Gainsharing and knowledge sharing: the effects of labour–management co-operation

Abstract

We compare patterns of employee knowledge sharing in the form of suggestions for reducing costs and improving productivity submitted as part of a gainsharing reward system in two organizations. Combining insights from recent studies that use employee risk sharing and organizational learning frameworks to understand how gainsharing programmes work, we propose that employees' willingness to share high-risk (second-order-learning) knowledge with management is affected by the degree of labour–management co-operation and trust. Specifically, we hypothesize that union support and involvement in gainsharing affects employee knowledge sharing by increasing employees' initial acceptance of the compensation risk associated with gainsharing and by facilitating employee willingness to take on additional compensation and employment risk over time. We test these hypotheses using time series data on employee suggestions and gainsharing performance at two locations with similarly structured gainsharing plans but different levels of labour–management co-operation. The results generally support our hypotheses. We conclude by considering the implications of these results for gainsharing design and implementation as well as the broader implications of the effect of HR practices on employee knowledge sharing and knowledge management in organizations.