Definition of Knowledge: Tacit and Explicit
As a worker in your Organisation, you see the value of Knowledge Management to your Organisation. Your task is to persuade your Senior Management to Consider using KM as a means/way to solve your Company's Performance.
The definition of knowledge can be termed as the personal beliefs of the individuals, which is justified in terms of measuring it. It can be distinguished in to two formats such as the tacit and the explicit knowledge. The knowledge that is tacit in nature depends on the capability of the people to articulate it in different forms. It can be seen that most of the knowledge are tacit in nature (Wang, Wang & Liang, 2014). This type of knowledge is developed through the process of trial and error and helps the organization in knowing the potential of the methods that are being followed in the system. Most of the knowledge are present within the process of business but has to be implemented so that it can help in improving the process in a positive way (Lai et al., 2014).
Explicit knowledge is in the form of words, documents, data that is organized along with different computer programs. It is important that knowledge management has to be used in a tacit manner so that it can be used by the other people within the organization. It is further divided in to ‘know what’, ‘know why’ and ‘know how’. The ‘know what’ knowledge can be specified in to actions that are bought forward with a stimulus (Ragab & Arisha, 2013). This knowledge helps in calculating the relationship between the response and the stimulus of the individual. The ‘know why’ knowledge is the highest form, as it helps in understanding the casual relationship and the uncertainty levels that are associated with it in a deep manner. The ‘know how’ is the second step with respect to the first distinction where the programming of the response and the stimuli has to be calculated (Kim et al., 2014).
KM can be seen as the planning, controlling and motivating the employees within the process of business so that the assets that are related to knowledge can be employed in an effective way. The assets that are related to knowledge come in different forms such as manuals, patents and other documents that help the employees in carrying on with the jobs in the best way (Carmeli, Gelbard & Reiter-Palmon, 2013).
Role of Knowledge Management in Organizations
The KM process involves the function of acquisition of knowledge along with refinement and utilizing it in the process of business. These functions help the organization in operating the systems and provide motivation to the employees to participate in it. The goal of knowledge management is that it helps in the improvement of the knowledge assets that are present within the organization so that it can help in increasing the effectiveness of the organizational behaviors. It also helps in making better decisions so that the performance of the organization can be improved (Stark, 2015).
These processes help in the organizational activities by letting the manager’s focus on the goals and objectives that can be achieved through the knowledge management process. It also provides motivation to the employees so that they can participate in the business process and create social processes so that it can help in facilitating the success of the KM (Donate & de Pablo, 2015).
The social processes are inclusive of the practices within the communities that allow the groups to have a common interest so that a proper network can be established by allowing people with great expertise collaborate with the less expertise individuals. This is an important process, as the knowledge has to be transmitted to others through various groups and networks. These processes have to be based more on the people and less on the level of technology so that it can help in developing better modes of communication technology (Meihami & Meihami, 2014).
This system is based on the communication and information system on the computer, which helps in supporting the processes of knowledge management. The communication and information system (CIS) in the system of knowledge management have to focus less on the technological advancement and more on the activities of the humans so that the operations can be carried out in a better way (Stark, 2015). The information system provides the employees in making choices during the process of operation in the business and the operation takes place in an automatic manner. An example of this would be that when the database of the sales is being prepared, the employees have to prepare the structure and the content and it will operate in an automatic manner (Alegre, Sengupta & Lapiedra, 2013).
The process cycle is an important tool that helps in processing the knowledge management in an organization.
Figure 1: KM Cycle
KM Process: Acquisition, Refinement, and Utilization
(Source: Evans & Lindsay, 2013)
The above figure shows the starting point of the knowledge management cycle that includes the acquisition or the creation of knowledge within the organization. The creation of knowledge is done by developing new or replacing the present with a new content of knowledge. The main focus during the creation of the knowledge has to be with respect to the boundary of the organization and collaborating with the partners of the firm (Alegre, Sengupta & Lapiedra, 2013).
Figure 2: Process Model of KM
(Source: Evans & Lindsay, 2013)
Creation is inclusive of socialization that is the conversion of the present tacit knowledge in to new tacit knowledge by interactions and experiences in a social manner. Combination is the creation of the new knowledge through merger and synthesizing the present explicit knowledge.
Acquisition is the process of acquiring the knowledge from the external sources so that it can be prepared and placed in to the memory of the organization that will help in creating a long term impact on the organization. The refinement process of knowledge helps in selecting, filtering and optimizing the knowledge so that it can be included in various media of storage (Allegre, Sengupta & Lapiedra, 2013).
