Welcome to Knowledge Organisation

Portfolio 1 - Welcome to Knowledge Organisation

Summary

Sveiby (1999) discusses in his article “Welcome to Knowledge Organisation” the environment that managers need to tackle in the future. It is said that this environment is a whole new world that poses various challenge for the managers. According to this article, the human resources before are people that generates cost. However, in the future, they are the ones that generate revenues. The power of the managers before is relative in their level in the organisation's hierarchy. On the other hand, in the future their power is becoming relative based on their knowledge. Their main task has changed as well. Before, their main duty is to supervise their subordinates. Now, it is their main duty to support their colleagues. According Sveiby (1999), managers today have no choice but to deal with this change in the scenario. All of them are already within that scenario with their respective organisations.

The Different View

It is advisable in augmenting such industry into an independent with industries specific to their concepts and attributes to the system of ontology. This also follows the approach in other industries wherein there are ontologies that are generic (Gualteri and Ruffolo 2005). In addition it is possible to connect the system ontology with project specific ontologies; for example to specify the concepts “product” or “company”. Moreover, it is possible to define other system ontologies related to a different domain, e.g. innovation management, and thus use the system for other purposes.

Research suggests that the principle of management convention and practice is not just undesirable but no longer sustainable. The issues of focus were land, labour and capital; the Weberian concepts of hierarchy and bureaucracy; command and control; and the efficiency principles of Taylorism. Organisations that managed under this paradigm survived (Burns and Stalker, 1961).

Reflective Report

The main reason that most organizations become great is that they know they are good and stop on it. These organizations become stagnant and they stop to grow. They also stop to learn and to change. I believe one way to overcome this kind of mindset in organization or leadership. A leader must develop the attitude of being an optimistic and creative thinking. It is because “You are what you think you are.” When you believe something is impossible, your mind goes to work for you to prove why, but when you believe, really believe, something can be done; your mind goes to work for and helps you find the way to do it. While creative thinking is simply finding new, improved ways to do anything. The reward of all types of success --- success in the home, at work, in the community - hinge on finding ways to do things best.

To build a successful leadership/organization Take this two qualities of to realize real profit; a desire for greater success and intelligence to select a tool to help you realize that desire. Be a leader that does things. Ideas, when not acted upon, will not bring success.

Portfolio 2 - Strategy Formulation in Knowledge Intensive Organisations

Summary - Strategy Formulation in Knowledge Intensive Organisations

The article focuses on the very little development of strategy in firms that are not in the manufacturing industry. It also emphasised on the notion that strategies were juts formed and developed for the manufacturing industry. It was imposed on this article regarding knowledge intensive companies - those in the service industry. This sector is a phenomenon of all types of companies that range from organizations that took the effort in refining and packaging their outputs. Knowledge industries are the ones in the service sector. Heavy investment in knowledge and highly innovative. An ongoing process of solving the problems of the customers by the producers is the emergence of service. Roos, G. R. (1997) came to the conclusion that standardized service or package was only appropriate on a short term base. The provider of the service is an expert while the customers want their problems to be solved by the expertise of the provider. It is therefore fitting that the knowledge industry know how to treat their clients as individuals.

The Different View on Strategy Formulation

According to Morton (2010), when strategy and strategic planning is defined, it should always include as taking all the proactive approaches in evaluating all activities basing it in how well the activity moves towards the core goal of the business. More specifically, strategies are the plans for reaching a business' objectives and goals. The concept of shaping strategies was discussed by John Hagel in his article Shaping Strategies. According to Hagel (2008), shaping strategies are strategies that use positive incentives in mobilizing and focusing thousand of participants to shape a specific desired industry or market. The elements that come together in this strategy are the compelling shaping view in providing focus for the participants of investments, a very power platform that will shape the economic leverage of the participants, and the shaper's sets of acts and assets in communicating conviction and capabilities to potential participants. Hagel (2010) believes that shaping strategies hold a great promise in the business world as business executives hold a greater freedom in shaping their target markets and industries during these times of high uncertainty and rapid change.

