Annotated Bibilography

The Role of Human Resources in Creating Knowledge Organization – A Study of SCCL (Singareni Colleries Company Ltd.) Dr B Sridevi Dr V Maheshwar

Abstract

The 21st Century, however, presupposes an organizational systemic preparedness for gaining and retaining competitiveness in a global and native business scenario. Knowledge organizations bring in challenges significantly different from what has been so far experienced. The early 20th Century predominantly focused on the manufacturing or the production priorities of the firm. Knowledge Management has become a major competitive tool for the present day organizations. Knowledge management is the acquisition and use of resources to create an environment in which information is accessible to individuals and in which individuals acquire, share and use that information to develop their own knowledge. Further, employees are encouraged and enabled to apply their knowledge for the benefit of the organization. “Only a Positive Attitude changes our life, but it will change the world around us”. Know-how in the organization is built around four areas of action: Responsiveness, Innovation, Competency and Efficiency. These four areas, which is called as “RICE model”, cover all of the different ways in which can use knowledge to help the company succeed. Responsiveness

Journal of Commerce & Management Thought

Vol. 5-2, 2014, pp.201-216

DOI : 10.5958/j.0976-478X.5.2.015

201

concerns how the company takes in vital information from its surroundings; its customers, competitors, suppliers, and others who affect – and are affected by-the company’s performance. Innovation concerns how the company uses ideas and information to change what it does and how it does it. Competency concerns to the skills that the people and teams need to deliver products and services. Efficiency concerns with how well processes for product and service delivered.

Keywords : Knowledge Organization, RICE model

Introduction

Firms today are beginning to realize that they attract and hire top

intellectual talent only for them to manage and supervise yet another team of

knowledge workers through the organization structure. This imposes upon

senior management time and talent to focus on making such knowledge

workers to work hand in hand with colleagues to experiment and innovate, to

work in teams that have goals that cut across functions and job competencies.

The wide use of teams and their consequent effectiveness has proven beyond

doubt the success of making people work in structured as well as

unstructured environments with only their goals in perspective.

The work force in turn having realized this potential are willing to take

additional responsibilities, willing to be empowered and consequently

operate with enhanced command over with their knowledge and its

application in untested areas.

The Primary challenge of an entrepreneur is to motivate top talent; to

seize opportunities by utilizing their human resources effectively.

The 21st Century, however, presupposes an organizational systemic

preparedness for gaining and retaining competitiveness in a global and native

business scenario. Knowledge organizations bring in challenges significantly

different from what has been so far experienced. The early 20th Century

predominantly focused on the manufacturing or the production priorities of

the firm.

The firm was treated as a mechanical outfit created to maximize

products with labour as an important factor in the process.

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Thereafter, the sciences exposed manufacturing excellence with speed,

automation of the human systems, socio-technical variables for efficiencies,

scientific management, mass production, assembly line advantages, single

product dominance and workers productivity.

The consumer era followed with the corporations prioritizing its

energies towards creating and sustaining brands, products and life style

interventions for the consumer. Sales and distribution networks were

expanded to ensure reach, effective market penetration, identifying the

consumer in the common person and ensuring product availability at their

point of purchase. Supply chain efficiencies were dealt with as a single

largest independent variable for ensuring customer satisfaction. The last two

decades and the last quarter of the century realized the potential of the

computer Systems, electronic data processing, information management

tools and technicians for corporate use and effectiveness.

Objectives of the Study

The main objective of the present study is to examine the role of Human

Resource in creating knowledge organization. The -Objectives of the present

study is as follows.

• To examine the responsiveness of employees of SCCL in creating knowledge organization.

• To study the Innovation of employees of SCCL. • To evaluate the competency level skills employees of SCCL. • To analyze the efficiency of employees of SCCL towards knowledge

organization.

• To offer suggestion to improve the intellectual capacity of SCCL in creating knowledge organization.

Database Methodology

The present study is based on both primary and secondary data; the

primary data was collected through questionnaire and personal interviews

conducted with selected sample. The secondary data was collected from the

books, journals and various websites.

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Sample Design

In order to evaluate the Role of Human Resources in creating

Knowledge Organization – A study of SCCL. Kothagudem Region has been

chosen, SCCL is leading coal Mine Company as state owned sector. The

sample of 200 employees has been chosen on random basis which includes

all levels.

