Introduction Organizations have experienced many operational changes as a result of shift to knowledge economy and streamlined processes due to technological innovations. Knowledge being a process of translating information and past experiences into workable and meaningful set of relationship which can be understood and applied by an individual, this concept of extricating knowledge has increased the value of employees for organizational outcomes and competitiveness. Apropos, in order to IDENTIFY, CAPTURE, ORGANISE AND DISSIMINATE INTELLECTUALL effort Knowledge Management is necessary. Technological advancements have greatly helped for the linking the processes and activities, thus coining the terms of E-workplace, E- commerce, E-community e.t.c. This not only has changed the outlook of the worker to bear basic technological knowledge, but also has transformed the business operations and organizational structure towards an increased globalization, hence growing focus towards Knowledge Management.
Background Owner, Sam Snapshot had been running the Gardening and Kitchen Ware industry for 25 years. A very close knit unit of 200 staff members. Family bondage among all members. 2
95% of staff associated for 20 years. Employees satisfied & proud to be member of Snap Shot Industries. A standard daily routine followed by everyone over a long period. Sam (owner) dies, Jim, (grandson) takeover the control of industry. Jim, a young graduate In Business Administration is full of zeal & enthusiasm. Expansion of company started from 200 to 600 employees. Introduction of computers, teams and competition, in the new system started. Old employees started getting panicking. Accidents, absenteeism, turn over started. Half of old employees retired within a year. Fast pace of changes confused both old and new employees. Many key persons left the company. Jim started facing problems like faults in production lines, lack of knowledge, and, where available, incomplete / sketchy knowledge and incomplete information. A great void occurred due to fast pace turn over and lack of processes information. Business got affected adversely. Costs went up and productivity chart showed decline. Jim felt helpless and panicky. Jim hired a consultant to find solutions to all the problems. Consultant concluded:- Introduction of better knowledge management. Shift of culture to a more collaborative focus. Leadership problem / challenges. 3
Questions Q.1. Why did the expert see the problem as the one linked to knowledge management? Ans1.Expert interviewed both past and present employees and found following:- a. Many key personals left the company. b. Fresh / young incumbatants had no knowledge to run the company and its processes. c. The employees with knowledge, discouraged communication with others, as well as maintaining and updating any SOP (standard Operating Procedures). d. No proper records were maintained neither any information use to be stored.
Q.2. Identify the types of knowledge which can be found in Snapshot industries. Consider which elements are strategic knowledge? Ans.2. Since, previously everyone was working as a master of his own field, having complete control over their work as well as section, without any knowledge / experience sharing with others, as to WHO DID WHAT. Hence, all they had was a TACIT Knowledge. Strategic knowledge management was lacking with all its facets of:- a. Knowledge Influences. (As to how to maintain and operate knowledge base, for strategic future direction of the company and for developing and sustaining / maintaining a knowledge culture). 4
b. Knowledge Foundations. (No structure was established for knowledge capture, sharing and integration, through HRM practices. Neither use of technology was made use of). c. Knowledge Application. ( no effort was made at the company for effective employment, protection and nurturing of knowledge, neither any need was felt for its identification, sharing, protection and management). d. Knowledge Enhancement &Review. ( Although this facet of strategic knowledge management implies more on a national basis, but somehow, at organizational level it should also be monitored and adopted in the context of respective operation fields). Q.3. Why were the resignations and retirements a problem? What could be done about this? Ans.3. Old employees working for more than 20 years started leaving the company, their resignations and retirement created following affects:- Experienced employees transferred no knowledge to the young and new employees. No proper record was maintained and no documentation of processes and operations was carried out. Information / experience gap created panic in the company. Changes and fast track pace didnt allow any time to new / young employees to coup up with the pressure. 5
Exiting Employees also took with them other good team members. With the exit of major chunk of employees, inconsistent / misdirected systems started to emerge.
What should have been done:-
The new team should have:- a. Tried to retain old / effective employees for some period of time, i.e. transition / probation period. b. Alarmed top management on turnover as well as resignations, to take immediate remedial measures and actions. c. Catered for, Knowledge management and maintenance of proper documentation. d. Ensured that old employees should pass on knowledge and experience to new incumbatants. e. Transformed the company gradually and slowly, in steps, and not on a fast pace. f. Taken into confidence old and experienced employees prior to implementing change.
Q.4. Identify the reasons for consultants concern over leadership. How has Jims leadership affected the business? Can you see some ways in which Jim could improve his practices? Ans.4. A few of the reasons for consultants concern over leadership are:- Rapid and fast pace changes in the company created anxiety among old employees. 6
Old system / way of working was replaced with new one very rapidly. And it can be assumed that it was done, without proper training, guidance and subsequent feedback. Computers were brought in the system. Absenteeism, accidents and turnover increased. Old employees started leaving the company, taking with them many others. Major faults in production lines, due to lack of knowledge. Above mentioned facts are the basic reasons, which consultant found and related it with the leadership style of the Jim, which affected the business adversely. What Jim could DO
Retain old employees. Keep a strong bondage among employees, especially the old and new one. Introduction of modern technology should have been at a moderate pace, in phases. Employees should have been taken into confidence for the impending changes / overall change scenario. Proper training classes / literacy programs/ workshops for computers should have been organized. A blend of both old and new employees should have been incorporated and maintained. Q.5. In your opinion, which areas most need to reflect Knowledge management principles? Why? 7
Ans.5. Following areas need to reflect the KM principles:- a. Top management need to address the KM principles as well as issues. b. Top management to give clear vision, objective, direction, and policy of the company.