Knowledge Management Models and the Role of Organizational Management

MGT403-Assignment 3
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Question 1
Knowledge management is crucial in organizations today as it builds a wealth of legacy information. By capturing and storing knowledge and experiences, an organization creates a centralized location that is available and often updated as employees experience new knowledge and experiences (Hebibi, Raimi & Milićićević, 2019, pp. 118-120). As a result, a company eliminates the information gap on all that it has done, its values, missions, philosophies, and challenges they have overcome, which would create a knowledge gap.
Knowledge management advances decision-making processes. According to business experts, data is the new ‘oil’ that drives organizations’ performance and success. The quality and speed by which making decisions is effectively done are by having access to the knowledge held by the entire organization (Hebibi et al., 2019, pp. 118-120). Thus, through knowledge management, one can access opinions, expert advice, and experiences of different individuals within the company about a particular issue in question, which helps make intelligent, informed, and aligned decisions.
Successful innovation increases with knowledge management. When a company prioritizes knowledge management, it significantly increases its chances of realizing successful innovations. Knowledge management fosters acquiring current knowledge from the market, competitors, industry leaders, and experienced employees (Hebibi et al., 2019, pp. 118-120). With such insights readily available, a company embraces new market trends and makes informed decisions that align with current needs, thus, staying ahead of others and improving their performance.
Question 2
The Choo and Weick’s Sense-Making KM Model of 1998 states that organizations in the know utilize information tactically through sense-making, knowledge creation, and decision making. These interconnected practices play a pivotal role in advancing an organization’s vision, creating knowledge, and commitment to creating knowledge up to the highest level. According to Choo and Weick (2017, pp. 3-4), sense-making is the lasting guarantee that organizations will acclimate and continually prosper in a complex and dynamic environment by seeking and interpreting appropriate information that leads to their understanding of clients’, suppliers’ and competitors’ changes, trends, and situations. Knowledge creation is a process of creating or obtaining, managing, and processing information so a company can acquire new knowledge through organizational learning, thus, cultivating new abilities and capacities, products, and services while also improving the existing ones. In decision making, companies must settle on options they consider best and possible and implement them by observing the company’s strategy (Mohajan, 2017, pp. 3-4).
           Choo and Weick’s knowledge model differs in that Boisot’s model is founded on the idea of “Information good,” which varies from a physical asset. According to him, information and data are different in that information is extracted f...