Intellectual Capital as a Tool for Managing Knowledge
Karl Sveiby was an early proponent of the intellectual capital evolution and has advanced the notion of intellectual capital as it applies to organisational knowledge management. As a researcher and manager of numerous ‘knowledge intensive’ organisations Karl Sveiby, along with other prominent gurus in knowledge management, viewed knowledge as comprising of tacit (ie., verbalised, non-codifable knowledge, such as culture, symbols, artefacts) and explicit (ie., codified information such as systems, procedures, libraries, databases) elements. Essentially a company’s intellectual capital offers a means for producing the tacit and explicit dimensions of knowledge. While numerous technology solutions for codifying knowledge prevail, the challenge for management is to translate unique and valuable dimensions of tacit knowledge to create sustainable competitive advantage. This challenge has prompted researchers to search for ways of understanding the tacit dimension and to offer solutions that tap into and build upon its worth. Moving from early transaction cost economy theories (Williamson 1975) viewing human capital as essentially a cost to the organisation, management theorists have entertained relational (Dyer & Singh 1998) based perspectives of firms, viewing human capital as an investment. These theorists focus on the tacit dimension and ways of creating knowledge through investments in the social intelligences of the firm. This means developing cultures based on trust, commitment, collaboration and work practices that encourage quality human interactions. In making the transition from strategies based on physical assets to those based on intangibles, companies have began to implement work practices to encourage quality social interactions. Progressive organisation such as 3M, KPMG, McDonald’s, Disney, General Electric and Boeing have touted the benefits of encouraging healthy social interactions...
...Topic: Knowledge Management and Intellectualcapital
M KIRAN REDDY
Knowledge is something that comes from information processed by using data. It includes experience, values, insights, and contextual information and helps in evaluation and incorporation of new experiences and creation of newknowledge. People use their knowledge in making decisions as well as many other actions. In the last few years, many organizations realize they own a vast amount of knowledge and that this knowledge needs to be managed in order to be useful. “Knowledge management (KM) system” is a phrase that is used to describe the creation of knowledge repositories, improvement of knowledge access and sharing as well as communication through collaboration, enhancing the knowledge environment and managingknowledge as an asset for an organization. Intellectualcapital is considered as a key influencer of innovation and competitive advantage in today’s knowledge based economy. Knowledge management helps in obtaining, growing and sustaining intellectualcapital in organisations. This paper...
...the knowledge of an organization is critical (Pasher & Ronen, 2011). The knowledge or expertise needed to run an organization should be made available whether internally or by acquiring outside help. Internally, coaching, training and consistent supervision can transfer information from one person to the next and that must be made as part of the business culture.
The knowledge one attains through years of experience on the job can be said to be invaluable, Xu (2013) shares that, human beings are endowed with different qualities and as such particular attention have to be paid to human resource especially in this knowledge-based economy. It is therefore imperative for organizations to develop mechanisms that will retain employees with knowledge that is inherent. The knowledge and the skills of an individual or the collective brainpower of workers in an organization combined with the ability of the firm to create, collect, coordinate, retrieve, leverage, and collaborate forms the basis of intellectualcapital (Gupta & Azzopardi, 2013). There can be diverse array of skills, expertise and knowledge across a given organization due to the differences in the type of work one is assigned to or the department an employee belongs. Employees have to meet set job requirements in order to be hired in the first place, however, the adjustments and adaptation of...
...Intellectualcapital-Tomorrow’s assets, today’s challenge
This report has the following objectives: Defining the intellectualcapital; exploring how to change the tacit knowledge into intellectualknowledge; suggesting how to turn intellectualcapital into revenue; highlighting the intellectual management in enterprises. With increasing emphasis on that intellectual property is the greatest asset, this report also investigates the ways to protect intellectualcapital in company.
Key words: intellectualcapital; tacit knowledge; intellectual management
The most important assets companies own today are often not tangible goods, equipment, financial capital, or market share, but the intangibles: patents, the knowledge of workers, and the information about customers and channels and past experience that a company has in its institutional memory. (Thomas A. Stewart’s)
1 Defining the intellectualcapital
* SEC Commissioner Wallman describes intellectualcapital as assets currently valued at zero on the balance sheet, including items such as the following:
3.Elements of intellectualcapital
5. Effects upon economy
6.Uses of intellectualcapital
8. Reference list
Specialists noted that in recent decades it has been an expansion of the concept of "new economy" as a new approach related to economics. This new concept is different from the classical economy which is characterized by balance and stability, through the fact that it traces the boundaries of an universe more complex and more structured than we could ever imagine . The end of the 20th century is associated with the birth of a new outlook on nature and science, that brings people a little closer to nature, a science that makes human intelligence and creativity an expression of a fundamental trend in the universe.
