Research Korner: Knowledge Management Examples

OPTION C – ORGANISATIONAL LEARNING AND DEVELOPMENT AT AIS INSURANCE COMPANY

OPTION C – ORGANISATIONAL LEARNING AND DEVELOPMENT AT AIS INSURANCE COMPANY   1.0  Executive Summary No longer at its infancy, organisational L&D is viewed to be one of the imperatives of strategic HRM. As the concept that aimed at increasing individual capacity within organisations, L&D purport the acquisition of intellectual intangibles that are necessary in achieving the competitive advantage. Though the report is generally focus on the culture and leadership changes that will, in effect, influence how the company approach organisational L&D, the situational analysis and skills audit proved that the current practices of AIS is no longer being effective and sustainable. Generative learning will be the outcome which will be founded on combating the L&D dilemmas at AIS company. The L&D problems identified are: inherent problems based on the management group structure, inexistence of internal promotion and succession strategies and unproductivity and lack of employee commitment. These three components, in addition, facilitates the emergence of other L&F deficiencies such as attraction and retention, lack of support on changed job requirements, lack of mentoring/coaching structures and lack of integral skills to job function. The recommended trainings are divided into two categories: administrative-centered such as organisational goal setting, process mapping and managerial effectiveness training programs and employee-centered training program which is the talent management program.       2.0  Introduction Organisational learning and development (L&D) is not in its infancy. In fact, L&D is one of the imperatives of human resource management as it can improve performance at individual, collegial and organisational levels. As the process of ‘increasing one’s capacity to take action, organisations are now increasingly becoming particular with organisational learning and therefore collective development. A concept that is distinct from training, learning focuses on acquiring new knowledge, skills and capabilities. Training is simply one of the several responses any organisation can pursue to promote organisational learning. Organisational learning, on the other hand, refers to the “efficient procedure to process, interpret and respond to both internal and external information of a predominantly explicit nature. According to Easterby-Smith, Burgoyne and Araujo (1999), the emergence of the concept of organisational learning is central on the hitherto idea that prior advocacies of learning are tended to its commercial significance and are lacking of empirical information on learning processes. Strategically, organisational L&D deals with the acquisition of understanding, know-how, techniques and practices. These intellectual intangibles can be translated into an organisational resource through the people that acquire, infer and utilise such towards the achievement of the organisation-wide L&D (Armstrong, 2006, p. 40). This report chooses the third option that presents the L&D dilemmas of an insurance company. An understanding of how people learn necessitates the effective learning processes within organisations. Poignantly though, AIS company has no concrete learning and development processes, systems and institutions in place. Embedded on a traditional practice of earmarking and the misaligned organisational culture, the company experiences concurrent employee turnovers and the general lack of sense of ownership of the employees. As the appointed State Training and Development Manager, this document outlines the current practices of L&D at AIS and the proposed L&D planning and strategy. How learning theories are applied to practice and how it implicates leadership and development are addressed likewise.       3.0  Methods Majority of the report is vested on the assessment of L&D practices of AIS based on organisational learning literature and research also known as the secondary data researching. The strategy is mind is to re-engineer the prevailing L&D systems and practices at AIS and therefore apply the generative learning principle (Senge, 1990, p. 249). Nonetheless, a situational analysis and skills auditing are also implemented for the purpose of presenting a clearer perspective on the current situation at the AIS company. 3.1 Situational Analysis Situational analysis refers to the pre-planning action to identify the several factors that affect the prevalent practices within an organisation. Situational analysis targets the identification and prioritisation of problem situations that affect the overall performance of the organisation and its people. This analysis process answers what is the problem, why is there a problem, who are affected by the problem and what should be done to solve the problem. For this report, the single and double-loop learning model developed by Argyris and Schön (1978) was used (refer to Figure 1 in Appendix section). The model looks at the three elements: governing variables, action strategies and consequences. 3.1.1 Governing variables refer to the dimensions that people are trying to keep within acceptable limits. 3.1.2 Action strategies refers to the moves and plans used by people to keep their governing values within the acceptable range. 3.1.3 Consequences are the results of the action both intended and emergent.    3.2 Skills Audit Skills audit, alternatively, is the process of identifying the skill gaps in an organisation. Skills auditing results in the understanding of the skills required and the gaps that the organisation currently possesses; the targeted analysis of the development needs; the list of people of who need development; the data that can be utilised for internal selection and the information that can be used for dynamic succession planning. Skills audit involves conformation of current duties, job analysis, training needs, future development needs and action plan. Usually, skills audit is accompanied by a questionnaire to which, as the L&D manager, must be implemented within for the AIS management group. (The questionnaire is provided in Table 1.)      4.0  Current Practices A more than forty-year old company, AIS is equipped with a relatively mediocre number of employees. In light of the fierce competition, the company lags behind in terms of L&D resulting to a series of younger employees turnovers. The problem lies on the management structure where frontline and middle managers are proven to be ineffective and incompetent. There are several reasons for this situation which are based on the single and double-loop learning model. 4.1 L&D problems via the hierarchy of management structure First, there had been the hierarchical problems on L&D. The implicit exclusivity and the one-dimensional process of delegating employees could be the rationale for this. Career advancement opportunity is generally tended on the technical competence of employees which eliminates the majority of the employee base. Though employees move to the ladder, the concentration for specialistic delegation is apparent. This points to the second dilemma. 4.2 Lack of internal promotion and succession strategies             Consequently, AIS has no internal promotion policies and succession strategies that generally results in the ageing workforce. The average age of the management role is comparatively high. This notion may also explain why frontline and middle managers typically lack the commitment towards L&D. Though we cannot explicitly say that the top management lacks in support for various L&D initiatives, it is perceptible that within AIS there lacks the competences top-down. 4.3 Unproductivity and lack of employee commitment             Finally, AIS has no formal L&D policies and structures that result in the high percentage of unproductive employees and low levels of participation. To wit, the company offers no management development opportunities and services. In addition, the command and control style of leadership is hampering the way their managers could advance their competence and expertise.             