Australian Journal of Basic and Applied Sciences, 9(26) Special 2015, Pages: 16-25

ISSN:1991-8178

Australian Journal of Basic and Applied Sciences

Journal home page: www.ajbasweb.com

‘A Research on Talent Management Practices as a Strategy to Influence Employee

Engagement and its Affect the Organization Performance’
1
John Musong Tusang and 2Dewi Tajuddin

1
Faculty of Business Management, UiTM Sabah, 88997 Kota Kinabalu, Malaysia
2
Faculty of Business Management, UiTM Sabah, 88997 Kota Kinabalu, Malaysia

ARTICLE INFO ABSTRACT

Article history: Purpose - Talent management has been recognized to be a significant and
Received 13 June 2015 extraordinary element in Malaysia Small & Medium Enterprise (SME) in achieving
Accepted 5 August 2015 their organization vision and mission. In order to withstand and multiply their business
Available online 12 August 2015 operation nationwide and globally, an organizations have to upgrade their approaches to
talent management essentially and how it dynamically influence employee engagement
Keywords: whilst significantly affect the organization performance. The human capital situation in
Talent Management Practices, Malaysia is not improving perhaps at this stage as Malaysia faces a difficult situation in
Employee Engagement, Organization retaining qualified talent in every sector especially in SMEs. Malaysia is losing talented
Performance, Small & Medium employees as some of the graduates preferred to work abroad. Malaysia now identifies
Enterprise talent management as a critical drive to this nation as a competitive status of a high
economic income. Objective - Therefore, the study will attempts to explore and
examine talent management practices as a strategy to influence employee engagement
and affect the performance of organization in SMEs in Malaysia. To realize this
purpose, three variables, namely Talent Management Practices (TMP), Employee
Engagement (EE) and Organization Performance (OP) are examined against seven
indicators of Malaysia SMEs talents by testifying their direct and indirect relationships.
This research also attempts to fulfill five research objectives and research questions by
employing the Structural Equation Modelling (SEM). Results - The five hypothesis of
the study revealed that there are significant positive relationship between Talent
Management Practices (TMP), Employee Engagement (EE) and Organization
Performance (OP) in Malaysia SMEs. Conclusion - The appropriate finding generate
through the research exploring the understanding of talent management practices as a
strategy to influence employee engagement whilst significantly affecting the
performance in the organizations.

© 2015 AENSI Publisher All rights reserved.

To Cite This Article: John Musong Tusang and Dewi Tajuddin., „A Research on Talent Management Practices as a Strategy to Influence
Employee Engagement and its Affect the Organization Performance‟. Aust. J. Basic & Appl. Sci., 9(26): 16-25, 2015

INTRODUCTION Malaysia but only 30 percent were interested in

The fundamental and critical challenge of
Malaysia nowadays is to retain its highly skilled
citizen. Malaysia will experience a precarious gap of
talented professional to compete with global talents
as an implications of more Malaysian working
abroad. The Ten Malaysia Plan 2011-2015 has
discovered that Malaysia experiences significant
shortage of skilled manpower. The report shows that
more than 700,000 Malaysians are currently working
abroad and this phenomena displays that the nation is
in risk of having international and comprehensive
talent. According to Poorhosseinzadeh (2012), this
citizen who have studied in developed nations
refused to return home. In a survey conducted by the
World Bank (2011), a number of Malaysians
demonstrated a strong sense of attachment to
returning home. Due to that, the increasing number
of highly skilled workers and educated Malaysians
moving overseas have resulted in the talent crisis.
Malaysia aspires to achieve among the top 20 in
the Global Talent Index by the year 2020. Due to this
aspiration, the Prime Minister, Dato‟ Sri Mohd Najib
Tun Razak aims to expect 37 percent of Malaysians
will be recognized as high skill workers by the year
2015 and 3.2 million by the year 2020. According to
Mckinsey (2007), talent was a key for the
organizational growth of Malaysia in the next 20
years. Therefore, the governments and business
practitioners today need to retain their most talented
workers to leverage their competitive advantage and
reduce talent shortage.
Talent management has now been acknowledged
as a precarious solution for the Government

