Knowledge Management

It has been extensively identified that knowledge is an important
aspect for an economy to develop. We are seeing a lot of
transformation rapidly happening in our society. Every day we are
seeing that we are becoming more and more dependent on knowledge. If
this is the case with our societies, the scenario is not much
different for organizations. Nowadays, if top management is asked to
underline a single resource which is most critical for their
organization to achieve and sustain competitive advantage, most of
them will be selecting - "Knowledge". With such an importance to
knowledge, managing it has become a serious concern for organizations.
An organization which can built excellent process to manage knowledge,
certainly will have a competitive edge over its competitors.

Agreeing on the existing concentration by organizations and the
character of extreme competition, a critical activity taken up by them
is knowledge management.

Knowledge Activities
Knowledge management (KM) cannot be achieved with a single definite
activity. It involves an assortment of activities. These are usually
referred to be knowledge activities. The utilization of the knowledge
activities at the resources connected to knowledge which is limited
and assisted through an extensive choice of aspects will result in KM.

Research studies do indicate a number of knowledge activities which
are important. Some of them are as below:

Knowledge Acquisition
Knowledge Utilization
Knowledge Selection
Knowledge Transfer
Knowledge Creation
Knowledge Internalization
Research studies indicate that knowledge transfer deserves the most
careful attention among these activities so that the organizations can
manage knowledge successfully.

Knowledge Transfer
The conveying of knowledge from one member to another member of
organization involves knowledge transfer. Though this is a simplified
definition, knowledge transfer itself is a complex process. First of
it has to be noted that the knowledge conveyed is correct and also it
should reach the proper member of the organization. In addition, the
timing and form of the knowledge which is conveyed should also be
accurate. Above all these aspects, the expense of this conveyance
should be within acceptable limit. When all these are achieved, the
knowledge transfer can be termed as successful. So as to garner
profits of knowledge management, it is critical that knowledge
transfer has to be done successfully.

In the existing phase where technologies are rapidly developing to
share information, organizations are giving more emphasize to
knowledge transfer. In addition to this, it must be noted that the
created knowledge will help to attain improved performance for an
organization when the transfer process takes place. There is no use in
keeping the knowledge at the originating location. It has to be passed
to the location where it can be exploited to the advantage of
organization. Such an exploitation generates value for the
organization, which in turn, bring to it the required competitive
advantage. So, it is essential that an organization has to put firm
foundation for the process targeted at achieving knowledge transfer.

Organizational Culture

What is an organization ?

An organization is nothing but a common platform where individuals from different backgrounds come together and work as a collective unit to achieve certain objectives and targets. The word organization derived from the Greek work "organon" is a set up where people join hands to earn a living for themselves as well as earn profits for the company. An organization consists of individuals with different specializations, educational qualifications and work experiences all working towards a common goal. Here the people are termed as employees.

The employees are the major assets of an organization and contribute effectively in its successful functioning. It is essential for the employees to be loyal towards their organization and strive hard in furthering its brand image. An organization can't survive if the employees are not at all serious about it and treat their work as a burden. The employees must enjoy whatever they do for them to deliver their level best.

What is culture ?

The attitude, traits and behavioral patterns which govern the way an individual interacts with others is termed as culture. Culture is something which one inherits from his ancestors and it helps in distinguishing one individual from the other.

What is organization culture ?

Every human being has certain personality traits which help them stand apart from the crowd. No two individuals behave in a similar way. In the same way organizations have certain values, policies, rules and guidelines which help them create an image of their own.

Organization culture refers to the beliefs and principles of a particular organization. The culture followed by the organization has a deep impact on the employees and their relationship amongst themselves.

Every organization has a unique culture making it different from the other and giving it a sense of direction. It is essential for the employees to understand the culture of their workplace to adjust well.

Organization A

In organization A, the employees are not at all disciplined and are least bothered about the rules and regulations. They reach their office at their own sweet time and spend their maximum time gossiping and loitering around.

Organization B

This organization follows employee friendly policies and it is mandatory for all to adhere to them. It is important for the employees to reach their workplace on time and no one is allowed to unnecessarily roam around or spread rumours.

Which organization do you feel would perform better ? — Obviously organization B

The employees follow a certain culture in organization B making it more successful than organization A.

No two organizations can have the same culture. The values or policies of a non-profit organization would be different from that of a profit making entity or employees working in a restaurant would follow a different culture as compared to those associated with education industry or a manufacturing industry.

Broadly there are two types of organization culture:

Strong Organization Culture: Strong organizational culture refers to a situation where the employees adjust well, respect the organization's policies and adhere to the guidelines. In such a culture people enjoy working and take every assignment as a new learning and try to gain as much as they can. They accept their roles and responsibilities willingly.