In sum, the governing variables of the AIS company are bureaucracy and the emphasis on rationality. The actions are the unilateral control of the L&D system and the operationalisation of illustrated attributions (technical competence) as well as the covert, undermining practices of employee selection. Observably, the consequences are reduced production of valid information, low levels of loyalty and the minimal opportunity for continuous improvement and lack of functionality. 4.4 Resultant factors of the three identified L&D problems                Moreover, these identified L&D dilemmas branched to several other quandaries. These include the poor attraction and retention strategies, the lack of support on changed job requirements, the inefficacy of in-house L&D programs (if there are any), the inexistence of mentoring/coaching initiatives and the lack of other incremental skills jobs required. Though we can deduce that the management group possesses analytical and technical skills, they generally lack in management and behavioural skills (refer to Figure 2). 5.0  Findings and Discussion The current practices outlined are basically problematic and conflict-laden. Based on the situational analysis and skills audit, the company, as a whole, faces major challenges on three aspects: professional development, internal promotion/succession strategies and purely bureaucratic culture that dictates the organisational thinking. Effectual L&D could assist in combating these fruitless endeavors for AIS. The need for organisational learning and development for AIS managers is evident. The requirements of the AIS’ organisation L&D center the employees, the line management and the organisation. The foundations are the acquisition of skills and knowledge for the purpose of performance and promotion and career advancement and personal and professional development for the employees; improvement of efficiency and effectiveness, adapting to changes and improvement of employee performance for line management; and prevention of skills shortages, facilitation of workforce planning, succession management and attraction and retention strategies for the organisation. 5.1 L&D requirement that centers the AIS company’s hierarchy Keys and Robert (1998) maintain that the presence of formal hierarchy influences systems thinking and organisational learning. In reality, the self-select role of employees thereby assumes an organisational title, an associated status, apposition in the hierarchy and role responsibilities (p. 232). This is not to say that AIS is embracing a structurally wrong hierarchy; the fact is in every organisation structure, there is an inherent risk of exclusivity and therefore, the greater need for cross-functional integration. The continuity of learning may be jeopardised at times through hierarchies. Flattening and softening the hierarchy is fundamental then. Organisational learning, as well, conforms to organisational processes that influence policies, reporting relationships, business unit configuration, communication patterns and strategies and methods (Sessa and London, 2006) p. 178). As Lazonick puts it, ‘managerial learning’ is one of the major institutional barriers to making investments in organisational learning. The era of intense competition and the clash for competitive advantage calls for broader and deeper skills bases. Drawing away from the cumulative and collective organisational learning, the L&D initiative must direct on organisational learning must penetrate beyond divisions of labor and involve more functional specialties. Organisational integration of L&D would generate higher quality, lower cost products. Beyond the traditional division of labor, integrationism would provide the employees the incentive to cooperate in contributing their skills and efforts toward the achievement of common goals (p. 50).     However, the problem would be in the aspect of organisational L&D as a challenge to identifying the new learning that will succeed and eventually replacing the old with the new. This is where precisely the L&D could be put into greater test within the AIS system. True enough, knowledge is not easily shared but it is even harder to give up old practices and beliefs that have worked seriously well in the past. The necessity for double-loop learning is evident here. Culture change at AIS must be pursued. Sisaye (2001) made mention that organisational learning occurs when organisations use their knowledge and experience to improve organisational task performance. Learning involves knowing organisational rules, procedures, operating manuals, strategies, norms behaviours and, in general, the culture that governs the organisations (p. 77). Creating the conditions of change for the AIS company, the shift in culture must face with reorientation that includes learning of new ideas knowledge and cultural practices. To wit, the command-and-control culture is no longer proving to be plausible for AIS.             Moreover, evidences prove that leadership style influences the incidence or quality of the organisational learning. Leadership is therefore crucial for the success of AIS company’s L&D. Nonetheless, the nature of leadership within the organisation is rather dictatorial. Though leadership component is not the most important factor in successful L&D, it is clear that leadership structure is a determinant of the feasibility and quality of L&D initiatives. Lipshitz, Popper and Friedman (2006) argue that transformational leadership was associated with more intensive organisational learning activity with a stronger learning facilitative culture than transactional leadership (p. 98).           5.2 L&D requirement for the lack of internal promotion and succession strategies Provided that L&D does not only facilitate the continuity of learning but also the continuity of work, internal promotion and succession would be plausible. The organisations acquire the opportunity to assess individuals performance; hence, the active demonstration of internal promotion opportunities. Investing on long-term goals, strategic L&D creates avenues for accessing promotions on the basis of clear-cut job requirements and aligned skills, competences and expertise that integrate not just technical requirements. For instance, the management skills of the managers should encompass performance management, people management and leadership. Further, the behavioural skills must involve communication, assertiveness, influencing, negotiating, professionalism, enthusiasm and initiative and teamworking. To which the AIS management structure lacks. Organisational L&D has a production function. Such function centers the human aspect of the organisation in the form of succession. Important is that structuring and sensemaking act as levers to organisational L&D. For structuring, these are the organisational structure itself, norms (policies and procedures), roles, technology leadership, education/training/development and rewards and recognition. Making sense to this are shared context (mission, objectives and goals), language and symbols, values and assumptions and schemas and scripts (p. 47).  Friedman (1987, p. 66) asserts that the tripartite sharing of responsibility is the crux of a more effective learning process. Organisational learning is the process by which organisations obtain and use new knowledge, tools, behaviour and values, and it happens system-wide. At all levels, newly learned knowledge is translated into new goals, procedures, expectations, role structures and measures of success. As such, the more learning is built into the culture of the organisation, the more likely it is that the kinds of task and personal learning will take place. 