Corresponding Author: John Musong Tusang, Faculty of Business Management, UiTM Sabah, 88997 Kota Kinabalu,
Malaysia
E-mail: johnjonathan1875@gmail.com
17 John Musong Tusang and Dewi Tajuddin, 2015
Australian Journal of Basic and Applied Sciences, 9(26) Special 2015, Pages: 16-25
Transformation Programme (GTP), Economic
Transformation Programme (ETP) and the Ten
Malaysia Plan (2011-2015) to grow Malaysia
towards developing status as a high income economy
and excellently fulfill the Vision 2020. In tapping the
highly talented local talent, Malaysians need to
synergize the knowledge, skill and ability to achieve
the ETP in developing professional quality
workforce and reducing dependency on foreign
labor. Therefore, the Small & Medium Enterprises
(SMEs) should be given the opportunity to develop
their own capabilities and competences by tapping
highly skill talent with global vision (Isa, 2014).
SMEs need to have a pool of potential talent to
continue generating value creation for professional
competitiveness besides the Government-Link-
Companies (GLC) in Malaysia (Isa, 2014).
Agreeing to (Schaufeli, 2013), talent that retain
high level of commitment and engagement will
benefit the organization. Thus, organizations need
employees who are psychologically associated to
their work, willing and able to invest themselves
fully in their roles, and proactive and committed to
high performance standards (J. a. Gruman & Saks,
2011; Kataria, Garg, & Rastogi, 2013).
Organizations need employees who are feel energetic
and dedicated, engaged with their work (T. Dewi,
2015, Isa, 2014; Kataria et al., 2013; Schaufeli,
2013).
Denoting to Isa (2014), engaged employee is a
worker who is fully committed and passionate about
their work, and engagement was essential
demarcated as a distinctive human aspiration to
contribute something of value in workplace.
Employee engagement is viewed as an important
paradigm because it is has been link to growing the
retention of top talent as an consequence of the talent
management practices (Alias, Noor, & Hassan, 2014;
Memon, Salleh, Noor, Baharom, & Harun, 2014;
Rugimbana, 2011). There is a positive relationship
between engagement and organization performance
as replicated in revenue growth, productivity,
profitability, customer satisfaction, customer loyalty,
employee retention, and safety (Isa, 2014; Schaufeli,
2013). This factor is supported by Suharti &
Sulliyanto (2012); Mellahi (2011), revealed that,
employee engagement is significantly has positive
advantage on the organization and becomes the
important element for an organization success.
Employees who have energetic engagement
contribution will increase the performance
satisfaction of employees whilst motivate employees
working harder than the others. Thus, highly
employee engagement level in an organization is
believed to cultivate the talents and individual
performance which in turn impacting the
organization performance.
Talent Management in SMEs in Malaysia:
Small and medium-sized enterprises (SMEs)
have been recognized as one of the growing
instruments for various countries in the world, since
SMEs make up over 90 percent of all enterprises
(Zakaria, Zainal, & Mohd Nasurdin, 2011).
Academically, SMEs defined differently at each
country in the world. For instance, in developed
countries such as at European Union the SMEs are
the enterprise that employ less than 500 employees
(Che Senik & Mat Isa, 2010). However, in Malaysia,
the SMEs are defined as follows: Firm in
manufacturing sector has sales turnover less than
RM25 million or full-time employees less than 150;
Firm in services and other sectors has sales turnover
less than RM5 million or full-time employees less
than 50. According to (Zakaria et al., 2011), all
countries over the world recognized that SMEs are
known as key business segment which means SMEs
are predominantly as collaboration to the larger
enterprises in leveraging and expanding businesses
whilst sustaining economic growth.
According to (Che Senik & Mat Isa, 2010), the
most influential factor that drive Malaysian SMEs to
internationalization is networking which related
extremely to skilled, multicultural and multilingual
workforce. Malaysia is one of developing country
that persistence and committed to encourage SME to
become international player. Lately, there are 518,
996 SME representing 99.2 % of total business
establishments in Malaysia. This shows that
Malaysia economy dependable on SME (Che Senik
& Mat Isa, 2010). Therefore, SMEs are expected in
performing momentous role to develop the nation‟s
economy under New Economic Model (NEM) and
the Tenth Malaysia Plan (10MP), focusing in
inspiring innovation and contributing to first mover
advantages strategy (Zakaria et al., 2011). According
to Department of Statistics, 2011, there were 645,136
SMEs operating in Malaysia representing 97.3% of
total business establishments which was 662,939.
SMEs have been performing well registering average
annual growth of SMEs of 6.8 % in the period of
2004-2010. Since 2004, the value added growth of
SMEs has consistently outperformed the growth of
the overall GDP (4.9% p.a.).
Human resource development becoming the
vital aspect in enriching and an enhancement of skill
and expertise of SMEs‟ workforce. The direction of
training and development for producing highly skill
talent is a fundamental progress that promote skills
development among employees, entrepreneurship
knowledge, leadership skills, financial knowledge
and managerial capabilities (Gunto & Alias, 2013).
However, according to Kehinde (2012), organization
such as SME should separate between their talent
management program and the total human resource
management style whereby talent management
should be result oriented and not another human
resource management style of the organization. Most
18 John Musong Tusang and Dewi Tajuddin, 2015
Australian Journal of Basic and Applied Sciences, 9(26) Special 2015, Pages: 16-25
small and medium enterprises have not adopted the
basic talent management strategy in developing the
skill and ability of potential talent within the
organization (Kehinde, 2012). The study revealed
that, talent management promotes workforce
efficiency and productivity in work organization and
impacting the overall organization performance. It is
also become the pivotal to the survivor of the
organization profitability in the modern global and
highly competitive business scenario nowadays
(Kehinde, 2012).
Problem Statement:
In Malaysia talent management is an issue that
has caught the attention of many organization due to
changeability in its characterizations and
methodologies to describe talent management
(Sumardi & Othman, 2009). Therefore, Sumardi &
Othman (2009) carried a research on talent
management in Malaysia in 2009 through examined
three companies by conducted interviews to
investigate how Malaysian companies practice talent
management in their organization. Based on the
study, there are three essential activities for talent
management program which are focusing onto
managing the top performers, emphasizing on
leadership development and activities related to
succession planning towards senior managerial
positions. In all of the program talent management
involves coaching and mentoring. The
implementation of talent pool differentiate the three
companies approaches on talent management
whereby, one of the firms had a precise talent pool
program purposely to develop their future talents but
the others haven‟t formed a formal talent pool for
future talent (Sumardi & Othman, 2009).
A study on the implementation of talent
management practices at Malaysian companies was
conducted by Mustafa Kamil, Abdul Hamid, Hashim,
& Omar (2011), whereby the research was carried
out using method of interview among selected human
resources practitioners of six Malaysian companies.
They found out that talent management is considered
as a strategy of an organization to retain employees.
The study revealed that the engagement and retention
of talented employees are required on leveraging an
organization to cultivate success and enhance
performance. Ensuring the sustainability of
organizational success, it‟s required to have a right
employees to develop competitive advantage. The
vital result of this study is creating an opportunity
and strategy forward to develop comprehensive
talent management strategy. Therefore, the
identification and development of talent management
strategy would promoting advantage for the
organization and its employees (Mustafa Kamil et
al., 2011).
In viewing of these findings (Golshan & Omar,
2011; Gunto & Alias, 2013; Isa, 2014; Mustafa
Kamil et al., 2011; Sumardi & Othman, 2009),
though the nature of this relationship is motivating
and exciting, there is no study has analyzed the
relationship between the three (3) variables, namely
Talent Management Practices (TMP), Employee
Engagement (EE) and Organization Performance
(OP) in Asian‟s setting and particularly in Malaysia‟s
Small & Medium Enterprises (SME). Hereafter, new
chapter discloses whereby engagement of employee
talents becomes critical to the organization
performance and economic. Therefore, scholars and
researchers believe the needs to focus on talent
management practices as a strategy to influence
employee engagement and, in turn employee
engagement impacting the talent management which
both affect the organization performances
significantly. This paper seeks to address the gap in
knowledge field by determining the relationship
between Talent Management Practices, Employee
Engagement and Organization Performance in the
selected SME organizations in Sabah, Malaysia.
Research Objective And Hypothesis:
Therefore, the study will attempts to examine
talent management practices as a strategy to
influence employee engagement and affect the
performance of organization. To realize this purpose,
three variables, namely Talent Management Practices
(TMP), Employee Engagement (EE) and
Organization Performance (OP) are examined against
seven (7) indicators of Malaysia SME talents by
testifying their direct and indirect relationships. This
research also attempts to fulfill five research
objectives and research questions by employing the
Structural Equation Modelling (SEM). The five
hypothesis of the study revealed that there are
significant positive relationship between Talent
Management Practices (TMP), Employee
Engagement (EE) and Organization Performance
(OP) in Malaysia SMEs. The appropriate finding
generate through the research exploring the
understanding of talent management practices as a
strategy to influence employee engagement whilst
significantly affecting the performance in the
organizations. The respondents for the study are
drawn from SMEs employee in Sabah.
The objectives of this study is to examine the
relationship between Talent Management Practices
(TMP), Employee Engagement (EE) and
Organization Performance (OP).
Specifically, this study attempts to:
1. Examine the relationship between Talent
Management Practices (TMP), Employee
Engagement (EE) and Organization Performance
(OP) in the Small & Medium Enterprise in Malaysia.
2. Examine the relationship between Talent
Management Practices (TMP) and Employee
Engagement (EE).
19 John Musong Tusang and Dewi Tajuddin, 2015
Australian Journal of Basic and Applied Sciences, 9(26) Special 2015, Pages: 16-25
3. Examine the relationship between Talent
Management Practices (TMP) and Organization
Performance (OP).
4. Examine the relationship between Employee
Engagement (EE) and Organization Performance
(OP).
5. Ascertain the mediating effect of Employee
Engagement (EE) by examining its relationship with
Talent Management Practices (TMP) and
Organization Performance (OP).
This study attempts to test the following hypothesis:
1. H1: There is a positive relationship between
Talent Management Practices (TMP), Employee
Engagement (EE) and Organization Performance
(OP) in the Small & Medium Enterprise in Malaysia.
2. H2: There is a positive relationship between
Talent Management Practices (TMP) and Employee
Engagement (EE).
3. H3: There is a positive relationship between
Talent Management Practices (TMP) and
Organization Performance (OP).
4. H4: There is a positive relationship between
Employee Engagement (EE) and Organization
Performance (OP).
5. H5: Employee Engagement (EE) mediates the
relationship between Talent Management Practices
(TMP) and Organization Performance (OP).
Eventually, this study attempts to testify that the
relationship between Talent Management Practices
(TMP) and Organization Performance (OP) is
mediated by Employee Engagement (EE); hence,
proposing talent management to become a strategy to
influence employee engagement and its affect the
organization performance in SME in Malaysia.
Research Question:
The purpose of the study is to investigate the
relationship among Talent Management Practices
(Independent Variable), Employee Engagement
(Mediated Variable) and Organization Performance
(Dependent Variable) which mediated by Employee
Engagement. It seeks to find answer to the following:
1. To what extend Talent Management Practices
(TMP) influence Employee Engagement (EE) and
affect the Organization Performance (OP) of SME in
Malaysia?
2. How does Talent Management Practices
influence the Employee Engagement (EE)?
3. How does Talent Management Practices
influence the Organization Performance (OP)?
4. How does Employee Engagement (EE) affect
the Organization Performance (OP)?
5. To what extend does Employee Engagement
(EE) mediating the relationship between Talent
Management Practices (TMP) and Organization
Performance (OP)?
Literature Review:
In this chapter, a literature review in provision of
the study will be carried out in the following three
capacities: Utilizing talent management practices to
become a business strategy based on the competency
model which focusing in three main indicators
namely performance management, training and
development and talent review and succession
planning; The influence of employee engagement
concerning to job engagement and organization
engagement; and Organization performance related
to high talent performance. The literature covers only
the most relevant aspects of talent management
practices, employee engagement and organization
performance pertaining to the small and medium
enterprise in order to provide an overview of the
issues addressed.
Talent Management Practices:
The existence of talent management system is
recognized in most organization preferably it means
to individual star performers and mentoring
promising employees in an organization. This talent
is used synonymously with people such as individual
knowledge, skills, attitudes or competence. The
increase in competitive advantage allowing
organization attaining on talent management as a
critical resources and become more important
because of growing recognition that it‟s help to drive
organization performance. Therefore, nowadays the
organization must has the ability to attract and retain
talent fostering the right employee because it is one
of the key issues for human resource managers and
their organization across the globe (Duren, 2010;
Zhang, S et al, 2012, T. Dewi, 2014).
Focusing on nurturing and developing talent of
the human capital in SMEs will play a crucial role in
order to strive for success and sustain strong
economic growth (Isa, Aerni, 2014) and as an
important driver for company growth and source of
competitive advantage (Syed Abd Nasir, Syed Jamal,
Hassan, Roshidi, 2012). Among the highly crucial
attraction of large talent is in the financial industry
whereby who have top cream of talent of industry is
successful in achieving the goals and objectives of
the organization (Aned O., Al Mutairi, Mohamed
Zainal, Siti Rohaida, 2013). Therefore, all
organization need to boost up the implementation of
talent management practices by nurturing higher
level of success and sustainability, developing
powerful resources, building valuable people,
implementation of strategic imperative, developing
of skills and increased responsibility to predict
employee future potential performance and talent
needed (Mustafa Kamil, 2011).
The main challenge in 20th century for
organization is to attract the people whose can
achieve their potential and meet their personal
aspiration within the company ((Rukkhum, 2010)
whereby, by 2016, more than 70 million baby
boomers will retire and be replaced by the invasion
of millennial generation, those born after 1982. They
are exceedingly educated generation born in the
20 John Musong Tusang and Dewi Tajuddin, 2015
Australian Journal of Basic and Applied Sciences, 9(26) Special 2015, Pages: 16-25
cutting-edge crisis world becomes the talent for the
organization and if organization handles them
inappropriately will lead to lack of commitment and
intentionally leaving the organization (Golshan &
Omar, 2011). Therefore, the talent marketplace is
now becoming more competitive than ever before
(Wan Azmi, W. N., 2011) causing the organization
prioritize talent as a star (Rukkhum, 2010) and focus
on growing the talent within the organization and
maintaining the status as the star (Isa, 2014)
capturing high talent performance for future key
expert.
Globally, talent is considered as a valuable asset
to the organization and becomes a critical resources
for organization to attain competitive advantage.
There were many large organizations suffering from
chronic shortage of talented employees, therefore, in
recent year‟s organization extremely putting priority
on managing talent for global competition and
allowing competitive advantage to survive
(Poorhosseinzadeh, Mahan, Mustafa Kamil, B.A et
al, 2013; Zhang, S. et al, 2012; Pruis, E., 2011).
Nevertheless, the talent management issues are
unique and non-imitable competitive advantage
whereby different organizations with various
strategies implement talent management in an
acceptable approach leading to successful
organization (Poorhosseinzadeh, Mahan, 2013).
An effectively implemented Talent Management
Strategy enhances Employee Engagement
(Dhanalakshmi, 2014) which evolve the doable
indicators measured through talent acquisition, talent
performance management, training & development
and talent review & succession planning (Golshan &
Omar, 2011) . The effect of Employee Engagement
through job engagement and organization
engagement (Andrew & Sofian, 2012) in turn is
associated with improved Organization Performance
which measured by increase of talent performance
(Dhanalakshmi, 2014). Therefore, when an employee
is highly engaged, the more likely he or she involve
proactively to develop the organization, thereby
potentially influencing such variables as high
performers talent, sales and profitability
(Dhanalakshmi, 2014).
Talent Management Practices and Organization
Performance have a significant relationship
(Kehinde, 2012; Sara & Rodríguez, 2009). There is
the positive impact of talent management on
organizational overall performance and analyses
revealed that talent management has impact on the
performance of the multinational and the national
firm but the small and medium scale firms have not
been gaining from this new technique (Kehinde,
2012). Therefore, there is a need to further study on
the consequences of implementation of Talent
Management Practices and Organization
Performance in the direction of small and medium
organization (Kehinde, 2012).
Talent that completely engaged in the
organization will perform beyond and help the
company succeed (Rukkhum, 2010). Employee
Engagement has been associated with a number of
important organizational performances, which
directly related to Talent Management Practices such
as ease of selection, recruitment, retention, higher
employee productivity, revenue growth and profit
margins (Dhanalakshmi, 2014). According to
(Markos & Sridevi, 2010, T. Dewi, 2014), employee
engagement is stronger predictor of positive
organizational performance clearly showing the two-
way relationship between employer and employee
generating to emotional attached to the organization.
The outcome is engaged employees contribute highly
involvement in the employment with great
enthusiasm for the development of the organization
and the success of the employer going beyond the
employment pledged agreement. Therefore, the
companies should invest in employee engagement
because it is interlinked significantly with important
business outcomes mainly on employee retention,
productivity, profitability, customer loyalty and
safety. The prolonged outcome is the employees that
engaged more are contributing to higher revenue
growth and even can exceed to double-digit growth
for their employer. The more engaged employees are,
the more it contribute to positive customer
satisfaction (Markos & Sridevi, 2010; Coffman,
2000; Ellis and Sorensen, 2007; Towers Perrin
Talent Report, 2003; Hewitt Associates, 2004;
Heintzman and Marson, 2005; Coffman and
Gonzalez-Molina, 2002).
Employee Engagement:
Employee engagement has become a very
important aspect in Human Resource Management
(HRM) functions and purposes (Alias et al., 2014).
Employee engagement is important because those
who find meaning at work are more competent,
committed and contributing; in turn competence,
commitment and sense of contribution lead to
increased customer commitment; in turn customer
commitment; in turn customer commitment leads to
better financial results for the company (Hayat, 2014;
Orr, Sneltjes, & Dai, 2010). Employee engagement is
about the means to accomplish the organization‟s
strategic goals by edifice the conditions for
employees to flourish and for each staff member,
manager and executive to be fully shift on in their
jobs so as to distribute their best determinations in
the best attentiveness of business (Lindholm, 2013;
Siddhanta & Roy, 2010; Zakaria et al., 2011).
According to Albdour & Altarawneh (2014),
employee engagement and employee-organizational
commitments are precarious organizational
necessities as organizations surface globalization and
recuperating from global downturn and stagnation.
Additionally, many researchers and scholars
recognized and given interest in research areas of
21 John Musong Tusang and Dewi Tajuddin, 2015
Australian Journal of Basic and Applied Sciences, 9(26) Special 2015, Pages: 16-25
engagement at work, employee and organizational
commitment whereby many studies have support that
the significant relationship between organizational
performance and employee engagement (Albdour &
Altarawneh, 2014; Andrew & Sofian, 2012). The
very important finding revealed that high job
engagement and organizational engagement will
have high level of affecting commitment and
normative obligation (Andrew & Sofian, 2012).
Organization Performance:
According to Kagwiria (2013), sustainability of
competitive advantage comes from talent
management practices which integrate how the
organization attracts, develops, retains, motivates,
manages, and rewards its talent. The collaboration
and collective of skills of the talent employed in an
organization comprehensively comprise the
organization‟s core capacities and capabilities.
Therefore, talent provides the potential for long term
competitive advantage (Kagwiria, 2013).
Additionally, Kagwiria (2013) revealed that there is a
positive relationship between talent management and
business strategy to obtain the success of the
organization whereby, there is a significance of talent
management incorporation with business strategy to
get organization excellence performance.
From the reviewed literature it is observed that
most of talent management studies did not directly
link talent management with the organization
performance and therefore, there is a gap to fill the
existing research gap by conducting a study locally
to determine the role of talent management on
organization performance in SMEs in Malaysia.
Talent Management as a Strategy to Influence
Employee Engagement:
Generally, the practices of talent management
and employee engagement are connected such that
talent management is essential to engaging
employees in the organization (“Study of Talent
Acquisition Practices – A Review on Global
Perspective,” 2014; Rugimbana, 2011). Therefore,
according to the study of Talent Acquisition
Practices – A Review on Global Perspective (2014),
“Employee Engagement is positive, proactive
behavior in the workplace and towards the
organization brought about by combination of
motivated, emotionally attached employees;
integrated, enlightened people management activities
and empathetic managers towards the achievement of
clearly communicated business objectives”.
Additionally, effective and efficient talent
management policies and practices can contribute to
more engaged employees and lower turnover.
Therefore, it is possible to increase employee
engagement through proactive talent management
strategy.
Talent management practices that establish
commitment to manage the human resource result in
more engaged employees and lower turnover rate.
The effective implementation of talent management
practices contribute to employee engagement (T.
Dewi, 2014, Aljanabi & Mohanachandran, 2013;
Piansoongnern, Anurit, Hohl, Chansa-ngavej, &
Bunchapattanasakda, 2007). Thus, the highly
engaged employee in an organization through the
effective talent management practices will evidently
cultivate the competitive advantage while the
effective employee engagement nurtures the
inspiration of development and learning satisfaction,
support, rewards and recognitions in their talent
management program. The value-added outcome in
winning the employees‟ heart will only benefit the
organization that implement the talent management
practices. Therefore, organizations need to rethink
their approaches to talent management and how it
affects employee engagement (Alias et al., 2014;
Aljanabi & Mohanachandran, 2013).
Talent Management Practices (Performance
Management) and Employee Engagement:
Based on competency model suggested by
(Golshan & Omar, 2011), managers should put
assurances that employees‟ development and
performance is measured based on the abilities,
capabilities and organization values. SMEs has to
inaugurate a measureable and reasonable
performance management system which focuses on
the desired result of business and make sure all the
systems designed are nondiscriminatory and rational
for the satisfaction of employee (Golshan & Omar,
2011).
Additionally, according to Aned (2013),
performance management is referred to the
employees by the management in which workforce is
evaluated according to a set benchmarking standard.
On that, assessment can diverge from goal setting to
the coaching and counseling. Therefore, applying a
continuous feedback system is necessary in an
organizations whereby, the managers should provide
quality assessment with their talents and give
constant and effective feedback for future progress
(Aned O., Mohamed Zainal, & Alya O., 2013;
Golshan & Omar, 2011).
Talent Management Practices (Training &
Development) and Employee Engagement:
Referring to the research finding (Downe, Loke,
Ho, & Adegbite Taiwo, 2012; Ministry Department,
2011; Mustafa Kamil et al., 2011), the development
of talent is essential to an organization‟s success.
Organization should relying on a talented pool to
accomplish the organizational sustainability for the
future. Therefore, aligning all the human resource
strategy implementation is essential towards taking
strategic and comprehensive business approach either
in short or long term (Gunto & Alias, 2013; Mustafa
Kamil et al., 2011). According to Tenth Malaysia
Plan (2010-2015) that tabled by Prime Minister
22 John Musong Tusang and Dewi Tajuddin, 2015
Australian Journal of Basic and Applied Sciences, 9(26) Special 2015, Pages: 16-25
Datuk Seri Najib Tun Razak, on moving forward, the
government will focus on efforts to develop non-
physical infrastructure, including human capital
development such as skills development and strong
innovation capabilities. There will be an increase of
40 percent, compared with 21.8 percent in Ninth
Malaysia Plan. The program will focus on skills
development programmes, Research & Development
activities and venture capital finding geared towards
promoting a higher level of innovation in the country
(Ministry Department, 2011).
Therefore, venturing into the globalization and
knowledge era, the organization should always
providing challenging roles and responsibilities to
their expert talents to engage them in continuous
learning curve that beneficial for both parties.
Mentoring and coaching programs becomes very
important and crucial due to its priority developing
the expertise skill and collaboration among the
employees (Golshan & Omar, 2011).
Talent Management Practices (Talent Review &
Succession Planning) and Employee Engagement:
According to the competency model suggested
by (Golshan & Omar, 2011), the organization has the
clear objective to deploy the entrepreneurship spirit
within their employees and provide them appropriate
skills and knowledge and provision to develop and
accelerate their capability to potentially reaching the
vision of the organization. Furthermore, the
continuous talent review based on competencies
cultivate the farther development of the organization
as it‟s significantly contribute to engagement of
talents. The leadership development program is also
the assessment tool that positively motivate the talent
and increase their desire achieving personal goals.
The leadership program constantly will give
maximum impact to create organization‟s value
which becomes the vital foundation for employee
engagement (Golshan & Omar, 2011).
Relationship between Talent Management Practices
and Organization Performance:
Referring to (Kehinde, 2012), talent
management has positive impact on the
organizational overall performance which impacting
on the performance of the multinational and the
national firm. However, there is still huge research
gap integrating the relationship of talent management
practice and organization performance within small
and medium scale organization. Therefore, Kehinde
(2012) suggested that talent management study
should be implement in all categories of staff within
the organization that have special talent and that
organization should discrete the study on talent
management practice with the whole human resource
management system. (Kagwiria, 2013; Kehinde,
2012). Kehinde (2012) revealed that talent
management implementation positively influence
work performance in the organization. Therefore,
there is a need focusing on organizational
development and training and development that
assist to achieve the organization‟s vision.
Relationship between Employee Engagement and
Organization Performance:
Employee engagement is significantly
interlinked with business outcomes. According to (J.
A. Gruman & Saks, 2011) there is a positive
relationship between employee engagement and
organizational performance outcomes in which
specifically integrate into employee retention,
productivity, profitability, customer loyalty and
safety (J. a. Gruman & Saks, 2010; J. A. Gruman &
Saks, 2011; Sheemun, Suhaimi, Abdullah, Rahman,
& Mat, 2013). Based on these literature reviewed (J.
a. Gruman & Saks, 2011; Sheemun et al., 2013;
Whiteoak, 2015), researched designate that the more
engaged employees are, the more likely their
employer is to surpass the industry average in its
revenue growth and positively impact the customer
satisfaction (J. A. Gruman & Saks, 2011).
Research Framework:
Based on the proceeding discussion of the
literature, the following is a proposed conceptual
framework. The research framework of this study
comprises Talent Management Practices (TMP) as
the independent variable, Employee Engagement
(EE) as the mediating variable and Organization
Performance (OP) as the dependent variable. TMP
consist of three indicators or dimensions, namely 1)
Performance Management, 2) Training &
Development, 3) Talent Review and Succession
Planning. The TMP is based on Competency Model.
Employee Engagement consists of two dimension
including 1) Job Engagement and 2) Organization
Engagement. Organization Performance (OP)
consists of two dimension, namely, 1) Employee
Productivity and, 2) Revenue Growth.
As a mediating variable, Employee Engagement
is expected to mediate the relationship between
Talent Management Practices and Organization
Performance in Small & Medium Enterprise (SME).
Conclusion:
This conceptual paper contributes to an
understanding of the impact of Talent Management
Practices and Employee Engagement on SMEs
performance generally and particularly in Malaysia.
Even though Talent Management Practices have
been considered as one of the significant factors
appear to cultivate the performance of organization,
it can be said actually most of the Malaysian SME
does not practice Talent Management Practices and
Employee Engagement effectively in their business
(Zakaria et al., 2011). Henceforth, Malaysian SMEs
have to comprehend their own capabilities,
particularly their core strengths such as the talents
and talent management practices in order to support
SMEs to be innovative and competitive.
23 John Musong Tusang and Dewi Tajuddin, 2015
Australian Journal of Basic and Applied Sciences, 9(26) Special 2015, Pages: 16-25
Fig. 1: Proposed Research Framework.
Small business are no longer competing against
same sized challengers whereby globalization has
exposed them to the wrath of big multinationals that
are hungry for growth (Hayashi & Dolan, 2013).
Therefore, in order to remain competitive, the
management of SMEs need to put more attention on
the implementation of talent management practices
which contribute to organization performance. As
mentioned by Malaysian Human Resource Minister,
Datuk Dr. S. Subramaniam, which said that, SMEs
should pay more attention to the factors of human
resource particularly the skillful workforce in
improving their productivity as well as maintaining
the existing talent. This is due to lots of small and
medium businesses which had limited expertise in
managing human resource compared to large
corporations (Bernama, 2011, April 19).
Therefore, with the inspiration on understanding
the predictors of business performance, SMEs must
realize the talent management practices that are
affecting business performance (Personal, Archive,
Ebrahim, & Lumpur, 2010). SMEs need TMP to be
practiced in their organization to facilitate goal
achievement and also significantly generate more
innovation and becomes first mover advantage in
business environment (Zakaria et al., 2011).
In conclusion, Malaysia SMEs should consider
on how to enhance the capacities and capabilities in
the area of human resource and talent development in
order to cultivate their business performance and
success (Gallato et al., 2012; Zairani & Zaimah,
2013). Moreover, SMEs also need to cooperatively
adopting and practicing continuously the best
practices of human resource system in order to
achieve competitive advantage and sustainability in
overall organization performances (Hayashi &
Dolan, 2013; Zakaria et al., 2011).
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 The National Conference for Postgraduate Research 2016, Universiti Malaysia Pahang

