StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Knowledge Management: Here to Stay or Management Fad - Essay Example

Cite this document
Summary
The American Productivity & Quality Center (APQC) defines knowledge management as “the strategies and processes of identifying, capturing and leveraging knowledge” to enhance competitiveness (Manasco 1996). …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93% of users find it useful
Knowledge Management: Here to Stay or Management Fad
Read Text Preview

Extract of sample "Knowledge Management: Here to Stay or Management Fad"

Knowledge Management: Here to Stay or Management Fad? The American Productivity & Quality Center (APQC) defines knowledge management as “the strategies and processes of identifying, capturing and leveraging knowledge” to enhance competitiveness (Manasco 1996). Knowledge management is concerned with the exploitation and development of the knowledge assets of an organisation with a view to furthering the organisations objectives. It is generally considered that knowledge management has been widely accepted in businesses. However, it is nowhere near as clear whether knowledge management is another transient fad or something that is here to stay. A management fad is a short-lived idea that is important and accepted for a short time, but then fades either because it is not successful or because something else replaces it. Other business ideas last and become an important part of most organisations. The opinions on the status and importance of knowledge management vary widely. Holtham (1997) dismisses knowledge management as just another transient management fad that will soon fade and be forgotten. David J. Skyme (1999) describes a survey that found “over half of European and UK managers thought that knowledge management was a fad.” Senge (1990) goes even further on the negative side and argues that many organisations are unable to function as knowledge-based organisations, suggesting that knowledge management will not only fade, but will cause organisations to fail. Koenig (1996) has a more balanced view and accepts the importance of knowledge management. However, in doing so recognizes that knowledge management is just a new name for information management processes and procedures that have been around for decades. Others are far more positive about knowledge management. Drucker (1993) has described knowledge, rather than capital or labour, as the only meaningful economic resource in modern society. The variety of the views expressed shows that knowledge management is well worth looking into further. The following analysis will focus on describing knowledge management and considering what impact it has had in the business world, while also exploring the reasons why knowledge management has not succeeded in all organisation. This will show that knowledge management is complex and requires effective implementation for it to show the positive results it is capable of achieving. The Emergence of Knowledge Management as a Response to Environmental Change Before assessing knowledge management, it is useful to briefly consider its emergence. Knowledge management as a conscious discipline would appear to be somewhere between five and fifteen years old (Ives, Torray, and Gordon 1998). During that time, economic, social and technological changes were transforming the way that companies worked. Globalisation emerged and brought new opportunities and increased competition. Companies responded by downsizing, merging, acquiring, reengineering, and outsourcing. Many streamlined their workforce and boosted their productivity and their profits by using advances in computer and network technology. However their successes in doing so came with a price. Many lost company knowledge as they grew smaller. And many lost company knowledge as they grew bigger. By the early 1990s a growing body of academics and consultants were talking about knowledge management as the new business practice, and it began to appear in more and more business journals and on conference agendas (Ives, Torray, and Gordon 1998). By the mid-1990s, it became widely acknowledged that the competitive advantage of some of the worlds leading companies was being carved out from those companies knowledge assets such as competencies, customer relationships, and innovations. Managing knowledge suddenly became a mainstream business objective as other companies sought to follow the market leaders. This shows that when it emerged, knowledge management was important with its usefulness closely linked to the challenges in the business environment at the time. This leads to the next question, which is whether knowledge management is still applicable to the modern business environment. Knowledge Management and its Relevance to the Modern Business Environment According to Yogesh Malhotra (1998), knowledge management caters to the critical issues of organisational adaptation, survival, and competence in the face of increasingly discontinuous environmental change. Arthur (1994) suggests that the new world of knowledge-based business is characterized by a continuous redefinition of organisational goals, purposes, and an organisation’s way of doing things. Considering that the current business environment is characterized by radical change, this suggests that knowledge management is an approach that is capable of providing the qualities that modern organisations need to survive and compete. In the modern business environment, organisations are also seeking advantages that other companies cannot easily duplicate. Since knowledge is learned by experience rather than acquired, knowledge is a source of competitive advantage that meets this need. This is