2012 International Conference on Innovation, Management and Technology Research (ICIMTR2012), Malacca, Malaysia : 21-22 May, 2012 Knowledge Management at the Work Place Norhidayah Ali1, Zuraidah Mohamed Isa2, Dahlia Ibrahim3, and Rabitah Harun4, Mohd Norhisyam Awang5 1,2,3,4 Faculty of Business Management Universiti Teknologi Mara, Kedah Campus P.O.Box 187 08400 Merbok, Kedah MALAYSIA 1 norhidayah74@yahoo.com, norhidayah@kedah.uitm.edu.my (6019-4566966) 5 Centre of Graduate Studies, Selangor International Islamic University College (KUIS) Bandar Seri Putra 43000 Kajang, Selangor MALAYSIA Abstract:- Knowledge management (KM) has been in the arena of today’s world for more than a decade. KM has yet to be defined as a discipline of science. To some researchers, it is denoted as a multidisciplinary problems characterized by a number of core theoretical ideas, which include data and information management techniques, artificial intelligence, organizational theory and behaviour, sociology of knowledge and knowledge representation, and business economics and strategy. Nevertheless, within a short span of time, KM is believed to be a tool for designing an organization’s goals, structures, and processes as to learn and to create value for its customers and community. It is also argued as a planned, structured approach to manage the creation, sharing, harvesting and leveraging of knowledge as an organizational asset, to enhance an organization’s ability, speed and effectiveness. Different aspects of KM have been discussed by academicians. However, most academicians unanimously pointed out KM as a new innovation in knowledge. Therefore, to understand the KM concept, this paper will laid out KM brief development, its importance and process in enhancing work performance and improvement of organizational standards. I.INTRODUCTION TO KNOWLEDGE MANAGEMENT universal recipe for managing knowledge – each organisation has to think through and design its own approach (Dalkir, 2005). Rather differently, Plessis (2006) defines KM as a planned, structured approach to manage the creation, sharing, harvesting and leveraging of knowledge as an organisational asset, to enhance an organisation’s ability, speed and effectiveness. It is a holistic solution incorporating people, process, culture and technology. According to him further, organisational culture has a huge impact, positive or negative, on programs such as KM, in accordance with what White (2002) has mentioned above. Frappaolo (2006) concisely defines KM as the leveraging of collective wisdom to increase responsiveness and innovation. It is not a technology, although technology should be exploited as an enabler; it is not a directive, although strategic leadership is imperative to successful KM; it is not a business strategy, although one aligned with the tenets of KM must exist. Similar Index Terms-- knowledge management, KM, work place, organization Knowledge management (KM) as an organizational innovation has been with us for more than a decade. By 2002, KM could not yet be defined as a science of a discipline (White, 2002). He regards KM as a multidisciplinary problem, which is informed by a number of core theoretical ideas, which include data and information management techniques, artificial intelligence, organisational theory and behaviour, sociology of knowledge and knowledge representation, and business economics and strategy (White, 2002). However, as early as 2005 KM as a discipline has reached a state of maturity where we can now discern the principles, practice, and tools that make it unique (Dalkir, 2005). Dalkir (2005) defines knowledge management as a framework for designing an organization’s goals, structures, and processes so that the organization can use what it knows to learn and to create value for its customers and community. There is no single, 978-1-4673-0654-6/12/$31.00 ©2012 IEEE 529 2012 International Conference on Innovation, Management and Technology Research (ICIMTR2012), Malacca, Malaysia : 21-22 May, 2012 to Plessis (2006) and White (2002), Frappaolo (2006) also mentions the role of organisational culture that promotes faith in collective sharing and thinking. However, he added that culture alone will not render a vital KM practice (Frappaolo, 2006). From his definition of KM, Frappaolo (2006) draws our attention to three critical points: 1) Knowledge is connected. It exists in a collection (collective wisdom) of multiple experiences and perspectives. 2) Knowledge management is a catalyst for leveraging action. Knowledge is always relevant to environmental conditions, and stimulates actions in response to these conditions. Information that does not precipitate action of some kind is not knowledge. Frappaolo quotes Peter Drucker as saying “Knowledge in the most part exists only in application.” 