Human Capital

HumanCapitalHow it is related totechnologyKnowledge Center

4. Human Capital........................................................................................................................................... 2 4.1 Technology and Generation Gaps....................................................................................................... 2 4.1.1 Older Workers.............................................................................................................................. 3 4.1.1.1 Older workers can be put at a competitive disadvantage by technology. ........................... 3 4.1.1.2 Older workers may feel anxious when they are discomfort with technology...................... 4 4.1.1.3 Authority is inverted by the bottom-up content. ................................................................. 4 4.1.2 Younger Workers ......................................................................................................................... 4 4.1.2.1 Millennial characteristics ...................................................................................................... 5 4.1.2.2 Millennial work style............................................................................................................. 6 4.2 The Talent and the Transfer of Knowledge......................................................................................... 6 4.2.1 Several Ways to Transfer the Knowledge .................................................................................... 7 4.2.1.1 Talk is also real work in a knowledge-driven economy. ....................................................... 7 4.2.1.2 Knowledge fairs and open forums ........................................................................................ 7 4.2.1.3 Formal ways to transfer knowledge ..................................................................................... 7 4.2.2 Knowledge Transfer Attributes.................................................................................................... 8 4.2.2.1 Company culture and knowledge transfer ........................................................................... 8 4.2.2.2 Transfer means transmission and absorption. ..................................................................... 9 4.2.2.3 Velocity and viscosity............................................................................................................ 9 4.3 Implication on Human Resources (HRs).............................................................................................. 9 4.3.1 Retention of Knowledge .............................................................................................................. 9 4.3.2 Technology and HRs................................................................................................................... 12 4.4 Generation of the Knowledge........................................................................................................... 13 4.4.1 Conversion of Knowledge .......................................................................................................... 13 4.4.2 Generation of Knowledge .......................................................................................................... 13 4.4.2.1 Acquisition .......................................................................................................................... 13 4.4.2.2 Research and Development................................................................................................ 14 4.4.2.3 Fusion.................................................................................................................................. 14 4.4.2.4 Networks............................................................................................................................. 15 4.5 Final Thoughts................................................................................................................................... 15

4. Human Capital4.1 Technology and Generation GapsGeneration gap is defined as “a difference of attitudes between people of different generations, leading toa lack of understanding”1. Generally the generation gap refers to the time during which the youngergeneration and older generation grow up. Before the Industrial Revolution, there was just little change inthe society and the gap between the younger generation and older generation was not very obvious.However, with the development of technology, the society has been evolving so fast that even few years’difference in ages will create a huge generation gap.Younger workers, who were born in the digital age, are used to utilizing digital solutions to solve theproblems. Older workers, who take over the higher positions of the companies, are sometimes more usedto traditional practices, which will somehow frustrate the younger workers.Technological generation gap is largely unspoken and unacknowledged. With the presence of the gap, theexperience of the older workers and the efficiency of the younger workers cannot be blended together thusthe performance of the organization will be down-graded.In this thesis, we generally regard the boomers and the elder part of Generation X to be the older workersin the organization, who are not born in the digital age and currently hold the authority of eachorganization. The younger part of Generation X and Millennial are the younger workers who have accessto the technologies at a young age and currently hold the junior positions in the organizations. Generational AttributesIssues Boomer Generation X Millennial  Instrument for  Instrument for saving  Default way to think improving personal time and effort and work productivity  Interactive way to  Instrument for  Transactional source connect with people building, sustaining, of information and information and participating inWhat information and  Something new to networks  The inevitable nextcommunication learn  Something new to figure out, master,technology represents  Indicator for status and find the cool thing limitations of  The way any  Manifestation of organizational  Gadget to enhance organization approach to solving lifestyle or work manages operations a business problem experience in the modern world1 Oxford Dictionary.

