Lecture notes on Knowledge Management

what is knowledge management strategy and process and what are knowledge management tools and framework,what is your knowledge management strategy
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PONDICHERRY UNIVERSITY (A Central University) DIRECTORATE OF DISTANCE EDUCATION Knowledge Management Paper Code : MBHR 3003 MBA - HUMAN RESOURCE MANAGEMENT III SemesterAuthor Dr. S. Sundaramurthy Reddy, Professor, Dept. of Management Studies, Rajiv Gandhi College of Engineering and Techology, Puducherry. Edited by Prof. M. Madhusudhana Rao, Professor, Department Of Commerce & Management Studies, College Of Arts & Commerce, Andhra University. © All Rights Reserved For Private Circulation Only ISBN No. 978-93-81932-02-5 TABLE OF CONTENTS UNIT LESSON TITLE PAGE NO. 1.1 Introduction to Knowledge Management 3 1.2 An Introduction to Life in Organization 19 Concept and Characteristics of Knowledge Based I 1.3 26 Organization 1.4 Dimensions of Knowledge Management 32 1.5 New Roles and Challenges for HRM in the KBOS 36 2.1 Managing Knowledge for Organizational Effectiveness 59 2.2 Intellectual Capital and Learning Organizations 71 II 2.3 Knowledge and Role Related Issues 83 2.4 Performance Appraisal in KBO 86 2.5 Intellectual Property Rights (IPR) 104 3.1 Managing Knowledge and OPH 115 III 3.2 Management of Retention in KBO 143 4.1 ICT’S in HRM IN KBO 153 IV 4.2 Human Resource Information System (HRIS) 163 4.3 Performance Management 174 5.1 Technologies to Manage Knowledge 191 5.2 Artificial Intelligence 196 Knowledge Management, Artificial Intelligence, and V 5.3 205 Information Systems Issues 5.4 Digital Libraries 217 5.5 Knowledgde Discovery 222Notes MBA(HRM) - III Semester Paper Code: MBHR 3003 PAPER – XIII Knowledge Management Objectives ➢ To familiarise the concepts of Knowledge Management. ➢ To understand the challenges of Knowledge Based Organisations and the HR mechanisms to manage them effectively. ➢ To identify the importance of the values of autonomy and accountability in Knowledge based organisations. Unit - I Introduction to Knowledge Management - Knowledge Society - Types of Knowledge - An Introduction to life in organizations - Concept and Characteristics of KBOs - Dimensions of HRM in KBOs - New Role and Challenges for HRM in the KBOs. Unit - II Managing Knowledge for organizational effectiveness - Process and Methods- Concept of Intellectual Capital and Learning Orientation in the Organizations - Knowledge and Role related issues - Performance Appraisal in a KBO - Intellectual Property Rights (IPR). Unit - III Managing Knowledge and Personnel & Organizational Health - Rewarding Knowledge - Management of Retention. 1Notes Unit - IV ICTs in KBOs - HRIS for KBOs - Concept, Mechanisms, and Software Orientation - Performance Management – Mechanisms. Unit - V Technologies to Manage Knowledge – Artificial Intelligence – Digital Libraries – Repositories – Knowledge Discovery – Creating Systems that Utilize Knowledge - Knowledge Process Outsourcing - Innovation Clusters. References Frances Horibe, MANAGING KNOWLEDGE WORKERS, John Wiley & Sons Fernandez & Leidner, KNOWLEDGE MANAGEMENT, PHI Learning, New Delhi,2008 Ganesh Natarajan and Sandhya Shek har, KNOWLED GE MANAGEMENT - ENABLING BUSINESS GROWTH, Tata McGrawHill, New Delhi Mruthyunjaya, KNOWLEDGE MANAGEMENT, PHI Learning, New Delhi, 2011 2Notes UNIT – I Learning Objectives After learning this unit, the students will understand the concepts of ➢ Knowledge management ➢ Knowledge society ➢ Types of knowledge ➢ Challenges of HRM in Knowledge based organizations. ➢ Characteristics of knowledge management ➢ Concept of knowledge management ➢ New roles in knowledge based organizations Unit Structure Lesson 1.1 Introduction to Knowledge Management Lesson 1.2 An Introduction to Life in Organization Lesson1.3 Concept and Characteristics of Knowledge Based Organization Lesson 1.4 Dimensions of Knowledge Management Lesson 1.5 New Roles and Challenges for HRM in the KBOS Lesson 1.1 - Introduction to Knowledge Management In today’s current business scenario, knowledge is not a mere product but a great capability. It is a multi faceted resource. The ability, skills and commitment of the knowledge workers are the key for success of any organization. We are moving toward a post industrial or post bureaucratic society where knowledge and information drive economic growth. This is 3Notes where HRM should respond to the changes brought from the traditional to knowledge based organization. If it is not so, then the HRM might face crisis. This is believed by most of HRM experts due to the radical developments in information and knowledge based services in recent years. Knowledge management is a discipline that treats intellectual capital as a management asset. Unlike other assets it doesn’t require specific procedures to utilize them. Knowledge is an idea created from various sources and how those ideas can help to improve the organizational effectiveness. In other words knowledge management system aims to get right information to the right people at the right time, thereby providing them tools for analysis of information and respond to them at a faster rate. By analyzing the information it gains insight to the information and developing methods to achieve the goals of the organization effec- tively. The following are some of the reasons which led to the interest in knowledge management: 1. The valuation of the companies is dependent on their fixed asset rather than their management skills. 