Concept and importance of Knowledge Management
Subject: Business Studies
Overview
Knowledge management is a new branch of management for achieving breakthrough business performance. Knowledge management refers to the process by which an organization creates, captures, acquires and uses knowledge to support and improve the organization. The focus of knowledge management is on doing the right things instead of doing things right.
Concept and importance of Knowledge Management
Knowledge Management
Before studying knowledge management, it is necessary to know about Management. Management is the act of getting people together to accomplish desired goals. The concept of management is universal and dynamic. Management can also be defined as a human action that includes a design to facilitate the production of useful outcomes from a system.
Management is the act of planning, organizing, staffing, leading or directing, and controlling an organization. It is an effort for the purpose of accomplishing a goal. (Boundless.com)
source: www.act-consult.comKnowledge Management is an emerging concept of management. It involves a range of strategies and practices used in an enterprise to create and represent the implementation of insights and experiences. It is the systematic management of an organization's knowledge assets for the purpose of creating value. It involves meeting tactical & strategic requirements. It consists of the initiatives, processes, strategies, and systems that sustain and enhance the storage, assessment, sharing, and creation of knowledge.
In other words, the knowledge management system of an organization is the collection of information and technologies used to facilitate the organization and distribution of knowledge of employees. Three levels are used to describe the knowledge, they are explicit knowledge, tacit knowledge, and potential knowledge. Explicit knowledge can be of book knowledge. Tacit knowledge remains within the people of the organization and isn’t formalized into written or documented form. Potential knowledge describes that knowledge is hidden in the data that are upon collected but not yet used.
Knowledge management, therefore, implies a strong tie to organizational goals and strategy. It also involves the management of knowledge that is useful for some purpose and which creates value for the organization. Knowledge management is the process of enabling the resource of knowledge. It's a practical expression is the combination of information management and organizational learning. (KMT Knowledge management tools)
Importance of Knowledge management
Today, knowledge management is applied across the world, in all industries, sectors, public and private organizations. Knowledge management involves a strategic commitment to improving the organization's effectiveness as well as improving its opportunity enhancement. The goal of the knowledge management process is to improve the organization's ability to execute its core processes more efficiently. It provides the following benefit to achieve the organizational goals:
- Employee awareness
Knowledge management helps the employees to be aware of their tasks and responsibilities. It facilitates the employees to save their time and efforts because everyone knows where to go to find the destination of the organization. - Availability
Knowledge can be used wherever it is needed whether from the office or on the road or at the customer's site. Knowledge management enables increased responsiveness to customers, partners, and co-workers. - Timeliness
Knowledge is available whenever it is needed. It helps to eliminate the wastage of time for the distribution of information. But it is achieved just in case when people are interested. - Adapt organizational change
Knowledge management helps to develop, acquire, process and retain old knowledge. Thus, such knowledge helps to adapt the organizational change. - Helps in decision-making
Knowledge gained from experience gives an idea about the future. It shows the trend of the past which helps to make the right decision at present and future. The manager can collect essential information from the knowledge store and analyze the situation in a systematic way. - Transfer Knowledge
Knowledge management ensures the sharing of information among all employees in the organization. Such sharing of information helps to transfer knowledge from the employees to other employees which help to develop employees. - Reduces risk
It accumulates knowledge or information from internal and external sources. Such information can be used in decision making and its implementation. The manager can make the right decision using such knowledge. Thus, it reduces risk. - Goal achievement
Effective knowledge management facilitates to reduce costs. It should also increase the speed of the response of employees as a direct result of better knowledge. People are developing their competence and confidence faster in an organization that practices effective knowledge management. - Availability of information
All the information either tacit or explicit is stored in a knowledge store or in the form of information. Such sharing of information helps to transfer knowledge from one employee to other employees and also provides sufficient information for conducting various activities.
