Developing the Strategic Knowledge of a Company

‘The Management Theory’ by Peter Drucker is used as a theoretical basis of the position held in the essay. In every aspect discussed, the paper reveals how it helps in knowledge acquisition before strategic decisions are made. The importance of this knowledge is further emphasized throughout the paper in that strategic decisions affect organizations on a long-term basis. A conclusion is eventually provided as a short summary and as a re-emphasis of the position held in the essay. Key Words: strategic knowledge; development/ acquisition of strategic knowledge; systems approach/ thinking; organization; company; management Introduction Organizations are subjected to ever-ever increasing challenges that emanate from the pressures in the marketplace or the nature of the workplace itself. However, by basing this view from a professional context and sustaining the position based on well-structured arguments, it is evident that acquiring organizational strategic knowledge is not an easy task.

According to Brătianu (2015), by knowledge acquisition, it entails any as well as all methods of knowledge gathering on how to solve challenges. The purpose of collecting this knowledge is to construct automated problem-solvers as well as intelligent-assistants to help finding solutions to the complex tasks. It is for this reason that a systems thinking approach is adopted in strategic knowledge acquisition as organizations do not operate as parts of a system; rather, as a whole system. There are two types of knowledge namely tacit knowledge and strategic knowledge. The system paradigm entails a process of thinking about the strategic environment and the development of processes in organizations towards achieving strategic goals. According to Shaked and Schechter (2017), in strategic knowledge acquisition, the systems paradigm not only comprises of tools; rather, it expands beyond this aspect by being sensitive to the sensitive nature of the environment where businesses operate.

This involves an understanding of the structure’s role in creating the conditions faced by an organization, recognizing that there exist powerful laws of operations that are in operation and unknown to the organization, and realizing that there are consequences to every action. A systems paradigm mostly involves a change from observing data or events towards identifying behavioral patterns overtime and also surfacing the underlying structures responsible for driving the patterns and events. Shaked and Schechter (2017), further assert that through gaining knowledge about the structures that are not serving the organization well, it helps in expanding the available choices and at the same time enables to come up with long-term solutions to organization problems. However, there is negative entropy created by the well-ordered processes as it is a primary resistance to disorganization.

Additionally, it may limit search for important knowledge on the market’s future. Communities of Practice Also referred to as networks of premium or learning systems, networks of training developed from casual systems and are critical sources of developing strategic knowledge of an organization. According to Wenger (2000), communities of practice entail a new organizational form that is made up of an informal network that is united by passion and expertise for combined enterprise. Members of this informal group share experiences and knowledge in both creative and free-flowing manner to thread the best approaches to challenges. However, there is a challenge in gaining knowledge from communities of learning based on the relationship they have with the respective organization seeking strategic knowledge. This is primarily based on the likelihood of a conceivable conflict between a person’s enthusiasm for a particular information territory and the key drivers of a firm.

Irrespective of this limitation, ddd claims that communities of learning have been proved to be important sources of organization’s strategic knowledge. Intellectual Capital and Social Networks The introduction of social networks has played a significant role in improving the level of communication and interaction between individuals and organizations. The ease of accessibility to information in a timely and cheap manner has been central to social networks. Through applying such a method, an organization may gain important insights, which may add value while developing strategic knowledge. Performance Management It entails a procedure by which the administration and the representatives cooperate in arranging, checking, and inspecting the work targets of an individual employee as well as the overall contribution towards achieving organizational goals and objectives.

As opposed to an annual performance review, performance measurement involve a continuous process where objectives are set, progress assessed, and feedback given towards ensuring that all individuals meet their individual and organizational goals. Evaluation of performance management is an important aspect while developing a firm’s strategic knowledge. This is a crucial source of information, especially when dealing with the aspect of performance measurement. For example, performance management is believed to be a foundational knowledge of talent. Where the management has insight into the skills and abilities of the workforce, it becomes easy to understand the possible contribution and important knowledge the employees may possess that is essential in driving the strategic goals. Irrespective of the identified benefits of performance management in developing strategic knowledge, there are some challenges associated with this knowledge source.

According to Stein (2016), these challenges are experienced if the journey to performance management was not effective. Examples comprise of a poorly structured strategy, failure to communicate to the stakeholders the set strategy, and failure to measure progress. By doing this, workers feel like part of the overall organization and are thus willing to contribute in strategic knowledge acquisition considering that they are associated with the everyday running of the association. The aspect of knowledge work deals with employees involved in problem-solving and through creativity. The theorist emphasized on the importance of organizations to cultivate a culture where employees cultivate ideas and insight. Maciariello (2016), asserts that where such a culture is instilled in an organization, it is easier to develop strategic knowledge of an organization from within as the overall workforce is comprised of individuals with ideas and ready to contribute towards addressing challenges within the organization.

Management by objectives, on the other hand, refers to a process that emphasizes on the need of all employees irrespective of their levels to work together and possess equal say. The Management Theory by Peter Drucker serves in supporting these aspects as important sources when acquiring a company’s strategic knowledge. References Brătianu, C.  Organizational knowledge dynamics: Managing knowledge creation, acquisition, sharing, and transformation. Hershey, PA: Information Science Reference, An Imprint of IGI Global. Gruber, T. doi:10. ch009 Maciariello, J.  A. Drucker, Peter: The Drucker Strategic Management System.  The Palgrave Encyclopedia of Strategic Management, 1-10. mil/au/awc/awcgate/ndu/strat-ldr-dm/pt1ch4. html Novis, G.  Performance management. Johannesburg: Freeman Productions. Shaked, H. 805 Stein, J. Editorial.  Performance Measurement and Metrics, 17(1).