Process of Managing Knowledge

Considering management of knowledge as a social concept is stressed more by the academicians who work on organizational culture and in-or-ganization communication in the social psychology and management liter-ature. Studies on the management of organizational knowledge have been presented more systematically by Berger and Luckmann (1967), Gurvitch (1971), and Holzner and Marx (1979). The sociology of knowledge, which is presented by these authors as an analysis at a social level involves five interdependent processes. These processes are:

• Acquisition

• Storage

• Dissemination

• Interpretation

• Implementation of Knowledge

These five processes are the most fundamental parts of an effective learning process in a social network and are like the rings of a chain. In case any of these rings is missing, effective management of knowledge cannot be considered. These five phases in the management of knowl-edge constitute the engine of organizational learning (Akgün and Kes-kin, 2003: 175-188).

4.1.3.1. Knowledge Acquisition

Knowledge acquisition is a critical element of organizational learn-ing and knowledge management. Knowledge acquisition involves envi-ronmental (internal and external) studies and the transfer of information on environmental changes. Organizations learn more things by way of knowledge acquisition and this helps them implement successful strate-gies and develop technology.

38 4. s e co n d fact o r: m a n ag i n g k n ow l ed g e

Researchers divide knowledge acquisition into two groups as internal and external knowledge acquisition (Akgün and Keskin, 2003: 175-188).

External knowledge acquisition includes participation in conferences, use of consultants, monitoring of economic, social and technological trends, systematic monitoring of customers and competitors, enabling new mem-bers and new organizations to join the organization and cooperation, and joint ventures with other firms. For example, examination of the new ucts developed by competitor firms and their advertisements for new prod-ucts and technology may provide another business new ideas. The feed-back obtained from customers helps the business acquire new knowledge.

Organizations progress in internal knowledge acquisition through under-standing of the existing technology and those who developed it, learning from experience, experiments, continuous process improvement, and a crit-ical approach (Huber, 1991: 88-103).

Experience and learning involve the successes and failures experienced by an organization. Organizations acquire knowledge by evaluating their past successes and failures and use this knowledge to make future improve-ments. The experiments include research and development, pilot proj-ects, and intrapreneurship activities. In this way, original innovations are launched and new processes are invented for the organization to better perform its tasks. Continuous improvement of processes is made possible through process improvement teams. Moreover, feedback on evolutionary changes plays an important role in applications that follow from contin-ual improvement. For example, critical approach dialogs involve question-ing of organizational assumptions and norms (Akgün and Keskin, 2003:

175-188). It is also very important for internal knowledge acquisition to encourage firm employees to generate new ideas showing a certain toler-ance to their errors and, in this way, to leave a free zone for the employ-ees where they can develop new ideas. Distribution of organizational re-sources in a way to support intrapreneur individuals and to allocate time for such individuals to use freely during working hours is important for supporting intrapreneurship. One of the major obstacles before neurship is the rule of fear culture in an organization, because intrapre-neurship basically relates to sharing and implementation of free thoughts.

4.1.3.2. Knowledge Storage

The knowledge acquired as a result of knowledge generation processes should ultimately be stored. Without storage, there is no room for

“mem-39

i n a co m pet i t i v e en v i ro n m en t

ory” or “implementation.” Organizational memory becomes a priority in this context. One of the most important factors in internal knowledge ac-quisition is organizational memory. The function of organizational mem-ory is to demonstrate the conveyance of information stored throughout the development of an organization to the present time and future. If there is no organizational memory, learning does not occur in its full sense due to workforce turnover and passing time. Organizational memory is particu-larly significant in this age when businesses rely on restructuring and tem-porary or contracted workers. However, if organizational memory does not change with changing industrial conditions, it can limit productive learning or even promote ineffective learning (Akgün and Keskin, 2003: 175-188).

With the development of information technologies today, organiza-tions are able to store very large amounts of knowledge. The operational information systems remain inadequate to process such large amounts of knowledge and to be able to use them when necessary. Advanced knowl-edge management systems are needed to process this huge knowlknowl-edge and to render it useful. Such knowledge systems are high level software that can be used for supporting of decisions at a strategic level.