5.3 L&D requirement for unproductivity and lack of employee commitment             Nowadays, the trend increasingly focuses on the concept of L&D as an integral tool in accelerating the competitive advantage, innovation and organisational effectiveness. As organisational learning leverage organisations in creating knowledge repository, identifying and codifying competencies and routines which includes acquiring, storing, interpreting and manipulating information from within and external to the organisation, the way people approach their work through sharing processes generates quality performance for both individuals and the organisation (Holsapple, 2003, p. 443). To simplify, learning is the dynamic process that manifest itself in the continually changing nature of the organisations. These are exemplified by innovation, collaboration, culture shifts and high morale.               Aside from competitive intelligence and technical expertise, there are also organisational capabilities that are being tap through L&D. Leadership, organisational learning and employee productivity comprise organisational capabilities. Through organisational learning, leaders communicate, direct, negotiate, influence, adapt and most of all gain employee commitment (Wade and Recardo, 2001, p. 53). Though organisational learning is inclined on the ability to learn from competitors, it is through organisational learning too that employees become more productive and more committed. This happens when they believe that the management has the skill to lead them to success and to provide them with knowledge and resources they need to meet customer requirements.    5.4 L&D requirement for the resultant factors             Organisational L&D is responsible for talent management as it systematically develop learning processes, providing employees with learning opportunities that develop their capabilities, realise their potential and enhance employability. Not only that, L&D is also central on yielding to high quality people and providing development opportunities to managers to increase their capacity in contributing to the achievement of the organisational goals (Armstrong, 2003, p. 10). And as already mentioned, L&D should facilitate the lessening of restrictive job descriptions while also encouraging the cross-functional cooperation. The supportive atmosphere augments the commitment two-way resulting to productive individuals who feel a sense of ownership and empowerment (Denton, 1998, p. 91). Unfortunately, these are the attributes that AIS lack.              Organisational consultancy at AIS is obviously deficient. According to Connor and Pokara (2007), coaching and mentoring are complementary to organisational learning. As both are increasingly being recognised as powerful L&D tools, the approaches should be strategically in existence with the L&D initiatives (p. 213). This provides a ground for personal and professional development and developing networks for senior and junior employees. Through the process also, organisational L&D as knowledge acquisition points on the development of skills, insights and relationships. Apart, L&D is also accountable for knowledge sharing and dissemination and knowledge utilisation (Palmer and Hardy, 1999, p. 200).       6.0  Recommendations Based on the findings, there are specific training programs for AIS that should be prioritised. With greater emphasis given on the developmental activities for managers, the training programs are intended for the gradual change of management culture. This report recommends the following training programs for AIS company. The training programs are divided into two categories: administrative- and employee-centered. For administrative, these are organisational goal setting training, process mapping training and managerial effectiveness training. For employee-centered trainings and program, this is chosen in response with for the lack of internal promotion and succession strategies known as talent management training. 6.1. Administrative-Centered Training Programs             The rationale behind these three professional development trainings centers the development of a more proactive approach and improvement of ways to meet the challenges in AIS as identified above. Ensuring long-term business benefits by focusing on managerial, supervisory and leadership development.    6.1.1 Organisational Goal Setting Training             This training program is intended on learning how to set goals from team and organizational levels. Such training program teaches participants how to set goals by using organisational objectives, statement of values and vision and mission statements. Learning how to implement strategic goals in the workplace is the main objective of this program. Strategic goal setting skills are the intended outcome of this training program. This training program is intended for administrators, managers and supervisors, with a total training time of 4 hours. The learning objectives of this training program are: ·         Help AIS develop and implement action plan ·         Identify the factors that influence strategic goals ·         Sequence the steps for putting organisational goals into action ·         Applying visualisation techniques 6.1.2 Process Mapping Training             Process mapping refers to a visual tool used to illustrate the core businesses. Process maps are also regarded as communication tool, planning tool and a tool that effectively cuts cost for organisations. The benefits of this training program is to improve the understanding of processes internal to AIS and boosts management group’s understanding of the business and operational performance. Provided that processes are the most effective way to manage the organisation, processes then directly supports the organisational goal. By improving processes, AIS can improve internal efficiencies, effectiveness, adaptability and customer service. Through this, AIS could generate useful analytical data in order to derive findings, draw conclusions and formulate recommendations. This two-day training program is intended for managers, system implementers, management representatives, system coordinators, change managers and improvement teams. This training program’s objectives are as follows: ·         Improve effectiveness and quality of work through identifying critical areas of improvement ·         Rediscover core processes through analysis of organisational complexities 6.1.3 Managerial Effectiveness Training             This three-day training program is intended for midlevel and developing managers. The focus of this training program is on being aware of oneself and knowing how individual behaviour affects both managerial effectiveness and employee performance. Experienced managers who desire to enhance their managerial effectives are expected to attend. The primary goal of this training program is learning the importance of working as a ‘cohesive unit’ within the organisation and how understanding others could lead to more effective managerial effectiveness. Such training program covers changes in the workplace, the manager’s style, how to manage teams, managers as transformational coach, style and motivation, managing conflicts, delegation for growth and managing performance and growth. The benefits of the training program are aligning motivation with work; anticipate and resolve conflict situations; instill a culture based on trust, partnerships and respect; increase dialogue and constructive feedback for optimum managerial effectiveness; and use delegation to increase performance and individual growth. The following are the objectives of this program. ·         Develop competencies and skills needed by the modern manager ·         Enhance effective job relationships ·         Empowering subordinates ·         Nurture and mentor talent in the continuum ·         Improve managerial and leadership characteristics 6.2 Employee-Centered Training Program             This training program, basically, is in response of the primary problem which is the lack of internal promotion and succession strategies within AIS. The benefit of this training is central on optimising the benefits of having a knowledge-driven workforce. 