Addis Ababa University,

College of Business and Economics School of Commerce

Master of Business leadership
Post graduate extension program
Group assignment for the course of Organizational Behavior

Submitted by: group four (4)

1. Lamesginew Mersha ID NO: GSE/ 0279/13
2. Maeregu Eshetu ID NO: GSE/ 8707/13
3. Mahilet Kebede ID NO: GSE/ 9405/13
4. Kenawak Daniel ID NO: GSE /4215/13
5. Meba Bezuneh ID NO: GSE/ 8467/13

Submitted to: Dr. Bahran A. (PhD)

March 25/2021

Addis Ababa, Ethiopia

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Contents
1. Organizational Learning and Knowledge Management ....................................................................... 3
1.1. Characteristics about learning and organizations .......................................................................... 7
1.2. The ‘Learning Organization’ ........................................................................................................ 8
1.2.1. Bi-modal world ..................................................................................................................... 8
1.2.2. Source of learning ................................................................................................................. 8
1.2.3. Culture and learning .............................................................................................................. 9
1.2.4. Organizations as homogeneous, structured systems ............................................................. 9
1.2.5. Learning style........................................................................................................................ 9
1.2.6. Managerial focal point .......................................................................................................... 9
2. Approaches to Organizational Learning ............................................................................................. 10
2.1. Management Training ................................................................................................................. 10
2.2. Management Development ......................................................................................................... 10
2.3. Organization Development ......................................................................................................... 11
3. Bank of Abyssinia learning portfolio .................................................................................................. 12
3.1. Analyzing Learning Portfolios .................................................................................................... 13
3.2. Learning Portfolio Management in Bank of Abyssinia .............................................................. 14
3.3. Investment Dimensions to Learning ........................................................................................... 15
4. Knowledge Management .................................................................................................................... 16
4.1. Purpose of learning and knowledge management at bank of Abyssinia ..................................... 16
4.2. Methods/ process of Knowledge management and implementation ........................................... 17
4.3. Knowledge Management Processes and Goals ........................................................................... 18
4.4. Benefits of knowledge management in bank of Abyssinia ......................................................... 20
4.5. Knowledge management practices in bank of Abyssinia ........................................................... 21
4.6. Knowledge management framework .......................................................................................... 22
4.7. Knowledge management systems ............................................................................................... 23
5. Knowledge Managing related gaps in the organization in case of bank of Abyssinia ........................ 24
Reference .................................................................................................................................................... 25

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 Addis Ababa UNIVERSITY
College of Business & Economics – School of Commerce
MBL Program
GROUP ASSIGNMENT for Organizational Behaviour & Design

ASSIGNMENT RELEASE DATE: February 27, 2021

ASSIGNMENT SUBMISSION DATE: March 22, 2021

GENERAL INFORMATION
 This Assignment is intended to help the students of this program (MBL) extend their
understanding on the concepts and practices of key aspects of ORGANIZATIONAL
BEHAVIOUR & DESIGN.
 As such, all members of each group should participate in explaining the conceptual
framework of the part of ORGANIZATIONAL BEHAVIOUR & DESIGN and in
assessing its practical application in the case organization selected by the group.
 The area of coverage assigned to each group is specified under the group name/no.
 After submitting the assignment, all groups shall be sent with questions on email regarding
the assignment to which all their members send back their individual answers.
 There are no page limits to the assignment.

INSTRUCTIONS
 As mentioned above, each group is assigned with one major part of the course
(ORGANIZATIONAL BEHAVIOUR & DESIGN).
 The specific areas (details) of the part assigned to each group is/are specified in the course
outline of the course.

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 THE STRUCTURE OF THE ASSIGNMENT
i. Discuss the concepts of the assigned part – from ORGANIZATIONAL BEHAVIOUR (for
example: Decision Making and Creativity; Power and Conflict; Organizational
Change; etc.). The discussion should at least include meanings, purpose, scope,
important components, process, methods/approaches, etc. of your assigned
part/area of ORGANIZATIONAL BEHAVIOUR & DESIGN.
ii. Select real project as a case and assess how that part/area of ORGANIZATIONAL
BEHAVIOUR & DESIGN is practiced in the organization.
iii. Compare the practices to the concepts you have discussed and identify gaps/problems in
the organization.
iv. Forward recommendations on how to solve the problems regarding that particular
area/part of ORGANIZATIONAL BEHAVIOUR & DESIGN.

GROUPS AND THEIR ASSIGNED AREA/S

Group 4: Organizational Learning & Knowledge Management - book review

Practical analysis should focus on ‘Managing Knowledge as a System and related gaps
in the organization’

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 1. Organizational Learning and Knowledge Management

The idea that an organization could learn and knowledge could be stored over time was the key
breakthrough, which was first articulated in the book by. Evidently the book was the product of
much discussion and debate which had been going on and it was foreshadowed, but not explicitly,
by Mark Easterby-Smith and Marjorie A. Lyles (2011). Organization learning as the improving
actions through better knowledge and understanding. Organizations are not merely collections of
individuals, yet there are no organizations without such collections. Similarly, Organizational
learning is not merely individual learning, yet organizations learn only through the experience and
actions of individuals. In addition, some authors have concentrated on learning at the individual
level.