 Too difficult and  Imposes unwelcome  Limits creativity and complicated to learn overhead of process collaboration and use with no apparent because of usage  Reduces personal value restrictions or value by socializing missing features private knowledge and relationships  Gives managementConcerns about too much control and  Is not as vivid ortechnology in the visibility, indicating responsive as workplace  Reduces perceived distrust of worker technology they are status by reducing  Raises privacy used to autonomy and concerns discretion  Specialized tool takes time to learn  Doesn’t work  Adds a new and properly or isn’t and has no unfamiliar criterion relevance to future for success implemented right career pathRob Salkowitz (2007). Generation Blend: Managing Across the Technology Age Gap. John Wiley & Sons, Inc.4.1.1 Older WorkersStudies made by Society for Industrial and Organizational Psychology (SIOP) showed that the olderworkers they observed were more willing to change than their younger peers. On the contrary to thestereotype of the older workers, they are actually avid and enthusiastic to learn new skills and use newtechnology to have a better life. 2 Then why can we still observe the technological age gap in the workingplace? The answer lies in what the technology does to change the organization.The GenX and Millennials, who were the developers of most of the technologies we use in the workingplace, are unmindful of the core values they change, of the older workers. It is not how technology worksthat matters, but the changes that the older workers must integrate into their practices for success,matters. The older workers, who are generally the most senior and knowledgeable in the companies,believe either consciously or unconsciously that the technology impact their ability to add value, challengelong-held practices and effect the way they are seen by their colleagues.4.1.1.1 Older workers can be put at a competitive disadvantage by technology.Older worker are more used to the command-and-control organizational hierarchy which they climbedtheir career ladder with. Power is not only from the control of resources, but also from the ability toconceal its exercise in the name of Omni-competence and common good. Thus, any display of weaknesscan be regarded as a challenge to authority. Older workers, who are “technology immigrates”, recognizethat it is a disadvantage of them in learning new technology compared to younger peers. There will alwaysbe great incentive for the old workers to hide their discomfort, fearing their might-be inability to adapt tonew technology be exposed to the younger workers.The fear just makes the situation worse. Older workers can be reluctant to take special training programsor reach out to younger workers for help.2 Society for Industrial and Organizational Psychology (March 10, 2005). Study Shows Older Workers More Open to Change.Society for Industrial and Organizational Psychology.

4.1.1.2 Older workers may feel anxious when they are discomfort with technology.Improper help, such as assistance without explanation or expert-level of operation, may make the olderworkers anxious about their ability to master the new technology. Thus they rely on the younger workersto use the technology which just leave the older workers ill-prepared for the later changes and make thelearning curve much steeper. Together with the stereotype that the older workers are not “designed” touse technology, the downward spiral can significantly decrease the old workers’ productive capacity andmorale.4.1.1.3 Authority is inverted by the bottom-up content.One great thing the internet does to the world is to make the world more flat, no matter it isgeographically or virtually, which just challenges some of the core values of the older workers when theywitness the diminish of the organizational hierarchy.One part of authority is the master of the information. Older workers grow up in a social environmentwhere the information flows from a centrally controlled production and distribution center. The personwho has the most information enjoys the authority and stands at the higher level of the organizationalhierarchy. It is also easier for the authorities to establish the consistent ideologies and keep loyalties.However, the decentralized information flow just destroys this model. Old workers see their certaintiesbeing challenged by the bottom-up information flow and some of them start to withhold participation ifthey feel a project threatens their authority.Technologies are not only just innovative for the dissemination of information, but also create a wholenew way for us to treat the reality. The organizational management is shifting from a command-and-control management environment where the power is attributed to the privileged access to informationand relationships, to a bottom-up, transparent and self-managed information space.The anarchy of grassroots content creation can even lead the older workers to misjudge the technology orbelieve that the technology creates some threatening perspectives.4.1.2 Younger WorkersGeneration X and Millennials, especially the Millennials, are regarded as the “digital natives”, whoseworking styles are so different from the old workers. Thus their productivity and motivation will bedepended on the adaption ability of their employers, both culturally and technologically. Technologies arenot only easier ways for them to accomplish work, but also they use the technologies to fill gaps inknowledge and experience.Younger workers are tech-savvy. They are born with the ability to use the internet, collaborationenvironment, media and mobile devices to achieve the integration between work and life.Studies made by the Pew Research Center for People and the Press revealed that:  86% of Millennials use internet occasionally (compared with 91% of Generation X, 76% of Boomers and 46% of Seniors)  More than 50% of Millennials use real-time communications technology (about double the rate of Generation X, 4 times of Boomers and over 10 times of Seniors)3Surveys on college students carried out by Reynol Junco and Jeanna Mastrodicasa also showed that in2006:  75.5% use instant messaging program, among which 15% logged on 24 hours a day, 7 days a week3 Pew Center for People and the Press (January 9, 2007). How Young People View Their Lives, Futures and Politics: A Portrait of“Generation Next”. The Pew Research Center.