The organizational memory includes the knowledge that is stored within the minds of the participants in the organization by maintaining proper electronic methods so that it can be embedded within the process of the business and the relationship between the suppliers, customers and partners. The above figure presents the impact on the organization with respect to knowledge on a wider manner, which can be shared or transferred among the employees. Transfer refers to the communication of knowledge in a purposive manner so that it can help the employees in gaining better insights so that the level of productivity can be increased, as the information is sent to a receiver who is known to the sender of the information (Tseng & Lee, 2014).
After the knowledge is transferred, it is utilized by developing it through various interpretations and identifying the issues that are present in it so that it can help in process of innovation and the collective learning attitudes of the individuals so that it can help in solving the problems (Meihami & Meihami, 2014).
The organizations have to be competitive so that it can ensure its survival in the competitive environment, which can be achieved by managing knowledge in an effective manner. In the globalized world, it is important to manage knowledge in an efficient way, as most of the work that is carried out is based on information. The competition among the organizations take place on the basis of knowledge, as the services and the products are complex to understand. The employees have to undergo a life-long process of learning so that they can understand the dynamics of the market, which is competitive due to the rise in the innovation methods. Knowledge management is important due to the early retirement and the mobility level of employees may lead to the loss in knowledge in some of the specific areas (Becerra-Fernnandez & Sabherwal, 2014).
Impact of Knowledge Management on Organizations
Another factor that needs to be considered is the importance of managing the knowledge so that the organizations can survive in the competitive market. The optimal operation will help in the effective and efficient creation of product and service delivery so that the customers can be satisfied, which will help in the success of the organization. The proper use of KM will help the organization in competing in a better way with its rivals in the market, as it helps in increasing the capability of innovation, which will lead to product differentiation in the market. The lack of innovation process will result in the loss of customers, as the products may not be attractive that may lead hamper of the level of profit for the organization (Lai et al., 2014).
The factor of globalization has also helped in driving the need for adopting knowledge management in most of the organization, as it is an useful tool for sharing and acquiring knowledge, which helps in decreasing the barriers that are related to culture and structure. It has created a need to manage knowledge for most of the organization across various countries and continents so that they can attract the maximum number of customers. The intellectual capital has to be managed in a proper manner so that the future generations who will be serving in the organization can follow and innovate it so that maximum returns can be earned by the organization (Ragab & Arisha, 2013).
Knowledge management helps the organization in sharing important insights about the organization so that it can help in reducing the work process along with the reduction of time that is taken in training the employees. It also helps the organization in retaining the intellectual capital so that the turnover of employees can be adapted according to the change in the market and the environment. Thus, there is an active link between the best practices that are taken up in the organization along with the efficiency through which knowledge is managed in the organization (Kim et al., 2014).
It is important to align the strategies of knowledge management with that of the organization so that it can help in the success of the business. The strategy that is taken up for KM has to be created on the basis of an understanding of the resources that are available to the organization so that it can help in the creation of values. The strategy that will be followed within the organization should not be arbitrary and has to depend on the way it serves the clients and the recruitment of the people within the process (Donate & de Pablo, 2015).
Challenges and Benefits of Knowledge Management
The role of knowledge management in the organization helps in mapping out the management strategies that needs to be taken up so that it can function in an effective manner. The proposition of the knowledge has to be centered on the knowledge that is based on the capacity of the organization and the competitive advantage that it can get out of it. The effort of KM helps in exerting better focus on the management of knowledge so that it can become an asset that will encourage in sharing of knowledge (Wang, Wang & Liang, 2014).
As a strategic management tool, it manages the information that is collected from the expertise of the employees. It also encompasses the explicit knowledge that helps in reflecting on the business strategy of the organization along with the policies and guidelines at all the intermediate levels. The activities of knowledge management help in influencing the performance of the business in a positive manner so that the organization can gain a competitive advantage in the market. It is important for the organization in selecting the right process of knowledge management so that it can help in sharing of the knowledge about the operations that are being carried out in the business (Carmeli, Gelbard & Reiter-Palmon, 2013).
Thus it can be concluded that the management of knowledge has to be effective so that it can help the organizations in gaining a competitive advantage regarding the products and services that are being supplied in the market. It is also necessary that the process has to be aligned with the objectives of the organization so that it can help the employees in increasing their level of productivity. The upper management of the organization have to find ways and means that will help them in adopting KM so that they can be able to achieve better success within the business process.
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