2. 2
Table of Contents
ABSTRACT......................................................................................................................................................... 3
INTRODUCTION ................................................................................................................................................ 4
BENEFITS OF KNOWLEDGE MANAGEMENT ..................................................................................................... 5
KNOWLEDGE MANAGEMENT: IN ORGANIZATIONS ........................................................................................ 6
KM ENHANCES ORGANISATION EFFECTIVENESS:-........................................................................................... 6
Competing Values Framework (CVF) and Knowledge Management- ............................................................. 7
Organizational Culture ...................................................................................................................................11
Knowledge Management at Company............................................................... Error! Bookmark not defined.
Intranet-Based KM Projects .............................................................................. Error! Bookmark not defined.
The Possible Impacts of Culture on KM ............................................................ Error! Bookmark not defined.
CONCLUSION..................................................................................................................................................15
3. 3
ABSTRACT
In this ever changing world,which is predominantly driven by globalization or integration of
economies,knowledge based structure of an economy is the need of the hour. The massive
development of ICT – Information,Communication &Technology has changed the perception
of the majority;both public & private players.
In order to gain a competitive edge over other companies around the globe are very much
eager to tap the assets they are working with,though it be land,machinery,material,money
and men.Organizations are en-cashing on their human resources by capturingtheir know
how and applying the same in a COLLECTIVE & SYSTEMATIC manner in order to achieve the
goals effectively and efficiently.
KM has been the core of strategy formulation though it be planning,consulting,and
implementing(OECD 2001) and research papers suggests that public and private enterprises
are now more inclined towards using KM in strategy formulation .A major component of
successful KM practice is raising its awareness not only to managers,but to frontline
employees as well.The concept of KM should be advocatedand benefits should be
elaborated.What new about KM is act of being conscious about the existence of the KM
process (Savary 1999).
There are certain organizations which use KM practices without prior knowledge and
awareness will not reap benefits to the full extent.Therefore it is vital for an organization to
understand the concept of KM when starting a KM initiative in order to succeed.
4. 4
Wisdom
Knowledge
Information
Data
Levels from Data being converted into Wisdom
INTRODUCTION
Knowledge Management as the word suggests means managing knowledge, but in real
connotation
The meaning is boundary less.Knowledge cannot quantified it brings along with itself some
notional value. Many authors explain Knowledge Management as and how they deem fit
,few of the noted definitions are as follows-
“Knowledge Management is the discipline of enabling individuals,teams & organizations to
collectively and systematically create,share and apply knowledge to achieve organizational
goals.”
-Ron Young,CEO Knowledge Associates International
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“Every time we do something again,we should do it better than the last time, by using the
knowledge so attained at the first go.”
-Sir John Steely Browne,Harvard Business Review, 1997
“Knowledge Management is all about acquiring, analysing, storing, manipulating &exploiting
the information for the benefits of the organization.”
-GlaxoSmithKline
And from the discussed definitions we can infer
K M is about people & learning objectives
K M is about processes,methods,techniques
K M is about managing knowledge assets
K M works pervasively
The catch words are capturing,storing,sharing and applying knowledge in a MORE
COLLECTIVLEY & MORE SYSTEMATIC manner.
BENEFITS OF KNOWLEDGE MANAGEMENT
“Knowledge is the only jewel which cannot decay.”
-Mahatma Gandhi
Products and Services are becoming complex, customers’ demands are on a rise,and
budgets are in constraint.These mentioned challenges brings out positives of Knowledge
Management-
1. Satisfied and Loyal customers
2. Higher efficiency
3. Higher effectiveness
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4. Pool of expertise
KNOWLEDGE MANAGEMENT: IN ORGANIZATIONS
Knowledge in organizations is classified into two distinct categories
1. EXPLICIT KNOWLEDGE
2. TACIT KNOWLEDGE
Explicit knowledge is that knowledge which can be captured and written down in
documents and databases.Explicit knowledge is a knowledge that can be captured and can
be easily communicated and shared(Nonaka 1991)
Tacit knowledge is that knowledge which people have in their minds.It is less concrete than
explicit knowledge.It is difficult to access as it is difficult to comprehend or
apprehend.(Drucker 1993)
KM ENHANCES ORGANISATION EFFECTIVENESS:-
Knowledge management is at the heart of any organizational performance and enables the
organizations to realize the value of human capital. It is a mix of values, experiences,
information, individual’s insight and understanding. It is not just what is present in the written
or documented form within the organization but also in the practices, routines, and processes
as well as in the workforce of the organization. The employees are the biggest repository of
knowledge in any organization and it is, only with their help, possible to achieve efficient
and effective knowledge management.
