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Perancangan Organisasi Bahan UAS Genap 2009 / 2010

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1 Perancangan Organisasi Bahan UAS Genap 2009 / 2010
Dendi P. Ishak, MSIE Department of Industrial Engineering University of Indonesia

2 What is change? Organizational Change
Any alterations in the people, structure, or technology of an organization Characteristics of Change Is constant yet varies in degree and direction Produces uncertainty yet is not completely unpredictable Creates both threats and opportunities Managing change is an integral part of every manager’s job.

3 Forces of Change External forces Marketplace
Governmental laws and regulations Technology Labor market Economic changes

4 Forces of Change Internal Forces Changes in organizational strategy Workforce changes New equipment Employee attitudes

5 Forces of Change Internal Forces Changes in organizational strategy Workforce changes New equipment Employee attitudes

6 The Manager as Change Agent
Change Agents People who act as catalysts and assume the responsibility for changing process are called change agents. Types of Change Agents Managers: internal entrepreneurs Nonmanagers: change specialists Outside consultants: change implementation experts Copyright © 2005 Prentice Hall, Inc. All rights reserved.

7 Forces of Change Internal Forces Changes in organizational strategy Workforce changes New equipment Employee attitudes

8 The Change Process Exhibit 13.1
Copyright © 2005 Prentice Hall, Inc. All rights reserved.

9 Three Categories of Change
Exhibit 13.2 Copyright © 2005 Prentice Hall, Inc. All rights reserved.

10 Types of Change Structural Technological Workforce Organizational
Changing the organization’s structure or its structural components Technological Adopting new equipment or operating methods that displace old skills and require new ones Automation: replacing certain tasks done by people with machines Computerization Workforce Changing attitudes, expectations, perceptions, and behaviors of the workforce Organizational development (OD) Techniques or programs to change people and the nature and quality of interpersonal work relationships. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

11 Managing Resistance to Change
Why People Resist Change? The ambiguity and uncertainty that change introduces The comfort of old habits A concern over personal loss of status, money, authority, friendships, and personal convenience The perception that change is incompatible with the goals and interest of the organization Copyright © 2005 Prentice Hall, Inc. All rights reserved.

12 Managerial Actions to Reduce Resistance to Change
Education and Communication Participation Facilitation and Support Negotiation Manipulation and Co-optation Coercion Exhibit 13.4 Copyright © 2005 Prentice Hall, Inc. All rights reserved.

13 Issues in Managing Change (cont’d)
Changing Organizational Cultures Cultures are naturally resistant to change. Conditions that facilitate cultural change: The occurrence of a dramatic crisis Leadership changing hands A young, flexible, and small organization A weak organizational culture Copyright © 2005 Prentice Hall, Inc. All rights reserved.

14 The Road to Cultural Change
Conduct a cultural analysis to identify cultural elements needing change. Make it clear to employees that the organization’s survival is legitimately threatened if change is not forthcoming. Appoint new leadership with a new vision. Initiate a reorganization. Introduce new stories and rituals to convey the new vision. Change the selection and socialization processes and the evaluation and reward systems to support the new values. Exhibit 13.5 Copyright © 2005 Prentice Hall, Inc. All rights reserved.

15 Decision Making Decision The Decision-Making Process
Making a choice from two or more alternatives. The Decision-Making Process Identifying a problem and decision criteria and allocating weights to the criteria. Developing, analyzing, and selecting an alternative that can resolve the problem. Implementing the selected alternative. Evaluating the decision’s effectiveness. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

16 The Decision-Making Process
Exhibit 6.1 Copyright © 2005 Prentice Hall, Inc. All rights reserved.

17 Step 1: Identifying the Problem
A discrepancy between an existing and desired state of affairs. Characteristics of Problems A problem becomes a problem when a manager becomes aware of it. There is pressure to solve the problem. The manager must have the authority, information, or resources needed to solve the problem. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