3) Knowledge is applicable in an unencountered environments. Information becomes knowledge when it is used to address novel situations for which no direct precedent exists. Information that is merely ‘plugged in’ to a previously encountered model is not knowledge and lacks innovation. It is therefore important to draw a clear line of distinction between information management and knowledge management (Frappaolo, 2006). economies can now exist without involving in the traditional production sector. ‘Knowledge is power’ is a long-established mantra and as it becomes more economically significant, the control over this power have become key issue for society, organizations and individuals alike (Ellis, 2005). Dalkir (2005) gives brief milestones in the developmental phase of KM as follows: 1) Industrialization era, in the 1800’s (e.g. Ford). 2) Transportation era, in the 1850’s. 3) Communications era, in the 1900’s. 4) Computerization era, in the 1950’s and the birth of the Internet in 1969. 5) Virtualization era, in the 1980’s. 6) Personalization era, in the 2000’s (e.g. eBay). From the brief development above, we can start to see the importance of knowledge as the latest kind of wealth and economic asset, hence the importance to properly manage it. Toffler (1981) in his book describes the creation of wealth in terms on three broad waves. The First wave was the agricultural era, where wealth creation was and still is tightly attached to land. The Second wave was the industrial era, where wealth creation happens through industrial production. Lastly, the Third wave was the information era, where wealth creation is tightly linked to information and knowledge handling (Toffler, 1981). II.BRIEF DEVELOPMENT OF KM III.THE IMPORTANCE OF KM To understand KM’s importance, some historical background to its development may be helpful, so that it can be considered in context. Lehaney, Clarke, Coakes and Jack (2004) mentioned that the decline of manufacturing in western economies in the last quarter of the 20th century is well documented, as is the associated rise in services. With this switch in the economic base, came an important change in what was being bought by consumers, and by businesses from other businesses. Whilst a range of tangible products were still being purchased, many consumers and businesses began to purchase substantially more intangible products (i.e. services) which more often than not are mere knowledge (Lehaney et. al. 2004). The purchase of goods and their associated services (i.e. knowledge) is considered to have been major. On this basis, the western world may now be considered as a mix of knowledge economies where it has large bases in services and knowledge is at a premium. This change from manufacturing to services has impacted on all organisations within such economies (Lehaney et. al., 2004). With similar idea, Ellis (2005) mentions that highly successful The knowledge economy has become a reality for many organisations and nation states (Abell & Oxbrow 2001). The rapid development of ICT has changed the basis of trading and doing business. The wealth of a nation no longer depends on its ability to acquire and convert raw materials, but on the abilities, skills and intellect of its citizens. Information and communication technology has not only enabled global connection and information exchange but also has resulted in new ways of doing business (Abell & Oxbrow, 2001). In addition to the fact that knowledge is now a valuable and tradable asset, today’s major business drivers lie on four key areas (Dalkir, 2005), which give further increased interest in KM: 1) Globalization of business: Organisations today are more global – multisite, multilingual, and multicultural in nature. 2) Leaner organizations: People are doing more and working faster, and need to work smarter as knowledge workers, adopting an increased pace and workload. 530 2012 International Conference on Innovation, Management and Technology Research (ICIMTR2012), Malacca, Malaysia : 21-22 May, 2012 Develops professional skills. Promotes peer-to-peer mentoring. Facilitates more effective networking and collaboration. o Develop a professional code of ethics that members can follow. o Develop a common language. For the organisation, KM: o Helps drive strategy. o Solves problem quickly. o Diffuses best practices. o Improves knowledge embedded in products and services. o Cross-fertilizes ideas and increases opportunities for innovation. o Enables organisations to stay ahead of the competition better. o Builds organisational memory. (Dalkir 2005) It is obvious then, proper KM application in an organization will inevitably contributes to high job satisfaction among the workers and the professionals, and the organisation will stand a chance of getting high performance and above-average-returns due to the competitive advantage it builds up. 3) “Corporate amnesia”: People are more mobile as a workforce, which places continuous learning demands on the knowledge worker. A worker no longer expects to spend his entire work-life in the same organization. 