ORGANIZATIONAL KNOWLEDGE SYSTEMS DRIVE ENTITY PERFORMANCE: AN EXECUTIVE SUMMARY CHINA
Organizational Knowledge Systems (OKS) are constant activities that happen through Knowledge Management (KM) and the learning processes that employees activate them (Alshehhi & Jasimuddin, 2016). Systems thinking, personal mastery, and team learning are OL capability for building Organizational Learning (OL); knowledge creation, knowledge retention, and knowledge sharing create KM; whereas career planning, attraction and appraisal create Talent Management (TM) practices. The productive system learning mechanisms are made from these mentioned practices above. KM works together in a system with OL capability and TM practices to improve Organizational Performance (OP) within entities. The OP contains financial performance, efficiency and innovation.
DEVELOPING AN OKS MODEL
OL and TM combine with KM to form an OKS model. KM and OP variables have a relationship, whereas TM is the moderator between KM and OP. OL has been built by Systems thinking, personal mastery, and team learning. KM has been created by Knowledge creation, knowledge retention, and knowledge sharing; TM has been created by career planning, attraction, and appraisal. These mentioned factors build productive systems learning mechanisms. To enhance OP within entities, KM works with OL capability and TM practices in one system. OP includes financial performance, efficiency, and innovation.
An OKS is a constant procedure of managing organizational knowledge and processing OL so that employees can activate them within entities. The importance of OKS occurs in enhancing an organization’s outcomes. OL and TM work together with KM to develop an OKS model (Alshehhi & Jasimuddin, 2016).
The OKS framework assesses the relationship between KM and OP variables. Besides, there is a relationship between KM and OP. When TM is associated with an organization’s strategy, KM influences OP, which permits the organization to improve the entity. KM the relationship’s direction between OL capability variables and the OP variables, which makes collaboration between them. The KM variables influence the strength of the relationship between OL and OP variables. OL has a significant effect on OP When OL is aligned with an organization’s strategy. (Alshehhi & Jasimuddin, 2016).
ORGANIZATIONAL KNOWLEDGE SYSTEM MECHANISMS
ORGANIZATIONAL KNOWLEDGE SYSTEM MECHANISMS
Using KM, TM practices, and OL capability, the mechanisms occur to assist participants and entities in accomplishing strong financial performance, efficiency, and innovation.
- Knowledge creation: Knowledge creation consists of problem-solving and continuous improvement of knowledge and skills acquisition within organizations. Problem-solving carries all employees to find any thinkable solution.
- Knowledge retention: Knowledge retention includes building organizational memory through arranging retained documentation, and the documented knowledge. It extends the efficiency of storage of recorded knowledge and retaining knowledge that is available in people's brains' minds by exchanging information and conversing learning materials with each other, keeps organizational memory.
- Knowledge sharing: Knowledge sharing occurs within entities through congruence, received task interdependence, and participative decision-making.
- Personal mastery: Personal mastery consists of learning to maintain their idea and a clear view of the real truth. However, the discussion between people is practicing it. Giasemi has defined personal mastery as a “personal vision and values, a strong sense of reality, understanding the value of competency and ability to move from competence to capability” (Giasemi, 2004).
- Systems thinking: Systems thinking makes sure that an organization has connectivity, dissipation, and emergence. Moreover, systems thinking encourages entities’ view. Management believes that there are different needs and abilities of employees through lesson plan development. So, if knowledge practices become different, management will deliberate the effect on their results. To allocate an employees’ discipline problem, management will consider the impact on other faculties.
- Team learning: As an internal stimulus for emergent learning behavior, team learning occurs through employees’ network participation. They expend time in building trust and asking for other opinions, as well as using team activities in faculty professional development activities.
Talent management practices
1) Career planning: Career Planning has two factors: organizational plans and employee career paths that need real works from entity and individual to develop the skills and capabilities towards a career path. Each employee’s career plan requires a target development plan.
2) Attraction: Attracting employees is a case of giving potential employees the best chance in terms of salary and other financial benefits. Different factors will always define different things to different people. While some will be interested in the entity’s location, others might give a more significant focus on flexible working patterns; Furthermore, some talents are attracted by job security.
3) Appraisal: An appraisal is the evaluation process that managers use to evaluate employees' work and objectives based on standards and comparison results documents. The results give the employees feedback and show improvement areas, with clarifications (Web Finance Inc., Performance Appraisal, 2016). Performance appraisal is a performance evaluation system to allow employees to see their abilities to develop them (MSG, 2016).
OP relates to effective outcomes achieved within organizations, performed by employees.
Financial performance: Financial performance can measure by using value-added per employee, cost per business, and turnover (Ajay, 2015).
Innovation: Innovation is creating new ideas within an entity through teamwork, creative operating methods, and encouragement of creativity. Also, the entity frames accredited innovations (Lin, 2007).
Efficiency: Employees can offer knowledge to others invaluable entity, and this depends on the needed expertise to provide valuable knowledge for the entity and deliver more valuable knowledge than before (Lin, 2007).
OKS must take into organizational infrastructure, the organizational culture, and employees’ knowledge to be done by OKS. By focusing on KM, OL capability, and TM practices, an OKS would improve itself in a disciplined setting. OKS have a bearing on KM, OL capability, and TM practices. The core element of OKS is KM. Moreover, OL and TM combine with KM to shape an OKS model. There is a relationship between KM and OP variables. TM is the moderator between KM and OP. OL has been built by Systems thinking, personal mastery, and team learning. KM has been built Knowledge creation, knowledge retention, and knowledge sharing; TM has been made by career planning, attraction, and appraisal. All of these create productive systems learning mechanisms. KM works together in a system with OL capability and TM practices to improve OP within entities. OP consists of financial performance, efficiency, and innovation.
OL capability influences the direction and/or strength of the relationship between KM variables and OP, making the interaction between them. The OL variables affect the relationship’s strength between KM and OP variables. OL has a significant effect on OP, which able the entity to expect events and respond to develop the entity. The TM studies reviewed did not directly link with KM.
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Giasemi, V. (2004). KLeOS: Knowledge and learning organization system in support of lifelong learning. A thesis submitted to the University of Birmingham for the degree of Doctor of Philosophy, Birmingham.
Lin, H.F. (2007). Knowledge sharing and firm innovation capability: An empirical study. International Journal of Manpower 28(3/4): 315-332.
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