Impact of downsizing, restructuring and knowledge sharing on retention of knowledge in organisations : implications for organisational effectiveness

This research considers the organisational factors and processes that impact on knowledge retention and subsequent perceptions of organisational effectiveness during downsizing/restructuring events. By exploring these relationships, the research seeks to help organisations facing downsizing/restructuring to identify best practices to support employees during the process and achieve positive organisational outcomes. The thesis presents a detailed review of the literature in the field of downsizing and organisational restructuring, together with knowledge, knowledge sharing and organisational effectiveness. A conceptual framework and hypotheses, informed through the literature and qualitative focus group process, were developed for testing. Data were collected from 81 organisations, drawn from both the private and public sectors. Analyses enabled detailed consideration of the impact of perceived levels of organisational knowledge on perceptions of post-downsizing/restructuring organisational effectiveness. The significance of relationships between downsizing/restructuring events, both decisions and processes, and knowledge sharing in organisations undergoing downsizing/restructuring were also examined. Findings indicate the need for open and honest relationships between managerial (Decision Makers and Implementers) and non-managerial employees (Affected Employees) in order to achieve successful organisational outcomes. The impact of knowledge sharing on organisational knowledge was assessed by studying the extent of both formal knowledge sharing and informal networks present in respondent organisations. The direct impact of knowledge sharing on organisational outcomes was also analysed and discussed.Conclusions are reached that both formal knowledge sharing and informal networks have a significant impact not only on perceived levels of organisational knowledge but also on post-downsizing/restructuring organisational effectiveness. However, different aspects of knowledge sharing appear to be more significant to Decision Makers and Implementers and Affected Employees. For business, the findings of this research demonstrate a need to concentrate on organisational knowledge during downsizing/restructuring in order to achieve improved outcomes. The findings suggest this can be done through attention to ensuring that intent and interpretation of the decisions and processes involved are open and honest. Assessment of the knowledge present in the organisation and a focus on retention of key individuals with important knowledge is also advisable. Communication of what is planned and inclusion of employees in both planning and implementation were identified as ways in which organisations can do so, thereby promoting distributive and procedural fairness throughout the process. Formal knowledge sharing strategies arose as being important to achieving improved organisational outcomes, particularly to Decision Makers and Implementers. These strategies included identifying, capturing and storing information in ways that are accessible to employees. Documentation of practices and procedures was also found to be important as was careful planning of the change.Communication, providing training and support to survivors and allowing the necessary time for sharing knowledge were also identified as key strategies. Overall, developing a culture and climate within the organisation that is supportive of knowledge sharing was found to be central to achieving improved organisational effectiveness. Informal networks were identified by Affected Employees as impacting on both perceived levels of organisational knowledge and, indirectly on organisational outcomes. The research indicates the Decision Makers and Implementers and Affected Employees have different perceptions about the role and importance of informal networks. Those implementing downsizing/restructuring may therefore need to examine the structure and operation of informal networks prior to downsizing/restructuring to ensure they are adequately supported during the process. Informal networks may also be utilised to assist in bringing about the change. The findings of this research are important to assist organisations develop best practice approaches to downsizing/restructuring. With increasing acceptance of downsizing/restructuring as a business strategy, this research provides insights into key issues of downsizing/restructuring events and knowledge retention as predictors of improved organisational outcomes

Using sensemaking as a diagnostic tool in the analysis of qualitative data

Analysis of qualitative data is a process which novice researchers must learn as they progress, and which experienced researchers must negotiate and adapt to suit the study they are undertaking and the data they are collected. The purpose of this paper is to demonstrate how researchers can use sensemaking to diagnose and explain phenomena in ordinary situations, and how it can be added as an analysis and interpretation tool in their toolkit. This paper describes the use of sensemaking employed as a tool for diagnosis of the processes which take place when a manager encounters perceived declining performance in an older volunteer. It outlines how the What is going on here? reaction to surprise or interruption of her analysis stimulated researcher sensemaking, as patterns detected among anomalous data led to deeper data interpretation, and an important finding relating to the phenomenon under investigation. Evidence is presented which demonstrates the value of employing sensemaking as a diagnostic tool in qualitative analysis and interpretation

