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  1. MIS 580 Knowledge Management KM Most-Cited 4 to 6 Harsha Gunnam | Hetal Mehta | Nargis Memon | Manish Wadhwa

  2. Articles Covered • A model of knowledge management and n-form corporation, Strategic Management Journal • Organizational learning: the contributing process and the literatures, Organization Science • Knowledge of the firm, combinative capabilities, and the replication of technology, Organization Science MIS 580: Knowledge Management

  3. A MODEL OF KNOWLEDGE MANAGEMENT AND N-FORM CORPORATION Gunnar Hedlund Strategic Management Journal 1994

  4. Outline • Introduction • Knowledge Model • Japanese vs. Western companies • Organization Structure vs. Knowledge Management • N-Form vs. M-Form • Where the N-form fails? MIS 580: Knowledge Management

  5. Introduction • Two trends in analysis of corporate strategy of firms • Internal organizations and management of firms • Dynamics (change & innovation) of firms • These dynamics does not capture relationship between organization and knowledge management • Solution: A model of Knowledge Management which captures knowledge types and transfer and transformation in an organization MIS 580: Knowledge Management

  6. Knowledge ModelTypes of Knowledge MIS 580: Knowledge Management

  7. Knowledge ModelTransfer and Transformation ASSIMILATION Individual Interorganizational domain Group Organization Articulated Knowledge (AK) Appropriation Extension Internalization Reflection Articulation Dialogue Tacit Knowledge (TK) Expansion DISSEMINATION MIS 580: Knowledge Management

  8. Knowledge Model Knowledge transfer and transformation (cont) • Articulation • Tacit made explicit • Example: Senior engineers write down their design rationale • Internalization • Articulated becomes tacit • Example: Internalize the training materials • Reflection = Articulation + Internalization • The interaction between articulation and internalization • Necessary for genuine knowledge creation • Example: Writing a science paper MIS 580: Knowledge Management

  9. Knowledge Model Knowledge transfer and transformation (cont) • Extension • Transfer of knowledge from lower to higher agency levels • Example: An employee sends product design for approval • Appropriation • Transfer of knowledge from higher to lower agency levels • Example: Group members coaches a new member • Dialogue = Extension + Appropriation • The interaction between extension and appropriation • Example: Dialogue between teacher and student MIS 580: Knowledge Management

  10. Knowledge Model Knowledge transfer and transformation (cont) • Assimilation • The input of knowledge • Example: Selective recruiting of key individuals • Dissemination • The output of knowledge • Example: Selling of patents • Expansion=Assimilation + Dissemination • The interaction between assimilation and dissemination • Example: Creation and selling of patents database MIS 580: Knowledge Management

  11. Japanese vs. Western companies MIS 580: Knowledge Management

  12. Organization Structure Vs. Knowledge Management • Knowledge model applied on Japanese and Western companies show organizational characteristics like employment policies • Knowledge is embedded in structured individual relationships and so knowledge of the firm can be understood from the organization of human resources - Organization Structure • Effective knowledge management requires a departure from the logic of hierarchical (U-form) organization and multi-divisional organization (M-form) • N-form MIS 580: Knowledge Management

  13. Additional ResearchOrganization Structures • U-form: Unitary form / Functional form • Process focused, similar tasks grouped together • M-form: Multi-divisional Form • Product focused, complimentary tasks grouped together Reference: Coordination and Experimentation in M-Form and U-Form Organizations(2005, December 26). Retrieved March 18, 2008 from Berkeley.edu at http://elsa.berkeley.edu/~yqian/coordination%20and%20experimentation.pdf MIS 580: Knowledge Management

  14. Additional ResearchOrganization Structures (cont) • N-form: Networked form • Information is shared and available throughout the firm • Leadership and decision-making changes depending on the situation for optimal organization effectiveness • Skills are constantly evaluated and upgraded • Emphasis is on establishing trust, relationships, and networks • Information tentacles reach out to customers and into suppliers • E.G. Dell Inc.’s business model exists because of efficient & extremely low cost communication across supply chain, in manufacturing, and in customer service Reference: The Rise of the Networked Organization (2004, Spring). Retrieved March 18, 2008 from Diamondconsultants at http://exchange.diamondconsultants.com/pdf/Network_Org_White_Paper.pdf MIS 580: Knowledge Management

  15. N-form vs. M-form MIS 580: Knowledge Management

  16. Where the N-form fails? MIS 580: Knowledge Management

  17. Summary • Knowledge Model: Types of knowledge, transfer and transformation process • Application of knowledge model on Japanese and Western patterns of knowledge management • Relationship between organization structure and knowledge management • Differences in N-form and M-form organization • Where is M-form superior over N-form MIS 580: Knowledge Management

  18. Discussion Questions • Which approach is better in Knowledge Management? Japanese or Western? MIS 580: Knowledge Management