2. Most of the time in the past the investors invest in the organization based upon what they perceive about the organization. 3. Meaner organizations. Definitions of Knowledge Management I) “The physical toil of manufacturing is being replaced by a world where we work more with our brains than our hands” - Sewell ii) Knowledge management refers to identifying and leveraging the collective knowledge in an organization to help the organization to compete with their competitors. 4Notes iii) “Knowledge management (KM) is an effort to increase useful knowledge within the organization. Ways to do this include encouraging communication, offering opportunities to learn, and promoting the sharing of appropriate knowledge artifacts” - McInerney, C. iv) “KM Knowledge Management involves blending a company’s internal and external information and turning it into actionable knowledge via a technology platform” - Susan DiMattia and Norman Oder Nature of Knowledge Management Knowledge management draws upon a vast number of diverse fields such as: ➢ Organizational science. ➢ Cognitive science. ➢ Linguistics and computational linguistics. ➢ Information technologies such as knowledge- based systems, document and information management, electronic performance support systems, and database technologies. ➢ Information and library science. ➢ Technical writing and journalism. ➢ Anthropology and sociology. ➢ Education and training. ➢ Storytelling and communication studies. ➢ Collaborative technologies such as computer supported collaborative work and groupware, as well as intranets, extranets, portals, and other web technologies. This list is by no means exhaustive, but it serves to show the ex- tremely varied roots that gave life to KM and continues to be its basis today. Figure illustrates some of the diverse disciplines that have contrib- uted to KM. 5Notes The multidisciplinary nature of KM represents a double- edged sword. On the one hand, it is an advantage because almost anyone can find a familiar foundation on which to base their understanding and even practice of KM. Someone with a background in journalism, for example, can quickly adapt his or her skill set to the capture of knowledge from experts and reformulate them as organizational stories to be stored in corporate memory. Someone coming from a more technical database background can easily extrapolate his or her skill set to design and implement knowl- edge repositories that will serve as a the corporate memory for that or- ganization. Interdisciplinary Nature of Knowledge Management Database Collaborative technologies Help Desk technologies Systems Organizational Cognitive sciences science Electronic Performance Technical Support Systems Writing Document and Information management Artificial Intelligence Library and Decision Information Web Support Technologies Sciences Systems 6 can be distinguished from others. knowledge management both as a discipline and as a field of practice that attributes are necessary and are in themselves sufficient to constitute It becomes very important to be able to list and describe what set of Management)” or “KM is nonsensical – it is just good business practices.” is typically represented by phrases such as “KM is just IM (Information be a separate discipline with a unique body of knowledge. This attitude respect to boundaries. Skeptics argue that KM is not and cannot said to However, the diversity of KM also presents some challenges with Discipline KM Notes Reasons for Developing Knowledge Management ➢ Nearly 60% of the job requirements need knowledge ➢ Knowledge works have high demand ➢ The knowledge workers can do the job effectively than traditional workers ➢ The success factor in today economy is knowledge ➢ Knowledge is power and it is very scarce Challenges Faced by the Organization The key challenges faced by any organization are listed below: 1. How to attract customer and service them in the world of internet and electronic commerce? 2. How to transfer the technology and use them according to the customer wants and develop the organization? 