variable and definition. The latter is of practical reasons as it fits with the definition that is of importance for Philips. The former is harder to explain and therefore will be explained in the next paragraph in which the relationship between corporate social responsibility and talent management, i.e. the two main concepts in this research, will be discussed.

2.2.2. Which corporate social responsibility practices are used in talent management programs?

Before answering the above question it is important to know and understand the most important goal of an organisation, which is to survive, to be vital and to make profit (Chiang, 2010). Is this all possible if corporate social responsibility will be embedded in talent management programs? Some managers will most definitely say that it is not possible. They argue that organisational effectiveness is most important. Moreover economists argue that organisations should only think about maximize shareholder value instead of concerning about externalities (Scherer & Palazzo, 2011). Friedman (1970) even says that the only “social responsibility of business is to increase profits”. Porter & Kramer (2011) have a different view on this as they conclude that making profit does not have to be the purpose of an organisation but it should be creating shared value. Shared value has a lot in common with corporate social responsibility as it “focuses on the connections between societal and economic progress” as an organisation needs a demand for its products and therefore also a successful community (Porter & Kramer, 2011). Much research has been done to find out the relationship between corporate social responsibility and profitability, unfortunately with conflicting results (Aupperle et al, 1985, as cited in Kraft, 1991). However Lin et al (2010) argue that corporate social responsibility can inflict a growth in sales. An example is that “the 100 companies pronounced the Best Corporate Citizens in the Business Ethics’ list were proven to be more profitable than all other corporations in the S&P 500 Index” (Clark, 2006, as cited in Chiang, 2010, 4). The S&P is


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de stock exchange in the United States which includes 500 leading companies in leading industries of the U.S. economy (Standard & Poor’s, 2011). How is it possible that corporate social responsibility programs can influence growth in sales? According to Chiang (2010) it could be that costs concerning recruitment, training, and replacement of the workforce be reduced by embedding corporate social responsibility in talent management programs. Following on this it is interesting to find out if and how corporate social responsibility can then be embedded in talent management programs.

Another question has to be answered before answering the above question, which is if it is only possible if corporate social responsibility is embedded in talent management programs or can it also be beneficial if other employees get involved in these programs? Although this is not the scope of the research an answer to this last question can be provided by something written in paragraph 2.1. According to Collings & Mellahi (2009) it is important to create a differentiated HR architecture; therefore it can be that opening up the corporate social responsibility programs to all employees would not be beneficial.

If we recall figure 3 there are some prerequisites concerning corporate social responsibility before it can be embedded into talent management programs. First of all it is important that it is largely voluntary, moreover this has often a strategic focus. This means that it is important that these activities are tied to the core objectives of an organisation to get organisational support (Van der Voort, Glac & Meijs, 2009; Chiang, 2010). Furthermore this strategic focus is important so that it helps achieve the desired goals of an organisation; most importantly profit increases (Lantos, 2002). Furthermore the voluntary part has to do with that it exceeds the requirements by law for the organisation (Lin et al, 2010). Secondly it is important that the focus is on local community and charity. Some organisations modify their programs according to “local needs and conditions in different business locations” (Chiang, 2010; 16). However according to Van der Voort, Glac & Meijs (2009) this is less beneficial to attract employees as it attracts a small proportion of the employees. Last, to make the most benefits it is important that the employees do it out of self-interest. Besides that, they have to be committed to the program (Bowen, Burke, Little & Jacques, 2009). This can be best achieved if they will do something that is different from the task they do normally at work and if they themselves are able to choose the activity or charity (Cunningham, 2004). Therefore the organisation has a significant big role here to facilitate this efficiently and effectively.

Bowen, Burke, Little & Jacques (2009) have created an eight step plan for setting up a corporate social responsibility program, which is depicted in figure 4. Chiang (2010) recommends using the Point of Light Institute’s Four Easy Steps, however these steps will


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not be used in this research as it is less concrete and elaborate. However in essence it has the same steps as the eight steps of Bowen, Burke, Little & Jacques (2009).

Figure 4: Creating a social responsibility program: Eight Steps (Bowen, Burke, Little & Jacques, 2009)

1 Assess employees’ interests and community needs (survey employees to find out more about their volunteer experiences and specific volunteer interest with a view to matching them to community needs).

2 Identify business priorities and strategic goals that the program can meet (ensure that the program reflects the culture and values of the company).

3 Secure top management support and identify senior managers to champion the program while participating in volunteer activities.

4 Develop program policies and a program structure (encourage participation from all level of employees and consider setting up an employee steering committee to determine the focus of the program). This step concerns about the content of the program.

5 Align volunteering with financial contributions and in-kind support (consider social responsibility activities that support the same nonprofit organisations that receive monetary donations from the company).

6 Assess the outcomes of the program (develop mechanisms to track employee participation and satisfaction, and to evaluate the overall program).

7 Develop systems to reward and recognize employee volunteers (they may be awarded certificates, plaques, or extra vacation time).

8 Publicize the program and its results, both internally and externally (e.g., through newsletters, news releases, and articles featuring volunteers).

In the first step it is important to find out what the interests are of the employees. In the end they are the one participating in these programs and it is important that they are motivated so that the best end result can be reached. When looking at the programs there can be made a division between employer-supported volunteering, the employee is in charge of these activities in their own time and without monetary rewards, and employer-guided volunteering, the employer is in charge of the activities whereby the activities can be done during work hours (Chiang, 2010). The latter is mostly chosen by organisations as then they can couple the activities with the strategic goals of the organisation (Chiang, 2010; Peloza, Hudson & Hassay, 2009), which is important for the viability of an organisation. Nonetheless is should be specifically noted that the volunteer, in this case the HP, should be the one that chooses the specific organisation or task in the organisation as this should result in a better and positive end result (Houle, Sagarin, & Kaplan, 2005). This was also the outcome of an experiment performed by Moller, Deci & Ryan (2006) as it showed that when people could make their own decision instead of a decision that was made by another person, the person in the first case would not suffer from a temporary reduction in the willingness to engage in volitional action compared to a person in the later


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situation. Volitional action is for example “controlling the environment, controlling oneself, making choices, and initiating action” (Moller, Deci & Ryan, 2006: 1024).

The next step is making the connection between the interests of employees and community needs with not only the strategic goals of the organisation but also the culture and values of the organisation. It has to adopt a long-term, partnership focus (Porter & Kramer, 2002). A bit contrary are the findings from the research of Peloza & Hassay (2006) which concluded that there is no need for a strong link between the cause, the focus of the corporate social responsibility program, and the organisation as was shown by their own research.

