Retaining Tacit Knowledge through Performance Management Systems in South African Public Sector Enterprises

Vollständiger Abstract

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Public Sector Enterprises (PSEs) are at risk of knowledge loss, which hampers their capacity to fulfill their developmental roles in fostering economic growth and addressing socio-economic challenges, particularly in developing economies like South Africa. Extant research indicates that tacit knowledge sharing and retention present significant challenges for many organisations, both private and public, largely due to inadequate knowledge-driven performance management systems that fail to mitigate the inherent stickiness of this type of knowledge. This paper aimed to explore the role of performance management systems in rewarding knowledge sharing behaviours and their effectiveness in retaining tacit knowledge within PSEs. It focused on understanding how these systems align with the expectations for knowledge sharing and assess their impact on the retention of critical tacit knowledge. The researcher interviewed twenty managers across the human resource management departments of nine purposively selected PSEs to obtain responses relevant to the research questions. The study found that only 33% of the nine public sector enterprises assessed implemented performance management system rewards for the necessary knowledge sharing and retention behaviour. Conversely, 67% of these companies did not incentivise their employees for such knowledge management practices. Integrating knowledge management (KM) into performance management contracts has been recognised by a few PSEs as an effective strategy to encourage knowledge sharing behaviours amongst employees. This approach not only incentivises individuals to share their knowledge but also contributes to the retention of that knowledge within the organisation. The study infers that retaining tacit knowledge in South African public sector enterprises can be effectively achieved through incorporating such behaviours and activities into performance management systems, which facilitates the sharing and preservation of valuable, non-codified knowledge, ensuring that expertise is not lost amidst workforce changes. The paper emphasises a crucial link between performance management systems, reward mechanisms, and the retention of tacit knowledge, proposing that clearer rewards in knowledge-driven systems can reduce knowledge stickiness and improve knowledge retention in public sector enterprises.