About the SCCL

The Singareni Colleries Company Ltd with a history of over 117 years is moving ahead to retain leadership by being proactive in order to meet the

mark challenges even while promoting better client relationships.

The Singareni Colleries Company Ltd is the only Coal mining

organization in south India cater the needs of Power, Cement and Other Coal

base industries in South India, Maharashtra, and Gujarat and its registered

Office is located at Kothagudem in Khammam District, Andhra Pradesh.

As India is the 3rd largest coal producer nearly 80% of this outputs

dispatched to the consumers in the power sector. Public sector coal

companies contribute 95% of India’s coal production of which coal India

Ltd., account for 85% and Singareni Colleries Company Ltd for 10%. The

developing countries like India use coal as the primary source energy supply.

Almost 75% of the electricity generated in the country is through the coal.

The world’s third largest hard coal reserves of 233 billion tones serve as

a source energy supplies to meet the requirement of a growing economy,

expanding population and rapid urbanization.

Period of Study

The present study covers a period of five years, from 2008-2013.

Tools of Analysis

While analyzing the collected Data various statistical techniques like

chi-square have been computed.

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Concept of Knowledge Management

Knowledge Management is a fairly modern concept. It refers to an

enterprise that consciously and comprehensively gathers, organizes, shares

and analyses its knowledge to achieve its goals. Therefore, a company needs

to identify areas where sharing of knowledge and best practices can help

improve performance. Knowledge Management has gained in importance

because companies have discovered that people, their skills and knowledge

are essential to gain competitive advantages.

Knowledge Management has become a major competitive tool for the

present day organizations. Knowledge management is the acquisition and use

of resources to create an environment in which information is accessible to

individuals and in which individuals acquire, share and use that information

to develop their own knowledge. Further, employees are encouraged and

enabled to apply their knowledge for the benefit of the organization.

Companies that are knowledge-friendly know that knowledge is one of

the important asset and a core competency for moving ahead. Knowledge

Management has identified with three characteristics that differentiate a

knowledge organization from others. Knowledge organizations invest in

developing knowledge in the key areas of core competency such as the

process of product development or improving customer satisfaction

Knowledge organizations emphasize on continuous learning. British

Petroleum (BP), has a worldwide reputation for commitment of knowledge

management. BP’s knowledge management has a simple framework, which

describes a learning cycle – before, during and after any event – supported by

simple process tools. Lessons from that learning loop are distilled by a

community of practice that can include peers across the organization who

have a stake in agreeing and defining BP’s best practice. Finally, both

specific and generic reasons are incorporated into “Knowledge Assets” on the

corporate intranet. Wal-Mart is another example of a company that believes

in continuous learning of its employees. It effectively leveraged knowledge

between suppliers and stores. Another factor that distinguishers a Knowledge

Management company from other companies is its ability to adapt to the

change. One example is that of Barnes & Noble, which started terms as co-

The Role of Human Resources... 205

operation and sharing of information brings in benefits for the whole

organization.

Knowledge Management has profound implications for organizational

culture, because it is the culture that helps to bridge the gap between the

provision of technology and information and the effective use for the benefit

of the organization by individual knowledge workers. Some organizations are

caught in inter-departmental power battles where knowledge is seen as

power, and not something to be shared, which is why they have not managed

to shift to a culture which is fundamentally based on trust and sharing.

Similarly, the level, or handling, of change is some organizations have

created an environment where many employees feel insecure, and so trust is

lost.

Building a culture for Knowledge Management on these values will

require changes in systems and process, and a way of doing thing which both

transmits the organizational culture to new employees are reinforces it to old

employees. As with any change situation, conflicts can arise. This is where

HR can contribute to the development of the Knowledge Management

culture by handling such conflicts.

In a knowledge-based economy, managers become more of facilitators

rather than controllers. They will have the support of HR in making this

transition. HR will assume a more flexible role as a result of changing roles

of business. Having a work culture where the majority of the employees are

knowledge workers is not enough and the culture must be right to enable their

full contribution. In addition to the full utilization of the technical skills and

knowledge of employees, a team approach is essential for the effective

acquisition of knowledge and skills. The reason of this is that team skills are

inextricably linked with effective HR learning both in the workplace and in

formal education and training.

It is the team approach that forms the mainspring of quality, innovation,

service needed for competitiveness and success. Within the new team culture

employees therefore will be required to develop not just the knowledge and

technical skills relating to the particular area of work but also a broad set of

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interaction skills or thinking skills relating to problem solving and decision

making. The skills of collaborative team work are linked with effective HR

learning and training. The word collaborative is used to distinguish genuine

teamwork from what might pass teamwork in some organizations.