Organizational learning as an inquiry into the patterns of organizing among two or more people,
which leads to new knowledge and a change in those patterns of organizing. Since everyone creates
their own experiences; everyone will have different experiences in every interaction, and so
learning from collective experience is a lot more difficult than simply discussing what happened
in the past in order to decide what people want to do in the future. Organizational learning as the
‘practice of developing tangible activities; new governing ideas; innovation in infrastructure, and
new management methods and tools for changing the way people conduct their work (Cangelosi,
V.E. and Dill, W.R. 2009).

General theory of organizational learning as part of a model of decision making within the firm,
and emphasize the role of rules, procedures, and routines in response to external shocks and which
are more or less likely to be adopted according to whether or not they lead to positive consequences
for the organization. A number of specific ideas were outlined in their book, which were
subsequently developed further by other scholars. Noteworthy points in the book are: the idea that
it is through ‘organizational learning processes that the firm adapts to its environment the view
that ‘the firm learns from its experience and an early version of the distinction between single and
double-loop learning, to wit, ‘An organization changes its behavior in response to short-run
feedback from the environment according to some fairly well defined rules (Mark Easterby-Smith
and Marjorie A. Lyles 2011).

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Cangelosi and Dill (1965) produced the first publication in which the words ‘organizational
learning’ appeared in the title, and although the paper is based on tendentious data, it already makes
a distinct contribution to debates in the field because it starts to argue against the rationality of
assumptions. It is suggested that the model may be appropriate for established organizations in
stable circumstances, but it has limited relevance to organizations developing within dynamic
circumstances. Thus, Cangelosi and Dill propose a model based on tensions between individual
and organizational levels of learning, which is similar to the notion of organizational learning being
a discontinuous process (Argyris and Schön, 1978). The book by Argyris and Schön (1978) was
very important since it laid out the field as a whole very clearly, and their distinction between
organizations with and without the capacity to engage in significant learning (Models II and I)
received a great deal of attention. In it, the authors take a different critique of the assumptions of
Cyert and March by pointing out that human behavior within organizations frequently does not
follow the lines of economic rationality. Both individuals and organizations seek to protect
themselves from the unpleasant experience of learning by establishing defensive routines. During
the 1970s and 1980s there were a number of other foundational works, such as Hedberg (1981),
Shrivastra (1983), which made important contributions to the definitions of terminology, and to
deeper perspectives on organizational learning, such as the distinction between learning and
unlearning.

An image of ‘organizations as learning portfolios’ affirms the multi-dimensionality of learning in

and of organizations. This perspective has significant implications for the design of interventions
to promote learning and change. Instead of viewing organizations as monoliths and then
prescribing singular learning practices that are universally viewed as optimal (i.e. ‘best practices’),
advocates for organizational effectiveness respond to the particularities that exist within complex
organizations by choosing to manage multiple learning activities. Specific activities are valued for
their unique contributions and for the synergistic possibilities created through their
complementarity with other activities. What is valued is not the best form or type of learning but
a breadth of learning activities, relative effectiveness, and alignment with the organization.

Learning and intelligence are multi-dimensional concepts that cannot be determined with a single
measure. Reliance on single measures simplifies reality but, more critically, devalues ways of
learning and forms of intelligence that deviate from social norms. Much as individuals learn in

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different ways (Kolb, 1979), so too is the case with organizations. To some extent these differences
are a function of the diverse environments in which organizations must operate. For example, in
business environment BoA launch Local Deposit like Saving Account Current Account Fixed
Time Account, International Banking, Loan and Interest Free Banking Service what and how the
bank learn will be very different from what occurs in industries that are volatile and involve new
services or evolving technologies, such as

 Abyssinia Online

 Agent Banking

 Card Banking

 Mobile Banking

 Virtual Banking

 Branch/ATM Location

Learning differences between organizations also occur as a result of differences in history, culture,
size, and age. New, entrepreneurial firms are apt to learn differently from larger, established fi
rms. This creates opportunities for firms, like Apple’s chance in the 1970s and 1980s to take market
share away, more critically the social complexity of organizations supports multiple cultural
realities or segments (Van Maanen and Barley, 1985), and how learning occurs in one segment
will differ from how it occurs in another. Organizational learning style is a function of how
organizations learn as represented by the different learning activities that they undertake. An
organization’s pattern of learning activities reflects its learning style. Such styles do not indicate
how well an organization is learning nor judge the value of what is learned, but they do indicate a
great deal about what is learned and how learning takes place. In aggregate, a complex organization
is bound to support numerous learning practices that represent different learning styles. These
practices and styles constitute the raw elements of an organization’s learning portfolio. By
recognizing a range of learning styles within an organization, we can focus on how certain styles
are matched to work demands and provide complementary or strategic advantages.