Review on Knowledge Management and

Employee Engagement
Sui Hai Juan*, Liu Yao, Puteri Fadzline Binti Muhamad Tamyez,

Freida Ozavize Ayodele

Faculty of Industrial Management

Universiti Malaysia Pahang, 26300
Kuantan Pahang, Malaysia
suilucy@gmail.com

Abstract—Knowledge that resides in employees has been repeatedly convinced as a paramount resource for organizational
competitive advantage. To this regards, the organization shall not just retain employees but also fully engage them, capture
their minds and hearts which is scholarly called employee engagement. However, few researches have been explored to
bridge managing knowledge and engaging employees. This paper reviewed literatures on employee engagement, knowledge
management, and the impacts of knowledge management on employee engagement. It is expected to propose a conception
that knowledge management practices could facilitate employee engagement. Hopefully, the proposed idea could enhance the
organization’s awareness of knowledge management as a key approach to achieve competitive advantage.

Keywords—Knowledge Management, Employee Engagement, Malaysian Organizations.

1. INTRODUCTION
An overview of the literature indicates that in such an era where organizational competitiveness is depending more on the
aspect of intellectual capital than the aspect of labor. Therefore, theories recommend that “if organizations want to retain
intellectual capital, employee engagement has become greatest importance”. [1] introduced employee engagement as a positive
attitudes and values held by the employees towards their performance and their colleagues, as well as their organization.
Previous studies show that with high employee engagement, the company has more innovations, higher productivity, and better
profitability [5]. Furthermore, [22] emphasized employee engagement is the most determining factor to measure the vigor of
the company. Thus, promoting engagement among workers becomes top priority. Meanwhile, knowledge management has
become urgent in organizations, as knowledge was point out is powerful weapon to achieve competitive advantage. [2] stated
that knowledge management is to manage the organization’s knowledge through a systematically specified process for
acquiring, developing, applying, organizing, sharing and creating both the tacit and explicit knowledge of employees to
enhance organizational performance and create values. Thus, organizations that want to achieve and maintain competitiveness
have to concentrate to managing their knowledge. Knowledge is considered to be expertise, habit, skills, understanding about
something that comes from experience, training or learning process, or someone’s expertise acquired through effort and ability
[10]. There are two types of knowledge, which are explicit and tacit knowledge. Moreover, while explicit knowledge is
transmitted through written or oral forms, tacit knowledge is acquired through sharing experience and it resides in the
employees’ mind. [11] and [12] advised respectively that employees have tacit and explicit knowledge. Unfortunately,
employee’s acquired innate knowledge is lost from the organization when an employee leaves [14]. Consequently, the
organization is possibly losing its competitive advantage. Only if the organization is able to make employees feel happy
towards their job, and to retain employees, engage employees, capture employees’ hearts and minds at work.

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2. OVERVIEW OF EMPLOYEE ENGAGEMENT

A. Employee Engagement

Employee engagement was a popular concept and was extensively discussed in different fields from 1990s until now. In
today’s complex economy, employee engagement especially becomes crucial for every organization. Because of they strive to
attain competitive advantage over the others through use of intellectual capital. According to [23] ’s engagement study at more
than 125 organizations, increasing employee engagement positive influence to key business metrics – organizations that invest
in engaging employees can stand to grow their earning 2.6 times faster than those who do not [24]. So the top prior is to
promote the engagement within the disengagement atmosphere among workers today. However, there are various definitions of
engagement were given by previous scholars. [66] identified that “there are numerous definitions of employee engagement, but
they all are agree that employee engagement is desired by organizations, has an organizational purpose. For example, [15]
presented employee engagement as “the harnessing of organizational members’ selves to their work roles; in engagement,
employees express themselves physically, cognitively and emotionally during role performances”. Moreover, [17] defined
employee engagement as “the level of commitment and involvement an employee has towards their organization and its
values”. It describes that an engaged employee is intellectually and emotionally bound with the organization, enthusiasm with
its goals. Researchers from Gallup [18] introduced employee engagement as “the ability to capture the employees’ souls, hearts
and minds to breathe into an internal desire and passion for excellence”, accordingly adding a mental element to Gallup’s
established cognitive and emotional dimensions of engagement. Another popular description is pointed out by [16] who
expressed engagement as “employee engagement was driven by the right people in the right roles with the right managers”.
[19] observed engagement is about providing chances for employee to communicate with other co-workers, managers, and is
something related to creating an environment in which employees are motivated to link to their work and really care about
doing a good job. Another prominent definition of engagement emerged from [20], they comment that engagement as the
simultaneous presence of three behaviors in employees, which are job performance, citizenship behavior and involvement. [21]
pointed out that engagement as “how employees positively think and feel toward the organization, and are proactive in relation
to achieving organizational goals”.

However, employee engagement has been criticized that there is no a consistent definition, for example, it has been argued that
there is a overlap and redundancy between engagement and other constructs such as job satisfaction [67]. If there is not a
consensus on a definition, advances in understanding employee engagement will be difficult, and more working will be needed
on establishing the validity, differential antecedents and differential outcomes with engagement. Job satisfaction refers to how
employees feeling about their job and working conditions, such as compensation, work environment, career development
opportunities and organizational policies, as well as internal communication. And the admitted consequences of job satisfaction
are for example higher employee morale and hence job performance, lower absenteeism and turnover intentions, higher
employee loyalty, and higher productivities level [74]. On the other hand, employee engagement refers to employees are
physically, cognitively and emotionally committed to their organization; they put efforts into their work, and these efforts are
directed toward organization outcomes. Furthermore, previous research revealed that job satisfaction is highly and positively
related to employee engagement, and job satisfaction is essential to employee engagement [74]. Therefore, in this study, job
satisfaction can be exchangeable with employee engagement.

B. Dimensions of Employee Engagement

Based on the definitions above, it demonstrates that employee engagement is a multi-dimensional construct. Due to the many
dimensions that make up the level of employee engagement an employee feels towards their work, it is possible that an
employee could be engaged in one dimension and not the other [15]. When engaged employees become physically involved in
their role performance, cognitively followed, and then connected to others with enthusiasm in ways that show their
individuality. A framework for how to enhance employee engagement should be developed based on the different dimensions
of employee engagement. [15] suggested that three psychological conditions should be considered as antecedents of employee
engagement, which are psychological meaningfulness, psychological safety and psychological availability. Psychological
meaningful refers to one’s belief regarding how meaningful it is to bring oneself to a role performance. It is achieved when
employees feel worthwhile and valuable. Psychological safety involves one’s perception of how safe it is to bring oneself to a
role performance without fear of damage to self-image, status or career. Psychological availability refers to one’s perception of
how available one is to bring oneself into a role. Based on [15]’s psychological states, [69] developed a scale to assess the
expression of oneself physically, cognitively and emotionally in one’s work role. Furthermore, [70] noted that engagement
have three dimensions, which are vigor, dedication and absorption. [71] declared that engagement is made up of three
dimensions, which are affective and behavioral as well as cognitive dimension. Moreover, emotional dimension refers to those
who are emotionally connected to others; behavioral dimension refers to physical expression of engagement; and cognitive
dimension refers to those who are rationally aware of their role and mission within an organization.

