The Role of Knowledge Management and Human Resource Management in Research Paper

The Role of Knowledge Management and Human Resource Management in assisting the employees' replacement process - Research Paper Example Conclusions 22 References Appendices List of Abbreviations HRM: Human Resource Management KM: Knowledge Management IC: Intellectual Capital RBV: Resource-based-view 1. Introduction: Ulrich (1998) asserted that knowledge management through intellectual capital will be the basis for direct and indirect competitive advantage for organisations; and that successful organisations will be the ones that are most adept at attracting, developing and retaining individuals who can drive global organisation that is responsive for both its customers and the burgeoning opportunities of technology. Ulrich’s perspective on knowledge management and human resources management provide a strong foundation to understand contemporary organisations’ providence in sustaining their position in the global market. This paper will discuss the Ulrich perspective in depth and to show the link between the role of both Human Recourse Management and Knowledge Management in sustaining the competitive adv antage of organisations through knowledge workers. 2. What is Intellectual Capital: Ulrich (1998) emphasizes the ability to attract, develop and retain individuals that can run organisations at global levels while exploiting technological advancements for achieving and sustaining success. This is possible by building intellectual capital, which the Business Dictionary explains as the collective knowledge of individuals in an organisation or society, which can be used to produce wealth, multiple output of physical assets, gain competitive advantage, and/or to enhance value of other types of capital including customer capital, human capital, intellectual property, and structural capital (Skiba & Dulong, 2010; p.264). Human capital constitutes the knowledge gained by employees through specific activities that result in learning and innovation (Edvinsson and Malone 1997). Overall, Nahapiet and Ghoshal (1998; p.245) regard IC as â€Å"a valuable resource and a capability for action base d in knowledge.† Moreover, they regard IC of greater value compared to other organisational assets. According to them, IC operates in two dimensions, first based on types of knowledge; secondly, levels of analysis in knowledge and knowing. From the types of knowledge perspective, its classification into tacit and explicit knowledge by Polanyi (1967) stands good in organisational contexts. Intellectual capital is the hidden value of the organisation, and closely linked to Knowledge core processes such as acquisition, codification, dissemination, development and application (Davis, 2009). Establishment of this link between Knowledge core processes and IC requires an understanding of knowledge and its management in organisational contexts. 3. Knowledge and its management: Knowledge: Distinguishing from information and data, Lang (2001) identifies knowledge as a human creation that is embodied in mind, and argues that it cannot be delivered by systems or technology. A highly accep ted and notable classification of knowledge is that of Polanyi’s (1967) tacit and explicit knowledge. Tacit knowledge is that which is captured by an individual’s mindset and manifests through their actions. This knowledge can be acquired through interpersonal interaction (Lee & Choi, 2003). Explicit knowledge forms the formal and systematic knowledge which can be shared and communicated by codifying into manuals, procedures, rules etc (Nonaka & Konno, 1998; Stenmark, 2001). Explicit knowledge can be transferred to others in simpler manner than tacit