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CE 726. Knowledge Management and Organizational Learning. Group Members : Handan GÜNDOĞAN Çağdaş MUTLU. OUTLINE. Introduction Definitions Knowledge Management Organizational Learning Drivers Applications in UK, US and TR Barriers Models Developed Conclusion - PowerPoint PPT Presentation
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LOGO
Knowledge Management and Organizational Learning
Group Members:
Handan GÜNDOĞANÇağdaş MUTLU
CE 726
OUTLINE
Introduction Definitions Knowledge Management Organizational Learning Drivers Applications in UK, US and TR Barriers Models Developed Conclusion Further Studies
To define the knowledge,
Wisdom
Knowledge
Information
Data
Definitions
DATA represents Facts, Observations, Values of Results, Quantitave, Has not been processed,
It is obtained from Observations (input).
Definitions
INFORMATION relates to, structured data meaningful data describe a particular situation or condition
It gives us definitions. (what,who,when,where)
Definitions
KNOWLEDGE consists of
know-how, truths, perpectives, concepts, judgements, methodologies,
It is about action and decision-making capability.
Types of Knowledge
Tacit Knowledge (informal or soft)-knowing how
• obtained from experience• stored in people’s head• difficult to document• difficult to communicate or share with other people
Explicit Knowledge (formal or hard)-knowing that
• explained and recorded• easily documented and transferred• physically stored in either paper or electronic format
Knowledge Management
KM can be defined as a systematic process that creates, captures, shares, and analyzes knowledge in ways that directly improve performance. It is about helping people to communicate and share information. (Parlby, D. 1998)
The aim of Knowledge Management is to support Organizational Learning (Lehner and Maier, 2000)
Central concept of KM
Putting individuals in touch with one another to share their tacit knowledge.
Transforming individuals’ tacit knowledge into explicit knowledge, which can be used by the entire organization.
So, Knowledge Management can be interpreted as the ability to get the right information to the right people at the right time, and in the right place.
Four Processes of Knowledge Management
Creating of knowledge
Distributing knowledge
Sharing knowledge
Capturing and Codifying knowledge
Information Technology
IT is the general term that specifies computer-based tools used to gather, code, process, store, transfer and apply data between machines, people and organizations.
Laudon and Laudon (1998) classify information systems for knowledge management into four main categories;
Why Knowledge Management?
It creates value, and gain and sustain competitive advantage.
Saves money by not reinventing the wheel for each new project.
Reduces costs by decreasing and achieving economies of scale in obtaining information from external providers.
Increases productivity by making knowledge avaible more quickly and easily.
Provides workers with a more democratic place to work by allowing everyone access to knowledge.
Learning faster to stay competitive.
Organizational Learning
Dodgson (1993) explains OL as • the way firms build,• supplement, • organize knowledge,• routines around their activities, • within their cultures, • adapt and develop organizational efficiency by
improving the use of the broad skills of their workforces.
Organizational Learning
Kullunga (2001) defined OL as encouraging a learning curve within an organization such that employees at all levels, individually and collectively, continually increase their capacity to improve their level of performance.
From these definitions, OL can be summarized as the set of actions to acquire, share and interpret knowledge among the members whose main objective is to increase company performance through improved quality of decision-making in the organization.
Organizational Learning
The most important point is, the existence of a knowledge management
infrastructure within the organization whose mandate is to identify, analyze, manage, maintain and disseminate knowledge to appropriate individuals within the organization and externally to others (Liebowitz et al., 1999). This can be only be achieved through the proper combination of relevant systems and skills that are influential in the learning process of an organization.
According to Peter Senge, five learning skills are;
Levels of Learning
Jeffries et al. (2003) developed a perspective by defining the levels of OL as three phases beginning at the individual level by interpreting and reflection, maturing at group level by integration and conceptualization and finally reaching the organization level by institutionalizing and experimentation.
Individual Learning
Group/Team Learning
Organizational Learning
Levels of Learning
Individual Learning is the foundation for the existence of organization’s learning and it should be enhanced to lead to more effective OL.
Group/Team Learning is an inseparable step of OL
since teams provide new approaches to the learning process, cause fundamental organizational changes by functioning as a bridge between the individuals and the organization (Marquardt,1996).
Organizational Learning requires the crucial step of the transformation of individual learning into OL.
So, OL necessitates four main events defined by Crossan et al.’s (1990),
The preconscious recognition of the possibilities inherent in a personal experience
İntepreting, the explanation of an idea to oneself and to others.
İntegrating, the developing of a shared understanding and coordinated action among individuals.
İnstitutionalizing, the process of ensuring that actions are made routine.
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Types of Learning
Single-loop learning involves an organization to respond to changes in its environment by detecting errors and correcting them, but maintaning its existing organizational norms.
