Comprehensive Report: HPW and HPWO Practices for Organizations

This report delves into the concepts of High-Performance Working (HPW) and High-Performance Work Organizations (HPWO), exploring their frameworks, components, and the link between HPW systems, processes, and cultural changes. It examines leadership practices, strategic planning, organizational structure, development strategies, and reward systems within HPW frameworks. The report references relevant literature on sustained organizational performance, employee well-being, and competitive advantage, highlighting the importance of employee engagement and the role of HR. It addresses barriers to HPW implementation, such as unclear strategy, lack of trust, and inadequate leadership, and discusses the stages of the performance management cycle. The report also provides examples of incorporating line managers in various processes, emphasizing the role of performance management in different streams and offering recommendations for the sustainability of HPWS and HPWO, including fostering trust and commitment. The report concludes with examples of organizational reorganization in connection with ethical practices.

Running Head: REPORT TO ADD HPW AND HPWO PRACTICES IN AN ORGANIZATION
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Running Head: REPORT TO ADD HPW AND HPWO PRACTICES IN AN ORGANIZATION
Contents
Section 1................................................................................................................................................3
Introduction...........................................................................................................................................3
Question 1.............................................................................................................................................3
Demonstration of the HPW frameworks and their components.........................................................3
Question 2.............................................................................................................................................5
Reference of the literature dealing with HPW components...............................................................5
Competitive advantage......................................................................................................................7
Q 3.........................................................................................................................................................8
The link between HPW systems, processes and cultural changes......................................................9
A note on the main barriers.................................................................................................................10
Unclear strategy and wrong priorities..............................................................................................10
Leadership style Choices.................................................................................................................11
Lack of Trust...................................................................................................................................12
Poor coordination between the departments....................................................................................13
Inadequate leadership......................................................................................................................13
Closed Vertical communication.......................................................................................................14
Fear of criticism...............................................................................................................................14
Attitude towards change..................................................................................................................15
Section 2..............................................................................................................................................15
Question 5...........................................................................................................................................15
Stages of the performance management cycle and the role of appraisal..........................................15
The role of the performance reviews for organizational and legal purposes....................................16
Question 6...........................................................................................................................................17
Examples to include line managers in various processes.................................................................17
Performance appraisal and recognition............................................................................................17
Training, coaching, and guidance....................................................................................................17
Employee Engagement....................................................................................................................18
Creating and maintaining a learning environment...........................................................................18
Work-life balance and wellbeing.....................................................................................................18
Mentoring to ensure quality.............................................................................................................18
Question 7...........................................................................................................................................19
The role of performance management process in various streams...................................................19
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Running Head: REPORT TO ADD HPW AND HPWO PRACTICES IN AN ORGANIZATION
Question 8...........................................................................................................................................20
Examples of the reorganization in connection with the ethical practices.........................................20
Section 3..............................................................................................................................................20
Question 9...........................................................................................................................................20
Recommendations for the sustainability of an HPWS and HPWO..................................................20
Trust............................................................................................................................................21
Enthusiasm and commitment.......................................................................................................21
Supporting and enablement of a high-performance culture.........................................................21
References...........................................................................................................................................22
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Running Head: REPORT TO ADD HPW AND HPWO PRACTICES IN AN ORGANIZATION
Section 1
Introduction
The concept of High-Performance Working (HPW) allows a company to hire the best
personals under a given setup for the best results. HPW is emerging as a common solution for
big organizations because the trends in the market are changing fast. Low-performance
economic workers can waste a lot of time in the process of the gestation and technology on
which they are working may go out of the business. A working system enabled by High-
performance workers along with a culture to facilitate high-performance working is also
known as "High-performance working System (HPWS)." In the current assignment, we are
exploring some of the important aspects of HPW phenomenon and trying to come up with a
set of recommendations that can help an organization in the successful implementation of
HPW culture and HPW system (Foley et al.,2012).