18 Step 2: Identifying Decision Criteria
Decision criteria are factors that are important (relevant) to resolving the problem. Costs that will be incurred (investments required) Risks likely to be encountered (chance of failure) Outcomes that are desired (growth of the firm) Step 3: Allocating Weights to the Criteria Decision criteria are not of equal importance: Assigning a weight to each item places the items in the correct priority order of their importance in the decision making process. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

19 Step 4: Developing Alternatives
Identifying viable alternatives Alternatives are listed (without evaluation) that can resolve the problem. Step 5: Analyzing Alternatives Appraising each alternative’s strengths and weaknesses An alternative’s appraisal is based on its ability to resolve the issues identified in steps 2 and 3. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

20 Step 6: Selecting an Alternative
Choosing the best alternative The alternative with the highest total weight is chosen. Step 7: Implementing the Decision Putting the chosen alternative into action. Conveying the decision to and gaining commitment from those who will carry out the decision. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

21 Step 8: Evaluating the Decision’s Effectiveness
The soundness of the decision is judged by its outcomes. How effectively was the problem resolved by outcomes resulting from the chosen alternatives? If the problem was not resolved, what went wrong? Copyright © 2005 Prentice Hall, Inc. All rights reserved.

22 Making Decisions Rationality
Managers make consistent, value-maximizing choices with specified constraints. Assumptions are that decision makers: Are perfectly rational, fully objective, and logical. Have carefully defined the problem and identified all viable alternatives. Have a clear and specific goal Will select the alternative that maximizes outcomes in the organization’s interests rather than in their personal interests. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

23 Assumptions of Rationality
Exhibit 6.6 Copyright © 2005 Prentice Hall, Inc. All rights reserved.

24 Making Decisions (cont’d)
Bounded Rationality Managers make decisions rationally, but are limited (bounded) by their ability to process information. Assumptions are that decision makers: Will not seek out or have knowledge of all alternatives Will satisfice—choose the first alternative encountered that satisfactorily solves the problem—rather than maximize the outcome of their decision by considering all alternatives and choosing the best. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

25 Influences on Decision Making
Escalation of Commitment Increasing or continuing a commitment to previous decision despite mounting evidence that the decision may have been wrong. The Role of Intuition Intuitive decision making Making decisions on the basis of experience, feelings, and accumulated judgement. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

26 What is Intuition? Exhibit 6.7
Source: Based on L.A. Burke and M.K. Miller. “Taking the Mystery Out of Intuitive Decision Making.” Academy of Management Executive. October pp. 91–99. Exhibit 6.7 Copyright © 2005 Prentice Hall, Inc. All rights reserved.

27 Problems and Decisions
Structured Problems Involve goals that clear. Are familiar (have occurred before). Are easily and completely defined—information about the problem is available and complete. Programmed Decision A repetitive decision that can be handled by a routine approach. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

28 Types of Programmed Decisions
A Policy A general guideline for making a decision about a structured problem. A Procedure A series of interrelated steps that a manager can use to respond (applying a policy) to a structured problem. A Rule An explicit statement that limits what a manager or employee can or cannot do in carrying out the steps involved in a procedure. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

29 Policy, Procedure, and Rule Example
Accept all customer-returned merchandise. Procedure Follow all steps for completing merchandise return documentation. Rules Managers must approve all refunds over $50.00. No credit purchases are refunded for cash. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

30 Problems and Decisions (cont’d)
Unstructured Problems Problems that are new or unusual and for which information is ambiguous or incomplete. Problems that will require custom-made solutions. Nonprogrammed Decisions Decisions that are unique and nonrecurring. Decisions that generate unique responses. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

31 Types of Problems, Types of Decisions, and Level in the Organization
Exhibit 6.8 Copyright © 2005 Prentice Hall, Inc. All rights reserved.