Positive Attitude Towards Knowledge Organization:

“Only a Positive Attitude changes our life, but it will change the world

around us”. Know-how in the organization is built around four areas of

action: Responsiveness, Innovation, Competency and Efficiency. These four

areas, which is called as “RICE model”, cover all of the different ways in

which can use knowledge to help the company succeed. Responsiveness

concerns how the company takes in vital information from its surroundings;

its customers, competitors, suppliers, and others who affect – and are affected

by-the company’s performance. Innovation concerns how the company uses

ideas and information to change what it does and how it does it. Competency

concerns to the skills that the people and teams need to deliver products and

services. Efficiency concerns with how well processes for product and

service delivered.

The “Rice” Model for Knowledge Management

On the other hand, if the company is in a business in which developing

and delivering new products and services that reshape markets or create

entirely new ones that lead to success, then we are likely to focus on

generating knowledge by hearing what the marketplace – and enabling

employees to communicate with each other – and using that knowledge to

innovate.

Most companies of course, must do both kinds of knowledge

management to thrive. They have current products and services to maintain

in the marketplace, and they are developing the next generation of offerings

to build a position in tomorrow’s marketplace. The purpose of the RICE

model is not to assign a particular approach, but to help in provide define the

key pieces of a knowledge strategy, assess the strengths or weakness, and

focus on what will help to the company the most. The Rice model is

presented in the figure 1.

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Figure 1 : Rice Model

Competency and Efficiency

From Individual Competency to Organizational Efficiency:

Organizational learning builds organizational knowledge. But all learning, all

knowledge, all know-how, starts in and resides with individuals. People in

organizations often act collectively, but they learn based on their own

interests, aptitudes, and motivators and based on what they believe will

protect or improve their standing in the organization. Ideally, they are also

motivated to learn the competencies that help the organization most. But we

can’t always count on that to happen automatically.

Starting with Competency: The first stage in building the knowledge of

the organization is to hire people who already have the needed skills. The

hiring process begins with identifying the needed knowledge and skills and

then builds a recruiting marketing, and retention program that identifies and

attracts the right people with the right skills.

The second stage in building individual competency is managing “time

to talent”. How quickly can an organization take novices or new employees

and turn their talent into activity that adds value to the firm? There are two

approaches to improving time to talent. Formal training program

Communities of practice

Formal training programs focus on giving people the tools they need to

learn what they need just then (just-in-time learning)or what they might need

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sometime (Just–in–case learning). School like training – in a group, with a

leader, at a specific time and place – still plays a large role in training. More

and more, however, companies are using on-line, on demand forms of

training that can be tailored much more precisely to individual needs. Beyond

that, through distance learning or e-learning capabilities, faculty members

and other experts become available as on-line consultants to help

practitioners solve real problems. The problems and their solutions can then

be integrated into the company’s knowledge base to share the learning more

broadly and help employees bring the best approaches to bear on real issues.

Moving to efficiency, Knowledge circulates in a company in a very dynamic

way-moving, often erratically and unpredictably, to individuals to teams, to

communities, and to knowledge bases – and changing along the way.

Codifying knowledge is a key way of circulating it more broadly and making

it usable throughout the organization.

Codification, where possible, becomes very important in the cycle. By

codifying individual, team, and community know-how and making it

reusable, companies can improve the overall efficiency of the organization.

Efficiency, in other words, reflects a company’s ability to turn individual

learning, knowledge and ability about getting things done into repeatable

processes, many people can follow with good results.

The process of building organizational efficiency and competency is

also the process of building organizational memory. Memory allows us to

“know what we know” and supports the efficient use of processes and

practices that have already been used successfully. Taking new learning and

codifying it into organizational memory is an ongoing process. Rapid pace of

change requires that new processes and practices be invented to respond to

market and environmental demands. By intentionally linking the learning

that takes place as work gets done into a codified process, organizations can

increase the chances that everyone in an organization will learn from a

particular experience and that organizational processes are being redefined to

meet current needs the new process. The senior executive thought the ideas

was promising and described it at the meeting he was traveling to, which

happened to be about finding new business opportunities. Based on a report

The Role of Human Resources... 209

he wrote on the idea, the firm sent a delegation to the Asian firm to look at

the process more closely. They liked what they saw. The manufacturer

eventually licensed the process and used it to develop a profitable new

product line.