6.2.1 Talent Management Training             In order to ensure a company’s long-term success, talent management training becomes an increasingly important component of strategic management. This training program is divided into three main steps: analysis, design and implementation. In the analysis phase, AIS defines the current situation regarding how effective the organisation is retaining and sustaining the talent pool as well as the goals and results to be achieved by talent management. In the design phase, AIS should develop fundamentals, prepare client specific talent management process and develop instruments used in talent management. Finally, in the implementation phase, AIS should prepare, train and coach internal process owners, assist internal communications and implement the program.             The talent management programme itself is comprised of various activities such as identification of internal and external candidates; nomination; evaluation through assessment of potential, performance evaluation and development planning; development (individual and for talent pool); and succession planning. The objectives of this training program are: ·         Counter lack of visibility and knowledge of internal high calibers and top performers ·         Prevent vacant key positions and avoid discrepancies between competences required ·         Counter lack of knowledge of the strategic need for successors and career perspectives within the company ·         Prevent loss of know-how as resultant factor of excessive fluctuation of high calibers and top performers 7.0  Conclusion As a process of investing on the intellectual intangibles of every organisation, L&D shall be closely integrated with culture and the leadership style. Based on the findings of the report, AIS is generally lagging behind the competitors in terms of definite process and systems with respect to L&D. The factors that hampering the effective implementation of the L&D are the hierarchy of the company, the lack of internal promotion and succession strategies and the unproductive practices unique to the organisation. These three factors had branched out into resultant factors including attraction and retention, support on job requirements, mentoring and coaching and lack of incremental skills. There are a total of four training programs recommended. These are: organisational goal setting, process mapping and managerial effectiveness (administrative-centered) and talent management training (employee-centered). 8.0  Bibliography Argyris, C and Schön, D 1978, Organisational learning: A theory of action perspective, Addison Wesley, Reading, Massachusetts.    Armstrong, M 2003, A Handbook of Human Resource Management Practice, Kogan Page, Ltd, London, UK.   Armstrong, M 2006, A Handbook of Human Resource Management Practice, Kogan Page, Ltd, London, UK.     Connor, M and Pokora, J 2007, Coaching and Mentoring at Work: Developing Effective Practice, McGraw-Hill International, US.   Denton, J 1998, Organisational Learning and Effectiveness, Routledge, London, UK.   Easterby-Smith, M., Burgoyne, J. and Araujo, L. (eds.) 1999, Organizational Learning and the Learning Organization, Sage, London.   Friedman, S D 1987, Leadership Succession, Transaction Publishers, Piscatway, New Jersey, USA.   Holsapple, C W (ed.) 2003, Handbook of Knowledge Management, Springer-Verlag, Berlin, Heidelberg and New York.      House, R J 2004, Culture Leadership and Organizations: The Globe Study of 62 Cities, Sage Publications, Inc., London, UK.   Keys, J B and Robert, R M 1998, Executive Development and Organisational Learning for Global Business, Haworth Press, Inc., Philadelphia, PA.   Lazonick, W ‘Organizational Integration and Sustainable Prosperity’, in R Forrant, J L Pyle, W Lazonick and C Levenstein, (eds.), Approaches to Sustainable Development: The Public University in the Regional Economy (pp. 46-89), University of Massachusetts Press, US.     Lipshitz, R, Popper, M and Friedman, V 2006, Demystifying Organizational Learning: Demystifying Organizational (p), Sage Publications, Inc., Wydawca.     Palmer, I and hardy, C 1999, Thinking About Management: Implications of Organisational Debates for Practice, Sage Publications, Inc., London, UK.     Senge, P 1990, The Fifth Discipline. The art and practice of the learning organization, Random House, London.   Sessa, V I and London M 2006, Continuous Learning in Organizations: Individual, group and Organizational Perspectives, Routledge, London.   Sisaye, S 2001, Organizational Change and Development in the Management Control Systems, Emerald Group Publishing, US.   Wade, D and Recardo, R 2001, Corporate Performance Management: How to Build a Better Organization through Measurement-Driven, Strategic Alignment, Butterworth-Heinemann, UK.       9.0  Appendices   Figure 1 Single- and Double-Loop Learning Model   Figure 2 Skills Requirement of Organisational Members   Name: Position     General 1) Are you a new employee or a long-standing employee of the company?   2) How long have you been in your present job?       Confirmation of Current Functions and Responsibilities 3) Do you have a duty statement for your job?   4) Is your job accurately described in the duty statement?   5) a. If no, what extra duties do you do that need to be added to your duty statement?   b. What duties are no longer part of your job and can be deleted from your duty statement?       Job Analysis 6) Describe the tasks you regularly perform that are critical to carrying out your job effectively.   7) Describe the type of equipment you are required to use (for example, keyboard, machinery, tools of trade, etc).   8) Do you require a high degree of technical knowledge for your job?   9) How do you work?   10) If you work as part of a team, do you perform the same of different work to members of your team?   11) To what extent does your job require you to work closely with other people, such as customers, clients or people in your own organisation?   12) How much autonomy is there in your job, ie, to what extent do you decide how to proceed with your work?   13) How much variety is there in your job, ie, to what extent do you do different things at work, using several skills and talents?       Training Needs 14) To perform your current job: What training do you still need (either on-the-job or a formal course) to perform your current job competently (eg, Excel, bookkeeping, English as a second language, etc)?   15) To perform other jobs in the organisation: What other roles in the organisation would you be interested in doing if a vacancy became available (eg, transfer to another section, supervisor position, etc)?   16) To perform other jobs in the organisation:  What training or experience would be required (eg, machine operation, negotiation skills, Occupational Health and Safety Awareness, etc)?       Future Development Needs 17) What are your career aspirations?   18) What training or development do you need to help make this happen (eg, external degree study, formal meeting procedures, leadership training, etc)?       Recognition of Prior Learning 19) What training have you attended within the last three years? (This will help identify if any training sessions have been missed or if any refresher training is required.)   20) What training or skills have you acquired outside your current job that may be relevant to the wider organisation?       Action Plan Agreed training and development to be provided over the next 12 months: (Record the details of training courses, on-the-job experiences, buddy systems or mentor arrangements, and include the recommended dates the staff member can expect these to occur.)   Training 1) 2) 3) Date   Table 1 Skills Audit Questionnaire

OPTION C – ORGANISATIONAL LEARNING AND DEVELOPMENT AT AIS INSURANCE COMPANY

OPTION C – ORGANISATIONAL LEARNING AND DEVELOPMENT AT AIS INSURANCE COMPANY 1.0 Executive Summary No longer at its infancy, orga...

