KNOWLEDGE MANAGEMENT - JAN 2017
BACHELOR OF BUSINESS ADMINISTRATION WITH HONOURS SEMESTER JANUARY 2017 CBKI4103 KNOWLEDGE MANAGEMENT
MATRICULATION NO
:
791016140!1001
IDEN IDENT TITY ITY CA CARD RD NO"
:
7910 791016 16#1 #14# 4#0 0!1 !1
TELE$HONE NO"
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019#6641264
E#MAIL
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%&'%()*%%+,-%.//"/'
LEARNING CENTRE
:
SHAH ALAM
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DESCRIPTION
PAGE
Introduction - Purpose of the knowledge management
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Important of knowledge management - PB Property
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- PB Education
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- PB Road & ighway !aintenance
5
- PB Research & "e#elopment $R&"%
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he specific knowledge in people' process & product
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*E+I !odel - *ocialisation - E.ternalisation - +om/ination - Internalisation
, ,-,, ,, ,,
*ocialisation & E.ternalisation
,0
+om/ination & Internalisation
,3-,4
+onclusion
,5
References
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INTRODUCTION
Purpose of the Knowledge Management (KM) in business
Knowledge management (KM) is the systematic management of an organization's knowledge assets for the purpose of creating value and meeting tactical & strategic requirements; it consists of the initiatives processes strategies and systems that sustain and enhance the storage assessment sharing refinement and creation of knowledge! KM involves the understanding of"
#here and in what forms knowledge e$ists; what the organization needs to know; how to promote a culture conducive to learning sharing and knowledge creation; how to make the right knowledge availa%le to the right people at the right time; how to %est generate or acquire new relevant knowledge; how to manage all of these factors so as to enhance performance in light of the organization's strategic goals and
short term opportunities and threats! reateprovide the right tools people knowledge structures (teams etc!) culture etc! so as to enhance learning; it must understand the value and applications of the new knowledge created; it must store this knowledge and make it readily availa%le for the right people at the right time; and it must continuously assess apply refine and remove organizational knowledge in conunction with concrete long and short term factors!
An overview of the assignment content
he aim of this paper is to analysis a %usiness scenario of Knowledge Management (KM) in determine importance of managing knowledge and knowledge advantage at *rotasco +erhad (*+)! *+ %usiness activities are organized into four main areas , *roperty -evelopment .oad and /ighway Maintenance .&- in 0nfrastructure echnology and 1ducation! he primary purpose of knowledge management is to approach in achieving *+2s o%ectives %y making the %est use of the knowledge such as improved performance competitive advantage innovation the sharing of lessons learned integration and continuous improvement of the *+!
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THE IMPORTANCE OF KNOWLEDGE MANAGEMENT TO PROTASCO BERHAD (PB)
KM need to %e practiced in *+ to fulfils its mission which reaches the corporate o%ectives and strategies and identifies the most valua%le knowledge from the 3sea of information4! hrough its operations *+ acquires creates processes and stores a significant amount of data and information some of which is turned into knowledge! 5ince there are different su%sidiaries under *+ we can analysis how the important of managing knowledge for each department and the details as %elow"
1. PB Property
6or *+ *roperty the concept of KM will give a %etter way of management and also will generate more profit! 0t an alternative way ena%led %y technology and produced %y knowledgea%le people such as architect and engineer!
0mplementing KM in *+ *roperty ena%les the employees especially architect and engineer to learn from its corporate memory share knowledge and identify competencies in order to %ecome a forward thinking planning and learning!
*ractises KM in *+ *roperty also can drive innovation helps to attract new and retain valua%le customers that qualified to %uy property and in the process increase organisational productivity and seeking the %est practises in all *+ *roperty activities to providing a %etter service to customers!
. PB !ducation
*ractices KM in *+ 1ducation gives most effective way to transfer efficient methods models ideas practice is creating network as field of interaction that will provide circulation of them as well as underpin innovation and development!
KM of *+ 1ducation system must reflect and comprise information at all levels starting from management level to student level in order to improve professional knowledge of employees to achieve quality of lecturers and students!