4) Technological advances: People are more connected and advances in information technology not only have made connectivity ubiquitous but have radically changed expectations. A worker is expected to be “on” at all times, and the turnaround time in responding is now measured in minutes, nor weeks (Dalkir, 2005). He added that KM is even more important today because the work environment is more complex where a worker needs to attend daily to the increase in the number of subjective knowledge items (e.g. hundreds of emails, faxes, voicemails, etc. on a daily basis). KM facilitates a collaborative working culture through the provision of collaborating tools, environments, encouragement and values (Plessis, 2006). KM increases collaboration through the provision of appropriate technology, as well as forums and community of practice. It also provides the platform to convert tacit knowledge to explicit knowledge, where from values then can be extracted and avoid knowledge attrition (Plessis, 2006). Ellis (2005) mentions that, organizational development goals should now begin to focus far more around the challenge of stitching together the diverse and incommunicative pockets of knowledge to promote ‘intelligent working’. Intelligent working is the direct opposite of what has been called ‘silo working’ where work functions were often heavily compartmentalized, leading to frequent breakdowns in communication, duplication of effort and confusion. Silo working is generally a clear example of the poor use of organizational knowledge assets (Ellis, 2005). Dalkir (2005) listed the following benefits that KM can provide to individual employees, to communities of practice, and to the organisation itself. This three tiered view of KM helps emphasize why KM is important today. For the individuals, KM: o Helps people do their jobs and save time through better decision making and problem solving. o Builds a sense of community bonds within the organization. o Helps people to keep up to date. o Provides challenges and opportunities to contribute. For the community of practice, KM: o o o IV.KNOWLEDGE MANAGEMENT PROCESS AND THE ROLE OF IT According to White (2002), the key criticism of much of the KM literature is the over-emphasis on technology-based approaches to harnessing and transferring the knowledge resource of organisations. He mentions of literature surveys that have highlighted the overwhelming emphasis on IT and major gaps in the treatment of people (White, 2002). Gottschalk (2005) had quoted Alavi and Leidner (2001) who developed a systematic framework used to analyze and discuss the potential role of information technology in KM. According to this framework, organisations consist of four sets of socially enacted, interconnected and intertwined knowledge processes: 1) Knowledge creation (also referred to as construction). 2) Knowledge storage and retrieval. 3) Knowledge transfer, and 4) Knowledge application Similar to Alavi’s and Leidner’s above, AlHawamdeh’s (2003) model has an extra dimension, making it a total of five dimensions of KM activities, as depicted in the following diagram: 531 2012 International Conference on Innovation, Management and Technology Research (ICIMTR2012), Malacca, Malaysia : 21-22 May, 2012 w in the way they employees who can no longer work are most comfortable (Ellis, 2005 5). Knowledge and information at first glance seem like the same thing and can be used interchangeably, at least to the lay person. Howeveer, Frappaolo (2006) reminds us to draw a clear line off distinction between and knowledge information management management. Nevertheless, it is i still logical and natural to examine the application of information technology (IT) to manage knowledge k like AlHawamdeh (2003) did, desp pite many experts differing in opinions regarding the value of IT to enable KM (Botha, A., Kouriie, D., & Snyman, R.,2008). Botha et.al. (2008) in giving the technology perspective on KM, quoted Daavenport and Prusak (1998) that KM is much morre that technology. “Knowledge derives from minds at a work… Successful knowledge transfer involves neiither computers nor documents but rather interaction ns between people.” (Davenport and Prusak, 1998). Nevertheless, the availability of certain technolog gies such as Lotus Notes, Lotus Domino, the Intern net, etc. has been a major catalyst for the awarenesss and acceptance of the KM paradigm (Botha et. al., 2008). In this spirit, this paper will examine the ap pplication of IT in capturing the minds at work k, assisting people interactions and ultimately make KM activities easier and more efficient. According to Botha et. al. (2008), Beckman (1999) has contributed a lot of work in support of the value of IT in KM. Al-Hawamdeh (2003) also mentions that tecchnology plays an important role in KM, although h he does agree that KM is not about technology, per se. The advances in ICT, the internet revolution and th he move towards the information and knowledge socieety have highlighted the importance of knowledge an nd spurred the KM discipline. IT has improved th he ability to store, access, manipulate, and use information and otha et. al. (2008) knowledge in many ways. Bo identified six areas of IT application for KM, as follow: 1) Document management 2) Information managemen nt 3) Searching and indexing 4) Communication and colllaboration 5) Expert systems 6) Enterprise software. They then proposed four components c of IT infrastructure required for KM, ass: 1) A knowledge base or repository – most likely a database that houses unstructured information. 