Overview Of The Sampath Bank Management Essay

Objective of this chapter is to present a general idea about the research. Hence, Chapter one is divided into eight areas such as background of the study, Objectives of the research, research problem, conceptual framework, research hypotheses, research questions, significance of the research and organization of the study.

1.1 Overview of the Sampath bank and Background of the study

The dynamic nature of the new marketplace today has created a competitive incentive among many companies to consolidate and reconcile their knowledge assets as a means of creating value that is sustainable over time. Knowledge transferring is believed to be able to improve performance and productivity of the organization and knowledge transferring has been illustrated as a significant discipline in leading to positive performance in the organization (Kasim, 2008). To achieve competitive sustainability, many companies are launching extensive knowledge transferring efforts. More recently, knowledge transfer has emerged as powerful determinants of value creation in organizations. Organizations’ specific knowledge becomes as a necessary factor of competitive advantage (Gold, Malhotra, and Segars, 2001).

The Sampath Bank has commenced its operations as a License commercial bank in 1987 with 47 employees. At present 3rd largest PCB in the contry Its vision statement, “The Growing Force in Sri Lankan Financial services” and values mentioned in below enhancing professional standards of internal and external customers (Sampath bank, 2012).

Create a learning culture that promotes individual and organizational development as well as promoting innovation and value for customers.

Treat all internal and external customers the way we would like to be treated.

Encourage and promote teamwork in all aspects of behavior.

Open to feedback and demonstrate an eagerness for personal development.

Monitor and demonstrate an impressive commitment to results.

Uncompromising ethical and professional standards of behavior

The bank believes that its greatest treasure in what is truly a service industry is its investment in human capital, the high quality of management staff, motivation, dedication, and team spirit. The bank does not employ clerks and peons and ubiquitous features in most other institutions. Its staff is composed of executives assisted by secretaries, all of whom have been handpicked and adequately remunerated at levels well above prevailing market rates. Team of Sampath Bank is young and energetic, adaptable to change and are blessed with a “gungkok bo” attitude which in all circumstances allows us to pursue the vision and mission of the bank stridently. They are committed to constant improvement, new ideas and remain unafraid of challenges. They seek new opportunities within the knowledge based culture we permeate across the bank and this has resulted in winning accolades from all spheres of competencies. Moreover, among the corporate objectives of the bank was “employ, develop and retain a self-motivated group of employees who themselves enforce high standards of performance’ (Sampath bank, 2012).

According to General Manager of Sampath bank “the relative youth, together with the enthusiasm and the pioneering spirit of all members of the staff had laid the foundation for the development of an innovative culture which was so essential in a field as competitive as banking”. Intensive training, recreation and welfare facilities transform and guided the development and skills attitudes of the team necessary to deliver superior customer satisfaction (Sampath bank, 2012).

The numbers of employees and branches have been increased to 3230 and 206 respectively in 2011. It has recruited new employees parallel to the vision of accelerating the branch network with the aim of gaining competitive advantage. The Sampath Bank had to fill the new vacancies from strategic level to function level in the newly opened 35 branches. The rapid expansion did not give a room to in-house built the skilled team members to allocate for newly opened branches. Most of team members were promoted to higher potential grades than their real potential grades. Number of employees who have been worked in different department in Sampath bank utilized the opportunity to work in branches. Transferred team members were required enhancing professional standards of internal and external customers with moving from their functions to branch banking.nb

Several issues can be explored with reference to knowledge transferring in Sampath Bank. This research intends to identify whether the transferred employees have been shared or gain their knowledge within the subordinate employees. The main objectives of this study to explore links between employee transfer and knowledge transfer. This study is monitoring these issues and identified ways in which they may be overcome by introducing changes to the effective knowledge transferring.

Objectives of the research

The purpose of this research is to examine the links between employee transfer and knowledge transfer. The following objectives will be fulfilled above aim of this study.

To explore management concepts to review links between employee transfer and knowledge transfer

To identify individual and organizational factors for affecting effectiveness of knowledge transfer

Research problem

Top corporate entities in the world are beginning to realize the significance and importance of transferring knowledge and are beginning to appreciate knowledge as the most important and valued assets that leads to organizational performance. The Sampath Bank will compete for business only on the basis of quality, price and superior service to its customers. Considering values in Sampath bank, The Bank develops a highly motivated and competent team of individuals who independently ensure that the highest standards are maintained throughout the Bank. The bank Create a learning culture that promotes individual and organizational development as well as promoting innovation and value for customers are highly focused. Promoting open to feedback and monitor commitment to results are aimed to enhance its ethical and professional standards of behavior. The Sampath bank makes every effort to train and develop team members to acquire the professional skills and knowledge they would need to use in the Bank and the bank do hope that both team member’s professional and personal goals will be realized in a satisfying and rewarding career at the Sampath bank. The bank encourages team members to find new and better ways of doing their job or improving their Banks systems and processes. Innovation creates value not only for customers but for team members. It would add to the quality of work life and ensure that quality work of team members.

The Sampath bank considers training and development as one of the most valuable investment in realizing their enduring goals and aspirations. Work towards developing their own talents and creating a culture where team members strive to acquire and share new knowledge critical to achieve mission of the bank. The Sampath bank deploys systematic and modern learning methods to enhance knowledge and productivity. As a matter of policy, the bank provides minimum of sixty hours of training per year for every team member. The type of training will be determined by an analysis of what skills and knowledge are required by each. The analysis will consider not only what is necessary in their current job but also what they would require in successive positions in the future.

