1. !
Talent Management
A case study of the constitutive power of LMX relationships in
capitalising talents into performance
Bachelor Thesis
by Malene Villadsen
Marketing and Management Communication
Department of Business Communication
Aarhus University, Business and Social Sciences (Aarhus BSS)
2. Bachelor Thesis
Malene Villadsen Talent Management 5 May 2015
BA in Marketing and Management Communication
Aarhus University, School of Business and Social Sciences (Aarhus BSS)
SUMMARY
The fast-changing business environment and increasing global competition of today, has made human
capital the number one competitive advantage for businesses. In this realisation, Talent Management
(TM) “has become a fashion trend in modern organisations” (Ariss 2014: 3). However, little
agreement has jet appeared as to the definition and strategy implications of this concept, neither
among practitioners nor academic scholars. Following Buckingham and Vosburgh (2001 cited in
Dries et al. 2014: 16), this thesis defines TM inclusively as “the art of recognising where each
employee’s areas of natural talent lie, and figuring out how to help each employee develop the job-
specific skills and knowledge to turn those talents into real performance […] elevating each person’s
performance to its highest possible levels, given the individual’s natural talents”. In this definition,
TM is conceptualised as relational, as uncovering the talent of each employee and turning it into real
performance becomes a negotiated process between leader and member, making leader-member
exchange communication essential for effective TM, i.e. for capitalisation of talents.
Drawing on a case study and the kind collaboration of MAN Diesel & Turbo, this thesis therefore
investigates the role of leader-member communication in TM and more specifically 1) How
employees at MAN Diesel & Turbo make sense of their leader-member relationships and 2) How
members at MAN Diesel and Turbo understand the link between communicative practices and
leader-member relationships. The thesis takes the philosophical perspective of social
constructionism, seeing the world as a constructed reality, continuously negotiated and re-negotiated
in interactions (Burr 2001; Daymon and Immy 2011; Bryman 2008), and therefore conducts a
qualitative analysis of interviews conducted with members at MAN Diesel & Turbo.
The research findings suggests that Graen and colleagues’ (1995; 1887) 7-item LMX is a too simple
measurement for determining leader-member exchange quality, as these relations rather than being
progressively stabile are continuous by nature. As such, a narrative approach to leader-member
relationships provides valuable insight into how members make sense of and re-construct exchange
experiences in communication, talking them into existence. The study suggests that high vs. low-
quality exchange relationships have a significant effect on employee motivation, satisfaction,
performance levels and ultimately organisational capitalisation of talents. Thus, in order to build
effective talent management, today’s leader fronts the task of working out the meanings for LMX in
communication with each member individually (Fairhurst 2007B).
Without neglecting the argument that exchanges are relative, the thesis shows evidence for three
themes of communicative practices that on a cumulative level seem to be constitutive of high-quality
exchanges. These include 1) high communication frequency as a means for providing support 2)
authoritative, but open communication causes efficiency and 3) recognitive and issues-oriented
communication builds high-quality exchanges. Hereby, the thesis provides a first hand guideline for
TM practitioners, while emphasising that the themes are not prescriptive of effective TM and that
rather than searching for a “best practice” template, practitioners should take a “best fit” approach to
TM, recognising its continuous nature.
Key words: Talent Management – talent – LMX relationship – sensemaking – narrative analysis –
theoretical thematic analysis – social re-negotiation – communication practices
3. Bachelor Thesis
Malene Villadsen Talent Management 5 May 2015
BA in Marketing and Management Communication
Aarhus University, School of Business and Social Sciences (Aarhus BSS)
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Malene Villadsen Talent Management 5 May 2015
BA in Marketing and Management Communication
Aarhus University, School of Business and Social Sciences (Aarhus BSS)
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Malene Villadsen Talent Management 5 May 2015
BA in Marketing and Management Communication
Aarhus University, School of Business and Social Sciences (Aarhus BSS)
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Malene Villadsen Talent Management 5 May 2015
BA in Marketing and Management Communication
Aarhus University, School of Business and Social Sciences (Aarhus BSS)
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