New Technology Work and the Economy - Coursework Example

New Technology Work and the Economy Introduction We live in a world that relies heavily on technologies for simple day to day activities. Technology has not only infiltrated people’s personal lives, it is also very useful in business. New technology has made many organizations to change the way they perform their duties. This technology has made it important for organizations to look for ways through which they can effectively manage the technology and the knowledge that comes with it (Baldry, 2008). Knowledge management is a very important issue for industry, information technology and government as well. It complements other organizational management indicatives in providing a focus on the sustenance of competitive advantage. Every company has its own unique knowledge management strategy. To understand how knowledge management affects work and the economy, it is important to understand what it is in all aspects (Christensen, 2003). What is Knowledge Management? There is no universal definition of knowledge management, but a few experts have tried to put to words what this kind of management entails. Knowledge management is the term used to refer to the “collection of processes that govern the creation, dissemination, and utilization of knowledge” (Newman, 2002). It can also be said to be the systematic process by which information is found, selected, organized, distilled and presented. This systematic process is carried out in a way that serves to improve the employees’ understanding of a particular area of interest. In other words knowledge management is a process that should be used to enhance the objectives and goals of the organization (Nonaka, 2002). Knowledge management allows an organization to achieve its goals and objectives. This means that knowledge management is an important factor that contributes to the organization’s long term success without putting too much strain on the existing resources. All the different definitions are similar in that they emphasize the importance of the organization as a whole in the process of knowledge management. Most of the definitions point out that knowledge emanates from individuals and that not a single one of them knows everything. It is therefore important to manage all this knowledge so that everyone on the organization can gain something from one another (Christensen, 2003). Effective Knowledge Management in the Organization The aim of any organization is to ensure that it is as profitable as possible. Mnprofitability can be achieved through many ways, including proper knowledge management. Effective knowledge management makes it possible for a company to serve customers to the best of its ability. When knowledge is well managed within an organization, there is normally a reduction in cycle times and the company is able to operate with minimal overhead and fixed assets (Nonaka, 2002). Effective knowledge management also helps a company to reduce the time it takes to develop a product, make customer relations better, empower its employees, encourage adaptation and flexibility and capture, create, share and learn new information (Baldry, 2008). For knowledge management to be effective, there are a number of considerations that need to be taken very seriously. Some managers tend to think that by just outlining some high level goals, they can create a knowledge enabled organization. What many of these managers fail to understand is that it is the organization’s specific needs and issues which determine how to apply knowledge management strategies for the best results. Knowledge management has to be considered in three perspectives: Business, management and hands–on operational perspective. Following the business perspective, knowledge management needs to focus on the where and why the organization needs to invest in knowledge. The business perspective also looks at the extent to which the organization has to exploit or make an investment in knowledge. This means that the business aspects of products and services, strategies, acquisitions, alliances and divestments should be guided by knowledge-based points of view (Newman, 2002). The management perspective focuses on the process of determining, organizing, facilitating, directing and monitoring practices that are knowledge related. This process is important in helping the organization achieve its business objectives and strategies. The hands-on operational perspective focuses on the organizational expertise in conducting knowledge related tasks (Stary, Barachini and Hawamdeh, 2007). Knowledge management can also be categorized into three other different perspectives. These are: the techno-centric perspective, organizational perspective and the ecological perspective. The techno centric perspective focuses on the technology which is used to enhance the creation and sharing of knowledge. Organizational perspective puts an emphasis on how organizations may be designed so as to best knowledge processes. The ecological perspective deals with the interaction of people, knowledge, identity as well as environmental factors that may influence knowledge management in the organization (Nonaka, 2002). Effective knowledge management should work hand in hand with other forms of organizational management in order to yield maximum results. This will enable the organization to attain and sustain a competitive advantage. When companies are serious about their knowledge management, they are at better position to contribute significantly to the economy since their productivity is at the maximum level (Christensen, 2003). The knowledge manager has to make knowledge visible to everyone in the organization. Making people aware that there is something new for them is important in knowledge management as it determines how well the knowledge will be received within the organization. The manager also needs to build knowledge intensity and not rely on the initial knowledge that the organization has (Stary, Barachini and Hawamdeh, 2007). The development of a knowledge culture is also very important in ensuring that everybody feels comfortable sharing and retrieving new information. Finally for knowledge management to be effective there is need to build a firm knowledge infrastructure that will ensure that the knowledge is well stored within the organization. This will enable any individual within the firm to access the information he or she needs without a problem (Newman, 2002). Knowledge Management Strategies and Motivation In most Cases, knowledge can be accessed at 3 stages: this could be before, after or during knowledge management related activities. One of the best strategies for knowledge management is known as the push strategy. This is where knowledge is actively managed. Employees or any other individuals in an organization all share their information through a knowledge repository, which can be a database. The individuals also are free to retrieve the information that other people have stored in the repository. This approach