Knowledge Management Models - Term Paper Example

KNOWLEDGE MANAGEMENT Knowledge Management, models, technology and its implementation in a typical organization TABLE OF CONTENTS Introduction ………………………………………………………………….. 3 Knowledge Management …………………………………………………….. 4 Knowledge Management Models ……………………………………………. 5 Tacit and Explicit Knowledge ……………………………………….. 5 People, Process and Technology for Knowledge Management ……… 7 Skills, Experience and Knowledge Management ……………………. 7 Retaining older employees as a tool for managing knowledge ……… 8 Suitability of Technology for Knowledge Management …………………….. 9 Theoretical perspectives ……………………………………………… 9 Empirical Evidences ………………………………………………….. 10 Practicing Knowledge Management in typical organizations ……………….. 11 Implementing Knowledge Creation …………………………………. 12 Implementing Knowledge share ……………………………………... 12 Implementing Knowledge use ……………………………………….. 13 Evaluative Conclusion ……………………………………………………….. 14 References ……………………………………………………………………. 15 Introduction Knowledge Management is undoubtedly one of the most critical aspects of modern organizations and management information system. A better understanding of the perspectives of Knowledge Management is highly important as it has recently been considered to be a requirement for better performance of employees as well as management and thus to foster competitive advantages and ultimate business success. Any resources that are added to the business organization or any innovation that are adopted by the organization can yield relative outcome only if people and their knowldge are effectively managed. Knowledge management is basically a strategic management tool that can help organizations manage the available human capital in the business (Noe and Hollenbeck, 2004, p. 1-3). Employees are most valuable assets in the organization and therefore recruiting and keeping skilled, experienced and knowledgeable employees have become a top priority of organizations. Among a number of challenges that today’s organizations face, the most critical is related to enhancing the competency, efficiency, skills and knowledge of the people in the business. Some organizations may go for implementing advanced technology in order to help employees develop their knowledge, while some other organizations go for motivation, reward and recognition programs to enhance knowledge share and use among employees so as to increase the productivity of the workers. This research paper presents a critical review of knowledge management process and focuses on basic relationships between tacit and explicit knowledge assets. This research paper highlights various elements included in the knowledge management process and it examines various strategic perspectives as well as suitable technologies for enhancing knowledge management in the business. Knowledge Management Knowledge Management is a process by which business performance can be enhanced by designing and implementing various tools, technology, processes, systems, structure and cultures so that knowledge can be created, shared and used for the overall purposes of the business (Noe, 2002, p. 168). Knowledge Management basically comprises of creation of knowledge from employees, sharing of the same between employees in the same organization and use of the created or shared knowledge to achieve business goals. When knowledge is better managed in an organization, it can get products to the target market quicker, serve its customers in a better way, develop innovative and more useful ideas of product and services and attract new employees and retain experienced employees in the organization. According to Boxall and Macky (2009), knowledge management helps a business achieve high performing organization (p. 10). According to Awad and Ghaziri (2007), knowledge management is a newly emerging interdisciplinary management and business model that focuses on knowledge among the employees within an organization. Knowledge management has become important part of organizational learning as well as it is rooted in economics, science and human psychology (p. 26). Knowledge Management is a tool that bridges the gap between organizational change, innovation, learning and processes. As Foster (2005) argued, knowledge management is a generic term that encompasses the processes by which employees’ experiences, skills, expertise, knowledge and abilities are gathered, shared and utilized and these are eventually converted to collective organizational learning process (p. 397). Human intellectual capital, creativity, innovation and information are the basic sources of competitive advantage and these can be synthesized and utilized for the business success only if knowledge management can be effectively implemented and practiced in the business. Knowledge Management Models Tacit and Explicit Knowledge Knowledge management can be viewed from a variety of aspects and ways. One typology is to classify it by differentiating tacit and explicit knowledge. Pure data always have little effect for a manager where as structured data are more useful and effective measures to analyze and find solutions for the problem (Lehaney, 2004, p. 16). Based on this classification, knowledge management is a process of obtaining and making use of expertise in the business throughout papers, documents and databases as described as explicit knowledge or sharing and making use of knowledge throughout the minds of people described as tacit knowledge. Tacit knowledge refers to the individual knowledge based on the experiences, perceptions and values that he holds whereas explicit knowledge refers to that knowledge which is collected, stored and managed in manuals, documents, papers and formulas described in formal languages (Noe, 2002, p. 167). Knowledge management is not only related with effective management of data and information available in an organization but also related with collection of the data and converting it in to information and then making it useful for the employees in the organization. Nonaka and Takeuchi (2007) believed that Japanese companies have focused on knowledge management and thus they pursued a policy