What knowledge, skills and attitudes should strategic HRM students acquire? A Delphi study

Much work has been done to identify competencies that HR practitioners need for a strategic HR role. However, little, if any, attention has been paid to the knowledge, skills and attitudes (KSAs) required of graduates entering the strategic HRM (SHRM) field. This study focuses on this area of neglect by employing the Delphi method to address the question: What core KSAs should SHRM students acquire? Three sequential questionnaires were administered to elicit opinions of leading academics and senior HR practitioners on KSAs that are important and to build consensus on the core KSAs. These processes generated ranked lists of 10 knowledge areas, 5 skills and 5 attitudes that will inform the design of curricula for undergraduate and postgraduate SHRM students

Using the Delphi Technique to Identify Components of a Tertiary Strategic HRM Curriculum

This study sought to identify key knowledge, skills and attitudes required of SHRM graduates as identified by experts in the academic and practitioner fields. The Delphi technique was selected as it has been used effectively in other contexts to develop consensus amongst experts for a range of purposes, including curriculum design. Explanation of this technique, the rationale for its use and reflections on its use in curriculum design by both participants and researchers is provided

Using research informed approaches to Strategic HRM teaching

This paper outlines research that was guided by the broad question: What teaching and learning (T&L) strategies should be employed in SHRM? This question was answered using data gathered in three focus groups involving T&L specialists, business strategy and HRM academics, and HRM practitioners. Through a process of successive focusing, potential T&L strategies were initially identified and then tested and refined in the focus groups. Drawing on literature and input from the participants, we contend that SHRM can be effectively taught through a combination of primarily problem-based and case-based approaches. We also argue that process worksheets are an effective method of providing problem solving support to students when they carry out complex learning tasks based on authentic SHRM problems

Could on-the-job embeddedness help bind FIFO workers to their jobs?

Fly-In Fly-Out (FIFO) employees in the mining industry in Western Australia have had high levels of turnover, resulting in high costs in recruitment, training and lost production. This research is seeking to understand the reasons for high turnover in this somewhat unusual group of employees. Whilst the research has utilised the more traditional approach to understanding labour turnover, that is that dissatisfaction with job or company and the availability of viable alternatives lead to intention to quit, preliminary results indicate that job embeddedness theory, may provide a better understanding of why FIFO workers choose to stay in their jobs. This outcome raises questions about embeddedness theory itself, namely whether on-the-job embeddedness is a stronger predictor of staying than is off-the-job embeddedness

Generational differences and Fly-In-Fly-Out (FIFO) employee turnover

Fly-in, fly-out (FIFO) mining has experienced significant growth in the past decade and is now a typical form of employment in the sector in Australia. Evidence suggests that there are relatively high turnover levels amongst these employees. Whilst there are many contributing causes to this, there may be variances between different generational cohorts at work as arguably their workplace expectation differs. This paper investigates whether turnover intentions vary between different generations of employees. Using a questionnaire, employees were asked about their turnover intentions and this was compared against the groups of Baby Boomers, Generation X and Generation Y. Findings show that Generation Y employees had a higher intention to quit than the Baby Boomers but were no different to Generation X employees

The impact of organisational knowledge and knowledge sharing on the quality of downsizing and restructuring outcomes

This study considers the impact of formal knowledge sharing and informal networks on the level of organisational knowledge and effectiveness after downsizing or restructuring. These variables are examined as they are perceived by employees, both decision makers and implementers and affected employees. Previous research indicates that only one-third of organisations report increased productivity, as a result of the downsizing and restructuring strategies, while 50% report decreased labour costs, and less than 20% report increased labour flexibility (Lee & Corbett, 2006; Cascio 2002) as a result of downsizing and restructuring strategies. It is proposed that many of the reported issues are associated with the loss of knowledge and knowledge-sharing networks that occur during downsizing/restructuring. Although much has been written about knowledge, knowledge sharing and informal networks in organisations, little attention is paid in the literature to loss of knowledge or network breakdown in this context. This study seeks to redress this gap in the literature, through investigating the impact of organisational knowledge, through formal and informal knowledge sharing, on perceived organisational effectiveness after downsizing or restructuring has taken place