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Learning styles represent an organization’s acquired capability. To use that capability for
competitive advantage, organizational members must first recognize what that capability consists
of Identifying current capabilities provides a starting point for strategic action to change, augment,
or enhance one’s style or portfolio of styles. Rather than presume no existing competence and
dictate its development top down, managers work with, and from what already exists. Research
has revealed that some organizations have a dominant learning style, while many more use a
variety of styles, each of which provide some learning capability (DiBella , 1996). Companies with
a large portfolio of styles are apt to have multiple competencies and a greater capacity to adapt to
change than companies that rely on a single learning style. By focusing on a company’s learning
portfolio in its entirety, learning advocates re-orient themselves from wondering whether the
company has the right learning style (or is, or is not, a learning organization) to considering the
complementarity of its styles. Instead of evaluating the style of a particular part of a company, the
learning advocate takes a systems view to consider synergistic possibilities. Recognizing the
presence of multiple styles within a company can also explain inter-group conflicts and barriers to
learning. If different parts of a company learn in different ways, then it is highly unlikely that
knowledge will be transferred across functional or project boundaries. Once we recognize such
differences, they can be managed as a potential source of competitive advantage. One possible
reason why managers often ignore existing capabilities is their attention to the plea that
organizations must first unlearn before they can learn (Hedberg, 1981). However, to develop
learning capability organizations must distinguish between unlearning what they know and do and
how they learn as represented by their learning portfolio. Managers can then make more informed
assessments about how present capabilities realize or inhibit learning and whether barriers to
improved performance exist because of what is being learned versus how learning takes place.
Hence the notion of the learning organization is as redundant as the notion of hot steam or a
breathing mammal. Organizations don’t have to be developed so they can learn, they already do.
Source of learning occurs through the natural social interaction of people being and working
together. Organizations as contexts for social interaction naturally induce learning. Learning
occurs through the very nature of organizational life. Learning is rooted in culture as cultures, all
organizations have embedded learning processes. For example, acculturation, which every
organization must have to integrate new employees is an embedded learning process. As
organizational culture evolves so too does the nature and process of learning.

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Organizations are differentiated structures Different organizational units promote different
behaviors and forms of interaction. There is differentiation in behaviors and social interaction both
vertically and horizontally in organizations. Types and forms of learning vary between these
different units. The cacophony of differences is consistent with a view of complex systems as
organized anarchies. Learning styles Organizations learn in divergent ways. There is no one way
to learn or better ways for organizations to learn. Learning styles will vary across an organization
that may house multiple styles in different organizational units. Managerial focal point Managers
need to understand the nature of social interaction in their organizations and how existing behavior
and routines engender learning. Once management understands how their organizations learn, they
can direct those learning processes towards what is strategically desirable. To understand the
distinctiveness of the ‘organization as learning framework.

1.1.Characteristics about learning and organizations

Mark Easterby & etal (2011), the major presumption that learning is an essential process of all
organizations. From this core, a set of related characteristics can be derived.

All organizations learn: - Rather than face a bi-modal world consisting of organizations that learn
and those that do not, I make the presumption that all organizations learn. Hence the notion of the
learning organization is as redundant as the notion of hot steam or a breathing mammal.
Organizations don’t have to be developed so they can learn, they already do.

Source of learning: - Learning occurs through the natural social interaction of people being and
working together. Organizations as contexts for social interaction naturally induce learning.
Learning occurs through the very nature of organizational life.

Learning is rooted in culture: - As cultures, all organizations have embedded learning processes.
For example, acculturation, which every organization must have to integrate new employees is an
embedded learning process. As organizational culture evolves so too does the nature and process
of learning.

Organizations are differentiated structures: - Different organizational units promote different

behaviors and forms of interaction. There is differentiation in behaviors and social interaction both
vertically and horizontally in organizations Types and forms of learning vary between these

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different units. The cacophony of differences is consistent with a view of complex systems as
organized anarchies.

Learning styles: - Organizations learn in divergent ways. There is no one way to learn or better
ways for organizations to learn. Learning styles will vary across an organization that may house
multiple styles in different organizational units.

Managerial focal point: - Managers need to understand the nature of social interaction in their
organizations and how existing behavior and routines engender learning. Once management
understands how their organizations learn, they can direct those learning processes towards what
is strategically desirable.

1.2.The ‘Learning Organization’

In the 1990s, the learning organization became synonymous with long-term success. Organization
is a template for an organization that continually creates its future by adapting to environmental
change and pro-actively shaping its environment. The learning organization is a powerful vision
and metaphor for change (Mark Easterby & etal, 2011).

1.2.1. Bi-modal world

By conceiving of ‘learning organizations’ and advocating for their creation or development,

theorists effectively bifurcate the world of organizations. When learning is used as an adjective
to describe a particular type of organization, one underlying assumption is that some
organizations learn and others do not. Such a division suggests that learning is optional and not
indigenous.

