This uses a combination of charade (joining word parts) and container (one word around another). A charade links separate words or abbreviations together, while a container puts one word inside or around another.
Look for a word meaning 'live' and a word meaning 'chat'. One of these goes around 'man's' with its first letter (head) removed. The deletion is indicated by 'missing head'.
Answer: BEANSTALK | BE (live) + TALK (chat) around AN'S (man's with head letter 'm' removed) = BE + ANS + TALK = BEANSTALK. In the fairy tale, Jack climbs the beanstalk to find the giant.