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UFHRD Conference 2016: Leadership, Diversity and Changing
Practices in HRD in a Global Context
Title of the paper: Thai Perspective on Coaching Practices for Talent in Small and
Medium Enterprises (SMEs): A case study from Thailand
Submission type: Working paper
Stream: Global, Comparative and Cross-Cultural Dimension of HRD
Name of author: Fuangfa Panya, PhD student
Director of Study: Dr. Aileen Lawless, Senior Lecturer
Address: Liverpool Business School, Liverpool John Moores University, Redmonds
Building, Research Centre, Brownlow Hill, Liverpool, England, L3 5UG
E-mail address: [email protected]
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Abstract
Objective: The purpose of this working paper is to present the findings of coaching
practices for talent within one Thai company classed as an SME – a small and
medium enterprise. This case study organisation, a critical case, was selected as a
top performing organisation, having won an SME national award in Thailand.
Design & Methodology: A case study methodology was utilised and a variety of
qualitative methods were employed, including document analysis, non-participant
observation and in-depth interviews. Purposive sampling was used to identify 9 key
informants within the SME. The data generated during the field work has been
analysed by a combination of constant comparative method and template analysis.
Results & Conclusion: The initial analysis reveals that no formal coaching sessions
take place, but informal coaching is evident. An interesting finding is the key role of
the owner-manager and the influence of his Buddhist beliefs. The owner-manager
talked about using a ‘Buddhist’ approach as the key concept underpinning Human
Resource Development (HRD) practices which play a role in many activities and
practices in this organisation. The owner-manager believed that a Buddhist approach
to coaching provides a discipline that enables the employees to be good people; for
him this was the basis for building talent. This paper illuminates the cross-cultural
dimension of HRD, with a particular focus on coaching practices for talent within a
Thai SME context. The paper provides insight into the complex relationships at play
within this critical case study and in doing so cautions academics and practitioners
who adapt an overly westernised view of HRD.
Keywords: Buddhist approach to coaching, Human Resource Development,
Coaching, Talent, SME
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Introduction
Coaching is one of the most widely used Human Resource Development (HRD)
interventions for improving learning processes and it is a key element in the success
of individuals and organisations (Ellinger et al., 2003; Whybrow and Lancaster, 2012;
Neale et al., 2009; Bueno, 2010; Lane, 2010; Ellinger and Kim, 2014). However, the
volume of research on coaching in Small and Medium Enterprises (SMEs) remains
relatively low when compared with research on large companies or multinational
corporations (Peel, 2008; Lane, 2010). It is generally accepted that SMEs are
influential in sustaining the strong economic growth of many countries around the
world (Craig et al., 2004; Jasra et al., 2011; Ates et al., 2013). Unfortunately, most
SMEs have the problem of a lack of time and financial investment in HRD (Samra,
2010), although HRD is the key factor affecting the survial and growth of SMEs
(Pansiri and Temtime 2008; Ahmed et al., 2011). This working paper is set within the
context of Thailand where SMEs have played a vital role in increasing Gross
Domestic Product (GDP) and the Thai economy (APEC, 2013; Chittithaworn et al.,
2011; Buranajarukorn, 2006; Kluaypa, 2013; Pruetipibultham, 2010; OSMEP, 2014).
Research focus
In Thailand, SMEs account for 99.73 per cent of the total establishments in several
sectors, with various conditions and problems that may require different measures
(OSMEP, 2015). It is thus necessary to study these conditions and problems to
acquire information for analysis. Previous studies pointed out the fact that Thai
SMEs have barriers to effective business operation, such as management,
accounting, financing, production and human resources (APEC, 2013), and they are
also unable to fully adopt the best practice from the West; it may be that HRD in
Western concepts do not transfer easily into other cultures, SMEs, or businesses
with different operating contexts (Thassanabanjong et al., 2009). In addition, much
Organization Development (OD) proposed by foreign specialists does not work well
in Thai companies because of the cultural differences (Akaraborworn and McLean,
2001). Thus, it is important for organisations in Thailand to develop business
approaches and effective working methods that are appropriate in the Thai context
(Pruetipibultham, 2010).