It has been identified as one of the most important activities in any business enterprise or
organization especially in the wake of globalization where the environment is so dynamic
that only effective sharing of knowledge will help an organization survive.
Knowledge management is a process which is systematic and integrative in nature which
involves coordinating various activities of individuals and groups which they undertake in
pursuit of organizational goals, these activities mainly involve acquiring, creating, storing,
sharing, applying and deploying knowledge.
Some authors argue that rising valuation of knowledge management in an organization is
not only due to organization being perceived as an economy of more than just good and
services,it is a global knowledge economy, but also because the deal with the activities
which lead to knowledge creation. Knowledge management seems inherently
uncontrollable or stifled by heavy handed direction as it includes people as the major
7. 7
element in the process as knowledge cannot be created without people thus making the
relationship between people and knowledge as the core of all the studies which were
undertaken with regard to the subject.
Many scholars believe that if the culture of the organization is supportive and conducive, it
will lead to the success of knowledge management and its various objectives like evaluating
risk, high productivity, reducing the time required for various activities and processes,
increased learning, faster decision making etc. The culture of an organization not only
affects the big enterprises but also the small and medium sized ones. As the complexity of
the working environment of these organizations is increasing day by day, they rely more on
knowledge that they have as their assets and as a source to develop more. As can be seen
from the discussion above, it can be clearly inferred that organizational culture becomes a
mediator between personal knowledge and organizational knowledge and knowledge
management help in their better management to prove to be helpful and beneficial for
effective functioning of the organizations.
Competing Values Framework (CVF) and Knowledge
Management-
The competing values framework as the name suggest is the framework of contrasting
values.
For e.g. – An Organization needs to be Flexible but also focused. The organization should
focus on growth and there should be good external support but also a tight internal
management control and communication.
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This framework helps organizations to assess their internal culture.
The four quadrants of the matrix represent each of the “competing values” in an
organization.
Four Quadrants-
Based on-
1. Internal Process Model:
Hierarchy, emphasis on measurement, documentation and information management.
These processes bring stability and control. Hierarchies seem to work best when time is
not an important factor and when the task to be done is understood well.
2. Open Systems Model:
An organic system, emphasis on adaptability, readiness, growth, resource acquisition
and external support. These processes bring creativity and innovation. In this People are
not controlled but inspired.
3. Rational Goal Model:
Profit, emphasis on rational action. It presumes that goal setting and planning results
into productivity and efficiency. Tasks are clarified; objectives are set and then action is
taken.
4. Human Relations Model:
Cohesion and morale with emphasis on human resource and training. People are seen
not as isolated individuals, but as cooperating members of a common social system with
a common stake in what happens.
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CLAN loyalty, communication and human development
MARKET goal achievement, customer-focus and profitability
HIERARCHY consistency, policies and process
ADHOCRACY innovation, agility and vision
RIGHT Quadrant looking externally at customers and the outside environment
LEFT Quadrant focusing primarily inside the organization
TOP Quadrant more distributed leadership in which employees are more empowered
to make decisions
BOTTOM Quadrant represents a more hierarchical culture where control rests with the
management
The findings of this research are highly related to knowledge management in an
organization.
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Knowledge management on the whole aspect and detail aspect is moderately
related to
Organizational effectiveness.
Organizational culture on whole aspect and competency aspect is moderately
related to
Organizational effectiveness and on marketing aspects is highly related to
organizational
Effectiveness.
