...Q1: explicit costs and implicit costs concepts Explicit Cost Explicit cost is defined as the direct payment which is supposed to be made to others while running business. This includes the wages, rents or materials which are due in the contract. The explicit cost is the expense done in business which can easily be identified and accounted for in the business at any stage. The explicit cost represents the out flows of cash in clear and obvious terms. When any out flow of credit occurs in a business, it should be identified and should be accounted for immediately. Explicit cost is defined as the business expanse which is recorded with the passage of time. When cash starts out flowing from any business, it can cause the profit generation to the bottom line of a business. As a result of this, the direct contrast affects the expanses and the less tangible expanses are curtailed at once. This can help the business to be stabile. Implicit cost Implicit cost in economics is the situation when no actual payment is required to be made. It is the opportunity cost that is equal to what that has to be given up by a firm for using factors that it neither hires nor purchases. Implicit cost is the cost that is the consequence of using the assets, instead of lending, selling or renting them. The income that is forgone from making a choice of not to work known as the implicit cost. Implicit costs show the difference between economic profit and accounting profit. the total revenues less total...
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...Factors such as globalization that leads to new technology, free flow of capital, increased competition, demand for innovation, changes in customer demand, changes in economic, and political structures are constantly reshaping the way business is carried out (Buckley and Carter, 2000; Thorne and Smith, 2001). Previous research has acknowledged the fact that organizations have begun to realize that sustainable advantage relies on managing intangible resources such as the knowledge embedded assets. According to Stewart (2002), in the 21st century, knowledge embedded assets have become more important to the organizations than financial and physical assets. Therefore, in order to compete in this millennium, organizations must have the ability to create value, be agile and sensitive to the market. Knowledge embedded assets like ideas, practices, talents, skills, know-how, know-what, relationships and innovations, that arise from the creation of IC, have become a pre-eminent economic resource and the basis for competitive advantage (Stewart, 2002; Finney, Campbell and Powell, 2004; Demediuk, 2002; Graves, 2002). According to Sveiby (1997), knowledge embedded assets can be found in three areas: the competencies of the employees; organization’s internal structure such as patents, models, computer and administrative systems; and organization’s external structure such as brands, reputations, relationship with customers and suppliers. Stewart (2002), on the other hand, suggests that knowledge...
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...Nicole Wells MISM 2301 CDM, Inc. Knowledge Management Case Study Questions: 1. What approaches does CDM employ to manage the tacit and the explicit knowledge within the organization and why does this effort require such different approaches to manage tacit versus explicit knowledge? [table] | |Tacit Knowledge |Explicit Knowledge |Why it’s different | |Technical disciplines |discussion forums |library of specific management, trade, and |explicit knowledge exists in formal documents and | |( Maintains its own |meeting and conference event notices |technical content |rules | |Intranet portal of explicit|Technical Discipline e-mail accounts |guidelines |It can be more easily documented, archived | |knowledge |directory of contact information on |frameworks |It can be easily broken down into specific and | | |technical experts |case studies |focused bodies of knowledge | | | |templates |It is usually...
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...success. (Lohr, 2002) has found that a trillion dollars is annually spent to analyze, store, and retrieve knowledge. However, such investment is effective in maintaining explicit knowledge but was not proven effective in case of tacit knowledge where knowledge is highly personal and difficult – if not impossible – to reduce to writing. On the other hand, previous literature showed that the willingness of organizational members to share and use tacit knowledge may depend on the extent that co-workers are trusted recipients and sources while some other studies have found that trust has a multi-faceted nature. McAllister (1995) developed and tested empirically the distinctiveness of two forms of trust: 1. affect-based trust, which is grounded in mutual care and concern between workers; and 2. cognition-based trust, which is grounded in co-worker reliability and competence. Nevertheless, no research was found to examine the differential effects of both affect-based and cognition-based trust on employee willingness to share and use tacit knowledge. This study, hence, adds to the literature about the practical understanding of the knowledge transfer process by exploring the effects of both affect-based and cognition-based trust on the willingness of employees to share and use tacit knowledge. Literature Review Explicit knowledge is easily articulated or reduced to writing, is often impersonal and formal in nature, and frequently takes the form of documents, reports, ‘‘white papers’’...
