Why an Organization Needs Knowledge Management and Talent

Knowledge management (KM) is the process of capturing, developing, sharing, and effectively using organizational knowledge. It refers to a multi-disciplinary approach to achieving organizational objectives by making the best use of knowledge. Talent management is the anticipation of required human capital for an organization and the planning to meet those needs.

Enhancing and supporting the concept of knowledge management as a strategic contributor to an organization

Talent is capability and knowledge is ability.’ Talent is intangible and embedded within people. Knowledge can be tangible and explicit if it is planned, controlled, facilitated and monitored, as is standard with other assets or processes in an organization. The management of knowledge adds strategic value.

Knowledge is the tacit constituent that comes about when applying information to a decision-making process.

In any economy, the aim is to maximize the advantage from a source of competition. If knowledge is a basis for the economy, then this economy has to be formed around maximizing the use and the management of knowledge in businesses.

The knowledge, as currently exists within an organization, is already a major contributor to success, in conjunction with the obvious contributors of the 9 Ms, which include money, machinery, materials, manpower, makeup, MIS, management, machinery, methods and markets.

THE ORGANISATION, ITS COMPETITIVE ADVANTAGE, AND KNOWLEDGE

The basis of competition is shifting from having a unique raw material or production system in manufacturing, to differentiation though the building of knowledge. ‘Having knowledge can be regarded as even more important than possessing the other means of production – land, buildings, labour, and capital – because all the other sources are readily available in an advanced global society, while the right leading-edge knowledge is distinctly hard to obtain.’ Companies have already moved from being labour intensive to process intensive, to carry out tasks most efficiently, effectively, economically and productively as possible while all the time introducing new techniques or elements to the process, product or service.

company’s success is dependent on adding value. This requires creativity based on the current knowledge position of the company. Organizations should not have to relearn on a regular basis but should be in a position to retain the knowledge they already have in their possession. They should then reinforce the use of this knowledge in processes and approach to the management of this knowledge. This can be achieved by maintaining what is already known and then continue to maintain their position based on this unique knowledge, and renew and update the knowledge continuously.

This is a transparent approach to the handling of knowledge, which is the approach needed across the entire organization so everyone can contribute.

Knowledge management is important in any organizations because it’s important in economics and business. Economics and business theorists have alluded to or identified knowledge as the ultimate competitive advantage for the modern firm.

With reference to knowledge management, the challenge in the context of adding value is that organizations should reorganize themselves around the scarce resource of talented human capital and manage the constraining elements and strategic resources of information, knowledge and expertise. Obtaining this talented human capital is another task that requires human resource management and the involvement of the wider organization.

HUMAN RESOURCES / KNOWLEDGE MANAGEMENT

As organizations have changed, downsized or expanded, there has been an increase in technology and in redundancies. In knowledge management terms, a reduction in employee numbers implies that those remaining have to demonstrate their value. Employee turnover of, or the rise of the free agent implies that long-term contracts are on the way out. Loyalty is much reduced or, as suggested, ‘loyalty is dead commitment and drive are lost, on the way out or gone’ both from the organizational and employee perspective, as neither can afford loyalty in rapid dynamic markets. Organizations affected by such changes, through the loss of people and then talent, can’t keep relearning all the knowledge lost when people leave the company.

One such approach, which considers the individual rather than the process, is social network analysis. This helps identify and manage the hidden networks within an organization.

According to Karen Stephenson, social network analysis is increasingly recognized as a means of leveraging organizational learning, retaining key workers, planning succession, harvesting innovative ideas, and managing both the rate and quality of change. This collective capability, Stephenson argues, depends on trusted relationships between individuals and has more power to influence the success or failure of an organization than any managerial hierarchy.

In this approach, employees are a key consideration, with individual requirements which should be acknowledged. Employees want freedom, autonomy, space, and flexibility enables intellectual capital to be assessed. By offering these, the opportunity for knowledge growth and retention can be developed.

TECHNOLOGY

Other components of the knowledge management environment include computing systems. With these systems, knowledge can be gathered by monitoring the phases or steps that creative workers go through in their daily work, and by identifying the information and decisionmaking methods they use and follow.

There are both manual methods of knowledge collection, and systems that can manage the collection and dissemination of that knowledge.

Some applied business samples demonstrate where these existing IT systems become knowledge-based systems. Internet-based systems have reduced control over information distribution and intellectual capital, and have an effect on information formation.