According to multiple regression analysis, Organizational effectiveness is influenced by-
Organizational culture - Participation aspect, Development aspect, Command aspect,
Marketing aspect
Knowledge management - Acquisition aspect and Transfer aspect
The desire of Thailand's manufacturing enterprises' to improve organization culture on
Knowledge management which impacts on organization effectiveness suits well with these
Findings.
The two approaches of Knowledge management-
Process Approach
Codify organizational knowledge through formalized processes, controls and technologies.
Organizations implement explicit policies to govern how knowledge is to be collected, stored, and
disseminated throughout the organization
Involves the use of information technologies, such as data warehousing, intranets, decision support
tools, knowledge repositories and groupware to enhance the speed and quality of knowledge
creation and distribution in organizations
Criticism - Fails to capture the tacit knowledge embedded in firms and it forces individuals into thinking in
fixed patterns.
Practice Approach
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Presumes that a big amount of organizational knowledge is tacit in nature and that formal
processes, controls and technologies are not suitable for transmitting this type of
understanding
So, Rather than building formal systems to manage knowledge, the focus is to build social
environments or communities to facilitate the sharing of tacit understanding
These communities are informal social groups that meet regularly to share insights, ideas, and best
practices.
From this discussion, some key questions emerge.
How does culture affect organizations' approaches (e.g., process or practice) to
knowledge management?
As organizations pursue these initiatives, how do cultural influences affect the KM
activities of knowledge generation, codification, and transfer?
To answer these questions it is necessary to study and understand organization culture.
Organizational Culture
Schein in 1985 defined Organizational Culture as ---- certain assumptions held by
individuals in a group that defines the way in which group acts and responds to its internal
and external environment. Ravasi and Schultz state that Organizational Culture is a set of
shared mental assumptions that guide interpretation and action in organizations by defining
appropriate behaviour for various situations. At the same time although a company may
have "own unique culture", in larger organizations, there is a diverse and sometimes
conflicting cultures that co-exist due to different characteristics of the management team.
The Organization Culture basically is a combination of beliefs and core values that abide
tacit preferences about what the organization should work towards and aim to attain, like
what all they must do and how they should do it. Tacit values and beliefs of Organizational
Culture includes the organization values, visions, norms that consist of rules, working
language, systems, expectations, myths and stories, symbols, organizational structures,
control systems, power structure, beliefs and habits. These practices and norms define how
the people in the organization should communicate and act by providing the social
context.Considering this in frame of reference of Knowledge Management, Organizational
Culture basically defines that social context which defines that who has to control what
knowledge, and also who must share it, and as well as who can garner it.
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Figure below explains this conceptual linkage between OrganizationalCulture and
Knowledge Management behaviour.
Tacit (Unobservable) Underlying Cultural Beliefs & Values
The Social Context: Cultural Norms & Practices
Regarding Knowledge Management Practices
Explicit (Observable) Knowledge Management Behaviours
The figure above depicts, the social context consisting of norms and practices is the medium
for transmission of underlying values and beliefs into specific knowledge management
behaviours.
The process approaches vs. practice approaches to KM
Process Approach Practice Approach
Types of Knowledge Explicit Knowledge :- Tacit Knowledge :-
Supported Codified in rules, tools and Unarticulated Knowledge not
processes. easily captured or codified.
Means of Transmission Formal controls, procedures, Informal social groups that
and standard operating engage in storytelling and
procedures with heavy improvisation.
emphasis on information
technologies to support
knowledge creation,
codification, and transfer of
knowledge.
Benefits Provides structure to Provides an
harness generated environment to
ideas and knowledge generate and transfer
Achieves scale in high value tacit
knowledge reuse. knowledge.
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Provides spark for
fresh ideas and
responsiveness to
changing
environment
Disadvantages Fails to tap into tacit Can result in
knowledge. inefficiency.
May limit innovation Abundance of ideas
and forces with no structure to
participants into implement them.
patterns of thinking.