*+ 1ducation is considered to %e responsi%le for students2 achievements in a democratic contemporary and fle$i%le educational system! 5o student2s
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knowledge skills talents should %e preserved in the knowledge %ase! 0t helps them to create new knowledge and gives platform to newly enrolled students!
Knowledge management in *+ 1ducation can provides techniques for capturing tacit knowledge hidden in e$pertsindividual mind and practices and records it for future use! 0t is also useful for %uilding knowledge for pro%lem solving and decision making purpose! 7uality and 5ervice improvement is also achieved!
". PB #oad and $ighway Maintenance
*+ road engineering has %ecome a comple$ discipline where road safety environmental and socio,economic issues are as important as technical design and construction supervision!
*+ .oad are develop specify procedures for the esta%lishment of criteria the road safety %y analysing data from road condition and tra ffic surveys and developing estimates for cost improvement and maintenance!
*+ .oad and /ighway Maintenance attach much importance to the planning and design of facilities to meet specific proect environmental requirements while incorporating financial constraints!
%. PB #esearch and &evelopment (#'&)
KM can decide the technical direction that the *+ .esearch and -evelopment (.&-) should take and through .&- to provide leading,edge technologies that will spawn new solutions in infrastructure technology
*+ .esearch and -evelopment (.&-) provide detailed operational guidelines data and information for infrastructure technology to prevent future pro%lems! 0t also on,going monitoring and research to continue to provide improve understanding and guidelines!
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THE SPECIFIC KNOWLEDGE IN , PEOPLE, PROCESS AND PRODUCT IN PB
KM in organization such as *+ is formed via unique patterns of interactions %etween people process and product! *eople generate share apply knowledge and stimulate knowledge sharing! *rocess entails the methods to o%tain generate arrange share and transfer knowledge! *roduct involves improved or create new product through KM! KM solutions and knowledge can impacts on *+ performance and the impacts can %e on the following" 8! *eople 9! *rocesses :! *roducts
MPA* +, P!+P-! 1*eople
has an important role for knowledge management in *+! he whole success in
KM depends on the willingness of people in sharing their knowledge! rust is a necessary element for the willingness to share knowledge! his is achieved through com%ination of motivation recognition and rewards realignment of performance appraisal systems and other measurement systems! 0mpacts on *eople KM can facilitate employee learning! KM also causes employees to %ecome more fle$i%le and enhances their o% satisfaction! KM impacts people through" 1mployee earning 1mployee
1. Impact on employees’ learning ,
o %etter understand how *+ manage and encourage knowledge creation among their employees we propose a model of knowledge creation that consist of four key elements of 510 Model that together shall interact to form a knowledge spiral with knowledge creation as an outcome! he four elements are the 510 process (knowledge creation through interactive transformation of tacit and e$plicit knowledge)
5ocialization allows an individual to acquire tacit knowledge directly from other workers through shared o%servations and e$perience! 1$ample " through oint activities such as meetingsinformal chats
1$ternalization involves transformation of tacit knowledge to e$plicit concepts! 1$ample" writing a report on lessons learned from a proect! CBKI4103
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0nternalization tacit knowledge is transformed to e$plicit through documentation and hands on e$perience and new knowledge is internalized! 1$ample" when employees preparing for a later proect can read it!
ommunities of *ractices it is an organic and self,organized group of individuals who are dispersed geographically or organizationally %ut communicate regularly to discuss issues of mutual interest
2. Impact on employee adaptability ,
he important element leads to adapta%ility regarding to change in getting the competitive advantage and also evaluating the responsi%ilities on the part of employer in order to maintaining certain steps for the %etterment of his employees through training and development empowerment and culture!
,
+erger (8>>?) defined the 3change4 as it is a repetitive nature of practice in keeping in the line of the organization for operating and performing the most successful manners over its rivals! #hen an organization implements these manners in a true spirit in creating the environment where an employee feels himself as a valua%le person in the organization! 0t can evaluate elements which lead to an organization to adapt changes and according to that adapta%ility a learning %ased environment is prevailed so that employees are willing to perform to that e$tent where the organization is required! hese elements are also lead to employee2s retention to %e remained loyal to organization2s goals and o%ectives!
