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journal article Employee Turnover And Tacit Knowledge Diffusion: A Network PerspectiveJournal of Managerial Issues Vol. 15, No. 1 (Spring 2003) , pp. 50-64 (15 pages) Published By: Pittsburg State University https://www.jstor.org/stable/40604414 Read and download Log in through your school or library Alternate access options For independent researchers Read Online Read 100 articles/month free Subscribe to JPASS Unlimited reading + 10 downloads Purchase article $10.00 - Download now and later Abstract Previous research has addressed the negative impact of employee turnover on human and social capital. We add to this literature by calling attention to how employee turnover erodes tacit knowledge and underscore our study by drawing on the knowledge-based view of the firm (e.g., Grant, 1996). We employ a social network framework to propose that characteristics of a firm's social structure determine the degree of tacit knowledge loss upon employee exit. Specifically, we posit that the diffusion of tacit knowledge is positively related to the degree of employee interaction, collaboration, and access to non-redundant information. Journal Information The Journal of Managerial Issues (JMI) is a management academic journal that is published quarterly and uses a double-blind, peer-reviewed process. The purpose of the JMI is to contribute to the advancement of knowledge directly related to the theory of organizations and the practice of management. It publishes and disseminates the results of new and original scholarly research to a broad audience consisting of university faculty and administrators, business executives, consultants, employees, and government managers. The JMI acts as a bridge between the academic and business communities. Publisher Information Pittsburg State University (PSU) is one of six Kansas regents universities with approximately 7,300 students. It is located in southeast Kansas in the city of Pittsburg. PSU has over 100 academic programs distributed among the colleges of Arts and Sciences, Business, Education, and Technology. PSU students benefit from small class sizes, challenging courses, qualified and dedicated faculty, and modern classrooms. The university as a whole is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools as well as some of its colleges and/or programs (the Kelce College of Business is AACSB-accredited). Rights & Usage This item is part of a JSTOR Collection. In our last blog post, our featured author discussed how "knowledge change is not a technology project." This week our author presents the case for the use of tech tools especially in dealing with issues of employee retention. Endorsement of specific vendors by KMI should not be implied. Implemented in organizations with high employee turnover, knowledge management tools are not only to facilitate knowledge accumulation and transfer but also to stimulate employees’ engagement and retention. Here how it works. According to the 2016 BenchmarkPro survey, the average employee turnover rate in the USA equals 18.1%. While the highest rates are characteristic of the states with a lower median household income such as Montana (23.0%), Oklahoma (22.1%), Idaho (21.5%) and New Mexico (21.5%), turnover rates in the richest US states are also above the ‘healthy’ 10-15% - Maryland (19.1%), Massachusetts (17.1%), California (16.8%), New Jersey (16.4%). High employee turnover is a true headache in such industries as retail, healthcare, banking and financial services, as well as the IT sector where employees rarely stay with a company longer than a year. How high employee turnover impacts organizational knowledgeIn terms of knowledge management, high turnover rates mean that companies can face multiple knowledge-related challenges, including:
If left unaddressed, these challenges can lead to discontinued business processes and cause serious mistakes that will end up with lost money and damaged reputation. Why turn to a knowledge management system?With so many knowledge-related risks, organizations with high employee turnover can do nothing but turn to knowledge management to achieve the following goals:
Now, let’s analyze how companies can achieve these goals through relevant knowledge management tools and techniques. Good news for those who already use SharePoint: turning to SharePoint consultants or developers, they can adapt the platform to knowledge management needs. Outlining workforce gaps with a knowledge mapUsually, organizations create a knowledge map to structure corporate knowledge and understand if its current level is enough to cover particular business needs. Besides that, companies can use their knowledge map to smartly and timely find new employees. By identifying key knowledge areas essential to business processes, organizations can mark out risky areas and relevant knowledge owners. Guided by the map, HR managers can form and support a base of candidates suiting critical knowledge areas and find employees with specific knowledge faster. Automating knowledge transfer Constant staff changes disturb regular employees. That’s a real nightmare for experts who should transfer their knowledge to newcomers over and over again. With this in mind, it’s reasonable to automate knowledge transfer to key knowledge owners’ relief. For example, an organization can create a dedicated knowledge center for newcomers to access the working materials prepared by experts and study them. To check up their