32 Decision-Making Conditions
Certainty A ideal situation in which a manager can make an accurate decision because the outcome of every alternative choice is known. Risk A situation in which the manager is able to estimate the likelihood (probability) of outcomes that result from the choice of particular alternatives. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

33 Decision-Making Conditions
Uncertainty Limited or information prevents estimation of outcome probabilities for alternatives associated with the problem and may force managers to rely on intuition, hunches, and “gut feelings”. Maximax: the optimistic manager’s choice to maximize the maximum payoff Maximin: the pessimistic manager’s choice to maximize the minimum payoff Minimax: the manager’s choice to minimize his maximum regret. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

34 Decision-Making Styles
Dimensions of Decision-Making Styles Ways of thinking Rational, orderly, and consistent Intuitive, creative, and unique Tolerance for ambiguity Low tolerance: require consistency and order High tolerance: multiple thoughts simultaneously Copyright © 2005 Prentice Hall, Inc. All rights reserved.

35 Decision-Making Styles (cont’d)
Types of Decision Makers Directive Use minimal information and consider few alternatives. Analytic Make careful decisions in unique situations. Conceptual Maintain a broad outlook and consider many alternatives in making long- term decisions. Behavioral Avoid conflict by working well with others and being receptive to suggestions. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

36 Decision-Making Styles
Source: S.P. Robbins and D.A. DeCenzo, Supervision Today. 2nd ed. (Upper Saddle River, NJ: Prentice Hall, 1998). p. 166. Exhibit 6.12 Copyright © 2005 Prentice Hall, Inc. All rights reserved.

37 Decision Making for Today’s World
Guidelines for making effective decisions: Know when it’s time to call it quits. Practice the five “whys”. Be an effective decision maker. Habits of highly reliable organizations (HROs) Are not tricked by their success. Defer to the experts on the front line. Let unexpected circumstances provide the solution. Embrace complexity. Anticipate, but also anticipate their limits. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

38 Characteristics of an Effective Decision-Making Process
It focuses on what is important. It is logical and consistent. It acknowledges both subjective and objective thinking and blends analytical with intuitive thinking. It requires only as much information and analysis as is necessary to resolve a particular dilemma. It encourages and guides the gathering of relevant information and informed opinion. It is straightforward, reliable, easy to use, and flexible. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

39 Overview of Managerial Decision Making
Exhibit 6.14 Copyright © 2005 Prentice Hall, Inc. All rights reserved.

40 THE FIRM AND ITS ENVIRONMENT
The physical system of a firm is an open system in that it interfaces with its environment Firms take resources from their environments, transforms these resources into products and services, and return the transformed resources to the environment Figure 2.1 shows this flow of resources from the environment, through the firm, and back to the environment The flow of physical resources is at the bottom and the flow of conceptual resources is at the top

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42 The General Systems Model of the Firm
Figure 2.1 shows three flows: The Physical Resource Flow: includes personnel, material, machines, and money The Conceptual Resource Flow: The arrows in the upper part of the figure show data, information, and decision-related information. At right, a 2-way flow of data and information that connects the firm to its environment The Firm's Control Mechanism: The elements that enable the firm to operate as a closed-loop system are shown in the upper portion of the diagram

43 Environmental elements exist outside the firm and have a direct or indirect influence on it.

44 Environmental Resource Flows
The firm is connected to its environmental elements through resource flows, including: information flowing from customers; materials flowing to customers; money flowing to stockholders; machinery flowing from suppliers; personnel flowing from suppliers; and the global community and labor unions Less frequent flows include: the money flow from the government, the material flow to suppliers, and the personnel flow to competitors

45 COMPETITIVE ADVANTAGE
In the IS field, competitive advantage refers to the use of information to gain marketplace leverage Porter argues that firms achieve competitive advantage by providing one of the following: products and services at a lower price, higher quality products and services, or meeting the special needs of certain market segments An important point to recognize is that the firm’s managers use both conceptual and physical resources to meet the firm’s strategic objectives

