Problem of Plenty: Managing Employee Surplus
01 Jan 2016-Vol. 6, Iss: 1, pp 38-48
TL;DR: An extensive review of literature is done to understand the complete cycle, which is from environmental conditions leading to employee surplus consequently leading to firm implementing relevant strategies to deal with the situation and the consequences thereof on firm and individuals.
Abstract: The article deals with understanding the phenomena of employee rationalisation in firms especially the ones operating in dynamic environments. In this paper the authors do an extensive review of literature to understand the complete cycle, which is from environmental conditions leading to employee surplus consequently leading to firm implementing relevant strategies to deal with the situation and the consequences thereof on firm and individuals. The authors focus their attention on high technology firms and the relevant strategies for managing employee surplus in such firms. They extend the literature by proposing the relevance of tacit knowledge in situations where employee surplus needs to be managed and how it can be retained for preserving the competitiveness of firms.
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01 Apr 2017
TL;DR: This article analyzes the literature in the search for career management in the knowledge-based organizations KBOs to present valuable insights and further understanding of the way in which career management perspectives in the K BOs should be emphasized.
Abstract: This article analyzes the literature in the search for career management in the knowledge-based organizations KBOs. The literature review covers the overview of career management strategy; organizational career management OCM and knowledge management KM in the KBOs; career management and career learning in the KBOs; career management innovation in the KBOs; and the significance of career management strategy in the interorganizational career transitions. Career management is the process that helps employees understand career opportunities and chart a career path within their organization. Encouraging career management in the KBOs has the potential to improve organizational performance and reach strategic goals in the modern workplace. The findings present valuable insights and further understanding of the way in which career management perspectives in the KBOs should be emphasized.
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TL;DR: In this article, a new theory was introduced to explain how people cope with job loss, incorporating constructs from coping theory, control theory, and self-efficacy, and future research strategies were suggested regarding coping effectiveness and reciprocal causality.
Abstract: Although the stress of involuntary job loss is well documented, the process through which people cope and ultimately adapt following this stressful event needs clarification. This article provides a crucial next step by introducing new theory to explain how people cope with job loss. The process model developed in this article incorporates constructs from coping theory, control theory, and self-efficacy. Future research strategies are suggested regarding coping effectiveness and reciprocal causality.
282 citations
Journal Article•
TL;DR: Koudsi et al. as discussed by the authors studied the relationship between employee turnover and the loss of social capital in the knowledge economy and found that when employees leave, companies lose not only human capital, but also accumulated knowledge.
Abstract: An enormous amount of information and knowledge resides in the minds of key people, but this material is rarely organized in a fashion that allows for its transmission to others (Powell, 1998: 237) Just as the apprentice learns the tools of the trade from a master, businesses gain from the knowledge shared by mentors, supervisors, coworkers, project team members, and long-tenured employees Yet the business world is in the midst of an era characterized by the boundaryless career (Arthur and Rousseau, 1996)-- one where median employment tenure is just four and a half years, new job creation accounts for only one tenth of all career moves, and large firm decentralization is a regular occurrence "I know I can't stop people from walking out the door--but how do I stop them from taking their knowledge with them?" (Labarre, 1998:48) That is, when employees leave, companies lose not only human capital, but also accumulated knowledge This is a common problem firms face in the knowledge economy and the central issue addressed in this article As consulting, research, and information technology firms are realizing, their "whole business is pretty much locked away in the minds of employees" (Koudsi, 2000: 233), yet this knowledge is rarely shared, swapped, traced, and fertilized to ensure that it remains, at least in part, with the firm when employees leave The problem's significance is shown by the fact that many businesses are spending millions of dollars each to develop and purchase solutions to combat knowledge exodus (Koudsi, 2000; McCune, 1999) Companies, recognizing knowledge as a valuable asset, are busily devising ways to capture it, from narrative re-creations of past triumphs to rewards for in formation gleaned in exit interviews (Branch, 1998) Organizational knowledge and employee turnover have been studied extensively