Alcan Incorporated Case Study

This paper discusses knowledge management and human resource management in relation to teamwork and how it is transferred within and across organizations. It defines certain concepts on these two topics and relates them on how it can be very useful in certain cases, such as the one mentioned in this paper. It also emphasizes on the role of technology as a crucial element in knowledge and human resource management. The importance of teamwork in relation to a specific case study is also discussed and given emphasis.     Introduction During the turn of the century, the world experiences more drastic changes than before. The people, the environment, the culture, information and even religions have already changed. It is as if the whole world evolved into a massive ball of information and technology that lead to the expansion and the development of every human being. In comparison to the events that happened the past centuries, everything happens today in fast-pace; like everybody is joining a race and everybody would like to win it! With what is happening to the world right now, it could be deduced that the development of technology and the need of this technology to be known to man is the main reason why everything changes.             With the changes each of us undertakes, a company must be able to cope with these changes, especially in dealing with employees. In this case, a company must also adapt its policies and approach to effectively communicate with its work force. This is why the human resource management of a company must be adjusted also to suit the needs of its employees. To be able to do this, proper knowledge must also be possessed in order to apply human resource management properly, in relation to innovation and technological expertise.   Knowledge and Human Resource Management             Knowledge management and human resource management are two important concepts in management of an organization. As defined by  (2006), knowledge management designates an approach to improving organizational outcomes and organizational learning by introducing into an organization a range of specific processes and practices for identifying and capturing knowledge, know-how, expertise and other intellectual capital, and for making such knowledge assets available for transfer and reuse across the organization. It is very important in a firm or an organization to transfer this knowledge, as it determines their success in the business. This should be emphasized especially in using advanced technology for the improvement of the company. It was also reported, that programs in knowledge management are typically tied to specific organizational objectives and are intended to lead to the achievement of specific targeted results such as improved performance, competitive advantage, or higher levels of innovation ( 2006). This concept determines also the concept of human resource management, as this two concepts go hand in hand in an organization. These two concepts are major key factors in the application and role of technology in an organization and in determining how each component of a team will cooperate with each other.             In relation to knowledge management is the concept of human resource management, which largely affects the impact of teamwork to any organization. It was reported that human resource management is a set of practices or techniques about managing people in an organization as effectively as possible for the good of the employees, the company and society. It is also a managerial function or department, which is becoming important to organizations in their efforts to manage people as effectively as possible. Furthermore, it includes a variety of activities such as staffing needs; whether to use independent contractors or hire new employees to meet their needs, recruiting and training the best employees, ensuring they are high-performers, and dealing with performance issues (  2005).             In addition, human resource management can be useful because managing people well may influence so many outcomes in an organization, such as profitability, productivity, employee involvement and investor return, which are all important to the stakeholders, the employees, the stockholders, the organization itself, the customers and the society (2005). Knowledge Workers and Teamwork             In relation to the mentioned concepts is the existence of a knowledge worker, which, according to  (2002) can be understood depending on the use of information in an organization.  As reported, a knowledge worker is one who works primarily with information and develops them. Because knowledge grows, all knowledge workers, particularly Research and Development project managers, need to easily access and search internal and external knowledge bases ( 2006). In addition, knowledge workers are believed to produce more when empowered to make the most of their deepest skills; they can often work on many projects at the same time; they know how to allocate their time; and they can multiply the results of their efforts through soft factors such as emotional intelligence and trust. Organizations designed around the knowledge worker, instead of just machine capital, are thought to integrate the best of hierarchy, self-organization and networking rather than the worst. Each dictates a different communications and rewards system, and requires activation of knowledge sharing and action learning. A basic pattern rule of human systems when you mix them you will get the worst of each unless you contextually and carefully attend to connecting the best ( 2006).             For all of these concepts to become effective, teamwork must exist alongside with the use of technology. Teamwork is a very important factor in all organizations when it comes to its improvement, development and establishment. According to (1999), attitude, goals, and teamwork can make a significant difference in the eventual success of a long, complex project. In many cases, a project team literally decides to succeed, not through a genuine desire on the part of the team to be successful, but through the evolution of a shared attitude among the team members that the project will succeed no matter what. The importance of teamwork in an organization largely determines how the organization will perform. Organizations have different components or committees in which different nature of work is distributed. However, even if each component acts separately, each must still coexist with other components and somehow work with them properly. This is possible with the concept of teamwork, with working harmoniously with other systems and with effectively applying a good deal of human resource management. Moreover, each of these components must be managed by human resource teams as effectively as possible and be reminded of their roles in the organization and the community. In addition, good communication must also be established, where the role of technology comes in. Companies nowadays are relying on the different advancement of technology, especially with the use of computer devices. Computers are now important tools in relation to cultivating effective communication. In the case of Alcan, Incorporated, this multinational corporation has gone a long way and becomes a good case study in relation to teamwork and human resource management. It was reported that Alcan was founded in 1902, a multinational, market-driven company and a global leader in aluminum and packaging, as well as aluminum recycling. It is involved in operations in primary aluminum, fabricated aluminum, as well as flexible and specialty packaging, aerospace applications, bauxite mining and alumina processing. The goal of this company is to make a positive difference, and operates based on integrity, accountability, trust, transparency and teamwork. These values guide the company in making good on their commitments to maximize value. The company also strives for innovation and product excellence; to create a safe, stimulating and rewarding environment for our people; to find new opportunities for continuous improvement and profitable growth; and to ensure all activities are conducted in a sustainable manner that will not compromise the aspirations of future generations (2004). Moreover, the company sees sustainability as another means for us to improve our performance by increasing the economic results of our actions and reducing environmental impacts within the context of business growth. In addition, the company will reap the benefits that result from being closer and more responsive to markets and trends in the society they serve. Thus, making the returns that shareholders demand driven by the company’s ability to invest in employees, in customer service, in the best technology and equipment and in the best performance in the areas of environment, health and safety. The good teamwork and positive values that the company demonstrates, results in its stability and success.  Teamwork has a large impact on the success of the whole organization, as each component has its specific roles and functions and is crucial in the development of the organization. Conclusion             Different aspects contribute to the success of an organization and become an established firm in the business scene. Each element comprising organizations have unique roles and functions differently. Due to this distinction from one another, comes the role of the human resource management department, which is responsible for the human resource activities of the company. The role of human resource is important as it contributes to the dissemination of information in the company. It is also responsible for the knowledge management in the firm. It was reported that due to today’s highly competitive environment, organizations are encouraging the human resource departments to play many roles within the organization. This can then lead to improving productivity, enhancing the quality of work life in the organization, complying with all of the necessary laws and regulations needed in managing the firm effectively, gaining competitive advantage, and enhancing workforce flexibility (2005). These additional roles will not only improve the human resources department specifically, but also, improve the performance of the whole organization.                         We must recognize that teamwork is an important aspect in the success of an organization, and that the cooperation of the work force may determine the future of the firm. In conclusion, human resource management controls knowledge management and affects the teamwork of each element that comprises the whole organization. The harmonious working together of each gives the company its full advantages.