Double –loop learning, on the other hand, involves the revision of organizational culture, assumptions, guidelines, objectives, strategies and structure of an organization. It is a process of creative renewal and rediscovery of an organization to remain competitive (Senge 1990).
Organizational Transformation
As Huber(1991) states, organizations whose structures, processes and technologies are not well suited to deal with the increasing enironmental complexity and knowledge are unlikely to survive. Around the shared vision and culture, organization should develop new strategies and structures so as to become a learning organization (Marquardt, 1996). For an organization,
• Vision• Culture• Structure• Strategy
Organizations
Vision: The vision of the organization is represented by the commitment for a certain goal, direction or hope for the future of the organization. According to Marquardt(1996), the first and the most important step in becoming a learning organization is to build a solid foundation of shared vision about learning.
Culture: Walsh and Ungson (1991) define culture as the conscious patterns of assumptions, values, and beliefs shared by a collective (cited in Berthon et al., 2001). Culture acts as a kind of knowledge filter; it specifies what information is of value,influences the interpretation of information and coordinates collective action taking (Weick, 1994 cited in Berthon et al., 2001).
Organizations
Structure: The key charasteristic of the structure of the organization is that, it links the various elements of the organization through the transformation of information. As emphasized by Salaman and Butler (1994), the organizational structures surrounding a project appear to centrally influence a project’s tendency to perform learning activities and to contribute to the knowledge of the permanent organization (cited in Kasvi et al., 2003).
Strategy: Identification, capture and transfer of knowledge within the firm are expected to be in alignment with the organization’s strategic objectives. Strategy influences learning by providing a boundary to decision-making and a context for the perception and interpretation of the environment.
Organizational Learning Processes
Knowledge Acquisition
Information Distribution
Information Interpretation
Organizational Memory
Organizational Learning ProcessesKnowledge Acquisition
External monitoring the environment
Internal information systems manage and retrieve information research development education training patent watching
Organizational Learning ProcessesInformation Distribution
Informal Tacit know-how Letters Memos Conversations Stories by employees
Formal Seminar Reports Information systems
Organizational Learning ProcessesInformation Interpretation
Huber (1991) states that individuals and groups have prior belief structures that shape their interpretation of information and thus the formation of meaning.
So, to share the information firstly, it should be interpreted.
Organizational Learning ProcessesOrganizational Memory
Hard information Data Intranet/internet systems Warehousing
Soft information Experiences Tacit know-how List of contacts
Drivers for KM and OL in Construction Industry
A learning organization is skilled at creating, acquiring, sharing, and applying knowledge, and embracing (fostering) change and innovation at all levels, resulting in optimum performance and maximum competitive advantage.
Drivers for KM and OL in Construction Industry
To share valuable tacit knowledgeTo develop new productsTo become more innovativeTo increase client satisfaction(faster
response etc.)To eliminate reworks
Drivers for KM and OL in Construction Industry
To disseminate (spread) best practicesTo encourage continuous improvementTo improve business performance (better bid
preparation skills etc.)To enable employees to understand and
apply knowledge to different scenarios
(Cont’d)
Situation in UK in Terms of KM and OL Applications
40% of construction organizations have KM strategy.41% plan to have a strategy within one year.90.5% use intranet to support KM activities.A number of public funded researches investigate
how KM could be utilized in construction sector.Also, universities collaborate, with the industry in
numerous other projects.
Carrillo,2006
Situation in US in Terms of KM and OL Applications
Research on 30 construction organizations;50% of the companies utilize an “ad hoc” process to
capture lessons learned.50% do not employ communities of practice (CoP).37% do not have a software to support KM activities.67% has a reactive attitude towards KM.
Carrillo,2006
Situation in Turkey in Terms of KM and OL Applications
Kıvrak, Arslan, Dikmen, Birgönül, 2006
Research on 8 leading construction companies;TCA members5 of them listed in top 225 ENR list in 2005Ages range from 41 to 53Total revenues in 2005 range from 135 to 895 M $
Situation in Turkey in Terms of KM and OL Applications
Kıvrak, Arslan, Dikmen, Birgönül, 2006
Capturing Knowledge;6 companies who do not have a KM strategy consider
41-60% of the knowledge as tacit.Companies who have a KM strategy considers 20% of
knowledge as tacit.Colleagues, company’s experience, personal
experience, documentation and team meetings are seen as the major knowledge sources.
Internet is not considered as a major knowledge source.
Situation in Turkey in Terms of KM and OL Applications
Kıvrak, Arslan, Dikmen, Birgönül, 2008
Storing Knowledge;5 companies evaluate projects after completion.2 of them stores these evaluations digitally.Cost control and bid preperation data are recorded
digitally and reused when required.6 companies do not have a database to combine all
documents and records.Data stored in; reports, computer files, personal
archives and heads of individuals
Situation in Turkey in Terms of KM and OL Applications
Kıvrak, Arslan, Dikmen, Birgönül, 2008
Reuising and Sharing Knowledge;On-the-job training, intranet, meetings and face to
face interactions and e-mail are the major means to share knowledge.
