Knowledge Management Impact on

Organizational performance
 Learning Objectives

The main objective of this chapter is to understand

the impacts of KM solutions on organizational
performance at several levels:

People
Processes
Products
In this chapter, our main objective is operationalise the
solutions that obtained from the application KM system.

Here, we need to discuss critically how the recommended

solutions may affect organization’s members (people),
processes and the products.
 Dimensions of KM impact on
Organizational performance

(1+2)
1
2

People Processes Products

Productivity Organizational
Knowledge Quality
(Efficiency & Performance
(Know-how) (Value added
effectiveness) & Innovation)

Knowledge Management
 KM Impact on People

KM affects organisation members at three levels:

• KM and employee learning

• KM and employee adaptability
• KM and job satisfaction
 KM Impact on Employee Learning

KM impacts on organisation members can be

accomplished through
– Externalization
– Internalization
– Socialization
– Communities of practice (combination)

Example
(e-learning workshop for prep year students)
 KM Impact on Employee Learning
SECI Model
Tacit Tacit

Tacit SSocialization EExternalization Explicit

E E
I I
Ex. Brain
storming
I I
I
G
I Ex. Share
(debates) I
O knowledge

IInternalization CCombination
Ex. Change E E Ex. Summarize
G
your mind G
opinions
I O
Tacit G G Explicit

Explicit Explicit

I=Individual, G=Group, O=Organization, E=Environment

 KM Impact on Employee
Adaptability

• Employees are likely to adapt when they exchange

information among each others
• They are more likely to accept change
• They are more prepared to respond to change

Example:
(Group discussion about a company New policy)
 KM Impact on Employee
Adaptability
KM process at an organisation encourages employees
to continually learn from each other, and they are likely
to possess the knowledge needed to adapt whenever
organisational circumstances so require.

When employees are aware of ongoing and potential

future changes, they are less likely to be resistance.
Awareness of new ideas and involvement in free
flowing discussions not only prepare them to respond
to changes, but also make them more likely to accept
change. Thus, KM tends to facilitate greater
adaptability among employees.
 KM Impact on Employee
Job Satisfaction

• Recent study found that in organisations

having more employees sharing knowledge
with one another, turnover rates were
reduced, thereby positively affecting revenue
and profit
• KM also provides employees with solutions to
problems they face in case those same
problems have been encountered earlier, and
effectively addressed
 How KM Impacts People

Knowledge Employee Learning

Knowledge
Management

Employee Adaptability

Employee Job Satisfaction

THE IMPACT OF KM SYSTEMS ON ORGANIZATIONAL PERFORMANCE

The Problem Situation

Discover Employee satisfaction Capture

Share
The Problem
List of reasons: The Results:

1. Unfair salary The reasons / results 1. Job leave

2. Demotivated employees relationship 2. Low productivity
3. Significant 3. 3
4. Strong 4. 4
And direction

Apply

The Problem Solutions

1. Incentive plan Impact 1. People
2. Awareness sessions 2. Process
3. Salary structuring 3. Product
Thank you