When the call centre staff are asked why they are leaving, they tend to say it is due to poor leadership from the call centre managers. They do not like being told precisely what to say and do on calls. The call centre managers say this is essential to create maximum sales. But the call centre staff say that when they really get to know the customers, they generate bigger sales and more repeat sales. Workers are given bonuses based on how much revenue they generate each month, but managers are given bonuses based on how many new clients they bring in each month. You are aware that this may be what is causing the problem.

You have been asked by the management to recommend actions to reduce staff turnover.

1. What is tacit knowledge and how does it relate to this case study? Suggest one or two actions this company could take to make better use of its tacit knowledge. (5 marks)