Organisational Processes and Management Methods for Knowledge Acquisition and Transfer - Essay Example

Issues in Business Table of Contents Introduction 3 Importance of Knowledge Based Economies 4 Role of Education in ‘Knowledge Based Economy’ 8 Organisational Processes and Management Methods for Knowledge Acquisition and Transfer 10 Conclusion 11 References 12 Introduction The conception of ‘knowledge based economy’ fundamentally encompasses the organisations and the individuals that attain, generate and utilise knowledge more successfully for their greater financial and communal progression and development. Education as a significant feature has been one of the general components in order to understand the conception of new knowledge based economy (Peters, 2001). Various financial organisations such as Organisation for Economic Co-operation and Development (OECD) and the World Bank among others have prioritised the importance of ‘knowledge based economy’ especially for the purpose of developing human resources in order to enhance and raise the proficiency and capability of the workers and for the creation of scientific and research based knowledge pool (Peters, 2001). In the paper, the conception and the importance of ‘knowledge based economy’ are taken into concern. Various aspects that include the advancement and importance of knowledge for ‘underdeveloped’ or ‘developed’ nations, varied capabilities of knowledge in case of different countries and the role of education in knowledge management will also be discussed. In addition, the various organisational and management procedures that may encourage knowledge attainment and transfer are also taken into consideration in the discussion of the paper. Importance of Knowledge Based Economies The rising significance of knowledge predominantly for all financial dealings is recognised as a worldwide observable fact for advancing and developing the organisations as well as the individuals. There lies numerous importance of knowledge to an organisation or an individual. One of the significant importances of increased knowledge is that the knowledge delivers great prospects for the countries to enlarge their financial as well as communal progression and advancement (Kefela, 2010). The enlargement generally takes place through presenting more successful ways in order to generate advanced services and commodities especially at a lower cost towards a large number of people (Kefela, 2010). It has been recognised that the knowledge has become a significant method for value creation. The knowledge has also become an essential feature especially for the countries, businesses and individuals of the 21st century. Moreover, both information and knowledge have the immense capabilities of helping out the nations to attain their developmental purposes (Kefela, 2010). Houghton and Sheehan noted that ‘knowledge economy’ generally arise from two features. The features include increase in the concentration of knowledge towards financial actions and the increase of globalisation in terms of financial affairs of an organisation or an individual (Kefela, 2010). The knowledge related to the societies often regarded as ‘knowledge society’ is usually featured with the capability to generate, share and utilise knowledge for the objective of enhancing and maintaining the quality standard of living of people along with making the people capable to grow or flourish (Kefela, 2010). Moreover, the ‘knowledge based economy’ analyses an organisation and provides advancement at the time, when the generation, allocation and utilisation of knowledge become crucial factors. The competitive benefits of the financial organisations in respect of ‘knowledge based economy’ lie in the fact that the financial organisations merge knowledge and skills together in order to appear with integrated results that comply with increasingly composite and distinguished requirements for the organisation (Kefela, 2010). In addition, various economists constantly searched diverse elements for laying the foundations of financial growth of an individual or an organisation. According to few of the economists, technology and knowledge among others are identified as the exterior influential elements upon production procedures and functions (Organisation For Economic Co-Operation And Development, 1996). The expenditures which are made particularly upon knowledge can ultimately increase the productive capability and can facilitate to alter the products and methods into a modernised one. Since, the knowledge expenditures are mainly featured by raising returns; they ultimately become the principal factor for financial advancement in future (Organisation For Economic Co-Operation And Development, 1996). The various categories of knowledge in the ‘knowledge based economy’ include ‘know-why’, ‘know-what’, ‘know-who’ and ‘know-how’. The ‘know-what’ knowledge is viewed as the knowledge of information and facts. The ‘know-why’ knowledge implies to the practical and technical knowledge of the theories and principles of nature (Organisation