Dr Piotr Zawda

President of Zaklad Doswiadczalny Organika

Nowa Sarzyna

 

Knowledge management in a modern enterprise, case study.

 

One of the most important parameters enabling the evaluation of a company’s value is the amount of the capital involved (financial contribution of shareholders) as well as recently more and more visible human resources capital [1]. A company’s value when related to human resource capital may constitute the basis to approach an employee as an enterprise driving force and  it sets forth a new category i.e. knowledge management. These are employees, adequately motivated, capable of performing tasks and the personnel prepared for effective management that may be the foundations for an enterprise to realize its  mission and strategy1. Human resources management as well as knowledge management require appropriate professionalism from the Boards of Directors in order to make both quantitative and organizational changes socially responsible [2].

 

         A main principle in personnel policy creation and building of human resource capital is professionalism of management whose comprehension of enterprise management is more extensive both as for material and human resources[3]. Quantitative changes in human capital management and implementation of acquired knowledge constitute far more serious task and challenge for companies directors than introduction of simple quantitive changes and work improvement[4]. Working teams adequately motivated to realize a company’s objectives constitute the foundations of effective  personnel policy of every company.

The scale of official and hidden unemployment noticeable since the beginning of transformations and industrial production decrease in Poland make the phenomenon of human resource capital, the processes of working teams integration, the release of natural activity among working teams and the promotion of emerging leaders in enterprises almost invisible[5]. 

Commonly employers’ attitude towards their workers is based on the principle of absolute domination of the former called ‘strict‘ management which is incredibly destructive and dangerous for the development of proper social relations.The subject literature presents numerous mistakes in the choice of personnel as one of the reasons for worldwide companies’ collapse which as a consequence leads to unfavorable phenomena in the productive sphere and in management in particular [6]. 

       The increase of a company’s value brought about by the possession of human capital the most frequently is caused by proper personnel decisions (attracting the most skillful new workers to an organization and their training), appropriate motivating policy for employees as well as operating in the market and winning over  the most attractive clients[7].

Changes of work methods, procedures simplification and their consequent implementation entail the increase of a company’s competitiveness and at the same time they constitute solid basis for the process of gradual increase of a company’s market value. The substance of human resources management is made by the processes as well as the objectives generated by management professionalization which cares about increasing a company’s competitiveness and work efficiency[8].

Basic aspects in the hierarchy of work resource management are the following:

1.     Functional aspect – it focuses on time factor in work resource management: long-term, medium-term and short-term processes.

2.     Institutional aspect – it defines a type of subjects (institutions) that realize tasks and personnel processes

3.     Instrumental aspect – relates to the techniques and methods of task solution concerning work resource management[9].

A competent managing group capable of concentrating around itself all the staff by means of effective methods including the choice of personnel, proper preparation and education also able to apply modern motivating methods as well as to prepare working groups stands for an enterprise’s high position in the market[10].

In modern world economies companies the expenditure spent on nonmaterial investments related to building labour resources shaping human capital constitutes a great part of  enterprise investments provided for development and the following issues in particular:

1.          Constant added value application for home and foreign clients,

2.          Nonmaterial resources are approached as a potential source of a company’s successes,

3.          Knowledge capital development regardless the level of presence in an organization,

4.          Creation of intellectual capital,

5.          Matching organizational knowledge with the resources of its surroundings,

6.          Subjective treatment of employees.

 

The objective of the above investment is for companies to have a competent management that takes responsibility for an enterprise’s decisions. It is related to greater and greater diversity in work environment (companies differ from one another, they are distinguished by their individual features though they operate the same market), enterprises acquire specificity typical of them and this diversity and specificity constitute an enterprise power[11].

