The Impact of Leadership on Employee Talent Management Strategy to Motivate Performance of the Manufacturing Sector in Harare, Zimbabwe.

The Impact of Leadership on Employee Talent Management Strategy to Motivate Performance of the Manufacturing Sector in Harare, Zimbabwe.

Charles Mavhunga & Gertrude Dube
University of St Thomas Mozambique

DOI: https://doi.org/10.47772/IJRISS.2023.7426

 Received: 11 January 2023; Accepted: 27 January 2023; Published: 29 April 2023

ABSTRACT

Purpose of study: The study focused on the impact of leadership on employee talent management to achieve goals of organizations in the manufacturing sector in Harare. The manufacturing sector in Zimbabwe is faced with labour migration to other countries in Botswana, South Africa, and Europe, following the deteriorating performance of the economy of the country.

Methodology: The study deployed regression analysis to establish the relationship between leadership and talent management to motivate performance of listed companies in Zimbabwe in the manufacturing sector.

Main study findings: The study found that components of leadership practices which involves employee talent identification, employee talent satisfaction, employee talent commitment, and employee loyalty had a significant contribution to performance of manufacturing companies in Harare. The study also established the hierarchy of impact of the four variables namely: Employee Satisfaction skill topped the line, followed by employee loyalty skill, then employee commitment and finally employee identification in that order.

Main study conclusions and recommendations: The study concludes that leadership practices had a significant relationship with talent management strategies to motivate performance of the manufacturing sector in Harare. The study recommended the use of hierarchy of impact to design training programs to equip leaders in organizations with skills to management talented employees.

Key Words: Talent identification, talent satisfaction, talent commitment, employee loyalty

INTRODUCTION

This paper is focused on the impact of leadership on employee talent to achieve goals in the manufacturing sector in Harare. The study was motivated by the deteriorating performance of the manufacturing sector in Harare, Zimbabwe. The economy of Zimbabwe is experiencing a recession as a result of political fundamentals that continues to haunt the country. These challenges remain traumatic to business operations especially in the manufacturing sector. The challenges of load shedding are traumatic and hard-hitting. Fuel supplies in the country are also erratic, especially with the current war in Ukraine, the price of fuel has doubled, affecting the cost of productions, and organizations in the manufacturing sector in Harare are earning depressed revenue streams. However, reality check in the leadership cycles is the subject of visionary thinking and luminary performance to nurture and capture employee talents to motivate organizational performance (Hefertz, 2017).Leaders are visionary thinkers with capacity to think in their own right; they dream about the future, they see the future today; they are good in both words and action. The implication is that visionaries and luminaries in the leadership circle motivates talented employees to unleash their skills and talents to achieve set goals of organizations. It is therefore against this background that this study focused on impact of leadership on employee talent management strategy.