Team members are generally expected to serve in a particular workstation for a minimum period of four years. However, request for a transfer from team members assigned to Branches in remote areas may be considered after completion of three years. In the event of transfer of a team member, subsequent to his/her promotion, the minimum period of three years will not apply. Except for team members identified for specialization.

The Bank encourages team members to acquire the skills and knowledge they need to do their job and the future positions they will hold and to disseminate those skills and knowledge within the Bank, So that, the Bank’s organizational capabilities and effectiveness are always improved. Career at the bank will depend on how well team members perform in the jobs they hold and the attitudes they exhibit. The work performance will be the sole criteria for any promotion.

Considering rapid expansion in Sampath bank, it has emerged more vacancies in Branch banking. In presenting issue in promoting team members who has fewer competencies in branch banking to team members in branches. Required knowledge transferring through the transferred employees is questionable. Relationship between knowledge transferring and employee transferring in the Sampath bank is vital for academic performances. Considering these events and factors less publication in banking industry have addressed the effectiveness of knowledge transferring. As such, this study effort to identify the effectiveness of knowledge transferring from transferred employees at the Sampath bank.

Conceptual framework

A conceptual framework represents the relationships and the type of relationships among the concepts. The conceptual framework portrayed in figure.1 explains the relevant concepts in this study, and the form of relationship between the perceptions.

Figure 1.1 Conceptual framework of the study

Characteristics of the Transferred Employees

Employee Transfers

Effectiveness of Knowledge Transferring

Source: Researcher’s orginal constraction.

Moreover, figure 1 describes an analytical model in a graphical model based on some theoretical foundations. Accordingly, the conceptual framework is developed based on theories. The model assumes transferred employees as independent and knowledge transferring as dependent.

Research hypotheses

Bhatti, Zaheer and Rehman (2010) studied the effect of knowledge management practices on organizational performance. Specially, the study explored the effectiveness of knowledge transferring depend on learning capability, leadership skills and experience of employees.

H1: Effectiveness of knowledge transfer is influenced by characteristics of the transferred team members at the Sampath bank.

Research questions

How individual and organizational factors influence for the effectiveness of knowledge transfer?

What are the individual characteristics affect to knowledge transfer?

How transfer knowledge via transferred employees?

Significance of the research

The main significance of this study is to help management of The Sampath Bank identify the effectiveness of knowledge transferring from transferred employees. Effectiveness of knowledge transferring relates to Bank’s current business performance named as customer orientation, competent people, long term profitability and growth, image building, effectiveness leadership among major customer segments. This knowledge will enable management implement the appropriate strategies that help improve the effectiveness of knowledge transfer.

On the other hand, knowledge transferring plays significance role in building up sustainable competitive advantage in Banking industry.

Limitation of the study

The aim of this section is to define the boundaries of the study or to enumerate how the researcher has narrowed down its focus. The survey was conducted over a period of three months.

Organization of the Report

The main body of this report comprises seven sections. Its structural organization is presented in Figure 1.2 given below.

Chapter 03

Research methodology

and framework

Chapter 04

Thematic organization,

presentation and

Analysis of data

Chapter 05

Statistics

outcome.

Chapter 06

Concluding remarks

Chapter 01

Introduction

Chapter 02

Literature review

Source: Researcher’s orginal constraction.

The introduction that comprises a glimpse of the study, focusing on the context, the objectives of the study, an overview of the Sampath bank in Sri Lanka, the research issue and empirical setting of the research. it also provides an account of limitations that the researcher has set for defining the boundaries of the study.

Chapter two contains a review of past research on the topics covered in this study. In this section, some important findings of past studies are outlined, while attention is paid to their methodological concerns. A special feature of thhhis literature review is the emphasis placed on bringing to the fore findings of knowledge transferring and characteristics of employees.

The research methodology and framework of the study are presented in chapter three. Key areas addressed therein include the case study research strategy employed, units of analysis, the method of sampling, methods of data collection, the quality of research strategy and the research framework. The foundation for this study as developed in the preceding two sections leads to the development of a conceptual framework as a piece of original work of the researcher, which has strengthened the researcher’s endeavor to contribute to the existing body of knowledge on the subject.

Chapter four and five which are based on Knowledge transferring and transferred employees. Chapter Four explains the methodology, adopted in this study in order to empirically test the research hypotheses. Moreover, the chapter presents findings, statistics outcomes and facts. Chapter Five comprises of a review of data collection, followed by a detailed review of the factor analysis.in addition, objectives of the study, evaluate hypotheses and limitations are presented. And, it presents the similarities and differences between knowledge transfers and employee transfers with special reference to the organization of knowledge transferring function and job transfer.

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Chapter six presents findings and concluding remarks of the study. Latter part of this section documents presents limitations of the study, inviting the attention of academics, researchers, scholars and practitioners to understand how they could plan future research taking cognizance of these limitations. Potential research would essentially contribute to broadening the horizons of the body of knowledge and wisdom on knowledge transferring as an academic and professional

discipline.

