What is Knowledge Leverage

“More than ever before, the effectiveness of organizations depends on their ability to address issues such as knowledge management, change management, and capability building, all of which could fall into the domain of the HR function” (Lawler & Mohrman 2003, p. 7). In its leadership role, Human Resources (HR) has many tasks and responsibilities. According to Lawler and Mohrman (2003), there are several key organizational challenges faced by HR departments. These challenges include improving productivity, increasing quality, facilitating mergers and acquisitions, improving new product possibilities, and knowledge management. Knowledge management (KM) is defined as the tools, techniques, and processes for the most effective and efficient management of an organization’s intellectual assets (Davies, Studer, Sure, & Warren, 2005). Knowledge management consists of the combination of data and information processing capacity (i.e., information technologies), as well as the creative and innovative capacity of human resources. Knowledge management entails an organization viewing its processes as knowledge processes, in which these processes involve application of knowledge within the organization. Knowledge management focuses on the generation and application of knowledge, leveraging and sharing knowledge to increase the derived value, importing knowledge in the form of skilled employees, connecting knowledge workers, and motivating knowledge workers (Mohrman & Finegold, 2000). According to Robbins (2003) the process of knowledge management entails organizing and distributing an organization’s collective wisdom so that the right information gets to the right people at the right time. As knowledge management becomes increasingly important, organizations must strive to understand the dynamics of knowledge management. This article will discuss the elements of knowledge management, in addition to presenting a case on how organizations can use knowledge management as strategy, where knowledge management is valued more than funding as a strategic resource.