 91.9% multitask  27.9% have blogs while only 7% of all adults  Near 50% have downloaded music over peer-to-peer networks and 20.3% have downloaded movies  68.5% have Facebook account and log in twice a day4Mark Prensky, in his famous essay “Digital Natives, Digital Immigrants”, says: “Digital Natives are usedto receiving information really fast. They like to parallel process and multitask. They prefer theirgraphics before their text rather than the opposite. They prefer random access (like hypertext). Theyfunction best when networked. They thrive on instant gratification and frequent rewards. They prefergames to “serious” work.”5 He indicated in the essay that the digital natives have experienced a profoundand fundamental change in their thinking patterns.Organizations that are used to traditional hierarchy and ways of communications, will suffer from thedisruptive changed brought by the younger workers. However, it is inevitable: older workers will retireand their position will be filled up by younger workers.Also, once the younger workers feel the technology is inadequate, they may regard this as an indicator of acompany culture that does not offer them with the opportunities they are searching for.4.1.2.1 Millennial characteristics Millennial Culture and Technology ImplicationsMillennial Characteristic Culture Implication Technology ImplicationInquisitive Greater transparency, greater Systems that provide visible Social willingness by management to metrics and relationships, explain decisions reputation tracking, etc. Flatter, more networked Social networks and contact organization management toolsAmbitious/ Impatient Immediate feedback Real-time communicationGlobal Orientation Commitment to diversity Open communication and information channelsRespectful of Authority Mentoring programs Social networks and expertise location systemsRob Salkowitz (2007). Generation Blend: Managing Across the Technology Age Gap. John Wiley & Sons, Inc..The development of technology brings the transparency to the organizations. Real-time performance datacan tell the younger workers how well they perform to organizational goals. Reputation system can giveyounger workers the immediate feedback they want. Really Simple Syndication (RSS) subscription willoffer younger workers timely information of what they are interested in.Younger workers are taught to collaborate during all their school life and thus they will expectcollaboration in the working place. With the technologies for self-expression, content-sharing and instantmessages, their teamwork is facilitated. If the technology in the company cannot satisfy their need, theywill leave the current jobs to find a more suitable position for their personal goals or life plan.4 Junco, Reynol, and Jeanna Mastrodicasa (2007). Connecting to the net. Generation. NASPA. P. 65–82.5 Prensky, Marc (2001). “Digital Natives, Digital Immigrants.” Lincoln: NCB University Press, Vol. 9, No. 5.

Younger workers lives are also more expansive than the old workers. Through internet and transportationequipment, younger workers establish relationships all around the world thus a lot of them are looking forglobal recruitment opportunities. They prefer diversity and more likely to consider the issues such asenvironmental policy and corporate citizenship.Younger workers do not like the hierarchy, but it doesn’t mean they do not respect the authority. Studiesmade by Emory University showed that 70% of younger workers agreed with the statement that“Authority figures should set and enforce rules” and 60% of them agreed with the statement “I trustauthority figures to act in my best interest.”6For the older worker, balancing work and life means to take care of kids or parents while for youngerworkers, who don’t have aging parents and kids yet, it means spend time in personal relationships orpursue interests outside of work. The technologies, like remote access and high-speed network, not onlyenable both workers to do work from a life setting, but also enable them to enjoy in life from a workingsetting. Chatting while working may seems to be unforgivable in the older workers’ eyes while for youngerworkers, they believe it is not a big deal as long as they finish what they should do in work.4.1.2.2 Millennial work style Implications of Millennial Work stylesMillennial Work styles Culture Implication Technology ImplicationConnected Greater emphasis on teamwork Communication and collaboration systems, portals, workspaces, teamware, and toolsMultitasking More dynamic, less structured User environments that allow for environment shifting contextVisual and Interactive Greater emphasis on visual Real-time visualization and communication rather than text- modeling capabilities based contentRob Salkowitz (2007). Generation Blend: Managing Across the Technology Age Gap. John Wiley & Sons, Inc.Younger workers are team players. This can be both a good aspect and a bad one. One by-product of thisis that some younger workers become uncomfortable working alone or working on self-directedassignments. Averseness to individual risk taking and fear of personal accountability can also be theirpotential problems. On the other side, team players are generous with their resources like informationand connections, which is beneficial in the transfer of knowledge.With the existence of digital gap, how the knowledge can be transferred properly and efficiently within theorganization?4.2 The Talent and the Transfer of KnowledgeWhat is the transfer of knowledge? It happens when new employee asks the old one how to use theinternal email system and the old one guides him. This is an example of transfer of knowledge in aworking situation and no matter the boss manages it or not, it happens. Actually all that the managersneed to do is to make the transfer of knowledge effective.How to transfer the knowledge effectively? Hiring smart people and let them share ideas. Companiesalways try to find the brilliant employees to work for them. The only part we need to pay attrition isfinding effective ways for the smart employees to talk and listen to each other.6 Hershatter, Andrea, and Molly Epstein (2006). Is Your Firm Ready for the Millennials?.