Question 1
Demonstration of the HPW frameworks and their components
HPW frameworks are self-sustainable frameworks. The main components of this framework
are
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 HPW enabled leadership practices
 HPW enabled strategies to formulate self-sustainable operation plans
 HPW enabled the working structure of the organization
 HPW enabled development strategies
 HPW enabled reward and punishment systems
 HPW enabled HR practices to ensure the belongingness of the employees
Every HPW framework starts with three objectives that are to ensure high-level performance
with maximum profitability and best customer satisfaction. In order to achieve these three
objectives, the HPW enabled leadership comes up with some action plans where employees
can meet short term targets and supervisors can check the sum of this achievement with an
intention to meet the long term goals. It is different from a regular process where we set fixed
targets for the employees and the role of the supervisor becomes more important because of
the checks and balances associated with the process.
The operation plans of an ideal HPW enabled organizations promotes the culture of fixing
quality managers instead of employee supervisors. The focus here is more on the products,
rather than the management of the people. In other words, we can say that it is a different
kind of people management HR machinery and other tools of planning ensure high
involvement levels of a self-motivated employee.
Instead of focusing efficient people management, the HPW framework promotes the culture
of the effective people management; this culture enables a manager to give autonomous
status to various teams where they can come up with their own set of solutions and working
procedures.
In a regular system, planner act as a visionary, whereas in a system facilitated under the HPW
realms, managers' act as a visionary and supervisors set necessary targets for the team. In
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Running Head: REPORT TO ADD HPW AND HPWO PRACTICES IN AN ORGANIZATION
other words, we can also say that the vertical integration of a command line is shorter when
we apply HPW practices in a system. This shorter vertical integration also ensures swift
communication between the teams and allows them to make quick decisions for ensuring the
best outputs from any given assembly line.
Question 2
Reference of the literature dealing with HPW components
1
Sustained organization performance
This source of literature mainly gives us an account of the integration of the current
capabilities of an organization into self-sustainable HPW model with the help of a system
keeping a check on the undue exploitation of the resources. It promotes the culture of
exploration by assigning adequate indicators based on the previous achievements of the
goals. This literature also promotes the culture of the creation of alternative pathways to meet
difficult situations. These pathways can also be accommodated as a mainstream solution in
the case of consistent satisfactory performance Arhendse, L. (2015).
Raisch. (2009). Organizational Ambidexterity: Balancing Exploitation and Exploration.
Organization Science, vol. 20, no. 4,, PP 685-695.
According to the author, organizational learning, wisdom gained by the senior participants
can be converted into tacit knowledge pool and this knowledge pool can work in the direction
of maintaining the sustainability of the operations. This piece of literature also introduces us
with the concept of short term agility to handle unwelcome realities. With the help of a
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proper knowledge pool working as the evaluator of the future moves, this feat of short term
agility can be implemented with great effect.
2. Employee Wellbeing for HPWS
Ishak, M. (2017). High-Performance Work System (HPWS) and Organizational Performance:
The Mediating Role of Employee Attitude. IMICO 2017,
https://www.researchgate.net/publication/317676792_High_Performance_Work_System_HP
WS_and_Organizational_Performance_The_Mediating_Role_of_Employee_Attitude.
Author M.Ishak explained the concept of employee belongingness with the help of the
attitude of an employee, according to him. This piece of literature gives us an idea that the
well-being of an employee is a subject to the job satisfaction levels in regular setups. It
should be kept at the best levels. However, in the case of HPWS, the same levels should be
kept at the optimum levels for the best results in the terms of employee wellbeing.
Another issue is related to the social environment and the economic security of an employee.
Policymakers should keep an eye on this equation and they should come up with adequate
employee welfare plans to create a security net around them.
The basic framework of HPW defines the objective of profit and consumer satisfaction,
however, in the case of an HPWO based organization, the things change drastically. Here the
attitude of an employee plays a crucial role. Employees play an active part in the achievement
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of the HPW goals. As a manager sometimes they are required to come out of their comfort
zones and work extra hard in order to finish the job in hands. 3.
