Managing Knowledge Workers in a Service Industry with Special Reference to Audit Firms

Abstract

With the advent of ‘Knowledge Economy’, knowledge has sidelined Capital and Labor to become the sole factor of production. Knowledge is the only currency in today’s knowledge society, which is witnessing a paradigm shift from man-power to brain-power. Knowledgeable employees are originating in every organization and they are the backbone of every successful company. Successful companies of 21^st century will be those that do the best job of capturing, storing and leveraging what their employees know. One of the best measures of Knowledge Economy is the growth and influence of professional service firms like accounting, consulting, advertising, legal etc. People don’t just buy product or services, they seek a solution to a problem and that requires knowledge and experience .The chartered Accountants are knowledge workers who provide knowledge-rich solutions and services to the clients. As knowledge becomes important part of wealth creation managing knowledge workers in emerging Knowledge Economy is extremely important.Managing knowledge workers is finally nothing but to position the right information in the hands of right people at the right time.Indian Economy is evolving from a domestic manufacturing based economy into a global knowledge economy, where raw material is information and business assets are its people. Accordingly, managing a knowledge business such as Accountancy Firm requires managing the abundance of information, turning information into knowledge and maximizing its return on investment in its people. Professional Accountants are at the top of knowledge worker chain. They are the powerful icons of knowledge economy. It is right time for all organizations to embrace the concept that knowledge workers, not physical assets are their most valuable assets. Higher level of professional work which contributes to the satisfaction of customer needs can be achieved by effective management of knowledge workers.