3. Impact on employee job satisfaction ,
=o% satisfaction has %een defined 3as the feelings a worker has a%out his or her o% or o% e$periences in relation to previous e$periences current e$pectations or availa%le alternatives4 (+alzer Kihm 5mith 0rwin +achiochi .o%ie 5inar & *arra 8>>@ p! @)! 0n organizations employees sharing knowledge with one another turnover rates get reduced affecting revenue and profit! 1mployees feel %etter %ecause of their knowledge acquisition and skill enhancement! 1mployees2 market value is enhanced relative to other organizations2 employees KM also provides solutions to employees for pro%lems they encountered earlier and effectively address those!
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(8) Mentoring and training are e$cellent motivators; (9) ommunities of *ractice provide intimate and socially validated control over their own work practices
MPA* +, P#+!!
,
KM represent the %asic operations of knowledge ena%lers provide the infrastructure necessary for *+ to increase the efficiency of knowledge processes! Knowledge Management can include activities such as creation sharing storage and usage for all departments for each su%sidiary under *+ such as marketing manufacturing accounting engineering and human resources! hese impacts can %e seen along : (three) maor dimensions as follows" 1) Impact on process effectiveness
Select and performing the most suitable processes and making the best decision
1ffectiveness is descri%ed as the capa%ility of producing a specific desired effect or in other words 3getting the right things done4 (-ruker 9AA?)! 0mproving process effectiveness supports company performance simply %y ensuring that each process delivers the results that it needs to! 5tandardization also enhances process effectiveness %y ensuring that different parts of the organization are doing the same things in the same way! 0t can smooth transitions %etween different systems and provide %etter control over process and data quality!
2) Impact on process efficiency
erforming the processes immediately and under lo! cost. 0mproving the efficiency gains in processes (e$ample" faster lower cost and less rework) are a high priority for their improvement initiatives
0mprove efficiency %y eliminating duplication of work and reducing the need for manual interventions!
3) Impact on process innovation
"s the adoption# creates# generate and implement ne! ideas# processes# products or services.
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0nnovation is the process that connects new ideas to new processes and products (<%oelmaged 9A89) and requires organizations to go %eyond learning from repetition defect correction and a desire for reducing process variation!
0nnovation performance can %e positively impacted %y process improvement and process design! KM has %een found to ena%le frequent improved %rainstorming thus enhancing process innovation! KM c an ena%le organizations %y %etter e$ploitation of new ideas! 3he power of intellectual capital is the a%ility to %reed ideas that ignite value4
MPA* +, P#+&/*
,
he important of knowledge management on product is gaining or sustaining product success on market! 0f managed effectively knowledge can %e used to reduce B*0 (Bew *roduct 0ntroduction) proect time improve quality and increase customer satisfaction (5i$otte & angley 9AAA)! 0mpact on product can %e as follows" 1) Impact on value added products
Calue,added products are two of the %est strategies *+ can employ to improve net profita%ility! Calue,added products can open new markets and e$tend the marketing! KM processes can help organizations offer new products or improved products that provide a significant additional value as compared with earlier products
2) Impact on kno!ledge based products
KM can have a significant impact on products that are knowledge %ased! 1$ample as consulting and software development!
onsultants can quickly access and com%ine the %est availa%le knowledge and %id on proposals that would otherwise %e too costly or too time D consuming to put together! *+ can place solutions to software pro%lems of customer in a sharea%le knowledge %ase! et customers download software patches %ased on their answer to an automated Ewizard E system that prompts customer with a series of questions aimed at diagnosing the customer needs!