LITERATURE REVIEW

The Leadership function and talent management strategies

The capacity to identify talents and utilise the talents for the good of an organizations is a basic component of the leadership administration. The leadership in organizations is involved in visionary thinking to establish how the future of the organization should be through utilizing talents available on the labour market. The vision of the leadership comes to fruition after capturing the right talents and configure the correct mixture of talents that the organization holds to achieve the set goals(Fiedler, 1967).Leaders with the capacity to adapt and execute, win the favour of skilled and talented employees in organizations, and such leaders survive for long. The future is bright for companies that are adaptable to change, and have the capacity to capture and utilize the talent available; however, the major challenge that leaders face is the establishment of a strong bond with employees to motivate them to unleash their talents passionately (Fulford, 2007). The majority of leaders fail to achieve objectives of change due to employee resistance, and failure of the leadership style to capture and nurture employee talents and skills (Mueller, 2022).It is the function of the leadership to contribute to high performance of talented employees in organisation (Bass, 2016).According to a model crafted by Kouzes and Posner (2007),leaders are the innovators who help subordinates to accomplish extra ordinary results using the resources available to them. Leadership is characterized as the specialty of preparing talented employees to unleash their skills in the battle to fight for survival of organizations in a challenging business environment (Kouzes and Posner, 2007).Great leaders accept the view that individual employees have unique skills and talents that should be captured to achieve the set goals of the organization (Jago, 1982).The authority of the leadership should be at the heart-level  to motivate a mutual vision, empower others to act, model the way and supports the heart (Kouzes and Posner, 2007). In furthering this view, Kotter (2016) establishes that effective leaders inspire others to want to achieve shared goals. Leaders develop employee skills and character to reach a level of measurable maturity to utilize talents for the good of organizations(Mueller, 2022),the major challenge is that, leaders with deep experience tend to dwell too much in the comfort zone, and dwell too much in the models that have worked well in the past and fail to observe the importance of revising strategies to continue to win in the game of managing employees(Mueller, 2022). Change is very difficult when leaders have deep rooted cultures that affect their mental processes to envision the future strategically(Northouse, 2018). The universal function of the leadership is to identify talents and nurture the talent to achieve future goals of organizations(Bass, 2016).However, if the mental model of the old and experienced leader remains fixed ,and struggling to accept and adopt new cultures of change, the results will remain futile(Miles and Huberman, 2016). A leader defends the organisation’s mission and goals, and defines the organisation’s integrity and value system. The leadership is the centre of the organisation’s control and direction, an initiator of organisation’s ideas, activities or programmes, a symbol of peace and a source of motivation to the organisation to remain committed to the decision made. The unique role of the leadership is to make decisions, and to allocate resources to ensure that the organisation is operating efficiently and effectively, however, environmental threats need also to be managed such that the degree of failure is minimized (Hefertz, 2017). Successful leaders are involved in the construction of deep routed goals to energize subordinates to want to achieve extra-ordinary results with limited resources. Leaders are characterized by virtues of generosity, fairness, integrity, and bravery, hence they possess the skills and abilities to nurture and capture the talents of employees through empowerment. Transformational leaders are superiors of inspiration to ensure that subordinates support the change needed in organizations to achieve goals (Bass, 2016). Leaders are portrayed by the capacity to urge subordinates to accomplish targets of organizations. The significant objective of transformational leadership, is to see change occurring, and when change fizzles, transformational leaders get disappointed. They are not shaken by the difficulties to change the norm of things; and they fight their way out to empower the hearts of subordinates to achieve strategic goals of organizations (Kotter.P., 2016).According to Shephard (2020), leaders are  inspirational to attract the right combination of talents and skills of subordinates to produce the desired results of organizations. Shephard (2016), holds that intellectual stimulation of subordinates by the leadership, means that the ability to be innovative, intelligent and highly creative to tap the inner talents of followers to bring change and development to organisations. The leader is the authority in charge of creating a solid and stable atmosphere to empower subordinates to produce results that are beyond the expectation of human kind (Mueller, 2022).In strategic talent management, the leader is the mentor, counsellor and a statesman with ability to move subordinates into the spirited mood to become functional and productive (Rausch, 2018).

Shephard (2016) holds that leaders possess an authoritative culture which is an arrangement of shared qualities that are critical in the development of innovative products and services in organizations. In strategic talent management, the leadership culture is defined in terms of the assortment of customs, values, strategies, convictions, perspectives and shared implications that are used to harness the talents of employees or followers to become productive. Mueller, (2022), establishes the vital social dispositions that control behaviours of effective leaders, and these are as follows:

1. High in Tender loving care: This implies how much the leader display exactness, examination and consideration regarding key issues that influences the business execution(Mueller, 2022).
2. High in Result Direction: How much the leader’s emphasis on results and procedures in a business activity(Mueller, 2022). Leaders must be results oriented in business, and anticipate changes in the environment of the organization, and plans should be adaptive for the good of the organization.

3. High in Individuals direction: Leaders must support initiatives from subordinates, and must compensate innovations that are developed by subordinates as well(Fulford, 2007). Advocates of innovation must be paid high salaries and high incentives to remain focused on company goals and vision.

4. High Cogency: Leader must push for progress, and are expected to do everything possible to get the correct results through exploiting the privileges of leadership power(Mueller, 2022).