another reason that knowledge management appears to link well with what organisations are seeking. Another factor in the modern business environment is that people factors are becoming more important. Talent and experience is seen as a major source of advantage and it is becoming rarer. In some organisations, thirty to forty percent of the workforce will be retiring in the next five years. Suddenly, organisations are discovering the value of communities of practice, mentoring, and knowledge networks for getting new hires up to speed and improving overall competence of the workforce (Nonaka, 1991). We are experiencing another shift in the value proposition as people realize that the workplace is evolving from organisations to networks of more autonomous business units or companies (Hirschheim and Goles, 2002). Relationships are the hot new topic. But what fundamentally builds relationships are exchanges of knowledge and other intangibles, more transparency of information, and more collaboration. Relationships that are based only on business transactions are fragile. Those that are built on genuine knowledge exchanges and helpfulness are stronger and more resilient. This is yet another reason that knowledge management is relevant to the current business environment (Nonaka, 1991). Overall then, it can be said that knowledge management is relevant to the modern business environment. However, like all theories, its real effectiveness lies not in its theoretical value, but in the results it achieves. In turn, this depends on how well organisations are able to utilise it. This is where the issue of knowledge management becomes complex, because as will be shown, there are many factors that make applying knowledge management strategies a complex issue. Implementing a Knowledge Management Culture One of the first major complexities associated with knowledge management is that it is not something that can be implemented only at the higher levels of the organisation. Since every employee is a source of knowledge, knowledge management must be part of the organisation overall (Dearlove, 2001). One of the common problems that occurs in knowledge management implementation is that the organisation ignores the people and cultural issues (Walsham, 2001). In an environment where the individuals knowledge is valued and rewarded, establishing a culture that recognizes tacit knowledge and encourages employees to share is critical. The need to sell the knowledge management concept to employees shouldnt be underestimated. After all, in many cases employees are being asked to surrender their knowledge and experience. An organisation simply cannot expect to implement a knowledge management system and enjoy immediate benefits. Instead, an organisation will need to consider the organisation’s culture and adapt it so that the employers will accept knowledge management (Sun and Scott, 2003). Certainly, this is not an easy task. However, if the benefits are to be achieved, it is a necessary one. The simple fact is that many organisations implement a knowledge management with the naive belief that the organisation will magically transform. When it comes to strategies involving all employees, this simplistic view only leads to disappointment and failure. Implementation Difficulties Many companies took the approach of implementing knowledge management solutions, focusing almost entirely on knowledge management technologies (Bhatt, 2001). However, they met with limited success, and so questions began to be asked about whether knowledge management wasnt simply another fad that looked great on paper, but in reality did not deliver. In fact for a while, it looked as if knowledge management was destined to be confined to the management fad graveyard. However on closer inspection, companies realised that it wasnt the concept of knowledge management that was the problem as such, but rather the way that they had gone about approaching it (Dearlove, 2001). The greatest failing was the mechanistic thinking that pervades a lot of the actual practice. The default business model is the value chain and the most common analysis tool is still the process diagram. These are linear, mechanistic approaches based on the industrial age production line. Business and economic models are also based on old thinking (Bhatt, 2001). Many companies do fine on the technology needs for knowledge sharing but do nothing to support the social innovations of collaboration and communities of practice (Balthazard and Cook, 2004). In other cases, people focus only on communities of practice and don’t budget for the supporting technology and business infrastructure that is required. One recurring theme of much of the literature referred to in this paper is that knowledge and information services can no longer afford to be situated or operated as discrete or autonomous or semi-autonomous units simply servicing the rest of the organisation, but must increasingly participate in and contribute to the wider decision making and strategy-formulation activities of the organisation (Zack, 2001). Other notable themes include the need to encourage and develop the sharing of information in organisations, to emphasise the value of teamwork, groupwork and intranets, and activities related to the elicitation and creation of knowledge within organisations (Soliman and Spooner, 2000). Clearly, knowledge management is not something that can be lumped on top of how the organisation operates. Instead, is has to be carefully integrated with other systems. This requires time, energy, and consideration. Put simply, many companies have not taken this approach and have tried simply to add a knowledge management approach on top of other systems. It