The Management Programs and Knowledge Management - Essay Example

Executive Summary Knowledge Management has become a buzz word in modern management enterprises systems and has gained currency over its usage in selected firms. However, the general opinion about KM is that literature does not support the view which management theorists and practitioners advocate that it is beneficial to corporate. Therefore, it became necessary to seek a study which explores the myth and reality of KM and based on empirical study gives a unbiased and objective result based on empirical studies. The methodology chosen was the Kaplan and Norton Balanced Scorecard method which measures the degree of success of KM on FSA, the case study that has been taken up to validate or negate the hypothesis regarding success or failure of KM on business enterprises. The deliberations of the study seemed to concur with the view that KM does seem to have beneficial results in business especially in the areas of seeking new knowledge sure through training methods, group dynamics, use of advanced technology like intranet and centralising the knowledge asset resources like electronic archives and library sources. Studies does seem to concur that KM could increasingly be used for business needs and although in a restricted sense in today's world would definitely be very useful management tool in later years with gainful popularity and benefits through wider usage. Demonstrate how knowledge management can assist an organisation to learn from [project] failure in order to change and innovate successfully. Knowledge and Innovation Systems (4BIM609) Introduction: In today's world where competition is key element, knowledge management has significant role to play in the success of an organisation. Knowledge management refers to use and mange the knowledge for accomplishing the objectives of organisation. Proper knowledge management is required for innovating new ideas and projects. Researches show that, the main reason for the failure of most of the projects of different organisation was the lack of proper knowledge management. The organizations are supposed to promote the habit of knowledge management as it can contribute much for new innovations. Knowledge management helps in organizational performance improvement, in creating friendly working environment by way of sharing knowledge between employees, and in innovating new ideas. Knowledge management can help in the introduction of products and market expansion thereby helping the organisation to increase the revenue. Available data and information are the best of source of knowledge. Knowledge management plays key role in innovation. And also knowledge management is closely related to innovation. If the organizations failed in any area, it should be ready to accept the failure and treat the failure as the ways to success. Knowledge management helps failed organizations to make changes and be successful. Knowledge management and innovation can improve the overall performance of the organisation. The relationship between Knowledge and Innovation: Knowledge refers to what a person knows or understands about a particular subject. A person can improve his knowledge by reading and experience. The term innovation refers to introducing new ideas or thing keeping invention as a base. Before discussing the relationship between knowledge and innovation, it is important know the difference between innovation and invention. The word invention refers to finding or discovering a new idea or thing which nobody has discovered yet. Burt innovation refers to introducing something in a different way which has been invented by some others. In other words, innovation refers to bringing into existence or practically implementing the ideas of some others. For example Charles Babbage was the real idea behind the invention of computer. But he did not create a computer. It was designed or created later by some others. Without knowledge innovation is impossible. Because for innovation a foundation called knowledge is required. If anyone is analysing the background of any invention, it is clear that the person or person who invented that particular thing or idea will be having good knowledge of that particular subject before the invention. Implementation of knowledge management system: For effective implementation of the knowledge management it is better to use a well designed system which focuses on storing and sharing of knowledge. The organisation can create a knowledge ware house for storing the information received internally as well as from outside sources. Focusing the point that the absence of the proper knowledge management was the real reason behind the failure of the company's project, the company has to design a system of knowledge management. It can reduce the chance of becoming the projects being a failure. Knowledge from internal source includes the knowledge that each employees of the organisation are having. This knowledge is to be shared and also it has to be stored in the knowledge ware house. The knowledge ware house can be created in a computer or manually in books. Knowledge management and organisational change: It is now necessary to take up a specific UK case study relating to the impact of knowledge management upon the success of the organisation. The case study is of Financial Services Authority which regulates the financial services industry in the United Kingdom. Started way back in 2001, it is often referred to as a 'Super regulator' for UK financial transactions. (Measuring the Benefits of Knowledge Management at the Financial Service. 