Acknowledgements

I genuinely give my regards to the direction and suggestion given by Mr. Shyaman Udayanga, Senior Lecturer, Head of the Department of Business Administration, helped me out to complete this assignment accurately. Also I would give my regards to my wife as allowing me to allocate more time on this by providing me tremendous support for the completion since doing most of the house work. I would be really thankful to the staff of the library for their encouraging helpfulness in finding reference materials in a short time period.

Introduction of Knowledge
It has been proven that an organizations most valuable resources are the employees. The ideas, in another word knowledge restrained character possibly, will be worth more to an organization than all the other costly resources. In here, before identify what is organizational knowledge, should know the knowledge itself. Knowledge is rather describe as know how ability. That can be gathered in various ways mainly developing expertise and ideas, there the experience also counts. In other words Knowledge is the individual potentials to draw distinctions within an area of action based on an appreciation of context or theory or both. There is however no single agreed definition of knowledge presently, Knowledge is a term that has been actively and continually defined. Nor any view of one, and there remain several competing theories. Early tendencies were to define based on dualisms and abstractions. From mere dualism emerges a more sophisticated dynamic of emergent knowledge, as built upon experience, observations and reasoning. (By Aristotle) In Wikipedia the term knowledge represents the certain understanding of a subject with the ability to apply it for a particular purpose upon suitability.

Organizational Knowledge by N PJ Thushara

Knowledge is defined by the Oxford English Dictionary as

1. Expertise and skills acquired by a person through experience or education. And

the theoretical or practical understanding of a subject.

2. Known in a particular field, facts and information. 3. Awareness or familiarity gained by experience of a situation
Considering all the definitions, states an idea of knowledge as expertise or skills, or awareness or familiarity obtained by an individual through theoretical or practical understanding of a subject what is known in a particular field with use of the facts and information and experience of situations. Particularly, there exist confusion surrounding not only the definition but also environment, types and functions which knowledge imposes in an organization. Yet, no one is comfortable simply discard from the complication of knowledge especially when there seems that knowledge matters considerably in the continued existence and intensification. In most cases there are two types of knowledge are defined namely, 1. Explicit knowledge 2. Tacit knowledge. It seems that the tacit and explicit knowledge should be seen as a spectrum rather than as definitive points. So, all knowledge is a mixture of tacit and explicit elements rather than being one or the other. According to Professor Nonaka, knowledge construction is a spiraling process of interactions among both types, explicit and tacit knowledge. The interactions between the explicit and tacit knowledge lead to the construction of new knowledge. Dynamic Knowledge Creation by Nonaka, Toyama and Konno) However, in order to understand knowledge, it is vital to describe these theoretical different between those itself.

Organizational Knowledge by N PJ Thushara

Explicit knowledge
The knowledge that can be expressed in terms and numeric transferred in the form of data, scientific formulae, product specifications, manuals, universal principles, and knowledge is able to be passed on across individuals formally and systematically. This type of knowledge has been prevailing in the Western countries in particular. In another words explicit knowledge means Codified knowledge that can be transmitted in formal, systematic language. (Tacit and explicit knowledge, Author Harry Collins describes Polanyis view)

Tacit knowledge
Philosopher Michael Polanyi says much of what humans know we cannot say. And much of what we do we cannot describe. For example, how do we know how to ride a bike when we cant explain how we do it? Abilities like this were called tacit knowledge Tacit knowledge is found in the minds of human stakeholders. It includes cultural beliefs, values, attitudes, mental models, etc. as well as skills, capabilities and expertise (Tacit and explicit knowledge, Author Harry Collins describes Polanyis view) That is largely experience based. Because of this, tacit knowledge is often context dependent and personal in nature. It is hard to communicate and deeply rooted in action, commitment, and involvement For an example there was a database system halt. No one could access the central data base. IT support specialist has been called. IT professional was able to get the system up and running with his experience. But it wasnt easy for him to sates his knowledge into a document to transmit that his know-how to a beginner. This is one reason why experience in a particular field is so highly regarded in the job market. According to Polanyi, there are two dimensions to tacit knowledge: Technical dimension: Which includes the kind of informal personal skills of crafts often referred to as know-how.

