Taking into consideration the current conditions, in which "information is often assimilated with power" the major interest for most organizations stands in collecting the necessary knowledge at a high qualitative level and using it with maximum efficiency, through its materialization into adequate managerial conducts, actions and decisions. Together with the assurance of the material, human resources, both international and financial, the performing organizations are more and more preoccupied by the production, transmitting, usage, depositing and protection of knowledge, especially of the strategic ones, essential for the companies' development. The information became more and more a resource, a major asset, a main product and at the same time a strategic advantage for organizations, fact that has a significant influence over the content and the way of manifestation of the management, imposing with acuteness the promotion of the management based on knowledge.management based on knowledge, information, culture of knowledge, a learning organization

Rosca Constantin

Rosca Doina

Sirbu Mirela

English

Research Papers in Economics

582 
THE NECESSITY TO PROMOVION THE MANAGEMENT BASED 
ON KNOWLEDGE 
Sîrbu Mirela 
University of Craiova, Faculty of Economical Sciences, Craiova, str. Elena Farago, bl. 173 B, sc. 1, ap. 
20,tel. 0723271164, e-mail: mirsirbu@yahoo.com,  
Ro￿ca Doina 
University of Craiova, Faculty of Horticulture, Craiova, str. Constantin Lecca, nr. 41,tel. 0721632019,  
e-mail: rosca2na@yahoo.com 
Ro￿ca Constantin 
University of Craiova, Faculty of Economical Sciences, Craiova, str. Nicolae Titulescu, bl. H3, ap. 8,tel. 
0723809275, e-mail: constantin_rosca@yahoo.com 
 
Abstract:Taking into consideration the current conditions, in which “information is often assimilated with 
power” the major interest for most organizations stands in collecting the necessary knowledge at a high 
qualitative  level  and  using  it  with  maximum  efficiency,  through  its  materialization  into  adequate 
managerial  conducts,  actions  and  decisions.  Together  with  the  assurance  of  the  material,  human 
resources, both international and financial, the performing organizations are more and more preoccupied 
by the production, transmitting, usage, depositing and protection of knowledge, especially of the strategic 
ones, essential for the companies’ development. The information became more and more a resource, a 
major asset, a main product and at the same time a strategic advantage for organizations, fact that has a 
significant influence over the content and the way of manifestation of the management, imposing with 
acuteness the promotion of the management based on knowledge. 
        
Key-words:management based on knowledge, information, culture of knowledge, a learning organization.  
 