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...University teaching is based on research, or in other words, a continuous process of knowledge creation based on existing knowledge. Before researched knowledge can be applied to teaching, it must be defined explicitly. The research knowledge is codified into reports and articles so it could be transferred to others for teaching or additional research. Lecturers base their teaching on explicit knowledge from research reports in addition to previous teaching. The lecturers need to know how to realize the research information into a transferrable form. This requires conversion between explicit and tacit knowledge. A teacher has to know how to implement the most concrete bits of information into a sensible part of a course. Most importantly, a teacher has to know how to combine multiple bits of information to form a coherent and understandable entity of tacit knowledge. When the teacher has accomplished this, the new knowledge has become a part of his know-how. After this realization process the teacher can share with other teachers, socialize, to deepen his tacit knowledge of the subject. The mission of a university teacher is ultimately to enlighten students on a defined subject. To do this, a teacher cannot transfer whole blocks of knowledge from her brain without any conversions. The teacher has to roughen her knowledge down to the nearest common context and define it explicitly, so that the students will be able to comprehend the subject. This is why thinking about competence...
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...ISSN 1648-2603 ● VIEŠOJI POLITIKA IR ADMINISTRAVIMAS ● 2004. Nr. 13 Accountability and Responsibility in Organizations: the Ethics of Discretion Raymond W. Cox III University of Akron Akron, Ohio, USA The article presents a comprehensive approach to the administrative discretion. The objective of the paper has been to outline a perspective and patterns of behaviour, which are helpful defining "discretion in action". Theoretical discussion on the issue has been extended towards practical implications. Author stresses, that establishing a decision-making architecture, leaders of the organization can create learning and supportive environment, which encourages appropriate and limited use of discretion. Raktažodžiai: atskaitomybė, atsakomybė, diskretiškumas, etika, korupcija, sprendimų priėmimas. Keywords: accountability, responsibility, discretion, ethics, corruption, decision making. Introduction Few aspects of Public Administration engender more controversy than the idea of discretion. For most, the attitude toward the exercise of discretion must be described as ambiguous and even ambivalent. While the necessity of the exercise of discretion is not disputed, there is little agreement on the normative foundation (Bryner, 1987) for that activity. Yet without a normative foundation, there is little basis upon which to judge the exercise of discretion. Recent literature on ethical practices in the governments of Africa has boldly asserted that discretion leads to the breakdown...
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...knowledge and learning of the different actors composing the organization; and the bundle of the different type of resources available for it. As a collection of people, stakeholders are the ones directly or indirectly connected to the organization. These actors have an interest in all its activities. The internal ones, directly involved in the organization (such as employees for example) are implicated in organizational politics and submitted to a hierarchy usually well define. As an economic actor, organization involve buyers and sellers of products or services. This concept induce the fact that the organization must be profitable and generate revenue producing what it sells, and so at an acceptable price and cost. To be able to do this, its different costs and efficiency must be well controlled to adapt, in its industry, to its market conditions. As an accumulation of knowledge and learnings, the organization is also define as a history of way of doing things, adapting its processes to ameliorate the work which have to be done, by putting in place some routines for example. And what enrich the organization is also all the tacit knowledge coming from the managers’ personal thinking and experience. As a bundle of resources, a lot of different types of resources are needed to make the organization working efficiently. Physical, financial, human, intellectual and other types of resources are necessary to give to a company its strength and competitive advantage. ...
