Knowledge-Based Organization

A detailed Summary of Knowledge-Based Organization


"Most companies...have embraced the notion that to operate effectively in today's economy, it is necessary to become a knowledge-based organization. But few truly understand what that means or how to carry out the changes required to bring it about," (Zack 2003). Moreover, knowledge-based organizations may differ significantly from their product- or service-based counterparts in terms of organizational structure and organizational culture. When people, not products signify revenue production, an organization's culture will become less hierarchical and more egalitarian because employees, not quantifiable items, are the lifeblood of the company. Because employees within a knowledge-based organization tend to be highly skilled and well-educated they will prove valuable as long-term assets. A knowledge-based organization will tend to reflect egalitarian social values and the workforce


Information technology is the backbone of a knowledge-based organization, and IT is used to its maximum advantage in promoting efficient productivity and clear communications. Wireless networking and remote access to company intranets are some of the ways a knowledge-based organization might create a loose yet cohesive community of workers. When employees are offered more flexible work options, they are better able to participate in acquisition and dissemination of knowledge. Product-based organizations, on the other hand, have an obligation to their clients to meet quotas at certain deadlines and therefore demand less flexibility.

Also, because knowledge-based organizations compete with each other, employee retention becomes essential. One person's brain power cannot be substituted equally by any other's, and therefore employee satisfaction is crucial. A knowledge-based organiz

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Approximate Word count = 596
Approximate Pages = 2 (250 words per page double spaced)

Category: Miscellaneous

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