Our contribution is a link between the two, whereby social networks explicate the connection between employee turnover and tacit knowledge loss Closely related to social networks is the concept of social capital We adapt the meaning suggested by Tsai and Ghoshal (1998) in defining social capital as resources embedded in social relationships as well as the norms and values inherent in such relationships Others (eg, Dess and Shaw, 2001) have suggested that employee turnover can negatively affect firm performance through loss of social capital We expand this by taking into account the tacit knowledge that firms lose when employees leave In light of employee turnover, we focus on social network structures likely to lead to retention of the tacit knowledge embedded in employees' minds We offer propositions concerning the problem of tacit knowledge loss and encourage the development of solutions that take into account the social n etwork structure of organizations Specifically, we posit that 1) tacit knowledge can be preserved, in part, when firms promote employee interaction, collaboration, and diffusion of non-redundant tacit knowledge, and 2) characteristics of a firm's social network, including density and an optimal mix of weak and strong ties, promote interaction, collaboration, and non-redundant tacit knowledge diffusion This paper is divided into three major sections First, we introduce the general theoretical background, followed by more specific theoretical discussions of the tacit knowledge, knowledge-based view of the firm, and employee turnover literature Second, we frame our propositions in the context of a firm's social structure, highlighting the interplay among diffusion, interaction and collaboration, and non-redundant information Third, we provide a summary, implications, and future research directions BACKGROUND A major challenge facing organizations is uncovering the most effective methods of gathering and applying knowledge en route to economic value creation (Miles et al, 1998) In our technological, global society, this need for knowledge is more salient than ever before …
237 citations
TL;DR: In this article, the relation between commitment and flexibility is unbundled by distinguishing between firm-specific and usage-specific resources, and the distinction between these two kinds of specificity helps explain why the tension between commitments and flexibility can easily be overdone: the two aren't always negative measures of each other.
Abstract: This article unbundles the relation between commitment and flexibility by distinguishing between firm-specific and usage-specific resources. This distinction turns out to be valuable because firm-specificity does not always imply (nor is it always implied by) usage-specificity. Firm-specific resources are more strategic than usagespecific resources. More broadly, the distinction between these two kinds of specificity helps explain why the tension between commitment and flexibility can easily be overdone: the two aren't always negative measures of each other.
226 citations
TL;DR: The authors explored the effects of layoffs on the work behaviors and attitudes of the employees not laid off (the survivors) and found that survivors tend to become more withdrawn from their jobs and organizations to the extent that they believe management handled the layoff unfairly.
Abstract: The studies described in this paper explored the effects of layoffs on the work behaviors and attitudes of the employees not laid off (the survivors) Survivors were hypothesized to become more withdrawn from their jobs and organization to the extent that they believe management handled the layoff unfairly Moreover, these tendencies should be especially true when the layoff victims were included in survivors' scope of justice The results of field and laboratory studies supported these predictions Implications of the findings are discussed
223 citations
TL;DR: In this article, the authors developed and tested a causal model of the causes and consequences of psychological contract and found support for the hypothesis that the psychological contracts and those organizational processes relating to procedural justice would have a direct effect on two critical organizational outcomes, namely, employee commitment and intention to remain with the organization.
Abstract: As organizations shift the central focus of their competitive strategy away from value appropriation towards value creation it is to knowledge workers that they will look to provide the innovation to fuel their continued development. The state of the relationship between the knowledge worker and the employer - the psychological contract - will determine whether this source of innovation and creativity is released. In this study, we developed and tested a causal model of the causes and consequences of psychological contract. Over four hundred participants who were knowledge employees drawn from eleven leading edge companies in the high-technology software, manufacturing and financial services sector participated in the study. We found support for the hypothesis that the psychological contract and those organizational processes relating to procedural justice would have a direct effect on two critical organizational outcomes, namely, employee commitment and intention to remain with the organization. We also ...
218 citations