Innovation and Responsiveness

From Enhanced Responsiveness to Sustainable Innovation: Innovations

are responses to challenging problems or even desperate situations.

Creativity emerges when the existing solutions no longer serve their purpose

and new responses are called for. For example, the digital revolution that is

turning the business world inside out traces some of its technological roots to

the struggle to prevail in World War II and the Cold War. As scientists and

mathematicians on both sides searched for ways to automate the massive

calculations required to break enemy ciphers and determine ballistic missile

trajectories, they developed new technologies that became the seedbed for

today’s advances. In a period of crises, a century’s worth of abstruse

theoretical work in mathematics was integrated into the foundations of a

technological revolution that just keeps getting bigger.

Analysis of the Role of Human Resource in Creating Knowledge

Organization In SCCL

The role of Human Resource in creating knowledge organization in

SCCL in analyzed with “Rice Model” for this purpose four variables are used

which are:

• Responsiveness • Innovation • Competency • Efficiency Responsiveness concern to improve knowledge management

To examine the relationship between the executive and non-executive

towards responsiveness concern, the distribution of responses in rating of

strongly agree to strongly disagree were presented in the Table 1.

Journal of Commerce and Management Thought 5 - 2210

Table 1 : Responsiveness concern to improve knowledge Management

(Source: Compiled from Questionnaire Data) NOTE: Figures in parenthesis indicate percentage.

From the Table 1 it is observed that majority of respondents i.e., 46

percent perceived that Responsiveness concern vital information regards,

customers, competitor, suppliers and others. In that 24 percent of respondents

are non-executives agreed and 22 percent of executives are agreed regarding

responsiveness.

The 23 percent respondents are strongly agreed about responsiveness

concern improves in knowledge management of executives and non-

executives in that 13 percent are belongs Non-Executives and 10 percent of

executives are responds to responsiveness. The 18 percent of respondents felt

neither agree nor disagree towards responsive concern in that 11 percent of

executives and 7 percent of non-executives express their behaviour the

opinion about disagree has 9 percent expressed by executives and non-

executives and 6 percent of respondent like executives, and non-executives

strongly disagree.

In result of chi-square test obtained from the data revealed that the

observed value is less than at 5% and 1% levels significance therefore, the

hypothesis is accepted. It means that the responsiveness concern to improve

knowledge of executives and non-executives.

Innovation is interactive to knowledge management

An analysis of the relationship of innovation to knowledge

management, the distribution of responses in rating of strongly agree to

strongly disagree is presented in the Table 2.

The Role of Human Resources... 211

Table 2: Innovation is interactive knowledge management

(Source: Compiled from Questionnaire Data. NOTE: Figures in parenthesis indicate percentage)

From the table -2 it is revealed that in Executive category 27.50 percent

majority of respondents agrees innovation of ideas are interactive the

knowledge management. 12 percent of respondent expressed neither agree

nor disagree. 5 percent respondent expressed strongly agree the innovation is

more interactive tool for knowledge management, 3.5 percent respondent

expressed disagreed and only 2 percent respondents strongly disagreed that

the innovation is interactive to knowledge management.

In non-executive category a majority of respondents i.e., 21 percent

agrees that the innovation is interactive to knowledge management, 15

percent of respondent express neither agree nor disagree 8.5 percent

respondents express strongly agrees innovation is more interactive to

knowledge management. 4.5 percent respondents disagree and only 1 percent

respondent believes that the innovation is not interactive to knowledge

management. To test statistically applied in chi-square test, that the

calculated value of X2 (6.24) is less than table values of 5% and 1% of chi

square. Hence, the hypothesis is accepted that it can be concluded that the

innovation is more interactive to knowledge management.

Competency Concern Improves Skills of Employees

To examine the relationship between the level of employee’s skills and

competency, the distribution of respondent’s executives and non-executives

category is presented in the Table

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Table 3: Competency improves skills of employees

(Source: Compiled from Questionnaire Data)NOTE: Figures in parenthesis indicate percentage)

An observation of Table 3 indicates that, there is a maximum difference

between percentages of respondents who perceived competency program of

organization improves skills of employees. Among these executives and non-

executives. 34 percent of majority of respondents perceived to agree towards

competency to improve in skills (knowledge) in the category of executives

and 30 percent of non-executives. The opinion about skill improvement

strongly agreed by non-executive with 11 percent and 9 percent executives

express same opinion.

