Professional Documents
Culture Documents
Assessment 2
Rasha Elbanna
R1805D5376972
Module- ST4S39-V1
09/12/2018
Abstract
The application of the concept of strategic thinking and/or strategic planning in any organization
would be based on knowledge. Reasoning from this fact I would appraise or strengthen the
statement. “Before we measure something we must ask whether we understand what it is we are
trying to measure.” (Gray et al, 2015).The essay will highlight the importance of knowledge
management, intellectual capital, communities of practice and their relation to social networks.
In addition it will present the application of knowledge management and its importance in
healthcare sector and its effect in delivering high quality service to patients.
Introduction
capital, performance management and social networks, it is important to initially explore the
2011).Similarly, Muir Gray refers to knowledge as the key. He ensures its importance in decision
making ,by stressing that knowledge is not only required to operate, but the knowledge of when
to operate – and indeed whether to operate or not is equally important . On the same track Toyota
precious asset .So, it is of great importance to manage this assets like any other tangible one.
ST4S39-V1 – Section B: Strategic Knowledge Management
Although knowledge is an intangible asset, it is this intangible asset which protects and improves
the performance of the tangible ones as well as other intangible assets. In the same harmony, P.N
Rastogi (2002), states that Information is the feedstock of knowledge. Relevantly, methodical
inventive utilization of knowledge; people and enterprises cannot improve and innovate.
use unless shared. According to , Grayson and O’Dell (1998), knowledge is what people know
about their organization customers , products , process , mistakes and successes .What is
sometimes known as the know-how concept, becomes an accumulated data base , which is build
the sharing of experience and best practices, attained from both internal and external
For example, people working in healthcare sector with similar problems trying to lay down best
practices to achieve high standard of patient’s welfare, a group of engineers working on similar
Social network is a sociological notion for a series of social linking between network segments
that merge, distinctly individuals within a specific network. Network constituents could also
include social class/ sector, teams, sections within an establishment or the organization as a
whole. Social network and Knowledge management have a synergistic connection whereby one
ST4S39-V1 – Section B: Strategic Knowledge Management
would not prevail in absence of the other. Additionally, social networks a natural result of
Knowledge management, both are essential in order to succeed. Studies proved that employees,
who constantly connect or network, convey knowledge more effectively. From that perspective,
especially for tacit knowledge. Incorporating social networking into knowledge management
systems would elevate communication within employees/ individuals which results in expansion
communication.
well as social networking would present human characteristics. Humans are the intangible value
capital is defined as the intangible value of a business, incorporating its people (human capital),
the value associated to its connections (relational capital), and the total that is left when
the employees go home (structural capital), of which intellectual property (IP) is but one
invisible, closely associated to knowledge and employees’ experiences as well as customers and
With the knowledge revolution, a number of experts encourage the argument that intellectual
2014). Performance is not directly influenced by intangible but the link can be recognized via
cause and effect. (Kaplan and Norton, 2004).According to Roos and Roos(1997), it is intellectual
Knowledge Management (KM) strategy is a proposal that represents the effective manner of an
organization in dealing with information and knowledge, for the best interest of that organization
and its stakeholders. A beneficial KM strategy is closely associated with the organizations
Gorelick and Monsou (2006) refer to Knowledge Management as a system that supports
opportunities to initiate novel knowledge, and yield the tools and approaches needed to
implement what the organization knows in its effort to meet its strategic goals. Similarly,
endeavour to learn, acquire, create, develop, share, use, and apply knowledge in support of the
firm’s customer value proposition, competitive logic, and integrated activity system. Based on
Robins (Ray, 2008) knowledge management can be defined as the process of organizing and
disseminating an organization's common wisdom, so the right information reaches to the right
people at the right time. In the same context, Gold et el (2001) believe to accomplish an ideal
knowledge management and generation of advanced knowledge, firms must initiate the
absorptive capacity- the ability to use previous knowledge to identify the value of new
information, comprehend it, and apply it to deliver new knowledge and capabilities.
the key for empowerment , support and strength for significant functions including the process
of detecting and/ or formulating new knowledge and its filtration ( knowledge inventory
formation), as well as transmission of this knowledge within individual and across the
ST4S39-V1 – Section B: Strategic Knowledge Management
organization ( managing the flow of knowledge) and the utilization of this knowledge on daily
and financial asset. Its value becomes evident at the time a specialist leave a workforce.