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Moreover, this paper focuses not only on coaching practices in SMEs but also
talented people who are viewed as the source of competitive advantage (Chamber et
al., 2007; Srivastava and Bhatnagar, 2008). Both coaching and talent are beneficial
in the business world (Gallardo et al., 2013; Hartmann, et al., 2010), however
coaching research has a tendency to focus on large companies and there is a lack of
coaching research within the SME context (Peel 2008). The purpose of this empirical
research paper is to present findings that highlight the global, comparative and
cross-cultural dimension of HRD, with a particular focus on coaching practices for
talent. Many authors argue that coaching for talent is a critical success factor for
organisations (Malikeh et al., 2012; Porkiani et al., 2010; Norma D'Annunzio-Green
et al., 2008). The significance of this purpose can be summarised by the following
questions that will be of interest to HRD scholars and practitioners:
1. What are the coaching practices within this critical case study organisation?
2. What is the perceived effectiveness of these coaching practices from both an
employer’s and an employee’s perspective?
Literature review
Definition of Coaching
Coaching can be used and applied in many areas (Passmore, 2010; Bono et al.,
2009; Ellinger et al., 2003; Hamlin et al., 2008) and there are therefore a wide variety
of definitions and descriptions of coaching in the present literature. In this paper, the
content of definitions were scrutinised in order to establish a definition which shared
common goals related to enhancing performance. Consequently, I defined coaching
as “a development method that can improve employee’s performance with regard to
achieving their goals, through structured conversation and a structured learning
process, and a good relationship between coach and coachee".
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The Value of Coaching for Talent
There are many different definitions of talent in the academic HRM literature; talent
may refer to people or characteristics of people (Gallardo-Gallardo et al., 2013). In
conclusion, talent refers to a group of employees who are high performers and
possess a high potential of knowledge, skills, capability and commitment (Gallardo-
Gallardo et al., 2013; Ulrich, 2008; Cheese, 2007; Bethke-Langenegger, 2012). This
may lead them to dominating others, meeting the appropriate needs of the
organisation, and enabling the business to achieve its goals. In this study, I defined
talent as “an employee having high potential, such as high-level loyalty, the ability to
learn, honesty and so forth, which is how all of the talented employees in this paper
have been identified by the owner-manager or their coaches”.
Many studies have accepted that coaching is an important role of HRD professionals
(McLagan, 1999; Davis et al., 2004; Jarvis et al., 2006) and that it has the potential to
enhance individuals, teams, organisational growth, and learning development
(Ellinger and Kim, 2014; Hamlin et al., 2008). In a survey, 48 per cent of coaching
was used to develop talented people or those with high potential (Coutu and
Kauffman, 2009), who were viewed as the source of competitive advantage and
excellent performance (Srivastava and Bhatnagar, 2008; Gallardo-Gallardo et al.,
2013). Talent is valuable, rare and difficult to replace, and organisations should take
some actions, such as recruiting and retaining them, to reduce the risks of business
(Cairncross, 2000; Barney and Wright, 1997). One key result of coaching is that it
retains high- performance employees (Homan and Miller, 2006), so this paper on
coaching is used to develop talented employees in SMEs using the literature review
to ask questions.
Overview of SMEs in Thailand
SMEs comprise 99.73 per cent of all establishments in Thailand, and provide 80.30
per cent of overall employment (OSMEP, 2015). Thai SMEs have been divided
according to three broad categories: Production, Trading and the Service sector.
These are defined by their fixed assets and the number of full-time employees, as
can be seen in Table 1.
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Table1. The Categorisation of Thai Small and Medium Enterprises (SMEs)
Small Enterprise Medium Enterprise
Employees Fixed Assets
(Million Baht)
Employees (Persons) Fixed
Assets
Manufacturing <= 50 <= 50 >50-200 > 50-200
Trading
- Wholesaling <= 50 < =25 >25-50 > 50-100
- Retailing < =30 < =15 >15-30 > 30-60
Service <= 50 <=50 >50-200 > 50-200
Source: Adapted from the Office of SMEs Promotion (OSMEP, 2015)
Note: Exchange rate at 50 Baht = 1 UK pound.
