HRD CHAPTER 3

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Nov 7, 2013 (3 years and 10 months ago)

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HRD

CHAPTER 3




Learning objective










Innova
tive HRD practices in training and development



Performance appraisal & OD,

Performance improvement plan




Career Management :
-

Career development programs, Career Planning &
Succession Planning,




Knowledge Management :
-

Definition, Types of knowledge,
Goals and
objectives of Knowledge Management, Essentials of knowledge
management.

























Reference :


Innovative HRD practices
Book for reference : HRD by Uday
Kumar Haldar, Oxford
publications




Introduction



Training

& Development


Training is a
learning experience in that it seeks a relatively permanent change in an
individual that will improve his/ her ability to perform on the job. It involves changing of



Skills



Attitude



Knowledge


No one is a perfect fit at the time of hiring and

some training & development must take
place.Planned development programs will return values to the organization in terms of :



increased productivity



reduced costs



Morale


More future oriented and more concerned with education than is training. Management
Development activities attempt to instill sound reasoning processes to enhance one’s
ability to understand and interpret knowledge.

It focuses on the personal growth & on









Analytical



Conceptual



Human

T & D
Increases job skills
-
specific skills
Short term
perspective
Job centered
The role of a trainer
is very important
It shapes attitude

overall growth
Long term
perspective
Career Centered
Internally motivated
for self development



DEVELOPMENT PROGRAMS
Decision making:
In basket
Business games
Case studies
Interpersonal:
TA
Role play
Sensitivity
Behaviour
Organisational:
Position rotation
Multiple mgmt



Innovative HRD practices in training and development



Training and development describes the formal, ongoing efforts of
organizations to improve the performance and self
-
fulfillment of their
employees through a variety of methods and programs. In the modern
workplace, these efforts have taken on a broad range

of applications

from
instruction in highly specific job skills to long
-
term professional
development.

1.

e
-
learning or online training


Companies

started providing on
-
line training. Trainees can undergo training by
staying at the place of their work.
Participants complete course work from
whatever they have access to computer and internet. Different types of media
are used for on
-
line training. Today, e
-
learning is gaining momentum as an
effective employee training tool with boring classroom sessions m
aking their way
out.

Audio
-
visual methods are used to teach skills and knowledge in production
and marketing jobs. Video tapes are used
to illustrate the steps in production
process. Further, CDs and DVDs provide trainees interactive capability.

Computer

assisted instruction (CAI) system delivers instructional materials
directly through computer terminals in an interactive format.

Example : Motorola is a high
-
tech firm and much of its training uses on
-
line multi
-
media technologies. Eb
-
based training , wh
en combined with other
communication technology like e
-
mail, teleconferencing , video
-
conferencing and
groupware provides the following facilities and advantages.

2.

Virtual Reality

is a training method that puts the participant in 3
-
D environment.
The three dimensional environment stimulates situations and events that are
experienced in the job. The participant interacts with 3
-
D images to accomplish
the training objectives. This ty
pe of environment is created to give trainee the
impression of physical involvement in an environment. To experience virtual
reality, the trainee wears devices, like headset, gloves, treadmills, etc.


3.

Film and
Television:

Films are pre
-
recorded and can be
shown on either movie
screen or television sets and /or well suited to any number of trainees. Though
their initial

cost is high, films can be used repeatedly and in different places. An
advantage of films and television over lectures is that the films can

show objects
and processes in detail and motion. This facilitates transfers of skill because
visuals images tend to be remembered longer than verbal ones.


4.

Sensitivity training

is about making people understand about themselves and
others reasonably, whic
h is done by developing in them social sensitivity and
behavioral flexibility.
Social sensitivity

in one word is empathy. It is ability of an
individual to sense what others feel and think from their own point of view.

Behavioral flexibility

is ability t
o behave suitably in light of understanding.





5.