  19. ORGANIZATIONAL LEARNING: THE CONTRIBUTING PROCESS AND THE LITERATURES George P. Huber Organization Science 1991

  20. Outline • Introduction • Knowledge Acquisition • Information Distribution • Information Interpretation • Organizational Memory MIS 580: Knowledge Management

  21. Introduction • Organizational learning – intentional process directed at improving effectiveness: Narrow View • Focus on broader view of organizational learning • Complete understanding of organizational learning through four constructs: • Knowledge Acquisition • Information Distribution • Information Interpretation • Organizational Memory MIS 580: Knowledge Management

  22. Introduction Sub-Constructs & Sub-Processes Sub-Constructs & Sub-Processes 1.1. Congenital Learning 1.2.1 Organizational Experiments Constructs & Processes 1.2.2 Organizational Self-appraisal 1.2. Experiential Learning 1.2.3 Experimenting Organizations 1.0. Knowledge Acquisition 1.3. Vicarious Learning 1.2.4. Unintentional or Unsystematic Learning 1.2.5. Experience-based Learning Curve 1.4. Grafting 1.5. Searching & Noticing 1.5.1. Scanning 2.0. Information Distribution 1.5.2. Focused Search 3.1. Cognitive Maps and Framing 1.5.3. Performance Monitoring 3.2. Media Richness 3.0. Information Interpretation 3.3. Information Overload 3.4. Unlearning 4.1. Storing and Retrieving Information 4.0. Organizational Memory 4.2. Computer-Based Organizational Memory MIS 580: Knowledge Management

  23. Knowledge Acquisition • It is the process by which knowledge is obtained • Example: Customer surveys, Research and development activities, Performance reviews, Analyses of competitor’s products • The five processes that organizations use to acquire information or knowledge are: • Congenital Learning • Experimental Learning • Vicarious Learning • Grafting • Searching and Noticing MIS 580: Knowledge Management

  24. Knowledge AcquisitionCongenital Learning • Inherited Knowledge obtained since organization’s conception • Knowledge acquired by drawing from already existing knowledge at organization’s birth. • Congenital knowledge strongly affects future learning – yet to be investigated • Pro-active Learner: American Oil http://findarticles.com/p/articles/mi_m4339/is_6_21/ai_71969770/pg_14 MIS 580: Knowledge Management

  25. Knowledge AcquisitionExperimental Learning • Organizational Experiments • Enhanced by the feedback of cause and effect relationships between the actions and outcomes of organizations • Learning facilitated through two methods: • Successive Limited Comparisons • Logical Incrementalism MIS 580: Knowledge Management

  26. Knowledge AcquisitionExperimental Learning (cont) • Organizational Self-Appraisal • Focus on member interaction and participation • Aim to improve mental health and relationships of members • Experimenting Organizations • Directed towards adaptability • Focus on operation in a mode of change MIS 580: Knowledge Management

  27. Knowledge AcquisitionExperimental Learning (cont) • Unintentional or Unsystematic Learning • Contrasting method when compared to other learning methods • Random exploration that results in learning • Experienced-based Learning Curve • Experience enhances performance • Predictable and measurable results MIS 580: Knowledge Management

  28. Knowledge Acquisition Vicarious Learning • Learning from “ Corporate Intelligence” • Example: Acquiring corporate intelligence through channels like consultants and networks of professionals • Observation of other organizations – mimic the competitor’s learned experience • Also by Second-hand experience • Vicarious Learner: Canada West Oil, Hospitals http://findarticles.com/p/articles/mi_m4339/is_6_21/ai_71969770/pg_14 MIS 580: Knowledge Management

  29. Knowledge Acquisition Grafting • Acquire knowledge through acquisition of resources not possessed by the organization • Example: acquisition of another organization • Method faster than acquisition through experience and complete than acquisition through imitation • Grafting is the most frequently used method of acquiring knowledge in today’s world MIS 580: Knowledge Management

  30. Knowledge Acquisition Searching & Noticing • Knowledge acquired through noticing and searching environment and performance of organization • Scanning • Wide range sensing of organization’s external environment • Scan for clues as to what may happen in the future • Active Scanning, Passive Scanning • Focused Search • Search with respect to response for problems or opportunities • Has an objective MIS 580: Knowledge Management

  31. Knowledge Acquisition Searching & Noticing (cont) • Performance Monitoring • Includes both focused an wide-range sensing of organization’s effectiveness • Measure performance against the expectation of the management and stakeholders • Noticing is the unintended acquisition of information relating to the organization’s: • External environment • Internal environment • Performance MIS 580: Knowledge Management

  32. Information Distribution • Sharing of information between organizational units • Leads to more broadly based organizational learning & new organizational learning • Precursor to aspects of organizational learning that involve information interpretation