The third step, support of top management, includes one of the stakeholders of an organisation. This is first of all of importance as it brings firms benefits as a more whole organisation (Sison, 2011). However by doing this it engages other stakeholders, e.g. shareholders, employees, customers (Chiang, 2010). Hereby it must be noted that there should not be too much pressure from the organisation or top management on the employees to participate as it is important that employees do it on a voluntary base.

Besides, as in step four described, developing the program with people from inside the organisation it is beneficial to work with people from outside, e.g. community representatives, as they know best the needs of the community (Chiang, 2010). According to Bowen, Burke, Little & Jacques (2009) it is essential that different institutions, e.g. (non-profit) organisations and cities, work together so that there is a long lasting effect of the specific corporate social responsibility program concerning. While Bowen, Burke, Little & Jacques (2009) focus on all employees, this research only focus on the participation of HPs in a corporate social responsibility program. Therefore we will change encouragement of participation from all level of employees to encouragement of participation from all different sectors and functions of an organisation where HPs are located in. With these employees, the HPs could then be set up a steering committee. By doing this the organisation gives more responsibility to the HPs, which can motivate them more and in the end this will result in a better performance and end result.

The last four steps for creating a corporate social responsibility program go too much in depth and specifically for the scope of this research as has been written in chapter one. Therefore they are only listed in figure 4 for completeness of the information. From the above elaboration can be noted that it does not make concrete how a corporate social responsibility program should look like. The advantage is that this is an opportunity to add something to the present literature on this subject. The disadvantage is that there is little support from the literature. This has to do with what has been written before in this


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research about the debate between best- fit approach and best-practice approach. Boxall & Purcell (2003) are advocates of the best-fit approach compared to the best-practices approach. Best practices are important as they can give an idea of what could work, however it is important to not forget the best fit. Most organisations are different from one another and therefore the way they arrange their talent management and corporate social responsibility programs should also be different. This is in accordance with Van Marrewijk (2003) as this research concludes that for every individual organisation there has to be a context specific strategy for social responsibility. Secondly, in the end it is most important that an organisation survives, therefore profit is and will be the most important part of where the strategy and consequently talent management is based upon. According to Peloza, Hudson & Hassay (2009) it is important that the program is directed by the organisation so there is a strategic fit and consequently the outcomes of the program will be more effective. However figure 4 gives guidelines how to create a corporate social responsibility program with the end goal of being a successful program.

To make it more concrete what are important determinants of a corporate social responsibility program Roza (2009) uses a few independent programmatic variables that can be of importance, these are cognitive aspects, direct service, time spend, social theme, guidance during the project and guidance of the non-profit. Unfortunately all variables except both variables concerning guidance are not based on literature. Moreover it is not indicated why these variables are used. Although the job diagnostic survey on first side does not look to link to this research, it can be linked as the job dimensions have a lot in common with the independent variables of the research of Roza (2009). The job dimensions are skill variety, task identity, task significance, autonomy and feedback (Hackman & Oldham, 1975). These dimensions are defined as followed: skill variety is the diversity in the different activities when performing the task; task identity is whether the employee is involved in the task from beginning to end with a noticeable end result; task significance is the degree to which the task has a substantial impact on others; autonomy refers to the possibility of the employee to determine when and how to do the task; job feedback is the extent to which the employee obtains information about the performance of the task (Hackman & Oldham, 1975; Schroer & Hertel, 2009). The survey diagnoses existing jobs that could be redesigned and also to evaluate the redesign of a job (Hackman & Oldham, 1975). Even though in most organisations there are hardly any corporate social responsibility programs, the dimensions of the survey can be used for this research. Therefore it can be argued that the job dimensions are important for a corporate social responsibility program, specifically they are important programmatic determinants as it can be used to evaluate a redesigned job. The first three job dimensions (skill variety, task


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identity and task significance) give meaning to the job when the employee is performing it (Hackman & Oldham, 1975) and specifically skill variety has a great impact. In a study into the motives of contributing to the German Wikipedia, researchers found that autonomy, skill variety, task significance and feedback were highly influential in whether or not a volunteer would contribute (Schroer & Hertel, 2009). According to the research of Peloza, Hudson & Hassay (2009) it seems that employees are in need of learning something different from their normal job activities. Moreover this research also showed that “providing time off to perform volunteer duties does not have a positive effect on participation” (Peloza, Hudson & Hassay, 2009: 383).

With the above elaboration there is not brought forward a specific corporate social responsibility program, however what has been provided are programmatic determinants that are important in the decision making process of employees when deciding whether or not to participate in a corporate social responsibility program. This is of importance as this research wants to investigate what a successful corporate social responsibility program is, more concrete if HPs would participate in a corporate social responsibility program.

Hypothesis 1: The presence of all job dimensions (skill variety, task identity, task significance, autonomy and feedback) will lead to higher willingness of High Potentials involved in a talent management program to participate in a corporate social responsibility program.

Outlining the programmatic determinants is important. However the question arises if employees are actually interested in becoming involved in corporate social responsibility programs? According to research from TNS Infratest (2007 as cited in Mojza, Sonnentag & Bornemann, 2011, 123) “every third European spends one or more evenings per week engaging in unpaid activities in which he or she helps another person, group, or cause”. Therefore it might be of added value to investigate if there are any individual determinants of influence to a successful corporate social responsibility program.

Peloza & Hassay (2006) researched in their explorative study what the motives are of employees that become involved in a corporate social responsibility program which is advocated by the employer. The decision that is made by the employee to participate in these programs is a complex one that consists of individual motivations and perceived benefits (Peloza, Hudson & Hassay, 2009). These motives can be categorized into three categories (Peloza & Hassay, 2006):

1) Egoistic motives; the reason to participate is that employees expect to gain something for themselves as skills or getting a better profile in the organisation.


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2) Charity motives (charitable support behaviour); the reason to participate is that employees want to help the charity.

3) Organisational citizenship motives; the reason to participate is that employees want to help their organisation or assist their colleagues without any reward from the organisation. This behaviour is called organisational citizenship behaviour (OCB). OCB is considered as extra-role behaviour, which means employees that do more than what is expected from them for the benefit of the organisation or others in the organisation (Lin et al, 2010). Therefore the literature around OCB has a lot in common with social responsibility, moreover corporate social responsibility can be seen as a form of OCB. However it is important to note that corporate social responsibility “is a unique phenomenon because the efforts of the employee have benefits that extend beyond the firm to a charitable organisation and to its beneficiaries” (Peloza & Hassay, 2006: 358).