and elevating productivity of an organization. The two major aims of knowledge management
are innovation and reuse, where innovation presents promotion of new knowledge and linking to
the existing one. Dalkir (2011, p.312) endorse that innovation can only be created by
accumulated experience not in isolation i.e., the concept of trial and error, what works and what
does not. Reuse models the foundation for organizational learning and must be looked upon as a
means of circulation of innovation. Dalkir (2011,p.313) also states that knowledge management
strategy provides the basic building blocks used to achieve organizational learning and
continuous improvement ,to avoid time waste by repeating mistakes and provides awareness of
Sveiby (2001) developed a framework for categorizing the various types of knowledge
management initiatives:
External structure initiatives
Internal structure initiatives
Competence initiatives.
External structure initiatives presents for instance knowledge acquired from customers, internal
structure initiatives mean constructing a knowledge sharing culture, generating new returns from
current knowledge, acquiring individual's tacit knowledge, storing, spreading and reusing it, and
assessing knowledge creating processes and producing intangible assets. Competence initiatives
knowledge transfer and learning from simulations and pilot projects. The resources and skills
ST4S39-V1 – Section B: Strategic Knowledge Management
required to develop a knowledge management strategy depend on the size and complexity of the
On the other hand, Polyani (1966) categorized knowledge into explicit and tacit knowledge.
Dummett (1991) explained Explicit knowledge as being the knowledge that the knower
codified knowledge for example documents, database etc. Similarly, (Brown & Duguid 1998
presented Tacit knowledge as the know-how .Tacit knowledge is knowledge obtained from
knowledge. According to Both et al (2008) Tacit knowledge is located the brain box of
individuals, which is an outcome of cultural beliefs, values, attitudes, mental models, etc. as well
as skills, capabilities and expertise. Tacit knowledge has also been referred to as “soft”
knowledge and explicit knowledge as being “hard” (Hildreth and Kimble, 2002).
ST4S39-V1 – Section B: Strategic Knowledge Management
According to Aristotle, humans are by nature social animals. It is through socialization, the
process of knowledge transfer occurs from generation to generation since the very first days of
communication. Socialization is a key stage in the knowledge transfer and hence in KM. Sharing
has always been a crucial task for knowledge management. Marin and Wellman define a Social
Network as “a set of socially relevant nodes connected by one or more relationships. Social
network are like homophiles, meaning that individuals with similar traits are more likely to form
social ties with one another, which also often impacts their actions. Social groups or
teams, organizational units or whole organizations can also be network elements in the
organization.
Nonaka and Takeuchi’s (1995) presented socialization as the first step in the effort of knowledge
sharing in their SECI model. SECI model for Socialization, Externalization, Combination, and
between explicit knowledge and tacit knowledge. In this model Fig 2 knowledge pursue a
sequence in which tacit knowledge is derived to produce explicit knowledge, and explicit
In 1991 Lave and Wenger developed the concept of Communities of Practice which relates the
strong link between a learning theory and the social construction of knowledge. Community of
practice is composed of members who connect with one another for their pursuit of a common
practice. This shared communal action associates individuals jointly within formal organizational
(Wenger, 1998; Wenger et al., 2002). On the same line, to Wenger and Snyder (2000: p. 140),
perspectives can permit beneficial outcomes. Communities of Practice render a media for
knowledge circulation (Storck and Hill, 2000) and facilitate the leveraging of intellectual assets
approach for organizations desire to value their knowledge and information assets.
Nevertheless, one of the challenges faced in the application of communities of practice , is that
the value earned by a communities of practice would entail a significant period to sense its
impact (Scarso and Bolisani, 2008).Moreover, the advantages of its implication , such as
development in the quality of decisions and expanding the prospect or view for a current
problem (Wenger et al., 2002) would be intangible and very complicated to be quantified.
ST4S39-V1 – Section B: Strategic Knowledge Management
Consequently, it would be considered as a hidden asset owing to the difficulty in estimating their
contribution, and hence would never appear on an organization chart or balance sheet.
