Knowledge Management Practices as Found in Contemporary American Business and Management

Knowledge Management Practices as Found in Contemporary American Business and Management Introduction: Contemporary U.S. Management and Its Specifics The world of entrepreneurship is facing a new era, i.e., the epoch when the informational civilization is being born, with information quickly becoming the main and the most valuable article of trade, the necessity of being able to use this commodity the right way appears.Advertising We will write a custom research paper sample on Knowledge Management: Practices as Found in Contemporary American Business and Management specifically for you for only $16.05 $11/page Learn More The vast amounts of information and the need to process them quickly have spawned the creation of a new type of management – knowledge management, with an appropriate theory to support it. However, even more striking changes have come, contributing to shaping the process of knowledge management. Because of the numerous factors that contribute to shaping the knowledge management system, as well as the availability of info rmation combined with the need to distribute it fast and evenly, the modern knowledge management is currently facing a number of challenges that an efficient system of knowledge sharing can possibly help deal with. Knowledge Management Definitions: What Lurks Behind the Term Knowledge management might seem a very straightforward process that cannot be possibly misinterpreted. Since the KM process involves dealing with knowledge, it must presuppose the strategy of information disposal. The latter, however, involves a plethora of elements and factors, which shape the knowledge management strategy, dictating specific steps to be undertaken. Hence, knowledge management as a phenomenon can be considered from different points of view. Depending on what the focus is, the definition of knowledge management may vary. When the Focus Is on Knowledge Putting the emphasis on the significance of knowledge acquisition, the first and the most comprehensive definition of knowledge management states the purpose of KM as the means to obtain information. However, the given approach towards understanding the principles of KM puts every single agent of the given process in its place, distributing responsibilities among the supposed staff of the supposed organization. KM can be defined as the process of organization management that is aimed at revealing the knowledge base of the given organization (Snyder Wilson, 2000, 527). Therefore, knowledge management can be considered as a means to promote a more efficient knowledge sharing system.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More When People Are in the Spotlight Weirdly enough, the definition of knowledge management does not necessarily put information into the spotlight. In some of the definitions, not knowledge, but the knowledge sender and receiver are focused on, which is rather reasonable. Thus, the key functio n of knowledge management, which is the transfer of information, is stressed. With the help of such a definition, one can shed some light on the function of knowledge management as a means to establish trustworthy relationships between the employees instead of stating the obvious: â€Å"Knowledge management is about choosing the right practices or tools to efficiently enhance communications among the staff† (Batten, 2008, 86). Therefore, knowledge management can be understood as the set of rules on information sharing that will at the same time reflect the company hierarchy, organization ethics, and culture. Performing several additional functions, such as coordinating the relationships between employees, KM can also serve as a means to change the company’s climate. When the Process Is Important Apart from knowledge functions, the existing definitions of knowledge management also describe the specifics of the process itself. Therefore, KM can be viewed as a series of s teps that have to be undertaken in order to achieve the goal and distribute information efficiently. Therefore, the following definition can be provided: knowledge management is a process that consists of a set of activities that lead to discovering, capturing, sharing and applying knowledge, so that the goal achievement of the organization could be enhanced in the most efficient way possible (Becerra-Fernandez Gabherval, 2009, 56). That being said, knowledge management could be viewed as a range of actions that must be performed in order to reach a specific goal. When the Goals Are Addressed As it has been shown in the example above, another way to interpret KM is to view it as a tool for achieving specific goals, as well as establishing them. On a basic level, knowledge management serves a purpose of improving the information distribution across the company; therefore, it can be defined as the means to hit a specific target.Advertising We will write a custom research pape r sample on Knowledge Management: Practices as Found in Contemporary American Business and Management specifically for you for only $16.05 $11/page Learn More Though the definition provided by Fernandez and Gabherval does mention the existence of the target in question, they still stress that learning the succession of actions is the key to understanding the principles of knowledge management. Thierauf, however, offers a slightly different approach that shifts the emphasis precisely on the goal of the organization. As Thierauf (1999) explains, knowledge management is not a process, but a system that allows to â€Å"provide competitive advantage by giving decision makers (from the highest level to the lowest level) the necessary insights into patterns and trends that affect their domain† (Thierauf, 1999, 5). In fact, the given