Competitive advantage
McGurk, J. (2010). Shaping the Future: Exploring the drivers and derailers of sustainable.
Chartered Institute of Personnel and Development, https://www.ufhrd.co.uk/wordpress/wp-
content/uploads/2010/08/6_7.pdf.
According to the author of this source, employee engagement is an important aspect of the
exercise of the settlement of a unit into an HPWO. Employee involvement in the main
processor the subsidiary processes certainly gives a competitive advantage to any
organization. Active involvement of an employee directly affects the processes like customer
satisfaction and customer retention. This ends up in a domain where a company can make
more profit while spending less energy. This equation creates an ideal interface for HPWO to
make more money and adds sustainability in the organization which is a primary requisite.
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Image 1: Defining the ladders of success because of employee engagement and competitive
advantage. Retrieved from: https://quality-consultants.com/employee-engagement-and-
competitive-advantage/
The above-mentioned diagram clearly connects the process of employee engagement with the
process of customer retention and this customer retention can be considered as a competitive
advantage because it reduces the efforts of an HPWO quite considerably. This source of
literature also defines the role of HR machinery in maintaining employee engagement. Here
we need to understand a simple fact, HR machinery is duty bound to retain an employee, it
has been observed that better performers of an organization often get a better opportunity in
the market and they move in the direction of a greener pasture.
Q 3
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The link between HPW systems, processes and cultural changes
An HPW system demands a consistent up gradation of the components that are associated
with various operations. Ideally, most of the HPWO should hire a change management
company to meet out various such junctures. In general, there are two types of changes that
can take place in an HPWO.
1. Process-based changes
2. Cultural changes
In general, every process based change also inflicts cultural changes in the working of
HPWO. In order to understand this relationship, we need to first conceive a hypothesis.
Under this hypothesis, we need first lock the ends of the performance. The first end is the end
of the unorganized performance, where all the fraction of the organization works
independently and the gap between their offerings remains high. The second end is the end of
the standardization where all the fractions of the organization stay in constant touch with each
other and quality check departments keep an eye on the delivery of the standard goods.
The hypothesis that we wish to propagate here says that “standardization of the delivered
goods and the procedures can minimize the impact of the cultural changes. In order to prove
this hypothesis, we can take the example of Toyota from Japan. Under the capacity of
automobile manufacturer, Toyota works under the arrangements of a "Just in Time"
inventory model. "Just in Time" inventory model demands a different kind of culture where
the parameters of the reporting and quality control may change drastically. In order to
mitigate this condition, Toyota works under strict norms of standardization. Sometimes their
assembly life faces certain problems like a delay in the supply of the raw materials; however,
they can manage it very easily by applying the tactics of the standardization. Toyota has a
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parallel provision for a change management team, this team quickly reworks the goals with a
mechanical dexterity and apply them on the assembly.
The moral of the story clearly indicates that the standardization of the outputs at various
levels is an effective exercise. In normal organizations, the authorities enjoy a different kind
of locus of control where they have ample time to figure out the impacts of the cultural
changes. They have time to implement certain ice-breaking sessions and other seminars to
bring every employee on the same page. It is true that HPWO can also facilitate this type of
an exercise in their premises; however, time is a luxury for them this is why a mechanical
standardization of the output emerges as a healthy and impactful solution for them when they
want to face the challenges caused by a cultural change in the organization.
In order to create an HPWO, HR machinery sometimes hires employees on the merit of their
technical excellence. It can serve as a barrier for a healthy HPWS. The major problem that a
cultural based change can cause is related to communication barriers. Ideally, HR machinery
should try to take resort in the standardization of the practices. Sometimes this
standardization can kill the informal communication among the employees, however, the
same culture can also make it sure that cultural conflicts are not arising in an HPWS.
4
A note on the main barriers
Unclear strategy and wrong priorities
The development of an average HPWS should be done in such a fashion where the
responsibilities associated with the tasks can be shared equally among various fractions of the
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organization. An unclear strategy can instigate a fall of the system under the “Domino
Impact.” For a better understanding we can take the example of Toyota’s assembly line, as a
guiding principle they prefer to go for a flatter and less hierarchical organizations. Now let’s
imagine that they drift from this fundamental and start a strong hierarchy based reporting
culture then it will show that they are following an unclear strategy where the command line
can create potential blockages in the delivery pipeline.