Summary - The Invisible Balance Sheet

The invisible balance sheet is Sveiby's attempt in showing the management of various companies' methods and procedures that are practical in the presentation of their organization's most important resources - its workforce. It is Sveiby's belief that the human resource should be presented in a different way aside form colour pictures

The Different View on the Invisible Balance Sheet

Human resource professionals should adapt on the very broad view of globalization. According to Briscoe and Schuler (2004), in an ideal world, an organization conducting business internationally, is actively engaged in strategic planning and strategic management. It will regularly conduct and analysis scan of its strengths, weaknesses, opportunities and threats. The results of this analysis are their tool in the development of its global strategies aiming for global success. When this strategic planning goes international, the organization begin to concern regarding human resource management issues. HR has one of the most critical issues in the organization that need to be addressed in able to compete with the international marketplace.

Many aspects of human resource management are affected both by globalization and the differences in national culture. The managerial challenge in a complex international organization was described in terms of harmonizing two opposing forces rather than making two binary either/or choices. Culture is another frame that impacts various aspects of the human resource management.

The overview of HR practices in different cultures has brought about trends that were seen in the practices in the United Kingdom, United States, Japan and Lithuania. These differences and some similarities are also reflected on other countries. Human Resource changes have taken place in the UK as a reflection of membership in the European Union (EU) and the change in regulation form the UK government. Other factors such as globalization and strong pressure in cutting operational costs downwards have triggered this change. In the latter part of the year 2000, the US economy is slowing. Though there are a lot of workers available, recruitment has been a continuous challenge especially in areas wherein skills is a shortage. The workforce in the country is continuously being diverse. Organizations are continuing to experiment in variable compensations and high performance systems in enhancing productivity. The changes in HR practices in Japan have seen to be slow and incremental. Japanese organizations are carefully avoiding traumatic breaks from the past. They have a strong sense of corporate obligation in providing jobs, income and security. In Lithuania, the so-called “hard HRM” is being practiced. On the other hand, there is a shortage of qualified workers, and the growing completion has urged managers of organizations in shifting their employees' attention as one of the main resources to gain competitive advantage.

Portfolio 3 - The Knowledge Organisation

Summary

According to Sveiby (1996) in a knowledge organisation, the flows of knowledge are far more important than that of financial flows. The true output is their better performance through the customers. The power of the managers before is relative in their level in the organisation's hierarchy. On the other hand, in the future their power is becoming relative based on their knowledge. Their main task has changed as well. Before, their main duty is to supervise their subordinates. Now, it is their main duty to support their colleagues. According Sveiby (1999), managers today have no choice but to deal with this change in the scenario. All of them are already within that scenario with their respective organisations.

The Different View

According to Michael Porter (2009), there are five competitive forces that shape strategy. These are the established rivals; supplier power; customer power; new entrants; and the substitutes. According to Porter, customers dictate to lower the prices by playing your organization and your rival against one another. Suppliers on the other hand can hinder an organization's profit if they charge higher prices. The aspiring new entrants are armed with much newer capacities and are hungry for a share in the market can ratchet your investment in keeping you in the market. The offered substitutes can just drive customers away.

Porter has suggested tactics designed in reshaping these forces for your organization's favor. In neutralizing the power of the supplier, specifications of your organizations should be standardized so that shifting to other vendors can be easy. Customer power can be countered by expanding the organization's services so that it will be hard for the customers to leave. In tempering wars established by rivals, organizations should invest heavily with products that are different with that of the rival's. New entrants can be scared away by elevating your organization's fixed costs like increasing your organization's research and development. Threats brought about by the substitutes can be limited by offering products with greater value.

Summary and the Different View - Balanced Scorecard

Sveiby's version of the Balanced Scorecard is the Intangible Assets. For human resource, it should regularly conduct and analysis scan of its strengths, weaknesses, opportunities and threats. The results of this analysis are their tool in the development of its global strategies aiming for global success. When this strategic planning goes international, the organization begin to concern regarding human resource management issues. HR has one of the most critical issues in the organization that need to be addressed in able to compete with the international marketplace. Many aspects of human resource management are affected both by globalization and the differences in national culture. The managerial challenge in a complex international organization was described in terms of harmonizing two opposing forces rather than making two binary either/or choices. Culture is another frame that impacts various aspects of the human resource management (Becker 1999).

