Académique Documents
Professionnel Documents
Culture Documents
OUTLINE
• Management Thinking
BEYOND DOWNSIZING
•Gains from cost cutting and downsizing largely
exhausted
•Need to access new sources of profitability
IMPLICATIONS :
•Emphasis on more complex sources of competitive
advantage requires development of architectural
or meta capabilities
•Emphasis on learning
•Need for new organizational forms e.g. interest
in self-organization
Knowledge Management and the
Knowledge-Based View of the Firm
KNOWLEDGE UTILIZATION
• Need to identify knowledge with the firm ---- role of
knowledge audits, competency modeling, knowledge
libraries, identification of best practices
• Need to transfer knowledge
– Critical distinction between tacit and explicit knowledge
– Need to transform tacit into explicit knowledge
– Design of organization structure to optimize knowledge
use location of knowledge and decision
making; knowledge integration through teams; modular
structures
– KNOWLEDGE CREATION
• Traditional view knowledge created through research
• Nonaka Knowledge creation through knowledge
conversion (explicit tacit; individual firm
New Organizational Forms
Process-based organizations Organizing around business
processes
Recognizing corporate
processes
- entrepreneurial process
- competence building process
- renewal process
THE REQUIRED
THE LEADERSHIP NEEDS COMPETENCIES OF
OF ORGANIZATIONS BUSINESS LEADERS
• Interpretation of data.
– Higher-level learning
• Developing totally new beliefs, understandings, and
organizational processes.
Factors that Contribute to Lack of
Responsiveness
• Without higher-level learning, firms can fall
into “competency traps.”
– Unfortunately, most firms allocate more
resources to lower-level learning.
Factors that Contribute to Lack of
Responsiveness
• Two factors influence the extent of higher-
level learning:
– Higher-level learning is most likely to result
from problemistic search.
– Second factor which is important to success of
higher-level learning is absorptive capacity.
Factors that Contribute to Lack of
Responsiveness
• Organizations can overcome the dangers of
like-minded thinking in at least two ways.
– Give greater attention to “contrarian voices.”
– Encourage greater turnover among top
management ranks.
Factors that Contribute to Lack of
Responsiveness
• Power of industry influences in limiting
organizational change.
– Industry norms and standards (the so-called
“common body of knowledge”) can blind
managers to new opportunities, technologies,
and potential competitors.
Factors that Contribute to Lack of
Responsiveness
• Summary: 4 factors can limit responsiveness of
managers to industry changes:
– Problems associated with noticing, interpreting, and
responding to changes.
– Tendency for managers to emphasize low-level
learning over high-level learning.
– Tendency for organizational hiring and promotion
practices to foster homogeneity in managerial
thinking.
– Power of institutionalized industry practices.
Strategic Planning Processes