In a subsequent study of Peloza & Hassay (Peloza, Hudson & Hassay, 2009) the findings suggested that egoistic and organisational citizenship motives will most likely lead to a successful corporate social responsibility program, while charity motives were not significant. The reason behind this can lie in the fact that the charity was not chosen by the employee itself. Therefore it could be that if the employee would chose the charity there would be a different outcome. Another explanation could be that OCB is as well unselfishly, in the way it is viewed when you show this behaviour, as self-serving, the personal motivation to act in this way (Bolino, 1999). Pajo & Lee (2011) did a similar research as it explored the underlying reason of employees to participate in a corporate social responsibility program. Interesting to note is that one of their conclusions is that employees are motivated by “the opportunity to express altruistic values through the giving of meaningful service to others” (Pajo & Lee, 2011: 480). This is even more interesting as it resembles one of the conclusions of Blom (2010) that HPs want to give something back to the community.

If we look more closely at OCB we can differentiate between five different dimensions, namely conscientiousness, altruism, sportsmanship, courtesy, and civic virtue (Lin et al, 2010). Conscientiousness goes beyond the required minimum of internal maintenance such as attendance and punctuality (Organ, 1991). Altruism is helping another employee in an organisational or work related context (Organ, 1997). If an employee tolerates “the inevitable inconveniences and impositions of work without whining and grievances” (Organ, 1991: 110) this is seen as sportsmanship. Courtesy is when an employee helps out another employee to prevent a problem (Organ, 1991). In some research altruism and courtesy are a combined concept under the name of helping (Podsakoff & MacKenzie, 1994; Organ, 1997) as empirical research has not been able to get a “consistent loading of


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the intended items on factors” (Organ, 1997: 94). When an employee is involved in the process of an organisation, such as reading emails and attending meetings, this is civic virtue (Lin et al, 2010; Organ, 1991). Research confirms (Organ, 1988, as cited in Organ, 1991, 110) “that OCB is where we must look for the effects of dissatisfaction. Another research concluded that employees that were motivated and had a high rating on organisational identification, reported more OCB (Wegge, Van Dick, Fisher, Wecking, & Moltzen, 2006). However if the corporate social responsibility program, for example has high costs, it could be seen by employees as competing on resources and consequently the OCBs of employees may be discouraged (Lin et al, 2010). Resource allocation is about the distribution of resources, which can be money, time, human, etc. (Lin et al, 2010). These resources are scares and “have limited capacity, which means that multiple demands must compete for the same units of the capital within the pool of resources” (Hockey, 1997; as cited in Lin et al., 2010, 360). Talent, money and time are scares and therefore corporate social responsibility programs for HPs can be seen as a type of resource allocation. It is of importance that employees support the distribution of these resources as then they will support the corporate social responsibility program.

Why should the dimensions of OCB impact the success of a corporate social responsibility program for HPs involved in a talent management program? In this question successful means that HPs would like to participate in the program. One of the conclusions of the research, and also a unique finding, of Lin et al (2010) was that corporate social responsibility had a negative effect on the dimension helping (altruism and courtesy) of OCBs. Therefore a first step has been made in finding out more clearly the impact of the dimensions of OCB on social responsibility. Another fact is that when an employee shows OCB, he or she shows “concern for the welfare of others” (Evans & Davis, 2011: 943) and consequently “supports the social and psychological context of the work environment, which, in aggregate, benefits the organisation” (Evans & Davis, 2011: 943). This is positive for the willingness of HPs to participate in a corporate social responsibility program as “the psychological climate signals behavioural prescriptions, and employees tailor their actions accordingly (Evans & Davis, 2011: 943). Therefore the expectation is that the degree of OCB will influence the extent to which one is willing to engage in a corporate social responsibility program.

Hypothesis 2: Organisational citizenship behaviour (conscientiousness, altruism, sportsmanship, courtesy, and civic virtue) will be positively related to the willingness of High Potentials involved in a talent management program to participate in a corporate social responsibility program.


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Based on the hypotheses 1 & 2, the following conceptual model is leading for the empirical study.

Figure 5: Conceptual model for hypotheses 1 and 2

Programmatic determinants; job

dimensions

Individual determinants; organisational

citizenship behaviour

Successful social responsibility

program


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3. Methodology

This chapter will bring the empirical part of this research. It will explain the sample and the data. Furthermore, it will discuss the method for data collection and data analysis, with detail for the validity and reliability issues of this study. The first paragraph will reintroduce the central question of this study together with the sub questions that will be answered by this empirical part. The second paragraph will present the research domain, which consists of a discussion of the literature, quantitative and qualitative research. In the next paragraph we will review the sample (the population and the response). Fourth, the data collection and measurement instruments are described. In this paragraph the survey and the document analysis will be addressed together with the response. Fifth, the data analysis will be presented. In this last paragraph the validity and reliability of this research will also be discussed.

3.1.Central questionBased on the problem indication in chapter one, the following central question has been formulated:

How can corporate social responsibility be part of a talent management program for high potentials and what individual and programmatic determinants make a successful corporate social responsibility program for high potentials involved in a talent management program?

To answer this question the following sub questions have been formulated:1) Talent management for high potentials

a) What are the best practices in talent management for high potentials in general? b) Which practices are used, by CTM Benelux, in the program for talent management?

2) Social responsibilitya) How can corporate social responsibility be described? b) Which corporate social responsibility practices are used in talent management

programs?

3) Successful corporate social responsibility in talent management programs for high potentials


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a) Which programmatic determinants are important for a successful corporate social responsibility program for high potentials involved in a talent management program?

b) Which individual determinants are important for a successful corporate social responsibility program for high potentials involved in a talent management program?

The sub questions 1a, 2a, 2b are answered in the literature review in the previous chapter, chapter 2. The sub questions 1b, 3a, 3b will be answered in the following chapter, chapter 4.

3.2.Research domainWe will hereby discuss the literature, quantitative and qualitative research as addressed before. We will reason why we have made certain decisions in this study.

