ASSIGNMENT

ASSIGNMENT

ASSIGNMENT

Part 1

Introduction

The increasing emphasis placed on knowledge in an organizational context has given rise to a new manifestation of capital which occurs as human or structural intellectual capital.

Therefore, the relation of knowledge management to corporate memory as well as the learning organisation is indicated. There are various ways in which knowledge management can be interpreted, the first being analogy; three of which occurring frequently in discussions of knowledge management (biological, economical and their convergence in bionomics) are discussed. Secondly, an indication of a paradigm shift in the approach to management is outlined and the different management styles (top-down, bottom-up and middle-up-down) are contrasted in relation to knowledge management. Finally the underlying approaches to knowledge management. (People-centred versus technology-centered) are considered.

Literature Review

Knowledge management is not a radically new concept. Horton indicated in 1979 in his evolution of resource management functions that the management of knowledge already began during the 1980s which comprised of expert systems and artificial intelligence and which recognized the economic and cultural value of knowledge (Horton 1979).

The information age has resulted in major structural changes on economic and social front and global trends have resulted in the shift towards a knowledge-based economy necessitating knowledge management. Increasing amounts of information are being generated but without the corresponding increase in the ability to manage, interpret and act on relevant information resulting in an information overload. It seems that future growth and prosperity depend on the ability to manage both information and knowledge.

Although terminologically confusing, in this scenario knowledge management is proposed, mainly by business consultants, as the key to survival within this mass of knowledge and the only means to gain and maintain the competitive edge in the global economic marketplace.

Considerations for implementation of knowledge management

In the world of management theories and practices, the last couple of decades belonged to the process movement or the process brokers. Most of the influential business books and rallying cries of the 1990s have focused on process improvement. Business process re-engineering, total quality management (TQM), time-based competition, the team-based organization, system and concurrent engineering, integrated SCM and logistics, and other strategies for superior business performance are all part of the process movement (Keen, 1997: 1). Even in the realm of business technology systems, like SAP and Baan, the focus was on process improvement. Keen describes the success of the process movement as follows:

'Each process improvement strategy can lead to notable successes. Firms that undertook process reform have reported radical, not incremental, improvements. Dramatic time and cost savings, quality improvements, and staff productivity are commonplace' (1997: 1-2).

But then goes on and comments on the Process Paradox.' 'Not all the news about process transformation has been good, however. Many firms have found that even dramatic levels of process improvement often don't translate into better business performance. In fact, they may not even prevent disaster, let alone bring success' (Keen, 1997: 2).

The reasons given for failures experienced by companies who followed the process movement are two ...