Organizational Knowledge by N PJ Thushara

Cognitive dimension: It consists of beliefs, ideals, values and mental models which are deeply ingrained in us and which we often take for granted. While difficult to articulate, this cognitive dimension of tacit knowledge shapes the way we perceive the world. In eastern word, there is mere variant of unfolding the tacit knowledge for an example Japanese success on automobile can be taken as being primarily tacit which something is not easily visible and expressible (Nonaka and Takeuchi view, described in Principles of knowledge management By Eliezer Geisler, Nilmini Wickramasinghe). The mixture of the two categories makes it possible to conceptualize four conversion patterns. (Nonaka_etal_2000_SECI.pdf: SECI, Ba and Leadership: a Model of Dynamic Knowledge Creation by Nonaka, Toyama and Konno)

Different between Implicit and Tacit Knowledge

Implicit Knowledge is that which hasnt yet been put together either by expression, concept development, assumptions that lead to principles, or through analysis of facts or theory. Implicit Knowledge can be defined just as knowledge that is not explicit. However, there is a slight difference between Implicit Knowledge and Tacit Knowledge in that it is accepted that Implicit Knowledge hasnt yet been codified but that it likely can be codified, while Tacit knowledge may not be possible to codify. In Knowledge Management much has been written since Polanyi, about both Tacit Knowledge and Explicit Knowledge and the distinctive differences between the two, but less has been written about the potential importance of Implicit Knowledge as a probable. Following diagram kind of useful to fine the distinctive difference (Butterworth-Heinemann's Knowledge Management)

What is Organizational Knowledge?

Knowledge is the individual capability to draw distinctions, within a domain of action, based on an appreciation of context or theory, or both. On the bases of this assertion, (Tsoukas and

Organizational Knowledge by N PJ Thushara

Vladimirou ) defined organizational knowledge as the capability, which members of an organization developed, to draw distinctions in the process of carrying out their work, in particular concrete contexts, by enacting sets of generalizations, whose application depends on historically evolved collective understanding. In another words when knowledge from several subunits or groups is combined and used to create new knowledge, the resulting tacit and explicit knowledge can be called organizational knowledge. Organizational knowledge has also looked into in the literature from two distinct perspectives. The first perspective proposes that organizations have different types of knowledge and that identifying and examining these types will lead to more effective means for generating, sharing, and managing knowledge in organizations (Nelson and Winter) Example: Moving away from assembling to manufacturing and achieving deletion targets. To start bring in technology and technical know-how. To assemble and manufacture low power capacity tractor identified new markets opportunities to solve casting quality control problems Assembling and Manufacturing Operations and Nationalization Growth in market coverage. According to Barneys research Knowledge is not just a resource, instead it can help organizations to develop resources. This study argues that the existing organizational resources are also a kind of organizational knowledge. For example, while the resource-based view of the firm includes physical capital resources, human capital resources, organizational capital resources assets, capabilities. (Firm Resources by Barney 1991))

Tacit and Explicit implication to organization

According to Nonaka and Takeuchi explicit knowledge is just tip of the ice bug to the Tacit Knowledge, as the figure shown below. (Nonaka and Takeuchi)

Organizational Knowledge by N PJ Thushara

http://www.applitude.se/wp-content/uploads/2011/09/seci.jpg Nonaka's SECI Model

Organizational Knowledge by N PJ Thushara

http://editthis.info/jsarmi/Nonaka_SECI_Model The mixture of the two categories makes it possible to conceptualize four conversion patterns. The four conversion patterns of knowledge are illustrated in diagram above (Nonaka_etal_2000_SECI.pdf: SECI, Ba and Leadership: a Model of Dynamic Knowledge Creation by Nonaka, Toyama and Konno) Socialization: Knowledge gather through share experience getting on with on each other. Its more likely traditional apprenticeship where learn their expertise through hands-on experience. Firms gather this kind of knowledge through interacting with customers and suppliers. (Nonakas view describes in Best Practices for the Knowledge Society By Miltiadis D. Lytras) Externalization: Articulate tacit knowledge into explicit knowledge by sequential use of

metaphor, analogy and model. When tacit knowledge is made explicit, knowledge is crystallized, thus allowing it to be shared by others, and it becomes the basis of new knowledge. Concept creation in new product development is an example for this. (Nonakas view describes in Best Practices for the Knowledge Society By Miltiadis D. Lytras)

