Importance of Knowledge Management in Organizational Management

This article explains the importance of knowledge management in an organization and the tools used in implementing it. It discusses the five reasons why an organization should have a knowledge management strategy, including improving product quality, reducing costs, increasing returns on investment, providing a foundation for growth, and making wise decisions. The article also discusses relevant knowledge management theories and provides credible and reliable examples of organizations that have successfully implemented knowledge management.

Knowledge management
Name
Institution

1
Olubunmi, Funmilola O. Knowledge Management as an Important Tool in
Organizational Management: A Review of Literature. Library Philosophy and Practice, 2015,
PP.60-120
Purpose of the article and main points
Knowledge management can be defined as proper handling of organizations resources
and information1. The purpose of this article is to explain the importance of knowledge
management in an organization and the tools used in implementing it. The main points discussed
in this article includes the five reasons why an organization should have a knowledge
management strategy. One of these reasons is that knowledge management helps in improving
the quality of products and services2. This article says that proper management of organizations
knowledge resources makes one more innovative which is the key thing of improving products
and services being offered.
Another reason why organization should have knowledge management strategy is that it
helps in cost reduction3. An effective strategy assists an organization in managing their
1 Ologbo Andrew C & Khalil, Md N. Knowledge Management Processes and Firm Innovation
Capability: A Theoretical Model. Asian Social Science, Vol. 11, No. 18, 2015, PP. 30-100
2 Funmilola, Olubunmi O. Knowledge Management as an Important Tool in
Organizational Management: A Review of Literature. Library Philosophy and Practice, 2015,
PP.60-120
3 Hassan, Mohammad A. Sport Knowledge Management and Its Role in Promoting the
Electronic Marketing Decision Making Process. Asian Social Science, Vol. 10, No. 14, 2014,
PP.100-150

2
knowledge system more effectively hence reducing inefficiencies which in turn helps in cost
saving. This strategy shows where the knowledge is used inadequately and where improvements
are needed. Also, the knowledge strategy enables the organization to increase returns on
investment4. This is because effective strategy is able to increase on the quality of products and
services being offered hence increasing consumers purchasing power. Increase in consumer
purchasing power helps an organization in increasing its profits.
Moreover, effective knowledge strategy gives an organization a foundation to grow on.
Efficient knowledge management gives an organization an opportunity to grow and expand new
markets. Growing and expanding of businesses requires fast learning and adaptation of changes
which is easier with effective knowledge systems in position. Also, with effective knowledge
system, organization can quick make wise decisions ahead of completion because people have
the right knowledge tools they need and they are available at whatever time of need.
Theories
One of the knowledge management theories relevant to this article was that it requires
clarity of roles. This theory states that people gather their key influence of roles from actor
network theory which concerns the making of facts and knowledge5. Another theory stated in
4 Ramanigopal, C. Knowledge Management for the Oil and Gas Industry - Opportunities and
Challenges. Advances in Management, Vol. 6, No. 8, 2013, PP. 70-120
5 Bernal, Cesar A & Fracica, German. Knowledge Management and Organizational Activity
Results in a Sample of Companies in Bogota. Public Administration Research, Vol. 2, No. 1,
2013, pp. 60-90

3
this article is that efficient knowledge sharing entails the use of a common language. Having a
common language provides a platform whereby all individuals understand what is happening
within the organization. Knowledge sharing becomes easier if all individuals within the
organization speaks common language.
Moreover, efficient knowledge sharing requires a strong knowledge sharing culture. This
is also another knowledge management theory discussed in this article. One of the important
factors of a successful knowledge sharing in a company is the presence of organizational culture
which supports it6. He also argued that, culture is one of the obstacles to effective knowledge
sharing. Also, efficient knowledge sharing requires presence of trust between the parties. Trust is
important in the knowledge sharing and also in the organization for it ensures success of the
business.
Credibility
From what I have learnt in this article, I can say that it is well researched and credible.
This article gives clear definition of the knowledge management and its main characteristics. It
also defines the tools an organization can use to implement the knowledge management strategy.
This article can therefore be useful to an organization having doubts in the implementation of
this system. This article is also credible because it explains the importance of having knowledge
management within the organization. This article would therefore help the organization to see the
importance of having this system in the business operations7. The article is also credible because
6 Petter, Gottschalk. Knowledge Management Strategy in Professional Service Firms. Advances
in Management, Vol. 7, No. 3, 2014, pp.90-130

