Most organizations
these days recognize the value of knowledge, whether housed in the organizations
formal files, documents or systems, or in the heads of workers. At the same time, most organizations struggle with
creating the culture, processes and mechanisms that will enable workers to share, harvest
and build on this knowledge for improvement or innovation.
Meeting this challenge has reached such proportion for organizations, and indeed
entire economies, that academic specialists and practicing managers alike are focusing
their energies on tackling knowledge management (KM) as one of the most crucial challenges
facing our economy in the new millennium.

The process of
sharing and building on knowledge within or across organizational boundaries for
improvement or innovation is commonly referred to as knowledge management. The concept of knowledge management therefore
incorporates: people and the organization of knowledge; the governance processes of the
organization; as well as the knowledge management tools and technology.

There is a great
deal of evidence to indicate that organizations that manage their knowledge well are more
efficient and are better able to accomplish their vision and mission. Knowledge often gets trapped in organizational
divisions: the vertical divisions of traditional organizational hierarchies; the
geographic divisions of dispersed organizational units; or, the boundaries that often
exist across various professional disciplines or occupations that make up organizations. Workers who often carry the means of production
around in their heads can feel stifled by the many rules, processes, and procedures that
support these divisions.
Thus,
knowledge management includes not only a concern for new organizational forms, structures
or systems that allow for greater sharing of knowledge, but also new practices and
processes that provide individuals with greater freedom to create and express new ideas. For these reasons, organizations are seeking to
liberate and build on the knowledge that workers hold to create ongoing improvements and
innovation.

If knowledge is the
chief asset in the knowledge economy and management theorists, economists, and business
leaders are unanimous on this point then an approach to managing the knowledge within your
organization is an absolute necessity. But KM
is a complex field that includes deep questions of organizational culture, behaviour,
organizational design, and enabling technologies. It
is easy to get lost in all the ideas and technologies.
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