Knowledge management is an essential element as it determines the success or failure of an organization. It determines how information will be created, shared, used and also managed to help the company achieve its goals and objectives. Various knowledge management tools and systems exist, and the choice depends on various factors such as the organizational structure and the goals and objectives of the given organization. The paper will propose a system that can be used in measuring the impact of the knowledge management approach that has been adopted and how the results will be analyzed. The steps are necessary for fostering a learning environment as well as how the how to measure the job performance, decision making, and organizational commitment will also be discussed in this paper.
The Cincinnati-Hamilton County Community Action Agency is a non-profit organization that focuses on alleviating the poverty levels while increasing self-sufficiency. It achieves the goal by providing the necessary resources that individuals can use to create a healthy and productive life, therefore, helping individuals achieve their full potential. Currently, the community development financial institution serves an estimated 2,045 children and families by offering job training programs as well as other forms of training to various employees to enable them to meet their daily needs and wants.
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The company therefore heavily relies on the trainers to achieve its goals and objectives. However, the high turnover rate has made it challenging for the nonprofit organization to achieve its goals and objectives. Having proposed a knowledge management program that focuses on integrating new employees into the organization during the recruitment and hiring process, it is essential to propose a system to assess the impact of the knowledge management program.
Determining knowledge management approach
One way of measuring the knowledge management approach to be adopted is by taking into account the explicit and tactic oriented perspective that classifies the approaches into four styles namely the dynamic, system-oriented, passive and human oriented (Maier, 2004). The explicit-oriented perspective measures the extent to which the organizational knowledge can be coded and stored making it available for use while the tactic-oriented perspective assesses the degree of acquiring and sharing the organizational knowledge.
Under the passive style, an organization does not systematically manage knowledge while also not fully exploiting the available knowledge. System-oriented knowledge management style places a lot of emphasis on the reuse and coding of information while not focusing on how the knowledge can be acquired and shared (Awad & Ghaziri, 2007). The style is facilitated through the implementation of advanced Information technology systems. These systems tend to be complex making it challenging to use and access the information although group and standard training programs help in facilitating the knowledge management.
The other class is the human oriented style that places a lot of emphasis on the ability to acquire and share knowledge and experiences. Knowledge sharing is encouraged by establishing a strong relationship among the organizational members, and therefore these organizations use such strategies that facilitate the transfer of information such as storytelling (Awad & Ghaziri, 2007). Lastly, the dynamic style integrates both the tactic and explicit perspectives to enable knowledge storage and sharing, therefore, resulting in the most desired results.
Proposing a measurement system
Assessing the type of impact the knowledge management approach pose to the organization may require an evaluation of how it relates to various aspects of the organization. These aspects include the organizational performance, qualitative case studies, return on investment, and balanced scorecard approach (Awad & Ghaziri, 2007).
It is essential to measure whether the approach has improved the organizational performance to ensure that the stakeholders who are the decision makers continue with their support for the knowledge management approach adopted (Awad & Ghaziri, 2007). However, such assessment is quite challenging considering the intangible nature of the results and the possibility that other factors other than knowledge management have contributed to the improvement in the organizational performance. Other factors in the competitive environment, as well as other conditions in the industry, can contribute to the performance.
Performance measurement can be categorized into three broad categories that include internal measurement, external measurement, and inferred value measurement. Internal measurement evaluates how well the knowledge management approach is implemented, and such may use such methods as interviews, survey and even the level of satisfaction (Maier, 2004). Values and weights are used to give rating where one gives their perception on the effectiveness of the approach. External measurement requires an analysis of the financial and numerical figures using tools as return on investment. Lastly, the inferred value assesses the impact by speculating and stating the anecdotal benefits.
The return on investment is a measure that focuses on justifying the use of resources in knowledge management initiative while also assessing the financial performance of the organization as a result of the initiative. The measure involves dividing the value of benefits with the cost incurred on adopting the approach. The costs include the resources spent on developing and implementing the knowledge management approach as well as any other additional resources such as the time devoted to the project. Since the benefits are not always clear, the employees can be asked to provide an estimate of the benefits as well as the costs realized due to the adoption of the knowledge management approach (Chilton & Bloodgood, 2014). Alternatively, the employees can be asked to outline the benefits or savings that are directly related to the adoption of the knowledge management approach that focuses on integrating new employees into the organization during the hiring and recruitment stage.