Communities of Practice are proposed as a prospective Knowledge management tool. The mode
through which knowledge is generated and transmitted by a CoP, would bring benefit to an
organization, both in the short‐term and long‐term, in terms of tangible and intangible benefits
productivity, are used to observe if such management initiatives practically yield benefit,
Lesser and Storck (2001: p. 836) recognized various tangible benefits which includes decrease in
the learning curve of employees, speed in response to customer needs and inquiries, minimize
and prevent of rework and producing new ideas for products and services.
indeterminate problems and to share knowledge across the traditional structural boundaries.
Moreover, the community concept is recognized as a mode of initiating and preserving long-term
organizational memory .Several organization adopted intentionally the concept of CoPs in their
organizations with the expectation that organizational performance will be improved and
strategic advantages leveraged (Saint,Onge and Wallace, 2003; Meeuwesen and Berends, 2007;
considered as Intangible Asset (IA). It is of great importance to conserve such wealth in such a
mean to avoid its transfer from one organization to another. Brooking (1997, p. 13) indicated IC
assets” when integrated with organization’s other productive resources would lead to worthful
initiation. It is intellectual capital that motivates organizational performance and promotes its
value. Rastogi (2003) defines it as the holistic prowess and potential of a firm, for making or
capital, if the power of intellectual freedom fulfils explicit financial benefits through careful
Andreou et al. (2007, p. 53) state that the business enterprise in this knowledge era has a need to
become “intelligent” about its environment to gain knowledge from its environment and
Performance management is the activity and set of processes that aim to sustain and enhance
operational, as its aim is to confirm that employees contribute positively to business objectives
necessary to identify the objective, Critical success factors (CSFs): for each objective and Key
performance indicators (KPIs) for each CSF. The British Olympic cyclic teams are a great
systems. The point behind measurement is to comprehend the dimensions of something, record
the way it works, reduce the complexity of the world, and give a sense of control and to be able
‘Dashboards’, ‘Quality Improvement Systems’ and ‘The Balanced Scorecard. Such systems aid
how the different parts of an organization work together to process business results. Observing
such interrelationships between groups, managers can make more informed decisions—such as
increasing a budget, adding new hires, or streamlining a business process. The concept of
measurement system would appraise the statement “Before we measure something we must ask
whether we understand what it is we are trying to measure.” (Gray et al, 2015). This is clear in
Essex Police Implementing a Performance Management Framework and in identifying its key
performance indicators (KPI) key through identifying relevant Key Performance Questions
(KPQs). KPQs enable a full and focused discussion on how well the organization is delivering its
objectives and serve as an important bridge between organizational goals and KPIs.. Moreover,
Measurement is crucial not only in systematic management of hidden values but also in
providing a deeper insight of future growth and reveals vital values to the organizational strategic
progress, innovation and quality of human, structural and relational factors that, in turn,
still, forms the base in the quality of service to patients. Healthcare sector, still rely on their
knowledge of their employee rather than on physical assets. A very explicit model of social
network is the rapport built with patient during communicating as well as educating them. Such
networks provide a huge database base utilized in various healthcare analysis, as well as diseases
prevention, adverse effect etc. A knowledge based healthcare system provides the base in
efficient decision making. Solving problems and making optimal decisions in healthcare is
one of the strategic objectives which include performance improvement, creating innovative &
Conclusion
Application of knowledge management can offer an efficient and productive utilization and flow
organization i.e. effective use of the intellectual capital and maximizing its value would lead to
analyze and understand the culture within a workplace i.e. networking, work habits, ways of
communication etc. Therefore in the aim of building a valuable intellectual asset would require a
Reference
A. Marin and B. Wellman, (2009) ‘Social Network Analysis: An Introduction’, in Scott., J and
Peter., C, (Ed.). The Sage Handbook Of Social Network Analysis :Sage, , pp. 12-25.
Botha, A., Kourie, D., & Snyman, R. (2008) Coping with Continuous Change in the Business
Environment, Knowledge Management and Knowledge Management Technology. Chandice
Publishing Ltd.
Brooking, A. (1997) Intellectual Capital: Core Asset for the Third Millennium Enterprise,
London: Thomson Business Press.
Edvinsson, L. and Malone, S. (1997) Intellectual Capital. New York: Harper Collins, NY.
Gold, A. H., Malhotra, A., & Segars, A. H. (2001) ‘Knowledge Management: An Organizational
Capabilities Perspective’. Journal of Management Information Systems, 18(1), pp.185-214.
