EMPLOYEE ENGAGEMENT AND BUILDING KNOWLEDGE CAPITAL

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MBA Business Management

EMPLOYEE ENGAGEMENT AND BUILDING KNOWLEDGE CAPITAL

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Submitted by

Ervin Johnson

To

 Dr Kelvin Pearce

TABLE OF CONTENTS

  • Table of Contents….                                                                                   02
  • Introduction......                                                                                         02
  • 1.1.Introduction......                                                                                     02
  • 1.2.Research Aim ...............                                                                        07
  • 1.3. Research Objectives.....       `                                                                07
  • Literature review...............                                                                        08
  • Research Methodology...............                                                               17
  • 3.1. Introduction ...............                                                                           17
  • 3.2.Research Approaches….                                                                        18
  • 3.3.Research strategy ...............                                                                   19
  • 3.4.Research in an organization                                                               19
  • 3.5.Primary Research and Data collection .........                                         19
  • 3.6. Questionnaire…..                                                                                  20
  • 3.7. Self Administered Questionnaire…..                                                    20
  • 3.8. Interviews…..                                                                                        20
  • 3.9. Quantitative Research…                                                                        20
  • 3.10. Data analysis….                                                                                   21
  • 3.11.Ethical Consideration .........                                                                  21
  • Results  ...............                                                                                         22
  • Analysis…..                                                                                                  27
  • Conclusion….                                                                                              32
  • References ...............                                                                                    33

CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION

The management of thinking has bequeathed us a legacy of thinking about business organizations as machines, and management practices it advocates are rooted in engineering. In 1911, The classic Fredrick Winslow Taylor's Principles of Scientific Management established the engineering model for several generations.
Taylor studied repetitive, menial tasks and worked out how to best perform them, as a machine would. A manager is a developer of robotic workers, the essence of the management plan was perfect and the people exactly what to do and tell you how to do that. His methods resulted in significant improvement in efficiency. But he believed they should be applied to each task in a business, not just repetitive, trivial one. He believed that the practices of the pre-industrial era, when managers encouraged each workman, his toughest job, though the traditional knowledge, his skill, his ingenuity, and goodwill in a word, his initiative to use its best efforts 'should' be sent to the history.

Today, most functions of the type studied Taylor indeed performed by the actual robots. But more than ever business requires a high degree of knowledge and experience to respond quickly to changing circumstances. Fifty years ago, Microsoft, Wal-Mart, Intel, Apple, Cisco, Oracle, and Google does not even exist. Today each one has a market value of over $ 100 billion. Meanwhile, many companies trading giants were in 1960-including Bethlehem Steel, U.S. Steel, CBS, RCA, GTE, ITT and LTV have disappeared, shrunk, or merged into other companies. These dramatic shifts in fortune are striking examples of the importance of the term "Knowledge Capital".(Financial Times) Google, the most dominant search engine on the internet, was founded in 1998 by Larry Page and Sergey Bring, who were graduate students at Stanford University. Apple, the oracle Silicon Valley Company that became an icon of personal computing, has risen to the greatest heights in the years since Steven P. Jobs returned to its helm and opened horizons beyond the desktop to make a valuable technology company by measuring its mind power. Microsoft is again one of the richest and most successful companies in the world. More importantly, from a human resources perspective, the fact that Microsoft is merely an employee-driven organization called. While other organizations base their success on improved manufacturing techniques, better technology, Microsoft's success is based on the effectiveness of their employees. (Harvard Business Review)

“Take our 20 best people away, and I will tell you that Microsoft would become an unimportant company”

Bill Gates, CEO of Microsoft (1996)

These innovative organizations growth to a significant size is, at first, surprising, but possible because of the changing trends of the capital markets. In the private sector, capital markets connect investors who have money with entrepreneurs who have ideas but little money. “Ideas” is the magic word in today’s capital markets Organizations today are striving to increase productivity, improve service, and ensure that the company can adapt to ever-changing business conditions. And success on all this front depends on the organization’s peoples—an asset that executives regularly cite as a primary differentiator in a fast-moving, knowledge-driven world. (Harvard Business Review)

“I believe in the adage: Hire people smarter than you and get out of their way”

Howard Schultze, CEO of coffee chain Starbucks (1994)

These innovative organizations are solving complex problems by building management talent. Human resource management plays a significant role by being involved at the strategy, policy and decision making process. The human resource management team ensures this is delivered by recruiting and selecting the right and qualified staff to ensure the goals and objectives of the organization are achieved, to deliver improved services in ever changing World. They offer their staff better compensation and career opportunities. They have greater capacity to conduct experiments, assess innovations, and share best practices across multiple locations. In an effective system, innovative organizations with the best human resource management and social change agendas would grow in scale and scope while less effective and efficient ones would diminish and eventually disappear. (Ian Bardwell et al, 1997)

For much of the twentieth century, labor and capital fought violently for control of the industrialized economy and, in many countries, control of the government and society as well. Labor and Capital were the driving forces of the economies. In the developed and globalized world of today, Capital and talent are falling out, this time to become the driving forces for strategic decision making from the knowledge economy. In fact, capital is no more as scarce as it used to be, especially in developed economies. But there is a shortage of talent, and it is becoming more acute when companies are struggling to make the transition from a production-based to a knowledge-based economy. (Roger et al, 2002)

Therefore in today's business environment, strong forces of competition and globalization have created an urgency to focus how an organization controls and nurtures its intellectual capital. The concept of knowledge and its management has gained currency and momentum because technology has enabled thoughts and ideas to be more easily generated and distributed. With an increased application of technologies such as Internet, customer relationship management (CRM), and advanced software capabilities, the time has come for discussion of a new paradigm for knowledge management. (Bruce, 2007)

We can conclude that in the knowledge-based economy, value is the product of knowledge, information, and innovation. Companies cannot generate profits without the ideas, skills, and talent of knowledge workers, and they have to bet on people—not technologies, not factories, and certainly not capital.

In fact an organization’s only appreciable asset is Knowledge Capital. As the need for intellectual capital increases, companies will be finding ways to ensure that it develops and grows its Knowledge Capital. In an economy where the only certainty is uncertainty, the one sure source of lasting competitive advantage will alone be knowledge. (Pentz, 2000).

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1.2 RESEARCH AIM 

The research gives an insight into the evolution of knowledge capital and a view of organizations as organisms rather than machines. Present world organizations aims at performing repetitive tasks efficiently but also encouraged the use of initiatives to deal with the non-repetitive tasks that they regard as far more important, by engaging the entire workforce and constructing a portfolio of knowledge workers.

  

1.3 RESEARCH OBJECTIVES

  • To understand the principle of independent thinking obedience.
  • To understand that the gap between plans and outcomes concern knowledge management.
  • Effective human resource planning involves employee engagement.
  • Effectively using ...

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