Literature Review

2.0 Introduction to the chapter

The purpose of this chapter is to present the literature review related to the concepts incorporated in the study. This chapter consists of sections such as definition of knowledge, definition of knowledge management, types of knowledge, importance of knowledge, knowledge and organizational performance, knowledge transferring, knowledge transferring and competitive advantage, factors affecting for knowledge transferring, effectiveness of knowledge transferring and knowledge transferring in financial institutions and Individual characteristics and knowledge transferring. Meanwhile

2.1 Knowledge and Knowledge transferring

Knowledge is fluid mixes of framed experience, values, contextual information and expert insight that provides a framework for evaluating and incur pirating new experiences and information or Knowledge is about people, relationship. Communities and new ways of working Tan (2010) reviewed that knowledge are the two types of knowledge such as explicit knowledge and tacit knowledge. Information systems which achieved by organization named as explicit knowledge and tacit knowledge refers to informal knowledge which gain through work experiences. Most scholars divide knowledge into two types such as explicit knowledge or information, and tacit knowledge or know-how (Hussain. Lucas. and Ali., 2004).

The key to knowledge is capturing intellectual assets for the tangible benefits for the organization. As such, imperatives of knowledge is to transform knowledge to add value to the processes and operations of the business, leverage knowledge strategic to business to accelerate growth and innovation and use knowledge to provide a competitive advantage for the business. (Hussain. Lucas. and Ali., 2004). Knowledge management is an organizational discipline bridging information demand and supply in support of learning processes within organizations (Curado.n.d.). Knowledge management enables the communication of knowledge from one person to another so that it can be used by the other person. (Hussain. Lucas. and Ali. , 2004). Knowledge transfer (KT), knowledge retention (KR), and knowledge utilization (KU) are identified as components of knowledge management systems.( Gayton, 2009).

Knowledge transfer revealed by Makino (1990) typically has been used to describe the movement of knowledge between different units, divisions, or organizations rather than individuals. This is described Tan,(2010) and Disterer (2001) by stating Knowledge transferring can be defined as a social interaction culture involving the exchange of employee knowledge, experiences and knowledge through the whole department or organizations. However, Gayton (2009) concluded knowledge transferring is not only between departments. The process of knowledge can be transferred through one channel to another channel such as group, department and branch. Therefore, Knowledge transfer means knowledge sharing within an organization between individual and groups (Trautman,2011).

2.2 Significance of Knowledge transferring

Most knowledge organizations, uses multiple knowledge management tools to transfer knowledge. With the result of knowledge transfer any organization that competes with other organizations in the marketplace on quality, price, or customer loyalty. (Schlomer, Anderson and Shaw,1997). Due to the, emergence of personal networks and applications, knowledge transferring and capturing are becoming more on-demand. And, Organizations must continuously update their knowledge resource to stay in the competition (Bhatti, Zaheer and Rehman, 2010). Knowledge transferring is necessary for companies because what worked yesterday may or may not work tomorrow because, market needs are changing rapidly. Knowledge is a vital factor for financial institutions. Use the knowledge management system enhances continuous improvement and innovation to gain competitive advantage. Demands from customers and Human resources require transfer knowledge within the organization (Rasoulinezhad,n.d.).

2.3 Factors that Influence Knowledge Sharing

There is a scarcity of research specifically in the area of knowledge sharing between individuals in organizations, and empirical evidence has just begun to uncover some of the complex dynamics that exist in processes related to knowledge sharing. Based on a review of theory and research related to knowledge sharing, the following have been identified as the major factors that influence knowledge sharing between individuals in organizations: the nature of knowledge, motivation to share, opportunities to share, and the culture of the work environment.

2.3.1 Nature of Knowledge

Knowledge by its very nature exists in both tacit and explicit forms. However, with the increasing recognition of the importance of knowledge in organizations, different types of knowledge have also begun to be valued differently within organizations. These two characteristics of the nature of knowledge, tackiness and explicitness of knowledge, and the value attributed to knowledge have a significant influence on the way knowledge is shared within organizations.

2.3.2 Tacit and explicit knowledge.

The dominant classification of knowledge in organizations divides it into two types, tacit and explicit. The critical differences between these two types are found in three major areas codifiability and mechanisms for transfer, methods for acquisition and accumulation, and the potential to be collected and distributed (Lam, 2000). The concept of tacit knowledge was first presented by Polanyi (1966), who argued that a large part of human knowledge cannot be articulated and made explicit easily. Tacit knowledge can be thought of as the know-how that is acquired through personal experience (Nonaka, 1994). It is therefore not easily codifiable and cannot be communicated or used without the individual who is the knower. Tacit knowledge also tends to be sticky in nature. Lam (2000) defined stickiness as the incremental expenditure involved in moving knowledge in a form that is useable and easily understood by the information seeker. According to Lam, stickiness for the knowledge supplier comes from the tackiness of the knowledge that has to be shared, whereas absorptive capacity creates stickiness for the knowledge user. Therefore, tackiness of knowledge is a natural impediment to the successful sharing of knowledge between individuals in organizations. Explicit knowledge, on the other hand, can be easily codified, stored at a single location, and transferred across time and space independent of individuals (Lam, 2000). It is easier to disseminate and communicate (Schulz, 2001). Explicit knowledge therefore has a natural advantage over tacit knowledge in terms of its ability to be shared relatively easily among individuals. However, just because explicit knowledge is easily transferred across individuals and settings, it should not be assumed that it is easily shared in organizations. Weiss (1999) argued that the ability to articulate knowledge should not be equated with its availability for use by others in the organization. To support this point, he made a distinction between explicit knowledge that is easily shared with that which is not by introducing the notion of rationalized knowledge and embedded knowledge within the context of professional services organizations.

