Knowledge economy integrates effectively knowledge aiming to enhance organizational performance, competitiveness, and corporate social responsibility. Being a source of innovation and creativity, it attains organizational competence through the proficient and continual exchange of knowledge, it produces agile organizations and it contributes to socio-economic growth. Additionally, it enables countries to realize better results with a finer exploitation of the readily available resources they possess towards the improvement of living standards in terms of health, affluence and future progress. Furthermore, it facilitates the discovery of new opportunities for organizations and the formation of entrepreneurship-oriented societies.
Effective integration of knowledge necessitates the leverage of the major challenge of globalization. Rapid technological changes and information concentration call for heavy investment in information technology. Gathering, processing and evaluating information in the first instance, and converting it into knowledge in the second instance is a strategic goal for organizations. By bringing down interdepartmental barriers and facilitating company-wide availability and distribution of information, knowledge is disseminated within the organization.
[...] Conclusion The growing emphasis on knowledge has its grounds on the recognition that economy is on the production and distribution of knowledge-based products and services rather on manufacturing, or agriculture. This view assists the transition from traditional to knowledge economy. Within this context, knowledge management is concerned with the processes of integrating, managing and sharing knowledge aiming to exploit existing knowledge assets and discover new opportunities. It is a conscious strategy of getting the right knowledge to the right people at the right moment and helps people to improve organizational performance through the exchange of information. [...]
[...] The major challenge for organizations in knowledge economy is to grasp that human capital is their most important asset. Organization's members have to be able to cope with rapid changes and to work together, but this entails the ability to perceive and appreciate the emotional impact of organizational change. Consider this: the most effective employers are those who are capable of sensing how their employees feel about their job situation. Likewise, the most effective employees are those who can sense how their employers feel about them and what are their expectations. [...]
[...] In the first instance, the value of the organizational intellectual capital is maximized by integrating the interactions of people holding knowledge and expertise within the organization. In the second instance, organizational competitiveness increases by applying this expertise to core competencies like information technology, and/or research and development. In highly competitive markets, organizations have to make their knowledge valuable. This refers primarily to the establishment of virtual knowledge networks allowing employees to access expertise globally. Organizations relate employees to the best knowledge available aiming to use their competencies as to increase organizational performance. [...]
[...] Therefore, flatter organizations facilitate the evolution of emotional intelligence. In a less authoritarian environment, where responsibilities are allocated impartially and strategic goals are clearly defined, individuals can manage their feelings and express them appropriately and effectively, enabling smooth collaboration and cooperation towards a common organizational goal. Where Does Emotional Intelligence Fit in Knowledge Economy? The Greek philosopher Aristotle described emotional intelligence by saying that “anyone can become angry. But to be angry with the right person at the right time, for the right purpose, to the right degree and in the right way that is not easy.” An emotionally intelligent individual is characterized by a social intelligence that involves the ability to discriminate one's own and others' emotions and to use the information to guide one's thinking and actions (Mayer & Salovey, 1993). [...]
[...] To meet the social challenges of knowledge economy necessitates organizations to implement customer-oriented strategies and to create and sustain long-term profitable customer relationships as to enhance their competitiveness. To that end, organizational intellectual capital is at the core of effective organizational learning. Individuals, who expose high levels of self-confidence without being arrogant, who are intrinsically motivated and enthusiastic about their job, who respect other people's emotions and who handle efficiently their social relationships contribute tremendously to effective organizational decision making. [...]
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