June 09, 2012

The Impact of Knowledge Management on Managing Performance in Organisations

Organisations have been recently faced with daunting challenges like never before, and one of them is the tough competition in their market place, therefore they had to find new strategies to sustain their success, and build high performance work systems within their companies. In doing so, those successful organisations had to learn how they could improve their performance on the micro and macro levels.

As a result, this has led to creating new knowledge and the diffusion of this knowledge throughout the entire organisation. This process could be represented in a cycle where new knowledge is created and attained in the attempt and efforts of improving that performance; in return, this knowledge will feed into the performance and will therefore improve it, and so forth, the cycle restarts back again.

As we learned previously from Deming and Senge, to apply this cycle, organisations must create a safe learning environments, and build effective learning systems where people share their experience and knowledge, and building a culture where people are encouraged to propose new innovative and creative ideas, above that all, top management must be committed to the aforementioned actions in order to create that knowledge, store it, share it, and manage it effectively.

knowledge-performance cycle


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