3.2.1. Literature researchLiterature research is an important element of the design and data analysis of a research. Boeije (2005) states that the literature research puts the research in a (multi) disciplinary framework. Moreover it tunnels the research, makes a connection with actualities, and discussion and sheds lights on facets whereof the researcher has not thought of yet (Boeije, 2005; Yin, 2009). Most importantly is that it gives an overview of the scientific knowledge that has been published about a certain topic or concept, in this case around talent management and social responsibility. This particular literature research made clear there is a lot of research about the two topics, however there is a lack of scientific knowledge of the two topics combined. The literature is composed of primary publications (“original, theoretical, conceptual and/ or empirical work”) and secondary publications (“handbooks, bibliographies and review articles”) (Van der Velde, Jansen & Anderson, 2007), which have been found by using the searching engines Omega and Google Scholar. The most used keywords are: talent management, management development, (strategic) human resource management, social responsibility, corporate citizenship, organisational citizenship behaviour.

3.2.2. Quantitative research This study is an exploratory quantitative research based upon a survey. In an exploratory research the development of concepts, hypotheses and theory is central to the research (Baarda & De Goede, 2006). The focus of this study lies on the exploration of theoretical hypotheses about the individual and programmatic determinants of a successful corporate social responsibility program. Therefore the decision has been made to use a quantitative


39

research design. According to Henn, Weinstein & Foard (2006: 117) this type of research is used to: “collect data using standardized approaches on a range of variables, search for patterns of causal relationships between these variables, and test given theory by confirming or denying precise hypotheses”.

The leading inquiry is empirical-analytical, which means that the concepts and hypotheses derived from the theory are leading for this research. Statements of events are given based on social facts instead of based on subjective meaning, which means that the social reality is not reconstruction by people who give a certain meaning to a situation. The research focuses on finding general regularities, as to make it possible to make a statement of the whole population (Leisink, 2010).

3.2.3. Qualitative researchA small part of this research is of qualitative nature, to support the quantitative research and answer the question “Which practices are used, by CTM Benelux, in the program for talent management?” For this question specifically, but also the central question it is necessary to have the perspective of the organisation. In order to answer the central question we need to know which practices are used by the specific organisation, namely CTM Benelux, as than it is possible to give concrete recommendations for the implication of a corporate social responsibility program for HPs involved in a talent management program. If we recall the discussion in the previous chapter about best fit and best practice, we understand the relevance of understanding the practices used by CTM Benelux in the talent management program for HPs. Qualitative research makes it possible to study a subject from the perspective of a specific organisation in order to describe this perspective (Boeije, 2005).

3.3.SampleThe research hypotheses described in chapter 2 are empirically tested using a survey of (graduated) master students from different universities in the Benelux (Belgium, the Netherlands, and Luxembourg) as the research is for the department Country Talent Management Benelux. There is no need to specify a specific study as Philips Benelux does not hire only students from a specific academic background. The requirement to participate in this research is that the student is in the track of finishing his or her master studies or has graduated. The reason behind using students as a sample instead of Philips HPs has to do with a recent development which has been named before in chapter 1, which is the overhead cost reduction of Philips. Consequently there is at the moment no support to implement a corporate social responsibility program for HPs involved in a talent management program. The HPs that are now involved in a talent management program are


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expected to continue to grow and become top potentials (TPs), and for them the corporate social responsibility program will not be implemented. Therefore we need to look at future HPs, which are (graduated) master students from different universities in the Benelux. Everyone meeting this requirement was able to fill in the survey. Participation was voluntary, and responses were kept confidential.

Respondents were forced to answer all items on one page before proceeding to the next. In this way, needless errors on a page were prevented. However, there were some respondents who did not complete the survey completely. This could have been caused by lack of interest or lack of time, even though the survey takes maximum 10 minutes to fill in. Another reason for the lack of continuation can be due to participants who did not belong to sample group. This group consists of 70 respondents. As they all did not complete the whole survey, which is needed for a proper data analysis, they were excluded from the data analysis.

Table 1 presents the demographic characteristics of the sample. In total 134 respondents filled in the survey, from which 34.3% (n=46) is male and 65.7% (n=88) is female. The biggest percentage of respondents are master students, namely 33.6% (n=45), followed by bachelor students, namely 25.4% (n=34). Of all respondents, over 50 percent is studying or has studied in the area of science education (n=41) or social education (n=31).

Table 1: Sample characteristics

Variable N Percentage in %Gender

MaleFemale

4688

34.365.7

Present positionBachelor studentMaster studentEmployee with bachelor degreeEmployee with master degreeUnemployed with bachelor degreeUnemployed with master degree

3445933310

25.433.66.724.62.27.5

EducationGeneral field of studyScience educationArts educationLanguage educationCare/healthcare

18415310

13.430.63.72.27.5


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Social educationManagement educationLaw education

31215

23.115.73.7

3.4.Data collection & measurement instrumentsHereby we will discuss the data collection and measurement instruments. First we will start with the discussion of the survey research. Next we will discuss the document analysis.

3.4.1. Survey researchSurvey research allows questioning a large number of respondents and emphasizes representativeness and frequencies of certain phenomena (rather than offer insights in the complexity of a problem) (Van der Velde, Jansen & Anderson, 2004: 76) which suits the objective of this research project. A disadvantage of this type of research is that it “depends on the willingness and the ability of respondents to answer” (Van der Velde, Jansen & Anderson, 2004: 77). Therefore several measures have been taken to overcome this disadvantage:

Before the data collection period started, a part of the respondent group received an advanced letter. This is aimed at generating a higher rate of cooperation (Groves et al, 2009).

The design and the lay-out of the survey have been designed in such a way to encourage respondents to fill in the survey. More specifically this is about the background colour (pastel orange), font (Arial), and font colour (dark grey).

The survey was pre-tested by 3 people to check the clarity of the statements and grammar. Only 3 students were asked to participate in this pre-test at is showed that after the comments of the first person no other comments were made.

The survey was partially distributed by e-mail which made it easier for the respondents to participate.

A progress bar was included in the survey. In this way, participants were able to see the percentage of the questionnaire they already completed at the top of each page.

A reminder was sent out.

It is an internet-based survey in which potential respondents received an email with the question to participate or clicked on a link via specific websites to recruit potential respondents. These specific websites were special groups on Facebook and LinkedIn, and were focused on the sample. After clicking on the URL, they were transferred to the survey on a different website. The survey is divided into different pages instead of only one page. According to Couper (2008) and in accordance with this research a multiple page survey is


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more suitable when: the survey is lengthy, respondents should answer questions in sequence.