In the context of this study, leaders from the manufacturing sector in Zimbabwe are evaluated to establish impact on talent management strategies to motivate performance of ailing manufacturing industries. Leadership herewith should be seen as both a ‘process’ and a ‘trait’ to influence change and development in the management of employee talents (Bass, 2016). Leaders who encourage the heart are transformational in nature and champions of change (Shephard, 2020), and are expected to be spirited to bring change and development in organizations through capturing talents of subordinates to achieve company goals.

Strategic Talent Management

Globally, strategic talent management refers to innate skills of employees to initiate change through innovations in organizations (Abbas, 2018).Where top notch companies such as Google, Microsoft, Toyota, McDonalds, Apple; among others are defining success in terms of ability to attract, retain, motivate and develop a pool talented workers to maintain leadership on the market. The biggest challenge facing organizations in the global world is to find a sufficient number of high quality candidates to occupy the right positions in order to deliver the right service to the right customers at the right time(Boris, 2019).The function of the leadership is to attract,and develop the right pool of workerswith the right experience,and professional capacity to deliver high quality service. ManpowerGroup(2018), carried out a survey in Forty-three(43) countries on talent shortage,a total population of 29,195 employees participated in the study.The study findings were that, 45 percent of employers in small and medium enterprises are faced with the struggleto find skilled personel,whilst 67 percent of employers from large organizations that had 250 plus employees also cofirmed shortage of skilled manpower.The labour market is in a crtical shortage of talented people,and global companies are in a scramble to attract and retain the few skilled workers that are on offer and availble.In the global arena,many organizations have come to the realization of the importance of skilled enployees to achieve a competitive advantage (Abbas, 2018).Strategic talent management is the secret behind the succes of “Google company” in the technology industry (Consulting, 2019). The Google team is a talented hands-on innovators and a strategic talent manager in the sharing of key strategic talent management approach. Google staff are trained to share views and thoughts to motivate innovations through exchange of information (Bogatova, 2017).

In the same vein, Microsoft company is also a global company in the technology industry which is thriving, as a result of the contribution of strategic skill of the human resource force (Boston Consulting, 2019).To motivate the development of quality hardware and soft-ware in the technology industry, staff at Microsoft (Pvt) Limited are trained to listen to customers to use the feedback to develop new products that satisfies the needs of both current and potential customers(Boston Consulting, 2019).Talent management is nurtured through effective staff training programs, that enable employees develop the innate skills to innovate and produce unique products such as the windows operating system, Bing and other related new and breakthrough products (Boris, 2019).

On the same parlance, Toyota Company in Japan is also a global company in the automotive industry and dominating on the market as a result of its high skilled work-force.Boston Consulting(2019), holds that Toyota company dominates in Germany, Nigeria, South Africa and Zimbabwe among other countries in the global world. The success story is largely anchored on the skills and innovative character of the work-force. The company has the capacity to attract, retain, develop and support its talented workforce (Kaewsaeng, 2016).

In all essence, strategic management is broadly pronounced by companies in the global world, but there is paucity in literature regarding companies operating in the textile industry. Gaps and unanswered questions remain on discussions of impact of strategic talent management on performance of the Textile Industry in developing countries given the complexity and challenges that are involved (Lanvin, 2017).

Regionally, in Africa, Kagwiria, etal.(2017) carried out a study in Kenya,to find out the role of strategic talent management on performance of organizations.The study results (Kagwiria Lyria, 2017) indicated that there was a positive relationship between organizational performance and strategic talent management.Organizations that were facing the struggle to retain skilled staff,reported poor results than those that were attracting and retaining skilled staff.A similar study had been carried out by Price Water House (2012),to establish the status of talent management in the African region. The study involved twenty(20) countries in the Eastern and Southern African region and the main findings were that companies in Africa were increasingly becoming weaker, owing to loss of skilled staff migrating to Europe, United States and Asian countries. The Chief Executive Officers of top companies in Africa are faced with the struggle to retain skilled staff owing to global competition shocks. Kagwiria, etal. (2017), further notes that companies in Kenya were getting exposed to the global challenges of attracting skilled staff in a highly competitive environment.

