MGMT630 Knowledge Management Assignment Solution Spring 2013

Knowledge generation and important organizational capital:
FM 85 is a well known radio channel of the locality, which had been launched 3 years back. Within the first
three years of its operations it has developed a brand among the competing channels. The strategic leaders
consider that the Radio Jockeys-RJs (hosts of different radio shows) who are well educated, informed and
admirable are their major contributor to their success. Uptill now some of RJs have developed a personal
association and bonding with the regular callers. And this personal association has given a major strength to
the FM in terms of strong listenership and a desirable word of mouth. Customers show their interest in
different programs through the calls they make to the channel and this increasing listenership has attracted
different sponsors for the channel. The radio jockeys are also satisfied with the facilities provided to them;
like the quality sound systems, microphones, uninterrupted supply of electricity & internet and the highly
furnished & equipped rooms. All these factors are basically creating a competitive edge for the channel.
Considering this scenario respond to the following questions.

Are such FM channels contributing in the knowledge generation at massive level? 8 marks

In the given detail differentiate the Human capital, Customer capital and Structural capital of the FM channel.12 marks- 4 marks each

Human Capital: The combined knowledge, skill, innovativeness, and ability of theorganisation’s individuals to meet the tasks at hand, including values, culture and philosophy.This includes, wisdom, expertise, intuition, and the ability of individuals to realizeorganisational tasks and goals. Human capital is the property of individuals, it cannot beowned by the organization.

Structural Capital: Structural capital signifies the knowledge assets that remain in thecompany when it doesn’t take into consideration human capital that is the property ofindividual members. It includes organizational capital and customer capital. Unlike humancapital, structural capital can be owned by the organisation and can be traded. Structural Capital = Customer Capital + Organizational Capital

Customer Capital: The customer capital represents the value embedded in the relationship ofthe firm with its customers. Organizational Capital: Organisational capabilities in the form of hardware, software,databases, organizational structures, patents, trademarks, and everything else oforganisation’s capabilities that support those individuals’ productivity through sharing andtransmission of knowledge. Organizational capital consists of two components: processcapital and, renewal and development capital.

Organizational Capital = Process Capital + Renewal & Development Capita

lProcess Capital: Organisational processes, activities, and related infrastructure for creation,sharing, transmission and dissemination of knowledge for contributing to individualknowledge workers productivity. Renewal and Development Capital: This component of intellectual capital reflects theorganisation’s capabilities and actual investments for future growth such as research anddevelopment, patents, trademarks, and start-up companies that may be considered asdeterminants of national competence in future markets