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C. Determinants of Employee Engagement

According to [72], job characteristic, organizational support, rewards and recognition, procedural justice and distribution justice
were the determinants of employee engagement. Moreover, organizations must have a focus on four different drivers to engage
their employees [9]. Firstly, learning and sharing environment; this can be achieved through establishing a work environment,
in which encourages keeping learning, promotes knowledge sharing and supports work life. [75] specified that supportive
working environment displays concern for employees’ needs and feelings, and is considered to be a key determinant of
employee engagement. According to [28] and [29]’s studies on engagement, learning opportunities and social supports
positively influenced employee engagement. Secondly, motivation on engagement; this can be done through compensation.
Attractive compensation comprises a combination of pay, bonuses, other financial rewards as well as non-financial rewards like
extra holiday. [72] revealed that recognition and rewards make employees feel obliged to respond with higher level of
engagement [9]. Thirdly, communication; [60]’s report points out having the opportunity to feed their views and opinions
upwards as the most important driver of employee’s engagement. The report also identifies the importance of keeping flowing
of information within the organization. Communication plays roles on spanning provision of information and creating of sense
of community within organization, and it has recognized as an underlying influence of employee engagement by industry
research. Fourthly, alignment between organizational and individual goals; the strategic objectives of the organization should
be known by employees, and what purpose should be reached through these objectives. This knowledge allows the employees
find the alignment between the organizational and individual goals. Further, the alignment allows goals internalization, which
helps the organization to gain the expected behaviors from the employees, so that behaviors converted into achieving
organizational goals [9]. [9] refer to this as strategic engagement, since it allows the organization to target the expected
behaviors based on strategic purpose; such as, a culture of good service behaviors are motivated must be cultivated when an
organization whose priorities are focused on service delivery.

3. OVERVIEW OF KNOWLEDGE MANAGEMENT

A. Knowledge

[73] defined knowledge as a fluid mix of framed experience, values, contextual information, and expert insight that provides a
framework for evaluating and incorporating new experiences. In addition, [74] stated that knowledge is what employees know
about their customers, products, process, mistakes and success in organization. Previous study suggests the existence of two
types of knowledge which is explicit and tacit knowledge [38]; [39]; [40]; [41]; [42]; [43]. Explicit knowledge is codified
knowledge in the forms of manual, rules, and routines, procedures which can be easily accessed and can be extracted from
knowledge holder and shared with other individuals. Conversely, tacit knowledge is the knowledge hidden in individual’s mind
in the forms of experience and expertise [44] which is hard to articulate or communicate, and which is usually obtained through
interaction with others [45] or environments such as communities of practice [46]. And knowledge is produced through a
knowledge conversion process, and it involves four modes. They are socialization, externalization, combination and
internalization [59]. Fig.1 presents the knowledge conversion model. In SECI model, socialization is the process of converting
new knowledge through shared experiences. It occurs when one individual shares tacit knowledge with another in face to face
communication [59]. Externalization is a process of converting tacit knowledge into explicit knowledge through collaboration
with others and transmitted via conceptualization, elicitation and articulation [59]. Combination is a process of systemizing a
type of explicit knowledge into another type of explicit knowledge. Internalization refers to a process of embodying explicit
knowledge into tacit, and this process is considered as learning by doing. And these four modes must be managed to form a
continual cycle.

Figure 1: The Process of SECI Model [59]

Source: Nonaka & Takeucl, (1995)

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B. Knowledge Management

Knowledge management has regarded as urgent within organizations. Because knowledge is critical strategic tool required to
achieve competitive advantage in the information age. The function of knowledge management is to support the achieving of
organizational goals. For example, knowledge management can help organization to prevent knowledge loss through retention
strategies and appropriate knowledge management process. According to [47], if the main motivation of knowledge
management is to reduce risk from knowledge loss, the response typically involves identifying and holding on to the core
competencies that the corporate has. Therefore, risk reduction is closely related to knowledge initiatives intended to identifying
and acquiring valuable organizational knowledge. Since employees are identified as key holders of precious knowledge within
organizations, capturing and acquiring the knowledge of individuals and groups of employees is extremely important for lasting
business continuity. [32] defined knowledge management as “the systematic, explicit, and deliberate construction, update and
utilization of knowledge assets”. Another definition about knowledge management from [33] who clarified that knowledge
management is “the coordination and development of organizational knowledge resources, in order to create values and
competitive advantage”. A broader definition about knowledge management is presented by [2], who stated that knowledge
management is to manage the organization’s knowledge through a systematically and organizationally specified process for
acquiring, organization, sustaining, applying, sharing and renewing both the tacit and explicit knowledge of employees to
enhance organizational performance and create values. [34] defined knowledge management is to deliberately and
systematically coordinate an organization’s components to increase values through creation and innovation. This coordination
can be implemented through sharing, creation and utilizing knowledge as well as through adding the valuable lessons learned
and best practices into firms’ memory to cultivate continuous organization learning. [35] preferred to call knowledge
management as knowledge-based management, connecting people to people and people to information to add competitive
advantage. Furthermore, [36] explained that knowledge management as control the knowledge and knowledge workers. Based
on the previous literatures, [37] noted that knowledge management refers to a process of collecting and identifying valuable
information (i.e. knowledge acquisition), enabling employees to recover organizational knowledge (i.e. organizing knowledge),
exploiting and beneficially utilizing knowledge (i.e. knowledge leverage), propagating it throughout the organization (i.e.
knowledge sharing) and storing the knowledge in a repository (i.e. organization memory).

4. KNOWLEDGE MANAGEMENT AND EMPLOYEE ENGAGEMENT

Employees are the most valuable assets within the organizations, and they play an important and complex role in knowledge
management. The employees’ behavior is regularly impacted by their beliefs, distinct attitudes and values, as well as the
organizational culture of the workplace. Influencing what employees believe would cause changes in values, attitudes and
finally the way in which knowledge is shared – behavior. Enabling to get employees to do things differently is not easy because
employees can easily fall back on defensive routines [53]. Currently, one study result [54] point out that unlearning is
frequently as difficult as learning, if not more. To get employees to change the way they do things will also require a level of
willingness from the individual. Employees need to feel valued, that they are part of a community and that their involvement is
challenging and rewarding [55]. The way employees perform processes will influence to the difference an individual can make
to their organization. Essentially, they can influence the way information and knowledge is shared throughout the organization.
In United States, organizations adopt knowledge management to achieve success over competitors. Fig. 2 illustrates knowledge
management’s impact on employees.

Figure 2: Knowledge Management Impacts on Employee Job Satisfaction

Source: The Intelligent Management [56]

Knowledge management could facilitate employee learning. It causes employees to become more flexible and enhance their job
satisfaction [48], and it helps to retain knowledge of employees. Employees’ learning is enhanced by knowledge conversion

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processes, which are accomplished through externalization, internalization and socialization and communities of practice. This
is because employees are likely to adapt when they interact with each other, and they are more likely to accept change when
they interact with each other. A recent study found that in organizations having more employees sharing knowledge and
learning with one another, employee job satisfaction increase [56]. Acknowledged consequences of job satisfaction are, for
example, engaged employees, lower absenteeism and turnover intentions job performance and higher productivity level [75].
These consequences present engagement that organization member express themselves physically, cognitively, and emotionally
during role performance [15]. Knowledge management also provides employees with solutions to the problems they face, in
case those same problems have been encountered earlier and effectively addressed, this provides a supportive work
environment within the organization [56]. A support work environment with employees’ needs, such as information or
knowledge which they need for job aid employees for focused work, is considered to be the key determinant of employee
engagement [75]. Thus, knowledge management provides a supportive work environment to determine the level of engagement
of employees.

5. RESEARCH GAPS AND THEORETICAL FRAMEWORK

Today, knowledge of employees has been repeatedly convinced as paramount resources for various organizations to attain
competitive advantage. Thus, employee engagement has surged as a critical driver of business success. It is defined as “the
extent to which employees are committed intellectually and emotionally to something or someone in their organization, how
hard they work and how long they stay as a result of that commitment [15].” Gallup’s study and Towers Perrin Talent Report
identified that the higher the level of employee engagement, the greater the ability for the organization to improve
performance will be. Conversely, the organization will face the risk of losing its valuable assets and core competencies.
Therefore, identifying the factors which could enhance employee engagement has become top priority. Moreover, knowledge
management practices were implied as it could facilitate the level of engagement. But the studies on employee engagement
from the perspective of knowledge management are rare in Malaysian organizations. Thus, there emerges an imperative gap
which knowledge management practices determine employee engagement.

The purpose of this study is to propose a theoretical framework that knowledge management influence employee engagement.
Fig. 3 indicates theoretical model of this study. Knowledge conversion processes involves four modes contribute to level of
engagement of employee. Explicit knowledge and tacit knowledge of employees are converted, managed through
socialization, externalization, combination and internalization, to impact employees’ learning. This causes employees to
become more flexible and enhance their job satisfaction, and positively affect employee engagement.

Figure 3. Theoretical Model of Study

6. CONCLUSION AND RECOMMENDATIONS

In today’s complex economy, employee engagement and knowledge management have been discussed as critical strategic
tools to achieve competitive advantages through use of intellectual capital. Because of knowledge and knowledge workers are
convinced as powerful assets for organizations in this information age. In this study, it is identified that knowledge
management could facilitate the level of engagement of employee. To make sure that future research obtained significance, it
is recommended that the scope of the framework could be further enriched by adding in knowledge management practice
factors and employee engagement dimensions, and empirical study could be carried out to verify the proposed framework.

ACKNOWLEDGMENT
Authors sincerely appreciate all the supports provided by Universiti Malaysia Pahang for the completion of this research under
the Grant RDU150307.

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Vol.21, 2016

The Impact of Job Satisfaction and Knowledge Sharing on

Employee Performance
Muhammad Sajid Saeed

Abstract
The aim of this particular study was to analyse the impact of job satisfaction and knowledge sharing on
employee performance. Quantitative research approach was used to collect data and to analyse the extent to
which knowledge sharing and job satisfaction influence employee productivity in the oil and gas industry. The
close ended questionnaire was administered to employees of oil sector. Response rate of 63% was achieved in
survey. It was concluded that job satisfaction in oil and gas industry is highly correlated with management
support and technology use. However, it is least correlated with autonomy and rewards. Employees were less
likely to get additional chances of promotions for knowledge sharing with others.
Keywords: Job satisfaction, knowledge sharing, employee performance

1. Introduction
The increasing competition, improving technology and rising globalisation has paved a way for driving
knowledge based economy. The frequent changes in internal and external environment result in huge pool of
knowledge. Moreover, organisations also move above the learning curve while facing these transformations.
Additionally, it has also become challenging for organisations to maintain huge pool of knowledge within
organisational boundaries, and also to make it available in outside organisational boundaries in the form of
appropriate reports. These changes in external business environment have compelled organisations to make a
shift towards knowledge management practices. Therefore, managers are required to develop an effective
system for knowledge management that can influence employees in positive way to accomplish their jobs
successfully.
The aim of this paper is to evaluate the extent to which job satisfaction influences knowledge sharing
practices, and also to scrutinise how does job satisfaction and knowledge sharing practices affect employee
performance and productivity.

2. Literature review
2.1 Job satisfaction
The literature on job satisfaction has been extended over a timeframe of more than 75 year, as the earliest
definition was provided by Hoppock (1935). Since then, plethora of definitions was proposed by several
researchers to identify multiple aspects of job satisfaction. This concept has remained the subject of study by
multiple researchers in different fields such as human resource management, business, and psychology. This
concept refers to positive emotional state resulting from appraisal of an employee’s job or work (Locke, 1976
cited in Suliman and Al-Hosani, 2014). More specifically, Locke (1976) explained that pleasurable state of mind
and emotional status that arises due to appraisal from managers or good job done is job satisfaction. In another
detailed definition, job satisfaction has been explained as a concept that includes all characteristics of job and
work environment that is rewarding, satisfying and fulfilling for employees (Boles et al., 2009). Simply, job
satisfaction is the difference between what an employee expects from job and what he/she actually gets from job.
When an employee’s expectations from job are less or equal to what job actually delivers in return, employee is
satisfied. On the contrary, job dissatisfaction results when individual’s expectations are higher from what the job
actually delivers to him/her.
The expectations from job are subjective in nature because they vary from individual to individual due
to multiple factors. A number of surveys have been conducted by previous researchers to assess and measure job
satisfaction. For instance, Hackman and Oldham (1974) identified several factors that measure job satisfaction.
These factors included promotions, pay, and attitude of co-workers and supervisors. Contrary to this, Weiss et al.
(1967) developed a comprehensive scale called Minnesota Satisfaction Questionnaire (MSQ) for measuring job
satisfaction. This scale measures job satisfaction around 20 aspects including activity level, ability utilization,
authority, good working relations with colleagues, independence or autonomy at work, moral values, recognition
from supervisors, promotion, and workload (Weiss et al., 1967).
Literature says that job satisfaction influences employee turnover and productivity in organisations.
These two aspects are very critical for an organisation to compete successfully. The importance of job
satisfaction can be assessed by the research in which Granny et al., (1992) revealed that more than five thousand
studies had been conducted on this specific field, till then. Specifically, researchers and practitioners belief that
satisfied employees are more productive and active for the organisation as compared to dissatisfied ones (Sarker
et al, 2003), and this belief has motivated researchers to investigate this concept further.