1.2.2. Source of learning

Learning, as a mechanism to foster organizational improvement, does not occur through chance
or random action but through the development and use of specific skills. Without disciplined
action or intervention from their leaders, organizations fail to learn due to the impact of the many
forces that constrain learning. For example, five component technologies or disciplines to
establish a learning organization—personal mastery, mental models, shared vision, team
learning, and systems thinking.

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 1.2.3. Culture and learning

For organizations to learn, they must have the right culture; learning organization can be
recognized by the interdependence of language and culture. In a similar manner, Beckhard and
Pritchard (1992) discuss building a learning organization by creating a culture that values learning
and rewards progress not just results.

1.2.4. Organizations as homogeneous, structured systems

Duncan and Weiss (1979) explain that learning occurs when organizations match their structures
to their environments in order to maximize the understanding of members of action–outcome
relationships. Purser and Pasmore (1992) claim that learning is dependent on the design of
knowledge work. To maximize learning, the design of knowledge work must be formalized and
aligned with the influence of decision makers. These theoreticians base their argument on the
presumption that becoming a learning organization is predicated on having the right organization
structure or design.

1.2.5. Learning style

An oft cited theoretical distinction in learning styles is Argyris and Schön’s (1978) familiar
contrast between single- and double-loop learning. More recently, ‘triple-loop learning,’
learning about learning, has been identified as yet another learning style. Learning
organizations promote double and triple-loop learning since those styles are considered more
advanced.

1.2.6. Managerial focal point

Learning disabilities occur due to the fundamental ways in which individuals have been trained to
think and act (Argyris, 2003) and from organizational barriers to discover and utilize solutions to
organizational problems identify the problems of amnesia (lack of organizational memory),
superstition (biased interpretation of experience), paralysis (inability to act), and schizophrenia
(lack of coordination among organizational constituencies). Three barriers to learning, learned
helplessness, truncated learning, and tunnel vision with systems perspective. To avoid or solve

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learning disabilities, organizational leadership must establish the normative conditions essential
for learning to take place.

1.3.Approaches to Organizational Learning

An implicit expectation of any kind of management enrichment program is that of learning, which
generally involves some relatively permanent type of change behavioral, attitudinal, or cognitive.

1.4.Management Training
Training conveys to boa the idea of making employees more alike than different in some respect
and trying to deemphasize individual differences in some particular area. For example, a number
of persons are trained to operate Local Deposit like Saving Account, Current Account Fixed Time
Account in terms of International Banking- Foreign Currency Deposit Accounts ,Trade Services,
Correspondent Banks and Money Transfer (western union, many gram dahabshil) More Service
a complicated piece of structure . Once the structure is designed and built, hopefully to the
specifications that optimize a person’s ability to perform the job, training programs are
implemented in order that the operator may “fit” staffs to the job. Individual differences among
people in terms of how they perform the job may cut down on service’ efficiency. In management
training many organizations spend considerable time, energy, and dollars to make their managers
more alike than different. Instilling company values and philosophy and inculcating the
organization’s climate and norms are examples of exposing managers to ideas and ideals they are
expected to emulate and to think similarly about. Training managers in specific skill areas—data
processing, budget and accounting techniques, salary administration— are other examples of
applications of management training.

1.5.Management Development
Management training attempts to level out individual differences, whereas management
development provides a different kind of learning opportunity. To our case of bank of Abyssinia,
development means legitimizing individual differences, providing opportunities for the person to
actualize staffs own potential, and encouraging managers to be more different than they are alike
along certain dimensions. As with training, BoA invest extensively into management development
programs. Examples of management development include the following: career testing and
counseling programs, in which the employees receives feedback based on test results about their
abilities, interests, and personality; university programs geared towards a continuing education

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experience for the person, such as new ideas about management and advanced technological
advances the manager needs to know about; and personal growth experiences, in which the person
comes to an increased awareness and understanding of himself or herself and how he or she affects
other people. Each of these provides an experience aimed at developing the individual’s unique
potential. The focal point is on self-development. The assumption made here is that increased self-
awareness and understanding can lead to attitudinal or behavioral changes that will increase an
individual’s personal effectiveness and ultimately the effectiveness of the bank.

1.6.Organization Development
Conceptually, organization development is different from both management training and
management development. The latter two kinds of learning may, however, be part of an
organizational development effort. Burke (2006) stated that “although persons may be involved in
events that are properly labeled as organizational development technology.

