Application and development of relevant business management knowledge Essay - 2

Application and development of relevant business management knowledge - Essay Example Moreover, in order to make the best use of knowledge, a firm is required to have a system for regulating and organising knowledge management processes and this invariably involves changing organizational culture, technological processes and methodologies (Bhatt). In other words, effective knowledge management manages people, technologies and methodologies and does not focus on one or the other. Gold, Malhortra and Segars argue that successful organizations have the ability to realize economic goals via stockpiling knowledge and distributing it throughout the organization. However, Argote and Ingram caution that while it is important to create and distribute knowledge within the firm, managing knowledge, particularly business knowledge is very important to safeguard against the risk of internally created knowledge is not leaked to competitors. Regardless, Wig maintains that organization managers are persistently looking for ways to enhance the firms outcomes and performance. As a result, managers are consistently attempting to understand â€Å"underlying, but complex mechanisms such as knowledge† which influence the firm’s effectiveness and efficiency (Wig, 6). According Wig: Knowledge is said to be divided among a number of categories. For example, knowledge can be â€Å"tacit† and â€Å"explicit† (Stenmark, 36). Tacit knowledge is that which possessed by individuals and is observed by their activities and behaviour. Explicit knowledge is that which is easier to express and is often contained in manuals, regulations, procedures and can be distributed. Knowledge can also be cultural, encoded, â€Å"encultured† and embedded (Stenmark, 36). Although business knowledge narrows the field, it is also complex. The Fraunhofer CCKM construct of business knowledge management is demonstrative of the complexities involved in the creation, application and distribution of business