Simulation :

It is a powerful training approach


particularly for achieving
behavioural changes. It permits trainees to act if they were in a real
situation
.
Equipment simulators are the
mechanical devices

that necessitate
trainees to use some actions, plans, measures, trials, movements, or decision

processes they would use with equipment back on the their respective work
place.
Equipment simulators can be used in giving training to:



Air Traffic Controllers



Taxi Drivers



Telephone Operators



Ship Navigators



Maintenance Workers



Product Development Engineers



Airline Pilots



Military Officers

6.

In Basket Method:




The trainees are first given background information about a simulated company,
its products, key personnel, various memoranda, requests and all data pertaining
to the firm. The trainee has to understand all this, make notes, delegate tasks
and prepare memo
s within a specified amount of time. Abilities that this kind of
exercise develops are:



situational judgment

in being able to recall details, establish priorities,
interrelate items and determine need for more information,




social sensitivity

in exhibitin
g courtesy in written notes, scheduling
meetings with personnel involved and explaining reasons for actions
taken, willingness to make decision and take action.

7.

Cross
-
cultural training

-

Organisations, in an endeavour

to address the need of
the growing expat population, are introducing cross
-
cultural training programmes
to make them accustomed to the new work environment.
Cross
-
cultural training
is a training programme being introduced in organisations for their expat
workforce, as it is more important than ever for the management to understand
the differences not only in time zone and language, but also customs and culture.

L & T Ltd Engineering construction

and contracts division: Asia Pacific HR Conclave Award for
t
he company with “Most Innovative HR practices”



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Mind Tree Consulting




Once in three to four weeks, the employe
es are informed about the latest
happenings in the company in terms of a project win or a customer delivery.



CEO’s snapshots are released once in two weeksin the in
-
house magazine.



“Mind Tree Minds” are selected at random to meet the senior people to ge
t the
right perspective of what they are doing, why they should do it, etc

Thrust on enhancing communication, security, sense of belonging and commitment towards
the organization.



Performance appraisal



Performance appraisal is essential to understand and improve the employee’s
performance through HRD.In fact Performance appraisal is the basis for HRD.
Performance appraisal

indicates the level of desired performance level, level of actual
performance and
the gap between these two. The gap should be bridge through human
resources development techniques like training, executive development etc.


“Performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in the matt
ers pertaining to his present job and his potential for a
better job.”



Edwin B Flippo



At Hundai 1,000 Jobs to go cut



In an attempt to counter continuing employee low performance and business troubles,
Hundai engineering and con
struction has announced its decision to lay
-
off employees and
cut 1,00 jobs.


Purpose of PA




Making payroll and compensation decisions


80%



Training and development needs


71%



Identifying the gaps in desired and actual performance and its cause


76%



Deciding future goals and course of action


42%



Promotions, demotions and transfers


49%



Other purposes


6% (including job analysis and providing superior support,
assistance and counseling)



Process of PA
Setting
performance
standards
Taking corrective
standards
Discussing
results
Comparing
standards
Measuring
standards
Communicating
standards


What to evaluate? (Philip Model)
Problem
children
Planned
separation
stars
Social
citizen
H
L
H
L
Potential
Performance


Approaches to Performance Appraisals


Traditional approach




Traditionally, P.A. has been used as just a method for
determining and justifying
the salaries of the employees



Than it began to be used a tool for determining rewards (a rise in the pay) and
punishments (a cut in the pay) for the
past performance

of the employees



Focused

only on the
past performance

of the employees



Did not consider the
developmental aspects

of th
e employee performance



Traditional methods

Of PA

1.

Essay appraisal method


2.

Straight ranking method


3.

Grading method

4.


Paired comparison


5.

Critical incidents methods

6.

Field review

7.

Checklist method

8.

Graphic rating scale

9.

Forced distribution

10.

Forced choice




Modern

approach





Performance appraisal processes are
more formal

and structured.



Apart from the routine HR Functions, Modern approach to performance
appraisals
includes a
feedback process




This
improves the communication

between superior
-
subordinates


The modern approach to is a
future oriented

approach and is
developmental in nature
. This recognizes employees as
individuals

and
focuses on their development.



