Since the beginning of the 1990’s knowledge management has gained a significant role in research as well as in practice in today’s global organisations. This is due to several changes that took place in the last 20 years, one of the most important ones being the general and global shift from manufacturing to service business (Evans, 2003), increasing global competition and the rise and development of information and communication technology (ICT) (Davenport & Prusak, 1998).
Information and knowledge today are often seen as the main determining factors of competitiveness of organisations (Evans, 2003). Modern organisations therefore have to ask themselves how to implement an effective knowledge management.
The terms knowledge and knowledge management are difficult to define and differ in meaning according to the context. Therefore, in order to keep it simple, both terms should be seen, in this essay, in the context of an organisation’s knowledge management system which is “a system that enhances organizational learning through facilitation of knowledge (both tacit and explicit) exchange and sharing” (Yahya & Goh, 2002, p. 458).
This essay will deal with the link between knowledge management and human resource management (HRM) and in particular with the question how HRM can contribute to share tacit knowledge within an organisation.
Table of Contents
- Introduction
- Knowledge as a source of sustainable competitive advantage
- Tacit and explicit knowledge
- The role of HRM in knowledge management
- The two different strategies of knowledge management and the role of IT
Objectives and Key Themes
This essay explores the relationship between knowledge management and human resource management (HRM), focusing on how HRM can facilitate the sharing of tacit knowledge within organizations. It examines the role of tacit knowledge in achieving a sustainable competitive advantage and analyzes the two main strategies for knowledge management: codification and personalization.
- The importance of tacit knowledge as a source of competitive advantage.
- The distinction between tacit and explicit knowledge and their respective roles in organizational success.
- The strategic role of HRM in knowledge management and its impact on organizational learning.
- The two primary knowledge management strategies: codification and personalization.
- The interplay between HRM practices (recruitment, training, performance management, rewards) and effective knowledge management.
Chapter Summaries
Introduction: This introductory chapter sets the stage by highlighting the growing importance of knowledge management in today's globalized and competitive business environment. It emphasizes the shift from manufacturing to service businesses, the impact of information and communication technology (ICT), and the crucial role of knowledge as a determinant of organizational competitiveness. The chapter defines knowledge management within the context of an organizational system that facilitates the exchange and sharing of both tacit and explicit knowledge. The essay's central focus on the link between knowledge management and HRM, particularly regarding the sharing of tacit knowledge, is clearly established.
Knowledge as a source of sustainable competitive advantage: This section delves into the resource-based view of the firm, arguing that intangible resources like knowledge contribute significantly to sustainable competitive advantage. It contrasts tangible and intangible assets, highlighting the difficulty of imitating an organization's specific knowledge and its management system. The chapter introduces the concept of knowledge as a "corporate asset" and emphasizes the importance of knowledge-based activities as primary internal functions. The discussion lays the foundation for examining the different dimensions of knowledge, particularly the distinction between tacit and explicit knowledge, which is further explored in the subsequent section.
Tacit and explicit knowledge: This chapter explores the difference between tacit and explicit knowledge, building upon Polanyi's philosophical work on tacit knowledge. Explicit knowledge, easily expressed and documented, is contrasted with tacit knowledge, which is more implicit, personal, and difficult to articulate. The chapter emphasizes the difficulty in defining tacit knowledge and highlights its complexity and interactions with explicit knowledge. It argues that tacit knowledge, being harder to imitate and more deeply embedded in individual experience, is crucial for creating a sustainable competitive advantage. However, the chapter also points out the challenges of retaining and sharing tacit knowledge within an organization, especially when employees leave the company. The inherently social and human-centric nature of organizational knowledge is underlined, paving the way for the discussion of HRM's role.
The role of HRM in knowledge management: This section discusses the evolving role of HRM, shifting from an administrative function to a more strategic one. The changing business environment, with its emphasis on globalization, new technologies, and evolving customer needs, necessitates a more strategic HRM approach. HRM is presented as a partner in strategy execution, critical in achieving organizational excellence through learning, quality, teamwork, and reengineering. The chapter emphasizes that successful knowledge management must be aligned with HRM strategy and overall business strategy, impacting crucial HRM activities such as recruitment, training, performance management, and rewards and recognition.