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This suggests that job satisfaction results from positive emotional response retrieved by employees
through professional judgement, management support and work environment. It is very important concept for
human resource managers to satisfy employees and gain high performance. Prior studies have noted that lack or
absence of job satisfaction can result in reducing employee commitment that may influence employees to leave
the organisation (Trivellas, Akrivouli, Tsifora, & Tsoutsa, 2015). On the other hand, others have suggested
positive association between job satisfaction, high productivity and morale (Khuong and Tien, 2013).

2.2 Knowledge sharing and management

There are two aspects of knowledge management i.e. explicit and implicit (Nonaka, 1991 cited in Chumg, Cooke,
Fry & Hung (2015). The explicit component refers to documented piece of knowledge whereas implicit
describes subjective component. The explicit knowledge can be found in different documents such as procedures,
policy documents, and laws and regulations of the organisation. On the other hand, implicit knowledge is the in
intangible form that can be traced into organisational values, beliefs and norms. Both forms of knowledge are
critical for leading can organisation towards competitive advantage. Knowledge management has been defined
as the process, by which organisations gather valuable information, assist employees to understand this
knowledge, apply knowledge for achieving routine tasks and distribute this knowledge across different
departments and members of the organisation (Awad and Awad, 2007). In the same line of thought, Becerra-
Fernandez & Sabherwal (2014) have defined knowledge management as the process of collecting, organisation,
processing, sharing and storing knowledge for future use.
King (2007) has also revealed that sharing or dissemination of knowledge is one of the important
components of knowledge management. It determines the extent to which employees are willing to share their
ideas and valuable knowledge with managers and co-workers for accomplishing their tasks and getting better
output. Alternatively, it also represents the process used by employees for circulating or exchanging information
within different departments and members of the organisation (Becerra-Fernandez and Sabherwal, 2014).
Knowledge management is the process by which organisations gather, develop, share and use knowledge in an
effective way for achieving specific objectives (Awad, & Awad, 2007). It is basically a multidisciplinary process
including different tools and approaches. In maintaining effective knowledge management system, the human
factor is important to be considered as it also depends on intentions of employees to share knowledge with others.
Previous studies have proposed that without contribution of employees, organisations cannot maintain effective
knowledge management system (Trivellas et al., 2015). Hence, understanding role and contribution of
employees in knowledge management systems is critical area to be researched. Prior studies have revealed that
knowledge sharing stems from personal beliefs, perceptions and structure of the organisation that reflects
employee behaviours to share knowledge with others (e.g. King and Marks, 2008). Organisation structure
reflects the extent to which cooperation, teamwork and shared values are followed in the organisation. Although
some studies have noted the role of organisational culture and structure in knowledge sharing, they lack to find
its impact on job satisfaction.
For decades, the concept of knowledge management has been discussed by researchers and scholars in
management literature (e.g. Bock et al., 2005; Lee & Ahn, 2006; Chumg et al., 2015). For instance, the
knowledge based perspective suggests that knowledge propels values of organisation and also leads it towards
competitive advantage (e.g. Kearns and Sabherwal, 2006; Liao et al., 2007; Kraaijenbrink, Spender, and Groen,
2010). The core knowledge is retained within employees in terms of their skills and learning; hence, knowledge
sharing depends on employee behaviours and attitudes (Teh and Sun, 2012). This implies that if employees are
not willing to share knowledge with others, they are less likely to become active component in knowledge
sharing process. This is tacit form of knowledge that can be traced in employee beliefs and behaviours. Prior
studies have also noted that tacit knowledge that is in non-verbal form depends on employee behaviours to be
shared across the organization (Bock et al., 2005; and Suppiah and Sandhu, 2011). The tacit knowledge is
communicated through human behaviours and actions that can make knowledge sharing a hard process. This
implies that organisations need to develop an effective system and infrastructure for knowledge sharing.
Although management literature has discussed role of information technology and systems in developing
knowledge management process (Albino, Garavelli, & Gorgoglione, 2004), there has been rare evidence
regarding relationship between knowledge sharing and job satisfaction.
Through different definitions of knowledge sharing and management, it is clear that it is a process by
which organisational knowledge passes from one employee to other, from one group to other, and thus circulates
within organisation. Ismail and Yusof (2009) have emphasised the importance of knowledge management for
organisations. They revealed that in contemporary business era, organisations are less likely to survive and
compete in market if they do not have effective knowledge management and sharing practices. Moreover, they
have also endorsed that knowledge sharing is important for to boost individual competitiveness, reduce cost,
enhance intellectual capital of organisation and alter organisational competitiveness (Ismail and Yusof, 2009).

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2.3 Job satisfaction and knowledge sharing

Knowledge sharing and job satisfaction are critical elements for employees to play active role in attaining
organisational objectives. Employees seek information to accomplish their tasks and also to remain responsive to
multiple routine needs. It is reported that they more engaged and motivated to accomplish organisational
objectives when they are satisfied with job (Bontis, Richards, & Serenko, 2011). This implies that job
satisfaction and knowledge sharing may have connection. Therefore, job satisfaction and knowledge sharing
have been discussed together in literature (Jacobs & Roodt, 2007).
Several researchers have theorised the relationship between job satisfaction and knowledge
management in previous literature. Teh & Sun (2012), for instance, have suggested that job satisfaction and
knowledge sharing are positively related with each other. Unlike this, Bektas et al. (2008) did not find any
significant relationship between knowledge sharing and job satisfaction. Similar results were found by
Oshagbemi (2000) who revealed that association between job satisfaction and knowledge sharing is not clear in
literature. A recent study by Michailova & Minbaeva (2012) suggested that knowledge sharing behaviours are
not influenced by organisational values, rather the extent by which employees are internalized in the organisation.
Previous studies have revealed that knowledge management impacts processes, people, organisational
performance and products (e.g. Becerra-Fernandez and Sabherwal, 2014). For instance, De Vries, van den Hooff
and de Ridder (2006) have supported that job satisfaction is associated with willingness and enthusiasm to share
knowledge. Others have also proved positive relationship between job satisfaction and knowledge sharing
(Becerra-Fernandez and Sabherwal, 2014). However, prior studies have not provided adequate evidence of how
knowledge sharing practices impact people through job satisfaction, extrinsic motivation and knowledge sharing
intentions (Hsu, 2008).
Literature on relationship between job satisfaction and knowledge sharing is not adequately developed.
Most of studies have picked job satisfaction to find its association with performance outcomes. For instance,
Murray (1999) has investigated the relationship between job satisfaction, turnover, absenteeism and performance.
Oshagbemi (2000) has also argued that relationship between knowledge management and job satisfaction has not
been discussed appropriately in literature. Liao et al. (2004) have examined association between knowledge
sharing and job satisfaction within Taiwanese firms. They found that working relations between subordinates
and supervisors play critical role for knowledge sharing behaviour in organizations. They have also noted that
technological sources play important role in successful knowledge sharing practices. Contrary to this, Bektas et
al. (2008) have noted that no relationship exists between job satisfaction and knowledge sharing. On the other
end, Michailova and Minbaeva (2012) suggested that knowledge sharing is not influenced by organisational
values. Overall, it implies that relationship between job satisfaction and knowledge sharing practices is somehow
vague and needs to be explored further.

3. Methodology
3.1 Research design
The research design depends on research problem to be adopted for carrying a study. Specifically, research
design guides researchers to get appropriate evidence in order to address research problem in the right way,
logically and explicitly (Kumar, 2010). The case study refers to in-depth investigation of a particular situation
rather than aiming to have statistical analysis (Bernard¸ 2011). The current study’s research problem revolves
around investigation of role of job satisfaction in achieving high performance and productivity in perspective of
oil and gas industry. For this purpose, case study research design was chosen. This research design helped in
implementing theoretical models of job satisfaction and knowledge management in context of oil and gas
industry. Although case study design is less likely to generalize results of research to large population (Bernard,
2011), it is appropriate at academic level to investigate a research issue conveniently.
Broadly, research approach can be divided into two categories i.e. qualitative and quantitative. The
qualitative research methods are based on interpretative explanation of research problem in order to get in-depth
understanding. These methods are based on perceptions, observations, words and feelings that give abstract view
of research problem rather than in factual numbers. Some qualitative methods include focus groups, experiments,
and open ended questionnaires (Walliman and Walliman¸2011). These methods provide rich data about real life
experience and situations for understanding human behaviour in broad context. However, these methods are
criticised because of lack of generalizability and heavy reliance on subjective interoperation of research problem;
hence, these methods are not used in the current study. The current study was not aimed at analysing employee
behaviours and attitudes in abstract form; hence, qualitative methods are not applied.
The quantitative methods were applied for analysing relationship between knowledge sharing and job
satisfaction. The quantitative research methods are used when purpose is to get statistical or numerical evidence
of research problem (Babbie, 2010). These methods entail provision of numerical data from research
participants for evaluating relationship between theory and real life. The essence of applying quantitative
methods is their objective conception of social reality. In the current study, quantitative methods have assisted in

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Vol.21, 2016

getting numerical data to test perform statistical test. Additionally, these methods have also helped in
determining the extent to which knowledge sharing and job satisfaction relate with each other.

3.2 Population and sampling

The current study is based on evaluation of relationship between job satisfaction and knowledge sharing within
Mellitah Oil Company (MOC). Therefore, the target population of this study was workforce of MOC. This
population was very large and could not be included in this study. For this purpose, sample was selected from
this population to conduct survey. Saunders et al (2012) have defined sample as the representative component of
the target population, and sampling is the process of choosing sample subjects. There are two main methods of
sampling i.e. probability and non-probability sampling techniques (Saunders et al., 2012). The probability
sampling provides opportunity to all members of the population to be selected in the sample whereas non-
probability sampling does not provide equal opportunity to all members to be selected in the sample (Creswell¸
2009). In the current study, convenience sampling has been applied for selecting sample subjects from workforce
of MOC. This sampling technique allowed researcher to select only those participants who were easily available
to fill questionnaire. This technique is easy and time convenient to select sample subjects from a large population.

3.3 Data collection

The current study used survey approach to gather relevant data. Survey is a convenient, easy and flexible tool for
collecting primary data directly from participants of a study (Kumar, 2010). In this regard, the close ended
questionnaire was developed to collect data from employees of oil and gas industry about knowledge sharing
practices, productivity and job satisfaction. A close ended questionnaire is the one that allows participants to
choose best option from set of predetermined answers (Kumar, 2010).
For the current study, Likert scale was used to provide relevant options against questions. This scale has
ranged from ‘strongly agree’ to ‘strongly disagree’. The questionnaire has two main parts. First part included
questions regarding participants’ personal information such as gender, age, and employment duration. The
second part is subdivided into two main sections i.e. job satisfaction and knowledge sharing. In this part,
participants were asked to provide their opinions on the basis of given scale.

3.4 Data analysis

Data analysis is very important phase of a study that directly influences the research outcomes. After collecting
data from employees of MOC, it was tabulated on MS Excel. The next step was to summarise this data by
performing calculations such as percentages. This summarised data is easy to discuss and drive meaningful
results about research purpose. The next step was to draw graphs on data. With graphs and percentages,
important meaning has been retrieved to discuss the research objectives. Moreover, results are also discussed in
the light of literature findings. Besides this, statistical tests such as correlation and regression were also applied
on the data to find relationship between knowledge sharing and job satisfaction in MOC.

4. Results and discussion

The aim of this research was to assess impact of knowledge sharing and job satisfaction on employee
performance while analysing the factors influencing job satisfaction within MOC. From survey of 100
employees of MOC, response rate of 63% was achieved. In this chapter, data has been appropriately tabulated
and presented for deriving meaningful interpretation. Furthermore, statistical analysis has been conducted to
retrieve relationship between variables. In-depth discussions are made in context of literature findings in order to
find their similarities and contradictions with results of this study.

4.1 Demographics analysis

Only 19% of respondents were females whereas 81% were males who responded in survey. As sample was
selected without preference to any gender, the distribution of gender in sample was fair and it reflects overall
trend in oil and gas industry where males represent higher percentage of workforce.
The age distribution of sample revealed that most of respondents were from 36-45 years of age (41.3%).
12.7% respondents were up to 25 years of age whereas 25.4% were between 26-35 years. 12.7% were between
45-55 years whereas the rest of respondents were above 55 years of age. This implied that most of respondents
might be in their mid-career position in terms of their age.
It was found that 17.5% respondents were serving MOC for less than one year. These might be the one
in their entry career level. 34.9% were serving MOC for 1-3 years and same percentage was working for
company for 4-6 years. The rest of respondents were serving MOC for above 6 years. As MOC was found in
2008, the work experience of respondents is not very high.