To measure the first hypothesis we will use six vignette questions. The introduction of the vignettes is based on the theoretical framework of this research. “Vignettes are short descriptions of hypothetical situations which are identical besides the very important difference” (Vandenabeele & Kjeldsen, 2011: 9). The difference will be in the presence of a job dimensions. In the first vignette, all job dimensions are present, whereas in the following vignettes (vignette 2 until 6), one of the job dimensions is not present. These vignettes can be found in appendix 1. The scores on the vignettes are measured with the use of a 5-point Likert scale drawn from existing literature, in which a 1 refers to definitely participate and a 5 refers to definitely not participate. However attention must be paid to the fact that the focus lies on the intention to participate instead of actual participation.

To measure the second hypothesis we will use 5-point Likert scales drawn from existing literature, specifically from Lin et al (2010). OCB are measured using 20 items, 4 items per dimension. All the measurement items are listed in appendix 2. The wording of the OCB items were not changed as during the pretesting phase of this research showed that all items were clear.

Next to the vignettes and the survey around OCB, the factor gender was measured as a control variable. The added value of gender is that “several studies reveal that women often have a greater concern for social responsibility than men” (Evans & Davis, 2008: 463; Roza, 2009). The aim for a control variable is to increase the internal validity by including controls for other possible determinants of intention to participate in a corporate social responsibility program and OCB. Educational field is also added to make sure not on type of educational field is overrepresented compared to others. The last question added is to check if the participants that want to participate in the study are of the scope for this research sample.

3.4.2. Document analysisFor this research there has been made use of a document analysis to support the quantitative research. According to Van der Velde, Jansen & Anderson (2004: 97) this kind of vertical analysis is a good way to get insights in how an organisation operates at a specific time. The used documents helped to answer the question “Which practices are used, by CTM Benelux, in the program for talent management?” The reason to use this type of data collection can be divided into two parts. First of all this research is a form of applied organisational research as it aims to make a contribution to a real-world situation by solving problems (Van der Velde, Jansen & Anderson, 2004). Therefore the above


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question can only be answered either by document analysis or by using interviews. Why is the decision made to use a document analysis instead of using interviews? This is the second part of the reasoning as all the information for answering the question is well documented by CTM Benelux. There are two weaknesses of document analysis that are worth noticing here, namely retrievability and reporting bias. The first has to do with a difficulty to find the document (Yin, 2009) and is of importance as some of the documents used are only retrievable via the protected intranet of Philips. Reporting bias is a bias of the author (Yin, 2009) and can have an impact on this research as the researcher was employed by Philips while doing this research. However the researcher has always tried to have an as much objective view as possible on the research.

3.5.Data analysisBefore running the statistical tests necessary to answer the hypothesis set in chapter 2 of this thesis, tests have been performed to ensure the validity and reliability. Reliability is the “overall precision and accuracy with which a concept is measured” (Van der Velde et al., 2004; 50). Therefore it can be said that reliability is about being able to repeat the measurement, by which you will come to the same results. The survey research of this thesis is taken from Lin et al (2010). Since many researchers have tested and retested the instrument it gives more certainty about reliability and validity, moreover the results from this research can easier be compared to other research results (Van der Velde et al., 2004). However it is still important to test reliability as each sample is unique. Reliability is measured by conducting a Cronbach’s alpha (α) analysis. Nevertheless, it should be noted that a disadvantage of Cronbach’s alpha is the fact that it is less suitable for ordinal data (Blom, 2010). Even thought the Likert-scale is mostly seen as an interval scale, however it is actually an ordinal scale. Therefore it can be said that Cronbach’s alpha is not the most suitable for this research.Table 2 shows the alpha (α) of the components of OCB.

Table 2: Cronbach’s alpha – Organisational Citizenship Behaviour (OCB)Scale Number of items Alpha (α) (N)Altruism (AT) 4 .580 134Conscientiousness (CS)

4 .431 134

Sportsmanship (SP) 4 .442 134Courtesy (CT) 4 .529 134Civic virtue (CV) 4 .533 134OCB 20 .770 134

According to Van der Velde et al. (2004) an alpha of .60 is a minimum, .70 is acceptable and .80 or anything above this number is good. Only the overall scale of OCB, which is composed of all scales, has an acceptable score. However the more items, the higher the


44

Cronbach’s alpha (α). Therefore it has been decided that items will tried to be deleted so that the Cronbach’s alpha reaches a more sufficient Cronbach’s alpha (α). After analyzing the scales are comprised of the following items: Altruism consists of AT2, AT3, AT4. Conscientiousness has only one item which is CS1. The same goes for Sportsmanship and Civic virtue, with respectively SP3 and CV3 as item that represents the scale. CT1 and CT 2 are the items for the scale Courtesy. Therefore it has been decided that OCB is comprised of the following items AT2, AT3, AT4, CS1, SP3, CT1, CT2, CV3. In table 3 the alpha (α) of the components of OCB.

Table 3: Cronbach’s alpha – Organisational Citizenship Behaviour (OCB)Scale Number of items Alpha (α) (N)Altruism (AT) 3 .605 134Conscientiousness (CS)

1 134

Sportsmanship (SP) 1 134Courtesy (CT) 2 .659 134Civic virtue (CV) 1 134OCB 8 .654 134

There is a tendency in former research to perform a factor analysis on the items of the separate OCB scales. However in this research a different approach will be taken. The reason behind this is that in this research the separate scales of OCB are not of essence. However what is of essence is the presence of OCB for this thesis. Moreover it has been shown by previous research (Lin et al, 2010; Wolfe, 1994) that OCB is reliable. Therefore all items of the OCB scale have been summed up and divided by 20.

OCB responds to the second hypothesis formulated in this research. The second hypothesis is “Organisational citizenship behaviour (conscientiousness, altruism, sportsmanship, courtesy, and civic virtue) will be positively related to the willingness of High Potentials involved in a talent management program to participate in a corporate social responsibility program.” To test the relation between OCB and willingness to participate the Pearson correlation coefficient has been run. An independent t-test has been performed to see if there are significant differences in means between the groups (groups based on gender).

For the vignette approach reliability is not determined. Even though the argument of a unique sample is applicable to this research it has been decided that as the job dimensions have been tested and retested many times it will not be necessary for the scope of this thesis to perform a test to ensure reliability. The concept validity of the vignettes is based on Hackman & Oldham as the vignettes have the same descriptions as the items of the survey of Hackman & Oldham.