Role of Information Heavy investment in IT to Moderate investment in IT to
Technology connect people with reusable Facilitate conversation and
codified knowledge to tacit transfer.
knowledge.
Case Description and Analyses
Knowledge Management at Company
Knowledge Management at organization Alpha started as a top to bottom idea pursued
by senior management in a way of helping the organization to become more
modernized. At alpha, a group of eight or nine people at headquarters was given the
responsibility to drive knowledge management and start knowledge sharing. Because of
larger issues like the economic downturn that rocked US based businesses at the start of
the century, the top-level initiative tumbled into the backdrop, and also the dedicated
group was made inactive. Thus Knowledge Management at the organizational level did
not receive any funding and also no action was taken. However, at the business unit
level, successful Knowledge Management initiatives have been built around an intranet
or around Lotus Notes team rooms.
Intranet-Based KM Projects
Another initiative in the marketing area of corporate headquarters is Marketing Information
Centre or simply MIC. It assists the global marketing community of many thousand
individuals around the globe. MIC is an intranet based information centre along with many
other things consisting links to agencies, compensations, human resource information, and
contracts. Marketing Information Centre is opportunity oriented rather than problem oriented.
The members of MIC do not use it only for posting a problem inquiry and wait for responses
from others but instead keep a look for ideas generated in other parts of the organisation and
think about implementing them in day to day work.
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Marketing Information Centre (MIC) is designed in such way which enables it to be a
catalyst for collaboration and to actuate it as a universal world-wide marketing community.
As the chief marketing officer in the company no longer allows the budgeting of bright
manuals or brochures, MIC is widely acknowledged as the fundamental means of obtaining
such information. In fact, as attempts were made to include best practices in MIC, the
initiative encountered contention.
CM Connection (CMC) is one another Knowledge Management initiative within the North
American marketing unit. As compared to MIC which was an intranet based information
centre, this here is a web based marketing archive which is used to broadcast information so
that traders or wholesalers who all are the main cause for store level execution can use the
most recent information on how to merchandise the new promotions. The major impact of
CM Connection, as compared to MIS, has been the decrease of the quantity of printed
catalogues. The main challenge with CM Connection is about convincing the content
providers to own the information in the sense of both providing it and also keeping it up to
date. One more issue with CM Connection is that it is being seen by many as distraction
from their relationships with their clients. Even though MIC may help in reducing the
amountof time spent in traveling, but this is not necessarily welcome in a sales and
marketing oriented relationship company because you are losing away important relationship
points.The Human Resources unit with the Corporate Functions unit also has an intranet-
based Knowledge Management, referred to as My Career. It is designed for managers and
employees of the company to help retrieve information about what tools, classes, and
coaching are available for development. One of the goals of My Career has been to merge all
of the training information at one place.
Many such similar intranet-based Knowledge Management have been developed throughout
entire Alpha, such that the portal project was started to alleviate the problem that too much
information was present in too many places, different IDs and passwords for each database,
and having to remember what is in the database to get the information. However, despite
some initial receptiveness to the idea, IT budgets were frozen and the project never got
underway.
The Possible Impacts of Culture on KM
The statements and observations of our research point to two largely shared perspectives:
(1) The culture emphasizes the individual, and
(2) The culture is in a state of transition.
The case we discussed about the work within Alpha seems to be a tension between a culture
that demands individuality and the communal aspects of Knowledge Management. Our
research talks about a culture that is one of "individual survival" where individuals fear being
judged for their ideas, where there is individual isolation, and where individuals try to go
15. 15
unnoticed. Alpha has many KM initiatives that were developed largely as bottom-up
initiatives. The KM tools seem well designed and housed with valuable information.
CONCLUSION
KM is a discipline is still in early stage,which is evidenced form the literature published,
there are still many issues which are not addressed so as to have an indepth knowledge of
the concept and the subject.However enterprises are realising the very importance of KM
and starting to practice it.
Enterprises have to take proactive measures rather than relative measures to reap the
benefits of KM as a whole.
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