Spontaneous, unstructured knowledge transfer always happen in the random areas like company café oreven in the elevator. Formalizing transfer and developing specific strategies to encourage knowledgeexchange have become essential elements of the knowledge management.4.2.1 Several Ways to Transfer the Knowledge4.2.1.1 Talk is also real work in a knowledge-driven economy.Knowledge transfer often happens in the company café and talk-rooms, though management sometimesbelieve socializing in those places is a waste of time. However, most of those small conversations arefocused on work: the current projects, sharing ideas, giving advices.Despite the industrial-age managers who cannot see the importance, “virtual offices” also threatens thoseconversational talk. Though working from home or at a customer site offer greater employee flexibilityand deeper relationship with customers, it also lowers the frequency of informal knowledge transfer.Those companies which adapt the virtual office should find out ways to make up for the lost interactionand train employees on effective knowledge transfer with computer and telephones.When you have a specific problem to solve, you will not count on talking to random people who happen togo to the café and if you have something important to share, you will also not count on those unstructuredtalk to spread the word. Those talks in the café are more for the mind that have potential to generate newideas in an unusual way.Some of Japanese companies introduce the “talk room”, which is a place with snacks and drinks, mildlight and comfortable couch. The manager of those companies wish the existence of the talk room willencourage employees and researchers to sit down and share their thoughts with their personalconversation and generate new ideas. The Japanese managers also spend a lot of time after work together,going to dinner or night clubs. Those activities can build up trust and bring opportunities for criticism,which is very important in the knowledge-sharing mechanism. Unlike the American style which is moredepended on the electronic devices, Japanese companies prefer more face-to-face communications. Bothmethods of transfer knowledge are very good, but they should suit the organizational and national culture.The definition of productivity should also be redefined with the time. Productive casual conversations,periods of reflection and learning can also be part of productivity. Reading a book at work, no matter howdistracting it seems to be, as long as it can increase the productivity of the employee, it can be considered“real” work. Companies which claim to value knowledge but discourage reading and talking on companytime are not really valuing the knowledge.4.2.1.2 Knowledge fairs and open forumsCompanies which really care about transfer of knowledge will create locations and occasions foremployees to interact informally. Unstructured corporate picnics or knowledge fairs allow for spontaneityand bring people together without worried about who should talk to whom, which indeed encourage theexchange of knowledge. New synergies were created with the opportunities to mingle freely.Well-structured knowledge conferences are usually full of speaker, workshops and events. There isgenerally no time for people who attend these conferences to set aside and talk about what they hear andlearn at these conferences. The desire outcome of these conferences sometimes cannot be realized nomatter how excellent the speakers, workshops and events are, because people don’t have time to interactwith each other in those events.4.2.1.3 Formal ways to transfer knowledgeJust as what we said before, those talks in the café are more for the mind that have potential to generatenew ideas in an unusual way and not for the people who have a particular problem to solve. In order to