Alcan Incorporated Case Study

This paper discusses knowledge management and human resource management in relation to teamwork and how it is transferred within and ...

Business Information Systems :Case Study of Catatech Industries

Business Information Systems Case Study of Catatech Industries             Table of Contents   Question1: Discuss how IT has changed value propositions and business models in e-Commerce. 3   Question 2: 5   2.1 Discuss the impact of competition on the e-Commerce strategic information systems plan of the company. 5   2.2 Discuss how this can be neutralised. 6   Question 3: Discuss the impact of e-Commerce on ethical, social and political issues?. 7   Question 4: Discuss the lessons South African businesses can learn from this case study. 9   Question 5: What management issues are raised by knowledge management systems in e-Commerce? Use examples to discuss this in detail. 10   References. 12       Question1: Discuss how IT has changed value propositions and business models in e-Commerce.               Intensifying competition in the global market supports the key role of information technology (IT) in driving organisational change (Porter 2001). Competitive advantage emerges from the ability to draw a wider market, especially with the saturation of local markets and increasing global demand. Business firms aiming to take a share of the global market have to adhere to change by adopting and integrating IT into business models and processes. (Leonardi 2007) Catatech Industries has been in operation for nearly a century but it continues to grow. To realise the opportunity of widening its global market reach, it needs to develop its IT capabilities not only at the business unit level but also at the corporate level to influence change in organisational culture. However, this is not an easy task and the CIO has to contend with the competing of retaining the business models of the company or the traditional way of doing things that allowed the company to grow or to rally for culture change biased towards IT to propel the company as a global market player. This dilemma and the likely resistance of stakeholders (Markus 2004), especially the board could be alleviated by focusing on the role of IT in revolutionising value propositions and business models in e-commerce. The positive impact on the firm together with the alignment of the company with e-commerce models could ease the change process in the company.             IT acts as catalyst for change and driver for competitive advantage. IT creates change by supporting innovative processes that in turn directs the organisation towards culture change. With IT processes in place, strategic changes emerge. The outcome of IT driven change could encompass restructuring, IT and other innovative competencies, and shifts in management practices. All these create and enhance value proposition for consumers. The benefits of IT to the organisation also redound to the benefit of consumers. (Markus 2004; Leonardi 2007)             IT benefits business firms in two major ways. First is by enhancing performance and productivity by enabling linkages across and within teams or working groups, departments, business units, and corporate headquarters through IT (Carlson 1999). Linkages via communication and information or knowledge sharing develop organisational streamlining that improves product and service features, product distribution, service delivery, and customer service. In the context of global business firms, such as Catatech Industries, streamlining of business processes supports the creation and reinforcement of a strong value proposition for its customers worldwide. Although there are certain unique value propositions in the different business units depending on the demand or needs of the local market, a sufficient degree of alignment across the business units is imperative to the enhancement of a consistent, strong and uniform value proposition. IT makes streamlining and alignment possible. In the case of Catatech Industries, the business units can retain autonomy in the specific means of reinforcing the organisation-wide value proposition.             Second is improvement in business processes. IT helped to develop various e-commerce models that allow business firms to improve internal processes to address stakeholder needs (Orlikowski 2000). E-commerce refers to the system that converts sourcing, selling, and buying into electronic processes. Engaging e-commerce means establishing models and relations that support effective procurement, production, retailing and promoting mechanisms. The core idea of e-commerce is optimising available and appropriate technology to enhance ways of communicating value proposition and meeting demand. IT has created a number of e-commerce models particularly business-to-consumers (B2C) such as online advertising, emails, website information sharing and retailing, and website customer service and feedback system. IT also created business-to-business-to-consumer (B2B2C) models such as retailing through distributors such as eBay and other auction sites, advertising through websites, forums, blogs, and other electronic venues, and electronic logistics by linking the ordering system of the company with logistics partners in shipping products to consumers. Engaging in IT would allow firms to establish electronic points of sales and customer service that enhances its value proposition. (Orlikowski 2000; Lee 2001) Catatech has a potential to expand its global operations as well as maintain and develop its competitive advantage especially with competitors capitalising on first mover advantage in the virtual market. However, to do this, the company needs to realise the importance of IT in creating, enhancing and reinforcing value propositions to reach out to the market as well as in building e-commerce models to support the electronic process or system competencies and needs of the company to operate globally.             Thus, IT improves business processes and organisational competencies and provides electronic systems and venues of reaching out to customers to create and enhance value proposition for customers in support of the goal of achieving competitive advantage.  Question 2: 2.1 Discuss the impact of competition on the e-Commerce strategic information systems plan of the company.               Competition is the context for the e-commerce strategic information systems plan of Catatech Industries. Knowledge of its closest competitors in terms of market share, potential for expansion, and relative positioning would comprise the bases of plans for information systems adoption. Competition also redirects or shifts information systems planning.             Strategic planning for the adoption of information systems contributes in enhancing managerial understanding and assessment of organisational development and factors for success (Laartz, Monnoyer & Scherdin 2003). This process assists in the achievement of timely decisions and development of viable strategic plans. (Henry & Lau 2000) However, decisions on the e-commerce adoption depends on the business firm’s knowledge of its competitive environment in terms of relative positioning, performance, market base, market share, products and services, and other determinants of competitiveness. This is because the adoption of e-commerce targets competitive advantage. (Ward & Peppard 2002) As such, the importance of e-commerce adoption and the immediacy of developing the strategic information systems plan depend on the assessment and interpretation of competition. In the case of Catatech Industries, its awareness of competitors and evaluation of the relative competitiveness of industry players including the company would determine the decision of top executives to support the development of the strategic information systems plan. If the board perceives competition in e-commerce as inconsequential then they would likely scrap the plan but if they view e-commerce competition in the industry as strong, then top executives are likely to support the plan. It is up to the CIO to present an accurate and comprehensive analysis of e-commerce competition in the industry to gain support for the plan.             