Determinants of Effective Knowledge Management design: An Empirical Study of banking Industry in India

 

Dr. Vaibhav Gupta

M.Com, Ph. D Kasganj, U.P.

*Corresponding Author Email:

 

ABSTRACT:

 

Knowledge management in the bank is creation of interest towards learning across the groups. The employees in the corporate offices are invited to bring a presentation on a particular subject along with their lunch to the web conferences and live web casts. The users of knowledge management can participate from any location and share their ideas, with these notable individuals.

 

KEYWORDS: Knowledge management, Self Motivation, Banking

 

 


INTRODUCTION:

Knowledge management in the bank is creation of interest towards learning across the groups. The employees in the corporate offices are invited to bring a presentation on a particular subject along with their lunch to the web conferences and live web casts. The users of knowledge management can participate from any location and share their ideas, with these notable individuals. This has encouraged the staff to get self motivation towards knowledge creation and sharing. Another important initiative of knowledge management introduced in the bank is corporate learning. In this strategy the ability of the employee to learn from teammates across the groups is encouraged. This has created a learning environment in the bank through push mechanism and collaboration. This initiative is known as the daily does which present the summary of items which are new in the banking business and the portal. This daily does includes opinions, feature headlines, poles, customer appreciations, happenings, newsletters and other updates of the events. By delivering this information directly to the mail box the knowledge management team is able to disseminate and distribute knowledge to the bank employees in the morning itself.

 

Challenges in implementation of knowledge management:

Most of the challenges in knowledge management primarily stem from the types of knowledge reuse situations and purposes. Knowledge workers may produce knowledge that they themselves reuse while working. However, each knowledge re-use situation is unique in terms of requirements and context. Whenever these differences between the knowledge re-use situations are ignored, the organization faces various challenges in implementing its knowledge management practices.

 

 

REVIEW LITERATURE:

G. Chandana (2008) focused on how km work at ICICI (India) and tries to identify the critical success factors of km. A small survey was done by the researcher among the bank employees and based on their responses a factor analysis was carried out. That resulted in identification of the critical success factors. N. Abhishek (2013) emphasized knowledge management application in a bank are customer relationship management & performance measurement, risk management, marketing management. km system in banks better and more efficient results in decision making. U. Y. Ozlem, K. Duygu (2013) studied is to examine the basic components of km in banking sector with an empirical analysis and also to determine whether there is a difference between the private and State Bank in the context of km practices.

 

OBJECTIVES OF THE STUDY:

·        Primary Objective: To determine the various aspects of effective knowledge management system.

·        Secondary Objective: To establish whether the various determinants of effective knowledge management system are significant or not.

 

HYPOTHESIS:

Ho various determinants of effective knowledge management system are significant or not.

Ha   The determinants of effective knowledge management system are significant

 

RESEARCH METHODOLOGY:

The research design is exploratory in nature. In this study Primary data has been used mainly. The data has been collected from 279 employees of the various banks where knowledge management systems have been implemented. Mainly those employees with judgment sampling were selected who directly or indirectly either involved in the implementation process of KM or in the design process or were directly or indirectly affected by KM. A structured questionnaire was used to collect the data. The data has been analyzed with the help of statistical tools such as mean, standard deviation and one sample t-test.

 

Data Analysis and Interpretation:

Table 1 Gender Profile.

Categories

No. of Respondents

% age

Gender

 

Male

196

70.25

Female

83

29.75

Total

279

100.00

 

Table 1 shows the gender profile of the respondents. Regarding gender profile it was found that 70% are males and around 30% females.

 

 

Figure 1 Gender Profile.

 

Table 2 Age profile of the Respondents

Age

Below 35

90

32.26

35-50

105

37.63

Above 50

84

30.11

Total

279

100.00

Table 2 shows the age profile of the respondents. 32.26% are below the age of 35 whereas around 38% are between the age of 35-50 and lastly 30% are above the age of 50. Hence it may be seen that there is a good representation of employees from all age groups.

 

 

Figure 2 Age profile of the Respondents

 

Table 3 Experience of the Respondents

Experience

Below 5 years

94

33.69

5-12years

105

37.63

above 12 years

80

28.67

 Total

269

100.00

 

Table 3 shows the experience profile of the respondents. Around 34% have an experience of below 5 years, 38% have an experience of 5-12 years and lastly 29% have an experience of above 12 years.

 

 

Figure 3 Experiences of the Respondents

 

Table 4 Income of the Respondents

Income

Below 50,000 per month

106

37.99

50,000 to 1,00,000 per month

101

36.20

Above 1,00,000 per month

72

25.81

Total

279

100.00

 

Table 4 show the income profile of the respondents, around 38% are below the income of 50,000 per month, 36% are between the income bracket of 50,000 to 1,00,000 and lastly around 25% earn above 1,00,000 per month.

 

 

Figure 4 Income of the Respondents

 

 

 

Table 5 Managerial Level of the Respondents

Level

 

Upper middle management

72

25.81

Middle Management

127

45.52

Lower Middle Management

80

28.67

Total

279

100.00

As per table 5, there are around 26% respondents from upper middle management, 46% are from middle management and around 29% are from lower middle management.

 

 

Figure 5 Managerial Level of Respondents

 

Determinants of Knowledge Management Design:

There are mainly four important aspects of knowledge management design. These four major factors are - Accessibility of the system, collaboration in the system, Customization in the System and Recognition of People.

It may be observed from the figure 6 that the most important determinant of the effective knowledge management system is recognition, this aspect has a mean value of 4.04. It is followed very closely by accessibility with a mean value of 4.01. The other two aspects also have a good mean value namely collaboration and customization 3.63 and 3.64 respectively. These mean values are the mean of two aspects taken under all four major constructs.