The thumb rule related to the development of the HPWS for an HPWO clearly says that
minimal reporting should be introduced in an assembly line and reporting should be
introduced to energies the organizational texture. It should work as an additional layer for
quality control. It is a common practice that sometimes this reporting becomes a hindrance
for the speedy delivery of the goods. While creating an HPWS based system, one should
never forget the fact that systems are secondary and performance is primary. One such
example can be seen in the case of HR management, in general, any organization going to
generate an HPWS prefers to take the services of the creamy layer, and however, while hiring
the creamy layer they often forget to maintain a balance in the teams. Many leaders in a
single team can sometimes create a situation of conflict. This is why the formation of a clear
strategy and fixation of the priorities is important for the creation of an HPWS to form an
ideal HPWO.
Leadership style Choices
In general, an HPWS demands a laissez –fair style of leadership more prominently because
here the effectiveness of an employee matters more. A top-down leadership approach should
restrict its scope to the levels of the objectives and guidelines only. Sometimes top-down
approach can act as a hindrance for the employees and bring down its impact on the
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sustainability of high-performance work. It can serve as a procedural and psychological
barrier, the style of laissez -fair under the restrictions can work well to support a system that
can be termed as HPWS. The facilitation of the HPWS is a primary condition for the
formation of HPWO. In a similar fashion a restriction driven laissez -fair also creates an
optimum system for the formation of an HPWO.
Any given HPWO thrives mainly on the involvement levels of an employee. If an employee
is acting as a self-motivated molecule in any given system and contributing in the main frame
of the organizational system then it supports the concept of HPW quite considerably. A
condition of laissez –fair can impact the goal orientation of a set of employees and the
collective performance of the employees or departments can suffer very badly. The concept
of too laissez –fair can also hamper the exercise of the integration of the organizational goals.
This is why it is important for an organization to follow a balanced path slightly inclined
towards laissez –fair.
Lack of Trust
Standardization of the various under prepared goods at the raw level is necessary for the
smooth conduction of an HPWO. This why an HPWS should be designed where
standardization of the outcomes is necessary. During the initial phase, quality checkers and
others can go for a trust-building exercise. After the accomplishment of the necessary
benchmarking a system can be made functional, lack of trust in an HPW assembly line can
leave its ripple effects and slow down the progression of the processing because of additional
quality tests. This is why it is important to maintain a system where trust-building measures
are constantly working and mitigating the conditions such as lack of trust.
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Poor coordination between the departments
The role of coordination in an HPWS can be understood with the help of four types of
coordination. Standardization can be considered as the best coordination as it does not
demand that extra effort from the side of the supervisors. In order to make things working
under tough conditions, certain organizations can take resort in mutual adjustments between
the departments. Ideally, an HPWS enabling an HPWO should work in a fashion where it can
facilitate the standardization of communication and under processed goods at various levels.
We can also understand the impact of poor coordination in HPWS with the help of the ripple
effect. Any HPWS is successful only when it is working as a closely knit unit. Any problem
or lack of coordination among the departments can lead to creating a ripple in the working of
the assembly line. This ripple can further transmit its impact on the other department. A
glitch in the delivery of the service at an intermediate level can bring down the efficiency of
the effectiveness of the system at the final levels and bring down its performance.
Inadequate leadership
It is believed that HPWS normally works more because of the participation levels and
personal efforts of the employees. We can also say that HPWS is not possible without self-
motivated individuals. This fact never mitigates the role of the leaders in these setups.
Leadership style plays a crucial role in the functioning of an HPWS. However, the
interference levels of the leadership in a given project is a subject dependent on the case
(Bevan,2014).