Organizational Knowledge by N PJ Thushara

Combination: concatenate explicit knowledge in to complex and systematic sets of explicit knowledge. That will form a new knowledge. Explicit knowledge is collected from internal and external environment. The new explicit knowledge is then disseminated among the members of the organization. Combination is far more confusing than above two. So it could be much easier to understand with below examples. Example: Use of Information system networks and central databases can facilitate this mode of knowledge conversion. When the comptroller of a company collects information from throughout the organization and puts it together in a context to make a financial report, that report is new knowledge in the sense that it synthesizes knowledge from many different sources in one context. The combination mode of knowledge conversion can also include the `breakdown' of concepts. Example: corporate vision into business or product concepts (Nonaka_etal_2000_SECI.pdf: SECI, Ba and Leadership: a Model of Dynamic Knowledge Creation by Nonaka, Toyama and Konno) Internalization: Simply Internalization means understanding explicit knowledge. Internalization is the process of embodying explicit knowledge into tacit knowledge. Through internalization, explicit knowledge created is shared throughout an organization and converted into tacit knowledge by individuals. Internalization converts the changed, explicit knowledge again to a tacit form, this time held by many people. It then becomes clear how knowledge thus built into a product or a service, actively solves perceived problems. Internalization is closely related to `learning by doing'. Explicit knowledge, such as the product concepts or the manufacturing procedures, has to be actualized through action and practice. For example, training programmers can help trainees to understand an organization and themselves. By reading documents or manuals about their jobs and the organization, (Organizational Knowledge Creation: Ikujiro Nonaka)

Benefits of the SECI model

Organizational Knowledge by N PJ Thushara

Appreciate the dynamic nature of knowledge and knowledge creation. Provides a framework for management of the relevant processes

Disadvantage of the SECI model

Creation of knowledge is a continuous process of dynamic interactions between tacit and explicit knowledge. The four modes of knowledge conversion interact in the spiral of knowledge creation. The spiral becomes larger in scale as it moves up through organizational levels, and can trigger new spirals of knowledge creation. Studies based on Japanese organizations, there mainly rely on tacit knowledge. Employees dont change their jobs frequently. There is confusion on going counter clock wise and spiral jump.

The concept of Organizational Knowledge Gaps

Many companies take actions when the current knowledge is not at a satisfactory level. Such a gap is particularly visible when the firm is trying to introduce a new product or new process. All types of organizational knowledge which a company currently lacks but identifies to be critically important for its survival and growth and that need to be answered. These include knowledge regarding organizational capabilities, competencies, technical and technological know-how, general know-how, operational know-how, managerial know-how, employees skills and hardware like machines and equipments. A knowledge gap has been used to understand the process of continuous identification and filling of the knowledge gaps. Some companies use case study within their environment. The most important aspect of this concept is the concept of knowledge itself.

Organizational Knowledge by N PJ Thushara

What to learn (know-what), how to learn (know what), and how to put what they have learned (know-how) into practice. Knowledge does not constitute just data and information but most importantly constitutes the aspect of understanding of the reasons and logics of the existence of data and information.