Nana, (2018) carried a study of talent management in Ghana`s well established companies, and establish that professionals were migrating abroad in search of lucrative positions in oil-boom industries in the Gulf regions. The African region is experiencing talent scarcity, as a result of global competition to attract and retain highly skilled personnel (Nana, 2018).Boston Consulting(2019), confirms that strategic talent management, contributes to organizational performance, but the struggle is on the ability of organizations to attract and retain skilled personnel with talent to work for organizations. Gaps and unanswered questions exist on the impact of strategic talent management in the textile industry.

In Zimbabwe; Mutambara and Mutambara (2012) carried out a study of talent management in the humanitarian organizations operating in Zimbabwe and found out the importance of strategic talent management is heavily emphasized. The study analyses the challenges of talent management in Non-Governmental Organizations (NGOs) to establish if there was a link between level of talent management and employee commitment or engagement. The study used a qualitative approach and found out that the majority of Non-Governmental Organizations involved in the study, lacked the ideal understanding of strategic talent management cues. Staff training was weak and managers were not committed to talent management training programs. Hence staff retention and staff maintenance was largely weak. The implication of the results open a gap for the current study to establish the impact of talent management  motivating the management of organizations in Zimbabwe, to appreciate the need for talent management in organizations. The study results produced by Mutambara and Mutambara showed, that the majority of management in the non-governmental organizations were not using bench-marking techniques to appreciate the need to improve talent in organizations because they lacked information on its impact on performance. In addition, this study opened gaps for a scholarly review to establish insights into the importance of talent attraction and talented retention in organizations. In the same vein, Kagwira, etal. (2017) have established that the practices of talent attraction, talent retention, talent development and knowledge transfer, are wide and diverse, and are on a company based, or industry based and thus highlighting this fact that research in the area should be ongoing (Price Water House, 2012 ;Kaewsaeng, 2016;Abbas, 2018).

In light of the above background, the deteriorating performance of the manufacturing industry in Zimbabwe motivated this study to focus on impact of leadership  on talent management strategies, to improve performance of the manufacturing sector in Harare.

RESEARCH DESIGN

Scope of the study

Literature sources have established the importance of leadership in nurturing and capturing talents of employees in organizations to motivate high performance (Hefertz, 2017;Mueller, 2022;Consulting, 2019).The practices of leadership skill form the basis in which employee talents can be harnessed to produce innovative products to motivate high competitiveness of organizations,but however,there is a main study-gap on the capacity of the leadership ability to capture the right talents, and to configure the correct mixture of talents to achieve the set goals (Fiedler, 1967).Leaders with the capacity to adapt and execute, win the favour of skilled and talented employees in organizations, but in Zimbabwe, the manufacturing is deteriorating in terms of performance, suggesting unanswered questions on impact of leadership performance and talent management strategies. The study focused on the following hypotheses:

Study hypotheses

1. H₀₁ Leadership does not have a significant impact on employee talent identification to motivate performance in the manufacturing sector in Harare.
2. H₀₂Leadership does not have a significant impact on employee talent utilization to motivate performance in the manufacturing sector in Harare.
3. H₀₃ Leadership does not have a significant impact on employee talent commitment to motivate performance in the manufacturing sector in Harare.
4. H₀₄ Leadership does not have a significant impact on talented employeeloyalty to motivate performance of the manufacturing sector in Harare.

To measure the impact of leadership(_add code IV) on talent management strategies (DV) to motivate performance of the manufacturing sector in Harare, the study used the Likert scale numbered 0 to 5. See the details below.

Key

The Likert scale represents the degree of impact of leadership on talent management strategies to motivate performance of the manufacturing sector in Harare. The structured questionnaire required participants to rate the statements as defined by using the ratings as shown above of which 0 implies no relevance, whilst 5 represents the highest level of relevance.  The feedback from respondents were posted to SPSS(version 26) for analysis and presented in 3.3.