Organizational development can be defined as a planned process of cultural change utilizing

behavioral science knowledge as a base for interventions aimed at increasing the organization’s
health and effectiveness. As such, its focus is not solely on the individual person and his or her
growth in the organization. Rather, the focus is on how the individual relates to his or her own
work group and how his or her group interfaces with other groups in the organization. Again, to
use Burke’s words: “The primary reason for using organizational development is a need to improve
some or all of the system that constitutes the total organization.” Such a planned process demands
careful assessment or diagnosis of what is needed to increase overall effectiveness of the bank,
along with tailor-made changes or interventions, the goals of which are to satisfy those felt needs.
The key concern of behavioral science practitioners involved in organizational development work
is, of course, to create the kind of organizational climate where employees meet their own needs
and, at the same time, optimize the realization of organizational goals Burke (2006).Team-
building, learning how to diagnose needs, working through task and interpersonal issues, creating
structural and functional changes to facilitate effectiveness of the bank

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 2. Bank of Abyssinia learning portfolio
Bank of Abyssinia, one of private commercial bank in Ethiopia the present-day bank of Abyssinia
was established on February 15, 1996 (90 years to the day after the first but defunct private bank
was established in 1906 during Emperor Menelik II) in accordance with 1960 Ethiopian
commercial code and the Licensing and Supervision of Business Proclamation No. 84/1994. in
2020/21 approximately 520 manager and 1560 operation and business managers in 520 branches
of all over the country, in BoA branch division responsible for the seek and recruit new customers
and make deposit, withdraw, money transfer issuance and pay special cashers payment order
(CPO) transactions, functional departments which each specialize in a particular aspect of job ,
such as authorize transfer OBC and special transfers if the amount is greater than or equal 200,000
Ethiopian birr make loan in head office approves letter of credit (LC). From the outcome of
research and surveys a new product development teams responsible for the new product of a certain
cost, e.g. Adey saving product from females minor saving product( below 18 years old) Afla
saving product (18-29) and (above 50 years old) Balewileta saving product.(Branch banking
procedure 2020).

The marketplace changing due to different consumer tastes and expectations as well as technology
change, but the processes whereby the bank of Abyssinia designed and change working conditions
services were also rapidly changing. The bank became convinced that, although BoA was having
a successful for the last 25 year, unless it changed how it worked and how it learned, it would lose
its ability to compete with other commercial banks and financial institutions. New service and
product development teams now work together in co-location in common, open work areas to
facilitate communication and coordination. Staffs from the branches and other divisions, such as
digitalization and card banking, marketing, who are also assigned to produce card and assess the
market respectively, work in together. Where deposit mobilization and other functional staff once
worked sequentially on related tasks, now they work concurrently in parallel rather than in series.
In this form of simultaneous performance, works are completed without the time delays that
occurred when all departments were sequentially or when newly designed products and services
had to pass from function to function. In describing the roots of BoA organizational culture, staff
often refer to Particular reference is made to the heavy reliance on authority that stems from rigid,
hierarchical structures and the acceptance of formal authority. There was significant concern at
BoA traditional culture generated too much of a legacy system to networking transaction system

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division between those staff who did the thinking and those who acted. In the 2000th s, learned
about making the transition to a more open and flexible organization. This transition reflects the
desire to shift the style of management and working procedure from legacy to networking as well
as boss to leader. In the former, the framework is to command and obey; in the new framework of
management the focus is cooperation and integration. While discrete projects aimed at
improvement and learning have been completed or are still underway, management’s aim is to
spawn institutionalized processes that facilitate continuous improvement. It is expected that
changing the culture, structure, and management style at BoA will accomplish this. Among the
formal mechanisms to spawn learning is the use of Total Quality as well as quantity planning to
identify areas needing improvement of all organizational units to identify both service and product
issues that can be improved upon. Staff also expects learning to occur through the very mechanisms
whereby work is accomplished.

2.1.Analyzing Learning Portfolios

When an organization’s learning portfolio is examined in its entirety, several questions and
concerns come to mind. At bank of Abyssinia, knowledge acquisition, adaptation, correction, and
communities-of-practice are all supported and used. To what extent are the learning practices and
styles complementary, in conflict, or redundant? We should expect, for example, that what gets
learned at BoA through its internal methods of on the job training self-correction and
communities-of-practice would focused activities of acquisition and adaptation. In another work
context, nuclear power plants, we would expect to see incremental learning taking place among
operations plant staff which would complement the learning of a research and development unit
engaged in transformative learning. Controlling maloperation in banking operations where
controls are needed to avoid disastrous outcomes. The other concern about learning portfolios is
the extent to which current practices or styles align with or match learning needs and work
demands. Consider a team or organization that is in the banking industry where innovation is
critical to success. If it has an overemphasis on learning practices that support formal dissemination
or incremental learning, then what’s getting learned (and the speed whereby that learning is
disseminated) is apt to be less than helpful to the firm’s competitiveness practices that support
transformative learning. In another scenario, if a firm wants to emphasize teamwork, then it should
give more support to learning practices that promote group rather than individual learning. In the
banking industry where technological innovation good customer handling is becoming

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increasingly and pillar to success, bank of Abyssinia relative emphasis on learning through good
working ethics, hardworking practice should outweigh its investments in learning through on the
job training and sharing knowledge with other model branch staffs . The idea that organizational
learning portfolio might be misaligned with its learning needs or competitive demands raises the
possibility of portfolio management. How can organizations manage its portfolio for maximum
advantage? What criteria should be followed in making portfolio management decisions? How
would a managed learning portfolio differ from an unmanaged one? These questions suggest that
instead of blindly supporting learning practices or not supporting them at all, companies allocate
their learning resources within their portfolio in such a way as to maximize their effectiveness.
Learning capability and effectiveness must go hand in hand.

