Knowledge Management Research Proposal

KNOWLEDGE MANAGEMENT IN AUTOMATIC DATA PROCESSING, INC.

 

INTRODUCTION

 

 

            The present business world is distinguished by dynamic changing markets and technological advance (Arthur, 1996). In the modern world, businesses are no longer confined within country borders, but are instead internationalized (Johnson and Turner, 2003). The rise of globalization opened up two main perspectives – the opportunities or threats that it may bring. Generally, it is identified as ‘the growing interdependence of countries world-wide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology’ (Johnson and Turner, 2003). It can be an opportunity for many as it can offer “the possibility of boundless growth and prosperity, not only for developed countries but also for those developing countries brave enough to embrace rather than resist globalization in all its manifestations” (Johnson and Turner, 2003). On the contrary, it can also be perceived as a threat, as it can result in rising inequality, economic anarchy and a surrender of political control (Johnson and Turner, 2003). Either way, organizations must become more flexible in this environment in order to be competitive. They must learn to adopt with the changes taking place and sustain their business operations. In order to do so, many business theories and modern management strategies were developed to help organizations cope with a compressed business environment. One of the ways is to strengthen their potential to learn as organizations (Arthur, 1996).

 

            The realization of the need for knowledge management is a byproduct of the information age, where almost everyone can gain knowledge and information in a snap through the use of the Internet and other digital information devices. It is logical that in information-rich societies and industries, knowledge is the real resource (Gumbley, 1998). Managers of today argue for a “pull” approach to knowledge distribution (accessed when needed), rather than the typical “push” strategy.  Sharing insights and learning among dispersed groups of professionals can yield great benefits in terms of customer satisfaction and speed of solution delivery. Managing the knowledge of organizations involve harnessing the intellectual capacity of employees by building appropriate business processes and supporting information systems (Gumbley, 1998). The failure to submit to this effort may endanger an organization’s status as they lag behind key competitors in resources, technologies and other important key points in their business. It would ultimately lead to defeat in the business war. Knowledge becomes a key factor in creating values as it helps the organization perceive the business environment and react to changes (von Foerster, 1995; Arthur, 1996).             As knowledge becomes important, its management becomes equally important as well. This is mostly true to a company that operates in a global scale. Automatic Data Processing Inc. is a good example. The company offers employer-related functions in 26 countries and goes head to head with three .

 

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