help those employees who have the particular problems, companies need to consider more formal andintentional ways of sharing knowledge within organizations.The difficulty of transferring and capturing knowledge depends on the kind of knowledge involved.Explicit knowledge can be recorded in documents or databases and transferred with accuracy. Tacitknowledge transfer may need the interaction of both parties of the process: partnership, mentoring or anapprenticeship. In the companies which committed to transferring tacit knowledge, senior staffs are oftenrequired to take part in the mentor programs and pass on knowledge to younger employees.With the development of technology, companies are creating innovative ways to encourage knowledgesharing. Internal information interview network lists employees who are willing to share information;virtual teamwork video conferencing system links people with knowledge to the people who need it; evenCDs are used to record the stories and experience of the senior practitioners before they leave thecompany. The general rule for the transfer of tacit knowledge is that the richer the knowledge is, the moretechnology should be used to enable people to share the knowledge. Especially in large global companies,extensive knowledge transfer cannot happen without the help of technology.4.2.2 Knowledge Transfer Attributes4.2.2.1 Company culture and knowledge transferCompany culture is principal determinants of how successfully knowledge is transferred. However, thereare still company cultures which will impede the transfer of knowledge.Cultures that impede knowledge transfer and solutionsCultures SolutionsLack of trust Build relationships and trust through face-to-face meetingsDifferent cultures, vocabularies, frames of Create common ground through education, reference discussion, publications, teaming, job rotationLack of time and meeting places; narrow idea of Establish times and places for knowledge transfers:productive work fairs, talk rooms, conference reportsStatus and rewards go to knowledge owners Evaluate performance and provide incentives based on sharingLack of absorptive capacity in recipients Educate employees for flexibility; provide time for learning; hire for openness to ideasBelief that knowledge is prerogative of particular Encourage nonhierarchical approach to knowledge; groups, not-invented-here syndrome quality of ideas more important than status of sourceIntolerance for mistakes or need for help Accept and reward creative errors and collaboration; no loss of status from not knowing everythingDavenport, Tomas H. and Prusak, Laurence (1998). Working Knowledge: How Organizations Manage What They Know. HarvardBusiness School Press.Knowledge transfer will easier if participants speak the similar languages, which is referred to the generalconcept of language and also the jargon. People who speak the same “language” and share the sameworking and national culture are usually easier to get each other’s idea.The source of information matters. Younger employees are generally considered not a trust worthy sourceof information and thus the older employees ignore them, even though sometimes they do have importantinformation to share. This kind of bias not only exists among the old workers and young workers, but alsoexists in the title of the employees. People tend to trust the manager more even if he just makes things up

while the common employee uses information from trustworthy source. These cases are very common inthe working environment and they are not always a bad thing. Experience and reputation is a proxy forvalue that we use to evaluate the information since we don’t have time to look at everything. Butsometimes it can be wrong.4.2.2.2 Transfer means transmission and absorption.If there is only access to knowledge, it is called transmission, not transfer. A successful transfer ofknowledge means the access to knowledge is available, and also the party who need the knowledge canunderstand the knowledge and make use of it to create value. However, people do not put the knowledgeto use for various reasons even though they understand and absorb it:  Not respecting or trusting the source  Pride or stubbornness  Lack of time  Lack of opportunity  A fear of taking risks  OthersOur self-esteem is based on the “signature skills”, which defined as the professional abilities a persondistinguish himself from his peers by Dorothy Leonard-Barton in her Wellsprings of Knowledge.7 Thenew knowledge or innovation which may disable the signature skills will receive resistance from the skillholders.4.2.2.3 Velocity and viscosityVelocity means how fast the knowledge is transferred within an organization while viscosity means therichness of the knowledge transferred. Viscosity is highly affected by the method of transfer. Knowledgemanagers are always trying to find the balance between the velocity and viscosity and most knowledgetransfers are results between these two factors. Usually the long-lasted mentorship or apprenticeship willincrease the viscosity but obviously, it is very time consuming which decrease the velocity. Accessingknowledge from internet or databases increases the velocity but usually it has a low viscosity.The transfer of knowledge not only depends on the technology, but also depends on the employees. As thedepartment working with employees, the human resource needs to think about how to retain theknowledge and train the employees to use the technology.4.3 Implication on Human Resources (HRs)4.3.1 Retention of KnowledgeRetention of knowledge has become one of the greatest challenges organizations are facing all over theworld. After spending so many years working at the organization, older workers acquire lifetimeexperience, insights and relationships that can improve the performance of their companies. These kindsof knowledge capital are as valuable as the physical and financial assets, which, once lost, can only beregained with great cost.The risks identified in the Lost Knowledge by David DeLong are:  Ability to innovate decreases7 Dorothy Leonard-Barton (1995). Wellsprings of Knowledge. Boston: Harvard Business School Press.