Modern methods

of PA


1.

Assessment
centers


2.

Behaviorally anchored rating scales

3.

Human resource accounting method

4.

360 performance appraisal


5.


Management by objective



METHODS AND TECHNIQUES OF PERFORMANCE APPRAISAL



TRADITIONAL APPROACH


1.

ESSAY APPRAISAL METHOD


This traditional form of
appraisal, also known as “Free Form method” involves a
description of the performance of an employee by his superior. The description is
an evaluation of the performance of any individual based on the facts and often
includes examples and evidences to supp
ort the information. A major drawback
of the method is the inseparability of the bias of the evaluator.


2.

STRAIGHT RANKING METHOD


This is one of the oldest and simplest techniques of performance appraisal. In
this method, the appraiser ranks the employe
es from the best to the poorest on

the basis of their overall performance. It is quite useful for a comparative
evaluation.


3.

PAIRED COMPARISON


A better technique of comparison than the straight ranking method, this method
compares each employee with all others in the group, one at a time. After all the
comparisons on the basis of the overall comparisons, the employees are given
the final rankings
.


4.

CRITICAL INCIDENTS METHODS

In this method of
Performance appraisal

the evaluator rates the employee on the
basis of critical events and how the employee behaved during those incidents. It
includes both negative and positive points. The drawback of t
his method is that
the supervisor has to note down the critical incidents and the employee
behaviour as and when they occur.






5.

FIELD REVIEW

In this method, a senior member of the HR department or a training officer
discusses and interviews the superv
isors to evaluate and rate their respective
subordinates. A major drawback of this method is that it is a very time consuming
method. But this method helps to reduce the superiors’ personal bias.


6.

CHECKLIST METHOD

The rater is given a checklist of the d
escriptions of the behaviour of the
employees on job. The checklist contains a list of statements on the basis of
which the rater describes the on the job performance of the employees.


7.

GRAPHIC RATING SCALE

In this method, an employee’s quality and quan
tity of work is assessed in a
graphic scale indicating different degrees of a particular trait. The factors taken
into consideration include both the personal characteristics and characteristics
related to the on
-
the
-
job performance of the employees. For e
xample a trait like
Job Knowledge may be judged on the range of average, above average,
outstanding or unsatisfactory.


8.

FORCED DISTRIBUTION

To eliminate the element of bias from the rater’s ratings, the evaluator is asked to
distribute the employees in
some fixed categories of ratings like on a normal
distribution curve. The rater chooses the appropriate fit for the categories on his
own discretion.


MORDERN METHOD



1.

ASSESSMENT CENTRES


An assessment centre typically involves the use of methods like soc
ial/informal
events, tests and exercises, assignments being given to a group of employees to
assess their competencies to take higher responsibilities in the future. Generally,
employees are given an assignment similar to the job they would be expected to
perform if promoted. The trained evaluators observe and evaluate employees as
they perform the assigned jobs and are evaluated on job related characteristics.


The major competencies that are judged in assessment centres are
interpersonal skills, intellec
tual capability, planning and organizing
capabilities, motivation, career orientation

etc. assessment centres are also
an effective way to determine the training and development needs of the targeted
employees. Assessment centre refers to a method to objec
tively observe and
assess the people in action by experts or HR professionals with the help of
various assessment tools and instruments. Assessment centers simulate the
employee’s on
-
the
-
job environment and facilitate the assessment of their on
-
the
-
job per
formance.


An assessment centre typically involves the use of methods like social/informal
events, tests and exercises, assignments being given to a group of employees to
assess their competencies and on
-
the
-
job behaviour and potential to take higher
resp
onsibilities in the future. Generally, employees are given an assignment
similar to the job they would be expected to perform if promoted. The trained
evaluators observe and evaluate employees as they perform the assigned jobs
and are evaluated on job rela
ted characteristics.