3. How to re-engineer the mindsets of employees and motivate them and develop the organization into a learning organization? This is due to the fact that the application of knowledge and practice of knowledge management will be able to create excellent results in the organization. In current business scenario of value addition, products to customers and value creation to stake holders and technology capabilities at various levels of organization can be effectively managed with the help of knowledge management. Knowledge Society Earlier the term knowledge society was known as information society or post industrial society. The term knowledge society was coined by UNESCO towards the end of 90’s. The general sub director of UNESCO Mr. Abdul Waheed Khan quoted as given below: “Information society is the building block for knowledge societies. Whereas I see the concept of information society as linked to the idea of 7Notes technological innovation, the concept of knowledge societies includes a dimension of social, cultural, economic and political transformation and more a pluralistic and development perspective”. The knowledge rhetoric is used to shape business and educational policy in the United Kingdom. Then in late 90’s the academics were keenly interested in knowledge management and drafted various articles about knowledge management. The knowledge management has been analyzed in the mid of 70’s because society in 70’s was knowledge and information intensive. Society can be categorized into 3 namely: 1. Pre industry society 2. Industry society 3. Post industrial society Knowledge Society 8Notes 1. Pre Industrial Society ➢ This society is where the mankind started its civilization. ➢ They never used machines to produce goods. ➢ They used manual (hand) techniques to produce the goods. ➢ They were ruled by kings and military leaders. 2. Industrial Society ➢ This is the era when the industrialization was blossoming after the world war. ➢ The machines were invented and the manufacturing industries developed at an unprecedented rate. ➢ The people were ruled mostly by their democratic leader. ➢ The importance was given to process rather than information. 3. Post Industrial Society The post industrial society can be defined as “A society where the service sector is dominant and knowledge based goods or services have replaced industrial and manufactured goods as the main wealth generation”. th ➢ This society is gaining momentum in the start of 20 century. ➢ The people started giving importance to service sector rather than manufacturing sector. ➢ In this era knowledge is power. ➢ The most knowledge people were given respect in this society The main character of this society is that the knowledge is used as a main resource for wealth creation. The following diagram gives as an idea of characteristics of post industrial society. Mr. Daniel Bells in his book named “The coming of post industrial society” published in the year 1973 described his analysis based upon the 9Notes typology of societies. These societies are characterized by their mode of employment. In the industrial society there are characterized by the manufacturing where as in post industrial society it was characterized by service sector. Mr. Daniel Bells in his book named “The coming of post industrial society” published in the year 1973 described his analysis based upon the typology of societies. These societies are characterized by their mode of employment. In the industrial society, they are characterized by the manufacturing whereas in post industrial society it was characterized by service sector. Service based Knowledge and economy life information intensity of economic/social Post industrial society Growing importance of Theoretical knowledge in work. The Post industrial society Another important factor stated by Mr. Bells is that the knowledge and information play a vital part in the post industrial society. He also suggests the quantity as well as the quality of the knowledge is considered important by the people. The knowledge will be used of development use and theoretical knowledge to perform work like research & development. The table below compares the pre industrial, industrial and post industrial society. 10Notes Basis Pre industry Industry Post industry Resource Land Machinery Knowledge Social Farm, Business firm University, research locus plantation institute Dominant Landowner Business Scientist researcher figures military people Means of Direct Indirect Balance of technology power control control and political force. Class base Property Property Technical skill Access Inheritance Inheritance, Education seizure by patronage mobilization armies and education cooptation In this society the knowledge workers (employees) will have more satisfying work and they will perform the work individually and also in group. Morozoff suggests the drastic development and usage of computer has led to more knowledge intensive environment and the transition from industrial era to post industrial society will result in increased employ- ment opportunities. The service sector provides a variety of job opportunities like consultants, researchers, cleaners, marketing executives, etc. Some of the jobs require knowledge whereas other jobs are repetitive and require less skills to perform the job. Therefore all service sector jobs are not knowledge intensive. One of the key features in knowledge management literature relates to epistemology and social order. The term epistemology refers to the knowledge management, its benefits and its criticism. The diagram below shows the Epistemology of knowledge management 11Notes Epistemology Duality Dualism Dialogic Discourse Critical Discourse Knowledge as discipline people Knowledge as power knowledge is in ongoing resist to change total- asset in conflict between manage- izing knowledge claims theories: ment and workers post