KNOWLEDGE MANAGEMENT

Knowledge Management



Knowledge Management

The importance of Human Capital in relation to the management of organizational knowledge

Introduction

Knowledge and intellectual capital is considered to be to the most strategic asset of any company. It is the primary source for creating value. Human capital as mostly organizations recognize is the strategic value of the human assets and is the total value of the workforce contributing towards the production. It is also referred to as the total capabilities, motivation, knowledge skills of the workers which are working in the company. Any worker cannot be termed or categorizes as a human capital. Only those people which are contributing towards the organization in productive manner and are related to decision making, reflecting their thinking in the work processes and bringing creativity in the business an organization are categorized in the field of human capital.

Knowledge management carries immense importance within an organization. Knowledge is considered to be the most valuable asset of an organization and is equal to any assets which are recorded on the balance sheet of the company. Knowledge management is the valuable corporate resources of the company which play an important role in its development and survival. When employees and organization progress along and grow together they possess a particular set of skills pertaining to only that company (Banks, 1999). It includes the knowledge of the business culture and structure which are unique to the organization. Knowledge about the company is similar to that of unconventional behaviour about the company which has been developed by the employees over the period of time. This knowledge cannot be duplicated or transferred to other people after ageing employees had left their positions. Knowledge pertaining to the organization is a combination of tacit and explicit knowledge which the mature workers have developed over the period of time while working in the organization and is considered to be the most valuable and significant asset of any organization. In order to survive in the market place, organizations needed to develop a mechanism which can transfer this knowledge among the existing workforce of the company (Bukowitz and Williams, 1999). As the old generation is being retired the companies wanted to make sure that the knowledge doesn't walk out with them. A growing concern which is developing among the organization currently is that the replacement of the knowledge which had been developed by the employees over the period of time and they are being retired.

Experienced employees who have heading the organization for years know the vast amount of information which is important and significant in running the affairs of the organization and helps it in combating in the fierce competition outside in the marketplace. However if this information is lost then it would be very expensive for the company

Information versus Knowledge

Knowledge is the information which is found among the employees of the organization and those employees are the human capital of the organization. The knowledge in the human capital can be later exploited for the ...