SME National Awards
The SME National Awards Competition selects the best SMEs in accordance with a
set of criteria from the Thailand Quality Award (TQA), which is considered a world-
class award. The fundamentals of the technical and decision-making processes are
identical to the Malcolm Baldrige National Quality Award (MBNQA) of the United
States of America, as the MBNQA is being adopted by many countries around the
world (Meethom and Kengpol 2008). The SME National Award sets criteria from the
TQA Framework consisting of seven categories, such that contestants with scores of
at least 800 points will receive SME National Awards, while 700 – 799 points equates
to an SME Outstanding Award, and 600 – 699 points is an SME Rising Star Award.
This competition started in 2006; the competition has been held for 7 times and
around 200 SME entrepreneurs have been granted the awards, with approximately
30 SMEs being granted the SME National Award (SMEs National Award, 2015). In
this paper, one SME which was granted an SME National Award was selected as the
critical case study.
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Next Steps
Based on both the literature review and findings, it can be summarised that there are
missing gaps in this area of study. Filling the gap will make a contribution to
knowledge in this field, and it would help to develop talented employees and to
strengthen HRD management and the sustainable growth of SMEs.
For the full study, a multiple-case study will be used as the research strategy and this
will include 3 cases representing each SME sector in Thailand: Production, Service
and Trading. Three cases will be chosen from among the top performing SMEs,
distinguished by receipt of an SMEs National Award, earning more than 800 points,
and therefore considered as critical cases, which is a rationale of potential case
designs (Yin, 2014, Flyvbjerg, 2006).
As this is a working paper, the findings are not completed at present. Case study 1 in
one Thai SME company has been conducted and it will be presented at the UFHRD
conference to ensure the feasibility of the next steps in a larger study. Therefore, the
findings from case study 1 will be analysed and written up before progressing to case
study 2; this will be repeated for case study 2 before progressing to case study 3.
This iterative approach will enable the researcher to remain reflective and reflexive
as the research progresses.
Methodology
In this paper, I adopted a social constructivist ontology and interpretivist
epistemology, as a research paradigm with a constructivist perspective is actively
constructed through interaction with the world on the basis of the existing knowledge
and experiences in an individual’s mind (Applefield et al., 2000). We assume that the
terms ontology and epistemology are central to social science research, as
‘Ontological assumptions are concerned with what we believe constitutes social
reality’ (Blaikie, 2000: p.8), while reality in interpretivist research is generated through
social construction (Klein and Myers, 1999). ‘If ontology is about what we may know,
then epistemology is about how we come to know what we know’ (Grix, 2002). It is
clear that choosing this epistemological position will lead one to use a methodology
with an inductive approach for analysing qualitative data. Also, it was designed as a
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qualitative research which is suitable for answering questions of interpretation from
the perspective of the study participants (Marshall and Rossman, 2014), and which
can produce reliable and valid findings through a critical case study.
This paper draws on material from a larger study which has 3 critical case studies as
mentioned above. The paper focuses on one critical case study organisation
because this helps the author to ensure the feasibility of the next steps in a larger
study, and it is useful for trying out strategies, such as gaining access to each
company, finding ways to eliminate any barriers, etc.
In the data collection process, the setting is the trading sector of SMEs. Data was
gathered from document analysis, one-to-one semi-structured interviews, and non-
participant observation, with 9 key informants through purposive sampling. The
owner-manager was interviewed as the first participant, and he was also approached
as the gate keeper and initial informant. The owner-manager then identified 4
managers as coaches in the interview process. The final interview process was with
coachees who were identified by their coaches as being ‘talented’. Moreover, this
SME was observed for a coaching session and its working environment was
examined, along with gaining access to relevant documents. Thai language was the
primary means of communication; all of the questions were asked in the Thai
language in order to put the participants at ease when answering. In addition, the
data was generated sequentially and each stage of the research process informed
the next stage.