Rationalized knowledge is general, context independent, standardized, and public. Weiss suggested that because this knowledge has been separated from its original source and is independent of specific individuals, this knowledge is readily shared and available to all those who seek it. Embedded knowledge, on the other hand, is context dependent, narrowly applicable, personalized, and may be personally or professionally sensitive. Therefore, explicit knowledge that is embedded in nature is not likely to be easily shared among individuals. However, knowledge must be seen as more than just explicit and tacit in nature. Regardless of whether knowledge is tacit or explicit, the value attributed to it also has a significant impact on whether and how individuals share it.

2.3.3 Value of knowledge

Knowledge is increasingly perceived as being commercially valuable, and its ownership is being recognized by both individuals and the organizations they work in (Brown & Woodland, 1999). When individuals perceive the knowledge they possess as a valuable commodity, knowledge sharing becomes a process mediated by decisions about what knowledge to share, when to share, and who to share it with (Andrews and Delahaye, 2000). In situations in which it is valued highly, individuals may tend to claim emotional ownership of knowledge (Jones and Jordan, 1998). This sense of ownership comes from the fact that in several settings, individual knowledge is linked to status, career prospects, and individual reputations (Andrews and Delahaye, 2000). The sharing of such knowledge is a complex process, and Jones and Jordan (1998) found that it involved, among other things, the extent to which individuals perceived themselves to be valued by their organization.

Certain types of knowledge are valued highly by both individuals and organizations. For example, knowledge related to research and development is valued highly because of its commercial and scientific value. Research suggests that in research and development organizations, creative power resides in a relatively small number of individuals (Armbrecht et al., 2001), creating issues of ownership particularly because it is linked to tangible outcomes such as creation of new products, patents, research grants, and individual incomes. Therefore, in highly competitive environments or those in which knowledge has high commercial value, there exists a dilemma resulting from contradictory incentives to share knowledge and to withhold it.

In organizations in which an individual’s knowledge becomes his or her primary source of value to the firm, sharing this knowledge might potentially result in diminishing the value of the individual, creating a reluctance to engage in knowledge-sharing activities. Professionals, in particular, tend to guard their knowledge as they perceive that their own value to the firm is a product of the knowledge they possess (Weiss, 1999). Any reluctance to share knowledge is further heightened in situations characterized by uncertainties and insecurities, such as mergers and acquisitions (Armbrecht et al., 2001).

2.3.4 Motivation to Share

Knowledge is “intimately and inextricably bound with people’s egos and occupations” and does not flow easily across the organization. According to Stenmark (2001), People are not likely to share knowledge without strong personal motivation. Motivational factors that influence knowledge sharing between individuals can be divided into internal and external factors. Internal factors include the perceived power attached to the knowledge and the reciprocity that results from sharing.

External factors include relationship with the recipient and rewards for sharing. Knowledge as power, the increasing importance given to knowledge in organizations, and the increasing value attributed to individuals who possess the right kind of knowledge are conducive to creating the notion of power around knowledge. If individuals perceive that power comes from the knowledge they possess, it is likely to lead to knowledge hoarding instead of knowledge sharing. According to Brown and Woodland, individuals use knowledge for both control and defense (Armbrecht et al., 2001).In a competitive environment, withholding knowledge from those considered competitors is often regarded as being useful to attaining one’s goals. Power politics is therefore an important aspect of knowledge sharing in organizations (Weiss, 1999).

Blackler, Crump, and McDonald (1998) concurred with the notion that knowledge can be perceived as a source of power in organizations. They suggested that because knowledge is always situated within a particular context, it is natural that culture and power dynamics within the context affect the way knowledge is perceived and used. Reciprocity or the mutual give-and-take of knowledge can facilitate knowledge sharing if individuals see that the value-add to them depends on the extent to which they share their own knowledge with others. Reciprocal acts as those in which individuals help others and share information without negotiation of terms and without knowledge of whether or when the other will reciprocate. Reciprocity as a motivator of knowledge sharing implies that individuals must be able to anticipate that sharing knowledge will prove worthwhile (Weiss, 1999). It is the expectation that those involved in sharing knowledge will be able to acquire or benefit from some of the value created by their involvement. Empirical evidence for the relationship between reciprocity and knowledge sharing indicates that receiving knowledge from others stimulates a reciprocal flow of knowledge in the direction of the sender both horizontally and vertically in organizations (Schulz, 2001). Support for the relationship between reciprocity and knowledge sharing was also found by Hall (2001). Reciprocity is also thought to be a motivator of knowledge sharing in communities of practice where knowledge sharing results in enhancing participants’ expertise and providing opportunities for recognition.