statement also correlates with the idea that KM can be used as a means to regulate the relationships between the staff members. To be more exact, the given definition suggests that KM can be used as a tool that introduces a specific hierarchy into the organization. Knowledge Management and Competitive Advantage Finally, the effects of efficient knowledge management should be considered as the basis for knowledge management definition. Thus, one will be able to obtain an objective definition of what knowledge management actually is. That being said, knowledge management could be viewed as not only a process, but also a practice and even a culture of creating or gathering, analyzing, distributing and sharing organizational knowledge. In other words, KM can be viewed as a means to enhance the company’s competitive advantage by using the provided information efficiently. According to what Wallace (2007) says, knowledge management can be identified as the process that allows to capture, process and transfer knowledge so that the organization could achieve a greater competitive advantage (Wallace, 2007, 3). There fore, it is clear that the definition of knowledge management in a particular case depends on the priorities that a company sets and the goals that it wants to achieve. Modern U.S. Business Sphere and Knowledge Management Practices: An Overview Grown into a massive set of theories with an even greater number of ideas concerning its practical applications, knowledge management seems to have become a cult principle in the present-day business world. Hence a plethora of various types of knowledge management practices, as well as the interpretation of their effects and the discussion of their impact on the organizational ensued.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Taking a closer look at how knowledge management practices are implemented nowadays, one can possibly evaluate their effect, consider their limitations and come up with the suggestions for their possible improvement. Types of Knowledge Management Practices Knowledge management comes in different variations depending on the type of an organization, the specifics of the chosen leadership strategy, the organizational culture, etc. Therefore, one can distinguish a large variety of knowledge management types. However, it is worth noting that of all the possible types, five key knowledge management practices for organizations can be distinguished. According to Gray and Chan, there are typically four types of knowledge management practices distinguished. It is worth noting, however, that the classification below is based on considering a knowledge management practice as a tool for a problem-solving process. Encouraging Serendipity Though the given practice should be viewed as a means of wo rking with individual employees instead of a tool for shaping the knowledge processing stage within the entire team, encouraging serendipity is a crucial element of the knowledge management process nowadays. While it is important to provide a solid basis for the assumptions so that the company could make the right step, it is also necessary to encourage serendipity among the organization members. Often based on a small detail that passed unnoticed yet left an impact on a person, serendipity allows to consider all the existing options and sometimes even provide the option that has never been noticed before. Creating Knowledge Opposed to the process of informing the members of an organization on a specific issue, the process of knowledge creation can also be considered one of the most popular modern business practices. Another important knowledge management practice, creating knowledge is often confused with acquiring knowledge, mostly due to the meaning of the word â€Å"creatingâ⠂¬  as a synonym to â€Å"making.† Knowledge creation, however, does not mean that knowledge is somehow produced; in fact, knowledge creation is the process of transforming tacit knowledge into explicit one, as Nakamori (2012) explains, the entire process presupposes the transformation of individual tacit knowledge into group tacit knowledge, which is then shaped into an individual explicit knowledge and finally becomes an individual tacit knowledge. Raising Awareness The given type of knowledge management practice can also be considered the approach suitable for individuals rather than for shaping the relationships among the entire staff. Aimed at helping every single member of the team recognize a specific problem, the given practice aims at capturing and retaining knowledge rather than sharing and distributing it. At present, such types of knowledge management practices include the creation of databases, analysis of reviews and the lessons learned, etc. Therefore, the giv en approach can be considered as the means to improve the organization memory rather than the method to share a specific bit of information with the rest of the company members. Quiet an efficient tool, though, it should be used along with the rest of the practices mentioned in the given paper. Along, however, the given approach is unlikely to lead a company anywhere. Acquiring Knowledge In contrast to the previous two practices, knowledge creation concerns every single member of the company staff. It is crucial to realize that knowledge must be accessible for every single member of an organization; otherwise, the lack of information will inevitably lead an organization to failure. Therefore, the most important stage in the given process is to provide the access to the information since the very moment the knowledge was acquired. Consequently, it is required that every member of an organization should participate in the process of knowledge acquisition. The given practice is usually used to make the members of an organization closer, as well