  33. Information DistributionPropositions Probability that member or unit A will route information to member or unit B • Positively related to A's view of the information's relevance to B • Positively related to B's power and status • Negatively related to A's view of A's costs of routing the information to B • Negatively related to A's workload • Positively related to the rewards and negatively related to the penalties that A expects to result from the routing and • Positively related to the frequency with which A has previously routed information to B in the recent past Reference: Huber (1982) and Huber and Daft (1987)

  34. Information DistributionPropositions Probability or extent of information distortion by A when communicating to B • Positively related to A's view of the consequent increase in A's goal attainment that will result from the distortion • Negatively related to the penalty that A expects to incur as a result of introducing the distortion • Positively related to the amount of discretion allowed in the presentation format • Positively related to the difference between the actual information and the desired or expected information • Positively related to A's work overload and • Positively related to the number of sequential links in the communication chain connecting A with B Reference: Huber (1982) and Huber and Daft (1987)

  35. Need for Effective Information Distribution • Access to Synergistic Information • Identifying Key Sources • High Availability

  36. Information Interpretation • The process through which information is given meaning • The process of translating events and developing shared understandings and conceptual schemes • More learning occurs with varied interpretations affecting organization‘s potential behaviors

  37. Information InterpretationFactors Affecting Interpretation • The uniformity of prior cognitive maps possessed by the organizational units • The uniformity of the framing of the information as it is communicated • The richness of the media used to convey the information • The information load on the interpreting units and • The amount of unlearning that might be necessary before a new interpretation could be generated.

  38. Information Interpretation Cognitive Maps and Framing • Belief structure or mental representation or frame of reference will shape interpretation of information • Framing & labeling affects information interpretation • Non uniformly framed distribution implies non uniform interpretations

  39. Information Interpretation Media Richness • Extent to which information is given common meaning by the sender and receiver of a message • “Medium's capacity to change mental representations within a specific time interval“ • Two underlying dimensions - • The variety of cues that the medium can convey and • The rapidity of feedback that the medium can provide • Managers choosing rich communication medium are more effective

  40. Information Interpretation Information Overload • Interpretation is less effective if the information to be interpreted exceeds the units' processing capacity • Overload detracts from effective interpretation • Organization designs minimizing the need for information distribution should be adopted by organizations in excessively rich information environments • This "design for informational autonomy“ would consequently curtail some types of organizational learning

  41. Information Interpretation Unlearning • A process through which learners discard obsolete and misleading knowledge • Effects: • Temporarily inactive in the context where this knowledge had been used • New learning to take place

  42. Organizational Memory (OM) • Concerns: • Personnel turnover - great loss organization's memory • Non anticipation of future needs - great amount of data not stored • No idea of whereabouts of information possessed or stored by other members • Variables influencing effectiveness of OM : • Membership attrition • Information distribution and organizational interpretation of information • The norms and methods for storing information and • The methods for locating and retrieving stored information

  43. Organizational Memory Storing and Retrieving Information • Great deal of routine information stored • When to store non-routine information? • Variables governing non-routine information storage: • The degree to which the future needs are predictable • The scope of future needs that the member can envision • The commitment to the well-being of the organization and • The accessibility and utility of the channels and mechanisms available for storage

  44. Organizational MemoryComputer-Based Organizational Memory • Information concerning the time is more frequently resident in computers as transactions artifacts • Automatic capturing and sophisticated retrieval of information result in completeness and precision • Computer-based expert systems provide accessibility, reliability, and "own-ability,"

  45. Summary • Little cumulative work and little integration • Information distribution is affected by organizational decisions • Information interpretation is greatly affected by cognitive maps or frames of reference • Organizational memory is critical to organizational learning

  46. Discussion Questions • In the various methods of knowledge acquisition, which approach would be most suitable for a certain organization? • How to handle conflicting interpretation? • Shouldn't researchers build on others research? • How do you retain the knowledge of new employees before unlearning?

  47. KNOWLEDGE OF THE FIRM, COMBINATIVE CAPABILITIES, AND THE REPLICATION OF TECHNOLOGY Bruce Kogut and Udo Zander Organization Science, 1992

  48. Outline 48 MIS 580: Knowledge Management Introduction Information and Know-How Inertness of Knowledge Personal To Social Knowledge Paradox of Replication Combinative Capabilities Selection Environment Make Buy decision

  49. Introduction • Theory of firm knowledge • A major objective of a firm is to grow • To achieve the goal, a firm must • Codify tacit knowledge and facilitate technology transfer • Paradox – Technology transfer and imitation are two sides of a coin • How firms create new knowledge? • Make or Buy Decision MIS 580: Knowledge Management

  50. Information and Know-How • Two types of knowledge: information and know-how • Information: • Knowledge which can be transmitted with loss of integrity once the rules for deciphering it are known. • Information implies knowing what something means. • Know-How: • “Know-How is the accumulated practical skill or expertise that allows one to do something smoothly and efficiently. • Know-how is a description of knowing how to do something. MIS 580: Knowledge Management