is this approach that has led to failures. Linking Knowledge Management to Organisational Goals Every initiative is a response to a particular goal or objective. Sometimes the goals are simply to improve access to knowledge resources around the company. That would probably require an information management approach. In the case of a product development group, however, collaborative tools and processes and knowledge-sharing activities with research partners might be more appropriate. One must always begin with the business question and objectives first. That is what shapes the initiative. Given that there is no generic initiative, there are clearly a lot of elements that come into play when a company decides to get serious about organisational knowledge. The problem is that many organisations do not take into account these factors. Without doing so, knowledge management is not linked effectively to what the organisation is trying to achieve and so cannot result in positive outcomes (Gorelick, Milton, and April, 2004). Knowledge management is one of many components of good management. Sound planning, savvy marketing, high-quality products and services, attention to customers, efficient structuring of work and thoughtful management of an organisations resources are all critical to compete in todays marketplace. Knowledge management may help create the competitive edge in todays global environment, but it is not the only answer (Rao, 2005). Measuring the Success of Knowledge Management Another complexity associated with a knowledge management system is determining success levels. Khoshsima, Lucas, and Mohaghan (2004) note that knowledge is an intangible asset, which makes it difficult to measure the success of knowledge management. The issue is complicated because despite this, knowledge management systems are often sold as a technology solution or a suite of technology tools that will realise a financial or traditional ROI return (McCampbell, Clare, and Gitters, 1999). In other words, the knowledge management initiative is sold as a way to reduce costs, increase revenue or improve productivity, all of which can be calculated in financial terms. But when you think about it, that is an incomplete picture of the value return for something as complex as a knowledge initiative. Financial measures only tell you about past performance - they say nothing about your ability to be successful five years from now. The bigger story about focusing on knowledge is how it can improve the underlying intangibles asset base of the organisation, where you are building capacity for the future. This improves human competence, supports innovation in infrastructure and operations, and builds trusting relationships with stakeholders. However, as long as an organisation is measuring its success based on old models and traditional return on investment measures, it may be completing missing the benefits and successes it is achieving (Bhatt, 2001). Conclusion With this analysis completed, several points have been made. The first important point is that knowledge management does have important benefits and does achieve the kind of outcomes that organisations are seeking in the current business environment. The second important point is that knowledge management is not simple and easy to implement. It is complex and has significant potential for success, but it does require thorough consideration and effective implementation. Whether knowledge management becomes a fad or an effective approach will depend on whether or not organisations are willing to take the time to make the knowledge management work. References Arthur, B., 1994. Increasing returns and path dependence in the economy. Ann Arbor, MI: University of Michigan Press. Balthazard, P.A., and Cook, R.A., 2004, Organizational cultural and knowledge management success: assessing the behavior-performance continuum. IEEE Management. < http://informationr.net/ir/81/paper145.html>, [accessed 12.04.05] Bhatt, G.D., 2001, Knowledge management in organisations: examining the interactions between technologies, techniques, and people. Journal of Knowledge Management, 5(1), 68-75. Dearlove, D., 2001. Knowledge management: Can it work? New York: BrownHerron Publishing. Drucker, P., 1993. Post capitalist society. New York: Harper Row. Gorelick, C., Milton, N., and April, K., 2004. London performance through learning: Knowledge management in practice. New York: Elsevier. Hirschheim, R. and Goles, T., 2002, The paradigm is dead, the paradigm is dead…long live the paradigm: the legacy of Burrell and Morgan. Omega: The International Journal of Management Science, 18, 249-268. Holtham, C., 1997, Will business knowledge management survive until the twenty-first century. In: Raitt, D.I., Blake, P., and Jeapes, B., eds. Online information 97. Proceedings. 21st International Online Information Meeting. London: 79-92. Ives, W., Torrey, B., and Gordon, C., 1998. Knowledge management: an emerging discipline with a long history. Journal of Knowledge Management, 1(4), 269-274. Koenig, M.E.D., 1996, Intellectual capital and knowledge management. IFLA Journal 22(4): 299-301. Knowledge management: Making it work, 1999. , [accessed 12.04.05] McCampbell, S.A., Moorhead Clare, L., and Gitters, S.H., 1999, Knowledge management: The new challenge for the 21st century. Journal of Knowledge Management, 3(3), 172-179. Malhotra, Y., 1998, Deciphering the knowledge management hype. Journal for Quality & Participation 21(4): 58-60. Manasco, B., 1996, Leading firms develop knowledge strategies. Knowledge Inc 1(6): 26-29. Nonaka, I., 1991, The knowledge-creating Company. Harvard Business Review November –December, 53-57. Peter, Y.T.S, and Scott, J.L., 2003, Exploring