of continuous innovation. According to them organizational knowledge is the ability of an organization to create new knowledge, disseminate it throughout the company, and embody the same in innovative products and services. According to them, explicit knowledge like rules of formulas and tacit knowledge like knowledge of more experienced people are the two basic categories comprised in the knowledge management framework. The Japanese companies argued that their success is driven by their ability to turn tacit knowledge in to explicit knowledge that is shared in the organization (ebsco host). The difference between tacit and explicit knowledge is a critical one. Tacit knowledge is intuitive and unarticulated and it cannot be verbalized as well. Tacit knowledge is transformed in to habit and it is made traditional. It is context specific and it has personal quality too. But, explicit knowledge is transmittable in formal and it may include facts and symbols (Inkpen and Ramaswamy, 2006, p. 110). Explicit knowledge can be articulated. For example, documents describing how to connect with hardware parts of a computer or a document that describes how to use email system in the organization. According to Nonaka and Takeuchi (2005), the interactive process of knowledge between tacit and explicit types of knowledge conversion lies in the underlying principles of knowledge creation. They found that there are possible modes of knowledge conversion. They are: 1) from tacit to tacit that is called socialization, 2) from tacit to explicit which is called externalization, 3) from explicit to tacit which is internalization and 4) from explicit to explicit which is known as combination (Magalhaes, 2004, p. 79). Nonaka and Takeuchi (1995) illustrated Home Bakery’s development story to present the above four modes of knowledge conversion. In this illustration, they have outlined that tacit knowledge is mobilized in the pursuit of creative innovation. They also illustrated enabling conditions and five phases of knowledge creation, sharing of tacit knowledge, creating concepts, justification and building archetypes and cross-leveling of knowledge (p. 96- 108). People, Process and Technology for Knowledge Management Knowledge management also has been classified according to two different elements that are technology and people. Some time, the emphasis in knowledge management is on technology or on people. When technology is concerned, managers and organizational practitioners have a technology background and they put technology as the central and integral part of the knowledge management process. In such system, artificial intelligence and reengineering are of greater significance. When people are emphasized in knowledge management, managers are more likely to have a better background in the business processes, organizational behavior and management activities and therefore they will be actively involving in assessing, improving and managing the skills and behavior of individuals (Lehaney, 2004, p. 17). In this classification, abilities and skills of managers are involved. Skills, Experience and Knowledge Management Data and information are to be distinguished while discussing knowledge and its management. Knowledge is the intersection of information, experience of a person, wisdom and theory. Wisdom refers to the applied knowledge and it is naturally of tacit nature (Small and Sage, 2006, p. 154). According to this description of Small and Sage (2006), it can be seen that experience, skills and wisdom play vital role in the creation and development of knowledge in the organization. The diagram below shows how wisdom, experience and information link each other in creating and sharing knowledge among the employees of an organization. More experienced people are highly knowledgeable and this is how experience is related with knowledge creation and sharing. Older employees are undoubtedly more experienced and therefore retaining them in the organization has been considered to be an effective tool for creating and developing knowledge environment in the business. Retaining older employees as a tool for managing knowledge From the above illustration, it is clear that experience, skills and wisdom are more likely to play vital roles in knowledge management. There has been a growing concern that younger employees who come as fresher to the field of employment may not possess the same skills and experiences that older workers possess. Older employees have worked long and experienced much in their life and thus they developed their skills. Even though keeping and retaining them may increases the expenses like health and insurance, they still are more valuable intellectual assets because their skills, knowledge and experience can bring better outcome if is well managed in a way that there is flow of information in the organization and free sharing of knowledge as well. According to Shultz and Adams (2007), older employees are rated lower on the basis of learning things quickly and flexibility and energy for creative thinking and working, but still, they are higher rated than youngsters on academic skill levels, attendance, ability to get adjusted with co-workers, work ethics and knowledge they have (p. 165). How retaining older employees can work out as a knowledge management tool and thus to enhance competitive advantages have been emphasized by Hosie and Sevastos (2006). According to them, older workers are most likely to be used as competitive strategy among companies (p. 305). A study conducted by McIntosh (2010) showed that 97% of the workers among the surveyed responded that older workforce are more reliable, accountable and thorough in doing works assigned to them than others in the organization (p. 5) Suitability of Technology for Knowledge Management Theoretical perspectives As discussed earlier, technology is can play significant role in Knowledge Management (Lehaney, 2004, p. 17). The same view has been put forth by Noe (2002) that knowledge management is a process that enhances high performance through information, process, people and technology (p. 168). Handzic (2004) argued that the growing attention and