Why Knowledge Management Is Important?
Knowledge Management, (KM) is a concept and a term that arose approximately two decades ago, roughly in 1990. Davenport (1994) offered the still widely quoted definition:
"Knowledge management is the process of capturing, distributing, and effectively using knowledge."
This definition has the virtue of being simple, stark, and to the point. A few years later, the Gartner Group created another second definition of KM, which is perhaps the most frequently cited one (Duhon, 1998):
"Knowledge management is a discipline that promotes an integrated approach to identifying, capturing, evaluating, retrieving, and sharing all of an enterprise's information assets. These assets may include databases, documents, policies, procedures, and previously un-captured expertise and experience in individual workers."
This definition has the virtue of being simple, stark, and to the point. A few years later, the Gartner Group created another second definition of KM, which is perhaps the most frequently cited one (Duhon, 1998):
"Knowledge management is a discipline that promotes an integrated approach to identifying, capturing, evaluating, retrieving, and sharing all of an enterprise's information assets. These assets may include databases, documents, policies, procedures, and previously un-captured expertise and experience in individual workers."
Facilitates Decision-Making Capabilities
Importance of decision making
1. Implementation of managerial function: Without decision making different managerial function such as planning, organizing, directing, controlling, staffing can’t be conducted. In other words, when an employee does, s/he does the work through decision making function. Therefore, we can say that decision is important element to implement the managerial function.
2. Pervasiveness of decision making: the decision is made in all managerial activities and in all functions of the organization. It must be taken by all staff. Without decision making any kinds of function is not possible. So it is pervasive.
3. Evaluation of managerial performance: Decisions can evaluate managerial performance. When decision is correct it is understood that the manager is qualified, able and efficient. When the decision is wrong, it is understood that the manager is disqualified. So decision making evaluate the managerial performance.
4. Helpful in planning and policies: Any policy or plan is established through decision making. Without decision making, no plans and policies are performed. In the process of making plans, appropriate decisions must be made from so many alternatives. Therefore decision making is an important process which is helpful in planning.
5. Selecting the best alternatives: Decision making is the process of selecting the best alternatives. It is necessary in every organization because there are many alternatives. So decision makers evaluate various advantages and disadvantages of every alternative and select the best alternative.
6. Successful; operation of business: Every individual, departments and organization make the decisions. In this competitive world; organization can exist when the correct and appropriate decisions are made. Therefore correct decisions help in successful operation of business.
The highly complex, interrelated and integrated global economy of the 21st century presents new challenges to managers and employees attempting to effectively compete in such a dynamic business environment. A learning organization is an organization that encourages and facilitates learning in order to continually transform itself to survive and excel in a rapidly changing business environment.
2. Pervasiveness of decision making: the decision is made in all managerial activities and in all functions of the organization. It must be taken by all staff. Without decision making any kinds of function is not possible. So it is pervasive.
3. Evaluation of managerial performance: Decisions can evaluate managerial performance. When decision is correct it is understood that the manager is qualified, able and efficient. When the decision is wrong, it is understood that the manager is disqualified. So decision making evaluate the managerial performance.
4. Helpful in planning and policies: Any policy or plan is established through decision making. Without decision making, no plans and policies are performed. In the process of making plans, appropriate decisions must be made from so many alternatives. Therefore decision making is an important process which is helpful in planning.
5. Selecting the best alternatives: Decision making is the process of selecting the best alternatives. It is necessary in every organization because there are many alternatives. So decision makers evaluate various advantages and disadvantages of every alternative and select the best alternative.
6. Successful; operation of business: Every individual, departments and organization make the decisions. In this competitive world; organization can exist when the correct and appropriate decisions are made. Therefore correct decisions help in successful operation of business.
Builds Learning Organizations by Making Learning Routine
The highly complex, interrelated and integrated global economy of the 21st century presents new challenges to managers and employees attempting to effectively compete in such a dynamic business environment. A learning organization is an organization that encourages and facilitates learning in order to continually transform itself to survive and excel in a rapidly changing business environment.
Stimulates Cultural Change and Innovation
Literature on knowledge management and organizational innovation emphasizes the importance of
culture as a major determinant in innovation outcomes. In creating a supportive organizational environment for innovation, several practices relating to cultural barriers have been identified in the literature. As innovation is essentially about converting ideas into something profitable, encouragement to supply ideas needs to be substantial in order to channel the creative ability of the employees to convert ideas into innovations. Therefore, organizations need to facilitate innovation by creating and
maintaining an environment that supports idea generation and creativity.
culture as a major determinant in innovation outcomes. In creating a supportive organizational environment for innovation, several practices relating to cultural barriers have been identified in the literature. As innovation is essentially about converting ideas into something profitable, encouragement to supply ideas needs to be substantial in order to channel the creative ability of the employees to convert ideas into innovations. Therefore, organizations need to facilitate innovation by creating and
maintaining an environment that supports idea generation and creativity.
Sources:
Chapter 5 » Meaning and Importance of Decision Making - Reference Notes. (2013, January 1). Retrieved October 17, 2014.
Quast, L. (2012, August 20). Why Knowledge Management Is Important To The Success Of Your Company. Retrieved October 17, 2014.
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