the divide organizational learning and learning organizational. The Learning Organization, 10(4), 202-215. Rao, M., 2005. Knowledge management tools and techniques. New York: Elsevier. Senge, P.M., 1990. The fifth discipline: The art and practice of the learning organisation. New York: Doubleday. Skyrme, D.J. Knowledge management: Making it work, 1999. , [accessed 12.04.05] Soliman, F., and Spooner, K., 2000, Strategies for implementing knowledge management: role of human resources management. Journal of Knowledge Management, 4(4), 337-345. Walshem, G., 2001, Knowledge management: The benefits and limitations of computer systems. European Management Journal, 19(6), 599-608. Zack, M.H., 2001, A strategic pretext for knowledge management. Boston, MA: Northeastern University. Bibliography Arthur, B., 1994. Increasing returns and path dependence in the economy. Ann Arbor, MI: University of Michigan Press. Balthazard, P.A., and Cook, R.A., 2004, Organizational cultural and knowledge management success: assessing the behavior-performance continuum. IEEE Management. < http://informationr.net/ir/81/paper145.html>, [accessed 12.04.05] Bhatt, G.D., 2001, Knowledge management in organisations: examining the interactions between technologies, techniques, and people. Journal of Knowledge Management, 5(1), 68-75. Dearlove, D., 2001. Knowledge management: Can it work? New York: BrownHerron Publishing. Dimitriades, Z.S., 2005, Creating strategic capabilities: Organisational learning and knowledge management in the new economy. European Business Review, 17(4), 314-324. Drucker, P., 1993. Post capitalist society. New York: Harper Row. Expertise management: Who knows about this?, 2004. , [accessed 12.04.05] Gorelick, C., Milton, N., and April, K., 2004. London performance through learning: Knowledge management in practice. New York: Elsevier. Dimitriades, Z.S., 2005, Creating strategic capabilities: Organisational learning and knowledge management in the new economy. European Business Review, 17(4), 314-324. Hirschheim, R. and Goles, T., 2002, The paradigm is dead, the paradigm is dead…long live the paradigm: the legacy of Burrell and Morgan. Omega: The International Journal of Management Science, 18, 249-268. Holtham, C., 1997, Will business knowledge management survive until the twenty-first century. In: Raitt, D.I., Blake, P., and Jeapes, B., eds. Online information 97. Proceedings. 21st International Online Information Meeting. London: 79-92. Ives, W., Torrey, B., and Gordon, C., 1998. Knowledge management: an emerging discipline with a long history. Journal of Knowledge Management, 1(4), 269-274. Khoshsima, G., Lucas, C., and Mohaghar, A., 2004, Assessing knowledge management with fuzzy logic. PAKM 2004: 425-432. Knowledge management - A fad or a ticket to ride, 2002. , [accessed 12.04.05] Knowledge management: Fad or analysis model, 1999. , [accessed 12.04.05] Knowledge management: New wisdom or passing fad?, 1999. , [accessed 12.04.05] Koenig, M.E.D., 1996, Intellectual capital and knowledge management. IFLA Journal 22(4): 299-301. Lilley, S., Lightfoot, G., and Amaral, P., 2004. Representing organization knowledge management and the information age. London: Oxford University Press. Loughridge, B., 1999, Knowledge management, librarians and information managers: fad or future? New Library World, 100(1151), 245-253. McCampbell, S.A., Moorhead Clare, L., and Gitters, S.H., 1999, Knowledge management: The new challenge for the 21st century. Journal of Knowledge Management, 3(3), 172-179. Malhotra, Y., 1998, Deciphering the knowledge management hype. Journal for Quality & Participation 21(4): 58-60. Malhotra, Y., 1998, Deciphering the knowledge management hype. Journal for Quality & Participation 21(4): 58-60. Nonaka, I., 1991, The knowledge-creating Company. Harvard Business Review November –December, 53-57. Manasco, B., 1996, Leading firms develop knowledge strategies. Knowledge Inc 1(6): 26-29. Peter, Y.T.S, and Scott, J.L., 2003, Exploring the divide organizational learning and learning organizational. The Learning Organization, 10(4), 202-215. Ragsdell, G., West, D., and Wilby, J. (eds), 2002. Systems Theory and Practice in the Knowledge Age. New York: Kluwer Academic. Rao, M., 2005. Knowledge management tools and techniques. New York: Elsevier. Rowley, J., 1999, What is knowledge management? Library Management, 20(8), 416-419. Senge, P.M., 1990. The fifth discipline: The art and practice of the learning organisation. New York: Doubleday. Skyrme, D.J. Knowledge management: Making it work, 1999. , [accessed 12.04.05] Soliman, F., and Spooner, K., 2000, Strategies for implementing knowledge management: role of human resources management. Journal of Knowledge Management, 4(4), 337-345. So what is knowledge management anyway?, 2003. , [accessed 12.04.05] Walshem, G., 2001, Knowledge management: The benefits and limitations of computer systems. European Management Journal, 19(6), 599-608. Zack, M.H., 2001, A strategic pretext for knowledge management. Boston, MA: Northeastern University. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Knowledge Management: Here to Stay or Management Fad Essay”, n.d.)
Knowledge Management: Here to Stay or Management Fad Essay. Retrieved from https://studentshare.org/psychology/1534063-knowledge-management-here-to-stay-or-management-fad
(Knowledge Management: Here to Stay or Management Fad Essay)
Knowledge Management: Here to Stay or Management Fad Essay. https://studentshare.org/psychology/1534063-knowledge-management-here-to-stay-or-management-fad.
“Knowledge Management: Here to Stay or Management Fad Essay”, n.d. https://studentshare.org/psychology/1534063-knowledge-management-here-to-stay-or-management-fad.
  • Cited: 0 times