In the data analysis process, the data generated during the field work was
analysed by combining the constant comparative method (Glaser and Strauss, 2009)
and template analysis (King, 2004). This was useful for finding patterns and
developing the themes of this case study, in which all of the data were transcribed
verbatim in the Thai language. The coding for data interpretation and analysis was
therefore performed on the Thai interview transcripts, and all the themes and
participant statements presented in this paper were translated into English and
checked by a proofreader.
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The conceptual framework
A design map with key five components is presented (see Figure 1) which ‘can be
useful is as a tool or template for conceptually mapping the design of an actual study’
(Maxwell, 2012: p.8).
Figure1. A design map adapted from Maxwell, 1996
I integrated knowledge about coaching, talent and the Thai SME context together
with the literature review and findings to develop the conceptual framework. This can
be considered as a tentative theory (Maxwell, 1996), and it will be flexible to
emergent concepts and themes (Layder, 1993) in the next study.
GOALS
To investigate the coaching practices within a Thai SME case study, in order to develop a coaching framework for talent, with the aim of making a theoretical and
practical contribution.
CONCEPTUAL FRAMEWORK
Own background in HRD education.
Literature on coaching, talent and SMEs.
Own experiences as a lecturer, study of a coaching training programme, and understanding of Thai SMEs context.
RESEARCH QUESTIONS
1. What are the coaching
practices within this critical case study organisation?
2. What is the perceived effectiveness of these coaching practices from both an employer’s and employee’s perspective?
METHODS
Document analysis, non-participant observation and semi-structured interviews were employed in a qualitative research methodology.
VALIDITY Triangulation of
sources, methods, and theories.
Search and comparison with other studies in the
literature.
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Figure2. The conceptual framework
Findings
Background of the SME
SME A (a pseudonym was used to represent all the participants’ names), is managed
by Mr. Owner who started the recycling business with capital of 1,000 baht (£20) and
an old pick-up truck going round to villages. It now operates waste recycling trading,
and the network has been widely expanded from a national level to an international
level, with many franchise branches across Thailand and overseas. SME A has also
obtained many awards, such as the National Outstanding Organisation in Social
Development, a Golden Decoration from His Majesty the King, the World Aware
One SME
The Owner-Manager
(1 person)
The role of the Owner-manager Employer’s Perspective Coaching Practices Coaching Techniques
The Characteristics of Talent The Characteristics of Coachee Employee Perspective Concepts of Talent
The Manager as Coach Concept Concepts of Coaching Employee’s Perspective The Characteristics of Coach
Effectiveness of SMEs A Coaching Framework for Talent
Managers as Coach
(Talent= 4 persons)
Subordinates as Coachees
(Talent=4 persons)
Identify
Identify
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Business Awards, and the ASEAN Business Awards. This company has been
registered as a Thai SME representative of the trading sector and it received an SME
National Award in 2012, earning 801 points. This result comes from the feedback
report, which is the confidential document from the Office of SMEs Promotion
(OSMEP; a governmental agency) that was sent directly to SME A only and it is not
normally disclosed to the public because of internal audit results. However; the
owner-manager agreed to disclose this information in the public interest, and the
results are presented in Table 2.
Table2. Evaluate Results of SMEs National Award 2012
Criteria
Full Score
Evaluate Results
1. Leadership
2. Strategic Planning
3. Customer and Market Focus
4. Measurement, Analysis, and Knowledge Management
5. Human Resource Focus
6. Process Management
7. Business Results
120
120
120
100
140
160
240
103
96
97
83
111
124
187
Total 1,000 801
Source: feedback report of SMEs National Award, 2012
Coding and Themes
9 participants’ interviews, observations and document analyses were revised and studied thoroughly. All 3 themes and 11 sub-themes emerged from the critical case study as follows:
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Theme Sub-theme
Coaching Practices for Talent Informal Coaching
Coaching Techniques
Measuring and Evaluating
The Problem
Suggestion
Perspective of Coaching Effectiveness of Coaching
Benefit of Coaching
Negative Effect of Coaching
The Characteristics The Characteristics of Talent
The Characteristics of Coach
The Characteristics of Coachee
Initial analysis reveals that no formal coaching sessions take place but informal
coaching is evident. The informal coaching can be identified by three main practices:
1) On-the-job coaching using the manager as a coach. In addition, the senior
colleagues sometimes were assigned to be a coach instead of the manager.
