Knowledge Management. An Overview


Essay, 2005

22 Pages, Grade: 2


Excerpt


Table of Contents

1.) Business environment
1.1) Fast changes in the environment
1.2) Necessary changes for companies
1.3) Effects on Human Resource

2.) Knowledge Management
2.1 Intra-/Inter-organisational competencies
2.2 Communities of Practice, Knowledge communities& knowledge networks
2.3 Tacit knowledge Assets/ Resources
2.3.1 Employee training and development
2.3.3 Career development
2.3.2 Employee selection
2.4 Transformation plan
2.6 Weaknesses of KM

3) Black and Ulrich’s statement
3.1 What capabilities are needed?
3.2 How is it possible to gain these capabilities?
3.3 Criticism of the statement

References

List of Figures

Figure 1: Fundamental Changes Managers are facing

Figure 2: Attributes Characterizing Industrial and Knowledge Era Organizations

Figure 3: Holistic KM model page

Figure 4: Strategic components of change page

1.) Business environment

1.1) Fast changes in the environment

Globalization and fast technological innovations are changing the world markets and competition at enormous speed. The current years have shown that both production as well as employment are no longer limited to a specific geographic location. A more global workforce occurred partly caused by the desire of multinational companies to also benefit from professionals and engineers outside the domestic markets. Competition increased, supported by deregulation processes which decreased the domestic protection for many companies.

With the fall of the former Soviet Union new political systems emerged. Almost all former communist states changed to capitalism opening new markets with millions of possible customers.

All together, this new environment has lead to a higher degree of competition, consumer choices, complexity and uncertainty combined with many business failures and shorter product life cycles (Dessler 2002; Yaw, De brah & Smith 2000).

1.2) Necessary changes for companies

Many companies had to reorganize and restructure themselves in order to compete or just to survive in the new global environment. Boosted competition from companies in the third-world forced a lot of well established players to reflect on their own competitive strategies (McClelland S. 1994).

Even solely domestic oriented companies have been affected by globalisation.

Companies that, in the past, have only competed with local competitors more and more realised the increased competitive pressure from efficient foreign firms. Category Killers like Office depot and Comp USA appeared, relying on economies of scale and a broad product range in order to reduce costs and prices. Not being able to compete with discount prices, many small competitors disappeared (Dessler 2002; Yaw, De brah & Smith 2000).

Rory Starks believes that in “the era of globalization, it is increasingly important to have clearly established corporate identities. Not only is globalization blurring the lines between countries, it is also blurring the lines between functional areas in a single organization” (Starks 2001, page 2).

Dr. Kenichi Ohmae, managing director of McKinsey in Japan, states it is important that “all employees in all countries and regions must unquestionably accept a system of values” (Starks 2001, page 3). Additionally, to keep up a consistent corporate identity, a crystal clear vision which is shared by every person is needed (Starks 2001).

In this new environment companies have to be fast, responsive and adaptive. They should develop a consciousness for quality, value and vision. This includes a strong focus towards Human capital (Dessler 2002). Saulius Adomaitis, a partner at Ernst&Young Baltics, is even the opinion that “In today s globally integrated, tightly regulated and increasingly competitive capital market, one critical success factor stands out above all others: people” (Adomaitis).

Organisations are depending especially on experienced managers who are able to recognise as well as to adapt to the changing environment, including the identification of potential and new markets (McClelland S. 1994). These managers have to be aware of the fact that the work of today’s employees shifts to a more service and knowledge orientated work. Employees should be empowered and team work be emphasised (Dessler 2002; Yaw, De brah & Smith 2000).

illustration not visible in this excerpt

Figure 1: Fundamental Changes Managers are facing Source: slightly changed from Dessler 2002, page 19

1.3) Effects on Human Resource

Human Resource Management (HRM) has gained a more significant role concerning the arrangement of the organisation’s internal resources and functions (McClelland S. 1994).