46 Porter’s Value Chains Porter argued that firm’s opportunities to create competitive advantage occur at different steps in the value chain (Figure 2.3) The Margin is the value of the firm’s products and services less their costs, as perceived by the firm’s customers The value chain is made of the primary and support activities that contribute to a firm’s margin value. Increasing that marginal value is the objective of the chain model Firms can create value by performing activities, which Porter calls value activities

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49 CHALLENGES FROM GLOBAL COMPETITORS
The biggest players in today’s global marketplace are multinational corporations (MNCs) Information processing and communications-based coordination are especially crucial for an MNC due to the scale and geographic dispersal of their business activities Coordination, in particular, has become a key to achieving competitive advantage in a global marketplace

50 INFORMATION MANAGEMENT
A firm’s information resources consist of: Computer hardware Computer software Information specialists Users Facilities Databases Information Achieving competitive advantage through the use of information requires the effective management of these resources, otherwise known as information management

51 The Dimensions of Information
Information can be viewed as having four basic dimensions that contribute to information value: Relevancy: information is relevant when it pertains to the problem at hand Accuracy: information has value when it is accurate Timeliness: Information should be available for problem solving before crisis situations develop or opportunities are lost Completeness: information should be available to present a complete picture of a problem or a solution

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55 THE TRANSACTION PROCESSING SYSTEM
This term TPS is used to describe the IS that gathers data describing the firm’s activities, transforms the data into information, and makes the information available to users both inside and outside the firm Figure 8.1 is a model of a TPS where data is gathered from the firm’s physical system and environment, and entered into a database Data processing software transforms the data into information for the firm’s management and for individuals and organizations in the firm’s environment

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62 Two Kinds of Knowledge Knowledge is intangible, dynamic, and difficult to measure, but without it no organization can survive. Tacit: or unarticulated knowledge is more personal, experiential, context specific, and hard to formalize; is difficult to communicate or share with others; and is generally in the heads of individuals and teams. Explicit: explicit knowledge can easily be written down and codified. There are two kinds of knowledge: tacit, which is hard to articulate, versus explicit knowledge, which can be written down and codified. How can we transfer tacit knowledge? Through mechanisms of socialization, mentorships, apprenticeships, face-to-face communication. Since knowledge may be an organization's only sustainable competitive advantage, it is very important to capture tacit knowledge. Intranets and help knowledge flow through an organization. Tacit knowledge often moves laterally through informal channels of communication (communities of practice). For example, those groups that hang around the coffee machine -- they are exchanging knowledge, just as the smokers huddled near the entrance to the building at break time. The information that is passed in this way is very important because it is useful for helping people to get their work done more effectively, in part, because nobody is willing to question or think about it very much. Communities of practice must have their place in a comprehensive knowledge management effort. Keep in mind that flows of knowledge are an organization's capacity to learn. They are all you really have.

63 Knowledge Management The move from an industrially-based economy to a knowledge or information- based one in the 21st Century demands a top-notch knowledge management system to secure a competitive edge and a capacity for learning. Currently, governments around the world, multinational corporations, and a multitude of companies are interested, even concerned with the concept of knowledge management. Indeed, even individual Canadian provinces have an interest in understanding the flow of knowledge within their confines, trying to become more aware of the structures that exist within their hierarchies. For example, "Prince Edward Island has agreed to become the first world test site for KAM, a new 'Knowledge Assessment Methodology' devised by the U.S. National Research Council in Washington, and coordinated by the Institute of Island Studies. The KAM will assess the capacity of Prince Edward Island to compete to world standards in what pundits have dubbed 'The Knowledge Economy'. As computers shrink our world, distance begins to disappear; the distinction between center and periphery narrows to insignificance. For Prince Edward Island, where small population and a paucity of natural resources have traditionally been economic inhibitors, the Knowledge Economy provides the potential for significant, environmentally benign economic growth." To understand more about the whys of measuring the flow of knowledge in any institution, one must understand more about knowledge. The real change has come from the necessity for less information and more knowledge. There has been a shift from information to knowledge. Shift from bureaucracies to networks. The traditional hierarchical designs that served the industrial era are not flexible enough to harness an organization's full intellectual capability. Shift from training/development to learning. The role of education has become paramount in all organizations, public and private. Shift from local/national to transnational. Organizations can no longer rely purely upon national approaches to maintain their profitable growth. More and more, companies and industries of all types must globalize in order to maximize their profits.

