The Nature of Knowledge Economy - Case Study Example

The Nature of Knowledge Economy Sheehan and Tegart describe Knowledge Economy as an overall emerging economic structure (1998) with the rise in knowledge intensity and increase in globalization as the two major driving forces in the economic activities. Information technology revolution and the fast paced technological change are the elements which lead toward the rise in knowledge intensity; while the communications revolution through IT, as well as national and international liberalization, are the elements that drive globalization. (Houghton & Sheehan, 1999) The IT revolution has brought about digitalization, which is helping users, especially in the business environment. Besides being pervasive, its central features of manipulation, storage, and transmission of large amounts of data at low cost, has made the IT revolution to influence every element of the economy as well as business chain. From its significant impact on both goods and services to R&D, production, marketing, distribution, and customer management, the overall knowledge application of knowledge to all facets of economy has been greatly simplified; and with this the knowledge intensity of economic activities has amplified. Besides this, globalization has increased with global competition, removal of trade barriers, FDIs, easy transfers of technology and capital, and network oriented economic activities. The concept of knowledge economy does not merely revolve high technology or generation of new knowledge, in fact it centers on the exploitation or effective use of all type of knowledge for the creation of wealth (Dahlman, n.d.). The nature of knowledge economy has been explained in terms of the significant role of knowledge as a factor of production and how it impacts on learning, skills, and innovation in the business organization. With the help of information and communication technologies, knowledge is increasingly becoming systemized which is leading toward information diffusion. This in turn is stressing for the possession of knowledge-based skills by human resource. Learning is in focus for both people and business organizations. (Houghton & Sheehan, 1999) Requirement of Skills for Employment For the purpose of employability, business leaders constantly advise people to acquire the skills, knowledge, and capabilities that are required by employers in the increasingly knowledge-driven economy (CBI, 2001). Drucker (1993) suggests that production is no longer driven by natural resources, capital, or labor, but ‘innovation and productivity’ – the major applications of knowledge. Since technological demands are changing in the knowledge economy, so is the demand for critical skills and capabilities required by university graduates who are concerned about employability. The increasingly important skills, besides others, are individual initiative, creativity, social skills, and business awareness. The knowledge economy calls for flexible organizations which require workforce to assume multi-task job responsibilities, inter-personal management, conceptual and communication skills. The crucial skills needed by the human resources go parallel with information and communication technology, since investments made in the latter are as important as investment in human resources and their skills (Soete, 1997). The basic reading, writing, and arithmetic skills are no longer enough for workplace performance, as it is suggested by some analysts (Carnevale et. al. 1990). In fact most valued workplace competency at present, among others, is the employees’ ability to work in teams, and ICT (Information and Communication Technology) skills (OECD, 2001). Imperative for business firms is to become learning organizations which are constantly able to adapt to newness and innovation and which are able to accommodate new technologies and grab new opportunities. They must be connected through networks, where interactive learning and information exchange drives novelty (Houghton & Sheehan, 1999), because as strong linkages upgrade inter-firm interactive learning in the knowledge economy, the firms are better able to spread the costs and risks related with innovation. The skills and qualities required by graduates seeking for employability in the knowledge economy need to go parallel with these requirements. Moreover, since one of the significant driving forces for knowledge economy is globalization, which requires for firms to compete at a global level and attain a dominant multinational position. Competitiveness in such an environment calls for a wide range of industrial, commercial, technological, administration, financial, and cultural skills to be extensively coordinated and synergized (Houghton & Sheehan, 1999). From different surveys, it is known that intra-personal and communication skills are the most required; with initiative and motivation skills particularly relevant, since a motivated employee is more able to acquire the required skills through training (Industry in Education, 1996). Besides these, problem-solving skills, learning ability, and the capacity for self-management are also regarded as critical skills (even more that ICT or technical skills) for graduates to possess in such a demanding economy (Hesketh, 2000). Personal Skills’ Analysis In order to evaluate my skills in regards to the knowledge economy and the current demand of skills for fresh graduates, I used a diagnostic tool for better assessment. I have assembled (from personal experience as well as research) a set of dominant skills and competencies that are highlighted to be important at a workplace in this knowledge-based economy. This activity will help me work out which skills I am good at and which skills I need to develop further. I will determine if any of my soft and hard skills are transferable (which are those skills acquired in a range of settings and not just the workplace, and which are useful for a variety of jobs), specialist (that refers to the skills specific to a particular area of work, most commonly gained through specialist training or work experience), and self-management (which are skills related to the person’s personality and how they work in a range of settings). Below is the chart I have used to conduct this assessment: The skills are in the left-hand column, then I will decide if it is transferable (T), self-management (SM), or specialist (S). Then I will determine if I am competent (C) in that skill, whether I need to improve it (I), or I would want to develop it further (D). My skills Type of skill Level of skill T SM S C I D Communication skills Listening carefully and able