1 TALENT MANAGEMENT: DEVELOPING OR PREVENTING KNOWLEDGE AND CAPABILITY? Associate Professor Deborah Blackman National Institute for Governance, University of Canberra Canberra, ACT, 2601 Australia Email: Deborah.Blackman@canberra.edu.au Dr Monica Kennedy National Institute for Governance, University of Canberra Canberra, ACT, 2601 Australia Email: monica.kennedy@canberra.edu.au 1 Abstract This paper discusses the possibility of a growing tension between employee progression and capability development which emerges as a result of talent management strategies. It is argued that the inter-relationship between the increasing trend to develop talent management strategies, combined with skills shortages and the attitudes of ‘Generation Y’ employees, leads to the outcomes being, potentially a reduction, rather an increase, in organisational capability. A qualitative case study is used to demonstrate this potential relationship and develop an agenda for future research. 1 Associate Professor Deborah Blackman National Institute for Governance, University of Canberra Canberra, ACT, 2601 Australia Phone: + 61 2 6201 5076 Fax: + 61 2 6201 5239 Email: Deborah.Blackman@canberra.edu.au