(Business Studies, Book 12, page no-250)
Bibliography
Boundless.com. n.d. Electronic. 18 06 2016. https://www.boundless.com/business/textbooks/boundless-business-textbook/management-8/an-introduction-to-management-59/definition-of-management-283-7212/
KMT Knowledge management tools. 09 02 2015. Electronic. 18 06 2016. http://www.knowledge-management-tools.net/knowledge-management-definition.html
Chalise, Dr. Mahananda, and Pandey, Dhruba Lal. Sunrise Publications Pvt. Ltd, Business Studies. 250. 18 06 2016.
Things to remember
- Management functions include planning, organizing, staffing, leading or directing, and controlling an organization or effort for the purpose of accomplishing a goal.
- Knowledge management involves a range of strategies and practices used in an enterprise to create and represent the implementation of insights and experiences.
- Knowledge management helps the employees to be aware of their tasks and responsibilities.
- It helps to eliminate the wastage of time for the distribution of information.
- Knowledge gained from experience gives an idea about the future.
- Knowledge management ensures the sharing of information among all employees in the organization.
- It includes every relationship which established among the people.
- There can be more than one community in a society. Community smaller than society.
- It is a network of social relationships which cannot see or touched.
- common interests and common objectives are not necessary for society.
Questions and Answers
What is knowledge management?
Knowledge management is emerging concept of management. It is the systematic management of an organization's knowledge assets for the purpose of creating value. It involves meeting tactical & strategic requirements. It consists of the initiatives, processes, strategies, and systems that sustain and enhance the storage, assessment, sharing and creation of knowledge. knowledge management system of an organization is the collection of information and technologies used to facilitate the organization, and distribution of knowledge of employees. Three levels are used to describe knowledge, they are explicit knowledge, tacit knowledge, and potential knowledge. Explicit knowledge can be thought of as book knowledge. Tacit knowledge remains within the people of the organization and isn’t formalized into written or documented form. Potential knowledge describes that knowledge hidden in the data that are upon collected but not yet used.
According to Clemmons Rumizen, "Knowledge management is the systematic process by which knowledge needed for an organization to succeed is created, captured, shared and leveraged.
In conclusion, knowledge management is the process of enabling the resources of knowledge. Knowledge management , therefore, implies a strong tie to organizational goals and strategy, It also involves the management of knowledge that is useful for some purpose and which creates value for the organization. Knowledge management is the process of enabling the resource of knowledge. It's practical expression is the combination of information management and organizational learning.
What are the importance of knowledge management?
The importance of knowledge management are as follows:
a) Employee awareness
Knowledge management facilitates the employees to save their time and efforts because everyone knows where to go to find the destination of the organization. It helps the employees to be aware of their tasks and responsibilities.
b) Availability
Knowledge can be used wherever it is needed whether from the office or on the road or at the customer's site. It enables increased responsiveness to customers, partners, and co-workers.
c) Timeliness
Knowledge is available whenever it is needed when people are interested. It helps to eliminate the wastage of time for the distribution of information.
d) Adapt organizational change
Knowledge management helps to develop, acquire, process and retain old knowledge. Thus, such knowledge helps to adapt the organizational change.
e) Helps to decision-making
Knowledge management shows the trend of the past which helps to take the right decision at present and future. The manager can collect essential information from knowledge store and analyze the situation in a systematic way. Knowledge is gained from experience which gives ideas about the future.
f) Transfer Knowledge
Knowledge management helps to share information among all employees in the organization. This information helps to transfer knowledge from the employees to other employees which help to develop employees.
g) Reduces risk
Knowledge management accumulates the knowledge or information from internal and external sources which can be used in decision making and its implementation. The manager can take the right decision using such knowledge. Thus, it reduces risk.
h) Goal achievement
Effective Knowledge management facilitates to reduce costs. It should also increase the speed of the responses of employees as a direct result of better knowledge. People are developing their competence and confidence faster in an organization that practice effective knowledge management.
i) Availability of information
All the information either tacit or explicit is stored in the knowledge store. Such information helps to transfer knowledge from one employee to other employees which help to develop employees.