2) Friendly coaching, there being a close relationship between the coach and
coachee. They have a tight relationship to help each other.
3) The coach as a ‘good’ role model, especially, the good role model from the owner-
manager, who uses a Buddhist approach as the key concept of organisational
development.
Suggested techniques for coaching for talent are:
1.) To give them freedom to work creatively
2.) To provide challenging tasks and develop them consistently through job
assignments
However, an interesting finding emerging from the initial analysis is the key role of
the owner-manager and the influence of his Buddhist beliefs. The owner-manager
talked about using a ‘Buddhist’ approach as the key concept underpinning HRD
practices. Activities that informed these practices included religious ceremonies,
making merits, and providing areas around the factory for religious imagery. The
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owner-manager believed that a Buddhist approach to coaching provides a discipline
that enables the employees to be good people; for him this was the basis for building
talent.
The following is an interesting direct quotation which represents that the owner-
manager believes that Buddhism’s teachings affected the coaching practices for
talent in this SME. He said:
“This SME emphasizes doing good things, helping others, and having a lot of making
merit, many activities for charity. Here we set the policy encouraging our employees
to make merits and do charitable activities often; our staff are encouraged to pray
and the monks are usually invited to preach to the employees. We also have the
Buddha image; the Buddha image is set for worship in my factory. This place has
preaching practices, giving dharma, and provides the principles as the tool for
binding minds. For giving the Buddhism’s principles, it is perfect for our employees.
Performing these principles, they are developing themselves. Every year I have a
merit project to take my employees to India in order to practise dharma and prostrate
themselves at the Bodhi tree and Buddhist temple. All the bad behaviours and
malignant attitudes of those employees are completely vanished.”
With strong support from the owner-manager, one of the coaches said: “It is wrong for us to coach others to do good things but then misbehave ourselves;
therefore we have to be the good model and coaching is about skills transfer; it is
necessary to pass good things to replace the bad things. It the prototype is good, the
followers are invariably good and this is the virtue concept”.
Additionally, the data from the observation supported strongly the fact that they have
5-6 areas around the factory which serve as a spiritual house, installing the image of
Buddha, Ganesha, the Statue of King Naresuan, and other sacred things for binding
the minds of employees and having them paying homage, pray and worship (see
pictures 1-3). These act as the sources of morals for the employees. The data from
the documents showed in more detail that this SME helped disadvantaged people to
secure a job, something that they have done for 10 years now, and they have many
CSR activities.
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Picture1. This statue of Buddha is at the front of the factory.
Picture2. Image of Buddha, the King, awards, and sacrifice are in the living room
Picture3. This image of a monk is in the office.
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Limitations
The limitation of this paper being a one-case study has been considered. Because it
deals with only one SME in Thailand, it is not certain that the results from this
particular case study apply elsewhere. Hence, further research should be carried out
in SMEs, especially in those where the new concept of HRD has not yet been tested
or implemented.
Implications
Contribution to Knowledge
The full study will make both a theoretical and practical contribution to knowledge. In
terms of theoretical contribution, it offers an understanding of knowledge, and it will
add various literature streams to the study of SMEs. In practical terms, coaching and
talent are seen as key elements in the success factor of individuals and
organisations. SMEs support the strength of economic development. Moreover,
having a coaching framework for talent, matching the SME context, can be useful for
employees, SMEs, government sector policy makers, other related partners in
Thailand, and quite possibly other countries where similar development would also
be beneficial.
In this working paper I have, albeit tentatively, raised the possibility of coaching
practices for talent in SMEs. Further conceptual work is required to explore the
potential of this concept, so I welcome feedback from the approach taken and the
insights revealed.
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ZEUS, P. & SKIFFINGTON, S. 2000. Complete guide to coaching at work, Sydney ; London : McGraw-Hill, 2000.6-73.