...MANAGING FOR THE LONG TERM | BEST OF HBR | November–December 1991 The Knowledge-Creating Company by Ikujiro Nonaka Editor’s Note: This 1991 article helped popularize the notion of “tacit” knowledge – the valuable and highly subjective insights and intuitions that are difficult to capture and share because people carry them in their heads. Years later, the piece can still startle a reader with its views of organizations and of the types of knowledge that inform them. For example, the advice on how to distill objective and transferable, or “explicit,” knowledge from tacit knowledge – with a vivid illustration of Matsushita Electric’s efforts to build a better bread-making machine – is both arresting and actionable. The next step: ensuring that explicit knowledge is translated back into tacit knowledge that will then go on to yield yet another innovative solution. 162 Harvard Business Review 1284 Nonaka.indd 162 | July–August 2007 I the one sure source of lasting competitive advantage is knowledge. When markets shift, technologies proliferate, competitors multiply, and products become obsolete almost overnight, successful companies are those that consistently create new knowledge, disseminate it widely throughout the organization, and quickly embody it in new technologies and products. These activities define the “knowledge-creating” company, whose sole business is continuous innovation. And yet, despite all the talk about “brainpower”...
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...Dynamic Knowledge Creation Ikujiro Nonaka, Ryoko Toyama and Noboru Konno Despite the widely recognised importance of knowledge as a vital source of competitive advantage, there is little understanding of how organisations actually create and manage knowledge dynamically. Nonaka, Toyama and Konno start from the view of an organisation as an entity that creates knowledge continuously, and their goal in this article is to understand the dynamic process in which an organisation creates, maintains and exploits knowledge. They propose a model of knowledge creation consisting of three elements: (i) the SECI process, knowledge creation through the conversion of tacit and explicit knowledge; (ii) `ba', the shared context for knowledge creation; and (iii) knowledge assets, the inputs, outputs and moderators of the knowledge-creating process. The knowledge creation process is a spiral that grows out of these three elements; the key to leading it is dialectical thinking. The role of top management in articulating the organisation's knowledge vision is emphasised, as is the important role of middle management (`knowledge producers') in energising ba. In summary, using existing knowledge assets, an organisation creates new knowledge through the SECI process that takes place in ba, where new knowledge, once created, becomes in turn the basis for a new spiral of knowledge creation. = 2000 Elsevier Science Ltd. All rights reserved. As Alvin Tof¯er said, we are now living in a `knowledge-based...
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...management framework that supports the integration of corporate social responsibility principles and stakeholder approaches into mainstream business strategy. Design/methodology/approach – A top-down and bottom-up approach was used to develop the proposed framework. The top-down approach focused on analyzing the main strategic management theories including social responsibility movements to identify complementary concepts and create a relevant topology. The bottom-up approach was based on empirical research on the views of business companies on corporate social responsibility, a review of best practices and case studies mainly in Greece. Findings – The paper describes a stakeholder-oriented integrative strategic management framework linking the main strategic management theories across value, responsiveness and responsibility dimensions. A mathematical model is presented describing the synergistic development of advantage-creating knowledge and advantage-creating stakeholder relations in accordance with the criteria of the resource-based theory. Research limitations/implications – The proposed management framework is based on the results of research projects and is not fully developed and tested. The approach will be refined, exploiting results from ongoing research including further empirical research and testing in business...
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...1. Knowledge is defined as justified true belief. Why knowledge created in organization is defined as justified true belief referring to the process of knowledge creation in organization. To answer why Knowledge is defined as justified true belief, we need to analyze how is the process of knowledge creation in organization at first. Based on the SECI model of knowledge creation, the process of knowledge creation in organization including four phases. The first phase is socialization which means Sharing and creating tacit knowledge through direct experience. It includes four parts. First, capturing tacit knowledge through direct experience (e.g. interaction with suppliers or customers). In the IDEO case, they kept clients involved and learned from their clients by assimilating the things clients did well into their own methodology. Second, by walking around inside the company, knowledge or the latest available information was collected or acquired. In the 7-11 case, through POS data and Tanpin Kanri, 7-11 obtained the latest information of inventory and sell order data, they make the reasonable decision on these valuable information and knowledge. Third, accumulating and systemizing tacit knowledge by and sharing between individuals. In IEDO and 7-11, they both create an environment for knowledge sharing. IEDO use brainstorming and 7-11 use “Box Lunch Corner” to encourage employees to show their ideas. Last, interpreting tacit knowledge by transferring one’s ideas or...
