Ikm individual final copy

University of Wales

&

Management Development Institute of Singapore

SUBJECT (MBA) Information and Knowledge Management

LECTURER Mr. Jeffrey Tan

BATCH MBWD5 1230A

TITLE Assignment 2

Name of Student

(full name as in the attendance file)

FIN No. Serial No. in

marksheet

Signature

MANDEEP BHULLAR

Email address of student:

Submitted on Due Date? YES/NO (Date submitted: 09/ 07 /2012)

Submitted soft copy? YES/NO (Date submitted: 09 /07 /2012)

Word limit observed? YES/NO (No of words: 4045)

1

TABLE OF CONTENTS:

EXECUTIVE SUMMARY................................................................................... 3

CHAPTER 1: INTRODUCTION........................................................................ 4

CHAPTER 2: IKM THEORY............................................................................. 6

CHAPTER 3: CASE STUDIES

Toyota.................................................................................................................... 13

Rolls Royce........................................................................................................... 16

Nissan ................................................................................................................... 18

CHAPTER 4: DISCUSSION................................................................................. 20

CHAPTER 5: CONCLUSION.............................................................................. 21

LIST OF REFERENCES....................................................................................... 22

2MANDEEP BHULLAR – G1146823W IKM

EXECUTIVE SUMMARY:

Knowledge is the most important asset among all the other corporate assets in today’s competitive world. So it becomes more necessary for organizations to quantify the knowledge within the minds of the knowledge workers.

The objective of this report is to study about tacit knowledge transfer techniques in Automobile in-dustry and to discuss the case studies. The business objectives of Automobile industry are provided and by following them everything is explained. Based on elements the business models which are there in knowledge transfer are given in detail. The knowledge transfer models which are explained are related to tacit knowledge techniques.

The theory explains two knowledge management models, Nonaka and Takeuchi KM model and 4I Model. The case studies involve three automobile companies. The Toyota, The Rolls Royce and fi-nally The Nissan are the three companies, which has been studied in detail. The knowledge transfer techniques practised by each of them are actively related to the theories of IKM models.


An investigation and evaluation of the tacit knowledge transfer techniques

used by automobile industry.

Chapter 1: INTRODUCTION

1.1Background:

Industries implementing Knowledge Management practices face a number of problems

while deciding the approaches they want to follow. Knowledge management includes var-

ious processes which manage the knowledge of an organization. Knowledge Management

approaches are applied on two forms of knowledge: tacit and explicit. Explicit knowledge

is present in tangible forms and many people can share the same explicit knowledge. On

the other hand, tacit knowledge is the knowledge held by an individual in his head and it

is more difficult to extract and express it clearly. (Dalkir, 2005) Tacit knowledge is

unique and therefore it’s very important to manage it and retain it. It is obtained by expe-

riences and learning at work as well as daily life.

Tacit knowledge of employees is an asset for an organization as success of an organiza-

tion depends upon its ability to make best use of its knowledge assets. The knowledge of

automobile industry is generally tacit and remains within the heads of its employees.

Therefore there is a need to transfer the tacit knowledge of employees into forms which

can be retained by the company and used in the future. Also if the tacit knowledge of a

knowledge worker is retained by an organization then it can be used by other employees

for bringing competitive advantage to the company.

To retain the tacit knowledge of automobile companies, managers need to find the em-

ployees possessing the knowledge which is useful for the company in present and future

and then to arrange the kinds of interactions between knowledgeable individuals that will

help the organization perform its current tasks, transfer knowledge from one part of the

organization to another. Automobile companies need transfer knowledge in between vari-

ous units of the company. Tacit knowledge transfer at different levels in automobile in-

dustry helps in delivering innovative products.


1.2 Problem Statement:

What are the various ways to capture the present tacit knowledge of employees so that it can

be used and shared among the organization members?

1.3Objectives:

· To capture the tacit knowledge of potential employees before they leave an organiza-

tion.

· To transfer important information from well experienced employees to new employ-

ees.

· To fill the knowledge gaps among the employees in different departments of company

by sharing knowledge.