An assessment centre for Performance appraisal

of an employee typically
includes:

Social/Informal Events


An assessment centre has a group of participants and
also a few assessors which gives a chance to the employees to socialize w
ith a
variety of people and also to share information and know more about the
organization.

Information Sessions


information sessions are also a part of the assessment
centres. They provide information to the employees about the organization, their
roles

and responsibilities, the activities and the procedures etc.

Assignments
-

assignments in assessment
centers

include various tests and
exercises which are specially designed to assess the competencies and the
potential of the employees. These include vario
us interviews, psychometric tests,
management games etc. all these assignments are focused at the target job.

The following are the common features of all assessment
centers
:

The final results is based on the pass/fail criteria

All the activities are car
ried out to fill the targeted job.

Each session lasts from 1 to 5 days.

The results are based on the assessment of the assessors with less emphasis on
self
-
assessment

Immediate review or feedback is not provided to the employees.


An organization’s human r
esources can be a vital competitive advantage and
assessment centre helps in getting the right people in right places. The major
competencies that are judged in assessment centres are interpersonal skills,
intellectual capability, planning and organizing c
apabilities, motivation, career
orientation etc. assessment centres are also an effective way to determine the
training and development needs of the targeted employees.



2.


BEHAVIORALLY ANCHORED RATING SCALES


Behaviorally Anchored Rating Scales

(BARS) is a relatively new technique
which
combines the graphic rating scale and critical incidents method
. It
consists of
predetermined critical areas of job performance

or sets of
behavioral statements describing important job performance qualities as g
ood
or bad (for e.g. the qualities like inter
-
personal relationships, adaptability and
reliability, job knowledge etc). These statements are developed from critical
incidents. In this method, an employee’s actual job behaviour is judged
against the desired

behaviour by recording and comparing the behaviour with
BARS. Developing and practicing BARS requires expert knowledge.


3.

HUMAN RESOURCE ACCOUNTING METHOD


Human resources are valuable assets for every organization.
Human resource
accounting method tries t
o find the relative worth of these assets in the
terms of money
. In this method the Performance appraisal of the employees is
judged in terms of cost and contribution of the employees. The cost of employees
include all the expenses incurred on them like th
eir compensation, recruitment
and selection costs, induction and training costs etc whereas their contribution
includes the total value added (in monetary terms). The difference between the
cost and the contribution will be the performance of the employees
. Ideally, the
contribution of the employees should be greater than the cost incurred on them.


4.

360 PERFORMANCE APPRAISAL





It is also known as
'multi
-
rater feedback'
, is the most comprehensive appraisal
where the feedback about the employees’ performan
ce comes from all the
sources that come in contact with the employee on his job. 360 degree
respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/ vendors
-

anyone who
comes into contac
t with the employee and can provide valuable insights and
information or feedback regarding the “on
-
the
-
job” performance of the employee.


360 degree appraisal has four integral components:


1. Self appraisal

2. Superior’s appraisal

3. Subordinate’s apprai
sal


4. Peer appraisal.


Self appraisal gives a chance to the employee to look at his/her strengths and
weaknesses, his achievements, and judge his own performance.

Superior’s appraisal forms the traditional part of the 360 degree appraisal where
the emplo
yees’ responsibilities and actual performance is rated by the superior.


Subordinates appraisal gives a chance to judge the employee on the parameters
like communication and motivating abilities, superior’s ability to delegate the
work, leadership qualiti
es etc. Also known as internal customers, the correct
feedback given by peers can help to find employees’ abilities to work in a team,
co
-
operation and sensitivity towards others.Self assessment is an indispensable
part of 360 degree appraisals and therefo
re 360 degree Performance appraisal
have high employee involvement and also have the strongest impact on behavior
and performance. It provides a "360
-
degree review" of the employees’
performance and is considered to be one of the most credible performance
appraisal methods.360 degree appraisal is also a powerful developmental tool
because when conducted at regular intervals (say yearly) it helps to keep a track
of the changes others’ perceptions about the employees. A 360 degree appraisal
is generally found

more suitable for the managers as it helps to assess their
leadership and managing styles. This technique is being effectively used across
the globe for performance appraisals. Some of the organizations following it are
Wipro, Infosys, and Reliance Indust
ries etc.







