Knowledge Management in Nongovernmental Organizations - Essay Example

Knowledge Management: USAID Business Report By Student’s Name Code +course name Professor’s name University name City, State Date Knowledge Management in Nongovernmental Organizations: USAID Executive Summary In the past two decades, the world has witnessed a growing number of projects supported by Non-Governmental Organizations (NGOs). The increase in the number of NGOs over the last two decades is attributable to the application of knowledge assets. Like for profit organizations, NGOs are required to manage their knowledge in order to achieve a competitive advantage. According to the Leavitt's model of organizational change, an organization must balance and coordinate the four subsystem of a much bigger system, including people, technology, task, and structure (Wang, 2013). According to Wang (2013) the nonprofit industry functions and operates uniquely, and therefore, requires both the “between” and “within” approach to knowledge management. This paper will look at the knowledge management practices by the United States Agency for International Development (USAID). Brief Description With globalization and advancement in technology, the world is slowly turning into a global village, and many impediments are being eliminated. More importantly, developing countries have also formulated policies to encourage nonprofit firms to set up operations locally. Nongovernmental organizations have been instrumental in the development of third world countries. In addition, NGOs helps to change the social structures, enhances equity, changes popular attitudes and assists in the eradication of absolute poverty in both developed and developing nations (Wang, 2013). USAID is an American non for profit organization, which was formed in 1961. USAID has its headquarters in Washington, D.C and is in charge of administering civilian global aid. The organization seeks to always reduce food insecurity and save lives during turbulent times. USAID is rated as one of the largest NGOs in the world (USAID, 2015). The Concept of Knowledge Management In the 21st century, both for profit and not for profit organizations are striving to build sustainable competitive advantages. These organizations are emphasizing on capabilities as well as intangible resources as key competitive tools. However, past research shows that knowledge is among the organizational assets that are managed least effectively (Chilton, 2013). The concept of knowledge management was not a common phenomenon until recently. Today, the concept has gained momentum as both for profits and Nongovernmental Organizations throughout the globe are using knowledge management in order to gain competitive advantage. According to Chilton (2013), knowledge management (KM) emerged as a discipline in the early 1990s, and was fuelled by the doubling computer power, propagation through consulting companies and conference promotion. In its basic form, knowledge management is about the effective usage of knowledge by organizations to enhance organizational success and attain competitive advantages (Chilton, 2013). Today, not for profit organizations, including USAID are coming face to face with the new realities, namely: learn and adapt or perish. On their part, NGOs are using their vast and varied knowledge resources and assets to sustain their competitive position. USAID, a global leader in providing humanitarian assistance to third world countries, continuously uses knowledge management strategies in order to assist humankind in need. Like other organizations, NGOs have a vast wealth of knowledge which is embedded on systems, people’s heads and work practices. However, the main challenge for NGOs is to be capable of capturing that knowledge and leveraging it throughout the organization. In an attempt to overcome this challenge, NGOs like USAID have been forced to codify knowledge, that is, converting knowledge into a form that is accessible, and portable to their employees (Remenyi, 2001). The following section discusses why KM strategies may be important to thе strategic management of USAID. Why Knоwlеdgе Mаnаgеmеnt Strategies May Be Important to thе Strategic Mаnаgеmеnt of USAID? Knowledge management enables USAID to make better decisions in a timely manner. USAID employs various professionals at all levels, including program facilitators, social workers, and counselors among others. The employees are tasked with the role of developing and running programs. In so doing, they require tacit knowledge. Thus, KM enables employees at USAID to transfer the tacit knowledge into explicit knowledge for use in decision making. The process of transferring this tacit knowledge into explicit knowledge enables the organization to modify, replicate and incorporate old programs into new and more efficient ones. Through knowledge management, USAID is able to analyze and combine financial data and health program for decision making. Thus, knowledge management enables the organization to deliver pertinent information for decision making. Through knowledge management, USAID is able to find relevant resources and information easily. For instance, knowledge management enables USAID to analyze the latest data regarding maternal health, nutrition and family planning. Therefore, the organization is able to analyze the latest trends, benchmark against other nongovernmental