interest in knowledge management has actually been fuelled by a number of development trends like globalization and digitalization. The communication and information technology and recent advances paved the way to effective knowledge management tools (p. 4). As and when organizations move largely to the technology economy of knowledge based and business contexts have been changed due to advanced information technology, organization needed to adapt to the changes and to accustom with technological advances. Organizations needed knowledgeable as well as knowledge creating and sharing workers to cope with changes in order to apply their knowledge in the knowledge economy. Technology assists organizations to increase explicit knowledge as well as to transform explicit knowledge to implicit and explicit knowledge to explicit knowledge itself. The information stored in the computer data base can be made available to the employees so that they can learn, improve and develop their knowledge. It is easier as well as convenient transformation. According to Nonaka and Takeuchi (1995), this process is called internalization. With helps of computers, internet and intranet and emails within the organizations, there can be knowledge transformation from explicit to explicit and it has been described as combination. This is the way technology assists organization to create, share and utilize the knowledge for the overall business purposes. Empirical Evidences It is very obvious that, nowadays, most firms around the world do store information in their computers and intranet. Organizations increasingly use their technology to assist managing of the knowledge. IBM has been an illuminating example for organizational learning and knowledge management from its early years. It has transformed individual learning in to organizational learning in order to bring high performance work environment. In the early 1960s, When IBM has been directed by Vincent Learson, he assisted in conducting serious studies and finally the company planned to start a 360 line computer strategy by which it enabled its management and employees to use 360 line computers for all the information and knowledge use (Lipshitz and Popper, 2006, p. 90). The 360 line computer strategy implemented at IBM not only shows how it practiced knowledge management and organizational learning environment, but rather, it was an outstanding step to convert explicit knowledge in to tacit knowledge too. Now, most companies worldwide provide laptops and internet facilities so that employees are able to use them for learning as well as to keep in touch with organizational progress and also for knowledge sharing. Official blogging also has recently been considered to be a way that employees can share their knowledge. Noe and Hollenbeck (2004) provides example of Buckman Laboratories that developed an organizational culture, technology and work process that encourage knowledge sharing and employee learning environments. The company provided laptops and internet facilities in order to enable employees to share their knowledge at anytime from anywhere and also company has offered rewards and recognition for innovation and creative knowledge sharing (p. 39). Practicing Knowledge Management in typical organizations Organizations need to practice knowledge management in order to be competitive and also to achieve better outcome because employees with better knowledge are more productive. Knowledge management is a tool for high performance working, a technique for increasing productivity and a measure to maintain competitive advantage. More specifically, organizations that seek better results need to implement knowledge management practice in the organization. This part of the research work will present the implementation of knowledge management in a typical organization. Knowledge Management comprises of three basic elements that are 1) knowledge creation, 2) Knowledge share and 3) knowledge use. A company that takes an action plan for knowledge management needs to consider all of these basic components. Implementing Knowledge Creation Explicit knowledge can be created through information being made available for the learning and development of employees and also from technologies being provided to the employees like laptops and internet facilities. Explicit knowledge can be created through selective hiring and recruiting of talented and knowledgeable employees and retaining older workforce. Pfeffer (2001) emphasized that major upfront investments like training, more selective recruiting and higher wages can bring high performance through better knowledge creation (p. 3). Knowledge creation can be empowered through selective hiring and extensive training so that knowledge can be shared in the organization (Yalabik and Chen, 2008, p. 1). Selective hiring and training will be relatively expensive than retaining older employees in the business. Retaining older employees, even though there can be increased health and insurance expenses; they are valuable assets because they possess much of implicit knowledge base that a company can use. Implementing Knowledge share Once knowledge has been stored in the data base, computers or intranet, there must be a free flow of information among the employees so that effective knowledge share can be ensured. It is the case with explicit knowledge. In the case of implicit knowledge, when talented, experienced, knowledgeable, and skilled employees are recruited, the organization must ensure that there is free flow of information among the employees. In order to ensure knowledge share, active team playing, reward and recognition, alumni relation, collaboration, trust and so on can be applied as these are the common tools that help share knowledge in an organization. The employees must be awarded and appreciated for their knowledge as well as they must be able to get mentoring and coaching opportunities so that knowledge will be transferred from them to the employees whom they are mentoring and coaching. According to Rothwell and Sterns (2008), organizations are to encourage team learning and promote interaction among younger and older employees so