What is knowledge management? Explain its importance.
Knowledge management is emerging concept of management. It is the systematic management of an organization's knowledge assets for the purpose of creating value. It involves meeting tactical & strategic requirements. It consists of the initiatives, processes, strategies, and systems that sustain and enhance the storage, assessment, sharing and creation of knowledge. knowledge management system of an organization is the collection of information and technologies used to facilitate the organization, and distribution of knowledge of employees. Three levels are used to describe knowledge, they are explicit knowledge, tacit knowledge, and potential knowledge. Explicit knowledge can be thought of as book knowledge. Tacit knowledge remains within the people of the organization and isn’t formalized into written or documented form. Potential knowledge describes that knowledge hidden in the data that are upon collected but not yet used.
According to Clemmons Rumizen, "Knowledge management is the systematic process by which knowledge needed for an organization to succeed is created, captured, shared and leveraged.
In conclusion, knowledge management is the process of enabling the resources of knowledge. Knowledge management , therefore, implies a strong tie to organizational goals and strategy, It also involves the management of knowledge that is useful for some purpose and which creates value for the organization. Knowledge management is the process of enabling the resource of knowledge. It's practical expression is the combination of information management and organizational learning.
The importance of knowledge management are as follows:
a) Employee awareness
Knowledge management facilitates the employees to save their time and efforts because everyone knows where to go to find the destination of the organization. It helps the employees to be aware of their tasks and responsibilities.
b) Availability
Knowledge can be used wherever it is needed whether from the office or on the road or at the customer's site. It enables increased responsiveness to customers, partners, and co-workers.
c) Timeliness
Knowledge is available whenever it is needed when people are interested. It helps to eliminate the wastage of time for the distribution of information.
d) Adapt organizational change
Knowledge management helps to develop, acquire, process and retain old knowledge. Thus, such knowledge helps to adapt the organizational change.
e) Helps to decision-making
Knowledge management shows the trend of the past which helps to take the right decision at present and future. The manager can collect essential information from knowledge store and analyze the situation in a systematic way. Knowledge is gained from experience which gives ideas about the future.
f) Transfer Knowledge
Knowledge management helps to share information among all employees in the organization. This information helps to transfer knowledge from the employees to other employees which help to develop employees.
g) Reduces risk
Knowledge management accumulates the knowledge or information from internal and external sources which can be used in decision making and its implementation. The manager can take the right decision using such knowledge. Thus, it reduces risk.
h) Goal achievement
Effective Knowledge management facilitates to reduce costs. It should also increase the speed of the responses of employees as a direct result of better knowledge. People are developing their competence and confidence faster in an organization that practice effective knowledge management.
i) Availability of information
All the information either tacit or explicit is stored in the knowledge store. Such information helps to transfer knowledge from one employee to other employees which help to develop employees.
Explain any six importance of knowledge management.
Any six importance of knowledge management are as follows:
a) Employee awareness
Knowledge management facilitates the employees to save their time and efforts because everyone knows where to go to find the destination of the organization. It helps the employees to be aware of their tasks and responsibilities.
b) Availability
Knowledge can be used wherever it is needed whether from the office or on the road or at the customer's site. It enables increased responsiveness to customers, partners, and co-workers.
c) Timeliness
Knowledge is available whenever it is needed when people are interested. It helps to eliminate the wastage of time for the distribution of information.
d) Adapt organizational change
Knowledge management helps to develop, acquire, process and retain old knowledge. Thus, such knowledge helps to adapt the organizational change.
e) Helps to decision-making
Knowledge management shows the trend of the past which helps to take the right decision at present and future. The manager can collect essential information from knowledge store and analyze the situation in a systematic way. Knowledge is gained from experience which gives ideas about the future.
f) Transfer Knowledge
Knowledge management helps to share information among all employees in the organization. This information helps to transfer knowledge from the employees to other employees which help to develop employees.
© 2019-20 Kullabs. All Rights Reserved.