2003). Importance of this study: The importance of the study of FSA, is to assess how knowledge management has played an important role in providing direction, impetus and focus to management endeavours and promotional activities relating to knowledge management. This study assumes serious importance since there are a lot of extraneous influences that could possibly impinge upon workings of FSA and its independent functioning. It is seen that EU directives may be binding upon UK jurisprudence. Further, FSA, along with the Financial Services and Market Act, albeit a framework organisation, is responsible for regulating more than 100 instruments under FSMA. (Measuring the Benefits of Knowledge Management at the Financial Service. 2003). Moreover, it became necessary for the FSA to produce, in consultation with financial and economic experts, a Handbook and Practice Manual with 24 Sourcebooks which needed to be reviewed regularly and also provide that could address aspects concerning FSA Thus, not only are the scope and depth of the financial regulations to be considered, but also there lies a great deal of complexities and intricacies in the legal system that needs to be cleared, including the fact that FSA and FSMA laws are evolving and subject to changes and amendments over time. Objectives of the study: The main objectives would be in terms of assessing benefits that could inure, due to use of knowledge management in the context of FSA and how it could underpin future research. It could also be seen in terms of the various arguments that could be put forth to confirm, or negate the research hypothesis whether knowledge management could add to success of the organisation or not. Literature Review: In as much as knowledge management is concerned, it is seen that, although strategists and practitioners of Knowledge management have been unanimous about benefits and advantages that could accrue through implementation of KM, the Literature Review does not seem to evidence empirical studies that support these theories. One the other hand, it is seen that the three important arguments that are drawn forth regarding implementation of knowledge management could stem from the following: 1. It would be difficult for adults to institute radical change patterns in their official behaviour and conduct. 2. It may also be necessary for adults to adopt, adapt and be adept at new and previously unknown skills in official matters, especially with regard to administrative and enforcement responsibilities. 3. Unless motivation for increased performance and making personality changes for better comes from within the individual and is explicit in his behaviour patterns, it may be not be effective and permanent. It therefore becomes necessary to test the arguments at a later stage in order to establish the validity or otherwise of the research hypothesis It is now necessary to consider the method adopted for this study. Methodology adopted for this study: The methodology adopted was an empirical use of Kaplan and Norton's Balance Scorecard Method by which the success of Knowledge Management could be established. In order to use balanced score more effectively in this study, it was necessary to sub- categorise it into four categorise and make analysis through survey and other methods. The main areas that knowledge management needs to be tested and research would be in terms of: Setting up and coordinating the activities of intranet site: From the research carried out in this connection, it was found that the benefit of this improvement in Knowledge Management could be in terms of saving of efforts, establishment of a common platform and also better use of legal tools by the lawyers for enhanced performance; this was not there previously and most respondents believed that this could augur well for enhancement of KM techniques in FSA. Next would be in terms of a centralised knowledge pool of electronic filing systems that would obviate the need for maintaining archives and records for individual records on departmental basis. This has many advantages in terms of less risks of loss of records; access could be gained by another person in the absence of caretaker of such filing systems etc. This could also be seen in terms of better pooling of resources and better control by the top administrator over assets and resources. Akin to this would be the library resources of publications, reports and other published materials which need to be well monitored and archived. Proper recording of receipts and lending of books and material assets need to be made and be subject to regular audits. The respondents' felt more changes to be made regarding the administration of library resources in order to achieve better results. The fourth aspect is with regard to the pooling of resources of knowledge Management and ensuring that all people contribute to the common purpose of enhancing KM that could bring about benefits to all. While different lawyers and other legal professionals have different skill sets within the profession, and perhaps specialisation in particular field of legal activity, this could be shared through common forums, meetings and joint consultative sessions with the concerned KM officials. This practice was not carried out in the past and KM could provide better knowledge, especially to new comers in the field. Also included in this would be the need to seek new developments in the field of legal practice and how it would benefit FSA and also guest speaker and lecturers invited to address lawyers and other professionals and major current issues that affect the workings of the FSA. It is seen from the deliberations that basically as far as KM is concerned, there are two kinds of knowledge an individual may possess- the explicit knowledge that he gains through learning, training, working, etc. There is also aspect of implicit knowledge that he gains through self introspection, thinking and contemplation process. Through explicit knowledge gained through experience and performance, one could apply the same in implicit knowledge acquisition drives. One's knowledge data base could be enriched through implicit use of explicitly derived information, data and sourcing. Thus, Knowledge Management cold be