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As there is no consensus yet concerning extraordinary statistical techniques that could be used for vignettes, the data analysis will stay basic. The first hypothesis of this research is “The presence of a job dimensions (skill variety, task identity, task significance, autonomy and feedback) will lead to higher willingness of High Potentials involved in a talent management program to participate in a corporate social responsibility program.” This hypothesis will be analyzed using the data of the vignettes. Necessary to answer this hypothesis is the use of descriptive statistics such as frequencies and means. Also, a one-way within-subjects ANOVA was run to see if there are significant differences in means between the different vignettes. An independent t-test has been performed to see if there are significant differences in means between the groups (groups based on gender).


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4. Results

In this chapter, the results of the empirical part of this study are presented. First, the overall results of the document analysis is described, on the basis of the sub question “Which practices are used, by CTM Benelux, in the program for talent management?” Next, the overall results of the survey research are presented. The sub questions corresponding to this are: “Which programmatic determinants are important for a successful corporate social responsibility program for high potentials involved in a talent management program?” and “Which individual determinants are important for a successful corporate social responsibility program for high potentials involved in a talent management program? In both the sub questions the results will be specified for the control variable gender. Lastly attention will be paid to the distribution of educational field.

4.1.Which practices are used, by CTM Benelux, in the program for talent management?

The objective of this thesis is to explore the interests of HP concerning the implementation of a corporate social responsibility program in the talent management program. Besides researching the individual and programmatic determinants of a successful corporate social responsibility program for HPs involved in a talent management program, it is essential to have knowledge of the talent management practices used by CTM Benelux. The reason behind this can be subtracted from a discussion between best practice and best fit in chapter 2. As written before the success of an organisation in attracting talents “depends on the integration” of the talent management practices (Bersin & Associates, 2010). Although there are many separate best practices, these cannot be and should not be integrated in the talent management program of an organisation. Most importantly as besides best practices, it is important to not forget the best fit. Most organisations are different from one another and therefore the way they arrange their talent management should also be different. Moreover the practices have to be connected to be efficient (Bersin & Associates, 2010). Besides that organisations that are multinationals have employees in many different countries or hire employees from many different countries. When applying these practices, research shows that the practices and priorities differ across countries (Mabey, 2004).

As is clear from the above elaboration the reason to use a document analysis is to fit the recommendations that will be subtracted from the survey research, with the talent management practices used by CTM Benelux in order to be effective.


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Case study 1: Report of IMEC Circle Next (2011).

Philips is a talent builder, which means that they prefer to promote from within instead of buying the talent from outside the organisation. Although this is true for high potentials, higher in the organisation talents is mostly from outside the organisation. To accomplish this Philips has incorporated a people vision in their strategy, which means there is a high performance growth culture. To accomplish this, talent management is seen as a partnership between Philips’ HR-department, leaders and employees. In which the first provides opportunities and manages processes to enable development and succession planning. Leaders recognize, coach and develop the skills of their employees and employees work on their personal development and are required to have a self-managing mindset about careers.

Case study 2: PowerPoint of Philips (2010).

As well as described in case study 1, Philips wants to promote itself as a talent builder and the selection of HPs they hire is highly selective. Moreover they have to match with the values of Philips. When employees are HPs there are certain inflow and outflow criteria, in whereas outflow criteria could mean outflow to a higher pool (Top Potential or Senior Executive Potential) or a non-talent position. The inflow criteria are the following: consistently strong performance, currently the employee should be in a grade below 70, growth potential of at least 2 grades to a grade 90 role, and confirmed by a talent review discussion. Opposite from inflow criteria are the outflow criteria: performance rating outside ‘talent identification’ quadrant for 2 years in a row, in same role for longer than 4 years, in same grade for longer than 4 years (2 years in grade 80), identified as Top Potential, and promoted to grade 90.

There is a global outlined career path in which the first parts concerns the selection of an HP based on the inflow criteria. If an HP is hired from outside the organisation the person first has to attend a business course or individual assessment. Again this is a highly selective process. The aim is that this process takes 2 to 3 months. After that there are 4 parallel paths that are of importance, which are the HP learning path, career moves, coaching and yearly talent event(s). The HP learning path is an indicative learning curriculum with recommended formal courses which can be followed either online or in a classroom setting. These are run in collaboration with leading business schools. Career moves focus on building a broad career in diverse sectors, functions and countries. HPs receive feedback in the form of coaching but also are supported to coach other employees. The last path is/are the yearly talent event(s). These events are focused on supporting HPs in their development and focus on a specific grade or specific theme around their


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development. Besides the 4 parallel paths there are 2 long term development events, which are the development center and INSPIRE. These are events of a few days in which the HPs are in a small group supported by Top Potentials in their development.

Case study 3: Annual report 2010 of Philips (2010).

Around 30% of the HPs were female in 2010, which is an increase of 1%, and 15% of HPs has a BRIC (Brazil, Russia, India, the People’s Republic of China and South Africa).

Case study 4: Benelux employee engagement survey of Philips (2010).

In the employee engagement survey one item is of importance for this research, namely “I am satisfied with the learning and leadership development programs offered at Philips.” This item declined compared to 2009 from 77% to 69%, while the aim is 78%.

4.2.Which programmatic determinants are important for a successful corporate social responsibility program for high potentials involved in a talent management program?

One objective of this study is to explore the programmatic determinants that are important for high potentials would participate in a corporate social responsibility program. Table 4 shows the descriptives for the different job dimension vignettes. It can be seen that the participants in the survey prefer all job dimensions in order to participate in a corporate social responsibility program. This is followed by the vignette situation in which the job dimension task identity is absent. The following preferences are absence of autonomy, job feedback, skill variety and last task significance. On average, the vignette situation in which all job dimensions were presented was rated 1.64 on a five-point scale. Moreover, the maximum score for this vignette is 4 which indicate that none of the participants would definitely not participate in a corporate social responsibility program if all job dimensions were present. The table shows that in the 3 vignettes situation (absence of skills variety, task significance, or job feedback) have a higher mean (3.10, 3.57, and 2.82) and are thus less preferred by participants to participate in. These vignettes also have a remarkable higher standard deviation (.975, .992, and .941) than the vignette with all job dimensions present (.676). Thus the scores on the vignette with all job dimensions included are clustered closer to the mean whereas scores on the specified vignettes (absence of skills variety, task significance, or job feedback) are more spread out. This indicates that the results on the situation with all job dimensions apply better to the entire population than the results on the specified vignettes in which there is an absence of a job dimension (skill variety, task significance, or job feedback).