that each of them will be able to learn from their counterparts and thus to foster knowledge share and knowledge transfer from more experienced to less experienced (p. 125). Organizations also need to assess the ways and methods that they engage in knowledge sharing practice and they must concentrate on knowledge sharing techniques like reward, mentoring, teamwork and collaboration (Austin and Claassen, 2008, P. 376). Implementing Knowledge use The knowledge, which is created from selective hiring and training and shared among employees through team works, mentoring etc, is one of the most powerful resources that an organization possesses. If these resources are effectively used, the business can as a result bring better outcomes. Knowledge can be about customers’ behavior, market trends, demand variations and anything related with company, product or its stakeholders. This knowledge asset can be used to design and develop product or services according to customers’ specific need and market trends, conduct research and development and meet the requirements of stakeholders etc. the ultimate outcome is increased productivity as well as higher profits. Knowledge also can be used in the training and employee development programs in order to make employees more aware of the changing business contexts and workplace cultures. This helps the business create an organizational learning environment in the business. Evaluative Conclusion Knowledge management is the process of enhancing performance through process, people, information and technology (Noe, 2002, p. 168). Knowledge is an intangible asset that most organizations are well rich with, but many of them fail to manage it properly and thence to bring its better results. Managing knowledge involves creation of knowledge, sharing of it among the employees and use of it for achieving the organizational goals. If one of these three components is missing, the efforts will bring little or nothing results. For example, knowledge is created and shared among employees in an organization, but not used; the results of the efforts put in knowledge management are likely to be zero. Knowledge is created and used, but not shared effectively and properly among the employees in a typical organization, the results will be relatively poor because only few people in the organization might have involved in it. In the process of knowledge management, technology plays vital role. Modern technology and its tools can be used for knowledge management in a way that these technologies can assist knowledge creation, sharing and use. Computers and internet are widely used to assist development of explicit knowledge. Likewise, many strategic management tools can be used for developing implicit knowledge. These tools are retaining older employees and selective hiring for knowledge creation and teamwork and alumni relation can be used for knowledge share. This research work concludes that knowledge management comprises of basic three components of creation, share and use. An organization looking for knowledge management must focus on all these components with all the possible strategic tools like retaining older workers, mentoring, teamwork, selective hiring etc. References Austin M.J and Claassen J (2008), Knowledge Management: Implications for Human Service Organizations, The Haworth Press, Retrieved from http://web.ebscohost.com.ezproxy.apollolibrary.com Awad E.M and Ghaziri H.M (2007), Knowledge Management, Pearson Education India Boxall P and Macky K (2009), Research and theory on high-performance work systems: progressing the high-involvement stream, Human Resource Management Journal, Vol 19, no 1,, retrieved 28/02/2010 from http://web.ebscohost.com.ezproxy.apollolibrary.com Forster N (2005), Maximum performance: a practical guide to leading and managing people at work, Illustrated Edition, Edward Elgar Publishing Handzic M (2004), Knowledge management: through the technology glass, World Scientific Hosie P and Sevastos P (2006), Happy-performing managers: the impact of affective wellbeing and intrinsic job satisfaction in the workplace, Illustrated edition, Edward Elgar Publishing Inkpen A.C and Ramaswamy K (2006), Global strategy: creating and sustaining advantage across borders, illustrated Edition, Oxford University Press US Lipshitz R, Popper M and Friedman V (2006), Demystifying Organizational Learning, Published by SAGE Magalhaes R (2004), Organizational knowledge and technology: an action-oriented perspective on organization and information systems, Illustrated Edition, Edward Elgar Publishing McIntosh B (2010), An employer’s guide to older workers: How to win them back and convince them to stay, University of Vermont, Burlington Noe R.A and Hollenbeck J.R (2004), Fundamentals of Human Resource management, McGraw Hill Irwin Noe R.A (2002), Employee training and Development, McGraw Hill Irwin Nonaka I and Takeuchi H (2007), knowledge Creating Company, Business Library, Management Library, Retrieved from http://ehis.ebscohost.com/ehost Nonaka I and Takeuchi H (1995), The knowledge-creating company: how Japanese companies create the dynamics of innovation, illustrated Edition, Oxford University Press US Pfeffer J (2001), When it comes to best practices, why do smart organizations occasionally do dump things, Stupak R.J and Leitner P.M, Hand book of Public Quality Management, Illustrated Edition, CRC Press Rothwell W.J and Sterns H (2008), Working longer: new strategies for managing, training, and retaining older employees, Illustrated Edition, AMACOM Div American Mgmt Assn Shultz K.S and Adams G.A (2007), Aging and work in the 21st century, Illustrated Edition, Routledge Small C.T and Sage A.P (2006), Knowledge management and knowledge sharing: A review, Information Knowledge Systems Management 5th edition, Information Technology Center, The MITRE Corporation, McLean, VA, USA, retrieved from http://web.ebscohost.com.ezproxy.apollolibrary.com Yalabik Z.Y and Chen S (2008), High-Performance Work System and Organizational Turnover in East and Southeast Asian Countries, Blackwell Publishing, Inc, retrieved from http://web.ebscohost.com.ezproxy.apollolibrary.com Read More