1.4 Methodology:

Methodology of this research article can be divided into three steps in which work has

been done. First step involves collection of relevant data and case studies. Tacit

knowledge theory is taken from Knowledge Management textbooks and case studies

are taken from online articles and journals. Scanning of data is done to extract the use-

ful data from all the collected data. This is the most crucial work as using the irrele-

vant data can move the research in wrong direction. In step two after brief introduc-

tion theory related to topic is presented. Third and the final step include description of

three case studies of automobile industry, their relationship to theory and conclusion.

At every step work done is related to the problem statement to make sure that the re-

search article is able to answer it.


Chapter 2: IKM THEORY

In today’s competitive world knowledge is an important resource of an organization

which it is not evenly distributed within an organization so there is a need to protect,

cultivate and share this resource among all the members of the organization. The type

of knowledge referred here is the experiences and expertise in the mind of knower.

Tacit knowledge transfer is an important approach followed by various industries so

that expertise of a person in an organization is available to all those who presently

need it and can be retained by the organization for future generations. Knowledge re-

mains tacit until it is within the head of an individual and once it’s shared with others

it becomes explicit. (Dalkir, 2005) Explicit knowledge can be used in multiple ways

by an organization.

There are various IKM models which describe the tacit knowledge transfer. Some of

them are:

The Nonaka and Takeuchi Knowledge Spiral Model

The 4I Model Of Organizational Learning

2.1 The Nonaka and Takeuchi Knowledge Spiral Model

This model is based on understanding the knowledge and converting it from tacit to

more explicit forms and back again. According to this model there are four modes of

knowledge conversion.

Socialization : From tacit knowledge to tacit knowledge

Externalization: From tacit knowledge to explicit knowledge

Combination: From explicit knowledge to explicit knowledge

Internalization: From explicit knowledge to tacit knowledge


Source: http://nicosord.hubpages.com

Socialization (tacit to tacit):

Almost all the knowledge resides in the brain of an individual and there should be a

way to transfer this knowledge. Socialization aims at transferring tacit knowledge by

face-to-face social interactions. It involves attaining of mutual understanding by shar-

ing of mental models. There are many experiences, expertise and skills held by an in-

dividual which can be never shared without socialization. It is the easiest way of ex-

changing knowledge because we can socialize with people anytime and anywhere, it

might be travelling in the train or meeting at the coffee machine. This way may be

useful to gather the tacit knowledge of employees retiring and leaving the company.

Advantage of this method is also its disadvantage because even after sharing the tacit

knowledge it remains tacit only because it is not recorded into any form. Although it

is an effective method of knowledge transfer but it is very time consuming and all

knowledge cannot be easily distributed using this mean.

Externalization (tacit to explicit):

The externalization process gives tangible form to tacit knowledge and converts it to

explicit knowledge. It is the process in which tacit knowledge becomes explicit and

can take shape of concepts, models, metaphors or hypothesis (Nonaka and

Takeuchi,1995, p.4). This process involves a third person who will interview the in-

dividual with tacit knowledge to extract the knowledge content and convert it into

some explicit form. After externalization knowledge becomes tangible and permanent

for the organization and can be used whenever needed in future.


http://nicosord.hubpages.com/hub/Nonaka-and-Takeuchi-knowledge-management-cycle

Combination (explicit to explicit):

This process involves transforming separate parts of explicit knowledge into one com-

bined explicit form. No new knowledge is created in this process rather existing

knowledge is recombined and converted into new report or database. Advantage of

this process is that more people can understand and use the content.

Internalization (explicit to tacit):

Internalization involves the conversion of newly gathered knowledge into the mental

model. It is referred as “learning by doing”. (Dalkir, 2005) Internalized knowledge

can be used in a broader, extended and reformed way along with the tacit knowledge

of an individual. This changes the mental knowledge of an individual, which means

they do the same work in a different way. This way people can internalize other’s ex-

periences to solve their problems and enhance their performance.

