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MGT 403 Saudi Electronic University Knowledge Management Essay

MGT 403

Saudi electronic university


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KNOWLEDGE MANAGEMENT IN THEORY AND PRACTICE KNOWLEDGE MANAGEMENT IN THEORY AND PRACTICE Kimiz Dalkir McGill University AMSTERDAM • BOSTON • HEIDELBERG • LONDON NEW YORK • OXFORD • PARIS • SAN DIEGO SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Elsevier Butterworth–Heinemann 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA Linacre House, Jordan Hill, Oxford OX2 8DP, UK Copyright © 2005, Elsevier Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone: (+44) 1865 843830, fax: (+44) 1865 853333, e-mail: You may also complete your request on-line via the Elsevier homepage (, by selecting “Customer Support” and then “Obtaining Permissions.” Recognizing the importance of preserving what has been written, Elsevier prints its books on acid-free paper whenever possible. Library of Congress Cataloging-in-Publication Data Application submitted British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. ISBN: 0-7506-7864-X For information on all Elsevier Butterworth–Heinemann publications visit our Web site at Printed in the United States of America 05 06 07 08 09 10 10 9 8 7 6 5 4 3 2 1 Working together to grow libraries in developing countries | | This book is dedicated to my sons, Kemal and Kazmir, who are beginning their journey of discovery. CONTENTS Foreword Acknowledgements 1 INTRODUCTION TO KNOWLEDGE MANAGEMENT IN THEORY AND PRACTICE . . . . . . . . . . . . . . . . . . Learning Objectives Introduction What Is Knowledge Management? Multidisciplinary Nature of KM The Two Major Types of Knowledge The Concept Analysis Technique History of Knowledge Management From Physical Assets to Knowledge Assets Organizational Perspectives on Knowledge Management Why Is KM Important Today? KM for Individuals, Communities, and Organizations Key Points Discussion Points References 2 THE KNOWLEDGE MANAGEMENT CYCLE . . . . . . . . . Learning Objectives Introduction Major Approaches to the KM Cycle The Zack KM Cycle The Bukowitz and Williams KM Cycle The McElroy KM Cycle The Wiig KM Cycle An Integrated KM Cycle Strategic Implications of the KM Cycle Practical Considerations for Managing Knowledge xiii xv 1 1 2 4 6 8 9 12 16 17 18 20 21 21 22 25 25 26 26 26 32 35 38 43 45 45 vii Key Points Discussion Points References 3 KNOWLEDGE MANAGEMENT MODELS . . . . . . . . . . . Learning Objectives Introduction Major Theoretical KM Models The von Krogh and Roos Model of Organizational Epistemology The Nonaka and Takeuchi Knowledge Spiral Model The Knowledge Creation Process Knowledge Conversion Knowledge Spiral The Choo Sense-making KM Model The Wiig Model for Building and Using Knowledge The Boisot I-Space KM Model Complex Adaptive System Models of KM Strategic Implications of KM Models Practical Implications of KM Models Key Points Discussion Points References 46 46 46 47 47 48 49 50 52 52 53 56 58 61 66 67 72 72 73 73 74 4 KNOWLEDGE CAPTURE AND CODIFICATION . . . . . . . 77 Learning Objectives Introduction Tacit Knowledge Capture Tacit Knowledge Capture at Individual and Group Levels Interviewing Experts Structured Interviewing Stories Learning by Being Told Learning by Observation Other Methods of Tacit Knowledge Capture Tacit Knowledge Capture at the Organizational Level Explicit Knowledge Codification Cognitive Maps Decision Trees Knowledge Taxonomics Strategic Implications of Knowledge Capture and Codification Practical Implications of Knowledge Capture and Codification Key Points Discussion Points Note References 77 78 80 82 83 84 86 89 90 90 94 96 97 98 99 102 103 104 105 105 105 viii K N OW L E D G E M A N AG E M E N T I N T H E O RY A N D P R AC T I C E 5 KNOWLEDGE SHARING AND COMMUNITIES OF PRACTICE . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Learning Objectives Introduction The Social Nature of Knowledge Sociograms and Social Network Analysis Community Yellow Pages Knowledge-Sharing Communities Types of Communities Roles and Responsibilities in CoPs Knowledge Sharing in Virtual CoPs Obstacles to Knowledge Sharing The Undernet Organizational Learning and Social Capital Measuring the Value of Social Capital Strategic Implications of Knowledge Sharing Practical Implications of Knowledge Sharing Key Points Discussion Points Notes References 109 110 114 116 119 122 123 126 129 132 133 134 135 137 138 139 140 140 140 6 KNOWLEDGE APPLICATION . . . . . . . . . . . . . . . . . . Learning Objectives Introduction Knowledge Application at the Individual Level Characteristics of Individual Knowledge Workers Bloom’s Taxonomy of Learning Objectives Task Analysis and Modeling EPSS Knowledge Application at Group and Organizational Levels Knowledge Reuse Knowledge Repositories Strategic Implications of Knowledge Application Practical