Organizations possess an attribute of learning and these organizations can sense changes in the internal and external environment. This phenomenon is known as the organizational learning (Argyris, 1999). Organizations learn through different experiences and individuals in the organization helps the organization to develop a mindset of learning through experiences.
Organizational knowledge is an essential part of every organization because it develops certain form of casual generalizations. For example sales increases in the month of December then an ‘XYZ’ organization can assume that it is because of Christmas. Similarly, managing these generalizations through knowledge management techniques can produce effective results for the organization. Many individuals and management gurus believe that these terminologies are just management fashion and fads (Wilson, 2002). However, different companies have produced favorable results through effectively managing the knowledge. The sales force at Frito-lay increased the sales of the company just by accessing more information and collaborating it with other members of the team. A knowledge management portal was developed at Frito lay that actually allowed the employees to access sales-related customer and corporate information and this centralization saves a hefty amount of time. A centralized portal served the entire organization and improved their sales trends (Shein, 2008).
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