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...“Creating Disciples: The Transformation of Employees into Trainers” By Harry J. Martin* and Mary W. Hrivnak Elena Rozkov Human Resources Training and Development April 12, 2012 MGMT 3060 CREATING DISCIPLES: THE TRANSFORMATION OF EMPLOYEES INTO TRAINERS 1 After our class discussion and reading article “Creating Disciples” again, I have a better understanding of the process and importance of the training program, which is designed for developing and supporting employee trainers, but I still cannot completely agree with the authors’ model. Martin & Hrivnak (pg.614) are talking about turning novice employees into trainers if this employee feels strongly enough about the idea to volunteer to teach other employees. But they are not talking about rewards, recognitions or promotions. According to Martin & Hrivnak (2009) an organization has to follow the “why” and “how” approach, and needs to understand the benefits and disadvantages between hiring an insider or an outsider to train others. Deciding which trainer to choose depends on the objectives of the program and how valuable they will be for an organization. By turning employees into disciple trainers will benefit the company in many ways. The insiders are cost-effective for the company. Also, training process can be easier because trainers will be accepted by their peers, which will lead to a comfortable work environment. Trainers can relate to other employees because they are already in the...
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...requires knowledge, work, skills and maintenance. One of the best ways to design and implement a business plan is to write the vision and do the research. There are procedures on how to keep a business effective (Covey 1989). Research and knowledge helps to ensure the companies stability and longevity. Behind the Scenes Work The creation of a successful business will always take time, research, and work. There are many available resources to potential business owners. One of the most important aspects to starting a business is putting in the work to start the business, and keep the business. Successful businesses are not given to those who lay idle but to those who change their perception and work for end results (Covey et al.,1989). People must be willing invest the time and money into the business. Research past business successes and failures of similar businesses and take notes. The greatest leaders were once followers (Maxwell 10/02/2012). Skill is required when starting a business, skills are essential because it shows an area of specialty that the business owner has and a great amount of knowledge in that area. Sacrifices have to be made when implementing a business, because it requires much time and dedication. A business will not be successful without putting in the work that goes into it. Finally, with the knowledge and training that a person has gained from research, they can effectively design the vision of their business. Write the Vision Creating a vision...
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...Review Dustin Buckner MGT 426 December 21, 2015 Glorieta Robinson Learning Organizations Article Review I read “Strategies for Creating a Learning Organization” written by William King. This was a good article that gave a definition of learning organizations and talked about six different strategies for creating a learning organization: Knowledge management, intellectual property management, innovation, organizational learning, individual learning, and information systems. Information systems was talked about first. It is the collection of data and the process of turning that data into useful and valuable information. Almost all companies use this type of learning organization strategy. We definitely use this where I work. I work for a small business that sells window coverings. Being in sales we take all types of data and use it. We find out how many appointments we have had and sales we have made to determine our closing ratio which helps us see how successful we are. This is a tool all companies should be using. Next the author talked about the intellectual property management strategy. This strategy is where a company will use their intellectual property as leverage to create additional value. This strategy is made more usable along side of the information sysytems strategy. The concept of this strategy is to the companies knowledge can be thought of as an asset with which they want to maximize the return on that asset. The third strategy discussed was the individual...
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...MEANING OF INTELLECTUAL CAPITAL This is the intangible value of a company, and is measured as the difference between the enterprise value of a company and the market value of its tangible assets. Intellectual capital is knowledge that can be exploited for some money-making or other useful purpose. The term combines the idea of the intellect or brain-power with the economic concept of capital, the saving of entitled benefits so that they can be invested in producing more goods and services. Intellectual capital can include the skills and knowledge that a company has developed about how to make its goods or services; individual employees or groups of employees whose knowledge is deemed critical to a company's continued success; and its aggregation of documents about processes, customers, research results, and other information that might have value for a competitor that is not common knowledge. Classification of Intellectual capital • Human capital- The value that the employees of a business provide through the application of skills, know-how and expertise. It can be defined as all the unique ideas, skills, and knowledge that an individual owns and contributes to an organization. • Structural capital- Structural capital is the structures and mechanisms that help support employees and includes procedures, routines and everything that is left in the organization. It includes processes, intangible assets like patents, and trademarks, as well as the organization’s image, information...