 Ability to pursue growth strategies weakens  Reduced efficiency undermines low-cost strategy  Losing knowledge can give competitors an advantage  Losing specific knowledge at the wrong time increases vulnerability8The problem with the knowledge management system is that younger workers and old workers treat itdifferently. Younger workers get used to the new technology tools more easily to manage the knowledgewhile the older workers are actually the ones who have the perishable experience and knowledge thatneeds to be managed. The benefits of collaborative knowledge systems – integration, informality,democratized access to communication channels, distributed decision making – seem to be thedisruptions to the traditional patterns of authority which the older workers do not like. One key to keepthe knowledge management system working is to make sure that older knowledge contributors arecomfortable with the new technology.Just as what we talked about before, it is not the new technology itself which creates the digital gapbetween the older workers and younger workers; it is the change of practices, attitudes and values thatmatters. Current trainings and workshops generally focus on how to equip the older workers with thebasic skills to use the new technology. However, they ignore the problems rooted under the technology –the older workers are uncomfortable with the new technology because it challenges their values.Harvard Business Review pointed out, in their publication of December 2014, that role of the ChiefHuman Resources Officer (CHRO) is becoming more and more important like never before. HRs will havea huge impact on the organizational culture and strategies because they have the expertise developingpeople. 9The 6th Annual Digital IQ Survey revealed that 88% of the CEOs surveyed foresee the impact thetechnology will have on their organizations in the near future.10 However, with the result from the 2014PwC Annual Global CEO Survey, only 39% of the CEOs believe their HR is well prepared to support thetransformation brought by the technology.11One of the main responsibilities of HR is to help the C-Suite address the talent and technology shifts. Withthe digital age, HR is not only the voice of the employees but also the advocate for technology. How toproperly mitigate the digital gap within the organizations, how to retain the knowledge and experience ofthe older workers and how to release the power of technology should be the most important issues theHRs are thinking about.  Evaluate the workforce inventory. HRs need to know the demographic change of the company, like who will retire now and in the future and what kind of new employees need to be hired. HRs should identify and retain the critical knowledge that is essential to the organization which will be lost once the employee retires. If needed, HRs will also redesign the jobs needed to smooth the knowledge transfer.  Solve training issues. Older workers need training to get familiar with the new technology. However, the training for the older workers should not be the same as the training for the younger workers. As digital natives, younger workers can master the technology at a very short time which may make the older workers believe that the technology is not designed for them and they are too slow to learn it.8 DeLong, David (2004). Lost Knowledge. New York: Oxford Press. P. 31.9.Harvard Business Review (December 2014). Why Chief Human Resources Officers Make Great CEOs. Harvard Business Review.10 PwC (2014). 6th Annual Digital IQ Survey. PwC.11 PwC (2014). Annual Global CEO Survey. PwC.

 Solve trust and authority issues. Some of the older workers believe the information conveyed by the technology is easily taken by the wrong hands and the bottom-up informational source makes them feel loss of authority. This stops the older workers sharing their knowledge within the organization and developing collaborative content. Explain the benefits of the technology. In order to make the workers take full advantage of the technologies, companies should think about ways to explain the benefits of the technologies. Don’t assume that once the technology and instruction is available, workers will automatically begin to use it. If people cannot see the benefits of adapting the new technologies, they will still take the original proven-working steps to perform their work. Establish technology policies. Younger workers may resist the technology policies which restrict them from accessing some of the website. However, they also understand the risk of confidential IP falling into the wrong hands and the potential financial loss related to internet crime. All they need is some credible guidance from the company. If the organizations value the younger workers, it is worth taking time to talk to them and express the common interest between the organization and employees in adopting practices. Make the technology available to different work styles. Changes in technology require adaptions in personal practices and work styles. When the company decide to introduce a new technology, its workers not only need to know how to use its function to improve efficiency or quality of output, but also how to adapt to it mentally. Align organizational culture and technology strategies. Organizational cultures are vital to the organizations and also it can have an impact on the technology adaption. The trend of technology is irresistible. Even organizations that are conservative and have traditionally resisted rapid change are forced to adapt new connected and collaborative information tools. Technology has gone so deep in life and work that the discussions about technology policy are actually the discussions about management practices, working conditions and organizational culture. Build the bridge. Technology is used to unite the whole organization, not separating it apart. Regarding the workforce, different age groups have different priorities which will sometimes lead to conflict within the organization. One important role is to build the bridge between the digital age gap, meeting the expectation of the younger workers and addressing the concerns of the older workers. Combing the traits of both parties will make the organization more competitive, more adaptable, more efficient and more open. Case StudyOlder Adults Technology Services (OATS) is a non-profit organization based in New York, focusingon training older adults with virtually no technology skills. Several thousand older workers aged 50or more has graduated from the training programs since the beginning of OATS. But the realsuccess of OATS is that it equips the older workers who did not grow up with digital technology andfeel disconnected by the culture of technology with the confidence to become active participants inknowledge environments.OATS uses a different method to train the older workers compared to train the younger workers. Itstarts slowly on the basic to overcome initial discomfort. It also addresses cultural barriers directly,creates conversations between generations and helps older workers manage change.

