Framework for integrating knowledge management and human resource management for the reduction of organisational knowledge loss in selected South African state-owned enterprises

Abstract

State-owned enterprises (SOEs) play a significant role in the South African economy and are the key drivers for delivering on the country’s developmental mandate. Nevertheless, many SOEs are facing a phenomenon of organisational knowledge loss caused largely by an attrition of their much-needed firm-specific human resources through voluntary and involuntary turnover and a lack of retention strategies. Human resource management (HRM) departments in state-owned enterprises are failing to play their role in the knowledge management (KM) agenda despite being the custodians of firm-specific human resources. In any company, organisational tacit knowledge, as a source of sustained competitive advantage, is contingent on human resources. In SOEs, employees are sources of such knowledge. In many SOEs, this problem of organisational knowledge loss is exacerbated by a lack of knowledge management practices, the absence of organisational structures and roles dedicated to knowledge management, a silo mentality and red tape. The purpose of the study was to develop a framework on knowledge loss reduction that integrates knowledge management and human resource management practices in the South African state-owned enterprises. This study followed a mixed methods research approach by using an exploratory sequential design. A qualitative phase was conducted first (through the interviews and document analysis of annual reports), while in the second, and quantitative phase, a survey questionnaire was used to test the knowledge and research findings revealed by the qualitative phase. The qualitative data were collected from nine SOEs in five market sectors through the use of interviews with twenty purposively selected HR managers. The data collection phase also included the analysis of annual reports. The research findings of the qualitative phase were used to develop a survey questionnaire for testing in the quantitative phase. The survey questionnaire that was used to collect data in the second phase of the study, was distributed to 585 employees and KM practitioners in the SOE sector and had a response rate of 25%. -ii- The study revealed that the majority of the SOEs lacked dedicated KM functions and roles in their organisational structures. The study also established that there was a serious lack of synergy between the HRM and KM practices of the few SOEs that had dedicated knowledge management function and roles in the structures. A lack of key strategies for managing and reducing organisational knowledge loss contributed to knowledge stickiness and reduced knowledge protective capacity. However, on a positive note, recruitment and training practices were found to be effective in the sourcing and development of firm-specific human and knowledge resources. Despite their shortcomings, these two practices played an important role in capacitating knowledge creation and acquisition, thus boosting knowledge-absorptive capacity in the SOEs. Nonetheless, the same cannot be said of the human resource retention practices. The study recommends that HRM practices be aligned and integrated into KM for effective management and reduction of organisational knowledge loss. Furthermore, HRM practitioners should develop and lead strategies aimed at embedding a knowledge-centric organisational culture, structures and processes to ensure that knowledge management is fully institutionalised. In this regard, knowledge-oriented leadership is required across all levels of organisations. The study offers a framework for knowledge loss reduction as a baseline to assist SOEs with integrating their HRM and KM practices in order to reduce the dire risks associated with losing much-needed, firm-specific human and knowledge resources.