Discuss about the Knowledge Management and Organizational Culture System.
Abbas, & Hanif (2012) defines Knowledge Management as the systematic processes governing the creation, dissemination, and utilization of knowledge. According to Forst (2012), knowledge management entails conveying of the right knowledge to the right person. Knowledge management is an essential tool in the growth and development of every organization. For knowledge management to be effective, it needs to be well coordinated with the organizational culture which is unique in every organization (Shafei & Laveh, 2012). The culture of the organization is essential in knowledge management since understanding and meaning of events is different and unique in every organization. Like other organizations banks, have their culture which protects the banking ethics. The banking culture guides the staff to behave and work towards the attainment of their goals with ease (Shamsabadi, 2014). Knowledge management can be used to influence interaction patterns among the members of the organization and enhance its competition in the market through the creation of an appropriate organizational culture (Sadeghiet.al, 2011).
According to Mueller, (2012), organizational culture hold is what unites the organization. Organization culture and knowledge management are linked. Knowledge management is influenced by organizational culture this is because knowledge management primarily relies on the interaction of the members of the organization (Cardoso et al. 2010). According to Mueller (2012), the organizational culture can be changed by knowledge management due to a close relationship that exists in these concepts of any organization.
The organizational culture has an impact on the process of knowledge management. Hokzisinki & Buchaman (2001) defined organizational culture as a common set of values, beliefs, customs, traditions and sustainable practices passed to the members of the organization. The organization culture guides the common conducts and practices of the staff, which makes them unique from other organizations (Shafei & Laveh, 2012). Schein, (2010) also notes that organizational culture is unique and it is difficult to change in any organization.
According to Khoramkhah et.al (2013), in their study on how organizational culture affects knowledge management, they found that there are four aspects of organizational culture, that is, work, consistency, adaptability, and mission had a significant relationship with knowledge management, but adaptability had the greatest relationship and influence. Rezaie K et.al (2014) researched on organizational culture and knowledge management a case study of Islamic Azad University and determined the contribution of adaptability, participation, flexibility and mission which are components of organization culture and knowledge management
Raquel& Daniel (2011) reviewed and analyzed the types of organizational cultures which enhance creativity and found that organizational culture can be used to confirm creativity technique clearly. Chung Wen (2012) in his study on performance and intellectual capital of biotech companies discovered that there was a relationship between technological innovation and financial performance.
According to Bedford (2013,) more often, organizational culture fails to agree with individual effort. This is because consists of often ignored assumptions and shared meanings shared through participation in the organization (Ajmal & Koskinen, 2008). Ajmal& Koskinen further argues that cultural factors rather than technological oversights mostly lead to failure of knowledge transfer systems. This, therefore, can lead to failure of the knowledge management system.
According to Ajmal& Koskinen (2008), the firm’s ability to manage knowledge effectively depends on how culture relates knowledge creation process. Ajmal& Koskinen believed that a successful knowledge management could only be achieved through establishing a supportive culture while developing knowledge management systems.
Knowledge can only be transferred through sharing; this can only be facilitated by a shared organizational culture which influences individual’s perception of owning knowledge and make him share it with others (Tan et al., 2009). The similarity of values and a common set up of sharing knowledge based on experiences and academic knowledge determines how information is shared in an organization (Foss, Husted & Michailova 2010). The meanings and values that the members of the organization attach to knowledge management systems is influenced by individual assumptions which make up organizational culture (Schein 2010)
The leverage of organizational refinement on knowledge management process is evident since it affects the employees’ behavior. Organizational culture is a critical aspect of knowledge creation, storage, transfer and application (Ajmal & Koskinen, 2008).
According to Smith (2013), Knowledge Management system refers to an information recording system in an organization where every member of the organization can retrieve the information. Forst (2010) describes knowledge managements systems as any IT system used for; storing information where it can easily be retrieved, its source located and enhances collaboration in the organization.
Gupta & Sharma (2004) categorized knowledge management systems into six categories as follows;
Knowledge management systems enhance better distribution of knowledge through increased sharing of information. Information that was only known by one worker can be made known to the rest of the people in the organization (Smith, 2013). The systems provide a platform for learning which increases the knowledge base of the organization.
Knowledge management systems lead to improved accuracy and consistency of information. Thisisattributedto the fact that all members of the organization can access and contribute to the internal knowledge base.
Sharing knowledge leads to increased employee satisfaction. This is because the workers with knowledge, desire to share that knowledge which they have and is attached to them.
Knowledge management systems save on time because less time spent on looking for answers. This is attributed to a central database with powerful search functions which makes it easier for members of the organization to retrieve.
The systems also enable new workers to adopt easily in an organization since there is a rich source of information at their disposal. This helps them to easily access answers to questions they may be having about the organization.
At some point, employees may leave the organization, in such scenarios, knowledge management systems help in retaining knowledge which the organization has acquired from them. The knowledge is captured and stored and can easily be retrieved even when the owner leaves the organization. The system, therefore, prevents loss of important information.
Introduction KMS faces some challenges in the organization. Botha et al. (2008) stress that there is need to understand what knowledge management systems cannot do. He argues that by introducing these systems, it does not guarantee knowledge sharing among the experts, other initiatives have to be outsourced and implemented.
Successful implementation of KMS systems has three stages; adoption, acceptance, and assimilation (Hecht et al. (2011).Hecht et al. identified three sets of factors affecting KMS stages of implementation. They came up with the model below for implementing KMS.