For Economic Co-Operation And Development, 1996). The ‘know-who’ knowledge is viewed as one of the major knowledge because it delivers certain societal information which eventually makes possible to work efficiently with the experts and to utilise their knowledge efficiently. The ‘know-who’ knowledge refers to the qualities or the skills in order to perform any act (Organisation For Economic Co-Operation And Development, 1996). It has been identified that the financial activities of an organisation is increasingly becoming reliable upon successful creation, allocation, acquisition and utilisation of knowledge. The increased role and importance of knowledge are connected with the augmented function of the technology of information and communication which encourages globalisation by extending financial interdependency (Pyka & Hanusch, 2006). The development of knowledge is equally important for both ‘underdeveloped’ and ‘developed’ nations. In lieu of both ‘underdeveloped’ and ‘developed’ nations, the development of knowledge is very much essential due to the fact that the conception of knowledge has become one of the crucial instruments especially for the financial, communal and cultural progression and advancement of an organisation or an individual (Ogunsola, 2008). The functions of knowledge have become the major indicators towards the level of advancement and the willingness of every nation whether ‘under developed’ or ‘developed’ for attaining future financial and cultural growth (Ogunsola, 2008). The knowledge development has been playing to be a significant function and become a mechanism of progress in every nation. It has been identified that the development particularly in the ‘knowledge based economy’ in the nations affected in different areas of communal activities. These areas include institutional and innovation procedures and human resources development to a certain extent (Ogunsola, 2008). Moreover, every ‘underdeveloped’ and ‘developed’ nation can be benefited from developing ‘knowledge based economy’ in order to become a significant applicant into the worldwide advancement procedure. In context of globalisation, especially the role and the importance of information and communication technology are immense and it has been playing a critical responsibility while executing its operational functions (Ogunsola, 2008). The proper knowledge regarding the conception of ‘information and communication technology’ in terms of globalisation can be one of the influential as well as beneficial factors for the development and advancement of both developed and underdeveloped nations (Ogunsola, 2008). However, after acquiring the ideas and conceptions along with the role and the importance of ‘knowledge based economy’, it can be stated that the advancement and the progression is not only significant for developed nations but also possesses a high degree of importance for the development of knowledge also in the under developed nations. There are many factors or aspects available for the nations in order to develop their knowledge capabilities. One of the noteworthy factors or aspects in order to develop the knowledge capability of the nations lies in the fact regarding the generation of quality based human resources in a ‘knowledge economy’ (Kefela, 2010). The aspect of human resources is regarded as the backbone of the knowledge economy. The knowledgeable workers are resourceful, self-sufficient and greatly experienced and possess the capacity in order to influence and build knowledge to perform useful activities within an organisation (Kefela, 2010). The other major factor or aspect that can develop the knowledge capabilities of the nations is the strong link that lies between financial expansion and human capital. The aspect of human capital and financial expansion might be accountable in the distinction of labour efficiency and overall levels of technology. The two aspects i.e. human capital and financial expansion are viewed as productive factors related to production, thus it can be stated that the human factor and financial expansion can be crucial methods or aspects for developing the knowledge capabilities by different nations (Kefela, 2010). Thus, it can be stated that collectively the aspect of quality human resources, human capital and financial expansion can develop the knowledge capabilities of the nations to a certain extent. Role of Education in ‘Knowledge Based Economy’ It is worth mentioning that a flexible as well as a well built education system usually strengthens and supports the knowledge economy. It is the education system that lays the foundation, advances and encourages certain innovative and critical thinking for solving various difficulties that are faced while executing business operations by an organisation (Kefela, 2010). Many economists viewed education system as an expenditure that can yield societal and individual returns through increased knowledge and proficiency for financial advancement and communal progress (Kefela, 2010). It has been recognised that those who