Sample: Knowledge Organization
Karl-Erik Sveiby believes that the age of living in a belief that businesses are dictated by Industrial way, is outdated. We are living in a time when services constitute More than half of both GNP and employment. The industry today runs primarily on the back of knowledge of the prime, working, cautiously hired employee.
Keeping in mind the power-shift from financial flow to knowledge flow, the entire work culture of an organization is changed. Since the workers are more technically informed, the managers have had to take a backseat. Workers are the ones who are in communication with the customers and create revenue by providing solutions; they know what the customer wants and keeps them happy by giving them what they want and knowledge increases by sharing. So, it is a two way communication between the workers and customers they share knowledge and arrive at solutions.
Basically, the power that a manager enjoyed earlier has changed totally, because the industry is knowledge driven and workers have more technical knowledge than the managers, hence they manage the space where knowledge is created rather than the knowledgeable workers themselves. They have to participate more and keep abreast with the happenings of the organization in order to fit in. This is a breakaway from the managers who would manage people with remote controls.
"Knowledge is a fluid mix of framed experience, values, contextual information and expert insight that provides a framework for evaluating and incorporating new experiences and information. It originates and is applied in the minds of knowers” - Davenport and Prusak in their book, Working Knowledge
What the above observation by Davenport and Prusak say is that: Knowledge organization is nothing but the technical knowledge of how a system works, to work in it and find solutions through it. Hence like Sveiby Davenport and Prusak believe that managers who say they lead a knowledge organization without the technical knowhow of the operations is a threat to the knowledge organization because of his lack of experience and learning capabilities. A knowledge organization stands on the shoulders of workers who generate revenue to their company with the knowledge they possess.