In real business application, strategic information systems planning could have components including strategic prerequisites, directions and other elements (Henry & Lau 2000). As in other areas of strategic planning, this begins with the identification of needs or issues requiring resolution. These needs could encompass the level of transaction processing or the level of information and support systems. The success of the strategic information systems plan depends on the extent that it meets needs. (Ward & Peppard 2002) Even in this early stage of planning, competition is already an influential force because this determines the present and future needs of the company and the issues that it needs to address. This means that before even commencing with planning per se, Catatech Industries should have assessed competition and identified the needs it has to address. Again, since the top executives are conservative in making radical decisions, the responsibility to translate e-commerce competition into needs falls in the hands of the CIO. After determining needs, the next step is the identification and prioritization of objectives, resource planning, implementation procedures, and assessment measures (Ward & Peppard 2002). All these depend on the needs being met by the plan that are in turn based on the assessment of e-commerce competition. In addition, understanding of competition is a continuous process so that the company may have to readjust its plans with a changing competitive environment. 2.2 Discuss how this can be neutralised.             Competition impact the strategic information systems plan in two ways. One is by influencing needs and the other is by signalling possible changes in the plan. Counteracting the impact of competition on the strategic information systems plan requires an understanding of competition and the flexibility to changes in the competitive environment. Gaining an understanding of competition could be through competitive intelligence by gaining vital information on competitors and analysing these to draw conclusions in support of strategies for competitive advantage (Ward & Peppard 2002). Another is by using models such as the five forces model that considers barriers to entry in the e-commerce market, rivalry or impact of competitors, impact of suppliers, changing demands of customers, and existence and impact of substitutes (Porter 1998). Other models are also available especially for global operations that consider political, economic, social, technological, legal, and environmental factors of the competitive environment (Ward & Peppard 2002). By thoroughly understanding competition, the company can enhance the success of its strategic information systems plan. Developing adjustability to the changing impact of competition necessarily involves culture change (Sims 2002) to support appreciation of IT and e-commerce in business processes and work completion. By realising the importance of IT in supporting competitive advantage, members of the organisation are sure to develop awareness of developments in competition and analytical competencies in determining the impact of these changes on its information systems or e-commerce initiative. Question 3: Discuss the impact of e-Commerce on ethical, social and political issues?             E-commerce revolutionised business by creating a virtual market and widening the reach of firms but created ethical, social and political issues that co-occurs with it. This means that engagement of business firms, such as Catatech Industries, in e-commerce necessitates the consideration of these ethical, social and political issues in decision-making and planning to ensure success. Four general issues encompass the impact of e-commerce on ethical, social and political factors.             First is information management relative to protection of privacy because of widely available information in the Internet. Information management is an ethical issue because it involves the dilemma of the gathering, sharing and utilising information on competitors (Camp 2000). In the case of emails spamming evolved as an ethical issue under information management. Business firms with websites requiring registration and with online payment systems are likely to gain data on the names, emails, contact number or even address of individuals engaging these electronic processes. Decisions of firms to use information and emailing for advertising and promotions led to spamming that often inconvenience customers. The constant barrage of unwanted emails only developed negative attitudes on the part of consumers. As such, most providers of email service established anti-spamming features.             Second is exercise of property rights. The Internet, which is the foundation of e-commerce, is very fluid in providing access to information, products and services, and anything in demand. Due to limited controls, this makes it difficult to exercise property rights. The concept of property is that the owner holds exclusive right to the appropriation of that property, whether this are material products, services, ideas and systems, or anything subject to ownership. However, e-commerce can weaken property rights with the Internet providing opportunities to circumvent these rights. (Camp 2000) This is an ethical issue because it involves the decision on whether to obtain and use other people’s property for personal gain without getting the permission from the owner or gaining from its use. This is also a legal issue expressed in cyber crimes and piracy of property covered by intellectual property rights.             Third is regulation of e-commerce as a means of addressing cyber crimes and violation of intellectual property rights (Hall 2001). This is a political issue involving the decision of lawmakers on whether to subject e-commerce to statutory regulations, the scope and limits of regulation, the processes of implementation, and the judicial body with jurisdiction. Laws regulating e-commerce continue to change reflecting efforts to determine the place of regulation in the Internet. These changes affect how business firms engage in e-commerce.             Fourth is public safety or welfare, which comprises a social issue in e-commerce. The wide market reach of the Internet supported the entry even of small business firms including those that pose a threat of safety and security (Hall 2001). While e-commerce enabled networking, which is an important business tool, through chatting, messaging, emailing and websites hopping, these have also supported the proliferation of activities that pose a threat of public safety. Many websites on pornography and cyber prostitution emerged and these even get high ratings in terms of traffic and links. Recruitment of terrorists and solicitation of terrorist funds happen through the e-commerce tools. Question 4: Discuss the lessons South African businesses can learn from this case study.               South African business firms can learn a number of things from the case study. These lessons focus on defining the place of IT and e-commerce in business success and strategies in the effective engagement in e-commerce.             