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Table 4: Descriptives for job dimensionsVariable Minimu

mMaximum

Mean SD

All job dimensions 1 4 1.64 .676Absence of ‘autonomy’ 1 5 2.54 .810Absence of ‘task identity’ 1 5 2.51 .811Absence ‘skill variety’ 1 5 3.10 .975Absence of ‘task significance’

1 5 3.57 .992

Absence of ‘job feedback 1 5 2.82 .941

A one-way within subjects ANOVA has been performed to explore the difference in willing to participate between the vignettes. This test is preferred to several paired t-test as in this case only a single test is needed. The following (significant) differences are found:

There was a significant effect of job dimensions, F(5,665) = 98.842, p <.0005, partial η2

= .43.

For these data there is a significant linear trend, F(1,133) = 228.231, p < .0005, partial η2

= .63, over the mean values for each level of the factor. For the vignette with all job dimensions, participants have the highest willingness to participate; for the vignette with absence of task identity they are less willing to participate; followed by the vignette absent of autonomy, job feedback, and skill variety; and for the vignette with the absence of task significance they are least willing to participate. This does not mean that the individual conditions significantly differ from one another. There is also a significant quadratic trend, F(1,133) = 95.892, p <.0005, partial η2 = .419.

Gender

In table 5 the results are split between gender to look into the differences and if these differences are significant. Only for the vignette with all job dimensions presented the difference between male and female is significant.

Table 5: Mean, SD, t-values, df, and p-values of the vignettesMean (SD)

Variable Male Female t-value df p-valueAll job dimensions 1.80

(.654)1.56 (.676) 2.036 132 .044

Absence of ‘autonomy’ 2.67 (.762)

2.48 (.830) 1.339 132 .183

Absence of ‘task identity’ 2.61 (.930)

2.47 (.742) .967 132 .335

Absence ‘skill variety’ 3.04 (1.115)

3.14 (.899) -.522 132 .603

Absence of ‘task significance’

3.35 (1.079)

3.68 (.929) -1.868 132 .064


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Absence of ‘job feedback 2.91 (.939)

2.77 (.944) .819 132 .414

Educational field

Table 6 shows the desciptives of the variable educational field. This variable is important as it could over represent a specific field of education. All field of education have at least been named once. However there is an overrepresentation of science education and social education.

Table 6: Descriptives for educational fieldVariable Minimu

mMaximum

Mean SD Percentage (%)

Educational field 1 8 4.1 2.347General field of study 13.4Science education 30.6Arts education 3.7Language education 2.2Care/healthcare 7.5Social education 23.1Management education

15.7

Law education 3.7

4.3.Which individual determinants are important for a successful corporate social responsibility program for high potentials involved in a talent management program?

This study also aims to explore the individual determinants of why high potentials would like to participate in a corporate social responsibility program. There was a significant negative correlation between OCB and willingness to participate in a corporate social responsibility program (r = -.357, N = 134, p < .0005, one-tailed). According to the statistical test that has been run there is a moderate correlation between OCB and willingness to participate: 12.7% of the variation is explained. This means that when participants are more willing to participate they also have a higher score on OCB.

There was also a significant negative correlation between OCB and the vignette in which there is a lack of autonomy (r = -.182, N = 134, p < .0005, one-tailed). According to the statistical test that has been run there is a weak correlation between OCB and the vignette in which there is a lack of autonomy: 3.3% of the variation is explained. This means that when participants are more willing to participate in a corporate social responsibility program without the job dimensions autonomy they also have a higher score on OCB.


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Gender

On average, women and men show no difference in organisational citizenship behaviour (M = 3.88, SE = .405), than men (M = 3.88, SE = .413). There is no mean difference between genders and the 95% confidence interval for the estimated population mean difference is between -0.149 and 0.145. The effect size was small (d = 0.06). An independent t-test showed that the same average for men and women was not significant (t = -.022, df = 132, p = .982, two-tailed).


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5. Conclusion and discussion

In this chapter, conclusions and implications of the findings of the current study are presented. The first paragraph presents the overall conclusion in which the central question of the thesis is answered. In the second paragraph, the implications for research and practice will be discussed. The last paragraph contains the limitations of this research, moreover it considers directions for future studies in this area of research.

5.1.ConclusionThe objective of this research was to explore the interests of HP concerning the implementation of a corporate social responsibility program in the talent management program. Moreover the question is what a successful corporate social responsibility program is. With a successful program is meant a program in which HPs are willing to participate. The following question was central to this research:

How can corporate social responsibility be part of a talent management program for high potentials and what individual and programmatic determinants make a successful corporate social responsibility program for high potentials involved in a talent management program?

Based on the job dimensions of Hackman & Oldham (1975), it was predicted that the presence of all job dimensions (skill variety, task identity, task significance, autonomy and feedback) will lead to higher willingness of High Potentials involved in a talent management program to participate in a corporate social responsibility program. Current findings support his prediction. On average, the vignette situation in which all job dimensions were present scored a 1.64, against a higher mean score on all of the vignettes in which one of the job dimensions was absent. The most important job dimension for participants in order to participate in a corporate social responsibility program is task significance, followed by skill variety, job feedback, autonomy, and task identity. Moreover it is notable that the result of the maximum mean score for the first vignette is 4, this indicates that none of the participants would definitely not participate in a corporate social responsibility program if all job dimensions were present. Thus HPs are more willing to participate in a corporate social responsibility program if all job dimensions are present, of which task significance is the one that is most important. Only in the condition off all job dimensions, women have a higher willingness to participate.


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Based on previous findings on the motives of employees to participate in corporate social responsibility programs, it was predicted that organisational citizenship behaviour (conscientiousness, altruism, sportsmanship, courtesy, and civic virtue) will be positively related to the willingness of High Potentials involved in a talent management program to participate in a corporate social responsibility program. Current findings slightly support this prediction. Only 12.7% of the variation in willingness to participate is explained by OCB. However the relation is negative, which means that OCB is negatively related to the willingness to participate. There is no difference between men and women.

5.2.Implications for research and future researchAs until now, research into the individual and programmatic determinants of a corporate social responsibility program was scarce. It is important that this research focuses more on what is important for employees to be willing to participate in a corporate social responsibility program.

According to the research of Peloza, Hudson & Hassay (2009) it seems that employees are in need of learning something different when participating in a corporate social responsibility program from their normal job activities. However according to this research findings, employees are more in need to give something back to the community. This supports the research findings of Blom (2010) in which was concluded that HPs working at Philips have the need to serve the community. More general it can be said that potential employees look for organisations that have a good corporate social responsibility policy and even programs (Chiang, 2010). This research supports the general notion of importance of implementing a corporate social responsibility program.

