Knowledge Organization

Organizational theory developed in the past few years with the study of changes that the knowledge economy has brought to the organizational ecosystem including changes to the structure, culture, routines, and internal and external communications. In the knowledge economy with increasing emphasis on the value of innovation and knowledge work, i.e. the knowledge intensity of business processes and operations, organizations became more of learning systems.A number of characteristics were unifrormly detected prompting many writers to detect the emergence of a model – the model of the knowledge organization where knowledge is at the core of business performance. Those organizations recognized the knowledge-intensity of their business processes , operations, networks and decision-making, and adapted their structures and management styles in response. In many organizations this was only the first step in their evolutionary journey to becoming learning orgnizations – that know what they know, apply it and learn from it.

The knowledge organization model used by the most successful organizations of the knowledge economy has the following characteristics:

* A flat structure where the number of layers that knowledge and information have to traverse are much fewer than those of the industrial economy organizational model. For example Dow Chenmical delayering in late 1990s from 14 to 5 layers.

* A boundary-less structure to enable interaction and cross-pollination of experiences between the different departments and business units, and the increased use of cross-functional teams.

* Flexible organizational boundaries between the organization and external partners to tap into the various networks when needed and access for new ideas for business growth.

* An IT infrastructure that facilitates the generation, collection, sharing of ideas and knowledge across departmental and divisional boundaries.

* A management style based on leadership and motivation of knowledge workers rather than command, control and close supervision. Decision-making is pushed down as much as possible to middle and frontline management while top and senior management focus more on strategic planning and defining future directions.

* A strong and positive culture that promotes action on self-initiative, trust, collaboration and knowledge sharing. Risk taking and failure are seen as part of experimentation and knowledge workers are not only encouraged to submit new ideas but to implement them as well whenever possible.

* New positions on the senior and frontline management levels entrusted with the management of knowledge, innovation and intellectual property. Examples include Chief Knowledge and Learning Officers (CKOs and CLOs), Directors of Intellectual Capital or Intellectual Property, Knowledge Engineers and Specialists, and Information Stewards.

 

Note - Please visit this page later for more on the concept of the learning organization and the implications of this concept on strategic planning.

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