Knowledge and the Organisation

coilcruelManagement

Nov 6, 2013 (3 years and 9 months ago)

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Knowledge and the Organisation

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Traditional value is based on net assets of the
company


New philosophy is that value of firm reflects
value of knowledge in organisation


Knowledge is information about the interaction
between firm and markets


Knowledge is understanding in minds of
employees or stored in organisation about all
organisational processes

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Knowledge encompasses attitudes and beliefs
of employees


Beliefs are influenced by employee interactions


Knowledge will influence actions of employees


Polanyi proposes forms:


Corporate knowledge


Employee knowledge


By sharing knowledge, performance can be
enhanced

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Quinn proposes knowledge covers:


“Know What”


“Know How”


“Know Why”

(Possible to add “Know When”)


Knowledge is critical for national economies


Drucker posits knowledge is an organisation’s
most valuable resource

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Learning


By using learning, individuals acquire new
knowledge


De Guess believes organisational learning is
only real source of competitive advantage


Narver proposes: learning permits
identification of new ways of offering superior
products/services


Woodruff proposes: learning is route to
delivering superior customer value

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Organisational learning has roots in
psychology, management science, strategic
management, production management,
sociology and anthropology


Learning is not sufficient, must be translated
into new knowledge that can upgrade core
competence


Key competence is ability to respond more
effectively to changing market circumstances


“Double Loop” learning permits greater
flexibility and adaptive response when
compared to “Single Loop” learning

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PROBLEM

DRAW UPON

PAST

EXPERIENCE

DEVELOP AND
IMPLEMENT
SOLUTION

PROBLEM

BRING IN

NEW

KNOWLEDGE

DRAW ON

PAST

EXPERIENCE

IMPLEMENT
NEW MORE
EFFECTIVE
SOLUTION

(a) Single Loop Learning

(b) Double Loop Learning

FIGURE 1:1 ALTERNATIVE LEARNING STYLES

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Managing


Information Technology permits more effective
acquisition, storage and distribution of knowledge


Nonaka divides knowledge into:


Tacit (in minds of employees)


Explicit (documented and stored)


Zack proposes that explicit knowledge consists of:


Declarative knowledge which is shared understanding


Procedural knowledge of processes


General knowledge


Specific knowledge

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New knowledge must be cleaned and
labelled before storage


Today storage is usually in a computer data
base


E
-
commerce systems can automate data
acquisition and storage


Stored data must be easily accessible to
users in firm

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Integrative knowledge processing is storage
of data (e.g. sales records) for later use by
others


Interactive knowledge processing is dynamic
often involving real time exchange of tacit
knowledge (e.g. e
-
mail forums)


Successful knowledge management requires
creation of knowledge repositories


Formalised repositories often unsuitable for
storage of tacit knowledge sources

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Critical antecedent is willingness of
employers to share knowledge


More successful firms place greater
emphasis on importance and power of
knowledge


Knowledge projects that can demonstrate
added value are easiest way of validating
effectiveness of philosophy


Knowledge project more likely to succeed if
supported by appropriate infrastructure

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Employees must be trained in how to use
knowledge


Database systems must permit easy access
to knowledge


Culture of organisation must be that of
valuing knowledge


Knowledge must be in language form
understandable to employees

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Must continually re
-
motivate knowledge users


Typically there is a need for multiple channels
to distribute knowledge


Senior management must be committed to
exploitation of knowledge by organisation

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Systems


Seven Elements:


Knowledge sources to acquire new knowledge


Product
-
process knowledge orientation


Effective documentation


Effective dissemination


Focus on learning


Focus on value chain process


Focus on employee development

(individual and team
-
based)

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Entrepreneurial

Knowledge

Management

System

External
Knowledge
Sources

Focus on Market
Aspects of Value
Chain

Group
-
based
Skills
Development

Formally
Documented
Knowledge

Double
-
loop
Learning

Formulised
Dissemination

Focus on
Product

FIGURE 1:2 ENTREPRENEURIAL KNOWLEDGE MANAGEMENT


SYSTEM

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Platforms and Networks


Permit exchange of knowledge between
organisations


E
-
commerce platforms allow for instant
knowledge exchange


Networks formed by supply chain members
seeking mutual optimisation of performance

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HUB

FIRM

Customer

Customer

Intermediary

Supplier

Supplier

Supplier

Intermediary

Customer

FIGURE 1:3 A HUB KNOWLEDGE NETWORK STRUCTURE

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OEM
KNOWLEDGE
CENTRE

Primary Supplier

Primary Supplier

Primary Supplier

Secondary
Supplier

Secondary
Supplier

Secondary
Supplier

Secondary
Supplier

Secondary
Supplier

Secondary
Supplier

FIGURE 1:4 A CASCADE KNOWLEDGE NETWORK

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PHASE 1

IDEA
GENERATION

PHASE 2

IDEA
VALIDATION

PHASE 3

NETWORK
PLANNING

PHASE 4

NETWORK
LAUNCH

Customer

Government
Support Agency

Sector
Champion

Firm

Trade
Association

Focus
Group
Meetings

More
Research

Learning
Plan
Defined

Learning
Plan and
Network
Formation
Initiated

FIGURE 1:5 PROCESS MODEL FOR FORMATION OF A NEW MULTI
-
FIRM




KNOWLEDGE NETWORK