Research of Peloza & Hassay (Peloza, Hudson & Hassay, 2009) concluded that organizational citizenship motives will most likely lead to the successful corporate social responsibility program. The behaviour which comes with this motive is OCB. However the findings of this research did not show a clear relation between OCB and a successful corporate social responsibility program. The reason for this difference can lie in a conclusion of the research of Lin et al. (2010), which showed that if the corporate social responsibility program, for example has high costs, it could be seen by employees as competing on resources and consequently the OCBs of employees may be discouraged. In the Benelux there is still an economic downfall, as the economies of Belgium, the Netherlands, and Luxembourg are not as much rising as a few years ago. Therefore it could be that participants in the survey of this research showed less OCB as they see a corporate social responsibility program as something that has high costs which should be used for something else. Future research could combine both questions in order to discover if there


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is a moderating effect of job dimensions on the relationship between OCB and the willingness to participate.

The following questions were first added to this thesis, however due to the lack of time for this research it was decided to delete them and have a more clear focus. Therefore these questions are recommended for future research. The overall question was what the effects are of embedding corporate social responsibility in talent management programs designed for HPs. This can be divided in smaller question, which are: What are the effects on the fulfilment of the needs of HPs?; What are the effects on the performance of HPs?; What are the effects on the development of HPs? There has not been done a lot of scientific research in the evaluation of corporate social responsibility programs for HPs, and for employees more general.

Another recommendation for future research is to find out what the individual determinants are of employees who want to participate in a corporate social responsibility program. This research could only explain 12.2% of the variance in willingness to participate. As this is only a small percentage of an explanation of individual determinants it is clearly scientifically useful to discover what can explain a bigger amount of the variance in willingness to participate. An example could be to ask participants how much experience they have in voluntary work. Although this has been researched Roza (2009), it then only focused if it was significant and not how much of the variance in willingness to participate it could explain.

A last interesting direction for future research is the influence of transformational leadership on the willingness of employees to participate in a corporate social responsibility program and also the effect of transformational leadership on the performance of employees participating in these programs. As been mentioned before, in the eight steps of Bowen, Burke, Little & Jacques (2009), there is a need for support from top management. This will lead to higher willingness and motivation of employees to participate. Transformational leadership consists of charisma, inspirational motivation, intellectual stimulation, and individualized consideration (Walumbwa & Hartnell, 2011).

5.3.Implications for practiceIf we critically look at High Potentials the question arises if it is possible to justify this in times like these, which means in times of economic crisis. This is especially true for Philips as they have to cut down in costs, and some people are not sure if they will be able to continue their job. A talent management program brings forth a lot of costs. Talents should not only be intelligent, but also be effective at real life situation which involve working in a team (Gladwell, 2002) as in the end it is about performance. However HPs are not the main


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theme of this research, although there are the potential research population. Therefore it is not needed to conclude if it is viable to have talent management programs. What is more interesting is that corporate social responsibility programs do not have to be expensive developmental programs compared to for example development centres. Therefore it can be said that the implementation of a corporate social responsibility program in a talent management program for HPs is a cut through recommendation for organisations, and especially for Philips. Philanthropic organisations which focuses on health and well being would fit best with Philips as this is part of the strategy of Philips. Research showed that it is important if organisations can couple the activities with the strategic goals of the organisation (Chiang, 2010; Peloza, Hudson & Hassay, 2009), which is important for the viability of an organisation. However it should not be restrained as there still should be freedom for the HP to decide what kind of corporate social responsibility program it would participate in.

Concluding it can be said that a corporate social responsibility program should be implemented for HPs. It can be a good addition to the present talent management program. When implemented it is advised to include all job dimensions. However if this is not feasible, it is of essence that at least the job dimensions task significance should be present. This means that the tasks that are included in the corporate social responsibility program should have a substantial impact on others. Again this points out that the participants of this research find it important to give something back to their community, which is the essence of a corporate social responsibility program. This is in accordance with the theoretical framework as in figure 1 HPs can be put in quadrant 1 as they have a high strategic value and are highly unique. The HR system best suited is the commitment-based HR system, which should focus on building the motivation, commitment and development of the HPs internally. This is especially true for a corporate social responsibility program. Therefore it can be said again that this program is well suited to implement in a talent management program.

Important is the question if a corporate social responsibility program could be embedded in a talent management program for HPs, specifically for CTM Benelux Philips. Especially since Philips is still working out her cost-cutting program of €800 million. Moreover it could raise the satisfaction of HPs in Philips concerning the satisfaction with the learning and leadership development program. In the annual report about 2010 it showed that this item declined. A goal is to raise it. Therefore a corporate social responsibility program can easily fit within an organisation as Philips, especially combining the cost-cutting program arguments together with a less satisfied group of HPs with their talent management program.


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An important advice for Philips is, if they have implemented a corporate social responsibility program, to evaluate this program accordingly to preset objectives. These objectives should not only be measured objectively, it is always needed to evaluate the program with the philanthropic organisations and the employees participating in the program.

For the future it would be interesting to see how a corporate social responsibility program can be combined with different workloads. For example, what if an employee has a heavy workload, would he or she still be willing to participate? Or would the willingness decline?

5.4.Limitations Despite the satisfying response rate and the measurements taken to ensure the validity and reliability of this thesis, some limitations rest upon the results. According to the exploratory factor analysis the different factors of OCB were not significant, however overall OCB was significant as one scale. The reason for this can be that for a factor analysis at least 200 participants are needed (Brace, Kemp & Snelgar, 2000; 317).

Another reason could be that previous research showed that OCB is actually ill-defined, describes more in-role behaviour than extra-role behaviour, and last varies between employees (Organ, 1997). Moreover Organ (1997) discussing why many of the dimensions of OCB are not appropriately for research. An example is the label conscientiousness, which can lead to confusion with a dimension of the Big Five.

A final argument for the non significant results on OCB is that OCB research has mostly been taken place in the United States. “Understanding whether behavioural theories initiated in the United States are generalizable to non-United States populations is critical to the effective management of global ventures”(as cited in Yen & Niehoff, 2004, 1617).

Second, with regard to the variable that was used to measure the educational field there is something that needs to be taken into account. As can been seen from table 6 there is an overrepresentation of the educational field’s science education and social education. It could be possible that as participants are already studying a social program, there are more willing to participate in a corporate social responsibility program. Therefore as a final note it should be mentioned that in future research participants with a different education need to be researched so that both groups can be compared as the education could also explain some of the variance in the willingness to participate.


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