2.2 The 4I Model Of Organizational Learning

Source: Dalkir, 2005

Employees of an organization play a significant role in acquiring the organizational knowl-

edge. Knowledge acquired by an individual is a social process that cannot occur without

group interaction. Individuals learn from group interactions and groups learn from individu-


als. The Four I model of organization learning states that organizational learning includes a

strong relationship between comprehending new learning and using what is learnt. The four

I’s of social and psychological processes link individual, group and organizational levels of

learning. The four I processes of Crossan are:

Intuiting

Interpreting

Integrating

Institutionalizing

This model was further modified by Zietsma et al. (2002) who included the process of attend-

ing at intuiting stage and experimenting at interpreting stage. All the employees working in

an organization performs knowledge creation and capture. It can be done as members of com-

munity of practice (CoP) or individually by performing some activities to create, capture and

codify the knowledge while doing jobs. Within an organization employees share perceptions

and together interpret information and experiences. (Cohen and Levinthal, 1990) This knowl-

edge acquisition exceeds the employees and is coded into corporate memory. The integrated

knowledge of employees forms the institutional knowledge.

2.3 Methods of tacit knowledge transfer

There any many tacit knowledge transfer techniques used by organizations to acquire the

knowledge of the employees in the company and retiring employees who represent the

knowledge “walking out of the door” . Parsaye (1988) mentioned three methods of knowl-

edge acquisition from individuals and groups:

← Interviewing experts

← Learning by being told

← Learning by observation


Interviewing Experts:

Source: Researcher

Two techniques used for interviewing of experts are structured interviewing and storytelling.

The method is used to capture the tacit knowledge of experts into more explicit forms. Many

organizations use this method to record the knowledge, learning and experiences of retiring

employees. The interviewee must be prepared with the sample of questions and goals of the

session conducted. The two types of questions used in structured interview are open and

closed questions. Open questions are broad with few constraints and allow the expert to give

free response. On the other hand, closed questions put restriction on the amount and type of

information that expert will deliver through his/her response.

It is important to capture the exact meaning of the thoughts shared because interview partici-

pants may have different mental models. Four approaches used by interviewer in reflecting

listening are: Paraphrasing, clarifying, summarizing and reflecting feelings. At the end inter-

viewee can validate if knowledge captured is complete and correct.

Story telling is an efficient technique used to capture and codify the tacit knowledge in an or-

ganization. Within an organization stories can include informal narration of management ac-

tions, employee interactions and other events. Delivering information in the form of story, re-

sults in having long lasting impact on the memory of listener. Organizational story telling

should be conducted in a way that it is able to communicate knowledge and learning within

the story. The organizational lesson or moral of the story should be properly learnt, remem-

bered and acted upon by the employees of the organization.


INTERVIEWING EXPERTS

STRUCTUREDINTERVIEWS

STORIES

Story telling is an interactive way to communicate common values and good practice to cap-

ture, codify and transmit valuable tacit knowledge.

Learning by being told:

This method involves two simultaneous approaches, interviewee delivers his knowledge and

simultaneously knowledge manager validates the knowledge and converts it into explicit

form. Three approaches used in this method are: domain and task analysis, process tracing,

protocol analysis and simulations. Tools can be software programs such as models, schemat-

ics and maps.

Source: Researcher

Learning by observation:

In learning by observation an expert is given a case study or problem which he has to solve

with his own expertise. Learning by observation involves giving sample problem or case

study to expert and then he/she solves it. Although there is no way to observe an individual’s

knowledge but in this way his expertise can be identified. Audios or Videos can be used to

record the expert recommendations and they can be used repeatedly in future. While record-

ings are being done, the individual must always be present with the expert. For physical

demonstrations cheap camcorders can be used. However, for software demonstrations spe-

cific software needs to be used to record the actions directly from desktop. Using such simple


TASKANALYSISLooks after the key task performed by expertCharacterizes the task

PROCESSTRACINGAsks matter expert to "think aloud" while solving problem Tries to detect the psychological process used by expert

PROTOCOL ANALYSISElicits verbal reports from expert participants

techniques core information and demonstrations can be captured. In this way tacit knowledge

of experts can be converted into permanent explicit form.

Other methods to transfer tacit knowledge are


E-learnng Action learning

Road Maps

Learning histories

Ad hoc sessions

Chapter: 3 CASE STUDIES

3.1 TOYOTA

Toyota is one of the world’s best Japanese automobile manufacturing companies which man-

ufacture a wide range of products including subcompacts, luxury, sports, trucks, buses, hy-

brid cars etc. Toyota products are available in all five continents of the world. Toyota per-

forms knowledge sharing practices in company as well as among suppliers also. The case

throws light on the various tacit knowledge transfer techniques used by Toyota.

