Nucor Steel created a social ecology which created a knowledge spiral within the company. By creating an environment in which employees are encouraged to learn and share knowledge, the socialization of knowledge occurs. During socialization, Nucor employees are able to pass tacit knowledge along to each other. The combination and externalization of knowledge is encouraged in Nucor Steel since the employees are able to receive bonuses based on discoveries they make. Employees are taught that they are accountable for their decisions, but that mistakes are an expected part of the learning process. To reap the benefits of the pay incentives, employees must have a way to document and share their knowledge. Nucor Steel not only uses IT to help transmit the documented knowledge, but also takes advantage of face-to-face communication for knowledge that is difficult to document.
Nucor employees are empowered with the ability to thoroughly learn the ins and outs of the steal industry. Because they are able to internalize the information they are presented with, they are able to make better decisions when it comes to engineering technologies.
Because the knowledge created at Nucor Steel is retained, the company is able to move through a knowledge spiral into a deeper and deeper understanding of all that affects the steel industry. While other steel companies may make discoveries, not having a process in place to share these discoveries keeps them at the top or shallow part of the spiral; constantly acquiring the same knowledge.
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