People need incentives to participate in the knowledge sharing process. The two knowledge management strategies call for different incentive systems. In the codification model, managers need to develop a system that encourages people to write down what they know and to get those documents into the electronic repository. And real incentives—not small enticements—are required to get people to take those steps. In fact, the level and quality of employees’ contributions to the document database should be part of their annual performance reviews. Ernst & Young, for example, does just that. At performance reviews, consultants are evaluated along five dimensions, one of which is their “contribution to and utilization of the knowledge asset of the firm.”
Incentives to stimulate knowledge sharing should be very different at companies that are following the personalization approach. Managers need to reward people for sharing knowledge directly with other people. At Bain, the partners are evaluated each year on a variety of dimensions, including how much direct help they have given colleagues. The degree of high-quality person-to-person dialogue a partner has had with others can account for as much as one-quarter of his or her annual compensation.
People need incentives to participate in the knowledge sharing process. The two knowledge management strategies call for different incentive systems. In the codification model, managers need to develop a system that encourages people to write down what they know and to get those documents into the electronic repository. And real incentives—not small enticements—are required to get people to take those steps. In fact, the level and quality of employees’ contributions to the document database should be part of their annual performance reviews. Ernst & Young, for example, does just that. At performance reviews, consultants are evaluated along five dimensions, one of which is their “contribution to and utilization of the knowledge asset of the firm.”Incentives to stimulate knowledge sharing should be very different at companies that are following the personalization approach. Managers need to reward people for sharing knowledge directly with other people. At Bain, the partners are evaluated each year on a variety of dimensions, including how much direct help they have given colleagues. The degree of high-quality person-to-person dialogue a partner has had with others can account for as much as one-quarter of his or her annual compensation.
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