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Journal of Advanced
Research in Management
(IJARM), ISSNRESEARCH
0976 6324 (Print),
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JOURNAL
OF ADVANCED
ISSN 0976 6332 (Online), Volume 5, Issue 4, July- August (2014), pp. 48-59 IAEME
IN MANAGEMENT (IJARM)
IJARM
IAEME
ABSTRACT
The world has now become a knowledge-driven society characterized by rapid
changes. Under this condition, knowledge has to be managed for results. That is the problem
of this paper. The objective of this paper is to provide a theoretical exposition of knowledge
management and determine whether it influences employee and organizational performance.
The paper is descriptive and reviews relevant literature based on knowledge management
dimensions (explicit and tacit) including the benefits and organizational performance. To
achieve this objective, the paper reviews literature and past research findings and case studies
from companies like Analog Devices, Buckman Labs and Ford Motor Company on
knowledge management. Literature findings indicate that both explicit and tacit knowledge
have significant impact on employee performance in the Brewery Industry in Nigeria. The
paper recommends that management should encourage knowledge management activities for
effective and efficient solutions to organizational problems.
Keywords: Knowledge,
Performance.
Knowledge
Management,
48
Explicit,
Tacit
and
Employee
International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print),
ISSN 0976 6332 (Online), Volume 5, Issue 4, July- August (2014), pp. 48-59 IAEME
1. INTRODUCTION
Organizations are fast searching for more effective and efficient ways to increase
employee performance and remain competitive both at the local and global levels. In
conformity to national and global best practice, dynamic managers and professionals are
constantly seeking for more effective and efficient strategies to increase employee
performance in their various organisations in order to gain competitive advantage. Many
organizations are therefore turning their searchlight to the management of the intellectual
capital: knowledge management. In recent times, there has been a considerable interest
among human resource practitioners and researchers to demonstrate the causal relationship
between knowledge management and employee performance in organizations including the
Brewery industry in particular and manufacturing organisations in general. Research findings
and report from various stakeholders indicate low or declining performance in the Brewery
industry over the years. Other research works also indicate that people simply hang
themselves to organisations as employees without putting their knowledge into practice
thereby decreasing performance in the organisation.
The implication is that performance continues to decline because the knowledge,
skills and abilities of those employees may not be effectively managed and utilized to
enhance best performance. It has now become imperative that those who work in
organisations to accomplish goals and attain high level of performance ought to be effectively
managed since no knowledge is wasted in the organisation (Dugguh, 2011). Managing
intellectual capital (what the employees know) is therefore very intangible that its value
cannot be often adjusted. This has now become one of the challenges faced by organisations
today: to manage not just cash flow, stocks, raw materials etc but also to manage human
skills and knowledge for higher performance.
Knowledge management therefore is a discipline that promotes an integrated
approach to identifying, capturing, evaluating, retrieving, and sharing all of an enterprises
information assets. These assets may include databases, documents, policies, procedures, and
previously un-captured expertise and experience in individual workers (Duhon, 1995).
Many industries as well as other organisations, at the global level have now built a
knowledge sharing culture which has contributed greatly to the success of their business.
Such companies and the techniques they used in managing knowledge include: Anolog
Devices, (community of inquiries and initiated a breakdown of functional barriers and
competitive atmosphere to create a collaborative knowledge sharing culture from top. The
company encourages community of inquires rather than community of advocates), Boeing
777, the first paperless developer of aircraft in digital database (including customers in
design teams and had more than 200 teams with wide range of skills for both design and
construction). Ford Motor Company (used virtual network of vendors and transformed itself
by outsourcing and creating virtual networks of vendors using Information Technology), and
Buckman Labs (used knowledge sharing by establishing a Knowledge Transfer Department
to co-ordinate employee efforts). From these examples, it is clear that employees and
companies that were good at knowledge sharing gain both financial rewards and management
positions (Sveiby, 1996)
In Nigeria however, such knowledge management and sharing culture is rare in the
Brewery and other manufacturing industries. A number of companies currently operate in this
industry and they include the following: Champion Breweries Plc, Golden Guinea Breweries
Plc, Guinness Nigeria Plc, Jos International Breweries Plc, Nigerian Breweries Plc, Premier
Breweries Plc, and Consolidated Brewery plc. Research indicates that these companies do not
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print),
ISSN 0976 6332 (Online), Volume 5, Issue 4, July- August (2014), pp. 48-59 IAEME
have a culture of knowledge management to inspire and motivate their employees for
performance. Therefore, it becomes difficult measuring employee performance using
knowledge as a variable. The implication is that performance is measured in terms of output,
effectiveness, punctuality, quality and so on while knowledge is hardly use as a factor in
measuring employee performance. It is against this background that the researchers intend to
determine whether the performance of employees is influenced by managing knowledge: tacit
and explicit in the organization.
