Knowledge Economy in The UK Essay Example | Topics and Well Written Essays - 2250 words

Knowledge Economy in The UK - Essay Example Knowledge as a 'product' has acquired many management executives to research it in a broad spectrum where its governance has become a major concern in building international strategy, innovation and performance. Knowledge as a 'tool' examines the outcomes of knowledge processes, and what we mean by knowledge economy is to make the best out of this 'tool'. Knowledge economy is a product of strategical organisational fields that possess the capability to fulfill human capital inputs by increasing number of technologies (Brusoni et al, 2001). At an institutional level knowledge economy defines various levels to which regional or organisational policies are shaped in context with economic regimes. With knowledge comes innovation and a knowledge-enabled organisational environment adopts and implements knowledge strategies and develops knowledge culture in order to sustain competitiveness in the long term. However, the extent to which a knowledge economy is possible depends upon the organisation's primary levels of knowledge and innovation it can sustain (Hyde & Mitchell, 2000). Under the heading of knowledge economy lies increasing competitive pressures which are the outcomes of deregulation and internalisation. Governing knowledge under strategic management has bee... of knowledge not limited in a specific cultural context, but entails cross-cultural origins where integrating effects within and between organisations are managed. Gratton et al (1999) suggests that various research measures on a knowledge economy are dependent upon the influences that are acquired through appropriate use of knowledge with expertise that brings credibility to the HR department (Gratton et al, 1999: 13). Strategic HRM Perspective of the Organisation The SHRM focuses on four main perspectives that question existence of the organisation for resource allocation, in-house limitations governed through market relations, internal organisation and labor markets and competitive advantage (Foss, 2005: 24-25). Though performance management (PM) initiates knowledge management (KM) by controlling and aligning the most competent individuals to deploy other workforce in the interests of organisations, but it follows some views to regulate performance. Firstly, it closely monitors employee performance and competencies to specify behaviors, skills and knowledge for employees. Then there are monitoring outputs that allows employers to decentralise control and finally there are high-velocity environments to assess employees contribution in various components of the PM system like goal setting, evaluation, training and development etc (Gratton et al, 1999: 61). The resource based perspective of SHRM is to visualise the capabilities of organisation in the light of a bundle of tangible and intangible resources required to sustain in the market competition. It is the management that analyses the accumulated stock of knowledge, skills and abilities that the organisation possess in terms of human resource (Mabey et al, 1998: 76). Since KM varies according to spatial