possess the advanced degree of literacy are more likely to be the knowledgeable workers. It is obvious to the fact that the higher level of literacy along with proper knowledge based economy eventually make better development and progression of an organisation or an individual (Kefela, 2010). The aspect of education has played and is still playing a significant responsibility and that of a fundamental activity in a knowledge based society. It is defined as the function of generating, training the individual and an essential procedure of changing the life experience of the individuals to present several benefits towards the individual as well as for the society (Pargaru & et. al., 2009). Education can present people not only with the technological ‘know-how’ but can also train the capable innovators to progress in the field of knowledge along with enhancing financial development of an organisation (Pargaru & et. al., 2009). Thus, it can be stated that the development of a society, individual or an organisation is quite reliable upon the creation of knowledge along with education. Organisational Processes and Management Methods for Knowledge Acquisition and Transfer The various organisational processes and management methods that may promote or stifle knowledge transfer and acquisition include a few of the conceptions such as acquiring, gaining, ability to understand, building, transferring and aligning information to attain knowledge. Knowledge acquisition and transfer implies the capability to understand the information and execute with proper way in order to add value to the information (Blackman & Henderson, n.d.). Moreover, the other organisational processes and management methods include the identification of knowledge from certain existing knowledge transfer and acquisition experiences, an acceptance of the significance of learning procedures regarding knowledge transfer and acquisition and an awareness regarding the practical execution of knowledge transfer and acquisition (Blackman & Henderson, n.d.). In addition, the idea or the conception of knowledge transfer and acquisition methods, the idea of information supporting knowledge acquisition and transfer and reliability of the knowledge transfer and acquisition process towards decision-making of an organisation collectively can be regarded as a few of the organisational or management methods that can encourage or stifle knowledge transfer and acquisition (Blackman & Henderson, n.d.). Conclusion It has been recognised that knowledge and management of knowledge have been making continuous progression for a long duration of time. For many years, knowledge has been generated as well as distributed at different organisations in order to enhance the quality of life. After acquiring a broad idea regarding the conception of knowledge, it can be stated that the basic concept of knowledge varies from one culture to the other. The conception of knowledge and the aspect of innovation jointly play a noteworthy role in the progression as well as in the advancement of human history. Thus, as days are passing by rapidly, knowledge has considerably become the chief indicator of competitiveness and is considered as a major component towards the progression and advancement particularly in the world’s financial growth and activity. It has also been identified that certain aspects such as education, human capital and employment among others are the central and important methods or channels for the knowledge based economy. Thus, it can be stated that the immense role and importance of knowledge along with the various organisational as well as management methods regarding knowledge acquisition and transfer, lead towards the expansion and progression of an organisation or an individual to a certain extent. References Blackman, D. & Henderson, S., No Date. Does a Learning Organisation Facilitate Knowledge Acquisition and Transfer? Knowledge in Organisations. [Online] Available at: http://www.mngt.waikato.ac.nz/ejrot/Vol7_1/blackman.pdf [Accessed February 28, 2012]. Kefela, G. T., 2010. Knowledge-based Economy and Society Has Become a Vital Commodity to Countries. International NGO Journal, Vol. 5, No. 7, pp.160-166. Ogunsola, L. A., 2008. Developing Countries and the Need for Knowledge-Based Economy: The Problems and Challenges Ahead. Ozean Journal of Social Sciences, Vol. 1, No. 1, pp.1-11. Organisation For Economic Co-Operation And Development, 1996. The Knowledge-Based Economy. Knowledge and Economics. [Online] Available at: http://www.oecd.org/dataoecd/51/8/1913021.pdf [Accessed February 27, 2012]. Pargaru, I. & et. al., 2009. The Role of Education in the Knowledge-Based Society During the Economic Crisis. Annales Universitatis Apulensis Series Oeconomica, Vol. 11, No. 2, pp.646-651. Peters, M., 2001. National Education Policy Constructions of the ‘knowledge economy’: Towards a Critique. Journal of Educational Enquiry, Vol. 2, No. 1, pp.1-22. Pyka, A. & Hanusch, H., 2006. Applied Evolutionary Economics and the Knowledge-based Economy. Edward Elgar Publishing. Read More