Knowledge Management and HR Relation

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Table of Contents

Introduction
Analysis
Conclusion
Reference List

Introduction

The need to hire a skilled workforce has led to the development of the concept of knowledge management (KM) as an important aspect of human resources (HR) practices. The notion of KM is not easy to describe in terms of a single definition since various interpretations and styles of use make this strategy dynamic and flexible.

This concept was born as a theory that stimulated the professionalism of employees and contributed to developing their necessary skills (Kianto, Vanhala, and Heilmann, 2016). The importance of KM lies in the ability to find and implement valuable knowledge that might help achieve organizational goals and other related tasks, for instance, saving time and costs.

The purpose of this essay is to evaluate the meaning of KM for HR specialists and examine ways in which HR managers can incorporate KM into their professional work. This essay will mainly focus on large and knowledge-intensive companies with subsidiaries in different countries, which can especially benefit from KM.

Also, the relationship between KM and HR will be considered as one of the key topics. The gaps and findings made by scholars will be analyzed, and their roles will be evaluated in the context of the connection between the two concepts under consideration. The importance of studying KM from a practical perspective lies in the differentiation of individual models, for instance, Wiig’s system that involves a 4-phase implementation of this phenomenon – building, holding, pooling, and using knowledge (Foote and Halawi, 2016).

In general, HR influences KM significantly, and providing conditions for searching and implementing valuable knowledge contributes to the business growth of large enterprises due to an opportunity to distribute information among all subsidiaries quickly and efficiently.

Analysis

Firstly, in this section, the notion and concept of KM will be defined, and the relationship between KM and HR will be discussed. According to Figueiredo et al. (2016, p. 498), knowledge management is “the set of efforts to optimize and develop internal organizational conditions that catalyze all processes and practices related to knowledge, in order to fulfil organizational objectives”.

In addition to the practical, theoretical significance of this concept is an essential aspect since the corresponding framework makes it possible to implement the necessary projects and tasks in the context of a holistic program, thereby facilitating the rapid exchange of information.

As Uddin (2017, p. 31) argues, KM is “the process of creating, utilizing, sharing, storing and reuse of knowledge for making better organizational decisions due to the availability of relevant knowledge”. Therefore, this is a broad concept that relates to all aspects of managing and using knowledge for the benefit of a company.

Impacts of HR on KM

KM practice allows capturing the knowledge and expertise developed by employees and sharing it with the rest of the company. Therefore, the principle of accumulating knowledge within a specific firm is part of its operations; thus, KM is not a new concept. This approach to data sharing pertains to all the processes necessary to manage information within an organization (Dalkir, 2011; Easterby-Smith and Lyles, 2011).

Companies continuously provide training to their employees, which is part of the KM principle since individuals share information and learn from these activities (Gold et al., 2011). From an individual’s perspective, new knowledge may be acquired through reflection (Alavi and Denford, 2011). HR managers can influence the practice of KM in a company because they are responsible for hiring and training practices, as well as the overall environment in a workplace that can support KM.

The relationship between HR practices and knowledge management is because people within an organization create and use intellectual assets. According to El-Farr and Hosseinghoizadeh (2019, p. 10), “competitive advantage is increasingly based on the successful application, leverage and creation of knowledge – especially knowledge embedded in human assets”. HR managers should focus on establishing practices that aid employees in generating knowledge, managing it, and using it through appropriate competencies.

Therefore, the central claims made about the relationship between HR and KM pertain to the fact that human resources are the core elements of both practices. Since knowledge is created and managed by employees, HR managers can ensure that a company hires those people who possess the competencies necessary to carry out this practice (Uddin, 2017). One can argue that based on the core principles of KM, information about products, the process of their development, and other intellectual properties are the central values that an organization has.

Secondly, the nature of information and its place within organizational operations are to be defined. As El-Farr and Hosseingholizadeh (2019, p. 11) state, knowledge itself is “social creation emerging at the interface between people and information”. Therefore, it neither can exist without people nor may be used without considering the human aspect of KM.

Moreover, HR is also a people-centered practice, which means that both KM and HR focus on the same element of organizational work – human resources and their intellectual value. This suggests that companies should invest in their human capital to enhance performance. According to Gope, Elia, and Passionate (2018, p. 649):

“HRM practices can improve management process at the organisational level by increasing employees’ skills and abilities, influencing their behaviour and attitudes and increasing their motivation and learning capacity, and through facilitating the development of competencies.”

Thus, since the task of HR is to help a company’s personnel develop professionally, KM is the core aspect of the HR managers’ work. The importance of KM facilitated by HR is supported by the fact that standardization organizations develop guidelines on implementing KM systems. According to Loon (2017), the fact that the International Standard Organisation (ISO) has developed a practice that outlines the leading KM practices signifies the importance of this organizational management element.

The author highlights that there are several paradigms and approaches to viewing KM and the types of knowledge used by practitioners. In general, all ISO standards are documents that outline the specifications and characteristics of a certain system (Loon, 2017). HR can benefit from using the ISO guideline since this is the best standardization practice that exists today.