5.

MANAGEMENT BY OBJECTIVE





The concept of
‘Management by Objectives
’ (MBO) was first given by
Peter
Ducker

in 1954. It can be defined as a process whereby the employees and the
superiors come together to identify common goals, the employe
es set their goals
to be achieved, the standards to be taken as the criteria for measurement of their
performance and contribution and deciding the course of action to be followed.


The essence of MBO
is participative goal setting
, choosing course of acti
ons
and decision making. An important part of the MBO is the measurement and the
comparison of the employee’s actual performance with the standards set. Ideally,
when employees themselves have been involved with the goal setting and the
choosing the course

of action to

be followed by them, they are more likely to fulfill their responsibilities.



Recent developments




In view of the limitations of performance appraisal, improvements performance
appraisals practices are improved. These improvement are :



1)

Change in the approach of PA



the approach is shifted from controlling to
development. It is now termed as performance analysis and development.
Under this approach performance of the employee on the job is analyzed,
weak areas are identified, development
al activities are taken up to convert
weak areas into strong areas.

2)


Emphasis on documentation



emphasis is required for goal setting of
employees and other important processes of PMS.

3)

Computer
-
based PM



now
-
a
-
days , software is available for implementat
ion
the entire performance management process.

4)

Collaborative performance management



Both the manager and
subordinates understand each other and both understand the organizational
goals and requirements with the common and collaborative mind.

5)

Customized p
erformance management system



organizations started
adopting separate PA techniques and design the system for each employee
separately based on employee skills, behavior and his job needs.





Career Management



Job & Career


Job :

The concept of a job focuses on aspects external to the individual; it can be
described separately from the person.

Career :

Apart from external aspects, it also includes individual attitudes and self
concepts. Career success cant be measured only extern
ally by measuring rank,
salary or speed of promotion alone.


Objectives of career management system




Retention and development of high potential employees



Builds internal staff capabilities (bench strength) for the emerging organizational
demands



Maps various succession options



Facilitates developmental moves across the organization



Establishes a professionally managed organization with the systems in place to
ensure that it will have effective leaders going forward





Elements of Career
Management


1.

Individual (Self) Assessment of Abilities, Interests, career need and goals

2.

Organizational Assessment of employee abilities and potential


3.

Communication of information concerning career opportunities with the
organization

4.

Career Counseling to se
t realistic goals and plan for their attainment


Individual Career Planning


Career Planning is now the primary responsibility of individuals.



Individual Career Planning
Organizational Career Planning
Your career is not a matter of chance
-
it is a matter of choice.
It is not to be waited for, but to be achieved.
Organizational Career Planning


Self
-
Assessment
Explore Information
Explore Opportunities
Make Decision
Action Plan
Audit Results

Is the process of planning one’s work life
and involves evaluating abilities and interests,
considering alternative career opportunities, establishing career goals, and planning
practical development activities.


Organizations have their own vision and individuals their own aspirations.
Alignment and congruence of both create a win
-
win situation and the lack of such
alignment can create movement in haphazard directions leading to loss of
productivity, morale, etc.”



Types Of Career Programmes




Career Pathing



Career Counseling



Human Resources Planning



Career Information System



Management Faculty Development Programme



Training



Special Programmes


Career planning prerequisite




What is the aver
age length of time an employee stays with the organization?
Does this

vary by position type?



How much does the organization spend annually (in total and per employee) on
employee career planning?



Is there a formal training program for managers conducting
career planning? If
so, please describe it.



How are managers and supervisors trained and prepared for their roles?



Case: Innovative Career Plan at AT & T

A unique company initiative at AT &T is on internal labour

pool of more than 600
contract workmen.Termed Resource Link, about 300 contingent labour joined the
contract pool as a “career move”. Resource Link promised employees an
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Innovative Career Plan at Motorola India




Number one employer by choice.

