Knowledge is not a fresh concept, from very early times people have communicated knowledge from one generation to next, in the form of songs, stories, narrations, skills, and so on. Knowledge enriches as we share; it never gets depleted like other resources. Knowledge is playing a key differentiator role in today’s scenario, which is embarking a new era as compared to a period where labor and capital ruled.
Even though the knowledge is derived from information, it represents a more meaningful and accurate piece of information. It includes acquaintanceship, prudence, and cognizance gained through professional study, making comparisons, identifying relevance and making associations with other activities. Organizations think knowledge is an applied action.
Evolution of human has always accompanied by knowledge growth; there are many significant witnesses available to prove knowledge development. Therefore, the knowledge growth and concept is not new, but the new thing is the quantity and its impact on current economic, social and cultural rights, and to the modern man’s life. Information and knowledge have become an important resource for economic resources. These have become the new strategic resource in the economic life which adds the natural resources and the appearance of what is called as the “knowledge economy.”
In a traditional economy, the resources are limited and are depleted, whereas in a knowledge economy the resources are not confined but in higher quantity. In a traditional economy, more than fifty percent of the workers were involved in the physical movements, who were known as regular workers. The workers in the traditional economy have now given way to knowledge workers, who have a distinct approach towards their work. The knowledge workers require collaboration, sharing of knowledge and proficient than their predecessors.
Managing knowledge has become one of the crucial factors in the global economy, which effectively has become a source of competitive advantage. Companies follow approaches that integrate various processes of knowledge management, such as identification, management, sharing and capitalization on the know-how, experience and intellectual capital of organizational employees. Much of the knowledge is available in tacit form; as a result, knowledge is lost when the employees leave an organization.
The knowledge hierarchy system model is shown in figure 1. Knowledge is commonly renowned from data and the information. Data includes observations or facts. Information is classified, cleaned, processed and verified data. Knowledge leads to plans for decision making, achieved by meaningfully combining information with practice. Knowledge capture minimizes the duplication of work, enables problem-solving, promotes teamwork, brings innovation and ideas, increased client satisfaction, and high employee motivation. The wisdom is an extension of knowledge which results in effective actions and skill set generation (Nonaka I., 1994).
The twelve important principles of Knowledge are: Knowledge is connected by nature; Knowledge is self-organizing; Knowledge is a group driven entity; Knowledge requires language to transfer; Knowledge could be made available in multiple forms; Knowledge is casual; Knowledge is dynamic; Knowledge has a lifespan; Knowledge is not proprietary; Knowledge would not grow in conducive environment; No single best practice for Knowledge; and Knowledge is a vital link to management.
Original Reference Article:
- Bhanumathi, P. (2015). Knowledge management enablers processes and organizational performance a case study of select SMEs in Bangalore.