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Vol.21, 2016

4.2 Correlation analysis

Job satisfaction and knowledge sharing may have substantial impact on performance of employees. In order to
determine association among these variables, correlation analysis has been conducted. The results of correlation
among job satisfaction, employee performance and knowledge sharing are summarised Table 1.
Table 1: Correlation analysis
Knowledge
Job Satisfaction sharing Performance
** **
Job Satisfaction Pearson Correlation 1 .668 .712
Sig. (2-tailed) .000 .000
N 63 63 63
**
Knowledge Sharing Pearson Correlation .668 1 .934**
Sig. (2-tailed) .000 .000
N 63 63 63
** **
Performance Pearson Correlation .712 .934 1
Sig. (2-tailed) .000 .000
N 63 63 63
** Correlation is significant at the 0.01 level (2-tailed)
It was found that job satisfaction and knowledge sharing are significantly correlated (0.668) with each
other. This implies that higher the job satisfaction, higher will be employees’ intentions and willingness to share
knowledge with others. The management of MOC can get valuable insights from these findings to expand the
scope and effectiveness of knowledge sharing. Although MOC has allocated adequate resources to drive job
satisfaction, it must focus on providing sufficient autonomy and attractive incentives to employees enabling them
to work effectively and get satisfied. The results of this study are aligned with previous findings that have proved
positive association between job satisfaction and knowledge sharing behaviour (e.g. Bontis et al., 2011).
The correlation between job satisfaction and employee performance is higher with value of 0.712. This
suggests that higher the job satisfaction, higher will be employee performance in MOC. It is important to note
that MOC has provided adequate resources in terms of technology and management support for retrieving job
satisfaction. However, employees were not very satisfied with autonomy and rewards. Regardless of
comparatively weaker employee performance, the relationship between job satisfaction and employee
performance is strong. When employees are satisfied, they become motivated to perform better for achieving
organizational goals. Prior studies have also explored positive association between job satisfaction and employee
performance (e.g. Khan et al., 2011; Trivellas et al., 2015).
The association between job satisfaction and knowledge sharing is highly correlated with value of 0.934.
These findings suggest that higher is the knowledge sharing; higher will be employee performance in MOC.
When employees are encouraged to share knowledge with others, they get more opportunities to develop new
ideas, explore information and contribute effectively in attaining organisation’s objectives. This is also evident
by this study’s findings that employee seek to share knowledge with others aiming to make significant
improvement in their performance. Previous studies have also explored positive association between knowledge
sharing and employee performance (e.g. Trivellas et al., 2015).

4.3 Regression analysis

To explore association between knowledge sharing, job satisfaction and employee performance, regression
analysis has been performed in Table 2 to Table 4:
Table 2: Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
a
1 .942 .887 .883 1.43294
a. Predictors: (Constant), Knowledge Sharing, Job Satisfaction

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ISSN 2422-8397 An International Peer-reviewed Journal
Vol.21, 2016

Table 3: ANOVA
Model Sum of Squares df Mean Square F Sig.
a
1 Regression 967.658 2 483.829 235.633 .000
Residual 123.199 60 2.053
Total 1090.857 62
a. Predictors: (Constant), Knowledge Sharing, Job Satisfaction
b. Dependent Variable: Performance

Table 4: Coefficients
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) -1.849 .581 -3.183 .002
Job
.164 .060 .159 2.723 .008
Satisfaction
Know Sharing .457 .032 .828 14.212 .000
a. Dependent Variable: Performance
It is clear from regression analysis that overall model is significant describing positive association
between knowledge sharing, job satisfaction and employee performance. This model implies that employee
performance is collectively dependent on job satisfaction and knowledge sharing practices in MOC. When
employees are provided adequate rewards, resources, management support and incentives along with knowledge
sharing opportunities and resources, they are more likely to make positive improvement in performance. These
results are similar to previous studies that reveal that employee performance enhances through job satisfaction
and effective knowledge sharing (e.g. Bektas et al., 2008).

5. Conclusions
Within global scenario, technological and economical competition has influenced organisations to adopt
effective knowledge management practices as key strategy to tackle with competition and evolving environment
for improving competence and also for meeting organizational challenges in business. Overall this study
concludes that employees in MOC are satisfied with their job and make positive contribution in their
performance.
This study concluded that knowledge sharing is critical for achieving competitive advantage in a
dynamic industry. Through effective knowledge sharing tools and practices, knowledge can be effectively
managed and exchanged within and outside the organisation. It has been concluded that MOC provides adequate
resources and opportunities to employees for sharing knowledge. As employees are not provided adequate
incentives and rewards, they are less likely to inform others about what they have in terms of new ideas and
suggestions for improvement. The results also conclude that employees were less likely to get additional chances
of promotions for knowledge sharing with others. Furthermore, it is also deduced that employees of MOC were
not clarified about objectives of knowledge sharing. In the absence of incentive and lack of clarity, knowledge
sharing cannot be effective to attain its objectives. Although employees in MOC share knowledge with others,
they are not appropriately guided by managers to adopt effective practices for knowledge sharing. As MOC has
been operating in a dynamic environment where oil production and distribution is subjected to multiple
geographical, political, and economical factors, it needs develop an effective culture of knowledge sharing where
employees are encouraged to share their ideas and learning with others.
It has been concluded that knowledge sharing is highly correlated with job satisfaction (correlation of
0.668). It has been concluded that satisfied employees in MOC are more likely to share knowledge with others
with aim of extending knowledge base in order to attain organisational goals. Prior studies have also proved
positive link between job satisfaction and knowledge sharing (e.g. Jacobs and Roodt, 2007).
Correlation and regression analysis revealed significant influence of knowledge sharing and job
satisfaction on employee productivity. Although this study did not show considerable improvement in employee
performance, the association of knowledge sharing and job satisfaction with employee performance is strong. It
has been concluded that employee performance in oil and gas companies enhance employee performance
significantly by deploying adequate resources for knowledge sharing and job satisfaction.

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Vol.21, 2016

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 E ISSN : (2776-7345)
P ISSN : (2776-7353)

Bina Bangsa International Journal of Business and Management (BBIJBM) pp

Vol. 2 No. 2, page 481-491, August 2022

The Effect of Talent Management and Knowledge

Management on Employee Performance at TVRI Est
Sumatra Province
Aminar Sutra Dewi1, Winda Adila2
1,2Sekolah Tinggi Ilmu Ekonomi “KBP”
*Corresponding email: aminarsd@gmail.com

Article History
Received: June 30, 2022 Revised: July 02, 2022 Accepted: August 30, 2022

Abstract

This study to test talent management on employee performance totest knolege

management on rmployee performance. This study was conducted at TVRI,
west Sumatera Province. This type of research was quantitative. The sampling
method used a total sampling of 57 saturated samples. The sources of this data
are primary data and secondary data. The data analysis techniques used are
validity, reliability, descriptive analysis, normality test, multicolinearity test,
heteroscedasticit y test, multiple regression analysis, and t test. The results show
that talent management has a positive and significant effect on employee
performance and knowledge management has a positive and positive and
significand effect on employee performance, it can be concluded that talent
management is accepted and knowledge management is accepted.

Keywords: talent management, knowledge management, employee

performance
JEL Classification: L21, L78, M1, M2.
Type of paper: Research Paper

@ BBIJBM 2021 published by Universitas Bina Bangsa, Indonesia

All rights reserved

DOI: Web:
10.46306/bbijbm.v2i2.72 http://bbijbm.lppmbinabangsa.id/index.php/home

Citation:
Dewi, A. S. ., & Adila, W. . (2022). The Effect of Talent Management and Knowledge Management
on Employee Performance at TVRI Est Sumatra Province. BINA BANGSA
INTERNATIONAL JOURNAL OF BUSINESS AND MANAGEMENT, 2(2), 481–491.
https://doi.org/10.46306/bbijbm.v2i2.72

I. Introduction
Performance is defined as the level of success of a person in carrying out his
work. Performance management is known as "Achilles' Heel" which means a

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Employee Performance at TVRI Est Sumatra Province

strong system but it is a weakness in human capital management, and as one of

the resource systems the most difficult human being to implement to the
company. However, performance management is the key to how an employee's
work can complete his task well. This shows how the company communicates
expectations and carries out karyawan behavior to achieve important goals
(Octavia, 2018).
Performance is the level of achievement in a program of activities or policies in
order to create goals, objectives, visions and missions of an organization that is
delegated through the strategic of an agency. Performance results in quality
and quantity achieved from an employee by performing his duties based on the
work he charges (Sutra dewi & Ekacuazti yandri, 2021).
Employee performance is greatly influenced and depends on the quality and
competitive ability of its human resources. The performance of an employee is an
individual thing, because each employee certainly has a different level of ability or
expertise in carrying outhis duties. The management can measure employees based on
the performance of each employee (Sutra Dewi & Yuvika, 2022)
According to Octa via, (2018)explained that performance management is related
to businesses, activities or programs initiated and implemented by the
leadership of the organization (company) to plan, directing and controlling the
performance of employees. One of the mostimportant things in achieving the
company's goals is the performance of the human resources in it. Every
company must expect maximum performance from all its employees because it
will have an impact on achieving the company's goals and objectives. In
developing employee performance requires natural processes and abilities, effort
and determination. In addition, the balance between technology and employee
workforce, who are competent is able to run a company well (Latief et al., 2019).
The phenomenon that occurs in TVRI employees of West Sumatra Province
shows suboptimal performance because there is still education that is not in
accordance with the current profession, beban work which is uneven such as
some have a lot of workload, there are still few, there are still many who have not
received Technical / Professional Training, employees whose age is over 50
year still serving in broadcast operations, and not yet running Funnish and
Reward.
According to Aula (2019) Talent Management is a series of processes to identify,
retain and place the right people in the right place. The talent management
indicator that contributes the most to the increase in employee employment is
recruitment, reflected in filling positions according to expertise by providing
vacancy info through mass media (Kardo, et al (2020).
With vacancy information through the mass media , it will be able to get
candidates who have talent to fill positions according to expertise. When you
have obtained talented candidates, orientation will be carried out, training in
accordance with expertise to support employee skills to be ready to work. When
the talents owned by employees are well managed by the organization, each
employee can produce optimal performance, so as to improve organizational
performance (Tri, et al 2020).

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Aminar Sutra Dewi, Winda Adila│ The Effect of Talent Management and Knowledge Management on
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Research conducted by Octavia (2018) on the effect of talent management on

employee performance (study on employees of PT Pertamina Geothermal
Energy Area Ulu belu) states that there is a positive influence From talent
management to karyawan's performance. The study (Savitri & Suherman, 2012)
stated that there was a significant influence of talent management on employee
performance by 37.8%. Research by (Nisa et al., 2016) on the effect of talent
management and knowledge management on employee performance also says
there is a significant positive influence on employee performance j IKA is tested
together, but has an insignificant effect if it is partially tested.
H1 = suspected talent management has a positive and significant effect on
employee performance

In addition to skills, education and science also play an important role in

preparing quality and competitive human resources. Islamy, (2013)defines
knowledge management as systemic approaches that help the emergence and flow
of information and knowledge to the right people at the right time to create
value.
According to (Safarni & Gadeng, 2018) defines knowledge management as any
process or practice of creating, acquiring, capturing, sharing, and using
knowledge to improve the learning and performance of organization.
Knowledge Management is an effort to create, store, disseminate and apply
knowledge to improve performance. The knowledge management indicator that
contributes the most to improving the performance of knowledge is the
identification of knowledge reflected in having knowledge equal to carrying
out new innovations. (Choirun, et al (2016)
Knowledge management is important in the learning process of an organization,
the knowledge possessed by the organization must be able to provide progress
for employees. So that the ability to manage knowledge can encourage
organizations to be more competitive. Employees who have talents must be
supported by knowledge so that they continue to develop and can significantly
improve the employee's work kiner.
This is in line with research conducted by Harmen and Tri (2018) states that
knowledge management has a significant effect on employee performance.
Strengthened by findings from research conducted by Jamaludin (2019) &
Kardo, et al (2020) stated that knowledge management has a significant effect on
employee performance.
H2 = it is suspected that knowledge management has a positive and
significant effect on employee performance

II. Material and Method

The type of research in this study is quantitative. The object of this study
focuses on the performance of employees at TVRI West Sumatra Province. The
population contained in this study was all employees at TVRI West Sumatra

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Aminar Sutra Dewi, Winda Adila│ The Effect of Talent Management and Knowledge Management on
Employee Performance at TVRI Est Sumatra Province

Province which amounted to 57 employees. The sampling technique used is the

total sampling technique. Where the total population was used as a sample of 57
respondents. The data sources I use are primary data and secondary data. The
data collection techniques I use are observational, interview, and questionnaire.

Variable Operational Definition

Table 1
Operational Definition of Variables
N Research Variable Definition Variable Source
o Variables Indicators
1. Talent Talent management is a. Talent Mapping (Nisa,
Manageme an effort to find, b. Bertalenta 2016:2)
nt (X1) develop , plan and Employee
retain the talents that a Development
person has in an c. Talented
organization that are Employee
needed to develop the Placements
company's business d. Retaining
and assets for the Talented
company that must Employees
continue to be
maintained.
2. Knowledge Knowledge a. Knowledge Setiadi
Manageme management is a series Identification et al.,
nt (X2) of processes of b. Knowledge (2017)
creating, creation
communicating, and c. Knowledge
applying knowledge sharing
assuming that d. Use of
knowledge that is Knowledge
beneficial to
individuals in an
organization can be
articulated and made
explicit
3. Employee Employee performance 1. Quantity of (Alifah,
performanc is one of the important results 2019)
e parts of a company 2. Quality of the
where the progress of result
the company depends 3. Timeliness
on the ability of 4. Effectiveness
employees to complete 5. Omnipresence
tasks on time and in
accordance with the
operational standards

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Aminar Sutra Dewi, Winda Adila│ The Effect of Talent Management and Knowledge Management on
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N Research Variable Definition Variable Source

o Variables Indicators
that have been set and
measured by the
performance that has
been issued.

In this study, there are two variables are bound variables and free variables, where
the bound variables in this study are employee performance (Y) and free
variables are talent management (X1), and knowledge management(X2).
Teknik data analysis using instrument tests(validity test and reliability test),
classical assumption test (normality test, multicholinearity test and
heteroskedasticity) multiple linear regression count and test the hypothesis t.