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...Angelique Selmon Week 10 Discussion Post Tacit/explicit knowledge Briefly define the tacit/explicit knowledge distinction. What kinds of tacit / explicit knowledge will you need to store for your web 2.0 business plan? What will be your strategy for managing the knowledge(refer to article)? Knowledge management is an important, yet difficult task for any organization. In order to ensure that your company stays relevant and ahead of the competition, a significant investment must be made in data analytics and knowledge creation. However, before any organization takes the steps to collect, store, manage, and analyze data, they must first understand the different types of knowledge available. According to Professor Nonaka’s Knowledge Creation Framework, “The interactions between the explicit and tacit knowledge lead to the creation of new knowledge.” Though both are crucial to understanding any process or ideation, explicit and tacit knowledge are two very different forms of learning, and combined they can create extremely valuable data. Most of us have become quite familiar with the concept of explicit knowledge. Throughout our education, we are taught that knowledge comes from recorded materials such as books, documents, and databases. However, arguably the most insightful types of knowledge cannot be found in such reports, but are rather gained from personal actions and experiences. Tacit knowledge is implied and difficult to formalize or communicate to others. These...
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...company, its products were targeted at the narrow market sector of serious, competitive athletes. Of course, most serious athletes are young men and women, so that Nike’s main customers were in their late teens and early 20s. The targeting of this customer group of serious athletes led Nike to focus on the development of high performance running shoes. Having been keen amateur athletes themselves, Knight and Bowerman had considerable tacit and explicit knowledge of the performance that athletes demand from their shoes. In fact, it was their personal dissatisfaction with existing athletic shoes, which led them to set up Nike to produce shoes, which were fit for purpose in terms of comfort and durability. They launched their offerings at the US Olympic track and field trials and in the mid-1970s they developed the first impact-absorbing sole drawing upon their tacit knowledge of runners’ needs and their explicit knowledge of the properties and potentialities of modern materials. This combination of tacit knowledge of customer needs and explicit knowledge of technology was translated into their knowledge based core competences in design and development, and became their earliest source of CA. These core competences combined with the attention gained from launching the company at the high profile US trials, led to rapidly growing sales among athletes. The next stages in the development of Nike’s knowledge-based competences were possibly fortuitous but were quickly followed by further...
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...1. Knowledge is defined as justified true belief. Why knowledge created in organization is defined as justified true belief referring to the process of knowledge creation in organization. To answer why Knowledge is defined as justified true belief, we need to analyze how is the process of knowledge creation in organization at first. Based on the SECI model of knowledge creation, the process of knowledge creation in organization including four phases. The first phase is socialization which means Sharing and creating tacit knowledge through direct experience. It includes four parts. First, capturing tacit knowledge through direct experience (e.g. interaction with suppliers or customers). In the IDEO case, they kept clients involved and learned from their clients by assimilating the things clients did well into their own methodology. Second, by walking around inside the company, knowledge or the latest available information was collected or acquired. In the 7-11 case, through POS data and Tanpin Kanri, 7-11 obtained the latest information of inventory and sell order data, they make the reasonable decision on these valuable information and knowledge. Third, accumulating and systemizing tacit knowledge by and sharing between individuals. In IEDO and 7-11, they both create an environment for knowledge sharing. IEDO use brainstorming and 7-11 use “Box Lunch Corner” to encourage employees to show their ideas. Last, interpreting tacit knowledge by transferring one’s ideas or...
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...unforeseen knowledge from pieces of art such as Paintings, Music and Poems? Does art truly give us knowledge or is it the artist’s intention to play with us and influence us by making us think that we have learnt something? When thinking of it, we as viewers of the pieces of art are confused because we cannot record anything we have ever learnt from them. To most people Art is just there to impress us and for us to admire it. Never would we think that the Art’s actually give us some sort of knowledge. Nevertheless, the reason for this might be because we have the wrong definition of knowledge and are therefore not looking for the correct kind. Essentially, there are two types of knowledge that can be found in pieces of Art: Explicit and Tacit (Implicit) knowledge. Explicit knowledge is the average Joe’s definition of knowledge. It is the knowledge that we acquire everywhere, whether it be at school, in books, at home etc. However, Tacit or implicit knowledge is the tricky one. It is the type that is hidden inside a piece of Art, and that we only acquire through our sub consciousness. Pieces of Art are very powerful instruments of knowledge for they have the power evoke emotions in us due to the tacit knowledge we...
