Meyer (2001a)

Management > Comparative Management > Lectures > Independent Research > Meyer > In order to improve > Foreign entry > Post Privatisation

Post Privatisation

Post-privatisation, there is little training for employees. Much of what is known is tacit-knowledge, meaning that the educational process needs to be interactive. There are three levels of learning:

1. Technical level – how to use machines, specific techniques

2. Systemic level – procedures, routines, new relationships. The learner has to unlearn much of what he has learned in the past, including value systems

3. Strategic level – senior managers have to change their cognitive framework for doing business, understanding the processes of their business very well and being able to use this knowledge to innovate

The acquisition of this knowledge is inhibited by the institutional context of the transfer. In order to create a successful transfer, new managers need to share knowledge and power with old managers, working together to create an efficient business. Just taking over and telling people what to do is not going to work.

The high uncertainty in the new environment will inhibit the willingness of people to learn new things, as this may be perceived as leaving what certainty they had.

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