KNOWLEDGE MANAGEMENT: THE NEW CHALLENGE IN MANAGING HUMAN RESOURCES IN ORGANISATIONS

Abstract

Knowledge Management (KM) has developed rapidly in the recent past as a field of practice and learning. This paper provides a conceptual understanding of the movement of KM, its emergence as an economics, social and cultural phenomenon and its challenging role in the modern business environment. Presently, the global economic environment is undergoing a major transformation process, from traditional labour intensive methods to knowledge based methods, due to globalization, increased competition and ever expanding Information Technology (IT) horizon. It is necessary to look beyond traditional ways of business to remain competitive in the market for survival and growth. As intellectual profile of organizations to undergo rapid changes, a major managerial change is needed to understand and manage this new intellectual capital, the Knowledge Worker (KW). To facilitate this transformation and to get the best out of Human resource (HR), new and unconventional management systems and processes have to be introduced. The value of KM relates directly to the effectiveness with which the managed knowledge enables the employers of the organizations to face challenges in the modern business world. Land, Capital and machinery are no longer decisive in the global market of products and services. Knowledge capital is the way an organization derives wealth from its information resources and like any other asset, it needs to be managed effectively. This paper describes what Knowledge is, KM explosion and its movement, the interest in KM and constraints and challenges in KM in the modern business environment. Also the paper may be of value to those who are interested in understanding the phenomenon of KM for academic/research purposes.

Keywords: Globalization, Intellectual capital, Information Technology, Knowledge management, Knowledge worker

For full Paper: fmscresearch@sjp.ac.lk