Source: http://topnews.in/usa/millions-toyota-recalls-leave-brand-undented-215851

In today’s knowledge intensive era managing knowledge is as important as manufacturing

goods. Toyota transfers tacit knowledge of its employees within its production network. Toy-

ota along with its suppliers uses six techniques to transfer the tacit knowledge and share it

Toyota holds supremacy in transferring productivity-enhancing knowledge throughout the network (Nishiguchi, 1994;Lieberman, 1994). The techniques used by Toyota in knowledge transfer are:

1) Supplier Association (kyohokai): Toyota has supplier association in Japan which promotes “mutual friendship” and “exchange of technical information” be-tween Toyota and its suppliers. It has three main purposes:


http://topnews.in/usa/millions-toyota-recalls-leave-brand-undented-215851

Transfer of tacit knowledge exchange between Toyota and its member compa-nies.

Training and mutual development among member companies

Socializing events (internal Toyota Document, 1996)

The core objective of supplier association is to create alliance between members and transfer tacit knowledge via multi-lateral knowledge transfers.

2) Voluntary Learning Teams (jishuken): OBCD (Operation management con-

sulting division) of Toyota promotes knowledge sharing with its suppliers in a way

which is unique in the automobile industry. Toyota has organized key suppliers into

groups which help each other in productivity and quality improvements by sharing

their tacit knowledge. The groups are changed after every three years by Toyota to

get diversity in ideas and grouping of suppliers is based on:

Geographic proximity

Competition

Experience with Toyota

Every year suppliers meet OBCD managers to decide theme of the project and the motive be-

hind it is to help each other with the crucial business issues by sharing knowledge and exper-

tise. It helps in increasing productivity in areas of common interest like reducing lead times

or inventories. This practice is helpful both for Toyota and its suppliers.

3) Problem Solving Teams:

Jishuken teams are created to transfer the knowledge of network workers to other workers.

Apart from jishuken teams Toyota also has Problem solving teams who use the knowledge

captured by jishuken teams to solve the various problems in the network. For example,in

some situations the supplier may face quality problem in which the root cause of problem is

not identified. In such cases, a problem solving team of experts will be setup who will collec-

tively use their knowledge to solve the problem.

4) Inter-firm Employee Transfers:

It is one of the well known practices among Japanese companies. In this practice the employ-

ees are transferred from one office of a firm to the office where his expertise in required. In


this way the employees remain with the company and at the same company can use their tacit

knowledge anywhere within the firm. This technique also helps in transferring tacit knowl-

edge of an expert. When the transferred expert joins new office of firm, he shares his experi-

ences and know how’s with other employees and transfers his tacit knowledge to them.

It is also an important mode to transfer knowledge to the suppliers. Toyota provides its per-

formance feedback to suppliers and checks if they are using new knowledge or not. There are

various ways used by Toyota to give feedback to their suppliers and motivating them to use

the latest practices for improving quality as well as productivity. All the necessary changes

implemented by suppliers are documented.

5) Creating Organizational Units for Accumulating Knowledge in the Network:

Toyota has created various units for knowledge acquisition, storage and diffusion for increas-

ing the ability to accumulate valuable knowledge within the organization network. By creat-

ing organizational units which have accumulating knowledge residing within the network,

Toyota has been able to systematically build and to existing stock of knowledge. In addition

to this, the network members also know where to find different types of knowledge. This ap-

proach helps in transferring tacit knowledge into a stock of knowledge which is easy to ac-

cess within the network.

6) Creating Multiple Knowledge-Sharing Processes and Nested Net-

works in Larger Networks

Toyota introduced various processes for sharing explicit and tacit knowledge within the net-

work. In this the knowledge type is matched with the process type so that knowledge flows in

the most efficient manner. For example Supplier Association is a process used for quickly

distributing explicit knowledge to all members of the network. But this process also allows

the multi-lateral transfer of tacit knowledge regarding specific topic. OMCD and the problem

solving teams engage in bilateral tacit knowledge transfers of a particular type. Thus there are

varieties of processes which members can select to get different types of knowledge.


