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Workplaces both in the public and the private sector, national and international depend on their workforce for maximum productivity which will in turn result in efficiency. Previously, organisations focused on cost reduction strategy and maximisation of sales However, the practice and research in the more recent decades showed that one of the key aspects of high productivity are employees and how they are managed. According to Hoverstadt and Bowling (2002), manager’s capability to handle a problem or workplace successfully is in direct proportion to the correctness and significance of the models they are applying to understand it. In most cases, managers depend on the tacit models that they have created themselves. to deal with employee management without explicit formulation This is mainly true for management teams which have operated in the same sector or organisation for years. In circumstances like these, manager’s tacit models can correctly indicate certainty, giving the management team with a decent ground for handling with the kind of everyday issues that predictably troubled their organisation. However, adopting the tacit models undoubtedly have many possible disadvantages as they can hide big disparities in opinion among leaders and which can sometimes fail to provide a decent manage on new issues. Tacit model is not available as a text, it includes insubstantial elements rooted in personal values, experiences and beliefs (Pan & Scarbrough, 1999).
Tacit models can also limit the capability and eagerness to deal and initiate with radical change as opposed to progressive change. The tacit models also emphasize on employees’ strengths without supporting their weaknesses. Although, tacit model symbolises abundant value to the organisation, by it is nature, it is far more challenging and at times difficult to overcome and diffuse (Koulopoulos & Frappolo, 1999; Nonaka, 1994). Davenport and Prusak (1998) display the difficulty connected with capturing the tacit model in their instance of an effort to transfer the expertise of the world best aerial picture specialist into a skilful system by a computer expert. The skilful system was unsuccessful. As workplaces become bigger and more difficult, therefore the need to make use of explicit formal models that leaders can apply to share their knowledge and to communicate about the problem, tend to increase. Explicit knowledge implies factual statements about such matters technical information, tool characteristics and material properties (Koskinen et al, 2003). Companies working in rapid changing atmospheres also need to make use of the explicit formal models for the purpose of satisfying their employee and enhancing their productivity.