BS4S02 Management Theories and Practice

Assignment Two

With reference to the article, Crowdsourcing the Future: The Foresight Process at Finpro,
and broader literature, critically evaluate the extent to which digital tools and the capacity for
mass participation have addressed knowledge management and learning challenges.

Submitted by
Introduction
Knowledge management may be defined as the systematic management of an organizations
knowledge assets for the purposes of creating value and meeting tactical and strategic
requirements; knowledge management consists of the initiatives, processes, strategies, and
systems that sustain and enhance the storage, assessment, sharing, refinement and creation of
knowledge. (Alan Frost, 2012). Further, it is the coordination and exploitation of organizational
knowledge resources, in order to create benefit and competitive advantage (Drucker, 1999). It is
important to note that apart from the acquisition of historical knowledge, knowledge
management also includes the creation of new knowledge.

With the recognition, acceptance, and implementation of knowledge management as an

organizational asset, firms are better able to protect and use their knowledge, to learn from
mistakes and successes, and to improve, develop and innovate. As such, many digital tools have
been developed to aid in knowledge management. These tools are collectively known as
knowledge management systems. These various digital tools or knowledge management systems
are extremely helpful, if not indispensable, in supporting knowledge management within
organizations. This paper seeks to critically evaluate to what extent these digital tools address
organizations challenges, requirements or need for adequate knowledge management.

To best achieve this objective, this paper is structured as follows: first, an understanding is sought
of the definition of knowledge, both from an individual and an organizational perspective. Second,
an appreciation is then sought of the theory and principles of knowledge management from the
perspective of the organization. Following this understanding or grounding, an analysis is then
done on the various digital tools available to organizations, assessing the extent to which these
tools address these requirements of knowledge management.

Individual Learning
Knowledge may be defined as knowledge or skill acquired by instruction or study. (Merriam-
Webster.com). Learning, therefore, has two meanings: the acquisition of skill or know-how, and
the acquisition of knowledge or know why. The learning of individuals and organizations is
inextricably linked: while all organizations have individuals who learn, an organization can also
learn. This is somewhat of a paradox as learning at the organizational level does not depend on
any one individual but is dependent on the learning of individuals. Daniel H. Kim (1993). All
organizations learn, and all organizations at some point begin learning through their individual
employees. In the early stages of an organizations existence, organizational learning is often
synonymous with individual learning because the organization consists of a small group of people
and has minimal structure. As an organization grows, however, a distinction between individual
and organizational learning emerges, and a system for capturing the learning of its individual
members evolves. Daniel H. Kim (1993).

According to Russel Ackoff (1989), individual learning is best explained as a pyramid. Known as
the DIKW hierarchy, the lowest level is data, followed by information and knowledge with
wisdom at the apex. Data, information, and knowledge include what the individual already know
while wisdom examines the basic principles of knowledge to produce or generate what is not
known. Ackoff suggests that all movement from one stage to another (knowledge creation) is
through understanding and this knowledge is cognitive and analytical by nature. Nonaka states
that all knowledge is either implicit or explicit (tacit): explicit knowledge is able to be documented
while implicit knowledge is of such that it is difficult to codify. Nonaka (1994). Another,
contrasting viewpoint, is that of Polyani who states that all knowledge is either tacit or rooted in
tacit knowledge! Polanyi (1966). Therefore, according to Polyani, all knowledge may be or is
capable of being documented. According to Bennet D. and Bennet A (2008), more recent research
in the field of knowledge management has proceeded further in identifying that there are variations
of the diverse types of tacit knowledge and even between the differences between implicit and
explicit knowledge.

Organizational Learning
The organizational learning process involves capturing, exchanging and creating knowledge in
a continuous interaction of both tacit and explicit knowledge (Boutha A. 2008).

Elements of Organizational Learning

In order for organizations to embrace learning and knowledge, there are four critical or main
elements these organizations must address or embrace.
Leaders: The leaders of the organization must be supportive and committed to the organization
learning goals. They must establish clear visions and goals and be champions of organization
learning and should act and be perceived as role models by doing and not merely by speech.

Culture: The organization should embrace a culture of learning with the objective of continuous
improvement. Incentives, measurement, and feedback should be the main ingredients of every
organizations learning culture.

Structure: Organizational structure should be aligned so as to clearly identify persons responsible

for the assimilation, storage, application, and dissemination of knowledge. The organization
structure should cater for the timely distribution of information to persons who need it.

Knowledge: Whatever the organization learns and embraces must be reflected in everyday
practice and workflows. Processes should be observed to capture and apply learning. Technology
platforms should be embraced.

Learning at the organizational level is more difficult and dynamic than that of individual learning.
This is because the process of learning is fundamentally different in organizations as obviously,
these organizations are nonhuman entities. Organizations learn from individuals: Individuals are
the primary learning entity in an organization (Dodgson, 1993). Organizations also achieve
wisdom as individuals do by practicing and learning using their experiences that is, learning by
conceiving the acquired knowledge, acting and then reflecting upon the consequent actions.