3.2 ROLLS ROYCE MOTORS

Rolls Royce has not manufactured cars since 1971 and currently their car manufacturing is

done by Rolls Royce Motors Cars Ltd. It is an organization which manufactures motor vehi-

cles of top quality. Rolls Royce brand stands for its quality, design and performance. The KM

team at Rolls-Royce is Derby (UK) based and provides a varied and comprehensive knowl-

edge support services to the company’s engineering teams. The following case study reveals

the tacit knowledge transfer practices of Rolls Royce.

Source: http://symbolphotos.blogspot.sg/2010/04/rolls-royce-logo-photos.html

Knowledge transfer and retention strategy of Rolls Royce focuses on the following functional

areas Engineering, R&D and Quality Assurance. Core Knowledge which company wants to

retain is tacit knowledge of employees. Tacit knowledge Transfer techniques used by Rolls

Royce are as follows:

1) Communities of Practice (CoP):

Employees having common interest and identity form a group within the organization to

share knowledge and experiences. This practice of forming such groups at workplace is

called community of practice. This practice is used by Rolls Royce to capture and trans-


http://symbolphotos.blogspot.sg/2010/04/rolls-royce-logo-photos.html

fer tacit knowledge of employees. As technological knowledge lies within the heads of

individual experts so this practice helps in sharing and evolving the knowledge. As a re-

sult, employees can enhance their learning as well as help each other through one’s ex-

pertise. This is tacit to tacit transfer technique as knowledge of one person becomes

knowledge of other after sharing it.

2) After action Reviews:

Employees in an organization work in different departments and perform various

tasks to complete the projects. Once the project is over, they hardly have any time to

sit together, review each other’s work and give suggestions to improve it further.

However Rolls Royce performs after action review practice by holding regular meet-

ings in which project managers and engineers share their individual lessons learnt

and positive or negative experiences gained while working on the project. Everyone

has different learnings and experiences from the distinct projects and discussions are

performed to extract useful knowledge from those lessons. A report of discussions is

prepared after every meeting. These sessions help employees in gathering new ideas

of their work. In this way tacit knowledge of employees in converted into both tacit

and explicit form.

3) Expert Interviews:

Expert interviews involve asking the experts about their experiences and tasks performed in

certain situations. The success of this method depends upon quality of questions asked and

ability of expert to articulate his knowledge. Interview can be structured or unstructured. Un-

structured interviews are unplanned with on the spot questions and even responses are not

evaluated whereas, structured interviews are pre-planned interviews in which questions are

already decided and expert responses are evaluated. Rolls Royce holds the expert interviews

to make their employees learn from the expertise of persons who have achieved great success

in their field. Retiring employees in Rolls Royce share their experiences and learning by giv-

ing an interview. They share their problems and stories related to the problems in order to

overcome it. They even give answers to questions asked by employees; this further improves

the understanding and clears the doubts of those who are listening to the interview. Expert in-

terview is an excellent method of tacit knowledge transfer.


3.3 NISSAN

Nissan is a well known automobile company with 31 production facilities in 16 countries and

selling motor vehicles in more than 160 countries. It is consider one of the high quality lead-

ers in automobile industry. It is well known for its value creation objective and attractive de-

signs. Various tacit knowledge transfer techniques used by Nissan are mentioned in the fol-

lowing case study.

Source: http://world-viewer.com/nissan-sentra-v16-16-wagon.html

Nowadays competitive advantage not only depends upon capital and equipment management

but also on information and knowledge management. Knowledge Management involves tech-

niques to utilize information and knowledge assets of an organization especially tacit knowl-

edge. Some tacit knowledge transfer techniques followed by Nissan are:

1) E- Learning :

E-learning refers to electronic learning in which there is no teacher to provide any training

rather computerized programs are used for training purposes. Nissan has large global foot-

print which demands high quality of leaders worldwide. The most deserving 60 leaders

among these are identified by Nissan from 10 different countries. They have qualities to per-

form the leadership roles in future. These leaders belong to different geographic locations


http://world-viewer.com/nissan-sentra-v16-16-wagon.html

across the globe and have varied leadership skills. To work for Nissan as a leadership group

they need to learn the Nissan’s values, vision and mission.

