BHR 1203 Administrative and Office Management
Topic: Knowledge Management
What is Knowledge Management?
● It is a process of acquiring,
accumulating and using knowledge for
the benefit of the organization to
enable it to gain a competitive edge for
survival, growth and prosperity in a
globalized competitive economy.
● It is the process of capturing,
developing, sharing and effectively
using organizational talents. It
emerged as a scientific discipline in the
earlier 1990s, which was supported by
experiments with the objectives to
manage and maximize the intangible
assets of their organizations.
** Intangible assets = no physical existence,
can’t be perceived by senses but have a
current and future value**
● It refers to a multidisciplinary
approach to achieving organizational
objectives by making the best use of
talents.
● According to the Management
Dictionary, It overlaps with
organizational learning and may be
distinguished from that by a greater
focus on the management of
knowledge as a strategic asset and a
focus on encouraging the sharing of
knowledge. It is typically focused on
organizational objectives such as
improved performance, competetive
advantage, innovation, the sharing of
lessons learned, integration and
continuous improvement of the
organization.
● “Knowledge management is a bad
term; as much as knowledge cannot be
managed” - Peter F. Drucker
Knowledge Management requires
conditions for the emergence of a
learning organization; which is
necessary for generation, sharing and
use of knowledge residing in the minds
of the people.
Salient features of Knowledge Management
Types of Knowledge: Explicit and Implicit
● Explicit knowledge is visible
information that can be found in
literature, reports, patents, technical
specifications, communication with
customers, suppliers, competitors etc.
It can be embedded in rules, systems,
policies and procedures of the
organization.
● Implicit (Tacit) knowledge is personal
knowledge residing in the minds of
people as a result of their personal
beliefs, values, perspectives and
experience. There is a need for a
learning organization for
enhancement, sharing and utilization
of tacit knowledge.
Systematic Process
● Standardized procedures to collect,
store, distribute and use knowledge.
● The essence of Knowledge
Management is to get the right people
at the right time.
Continuous Process
● The world economy is dynamic and
ever changing. It requires constant
creation of new skills and capabilities
and improvement of existing ones.
Whole-hearted support from management
● Required in order to provide cultural
and technical foundation for the
origination and implementation of
Knowledge Management practices.
For Improvement
● Knowledge Management’s objective is
to improve organizational
performance; to enable the
organization to acquire, sharpen and
to utilize its competitive edge for
survival and growth in the global
economy of today .
Knowledge Management and Information
Technology
● Knowledge Management is not an
outgrowth of Information Technology
Knowledge Management
● Requires human skills, creativity and
innovative capabilities
Information Technology
● IT tools like Intranets, Lotus Notes,
MS-Exchange etc., which provides an
infrastructure for the free play of
human creativity and innovative
powers for the formulation of
corporation strategy, in a competitive
globalized environment.
Knowledge Management Process
● Identification of Knowledge Needs
● Determination of Knowledge Assets
● Generation of Knowledge
● Knowledge Storage
● Knowledge Distribution
● Knowledge Utilization
● Feedback on Knowledge Management
Identification of Knowledge Needs
Identification of what kind of
knowledge is required for the successful
designing and implementation of corporate
strategy.
Determination of Knowledge Assets
Management must identify what are
the knowledge assets of the organization,
which are basically the competitors,
suppliers, government agencies, products and
processes, technology, etc. Management must
plan to get maximum returns out of
knowledge assets.
Generation of Knowledge
Acquisition of knowledge through
knowledge assets e.g, knowledge about new
products (from competitors), new
technologies, social, economical, political
changes. This also requires transformation of
raw information into knowledge, useful to
solve business problems.
Knowledge Storage
This includes preserving existing and
acquired knowledge in knowledge
repositories.
**Knowledge Repositories = an online
computer based storehouse of organized
information about a particular domain of
knowledge**
Knowledge Distribution
A process which allows members of the
organization to have access to the collective
knowledge of the organization.
Knowledge Utilization
This requires embedding knowledge in
products, processes, procedures, etc. of the
organization. Takes place when managers
utilize knowledge in organizational decision
making. A learning organization creates
conditions for sharing and utilizing
knowledge in organizational contexts.
Feedback on Knowledge Management
This is evaluating the significance of
knowledge assets. It also includes impact of
Knowledge Management on organizational
performance; and devising techniques for
betterment of Knowledge Management in the
future.
Significance of Knowledge Management
● Building and Sharpening Competitive
Edge
● Betterment of Human Relations
● Improvement in Organizational
Efficiency
● Enhancement of Human Capital
Capabilities
● Enhancement of Enterprise Goodwill
Building and Sharpening Competitive Edge
Knowledge Management enables a
corporation to build and sharpen competitive
globalized economy. KM aided by IT Tools
enables a corporation to design and
implement most appropriate corporate
strategies.
Betterment of Human Relations
Knowledge Management is built on the
knowledge generated, shared and utilized
through a learning organization. A learning
organization through facilitating interaction
among people of the organization, leads to
betterment of human relations, a very big
permanent asset an organization can boast of
to possess.

Improvement in Organizational Efficiency

Knowledge Management provides
knowledge which can be embedded in
organizational processes. It makes knowledge
available for decision making purposes. It also
helps to improve organizational efficiency,
which results to reduced costs and increased
profits.

Enhancement of Human Capital Capabilities

Knowledge Management’s concepts
and practices motivate people to enhance
their intellectual capabilities, resulting in new
skills and improvement of existing skills.
Knowledge Management does not only
enhance the intellectual elements of people,
but also indirectly prevents depreciation of
human capital.

Enhancement of Enterprise Goodwill

Knowledge Management practices help
an enterprise enhance its goodwill in the
global market, enabling it to acquire more
success and prosperity