Types of Organizational Learning

The learning of individuals within organizations and the learning of those organizations are
inextricably linked both directly and indirectly. According to Argrys and Schn (1978), there are
three levels of organizational learning which are closely linked to individual learning. These are
termed as single-loop, double-loop and Deutero-learning. Argrys C., and Schn D. (1996). Single
Loop Learning includes the modification of behaviour to prevent earlier, experienced problems.
Learning takes place at the individual level. Double loop learning goes further to modify behaviour
and also analyzes the processes. Here the firms existing policies, goals, and/or assumptions are
called into question and challenged. Ellerton, S.(2005). It is from the double loop that
organizational learning starts.
Deutero or triple loop learning occurs when the organization becomes aware that learning must
occur and works consciously to create the appropriate environment and processes to facilitate
learning. Here, the organization learns how to learn. It is through triple-loop learning that the
individual or organization can determine how they need to be different to create transformational
change. (Kahane A., 2004).

The Process of Organizational Learning

Huber (1991) states that there are four processes which contribute to organizational learning:
acquisition, distribution, interpretation of knowledge, and organizational memory.

Acquisition of Knowledge: Learning commences with organizations obtaining knowledge. This

is done by observation and monitoring, storing, managing and retrieving information, educating
staff, training staff. The acquisition of knowledge includes not only new but existing information.

Distribution of knowledge: This refers to the process whereby the organization disseminates
information. The more information is shared, the more the organization learns

Information Interpretation: Normally, information is interpreted in the context of the

organization. The organizations learning grows when the information is interpreted in more and
more meaningful ways which benefit the organization.

Organizational Memory: Also called "corporate knowledge" or "corporate genetics" by Prahalad

and Hamel (1994), information has to be stored and easily retrievable.

Challenges to Organizational Learning

Organizations face many challenges when attempting to reach double-loop and deuteron-learning.
These challenges may be broadly defined in the categories of objectives, incentives, the learning
process, the amount of information and staff turnover.

Objectives: The development of clear goals and measurement of achievement of learning goals
remain a challenge to organizations. This includes the measurement of learning progress, the
allocation of appropriate resources and influencing the behaviour of individuals within the
organization.

Incentives: This involves the motivation of individuals within the organization. Without an
adequate system of incentives, learning goals will not be translated into priorities.

Learning Process: After goals and objectives are set, and adequate incentive schemes are
implemented, the problem of how to capture, assimilate, translate, retain and disseminate
information remains.

Amount of information: Even after the learning process is determined, the decision of what
information, why that information, and the determination of how much of that information is to be
retained and disseminated, remains a challenge to organization learning.

Turnover: Organizations are faced with the problem that when persons leave, their
institutionalized knowledge leaves with them. The learning process has to recommence, from
scratch, with other persons.

Digital tools and the capacity for mass participation as a solution to Organizational
Learning challenges

While several researchers in the field of organizational knowledge merely acknowledge the
influence or importance of digital tools and the capacity for mass participation (Information
Technology), there are others who recognize the importance and impact of digital tools on
organization knowledge. Dodgson (1993) suggests that digital tools or information technology
serve as a ground for future research whereas Grantham and Nichols state that technology can be
used to clarify assumptions, speed up communications, elicit tacit knowledge, and construct
histories of insights and catalog them (Grantham C.E & Nichols L.D, 1993).

The inclusion of information systems has a direct and an indirect effect on organizational learning.
According to Zuboff (1998), information systems not only automates but informates the
organization. The inclusion of information systems in the acquisition of organizational knowledge
results in an organization that enjoys greater dissemination of information. Information is readily
available resulting in the organization becoming more informed, flexible and organic Zuboff
(1998).

The application of Digital Tools (IT) to Organizational Knowledge

Digital Tools may be used to serve all four processes of organizational learning: acquisition,
distribution, interpretation, and memory. A high-level view of the application of digital tools
within organization learning is followed by a discussion of the categories (along with specific
examples) of these tools:

Digital Tools for acquisition of information:

According to Mason, (1993), information systems applied to the acquisition of information for
organizational knowledge can take one of two forms: assimilating knowledge external to the
organization, (competitive intelligence systems), or the creation of knowledge by reinterpreting
and reformulating existing knowledge (executive information systems or decision-support
systems). Other IT tools used in the acquisition of information include filters, both intelligent
and/or adaptive, and environment scanning and notification systems.

Digital tools for distribution of information and knowledge: Traditional forms of information
distribution include the fax machine, telephone, personal meetings, and letters or memorandums;
Recently, more electronic means of communication have surfaced. These more modern means of
information sharing and communication include email, electronic bulletin boards, electronic
conferencing and meeting software which facilitate communication and collaboration. Hilz and
Turoff (1993), state that these tools increase participation and facilitate better decision-making.
These new collaborative or groupware systems facilitate the creation and sharing of knowledge.
Resulting in organizational social networks, these systems also facilitate feedback among users.

Hypermedia systems allow people to share text, audio video and graphics and are now used widely
on the internet for the dissemination of information. Enterprise-wide electronic distribution lists
via email are used for company-wide broadcasting.