Although the managers often prefer the return on investment measurement method due to its ability to present financial figures, its application in measuring the impact of some projects is limited. The model is challenging as its success heavily depends on individual judgment rather than the presence of objective data (Maier, 2004). Also, those benefits that cannot be translated to financial and numerical figures are not included in the model. Such benefits may include customer satisfaction and enhancement of quality rather than quantity.
A qualitative case study is also another alternative measurement approach that assesses those benefits that are not quantifiable. It evaluates non-numerical information through the use of such tools as focus groups, interviews, and observation (Chilton & Bloodgood, 2014). However, the approach relies on the expectations and perceptions of the interviewee when using the interview method.
The other strategy that can be used in measuring the performance of the knowledge management approach is through the use of balanced scorecard approach. The approach was developed to complement the traditional financial performance measures by creating a balance between financial and operational measurement. It assesses the benefits in various perspectives such as financial perspectives, customer perspectives, internal business perspective and innovation and learning perspective. Under the consumer perspective, the balanced scorecard approach measures the ability of an approach to meet the various customer expectations and ability to deliver the expectations on the required time (Chilton & Bloodgood, 2014). The internal business perspective evaluates the processes that are implemented by the business to meet the customer needs and expectations that include quality, cycle time, cost and productivity. Innovation and learning perspectives measure the impact of the adopted project to influence the ability of the employees to innovate and learn therefore contributing to value addition and improvement. Lastly, financial perspectives evaluate the performance of the business in such aspects as profitability, growth and shareholders value (Chilton & Bloodgood, 2014). Such value can be assessed in terms cash flow, return on equity and the growth in sales.
The balanced score card approach is, therefore, the most appropriate strategy to measure the impact of implementation of knowledge management approach encouraging the integration of new employees into the organization during the recruitment and hiring stage. It incorporates both the financial measures by assessing the financial value presented by the approach as well as the operational measure by assessing the level of customer satisfaction, internal processes, and the contribution to innovation and other forms of improvement on activities (Awad & Ghaziri, 2007). By assessing these indicators, the strategy is the most appropriate as it measures aspects that are not evaluated by other approaches such as return on investment.
Fostering a learning environment
A positive, productive learning business environment is crucial to an organization as it enables the development of the skills and capabilities of the employees. Managers can implement various steps to ensure that such an environment has been created. The first step is to evaluate the strengths and the weaknesses of the employees. By understanding the motivations, interests, and background of the various employees, their learning needs will be identified and the most appropriate relevant training program located (Maier, 2004).
The second step involves recognizing and adapting to the various learning styles. The stage appreciates and recognizes that each may prefer a different learning style with some being visual learners while others are auditory learners, tactile learners (Maier, 2004). The differing needs help in creating a diverse learning culture. With the understanding, the knowledge will be shaped so it may be delivered most appropriately and relevantly. The third step is to shape learning in a manner that it is fun and adventurous to the employees. Learning should be integrated into other activities to help establish a strong relationship with the employees. The other step may involve incorporating online learning courses in the learning program. Through online training programs and materials, the employee will gain new knowledge at their convenient time. Lastly, follow up and review is crucial as it helps in assessing whether the learning program has been able to meet the intended goal and objective (Chilton & Bloodgood, 2014). Group discussions are effective in helping the employees apply the newly gained information to sharpen their skills and capabilities.
References
Awad, E. M., & Ghaziri, H. M. (2007). Knowledge management . Delhi: Dorling Kindersley, licensees of Pearson Education in South Asia.
Chilton, M. A., & Bloodgood, J. M. (2014). Knowledge management and competitive advantage: Issues and potential solutions .
Maier, R. (2004). Knowledge Management Systems: Information and Communication Technologies for Knowledge Management . Berlin, Heidelberg: Springer Berlin Heidelberg.