64 Knowledge Management The new source of wealth is knowledge, and not labor, land, or financial capital. It is the intangible, intellectual assets that must be managed. The key challenge of the knowledge-based economy is to foster innovation.

65 The Knowledge Economy The move from an industrially-based economy to a knowledge or information- based one in the 21st Century demands a top-notch knowledge management system to secure a competitive edge and a capacity for learning. Currently, governments around the world, multinational corporations, and a multitude of companies are interested, even concerned with the concept of knowledge management. Indeed, even individual Canadian provinces have an interest in understanding the flow of knowledge within their confines, trying to become more aware of the structures that exist within their hierarchies. For example, "Prince Edward Island has agreed to become the first world test site for KAM, a new 'Knowledge Assessment Methodology' devised by the U.S. National Research Council in Washington, and coordinated by the Institute of Island Studies. The KAM will assess the capacity of Prince Edward Island to compete to world standards in what pundits have dubbed 'The Knowledge Economy'. As computers shrink our world, distance begins to disappear; and the distinctions between center and periphery narrows to insignificance. For Prince Edward Island, where small population and a paucity of natural resources have traditionally been economic inhibitors, the Knowledge Economy provides the potential for significant, environmentally benign economic growth." The real change has come from the necessity for less information and more knowledge. There has been a shift from information to knowledge. Shift from bureaucracies to networks. The traditional hierarchical designs that served the industrial era are not flexible enough to harness an organization's full intellectual capability. Shift from training/development to learning. The role of education has become paramount in all organizations, public and private. Shift from local/national to transnational. Organizations can no longer rely purely upon national approaches to maintain their profitable growth. More and more, companies and industries of all types must globalize in order to maximize their profits.

66 The Knowledge Economy The new source of wealth is knowledge, and not labor, land, or financial capital. It is the intangible, intellectual assets that must be managed. The key challenge of the knowledge-based economy is to foster innovation.

67 The Knowledge Economy The knowledge economy rests on three pillars:
The role that knowledge plays in transactions: it is what is being bought and sold; both the raw materials and the finished goods The concurrent rise in importance of knowledge assets, which transform and add value to knowledge products The emergence of ways to manage these materials and assets, or KM

68 Definitions Designing and installing techniques and processes to create, protect, and use known knowledge. Designing and creating environments and activities to discover and release knowledge that is not known, or tacit knowledge. Articulating the purpose and nature of managing knowledge as a resource and embodying it in other initiatives and programs. An accepted definition of knowledge management does not yet exist, although perspectives on knowledge abound, but there are three important points to keep in mind: 1. Knowledge today is a necessary and sustainable source of competitive advantage. In an era characterized by rapid change and uncertainty, it is claimed that successful organizations are those that consistently create new knowledge, disseminate it through the organization, and embody it in technologies, products, and services. Indeed, several sectors - for example, the financial services, consulting, and software industries -- depend on knowledge as their principal way to create value. Thus knowledge is displacing capital, natural resources, and labor as the basic economic resource. Governments know this all too well. 2. There is general recognition that companies are not good at managing knowledge. They may undervalue the creation and capture of knowledge, they may lose or give away what they possess, they may deter or inhibit knowledge sharing, and they may under-invest in both using and reusing the knowledge they have. Above all, they often do not know what they know. This is probably true of explicit or articulated knowledge: that which can be expressed in words and numbers and can be easily communicated and shared in hard form, as scientific formulas, codified procedures, or universal principles. It is undoubtedly true of tacit or unarticulated knowledge: that which is more personal, experiential, context specific, and hard to formalize; is difficult to communicate or share with others; and is generally in the heads of individuals and teams. 3. Recognizing the potential of knowledge in value creation and the failure to fully exploit it, some corporations have embarked on knowledge management programs. These are explicit attempts to manage knowledge as a resource, in particular: Designing and installing techniques and processes to create, protect, and use known knowledge. Designing and creating environments and activities to discover and release knowledge that is not known. Articulating the purpose and nature of managing knowledge as a resource and embodying it in other initiatives and programs.