The internet infrastructure, as a tool to access information, is the key and has value as an access route. However, the value lies not in having access to privileged information, but rather in the way the internet by offering new opportunities for those with the knowledge to start new businesses and share new ideas.

Companies implementing effective knowledge management systems expect to incorporate a variety of technologies, supported by a leadership approach that values learning. They also need an organizational structure that supports communication and information sharing, which in turn facilitates the processes for managing knowledge and change.

TOWARDS KNOWLEDGE MANAGEMENT

The core issue when considering knowledge management is how to get people to share their knowledge. The easiest methods are through traditional rewards, such as pay, incentives, benefits, stocks, profits, and commissions or alternatively, through learning opportunities, additional issue is to examine why we want people to share their knowledge, and to explain the value derived from the sharing. The primary reason for knowledge sharing is that customers are looking for value and companies have to provide value propositions. They need to provide what the customer actually wants, not what the company thinks the customer requires, offering improved value and thereby creating new markets.

With this value proposition perspective, a number of large companies have incorporated and embedded the management of knowledge within their systems, thereby increasing the value it can make for the organization and, therefore, the customer. Not all knowledge management requires technology.

To derive the best value, it requires management of the knowledge, the managers, and the employees in combination. Examples of value innovation occurring without new technology have happened in a number of places. high performance relationships – building leadership, using experience to build relationships, encourage mutual respect) by building on the knowledge they already have.

They are in traditional businesses, but each is able to offer new and superior value through innovative ideas and knowledge.

CREATIVE ORGANISATION AND KNOWLEDGE MANAGEMENT

The organizational cultural change required to facilitate the focus, development and application of organizational knowledge should include the development of an environment where innovation and creativity operate together.

While these two are somewhat intangible, recent illustration of culture development is the way creativity is part of the culture at Google: ‘Is creativity fun or should it be? … fun works and work is more productive when it is fun … as a result, companies that integrate fun, creativity, and work are best able to attract and retain peak performers in an economy that promotes and rewards the rapid and constant changing of jobs.

Innovation is important to organizations because it fosters new ideas for products and services, gives staff members a sense of job satisfaction, encourages teamwork and allows organizations to find competitive advantages in the marketplace.

Companies are driving towards creativity and innovation. Trends suggest that the knowledge economy is rapidly being transformed into the creativity economy. As more high-level knowledge work is outsourced to less developed countries, companies in the US, Europe, and Japan are at the next level of generating economic value from creativity, imagination, and innovation.

Organizations are facing the need to change quickly and dramatically in order to survive, recognizing ‘the need for greater product and service innovation to keep pace with technological, societal advances and compete with the growing power of companies in China and other developing countries, rather than focusing on ways to improve efficiency and cut costs, today’s companies are rewiring for creativity.

The characteristics of creative organizations correspond to those of individuals. Creative organizations are loosely structured. People find themselves in a situation of ambiguity, where assignments are vague, jobs and roles overlap, tasks can be poorly defined, and much work is done through teams.

Variety is important, and managers strive to involve employees in a varied range of projects, so that people are not wedged in the beat of routine jobs, and they drive out the fear of making mistakes that can inhibit creative thinking.

Creative organizations have an internal culture of playfulness, freedom, challenge, and grassroots participation. They harness all potential sources of new ideas as sources for knowledge management. These strategies allow the freedom to discuss ideas, and as projects are seen as long term, resources are allocated without immediate payoff.

This creative approach, as with any other policy around new product development, has to be incorporated into the overall company/business strategy. It must also be aligned with a knowledge management strategy, which a company should have in order to gain the value evolving within the idea generating process, as well as the knowledge that emerges. This allows creativity to lead to innovation and, in addition, to product or service development and delivery.

In terms of the value to be gained, the strategy also needs to include the process of valuation, and the valuation methods and perspectives used to evaluate need to be considered.

Knowledge Management Strategy. To develop an effective knowledge management (KM) program, your organization needs a systematic strategy, not just a general plan to help employees share knowledge. APQC has the best practices, tools, and insight to guide you toward the best approach.

Management need to understand that knowledge its management, optimization and valuation – requires focus if it is to be the basis of market success or failure. It is already an area that is being measured in terms of its contribution to the existence of an organization, and it is therefore a critical success factor, if not already an unrecognized core competence. Talent and knowledge are an organization’s capabilities and abilities. Talent as capability and knowledge as ability, requires management. However, the primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived constraints. The primary constraints are scope, time, quality and budget.

This Article Source is From : http://thenewsnigeria.com.ng/2018/01/why-an-organization-needs-knowledge-management-and-talent/

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