Mühlemeyer and Clarke (1997, page 4) indicated that in “global competitiveness, where shorter product life cycles, benchmarking and faster information transfer are the keys to success, human resources (whose skills are often company- specific) provide a mid- to long-term advantage for companies”. Especially political and economic transformations in the Eastern European regions have strengthened the attention of Western European companies towards the cheap Eastern labour market. In order to secure the employment in Western Europe, production has continuously to be increased combined with a superior quality of goods and services created. Extremely skilled staff becomes a main competitive factor showing the strategic role of Human Resources ( Mühlemeyer and Clarke 1997). From a Human Resource perspective this means ensuring that the right skills are easily transferable, knowledge and practices can be spread over the company, and talents are found and developed worldwide. (Roberts, Kossek, & Ozeki 1998) Companies find themselves more frequently in ‘talent wars’ and those companies which are able to find, develop, use and hold on to talents on a global scale will be rewarded. To do so a more proactive and strategic approach is needed. HR has to be seen as a completely integrated partner. (Brake 2003)

2.) Knowledge Management

At all times, knowledge has been strongly related to excellent performance of a company (Laszlo and Laszlo 2002).

In the 1980’s, numerous economists like Drucker and Romer forecasted the change from an industrial to a new and knowledge driven economic era. In 1996, Savage specified these two areas and their features which can be seen in figure 2 (Baker and Badamshina 2002).

Figure 2. Attributes Characterizing Industrial and Knowledge Era Organizations (adapted from Savage 1996 in Baker and Badamshina 2002, page 4)

illustration not visible in this excerpt

“Knowledge and the processes of its acquisition, generation, distribution and utilization has become the main source of value creation” (Laszlo and Laszlo 2002, page 401). Moreover the management of knowledge can even be a crucial aspect concerning the upholding of a gained competitive strength as well as the general survival of the organisation. In order to stay competitive an organisation must have the ability to organise, maintain, and develop as well as to use staff capabilities. As a result, knowledge management (KM), as a concept, gains more and more importance. KM centres on the satisfying of new knowledge needs by the organisation.

Armstrong describes KM as a developed appearance of human resource management (HRM) which uses it as supporting systems for stakeholder interaction and teamwork. In this context, HRM can be seen as the strategic employee management with the focus on gaining, organisation, learning as well as motivation of staff.

Garavan on the other side emphasises human resource development as part of HRM, with the continual task to create a learning organisation. In this approach, the organisation shall support its staff in the generation and utilisation of knowledge as well as the set up of suitable networks.

Soliman and Spooner describe the main role of HRM in KM as to observe and measure as well as to get involved in the creation, picturing, distribution and the application of knowledge by staff. For example, HRM shall determine a suitable KM program and secure that KM is in accordance with the business directions. This includes the establishment of a KM friendly environment (Armstrong (2000); Garavan et al. (2000); Soliman and Spooner (2000).

Ulrich, on the other hand, “suggests that the HRM can play its role by helping employees figure out what they should and can do to make a company’s vision of knowledge organisation a reality.”(Ulrich (1998) in Yahya and Goh 2002, page 464)

Good knowledge management begins with a strategy. The main reason for a strategy is the awareness that capabilities have to be continuously adjusted to the complex environment. Part of the KM strategy should include a system to gain and transmit in-house knowledge as well as best practices. There a various reasons why companies put effort towards KM which are for example: the enhanced performance, competitiveness, productivity, innovation as well as the improved use of best practices (Laszlo and Laszlo 2002; MaÊrtensson Maria 2000).

A holistic organizational-wide strategy as well as vision is required to give confidence and development in the organisations own knowledge capability.

illustration not visible in this excerpt

Figure 3 shows an example of an integrated as well as holistic KM model which is centred towards tangible elements.

The model consists of four main parts:

1. Vision and strategy
2. System infrastructure & technologies
3. Processes, Mechanisms,& Incentives to capture, absorb, share and create knowledge
4. Utilising/ leveraging knowledge

During the next chapters of this assignment a strong focus will be on point 1 and 3. (Baker and Badamshina 2002). Believing Armstrong that KM is a developed appearance of human resource management (HRM) (Armstrong 2000), Black and Ulrich’s (1999) role of the human resources (HR) professional in delivering global strategy will be discussed.

[...]

Excerpt out of 22 pages

Details

Title
Knowledge Management. An Overview
College
University of Brighton
Grade
2
Author
Year
2005
Pages
22
Catalog Number
V42860
ISBN (eBook)
9783638407892
ISBN (Book)
9783638656863
File size
581 KB
Language
English
Keywords
Knowledge, Management
Quote paper
Sebastian Martin (Author), 2005, Knowledge Management. An Overview, Munich, GRIN Verlag, https://www.grin.com/document/42860

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