as increase their awareness of a specific issue. As it has already been mentioned, it would be worn to assume that the types of knowledge management listed above are the only possible options. The choice of a particular type of knowledge management or a combination of types is predetermined by a large number of factors, both interior and exterior ones, which means that, at the end of the day, the right choice of knowledge management strategy depends on a careful evaluation of these factors, as well as the organization’s current goals. Effects of Knowledge Management Practices Knowledge management practices are nowadays considered the key to an organization’s success – or, on the contrary, its complete failure, depending on whether the choice of a specific knowledge management practice was justified by the organization’s goals and assets or not. Apart from the direct influence on the company†™s performance, knowledge management practice also affects the relationships between the members of the staff, shapes the company’s strategy and has a tangible impact on the corporate values. Therefore, it is necessary to evaluate the extent to which knowledge management influences an organization. KM Practices and Organizational Culture As it has been mentioned above, knowledge management practice is related directly to the organizational culture; moreover, these two elements seem to have an effect on each other, becoming, therefore, mutually dependent. A specific KM practice can affect the organizational culture; in its turn, organizational culture predetermines the choice of a knowledge management practice. KM Nomenclature in Modern U.S. Business Needless to say, since the idea of knowledge management was introduced into the U.S. business, much has been changed, including the manner of classifying the existing types of knowledge management. At present, the following type s of knowledge management can be found in contemporary American business: Internal Knowledge Management Used to improve the organizational performance of the staff, internal knowledge management presupposes the efficient distribution of the information concerning the organization among its members. Knowledge Dissemination Knowledge dissemination involves creating knowledge in order to represent an organization and make it competitive. With the help of the transformations described above, tacit knowledge possessed by a group of people is turned into a tacit knowledge that an individual has concerning a specific issue. As Dalkir (2005) says, â€Å"Dissemination works best when it is an organized activity† (93). Knowledge Brokering Knowledge brokering demands tracking the source of information, evaluating its veracity and value. Hence, the idea of knowledge brokering can be summarized by saying that it means tracing the origin and source of specific information. Thus, an organiz ation can have a better control over the available information, which is another upgrade in the knowledge management practice development. Building Knowledge Capacity Building knowledge capacity means raising the members’ ability to operate the information that is currently at their disposal. Indeed, sometimes searching for the necessary information and the ability to process it fast and efficiently is not enough. It is also required to use the knowledge appropriately, which building knowledge capacity teaches. Knowledge Management in the Global Environment: An Analysis When analyzing the process of knowledge management in an organization, one must keep in mind that modern companies work in the environment on which globalization has taken its toll and, therefore, shapes the process of knowledge management greatly. On the one hand, the fact that information can be accessed much faster and in a much easier way is doubtlessly a benefit. On the other hand, such openness leaves an organization extremely vulnerable towards the external factors, competitors and hackers. Hence, the entire palette of opportunities and threats must be viewed. Capturing Organizational Knowledge: The Threats There is no doubt that the key stage in gathering information is the very start. At this point, such crucial questions as what sources are the most trustworthy, what kind of information is necessary for the given project, where exactly the given information can be found, etc. are solved. Since globalization has shaped the existing information sources considerably, the process of capturing information has become both easier and at the same time more challenging. Retaining Organizational Knowledge: The Challenges What might seem the easiest task often presupposes dealing with the greatest amount of issues, a case in point being the task of retaining information. While keeping organizational knowledge does not presuppose carrying out any specific actions compared to the process of getting information, it is still very painstaking, mostly because of the necessity to have clear links between every bit of information. Accessing Organizational Knowledge: The Methods As soon as the necessary information has been located, obtained and arranged, it is essential to thin through the methods of accessing the given data sets. While in the global environment, accessibility has become the key asset of most information, it is still important to keep in mind that the required data must be secured properly. Using Organizational Knowledge: Winning the Competition The last, but definitely not the least, the stage of putting the stored information to practice has become quite complicated in the realm of global economics and business. Because of high competition rates, it is important to know exactly how, when and where to use the information in question appropriately. The Future of Knowledge Management Though at present, theory of knowledge management seems