Cultural Implications of Information Systems in the Knowledge Management

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Table of Contents

Executive summary
Introduction
Conclusion
Reference List

Executive summary

In the past few decades, companies have shifted from the old ways of achieving competitive advantage over their rivals which used to include the automation of systems to managing of the knowledge they have in possession. As a result, this has led to the introduction of knowledge management systems in many companies.

The introduction of knowledge management systems has seen improvements in terms of company returns and performance. Just like any other process, implementation of knowledge management has faces several challenges with the most difficult one being its attempt to change culture within organizations where it is implemented.

Culture is described as the patterned way through which people of a certain group do their activities. It plays a very great role to the performance of knowledge management system since most people are usually against changing the culture.

It is therefore important to note that a knowledge management system can only succeed in a culture which is collaborative, has high levels of mutual trust between the involved parties and also offers rewards to those who work hard.

Introduction

In the last four or five decades, organizations used to achieve a cutting edge over their rivals by automating their systems and thus cutting down on operating costs.

However, things have changed of late and with competition among different organizations increasing day by day, business managers have discovered the importance of really understanding what they know and what more they need to know.

They have discovered that it s only after knowing what they have can they be able to use the information for the benefits of the company. As such knowledge management is not only the infrastructure but also the framework and systems in which knowledge is organized for effective utilization by firms (Ududec and Mazilescu 2011).

Knowledge can be classified in two ways: tacit and explicit. Tacit knowledge is knowledge that is not expressible this is knowledge that doesn’t require any thought. it can only be attained through experience.

Explicitly knowledge, on the other hand, is knowledge that acquired formally through education and training and is contained in books, journals and training manuals. Tacit knowledge helps a firm in decision making and goals setting while explicit knowledge is appraise employee’s skills (Smith 2001).

With economy conditions being so uncertain, inflation rising and falling without much ado, the knowledge that a company possesses has now become the only worthy asset which the company can rely on in order to have a competitive advantage over its competitors.

Success in a competitive market nowadays greatly relies on the extra piece of knowledge or information that a company possess since with technology, it has been made easier for everything else can be replicated.

The most important issue to note with knowledge management is the fact that it requires an overhaul of the company cultural practices such the shift from analyze to digital systems. This requires the organization to change its way of doing things.

Explicit knowledge can also be used to understand the employee’s cultural differences and thus can help the organization in harmonizing those differences for better outcomes (Smith 2001). Thus creating a new environment which ensures that the knowledge bases are always kept current and relevant.

In line with these issues, this report shall discuss the use of information systems in the management of knowledge with special emphasis being on the cultural implications on the company. It will analyze how introduction of information system to manage knowledge and information in organization impacts in the way people perform their activities.

The value of cultural change in supporting the flow of knowledge within an organization’s Information System

A knowledge management system is defined as the way in which a certain company or organization collects its data, and then organizes it before distributing it to the reliable parties.

The idea behind a successful knowledge management system lies on the assumption that each stakeholder (employee, member or a customer) should have easy and ready access to the operation details as well as the possible solutions to the problems that may arise (Newman, Conrad1999).

For example a customer should know who to contact when a certain problem arises or when he or she is in need of certain services. Several types of knowledge management systems exist and they are classified according to their characteristics.

These knowledge management systems can either be fragmented, content based, process based or capability based systems. Nowadays, companies prefer an integrated knowledge management system due to the advantage that it provides timely solutions for all sorts of problem either emergency or day to day problems (Uriarte 2008).

Nowadays, most companies prefer content based knowledge management systems. The reason behind its high rate of use is the fact that it presents the stakeholders with relevant information which can be accessed easily through the internet in their websites.

It is a good method for many companies to use irrespective of their sizes (Nielsen& Michailova 2007). The company develops a website where one can easily access information of any of the company products. These websites are equipped with most of the information that the customer may require.

A content based information system serves as an advantage to any company that uses it since all the required information is easily accessed. It is usually easier for the clients to contact the company headquarters armed with information about the enquiry as well as detailed information of what was not covered in their websites (Maier 2007).

The use of the website for information management also serve as an advantage since the company expenses due to the reduced number of personnel required as well as expenses required for stationeries. This in return gives the company a chance to provide the services at more friendly rates compared to other competitors in the industry (Donnellan& Bruss 2004).

When introducing a new knowledge information management system, a company needs to take into consideration the basic human aspect of the company which is the culture (Leidner, Alavi& Kayworth 2006).

They should analyze the likely changes that the introduction of a knowledge management system is likely to impact on the company’s culture. Culture is defined as the organized or the patterned way through which activities within an organization are done when compared to others.