69 Do You Really Need KM? Competitive success will be based on how strategically intellectual capital is managed Capturing the knowledge residing in the minds of employees so that it can be easily shared across the enterprise Leveraging organizational knowledge is emerging as the solution to an increasingly fragmented and globally-dispersed workplace Increasingly, senior executives are recognizing that knowledge and learning represent the preeminent source of sustainable advantage in a fast-moving, highly competitive world. They know it is no longer enough to leave critical knowledge sitting passively in the minds of individual employees in a period of radical change. Workforce mobility, falling educational standards, and the rapid rate of business change mean that individuals can no longer be relied upon to provide consistent, comprehensive insight. Instead, the knowledge trapped within the employee base must be leveraged to the organizational level, where it can be accessed, synthesized, augmented, and deployed for the benefit of all. Organizations and individuals must learn rapidly and uniformly across different functions and levels of the organization. The best reason for an organization to develop a knowledge management system is to gain a competitive advantage in the marketplace: by turning intellectual assets into value through innovation. The real differentiator for those leading companies is knowing how to use innovation to create value and ongoing growth.

70 Do You Really Need KM? If your department wants to stop constantly reengineering and downsizing: talented people are assets to be developed for a global 21st Century If you are interested in the Knowledge Grid If you understand that reuse of knowledge saves work, reduces communication costs, and allows a company to take on more projects Partly as a reaction to downsizing, some organizations are now trying to use technology to capture the knowledge residing in the minds of their employees so it can be easily shared across the enterprise. No longer should companies have to worry that employees will walk out the door with valuable knowledge that it no longer has access to. Although many individuals may come and go, their learning is embedded for future use. Leveraging organizational knowledge is emerging as the solution to an increasingly fragmented and globally dispersed workplace. For many of these companies, knowledge management has become the next silver bullet-in effect, the successor to the reengineering and downsizing efforts that marked the last decade. Knowledge cultures are those in which formal attention is paid to what some academics have called the "knowledge grid." It has four categories: "what we know we know; what we know we don't know; what we don't know we know; and what we don't know we don't know." What is needed is a similar mindset about the collection of intellectual assets: it belongs to everyone employed in a particular place, and it has to be shared. This kind of policy saves money right across the board and allows something just as valuable as money to be saved: TIME. Saving time means more work can be generated because you don't have to reinvent the wheel every time a new project is taken on.

71 Organizational Knowledge: Why Is It Important?
Knowledge can be embedded in processes, products, systems, and controls Knowledge can be accessed as it is needed from sources inside or outside the firm It is versatile and can be transferred formally, through training, or informally, by way of workplace socialization It is the essence of the competitive edge! Organizational Knowledge: Why Is It Important? Because it makes money. And that is why it is important to have the knowledge process facilitated by a steady development of a knowledge culture, based on incentives, strong management leadership, that values, shares, and uses knowledge.

72 For Successful Managing of Knowledge
Focus on five tasks: Generating knowledge Accessing knowledge Representing and embedding knowledge Facilitating knowledge Transferring knowledge It is a process of instilling the culture and helping people find ways to share and utilize their collective knowledge.