Implications of Knowledge Application Key Points Discussion Points Notes References 7 THE ROLE OF ORGANIZATIONAL CULTURE . . . . . . . . Learning Objectives Introduction Different Types of Cultures Organizational Culture Analysis 145 145 146 148 148 152 159 160 166 169 172 172 173 174 174 175 175 177 177 178 181 182 CONTENTS ix Culture at the Foundation of KM The Effects of Culture on Individuals Cultural Transformation to a Knowledge-Sharing Culture Organizational Maturity Models KM Maturity Models CoP Maturity Models Strategic Implications of Organizational Culture Practical Implications of Organizational Culture Key Points Discussion Points Notes References 8 KNOWLEDGE MANAGEMENT TOOLS . . . . . . . . . . . . Learning Objectives Introduction Knowledge Capture and Creation Tools Content Creation Tools Data Mining and Knowledge Discovery Blogs Content Management Tools Knowledge Sharing and Dissemination Tools Groupware and Collaboration Tools Wikis Networking Technologies Knowledge Acquisition and Application Tools Intelligent Filtering Tools Adaptive Technologies Strategic Implications of KM Tools and Techniques Practical Implications of KM Tools and Techniques Key Points Discussion Points Notes References 185 187 190 201 204 207 209 209 213 213 214 214 217 217 218 218 218 219 222 224 225 225 231 232 236 237 241 241 242 243 243 244 244 9 KM STRATEGY AND METRICS . . . . . . . . . . . . . . . . . 247 Learning Objectives Introduction Knowledge Management Strategy Knowledge Audit Gap Analysis The KM Strategy Road Map The Management of Organizational Memory Balancing Innovation and Organizational Structure Historical Overview of Metrics in KM KM Metrics The Benchmarking Method x K N OW L E D G E M A N AG E M E N T I N T H E O RY A N D P R AC T I C E 247 248 251 253 256 257 260 263 266 268 272 10 11 The Balanced Scorecard Method The House of Quality Method Key Points Discussion Points Notes References 275 277 279 279 280 280 THE KM TEAM . . . . . . . . . . . . . . . . . . . . . . . . . . 283 Learning Objectives Introduction Major Categories of KM Roles Senior Management Roles KM Roles and Responsibilities within Organizations The KM Profession The Ethics of KM Key Points Discussion Points Note References 283 284 287 290 294 296 297 300 301 301 301 FUTURE CHALLENGES FOR KM . . . . . . . . . . . . . . . . 303 Learning Objectives Introduction Political Issues Regarding Access The Politics of Organizational Context and Culture How to Provide Incentives for Knowledge Sharing Shift to Knowledge-Based Assets Future Challenges for KM KM Research Issues A Postmodern KM? Concluding Thoughts Key Points Discussion Points References 303 304 305 307 309 313 318 319 322 323 324 325 326 Glossary Index 329 345 CONTENTS xi FOREWORD Knowledge management as an organizational innovation has been with us for more than a decade. As a discipline, it has reached a state of maturity where we can now discern the principles, practices, and tools that make it unique. As a discourse, it has engendered new concepts and categories for us to make sense of the many important ways that organizations use knowledge to create value. Given the richness of ideas and innovations that have emerged under the rubric of knowledge management, and given the tremendous interest in schools and organizations to learn about the subject, it is something of a mystery that there are so few textbooks available. Perhaps it is because the field draws upon a wide range of subject areas, or perhaps it is because many different perspectives complicate the discussion of issues that engage knowledge management. Despite these difficulties, or perhaps because of them, there is a pressing need for a textbook that presents a thoughtful, systematic view of knowledge management as a coherent body of management theory and practice. The book in our hands answers this call. What then is knowledge management? The first chapter of the book gives a well-argued answer, but for our purposes here, we may define knowledge management as a framework for designing an organization’s goals, structures, and processes so that the organization can use what it knows to learn and to create value for its customers and community. Thus, there is no single, universal recipe for managing knowledge—each organization has to think through and design its own approach. This design process will have to encompass four sets of organizational enablers posed by these questions: What is the organizational vision or strategy driving the need to manage knowledge? What roles and structures ought to be in place? How to develop processes and practices that promote knowledge sharing and use? Which tools and platforms can support these efforts? For each of these enablers, research and practice in knowledge management has identified principles, exemplars, and lessons that can help to plan and execute an effective strategy. Considering