organizations and think critically. USAID has two types of valuable information to share, that is, knowledge related to health and knowledge of functional areas. Studies reveal that no one organization has all the knowledge required to solve problems that arise in their daily operations. In this regard, some Therefore, knowledge management plays a critical role of uncovering knowledge. Indeed, knowledge management makes USAID programs more effective. In addition, it increases both the enthusiasm and ability of employees to gain and productively apply knowledge and skills in tackling challenges and towards successful adaptation to changes. While it is true that a bit of healthy competition among staff members can increase productivity and motivation, too much tension can stand in the way of collaboration as well as good team results. In order to deal with negative destructive competition among colleagues at workplaces, non for profit organizations, including USAID uses knowledge management to understand and identify the familiar traits of these competitors. The unpredictability nature of the global economy means that knowledge-based resources such as the capacity to learn and personality traits like adaptability are very vital. In fact, USAID gives financial rewards to employees who demonstrate the capability to acquire and master new knowledge. Knowledge management plays a critical role of enabling USAID to overcome the limitations of an individual’s capacity. Through knowledge management, the organization is able to acquire more information than any one individual. This is because each employee performs different experiments. However, this requires coordination, and therefore, organizational leaders have to create communication channels. Knowledge management enables USAID to reuse ideas, proficiency and documents. In recent times, USAID have overwhelmingly institutionalized the culture of knowledge management where practices are embedded into the organization’s daily work practices. Thus, similar processes are repeated in all future related situations. When the senior leadership team at USAID has figured out ways of solving problems, they ensure that the same solution is replicated, and this saves time, minimizes rework, and sustains quality. Like other not for profit organizations, USAID operates in an environment that is innovation driven and work tends to be varied. The combination of knowledge and learning enables USAID to respond to fast changing expectations. USAID uses its knowledge capabilities to support various innovative and operational activities. The survival of NGOs in today’s world is dependent on the embracement of knowledge as an imperative resource that ought to be acquired, shared and controlled effectively. Since its inception, the organization has constantly acquired, assimilated, shared, and applied knowledge appropriately. Creating new knowledge and sharing it stimulates innovation, and this has enabled USAID to achieve remarkable growth. USAID has over the years used technology to share and organize knowledge. In this regard, USAID has been able to achieve efficiency and effectiveness. In addition, information technology enables USAID workers to interact among themselves. Thus, knowledge management has led increased job satisfaction among USAID’ employees. Higher levels of employees’ satisfaction are achieved by allowing them to take initiatives, and utilize their skills and talents fully. USAID conducts knowledge audits regularly with a view of identifying the most knowledgeable people. Adopting of knowledge management in USAID is not a complex process because employees have already institutionalized a culture of using knowledge management in their daily routines. Partnering and collaborations offer a means for non for profit organizations like USAID to directly benefit from the entire supply chain and remain the most important channel of enhancing the performance of organizations through value addition to an organization’s activities, and improving competitiveness through an efficient sharing of skills, knowledge, information, and resources. Working teams at USAID benefit from the knowledge and skills of individual members. Groups are complex dynamic entities, and therefore, their effectiveness depends on effective interaction. In large organizations like USAID, there are many people in various departments, and therefore, it is not possible for leaders to know about everyone else. Thus, team leaders at USAID use knowledge management to interact with team members. As a result, team leaders are able to take advantage of existing experience and expertise. Knowledge management enables senior leaders at USAID to communicate useful information to employees quickly. Waldeck, Kearney & Plax (2012) argued that effective communication is important in any organization, without which, the organizational goals may not be achieved as a result of misunderstandings. However, due to the larger differences between employees in a large organization like USAID, increased communication is required so as to enhance group cohesiveness. Clear communication plays a vital role in the team development. Without this element, even the simplest norms may be misunderstood or interpreted incorrectly. The lack of communication not only causes the group to be unable to understand norms, but also, makes it harder for conflicts to be