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Instead of having a centralized leadership clan, HPWS organization should follow a flat layer
of the hierarchy where multiple leaders can work together and correct each other from time to
time by keeping a check on the quality-related issues or the gap in the standardization of the
services that may occur due to the shortcomings of any given department. Many experts
believe that after crossing the stage of the planning the leaders should play a dormant role in
the assembly lines of any given HPWO (Allwood,2012).
Closed Vertical communication
Closed vertical communication can bring down the productivity of HPWS convert it into an
ordinary exercise. Closed vertical communication often creates a black spot for the
leadership and the employees at the same time. It can lead up to the condition where best of
the employees can fall for the trap of the indecisiveness and thus make it difficult for any
system to facilitate an HPWS that can be converted into HPWO.
Closed vertical communication can be utilized for building up pressure on the employees.
Building up the pressure with the help of a closed vertical communication can pressurize an
employee or a team to deliver their best. However, the same communication can sometimes
act as a barrier where management or the leadership may find it difficult to know about the
real cause of the trouble or the key result areas to improve the performance of a team.
Fear of criticism
Fear of criticism can become a vital issue and restrict the growth of an employee quite
considerably by cutting down his free will and make him a follower of the system rather than
a self-motivated person heading towards a goal.
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Attitude towards change
A change in the external or internal environment can dampen the morale of an employee
dependent upon his or her personal traits. This is why it becomes important for HR to keep a
check on the attitude of an employee. For a better understanding, we can take the example of
a military force which is on the move, sometimes they are required to achieve certain feats
that are impossible in nature, here the attitude of the soldier matters most to conquer an
invincible target.
Section 2
Question 5
Stages of the performance management cycle and the role of appraisal
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Image 2: Four steps of managing the performance management cycle for the HPWS.
Retrieved from: http://thepeakperformancecenter.com/business/performance-management/
performance-management-cycle/
The above-mentioned diagram gives us an idea about the steps of the performance cycle
management. In the case of HPWS the step of reviewing plays a crucial role because this is
the step where they need to implement certain changes at a quick pace.
Reviewing and rewarding as a tool for connecting between employee and organizational
goals
It is a common practice to reward an individual on achieving personal goals and punish in the
case when he is not able to do so. However, this algorithm between an employee and HPWS
become a little more sophisticated in the case of HPWO (Garcia,2013). The Human Resource
management team can manage this exercise by coming up with the right kind of boosters to
support the dipping morals of the employees. They can come up with various types of
recreational programs to break the monotony of the life of such employees. It also means that
HR machinery should come up with a culture to improve an employee rather than punishing
him or her (Pyrillis, 2013).
The role of the performance reviews for organizational and legal purposes
A regular performance review can allow the managers to maintain a profile of the employees
working capabilities (Berg et al,2012). This can also help them in preparing the lists for the
promotions and handpick some leaders from the group. Two types of reviews can be
facilitated; first, we can go for a review written by the supervisor or the reporting officer of
the unit. The second review can be termed as the peer to peer review. This type of review can
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help a manager in checking the "team building based capabilities" of an employee (Boblin et
al, 2013).
A special type of performance reviews can be facilitated to support the legal procedures as
well. In general, these reviews are applicable only in the cases of exception when we see
them from the point of view of internal matters of an organization (Bekhet et al,2012).
Performance reviews can also be utilized for the purpose of the reporting when an
organization reports the facts and figure to the higher authorities and regulatory bodies
(Bourne,2014).
Question 6
Examples to include line managers in various processes
Performance appraisal and recognition
Line managers can maintain a record of the productivity and punctuality of an employee on a
regular basis ( Cronin,2014). A checklist can be prepared and a standardized rating system
can be introduced where Line managers can give away the ratings on the basis of the point
earned by an employee at the end of any given term (Berber,2014).
Training, coaching, and guidance
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A line manager can recruit certain senior members of the team for the purpose of training and
coaching of the new employees. Apart from it, team leaders can be appointed under any
HPWS with an intention to provide necessary guidance to the people (Brinkley,2013).
Employee Engagement
The line manager can chalk out certain plans with the HR machinery and implement them.