these enablers also highlights the special strengths of this textbook. First and foremost there is the question of vision and strategy—why try to manage knowledge? The book makes clear in its early pages how the creation and application of knowledge can be the engine of organizational performance and growth. In their attempts to pursue this vision, many organizations quickly xiii discover that their most daunting task is to cultivate the norms of trust, cooperation, and mutual respect that nourish the creation and sharing of knowledge. The book recognizes this challenge, and devotes an entire chapter to examining in detail the impact of organizational culture. Consider next the issue of roles and structures. Departments in organizations are naturally territorial and guarded about losing control of where their information goes to, and how it might be used. The book highlights the importance of leaders such as the Chief Knowledge Officer or the Chief Information Officer who champion the collective benefit of sharing information, and who remove the barriers that prevent cooperation between departments. At the same time, knowledge sharing cannot simply be mandated through formal authority. Some of the most valuable knowledge sharing occurs in communities of practice that are self-organized around informal roles and relationships. A fine chapter in the book discusses communities of practice in the context of knowledge sharing. The process and practice of knowledge management is a central focus of the book. After a survey of major theoretical approaches in the literature, the book develops a new synthesis that views knowledge management as a continuous cycle of three processes: (1) knowledge creation and capture, (2) knowledge sharing and dissemination, (3) knowledge acquisition and application. This “KM Cycle” model forms the organizational principle of much of the book, and is carefully considered in the first six chapters. The balance between process and practice is a delicate one. A process that is regulated strictly by rules and policies can stifle creativity and experimentation. On the other hand, relying only on informal practices may mean that new learning is dispersed and unavailable to others in the organization. An alluring aspect of knowledge management is the range of tools and platforms that hold out the promise of transforming the ways we work with information and knowledge. Thus, there are tools that capture and represent content so that it can be accessed efficiently; tools that discover and extract knowledge; tools that facilitate social networking and community building; and tools that support communication and collaboration in groups. While the discussion of tools and techniques takes place throughout the book, a systematic analysis is presented in a well-structured chapter that covers many recent technological developments. A textbook is a pedagogical apparatus, and this book has incorporated a number of features that will enhance student learning and student-teacher interaction. Each chapter contains learning objectives, side-boxes of short cases, summaries of main messages, and questions for discussion. Beyond these features, the most engaging quality of the book is the combination of experience and enthusiasm that the author brings to the subject: the insights, the resonant examples, the lively language, and the occasional touch of humor. The book is an invitation to students to embark on an exciting and rewarding learning adventure. Chun Wei Choo Faculty of Information Studies University of Toronto xiv K N OW L E D G E M A N AG E M E N T I N T H E O RY A N D P R AC T I C E 1 INTRODUCTION TO KNOWLEDGE MANAGEMENT IN THEORY AND PRACTICE A light bulb in the socket is worth two in the pocket. Bill Wolf (1950–2001) This chapter provides an introduction to the study of knowledge management (KM). A brief history of knowledge management concepts is outlined, noting that much of KM existed before the actual term came into popular use. The lack of consensus over what constitutes a good definition of KM is addressed, and the concept analysis technique is described as a means of clarifying the conceptual confusion that persists over precisely what KM is. The multidisciplinary roots of KM are enumerated, together with their contributions to the discipline. The two major forms of knowledge, tacit and explicit, are compared and contrasted. The importance of KM today for individuals, for communities of practice, and for organizations are described, together with the emerging KM roles and responsibilities needed to ensure successful KM implementations. LEARNING OBJECTIVES 1. Use a framework and a clear language for knowledge management concepts. 2. Define key knowledge management concepts such as intellectual capital, organizational learning and memory, knowledge taxonomy, and communities of practice using concept analysis. 