Mantra
-
talent acquisition with respect to long term
prospects of an employee’s career.

Source potential employee’s .

Informing employee’s
of career opportunities throughout the corporation & encouraging qualified employees to

seek the coveted positions.Formula for success
-

4E’s + 1E
( Envision, Energize,
Execute, Edge + Ethics)Return to India program
.

Career management

plan based on
performance & potential.



Reward’s philosophy



Performance culture
-

“Pay for Performance” Philosophy



Training & development







Succession Planning





Example


Glaxo
Wellcome's succession planning process is based on retaining "star" employees as
well as ensuring that key positions are filled. In addition to identifying critical positions and
any gaps in the corporate structure, Glaxo seeks to develop and thereby retai
n employees
with extraordinary skills and/or performance. The company also emphasizes female and
minority employees as part of its commitment to diversity.Managers at Glaxo Wellcome
concentrate heavily on matching star employee’s talents and interests to a
vailable
opportunities. Glaxo has found that typical star employees are retained more successfully
through a rich variety of assignment, visibility, excitement, and change rather than strict
financial rewards.


It is the process of identifying ,

developing and making the people ready to occupy
higher level jobs as and when they fell vacant.



Why Succession planning ?




Constant change planning



An organizational journey, not a project



Ensuring continuity of leadership



Identifying gaps in existing

talent pool



Identifying and nurturing future leaders




Assessment of
Key Positions
Identification of
Key Talent
Assessment of
Key Talent
Generation of
Development Plans
Development
Monitoring & Review
Key
Elements
Succession Planning: Key Elements




Assessment of Key Positions:


• What are the competencies and experiences needed to qualify for each key position?


2. Identification of Key Talent:



Typically people at the top two levels of the organization and high potential employees
one level below.

• Identified by their management’s assessment of their performance and potential for
advancement.


3. Assessment of Key Talent:



For each person on

the radar screen, primary development needs are identified
focusing on what they need in order to be ready for the next level.


4.
Generation of Development Plans:



A development plan is prepared for how we will help the person develop over the next
yea
r.


5.

Development Monitoring & Review



An annual or semi
-
annual succession planning review is held to review progress of
key talent and to refresh or revise their development plan.



Factors
-
Succession Planning
Factors considered in
planning Succession
Planning
Length of Service






Knowledge management



Learning is
not compulsory, neither is survival

-

W. Edwards Deming









Data: Facts and figures from which conclusions may be drawn.



Information : Data that has been processed into an organised , usable form and
is meaningful to the recipient f or the task at han
d.



Data and information are tangible. They can be collected, & handed over


Knowledge & Wisdom




NWCDEL (1996) defines knowledge as: 'i) all that has been perceived or grasped
by the mind; learning; enlightenment; ii) the body of facts, principles,
etc.accumulated by mankind'.



Wisdom involves 'power of judging rightly and following the soundest course of
action, based on knowledge, experience, understanding, etc'.



Two Types of Knowledge





Types of knowledge


1.

Explicit knowledge :



Explicit knowledge may be defined as the knowledge that has been expressed and in
most cases recorded. The recording may be in print form, written form, pictorial form,
tabular form, audio form, video form, digital form or any other form. It can be expr
essed
in words and numbers and shared in the form of data, scientific formulae, specifications,
manuals and the like. This kind of knowledge can be readily transmitted across
individuals formally and systematically.



Characteristics of Explicit knowledge



i) It is expressed and can be recorded in diverse media (paper, tape; computer
memory, etc) and stored.



ii) It is explained whereby comprehending the matter becomes easy.



iii) It can be seen if written, printed or typed; heard if recorded in tapes, CDs, et
c.



iv) It can be shared.



v) It can be translated from one language to the other.



vi) Generally, it is available as open source of knowledge.




