More and less every economy consists of three
segments, primary, secondary and tertiary. Primary sector constitutes farming,
mining and agriculture the secondary sector covers manufacturing and business
activities that facilitate the production of the tangible goods. The service
sector classified as a third economic sector, it is comprised of tours, health
and medical, education and banking. Knowledge is very important for all these
sectors. As the economic activities grow within the economy, they need to
manage and organize the information and knowledge grow.
The organization’s performance is the central concern of every type of
institution, it may be a service organization or a manufacturing concern.
Performance is the measure of any organization, efficiency, and profitability.
Usually, performance of manufacturing concern is measured against its actual
output compared with the intended output. Whereas, the performance of the
service sector is measured on the basis of the pace of economic activities
because of its support the functioning of the primary (forming, mining, and
agriculture) and secondary (Manufacturing) sectors.
In present changing economic environment, knowledge is not a finite,
visible resources, and cannot therefore, be managed by traditional methods.
Knowledge is the common factor that links all business improvement techniques
from work study and systems analysis to total quality management and business
process re-engineering. They all depend on people using their knowledge to
develop new processes. Knowledge has fuelled all human progress in the past,
and has virtually unlimited potential to continue doing so in the future.
Knowledge management is
relatively a new concept in management and administration, although, from the
earliest time, mankind was striving to preserve knowledge. The inscribed seals
of Moenjo Daro, the clay tablets of Nineveh and papyrus & parchment rolls of
ancient Egypt all bear testimony to this effort. But, the difference is that
primarily, knowledge was seemed to use by intellectuals, philosopher, and
scholars, etc. But now is the necessity of every segment of the society.
Manufacturer and service provider to end user or consumer. In relation to this,
the concept of the knowledge economy is emerged and arise the need for
Knowledge Management as the management strategy and separate discipline.
Knowledge management is
the lasting phenomenon, despite different definitions and interpretations it
portends growing awareness about the people issues relevant to success on the
technology platforms. Knowledge Management is a branch of Management that seeks
to improve the performance of businesses by enhancing an organization’s
capacity to learn to innovate and solve problems. It focuses on managing how
knowledge is produced and integrated into the enterprise anywhere in the
organization, on paper, in the document, in the database (explicit knowledge)
or in people’s heads (tacit knowledge) Knowledge Management is the source of
competitive advantage. Knowledge Management plays a vital role in improving
organizations performance and consequently increase the pace of economic
development. In our scenario, in Pakistan, very limited information and data
are managed, organized and maintained by the government as well as the
non-governmental organization and same the case in the private sector.
Therefore, there is a serious need to understand what is the Knowledge
Management and how is it related to the organizational performance.
Knowledge Management is
an evolving discipline that is growing and becoming pervasive in many other
disciplines Importance of knowledge management is increasing as the societies
are transforming into the knowledge society. The ability to manage knowledge is
crucial in a knowledge economy. The creation and diffusion of knowledge have
become increasingly important factors in competitiveness. In order to be
successful in today’s dynamic and challenging environment, organizations/
individuals need to learn from their past errors and not reinvent the wheel.
The focus of knowledge management is that organizational knowledge is not
intended to replace individual knowledge but to complement it by making it
stronger more coherent and more broadly applied. In simple words can say
knowledge Management is a process that transforms individual knowledge into
organizational institutionalized knowledge.
Objectives of this study
are that to highlight the growing need for Knowledge Management in the
organizational and individual life. And find out the bottlenecks in knowledge
acquisition and knowledge sharing and its impact on knowledge creation.
Is Knowledge Management is important for
Is knowledge management really has its
impact on organizational performance?
Is knowledge Management directly related
to organizational performance?
Literature review, survey
questionnaire interview to professionals and experts are that methodology which
would be used to gather the data to assess the situation and find the relation.
Significance of the Study
This research study would
be very fruitful and its finding will be applicable to the service and
manufacturing sector. By applying the finding in the organization management
could formulate such strategies that will prove effective instrument to improve
the performance of knowledge workers and ultimately boost the organizational
performance. Moreover, the professional community of academician may also be
utilized the finding of the research which would further increase the
understanding of knowledge management role for the future professionals.