The two different strategies of knowledge management and the role of IT: This chapter outlines two primary knowledge management strategies: codification and personalization. The codification strategy focuses on documenting and storing knowledge in easily accessible databases, leveraging IT systems for efficiency and knowledge reuse. Conversely, the personalization strategy centers on face-to-face communication and organizational learning behaviors, using IT as a supporting tool. The chapter explores the strengths and weaknesses of each approach, noting that a balanced approach is often ideal, with a possible weighting of 80% codification and 20% personalization. It underscores the need for HRM practitioners to understand these strategies to align them with their organizations' overall knowledge management goals. The potential for business failure when pursuing the wrong strategy, or a poorly balanced combination of both, is highlighted.
Keywords
Knowledge management, Human Resource Management (HRM), tacit knowledge, explicit knowledge, competitive advantage, organizational learning, codification strategy, personalization strategy, knowledge sharing, sustainable competitive advantage.
Frequently Asked Questions: A Comprehensive Language Preview on Knowledge Management and HRM
What is the main focus of this essay?
This essay explores the crucial relationship between knowledge management and human resource management (HRM), particularly focusing on how HRM practices can effectively facilitate the sharing of tacit knowledge within organizations. It examines the role of tacit knowledge in achieving a sustainable competitive advantage and analyzes two primary strategies for knowledge management: codification and personalization.
What are the key themes explored in the essay?
Key themes include the importance of tacit knowledge as a source of competitive advantage; the distinction between tacit and explicit knowledge and their respective roles in organizational success; the strategic role of HRM in knowledge management and its impact on organizational learning; the two primary knowledge management strategies (codification and personalization); and the interplay between HRM practices (recruitment, training, performance management, rewards) and effective knowledge management.
What is the difference between tacit and explicit knowledge?
Explicit knowledge is easily expressed and documented, while tacit knowledge is implicit, personal, and difficult to articulate. Tacit knowledge, being harder to imitate and more deeply embedded in individual experience, is crucial for creating a sustainable competitive advantage. However, it presents challenges in retention and sharing within an organization.
What is the role of HRM in knowledge management?
The essay argues that HRM's role is evolving from an administrative function to a strategic one. Successful knowledge management requires alignment with HRM and overall business strategies, impacting crucial HRM activities such as recruitment, training, performance management, and rewards and recognition. HRM is presented as pivotal in achieving organizational excellence through learning, quality, teamwork, and reengineering.
What are the two main strategies for knowledge management?
The essay outlines two primary strategies: codification and personalization. Codification focuses on documenting and storing knowledge in accessible databases, leveraging IT for efficiency and reuse. Personalization emphasizes face-to-face communication and organizational learning, with IT playing a supporting role. A balanced approach, potentially weighting 80% codification and 20% personalization, is often recommended.
How does knowledge contribute to a sustainable competitive advantage?
The essay utilizes the resource-based view of the firm, arguing that intangible resources like knowledge significantly contribute to sustainable competitive advantage. The difficulty of imitating an organization's specific knowledge and its management system is highlighted, establishing knowledge as a valuable "corporate asset".
What are the chapter summaries provided in the preview?
The preview includes chapter summaries covering the introduction (setting the context and defining knowledge management), knowledge as a source of sustainable competitive advantage (resource-based view and intangible assets), tacit and explicit knowledge (defining and contrasting the two types), the role of HRM in knowledge management (strategic HRM and its impact), and the two different strategies of knowledge management and the role of IT (codification and personalization).
What are the keywords associated with this essay?
Keywords include: Knowledge management, Human Resource Management (HRM), tacit knowledge, explicit knowledge, competitive advantage, organizational learning, codification strategy, personalization strategy, knowledge sharing, sustainable competitive advantage.
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- Viktoria Sass (Author), 2011, The Link between Knowledge Management and Human Resource Management, Munich, GRIN Verlag, https://www.grin.com/document/190996