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SECI MODEL
he 510 model is a well,known conceptual model that was first proposed %y Bonaka (8>>8 and e$panded %y Bonaka and akeuchi 8>>F)! 0t descri%es how e$plicit and tacit knowledge is generated transferred and recreated in organizations! #hile it was first proposed within the conte$t of %usiness organizations the model can easily %e applied to education as e$plored %y in in and /uang (9AAG) and Heh /uang and Heh (9A88)! #e can refer as the 510 Knowledge conversion Model as shown as %elow"
he 510 model consists of four modes of knowledge conversion"
1.
ociali0ation (*acit to*acit)
0t process converts tacit knowledge into new tacit knowledge through shared e$perience and this takes place through every social and cultural process linked to ongoing organizational activities (Martin,de,astro et al! 9AAG)! 5ocialisation typically occurs in a traditional apprenticeship rather than from written manuals or te$t%ooks!
2.
!ternali0ation (*acit to !plicit)
0t process articulates tacit knowledge into e$plicit knowledge which happens when the firm e$presses formally its internal rules of functioning or when it e$plicitly sets organizational goals and is captured %y writing it down or on computer! #hen tacit
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knowledge is made e$plicit knowledge is crystallized thus allowing it to %e shared %y others and to %ecome the %asis of new knowledge (Bonaka et al! 9AAA)! 3.
ombination (!plicit to !plicit)
0t process converts e$plicit knowledge into more systematic sets of e$plicit knowledge! 1$plicit knowledge is collected from inside or outside the organization and then com%ined edited or processed to form new knowledge while com%ination is the process of converting said e$plicit knowledge into more comple$ and systematic sets of e$plicit knowledge! he new e$plicit knowledge is then disseminated among the mem%ers of the organization and creative use of computerised communication networks and data%ases can facilitate this mode of knowledge conversion! #hen the auditor of a company collects information from throughout the organisation and puts it together in a conte$t to make a financial report that report is new knowledge in the sense that it synthesises knowledge from many different sources in one conte$t (Bonaka et al! 9AAA)!
4.
nternali0ation ( !plicit to *acit)
0t process em%odies e$plicit knowledge into tacit knowledge suggesting that we internalize the e$plicit knowledge to our tacit knowledge! +y internalising any creation of e$plicit knowledge is shared throughout an organisation and converted into tacit knowledge %y individuals! 0nternalisation is closely related to Ilearning %y doing' for e$ample training programmes can help trainees to understand an organization and themselves or reading documents or manuals a%out their o%s and the organisation trainees can internalise the e$plicit knowledge written in such documents to enrich their tacit knowledge %ase! his tacit knowledge accumulated at the individual level can then set off a new spiral of knowledge creation when it is shared with others through socialisation (Bonaka et al! 9AAA)!
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SOCIALISATION AND EXTERNALISATION OF KNOWLEDGE IN PB
ocialisation (*acit to *acit)
0t occurs when tacit knowledge is created through shared e$perience %etween individuals (Bonaka & Konno 8>>G)!
!ternalisation (*acit to !plicit)
0t occurs when an individual2s tacit knowledge is translated into comprehensi%le forms that can %e understood and e$pressed %y others! Knowledge has %een successfully transferred when tacit knowledge (i!e! management wisdom) %ecomes e$plicitly stated often through e$change mechanisms such as two,way dialogue active listening and the visual depiction of ideas and concepts (Bonaka & Konno 8>>G)! ) the knowledge transfer gap is most evident when tacit knowledge is converted to e$plicit knowledge (1$ternalization) . 0t is apparent that the e$ternalization mode of knowledge conversion which is an activity to make engineer e$plicitly e$press the desire or need to create concepts appro$imately corresponds to the function of e$pressing language meaning to management2s *+ (or the social language of *ower)! his is %ecause it can %e an e$plicit activity e$pressing something %ased on one2s own differentiated e$perience from those of others! 0t is also %ecause it can create order from chaos in the name of Efuture2 using individual imagination (o,operation architect and engineer in *+ *roperty)!
