KNOWLEDGE MANAGEMENT AND ORGANIZATIONAL EFFECTIVENESS

(A SURVEY OF SOME SELECTED COMMERCIAL BANKS IN PORT-HARCOURT METROPOLIS RIVERS STATE)

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ABSTRACT

The study examines the relationship between knowledge management and organizational effectiveness. The main objective is to examine knowledge management and organizational effectiveness. The specific objectives are to examine the relationship between knowledge dissemination and organizational effectiveness, to examine the relationship knowledge application and organizational effectiveness, to examine the relationship organizational memory on the efficiency of business and to examine the relationship knowledge creation and organizational effectiveness. The descriptive research method was employed since the study was to ascertain knowledge management and organizational effectiveness. Based on this, the case study approach was adopted. The population of the study was made to be one hundred (100), the reason for this choice is that concrete and adequate information relating to the study under investigation resides among the people randomly selected. The Taro Yemen’s Formula was used to determine the sample size of 80. Based on the findings of the study, summary, conclusion and recommendations were made that Commercial Banks should not be structured hierarchically but a matrix structure that promotes easy communication processes, which in turn fast-tracks knowledge dissemination should be adopted, commercial Banks should develop home grown ICT programmes that addresses their peculiar knowledge application needs instead of adopting any kind of KM tool which does not confer strategic and cost benefits to the organization, top management of commercial Banks in Nigeria should leverage ICT to reduce financial, time and management error cost in the process installing effective knowledge management system in their organization.

 

CHAPTER 1

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In today’s global market where market dynamics has intensified competition, organizations are continuously craving for superior and strategic competitive advantage. It has therefore become fashionable to leverage on sound, current and relevant time-tested market and operational information in the development and implementation of both organizational goals and its strategy. Furthermore, to build and sustain a viable organization that can stand the test of time, it is not just important but strategic to understand clients and customers profile, competition and market demands, regulation and legal needs and rationale for internal process choices. However, generating data for and from the situations above is not sufficient to guarantee the sustained positive performance of an organization but the judicious organization-wide application of such data.

Corroborating this view is Coyle (1999), who stated that in the old economy, firms had a choice between three generic strategies in their attempts to develop a competitive advantage, namely cost leadership, market differentiation, and niche orientation. In the new economy which is characterized by properties such as globalization, intangibility, and inter-connectivity, business organizations are required to face new challenges. In particular, the globalization of business activity coupled with the increasingly rapid development and diffusion of technology gradually led to an erosion of traditional sources of competitive advantage, requiring firms to clearly understand the changing nature of competition and adopt complementary and/or supplementary strategic approaches. Furthermore, it is commonly said that a business must either evolve or dissolve. To evolve therefore requires that a business must create an internal platform that can sufficiently supply it with relevant and current information from its environment. This information it must adequately disseminate among its staff members with the intention of improving their ability to adapt to the changing environment in order to remain afloat despite the market situations.

While the situation above appears to be obvious, there is a call of interest to the understanding of the operations and performance of SMEs through the study of the availability and the process of the management of their internal intangible resource. Jackson, Hitt&DeNisi (2003) argue that in any competitive landscape, intangible resources are likely to produce a competitive advantage, among which human capital is usually the most important because it is the most difficult to imitate. Walters, Halliday and Glaser (2002), states that knowledge is considered to be the only strategic asset which increases with use rather than diminishing. The competitive edge of individuals, enterprises, and even nations has increasingly become dependent on their ability to apply knowledge and leverage it in a continuous way. In accordance with the knowledge-based view of the firm, managing knowledge-based resources has become the key for sustaining organizational viability..

According to Mohr and Zoghi (2006) organizational effectiveness is defined in many ways depending on the organizations goals and objectives in today’s market and also is dependent on the industry. From the foregoing therefore, the study is intended to examine the relationship between knowledge management and organizational effectiveness.

1.2 STATEMENT OF THE PROBLEM

It is widely acknowledged in management theory and practice that human resource is the single most important factor in organizational resource mix, hence; the focus on the diverse aspect of human resource. One critical element every employee brings on their job is the general knowledge which they acquired from diverse sources which in some cases may be inconsistent with organizational demand. Organizations are therefore faced with challenge of ensuring that their employees acquire the right knowledge and transmit same to their job.

To remain competitive and growth driven, organizations must develop and maintain a reservoir (memory) of their strategic moves that has helped them in the past. This requires certain infrastructure and in some cases retaining of certain senior employees to provide mentorship and knowledge transmission to junior employees. Therefore, when the needed infrastructures for knowledge storage are absent or there is an abrupt termination of knowledge reserve and transmission process, the organization’s overall performance may be endangered. The problem of this study is to examine the effects knowledge management can have on business performance.

1.3 OBJECTIVES OF THE STUDY

The general objective of this study is to examine the relationship between knowledge management and organizational effectiveness. The specific objectives are;

  1. To examine the relationship between knowledge dissemination and organizational effectiveness.
  2. To examine the relationship knowledge application and organizational effectiveness.

iii. To examine the relationship organizational memory on the efficiency of business

  1. To examine the relationship knowledge creation and organizational effectiveness.

1.4 RESEARCH QUESTIONS

The following questions will provide guide to this study;

  1. What is the relationship between knowledge dissemination and organizational effectiveness?
  2. What is the relationship knowledge application and organizational effectiveness?

iii. What is the relationship organizational memory and organizational effectiveness?

  1. What is the relationship knowledge creation and organizational effectiveness?

1.5 SIGNIFICANCE OF THE STUDY

The outcome of this study is expected to provide invaluable benefit to a wide range of people. First, to business owners in Port Harcourt; it will provide them with an up-to date strategic implications of knowledge management. This will encourage their investment in knowledge acquisition, storage and dissemination while enhancing the operational capabilities of their employees. It will also help them to identify the strategic niche effective knowledge management confers. To employees, this study will help them appreciate the need and job implication of self-development which is a significant platform for knowledge acquisition and by so doing, improve their skills for better performance on their jobs. To future researchers and scholars, this study will serve as both a reference material and guide while providing current and relevant information.

1.6 SCOPE OF THE STUDY

This study focused on relationship between knowledge management organizational effectiveness. The dimensions of knowledge management of interest to this study are; knowledge dissemination, knowledge application, knowledge storage and organizational memory while the dimensions of business performance under study are financial, market competitiveness, organizational efficiency and innovativeness. The study was carried on some selected commercial Banks in Port Harcourt metropolis Rivers State which include First Bank PLC, Union Bank PLC and Eco Bank PLC. The unit scope will cover all management staff of the selected organizations

1.7 LIMITATIONS OF THE STUDY

In carrying out an investigation of this native the researcher must of necessity be faced the following constraint.

Firstly, the time constraint’s the time frame provision for this study was short.

Secondly, financial constraints. Usually, a study of this nature involved some level of expenditure therefore, finance was also a limiting factor.

Thirdly, poor response from the respondent and inability to access the entire population of the study. In the next segment significance of the study will be discussed. Lastly, poor measurement instrument.

1.8 DEFINITION OF TERMS

Effectiveness: The degree to which something is successful in producing a desired result; success.

Organization: An organized group of people with a particular purpose, such as a business or government department.

Organizational Effectiveness: The efficiency with which an association is able to meet its objectives. This means an organization that produces a desired effect or an organization that is productive without waste.

Knowledge Management: It is the process of identifying, capturing, organizing and disseminating the intellectual assets that are critical to the organization’s long-term performance.

 

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