Companies generally rely on the individuals experiences and use stored data in emergency cases.
Knowledge Management Strategies;2 companies have KM strategies and 2 of them plan
to implement a strategy in the future.
Situation in Turkey in Terms of KM and OL Applications
Özorhon, Dikmen, Birgönül, 2005
Research on 8 construction companies;Learning from other companies experiencesMonitoring competitors performance & bid pricesStrategies of competitorsUse of web to learn practices of foreign companiesLearning from foreign joint venture partners
• Quality• Health and Safety Assurance
Disagreement whether practices of companies from other industries can be useful or not
Situation in Turkey in Terms of KM and OL Applications
Özorhon, Dikmen, Birgönül, 2005
Research on 8 construction companies;Learning from external sources;Management consultancy firmsUniversitiesForeign organizations (World Bank, etc.)Professional associations (TCA, etc.)Training consultancy firmsGovernmental bodies (Chamber of Civil Engineers...)
Situation in Turkey in Terms of KM and OL Applications
Özorhon, Dikmen, Birgönül, 2005
Shares of knowledge sources in organizational memory
Composition of organizational memory in terms of knowledge type
Barriers to KM and OL Implementations
Barriers to KM and OL Implementations
Özorhon, Dikmen, Birgönül, 2005
A business development manager of Company E indicated that;...experience gained through aproject cannot be transferredto another engineer via paper;new employees cannot alwaysshow the same performance by reviewing the previous experiences of their pioneers...
Difficulties in measuring the value added
Focus on projects instead of organizations
Traditions and conservative company culture
Cultural differences due geographical diversity
Instable workforce (high employee turnover)
Barriers to KM and OL Implementations
Chinowsky, 2007
Inappropriate IT Infrastructure
Insufficient time
Insufficient funding
Lack of executive support
Lack of standard work processes
Barriers to KM and OL Implementations
Chinowsky, 2007
- US based engineering design company;# of employees: 6100Annual Revenue (2004): 720.5 $ MENR Ranking (2004): 12KM activites since 1997Main focus on people since 1999
• Knowledge communities• Knowledge bases
Major investments on IT infrastructure Increase in winning projects attributed to KM and OL
A Case Study on KM and OL Practices
Carrillo, 2006
To assist organizations in implementing KM and to measure their learning skills, several models are developed• Learning organization maturity model(1)
• STEPS Model(2)
• LEONARDO(1)
• Knowledge Platform for Contractors(3)
Models Developed
1) Chinowsky, Molenaar, Realph, 20072) Chinowsky, Carrillo, 20073) Kıvrak, Arslan, Dikmen, Birgönül, 2008
A web-based system to capture data & reuse in future
Tacit Knowledge
Knowledge Platform for Contractors
Kıvrak, Arslan, Dikmen, Birgönül, 2008
face to faceinteractions
coaching andmentoring
brainstorming communities ofpractice
Explicit Knowledge
documents reports standards specifications
Kıvrak, Arslan, Dikmen, Birgönül, 2008
Conclusions
Mixed awareness of knowledge and KM Increasing importanceTransformation from KM to OL should be done in time.Continuous improvement and personal advancement
must become fundamental to achieve OL. Inefficient KM is widespread in TR, especially due to
the lack of KM strategy. In TR, organizational memory mainly depends on own
experiences rather than other companies or external sources.
Researches in this topic have the risk to include bias.
Further Studies
STEPS Model helps organizations to implement KM
Chinowsky, Carrillo 2007
Further Studies
Learning Organization Maturity Model defines 5 levels to achieve a learning organization
Chinowsky, Molenaar, Realph, 2007
References
1. Özorhon, B., Dikmen, İ., and Birgönül, T. (2005). “Organizational memory formation and its use in construction.” Building Research & Information, 33(1), 67-79.
2. Carrillo, P., and Chinowsky, P. (2006). “Exploiting knowledge management: the engineering and construction perspective.” Journal of Management in Engineering, 22(1), 2-10.
3. Chinowsky, P., and Carrillo, P. (2007). “Knowledge management to learning organization connection.” Journal of Management in Engineering, 23(3), 122-130.
4. Chinowsky, P., Molenaar, K., and Realph, A. (2007). “Learning organizations in construction.” Journal of Management in Engineering, 23(1), 27-34.
5. Kıvrak, S., Gökhan, A., Dikmen, İ., and Birgönül, T. (2008). “Capturing knowledge in construction projects: knowledge platform for contractors.” Journal of Management in Engineering, 24(2), 87-95.
6. Knowledge Management Strategy For Construction: Key I.T. And Contextual Issues,Patricia M. Carrillo, Chimay J. Anumba, John M. Kamara,
7. http://www.adb.org/documents/studies/auditing-lessons architecture/ala2.asp