Chapter 1 The Knowledge Context

Chapter 1 The Knowledge Context

Learning Objectives

1. Describe some key external factors that influence organisations 2. Describe some intraorganisational factors that affect organisational processes 3. Compare and contrast ways in which private, public and not-for-profit organisations operate 4. Explain the processes of strategic management and how they support organisational outcomes

Learning Objectives (cont'd)

5. Outline how knowledge management helps organisations 6. Describe the relationship between information, tacit knowledge, explicit knowledge, organisational knowledge and knowledge management 7. Identify the key factors which can encourage strategic knowledge management

Today’s focus:

• How is our working world changing? • What is knowledge and how does it impact on organisational practice? • What is knowledge management? • Why and how does knowledge management vary across different organisations? – Lecture Reference: Debowski, Chapter 1

Introduction

• Technological and social change have reshaped our world and the way we work • We have shifted from an industrial economy (focusing on commercial products) to a knowledge economy (focusing on services and expertise) • This has affected most workplaces and most workers

External Influences on Organisations

• Globalisation – Access to more customers from far-flung areas – Greater awareness of international practice

• Increased competition • Increased pressure to be innovative and responsive • Shareholder expectations – Pressure to achieve economies of scale

External Influences (cont'd)

• Technological change • Competition for high performing staff • Forward planning and analysis – Review of emerging trends – Learning from competitors

Organisations are dynamic, vulnerable and volatile….

The Changing Nature of Organisations • The workplace has changed: – Series of career paths – Workforce composition – Evolving roles and responsibilities – Teamwork: complex and dynamic interactions – Strong focus on relationship building

The Changing Nature of Organisations (cont'd) • Communication • Leadership – Many people fill leadership roles – Good leadership is expected in most workplaces

• Decision making – More people participate in decision-making – Many sources of information guide decisions

The Changing Nature of Organisations (cont'd) • Change management – Ongoing process improvement

• Worker motivation – Self-managing employees anticipate challenging and fulfilling work – Desire positive and constructive workplaces

• Infrastructure – Systems and services which support the organisation

Types of Organisations

• Organisations differ according to: – Their purpose and long-term goals – Who funds and directs their activities – The stakeholders

• Types of organisations include: – Private – Public – Not-for-profit

Private Enterprises

• Focus on profit • Likely to have shareholders, or may be privately owned • Anticipate ongoing growth and development, but with a healthy short-term return • Chief Executive Officer (CEO) is the public face of the firm

Public Enterprises

• • • •

Sponsored and funded by government Linked to ministerial portfolios Provide service or govern the community Increasing efforts to collaborate and work together, e.g. Australian Government Information Office

Not-for-profit agencies

• Provide specialised support for community members • Funding may be derived from different sources including government, sponsors and members of the community • Frequently have higher demand than capacity to deliver • Strong staff loyalty and commitment

Strategic Management in Organisations • Long-term planning + ongoing responses to existing needs and demands • Relevance and appropriateness of the business to meet the users’ expectations • Goals are promoted to all employees

Organisational Influences on Strategic Management Values

Leadership

Organisational Priorities Systems and Policies Organisational Activities Employee Capabilities

Strategic Focus and Process

Strategic Values

Values Organisational Priorities Systems and Policies Organisational Activities Employee Capabilities

• • • • • •

Collaboration Communication Flexibility Teamwork Service orientation Quality focus

Organisational priorities

Values

Organisational Priorities Systems and Policies Organisational Activities Employee Capabilities

• The goals and directions the organisation should emphasise to ensure both long-term and shortterm viability • Strongly guided by effective leadership within the organisation

Systems and Policies

Values

Organisational Priorities Systems and Policies Organisational Activities Employee Capabilities

• Policies provide guidance on the main principles which should be reflected across the organisation • Systems enable the implementation of the specified policies through practical and functional processes

Organisational Activities

Values

Organisational Priorities Systems and Policies Organisational Activities Employee Capabilities

• Strategic management aims to align organisational activities with the values, priorities and systems which are in place • The goal is to ensure plans and goals are actually reflected in the real activities of the organisation

Employee Capabilities

Values

Organisational Priorities Systems and Policies Organisational Activities Employee Capabilities

• Employee skills, knowledge and expertise • Capabilities should reflect the organisational requirements • As the firm evolves, so too will capabilities

Knowledge Management

• Knowledge is the process of translating information and past experience into a meaningful set of relationships which can be applied by an individual • Knowledge is an organisational asset: it should be identified, managed and valued to the same degree as other assets

Knowledge Management (cont'd)

Knowledge as an asset • Explicit knowledge can be documented, categorised, transmitted, demonstrated… It can be accessed by other people even if the knowledge source is absent • Tacit knowledge draws on the accumulated experience and learning of an individual. It is hard to reproduce or share with others

Knowledge Management (cont'd) Sources of Organisational Knowledge Experience Advice

Individual Knowledge Organisational Knowledge

Learning Errors External Sources History

Corporate Knowledge

Knowledge Management (cont'd)

• Strategic Knowledge assists with taking the organisation toward its desired future goals • Closely linked to the organisational focus • May be different in each organisation

Knowledge Management: an Emerging Concept • The management of knowledge to enable its definition, identification, capture, organisation and dissemination across the organisational community • Knowledge management is dependent on effective leadership and a collaborative culture

Knowledge Management (cont'd) Values

Organisational Priorities

Organisational Knowledge

Systems and Policies Organisational Activities

Employee Capabilities

Knowledge Management (cont'd)

Knowledge Organisations • The Learning Organisation – Encourages learning, growth and development of individuals and the community

• The Developmental Organisation – Undertakes regular review, adaptation and re-orientation to maintain strategic focus

• Asset-based corporate development – Recognition and capitalising on knowledge assets of value to the organisation

A Model of Strategic Knowledge Management

Knowledge Influences

Knowledge Foundations

Knowledge Applications

Knowledge Enhancement and Review

Organisational Context (1)

Human Resource Management (5)

Core Knowledge (7)

Knowledge Evaluation (11)

Strategic Knowledge (2)

Knowledge Systems (6)

Knowledge Repositories (8)

Leadership (3)

Knowledge Service (9)

Knowledge Culture (4)

Learning and Development (10)

Knowledge Sustainability (12) Issues and Research (13)

Concluding Points

• Knowledge is an essential asset • Organisational knowledge draws on the collective knowledge held by both individuals and within corporate sources • A strategic focus assists with preserving the knowledge which is necessary for long-term viability • Knowledge management is the method of reaching these outcomes

Today’s focus questions:

• How is our working world changing? • What is knowledge and how does it impact on organisational practice? • What is knowledge management? • Why does knowledge management vary across different organisations? – Lecture Reference: Debowski, Chapter 1