4.1.3.3. Knowledge Dissemination

Dissemination of knowledge is defined as a process of sharing informa-tion obtained from various sources. Knowledge disseminainforma-tion is the de-livery of knowledge where it must be when needed in organizations. Be-fore knowledge is used at an organizational level, it needs to be distributed and shared within the organization. Knowledge dissemination is divided into two as formal and informal dissemination. Formal dissemination of knowledge involves individual written communication, training, internal conferences, briefings, and internal publications. Individual written com-munications include short notes, reports, letters, and publically open an-nouncement boards. Training involves participation in courses and on-the-job trainings by utilizing internal consultants. Informal dissemination of knowledge includes job rotations, stories and myths, duty imposition, and informal networks.

Knowledge dissemination is one of the most important and critical pro-cesses within the process of managing knowledge. However, it is not easy to disseminate and share knowledge. The success of a firm in disseminat-ing knowledge depends on the organizational culture and the amount of open knowledge available in the firm. An organization relying on

tradi-40 4. s e co n d fact o r: m a n ag i n g k n ow l ed g e

tional control and authorization relationships may find it difficult to dis-seminate knowledge. Because management which is based on inspections and orders does not usually allow formation of social units that are neces-sary to transform personal knowledge into organizational knowledge nor gathering of these groups together (Akgün and Keskin, 2003: 175-188).

4.1.3.4. Knowledge Interpretation

Knowledge interpretation is the processing of disseminated informa-tion. One or, more frequently, more than one interpretations are given to the disseminated information. Daft and Weick (1984) defined knowledge interpretation as a conversion to meaning from acquisition of informa-tion. It is also defined as the process of improving conceptual schemas and shared meanings as well as interpretation of events. These definitions stress that if all organizational units develop a common interpretation about a piece of information, more organizational learning occurs and knowledge is managed in an effective way (Akgün and Keskin, 2003: 175-188).

4.1.3.5. Knowledge Implementation

Knowledge implementation refers to the use of knowledge to solve the problems arising during new product development processes, transfer of technology, and marketing and management activities. Pentland (1995) stated that if knowledge is not implemented in practice, continuous im-provement as a characteristic of learning would not be possible. For exam-ple, Low and Mohr (2001) pointed out that when knowledge relating to the market is gathered, one should be able to apply it to market strategy deci-sions directly. As an organization uses its own resources, the available knowl-edge is repackaged in a new context; the internal measurement standards can be raised, the creativity and motivation of employees can be increased, and the knowledge can be made more active and relevant for the firm.

Knowledge management process is an important part of the organi-zational learning that occurs as a result of social interactions in an orga-nization. These social interactions combine individual and organizational knowledge, and take the organizational knowledge to an upper level. How-ever, organizations can ensure an advanced level of learning and effective knowledge management only by using their knowledge processes in a com-plete and interactive way. As seen in Figure 4.1, the knowledge manage-ment process forms a closed cycle with each process affecting the others.

Figure 4.1 shows only a simplified version of this process.

41

i n a co m pet i t i v e en v i ro n m en t

As a result of knowledge implementation, the organization records in its memory what it has learned. These recorded results will affect knowl-edge acquisition and other activities of the organization at future stages.

This memory is naturally distributed among both the structural and hu-man resources of the organization. When the social aspect of knowledge is taken into consideration, the organizational memory distributed among people will be of vital importance for the management of organizational knowledge. The knowledge exchange among people creates such a mem-ory in an organization or group that this transactive memmem-ory becomes like an adhesive binding the knowledge management processes to each other.

Having said all this about knowledge management, the effects of these processes on the ultimate objectives of companies necessitate a pragmatic discussion considered with respect to a manager. However, the positive ef-fects of theoretical knowledge management on the company’s performance are uncertain in practical terms. The main reasons for this are political and Figure 4.1. Organizational Knowledge Management Process (Akgün and Ke-skin, 2003)

42 4. s e co n d fact o r: m a n ag i n g k n ow l ed g e

personal interests in the organization, cultural structure, and deficient imple-mentation of knowledge processes. The effect of effective knowledge manage-ment on company performance takes place more through various mediators.

These are organizational learning, organizational change, organizational cre-ativity, and organizational innovation (Akgün and Keskin, 2003: 175-188).