seen in terms of applying knowledge already in possession into areas of lesser knowledge that could, in effect enrich the mind of the knowledge seeker. It is now necessary to delve into the arguments as listed above. The first argument stems from the fact that full fledged adults cannot be made to change their behavioural patterns and office conduct. But apparently, this research has shown that major conspicuous changes could be made, since adaptability is another way of responding to changes, in terms of better use of learning resources, increase in confidence levels and interacting with other persons, and also in terms of better communication skills. The responses have been positive from the survey conducted in that positive adaptation could be garnered through training and personality development programmes, designed to being about major changes in attitudes, dressing and overall human interaction. Next coming to the fact that new adaptation of work processes could be difficult in that they have established practices may be true only to limited extent. It is seen that many adults have adapted to new formats in their workplaces and undertaken complex task with relative ease and lan. The third part of the argument is seen that KM innovation need not be thrust upon anybody, and it would come about routinely when the work culture changes and other colleagues in organisation respond favourably to it. KM studies have shown that innovation and modern techniques are best suited and effective when the personnel are themselves convinced and sure that they would be able to undergo it. Results and discussions: The results of the survey and other methodology tests taken up indicate a favourable response for Knowledge Management being a capable and competent tool for benefits that would accrue by its correct application. However, as mentioned earlier, the practical implementation of KM is also a major issue, which is perhaps more important than the research study itself. The reasons why most KM research may not be effectively harmonised could be in terms of the fact that major structural reorientations may become necessary, which may have widespread implications in areas of pubic accountability and administration. Thus, it becomes necessary that, although KM may prove beneficial in turning unsuccessful business into profitable and successful ones, it is necessary that a compete study of the present system, the areas of deficiency and lacunae are correctly identified, which gaps need to be filled, and what are the major issues that need to be rectified and corrected. This estimation and possibly SWOT analysis needs to be done before the actual KM programme implementation is actually conducted that would provide the right kind of solutions to the problems that beset the business enterprise. Coming to the specific case study of FSA, it is seen that the legal framework within which FSA operates is indeed very complex and intricate, seeking compliance with policies, procedures, laws and regulations. With the EU rules and other trans- national laws in place, it is expected that the role of FSA is boud to grow in the future, in terms of commitment and responsibility and the need to act as the true watchdog of UK financial interests on a global perspective. Under such circumstances, it is therefore necessary that the benefits of KM need to be infused in all possible areas of its corporate functioning and need to percolate and permeate to the lowest ebb in order to be truly effective. While it would be far-fetched to seek immediate or even medium term benefits from introduction of KM planning and procedures. It would not be wrong to state that this augurs well for a large scale institution like FSA, and with Information Technology and its partners, ecommerce and internet era firmly in their place in global business, the scope and level of FSA's business would be enhanced andits commitment for being a alert and responsible watchdog for the financial interests of the UK would certainly be met in real terms. Conclusion: It is seen from the above deliberations that the choice of FSA as a case study for this essay is indeed an apt one, since it is most suitable choice for Knowledge management given the wide legal ramifications and knowledge and application of British and EU laws that are relevant to trade and business practices in the UK and abroad. However, it must be cautioned that KM need also to be soundly integrated into the system and time given to provide results and benefits. The implementation is as important as the theoretical studies, and it needs to be seen that the oft repeated criticism that literature does not support evidence of its benefits need to be eliminated. This could only be made possible through better use of technology, efficient use of resources and a through examination of current standards and practices before embarking upon a large scale KM policy implementations. Knowledge management needs to be gained, assimilated, internalised and implemented according to the need of the hour and the situation. It need not be adapted in isolation and could also be used in combination with a host of other effective managerial tools for robust results. It is necessary that all echelons of management and workforce be also involved in the management programmes concerning Knowledge Management. This is because if this is done in isolation it is possible that the wholehearted support and cooperation of the workforce and other relevant parts may not be gained, thus seriously undermining the efficacy of the system. In this research study it is seen that KM could over along term be very beneficial to management of this finance institution. Bibliography Measuring the Benefits of Knowledge Management at the Financial Service. (2003). [online]. Jones Journal of Information. Sage Journals Online. Last accessed 13 April 2009 at: http://jis.sagepub.com/cgi/reprint/29/6/475 Read More