III. Results and Discussion

Test results of research instruments for the influence of talent management
and knowledge management on employee performance at TVRI West Sumatra
Province
Validity test
This test aims to find out whether a study is valid or not, this test is
considered valid if the corrected Item-Total Correlation is more than 0.3 and if it
is less than 0.3 then it will declared invalid.
Table 2
Employee Performance Variable Validity Test (Y)
Corrected Item-
Rule Of
Statement total Conclusion
Thumb
Correlation
Statement 1 0.683 0.300 Valid
Statement 2 0.323 0.300 Valid
Statement 3 0.370 0.300 Valid
Statement 4 0.398 0.300 Valid
Statement 5 0.335 0.300 Valid
Statement 6 0.498 0.300 Valid
Statement 7 0.723 0.300 Valid
Statement 8 0.587 0.300 Valid
Statement 9 0.498 0.300 Valid
Statement 10 0.332 0.300 Valid
Source : SPSS 21 Data (Data processed in 2022)
From table 2, it is known that from all statements regarding employee
performance variables can be declared valid where the Corrected Item-Total

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Correlation is greater than the Role Of Thumb value of 0.300, then can be
continued further research.
Table 3
Talent Management Variable Validity Test (X1)
Corrected Item-
Rule Of
Statement total Conclusion
Thumb
Correlation
Statement 1 0.391 0.300 Valid
Statement 2 0.355 0.300 Valid
Statement 3 0.443 0.300 Valid
Statement 4 0.396 0.300 Valid
Statement 5 0.440 0.300 Valid
Statement 6 0.555 0.300 Valid
Statement 7 0.597 0.300 Valid
Statement 8 0.336 0.300 Valid
Statement 9 0.545 0.300 Valid
Statement 10 0.498 0.300 Valid
Statement 11 0.490 0.300 Valid
Statement 12 0.349 0.300 Valid
Statement 13 0.646 0.300 Valid
Statement 14 0.659 0.300 Valid
Statement 15 0.692 0.300 Valid
Statement 16 0.692 0.300 Valid
Source : SPSS 21 data (Data processed in 2022)
From table 3, it can be seen that from all statements regarding talent
management, it can be declared valid where the Corrected Item-Total Correlation is
greater than the Role Of Thumb value of 0.300, then it can be Continued further
research.
Reliability test
The Reability Test is carried out using cronback Alpha which if the value
is more than 0.60 then shows the reliability (reability) of the instrument, and what
if the value is less than 0.60 then it is stated that the instrument lacks reliability.
Table 4
Reliability Test
Cronbach's Role Of
No. Research Variables Conclusion
Alpha Thumb
1. Employee Performance (Y) 0.805 0.600 Reliable
2. Talent Management(X1) 0.866 0.600 Reliable
Knowledge Management
3. 0.843 0.600 Reliable
(X2)
Source : SPSS 21 Data (Data processed in 2022)
From table 4 above, it can be stated that the value of Cronbach's Alpha in the
variables Talent Management (X1), Knowledge Management (X2), and Employee
Performance (Y) is greater Role Of Thumb 0.600, it can be concluded that the

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Aminar Sutra Dewi, Winda Adila│ The Effect of Talent Management and Knowledge Management on
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variables studied are declared reliable so that they can be continued for further
research.

Normality test
In this test was carried out using the Kolmogorov-Smirnov test so that it
could be a normal distribution. A data is said to be normal if the result is ≥ 0.05
and if it is not normal if the result shows ≤ 0.5. (Sugiyono, 2017). For more
information, see the table below.
Table 5
Normality Test
Asymp. Sig. (2-
Variable Alpha Conclusion
tailed)
Talent Management 0.835 0.05 Normal Distributed
Knowledge
0.670 0.05 Normal Distributed
Management
Employee
0.994 0.05 Normal Distributed
Performance
Source : SPSS 21 Data (Data processed in 2022)
Based on table 5 above , it can be concluded that the processed data is
Normal Distributed.
Multicholinearity Test
Testing regression models found correlations between free/independent
variables
Table 6
Multicholinerity Test Results
No Variable VIFs Tollerance Conclusion
2.726 0.367 Symptom-Free
1 Talent Management
Multicholinerity
Knowledge 2.726 0.367 Symptom-Free
2
Management Multicholinerity
Source : SPSS 21 Data (Data processed in 2022)
Based on the results of the Multicholinerity Test in table 6 above, it can be
concluded that between the two variables there is no multicholinearity problem
or commonly called Free from Symptoms Multicholinearity.

Heteroskedasticity Test
Heteroskedasticity test is testing for differences in variance from the
residual of one observation to another, where if this happens, it is concluded
that there are symptoms of heteroskedasticity
Table 7
HeteroskedeSeverity Test Results
No Variable Sign Alpha Conclusion
0.551 Symptom-Free
1 Talent Management 0.05
Heteroskedasticity

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Employee Performance at TVRI Est Sumatra Province

Knowledge 0.244 Symptom-Free

2 0.05
Management Heteroskedasticity
Source : SPSS 21 Data (Data processed in 2022)
Based on the results of processed data from the Heteroskedasticity test in
table 7 above, it can be concluded that independent variables are free from the
symptoms of Heteroskedasticity.

Multiple Linear Regression Analysis

Multiple linear regression calculations between talent management (X1),
knowledge management (X2), and employee performance (Y) which in the
calculation are assisted by the SPSS program so that the following results are
obtained in the table below :
Table 8
Hasil Multiple Regression Analysis Test
Information Coeficient
Constand 1.577
Talent Management 0.146
Knowledge Management 0.614
Source : SPSS 21 Data (Data processed in 2022)

Y = α + β1 X1 + β2 X2
Y = 1.577+ 0.146 (X1) + 0.614 (X2)
The above multiple linear regression equation has the following meanings :
1. The Constant value has a positive value of 1,577 units if talent management
and knowledge management are zero, then employee performance is still
worth a fixed 1,577 units.
2. The value of the talent management regression coefficient is 0.146 units,
meaning that if talent management increases by one unit, then employee
performance increases by 0.146 units.
The value of the knowledge management regression coefficient is 0.614
units, meaning that if knowledge management increases by one unit, then
employee performance increases by 0.614 units.
Test the Hypothesis t
In this test, in order to be able to find out the test in determining the
influence of independent variables on dependent variables partially and used to
measure the significant influence of independent variables on dependent
variables.
Table 9
Uji T results
No Variable t-count t-table Α Sign Conclusion
1 Talent Management 2.591 1.673 0.05 0.012 H1 accepted
Knowledge 9.379 0.010
2 1.673 0.05 H2 accepted
Management
Source : SPSS 21 Data (Data processed in 2022)

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Aminar Sutra Dewi, Winda Adila│ The Effect of Talent Management and Knowledge Management on
Employee Performance at TVRI Est Sumatra Province

Based on the results of the partial t test table above, it can be done as
follows:
1. Effect of talent management variables on employee performance (H1).
The talent management variable (X1) has a positive and significant effect on
employee performance in TVRI of West Sumatra Province, where the
calculated t value is greater than the t table ( 2,591>1,673) and the
significance value is smaller than the alpha value (0.012 <0.05), then the
hypothesis of one (H1) in this study is declared accepted.

2. The effect of the targeting management variable on employee

performance (H2). The knowledge management variable (X2) has a
positive and significant effect on employee performance at TVRI West
Sumatra Province, where the calculated t value is greater than the t table (
9,379>1,673) and the significance value of lebih is small from the alpha
value (0.000 <0.05), then the second hypothesis (H2) in this study is
declared accepted.
DISCUSSION
The effect of Talent Management on employee performance at TVRI West
Sumatra Province.
Based on the results of the first hypothesis test, it was found that the talent
management variable had a positive and significant effect on employee
performance at TVRI West Sumatra Province, where the t value was calculated
more The magnitude of the table t and the significance value are smaller than
the alpha value. So the first hypothesis (H1) in this study was declared accepted.
This means that the existence of a talent management program has a great
contribution to the achievement of employee performance. Talent management
held in the company has been able to provide provisions for employees in
improving the ability to work to produce quality and quantity in accordance
with company goals.
This research is in line with research conducted by Octavia, (2018) on the
effect of talent management on employee performance (study on employees of
PT Pertamina Geothermal Energy Area Ulu belu) stated that there is a positive
influence of talent management on employee performance. The study (Savitri &
Suherman, 2012) stated that there is a significant influence of talent management
on employee performance. With vacancy information through the mass media
, it will be able to obtain candidates who have the talent to fill positions
according to expertise. When you have obtained talented candidates, orientation
will be carried out, training in accordance with expertise to support employee
skills to be ready to work. When the talents owned by employees can be
managed properly by the organization, each employee can produce optimal
performance, so as to improve organizational performance .
The Effect of Knowledge Management on Employee Performance at TVRI
West Sumatra Province
Based on the results of hypothesis testing, it was found that knowledge
management variables had a positive and significant effect on employee

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Aminar Sutra Dewi, Winda Adila│ The Effect of Talent Management and Knowledge Management on
Employee Performance at TVRI Est Sumatra Province

performance at TVRI West Sumatra Province, where the t value was calculated
more The magnitude of the table t and the significance value are smaller than
the alpha value. Thus the second hipotesis (H2) in this study was declared
accepted.
This shows that knowledge and performance management has a
unidirectional movement, meaning that when a company wants to improve the
performance of its employees things need to be done by adding value The
higher the management of knowledge, the better the performance will be because
the employee will be easier to carry out activities work that fits the field they
are running and that applies it to how to get the job done better.
This research is in line with new opinions (Choirun, et al (2016).
Knowledge management has a positive and significant effect on employee
performance. Where knowledge management is important in the learning
process of an organization, the knowledge possessed by the organization must
be able to provide progress for employees. So that the ability to manage
knowledge can encourage organizations to be more competitive. Employees
who have talents must be supported by knowledge so that terus develops and
can improve employee performance. This is also in line with research by Harmen
and Tri (2018) states that knowledge management has a significant effect on
employee performance. Strengthened by findings from research conducted by
Jamaludin (2019) & Kardo, et al (2020) stated that knowledge management has a
significant effect on employee performance

IV. Conclusion
In the results of the research that has been carried out that the conclusions in this
study are made as follows:

1. Talent Management (X1) has a positive and significant effect on the performance of
employees at TVRI West Sumatra Province, the better the talent management, the
more work in the agency. hence the conclusion is that the first hypothesis is
accepted.

2. Knowledge Management (X2) has a positive and significant effect on the

performance of employees at TVRI West Sumatra Province, the higher the
knowledge management in the company, the more it will improve the performance
of its employees . hence the conclusion is that the second hypothesis is accepted

References
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Employee Performance at TVRI Est Sumatra Province

Karyawan Tetap.
Islamy, F. J. (2013). Pengaruh Budaya Organisasi Terhadap Implementasi Knowledge
Sharing Dosen Tetap Universitas Pendidikan Indonesia Bandung Tahun 2013. -, 1–13.
Latief, A., Medagri, E., Suharyanto, A., & Nurlina. (2019). Pengaruh Manajemen
Pengetahuan, ketrampilan dan Sikap Terhadap Kinerja Karyawan. JUPIIS: Jurnal
Pendidikan Ilmu-Imu Sosial, 11(2), 173–182.
Nisa, C., Ridha, Astuti, S., Endang, Prasetya, & Arik. (2016). Pengaruh Manajemen
Talenta Dan Manajemen Pengetahuan Terhadap Kinerja Karyawan. Jurnal
Administrasi Bisnis, 39(2), 141–148.
Octavia, H. V. (2018). Pengaruh Manajemen Talenta Terhadap Kinerja Karyawan (Studi
Pada Karyawan PT Pertamina Geothermal Energy Area Ulubelu). Jurnal
Administrasi Bisnis, 60(2), 186–191.
Ramadhani, F. E., Malang, U. M., Malang, U. M., & Malang, U. M. (2020). Jurnal Bisnis
dan Manajemen Talent Management Dan Knowledge Management Terhadap
Kinerja. 7(2), 126–132.
Safarni, Y., & Gadeng, T. (2018). Pengaruh Knowledge Dan Talent Management
Terhadap Kinerja Pegawai Bappeda (Badan Perencanaan Pembangunan Daerah) Di
Kabupaten Aceh Barat Daya. Jurnal Ilmiah Manajemen Muhamadiyah Aceh
(JIMMA), 8(1), 75–90.
Savitri, C., & Suherman, E. (2012). Pengaruh Manajemen Talenta Terhadap Kinerja
Pegawai Ubp Karawang. Jurnal Buana Ilmu, 130–144.
Setiadi, I., Fauziati, S., Kusumawardani, S. S., Grafika, J., & Yogyakarta, N. (2017). Studi
Awal Analisis Kesiapan Implementasi Knowledge Management di Sekolah Tinggi
Penyuluhan Pertanian Magelang. Prosiding Seminar Nasional ReTII, 568–573.
Sutra dewi, A., & Ekacuazti yandri, P. (2021). Pengaruh Manajemen Bakat dan Budaya
Organisasi terhadap Kinerja Pegawai pada BPKAD Kota Padang Jurnal jips. Jurnal
JIPS, 5(2), 25–46.
Sutra Dewi, A., & Yuvika, R. (2022). Pengaruh Motivasi dan Lingkungan Kerja terhadap
Kinerja Pegawai di Dinas Perdagangan Kota Makassar. Jurnal Asy-Syarikah: Jurnal
Lembaga Keuangan, Ekonomi Dan Bisnis Islam, 15(2), 648–657.
https://doi.org/10.47435/asy-syarikah.v4i1.854

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TALENT MANAGEMENT AND WORK MOTIVATION TO IMPROVE

PERFORMANCE OF EMPLOYEES

Bella Novinda Damarasri1, Eeng Ahman2

1)
Universitas Pendidikan Indoneisa,
2)
Universitas Pendidikan Indonesia.

