Behavioral economics

write how behavioral economics can improve decision-making

The contemporary business environment mainly experiences a shift in its management from the previous order of predictability, including the irregular incremental and the linear change towards the new command of rapid, drastic and continuous change (Armstrong & Greene, 2007). Such organizations who will fail to recognize these facts and act upon them in the best way possible will probably not survive. Organizations, especially those that are multicultural, need to employ the knowledge management strategies in their management maximum for better outcome. In this section, the author is aiming to give a background knowledge for the reader that will cover the dissertation’s fundamental knowledge aspects in order provide a background to this study, whose purpose is to examine strategic knowledge management in Hospitals in the Kingdom of Saudi Arabia.

Knowledge Management

The dynamic nature of the economy and the intense competition in the markets requires an organization to work towards attaining a competitive advantage to survive (Fahey & Burbidge, 2008). This advantage can only be achieved through maximum production and provision of quality services to the consumers (Greiner, Böhmann & Krcmar, 2007). To achieve this, various organizations focus on obtaining maximum contributions from their employees in the form of skills and knowledge they provide when carrying out organizational tasks (Greiner et al., 2007). Intellectual contributions by the employees in any organizational activities have been found to be more effective than the physical contributions (Hwang, 2003; Jasimuddin, 2008). An organization should therefore focus on management of the employees’ intelligence to ensure success. Knowledge management is an approach used by organizations to achieve their objectives by organizing and analyzing knowledge available either from the employees or from the management with proper management of resources (Jasimuddin, 2008; Hwang, 2003). It focuses on the acquisition, creation or sharing of knowledge within and without the organization to obtain maximum value of the available knowledge. Moreover, knowledge management also entails the analysis of the technological and cultural factors that may affect or support one’s intelligence (Greiner et al., 2007).