Knowledge and Its Management - Case Study Example

Knowledge Management Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Lecturer Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 30th June, 2012. Executive Summary Workers especially Technical experts hold crucial knowledge about a firms operations that can be used improve the operations of a firm. The use of technical knowledge is sometimes a matter of life and death especially in Hazardous working environment. Therefore, it more important to share information in hazardous work environment as it may save a person’s life or millions in monetary losses. This report presents background information about knowledge management systems, in the light of Esso Longford Company. It also provides the knowledge that is present in the company and how it’s applied in the daily activities of the company. In addition, the present actors of knowledge in the company are highlighted and a conclusion is made based on the recommendations. Introduction The Esso Longford disaster was a catastrophic event in Victoria’s history that could have been prevented if the plant had employed an appropriate Knowledge management system. The explosion disrupted Gas supply in the entire state of Victoria and led to the injury of many people and two fatalities (Haider 2003). The plant was used to process gas brought in from the offshore wells in the Bass Strait and also stabilize crude oil. The plant involved a number of chemical processes and reactions used to process the gas to the final product used in Victorian homes. Most of the processes in the company used intense heat mixed with the flammable hydrocarbon products under processing there was always a high possibility of a fire or an explosion in the gas plant. A knowledge management system is systematic way for organizations to come up with knowledge “share and apply it to achieve a set objective (Tiwana 1999). Knowledge management would have enabled the plant have a large enough knowledge base to prevent the occurrence of the accident since it could have applied knowledge of experts on Hydrocarbons who had worked at the plant since it started operating (Leiter et al 2007). This report investigates how the Longford gas processing plant could have applied a knowledge management system to make the work environment less risky and make the sure that operational knowledge in the organization is shared and stored for the future use of the company. Methodology The study will review a case study of the Longford gas exploration and refer to published work to find out the kind of knowledge in the organizations context, how it was used?, and by who? It will also explore a possible KM strategy that the Longford plant could have used to ensure it did not experience safety problems. Discussions What is the knowledge in the case study? Knowledge management (KM) entails initiating knowledge to the optimum person and at the right time. Knowledge in here is about the organization environmental management strategies that might impact negatively on the running of the organization (Haider 2003). It involves corporate strategy understanding where and in what kind the knowledge in the organization exists, creating processes that with enable the organization to function and ensure that all the knowledge is understood by all members of the organization. Sometimes, KM involves creating new knowledge but in most cases it involves knowledge distribution, refinement, and storage. In some cases, knowledge is acquired from the past experiences in the organization so that they put in place measures to curb certain situations from happening (Oppong, Yen & Merhout, 2005). Esso Longford Gas Company deals in very sensitive products not only to people working in the organization but also to the environment at large. The oil products require knowledge of managing company at every department (Haider 2003). The managed knowledge helps the company to sustain the environment and not to expose the people (both in the company and society) to dangerous situations. There are distinct forms of knowledge in Esso Longford Company namely explicit knowledge, tacit knowledge, and embedded knowledge. Each of the above mentioned pieces of knowledge help the company to strategically solve the existing issues as well as preventing future occurrances of some situations in the company. Explicit knowledge The knowledge is derived from the tools and other resources that the workers may need in the company. The headgears, aprons, hand grooves and other working facilities makes the employees recognize the sensitive nature of the work they are involved in (Leiter, Day, Harvie, & Shaughnessy 2007). Explicit knowledge is realised in the organization when the management has to buy other working facilities. Tacit knowledge Tacit knowledge also known as embodied knowledge is the kind of knowledge that is derived from the commitments, actions and involvements of the organization and is the most valuable source of information. It is mostly context dependent and personal in nature. It is based on the past experience and is enhanced by IT programmes in the company (Tiwana 1999). Esso Longford Company has implemented tacit knowledge by recognizing the competitive market of its products and through commitment of its workers. Finally, it realizes this kind of knowledge through day-to-day actions and activities of the company. Embedded knowledge This kind of knowledge is the knowledge derived from things like organizational culture, products, processes, structures and routines (Hingston 2011). It exists if these elements are put down in a manual for every employee and stake holder to refer. For example, if the rules and the regulation of a company are put down in a manual. This knowledge is stored either formally or informally. Formally, it is stored through programmes like the above mentioned. Informally, it is stored through applying the other two types of knowledge (Oppong, Yen & Merhout, 2005). Esso Longford Company derives this type of knowledge formally by putting the rules and regulation in a manual and informally by establishing a good working culture. Knowledge usage in the organization Knowledge is managed for more than one use in an organization. First, the knowledge in Esso Longford Company is used to prevent accidents that have previously happened in the organization and have affected the company negatively (Davenport & Prusak, 1998). For