Organisational flexibility through human capital development

The current knowledge economy has brought several challenges to contemporary organisations. There is need for flexibility on the part of key players, namely individual employees as well as organisations as a whole; this flexibility arises from the innovation in both products and services. The complexity of knowledge requires an education that enhances softer skills. The intellectual capacity, creativity, and adaptability of individuals gives rise to greater flexibility. This strengthens the fact that there is a change of paradigm in the way human capital is viewed. Through the human-oriented perspective, knowledge is seen as collective sense making and social practice. The objective of this chapter lies in this context of complexity, change, and adaptation within an economic and social reality based on knowledge. Therefore, the chapter aims to reflect upon Knowledge Management in companies such as universities where tacit knowledge is stored as intellectual capital in the minds of both lecturers and students and to highlight the need to instill the new paradigm which fosters knowledge creation and sharing in universities.