knowledge, newcomers can take relevant tests right in the KM system. Test results will be then presented to a line manager and an expert. If results are unsatisfactory, a knowledge owner can schedule individual training. This way, an initial knowledge transfer can be fully automated or coupled with only a few one-to-one consultations, which reduces experts’ involvement substantially. Storing team knowledge on collaboration sites The value of collaboration sites at companies with high employee turnover increases dramatically. When team collaboration takes place in a single collaboration hub (these can be dedicated SharePoint team sites), a new team member will be able to learn the collaboration history, view project-related documents, get consultations of teammates and dive into the working process much easier. Eliminating mistakes due to knowledge gaps To minimize mistakes made regularly by newcomers, companies can use at least two knowledge management tools. First of all, a centralized knowledge base with well-structured instructions and recommendations can guide newcomers throughout their working process. Secondly, newcomers can use a knowledge map to quickly identify knowledge owners and connect them in order to ask for a piece of advice and solve problematic or complex tasks successfully. Reducing employee turnover with a knowledge management system Unfavorable corporate culture, boring or unimportant work and the lack of recognition are constantly on the list of popular reasons to quit a job. To change this, companies can use their knowledge management system to create comfortable working conditions that will stimulate employee retention. Recognizing employees’ contribution and ensuring personal growth A knowledge management system can include a system of points attributed to employees who regularly contribute to the development of organizational knowledge (develop a particular knowledge domain, organize a community of practice, make research work, etc.). ‘Knowledge’ points can be included in a personal development plan so that employees could see their professional advance, as well as into employees’ general rating for line managers to reward top contributors with relevant incentives. Turning off stress and enabling a supportive working environment Employees are always afraid to make a mistake especially if they don’t have the needed knowledge and can’t find it anywhere. Provided with strong search capabilities, a knowledge management solution will allow employees to find relevant pieces of knowledge or knowledge owners who can assist a newcomer in solving a particular task. With the possibility to contact experts and teammates, employees will feel more comfortable at work, which increases employees’ satisfaction and confidence. Creating extra opportunities Companies can also think about giving extra opportunities to their staff. For example, employees can share their ideas and store them in a bank of ideas located in the knowledge management system. Best insights will be then discussed with line managers and experts and turned into real projects. This is how employees will get a chance to implement their own project and advance in their career. Even one KM activity can bring several outcomesObviously, companies struggling with high employee turnover are focused on replacing employees and keeping business processes uninterrupted. Due to impressive investments into HR management, they can cut other corporate investments, especially the ones into such activities as knowledge management. However, it’s not always right. High employee turnover is an exceptional situation when even scattered KM activities can be of a great value. Companies can adopt at least one of the described solutions to get multiple outcomes at once. For example, having a knowledge map on their hands, companies can simplify the hiring process and invigorate the connection between newcomers and experts, while collaboration sites will support knowledge transfer, uninterrupted teamwork and the introduction of newcomers to the working process.
About the author: Sandra Lupanava is a SharePoint Evangelist at ScienceSoft, a software development and consulting company headquartered in McKinney, Texas. With her 5+ years in marketing, Sandra voices SharePoint’s strengths to contribute to the platform’s positive image as well as raise user adoption and loyalty. Today Sandra advocates harnessing SharePoint’s non-trivial capabilities to create business-centric, industry-specific innovation and knowledge management solutions. Which strategy focuses on a number of foreign countries regions each of which is regarded as a standalone market worthy of significant attention and adaptation?Localisation strategy is a strategy that focuses on a number of foreign countries/regions, each of which is regarded as a stand-alone local market worthy of significant attention and adaptation.
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What is the drawback to the global matrix approach?What is the drawback to the global matrix approach? The complex levels of management of ten have conflicting incentives, which require valuable time to align; While teamwork is realized, it is difficult to know whom to blame or praise when things go poorly or well; The management complexity creates slow decision making.
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Which element of knowledge management faces the common problem of employee turnover?
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