Weak Organization Culture: In such a culture individuals accept their responsibilities out of fear of superiors and harsh policies. The employees in such a situation do things out of compulsion. They just treat their organization as a mere source of earning money and never get attached to it.

What is the SECI Model

The SECI Model

Ikujiro Nonaka and Hirotaka Takeuchi propose a model of the knowledge creating process to understand the dynamic nature of knowledge creation, and to manage such a process effectively: the SECI model. 

It consists of 3 elements: 

• SECI
• Ba
• Knowledge Assets

These 3 elements interact with each other organically and dynamically. The knowledge assets of an organization are mobilized and shared in 'Ba' whereas the tacit knowledge held by individuals is converted and amplified by the spiral of knowledge through:

• Socialization

• Externalization

• Combination

• Internalization

The three elements should be integrated under clear leadership so that the organization can create knowledge continuously and dynamically: it must become a discipline for organizational members.

SECI

The creation of knowledge is a continuous process of dynamic interactions between tacit and explicit knowledge. The four modes of knowledge conversion interact in the spiral of knowledge creation. The spiral becomes larger in scale as it moves up through organizational levels, and can trigger new spirals of knowledge creation.

Socialization

Sharing tacit knowledge through face-to-face communication or shared experience, an example is an apprenticeship.

Externalization

Developing concepts, which embed the combined tacit knowledge, and which enable its communication.

Combination

Combination of various elements of explicit knowledge: building a prototype is an example.

Internalization

Closely linked to learning by doing, the explicit knowledge becomes part of the individual's knowledge base (e.g. mental model) and becomes an asset for the organization.

BA

This difficult concept (there is no exact translation of the word) can be defined as a shared context in which knowledge is shared, created and utilized through interaction. 

There are Four types of Ba, each offering a context for a specific step in the knowledge-creating process.

Originating Ba

The shop floor, it enables people to interact with each other and with customers.

Dialoguing Ba

The tacit knowledge of local employees is used to create sales forecasts, in dialogue with each other.

Systemizing Ba

The forecasts of sales are tested against the sales results and are fed back to the local stores.

Exercising Ba 

Using this information, and comparing it to reality, staff improves their skills and ability to make the forecasts.

Knowledge Assets

These are company-specific resources that are indispensable to create values for the firm. They are the inputs, outputs, and moderating factors, of the knowledge-creating process. 

To effectively manage knowledge creation and exploitation, a company has to 'map' its inventory of knowledge assets. Cataloguing is however not enough: knowledge assets are dynamic; new knowledge assets can be created from existing knowledge assets.

Vision Statement

A Vision Statement is a written declaration of the Strategic Vision of a firm. It contains the desired future state at which a company hopes to arrive and is articulating the dreams and hopes for the business. It reminds the people in your firm of what you are trying to build. 

Ideally, a vision statement has the following characteristics:

• Focus on the future

• Inspirational, hopeful

• Provides clear decision-making criteria

• Long-term oriented and timeless

• Clear, not ambiguous

• Memorable, easy to remember

• Realistic, achievable

• Aligned with the values and Culture of the organization

Leaders should communicate the vision regularly, create stories or narratives that illustrate the vision, act as role-models by embodying the vision, create short-term objectives compatible with the vision, and encourage employees to craft their own personal vision compatible with the organization's overall vision.

Mission Statement

Mission Statement

Managers and employees are occasionally searching for a purpose and a sense of identity. They want more than just pay, safety and an opportunity to develop their skills. They want a "Sense of Mission". In fact there are a number of functions that a Mission can have in any organization. These can be internal and external and include:

1.            To inspire and motivate managers and employees to higher levels of performance. (Sense of Mission)

2.            To guide resource allocation in a consistent manner.

3.            To help to balance the competing and often conflicting interests of various organizational stakeholders.

4.            To provide a sense of direction.

5.            To promote shared values amongst employees.

6.            To refocus an organization during crises.

7.            To improve corporate performance.

 

A Mission Statement is an articulation of a company's mission. An often-used definition of a mission statement is: "a broadly defined but enduring statement of purpose that distinguishes the organization from others of its type and identifies the scope of its operations in product (service) and market terms" (Pearce, J.: The company mission as a strategic tool. Sloan Management Review, 1982, 23-3, pp. 15-24). According to Campbell, mission statements frequently do more harm than good because they imply a sense of direction, clarity of thinking, and unity that rarely exists. Instead of uplifting employees with elevating ideals, they encourage cynicism. The Ashridge Mission Model from Andrew Campbell is a method that can be used to create or analyze a Mission, Sense of Mission and Mission Statement. The Ashridge model integrates two historic schools to determine a Mission:

 

•             The Strategic School. A Mission is primarily seen as the first step in the strategy process. It defines the business's commercial rationale and target market.

