Session 3. Session objectives. Knowledge and knowledge workers. Managing knowledge and learning in organisations

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1 Session 3 Managing knowledge and learning in organisations Session objectives Explain what knowledge is, the different types, how it is created and why it is an important issue for HR managers; Define what knowledge workers are and discuss their place in the 21 st century; Identify the congruence between knowledge and HRM; Understand how knowledge is managed and the implications of knowledge management for HR managers; Demonstrate the link between organisational culture and the learning organisation; Discuss the difference between innovation and creativity. Knowledge and knowledge workers Knowledge is what makes the company grow, prosper and gain a competitive edge Knowledge: The holistic combination of experiences and information that provides insight to make decisions, develop opinions and direct future behaviour Two types of organisational knowledge are tacit and explicit knowledge Human, social and structured knowledge

2 Knowledge and knowledge workers Knowledge work: The behaviour that results in the end product of knowledge being delivered: As a profession As an individual characteristic As an individual activity Knowledge workers: Employees who produce knowledge work How is knowledge created? Sharing tacit knowledge: Begins with tacit knowledge held by organisational members. Creating concepts: Transfer tacit knowledge into words and phrases. Justifying concepts: Determine its usefulness to meet organisational and individual needs. Building an archetype:transfer into a produce and service. Cross-levelling of knowledge: intra- and inter-organisational knowledge Knowledge management Knowledge management (KM): The process of developing and controlling the intellectual capital of employees. Knowledge is located in: The minds of employees Policies and procedures Technology Organisational behaviour and culture

3 Knowledge management (cont d) The goal of effective knowledge management: For the organisation to learn, evaluate, transfer and institutionalise knowledge, constantly filling any gaps between the strategic management process, dynamic environmental needs and HRM systems Dilemma: Employee knowledge is difficult to manage (i.e. when they depart, so too does the knowledge) Organisational learning Organisational learning: A system-wide approach to learning Organisations learn in a similar fashion to individuals: Knowledge acquisition Information distribution Information interpretation Organisational memory Organisational learning does not suit all organisations The link between KM and HRM

4 Strategic knowledge management A long-term process that uses both tacit and explicit knowledge to cultivate organisational learning, which is then shared among organisational members to achieve the strategic goal. Strategic knowledge management can reap a sustainable competitive advantage through the management of (1) technology, (2) organisation infrastructure, (3) corporate culture and (4) knowledge and people. Organisational culture Culture plays a significant role in the success of knowledge management and organisational learning Culture: the shared values, assumptions, beliefs and perceptions that guide the behaviour of organisational members An appropriate and supporting organisational culture contributes to the success of organisational learning The learning organisation Learning organisation: A type of organisation that has the ability to continuously change and adapt to new environments and circumstances, through the acquisition of new knowledge. It is not just a matter of stating that you are a learning organisation; there needs to be a fundamental mindshift (which requires a cultural shift): From a culture of training and development to a culture of continuous individual and organisational learning

5 The learning organisation Innovation and creativity To create a learning environment, organisations need to foster innovation and creativity (i.e. through experimentation and allowing mistakes to be made) Innovation and creativity can lead to a competitive advantage but must be managed carefully Innovation and creativity bring fresh life to a company Innovation and creativity (cont d) Innovation: The introduction of a new process or system that ultimately provides benefits at the individual, team or organisational level Managing innovation: Type of innovation Type of person Work-environment fit

6 Innovation and creativity (cont d) While innovation focuses on the introduction of new processes or systems, creativity is the development of those new systems Creativity: The generation of ideas, including diverse, abstract and novel ideas Creative people need to be managed uniquely and not everyone understands creative people Knowledge management and HRM issues Perceived violation of the psychological contract Ensure open and honest communication Difficulty retaining employees and their knowledge Need to keep them motivated Difficulty managing knowledge capital Implement policies regarding knowledge storage and transfer Contemporary SHRM Application Tool

7 Step 1 Screen HR environmental factors Monitor/analyse data (past, present and future): New engineers hesitant to share their technical knowledge Internal/organisational environment: Unwillingness to share based on insecure culture External environment: IT industry regulation on intellectual property Step 2 Detect potential HR problem or opportunity Lack of knowledge-sharing culture Lack of training or structure to share knowledge Lack of recognition placed on knowledge sharing and transfer Customer complaints Step 3 Verify /falsify potential problem or opportunity Lack of knowledge transfer Slower customer service and lower quality Lack of knowledge-based incentives

8 Step 4 Devise plan and success criteria Percentage of engineers' half yearly incentives on the amount of knowledge they submitted online Incentives given for facilitating mentoring and training other engineers Create an ongoing knowledge base for the latest solutions to customers' product and systems problems. Structure the knowledge workers into level 1 (simple queries), level 2 (intermediate queries) and level 3 (advanced queries) Step 5 Implement the plan Structure engineers into level 1, level 2 and level 3 to provide a fast and orderly knowledge transfer (training) and customer service Facilitate engineers to make use of knowledge base to foster knowledge creation and transfer between 10 call centres worldwide Give incentives half yearly to engineers who submit their knowledge online and train other engineers to respond to customers with a wider range of knowledge Step 6 Evaluate against success criteria Has the profit increased since knowledge management was implemented? Look at the customer complaint statistics and determine whether they have decreased by a significant degree? Has the number of service deliveries increased? Has the collective knowledge of the organisation s employees increased?

9 Conclusion Knowledge management, organisational culture, organisational learning, and innovation and creativity can lead to a competitive advantage To retain knowledge, HR managers should monitor employees motivation Careful consideration needs to be given to creative and innovative employees