         Companies modernization is hampered by the false comprehension of administration, marketing, controlling and accountancy as the most important functions in human resources management and relying on hierarchical organization structure[12]. Moreover numerous companies in our country even today have obligatory  systems of management absolutism. Such out of date methods allow business entities to function in the market but they are not capable of development  as that of their western counterparts and keep their pace with developing economies as well as to escalate the risk of economic crisis. The element that evokes changes and undoubtedly motivates modern management of Polish companies is the process of globalization bound to force present management groups to quit routines and work based on conventional, stiff rules dominating in an organization and to take advantage of aggressive marketing[13].  Introducing changes in enterprise management is connected with qualitative changes and management standards improvement. They result in passing responsibility in a greater degree to lower levels of business unit managers and introducing a systematic process of raising professional qualifications by managers of lower competence. New quality of human capital management in an enterprise prepared for global challenges is related to the following principles of working with people:

1.     Supportive information to motivate performance effectiveness.

2.     Granting greater competence together with responsibility.

3.     More extensive application of team work to realize more important objectives.

4.     Effective bonification for competence and results

5.     Personel participation in management.

6.     Working out and realization of quality strategies[14].  

More and more common in Polish companies is the lack of competence of managing groups, as well as professional and personal skills, knowledge, lack of learning skills and the ability to work in managing positions. It seems that knowledge (comprehended as a connection of information and understanding, processing of information acquired from gained experience, learning, the condition of employees’ general knowledge and beliefs) gained at the initial stage of education and at the moment of appearance on the market immediately becomes out-dated. Modern pace of changes requires from managing groups of companies operating in our country to have skills of mastering specific competencies related to management and human relations and from modern working teams flexibility and skills to accommodate themselves to changes. Undoubtedly, future managers and regular workers cannot be taught everything but permanent revolution in education systems enables to level the distance to better and more modern managing groups in companies and corporations. “Certain valued competences such as ability of team work or problem solution in crisis cannot be learnt in traditional education process. It usually comes with work experience thus in some specific organizational reality[15]”.

Structural changes concerning human resources together with other changes in companies functioning should be visible in home enterprises in particular or those with monopolistic position as they are more often at the risk of losing their economic status[16]. Failure to use human resources which constitute a company’s capital and to take advantage of economic boom and a flippant attitude towards market environment usually ends up in losing the most valuable employees, contacts and also the deterioration in the quality of service provided and finally insolvency[17].

         The above situation clearly exemplifies the common ignorance for unity and mutual human relations among the members of one working team[18]. Failure to provide information by the Board of Directors reflecting a company’s situation, employment plans, investment objectives, expected profits and results of a company may become the impediment to mutual  communication among the management and regular workers.

         Meeting requirements of a company’s internal communication and most importantly personnel involvement in the transformation process, thus a remarkable increase of employees’ motivation, are far more helpful in problem solution within an enterprise than fast and effective implementation of all the conversion and investment programs.

In  another grasp of the matter discussed, knowledge management refers to the following aspects of an enterprise functioning[19]:

1.     Diffusion of knowledge from individual to teamwork and organization levels,

2.     Supporting conversion of hidden knowledge into formal one,

3.     Creating new knowledge and knowledge transfer to other part of a company,

4.     Winning access to knowledge from external resources,

5.     Identification of internal knowledge resources,

6.     Application of knowledge understood as checked techniques of decision making,

7.     Storing knowledge and enabling workers to have optimal access to it,

8.     Implementing knowledge into processes, products and services,

9.     Presenting knowledge as documents, data base and software,

10. Winning, storing and developing employees’ knowledge,

11. Supporting the increase of knowledge resources by means of organization culture and motivation system,

12.  Evaluation of knowledge and its influence on knowledge management.

 

The realization of the above simple strategies makes the companies undergoing transformation of market orientation appreciate the importance of the management based on teamwork cooperation. When making the analysis of social interactions, including motivating interaction, one should not fail to notice in researched companies the presence of conventional  motivating models. These diversely modified models are to be found in the majority of organizations functioning in Poland. A traditional model definitely abandoned the method of employees’ motivation by means of fear, financial or social punishments, though such elements are present the economic reality of Nowa Sarzyna. A traditional model of employees’ motivation bases on the assumption that managements’ (managers’) task is to select a highly-qualified managing team which will enable to apply the most effective methods of work with the whole range of stimuli and financial incentives in the place of obedient realization of the assigned tasks in the possibly shortest time[20].

The above model relies on the assumption that to keep an employee in the place of work means to give them an adequately high salary that is attractive enough to discourage them to change their employer. An additional element constituting the theory of traditional motivating interactions is to impose on workers strict rules binding within an organization together with workers’ consent to follow routine tasks in return for financial gratifications. Managers’ role boils down to controlling the performance level of the assumed production standards.