According to Hecht et al.(2011), the adoption stage of implementing KMS is faced with several challenges such as cultural values, and commercial advantage among others. To successfully adopt KMS, one needs to;
Hecht et al. (2011) outlined the following factors that influence acceptance of KMS systems; anxiety, ease of use, motivation, social factors among others. Acceptance of KMS systems can be promoted through;
According to Hecht et al. (2011), the assimilation stage of KMS is facing challenges like inadequate knowledge, lack of managerial support, high costs incurred and willingness of the organization members to work together. They suggested the following ways by which assimilation of KMS can be promoted by:
Critical discussion on Knowledge management and organizational culture in Sepah Bank in Yadz City
Sarmadi, et al. (2015) in their study on whether organizational culture, knowledge management, and intellectual capital relate, they found that there was a close relationship between organization culture and knowledge management. They found that organizational culture had a direct positive impact on knowledge management. This suggests that a change in the organization culture can be done through changing the interaction patterns of people in the organization.This will help the bank to have a competitive advantage over others.
The study illustrates the importance of organizational culture which sepah bank should put into consideration. For there to be an effective knowledge management system, the management should ensure that measures are taken for the organizational culture to favor the implementation of Knowledge Management systems.
Sarmadi, et al. (2015) also found that knowledge management has a significant impact on intellectual capital. These results put emphasis on the importance of knowledge management which the managerial system of the bank should put into consideration. This calls for a need to increase the wealth of information available to the staff in the organization.
The results from this study, also indicate that organizational culture positively affects intellectual capital.The Bank managerial system should consider building a better organizational culture which will enhance improved sharing of information.
The study shows significant relationships between the three aspects which are, organizational culture, knowledge management, and intellectual capital. However, organizational culture seems to be the central aspect with a positive impact on both knowledge management and intellectual capital. This indicates that for effective knowledge management, the organization must consider creating a conducive culture that encourages sharing of information among members of the organization.
Conclusion
Knowledge management is vital to every organization. It enhances the growth of the organization and determines how well it can compete with other organizations in a similar line of production. However, knowledge management depends heavily on the organizational culture. The organization should consider the impact that organizational culture has on knowledge management and try to build a strong culture which embraces sharing of information among all the members of the organization. The management should be supportive in the implementation of Knowledge Management systems. It is important to encourage participation by all members of the organization including the junior workers. The Knowledge management systems implemented by the organizations should be easy to access and use for all the members of the organization.
References
Ajmal, M. and Koskinen, K., (2008). “Knowledge transfer in project-based organizations: an organizational culture perspective,”Project Management Journal, Vol. 39 No. 1, pp. 7-15.
Bedford, D., (2013). “A case study in knowledge management education – historical challenges and future opportunities,”Electronic Journal of Knowledge Management, Vol. 11 No. 3, pp. 199-213.
Botha, et al., (2008). Description: The Knowledge Management Process Model. Available at: https://www.innovators.edu.pk/node/220
Cordoso, L et al (2012). Knowledge Management and its Critical factors in in social Economy organizations. Journal of knowledge management, 16(2)
Foss, N, Husted. K &Michailova S (2010). Governing knowledge sharing in organizations: levels of analysis, governance mechanisms, and research directions. Journal of management studies, 2010. 47(3)
Frost, A., (2010).Knowledge Management from A to Z: Knowledge management systems. Available from: https://www.knowledge-management-tools.net/
Hecht et al. (2011) Fostering adoption, acceptance, and assimilation in knowledge management system design. Available at: https://www.researchgate.net/publication/220866471_Fostering_adoption_acceptance_and_assimilation_in_knowledge_management_system_design
Khoramkhah, H., et al., (2013).The Impact of Organizational Culture on K Knowledge Management. Journal of Knowledge Management, Issue 19
Lin, Y. and Dalkir, K., (2010). “Factors affecting KM implementation in the Chinese community,”International Journal of Knowledge Management, Vol. 6 No. 1, pp. 1-22.
Mueller, J. (2012). The interactive relationship of corporate culture and knowledge management: a review. Review of managerial science, 6(2)
Reddy, N., (2013).Types of Knowledge Management systems. Available from:https://www.slideshare.net/k_nitin_r/types-of-knowledge-management-systems
Rezaie, K. et al., (2014) Studying the relationship between organizational culture and knowledge management in Islamic Azad University, Sari Branch and determining the contribution of each component: Quarterly Journal of New Approach in Educational Administration V(1)
Sarmadi, H et al., (2015).Examining the relationship between organizational culture, knowledge management and intellectual capital (Case study: Branches of Sepah Bank in Yazd City). Adv. Environ. Bio, 9(2), 54-64 2014
Shafei, R & Laveh, (2012). The study of the influence of organizational culture and its relationship to foster knowledge management, knowledge workers and its relationship with fostering knowledge employees in government agencies in Western Azerbaijan province; studies in management. 16(3): 131-151
Shamsabadi, M., (2014).Understanding the components of organizational culture.Journal of Economics world. Vol XII
Sadeghi, An et al., (2011). The relationship between organizational culture and knowledge management component, Case study: Shahid Hashemi Nejad Hospital in Tehran. Journal of the hospital, 10(2)
Smith, C., (2013). What is a Knowledge Management System? Available from: https://www.dzonesoftware.com/blog/what-is-knowledge-management
Tan, N. et al., (2009). “Trust: facilitator of knowledge-sharing culture, “Journal of Communications of the IBIMA (CIBIMA ), Vol. 7 No. 15, pp. 137-142.
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