Taking into account this new perspective on the economy and on the society that is based on knowledge, professor Quash from London School of Economics says that we live in a world that focuses on the economic value of intangible assets. This way, ideas worth billions, while the products still cost less.
The society of the third millennium has employees who are valuable because of theirs knowledge. I n many of these companies, the value does not consist...
communication, provide training to managers and employees alike to improve
performance towards objectives and cultivate a feedback rich culture.
In the final part of the main body, the essay discusses challenges that organizations
might face when involving employees in the performance appraisal process.
Challenges include setting of achievable goals, enforcing management concerns,
curbing biasness and fairness in evaluations, managing subjectivity and internal
politics and promoting an open communication culture so that employees find
performance appraisals to be more meaningful.
This essay will not discuss HR hiring’s, rewards, trainings and developments in detail.
The issues, challenges and improvements brought up in this essay apply to all
companies who practices performance management regardless of country and are not
limited to sizes of companies.
A critique of the appraisal system
3.1.1 What is it and its importance
Performance Appraisal (PA) is an important human resource practice and tool where
management collects information on individual performance of its employees to
measure effectiveness and efficiency (Redman et al., 2000). It is a formal meeting
between an employee with his/her direct supervisor or manager where the employee’s
performance as well as his/her strengths and weaknesses are discussed in detail as
well as career development and opportunities (Scheraeder, Becton...
...IntellectualCapital Comparison Paper
Intellectualcapital is the combined knowledge of employees within an organization (Intellectual, 2013). This knowledge is to add value to the organization in ways such as increase profits, provide products or services to customers, gain competitive advantage, improve processes, or other types of capital. This paper will show five different types of intellectualcapital that adds value to an organization. It will provide examples of each intellectualcapital, whether that capital is identifiable or unidentifiable as an asset, and how each provides value to the organization.
The first intellectualcapital to discuss is customer capital. Customer capital is the relationship the organization builds and maintains with its customers (Customer, 2013). The customer capital relationships reflects the customer’s loyalty to the organizations products or services it provides. For example, like most CPG (Consumer Packaged Goods) companies, toilette paper has weak brand loyalty that reflects in lower customer capital (Stealings, 2010). This is because the main market leaders in toilette paper promise and provide customer the same amount of softness, discounts, and coupons, which...
...Using Soft Systems Methodology (SSM) in Formulating Knowledge Management Systems (KMS) Strategy for Malaysian Public Institutions of Higher Education (PIHE).
1 2 3 Authors: Nor Hasliza Md Saad, Prof. Dr Rose Alinda Alias and Dr. Azizah Abdul Rahman 1 Email: [email protected] School of Management University Science Malaysia, 11800 Minden, Penang Tel: 604-6533888 2 Email: [email protected], Deputy Dean 1 (Project Management & Finance), Research Management Centre, F54 Block, University Teknology Malaysia, Skudai, 81310, Johor, Malaysia Tel:6075537803 3 Email: [email protected] Faculty of Computer Science and Information Systems University Technology Malaysia, 81310, Skudai, Johor Malaysia Tel: 07-5532099, Fax: 07-5532210
Abstract The purpose of this paper is to discuss both the methodology and the finding on how Soft Systems Methodology (SSM) is used as a basis for formulating KMS strategy in four case studies conducted within Malaysian Public Institution of Higher Education (PIHE) context. The concept of SSM was used to integrate two streams of cultural analysis and logic-based analysis to understand the ill-structured problem situation in the context. Throughout the analysis Multiple Perspectives (MP) Theory by Mitroff and Linstone (1993) is employed to differentiate between the Technical Perspective, Organizational Perspective and Personal Perspective of the formulation of KMS strategy in the context. This approach presents a holistic view of...
University of Glamorgan
MSc International Logistics and Transport Programme/Strategic Procurement Management
STRATEGY AS PRACTICE
Soft Systems Thinking and IntellectualCapital
*Student No: *08193738
Assignment Date: 5 April 2009
*Submission Date:* 15 May 2009
Module Lecturer: Paul Davis
Word Count:* * *2,* 600
Critically evaluate the role that Soft Systems thinking can play in promoting organisations IntellectualCapital.
To evaluate the benefits of Soft Systems Thinking (SST) in promoting an organisational intellectualcapital it is necessary to understand the concept of Soft Systems Methodology and how this methodology can be used to foster teamwork, communities of practice and social learning, and whether these learning outcomes adds knowledge to employees, and leads to improved professional practice and efficacy. So what price do you put on learning – and as an intangible asset does it need to be measured to promote IntellectualCapital (IC) to support the “effective delivery of strategic goals by focusing management activities and processes”. Andriessen (2004).
Soft Systems Methodology (SSM) advocated by Checkland and Scholes (1990) is a methodology based on applying systems thinking to non system situations. It is a holistic way of dealing not with the problem but the...