2.3.5 Opportunities to Share

Opportunities to share knowledge in organizations can be both formal and informal in nature. Formal opportunities include training programs, structured work teams, and technology-based systems that facilitate the sharing of knowledge. Stenmark (2001) referred to these as”formal interactions,” and Hall (2001) called them “purposive learning channels”those that are designed to explicitly acquire and disseminate knowledge. Informal opportunities include personal relationships and social networks that facilitate learning and the sharing of knowledge Weiss (1999) referred to these informal opportunities as “relational learning channels.” Purposive learning channels provide individuals with a structured environment in which to share knowledge. Armbrecht et al (2001) identified some formal interventions that facilitate knowledge sharing in organizations, from basic instructions to share knowledge, to more complex interventions such as Nominal Group Technique and the Delphi Technique.

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However, knowledge shared through formal channels tends to be mainly explicit in nature (Yang ,2007) The advantages of purposive learning channels are that they are able to connect a large number of individuals and they allow for the speedy dissemination of shared knowledge, especially through electronic networks and other technology-based systems. Empirical evidence for successful knowledge sharing through formal channels was found by Chini (2004) and Tan (2010) Although purposive learning channels play an important role in facilitating knowledge sharing, research indicates that the most amount of knowledge is shared in informal settings through the relational learning. Relational channels facilitate face-to-face communication, which allows for the building of trust, which in turn is critical to sharing knowledge. These informal opportunities to interact with other people help individuals develop respect and friendship, which influences their behavior Lim (2005) called this “relational embeddedness” the kind of personal relationships that people develop when they interact with each other over a period of time.

2.3.6 Culture of the Work Environment

The factors described above are important to understanding the manner in which knowledge is shared between individuals. However, all of these factors are influenced by the culture of the work environment the culture of the subunit and/or the culture of the organization at large. Organizational culture is increasingly being recognized as a major barrier to effective knowledge creation, sharing, and use (Weiss,1999). Organizations are essentially cultural entities Lim (2005) and therefore, regardless of what organizations do to manage knowledge, the influences of the organization’s culture are much stronger. Dyer (1998) defined culture as a “pattern of basic assumptions” that is developed by a group as they grapple with and develop solutions to everyday problems. When these assumptions work well enough to be considered valid, they are taught to new members as the appropriate way to approach these problems. Schein further added that a key part of every culture is a set of assumptions about how to determine or discover what is real and “how members of a group take an action, how they determine what is relevant information, and when they have enough of it, to determine whether to act and what to do”. Culture is therefore reflected in the values, norms, and practices of the organization, where values are manifested in norms that in turn shape specific practices (Kasim, 2008).

Weiss (1999) identified certain aspects of organizational culture that influence knowledge sharing culture shapes assumptions about which knowledge is important, it controls the relationships between the different levels of knowledge (organizational, group, and individual), and it creates the context for social interaction. It is also culture that determines the norms regarding the distribution of knowledge between an organization and the individuals in it. Norms and practices that advocate individual ownership of knowledge severely impede the process of knowledge sharing within the organization, as the “organizational culture orients the mindset and action of every employee”. Culture suggests what to do and what not to do regarding knowledge processing and communication in organizations. An important component of culture in organizations is corporate vision pointed to the fact that a corporate vision not only pro-vides a sense of purpose to the organization but also helps to create a system of organizational values. Organizational values that influence knowledge sharing include the creation of a sense of involvement and contribution.

2.3.7 Openness culture

Among employees the types of knowledge that are valued edge-related values such as trust and openness. An organization’s culture also shapes the perceptions and behaviors of its employ and one way it does this is by establishing the context for social interactions within the organization. According to Lim (2005) the impact of culture on the context for social interaction can be assessed along three dimensions vertical interactions (interactions with senior management), horizontal interactions (interactions with individuals at the same level in the organization), and special behaviors that promote knowledge sharing and use (sharing, teaching, and dealing with mistakes). Cultures are not homogenous across an organization (O’Dell & Grayson, 1998). Within organizations, there are also subcultures that are characterized by a distinct set of values, norms and practices, often resulting in their members valuing knowledge differently from other groups within the same organization. Subcultures and their influence on knowledge sharing add even more complexity to determining those practices and norms that create the right environment to facilitate the sharing of knowledge (Yang,2007).

2.4 Characteristics of Employees

Personality refers to some qualities, characteristics skills and competencies of individuals along with certain other traits like grooming and attitude. Personality means very specific patterns of behavior of an individual in a defined situation. But there are certain uniform characteristics which always emerge in a person on the basis of which certain inferences can be drawn. Examples could be dominant or submissive nature, aggressiveness or politeness. Personality consists of organization of feelings, thoughts, cognitions and visible behavior. However certain patterns of behavior are not visible and are known only after proper testing (Lim ,2005).

An ability and capacity acquired deliberate systematic and sustained effort to smoothly and adaptively carryout complex activities or job functions. Technical skills, Human skills, conceptual skills and design skills can be categorized in skills. Technical skill is knowledge of and proficiency in activities involving methods, processes, and procedures. Thus, it involves working with tools and specific techniques. Human skill is the ability to work with people; it is cooperative effort; it is teamwork; it is the creation of an environment in which people feel secure and free to express their opinions. Conceptual skill is the ability to serve the “big picture”. It is also about recognizing significant elements in a situation, and to understand the relationships among the elements. Design skill is the ability to solve problems in ways that will benefit the enterprise. To be effective, particularly at upper organizational levels, employees must be able to do more than see a problem (Tan,2010).