2. PAPER OBJECTIVE
The general objective of this paper is to determine whether knowledge management
influences employee performance in Consolidated Brewery Ltd Makurdi. Specifically, the
paper aims at determining whether explicit or tacit knowledge management impact on
employee performance in Consolidated Brewery Ltd, Makurdi.
3. CONCEPTUAL CLARIFICATIONS
Knowledge management is now regarded as one of the most important concepts in
human resource management in organisations. This is so because we live in a knowledgedriven society as earlier stated. If the knowledge employees possess is adequately and
effectively managed, their individual performance and that of the organization at large may
also tend to increase as well. Low level of performance may be associated with inadequate
and ineffective knowledge management in organizations. Conceptually therefore, the
following are captured and clarified
3.1 Knowledge and knowledge Management
Daft (2000), and Addicott, McGivern & Ferlie (2006) state that knowledge is a
conclusion drawn from the information after it is linked to other information compared to
what is already known. Knowledge, as opposed to data, always has a human factor.
Helliriegel Jackson & Slocum (1999) had earlier posited that knowledge refers to tools,
concepts and categories used to create, store, apply and share information. It can be stored in
a book, in a persons mind, or in a computer programme as a set of instructions that gives
meaning to streams of data (Davenport & Prusak, 1991) Information, on the other hand, is the
knowledge derived from data that people have transformed to make their meaningful and
useful.
KM according to Gupta & Sharma (2004) Ferguson (2005,) and Booker, Bontis &
Serenko (2008) therefore comprises a range of strategies and practices used in an
organization to identify, create, represent, distribute, and enable adoption of insights and
experiences. Such insights and experience comprise knowledge, either embodied in
individuals or embedded in organizations as processes or practices. KM efforts typically
focused on organizational objectives such as improved performance, competitive advantage,
innovation, sharing of learned, integration and continuous improvement of the organization.
According to Addicott, McGivern & Ferlie (2006), many large companies and non-profit
organizations have resources dedicated to internal KM efforts, as part of their business
strategy, information technology, or human resource management departments. KM efforts
do overlap with organizational learning and may be distinguished from the sharing of greater
focus of the management of knowledge as a strategic asset and a focus on encouraging the
sharing of knowledge.
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print),
ISSN 0976 6332 (Online), Volume 5, Issue 4, July- August (2014), pp. 48-59 IAEME
International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print),
ISSN 0976 6332 (Online), Volume 5, Issue 4, July- August (2014), pp. 48-59 IAEME
International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print),
ISSN 0976 6332 (Online), Volume 5, Issue 4, July- August (2014), pp. 48-59 IAEME
answer to a problem and that together they can craft a solution. Organisations that excel at
tacit knowledge find ways of encouraging and facilitate continuous dialogue among
employees.
b. Learning histories and storytelling: this is designed to get at a history of how critical
decisions were made and problems were solved (or not solved) so that knowledge is
transferred to others. A learning history is a written narrative of a specific major event or
project, base on the recollections and insights of everyone who participated. In organisations,
those who participated could be managers, secretaries, customers, suppliers and so on.
c. Communities of practise are other mechanisms for tacit knowledge management. This is
made up of individuals who are formally bound to one another through exposure to a similar
set of problems and a common pursuit of solutions (Allee, 1998) and (Stewart, 1998).
Communities of people are similar to professional bodies. People join them and stay in them
by choice because they think they have something to learn and something to contribute.
Through communities of practice cannot be formalised, some organisations use the idea to
amass and concentrate knowledge and intellectual energy related to specific critical issues.
4. BENEFITS OF KNOWLEDGE MANAGEMENT
A creative approach to knowledge management can result in improved efficiency,
higher productivity, to increased revenues and performance in practically business functions.