By observing of these two ratings 46 percent expressed skill

improvement 41 percent non-executives are expressed same above.

The expression of neither agree nor disagree has a percent in that 5

percent executives and 4 percent non-executives. In the non-executives 4

percent respondents, expressed and no one expressed strongly disagrees. In

the executives category, no respondents expressed their opinion towards

disagree and strongly disagree.

In this regard the chi-square test revealed that the observed value (7.14)

is less than the expected value at both level (1% and 5%) of significance.

Hence, there is reason to accept the hypothesis. Thus it can be concluded that

there is a relationship between improve competency as well as skill of

employees to knowledge management.

The Role of Human Resources... 213

Efficiency Concern to Work of Employees

To examine the relationship between executives and non-executives, the

efficiency contribution towards, work process of qualities of product or

service the distribution of respondent’s executives and non-executive

category is shown in the table 4.

Table 4 : Impact efficiency towards process of product/service of work

(Source: Compiled from Questionnaire Data NOTE: Figures in parenthesis indicate percentage)

By observing of these two ratings 46 percent from executive category

and 41 percent from non- executive category expressed that the competency

concern improves skills of employees towards that the organization becomes

as knowledge organization

The Table 4 reveals that majority of respondents 51 percent agree by

efficiency of employees in that 27 percent are belongs to non-executives and

24 percent executives express their opinion towards efficiency of work

process at product/service with quality. The 49 percent of respondents

strongly agreed that the efficiency of work process is played a vital role in

creating knowledge organization. Among these 26 present represent with

executive category and remaining 23 percent respondents from non-

executive category.

In this regard the chi-square test revealed that the expected value in

(8.24) less than the Table value at both levels (5% and 1%) of significance.

Hence the hypothesis is accepted then it can be concluded that there is a

relationship of efficiency of employees towards contribution of final product

of service attained quality.

Journal of Commerce and Management Thought 5 - 2214

Conclusion and Suggestions:

The major findings of the study are presented followed by a few

suggestions in the light of major finding.

The importance of knowledge for a clause competitive success has been

recognized.

Knowledge management is having the greatest impact on rapidly

changing environment.

The competency development is important area of knowledge

management. It involves analyzing the HR skills an organization needs to

meet the strategic objectives. Implementing to deliver these skills, evaluating

the extent to concern the end-results.

The role of knowledge management is to help SCCL determine what

their resources are, further investment should be placed to maximized the

value of intangible assets, and learn how best to manage the resources for the

future, to practices to assess the value and potential improvement in

efficiency.

In light of above finding the following suggestion have been offer to

make as meaningful tool. The competency and efficiency based an

improvement through

• Formal Training Programme. • Communication process • Codifying – circulating team

The SCCL may concentrate to improve knowledge organization

specification.

The strategy assets where the weakness and focus the weakness to build

the strengthen through

References

1. Davenport.T.H. & Short. J.E. (1990 summer)” The Industrial Engineering. Information

and Business process Rode Sign” Sloan Management Review PP 11-27

2. King, W.R. (1995, Winta) “Creating a strategic capabilities Architecture,” – Information

The Role of Human Resources... 215

systems management 11 (3), PP 67-69

3. Prahalad C.K. and G. Hamel (1990),” The core competence of the corporation” Harvard

Business Review (May-July 79-91)

4. Dr. B.Rathan Reddy, “Knowledge Management” Himalaya Publishing House (2007)

5. Voci, Elaine, Knowledge Management and E- learning, tools for the organisational

evaluation.

6. Argyrise “Organizational learning and management

7. Badet 2 E.B. “Making Brain Waves,” C/o. 9(7), PP 23-29

8. Bennis, W & Nannes B. Lerader, the Strategies for taking charge New York, NY Harpee

& Rao 1985.

The Authors

Dr. B.Sridevi is a Lecturer in the Department of Commerce, Govt. Degree College

for Women, Khammam, Andhra Pradesh.

Dr. V.Maheshwar is Grade – II Officer (Assistant) in Andhra Pradesh Civil Supply

Corporation Ltd, District Manager Office, Khammam, Andhra Pradesh.

Email: [email protected] • Received on: 14, Dec.2013

Journal of Commerce and Management Thought 5 - 2216

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