2) A directory of know wledge source and locality of expertise 3) A directory of learning resources r Al-Hawamdeh (2003) further m mentions that many of the IT tools can be used to suupport different KM activities. For example, in know wledge creation activity (i.e. the discovery and generation of new knowledge through experimentation,, observation, research, etc), some of the technologgy tools might include mind-mapping tools, simulatiions, data and text mining, and visualisation tools. In knowledge capture activity (ii.e. identifying knowledge sources and try to capture tthat knowledge or assist in transferring it from oone person to another), technology tools that migght apply are document imaging, optical characteer recognition (OCR), data warehousing, e-learning tools, e-mails, etc. In knowledge retention activity, either in the form of explicit or tacit knowledge, thhe two type of knowledge mentioned by Firestone & McElroy (2003), technology such as databasee management systems, intranets, data warehousingg and so on facilitates the storage and orgganization of information. In knowledge sharing and transferr activity, there are many IT tools such as e-mail, onlline discussion forums, video conferencing and so on that can facilitate the distribution of informatiion and in the process enhance knowledge transfer. In effectively using or leveraging on knowledge, technology such as visualisation tool, data analyses and reporting tools, decision support systems, data and text mining and so on can asssist in making knowledge ready for the decision-m making process and problem solving (Al-Hawamdeh, 2003). Organisations need to recognise thhe significance of maintaining employee connectivity to knowledge networks, particularly for those emplooyees who are expert at using them outside of workk (Ellis, 2005). Once this is done, organisations neeed to plan for greater connectivity, identify and installl the resources and processes to enable it to happen. The consequences of not successfully adddressing this issue would include less effective empployees, higher costs as employees use less effective m mechanisms for gaining and sharing information, annd disaffected 532 2012 International Conference on Innovation, Management and Technology Research (ICIMTR2012), Malacca, Malaysia : 21-22 May, 2012 5) Multiple channels for knowledge transfer: The knowledge manager must realise that knowledge is transferred through multiple channels – on-line discussion, face-to-face contact, reports and journals, etc. Again this justifies the application of IT as enablers for KM. Botha et. al. (2008) quotes Beckman (1999) for four several challenges in implementing KM in a typical organisation. We can relate the issues to most of the CSFs mentioned above: 1) Knowledge is often hoarded, rather than shared. 2) Valuable knowledge developed by others is often ignored, rather than applied in daily work situations. 3) Knowledge and expertise are often not valued by the corporate culture, by failing to measure intellectual assets. 4) Employees who share knowledge and expertise are considered naïve, rather than rewarded for their valuable organisational behaviour. We can relate the first point above with what AlHawamdeh (2003) mentions, that knowledge sharing first and foremost is social activities and they take place among people. Due to the complexity associated with knowledge sharing, a culture of learning and knowledge sharing needs to be instilled and cultivated within the organisation and change the mindset of people. He further listed in his book the six key factors that could influence people’s willingness to share knowledge. For the third point, Al-Hawamdeh (2003) mentions that, today the market value of an organisation can be considerably higher than the book value. This is particularly true in the case of knowledge-intensive companies such as IT, elearning, consultancy and so on. The increased emphasis on intangibles created a growing interest in how organisations measure and manage their intangible assets (Al-Hawamdeh, 2003). For this, he listed the four categories of measurements such as (i) Direct intellectual capital methods (DIC), (ii) Market Capitalization Method (CMC), (iii) Return on assets methods (ROA), and (iv) Scorecard Methods (SC). Details about these methods are obviously beyond the scope of this writing. Readers can refer to his book for further queries. 4) Groupware for collaboration between the knowledge workers. According to Botha et. al. (2008), these components are then must be supported by various IT elements such as hardware, software, user support, communication and networking, etc. All these technologies can be applied for KM with strong agreement among experts about the value of internetbased networking and groupware technologies for knowledge sharing (Botha et. al., 2008). Dalkir (2005) concluded that content creation and management IT tools are used to structure and organize knowledge content for easy retrieval and maintenance. Groupware and other collaboration tools such Wikis, networking technologies, etc. are essential enablers of knowledge flow and knowledge sharing activities. Data mining can be used to discover or identify new emerging knowledge and insights. Intelligent filtering tools are a KM technology that can address the issue of information overload. Another is the knowledge repository tools, the most frequently used and most