2.2. Learning Portfolio Management in Bank of Abyssinia

Managing a learning portfolio requires a sensitivity and appreciation for outcomes; and
traditionally in most business environments, outcomes or outputs are examined in the light of
inputs. Return on investment, has been a key measure that reflects the ratio of outputs to inputs.
Since bank of Abyssinia aim to maximize the returns on their investments, it make management
decisions about investments using return on investment as a guiding indicator. To determine the
value of outputs and expected returns assumptions must be made about the future; and these
assumptions can turn out to be invalid. Assumptions are also made about linear associations, that
an investment (usually financial resources) will be converted to some measurable amount of inputs
(material, labor, process technology) that will be converted to an expected set of outputs (products,
services, benefits). Over time unanticipated events or circumstances occur which thwart the
realization of the presumed causal linkage, as when the cost of material or labor increases.
Consequently, many management decisions end up being based on projections that turn out to be
inaccurate. This problem is especially prevalent with learning investments since the period during
which the returns from learning are realized can be quite lengthy; and the lengthier the period of
returns to be gained from an investment, the more tenuous our assumptions. Also the usefulness
of learning pertains to its timeliness. When employees learn something in a formal training
program, such as how to use new software for group collaboration, it’s often because they expect
to use those new skills right away. In that scenario, the benefits and outcomes from the learning
have immediate value. On the other hand, employees sometimes learn behaviors (such as how to
deal with angry customers or aggressive competitors) that they hope they never have to use.

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 2.3.Investment Dimensions to Learning
From time dimension to the value of learning for some practices the usefulness of what’s been
learned is realized immediately in the short term, while for other uses the benefit comes later on.
In industry this contrast is reflected in a manager’s choice between focusing on production
activities that create valued outcomes and benefits in the short term and investment activities that
lead to benefits in the long term. This contrast may be depicted in the following continuum:

Learning use: Immediate Future

The relative timeliness of when we use or apply what we have learned is an important criterion to
weigh up when choosing between alternative learning investments. Considering a practice in the
light of its learning use (immediate versus future) is a helpful marker. Learning impact it is one
thing to use or apply what we have learned, it is another to realize the benefits from that use.
Whenever learned attitudes or behaviors are used without controls or comparisons, there should
always be uncertainty over their impacts. Without controls, one cannot be sure whether the
outcomes should be attributed to what had been learned or some other factor, such as chance, a
change in the environment, or merely the passage of time, at other times the impact is unknown,
but we invest in learning just the same because we believe that the payoff or benefit will ultimately
be positive. This contrast may be depicted in the following continuum:

Learning impact: Certainty Uncertainty

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 3. Knowledge Management
Knowledge is often defined as a “justified personal belief.” There are many taxonomies that
specify various kinds of knowledge. The most fundamental distinction is between “tacit” and
“explicit” knowledge. Tacit knowledge inhabits the minds of people and is (depending on one’s
interpretation) either impossible, or difficult, to articulate. Most knowledge is initially tacit in
nature; it is laboriously developed over a long period of time through trial and error, and it is
underutilized because “the organization does not know what it knows”. Some knowledge is
embedded in business processes, activities, and relationships that have been created over time
through the implementation of a continuing series of improvements. Knowledge management is
the conscious process of defining, structuring, retaining and sharing the knowledge and experience
of employees within an organization and acquiring knowledge from the organization or another
source and turning it into explicit information that the employees can use to transform into their
own knowledge allowing them to create and increase organizational knowledge (Cangelosi, V.E.
and Dill, W.R. (2009).

Knowledge can be defined as a fluid mix of framed experience, values, contextual information,
and expert insight that provides a framework for evaluating and incorporating new experiences
and information there are two types of knowledge as tacit and explicit knowledge. Tacit knowledge
is knowledge that is internal to a person, including cognitive learning, mental models, and technical
skills. On the other hand, explicit knowledge is the kind of knowledge that can be codified and
expressed by speech. Tacit knowledge as the private knowledge that’s hardly accessible and placed
in the minds of people. Another classification scheme, categorized the knowledge types to explicit,
tacit and implicit knowledge (Kim, Y. Y, 1995). They defined implicit knowledge as the type that
can be externalized if needed but has not been externalized yet.

Knowledge management is a process wherein, organizations produce wealth using their

knowledge or intellectual properties. The subject of knowledge management can be considered
from three different perspectives; information-based, technology based and culture-based (Kim,
Y. Y. (1995).

3.1.Purpose of learning and knowledge management at bank of Abyssinia

Creating an environment where learning is considered an asset will drive employees to
continuously educate themselves.

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Incentivizing them to take advantage of knowledge management systems will result in up skilled
employees who are ready to take on leadership roles in bank of Abyssinia.

