The Concept of Knowledge Management
The term knowledge management is something that is difficult to define. In an organization that gives preference to knowledge based working, the knowledge is managed in terms of quantity and quality in compliance with the organization policies to achieve the ultimate goal of the organization.
Knowledge is everywhere. In knowledge management, the people are treated as human assets. Business organizations that have given importance to knowledge have become successful by implementing new knowledge based methods.
The instruments of knowledge management
The process of knowledge management is never complete with the following heads:
- Change management
- Best practices
- Risk management
Change management: Change is inevitable. An organization undergoes change due to many reasons. It might happen because of environmental, economical, legal, political, or technological factors. The organization that adopts change quickly will be able to cope with the new developments.
In change management, the business becomes sensitive to change. The business might be able to achieve positive results on the basis of how sensitive they were in adapting to changes.
Best practices: The best practices in business mainly consist of a leader who leads the organization. He or she should be able to lead the human assets by example. The best practices include establishing attainable targets, flat management structure, transparent and flawless communication from top to bottom level and vice versa, and constructing futuristic plans for generating positive results.
Risk management: The presence of a good risk management system will help in the smooth flow of the business for a longer period of time. A good risk management system should be able to understand and measure the risks. The management should sketch new policies, and the policies should be executed at the right time to overcome the risks. When the risks are monitored periodically, then the business is able to diminish various kinds of risks.
Benchmarking: Benchmarking, in simple terms, is the process of setting standards. The set standards are practiced in the future for better productivity both in qualitative and quantitative terms.
Knowledge for business
Knowledge is power. The time is gone when people carried out their business with good old principles. It is now necessary to adopt quality information and knowledge of the related areas in order to run a business effectively.
Knowledge management might be treated as a new concept. With knowledge management, conventional business activities experience a paradigm shift.
The primary advantages are:
- The business can get the upper hand in the competitive environment by the implementation of knowledge management.
- The tricky situations and stress of the business are minimized.