Implications and Significance of KM

There are several implications of KM that help companies benefit from these systems and enhance their operations. According to Koenig (2018, para. 2), “KM can very fruitfully be seen as the undertaking to replicate, indeed to create, the information environment known to be conducive to successful R&D – rich, deep, and open communication and information access”. Employees can use the prior experience of their colleagues who work in the same industry for the same company.

The meaning of KM for organizations is described by different scholars. According to El-Farr and Hosseingholizadeh (2019), in the current globalized world, the notion of a knowledge economy defines the value of an organization to its customers. This effect results in the fact that knowledge may become an essential competitive advantage for a business.

For instance, practices used to develop new products, manage customer relationships or improve the existing processes developed by an organization help it create a unique offer for consumers (Millar, Chen, and Waller, 2017; Santoro and Usai, 2018). By using these practices, employees, other divisions or departments can enhance their work. The uniqueness of this organizational knowledge is the main element that defines its value since, in the era of the Internet, information can be accessed quickly (Nowacki and Bachnik, 2016).

However, if all companies within a specific industry decided to use the same practice for developing their product, it would be difficult for customers to choose the best option, and organizations would struggle with competitors.

Some evidence suggests that KM empowers employees, improving their satisfaction with their jobs. Kearns (2015) suggests that learning organizations contribute to the personal and professional development of their workers. Moreover, businesses can either fail or succeed in their KM efforts by developing an appropriate environment for subordinates to learn, which is the main task of HR.

Syed, Murray, and Hislop (2018) state that by acquiring knowledge from outside sources, companies leverage the economy of the scale principle. Articles by Kianto, Vanhala, and Heilmann (2016) and Arunprasad (2016) present evidence suggesting that KM practices affect employee productivity and work satisfaction positively. Therefore, by using KM, HR managers can influence the motivation of employees, as well as enhance their professionalism.

There are two types of information that HR managers can incorporate into the KM system – tacit and explicit. Nishinaka, Umemoto, and Kohda (2015) mention this classification in the framework of Frenkel’s model and note that these types differ in an application context. Tacit knowledge, as opposes to the traditional one, is something that cannot be easily transferred from one person to another (Gibb, 2010).

It is usually not articulated and content-specific, making it difficult to communicate to employees. In general, tacit knowledge is a part of a specific team or individual’s expertise. Explicit knowledge is the information that can be measured, recorded, and organized within the KM system. Arguably, both tacit and explicit knowledge are valuable components for a firm.

The competencies of HR managers also help overcome the issue of resistance when using KM. A survey by Jia, Minghui, and Xuan (2016) suggests that aversion and inertia are the primary causes that obstruct the implementation of KM. This may be explained by the behavioral and social implications of such systems, and HR managers can impact organizational culture to promote learning.

Another issue is aligning knowledge management with the day-to-day work of HR specialists since one can argue that the task is beyond their scope of practice. Zaim et al. (2018) state that KM has become an essential asset for businesses, which requires investment from companies to ensure their development.

KM is a complex topic with varied approaches and strategies for establishing an environment in which such a practice may be implemented successfully. Alavi and Denford (2011, p. 105) note that “organisational knowledge management is a broad and multi-faceted topic involving socio-cultural, organisational, behavioural, and technical dimensions.” KM requires HR managers to understand the specifics of behavior, information flow, and learning, as well as technology. This claim also supports the idea that HR managers are responsible for KM systems since these employees develop hiring and training practices for businesses.

Implementation of KM practices

KM systems developed and facilitated by HR should consider the flow of information. Alavi and Denford (2011, p. 107) point out the following elements of KM – “knowledge creation, knowledge storage and retrieval, knowledge transfer, and knowledge application”. In regards to the creation, there are two main ways a company can incorporate new knowledge into its practice – develop it or acquire necessary information. Organizational culture is one of the sources of internal organizational knowledge.

Nonetheless, some firms may prefer to use knowledge from outside sources. External resources are codified procedures or manuals that guide individuals and provide information in a structured manner. Next, from the perspective of the knowledge transfer process, a source and a recipient are the main elements of this activity.

When considering various elements of KM, it is essential to examine the practice itself. In this regard, information technology is a crucial component that allows companies to mine data, store them and transfer them to different teams and individuals quickly. This is particularly relevant to knowledge-intensive businesses where employee competencies develop and improve with each new project (Medina and Medina, 2015).

The development of the Internet has contributed to the practice of KM and made it easier for HR managers to establish a KM system (Yang, Secchi, and Homberg, 2018). The appropriate organizational culture may support knowledge sharing and learning and improve employee activities. As an example of a valid KM model, Wiig’s cycle can be given.

As Foote and Halawi (2016) remark, this concept involves a phased process of controlling knowledge in business firms and includes the stages of building, holding through technology or oral exchange, reporting, and implementing into the workflow. The whole system is simple, but, at the same time, demonstrates the key steps that should be taken to realize KM in practice. Both HR managers and employees obtain the necessary information guaranteed, which contributes to high working productivity.

Conclusion

The findings suggest that large international corporations benefit from KM since this concept allows sharing the know-how across different subsidiaries. In the context of the knowledge economy and considering the contemporary scope of HR strategic objectives, it is vital to integrate and invest in KM practices. HR managers are responsible for hiring people with competencies, which helps create an appropriate learning environment.