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...correct issues that may arise. In this paper, I will briefly touch on Organizational Intelligence, Business Model Logic, and Bloom’s Taxonomy. Introduction Organizational Intelligence (OI) is applied in all organizations to enhance the understanding of managerial processes and resources within the business. Organizations need to understand the barriers that surround them and be able to take the necessary actions to remove them. OI can be definitely, measured, and used to successfully achieve performance improvement when applied. OI can be characterized by various aspects of individual intelligence, cooperate knowledge, and support systems. Business Logic Model Business Logic Model refers to the logic of the organization, how it operates, and creates value for its consumers. Another term that can be used is a company’s stagey. “The firm’s logic for creating and commercializing value” (Osterwalder et al., 2005).To look into Business Logic Model we should first look at our business or service we provide and determine goals and how can we get them accomplished. Look into our customer base and decide what the customer values. Once we have gotten to know our customers then we can look at how we will deliver to them at a cost that benefits both parties. So what are we providing the customer and how can we get service to the customer? Business Logic Model can be used as a tool to try and determine what a business is doing and how they are getting there. Application By studying...
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...Definition of Knowledge Management 2.1. Contribution of KM to organizations 2.2. KM creates Learning Organization 2.3. KM as Communities of Practise 2.4. KM as Information Technologies like KMS 2.5. KM as HR issue 2.6. KM as combination of all of the above 2.7. KM provides competitive advantage 2. KM as an IT fad 3.8. Failures of KM 3.9. Promises of KM vs what it has delivered Conclusion References Introduction With the changing trends in the field of business management one can see Knowledge management emerging as one of the major areas of importance. Many organizations have learnt the importance of implementing the KM initiatives to gain competitive advantage over their rivals and reaped the benefits while some other companies have gained bitter fruits. When few companies gained competitive advantage, how is it that the others had bitter experiences? This question has led to many people voicing their opinions against the KM initiatives. The aim of this paper is to clarify this question, without any prejudice, by providing both the pros and cons of KM initiatives. 1. Definition of Knowledge Management Srikantaiah & Koenig (2000) defined knowledge management as a ‘discipline that promotes an integrated approach to identifying, capturing, evaluating, retrieving, and sharing all of an enterprise’s information assets.’ Successful organizations are realizing the importance of knowledge management. Coulson...
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...researchers that the knowledge and skills possessed by a company`s employees, contribute substantially to the organization`s capacity to innovate. Stewart (1997) sustains this view affirming that: “human capital is the capabilities of individuals who are the source of innovation and renewal within companies”. Egbu (2004) explores the factors that lead to innovation in relation to the managerial understanding of developing the human capital and integrating those ideas in the organizational strategies. In the study of four innovative construction organizations, it was noted that these organizations have similar characteristics that contribute towards stimulating innovation and human capital such as: flexibility in response to change and new information, a climate where mistakes are accepted as being part of the learning process and people are not afraid to take risks, an environment that promotes respect and employees are valued, where they are encouraged to share information, establishing a relationship of interdependence between employees and organization and also and a climate of trust and job security. (Egbu, 2004) Byrne (2001) states a very pertinent question: “Are employees capital or commodity?” and asserts that if the employees feel insecure in their jobs and feel that they can be easily replaced their willingness to share knowledge decreases considerable. He observed that without loyalty the knowledge cannot be preserved and the desire to acquire knowledge and share it cannot...