SAMPLE AND PROCEDURES

A sample of 10 listed companies on the Zimbabwe Stock Exchange (ZSE)(is that all or randomly selected) in the manufacturing sector was used to establish the results. The study was quantitative research design and a computer software (SPSS) version 26 was used to perform the statistical calculations required to produce (Creswell, 2020). A total of 100 questionnaires were posted online to targeted participants of the study. The Cronbach`s Alpha coefficients was used to test consistency of the instruments. Factor analysis was deployed to measure validity of data (Kapoor, 2017).To test the study hypotheses, the study deployed multiple regression to determine the relationship that exist between the independent variable (IV) (Leadership) and the dependent variable (DV) (Talent Management).The major feature of multiple regression is to determine whether a group of variables when put together would predict the given dependent variable (Bent, 2019). To achieve this objective, the following linear regression model was used to fit the data:

Y=β0+ β1×1+ β2x 2+ β3×3+ β4×4+e

Key

IV –Independent Variable

DV: Dependent Variable

X₁=Talent identification (IV)

X₂ =Talent utilization (IV)

X₃ = Talent commitment(IV)

X₄= Employee loyalty(IV) Y= Performance of manufacturing sector (DV)

β_{0 is} the constant which is the value of the depended variable when all the independent variables are 0.

Β₁;i = 1,2,3,4 is the regression of coefficients that are measured to establish the change if induced by X_1: 1,2,3,4, on Y. e= is the error term.

Multiple regression analysis was deployed on each hypothesis to establish if the individual hypothesis are statistically supported or not at 95 % confidence level (Saunders, 2015). The T-distribution was used to judge the significance of the regression coefficient, and to test whether the change in the independent variables (Talent identification, Talent utilization, Talent commitment, and employee loyalty) would influence the dependent variable, or would be statistically significant at 95% confidence level.

The Pearson Bi-variate correlation coefficient was used to test the strength of the relationship that exist between the independent variables and the dependent variables (Saunders, 2015). The Pearson correlation coefficient was used to measure the relatedness of the two variables. The coefficient of correlation (r) determines the degree of strength of the relationship, and the value that ranges between -1 and 1.A value of 0 means that there is no relationship at all, and a value of 1 implies that a strong relationship exist between the variables. If the value (r) is greater than 0.3 and less than 0.5, then the relationship is moderate. If the value (r) is less than 0.3 then the relationship is weak (Creswell, 2020).

In order to test for normality of the data, One-Sample Kolmogorov-Smirnov test for the dependent variable was conducted. This non-parametric significance test is a favoured test since the research situation calls for a comparison of observed datasets distribution (Creswell, 2020). The One-Sample Kolmogorov-Smirnov test was carried out to test whether the distribution of data was independent of the arbitrary computational choices.

The Analysis of Variance (ANOVA) was deployed as part of inferential statistics to provide information about levels of variability within the regression model, thus forming the basis for a test of significance (Gorman, 2015). Through the ANOVA technique, one can investigate any factors which are hypothesized, or said to be influencing the dependent variable.

To test for the significance of the combined impact of the independent variables namely: Talent identification, Talent utilization, Talent commitment and employee loyalty, the ANOVA test, was robust against some deviations from the assumption in parametric analysis.

An F statistic is useful in ANOVA and was used to assess whether the expected values of quantitative variables within the several predefined groups differ from each other. The F statistics tends to be greater when the null hypotheses of independence are not true. P Values of less than 0.05 indicates that the F statistics is high and that the null hypothesis needs to be rejected.

MAIN RESULTS

Determining how well the model fits

The following table provides the R, R² and the adjusted R² and the standard error of the estimate, which can be used to fit the data:

Table 3.1: Model Summary

Predictors:(Constant), Employee Identification, Employee Satisfaction, Employee Commitment, Employee Loyalty

Source: Survey 2022

Table 3.1 shows the results for model fit. The study results show a value (R) of 0.750^a indicating a good level of prediction. The R² value of 0.621 shows that the independent variables explain 62.2% of the variability of the dependent variable (performance). This result reveals that any positive change in independent variables (Employee Identification, Employee Satisfaction, Employee Commitment, Employee Loyalty) explains 62.2 % of the variability of the dependent variable (performance).