KM practices allow capturing knowledge that is developed within the organization by its employees and distributing it. Alternatively, an organization can use outside sources as part of the knowledge acquisition practice. The development of technology allows HR to benefit from various systems and applications that help store and transfer information quickly.

The practical implications of the KM in the context of HR involve an ability to improve a company’s competitive advantage. Wiig’s cycle is a vivid example of a valid and simple KM model. As an example of the concept of knowledge forms, Frenkel’s model may be analyzed, which highlights tacit and explicit contexts. Employees can ensure more productive work and save valuable resources due to effective KM promoted by HR specialists.

Reference List

Alavi, M. and Denford, J. S. (2011) ‘Knowledge management: process, practice, and web 2.0’, in Easterby-Smith, M. and Lyles, M. A. (eds.), Handbook of organizational learning and knowledge management. 2nd edn. Chichester: Hoboken, pp. 105-124.

Arunprasad, P. (2016) ‘Guiding metaphors for knowledge-intensive firms: strategic HRM practices and knowledge strategies’, International Journal of Organizational Analysis, 24(4), pp. 743-772.

Dalkir, K. (2011) Knowledge management in theory and practice. 2nd edn. London: MIT.

Easterby-Smith, M., and Lyles, M. A. (2011) Handbook of organizational learning and knowledge management. 2nd edn. Chichester: Wiley.

El-Farr, H. and Hosseingholizadeh, R. (2019) ‘Aligning human resource management with knowledge management for better organizational performance: how human resource practices support knowledge management strategies?’, in Wickham, M. (ed.), Current issues in knowledge management. London: IntechOpen, pp. 10-20.

Figueiredo, E., Pais, L., Monteiro, S. and Mónico, L. (2016) ‘Human resource management impact on knowledge management: evidence from the Portuguese banking sector’, Journal of Service Theory and Practice, 26(4), pp. 497-528.

Foote, A. and Halawi, L. A. (2016) ‘Knowledge management models within information technology projects’, Journal of Computer Information Systems, 58(1), pp. 89-97.

Gibb, S. (2011) Human resource development: foundations, processes, context 3rd edn. London: Red Globe Press.

Gold, J., Holden, R., Iles, P., Stewart, J. and Beardwell, J. (eds) (2010) Human resource development: theory and practice. London: Palgrave Macmillan.

Gope, S., Elia, G. and Passiante, G. (2018) ‘The effect of HRM practices on knowledge management capacity: a comparative study in Indian IT industry’, Journal of Knowledge Management, 22(3), pp. 649-677.

Jia, L., Minghui, L. and Xuan L. (2016) ‘Why do employees resist knowledge management systems? An empirical study from the status quo bias and inertia perspectives’, Computers in Human Behavior, 65, pp. 189-200.

Kearns, P. (2015) Organizational learning and development: from an evidence base. London: Routledge.

Kianto, A., Vanhala, M. and Heilmann, P. (2016) ‘The impact of knowledge management on job satisfaction’, Journal of Knowledge Management, 20(4), pp. 621-636.

Koenig, M. D. (2018) What is KM? Knowledge management explained. Web.

Loon, M. (2017) ‘Knowledge management practice system: theorising from an international meta-standard’, Journal of Business Research, 94, pp. 432-441.

Medina, R. and Medina, A. (2015) ‘The competence loop: competence management in knowledge-intensive, project-intensive organizations’, International Journal of Managing Projects in Business, 8(2), pp. 279-299.

Millar, C. C., Chen, S. and Waller, L. (2017) ‘Leadership, knowledge and people in knowledge-intensive organisations: implications for HRM theory and practice’, The International Journal of Human Resource Management, 28(2), pp. 261-275.

Nishinaka, M., Umemoto, K. and Kohda, Y. (2015) ‘Emergence of common tacit knowledge in an international IT project: a case study between Japan and Singapore’, International Journal of Managing Projects in Business, 8(3), pp. 533-551.

Nowacki, R. and Bachnik, K. (2016) ‘Innovations within knowledge management,’ Journal of Business Research, 69(5), pp. 1577-1581.

Santoro, G. and Usai, A. (2018) ‘Knowledge exploration and ICT knowledge exploitation through human resource management: a study of Italian firms’, Management Research Review, 41(6), pp. 701-715.

Syed, J., Murray, P. A. and Hislop, D. (eds) (2018) The Palgrave handbook of knowledge management. Cham: Palgrave Macmillan.

Uddin, M. (2017) ‘Knowledge management: tool for enhancing HRM practices and organizational innovation’, International Journal of Humanities and Social Sciences, 9(4), pp. 31-40.

Yang, Y., Secchi, D. and Homberg, F. (2018) ‘Are organisational defensive routines harmful to the relationship between personality and organisational learning?’, Journal of Business Research, 85, pp. 155-164.

Zaim, H. et al. (2018) ‘The effects of knowledge management processes on human resource management: mediating role of knowledge utilization’, Journal of Science and Technology Policy Management, 9(3), pp. 310-328.

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