From  Michael  Lester’s  point  of  view,  the  management  based  upon  knowledge  is  a  key  process,  that 
through the capitalization of changes determined by both digital technologies and internet, contributes to 
the obtaining of economic performance in the countries, companies and the involved industrial branches, 
thus determining an increase of the life standard of the population. This approach shows the vision of the 
IT staff and gives a great importance to knowledge and innovation, the analysis of the managerial problems 
being tightly connected to the top information technologies.  
From the management specialists’ point of view, one can notice the remarks belonging to Christina Rollo 
and Thomas Clarke that state the fact that management based upon knowledge is not a goal in itself but 
derives  from  the  actual  interests  of  the  organizations  in  developing  the  field  of  production  and  the 
knowledge flow with the purpose of adding economic value.     
 The  functionality  and  efficiency  of  management  based  on  knowledge  derive  from  its  characteristics, 
namely: acting like an organization that is willing to learn; creating a tradition in knowledge; using data 
bases that include knowledge; mapping knowledge; dividing knowledge between employees and the other 
stakeholders; developing communication based on knowledge; leadership manifestation; using team work; 
learning from negative and positive practice. 
In order to carry out some competitive activities it is necessary that the companies should maintain and 
develop continuously their knowledge portfolio that is they should be transformed into organizations that 
are collecting information all the time. The success of this step is conditioned by the fact that all the 
employees should become aware of the necessity of transforming the knowledge into the main resource of 
the company, as an intensive involvement of the managers within this process. Knowledge accumulation 
and the efficient usage of these are achieved either through the process of individual learning, at the level 
of each employee, or through the organizational teaching, achieved through a great scale of  methods:  
allotting consultancy and  specialty assistance, special programs of perfecting outside  the organization, 
training courses inside the organization, etc.  583 
The organization involved in the process of learning is characterized mainly through: 
•  supports the process of leaning, research and communication with the purpose of achieving 
the organizational objectives; 
•  provides all the time opportunities of learning for all its components, because the organization 
that is involved in this process of learning means first of all employees that are studying; 
•  assures the mixture between individual and organizational performance; 
•  considers the generated tension as a source of energy and renaissance; 
•  the  process  of  knowledge  and  taking  into  consideration  the  factors  that  influence  the 
organizational  learning:  the  environment,  the  organizational  culture  and  structure,  the 
company’s strategy, the employees, etc. 
 Within the successful implementation of the management based on knowledge, a decisive role has 
the organizational culture that according to Adam Flor, can represent “either the greatest enemy or the 
greatest ally”. That’s why it is necessary the “construction of a knowledge culture” whose definitive 
elements should be as it follows: 
•  is receptive at new things, at the innovation within all the activities of the organization; 
•  situates in the first line people and knowledge and not material things or elements; 
•  is focused on the individual and organizational learning and the intensive participation of the 
employees at taking decisions; 
•  is motivating in taking risks, actions and performance and tolerant in front of failures and 
errors, especially within the innovation process; 
•  lays  the  accent  on  the  development  of  agreement,  collaboration  and  cooperation  among 
specialists based on knowledge; 
•  is open for both internal and external stakeholders, the relations among these being based on 
mutual respect and correctness. 
As in the current context knowledge exerts a significant impact upon the performance and functionality of 
the  organizations,  it  is  necessary  the  usage  of  data bases  that  include  knowledge. These  include  the 
assembly of knowledge within a company, structured according to the way they are obtained, the form of 
presentation and the domains of usage. As a rule, the knowledge used within a company is divided into two 
main categories, namely: external and internal, which in their turn are individual and organizational. The 
structure  of  knowledge  is  necessary  because  the  costs  of  identification,  getting,  integration,  usage, 
protection and capitalization are sensitively different.  
Within the companies that  use an impressive volume of  complex and diverse knowledge, that have a 
crucial impact upon the obtained performance, there is often used the mapping of knowledge. This stands 
for a process that has as a goal the identification of the main resources of the existing knowledge and their 
usage among the stakeholders of the organization.  
The success of the promotion of management based upon knowledge is conditioned by the induction to the 
staff of the organization of the conception and conducts according to which the parting and usage of 
knowledge  between  employees  and  the  other  stakeholders  is  a  normal  and  efficient  approach  both 
individually and organizationally. For this thing it is necessary the existence of a strong material and moral 
motivation, that should make the knowledge possessors share others as well and help them to use it. They 
should be convinced that after this process, through feed-back and other generated connections there can be 
obtained the amplification of the initial knowledge value, simultaneously with the increase of prestige and 
the development of the initial possessors of knowledge. This process is influenced by the existence of an 
organizational culture that promotes the sharing of knowledge among employees.  
Altogether with the increase of dynamism and the complexity of the socio-economic phenomena, with the 