Organizational Knowledge Management

Many of us simply do not think in terms of managing knowledge, but we all do it. Each of us is a personal store of knowledge with training, experiences, and informal networks of friends and colleagues, whom we seek out when we want to solve a problem or explore an opportunity. Essentially, we get things done and succeed by knowing an answer or knowing someone who does. But that takes us down a certain path without knowing it. Before go into knowledge management I will briefly write down bit of surrounding in history of knowledge management By the early 1990s a growing body of academics and consultants were on discussion about knowledge management as the new business practice. By the mid-1990s, it became widely acknowledged that the competitive advantage of some of the worlds leading companies was being carved out from those companies knowledge assets such as competencies, customer relationships and innovations. (Rethinking social capital theory: a knowledge management perspective by Mark W. McElroy, Ren J. Jorna) Managing knowledge therefore suddenly became a mainstream business objective as other companies sought to follow the market leaders. Even thought there is no specific interpretation about what is knowledge management, instead there are three basic aspects of Knowledge management. (Rethinking social capital theory: a knowledge management perspective by Mark W. McElroy, Ren J. Jorna)

1. Knowledge management can be seen as a kind of human resource management.

In that case the discussion is about the assessment of skills, capabilities and the intellectual power of people.
2. Knowledge management as a kind of upgraded information management.

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In that case a technical interpretation is given of the relation between humans (and their knowledge) and information systems, database systems, decision support systems and knowledge systems.
3. Knowledge management takes actors and cognition as its starting point and is

about cognition, representations and presentations. Basically, the terms in this perspective are related to signs and symbols (systems) and the categorization of kinds of signs/symbols. In the very near future, office will be replaced virtual offices equipped with more or less intelligent computer systems. Perhaps, it will take another ten or twenty years, but the office of the future will be a combination of our own cognition and the power of intelligent (artificial) actors. Knowledge will be determined by the way we are able to handle the intelligence of various actors that are able to get information from all over the world. In todays new era, knowledge form of information is the most important factor in the long-term achievement of both an individual and an organization. (Rethinking social capital theory: a knowledge management perspective by Mark W. McElroy, Ren J. Jorna) According to David J Skyrme, Knowledge management is the explicit and systematic management of vital knowledge and its associated processes of creating, gathering, organizing, diffusion, use and exploitation. It requires turning personal knowledge into corporate knowledge that can be widely shared throughout an organization and appropriately applied. According to Brown and Druguid knowledge is not an asset of individual but rather held collectively by people working together. 'Know how' is a knowledge created out of practice and collectively shared by workgroup. For knowledge management to succeed, we need to treat knowledge as an activity and not an as an object. The minute an activity is transformed to an object, it should not be called knowledge but rather a piece of information. Therefore, information management systems are good in managing objects and not activities, because there is no understanding to employees. And adding more and more information like printouts, Database dumps and statistical data etc, only increases the noise level. So, there is something not exactly the information that is called knowledge management.

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The three different types of knowledge as I describe earlier, that the knowledge management is concerned with are 1. Explicit knowledge: Which is known as information
2. Implicit knowledge: Kind of Know how Can be captured and codified as

information
3. Tacit knowledge: Cannot be captured and codified as information

Why Organization needs KM Systems

In many organizations, half of the employees will be retiring in the next decade. That means there will not be enough time to bring new employees up to the caliber. Some organizations hired skill people for short time period and their skill more or less transfer to permanent staff. That will be useful in the future and will not be any further requirement of personal for that skill. There are few more advantages claimed for KM systems are: 1. Reducing redundant work. 2. Sharing of valuable organizational information throughout organizational hierarchy. 3. Can avoid re-inventing. 4. May reduce training time for new employees.

Issues of knowledge transfer

The answer to this problem, according to Steve is the good knowledge transfer technique. Unfortunately, knowledge transfer is fraught with barriers. Have you ever heard anyone convey

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one of these sentiments? (Executive Guide to High-Impact Talent Management: Powerful Tools By Steve Trautman)

I dont have enough time to do knowledge transfer Theres no incentive for me to share what I know. Besides, how the heck am I supposed to know what a new person needs?

Im a specialist and I only talk to other specialists. I dont have time to talk to intermediates let alone beginners.

