PhD 824

Session 2 - Knowledge Creation, Tacit versus Explicit Knowledge

Assignment No. 2

Explicit knowledge is organized, formal knowledge that is simple to express,

record, or codify. It is frequently referred to as "know-what" knowledge since it stands for
knowledge that is simple to explain and impart to others. Explicit knowledge is
exemplified through books, instructions, methods, and databases.
While tacit knowledge is more difficult to formalize or transmit, it is personal,
experiential, and context-specific knowledge. It is frequently referred to as "know-how"
knowledge since it denotes understanding that comes from practical application and
experience. Tacit information is typically firmly ingrained in a person's thinking and is
frequently challenging to articulate in words. Tactic knowledge includes things like
abilities, information, instincts, and insights.
The difference between tacit and explicit knowledge is significant because
managing and transferring each type of knowledge calls for a unique strategy. Tactic
knowledge is more difficult to convey and needs more practical experience and one-on-
one communication than explicit knowledge, which can be easily recorded, codified, and
disseminated. For a company to perform better overall, effective knowledge
management entails locating, capturing, and disseminating both tacit and explicit
information.
Tacit Knowledge
Nature: Tacit knowledge is subjective, experiential, and situation-specific information
that is frequently challenging to express or formalize.
Characteristics:
 It is challenging to express and codify in a way that can be readily
communicated.
 It is founded on firsthand knowledge, gut instinct, and insights.
 It is frequently challenging to put into words because it is so established in a
person's thinking.
 It is frequently learned through experience, observation, and thought.
 It is reliant on the situation and varies according to the context.
Explicit Knowledge
Nature: Explicit knowledge is the knowledge that is formally organized and
comprehensible through writing or codification.
Characteristics:
 It is simple to record, codify, and disseminate.
  It is unbiased and testable by investigation and experimentation.
 It is codified and frequently documented in books, manuals, or databases, for
example.
 Through official channels, like training programs or communication systems, it is
simple to spread.
 It is simple to duplicate or reproduce.
Explicit information is standardized, codified, and readily transmitted, but tacit
knowledge is subjective, experienced, and difficult to explain. While explicit knowledge
is objective, formal, and easily transferable through formal channels, tacit knowledge is
situation-specific, deeply ingrained, and frequently gained through personal experience.
Effective knowledge management and transmission within businesses require an
understanding of the nature and traits of each category of knowledge.

The effective management of both types of knowledge is crucial for organizations to

enhance their performance and gain a competitive advantage. Here are some ways in
which organizations can manage tacit and explicit knowledge effectively.
Tacit knowledge management:
 Encourage knowledge sharing and collaboration among employees to
facilitate the transfer of tacit knowledge.
 Create a supportive and inclusive culture that values employees' expertise,
skills, and insights.
 Establish communities of practice or mentorship programs to encourage
informal knowledge sharing and learning.
 Use storytelling or narrative techniques to capture and share tacit knowledge.
Explicit knowledge management:
 Implement knowledge management systems that capture, codify, and
organize explicit knowledge, such as databases or wikis.
 Develop training programs or manuals to disseminate explicit knowledge to
employees.
 Use knowledge maps or visual aids to help employees navigate and access
explicit knowledge.
 Regularly update and review explicit knowledge to ensure it remains current
and relevant.
Effective management of both tacit and explicit knowledge can enhance an
organization's performance and competitive advantage by enabling it to:
 Respond more quickly and effectively to changing market conditions and
customer needs.
 Improve innovation and creativity by combining tacit and explicit knowledge to
generate new ideas and solutions.
 Increase employee engagement and satisfaction by providing opportunities for
learning and development.
 Foster a culture of continuous improvement and knowledge-sharing.
Organizations need to manage both tacit and explicit knowledge effectively to
remain competitive and achieve their strategic goals. Effective management of tacit
knowledge involves creating a supportive and collaborative culture, while explicit
knowledge management involves implementing knowledge management systems and
developing training programs. By effectively managing both types of knowledge,
organizations can improve their performance, increase innovation, and enhance their
competitive advantage.