4.3.2 Technology and HRsThe two officers who are responsible for the talent supply are Chief Executive Officer (CEO) and ChiefHuman Resource Officer (CHRO). CEO is working on a more strategic way to decide what kind of talent isneeded by the organization while CHRO is the one who directly manage the real talent.HRs not only need to make effort to retain the knowledge within the organization, but also need to evolvewith the development of technology themselves. HR has been evolved from traditional personnel modelswhich are heavily disconnected from business needs to HR - Chief Operating Officer (COO) model withkey operational leads to coordinate focus. Now the HR models evolve further, where the HR is acting as aconsulting function and emphasizing on the use of technology to improve networks and HR data. Emerging Models (Consulting Model for HR) PwC (2014). Key Trends in Human Capital. PwCThe technologies used by the leading HR are:  Software as a Service (SaaS)  Data architecture  Dashboards  Data visualization toolsWith the retained knowledge, employees or organizations can generate new knowledge and benefit fromthe new generated knowledge. A large part of the competition today is about how well and fast theorganization generates the new knowledge.

4.4 Generation of the Knowledge4.4.1 Conversion of KnowledgeThe generation of the knowledge cannot exist without the conversion of knowledge. The role theorganization will play at the knowledge creation is to develop the situation that allows knowledge to becreated at the individual, group, organizational and inter-organizational levels.There are four knowledge conversion models. Knowledge Conversion Models To Explicit Knowledge To Tacit KnowledgeFrom Tacit Knowledge Socialization ExternalizationFrom Explicit Knowledge Internalization CombinationNonaka, I., and Takeushi, H. (1995). The knowledge-creating company. New York: Oxford University PressThe features of each model are: Socialization: it is activities or interactions between each entity. It can happen when two entities are sharing experience, spending time together, living in the same environment, working together. It can also rise from apprenticeship or mentor program, meetings inside or outside workplace. It is built on mutual trust, pure experiences and world view. Externalization: by using metaphors, concepts, hypothesis, diagrams, models or prototypes, knowledge is shared among people clearly. Combination: documents and recorders can be useful when we sort, add, combine and categorize knowledge. Presentation and meetings will help when we collect, combine and disseminate knowledge among organizational members. Internalization: the explicit knowledge will be transformed to tacit knowledge after the individual apply it in the real life. Training programs, simulations and experiments are the places where this kind of transformation always happens.4.4.2 Generation of KnowledgeThe generation of knowledge including 4 methods: acquisition, research and development, fusion andknowledge networking.4.4.2.1 AcquisitionThe most common way to acquire knowledge is to buy it, to buy the organization or hire the individualwho owns it. However, it is very difficult to give a right price for the purchase since the reliable analyticaltools for measuring the value of the knowledge do not yet exist. Also, when measuring the knowledge ofan individual, a lot of managers will make the mistake the education background for the knowledge that isof genuine value to their firms, let alone the undocumented and tacit expertise of the individual. Inaddition, it is also hard to find where the knowledge resides. Employees with the knowledge to make theorganization succeed are sometimes not identified or not officially responsible for the results they achieve.Company culture is another factor which may lead to the loss of knowledge. Buying a company for itsknowledge means the acquired knowledge cannot be simple reach by hiring several employees. However,buying the whole company may still end up with failure because the culture of the purchaser may notsuitable for the knowledge from the acquired company. Even if every step mentioned before is successful,the company still faces the problem to integrate new knowledge effectively. The key to success acquisition

is effort to locate and evaluate the knowledge of the acquired company and to mesh the culture andknowledge smoothly. Case Study In 1995, International Business Machine (IBM) purchased the Lotus with 3.5 billion USD, which was 14 times the book valuation of Lotus at that time. The main reason for this purchase is that IBM wanted to acquire the minds that invented Notes and other collaborative software applications. IBM believed that the people from Lotus have the skills, experiences and creativity to help IBM apply its knowledge to the new world of collaborative software.When a company funds the research project in the universities or institutions for the right to firstcommercial use of results, it is an example of the rental of knowledge. The rental of the knowledge facesthe same problem with the acquisition of knowledge: how to evaluate the returns that drive from thefunded research properly. One of the differences between the rental of equipment and knowledge is that itinvolves some degree of knowledge transfer. After the lease of the knowledge, some of the knowledge willstay within the firm.4.4.2.2 Research and DevelopmentWhat the companies do when they want to generate knowledge is to set up a research and development(R&D) department aiming to come up with or collect new knowledge. Companies working in R&Dintensive industries like pharmaceutical or electronics depend on the knowledge generated by their R&Ddepartments to generate revenue. Companies working in less R&D intensive industries like business alsoestablish the knowledge center to provide new knowledge to the organization. It seems that everycompany now fully understands the importance of the knowledge generation but it is not the case. Thevalue of knowledge is very difficult to quantify and financial returns on research take time to materialize, alot of companies who focus on short term profits will cut costs by cutting R&D.4.4.2.3 FusionThe problem with knowledge fusion is that it brings people with different perspectives together to work onthe project and to come up with a joint answer, which may introduce complexity and even conflict tocreate new synergy. However, bringing together people with different knowledge and experience is one ofthe key factors for knowledge creation. Companies right now appreciate the diversity in the office becauseit may increase the chances of a successful outcome. In order to reduce the potential complexity andconflicts, companies must make sure that there is some shared knowledge before collaboration:Increase the awareness of the value of the knowledge and the willingness to invest in the generatingprocess.  Identify the key workers  Treat diversity as positive rather than sources of conflict  Be prepared for the potential complexity and conflicts  Avoid simple answers to complex questions  Direct the knowledge generation to a common goal