Individuals will be more attracted to coworkers who are more closely concerned about their opinions, values, goals which intern will enhance their willingness of exchanging experiences, affection and knowledge with their co-workers, leading to greater knowledge sharing (Kasim, 2008). Individuals with higher organizational commitment are more likely to react with stronger knowledge sharing given that knowledge sharing influences the facilitation of group performance. Employees with higher organizational commitment expend greater efforts on group work thus, have stronger knowledge sharing (Tan,2010). Participative decision making partially reflects a working climate of cohesion, if individuals perceive their working climate to be high in cohesion during decision making then they may feel comfortable to exchange experiences and knowledge with co-workers, leading to strong knowledge sharing in a group (Xu,2008).

Individuals working under circumstances received task interdependence are more open minded in executing, sharing and helping and more concerned about each other’s task performance leading to stronger intentions of knowledge sharing (Makino,1990). Such knowledge is not available to the wider organization, and managers may not be aware of its existence or its importance until employees leave the organization” (Sun and Scott). in their study of ‘Knowledge Management in several banks, states that different groups of managers of a branches grouped together in the form of branch teams in the banking industry. Further, this research elaborates that managers’ teams are struggling to manage the nine knowledge areas: cost, time, scope, risk, communication, team members, procurement, quality and integration related to management body of knowledge. Managing these processes by which knowledge is acquired, shared and integrated between these various individuals, teams and organizations is a crucial task in the process of banks.

Organizational commitment indicates the relative strength of individual identification and involvement in a particular organization (Lim and Morris, 2006). It is assumed to influence almost all behavior that influences and benefits an organization including knowledge sharing given that knowledge sharing is a way of facilitation of the pursuit of organizational goals Received task interdependence is regarded as the interconnections between tasks such that performance of one definite piece of work counts on the completion of other definite pieces of work. Accordingly, it can be defined at the individual level as the extent to which a member in a particular job is affected by the work flow from one or more other jobs (Hussain, Lucas and Ali, 2004). Individuals Sharing organizationally relevant experiences and information with one another (Xu,2008), is the aspect of knowledge sharing considered within this research Knowledge sharing can impact on the people within an organization by facilitating learning from each other as well as from external sources, causing employees to become more flexible within the technology while enhancing job satisfaction. Knowledge sharing also contributes towards the organizational processes by improving effectiveness through performing the most suitable processes and making the best possible decisions, improving efficiency by performing the processes quickly and in a low cost manner and improving innovative ability by performing the processes in a creative and a novel manner that improves efficiency and effectiveness. Knowledge sharing can also enable employees to shorten the learning curve and quickly educate less trained employees to achieve higher performance levels. It also enhances employee problem solving capacity by providing access to compiled subject, customer reference and resource files available either directly or through a system.

Hall (2001) has suggested that transformational leadership may be a potential predictor of knowledge use in organizations. In addition, leadership commitment to knowledge sharing has also been identified by Schulz (2001) as a key consideration. According to her survey, uncertainty about leadership commitment to knowledge sharing was the key challenge. This support, of course, must be encouraging rather than coercive; employees can receive suggestions on what and how much to share with their colleagues, but the final decision is always up to them. In fact, “when lower level workers are ordered to ‘share’ information with those higher up the corporate ladder, a cutthroat information culture of meddling micromanagement can result” (Lim, 2005).

Employees may form judgments about management’s support for knowledge sharing by looking for appropriate symbols. If a culture is “the system of such publicly and collectively accepted meanings operating for a given group at a given time” then symbols, which are “objects, acts, relationships that evoke actions and people to action” play an important role in an organizational culture’s development and evolution Sun and Scott (2005) presence of knowledge sharing technology may be such a symbol. If management spends a significant amount of resources on either purchasing or developing and implementing such technology, employees could interpret this as a signal of management’s support for this ideal, and act accordingly. However, as knowledge, if employees perceive that management is not very committed to implementing this new technology, then the initiative to promote a strong knowledge sharing culture is not likely to be successful. Perceptions about management’s support for knowledge sharing are potentially necessary for the creation and maintenance of a positive knowledge sharing culture in an organization (Chini, 2004)

2.5 Characteristics of Employees and knowledge transferring

An employee’s attitudes and competencies may impede knowledge transferring. Makino (1990) find that many employees are unaware of the importance of sharing and transferring knowledge. Some individuals possess an attitudinal ”unwillingness to share” due to personal insecurity, such as a fear of being seen as ignorant and therefore unfit for job advancement or new career opportunities. This is sometimes described as the notion that ‘knowledge is power’. Lately, Lin (2005) found that mostly in informal networks, people trust each other, voluntarily share knowledge and insights with each other, and collaborate actively and willingly. However, Yang (2007) indicated in his study that employees with a higher level of education and longer work experience are more likely to share their expertise and have positive attitudes toward transferring knowledge. An individual’s attitude toward knowledge sharing is driven primarily by anticipated reciprocal relationships regarding knowledge sharing and the subjective norm regarding knowledge sharing (Xu,2008).

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Chini (2004) explored that employee’s attitutes are influenced by their beliefs, high willingness of emplyees attempt to master and use new knowledge. But, Disterer (2001) revealed that younger and less experienced employees may feel some negative attitutes towards knowledge transferrring. Transferring knowledge may be seen as additional work by them. Because of, the time for documentation communication … ect and young employees do not expect benefits from transfering their knowledge because they do not believe benefits.