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...first, is important to make all of the organization understand and embrace that commitment should be equal from everyone working there. When a person is committed with an organization, that person will identify himself and feel part of it. One of the hardest things is to be able to make all the ideas and subjective knowledge that emerges from the organization go from tacit knowledge to actually explicit knowledge. For this problem there are few interesting points and blueprints that can be used to make all these ideas into available information. Take as an example the insights. When people is making insights of something, tacit knowledge starts to come out in the form of ideas, which later on can be expressed or understood easily. Facing problem is a very good way to develop explicit knowledge. We are told that there are few tools to board a problem. Using metaphors as the first tool, to describe what the possible outcome may result. With these, the tacit knowledge of everyone will try to be shown in different ways, everyone giving part of their knowledge to accomplish real and explicit ideas. The purpose of metaphor is to link ideas and images that at first may sound crazy. Secondly, the analogy. As metaphor is not...
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...time. Congestion control deals with the resource allocation and traffic management mechanisms that avoid or recover from conditions causing congestive situations. (McDysan, Spohn (1999). The methods for congestion control in frame relay involve congestion management and avoidance. Congestion management attempts to make sure the network never experiences congestion. One method of management attempts to avoid congestion entirely. This involves network designers allocating proper resource allocation which may include changes to: * Physical trunk capacity * Virtual Path Connection (VPC) Bandwidth * Allocated Buffer Space The way in which a network allocates resources may be a balance between economic implementation cost and the degree of guaranteed Quality of Server (QoS). Congestion avoidance attempts to avoid severe congestion while at the...
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...(00:00:0c:9f:f0:00) .... ..0. .... .... .... .... = LG bit: Globally unique address (factory default) .... ...0 .... .... .... .... = IG bit: Individual address (unicast) Source: IntelCor_09:b8:11 (f8:16:54:09:b8:11) Address: IntelCor_09:b8:11 (f8:16:54:09:b8:11) .... ..0. .... .... .... .... = LG bit: Globally unique address (factory default) .... ...0 .... .... .... .... = IG bit: Individual address (unicast) Type: IP (0x0800) Internet Protocol Version 4, Src: 10.162.150.183 (10.162.150.183), Dst: 117.85.200.97 (117.85.200 .97) Version: 4 Header Length: 20 bytes Differentiated Services Field: 0x00 (DSCP 0x00: Default; ECN: 0x00: Not-ECT (Not ECN-Capable Transport)) 0000 00.. = Differentiated Services Codepoint: Default (0x00) .... ..00 = Explicit Congestion Notification: Not-ECT (Not...
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...efficiently Make more effective use of time in every situation Restrict social network growth Create smaller social networks Instructor Explanation: Page 141-142 2. Question : (TCOs 2 & 3) Typically the creation of knowledge assets has been linked to: Student Answer: High upfront costs and subsequent high variable costs High fixed costs and high variable costs High upfront costs and low variable costs Low upfront costs and high variable costs Instructor Explanation: Page 144 3. Question : (TCOs 2 & 3) John Steele was asked to take over a project after the entire team left his organization. The term that describes his ability to reconstruct what the team had accomplished through reading emails exchanged by the previous team's members can be considered: Student Answer: Inefficient use of information management Using tacit knowledge Usage of project knowledge Using explicit knowledge Instructor Explanation: Page 144 4. Question : (TCOs 2 & 3) When intellectual property is being managed, this can include all but: Student Answer: Converting explicit knowledge to tacit knowledge Copyrights and trademarks Patents Contracts with confidentiality and noncompete clauses Instructor Explanation: Page 147 5. Question : (TCOs 2 & 3) It can be said that all but the following are associated with dynamic capabilities: Student Answer:...
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