resolved. It is increasingly important that the group is able to resolve issues in order for them to overcome challenges (Clarke, 2004), Furthermore, for the senior managers to achieve good working relationships with their colleagues and employees, they must ensure that they employ the most effective means of communication to help eliminate suspicion and create trust between employers and employees. USAID uses search engines, including RSS feeds, personalized portals and targeted subscriptions, to enable employees search for any information through a simple search. Employees experience uniqueness since the search engines are fast and very accurate. In addition, the search engine interface has more than 100 languages, making it usable and helpful for USAID employees in various parts of the world (Ohkubo et.al, 2013). Additionally, sharing and appropriate application of knowledge at USAID leads to waste minimization, better product development, innovation of products, improved quality, improved service delivery among others. Hence, for optimal growth and performance, there is need for firms to integrate and share knowledge. Knowledge acquisition comprises commitment to learning, open-mindedness, shared vision, and intra-organizational knowledge sharing. Knowledge sharing refers to collective beliefs or behavioral routines related to the spread of learning among different units within an organization. Sharing knowledge and expertise across the organization plays an imperative role of creating synergy (Davis, 2008). Knowledge sharing spurs innovation, and therefore, USAID is able to meet the diverse needs of people throughout the globe. Knowledge management helps USAID to avoid redundant effort. Thus, it reduces the tendency to spend time repeating the same thing. Doing the same thing over again is extremely costly, time consuming and demoralizing. By avoiding duplication of tasks, the organization has more time to accomplish crucial tasks. Moreover, globalization has made the economy of individual nations more exposed to unfavorable events or crisis due to less segmentation of the global market place. The impact of the current financial crisis is biting all organizations. Nongovernmental Organizations throughout the world find themselves in a particularly vulnerable position. NGOs are becoming subject to the budget cuts while as a short term measure to reduce their spending. Budget cuts are becoming more severe year by year with lean budgets. Budget cuts are already causing harm and disruption to many not for profit organizations. However, some renowned NGOs like USAID have been able to stay afloat in the gloomy global economic state due to well-structured knowledge management plans adapted. Internal strengths of USAID as a result of the continuous knowledge acquisition and sharing as well as knowledgeable workforce have also contributed to their resilience. Conclusion From the above analysis, it is evident that knowledge management strategies are important to thе strategic management of USAID. In today’s revolving economy, USAID has been able to achieve remarkable growth and to attain a competitive edge. Indeed USAID has established itself as a knowledge creating and utilization Non Governmental Organization. Technology has provided USAID with a platform through which it can effectively share and manage knowledge. The ability of USAID to attain and maintain a preferential position in a contemporary world is reliant on its capacity to create, and when required, transfer knowledge. USAID has the capacity to create an environment that is favorable to learning and adaptation of knowledge and skills to counter prevailing circumstances faster, and this has enabled the organization to attain sustainable competitive advantage. Thus, not for profit organizations should adopt a continuous learning culture because, while a single instance of organizational learning may lead to the practices, processes, and skills that are relatively easy to duplicate, continuous organizational learning lead to deep-rooted skills capable of producing cumulative effects which are much more difficult to imitate by competitors. Reference List Chilton, M.A. 2013. Knowledge Management and Competitive Advantage: Issues and Potential Solutions: Issues and Potential Solutions. Hershey, PA: IGI Global. Clarke, P. 2004. Groups Work: Collaborative Problem Solving for All Abilities, Part 6. London: Heinemann. Davis, J. R. 2008. Does Environmental Scanning by Systems Integration Firms Improve Their Business Development Performance? Michigan: ProQuest. Ohkubo, S., Sullivan, T. M., Harlan, S. V., Timmons, B. T., & Strachan, M. 2013. Guide to monitoring and evaluating knowledge management in global health programs. Baltimore, MD: Center for Communication Programs, Johns Hopkins Bloomberg School of Public Health. Remenyi, D. 2001. Second European Conference on Knowledge Management: Bled School of Management Bled, Slovenia, 8-9 November 2001. United Kingdom (UK): Academic Conferences Limited. USAID. 2015. U.S. Agency for International Development. [Online]. Available at http://www.usaid.gov/ Waldeck, J., Kearney, P. & Plax, T. 2012. Business and Professional Communication in Digital Age. London: Cengage Learning. Wang, L. 2013. Poverty Alleviation Investment and Private Economy in China: An Exploration of The Guangcai Programme. New York (NY): Springer Science & Business Media. Read More