EFFECT OF KNOWLEDGE MANAGEMENT ON ORGANIZATION PERFORMANCE

Abstract

Purpose: The underlying rationale for learning organizations is that in circumstances of quick change just those that are adaptable, versatile and gainful will exceed expectations. For this to happen, it is contended, associations need to find how to tap individuals' responsibility and ability to learn at all levels. The general objective of the study was to evaluate effect of knowledge management on organization performance.

Methodology: The paper used a desk study review methodology where relevant empirical literature was reviewed to identify main themes and to extract knowledge gaps.

Findings: The study concludes that knowledge protection had the greatest effect on the performance of microfinance organizations, followed by knowledge acquisition, then knowledge conversion while knowledge application had the least effect to the performance. The study found out that the organizations have impressed attributes of knowledge applications such as individuals, organization culture, and identity, policies and documents in their organization which had resulted in improved performance. However, routines and systems were found to have less influence on the performance of these organizations.

Recommendations: There is a need for managers also need to take advantage of the technological capability to support knowledge application processes. In particular, organizations should use technology to map the location of specific types of knowledge, thereby facilitating the application and sharing of knowledge. Technology also should be connected to encourage individuals in different areas to take in as a gathering from a solitary or numerous assets and a single or various focuses in time. Thusly, social and specialized infrastructural components can supplement each other and meet up to improve learning focused procedures.