to summarize what others are communicating Thinking up interesting ways to put across my message to groups Building a successful rapport with my audience when speaking to groups Adaptation skills Planning ahead but having contingency plans if things go wrong Thinking quickly to take action for sudden changes in circumstances Persisting regardless of unexpected difficulties My skills Type of skill Level of skill T SM S C I D Teamwork skills Working cooperatively in order to achieve a common goal Taking responsibility and being assertive, rather than passive/aggressive Accepting/learning from constructive criticism and feedback to others Leadership skills Taking the initiative, making decisions and executing plans Motivating & organizing others, showing positive attitude in frustration Accepting accountability for blunders or having made wrong decisions Planning/Organizing skills Setting achievable objectives and following steps to achieve them Effective time management and completing work to a deadline Using action planning skills and working effectively under pressure My skills Type of skill Level of skill T SM S C I D Problem-solving skills Ability to identify & analyze key factors involved in a problem Evaluating the nature of problem and then deciding on action strategy Using critical thinking & initiative to form alternative solutions to the problem Computing skills Using Word-processor, spreadsheets and databases Ability to use internet & email or design web-pages, programming skills Ability to do multitasking by using different computer soft wares Professional skills Initiating and directing myself to work and accepting responsibility Making choices built on personal judgment & learning new skills Paying strict attention to high standard and quality in all work performances Ability to develop drive and keenness to achieve the set goals Conclusions regarding Strengths and Weaknesses From this activity I have been able to identify a number of areas where I find myself competent enough, as well as my weaknesses which refer to those areas of skills where I need to improve and which I should include in my development plan in order to build a strategy to work on them. My significant strengths include my communication skills, somewhat my teamwork skills, and a few planning and professional skills which refer to setting objectives, following them, and assuming responsibility with direction to work. I also have the ability to stay motivated at all times which is one of my very powerful skills. However, my weaknesses, or rather the skill areas I need to work/ improve on include my inability to come up with prompt solutions or remedies in case of sudden unexpected changes in circumstances. Working under pressure is something I need to develop; besides, I need to learn time management and how to cater to multitasking in limited time. Moreover, I find myself a little slow at critical thinking in case of devising solutions to problems. So I suppose I need to work on crisis management. Under specialist skills particularly, I believe I need to learn about new upcoming computer soft-wares and how I could make use of them. Development Plan for 6 months In order to deal with working under pressure and managing time accordingly, I have devised a list of ways, by using which I believe I can cope with pressures. 1. Task prioritization: With this I will work out what is important and urgent; I will spend on these tasks more. 2. Finishing one task first and then moving on to the next: This will keep me motivated 3. Identification of sub-goals: This will help me break tasks down into manageable components and simplify task accomplishment 4. Stretch and relax: I have concluded that breathing exercises relieve my stress and help me deal better with pressure; it also keeps me focused by through muscle relaxation. 5. Reflection: Instead of worrying about future work, my development plan states that I should reflect on what I have achieved at the end of the day. I freak out under pressure when I act hard on myself; I need to avoid doing that. In order to improve my critical thinking skills, I read articles on the internet and devised my plan on the basis of my learning. In the process of my plan development, I concluded ways with which I could enhance my critical thinking. I need to: 1. Identify reasons and conclusions in a reasoned case 2. Identify, assess, and gauge assumptions 3. Clarify and figure out illustrations, ideas, and examples 4. Assess the acceptability and credibility of claims 5. Gauge different arguments, analyze them, and formulate explanations 6. Weigh decisions, draw inferences, and generate arguments I want to improve on one of the specialist skills; therefore I chose to make an improvement plan for learning computer softwares. I used File-transit (an online tool) to learn about the new available softwares that I could learn. I identified some softwares that could help me in future, made a list, and enrolled myself in few of the courses. Some courses are online. The course list includes: 1. Computer Profiler 2.5.1: with which I can learn hundreds of facts about my computer 2. Learn Chinese 2.32: with which I can learn the most spoken language of the world 3. My personal Teacher 1.0: which will teach me the basics of using all types of Windows 4. References Carnevale et al. (1990) Workplace basics: The essential skills employers want, Jossey-Bass, San Francisco Confederation of British Industry (CBI) (2001) In Search of Employability, London: CBI Dahlman, C. (n.d.) The Challenge of the Knowledge Economy in Latin America, School of Foreign Services 1 (1) Drucker, P (1993) Post Capitalist Society, London: Harper Collins Fisher, A. (2001) Critical Thinking, Press Syndicate of the University of Cambridge Hesketh, A. J. (2000) Recruiting an Elite? Employers’ Perception of graduate education and training, Journal of Education and Work, 31 (3), p.245-271 Houghton, J., Sheehan, P. (1998) A Primer on the Knowledge Economy, Center for Strategic Economic Studies How to Learn Computer Software (1998-2009) File-transit, Accessed from http://www.filetransit.com/files.php?name=How_To_Learn_Computer Industry in Education (1996) Towards Employability: Addressing the gap between young people’s qualities and employers’ recruitment needs, London Sheehan, P. and Tegart, G. (Eds.) 1998, Working for the Future: Technology and Employment in the Global Knowledge Economy, Victoria University Press, pp. 40-44 Soete, L. 1997, ‘Macroeconomic and Structural Policy in the Knowledge-based Economy,’ in Industrial Competitiveness in the Knowledge-based Economy: The New Role of Governments, OECD, Paris, p. 136 Read More