Nissan want to provide a common leadership program to connect the leaders worldwide with-

out physical movement. This objective is achieved by the process of E-learning. Nissan cre-

ated leadership development program with optimal training efficiency named Global Organi-

zation Leadership Development (GOLD) It provided three self-study e-learning courses and

four real-time which were delivered using DDI’s virtual classroom technology. All the lead-

ers were mailed the e-learning program and using this they formed a group of leaders who

never met each other. Using this program all the group members interacted with each other to

share ideas and knowledge.

2) Interview with experts:

Expert interviews are sessions in which people who are experts in a particular subject, pro-

gram or process share their knowledge with others. Interview with experts is an efficient

mode to make tacit knowledge more explicit.

Nissan use both semi structured and structured interview processes to get the expert opin-

ions. The objective of semi structured interview is to enrich the depth and details of informa-

tion provided by the matter expert. (Cooper and Schindler 2001) Nissan organizes expert in-

terviews within the company when they have unique knowledge of experiences or expertise

and they want to share it with the next generation of the company.


Chapter: 4 DISCUSSIONS

Knowledge management is a core management function of any organization and within knowledge management tacit knowledge is very essential. Performance of an organization is highly dependent on its tacit Knowledge of its human assets. So the methods for capturing tacit knowledge should be efficient and effective. From the case studies of the companies it is found that:

Toyota uses six different processes for tacit knowledge transfer. The knowledge management processes used by Toyota are very different and innovative; they are not same as the tech-niques provided in the theory. It reflects that Toyota manages its tacit knowledge in Toyota’s Way and does not completely rely on

IKM theories. Toyota is leading the automobile industry which shows that the knowledge transfer techniques followed by them are efficient.

Rolls Royce uses two techniques out of which communities of practice and expert interviews are included in theory whereas after action reviews are their own innovative way. This shows Rolls Royce use the past theory practices but at the same time they create their own practices.

Nissan uses expert interview and E-learning processes for transferring tacit knowledge of em-ployees. Both techniques used by Nissan are mentioned in the theory. E-learning is an effi-cient process which is not practised by many companies but Nissan is making good use of it for training its overseas employees. Nissan can use some more techniques to transfer its tacit knowledge in a better way.

In three case studies different approaches to transfer of tacit knowledge are mentioned but their objectives are same and are based on standard IKM models. All the case studies aim at capturing the tacit knowledge to make the best use of it within the respective organization.


Chapter: 5 CONCLUSION

Knowledge management itself changed a lot which means it is not constant depends upon time and is changing with the enthusiastic environment. From the explicit knowledge of re-source then they changed to implicit knowledge to acquire the position in market. The need of the time is to capture the knowledge within the heads of experts and store it in explicit forms which can be used anytime in future circumstances. In this case of Automobile indus-try, they tell how they are defining its own position in market globally. If the information of knowledge is channelized, formalized, documented and applied at right time means the tacit knowledge can be utilized as an asset. For an effective knowledge management not only the competitive advantage is needed but it should also develop the performance of the organiza-tion.


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at:

http://www.astd.org/Publications/Newsletters/Learning-Circuits/Learning-

Circuits-Archives/2012/03/Case-Study-E-Learning-Develops-Global-Leader-

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at: http://dspace.mit.edu/bitstream/handle/1721.1/1441/147b.pdf [accessed

on 3 July 2012]

Dalkir K (2005), Knowledge Management in Theory and Practice, Elsevier But-

terworth-Heinemann, Oxford.

Nissan Sustainability Report 2010 [ONLINE] Available at: http://www.nissan-

global.com/EN/DOCUMENT/PDF/SR/2010/SR10E_P057_Employees.pdf [ac-

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http://nicosord.hubpages.com/hub/Nonaka-and-Takeuchi-knowledge-

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[ONLINE] Available at:

http://www.ikmagazine.com/xq/asp/sid.0/articleid.29FACC72-F836-419E-

94D2-

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http://www.apqc.org/knowledgebase/download/232364/a%3A1%3A%7Bi

%3A1%3Bi%3A2%3B%7D/inline.pdf

The link between sustainability and absorptive capacities: the case of the electric car in Re-

nault Available at: http://www.strategie-aims.com/events/conferences/4-

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