Organizational culture and Knowledge management B.V.L.Narayana Sr Professor (T M ) RSC/BRC

Definitions The set of shared attitudes, values, goals, and practices that characterizes an institution, organization or group (Wikipedia) Wilkins and Dyer (1988) suggest that culture "is [composed] of the values, competencies, and beliefs of a group of people that strongly influence whether and how organizational strategies are implemented. (p. 522)."

Definitions Schein (1990) defines culture as, "…a) a pattern of basic assumptions, b) invented, discovered, or developed by a given group, c) as it learns to cope with its problems of external adaptation and internal integration, d) that has worked well enough to be considered valid and, therefore e) is to be taught to new members as the f) correct way to perceive, think, and feel in relation to those problems

Importance of culture Karlsen & Gottschalk (2004) view culture as important because it shapes assumptions about what knowledge is worth exchanging; it defines relationships between individual and organizational knowledge; it creates the context for social interaction that determines how knowledge will be shared in particular situations; and it shapes the processes by which new knowledge is created, legitimated, and distributed in organizations. Lack of technology does not prevent KM activity – it just means that KM activity must be accomplished in different ways.

Importance of culture Without the benefit of a culture that recognizes, encourages, and rewards KM activities, consistent performance of KM activities will not occur. Interaction and collaboration among employees is important when attempting to transmit tacit knowledge between individuals or convert tacit knowledge into explicit knowledge, thereby transforming it from the individual to the organizational level (Gold, et. al., 2001).

Model of knowledge categories(Hedlund and Nonaka) Knowledge characteristics Indivi dual GroupOrganiz ation Inter organizat ion domain Articulated knowledge information embodied cognitive skills Knowing calculus Quality circles documented analysis of its performance Organizati on chart Suppliers patents and documented practices Tacit knowledge and information, cognitive skills embedded Cross cultural negotiat ion skills Team coordination in complex work Corporate culture Customers attitudes to products and expectations

Factors in culture and impact Information Systems  Combine people, processes, and technology Must be flexible and tailored to the type of knowledge being captured, shared, or created Include formal and informal approaches Impact Build networks that foster conversation,relationships, and trust among employees.Generate a collaborative environment in which employees know who knows what,know what was done before, and use this knowledge to resolve problems quickly and effectively.

Factors in culture and impact Organizational Structure Must be permeable and minimize the focus on organizational silos Must support learning and sharing of knowledge Encourages the formation of teams, work groups, and communities of practice Impact Allows the flow of knowledge regardless of employee role, job function, or other traditional boundaries. Facilitates sharing of knowledge and learning to create even more knowledge. Allows employees to bond socially and technically to share information, build on each others knowledge, and to solve problems.

Factors in culture and impact Reward Systems Consist of a balance between intrinsic and extrinsic motivators Encourage knowledge sharing across role and functional boundaries; Must not trivialize knowledge sharing efforts Include a formal assessment of achievements against knowledge management objectives Impact Encourage knowledge sharing through formal systems, such as financial incentives and compensation structures; and through informal systems such as peer-to-peer recognition. Acknowledge the value of sharing knowledge, the contributions people make, and the importance of not hoarding information or knowledge. Motivate employees to develop innovations that would help them do things right the first time.

Factors in culture and impact Processes Connect people with other knowledge people Connect people with information Enable conversation of information to knowledge Encapsulate knowledge Disseminate knowledge throughout organization Impact Promote collaborative problem solving, streamlined workload, consolidated information, and enhanced performance.Enable learning, sharing of cross- functional expertise, and sharing of worker-to-worker knowledge. Develop information systems that enable information to seamlessly cross traditional silos.

Factors in culture and impact People  Most significant element of a knowledge management system Employees need reassurances that they are still valued after they give up their knowledge Level of trust greatly influences the amount of knowledge that is shared Impact Fosters an environment where employees trust that their knowledge is valued and ensures that the culture grows at the right pace, with the right people, and in the right mix. Allows employees to do a better job of aggregating useful information, and make it available to others who need it when they need it.

Factors in culture and impact Leadership  Provides strong and dedicated commitment to knowledge management initiatives Leads by example  Fosters open knowledge sharing by creating an environment built on trust Fosters a belief that organizational learning and knowledge management are critical Develops a customer-centered business orientation Impact Creates the vision, mission, objectives, and ethics code for the organization as it develops its knowledge management system. Endorses and sustains knowledge management initiatives by taking on the role of coach and mentor. Removes barriers to progress. Reinforces and rewards positive behaviors and promotes the right people.Moves the entire organization toward knowledge management.

Factors in culture and impact