to knowledge management is known in some places as the Codification approach (Nonaka, 2002). Another strategy of Knowledge management involves seeking knowledge from known experts in certain fields. This strategy is also known as the Pull strategy. In these instances, the expert individuals normally provide insights about a situation to the person who is seeking the knowledge or information. This kind of approach is known as the personalization approach to knowledge management (Coakes, 2003). Other strategies for knowledge management include rewards and knowledge mapping. Rewards can be used as a way of motivating for the purpose of sharing knowledge. Knowledge mapping is a good strategy as it allows the individuals in the organization to know where to get information when they need it. Story telling can be used as a knowledge management strategy whereby knowledge is passed on from one individual to another in a tacit manner. Other strategies that an organization can adopt for knowledge management include: after action reviews, cross project learning, best practice transfer, use of expert directories and competence management (Baldry, 2008). There are several motivational factors that an organization can use as it undertakes some knowledge management operations. One of these motivations involves the management of innovation and organizational learning. Making sure that increased knowledge content is available to anyone who might need it within the organization is also a motivation for undertaking knowledge management efforts (Boreham, Parker, Thomson and Hall, 2007). Another motivation involves facilitating the achievement of shorter cycles for new product development. Ensuring that the expertise of individuals in the organization is well leveled out is another motivation for proper knowledge management. Motivation for knowledge management within an organization is also enhanced by an increase in network connectivity between the organization’s external and internal workforce (Newman, 2002). Knowledge Management Benefits The benefits that come with knowledge management can be categorized into three groups. These are: Knowledge benefits Intermediate benefits Organizational benefits Knowledge benefits are those that normally obtained from a more efficient way of processing information as well as knowledge. For instance, when a duplication of effort is eliminated, processing of information becomes easier. Intermediate benefits deal with the manner in which knowledge benefits can be transformed into organizational efficiency and effectiveness. Organizational benefits are those that impact on the organization’s ultimate goals, that is, they affect the company’s productivity and customer service (Coakes, 2003). One of the benefits that come with knowledge management is the improvement of operational performance and organizational agility. Knowledge management helps an organization to realize the importance of agility as a means of gaining and sustaining a competitive advantage. When the company is at an advantageous position as compared to its competitors, it would be hard for knowledge management to fall as a result of an economic disaster (Baldry, 2008). Another benefit of knowledge management is the acceleration of learning and innovation which is possible through the implementation of sophisticated Knowledge management processes (Boreham, Parker, Thomson and Hall, 2007). Knowledge management also increases an organization’s collective capability in the maintenance of leadership position. Everyone in the organization will play his role in helping the company maintain a top spot among other similar companies. This will cushion the company against any losses that might arise due to a downturn in the economy. Through knowledge management, the organization is able to facilitate knowledge convergence, at the same time enriching its corporate memory. Proper knowledge management ensures that there is minimal knowledge evaporation and reinvention. This means that if there is any economic hardship, the company can always fall back on knowledge management to survive (Baldry, 2008). All in all, knowledge management can be said to be the key factor in driving best practices for the sake of a productive and creative working environment. Knowledge management is important for a lot of reasons. One of these reasons has to do with the fact that people do not like dealing with complicated systems. Knowledge management may come in handy when the organization wants to simplify some of its systems. Knowledge management is also helpful when an organization wants to replace some institutional knowledge that had been lost. The way an organization manages its knowledge will have a major impact on how well it does in the market (Stary, Barachini and Hawamdeh, 2007). This means that proper knowledge management will influence how well the company is able to deal with competition and how productive it will be. Good knowledge management practices will without a doubt increase the organization’s productivity and value of services. However, the company has to manage its finances well enough to ensure that knowledge management is not jeopardized (Boreham, Parker, Thomson and Hall, 2007). Conclusion Knowledge management is an important feature in the overall management of the work place. Newman (2002) says that knowledge is a lot of things, that is, it is money, people, learning, leverage, power, flexibility as well as competitive advantage. For knowledge management to be effective at the work place, it has to be considered together with judgments, ideas, root causes, talents, relationships, concepts and perspectives within an organization. (Newman). Knowledge management is important for a lot of reasons. One of these reasons have to do with the fact that organizations have to simplify some of their systems in order to increase productivity. Knowledge management is also helpful when an organization wants to replace some missing institutional knowledge. A financial meltdown might lead to the disintegration of a number of important operations within the organization (Baldry, 2008). However, if the company has a strong knowledge management policy, it can survive whichever economic problems come its way. References Baldry, C., 2008. New Technology, Work and Employment. Available at: . [Accessed 10 August 2010]. Boreham, P. Parker R. Thompson, P. & Hall, R., (2007). New technology @ Work. London: Routeledge. Christensen, P. H., (2003). Knowledge Management: Perspectives and Pitfalls. Copenhagen: Copenhagen Business School Press. Coakes, E., (2003). Knowledge Management: Current Issues and Challenges. London: IRM Press. Nonaka, I., (2005). Knowledge Management: Critical Perspectives on Business and Management. London: Routledge. Newman, B. D., (2002). What is Knowledge Management. The Knowledge Management Forum. Available at: [Accessed 10 August 2010]. Stary, C. Barachini, F & Hawamdeh, (2007). Knowledge Management: Innovation, Technology and Cultures. London: World Scientific Publishing Co. Pte. Ltd. Read More