However, March and Simon take the approach that there is more involved here than just the economic motivators. They believe that the members of a business can be restructured in growth due to their own individual cognitive abilities. As a result it can hinder their efforts to successfully be able to solve a variety of different problems.
So how are these limitations dealt with? It can be done by breaking down various types of tasks into smaller parts. That way there are those with the right skills assigned to different areas of it instead of all of it. This is the same type of concept that is used for assembly line work. Each employee has the right knowledge for their portion of the work. They don’t get the information to help them with something others are responsible for. This type of sharing is often referred to as a means to and end.
This type of organized structure within a business helps to deal with the issue of limited cognitive capacity. It doesn’t give employees much room to be creative though or to offer new information. In fact, it can create a huge barrier between employees as well as getting them to take a sound interest in the success of the business. Their job can become too predictable and too repetitive for them take it seriously.
There are plenty if informal types of structure that can exist within a business. This type of communication often allows employees to share as they choose. This helps them to overcome some of the pitfalls involved with a more structured type of information distribution. Many experts including Cohen and Leviathan believe that the more diverse your employees are the more expertise you can get from them in the way of knowledge.
As a result of this type of diversity, a business can see remarkable additions coming their way. The fact that the business will get better from the inside out means that you have employees that value their role within that organization. They are more likely to continue coming to work and to use the knowledge that is derived in positive ways.
What is interesting is that the formal structure of many organizations can end up getting individuals to keep their knowledge to themselves. They don’t feel obligated or encouraged to share it with others. They end up relying upon the resources that are offered out there by the business in order to get their work done. This can end up being a challenging force that the business faces without even realizing it!
From this point of view, the organization has put up walls and barriers. They may be invisible but they are in place nonetheless. They aren’t allowing the knowledge that employees have to really benefit their business. Instead of relying on knowledge as a valuable resource they end up focusing on the processing of how things take shape within their business.
Having groups of small networks in place that develop into good relationships will help each of the groups see that that need the help and support of the others. There is plenty of research out there to suggest that the economic behaviors of a business are directly tied into the different social relationships that happen within it.
As you can see from all of this information, knowledge can be either from a single person or from a group of people that bring their expertise to the group collectively. Developing these types of knowledge networks allows those with a common need or a common skill to bond together. Even so, you have to remember that each person will have different cognitive abilities. As a result, how they perceive the situation is going to become very significant to the outcome that they take.
Let’s take a look at the Transactive Memory Systems that was introduced by Wegner in 1987. This takes into consideration the idea of distributed knowledge and how it is distributed within a company. This type of research is used to help predict the types of behavior that people within a given knowledge network will bring to the overall information structure.
The goal is to find out how each is going to perceive the overall information and knowledge. The more on target this ends up to be, they better the outcomes in regards to the overall decisions for the group is going to end up being. A Transactive Memory System is believed to actually improve the perform of a given group when they are working together on various tasks.
It is also believed this type of training is going to encourage each of the members of the group to articulate their thoughts rather than holding them back. This is why codified knowledge is preferred in regards to such a method versus tacit knowledge. However, this can also be a limiting factor in place when it comes to the approach taken for research. On the other hand though this type of approach does make the priority about the individuals involved instead of just about finding a way to manage this type of asset within a business.