Some benefits of knowledge management correlate directly to bottom-line saving, while
others are more difficult to qualify. In todays information-driven economy, companies
uncover the most opportunities and ultimately derive the most value-from intellectual rather
than physical assets. To get the most value from a companys intellectual assets, knowledge
management practitioners maintain that knowledge must be shared and serve as the
foundation for collaboration. Yet better collaboration is not an end in itself. Without an
overarching business context, knowledge management is meaningless at best and harmful at
worst. Consequently, an effective knowledge management program should help a company
do one or more of the following: Foster innovation by encouraging the free flow of ideas,
improve decision making, improve customer service by streamlining response time, boost
revenues by getting products and service to market faster, enhance employee retention rates
by recognizing the value of employees knowledge and rewarding them for it, streamline
operations and reduce costs by eliminating redundant or unnecessary processes, making
available increase knowledge content in the development and provision of products and
services, achieving shorter new product development cycles, facilitating and managing
innovation and organisational learning, leveraging the expertise of people across the
organisation, increasing network connectivity between internal and external individuals,
managing business environment and allowing employees to obtain relevant insights and ideas
appropriate to their work, solving intractable or wicked problems, managing intellectual
capita and intellectual assets in the workforce (such as the expertise and know-how)
possessed by key individuals)
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print),
ISSN 0976 6332 (Online), Volume 5, Issue 4, July- August (2014), pp. 48-59 IAEME
5. CHALLENGES
MANAGEMENT
TO
THE
IMPLEMENTATION
OF
KNOWLEDGE
International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print),
ISSN 0976 6332 (Online), Volume 5, Issue 4, July- August (2014), pp. 48-59 IAEME
International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print),
ISSN 0976 6332 (Online), Volume 5, Issue 4, July- August (2014), pp. 48-59 IAEME
assumptions: its sustainable results that matter, not the processes or technology or the
definition of knowledge.
A resource cannot be managed unless it is modelled, and many aspects of the
organisations knowledge can be modelled as an explicit resource. Solutions can be found in
a variety of disciplines and technologies, and traditional methods of analysis can be used to
re-examine the nature of knowledge work and to solve the knowledge problem. Cultural
issues are important, but they too must be evaluated systematically. Employees may or may
not have to be changed but policies and work practices must certainly be changed, and
technology can be applied successfully to business knowledge problem themselves.
c. Core Competencies approach to knowledge management: Dugguh (2007) posit that one
way to organise a company around knowledge is to develop a knowledge competences
approach. Many people use the terms capability and competency interchangeably. But core
performance capabilities and core knowledge competencies are distinct, though
complementary aspects of organisational identity. Core knowledge capabilities are processes
that enable a company to deliver high-quality products and services with speed, efficiency,
and effective customer service. Core performance capabilities are keys to a companys
success. Such capabilities include aspects like bringing new products to market quickly,
modifying or customizing products or services quickly, managing logistics, attracting and
recruiting quality employees, sharing learning, insight, and best practice. Core knowledge
competencies are therefore the expertise and technical knowledge unique to a particular
business. They are the content or subject matter, such as 3Ms technical knowledge about
adhesives and Microsofts technological knowledge about software.
Each company has a unique organisational identity base on how it combines its
capabilities and competencies. Successful companies develop strengths in both areas. As a
company adapts and changes performance capabilities and knowledge, competencies
combine and recombine in new configurations that enable a flexible response to changing
conditions.
With a competencies focus, employees are generally more empowered to meet
customers needs. Employees organize themselves and their work groups to provide rapid
responses and quality service. They are often cross-trained or involved in job-enrichment
approaches that expand their range of skills. Competency-base organisations tend to have a
long term perspective because competencies take time to develop. Such companies focus
their investment and strategies more on strengthening competencies over time than on
immediate financial gain. All knowledge is not alike. Any area of expertise involves multiple
layers of knowledge. As organisations become international, their market boundaries began
to blur and new alliances increased competition. In response, they have to develop a
customer-focused strategy and identified core competencies in each market segment to
describe the skills and traits employees would need to deliver the new global strategy.
7. EMPLOYEE PERFORMANCE
Recent studies indicate a strong correlation between knowledge management and
employee performance. An employee is a person who is paid to work for somebody or
organisation. This payment could either be wages or salary. Employees are therefore people
who work in an organisation to achieve the organisations set goals. According to Dugguh
(2007) employee are viewed as assets. This is because employees and not building and
machinery give a company a competitive advantage. Employees occupy a strategic role and
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print),
ISSN 0976 6332 (Online), Volume 5, Issue 4, July- August (2014), pp. 48-59 IAEME
position in any organisation. They are responsible for converting inputs to productive outputs.
The work the employees of an organisation perform in front of the public and behind the
scenes affects the organisations reputation in the community and the profitability of a
company.
There are different views on what performance is. It can be regarded as simply the
record of outcomes achieved. On an individual basis, it is a record of the persons
accomplishments. Looking at individual performance more deeply and relating it to the work
situation. Rao (2009), defined the performance of an individual in an organisational setting
as: the output delivered by an individual in relation to a given to role during particular
period of time under the set of circumstances operating at that point in time
Rao maintains that an individual performs under different circumstances and different
times. Using the above definition he formulates the following equations:
Individual Performance = Ability Motivation Organisational Support + or Chance Factors.