Case Study Nissan Design International is a firm believer of knowledge fusion. It carries out hiring strategies to promote cognitive diversity in the firm. For example, it will match an analytical and rational hire with an intuitive and aesthetical one. Hirshberg, the director of the organization, regard the diversity as “a rich and yeasty opportunity for a kind of abrasion that I wanted to turn into light rather than heat.”4.4.2.4 NetworksKnowledge is transferred within the company network. Employees share the common interests talk inperson, on the phone, via email, by instant message to share expertise and knowledge. With enoughquantity of this kind of knowledge sharing, the new knowledge of high quality will be generated and canbe added to the entire company. All the company needs to do is to provide the proper source ofcommunication and record the knowledge if there is. In addition, the early users of the new knowledgecan also pass along the knowledge within the network and in this way a particular practice can graduallybecome absorbed by the company.4.5 Final ThoughtsAs time goes by, the older workers will gradually retire and the younger workers will take their place tomanage the company. But the concern of the digital gap will always exist. Technology can help humanbeings conquer the university but it cannot cover the digital gap, and actually, it is the technology whichcreates the gap.Only people can minimize the friction. Organization need to take steps to address the issues in ways thataccount for generational difference. It is a long process and only the companies who can align the youngerworkers and older workers can survive at last.Leaders, as the role model of the employees in the organization, should stand out to influence theorganizational culture and to provide the support needed for knowledge sharing. Knowledge to solveproblem can exist at any level of the organization and doesn’t necessarily come from the upper hierarchy.This kind of attitude will create an environment of trust and impact employees’ attitude on knowledgetransferring. Leaders should build the trust within the organization and show a philosophy of openness.HR department will play a big role in the digital age. It will not only offer proper trainings to theemployees in the companies but also rebuild the company value and culture to adapt to the technologyage.Organizations whose culture embedded the problem-seeking and problem-solving characters will witnessmore knowledge transferring than others. All employees, no matter they are the upper level or lower levelin the organizational hierarchy, should be encouraged to ask and learn. Collaborative culture in anorganization will also help it to overcome the challenges brought by informational age.Organizations will also provide the support structure, which are supported by technology, training, skilldevelopment and organizational design. Technology will facilitate the flow of knowledge within theorganizational network. Employees are trained to develop the skills to use the technology to maximize theknowledge transfer. Organization structure should also be redefined to encourage knowledge transferwithout hierarchical barriers. Proper rewards will be given to employees who share the most knowledge ora strong team player.New knowledge can be generated with the retained knowledge within the organization. It is a time tocompete with knowledge. Organizations with the high-quality and high-speed of knowledge generationwill survive at last.

An integrative framework: factors influencing effective knowledge transferSwee C. Goh (2002). Managing Effective Knowledge Transfer: An Integrative Framework and Some Practice Implications. Journalof Knowledge Management.Sometimes the organizational value and the employee’s value will have conflict in the knowledge transfer.One example is that the organization may prefer the transfer from up-to-bottom while the youngeremployees may prefer a non-hierarchy way. How to solve this kind of conflicts? Business ethics is one ofthe methods used to mitigate the conflicts between the two parties.No matter how important the knowledge is, it is always human who is transferring it. If the personviolates the rules when transferring the knowledge, there will be potential loss associated with this kind ofbehavior. Company also needs the business ethics to keep the smooth transfer of knowledge and preventthe potential bias.

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