•             The Cultural/Philosophy/Ethics School. A Mission is primarily seen as an expression or statement that should ensure good cooperation between employees. It is cultural glue which enables an organization to function as a collective unity.

 

The Ashridge Mission Model contains the following four elements which should be linked tightly together, resonating and reinforcing each other to create a strong Mission:

 

Purpose

·         For the benefit of the shareholders (See: Shareholder Value Perspective)

·         For the benefit of all its stakeholders (See: Stakeholder Value Perspective)

·         For the benefit of a higher ideal, going beyond merely satisfying the needs of its stakeholders.

 

Strategy

The commercial logic for the company. Strategy links purpose to behavior in a commercial, rational, left-brain way. (Compare: Whole Brain Model)

 

Values

The beliefs and moral principles that lie behind a company's culture.

 A Sense of Mission occurs when employees find their personal values aligned with the organizational values. Values give meaning to the norms and behavioral standards in the company. Values are strong motivators to act in the best interests of the purpose of the company. They can provide a rational for behavior that is just as strong as strategy.

But in another, emotional, moral, ethical and right-brain way. It is for this reason that the Ashridge framework has a diamond shape. Compare: Seven Signs Of Ethical Collapse

 

Policies and Behavioral Standards

Guidelines to help people to decide what to do on a day-to-day basis.

Management by Objectives

Management by Objectives

MBO relies on the defining of objectives for each employee and then to compare and to direct their performance against the objectives which have been set. It aims to increase the performance of the organization by matching organizational goals with the objectives of subordinates throughout the organization. Ideally, employees receive strong input to identify their objectives, time lines for completion, etc.
MBO includes continuous tracking of the processes and providing feedback to reach the objectives.

Peter Drucker
Management by Objectives was first outlined by Peter Drucker in 1954 in his book 'The practice of Management'. According to Drucker managers should avoid 'the activity trap', getting so involved in their day to day activities that they forget their main purpose or objective. One of the concepts of MBO was that instead of just a few top-managers, all managers of a firm should participate in the strategic planning process, in order to improve the implementability of the plan. Another concept of Management by Objectives was, that managers should implement a range of performance systems, which are designed to help the organization to function well. Clearly, Management by Objectives can thus be seen as a predecessor of Value Based Management.

Principles of Management by Objectives
•    Cascading of organizational goals and objectives,
•    Specific objectives for each member,
•    Participative decision making,
•    Explicit time period, and
•    Performance evaluation and provide feedback.

Management by Objectives also introduced the SMART
SMART means a method for checking the validity of the objectives, which should be 'SMART':
•    Specific
•    Measurable
•    Achievable
•    Realistic, and
•    Time-related.

In the 90s, Peter Drucker put the significance of this organization management method into perspective, when he said: "It's just another tool. It is not the great cure for management inefficiency... Management by Objectives works if you know the objectives, 90% of the time you don't."

The Five P Model

The 5 P's Model from Dr. Mildred Golden Pryor, J. Chris White, and Dr. Leslie A. Toombs is a Strategic Management Model which requires the alignment of 5 variables to improve organizations and their operations: Purpose, Principles, Processes, People, and Performance.

Purpose
It involves all the elements that constitute the intention of the organization. This includes the organization's mission, vision, goals and objectives, and strategies.

Principles
These are the guiding philosophies, assumptions, or attitudes about how the organization should operate and how it should conduct its business. This variable includes the integrity base, ethics, and core values to which employees are expected to make a commitment when they are hired.

Processes
These are the organizational structures, systems, and procedures that are used to make the products or perform the services that the organization provides, as well as the infrastructure and rules that support these systems and procedures.

People
These are the individuals (and teams of people) who perform work that is consistent with the Principles and Processes of an organization to achieve its Purpose. They are the active components who accomplish work results.

Performance
It encompasses all the metrics, measurements, and expected results that indicate the status of the organization, and are used as criteria for decision making. Performance results are fed back into the strategic management process to provide a means of feedback and control.

For an organization to be efficient and effective, socio-technical organizational theories suggest that all of the 5 variables must be aligned. So that they support and reinforce each other. Incongruence or incompatibility among the variables expends unnecessary time, energy and money. Also it can lead to high levels of frustration, feelings of helplessness, and dissatisfaction for employees. The 5 variables exist in all organizations.