For this to happen, there must be structured and accessible learning and development technology
in place that employees can use.

• Motivated employees can develop themselves at will

• Training pathways can be set out

• The structure allows for easier discovery of subjects

3.2.Methods/ process of Knowledge management and implementation

Knowledge creation, sharing and its management is a dynamic process that might not be
accomplished until some societal and organizational conditions are not satisfied (Mark smith &
Marjorie a. 2011). Similarly, knowledge management cannot be undertaken in a vacuum as it
requires effective knowledge management strategy, a clear methodology and processes. In this
regard, prior work has given undue importance to knowledge management frameworks. In the
literature, very few researchers have discussed the underlying factors that are likely to facilitate
the knowledge creation process in the organization. In terms of societal and organizational
conditions, the knowledge management researchers have discussed the effects of managerial
support on the successful knowledge management application. For example, the top management’s
willingness and knowledge vision is likely to support knowledge management strategy in the
organization found top managers found middle managers to support the successful knowledge
management implementation. And knowledge-oriented culture played a vital role in the efficacy
of knowledge-based decisions. Although, there are equal growth opportunities to employees
during the knowledge management process implementation, it also provides a sense of ownership
between employees and enhances the level of trust that positively impacts on knowledge creation,
sharing and use (Mark smith & Marjorie a. 2011). The ability of knowledge employees in capturing
and utilizing knowledge to make strategic decisions is also crucial for routine banking functions.
For example, dealing with customers in the routine banking operations requires an organizational
structure that supports knowledge management activities in the banks. In the same way, banks are
also required to provide the necessary training to their staff in order to handle complex banking
jobs (Mark smith & Marjorie a. 2011).In response to the changing environment, banks are required

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to implement a thorough knowledge management system for managing knowledge in banking
operations. In order to get the most value from their intellectual assets, senior management showed
willingness on knowledge sharing and transfer and increased their access to knowledge databases.
The process of managing knowledge in the banking can be attained with the process improvement
and amplification of knowledge (e.g. tacit + explicit) management system. Therefore, the focus
has been shifted towards quality of the operations through the process improvement in view

3.3. Knowledge Management Processes and Goals

Knowledge management is the planning, organizing, motivating, and controlling of people,
processes and systems in the organization to ensure that its knowledge-related assets are improved
and effectively employed. Knowledge-related assets include knowledge in the form of printed
documents such as patents and manuals, knowledge stored in electronic repositories such as a
“best-practices” database, employees’ knowledge about the best way to do their jobs, knowledge
that is held by teams who have been working on focused problems and knowledge that is embedded
in the organization’s products, processes and relationships. The processes of knowledge
management involve knowledge acquisition, creation, refinement, storage, transfer, sharing, and
utilization. The knowledge management function in the organization operates these processes,
develops methodologies and systems to support them, and motivates people to participate in them.
The goals of knowledge management are the leveraging and improvement of the organization’s
knowledge assets to effectuate better knowledge practices, improved organizational behaviors,
better decisions and improved organizational performance. Although individuals certainly can
personally perform each of the knowledge management processes, knowledge management is
largely an organizational activity that focuses on what managers can do to enable knowledge
management’s goals to be achieved, how they can motivate individuals to participate in achieving
them and how they can create social processes that will facilitate knowledge management success.
Social processes include communities of practice – self-organizing groups of people who share a
common interest – and expert networks – networks that are established to allow those (Preethi
Kesavan, 2021).

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Knowledge Management Processes Organizational Processes Intermediate
Outcomes

Improved: --- Improved:-

Knowledge: Innovation
Creation Organizational
−Individual -
Acquisition Behaviors −
Learning − - Improved
Refinement Decisions −
Collective Organizational
Storage Products −
Transfer Learning − Performance
Services −
Sharing Collaborative
Processes −
Re-Use Decision-
Relationships
making
(with suppliers,
customers and
partners)

Fig. 1: knowledge management in organization. Adopted from W.R.King (ed.), Knowledge

Management and Organizational Learning (2008)

When thinking about knowledge management, it is helpful to consider the types of knowledge and
how possible it is to share that knowledge within an organization.

Tacit knowledge and explicit knowledge are the two main types of knowledge covered within the
definition of knowledge management.

 Tacit knowledge is more intuitive, less easy to package and share with others. Examples of
tacit knowledge are innovative thinking and understanding body language.

 Explicit knowledge is information that is easily codified and taught, such as how to change
the toner in a printer and mathematical equations.

Successful knowledge management will improve an organization in several ways. It will ensure
that the specialized knowledge of employees does not leave with them, or go unutilized by other
employees who would benefit from that knowledge.

It allows for better situational awareness, as well as opening doors for learning about best practices,
lessons learned, and overall organizational improvement.

Why is knowledge management important?

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Knowledge management is important because it boosts the efficiency of an organization’s
decision-making ability. In making sure that all employees have access to the overall expertise
held within the organization, a smarter workforce is built who are more able to make quick,
informed decisions that benefit the company. Innovation is easier to foster within the organization,
customers benefit from increased access to best practices and employee turnover is reduced.

