Managing Knowledge Essay Example | Topics and Well Written Essays - 2500 words

Managing Knowledge - Essay Example Knowledge is passive, analytic and atomistic (Thomas, Kellogg & Erickson, 2001). This does not imply that knowledge is power, rather applied knowledge is power. To apply knowledge, to use the abundance of information that is available in any organization today, codification of knowledge is essential. Codification of knowledge into information implies making knowledge portable, re-usable and transferable within the organization (Hall, 2006). Only when this is possible can knowledge become power. Organizational knowledge can then be used to gain competitive edge over the rivals but the organization should know how to use that power. Technological advancements have made it possible to retain knowledge and transmit it to the persons concerned within the organization. Knowledge can be a powerful weapon when retained, transmitted, disseminated and applied. It is thus important to understand the implications and the ways of retaining and applying knowledge. Knowledge has been classified into two categories - tacit and explicit. Explicit knowledge is that which has been previously defined and codified. It is usually gained through formal education, training, books and now the internet. Explicit knowledge is static and does not have the capacity to renew itself (Ehin, 2008). It requires an outside entity to keep it current. Tacit knowledge on the other hand is acquired by interacting with others and is connected to life's experiences. Tacit knowledge is the basis for generation of new knowledge or "the key to knowledge creation lies in the mobilization and conversion of tacit knowledge" (Nonaka cited by Marwick, 2001). The individual tacit knowledge characterizes the human capital of an organization. Human capital is the combination of genetic inheritance, education, experience and attitude towards life and business (Bontis & Fitz-enz, 2002). Human capital is the source of innovation and strategy. Sustained competitive advantage can accr ue from a pool of human capital. Human capital adds value and is not substitutable. An organization is not a passive repository of knowledge. The tacit knowledge in the form of organization culture may interact with the explicit knowledge of the individual. The core competencies of an organization incorporate both tacit and explicit knowledge and should be conceived as a mix of skills and technologies (Lindgren & Wallstrom, 2000). These interactions and combinations result in new knowledge as organizational learning or innovation. This knowledge has to be efficiently managed so as to derive competitive advantage. Managing knowledge Managing knowledge or knowledge management (KM) is nothing more than getting the right information to the right people at the right time. It is also known by other terms like organizational learning, organizational memory and expertise management. Most organizations may not even be aware of the knowledge they have, let alone knowing how to manage knowledge. They may under estimate the value and creation of knowledge; they may even unknowingly give away what they possess (Earl & Scott, 2001). They may defer the sharing of knowledge or under invest in the utilization of the knowledge. As organizations started recognizing these facts, they created the post of a Chief Knowledge Officer (CKO), whose popularity and demand has increased in the recent