rather innovative a nd offering brand-new approach, it is quite predictable that the Theory of Knowledge as people know it today is going to be very dated in the next few years. According to the latest information concerning the possible changes that the knowledge management is going to face in the future, it can be assumed that three major innovations are going to be implemented. Anticipatory Delivery of Knowledge Globalization has set the entire world to a completely different pace. Every single process has become times faster, therefore, demanding that organizational operations should also consume as little time as possible. Therefore, it is essential that the members of an organization should be able to develop their anticipatory skills. Anticipating the on-coming information is especially important because of its availability. With the progress of the Internet, information can be obtained within milliseconds, which means that the perceptual speed becomes the decisive point in the competition. Conn ection between People In the world where globalization has taken its toll on the realm of business, it is necessary to understand that members of a specific organization can be miles apart from each other. Therefore, the need to introduce efficient connection between people arises. With the help of the latest technological innovations, the given goal becomes quite attainable. In the light of stiff competition, which most companies face nowadays, the ability to transfer information quickly is worth its weight in gold. Connected Knowledge Being able to gather information and process it quickly is important, yet there is one more crucial element of the process, i.e., putting the pieces of the information together. Facts rarely come in a full package – often one has to search for scraps of data and only then collect them into a whole. Hence the new trend in knowledge management, connected knowledge, comes. Aimed at keeping all the available bits of information so that they could be easily re-arranged if one more bit reinvents the entire perception of the issue in question, the principle of connected knowledge is definitely worth developing further on as a guiding principle of knowledge management in modern U.S. business. Research Findings Summary and Interpretation Judging by the above-mentioned evidence, the key problem of modern knowledge management stems from the total availability of information, which leads to complexities of filtering and evaluating it. In addition, the research has shown that knowledge management practice must be considered in the context of the factors surrounding it. While the modern idea of knowledge management practice can be referred to as a people-focused, it still revolves around a number of other aspects, such as the type of organization, the specifics of the organizational culture, the leadership style of the head of the company, the size of the organization, etc. However, the focus of the knowledge management practice still seems to be on people rather than on anything else. Because of the influence that globalization has on organizations nowadays, it is important to make sure that every single member of the organization or its affiliate, no matter in what remote corner of the Earth it might be located, should know about the latest changes in the company information to deliver adequate performance. Therefore, the focus on people, which most present-day organizations prefer to the rest of the approaches, seems more than reasonable. It is noteworthy, however, that the current knowledge management practices display two diametrically opposite tendencies, i.e., the tendency to focus on an individual as opposed to the focus on the team. Logically, for the successful implementation of the company goals, both techniques must be applied; the priority, however, depends on the specifics of information distribution within a company. Conclusion: Paving the Road to Better Knowledge Management Although the theory of knowledge management is relatively new, it has already grown into a huge set of concepts, building up to the introduction of the KM concept in the globalized environment and providing the foil for the development of new theories. Incorporating the previous experience with the new ideas, one can possibly come up with a perfect strategy for knowledge management; however, the problem is that the given suggestion will only last for as long as the environment in which it was created will. Therefore, the basic goal for the knowledge management theorists at present is not to suggest a perfect knowledge management strategy, but to make sure that the current strategy is being constantly updated according to the latest changes in the data. Thus, one can rest assured that the organization will keep running for quite a while. Reference List Becerra-Fernandez, I. Gabherval, R. (2009). Knowledge management: Systems and processes. Armonk, NY: M. E. Sharpe. Dalkir, K. (2005). Knowledge management in theory and practice. Burlington, MA: Elsevier Butterworth–Heinemann. Nakamori, Y. (2012). Knowledge science: Modeling the knowledge creation process. Broken Sound Parkway, NW: CRC Press. Snyder, C. A. Wilson, L. T. (2000). Implementing knowledge management: Issues for managers. In Information Resources Management Association International Conference (Ed.), Challenges of information technology management in the 21st century: [Proceedings of The] 2000 Information Resources Management Association – International Conference, Anchorage, Alaska, USA, May 21-24, 2000. Hershey, PA: Idea Group Publishing. Thierauf, R. J. (1999). Knowledge management systems for business. Westport, CT: Greenwood Publishing Group. Wallace, D. P. (2007). Knowledge management: Historical and cross-disciplinary themes. Westport, CT: Greenwood Publishing Group.