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COMBINATION AND INTERNALISATION OF KNOWLEDGE IN PB
ombination (!plicit to !plicit)
0t occurs when individuals or groups e$change and com%ine their different %odies of e$plicit knowledge through social interactions there%y amplifying the e$plicit knowledge! Bonaka and Konno (8>>G) e$plain that this conversion relies on three processes" collecting and com%ining e$ternalized knowledge; disseminating this knowledge; and revising and reconceptualizing the e$plicit knowledge to make it more usa%le and understanda%le! om%ination e$amples include academic forums and research processes (*osner 9AA>) as well as face,to,face meetings and audio or we%,%ased conversations! Bonaka (8>>?) connects com%ination with information processing in *+! his is simply %ecause com%ining various types of e$plicit knowledge does not occur without the transmissive nature of knowledge in the e$plicit form which ena%les people to share and identify with others! he new com%ination of knowledge leads to creating new products production methods markets materials and new system in *+!
nternalisation (!plicit to *acit)
0t occurs when newly created e$plicit knowledge is converted into the organization2s tacit knowledge (Bonaka & Konno 8>>G)! his process can occur at an individual group or organizational level! Bonaka and Konno (8>>G) e$plain that e$plicit knowledge needs to %e em%odied in action and practice and internalized through 3learning %y doing4! 1$amples of internalization include practicums on,the,o% training simulations and e$periments! Bonaka (8>>?) associates internalization with organizational learning and action! he quintessential tool of the internalization mode is through documentation and manuals that ena%le other employees to indirectly em%ody what the mem%ers of a proect e$perienced!
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process ena%les the mem%ers in *+ to internalize shared knowledge in an implicit (tacit) form which has a horizon of identification maintaining and developing the latent value of the organization! he internalization mode of knowledge conversion that highlights the importance of the linkage of internalization processes and the other processes needed in order to develop and e$pand the knowledge %ase in the *+!
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CONCLUSION
Knowledge management (KM) is the systematic management of an organization's knowledge assets for the purpose of creating value and meeting tactical & strategic requirements; it consists of the initiatives processes strategies and systems that sustain and enhance the storage assessment sharing refinement and creation of knowledge! KM initiatives help to improve %usiness processes and can reduce %usiness processing time simply %ecause they can share %est practices! 0t also improves through conversations and discussions that can generate valua%le knowledge for forecast saving and cost reduction! Jrganizational culture can change towards a knowledge sharing culture where employees are driven to generate and share knowledge for the purpose of organisational improvement! 1mployees are motivated to share their knowledge %ecause they feel more valued for their intellectual capa%ilities and skills when they can see their contri%ution towards improvements in the organization! KM can have impact on the organization performance and the impacts can %e people processes and product! KM can have impacts on people %ased on employee learning employee adapta%ility and employee o% satisfaction! 0mpacts on processes can %e effectiveness efficiency and innovation! KM impacts on product also can %e %ased on value added product and knowledge %ased products! 510 model in Bonaka2s theory of organizational knowledge creation has %een e$amined %y *+ in their organization!
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REFERENCES
Meso *! and 5mith .! (9AAA) < .esource,+ased Ciew of Jrganizational Knowledge Management 5ystems! =ournal of Knowledge Management ? 99?,
9:?! Myers *! (8>>) Knowledge Management and Jrganizational -esign!
+utterworth,/einemann J$ford! Maertensson M! (9AAA) < ritical .eview of Knowledge Management as a
Management ool! =ournal of Knowledge Management ? 9A?,98! Masa2deh .! J%eidat +!
=ournal of Knowledge Management 89 :,8F! J%eidat +!
onsultancy 6irms! Management .esearch .eview :>!
?A 8:G,9A:! 5mith !
-issertation Bova 5outheastern Lniversity 6ort auderdale! Kushwaha *! and .ao M!K! (9A8F) 0ntegrative .ole of KM 0nfrastructure and KM 5trategy to 1nhance 0ndividual ompetence" onceptualizing Knowledge
*rocess 1na%lement! C0B1 ?F :@,:>! Masa2deh .! and 5hannak .! (9A89) 0ntermediary 1ffects of Knowledge Management 5trategy and earning Jrientation on 5trategic
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