Motivations and New Technologies

Motivation is the best answer for issues of knowledge transfer. Simply to get the knowledge transferred, Skill personal has to be motivated. Typical considerations driving a KM effort includes followings in the motivation:

Harden the link between internal and external individuals Achieving shorter new product development cycles Make possible of managing innovation and organizational learning Powering the skills of people across the organization Making available increased knowledge content in the development and provision of products and services

Using the latest web based technologies; Development of Social computing tools have allowed more unstructured approaches to the transfer, capture and creation of knowledge, including the development of new forms of organizations. Examples: such as blogs and wikis (Wikipedia) However such tools for the most part are still based on text and code, and thus represent explicit knowledge transfer.

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Useful KM Strategies in Knowledge transfer

Knowledge may be accessed at three stages those are before, during, or after KM-related activities. Different organizations have tried various knowledge capture incentives including making content submission mandatory and incorporating rewards into performance measurement plans. One strategy to KM involves actively managing knowledge (push strategy). In such an instance, individuals strive to explicitly encode their knowledge into a shared knowledge repository, such as a database, as well as retrieving knowledge they need that other individuals have provided to the repository. This is also commonly known as the Codification approach to KM. Another strategy to KM involves individuals making knowledge requests of experts associated with a particular subject on an ad hoc basis (pull strategy). In such an instance, expert individual(s) can provide their insights to the particular person or people needing this. This is also commonly known as the Personalization approach to KM. (knowledge management and organizational strategy by Dave Snowden) Other knowledge management strategies and instruments for companies include:

Rewards (as a means of motivating for knowledge sharing) Storytelling (as a means of transferring tacit knowledge) Cross-project learning After action reviews Knowledge mapping (a map of knowledge repositories within a company accessible by all)

Communities of practice Expert directories (to enable knowledge seeker to reach to the experts) Best practice transfer knowledge fairs

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competence management (systematic evaluation and planning of competences of individual organization members)

proximity & architecture (the physical situation of employees can be either conducive or obstructive to knowledge sharing)

Master-apprentice relationship

Summary of Organizational Knowledge

To try and transfer the unique learning that comes from experience gained in an organization requires a lot more than a MS document or a spread sheet. Organizations would do well to recognize and distinguish a replacement strategy of filling generic skill and knowledge gaps. In conclusion, for management to strengthen individuals and teams to sustain organizational competitiveness management must motivate with use of new technologies and strategies by providing correct KM to its biggest asset, which know as the workforce. The ability for an organization to be successful, the impact is internal background that will decide the true value of organizational knowledge to the organization.

References
Nonaka, I., Takeuchi, H., and Umemoto, K. 1996. A theory of organizational Orlikowaski, W. J. 1996. Improvising organizational transformation over time: A situated change perspective. Information Systems Research. Orlikowaski, W. J. 2002. Knowing in practice: Enhancing a collective capability in distributed organizing. Organization Science. Polanyi, M. 1966. The Tacit Dimension. London: Routledge and Kegan Paul. Simon, H. A. 1996. The sciences of the artificial. Cambridge: MIT Press. Snowden, D. 1997. A framework for creating a sustainable programme. In Knowledge Management: A real business Guide. London: Caspian Publishing.

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Spender, J. -C. 1996. Making knowledge the basis of a dynamic theory of the firm.Strategic Management Journal. Winter Special Issue. Teece, D. J., Pisano, G. and Shuen, A. 1990. Firm capabilities, resources, and the concept of strategy. Unpublished manuscript. Haas School of Management. University of California, Berkeley. Tsoukas, H. 1996. The firm as a distributed knowledge system: a constructivist Strategic Management Journal. Winter special issue. Tsoukas, H. and Vladimirou, E. 2001. What is organizational knowledge? Executive Guide to High-Impact Talent Management: Powerful Tools By Steve Trautman, T. Tacit and explicit knowledge by Author Harry Collins Principles of knowledge management By Eliezer Geisler, Nilmini Wickramasinghe Knowledge Management by Butterworth-Heinemann Rethinking social capital theory: a knowledge management perspective by Mark W. McElroy, Ren J. Jorna

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