The definition of the HPWS says that "less intervention and monitoring from the side of the
management and more focus on the rewards signifies the differentiation of HPW system from
a regular system”. Rewards and proper recreation facilities can increase the employee
engagement (Armstrong,2011).
Creating and maintaining a learning environment
Most of the line managers are duty bound to arrange seminars related to the wellbeing and
safety standards of the employees. Regular conductance of these seminars along with some
skill up gradation workshops can help a line manager in maintaining a learning environment
(Green,2012).
Work-life balance and wellbeing
When we check the work-life balance in HPWS, it gives us a different picture. Sometime
highly motivated employees may end up working extra hard and losing work-life balance.
Line managers can help an employee in picking up realistic targets (Catermole et.al,2014).
Mentoring to ensure quality
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Ideally, a line manager can set up some quality check spots in various assembly lines where
experienced individuals can check the quality of the goods and bounce them back in the case
of deficiency. The culture of Total quality management can also be applied to support a line
manager in keeping an eye over the prescribed standards of the quality (Hirsch,2015). The
inclusion of “inside the process quality check” can allow him to detect the weak spots and
appoint the mentors to fill in the gap (Seong,2011).
Question 7
The role of performance management process in various streams
1. Promoting challenges: Performance management process can help a manager in
fixing the indicators of success and motivate them to achieve them. The tactics
associated with performance management can support the task of the integration of
the employees with the organizational goals (Singh,2013).
2. Building Future Capacities: The task of performance management can be done on
multiple levels, a manager can keep an account of the individual performances along
with the performance of the team. He can shuffle the roles of the team players and
sometimes replace certain well-performing players with youngsters to give them
exposure (Rhoades,2011).
3. Recognizing and rewarding the talent
Under the realms of performance management, a manager can draw a shared
responsibility matrix of the operations. With the help of certain indicators, he can
pinpoint better performing employees from the rest of the pools. Rewards can be
offered on two levels, employees can be promoted on the post of authorities or they
can be given perks (Sadri,2012).
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Question 8
Examples of the reorganization in connection with the ethical practices
Most of the perks awarded by the organization on the achievement of the targets can
be considered as the direct and declared rewards (Gajewski,2013). Most of the
declared and direct rewards promote the concept of equity in an organization where
an individual can earn rewards on the merit of his hard work (Rozkwitalska,2012).
The promotion of individuals to the post of the authority gives us an example of
meritocracy, a person can be promoted on the basis of his superior skills or superior
experience. This principle once again consolidates the position of the value of equity
and equal opportunity for all (Patel et al,2013).
A regular hike in the pay on the merit of the maturity or the inflation rates presents an
example of fair practices. As an organization leader one has to practice the principle
of “each according to capacity and each according to necessity.” A pay hike based on
the inflation rate also depicts the reasonableness of the organization (Robbins et
al.2010).
Section 3
Question 9
Recommendations for the sustainability of an HPWS and HPWO
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Trust
Trust building exercises and confidence-building measures should be introduced as a
custom in the pipelines of the organizational processes. Trust should become a habit
of the employees as it is the primary factor behind the setup of an HPWO
(Argyris,2010).
Enthusiasm and commitment
Monitory rewards in return with the good services can only ensure a commitment of
the worker because it gives them a sense of safety and worthiness. However, in order
to gain enthusiasm from the performance of an employee, any HPWO should come up
with some value-added rewards or the proposals. There is no harm in adding these
rewards in the wellbeing of an employee as well (Meyers et al.,2013)
Supporting and enablement of a high-performance culture
Companies like Ford and Google often benchmark the present success of their teams
with the past achievements of the company. They often try to come up with a
comparison to motivate the new employees with a distinctive kind of organizational
culture (Miroshnik et al.,2011).
This concept is also known as the concept of organizational knowledge or the
organizational legacy as well. Picking up the best examples from the past and
presenting them as the tacit knowledge to design the success for the future can act as a
great tool to imbibe and nourish a high-performance culture.
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