4
it explains theories of the knowledge sharing and how the organization should ensure its
efficiency.
Also, I can say this article is well researched because the information given about the
knowledge management makes a lot of sense. The article provides various examples of
organizations which has adopted knowledge management and how it has helped them to grow.
One of these organization is Woolworths. This is one of the organization which offers quality
products to its customers8. The use of knowledge management has also enabled Woolworths
expand new markets across the world. From the examples given and what I see in those
organizations mentioned, it is true that the article is well researched and it’s credible.
Reliability
From what I have seen, the information given in this article is liable and there is no
biased evidence given. The information is liable because the importance of having knowledge
management in the business operations are evident in the organizations given as an example.
One of the organization which uses this knowledge management is the west farmers. The
7Malgeri, Jack. Enhancing the Knowledge Management Capabilities of Federal Agencies:
Implementation of Effective Knowledge Management Can Improve Performance in Government
Agencies. The Public Manager, Vol. 39, No. 3, 2010, pp.90-140
8Verma, Shivani & Sharma, Ritu. Knowledge Management Enablers and Process Capabilities as
Predictors of Organizational Performance: A Study of an Indian Public Sector (a Power
Generation Company). International Journal of Education and Management Studies, Vol. 5, No.
4, 2015, pp.40-70

5
knowledge management has enabled this company to improve its operations and increase
profitability hence making it to be one of the major contributors to the government’s revenue.
From these examples, I am convinced that the information in this article about knowledge
management is liable. Also, there is no biased evidence because what is discussed in this article
is what happens in real life of these organizations.
Influence
This article has influenced my thinking about the knowledge management because at first
I thought that finding ways to introduce the system would be difficult. However, I have learnt
that having a common language within an organization provides easier ways of achieving
efficient knowledge sharing. Also, I thought that having this knowledge management would give
the organization hard time of motivating and requesting people to adapt and share it. It is evident
from the article that having an organization culture which supports this system makes it easier
for people to adapt to it. I also thought that aligning knowledge management with goals and
objectives would be challenging for the organization. This article confirmed to me that efficient
system requires clarity of roles and with these the goals of the organization would automatically
be achieved.
Therefore, the information and evidences provided in this article have made me have
positive reactions to it. This is because the article is well researched and it has improved my
learning skills. Another thing which has made me have positive reaction in this article is that it
provides goods reasons for implementing knowledge management strategy and the organizations
using the system.

6
References
Andrew, Ologbo C & Md, Khalil N. Knowledge Management Processes and Firm Innovation
Capability: A Theoretical Model. Asian Social Science, Vol. 11, No. 18, 2015, PP. 30-100
Cesar, Bernal A & German, Fracica. Knowledge Management and Organizational Activity
Results in a Sample of Companies in Bogota. Public Administration Research, Vol. 2, No. 1,
2013, pp. 60-90
Gottschalk, petter. Knowledge Management Strategy in Professional Service Firms. Advances
in Management, Vol. 7, No. 3, 2014, pp.90-130

7
Jack, Malgeri. Enhancing the Knowledge Management Capabilities of Federal Agencies:
Implementation of Effective Knowledge Management Can Improve Performance in Government
Agencies. The Public Manager, Vol. 39, No. 3, 2010, pp.90-140
Mohammad, Hassan, A. Sport Knowledge Management and Its Role in Promoting the
Electronic Marketing Decision Making Process. Asian Social Science, Vol. 10, No. 14, 2014,
PP.100-150
Olubunmi, Funmilola O. Knowledge Management as an Important Tool in
Organizational Management: A Review of Literature. Library Philosophy and Practice, 2015,
PP.60-120
Ramanigopal, C. Knowledge Management for the Oil and Gas Industry - Opportunities and
Challenges. Advances in Management, Vol. 6, No. 8, 2013, PP. 70-120
Shivani, Verma & Ritu, Sharma. Knowledge Management Enablers and Process Capabilities as
Predictors of Organizational Performance: A Study of an Indian Public Sector (a Power
Generation Company). International Journal of Education and Management Studies, Vol. 5, No.
4, 2015, pp.40-70