For production, it is very important that strategies are well shaped. Shaping strategies are strategies that use positive incentives in mobilizing and focusing thousand of participants to shape a specific desired industry or market. The elements that come together in this strategy are the compelling shaping view in providing focus for the participants of investments, a very power platform that will shape the economic leverage of the participants, and the shaper's sets of acts and assets in communicating conviction and capabilities to potential participants. There are five competitive forces that shape strategy. These are the established rivals; supplier power; customer power; new entrants; and the substitutes. Customers dictate to lower the prices by playing your organization and your rival against one another. Suppliers on the other hand can hinder an organization's profit if they charge higher prices. The aspiring new entrants are armed with much newer capacities and are hungry for a share in the market can ratchet your investment in keeping you in the market. The offered substitutes can just drive customers away (Cesyniene 1999).

Organizations can penetrate the economical fog by developing strategies for growth and basing it in disruptive innovations. Innovations conform to certain patterns and offer an entirely new solution. Innovations adequately perform what is needed of them along with the traditional dimensions of the organizations. It aims to target more the customers and is not initially appealing to the incumbents. Organizations can create an advantage by becoming masters at defining successful innovation patterns and executing it.

Portfolio 4 - Manage Knowledge Workers and Knowledge Based Theory of the Firm

The overview of HR practices in different cultures has brought about trends that were seen in the practices in the United Kingdom, United States, Japan and Lithuania. These differences and some similarities are also reflected on other countries. Human Resource changes have taken place in the UK as a reflection of membership in the European Union (EU) and the change in regulation form the UK government. Other factors such as globalization and strong pressure in cutting operational costs downwards have triggered this change. In the latter part of the year 2000, the US economy is slowing. Though there are a lot of workers available, recruitment has been a continuous challenge especially in areas wherein skills is a shortage. The workforce in the country is continuously being diverse. Organizations are continuing to experiment in variable compensations and high performance systems in enhancing productivity. The changes in HR practices in Japan have seen to be slow and incremental. Japanese organizations are carefully avoiding traumatic breaks from the past. They have a strong sense of corporate obligation in providing jobs, income and security. In Lithuania, the so-called “hard HRM” is being practiced. Further, employees' needs are neglected and maximum benefits are obtained of them. On the other hand, there is a shortage of qualified workers, and the growing completion has urged managers of organizations in shifting their employees' attention as one of the main resources to gain competitive advantage.

REFERENCES

Becker, B.E. (1999). Strategic Human Resource Management in Five Leading Firms. Human Resource Management, Volume 38.

Briscoe, D. and Schuler, R. (2004). International Human Resource Management: Policies and Practices for the Global Enterprise. Routledge, p. 36.

Burns, T. and Stalker, G. M. (1961). The Management of Innovation. UK:, Tavistock.

Cesyniene, R. (2005). The Most Recent Trends and Emerging Values in Human Resource Management: Comparative Analysis. Engineering Economics, no. 4

Gualteri A., Ruffolo M. (2005) “An Ontology-Based Framework for Representing Organizational Knowledge”, In: Proceedings of I-Know 05, Graz, Austria, June 29- July 1, 2005, pages 71-78.

Hagel, J., Brown, J.S. and Davison, L. (2008). Shaping Strategy in a World of Constant Disruption. Harvard Business Review.

Hagel, John. Shaping Strategies. Retrieved January 18, 2010 from www.edgeperspectives.typepad.com

Morton, Linda. Definition of Strategy and Strategic Planning Part 1. Retrieved January 18, 2010 from www.ezinearticles.com

Porter, M. (2008). The Five Competitive Strategies that Shape Strategy. Harvard Business Review.

Roos, G. R. (1997). Intellectual Capital: Navigating in the New Business Landscape. New York: New York University Press,.

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