The above-described system  underwent distortion as it did not appreciate employees’ involvement into their work as well as their creativity. It merely evaluated a certain level of quantative effort put into a task realization. Moreover the bonification system did not reflect actual work performance.

         A traditional model of motivating interactions focuses on money as the main motivation for workers whose purpose is to earn money and not to find professional fulfillment in their work. The research talks carried out in winter 2006 with the participants, that were meant to analyze employees’ attitude proved that some of them noticed the evolution of motivating models found in the analyzed enterprises. Such evolution boils down to the application of motivating systems binding in particular companies that is the element originating from the knowledge management model which emphasizes the importance of creating sense of usefulness among employees and the appreciation of their contribution into realization of performed tasks as well as fulfillment of their economic needs. It is also connected with the introduction of a direct (vertical) method of communication between personnel and management, simplification of decision structures and building a sense of importance of every single worker for an organization. The realization of workers’ professional needs, fulfillment of their expectations concerning their position in an enterprise hierarchy relates to motivation of employees to raise the level of their education, to improve their professional knowledge and qualifications. Employees perceive their education and qualification improvement as an excellent way to promote themselves. The realization of training programs should base on a particular organization’s  needs and individual characteristics of  workers.

Abandoning ‘strict’ management focused on task realization in favour of people-oriented ‘light’  management seems advantageous for company’s objectives realization.

Achievement of success is believed to stand for skillful application of intellectual capital with the contribution of human resources, human knowledge and competence in particular.

The effectiveness of small and medium enterprises depends on effective application and management of nonmaterial resources based on competence, organizational culture, knowledge management  and even focusing workers’ attention on raising the undertaken tasks efficiency.

The intellectual capital of an enterprises as that mentioned-above  should be analyzed based on a few management levels including individual capital, working team and finally an organization[21].

 

 

Summary

Management is related to continuous investments into human capital, working teams concentrated on objective and mission realization of a particular enterprise, working teams that accept knowledge creation as the basis of an enterprise success. The majority of the indicated elements is combined with other modern management concepts including learning and intelligent organization. The success of an enterprise whose objective is to take advantage of knowledge management methods inside an organization is connected with skillfully employed intellectual capital of every single worker perceived on the basis of genetic heritage, level of education, gained experience and presented attitudes.
 

 

Summary of knowledge management in practical edition

The entry of Poland into the EU structures turned out to be a catastrophe for Polish manufacturers of crop protection chemicals (CPC in short) mainly directed at home market operation. Prolonging the period to consider application for re-registration of preparations to a few years effectively eliminated the majority of our companies. A completely new market situation, which resulted in dramatic decrease of home products and synthesis services for a home company forced a new management of ZD Organika Sp z o.o. to apply knowledge management methods.

In the years 2005-2008 there was introduced the policy of providing for the personnel information concerning a difficult situation of the factory and undertaken measures. The employees being aware of the company’s economic position followed the management’s decision to lower their own remunerations and voluntarily took monthly unpaid leave.

Granting greater competence and responsibility on lower levels in the structure of ZD Organika resulted in the implementation of new, unknown before technologies, conversion of unnecessary working space, starting work on completely new business projects as well as the commencement of business activity  as incomes diversification that brought the expected economic effect. Advanced conversion of employment (number of employees lowered 25%) improved the atmosphere in the working team (old age pensioners still on the payroll and the workers continuously taking advantage of sick leave lost their jobs). A clear promotion scheme enabled to create new leaders who got promoted to higher positions (average age of new leaders – 29). Since 2005 all the important business decisions are reached on the basis of wide consultations inside the organization.

 

Summary

Most of knowledge management elements relate to other management concepts including learning and intelligent organizations. The success of an enterprise whose objective is to take advantage of knowledge management methods inside an organization is connected with skillfully employed intellectual capital of every single worker perceived on the basis of genetic heritage, level of education, gained experience and presented attitudes.
 

 


[1] K. Markowski, Zarządzanie zmianami w zasobach pracy przedsiębiorstwa, Warszawa 1997, s. 5.