increasing tendency of change in all the domains of activity, it is more and more obvious the fact that the 
obtained results are influenced directly by quantity, quality and opportunity of the available information, 
provided through communication. The increase of complexity of the managerial process, the appearance 
and  the  usage  of  some  perfected  means  of  communication  and  decision  make  that  the  technology  of 
information be viewed as an indispensable instrument for management, because as Robert Heller stated, 584 
the manager should be “excellently informed”. The intensification of the organizations’ interests for the 
promotion of management based on knowledge determines the development of the communication based 
on knowledge, because one of the “keys” of the efficiency in management is the achievement of good 
communication at all hierarchical levels.   
In order to put into value the multiple features of the management based on knowledge it is necessary the 
existence  of  a  strong  leadership,  more  intensive  and  stronger  than  the  one  exerted  within  classic 
organizations. This derives from its accent laid upon knowledge and innovation and at the same time from 
its  role  of  putting  into  value  the  silent  knowledge  of  the  stakeholders.  The  main  parameters  of  the 
leadership of the organizations and of the management based upon knowledge are: 
•  directing the leadership towards a daring vision, that is simultaneously dynamic, creative and 
communicational; 
•  focusing on ideas, on knowledge value and the promotion of the “new”; 
•  paying an increased attention to the harmonization of the roles, responsibilities, rewards and 
the estimation of the other stakeholders of the organization; 
•  using on a large scale the “populist” communication at the level of the whole organization 
and at all hierarchical levels; 
•  possessing a great capacity of work and a permanent curiosity every time for everything that 
is around; 
•  the leader’s possession of knowledge, multiple abilities and capacities, fact that will permit 
him/her  to  encourage  diversity,  creativity  and  initiative  among  the  members  of  the 
organization. 
Another important characteristic of the management based on knowledge is the usage of the work in team. 
Team  activity  favors  the  dynamic  effects  that  keep  alive  the  continuous  development,  stimulates  the 
individual  qualities  favorable  for  cooperation  and  interdependence  and  the  active  communication  is 
favorable  as  far  as  some  pre-established  targets  are  settled,  strengthening  the  cohesion  inside  the 
organization.  
From the analysis of the functionality and performance of the organizations based on knowledge there 
came out several pragmatic conclusions, some major errors in putting into application the new type of 
management as well as some key aspects in perfecting and increasing the managerial efficiency. These 
elements with a general character that appeared from the experience of the organizations that promote 
management based upon knowledge represent extremely useful reference points for the managers of the 
organizations, for consultants, trainers and examiners in specific domains. 
The studies made by specialists in domain has shown a series of errors within the implementation of the 
management based upon knowledge namely: focusing with priority on the stocks of knowledge in the 
disadvantage of the flows of knowledge; the consideration that human beings are not rational all the time 
and from here the consequence reflected in neglecting the process of thinking; replacing the human nature 
contacts  and  the  direct  communication  with  contacts  and  communication  based  on  technologies;  the 
approach  stressing  the  systematic  leading  of  the  place  of  work  just  as  simple  as  a  car  is  driven;  the 
separation of knowledge from its usage and asking for measurements and direct estimations of these, etc. 
In a similar way, the major aspects with a determinant role in the efficiency of the management based on 
knowledge are: identifying the knowledge and information that people need and providing it on time; 
integrating the creation and usage of knowledge within the economic process both inside and outside the 
organization; creating communities based on knowledge within the key area of the economic process; 
connecting  people  to  the  process  of  treating  information  with  the  purpose  of  achieving  economic 
performance, etc. 
All  the  characteristics  presented  above  state  the  increased  complexity  of  the  management  based  on 
knowledge and the decisive role of the human factor in creating, implementing and exerting it efficiently. 
Through implied logistics, used specialists and permanent process of actualization, development, usage and 
protection of knowledge it attracts considerable costs, being a very expansive management. Although not 
practicing the management based upon knowledge is even more expansive having negative effects upon 
the obtained results, on a long period of time determining even the collapse of the organization.  585 
The decisive role held by knowledge in all domains of economic activity through the impact exerted upon 
the functionality and performance of the organization, asks for the promotion of the management based 
upon  knowledge.  The  characteristics  of  the  management  based  upon  knowledge  show  its  increased 
complexity  and  the  significant  role  of  the  human  factor  in  creating,  implementing  and  exerting  it 
efficiently.  
Bibliography: 
1.  Burdu￿, E. „Treatice of management”, The Economic Publishing House, Bucharest, 2005; 
2.  Flor, A., „Competitive Strategies în European Banking”, Claredon Press, Oxford, 1994; 
3.  Nicolescu, O., Nicolescu, L., „Economy, Organization and Management based upon Knowledge”, 
The Economic Publishing House, Bucharest, 2005; 
4.  Nicolescu,  O  (coord.),  „Modern  Approaches  within  Management  and  the  Organization’s 
Economy”, vol. I, The Economic Publishing House, Bucharest, 2003 
 

THE NECESSITY TO PROMOVION THE MANAGEMENT BASED ON KNOWLEDGE

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THE NECESSITY TO PROMOVION THE MANAGEMENT BASED ON KNOWLEDGE

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