Though employee’s attitude influence to transfer knowledge, Yang (2007) argive that reward systems can be inspired positive attitudes. Due to lack of positive attitudes of employees, several organizations in us have introduced reward systems to encourage employees to transfer their knowlege. Yang further argive motivational factors significuntly associated with employee transferring attitudes and intentions. However, minbaeva, (2008) found that expected organiztional rewards did not significantly influence employee’s attitudes and intentions towards knowledge transferring. This finding was somewhat surprising, Because previous study by yang indicated that ognanizational rewards are important to influence attitudes of employees.

Attitudes of employees towards. Knowledge transferring refer to evaluation of encouraging knowledge transferring behaviour. Consequently, employee tend to have positive intentions to encouraging knowledge transferring practices. (Riege, 2005). Conversely, Lim (2006) stated positive attitudes is not suffient to transfer knowledge. Employeee should have knowledge, experience and abilities required to promote knowledge transferring in organization. Additionally, subjective norms and peeceived behavioural contral positively influenced intentions to encourage knowledge transferring. More general factors such as employee personality traits, leadership styles, organizational commitment and mutual trust could consider.

Knowledge transfer means replicating the expertise, wisdom and skills of critical professionals in the head and hand of their co-workers. It movesthe right at the right time to keep a workforce prepared productive, innovative and competitive. Knowledge transfer influence by employee’s skills such as cognative skills, language skills, leadership skills, Human skills and technical technical skills (Dyer, 1998). Leadership commitment to knowledge sharing has also been identified by trautman (2011). as a key consideration. Nevertheless, Lin (2005) have suggested that transformational leadership may be a potential predictor of knowledge transfer within the Organization.

Knowledge transfer is effective when employees having leadership skills. Because, leadership involves open and communication, support and leader’s perception. Knowledge transferring without leadership skills happens rarely in business world. Because, leadership skills emphasized the need for his co-workers/ collegues to transfer information, learning and knowledge with appropriate units in the organization. In the absense of this commitment, It will decrease the effectiveness of knowledge transfering. Chini (2004) explored that especially to effect the use of the employee’s skills and motivation of workers influence to transfer knowledge Meanwhile, (Riege, 2005) argive individual worker’s abilities are influenced to transfer knowledge but skills variety determine the effectiveness of knowledge transferring. Further, High levels of skills variety determine the effectiveness of knowledge transferring. Further, High level of skills variety is expected to suooprt and encourage knowledge transferring. Conversly, Knowledge transfer is a process whereby one unit is affected by the experience of anothers specific skills. Language skills of employee will help to create an environment conductive for knowledge transferring and will, therefore, be positively related to knowledge- transferring behaviours.

The ultimate success of any program lies in the willingness and ability of employees to make it happen Makino (1990) asserted that individual who are more confident in their ability to share useful knowledge are more likely to express intention to share knowledge and report higher levels of engagement in knowledge transferring. However, Riege (2005) found that ability of employees whithin an organization to transfer knowledge throughout the organization depends on the conditions of their work environment. At both individual and organizational level, knowledge absorption depends upon the employee’s ability to add new knowledge to existing knowledge (Yang, 2007) However, Riege, (2005) explored that employee ability or motivation alone does not lead to knowledge transfer. The result of study indicated that ability is necessary but not sufficient. The functional appoach posits that a single behaviour may serve different psychological functions for people, depending on their individual characteristics like personality and characteristics of their sitution like organizational context. Moreover, Chini (2004) ability of employees to transfer knowledge depends first and foremot on their communication skills. Language skills of employee will help to create an environment conductive for knowledge transferring and will, therefore, be positively related to knowledge transferring behaviours.

Effective communication skills both verbal (the most common vehicle of sharing tacit knowledge) and written is fundamental to effective knowledge transferring. Lim (2006) highlighted, a clear correlation between employee’s social networks, their direct personal contracts with in outside a company, their personalities and their abilities to interact with others and help to transfer knowledge effectively.

The most important success factor of knowledge management is corporate culture (Disterer,2001) and The culture must be geared towards social rewarding, incentives, innovation, learning, experimentation, scrutiny and reflection (Hussain. Lucas. and Ali. , 2004).

The global acceptance of knowledge as critical success factor organizations must effectively manage the abilities, skills and knowledge of the employees in changing environment (Bhatti, Zaheer and Rehman, 2010).

Social rewards and incentives methods can act as extrinsic motivators. So that, employees are willing to share and transfer knowledge and Knowledge transferring is also based on leadership. Employees have to be able to transfer this knowledge within organizational networks characterized by separation through time, space, culture and language.(Xu and Ma, 2008).And while the advent of modern information technology – which reduces or even eliminates some of the inherent challenges posed by distance such as communication or coordination costs – has led some scholars to declare the “death of distance” (Ambos, n.d.).

Moreover, lacking motivation, recipients may be passively involved but feign acceptance or reject new knowledge. Practitioners typically consider interdivisional jealousy, lack of incentives, lack of confidence, and turf protection as barriers to knowledge inflow absorptive capacity. Optimal learning can be achieved when the objective is related to what is already known (Hussain. Lucas. and Ali. , 2004).