73 Knowledge Management Enablers
Leadership Knowledge champions, such as CKOs Culture Access Technology Learning Culture Organizational Requirements for leveraging intellectual capital requires attention to what have been recognized as Knowledge Enablers: structures and attributes that must be in place for a successful knowledge management program. Leadership: it is absolutely critical to liberate the creativity of teams, and yet not have chaos. In a sustainable knowledge managed learning organization, leadership is often expressed as the self-confidence to navigate the unknown waters of the future. Culture: the workplace culture is paramount because while management may pay lip service to the value of cooperation and its ability to facilitate organizational knowledge, there is an underlying belief that performance is really driven by "corporate stars" and that internal competition must be in place to attract these superstars since only under-performers can be found in cooperative, team-oriented workplaces. Knowledge tools, controls, and new organizational structures will go far to create a new culture in which informed decision making is valued, but explicit efforts to cultivate that culture are still needed. Knowledge and skills can never substitute for the motivation only an effective organizational culture can provide. Access - Making sure available knowledge provides value and is not stored "just in case." The challenges are to facilitate access to the right content at the right time and place, be content rich and navigation lean, manage regulations and copyrights, and provide flexibility and ease of access. Technology - Deploying computing tools that link people enterprise-wide; support collaboration, including navigation and search engines and data storage technologies; and link people to the global resources of the organization. Embedding a learning attitude and placing value on competency development. Historically, more training expenditures have gone to developing cognitive skills than to developing motivated creativity. Those days are gone now. Currently, the goal is to see intelligent people using innovation to create knowledge out of information. To do so, there needs to be a corresponding culture that values organizational behaviors and supports an environment of trust and collaboration. Knowledge management programs need all enabling factors, and not just one or two, if there is to be any real success.

74 More on the Importance of Corporate Culture
Changing the culture is imperative. To create a climate in which employees volunteer their creativity and expertise, managers need to look beyond the traditional tools at their disposal: finding ways to build trust and develop fair process. That means getting the gatekeepers to facilitate the flow of information rather than hoard it. And offering rewards and incentives. Buckman Laboratories' Koskiniemi reports: "Successful knowledge sharing is 90 percent cultural, 5 percent tools and 5 percent magic. All the technology and tools in the world won't make you a knowledge-based organization if you do not establish a culture that believes in sharing." To encourage knowledge sharing, some companies are creating central knowledge repositories. Organizations must offer a high level of psychological safety and capacity for openness. Rewards and incentives signal what behaviors and outcomes are most valued by management. It should not be surprising that knowledge accumulation and sharing are not valued. Management sends strong signals through its compensation policies: different roles are perceived of value according to their allocated compensation. So be careful about sending mixed signals, and keep in mind that culture is more than just compensation, and it is responsive to influences other than paychecks. Management sends signals about what is important through its recruiting priorities, promotions, and, possibly more than anything, through its own behavior. These deeply embedded cultural assumptions are significant.

75 In Successful KM Programs
Information is widely disseminated throughout the organization. Wherever it is needed, it is accessible. Accessible at a fast rate of speed. Virtual communities of practice share what is known in a global fashion, independent of time zones and other geographic limitations. Business boundaries are broad, and often virtual in nature. Collaboration to support continuous innovation and new knowledge creation.

76 What Is Communication? Communication
The transfer and understanding of meaning. Transfer means the message was received in a form that can be interpreted by the receiver. Understanding the message is not the same as the receiver agreeing with the message. Interpersonal Communication Communication between two or more people Organizational Communication All the patterns, network, and systems of communications within an organization Copyright © 2005 Prentice Hall, Inc. All rights reserved.

77 Four Functions of Communication
Control Motivation Emotional Expression Information Functions of Communication Copyright © 2005 Prentice Hall, Inc. All rights reserved.

78 Functions of Communication
Control Formal and informal communications act to control individuals’ behaviors in organizations. Motivation Communications clarify for employees what is to done, how well they have done it, and what can be done to improve performance. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

79 Functions of Communication (cont’d)
Emotional Expression Social interaction in the form of work group communications provides a way for employees to express themselves. Information Individuals and work groups need information to make decisions or to do their work. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

80 Interpersonal Communication
Message Source: sender’s intended meaning Encoding The message converted to symbolic form Channel The medium through which the message travels Decoding The receiver’s retranslation of the message Noise Disturbances that interfere with communications Copyright © 2005 Prentice Hall, Inc. All rights reserved.