3. Provide an overview of the history of knowledge management and identify key milestones. 4. Describe the key roles and responsibilities required for knowledge management applications. 1 INTRODUCTION The ability to manage knowledge is becoming increasingly more crucial in today’s knowledge economy. The creation and diffusion of knowledge have become ever more important factors in competitiveness. More and more, knowledge is being regarded as a valuable commodity that is embedded in products (especially high-technology products) and in the tacit knowledge of highly mobile employees. Although knowledge is increasingly being viewed as a commodity or an intellectual asset, it possesses some paradoxical characteristics that are radically different from those of other valuable commodities. These knowledge characteristics include the following: ■ ■ ■ ■ Use of knowledge does not consume it. Transferral of knowledge does not result in losing it. Knowledge is abundant, but the ability to use it is scarce. Much of an organization’s valuable knowledge walks out the door at the end of the day. The advent of the Internet and the World Wide Web have made unlimited sources of knowledge available to us all. Pundits are heralding the dawn of the Knowledge Age supplanting the Industrial Era. Forty years ago, nearly half of all workers in industrialized countries were making or helping to make things; today that proportion is down to 20% (Drucker, 1994; Bart, 2000). Laborintensive manufacturing with a large pool of relatively cheap, relatively homogeneous labor and hierarchical management has given way to knowledge-based organizations. There are fewer people doing more work. Organizational hierarchies are being put aside as knowledge work calls for more collaboration. The only sustainable advance a firm has comes from what it collectively knows, how efficiently it uses what it knows, and how quickly it acquires and uses new knowledge (Davenport and Prusak, 1998). An organization in the Knowledge Age is one that learns, remembers, and acts based on the best available information, knowledge, and know-how. All of these developments have created a strong need for a deliberate and systematic approach to cultivating and sharing a company’s knowledge base— one populated with valid and valuable lessons learned and best practices. In other words, in order to be successful in today’s challenging organizational environment, companies need to learn from their past errors and not reinvent the wheel again and again. Organizational knowledge is not intended to replace individual knowledge but to complement it by making it stronger, more coherent, and more broadly applicative. Knowledge management represents a deliberate and systematic approach to ensure the full utilization of the organization’s knowledge base, coupled with the potential of individual skills, competencies, thoughts, innovations, and ideas to create a more efficient and effective organization. The Iaccoca Institute found that “CEOs, when asked how much of the knowledge that is available to the organization is actually used, responded ‘only about 20%.’ Yet if this figure represented average utilization of production capacity, it would only be acceptable to the most foolhardy CEOs” 2 K N OW L E D G E M A N AG E M E N T I N T H E O RY A N D P R AC T I C E (Agile People Enterprise Development Group Newsletter, Iacocca Institute, Pennsylvania, November 1996). Knowledge management (KM) was initially defined as the process of applying a systematic approach to the capture, structure, management, and dissemination of knowledge throughout an organization in order to work faster, reuse best practices, and reduce costly rework from project to project (Nonaka and Takeuchi, 1995; Pasternack and Viscio, 1998; Pfeiffer and Sutton, 1999; Ruggles and Holtshouse, 1999). KM is often characterized by a “pack rat” approach to content: “save it, it may prove useful sometime in the future.” Many documents tend to be warehoused, sophisticated search engines are then used to try to retrieve some of this content, and fairly large-scale and costly KM systems are built. Knowledge management solutions have proven to be most successful in the capture, storage, and subsequent dissemination of knowledge that has been rendered explicit—particularly lessons learned and best practices. The focus of intellectual capital management (ICM), on the other hand, is on those pieces of knowledge that are of business value to the organization— referred to as intellectual capital or assets (Bontis and Nikitopoulos, 2001). Although some of these are more visible (e.g., patents, intellectual property), the majority consist of know-how, know-why, experience, and expertise that tend to reside within the head of one or a few employee ...
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College of Administrative and Financial Sciences