 

 

Figure 6 Determinants of Effective KM Design

 

 

Relative importance of various aspects under Determinants of effective Knowledge Management:

 

Table 6 Mean values of various determinants of Effective Knowledge management.

 

 

Mean value out of 5

Standard Deviation

I

Accessibility of the system

4.01

 

1

Checking information on the connected devices like laptop, phone etc.

3.85

0.82609

2

Ensures anywhere anytime access

4.17

0.59263

II

Collaboration in the System

3.63

 

3

System ensures enough interaction and team building

3.62

0.96849

4

Management ensures collaboration of teams

3.65

0.93892

III

Customization in the System

3.64

 

5

KM System should have the capacity to absorb changes as per the requirements of various stakeholders.

3.49

1.19318

6

KM system should have capability to be customized for real time changes

3.87

0.98726

IV

Recognition of People

4.04

 

1

Awarding people who are using KM in the most efficient way

4.04

0.83965

2

Giving away the certificates to those who complete the training of KM system

4.03

0.85993

 

Table 6 shows the mean values and relative importance of various factors of Knowledge Management. It has been found from the analysis table that ‘Ensuring anywhere anytime access’ is the most important aspect of a good knowledge management design. This aspect has a mean value of 4.17. It is followed by two other important aspects – Awarding people who are using KM in the most efficient way and giving away the certificates to those who complete the training of KM system with mean values of 4.04 and 4.03 respectively. There are other few aspects also that have good mean value. However, to find whether these mean values are significant or not ‘One sample t-test’ has been applied.

 

One sample t –test:

The one sample t-test is the test that finds the significance of a value when there is no other value for reference. In such cases a population mean or test value (which is either mid-point of the interval scale or any other suitable reference value) is taken to test the significance. In the present study five point Likert scale was used and the test value is taken ‘3’, which is actually a mid-point value of the interval scale. The results of one sample t-test have been shown in the table 7.

 

Table 7 Results of One Sample t-test when test Value is 3

 

 

Degree of freedom

T- value

Significance

I

Accessibility of the system

 

 

 

1

Checking information on the connected devices like laptop, phone etc.

278

15.907

0.000

2

Ensures anywhere anytime access

278

30.521

0.000

II

Collaboration in the System

 

 

 

3

System ensures enough interaction and team building

278

9.897

0.000

4

Management ensures collaboration of teams

278

10.702

0.000

III

Customization in the System

 

 

 

5

KM System should have the capacity to absorb changes as per the requirements of various stakeholders.

278

1.979

0.024

6

KM system should have capability to be customized for real time changes

278

13.623

0.000

IV

Recognition of People

 

 

 

1

Awarding people who are using KM in the most efficient way

278

19.148

0.000

2

Giving away the certificates to those who complete the training of KM system

278

18.517

0.000

 

Table 3 shows the results of t-test. The columns are degree of freedom, t-value and significance value. It has been found from the study that for all the statements under three major heads, the value are significant. Hence it may be concluded that regarding Checking information on the connected devices like laptop, phone etc, Ensures anywhere anytime access, System ensures enough interaction and team building, Management ensures collaboration of teams, KM System should have the capacity to absorb changes as per the requirements of various stakeholders, KM system should have capability to be customized for real time changes, Awarding people who are using KM in the most efficient way and Giving away the certificates to those who complete the training of KM system the null hypothesis is rejected and alternate hypothesis is selected–“The determinants of effective knowledge management system are significant”.

 

FINDINGS AND CONCLUSION:

An effective knowledge management system can only be build when all its stakeholders are satisfied and seek value from it. From the variables studied in the present study, it has been noticed that Accessibility of the system, collaboration in the system, Customization in the System and Recognition of People are the most important aspects of establishing a good knowledge management system. Everywhere in the world in businesses, recognition of employees is the most important aspect. However, at the same time we cannot deny the accessibility of the system, collaboration and customization. The employees expect praise, certifications, awards etc. whenever they learn a new technology or system.

 

The study also finds significantly that a robust knowledge management system is not made up of only one aspect. It has multiple aspects to deal with. Most important aspect for effective knowledge management system design is the making it accessible and possibility of customization. There should also be appropriate filters so that only that level of information can be shared may be controlled and the information can be shared as per the level of management and sensitivity of information.

 

REFERENCES:

1.       Suvarchala. M. B, Knowledge management in commercial banks-A study of SBI, SSIJMAR, Vol. 2, No.3

2.       Ugulu. Y. O, Kizildag. D. (2013) A comparative analysis of knowledge management in banking sector: An empirical research, European Journal of Business and Management. Vol. 5, No.16.

3.       Grant, R. M. (1996). Toward a Knowledge-Based Theory of the Firm. Strategic Management Journal, Vol. 17,Pp.109-122.

4.       Rono, C. (2011). Knowledge Management Practices by Commercial Banks In Kenya. Published Thesis,University of Nairobi.

5.       Sangameshwaran Prasad, (2003). “Knowledge Management”; Indian Management, May, pp 31-35.

6.       E. Ofek, M. Sarvary, Leveraging the customer base: creating competitive advantage through knowledge management, Management Science, 47(11), 2001, 1441-1456.

7.       Nonaka, 2007. The Knowledge-Creating Company, Harvard Business Review, 85 (7-8).

 

 

 

 

Received on 21.02.2019       Modified on 28.02.2019

Accepted on 03.03.2019      ©AandV Publications All right reserved

Res.  J. Humanities and Social Sciences. 2019; 10(1): 231-234.

DOI: 10.5958/2321-5828.2019.00042.1