[2]Obszerny komentarz dotyczący modyfikacji myślenia i zarządzania przedsiębiorstwem daje M. Rybak w Uwarunkowania efektywności pracy w przedsiębiorstwie w gospodarce rynkowej, Warszawa 1992, s. 7, pisząc „Wydaje się, że w celu podniesienia efektywności gospodarowania potrzeba nie tylko rozwiązań systemowych, lecz przede wszystkim intelektualnych, kształtujących nową mentalność, nowy wzorzec prac

[3] M. Gablota, Człowiek i praca w zmieniającym się przedsiębiorstwie, Wrocław 2003, s. 194.

[4] K. Perechuda, Zarządzanie wiedzą w przedsiębiorstwie, Warszawa 2005, s. 7.

 

[5] B. Mikuła A. Potocki, Humanizacja organizacji pracy. Aspekty socjologiczne, Kraków 1998,

[6] Szerzej na temat umiejętności pracy z grupą wypowiedziała się K. Serafin  w Człowiek w organizacji, Katowice 1996, s. 33, słusznie zauważając, że „Oprócz tak ważnej cechy jaką jest umiejętność pracy z grupą, czyli umiejętność współpracy z ludźmi, niezwykle istotnymi czynnikami wpływającymi na skuteczność pracy przełożonego (przywódcy) są: jego osobowość, doświadczenie, zachowania, ale także oczekiwania i zachowania jego współpracowników, przełożonych i podwładnych.

[7] H.  Mortimer – Szymczak,  Ekonomiczno – społeczne aspekty pracy, Łódź 1991, s. 159.

[8] U. Gros, Organizacyjne aspekty zachowań ludzi w procesach pracy, Katowice 1994, s. 110.

[9] A. Sajkiewicz,  Zasoby ludzkie w firmie Wydawnictwo, Warszawa 2000.

[10] S.  Czajka , J. Sztumski,  Zarys socjologii przemysłu, Warszawa 1987, s. 321.

 

[11] M. Kossowska ,I. Sołtysińska,  Szkolenia pracowników a rozwój organizacji,  Kraków 2002,s.10.

[12] K. Perechuda, Zarządzabie wiedza w przedsiębiorstwie, Warszawa 2005, s. 177.

[13] Szerszą interpretację działań marketingowych uznanych obecnie za skuteczne podaje

 S. Kamińska – Berezowska  w Socjolog w zakładzie pracy- nowe wyzwania i perspektywy, Katowice 2002.

 

[14] A.Sajkiewicz, Megatrendy jakości zarządzania, w Jakość zarządzania przedsiębiorstwem, Warszawa 1999, s. 9.

 

[15] M. Kossowska I. Sołtysińska,  Szkolenia pracowników a rozwój organizacji, Kraków 2002,s. 11.

[16] K. Markowski Zarządzanie zmianami w zasobach pracy przedsiębiorstwa, Warszawa 1997, s.113.

[17] Początki budowania kapitalizmu, podejścia do sposobu robienia interesów pełne są podobnie zakończonych przedsięwzięć gospodarczych w Polsce, w których nie zawsze liczy się dobro firmy a jedynie realizacja prywatnej, błędnej wizji przedsiębiorcy. Szerzej na temat przedsiębiorcy pisze A. Marcinkowski  w Kapitalizm po polsku, przedsiębiorca, organizacja, kultura, Kraków 1996, s. 66.

[18] Organika International Transport została postawiona w stan likwidacji, obecnie zgodnie z decyzją sądu nad tym procesem czuwa wyznaczony syndyk masy upadłościowej.

 

[19] K. Kubacka –Góral, Zarządzanie wiedzą – podstawą przewagi konkurencyjnej współczesnego przedsiębiorstwa, w Zarządzanie firmą w społeczeństwie informacyjnym, red. A. Stabryła, Kraków 2002, s. 388.

 

[20] A. Sakowicz,  Zasoby ludzkie w firmie, organizacje, kierowanie, ekonomika, Warszawa  2000 ,s. 207.

 

[21]K. Perechuda, Zarządzanie wiedzą w przedsiębiorstwie, Warszawa 2005, s. 174.