Human resource management as a facilitator of a knowledge-driven organisational culture and structure for the reduction of tacit knowledge loss in South African state-owned enterprises

Abstract

Background: Many state-owned enterprises (SOEs) in South Africa face the serious problem of knowledge-unfriendly organisational cultures, structures and human resource management (HRM) practices that hinder the reduction of the risks associated with tacit knowledge loss.Objective: The article examines the role of HRM in facilitating knowledge-driven organisational cultures and structures for the reduction of tacit knowledge loss in South African SOEs.Methods: The study deployed an exploratory sequential mixed methods research design to examine the role of HRM in facilitating organisational cultures and structures that are supportive of knowledge management (KM). In the qualitative phase, data were collected through interviews with 20 purposively selected HR managers in nine SOEs. In the quantitative phase, a questionnaire was distributed to 585 randomly selected employees in three state-owned companies. The instrument was considered reliable with a Cronbach’s alpha of 0.94 and a response rate of 25%.Results: The research findings revealed that a majority of organisational cultures and structures in SOEs did not facilitate or assist to propel and support KM activities, behaviours and practices. On a positive note, human resource managers acknowledge that they have a crucial role to play in influencing culture management and structural designs in their companies to boost KM activities, behaviours and cultures.Conclusion: Numerous SOEs did not exhibit certain knowledge-driven behaviours and cultures because of a lack of structures to drive KM. Human resource managers did not exert their role in driving and influencing such knowledge-based behaviours, cultures and structures to lessen potential tacit knowledge loss.

Mitigating Tacit Knowledge Loss in South African State-Owned Companies: HRM Approach

“…Additionally, EI-Farr and Hosseingholizadeh (2019) and Kianto et al (2017) highlight knowledge-based human resource management practices that significantly impact firm performance and facilitate KM initiatives in business enterprises. However, knowledge-oriented HRM processes have not been applied in an interdisciplinary manner to the problem of enterprise tacit knowledge loss in the KM literature, particularly in the South African context (Phaladi, 2021). Human resource management divisions can formulate and implement high-performance work practices and cultures that decrease opportunities for employees to look outside organizational boundaries, thereby enhancing productivity and sustainability.…”

“…When so much of the firm's valuable knowledge is lost either through voluntary or involuntary turnover, this affects the productivity, sustainability and the morale of the remaining staff (Phaladi, 2021;Durst and Henschel, 2020).…”

“…HRM strategies such as performance management, compensation, and rewards systems could be used to assess the knowledge-based attributes of knowledge workers and reward such workers in accordance with their performance contribution to firm tacit knowledge management in order to mitigate against the potential risks associated with employee turnover and inherent knowledge loss. The intention of these strategies should be about building employee loyalty or commitment, and knowledge-driven behaviours and activities (Phaladi, 2022b;Foss et al, 2015).…”

“…KBVT views knowledge as a key driver of economic production and organizational life and places greater emphasis on firms' intangible assets (Grant, 1996). However, few empirical studies explore the HRM position and practices in tacit knowledge management to lessen knowledge loss (Phaladi, 2021). HRM practices should drive organizational efforts to facilitate and shape knowledge management behaviours and practices in order to mitigate the risks associated with tacit knowledge The link between HRM and KM practices in mitigating tacit knowledge loss risks remains underdeveloped in theory and practice.…”

“…However, many public sector companies face the risk of tacit knowledge loss, which is mainly caused by turnover, knowledge-unfriendly organizational cultures and structures, and a lack of retention practices. Phaladi (2022bPhaladi ( , 2021 highlights the central role of the human resource management division in managing enterprise knowledge. HRM departments in South African SOCs are lacking in their role in managing organizational knowledge, despite being natural custodians of enterprise-specific human and knowledge assets.…”