Knowlegde management

Topics: Knowledge management, Knowledge, Tacit knowledge Pages: 21 (1507 words) Published: June 1, 2014
MGB200 – Leading Organisations
Semester 2, 2013

“Knowledge is experience. Everything else is just
Albert Einstein

Learning Objectives
After studying this week’s content you should be able to:




Define knowledge management, intellectual capital, and
organisational learning.
Identify specific ways that organisations acquire and share
Describe the knowledge creation process.
Explain the role of trust in knowledge sharing.
Identify organisational features which facilitate organisational learning.

Lecture Overview

What is knowledge management?

Knowledge creation process

Tacit and explicit knowledge
Nonaka & Takeuchi

Knowledge sharing

Definitions, history, and benefits

Ability and willingness

Organisational learning

Data – Information - Knowledge



a set of discrete,
objective facts about


data endowed with
relevance and purpose


a fluid mix of framed
experience, values,
contextual information and
expert insight.

Source: Davenport & Prusak, 1998.

Knowledge is:

justified true beliefs (Nonaka, 1994, p.15)

the individual’s ability to draw distinctions within a
collective domain of action, based on an appreciation
of context or theory, or both (Bell, 1999, p.lxiv)

information that is relevant, actionable and at least
partially based on experience (Leonard & Sensiper, 1998,

a fluid mix of framed experience, values, contextual
information and expert insight (Davenport & Prusak, 1998,

Knowledge Management
“is the management of information, knowledge and
experiences available to an organisation in order
that organisational activities build on what is already
known and extend it further” (Mayo, 1998)

Increased productivity:

Greater utilisation of organisational knowledge base
Reduction of redundancy & time searching for info.
Increased organisational cohesion & cooperation
Greater organisational learning

KM Proposed Benefits

Increased productivity

Reduction of duplication and
time searching for

Wider application of
organisational knowledge

Reduction of pressure to do
more with limited resources

Organisational learning
through building on others’
learning curves

Increased morale through
greater cooporation

Improved organisational
communication and

Where did KM come from?
Three Social and Economic Trends
1. Globalization
– complexity, volume, speed puts pressure on ‘what do we know, who knows it, what don’t we know that we should know’.
2. Ubiquitous computing
– premium value on knowledge that cannot be digitized, codified or easily distributed.
3 Knowledge-Centric View of the Firm
– economists, strategists, commentators agree that the firm’s main building blocks of capability is knowledge (especially
knowledge that is specific or ‘tacit’)
(Prusak, 2001)

Intellectual Capital
Knowledge residing in the organisation—sum of its:
Human Capital

Knowledge that people possess
and generate

Social Capital

Knowledge, trust, and norms of
reciprocity in one's social network

Structural Capital


Knowledge captured in systems
and structures
Values derived from satisfied
customers, reliable suppliers, etc.

Knowledge Management Processes



• Hiring talent

• Communication

• Awareness

• Acquiring firms

• Communities of

• Freedom to apply

• Individual learning
• Experimentation

Developing a Learning Orientation

Value the generation of new knowledge
Reward experimentation
Recognise mistakes as part of...

References: Constant, D., Kiesler, S., & Sproull, L. (1994). What’s mine is ours, or is it? A study of attitudes about
information sharing
Cowan, R., David, P. A., Foray, D. (2000) 'The Explicit Economics of Knowledge Codification and
Tacitness ', Industrial and Corporate Change 9(2): 211-253.
Crossan, M. M., H. W. Lane, and R. E. White. 1999. An organizational learning framework: from intuition
to institution
Davenport, T. H., & Prusak, L. (1998). Working knowledge: how organizations manage what they know.
DeLong D. W., & Fahey, L. (2000). Diagnosing cultural barriers to knowledge management. Academy of
Management Executive, 14(4), 114-127.
Dirks, K. T., & Ferrin, D. (2001). The role of trust in organizational settings. Organization Science, 12,
Grant, R. M. (1996) 'Toward a Knowledge-Based Theory of the Firm ', Strategic Management Journal
17(winter): 109-122.
McDermott, R., & O’Dell, C. (2001). Overcoming cultural barriers to sharing knowledge. Journal of
Knowledge Management, 5(1), 76-85.
Nonaka, I. & Takeuchi, H. (1995). The Knowledge-Creating company. Oxford University Press: New
Pfeffer, J., Sutton, R. I. (1999) 'Knowing "What" to Do Is Not Enough: Turning Knowledge into Action ',
California Management Review 42(1): 83-108.
Polanyi, M. (1967) The Tacit Dimension. London: Routledge.
Weiss, L. (1999). Collection and connection: The anatomy of knowledge sharing in professional service
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