Digital tools for the interpretation of information

The ability to recall, review and analyze information and decisions enables organizations to
achieve double loop learning. Information technology tools such as decision support systems
enable organizations to capture and store not only information but the rationale behind decisions
and the results of those decisions. Organizational learning occur when organizations embrace
sense-making and information interpretation activities Huber, (1991).

According to Daft & Lengel, (1986), the main issues facing organizations are uncertainty and
equivocality when interacting with the environment. These issues are addressed by the
organization obtaining and processing more relevant information while information sharing is
enhanced by constant communication. The establishment of real-life simulation using information
technology can enable organizations to make decisions and carry out testing without commitment
in the real world. In addition, in those organizations where employees are fearful of

In a number of organizations, double-loop learning does not take place because the atmosphere is
not conducive enough for members to question basic values and assumptions due to the fear of
being disciplined, anonymous conferencing systems may be used.

Digital tools for the storage and retrieval of information (Organizational Memory)

Most companies have methods of backing up and retrieving hard data such as financial
information and database backups. However, the capturing, storage and retrieval of soft
information may prove to be a challenge. Organizational memory can be made of both hard data
such as numbers, facts, figures, and rules as well as soft information such as tacit knowledge,
expertise, experiences, anecdotes, critical incidents, stories, artifacts, and details about strategic
decisions (Morrison, 1993). Information systems incorporate hypermedia, full-text retrieval
systems, and document management systems. These systems may be configured per user so as to
suit their personal pace or style. These systems may be used not only for storage of procedural
manuals, training materials etc. but more informal knowledge or non-canonical practice. Brown
and Druguid (1991). The use of information technology for the storage and retrieval of information
is more accurate and complete than merely using the human element in organizational memory
Categories of Digital Tools
Digital Tools have proven to be invaluable in organizational knowledge management procedures
and initiatives and at facilitating interaction, and for the capturing, storing and retrieval of
information. The following categories of digital tools are examined in the context of how they
assist in organizational knowledge and memory. These categories are Groupware systems, the
intranet and extranet, data warehousing and data mining, decision support systems, content
management systems and document management systems

Groupware Systems
Groupware, also known as collaborative software, refers to software programs that enable users to
work together. Groupware that allows users to communicate in real time is called synchronous
groupware. This is opposed to asynchronous groupware that users use to communicate offline.
Groupware offer (and are often categorized as) three main functions. These are communication
tools, conferencing tools, and collaborative management tools. While there are paid, professional
versions of groupware available such as Lotus Notes or Microsoft Exchange, there are also free
online open-source groupware programs like SOGO or Bitrix24.

The main advantage of groupware systems to the organization is that they assist and facilitate tacit
knowledge transfer, the knowledge creation process, and explicit knowledge sharing.

Intranet and Extranet

The intranet is a smaller version of the internet and operates solely within the ambits of the
organization. A typical intranet page contains pages for news, key tools and information,
communication and collaboration. The advantage of the intranet is it enhances communication
and collaboration and consequently influences organizational culture and stores knowledge.
An extranet is an extension of the intranet and includes stakeholders who are external to the
organizations such as suppliers and partners. The extranet also assists in collaboration and
information sharing.

The main advantage of intranets and extranets to the organization is that they influence
organizational culture and store embedded knowledge.
Data Warehousing and Mining
Data warehousing refers to the storage of information such as key performance indicators, sales
history, information on competitors etc. Data mining is the extracting of data in a meaningful way
and the timely distribution of that information. The main tools used in data warehousing are Online
Analytical Processing System (OLAP), data mining and data visualization.

The main advantage of data warehousing and mining to the organization is that it reduces the
length of the decision-making process.

Decision Support Systems

The main objective of decision support systems is to enable organization leaders to make informed
decisions. These systems work in conjunction with data warehousing OLAP and data mining.
They are not artificial intelligence systems and as such are solely dependent on people. The
success criteria of decision support systems are that it should be compatible with existing systems,
capable of being understood, and be effective.

The main advantage of decision-making systems to the organization is that it enhances knowledge
through discovery.

Content Management Systems

Content management systems are used to create, manage, and distribute information on intranets,
extranets, and the Internet. The advantage of restructuring information is it improves the
usability of information and affords recognition of information gaps.

The main advantage of content management systems to the organization is that it improves explicit
knowledge and assists in tacit knowledge transfer.

Document Management Systems

These are systems that assist in the storage, indexing, and retrieval of documents. Other features
of document information systems include security levels, support for multiple platforms, support
for multiple versions of a document, ability to convert documents to other formats etc.

The main advantage of document management systems to the organization is that it aids in explicit
knowledge.
Conclusion

Digital tools and the capacity for mass participation address knowledge management and
learning challenges both directly and indirectly by supporting organizational learning
requirements of acquiring, storing, interpreting and disseminating organizational knowledge.
Digital tools serve to preserve this knowledge in the event of loss of corporate knowledge due to
staff attrition.

In conclusion, learning is necessary for organizations, who want to remain competitive, and
digital tools and the capacity for mass participation are necessary for the creation and
maintenance of organization learning and knowledge.
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