In industry sectors where knowledge and know-how is not a highly valued
commodity the departure of an employee to a new job in another organization or
to retirement is an unremarkable event. But as the pace of competition
accelerates, as markets internationalize, as the product-to-market time line
compresses, and as organizations adopt information-intensive operations and
processes, know-how or tacit knowledge assume higher and higher value.
When provisions are lacking for the capture of know-how, individual
employees become extremely valuable and organizations become vulnerable.
Some individuals become adept at using personal expertise and tacit knowledge
related to research directions, social and expert networks, and how to attract
funding, for example, to negotiate better, higher paying jobs in a succession of
different organizations sometimes take extraordinary measures to retain knowledgeable
employees. While the appearance of in-house day care facilities, gyms with
fitness classes, and corporate concierges are all designed to make an
organization attractive to new hires, such perks also serve to retain valuable
employees who may be highly sought after by competitor companies. At best,
expenditures of enormous resource help retain such employees and the tacit
knowledge they possess. At worst, these individuals leave, taking everything
with them, perhaps to a competitor in cases where the departure is acrimonious
In industry sectors where knowledge and know-how is not a highly valued
commodity the departure of an employee to a new job in another organization or
to retirement is an unremarkable event. But as the pace of competition
accelerates, as markets internationalize, as the product-to-market time line
compresses, and as organizations adopt information-intensive operations and
processes, know-how or tacit knowledge assume higher and higher value.
When provisions are lacking for the capture of know-how, individual
employees become extremely valuable and organizations become vulnerable.
Some individuals become adept at using personal expertise and tacit knowledge
related to research directions, social and expert networks, and how to attract
funding, for example, to negotiate better, higher paying jobs in a succession of
different organizations sometimes take extraordinary measures to retain knowledgeable
employees. While the appearance of in-house day care facilities, gyms with
fitness classes, and corporate concierges are all designed to make an
organization attractive to new hires, such perks also serve to retain valuable
employees who may be highly sought after by competitor companies. At best,
expenditures of enormous resource help retain such employees and the tacit
knowledge they possess. At worst, these individuals leave, taking everything
with them, perhaps to a competitor in cases where the departure is acrimonious
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