Organizations face an array of challenges. Most of them are market based for example changes in technology, competition, globalization and policy and legal regulations. These have an immense influence on the activities of organizations since they directly affect their operations. This has therefore necessitated the practice of knowledge management within organizations so that they cushion themselves against these changes. Knowledge management is a range of strategies and practices that are employed by organizations to identify, create, distribute, and enhance the adoption of insights and experience. Such includes knowledge instilled in individuals or upon the organization in their processes or practices.
The areas commonly covered by knowledge management are business administration, information systems, public policy, public health, and computer science. This paper provides an analysis of why this concept is important to the success of organizations. By sharing of experience and knowledge regarding operations of the organization, important information is passed on to other employees. This means that knowledge is maintained within the organization even with departure of any employee be it through retirement or any other means of exit. Any employees do therefore not affect the operations of the enterprise in case of such movements.
Training of employees and sharing of information concerning matters of policy and legal requirements imparts knowledge upon the employees of what is expected of them. Their decisions would hence be based on such guidelines and therefore conformity to the rules governing the business and land. Such a move limits disputes caused by ignorance of what the expected performance is. The organization thus engages in normal operations with minimal or no distractions.
The imparting of knowledge on areas of technology and market trends, serves to inform the employees of the happenings in the market. They are therefore able to utilize the best practices or technological advancements with an aim of maximizing their profits through reduction in the costs of production or engaging in useful marketing practices. The effect of this leads to leveraging on the market thus beating competition from other organizations in the market.
Through sharing of insights, employees get to learn from their colleagues who perform better on how to achieve good performance. The low performers thus get a chance to study on how they can improve. This practice can also encourage innovations within an organization though the combination of knowledge. Where such working together helps enhance the productivity of the organization, the aims as envisaged in the statement of objectives are thereby within reach and achievement.
From the foregoing discussion, there is no doubt about the relevance and importance of practicing knowledge management. This is solely because it enhances the performance of the organization by equipping the employees with the correct tools of knowledge to be able to run the activities of an organization. It also protects the enterprise against any adverse changes in technology and regulations by training its employees on the aspects early enough to counter such changes and ensure conformity to any new systems. Examples of knowledge management includes training and sharing with other employees knowledge concerning new technologies or trends in the market, hiring consultants to train employees on legal requirements and implications and teaching of employees on public health matters. Where an organization is equipped with such expertise, it stands a good chance of withstanding any threats to its operations and hence its continued operations.