It is also explained by comparing how employees of a certain organization or company behave when compared to others (Becker 2000). When describing what culture and what makes culture, it is important to note that there is usually a common understanding between people who share the same culture.

Cultures vary depending on different companies. Most of the times, the goals and the objectives of the company influence the culture which the company chooses to adopt (Pfister 2009)).

It is important to remember that the center of knowledge management is a human component and thus for knowledge management system to be successful, the organization or the company involved should develop it in such a way that the employees will in a way be able to trust the exercise rather than seeing as a means of them being fired.

The company should always ensure that it has an information system which the employees can trust otherwise the success of the introduced information system can be very minimal (Schwartz 2006).

When introducing a knowledge management system, the organization should ensure that the system aligns itself with the company’s culture so as to enable all the involved stakeholders to adopt it as a normal way of life.

Otherwise if the introduced system attempts to change the culture which has been going on there, it might face resistance from the involved parties (Little 2011). A good knowledge management system can only work efficiently if there is good coordination between the system and the organization’s culture.

Knowledge management systems always seek to change the company’s culture or way of doing things in order to gain more efficiency from the available resources.

It is therefore important to ensure that the changes which are introduced by the use of a Knowledge Management System align with the company culture or the culture which the affected stakeholders have been following (McDermott& O’Dell 2001).

The company should also be prepared for a long term change of culture as a result of introduction of the system. No matter how good or efficient a knowledge information system is, if it is introduced in unsupportive culture it will never work no matter the efforts placed on it (Donate& Guadamillas 2010)

For a knowledge management system to be successful, the company culture should have several characteristics or should be ready to change towards them. All the involved stakeholders should have a positive attitude towards the introduction of the knowledge management system if it is ever going to succeed (Barnes 2002).

They should not see it as part of the management but they should see it as a way through which the company can be able to achieve its goals. They should also employ curios, free, willing to explore and create. They should abandon the lets wait and see attitude, that way; the knowledge management system would be successful.

With the support from the management this can go a long way in ensuring that the system is well adopted. A knowledge management system might sometimes tend to make employees share their knowledge.

The employees should be encouraged and be informed that by sharing knowledge it is not that anyone is going to lose their jobs but the information will be helpful for the company. They should also be informed that the company does not intend to fire anyone after sharing of the information (Hussain, Lucas& Ali 2004).

Culture is the biggest impediment to knowledge transfer. The problem arises due to the difficulty or the inability to change the way people behaves. Different cultures influence the way knowledge management operates.

If a company embraces a culture of being risk averse and bureaucratic where employees are never allowed to air their views, the employees are likely to feel isolated and they might not readily share their knowledge since they are afraid of being criticized (Thierauf 1999).

Bureaucratic or hierarchical cultures results in information being possessed by everyone but shared with no one. In this case, the information cannot be helpful to the company.

The effects of culture on knowledge management can be analyzed through four pillars which are most of the time evident in some companies depending on their culture. These four pillars are: collaboration, incentive rewards, learning leadership and finally mutual trust (Woods& Cortada 2000).

Collaboration is a very important feature for the adoption of a knowledge management system. It is usually the extent people can go to assist one another on their activities.

If a knowledge management system is introduced in culture which is collaborative, it would work best since a collaborative culture removes all the barriers which arise when sharing knowledge (Prichard 2000). Collaboration reduces fear and increases openness among the involved teams.

A collaborative culture also enables members to tighten the individual differences among them through a shared understanding about the company. The involved people are able to share their strengths and weaknesses and as a result, this leads to the growth of the company even more.

It is important for the management to note that without a collaborative mind or culture, the success of introducing and creating knowledge management systems is very hard (Ududec& Mazilescu 2011)

For mutual trust to exist in a community, the employees and all the involved stakeholders should believe in the integrity, character and the ability of each other.

If the relationships between the involved stakeholders have high mutual trust, members of such company would be willing to share information freely and thus introduction of a knowledge management system would succeed much compared to a company where embraces a culture of mistrust.

Low levels of mutual trust are a key barrier to knowledge exchange in teams (Buckman 2004). Trust encourages an environment that offers a platform for knowledge exchange since it reduces the fear of risk. When members trust each other, they are more likely to share ideas and thoughts.

Leadership on the other hand is one of the major drivers in adoption of knowledge management systems in organizations. The leadership of a company can be assessed by its ability to influence and develop individuals and teams to achieve the objectives which the company has set. Adequate leadership influences how the members create knowledge.

If the company leadership has a culture which embraces knowledge management, then it will be easier to introduce new knowledge management systems which can help the company in achieving its goals.