CHECK THESE SAMPLES OF Knowledge Management: Here to Stay or Management Fad

Knowledge management

This research is aimed at understanding what knowledge management is.... hellip; According to the research findings knowledge management has greatly influenced growth of businesses in which it is effectively applied.... The paper tells that the aim of knowledge management is to create a connection between people's knowledge and actions they need in particular situations.... According to Binney knowledge management entails making known to you what you know, what you have no idea of and at the same time striving to create sense of what you know....
8 Pages (2000 words) Essay

Implementation of Knowledge and Innovation within Facebook

hellip; When one discusses the tangent of knowledge management and innovation with regards to Facebook, this is one phenomenon that has helped shape up the modern times (Towner and Munoz, 2011).... This paper specifically takes a look at how Facebook forms a vital link between the teachers and their students through the knowledge management domains, and the role of this social networking tool within the norms and routines of the teenagers who will grow up to experience a totally unique and different life from what their forefathers saw....
10 Pages (2500 words) Assignment

Knowledge Management

In this paper “knowledge management” the writer analyzes the definitions of knowledge management given by influential management experts.... knowledge management is amongst one of them.... knowledge management is amongst one of them.... “Now here, you see, it takes all the running you can do to keep you in the same place....
7 Pages (1750 words) Essay

Management in Electronic Patient Record System

The author gives the results of an interview with the chief information officer (CIO) of the company, Tom Smith, who discusses the company's updated use of information technology as a management achievement. … The article would appear to be a one-sided view of the results obtained in developing Epic's software.... Baker says that Smith attributes the success of Epic at ENH to the commitment of management to make it a priority.... In fact, most of the credit is given to management, even though cooperation of staff appeared to be very much a contributing factor....
3 Pages (750 words) Essay

The Project Management Body of Knowledge

The aim of the paper “The Project management Body of Knowledge» is to define the term of project management, some of the models and theories of project management, to find out the factors that can interfere prosperous management and give advice how to facilitate successful project management.... nbsp; The management Development and Productivity Institute (1989) has defined project management as the use of administrative techniques and the creation of a good working climate for the achievement of the set goal(s)....
3 Pages (750 words) Assignment

RBV Concept in Theory

Because of its simplicity, engineers find it easy to understand the management perspective behind enterprises.... The subject of economics teaches us many insights into a firm's operations and provides us the tools that permit an analysis and measurement of its performance.... Analysis of operations and performance measurement helps to find solutions to all issues beginning with investment… Some of the prominent concepts that come to one's mind are Michael E....
5 Pages (1250 words) Essay

Diet Fads and Facts

"Diet Fads and Facts" paper focuses on a term that is related closely with food faddism or fad diet as one might call it.... here are a few instances where food faddism has got a direct link with child abuse and its basis.... This term takes its basis from the idiosyncrasies related to diets and the intake of food as well as the different and irregular eating habits/patterns....
6 Pages (1500 words) Article

People Resourcing and Business Management

The essay “People Resourcing and Business management” will look at the process of managing people in an organization in a proper and a systematic manner.... People resourcing or HR includes the management of people from hiring them to their pay scale.... We are not sure that the company right here right now would be here either in the same state or totally out of sight....
12 Pages (3000 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us