Knowledge management is an essential tool for organization. Discuss Essay

Knowledge management is an essential tool for organization. Discuss - Essay Example Thus, managing knowledge is the most crucial role for organisations to survive and thrive as we move into a knowledge economy driven and global environment. Basically, â€Å"organizational knowledge creation is the process of making available and amplifying knowledge created by individuals as well as crystallizing and connecting it with an organization’s knowledge system,†( Nonaka, Krogh and Voelpel 2006). Research has shown that knowledge creation, retention, sharing and management is an essential tool for an organisation as we gradually move towards a knowledge economy (Nonaka 2007). During the current period, it can be noted that the business environment is constantly changing and knowledge creation is a virtue whereby the human resources management in particular will take a leading role in spearheading the initiative to influence the individuals in the organisation to come up with new ideas that can be crystallised as well as connected with the organisation’s knowledge system. Having created the requisite knowledge, then the process of knowledge management attempts to formalise a means of continuous improvement through reflection, and codification of knowledge gained during the project (CCTA 1999). For instance, Nonaka 2001 argues that making personal knowledge available to others is the basic tenet of the knowledge creating company. This will allow others to learn which promotes management of knowledge that has been created with a particular organisation. Through the use of PRINCE2 as a mandatory project management methodology in government sponsored projects, the identification and codification of personal knowledge through â€Å"lessons learned† is a key objective. This involves the utilisation of knowledge created to the benefit of the organisation as a whole. Knowledge creation is a source of long term solution for organisations to gain competitive advantage in an economy that is characterised by uncertainty and ever changin g environment (Nonaka and Takeuchi 1995; von Krogh et al. 2000). The companies which are quick to create new knowledge in response to the changes obtaining on the ground have a competitive advantage over those which are slow to respond to these changes. In essence, creating new knowledge is about re-creating the company and the individuals to meet a particular vision or ideal. Knowledge creation is not a specialised event but it is treated as a preserve for every worker. This is not limited to a particular department since the notion of the knowledge creating company posits to the effect that every employee has a role to play as far as this concept is concerned in an organisation. A critical analysis of the article entitled â€Å"Organizational Knowledge Creation Theory: Evolutionary Paths and Future advances† by Nonaka, Krogh and Voelpel (2006) shows that the success of an organisation is mainly influenced by its ability to keep pace with changes taking place in the business environment and this is aided by knowledge creation. Examples can be drawn from the cases of Canon as well as many Japanese companies which manufacture cars such as Toyota. Keeping pace with changes in the environment in which the organisation operates entails creativity and innovation of new ideas that will be synthesised into the knowledge system of the company. Managing this knowledge is a basic tenet of