MGMT STUDY GUIDE
1) The learning organization
It has been estimated that knowledge is doubling every 11 hours. This may mean that when you
wake up in the morning, you may only be have as smart as when you went to bed the night
Strictly speaking, there is no such thing as non-knowledge economy. Humans have lived in a
knowledge economy ever since, the discovery of fire, the development of tools, the invention of
the wheel and the development of cultural codes and practices that passed knowledge from
generation to generation.
But for most of recorded time the knowledge curve has had a low trajectory. Now, it is shooting
upward at an astonishing pace. This is changing the nature of society and all aspects of life in
The knowledge transformation began to gain in pace with the Renaissance and the Industrial
Revolution. Each discovery or invention gave rise to another and another in rapid succession.
As the insights of art and science were used to change the relationship between humans and the
natural worlds, knowledge began to feed on knowledge creating wave upon wave of change. The
transformation during the last quarter of the twentieth century has been so great that many people
believe that we are now living in a completely new world: a knowledge world that is generating
new modes of perception, communication and relationship. It is a world where there are new
rules of economics and new rules of social life. Hence the enthusiasm for the idea of a
“knowledge economy” where the importance of traditional factors of production such as land,
labour and capital is being overshadowed by the importance of knowledge.
Continuous innovation – In an economy where the only certainty is uncertainty, the one sure
source of lasting competitive advantage is knowledge. When markets shift, technologies
proliferate, competitors multiply and products become obsolete almost overnight, successful
companies are those that consistently create new knowledge, disseminate it widely throughout
the organization, and quickly embody it in new technologies and products. These activities
define the “knowledge-creating” company whole sole business is continuous innovation.
Collaborative learning-“Learning organizations… where people continually expand their
capacity to create the results they truly desire, where new and expansive patterns of thinking are
nurtured, where collective aspiration is set free, and where people are continually learning how
to learn together.”
Competitive advantage- competitive advantage no longer belongs to the biggest or those blessed
with abundant natural resources, or the most capital. In the global economy, knowledge is king.
And those nations t