The importance of knowledge management is growing every year. As the marketplace becomes
ever more competitive, one of the best ways to stay ahead of the curve is to build your organization
in an intelligent, flexible manner. You want to be able to spot issues from a distance and respond
quickly to new information and innovations.

Bank of Abyssinia begin the knowledge management process for many different reasons.

 A merger or acquisition could spur the need for codifying knowledge and encouraging
teams to share their expertise.

 The imminent retirement of key employees could demonstrate the need to capture their
knowledge.

 An upcoming recruitment drive shows the wisdom in using knowledge management to

assist in the training of new employees.

3.4.Benefits of knowledge management in bank of Abyssinia

 To create More efficient workplace

 Create Faster, better decision making

 To emerge and Increased collaboration

 To Building organizational knowledge

 Employees onboarding and training process is optimized

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  Increased employee happiness and retention, due to the valuing of knowledge, training,
and innovation

Knowledge management is an important tool in any company that wants to increase their bottom
line and market share.

3.5.Knowledge management practices in bank of Abyssinia

Depending on what the company needs, their knowledge management will look different. Below
we have listed the most common types of knowledge management examples:

1. Tutoring & training, communities of practice and expertise location

These examples all involve the transfer of knowledge directly from the knowledge holder.

This could be through in-person tutoring, company-wide training sessions, online chats and group
discussions - or a mix of those options and others.

For expertise location to be an effective aspect of a knowledge management system, there must be
a searchable matrix built that allows for documentation of competencies.

2. Documentations, guides, guidelines and tutorials

These written communications are great for storing and transferring knowledge.

With text-based knowledge management, a system to store, categorize and navigate subjects is
necessary.

In many cases, metadata is a great help for this.

 Can be archived and stored easily

 Easy to share online

 Can easily combine multiple people’s expertise into one packet

 Fast navigation to solutions when organized well

3. Forums, intranets and collaboration environments

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These online resources spark conversation and bring many knowledge holders into the same place.

Threads, sub forums and groups can be divided by topic, level of expertise or any number of other
classifications.

 Collaboration drives innovation

 Many experts can be brought together into one place, no matter their location globally

 Facilitating contact with remote teams helps teamwork and knowledge transfer

4. Learning and development environments

Creating an environment where learning is considered an asset will drive employees to

continuously educate themselves.

Incentivizing them to take advantage of employees knowledge management systems will result in
up skilled employees who are ready to take on leadership roles in your organization.

For this to happen, there must be structured and accessible learning and development technology
in place that employees can use.

 Motivated employees can develop themselves at will

 Training pathways can be set out

 The structure allows for easier discovery of subjects

6. Webinars

These online seminars can be very helpful in widely disseminating ideas throughout teams,
branches or the entire company.

 Can be recorded and reused

 Easy for all interested employees to attend

3.6.Knowledge management framework

 People - Knowledge management must be prioritized within the company, and an ethos of
sharing knowledge must be built into the DNA of the company and incentivized.

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  Process - There needs to be a clear system for all steps of knowledge management, while
also leaving room for innovation.

 Technology - Technology supports knowledge management, allowing knowledge to be

searched for, found, and accessed within knowledge management systems. Technology
also allows people to communicate better.

 Governance - The organization’s governance must prioritize and reward knowledge

sharing. Without this step, instituting knowledge management systems will be a battle.

Organizations that take full advantage of knowledge management are better able to react quickly
to changing market conditions, offer better services to their customers and increase their
innovation and efficiency.

3.7.Knowledge management systems

Knowledge management systems are IT solutions that allow for the storage and retrieval of the
information stored within the company, allowing for better collaboration and more efficient
problem-solving.

Depending on what your company needs, they will have different features.

Examples of knowledge management systems are:

 Feedback database - Everyone involved in a product, from designers to salespeople to

customers, have the ability to share their feedback with the organization. All stakeholders
are able to access the feedback, and thus can quickly make key changes armed with
information.

 Research files - In developing projects and ideas, a company does market and consumer
research to find out what is needed, what niches are yet to be filled in the market, and what
trends can be forecasted. The files are then shared within the organization to allow all
departments to benefit from the research conducted.

Shared project files - This system allows for greater collaboration and teamwork, especially across
distances.

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4. Knowledge Managing related gaps in the organization in case of bank of Abyssinia
 in bank of Abyssinia Can be time-consuming and take away from the tasks the knowledge
holder is trying to complete A system of expertise location can be time-consuming to build
and difficult to document and save for future use as well as lose the knowledge if the
knowledge holder will leave the company Requires more time to create.

 Not organized properly or the knowledge will not be findable.

 Knowledge is not actively being vetted as it is added to discussions.

 Searching through many messages and threads for relevant answers is time-consuming.

 Messages and threads might not be archived.

 Requires a lot of effort to build and maintain.

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