Understanding Knowledge Transfer in Complex System Product Development : Implications of Employee Exit

Abstract: Today employees are changing jobs more frequently than in the past, which can result in the loss of valuable knowledge and information during employee exits. This makes sharing of information and knowledge within the organisations more important than ever before, particularly during the product development process. The problem of losing knowledge during employee exits is a critical risk facing organisations.  It is worth noting that the study was inspired by the ethnographic research approach, with the purpose of understanding the nature of the phenomenon of information sharing in the product development process of small-scale complex system products and the aim to understand its implications during employee exits. The data for this study was collected through observation and interviews.  According to the results of this study, it was found that employees within the company used a range of techniques for storing and sharing information. The most common method used for finding and sharing information was informal meetings, however it was noted that there is room for improvement in this approach due to the potential impact of limited documentation. With regards to employee exits, the study revealed mixed opinions from employees regarding the existence of a formal off-boarding process. While some stated that such a process was lacking, others reported that it is indeed present. The process of transferring information and tasks to the next person seems to depend on the individuals involved, with some developing their own methods for handing over their work.  This study highlights the importance of context, reasoning, and decision-making when it comes to storing and sharing of information during the product development process, and the impact this has on the passage of knowledge during an employee exit. The knowledge transferred during an employee exit will determine the next person’s ability to work efficiently and effectively. There are numerous challenges in taking responsibility for a part or system without a comprehensive understanding of its history and background, especially when the previous employee in that role has left. Ultimately, this study emphasises the crucial importance of retaining experienced personnel and encouraging long-term employee commitment to the organisation.