Knowledge transferring does however, appear to be contingent on individual’s confidence of transferring useful knowledge with others. Several studies have shown that individuals who are more confident in their ability to transfer useful knowledge are more likely to express intentions to transfer knowledge and report higher levels of engagement in knowledge transferring (Hall,2001). However, the personality type most prominent is a combination of introversion, sensing, thinking and judging. Employees seem to make good performance due to their thinking ability to solve arganizational problems and to communicate with other people (Chini,2004).

2.6 Barriers to knowledge transfer

Knowledge transfer was influenced by three types of factors such as individual, social and organizational factors (Xu and Ma, 2008).In past studies, researchers have been identified individual barriers to knowledge transferring such as uncertainty , lack of communication skills, language barriers, negative attitudes to transfer knowledge and lack of professionalism. Language, conflict avoidance, Bureaucracy and organizational hierarchy have identifies as social barriers to knowledge transfer by past researchers. In some companies a certain lack of a legitimate language is perceptible and some employees of an organization are not comfortable with change and not willing to take risks, new ideas may be covered. On the other hand, More bureaucratic and administrative organizations show formal procedures which prevent the transfer of knowledge and new ideas. Strong hierarchical enterprises prevent even cross-functional cooperation or knowledge transferring (Disterer, 2001). Further, The knowledge is not shared properly because there in not enough awareness about knowledge management within the organization (Bhatti, Zaheer and Rehman, 2010).

Obvious perceived barriers such as lack of resources, security concerns or intellectual property issues social media technology can be utilized to achieve a variety of knowledge management related aims. But, in practical world, these are the variables that not using (Ambos, n.d.).

2.7 Effectiveness of knowledge transferring

Knowledge management success factors may be links to economic performance or industry value. Technical and organizational infrastructure, standards, flexible knowledge structure, knowledge-friendly culture, clear purpose and language, change in motivational practices, multiple channels for knowledge transfer and senior management support have identified as the success factors (Hussain. Lucas. and Ali. ,2004). Further, Ambos (n.d.) expressed that successful knowledge transfer depends on the “fit” of different knowledge transfer tools and mechanisms with the firm’s overall strategy.

Organizations should establish a culture conducive to more effective knowledge creation, transfer, and use. Today many companies are engaged in high-level and general efforts to change the organizational norms and values related to knowledge. They are making efforts to make their personnel understand the importance of this valuable asset. Effective knowledge management requires a good fit between the organization’s culture and its knowledge management initiatives (Rasoulinezhad,n.d.).

Changes that don’t fit the culture probably won’t thrive, So that, management needs to align its approach with its existing culture or be prepared for a long-term culture change effort. In general, if the cultural soil is not fertile for knowledge management initiatives, no amount of technology, knowledge content, or good knowledge management practices will make the effort successful. Organizational culture should have several components with regard to knowledge (Disterer, 2001).

Employees should have a positive orientation to knowledge, that is, employees should be bright, intellectually curious, willing and free to explore and also executives should encourage their knowledge creation and use. Employees should not be inhibited in transferring knowledge, that is, they should feel that they are not alienated or resentful of the company and do not fear that sharing knowledge will cost them their jobs. Finally, It is important to identify external knowledge sources to help determine and understand current and future customers, suppliers and markets (Hussain, Lucas, Ali, 2004).

Chini, (2004) was argued that effective knowledge transfer is contingent on the development of several knowledge transfer capabilities which, in turn, are developed in response to the unit’s strategic position in the network and the unit’s value of knowledge stock. Moreover, two contingency factors, organizational and cultural distance, were seen as decisive moderators to effective transfer.

2.8 Knowledge transferring in financial institutions

Commercial Banks are beginning to realize the significance and importance of transferring knowledge and are beginning to appreciate knowledge as the most important and valued asset that leads to organizational performance. As a result, it has been anticipated that promising motivational factors would help in encouraging the need for employees to share not only crucial knowledge but new knowledge to further ensure that the banking industry possess the competitive edge that they are looking for (Hussain, Lucas, Ali, 2004). The knowledge transferring initiatives in financial services companies one it is seen as an integral part of the overall corporate strategy which aims to grow, extract and exploit the company’s knowledge to increase shareholder value (Hussain, Lucas, Ali, 2004). Recently, The World Bank , breaking new ground in the field, launched a knowledge transferring initiative in 1997 The bank was determined to transform itself into a knowledge bank, while until that time thought itself mainly in traditional banking terms. Because of, Banks do not sell just services and but rather more specifically knowledge ( Rasoulinezhad,n.d.).

A range of knowledge-sharing programs explored such as communities of practices, tacit knowledge debriefings, helpdesk and advisory services, extensive knowledge collections using the internet and indigenous knowledge program and learning from the benefits by practitioners (Hussain. Lucas. and Ali. , 2004). Organization culture plays a vital role in the success of a Knowledge Transferring process in banks. Knowledge transferring process will not occur unless they are supported by the culture of the banking institution itself. Organization culture drives the banks formal and informal expectations of individuals, defined the types of people who will fit into the organisation, and affected how people interacted with others both inside and outside the organisation. Consequently, an effective culture in banks is crucial in achieving effective Knowledge transferring process (Rasoulinezhad,n.d.).

2.9 Conclusion

As a conclusion of the chapter, researcher attempted to discover basically what is knowledge transferring through first measure of the literature review. Then, researcher has identified the relationship between knowledge and organizational performance. Ultimately, most of past researchers have revealed that individual, social and organizational factors affecting to transfer knowledge within the organization.


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