Incentives and rewards also encourage the creation of knowledge management system. Incentives are some of the things companies use to increase the productivity of its employees.

On the other hand, rewards are the valued work outcomes which employees are awarded due to the positive results of a job they engaged in. A culture that uses both rewards and incentives can have positive influence on knowledge management and performance (Dalkir 2007).

However, some experts argue that incentives and rewards harbor the management of knowledge systems in a company since the employees might keep some of the knowledge they possess from other people so as to ensure they continue gaining the rewards.

As a result, though the culture of giving incentives and rewards can lead to better knowledge management, sometimes they can be used negatively (Gottschalk 2007).

Finally, learning in a company can be defined as a change of thinking or behavior as a result of passing through some situations. In many organizations, learning can involve the experiences one goes through in his or her line of duties whether deliberately or not deliberately.

Learning is a very important factor if knowledge management is going to succeed in any way. If the company embraces a learning culture, there is very high likelihood for creation of knew knowledge.

The organization should have tolerance when it comes to employees making mistakes and instead they should view them as the opportunities through which the company can improve (Conner& Clawson 2004).

Conclusion

As Competition becomes stiffer and the economic conditions become unpredictable, companies have been forced to use the knowledge they possess as the only driver which can give them a cutting edge over their rivals. It has thus become very important to know how this knowledge can be managed to achieve maximum returns to the company.

As a result, there has been the introduction of knowledge management systems which are defined as the ways in which a certain companies or organizations collect its data, organizes it before distributing to the reliable parties.

With the assumption being to provide all the involved stakeholders with the information they might require. However, implementation of these knowledge management systems has faced difficulties since most companies have to change their culture in order to reap maximum benefits from knowledge management systems.

Some of the characteristics a culture should possess for knowledge management systems to be successful include high levels of mutual trust and a collaborative type of culture. With these in hand, implementation of knowledge management systems can be successful.

Reference List

Barnes, S. 2002, Knowledge management systems: theory and practice. Cengage Learning, New York.

Becker, K. 2000, Culture and international business. Routledge Publishers, New York.

Buckman, R. 2004, Building a knowledge-driven organization. McGraw-Hill Professional, New York.

Conner, M., & Clawson, J. 2004. Creating a learning culture: strategy, technology, and practice. Cambridge University Press, London.

Dalkir, K. 2007, Knowledge management in theory and practice. 3^rd Edition. Butterworth-Heinemann, New York.

Donate, M., & Guadamillas, F. 2010. The effect of organizational culture on knowledge management practices and innovation. Knowledge and Process Management: The journal of corporate transformation.17 (2) p. 82-94.

Donnellan, B., & Bruss, K. 2004, Gaining competitive advantage through the management of process knowledge. Web.

Gottschalk, P. 2007, Knowledge management systems in law enforcement: technologies and techniques. Idea Group Inc, London.

Hussain, F., Lucas, C., & Ali, M. 2004, Managing Knowledge Effectively. Journal of Knowledge Management Practice. p. 1-12.

Leidner, B., Alavi, M., & Kayworth, T. 2006. The role of culture in knowledge management system: A case of two global firms. International journal of e-collaboration. 2 (1) p. 17-40.

Little, T. 2011, “The Role of Organizational Culture, Leadership, and Infrastructure in Knowledge Creation“. Web.

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McDermott, R., and O’Dell, C. 2001, Overcoming cultural barriers to sharing knowledge. Journal of knowledge management. 5 (2) p. 76-85.

Newman, B., & Conrad, W. K. 1999, A Framework for Characterizing Knowledge Management Methods, Practices, and Technologies. Web.

Nielsen, B., & Michailova, S. 2007, Knowledge Management Systems in Multinational Corporations: Typology and Transitional Dynamics. The long range planning. 40 (3) p. 314-340.

Pfister, J. 2009, Managing Organizational Culture for Effective Internal Control: From Practice to Theory. Spring Publishers, New York.

Prichard, C. 2000, Managing knowledge: critical investigations of work and learning. Palgrave Macmillan, London.

Schwartz, D. 2006, Encyclopedia of knowledge management. Idea. Group Inc, London.

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Smith, A. 2001. The role of tacit and explicit knowledge in the workplace Journal of Knowledge Management. Web.

Uriarte, F. A. 2008, “Introduction to knowledge management”. Web.

Ududec, C., & Mazilescu, V. 2011, Knowledge management system and user modeling. Web.

Woods, J., & Cortada, J. 2000. The knowledge management yearbook 2000-2001. Gulf Professional Publishing, Oxford.

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