THE IMPACT OF KNOWLEDGE MANAGEMENT ON ORGANIZATIONAL PRODUCTIVITY IN NIGERIA (A STUDY OF NESTLE NIGERIA PLC)

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ABSTRACT

Retention of enterprise of key personnel and improved interaction between people, technology and processes continue to drive investments in knowledge management (KM) initiatives. Since seventy percent of the employees knowledge is tacit knowledge that is stored in long-term knowledge resources and activities. An organization continues to be challenged by the dynamic nature of competitive global market place, the necessity to outsource critical knowledge tasks and manage rapid turnover of key personnel, it has become imperative that managers implement knowledge management (KM) practices. An effective knowledge management (KM) application for preserving knowledge base within the firm is presented. The study was carried out in Nestle Nigeria Plc Enugu Depot. The data for this research was collected from the distribution of questionnaires to various respondents. A total of thirty questionnaires were distributed in which twenty seven were completed and returned. The statement of the problem deals on how an organization have the problem of planning for the human resources recruitment, selection and employment of qualified persons who are knowledgeable enough to acquire and manage for efficiency. The result/findings of the research show that there is a relationship between knowledge and information, culture and skills as these cannot do without the other. The study therefore recommends that the proper use of knowledge management and information technology develops an organization capacity to acquire, share and utilize knowledge in ways to improve its survival and success. Finally, proper knowledge management helps to protect, exploit intellectual properties to avoid brain drain and build and sustain competitive advantage.

                                                                          Nwobodo U.P.

TABLE OF CONTENTS

Cover page   –        –        –        –        –        –        –        –        –        i

Title page     –        –        –        –        –        –        –        –        –        ii

Certification page    –        –        –        –        –        –        –        –        iii

Dedication    –        –        –        –        –        –        –        –        –        iv

Acknowledgement   –        –        –        –        –        –        –        –        v

Abstract       –        –        –        –        –        –        –        –        –        vi

Table of content      –        –        –        –        –        –        –        –        vii

Chapter One: Introduction

1. 1    Background of the Study:  –        –        –        –        –        –        1

1.2     Statement of the Problem: –        –        –        –        –        –        4

1.3     Objectives of the Study:    –        –        –        –        –        –        6

1.4     Research Questions:          –        –        –        –        –        –        7

1.5     Scope and limitations of the study:        –        –        –        –        8

1.6     Significance of the study:   –        –        –        –        –        –        9

1.7     History of Nestle Foods Nigeria plc:       –        –        –        –        9

1.8     Definition of Terms: –        –        –        –        –        –        –        13

Reference     –        –        –        –        –        –        –        –        14

Chapter Two: Review of Related Literature

2.1     concept of knowledge management:      –        –        –        –        15

2.1.1  Business process re-engineering (BPR):  –        –        –        –        19

2.1.2. Aging work force:   –        –        –        –        –        –        –        20

2.1.3. Business continuity planning:       –        –        –        –        –        21

2.2     Building a knowledge reserve:      –        –        –        –        –        23

2.3     Elements of knowledge management:-   –        –        –        –        27

2.4     Drivers’ of knowledge management and knowledge

management enables:       –        –        –        –        –        –        29

2.5     Commercial knowledge economic models within the firm.      –        31

2.5.1. Managing commercial knowledge for economic value   –        –        33

2.5.2. Knowledge management and innovation –        –        –        –        34

2.5.3  Knowledge management and ex-novation         –        –        –        34

2.5.4. Knowledge management and cash flow cycle     –        –        –        35

2.6     Types of knowledge management          –        –        –        –        35

2.6.1  Knowledge management framework       –        –        –        –        36

2.6.2. Effective knowledge dissemination for productivity in nestle food    37

2.7     Managing knowledge to build and sustain competitive

advantage in nestle Nigeria plc.   –        –        –        –        –        39

2.8     Implications for creating competitive advantage:        –        –        41

2.10   purpose of knowledge management in nestle Nigeria Plc

Enugu depot –        –        –        –        –        –        –        –        42

2.11   Harvesting information for meaningful knowledge       –        –        44

2.12. Knowledge and information filtering for efficiency in Nestle    –        46

2.13 Knowledge management/ database configuration –        –        –        48

2.14 Interrelatedness of knowledge work processes and

        social context –        –        –        –        –        –        –        –        50

        Reference:      –        –        –        –        –        –        –        –        51

Chapter Three: Research Design and Methodology

3.1     Research Design:    –        –        –        –        –        –        –        62

3.2     Source of data:       –        –        –        –        –        –        –        29

3.2.1. Primary data          –        –        –        –        –        –        –        –        63

3.2.2. Secondary data       –        –        –        –        –        –        –        63

3.3     Population of the study:    –        –        –        –        –        –        30

3.4     Sample size and sampling technique       –        –        –        –        64

3.5     Instruments for data collection    –        –        –        –        –        66

Reference:    –        –        –        –        –        –        –        –        69

Chapter Four: Data Presentation and Analysis

4.1     Data presentation and analysis:   –        –        –        –        –        70

4.2     Analyses of the questionnaires:    –        –        –        –        –        32

Chapter Five: Summary of Findings, Conclusion and Recommendations

5.1     Summary of Findings:        –        –        –        –        –        –        81

5.2     Conclusion:   –        –        –        –        –        –        –        –        84

Bibliography: –        –        –        –        –        –        –        –        –        86

Appendix: Questionnaire:  –        –        –        –        –        –        –        88