Table 3.2: Statistical significance

The F-ratio in ANOVA table 3.2,was used to test whether the overall regression model is a good fit for the data. ANOVA^a

Source: survey 2022

a. Dependent Variable: Performance

b. Predictors:(Constant):Employee Indentification, Employee Satisfaction, Employee Commitment, Employee Loyalty

The results show that the independent variables statistically siginificantly predict the dependent variable, F(4,154) =1844,p<.0005 (i.e..the regression model is a good fit of the data).

The regression equation is as follows:

Y= β₀ +β₁x₁+β₂x₂+β₃x₃+β₄x₄+ β₅x₅₊ e

Y= Organization Performance (Dependent Variable)

β_0; Intercept

β_i; where i= 1, 2,3,4,5 = Coefficients of the Independent Variables

X_i where i=, 1,2,3,4,5 = The independent variables (Employee Identification, Employee Satisfaction, Employee Commitment and Employee Loyalty)

e = Error term which is assumed to be normally distributed with mean zero constant variance.

The general form of the equation to predict performance from Employee Indentification, Employee Satisfaction, Employee Commitment and Employee Loyalty is:

Predicted performance =95.324 +(0.184 x Employee Indentification) + (0.321 x Employee Satisfaction)+(0.172 x Employee Commitment) +(12.782 x Employee Loyalty) (See the table below)

This is obtained from the coefficients table 3.3:

Table 3.3: Estimated model coefficients

Source: Survey 2022

Dependent Variable: Performance.

Table 4.2.4 shows the results of a multiple regression run to predict performance of leadership from Employee Identification, Employee Satisfaction, Employee Commitment and Employee Loyalty. The variables statistically significantly predicted performance, F(4,154) =1844,p<.0005, R²=6. 22.All four variably added statistically significantly to the prediction P<0.05.

The study findings showed a great deal of influence of all the four variables to performance. The independent variables were good joint explanatory variables /determinants for organization performance (F=1844, P Value =0.000). The study found that there was 62.2% of corresponding change in the organization performance for every change in all the four predictor variables jointly. In table 3.3 An ANOVA indicated that Employee Identification, Employee Satisfaction, Employee Commitment and Employee Loyalty was significant (P<0.05) and explained performance of manufacturing sector in Harare.:

Y= β₀ +β₁x₁+β₂x₂+β₃x₃+β₄x₄+e

The assumption in this case when using variance is that:

H_0; β₁ =β₂=β₃=β₄= 0

H₁: At least one of the β is not zero

The P-value = 0.000 implied that reject the null hypothesis and accept that at least one of β≠0

 MAIN CONCLUSIONS AND RECOMMENDATIONS

The conclusion the study was that leadership practices had a significant relationship with talent management strategies to motivate performance of the manufacturing sector in Harare. The study results indicated that components of leadership practices which involves employee talent identification, employee talent satisfaction, employee talent commitment, and employee loyalty had a significant contribution to performance of manufacturing companies in Harare. The study results confirmed that the role of leadership is to manage employee talents in the manufacturing sector to adopt practices of strategic talent management to motivates performance of organizations. The study presented a well-argued position with regards to the contribution of impact of leadership on talent management variables to motivate high performance of the manufacturing sector in Harare, Zimbabwe.

The study also established the hierarchy of impact of the four variables namely: Employee Satisfaction skill topped the line, followed by employee loyalty skill, then employee commitment and finally employee identification in that order. This hierarchy form the basis in which organisation are recommended to design training programs for the leadership to become skilled to improve performance of manufacturing companies. From these findings, the gap on the impact of leadership on talent management to motivate performance of the manufacturing sector was empirically filled through the study findings. The study results demonstrated that the poor performance of the manufacturing sector in Harare could be largely be attributed to weak leadership in talent management to motivate high performance.

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