One important lesson is building knowledge and trust at various levels to develop appreciation of the importance of e-commerce in the business success of international firms. Catatech Industries operates as a conservative company relative to IT and e-commerce. Although it has engaged in e-commerce, this was only at the level of the business units. This could be subject to interpretation as the hesitance of headquarters in Madrid to engage fully in e-commerce at the corporate level. The company’s CIO has trouble in obtaining board approval for IT initiatives. This could be explained by the concerns of the company on the impact of IT initiatives at the corporate level largely due to a limited knowledge of e-commerce and the impact on work and continuity of employment. The company was not even aware of the emergence of competitors in the virtual market that affects the global expansion of the company. Another explanation is the lack of trust in automated transactions, especially since the company sold products through knowledgeable sales personnel. Many South African firms experience the same thing. These firms express interest in IT and e-commerce but hesitate in the actualisation stage (Molla & Licker 2004). By enriching the knowledge and experience of South  African business firms on e-commerce and reinforcing trust on the part of personnel as well as consumers through secure online systems and ethical practice, the success of information systems.             Another lesson is the important role of leaders in signalling direction towards e-commerce. The perspective of leaders over IT reflects in the policies applied in the company. The leaders of Catatech Industries are adamant or unconcerned about industry trends in e-commerce with the business unit in the United States expressing active involvement in e-commerce. If Catatech Industries want to expand in the global market, it has to pay proper recognition to the role of e-commerce. Similarly, many leaders of business firms in South Africa also exhibit a similar relaxed attitude towards e-commerce even if these firms have the capital to invest in IT. Even if a number of firms engaged in e-commerce the benefit to consumers are limited. E-commerce efforts need to be linked to competitive goals and integrated in strategic planning.             A last lesson is the importance of e-commerce guidelines to guide engagement of firms in a manner that ensures customer satisfaction and welfare. Being part of the European Union supported the engagement of Spain in adoption and development of policies on e-commerce to guide business firms in engaging in IT to support business processes (Sebastian, Rodriguez & Mateos 2001). However, the fact that Catatech Industries has not considered e-commerce at the corporate level despite being an international company could be because of limited guidelines from industry standards and best practices or from regulatory bodies. South Africa also needs to develop e-commerce policies to increase security in electronic transactions and protect consumers in order to help build IT capabilities of business firms (Molla & Licker 2004). South African business firms engaging in IT play an important role in advocating policy development. Question 5: What management issues are raised by knowledge management systems in e-Commerce? Use examples to discuss this in detail.               Knowledge management systems in e-commerce give rise to a number of management issues. These issues revolve around the management and utilisation of information. To succeed in e-commerce initiatives, business firms need to address these issues.             One issue relates to the need for skills and tools for effective knowledge management encompassing data collection, data processing, interpretation of information, and dissemination. There is a difference between data, information and knowledge requiring different levels of skills and tools. Business firms should be able to develop competencies for these to achieve effective knowledge management systems able to support e-commerce. Data is the raw form, information has been analysed and interpreted, and knowledge is information able to cause change by either providing the area and means for change or changing perspectives to influence indirectly action. (Malhotra 2000) In the case of Catatech Industries, knowing that there are already direct competitors already involved in e-commerce is not enough. However, if personnel do not have enough skills to transform data into skills using models (five forces, PESTLE, etc.) and software, then it will never turn to knowledge that supports strategic action.             Another issue is streamlining the system of information sharing across the levels of the organisation. One purpose of e-commerce is the enrichment of the knowledge of the company over its status and position at the business unit and corporate levels through information sharing, and knowledge management support this. Nevertheless, for global firms, knowledge management systems should be uniform. (Malhotra 2000) An example is a single website for Catatech Industries but including links to the pages for the different business units in different countries. There would also be a centralised ordering, payment and feedback system accessible to the various business units. This would allow the company to consider gain knowledge at the corporate and business unit levels.             Last issue is building effective communications. Knowledge spurs action only if properly communicated. (Malhotra 2000) An example is the different modes of communication for top executives and business unit managers. On one hand, top executives require information at the strategic level so that communication should be in terms of the overall performance of the company and the different business units, competitors, changes in demand and the issues linked to the information that requires decision-making. On the other hand, business unit managers require information that supports what they have to do, how to do it, when and where to do it, and how to measure success. The CIO or the information departments needs to keep track of the flow and transfer of what information to who and how.   References   Camp, L.J., 2000. Trust and risk in Internet commerce. Cambridge: MIT Press.   Carlson, P., 1999. Information technology and organizational change. ACM Special Interest Group for Design of Communication. Proceedings of the 17th annual international conference on Computer documentation. New Orleans, Louisiana, United States.   Hall, R.E., 2001. Digital dealing: How e-markets are transforming the economy. New York: W.W. Norton. Henry, C.W. & Lau, K.F., 2000. Assimilation of a strategic information system to gain competitiveness: a neutral format approach. Logistics Information Management, 13(5), 312 – 320. Laartz, J., Monnoyer, E. & Scherdin, A., 2003. Designing IT for business. The McKinsey Quarterly, 3, pp. 76–87. Lee, C.S., 2001. An analytical framework for evaluating e-commerce business models and strategies. Internet Research, 11(4), pp.349 – 359. Leonardi, P.M., 2007. Activating the informational capabilities of information technology for organizational change. Organization Science, 18(5), pp.813-831.   Malhotra, Y., 2000. Knowledge management for e-business performance: advancing information strategy to internet time. The Executive’s Journal, 8(4), pp.5-16.             Markus, M.L., 2004. Technochange management: using IT to drive organizational change. Journal of Information Technology, 19, pp. 4–20.   Molla, A. & Licker, P., 2004, Maturation stage of ecommerce in developing countries: a survey of South African companies. MIT Press Journals, 2(1), pp.89-98.   Orlikowski, W.J., 2000. Using technology and constituting structures: A practice lens for studying technology in organizations. Organization Science, 11, pp.404-428. Porter, M.E., 1998. Competitive strategy. New York: Free Press. Porter, M.E., 2001. Strategy and the Internet. Harvard Business Review. March 2001, pp.62-78.   Sebastían, M.C., Rodríguez, E.M. & Mateos, D.R., 2001. Information policies in Spain: towards the new “information society”. Libri, 51, pp. 49–60.   Sims, R.R., 2002. Managing organizational behavior. Westport, CT: Quorum Books.   Ward, J. & Peppard, J., 2002. Strategic planning for information systems. 3rd ed. New York: John Wiley & Sons.

Business Information Systems :Case Study of Catatech Industries

Business Information Systems Case Study of Catatech Industries Table of Contents Question1: D...