Assignment 2
Deadline: End of Week 10, 28/03/2020 @ 23:59
Course Name: Knowledge Management Student’s Name:
Course Code: MGT 403

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Semester: 2nd

Academic Year: 1440/1441 H

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• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover page will NOT be accepted.



1. Provide brief description about knowledge management processes in organizations.
Knowledge management (KM) is applied in various aspects of the operations in any given
organization. It entails the deliberate and systematic management of knowledge in an organization
and employing strategies to utilize it to enhance organizational success. That is, it involves handling
the intricate knowledge and information in a firm more responsibly and intelligently (McInerney &
Koenig, 2011). It helps in increasing the usefulness of knowledge in a company. KM is utilized in
organizational processes such as in making crucial decisions and also in the management sector. It is
usually connected to the organization’s goals and objectives and participates in achieving them. To
effectively employ knowledge management in an organization, it is important to consider factors
such as the individuals, technological advancement and organizational features.
Organizations tend to possess various perspectives when it comes to knowledge management,
which includes the management, business and hands-on outlooks. These perceptions are related to
the different purposes that various departments in an organization have (Dalkir, 2005). In the
management outlook, it aims at identifying, systematic arranging, facilitating and keeping track of all
the practices that involve the utilization of knowledge. This is done to ensure that all the activities
that revolve around the use of complex information and expertise are aligned with the corporation's
strategies and objectives. From the business perspective, the organization aims at establishing the
reasons for utilizing knowledge, the exact areas to apply it and to what extent it is supposed to be
used. Things such as the strategies employed, the alliance formed, the products produced and the
acquisitions and divestments made are analyzed from a knowledge perspective. This helps in
understanding the use of knowledge and data in the basic operations of an organization. Hands-on
view entails analyzing the application of knowledge from the work and tasks perspective. It
scrutinizes the use of expertise in production activities. Therefore, knowledge management in an
organization can be termed as the deliberate and systematic review of the utilization of complex
information and data in organizational processes.



2. Explain the concept of organizational learning and describe the link between individual
and organizational learning.
Organizational learning can be termed as the process through which a given firm utilizes the
knowledge created through experience to improve itself. The process occurs in an individual, group,
and organizational level and affects the operations that an organization is involved in. Intuiting,
interpret, integrate and institutionalize are the concepts that are applied in organizational learning
(Bratianu, 2018). It is imperative to any firm since it helps in the processes of creating, retention and
transferring knowledge within an organization which helps in improving its operations. The main
actions involved include conceiving the knowledge, acting upon it and then reflecting. That is, an
idea is first conceived, and then implemented in the company and then an assessment is carried out.
Sharing of created knowledge is essential in ensuring that the organization can retain it even if the
individuals transfer to other firms or seize their operations in it.
A given organization should employ cert...

mwalimumusah (21255)
New York University

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