visible aspect of KM (Dalkir, 2005). V.ISSUES AND CHALLENGES IN KM According to Buono and Poulfelt (2005), many companies that invested heavily in IT-based KM systems, however, lacked a sufficient understanding of their internal abilities and the necessary requirements to administer and support these systems. In fact, organisations frequently overestimate the abilities, availabilities, and commitment of their internal staff to effectively implement and support KM initiatives. Thus, while the processes underlying knowledge transfer can be facilitated by computer-mediated communication, success depends much more fully on the human element (Buono and Poulfelt, 2005). Botha et. al. (2008) listed out various critical success factors (CSFs) for KM. They quoted Davenport and Prusak (1998) in listing nine CSFs. Here, we quote only relevant five of them, as follow: 1) A knowledge-oriented culture: Building a positive knowledge-friendly culture is the most important factor. 2) Technical and organisational infrastructure: This is the focus of this writing, discussing about the employment of a set of technologies that are compatible with the KM project. 3) Senior management support. 4) A link to economic and industrial value: KM can be expensive and therefore must be justified through economic benefit or organisational success. VI.CONCLUSION It has been illustrated in this paper that knowledge is quite different from information, and the ability to share and utilize knowledge requires a rich array of concepts, tools, and processes. 533 2012 International Conference on Innovation, Management and Technology Research (ICIMTR2012), Malacca, Malaysia : 21-22 May, 2012 [4] Buono, A. F. & Poulfelt, F., (ed.) (2005), Challenges and Issues in Knowledge Management, USA: AIP. [5] Dalkir, K. (2005), Knowledge Management in Theory and Practice, UK: Elsevier [6] Davenport, T. H. and Prusak, L. (1998) Working Knowledge: How Organisations Manage What They Know, Boston, MA: Harvard Business School Press. [7] Ellis, S. (2005), Knowledge Based Working: Intelligent Operating for the Knowledge Age, Oxford: Chandos [8] Firestone, J. M. & McElroy, M. W. (2003), Key Issues in the New Knowledge Management, USA: B-H [9] Frappaolo, C. (2006), Knowledge Management, England: Capstone [10] Gottschalk, P. (2005), Strategic Knowledge Management Technology, USA: Idea Group [11] Lehaney, B., Clarke, S., Coakes, E., & Jack, G. (2004), Beyond Knowledge Management, USA: Idea Group [12] Liker, J. K., (2004), The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer, New York: McGrawHills. [13] Plessis, M. d. (2006), The Impact of Organizational Culture on Knowledge Management, Oxford: Chandos [14] Toffler, A. (1981), The Third Wave, London: Pan Books. [15] White, D., (2002), Knowledge Mapping & Management, Hershey, PA: IRM Press. Knowledge flow through communities much more than it resides in databases and information system. Knowledge has become key strategic resource, and there is a need for broader and better understanding of the various KM processes. The knowledge based environment is formed and nurtured by people in all parts of the organisation: managers, stakeholders, workers, etc. There are certain challenges, centered around the people and the culture of the organisation. The application of KM using IT to achieve competitive advantage is an important yet challenging endeavour. Information systems and information technology can and should be used to support KM. Technology is used to facilitate primarily communication, collaboration, and content management for better knowledge capture, sharing, dissemination, and its application. The role and importance of IT is growing, but many mistakes and wrong investment are representing setbacks. KM technologies help support emergent phenomena involved in the creation, sharing, and application of valuable knowledge assets. Since KM is much more than IT, that it is more on the organisational social activities, the incorporation of Organisational Behaviour knowledge is undoubtedly required to build-up the organisation’s learning culture and to make a KM attempt a success. As good as IT technology can be, it is essential that KM and its relationship to decision making and organisational or business success is understood within a human and social framework. Implemented correctly, KM will contribute to the success of the organisations, like what had been proved by Nokia, GE, Toyota and Xerox, just to name a few. The readers are recommended to carry out this separate case study readings such as in Dalkir (2005) textbook. As a closing remark, let us quote Toyota’s view on IT as follows, “IT is critical to Toyota, but Toyota looks at technology as a tool that, like any other tool, exists to support the people and the process, not to replace them.” (Liker, 2004). VII.REFERENCES Abell, A. & Oxbrow, N., (2001), Competing With Knowledge, London: Library Association Publishing. [2] Al-Hawamdeh, S. (2003), Knowledge Management: Cultivating Knowledge Professionals, Oxford: Chandos. [3] Botha, A., Kourie, D., & Snyman, R. (2008), Coping with Continuous Change in the Business Environment: Knowledge Management and knowledge management technology, Oxford: Chandos [1] 534