2. Tacit knowledge,( Implicit knowledge) :


highly

personal and hard to formalize, making it difficult to communicate or share with
others. Subjective insights, intuitions, and hunches fall into this category of knowledge.
Difficult to verbalize, such tacit knowledge is deeply rooted in an individual’s ac
tions and
experience, as well as in the ideals, values, or emotions he or she embraces.

Ex : Tea taster

Ex: A cricketer who scores centuries cant explain how he scores it



Characteristics of implicit knowledge




i) It is personal and usually resides at
the subconscious state within the brain;



ii) It defies detection by observation;



iii) It is gained through experience, understanding, insights, sound judgments etc



iv) In most cases it is not recorded;



v) It is not available in open source;



vi) In certain
cases it is difficult to express in words or by any other means;



vii) Inexpressible tacit knowledge cannot be translated from one language to the
other.


Knowledge management




KM is about supporting creation, sharing and use of knowledge to optimise its
e
ffectiveness in supporting business strategy . (
KPMG (1998)



KM is an
integrated approach
of creating, sharing and applying knowledge to
enhance organizational
productivity, profitability and growt
h (
APO )




Componenets of knowledge management




Construction :


Construction (compilation/collection /collation) of knowledge generated within the
organization (and from external sources) into a Knowledge Repository (KR)



Organisation:


Organize the knowledge so constructed in the organization in such a

way that it is
easily accessible to all those in the organization, who need it, on time



Maintenance
:


A management system that maintains the KR up
-
to
-
date and relevant




Retrieval :


A set of tools, including computer systems that facilitates ease of a
ccessing the KR as
well as building and maintaining it.



Sources of Knowledge


The
two sources of Knowledge are:




Internal sources emerging from the operations of the organization
-

internal
sources include the organizational operations such as design, development,
engineering, sales, marketing, manufacturing, customer contact, etc. This is the
basic source of organiza
tional information, which is controllable and can be
easily canalized to KR. In the absence of any formal mechanism, this knowledge
remains in the minds of organization members and usually, disappears with
them.



External sources such as Industry/Professio
nal Associations, Commercial web
sites etc.
-

there are many professional bodies such as IEEE, academic bodies
such as universities, research institutions, industry associations such as NEMA,
and commercial organizations. These sources usually make the know
ledge
available through web sites and some times through publications. Some of them
could be free services and some could be for a fee. A well
-
designed KM should
be able to take advantage of both the sources to create and maintain a KR and
allow members to

easily access the knowledge stored inside it.


Pre requisites of KM




1. Sharing Expertise:
This will eliminate mistakes by new entrants to the job and
saves man hour on learning it from scratch and performance & productivity
increases. Delayed transition

of new entrant is not financially viable for the firm.



2. Knowledge Mapping :
Employees with equal qualification and experience
may not have the same level of knowledge that need to be tapped. Hence
employee inventory of qualification, experience, problem

solving ability, ability to
think laterally etc should be mapped/ documented.



3. Knowledge workers :
Employee of an organisation who uses knowledge to
improve his productivity. He uses tacit knowledge which belongs to him as well
as acquires it from sour
ces like experts, www etc by collecting and validating it
after receiving from source.



4. Value creation :
Providing support to effective decision making


Challenges of KM




1. Lack of sharing expertise:
Experts may fear that they will loose importance

once they share the expertise. Expert may also refuse to share the expertise
because he does not get anything in return.




2.
Attaining expertise :
The process of attaining expertise is not fully
understood. Ex : A machine problem that could not be fixed by

an expert
engineer may get fixed by mechanic .



3. Problem of Tacit knowledge:
The inexpressible Tacit knowledge cant be
recorded and shared. It is difficult to express it also .Ex: Some one’s sixth sense
or presence of mind cant taught to develop.



4. Leg
al issues :
Intellectual property rights. If an employee develops an
intellectual property, he will carry it to the next company he goes. This will
develop legal issues.



5. Inability on the part of the
organization

to get employees communicate with
each
other.



6. Increased trend of early retirement which leads to loss of knowledge



7. Knowledge is not static and its value can erode over time.




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