structuralism, postmodern. Theories:labour process theory. Constructivist Discourse Neo Functionalist Discourse Knowledge as mind organization Knowledge as asset as distributed knowledge system, Knowledge development and used with knowledge embedded in in organizations seen as unques- work practices tionably positive and progressive. Theories: practice based Theories: Resource/knowledge based view. The above table was given by Schultz & Stab ells; they say there are four disclosures namely Dialogic Discourse The Knowledge society and its objectives 12Notes Types of Knowledge “We know more than we can tell” ➢ Polanyi. The term knowledge means skill or information acquired either through education or experience. The knowledge can be broadly classified into two types 1. Tacit knowledge 2. Explicit knowledge Tacit Knowledge ➢ The word tacit means understood and implied without being stated. ➢ The tacit knowledge is unique and it can’t explain clearly. ➢ That is the knowledge which the people possess is difficult to express. ➢ The cognitive skills of an employee are a classic example of tacit knowledge. ➢ The tacit knowledge is personal and it varies depending upon the education, attitude and perception of the individual. ➢ This is impossible to articulate because sometimes the tacit knowledge may be even sub conscious. ➢ This tacit knowledge is also subjective in character. ➢ This knowledge is exhibited by the individual automatically. ➢ They utilize this knowledge without even realizing it. 2. Explicit Knowledge ➢ The word explicit means stated clearly and in detail without any room for confusion. ➢ The explicit knowledge is easy to articulate and they are not subjective. ➢ This is also not unique and it will not differ upon individuals. ➢ It is impersonal. ➢ The explicit knowledge is easy to share with others. 13Notes Both explicit and tacit knowledge are compared in below table: Basis Tacit knowledge Explicit knowledge Characteristics Inexpressive in a cod- It can be expressed in cod- ified form ified manner Subjective Objective Personal Impersonal Context specific Easy to share Conscious Unconscious It cant be recorded It can be recorded Properties Ability to adapt, to Ability to disseminate to deal with new and ex- reproduce the access and ceptional situations. to reapply throughout the organization Expertise, know-how, Ability to teach and train. know-why and care – why. Ability to collaborate, Ability to organize, to sys- to share a vision, to tematize; to translate a vi- transmit a culture. sion into a mission state- ment into operational guidelines. Coaching and mentor- Transfer of knowledge ing to transfer experi- via products, services and ential knowledge on a documented processes. one – to-one, face-to- face business. Some people argue that the knowledge does reside with individuals, they also think that knowledge also reside in social groups. This led to classify knowledge into two type’s namely individual and social level knowledge. Mr. Spender combined this type of knowledge with explicit and tacit knowledge and formed a matrix named generic knowledge types which are illustrated below: 14Notes Generic knowledge type Individual Social Explicit Conscious Objectified Tacit Automatic Collective Objectified knowledge refers to the explicit knowledge in social groups. Operating procedures of a machine or preparing the documents according to the rules is an example for objectified knowledge. This objectified knowledge can be disseminated to others clearly. Collective knowledge is a social group which possesses tacit knowledge. The values and the beliefs of the society can be codified clearly which is an example for collective knowledge. Environmental Scanning ➢ In order to keep them updated with the external environment the organization always carry out environmental scanning frequently. ➢ Environment scanning is the process of monitoring the external environment. ➢ This is because the external environment has a greater impact on the organization. ➢ By scanning the environment frequently we can know what the customer wants and how our competitors cope with the changes of the competitors. The following external factors are watched carefully during the environmental scanning: ➢ Economic factors ➢ Technological factors ➢ Political factors ➢ Socio cultural factors 15Notes Economic Factors ➢ It refers to all those economic factors which have a bearing on the functioning of a business. ➢ The economic factors and business are mutually interdependent. ➢ The various economic factors with respect to Indian economic environment are listed below diagram: Industrial Foreign Technology Public Policy Licensing Agreements Sectors Monopolies and Foreign Privatization Small Scale restrictive Trade Trade Practices Industries Financial Income Five - Year Agricultural Sector Levels Plans Sector Money and Credit Government G Service Law and Order B B Voluntary O Inspection and programs Licenses U U V Infrastructure Taxes S S E Growth I I R Tariffs and Quotes Information N N N Information Contracts E E M Small Industries The responsibilities between Government and Business 16

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