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...market value of companies reflects intangible assets such as innovation processes, patents, brands, trademarks, customer databases, etc. Traditional Balance sheet only reports the value of physical and financial assets and accounting system is not equipped to deal with Intangible assets. Shareholders have to make their own assumptions on how intangible assets have changed in value during the year. An Intellectual Capital Report helps in eliminating this problem, and in demonstrating the real value of IC. An IC Report is a statement of changes in the company’s Intangible Assets much like a Balance Sheet is a statement of Changes in the Company’s Physical and Financial Assets. Unlike physical and financial assets, intangibles cannot be valued directly. Intangibles are represented by proxies called indicators. The change in values of these indicators during the reporting period indicates the growth or decline in intangibles during the period. Accordingly lots of models and researches have been developed to for reporting intellectual capital of which the Danish Guidelines, the Austrian Research Centre’s model, the balanced scorecard, the Skandia Navigator, and the CVH are some. Below is a brief about the Austrian Research Centre’s model which has developed its own method for reporting on intellectual capital and has done so since 1999. As a research organization, it is particularly important that it can communicate its performance against a set of knowledge goals to its stakeholders...
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...customers | | | E) | The threat of new entrants | | | | | | | | 2 | | Establishing new business linkages and alliances with customers, suppliers, and competitors is an example of a(n) _______________ strategy. | | | A) | alliance | | | B) | differentiation | | | C) | innovation | | | D) | growth | | | | | | | | 3 | | A company implements information systems linked by the Internet and extranets to support strategic business relationships with customers, suppliers, and other business partners. This is an example of using information technology to pursue a(n) _______________ strategy. | | | A) | cost leadership | | | B) | differentiation | | | C) | innovation | | | D) | alliance | | | | | | | | 4 | | Investing in information systems technology to make a firm's customers or suppliers dependent on them for the continued use of innovative, mutually beneficial inter-organizational information systems is an example of _______________. | | | A) | reducing barriers to entry | | | B) | reducing switching costs | | | C) | creating switching costs | | | D) | improving the value chain | | | | | | | | 5 | | According to the text, Hilton Reservations Worldwide provides good customer focus, while at the same time providing: | | | A) | The ability for a reservations specialist to cross-sell an alternative Hilton chain | | | B) | An...
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...performance appraisal Recruitment, selection and procedures Prepared byNORAINI ASHYIKIN BT ANUAR Human Resource Manager of Company Cadbury Prepared byNORAINI ASHYIKIN BT ANUAR Human Resource Manager of Company Cadbury Submitted to: CEO of Cadbury Submitted to: CEO of Cadbury List of abbreviations and/or glossary Appraisal – “the act of estimating or judging the nature or value of something or someone.” (Dictionary.com, LLC, 2014) Appraisal interview – “A formal discussion held between a manager and his subordinate to discuss the performance of the employee in a specific period.” (Aminuddin, Huaman Resource Management, 2011) Development – “Learning activities designed to help the individual employee grow and improve his knowledge and skills, but which are not necessary in needed in his current ” (Aminuddin, Human resource management, 2011) Performance appraisal – “A technique of formally evaluating an employee’s work over a particular time period.” (Aminuddin, Human Resources management, 2011) Executive summary The Cadbury Company distributed 200 years ago and the name of the company are well known. The Cadbury made to sell variety of sweet chocolates. The taste of the chocolate still remains in tongue where the different taste from other company. The company continues to provide a best quality of the product. In Malaysia, the company supporting to make a decision to apply a performance Evaluation System. However all the mangers have to be train before start...
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...focuses on building and following up on employee competencies such as technical skills, soft skills, and industry-specific skills The array of possible career management practices that a company can develop to ensure competitive advantages on the basis of three tiers. Some of them are: Tier one- Planning * Competency Models and Performance Criteria: It allows realizing what gaps may exist in your current skill-sets and the need to develop career paths, development programs and/or training initiatives. * Career Development and Career Planning: Planning for the future and creating a development plan that recognizes employee’s interests, potential and growth is essential and can set you apart from your competition. * Career Pathing: Creating clearly established career paths within a given area allow employees a vision of progression as well as setting goals and expectations to strive toward. TIER ONE - PLANNING: * Competency Models and Performance Criteria - Establish competency models for each role within your organization with specific, well-define performance criteria for success that can be assessed, measured and evaluated regularly. This creates a solid basis for accountability as well as assists you with the process of identifying the necessary skill-sets required to meet company goals and objectives and departmental deliverables. It then allows you to begin to realize what gaps may exist in your current skill-sets and the need to develop career paths, development...
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