“Need to Know” – Organizational Knowledge and Management Perspective

Abstract

The following essay argues for a new approach to knowledge management – “need to know”. The main tenets of this paper are centered on two issues. First we contend the use of the phrase “organizational knowledge” is inappropriate for its intended purpose and suggest a specific meaning based on semiotic theory and a resource-based view of organizations. We argue that only a small portion of what is commonly considered to be organizational knowledge actually meets the definition of being a resource that can sustain competitive advantages. Hence, this small portion is what needs to be known and should get the attention of management efforts. Second, using this prescribed frame of “organizational knowledge” we employ transaction cost economics and principal-agent theory to elaborate on the need for the control, protection, and constant monitoring of the knowledge based on a centralized management scheme. It is our contention that to preserve and ensure the effective and efficient deployment of the organizational knowledge, we need to ascribe to the ideology of many defense organizations and provide it on a need to know basis.