LIST OF FIGURE

Figure one    –        –        –        –        –        –        –        –        –        26

Figure two    –        –        –        –        –        –        –        –        –        28

Figure three  –        –        –        –        –        –        –        –        –        31

Figure four    –        –        –        –        –        –        –        –        –        51

Figure five     –        –        –        –        –        –        –        –        –        52

LIST OF TABLE

Table 4.1:     Relationship between the organization and

mistakes among staff.       –        –        –        –        –        70

Table 4.2:     Employees and knowledge organization are

made accessible.     –        –        –        –        –        –        71

Table 4.3:     M. I. S. Are integrated and continually

undated in the organization.        –        –        –        –        72

Table 4.4:     Barriers to the use and exchange of

Knowledge.   –        –        –        –        –        –        –        72

Table 4.5:     Employees have the skills to adequately

categorize use and maintain knowledge. –        –        –        73

Table 4.6:     Organizational structure is simple,

hierarchical and autonomous.       –        –        –        –        73

Table 4.7      There are active programmes for

developing ideas where knowledge is generated         –        74

Table 4.8      Organization is characterized by diversity.        –        –        74

Table 4.11:   Management has relevant knowledge

to ensure organizational success.  –        –        –        –        75

Table 4.12:   Manager are committed to developing

employees knowledge.      –        –        –        –        –        75

Table 4.13:   Managers are action oriented and

facilitate the process of learning by practice.    –        –        76

Table 4.14:   Knowledge managers coaches and

facilitate the learning process.     –        –        –        –        77

Table 4.15:   Knowledge management is a strategic

theme that is part of organizational ambition. –        –        78

Table 4.16:   There are continuous collective learning to

develop the core competencies of the organization.    –        78

Table 4.17:   Customer information is strategically

valuable to the organization.       –        –        –        –        79

Table 4.19:   Knowledge gaps are continually mapped out     –        –        79

Table 4.20:   Communication and information system

are used to broadly knowledge    –        –        –        –        80

Table 4.21:   Is obtained and developed knowledge

continually documented and made

available to every one in the organization?       –        –        81

Table 4.22:   Knowledge management and goal accomplishment     –        81

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Knowledge management is concerned with the creation of structures that combine the most advanced elements of technological resources and the indispensable input of human response and decision making (Scarnbrough, 1999:70). Corporations have always had experience and integrate it with knowledge acquired from outside sources (Polanyi, 1958).

However, not until recently have scholars and practitioners alike become increasingly attracted to the science of applied knowledge within organizations. This work investigates the vital link between the management of knowledge in contemporary organizations and the development of sustainable competition for efficiency in the Nestle Food Nigeria Plc Enugu Depot. The researcher chooses Nestle Food Nigeria Plc as it deem necessary considering the fact that no virile manufacturing organization can perform effectively without adequate information gotten from reliable sources and from those who are knowledgeable about the facts. The promising field of knowledge management (KM) is differentially defined from other more traditional information technology functions and the evaluation of knowledge management discussed.

The abstract construct of knowledge can be understood through its relationship to data and information (Parikh, 2001:5), posits that data are merely raw facts collected from business transactions and activities and data must be structured into a meaningful, composite model to become information. Once information is created from such of constitution of pure data sets, it is able filtered through a relative model of understanding. Thus, knowledge is created only as information is interpreted and evaluated from a contextual mental model. Individuals and companies as whole have different mental models (Senge, 1994:40), the knowledge gleaned from the same compilation of information can differ greatly not only in quality but also in applicability. Knowledge management thus differs from information management because the former implies a persistent, international effort of extracting from available what is critical for business success, while the latter is more concerned with making critical information available in structure. (Bolterll, 2001:19), knowledge management is therefore the creative mining of information from diverse sources with the purpose business opportunities in mind. As a firm works diligently towards pursuing its information assets through the multitude of perceptual filters available, high impact matchless gems are unearthed, which have the potentials to substantially affect the bottom line.

The recognition of knowledge management as an imperative for improving the knowledge base of an organization will provide an impetus for organizations to understand and nature their knowledge resources and activities. The current global financial and economic conditions have made companies realize the value of their corporate knowledge and seek effective methods to reuse that knowledge.

Since seventy percent of organizational knowledge is in the mind of employees (knows as tacit knowledge) while just 30 percent is in externalized forms (known as “explicit” knowledge), it has become very important to harvest and document employee’s long – term memory, therefore, the creation of a knowledge reserve is a necessary for capturing innovative ideas from individuals as well as groups while interpreting, congealing and repackaging the collective conclusions into organizational knowledge.

In the landscape of modern business, companies are persistently striving to create mechanisms for differentiating themselves from their competitors within given markets. Many markets are quite saturated with numerous firms endeavoring towards like core competencies, organizations are forced to dissect their business processes for the purposes of determining what can produce a sustainable competitive advantage. The information age and the changes created by it have shifted firms away from being myopically concerned with the exploitation of tangible assets towards a steadfast and holistic interest in leveraging in tangible assets towards a steadfast and holistic interest in leveraging intangible assets as well. The management of information as a key to grasping and retaining competitive advantage has recently evolved into the more strategically focused management of knowledge.

1.2    STATEMENT OF THE PROBLEM

Traditionally, it is the function of human resources department of every organization to plan for the human resources needs of the organization.

THE IMPACT OF KNOWLEDGE MANAGEMENT ON ORGANIZATIONAL PRODUCTIVITY IN NIGERIA (A STUDY OF NESTLE NIGERIA PLC)