Organizational knowledge

From CEOpedia | Management online

Organizational knowledge is a semantic construct which presents the capacity of an organization to combine all knowledge of the employees and to generate a collective knowledge[1].

To sum up, organizational knowledge should be understand as a process of amplifying the knowledge of individuals and crystallising it as a knowledge network of whole organization. More specifically, the aim of this strategy is to convert inexpressible knowledge of individuals into much more structured content which can be used as an advantage.

There is a strong possibility that the organizational knowledge will become a strategic resource for any organizations[2]. Despite of, the division of expanding of orrganizational knowledge is made by the management and a lot of different factors have impact on this decision. Those factors are for example size of organization, dynamics of the business market or position on the business life cycle. However, effective way for managing the knowledge may be a key to the success of the nowadays organizations[3].

It is a different knowledge and skills that are held by the employees of a large organization. Those skills and knowledge are used to work in more efficient way.

Weak and strong sense

When considering an organizational knowledge from different perspectives it may have at last two meanings[4][5]:

  • by weak sense, organisational knowledge is understood as a result of people's generations in a social context, transferred and used in a way which is needed by an organization;
  • by strong sense, is the capacity of organization's members to draw distinction in the process of carrying out their work by enacting sets of generalizations. The use of those generalizations depends on historically set understandings.

Classification of organizational knowledge

There are many types of organizational knowledge described by many authors. However, two of them are the most common[6]:

  • explicit knowledge - this kind of knowledge can be presented in numbers and words in different kind of forms of data and specifications. It can be shared in formal and systematical way;
  • tacit knowledge - is more difficult to express, formalize and what is more, to share. It includes hunches, insights and intuitions.Tactic knowing means, that acquired experience cannot be expressed into word, by direct way.

By comparison, cons of the explicit knowledge outweighs props of the second option. What is more, in specific situations the tacit knowledge can be converted into the explicit form to be shared through various communication media.

Examples of Organizational knowledge

Organizational knowledge can be seen in many different ways and can vary from organization to organization. Some examples of organizational knowledge include:

  • Knowledge gained from employees’ experiences, skills, and expertise. This includes the skills, knowledge, and understanding of tasks and processes that employees have acquired over time.
  • Organizational culture, which is the shared values, beliefs and norms that guide the behavior of those within the organization.
  • Organizational memory, which is the collective experience of the organization, including the knowledge of past successes and failures.
  • Strategic knowledge, which is the knowledge of the organization’s long-term goals and objectives.
  • Technical knowledge, which is the knowledge of how to use various tools, systems and processes to achieve the organization’s goals.
  • Organizational policies, which are the guidelines and rules that ensure the organization is operating in a consistent and effective manner.

Advantages of Organizational knowledge

Organizational knowledge provides many advantages for businesses, including:

  • Improved efficiency: Organizational knowledge helps employees to quickly access and share information, which can reduce the time and resources it takes to complete tasks.
  • Increased collaboration: By combining the knowledge of all employees, organizations can create a shared understanding of their goals and objectives and work together to achieve them.
  • Enhanced innovation: By bringing together different perspectives, organizations can better identify opportunities for innovation and create new ways of working.
  • Improved customer service: By having access to more information, organizations can provide better customer service and address customer queries more quickly.
  • Reduced costs: By using organizational knowledge, businesses can reduce costs associated with training and development, as employees can use existing resources to stay up to date.

Limitations of Organizational knowledge

Organizational knowledge has several limitations that can prevent it from being used effectively. These include:

  • Lack of clarity: Organizational knowledge can be difficult to access or understand, making it difficult to use effectively.
  • Inadequate resources: Organizations often lack the resources to properly capture and store knowledge, making it difficult to access and use.
  • Lack of motivation: Without the right incentives, employees may not be motivated to share their knowledge, which limits the organization's overall knowledge base.
  • Outdated information: Organizations can struggle to keep their knowledge up-to-date and relevant, leading to decisions being based on outdated information.
  • Time consuming: Organizational knowledge can be time-consuming to access and use, making it less efficient than other methods.

Other approaches related to Organizational knowledge

Organizational knowledge is a semantic construct which presents the capacity of an organization to combine all knowledge of the employees and to generate a collective knowledge. There are other approaches related to organizational knowledge, such as:

  • Organizational Learning - the process of gathering and using experience in order to improve the performance of an organization or individual. It involves the collection and analysis of data to identify trends and create insights that can be applied to enhance future performance.
  • Knowledge Management - the process of creating, storing, and sharing knowledge within an organization. It includes practices such as developing knowledge repositories, encouraging collaboration, and creating systems to capture and capture knowledge.
  • Knowledge Sharing - the process of sharing knowledge across the organization. It involves activities such as setting up knowledge-sharing forums, creating knowledge-sharing networks, and integrating knowledge-sharing tools into the organization.

In summary, organizational knowledge is a complex and multi-faceted construct that involves learning, management, and sharing of knowledge within an organization. Other approaches related to organizational knowledge include organizational learning, knowledge management, and knowledge sharing.

Footnotes

  1. (Bolisani, E., (2018)., p.51)
  2. (Bratianu, C., (2015)., Chapter: Organizational Knowledge)
  3. (Sabherwal, R., (2001)., p.25)
  4. (Bratianu, C., (2015)., Chapter: Organizational Knowledge)
  5. (Tsoukas, H., (2001)., p.976)
  6. (Sabherwal, R., (2001)., p.25)


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References

Author: Rafał Gamrat