Managing both tacit and explicit knowledge in organizations presents several

challenges and opportunities, including the importance of effective communication and
collaboration among employees.
Challenges:
1. Tacit knowledge is often difficult to formalize and transfer, and it can be
challenging to identify and capture.
2. Explicit knowledge can become outdated quickly, requiring regular updates and
maintenance.
3. There may be resistance to knowledge sharing due to concerns about job
security, competition, or a lack of trust among employees.
4. Language and cultural barriers may hinder effective communication and transfer
of knowledge across global teams.
Opportunities:
1. Effective management of both tacit and explicit knowledge can lead to better
decision-making and problem-solving, which can improve an organization's
performance.
2. Knowledge management can help to foster a learning culture and promote
continuous improvement.
3. It can lead to greater innovation and creativity by combining tacit and explicit
knowledge to generate new ideas and solutions.
 4. Effective knowledge management can increase employee engagement and job
satisfaction by providing opportunities for learning and development.
Effective communication and collaboration among employees are critical for
managing both tacit and explicit knowledge in organizations. Here are some ways to
promote effective communication and collaboration:
 Encourage open communication and knowledge-sharing across teams and
departments.
 Establish clear goals and objectives for knowledge management initiatives and
communicate them to employees.
 Use tools and technologies, such as video conferencing or online collaboration
platforms, to facilitate communication and collaboration across global teams.
 Provide training and support to employees to improve their communication and
collaboration skills.
 Foster a culture of trust and psychological safety, where employees feel
comfortable sharing their knowledge and ideas.
Finally, managing tacit and explicit knowledge creates opportunities and problems
for businesses. Knowledge management success depends on effective staff
collaboration and communication. Organizations may handle both forms of information
efficiently to improve performance and acquire a competitive advantage by resolving the
issues and promoting the opportunities.

Organizations can employ various strategies to transfer tacit knowledge and capture,
store, and share explicit knowledge. The use of information and communication
technologies can also facilitate these knowledge management activities. Here are some
strategies that organizations can use:
Techniques for communicating tacit knowledge:
1. Mentoring programs match senior employees with less experienced ones so they
can impart their wisdom.
2. Communities of practice: assembling teams of workers with comparable skills or
interests to promote knowledge sharing.
3. Job rotations: enabling workers to move between various departments or
functions in order to learn and exchange fresh information.
4. Encourage staff members to share their experiences and thoughts through
storytelling.
Methods for gathering, preserving, and disseminating explicit knowledge:
1. Implementing software tools like databases, content management systems, or
wikis to collect and organize explicit knowledge is known as knowledge
management.
 2. Management of documents, including manuals, training materials, and reports,
through the development of policies and processes.
3. Utilizing social media sites like LinkedIn, Facebook and Teams to encourage
knowledge sharing and teamwork among staff members.
4. Training and development initiatives: giving staff members the chance to learn
and grow in new abilities.

Use of information and communication technologies:

1. Enterprise content management systems (ECM): software solutions that allow
organizations to manage their digital content, including documents, videos, and
images.
2. Artificial intelligence (AI): using machine learning algorithms to analyze and
extract insights from large amounts of data, making explicit knowledge more
accessible and actionable.
3. Intranet portals: creating a central hub for employees to access information,
documents, and resources related to their work.
4. Video conferencing and webinars: using virtual meetings and online training
sessions to facilitate knowledge sharing across teams and locations.
These knowledge management operations can be greatly aided by information and
communication technologies. Organizations may improve performance, boost
innovation, and gain a competitive advantage by managing both forms of information
well.
One example is the global consulting firm McKinsey & Company. McKinsey has
implemented a knowledge management system called the Knowledge Center, which is
a centralized repository of explicit knowledge that employees can access and contribute
to. The system includes best practices, case studies, research reports, and other
resources that help employees to serve their clients better. In addition, McKinsey has a
strong culture of mentoring and coaching, which allows employees to transfer tacit
knowledge and learn from experienced colleagues.
Another example is the global healthcare company Johnson & Johnson. Johnson &
Johnson has a knowledge management system called the J&J Information Gateway,
which is a central repository of explicit knowledge that employees can access and
contribute to. The system includes best practices, guidelines, and other resources
related to the company's products and services. Additionally, Johnson & Johnson has a
robust training and development program that provides employees with opportunities to
learn new skills and transfer tacit knowledge.
In both of these examples, the organizations have implemented effective strategies for
transferring tacit knowledge and capturing, storing, and sharing explicit knowledge.
They have also utilized information and communication technologies to facilitate
knowledge management activities. By doing so, these organizations have been able to
improve their performance, increase innovation, and gain a competitive advantage.

Prepared by:

NORXINE L. MONTALBO
Phd in Management Student