Future Business Leaders of America (FBLA) Organizational Leadership Practice Test

What two types of knowledge comprise 'Organizational Knowledge'?

1. Tacit and explicit know-how

2. Theoretical and practical experience

3. Qualitative and quantitative data

4. Formal and informal processes

The correct answer is: Tacit and explicit know-how

Organizational knowledge is primarily comprised of two types: tacit and explicit know-how. Tacit knowledge refers to the insights, intuitions, and experiences that individuals possess, which are difficult to articulate or document. This type of knowledge is often gained through personal experience and is unique to individuals or teams within an organization. It includes skills learned through practice and the nuance of applied knowledge that cannot easily be transferred through books or formal training. On the other hand, explicit knowledge consists of information that can be easily communicated, documented, and shared. This includes manuals, procedures, policies, and databases that are accessible and can be understood by others without significant effort. Explicit knowledge is crucial for ensuring that organizational practices can be standardized and disseminated throughout the organization. The combination of these two knowledge types enables organizations to leverage individual experience while also making information accessible and functional across various levels of the organization, leading to improved decision-making and overall effectiveness. Understanding the interplay between tacit and explicit knowledge is essential for effective leadership and organizational development.