81 The Interpersonal Communication Process
Exhibit 11.1 Copyright © 2005 Prentice Hall, Inc. All rights reserved.

82 Interpersonal Communication Methods
Face-to-face Telephone Group meetings Formal presentations Memos Traditional Mail Fax machines Employee publications Bulletin boards Audio- and videotapes Hotlines Computer conferencing Voice mail Teleconferences Videoconferences Copyright © 2005 Prentice Hall, Inc. All rights reserved.

83 Interpersonal Communication Barriers
Filtering National Culture Emotions Language Interpersonal Communication Information Overload Defensiveness Copyright © 2005 Prentice Hall, Inc. All rights reserved.

84 Overcoming the Barriers to Effective Interpersonal Communications
Use Feedback Simplify Language Listen Actively Constrain Emotions Watch Nonverbal Cues Copyright © 2005 Prentice Hall, Inc. All rights reserved.

85 Active Listening Behaviors
Source: Based on P.L. Hunsaker, Training in Management Skills (Upper Saddle River, NJ: Prentice Hall, 2001). Exhibit 11.3 Copyright © 2005 Prentice Hall, Inc. All rights reserved.

86 Types of Organizational Communication
Formal Communication Communication that follows the official chain of command or is part of the communication required to do one’s job. Informal Communication Communication that is not defined by the organization’s hierarchy. Permits employees to satisfy their need for social interaction. Can improve an organization’s performance by creating faster and more effective channels of communication. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

87 Communication Flows Lateral Diagonal Upwa r d Downwa r d
Copyright © 2005 Prentice Hall, Inc. All rights reserved.

88 Information Technology
Benefits of Information Technology (IT) Increased ability to monitor individual and team performance Better decision making based on more complete information More collaboration and sharing of information Greater accessibility to coworkers Copyright © 2005 Prentice Hall, Inc. All rights reserved.

89 Information Technology (cont’d)
Networked Computer Systems Linking individual computers to create an organizational network for communication and information sharing. Instant messaging Voic Fax machines Electronic Data Exchange (EDI) Teleconferencing Videoconferencing Copyright © 2005 Prentice Hall, Inc. All rights reserved.

90 Information Technology (cont’d)
Types of Network Systems Intranet An internal network that uses Internet technology and is accessible only to employees. Extranet An internal network that uses Internet technology and allows authorized users inside the organization to communicate with certain outsiders such as customers and vendors. Wireless capabilities Copyright © 2005 Prentice Hall, Inc. All rights reserved.

91 How IT Affects Organization
Removes the constraints of time and distance Allows widely dispersed employees to work together. Provides for the sharing of information Increases effectiveness and efficiency. Integrates decision making and work Provides more complete information and participation for better decisions. Creates problems of constant accessibility to employees Blurs the line between work and personal lives. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

92 Current Communication Issues
Being connected versus being concerned Managing Internet gripe sites as a valuable resource for unique insights into the organization. Employee complaints (“hot-button” issues) Customer complaints Responding to Internet gripe sites Recognized them as a valuable source of information. Post messages that clarify misinformation. Take action to correct problems noted on the site. Set up an internal gripe site. Continue to monitor the public gripe site. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

93 Current Communication Issues (cont’d)
Managing the Organization’s Knowledge Resources Build online information databases that employees can access. Create “communities of practice” for groups of people who share a concern, share expertise, and interact with each other. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

94 Communication and Customer Service
Communicating Effectively with Customers Recognize the three components of the customer service delivery process: The customer The service organization The service provider Develop a strong service culture focused on the personalization of service to each customer. Listen and respond to the customer. Provide access to needed service information. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

95 “Politically Correct” Communication
Do not use words or phrases that stereotype, intimidate, or offend individuals based on their differences. However, choose words carefully to maintain as much clarity as possible in communications. Copyright © 2005 Prentice Hall, Inc. All rights reserved.


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