example, the mistakes surrounding the 1998 accident are well stored and they are constantly checked in relation to the recommendations (Hopkins 2000). Furthermore, the recommendations are implemented according to the proposal as well as being reviewed for the better. Second, the knowledge is used to prevent and protect the workers and the environment so as to make sure that the employees work in a safe and secure environment. For example, the proposals and recommendation made by the occupational health services in accordance to safety of the workers are stored and they are followed to the letter. Thirdly, the knowledge is used to initiate innovations in areas where changes are required (Hingston 2011). Oil products such as liquefied petroleum gas are very sensitive to temperatures surrounding them and require regular checking in the process of manufacture. Therefore, knowledge in handling these products is required by all workers in the organization (Davenport & Prusak, 1998). Fourth, the roles and duties of every worker in Esso Longford Company are well posted in the data-base such that the workers would check what they are required to do, how, and at what time. Finally, the management of every company has to have this knowledge about its products, workers and other external environmental factors such as competitors. Such knowledge is applied by Esso Longford Company to run the company so as to have a competitive edge over other oil companies (Hopkins 2000). In general, knowledge in an organization is used to improve the productivity of the workers by reducing the days the workers are not in work due to some occupational related illness. Again, the knowledge is used by organizations to have competitive advantages over its competitors. Creators of Knowledge An organization cannot create knowledge on its own but relies on its employees to come up the knowledge (Koulopoluos and Frappaolo 2000). At the plant the creators of knowledge are the engineers and the time of the accident most had been relocated to Melbourne from the Longford plant. If the company had taken the trouble to store the knowledge of the engineers then the disaster would have been avoided. Although most of the knowledge created by the engineers has been explicitly put down in safety manuals it still person to apply it to it in the system. Users of knowledge The main users of knowledge at the long ford plant were the panel workers like Jim Ward whom Esso had blamed for the accident before he was cleared by the Royal commission for conduct that contributed to the accident. Owners of Knowledge The owner of the knowledge created at the Longford plant is also the owner of the plant and the employer of the workers that produce the knowledge. In our case Esso are the owners of the knowledge at the plant. Thus, Esso had knowledge in their possession that would have enabled them make the plant working environment less hazardous. Custodians of the Knowledge At the Longford plant there appears to be no central repository of knowledge that could be used for retrieval when it is needed. In contrast, Esso has left all the knowledge about the plants technical operations remain in minds of engineers and other workers and neither is their system in place for sharing knowledge. Conclusion Knowledge is important in maintaining a safe working environment. With an effective management regime that focuses on sharing of knowledge firms that deal with hazardous chemicals can avoid incidents such as the Longford plant explosion. A corporation like Esso with many years of experience in dealing with Hydrocarbons should have put in place a system that enables it to identify the knowledge necessary to run operations efficiently and safely in its Gas plants (Leiter, Day, Harvie, & Shaughnessy 2007). It is apparent that there is more than enough knowledge in Esso as an organization. As the owner of the knowledge Esso had the right to use their workers expertise to improve the system to prevent accidents. Even though information about a similar incident in US was available Esso had ignored it and had not applied it to make its operations safer. A knowledge sharing internal site like the one used in Rio Tinto’s mining operations would have been the best implementation of knowledge sharing the Longford plant to collect and share knowledge with the workers. Using the system the panel workers would have known how to thaw the ice at GP905 without causing the heat shock that caused the fire. By implementing an organizational wide KM strategy Esso can make its operations in the production and processing of hydrocarbons safer and more efficient as it owns enough through its engineers to ensure safety in its operations. Key findings and observations from the case study 1) Esso Longford Company has a working knowledge management system 2) The workers were negligent of reporting of the company’s happening between shifts 3) The knowledge management system has not implemented knowledge from other companies 4) The company is updated of other companies happening and made changes were they think improvement and innovation needs to be done 5) Though much has been accomplished, more effects and change of strategies need to be implemented for an effective and efficient knowledge management system. References Davenport, T & Prusak, L 1998 .Working knowledge: how organizations manage what they know. Boston: Harvard Business School Press Haider, S. 2003, Organizational Knowledge Gaps: Concept and Implications, [Online] at: http://www.druid.dk/conferences/summer2003/papers/HAIDER.pdf Retrieved on 26th June 2012 Hingston, P 2011.Implementing a Knowledge Sharing Website: Journal of Knowledge Management Practice. [Online] at: file:///E:/KMS/Rio%20Tinto.htm Retrieved on 26th June 2012 Hopkins, A. 2000 .Lessons from Longford: The Esso Gas Plant Explosion. Sydney: CCH Australia Koulopoluos, T.M. & Frappaolo, C. 2000, Smart Things to Know About Knowledge Management, Capstone, Padstow, Cornwall Leiter, M. & Day, A. & Harvie, P. & Shaughnessy, K. 2007, Personal and organizational knowledge transfer: Implications for work life engagement, Human Relations. Oppong, S., Yen, D & Merhout, J 2005 “A new strategy for harnessing knowledge management in e-commerce”: Technology in Society, Vol. 27, pp. 413–435 Tiwana, A., 1999. Knowledge Management Toolkit, The: Practical Techniques for Building a Knowledge Management System, Pearson Education. Read More