Friday, January 29, 2010

KM Shifts to more Information Based

Information age is a new period of change. It is a shift from command and control organizations, the organization of departments and divisions, to an information-based organization. Command-and-control organizations are centralized, military structured organizations. It works from the top down; meaning upper level management disseminates information as they feel necessary; where as, in information-based organizations, the knowledge to perform specific tasks lies within the employees. Information-based organizations also require team work as well as employee motivation.

Information technology plays an important role in executing a successful shift from a command-and-control organization to an information based organization. When a smaller business decides to make the shift it levels the playing field for larger companies. Now the smaller company has become globalized, meaning it can now share information efficiently and quickly, but it eliminates linguistic and geographical barriers. Information technology also changes the way that information is being facilitated. Lower level employees will be more in touch with what decision upper level management is making. The barriers and obstacles that were faced in the command-and-control organization are removed due to the transition. Information technology will make it possible for a company to operate 24-7 in a global manner. Business is now open anytime anywhere and doing business is more convenient.

Information technology plays a vital role in management structure. While changing from a command-and-control to information based organization management faces many problems such as balancing of resources and time, developing organization teams, and devising a system that will give rewards to employees.

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