Raos equation implies that, any individuals performance in a given period and in a
given role or job (set of task that constitute the role) is a function of his competence to do that
job or role or set of task associated with that role, multiplied by his interest or motivation to
do that job and the support he gets to do that job during that period. It is moderated by chance
or environment factors. Kane (1996) however argues that performance is something that
the person leaves behind and that exist apart from the purpose. Bernadin, Kane, Ross, Spina
& Johnson, (1995), suggest that: performance should be defined as the outcomes of work
because they provide the strongest linkage to the strategic goals of the organisation, customer
satisfaction and economic contributions. In his study, Cascio (1989) said that performance
refers to an employees accomplishment of assigned tasks while Bates and Hulton (1995) see
performance as a multidimensional constraint, the measurement of which varies depending
on a variety of factors.
The above definitions including the Rao equation of individual performance leads to
the conclusion that when managing performance of teams and individuals, inputs
(behaviours) and outputs (results) need to be considered. This is the so called mixed model
of performance management which covers competency levels and achievements, recognition
and satisfaction as well as objective setting and review (Harte, 1995).
8. METHODOLOGY
The paper draws from past research findings and case studies from Analog Devices
(USA), Buchman Labs USA and Ford Motor Co. The findings were that both tacit and
explicit knowledge has significant statistical impact on employee performance in both
organised private and public sector organisations in Nigeria.
9. EMPIRICAL STUDIES OF KNOWLEDGE MANAGEMENT
Research cases and findings taken from organisations that are involved in knowledge
management are relevant to this paper. A summary of these cases is presented below:
Anolog Devices used community of inquiries and initiated a breakdown of functional
barriers and competitive atmosphere to create a collaborative knowledge sharing culture from
top. The company encourages community of inquires rather than community of advocates.
57
International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print),
ISSN 0976 6332 (Online), Volume 5, Issue 4, July- August (2014), pp. 48-59 IAEME
Boeing 777, the first paperless developer of aircraft (digital database) included
customers in design teams and had more than 200 teams with wide range of skills for both
design and construction. Again Ford Motor Co. used virtual network of vendors and
transformed itself by outsourcing and creating virtual networks of vendors using Information
Technology. Buckman Laboratory used knowledge sharing by establishing a Knowledge
Transfer Department to co-ordinate employee efforts. Employees who were good at
knowledge sharing gain both financial rewards and management positions. Based on the
above review and case analyses, the paper found a link between knowledge management and
employee performance. Knowledge management, if properly designed and implemented can
influence employee performance in organisations including the Brewery Industry.
10. CONCLUSION AND RECOMMENDATIONS
From the review, cases and results of the findings discussed above, we can
confidently conclude that knowledge management is a necessary parameter for enhancing
employee performance in Brewery Industry in Nigeria. This being the case, there is every
need to ensure adequate management of knowledge not only in the Brewery Industry but in
any other organisation in Nigeria because of its perceived benefits. With proper planning,
knowledge management challenges would be overcome. It is therefore the view of the
researchers that until what people know is effectively managed and recognised as the life
wire of organizations, there can be no meaningful contribution by workers towards improving
their performance and that of the company at large. Therefore, the management should
effectively manage what its employees know just as it manages its raw materials and revenue
to achieve organisational goal and increase profit margins. Based on the preceding, the
researchers recommend that:
Management should encourage explicit knowledge in the organisation. There should
be proper documentation of all the activities and operations of the company. To make this
effective, materials like company folders and other electronic materials like CDs, flash drives
and to some extent e-libraries should be provided for easy documentation. Computers should
also be provided to facilitate documentation and facilities should be provided to enhance the
storage and retrieval of data.
In addition, tacit knowledge with emphasis on dialogue or face-to-face discussions to
collectively solve problems should be encouraged. This would assist in resolving disputes
before they become unmanageable. Case studies should form part of the training program.
Further, communities of practice which exposes employees to similar set of problems and a
common pursuit of solutions should also be encouraged by management. Recognition in the
form of monetary rewards, certificates, plagues etc should be given to those who participate
in all knowledge management activities with positive results.
Other recommendations include periodic training on knowledge management through
seminars, workshops or conferences. To accomplish this, the company should create the
Department of Knowledge Management and appoint a Senior Manager to oversee the
Department. A more conducive environment should also be provided for knowledge
management activities to thrive. Computers and other knowledge management equipment
should be stocked and maintained on regular basis to make knowledge management more
effective in the organization.
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print),
ISSN 0976 6332 (Online), Volume 5, Issue 4, July- August (2014), pp. 48-59 IAEME
11. ACKNOWLEDGEMENT
We wish to acknowledge all those who contributed in making this paper a reality. We
are also appreciative of the authors of the materials and case studies we cited and made
reference to in this paper.
REFERENCES
[1]
[2]
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