ARTICLE INFORMATION Abstract: Purpose - To find out (1) An explanation of

Received: 01st April 2020
Revised: 20st April 2020
Issued: 27th April 2020
Corresponding author:
Bella novinda Damarasri
E-mail:
bellahutagalung03@gmail.com
eengahman@upi.edu
DOI:10.31933/DIJEMSS
employee performance, (2) describing Talent
Management, (3) an explanation of Work Motivation,
(4) the effect of Talent Management and Work
Motivation on Employee Performance. Design /
Methodology / Approach – This research was
conducted on a sample without random, using
descriptive and verification approaches with
explanatory research methods and data analysis
techniques using multiple linear regression. Finding –
Talent Management and Work Motivation affect to
Employee Performance Originality - The difference is
determined in the independent variables, the object
and method of the study, the population and research
sample, the research period, the measurement
instrument and the results of the research, as well as
the theoretical sources based on international journals
and books and research results.

Keywords: Talent Management, Work Motivation,

Employee Performance.

INTRODUCTION
Facing the era of Industrial 4.0 the role of human beings becomes an organizational
success in achieving goals (Marin-Garcia & Zarate-Martinez, 2017).) Without the role of
human resources itself the goals of the organization cannot realize conceptual plans.
(Shalhoub et al., 2016) and as an object of driving the organization's direction to stay
competitive (Govindarajan dan Fisher 1990). The existence of qualified human resources can
be a complement to other functional strategies, so as to make the company much more
confident in facing business competition and as a profit-producing company.(Wahyono,
2018)
The main problem of human resource management is focuses on employee
performance, companies must implement effective and comprehensive strategies (Linz 2012).
Employee performance must have proportional standards that encompass the ability of

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human resources in the company with the expectation that work targets can be realized on
time so that it will be in accordance with company goals (Goksel et al., 2017). Research
(Octavia, Hanna Viany & Susilo, 2018) stated that excellent performance gets a percentage
between 86% -100%, while good criteria get a percentage of 71% -85% and the medium
category gets a percentage of 57% -70%. And the low and very low categories are at the
percentage of 31% -56% and below 27%.
The percentage level shows the need for managing human resources in a company to
balance the needs of employees and the ability of the company (Sonny, 2012) The quality and
quantity of employee work is a very important element in improving the performance of a
company (Sholehatusya’diah, 2017). Through employee performance appraisal must be done
by the company regularly, because with performance appraisal, an organization or company
can find out how much an employee contributes to their company. The problem that is still a
research issue since 1955 until now regarding the problem of employee performance, both
service companies, manufacturing or government agencies around the world that has
decreased (Brayfield & Crockett, 1955).
Employee performance problems are considered to have urgency because employees
are the driving force of a company, which means ignoring this problem, so it has the potential
to damage the company's system (Hakim, 2013: 115) employees with low performance
levels, and lack of ability to use the equipment and technology that is very possible
employees produce poor performance and not in accordance with company goals and targets
(García-Pinillos, et al, 2015: 6). On the other hand, employees with low work experience are
considered to have no qualifications, which only becomes a burden on the company (Ulku &
Pamukcu, 2015: 12), which can eventually lead to termination of employment with the
employee.
Another fact explains that many companies are already accustomed to using
technology systems in company operations so that employees need to improve their
competence in order to compensate for changes in existing conditions (Taormina, 2011: 12).
Another problem of employee performance in 2017-2019 is that employees have a low
mentality so they decide to resign from the company because they feel the company's
demands are considered quite high (DeWeese et al, 2019:. 13).
Table 1.1
Result of Assessment of Education Performance
Smkn 3 Baleendah
Nilai Kategori Tahun
Penilaian 2014 2015 2016 2017 2018
86-100 Sangat 50 50 30 20 17
Baik
71-85 Baik 35 30 35 33 33
56-70 Cukup 15 20 20 27 25
41-55 Kurang 15 15 20
Baik
<40 Buruk 5 5
100 100 100 100 100
Source: Survey result at SMKN 3 Baleendaah

The results of the assessment performance education staff at SMKN 3 Baleendah in

2014 and 2015 experienced a very good percentage of employees moving and the consistency
rate was 50% at a conditional value of 86> however, in 2016 to 2018 the number of
employees experiencing unfavorable conduct conditions was corrected by an average of

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16,7&. At a conditional value <40 there are employees who experience a drastic decrease in
performance of around 10% of the total employees.
The company should make the phenomenon of the decline in employee performance
as a barometer in making policies more progressive for the progress of the company, because
if left unchecked it will reduce the achievement and productivity of the company every year
(Lipman, 2016). This problem cannot be ignored because it will have an impact on the
company's progress (Sinex & Chapman, 2015) The impact of employee performance that
does not get more attention, according to the theory explaining performance problems needs
to get recognition, analyze, and converge a reality that occurs through reinforcement,
expectations, actualization, social learning, work equipment, and roles in the organization
(Armstrong, 2014), theory can provide an explanation that employee performance problems
must be correlated to psychological and physiological improvement if both components are
not given will have an impact on employee performance problems (Lipman, 2016), the
company will stagnate, slow down the production process, and also weaken competition with
competitors (Ulku & Pamukcu, 2015).

LITERATURE REVIEW
It is wrong if a human ability is said to be a standard at a certain point or point (not
fixed ability), because an ability of its nature will continue to develop (developing abilities).
For this reason, potential energy (talent) requires generation, processing or can be called the
actualization process (Mauner dalam Sheal, 2003:47). Talent management is a sequence of
human resource processes in integrated organizations designed to develop and maintain
productivity of the employees involved (Irmawaty dan Hamdani 2016; Silvianita dan Anjani
2016; Octavia, Hanna Viany & Susilo 2018). Based on research conducted by The Office of
Talent Management and Organizational Development (2010), defines that talent management
is the arrangement of organizational human resource processes that are designed to attract,
develop, motivate, and retain productive and engaged workers. Talent is not enough this is
because someone who has talent but does not take the necessary action then he never gets
the expected results. (Lewis dan Heckman 2006; Cappelli 2008; Collings dan Mellahi 2009;
Scullion dan Collings 2011; Vaiman, Scullion, dan Collings 2012; Dries 2013 ; Schiemann
2014; Carpenter 2017) Someone who has talent but does not focus on his field then he will
not be able to improve his performance. Someone who has talent but does not practice then
he will not reach perfection in his work. Thus, someone who has talent needs to take
appropriate actions to hone and utilize these talents to become self-strength in the work.
(Collings, Scullion, & Vaiman, 2015)
Talent Management is a management process that emerged in 1990 and continues to
be used, because more and more companies are realizing that the success of their business
is determined by the talents and abilities of their employees. Companies that practice Talent
Management concept have used it to deal with employee retention issues. There are several
dimensions that can be a supporting factor for talent management according to (Carpenter,
2017c) including, 1) Behavior, 2) Career Experience, 3) Potency, 4) Personal character
quality, 5) Initiative, 6) Learner's soul, 7) Cooperation, and 8) Skills. In addition, the desire
to act employees who can arise from within sometimes must be injected and strengthened
from outside parties, in order to align motivation with employee needs (Jang, et al., 2011:4).
then motivation can be the second solution to performance problems, then motivation can be
the second solution to performance problems, (Tella, 2016:5)
Motivation can be defined as an individual's drive to take action because they want
to do it, if the individual is motivated then the individual will make positive choices to do

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something (Veithzal. 2015:607), if the work environment is comfortable even more so if

employees already have a sense of belonging to the company then the motivation will be a
measure of how long a person can maintain their business, because motivation is a value that
guides the principles of human life based on overall needs so that people remain consistent
(Yagyagil, 2015:3), some motivation theories works with the assumption that by giving
opportunities and the right stimulation, employees will work well and positively, managers
need to be careful in providing reinforcement to employees. Motivational variables have two
primary indicators. 1) Individual input includes an individual's increased ability, expertise,
emotional control and value. 2). The work context includes the physical environment,
appreciation, reinforcement, training, social norms and organizational culture. These two
main factors can be indicators in resolving problems of declining company performance
standards because they have motivational processes that encompass attention, direction,
perseverance, and work intensity so as to result in positive work behavior, especially in
providing solutions to the problem of timeliness of employees in completing work (Kinicki,
2014:330). It very relevant if enforced in the company because motivation does not only talk
about money but also about honor, appreciation, physical activities that require a sense of
security (Sharma et al., 2015:5).
Speaking of motivation, Herzberg's theory of (Kiruja, 2013) contained four
dimensions of motivation, namely the motivators and hygiene factors, in motivators there are
1) achievement, 2) recognition, 3) job interest, 4) responsibility, and advancement. Whereas
the dimensions of hygiene factors appear more, including 1) salary and benefits, 2) working
conditions, 3) company policy, 4) status, 5) job security, 6) supervision and autonomy, 7)
office life, and 8) personal life.
The development of the company will be far more optimal if all directors are able to
provide intensive motivation (Kiruja, 2015), so that employees will experience accelerated
performance in order to achieve company goals. Performance is able to show whether
employees have met the desired target of employees, both in terms of quality and quantity,
in performance are also able to make an assessment because in a management organization
without performance appraisal, the company does not know the next step for company
progress (Veithzal, et al, 2015:405). Performance is a result of work achieved by a person in
carrying out the tasks assigned to him based on skill, experience and sincerity and time of
measurement (Albrecht, et,al 2015:3). Employee performance can be measured through 1).
Punctuality to show dedication to the company, 2). Achieved targets to prove the
contribution made to the company, 3). Job understanding shows responsive ability,
responsiveness, 4). Understanding operational standards show employees who are guided by
company procedures 5). Submitting ideas and ideas shows a dynamic employee who can be
a solution provider, 6). Cooperation, employees must be able to work together with other
employees in completing a job 7). Responsibility, shows a loyalty for the company and 8). In
the way of leadership, employees must be able to lead other colleagues when working with
teams (Zachary, 2017:237).

PICTURE 1
RESEARCH PARADIGM
(Tella, 2016:5); Albrecht, et,al 2015:3; Veithzal, et al, 2015:405).

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RESEARCH METHODS
This research was conducted to determine the effect of Talent Management and
Motivation on Employee Performance. The independent variable in this research is Talent
Management and Motivation. while the dependent variable (dependent variable) in this
research is Employee Performance.
This research was conducted at SMKN 3 Baleendah. The type of research used is
descriptive and verification. Based on the type of research, the method used in this research is
explanatory research which aims to test the hypothesis between independent variables with
the dependent variable. Data collection techniques used are literature study and
documentation.

FINDINGS AND DISCUSSION

Based on the results of calculations using multiple linear regression between the effect
of talent management on employee performance of 0.984 and the influence of motivation on
employee performance of 1,178.
Table 1.2
Output data analisis memakai aplikasi SPSS
Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate
a
1 .740 .548 .534 7.648

a. Predictors: (Constant), Motivasi (X2), Talent Management (X1)

a
ANOVA

Model Sum of Squares df Mean Square F Sig.

b
1 Regression 4814.078 2 2407.039 41.150 .000

Residual 3977.584 68 58.494

Total 8791.662 70

a. Dependent Variable: Kinerja (Y)

b. Predictors: (Constant), Motivasi (X2), Talent Management (X1)

a
Coefficients

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 14.051 8.059 1.754 .086

Talent Management (X1) .098 .031 .287 3.169 .002

Motivasi (X2) 1.178 .130 .817 9.035 .000

a. Dependent Variable: Kinerja (Y)

Hypothesis testing in this study is to use the F test and t test. Based on the results of
the F test to simultaneously test the hypothesis, the Fcount value of 41,150 is obtained for
talent management and motivation simultaneously affect to performance employee. Based on

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t test for talent management and motivation with a significance level α = 0.05, a tcount of 3,169
and ttable 1,99547. So the results of sig. 3,169>1,99547 so can be concluded that talent
management effects performance employee. Obtained by tcount 9,035 for Motivation. Then a
decision can be taken that motivation affects performance employee.
This means that there is a significant influence of talent management on employee
performance. In accordance with the results of research conducted by (Vaiman, Scullion,
Collins 2012), (Dries, 2013), (Schiemann, 2014) dan (Carpenter, 2017) which states that
talent management influences employee performance.
There is a significant influence of motivation on employee performance. This is
consistent with research conducted by (Balkin, 2017).(Zachary, 2017). and (Sakamoto, 2017)
which states that motivation will affect employee performance.

CONCLUSION AND RECOMMENDATIONS

Based on the discussion of theory, research results, and linear regression analysis testing
conducted on the effect of talent management and work motivation on employee performance
can be concluded as follows:
1. The description of talent management is good enough. This can be seen from the
dimension of talent management representatives of the organization.
2. Description of motivation is good enough. This can be seen from the representative
dimension of motivation.
3. The employee's performance description is good enough. This can be seen from the
increasing dimensions of work output.
4. Based on the results of the research states that, talent management affects employee
performance. shows that the better the talent management of the company, the better the
performance of employees.
5. Based on the results of the research states that, work motivation has an effect on employee
performance. shows that better work motivation will also result in better performance for
the company.
6. Based on the results of the research states that, talent management and motivation have a
combined (simultaneous) effect on employee performance. shows that the better the talent
management and motivation the company provides to employees, the better the
performance will be.

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