Gorelick, C. and B.T. Monsou. (2006) ‘For Performance Through Learning, Knowledge
Management is the Critical Practice’: The Learning Organization, 12(2), pp. 125–39.
Stewart, T. A. (2007) The Wealth of Knowledge: Intellectual Capital and The Twenty-First
Century Organization. Crown Business.
ST4S39-V1 – Section B: Strategic Knowledge Management
Hildreth, P.J. and Kimble, C. (2002) ‘The Duality of Knowledge’, Information Research, 8 (1),
pp.142 [Online] Available at: http:/InformationR.net/it/8- 1/paper142.html (Accessed 08
December, 2018).
https://managementmania.com/en/social-network
J. A. M. Gray. (2013) ‘Knowledge management’ BJS, 100(6), pp.14 [Online] Available at:
https://onlinelibrary-wiley-com.ergo.southwales.ac.uk/doi/full/10.1002/bjs.9164_6 (Accessed:
5th Dec 2018).
Liu, A. (2010) Measuring Spiritual Capital as a Latent Variable Defining Spiritual Capital as
Religion Capital.
Lesser, Eric, L. and Storck, J. (2001) ‘Communities of Practice and Organizational
Performance’, IBM Systems Journal, 40 (4), pp: 831-841.
Lonnquist, A. &Mettanen, P. (2003) Criteria for Sound Intellectual Capital Statements. Finland:
Institute of Industrial Management, Tampere University of Technology.
O’Dell, C. and Grayson, C. (1998) ‘If Only We Knew What We Know: Identification and
Transfer of Internal Best Practices’ California Management Review, 40(3), pp. 55–79.
Kaplan, R.S. and Norton, D.P. (2004) ‘Measuring the Strategic Readiness of Intangible Assets’.
Harvard Business Review, 82(1), pp.52-63.
ST4S39-V1 – Section B: Strategic Knowledge Management
Levy, J and Pescosolido, B. (2002).Social Networks and Health. Boston: MA: JAI Press.
Polanyi, M. (1966). The Tacit Dimension. London: Routledge & Kegan Paul.
P.N. Rastogi, (2002) ‘Knowledge Management and Intellectual Capital as a Paradigm of vValue
creation’ , Human Systems Management ,21, pp. 229–240 .
Roos, G. and Roos, J. (1997) ‘Measuring Your Company’s Intellectual Performance’, Long
Range Planning, 30(3), pp. 413-426.
Seleim, A., Ashour, A., & Bontis, N. (2004) ‘Intellectual capital in Egyptian software firms’,The
Learning Organization, 11, pp:332-346.
Storck, J. and Patricia, A. Hill. (2000) ‘Knowledge diffusion through strategic communities’,
Sloan Management Review, Winter, and pp: 63-74.
Sydler, R., Haefliger, S., Pruksa, R. (2014) ‘Measuring intellectual capital with financial figures:
Can we predict firm profitability?’ European Management Journal, 32, pp:244-259
Wenger, E., (2004) ‘Learning for a small planet’ A Research Agenda. Available :
www.ewenger.com/research.
ST4S39-V1 – Section B: Strategic Knowledge Management
D.Z. Levin and R. Cross, “The Strength of Weak Ties You Can Trust: The Mediating Role of
Trust in Effective Knowledge Transfer,” Management Science, vol. 50, no. 11, 2004, pp. 1477–
1490. 4.
Finding its Hidden Brainpower, HarperBusiness Press, New York, NY, 1997
Sophon Yamklin &Barbara Igel :”Communities of Practice Purposefully Designed for Improving
Business Performance” “Knowledge anad Process Management The Journnal of Corporate
Transformation Volume19, Issue4 October/December 2012 Pages 189-202 available at
https://onlinelibrary-wiley-com.ergo.southwales.ac.uk/doi/full/10.1002/kpm.1398 (Accessed on
09 December)
Sveiby, K. E. (1997). The Intangible Asset Monitor, J. of Human Resource Casting and
Accounting.
Kimiz Dalkir Dalkir, 2011, p.311-314 Knowledge Management in Theory and Practice, Second
Edition
Sophon Yamklin
https://www.cipd.ae/knowledge/factsheets/performance-management-intro