In an era where competitive advantage is perceived to be linked with knowledge, companies' interest in Knowledge Management continues to rise. In terms of the HR function, this rise has had a major impact.
According to experts such as Lengnick-Hall in the field warns that HRM faces extinction if it does not respond to changes brought about by the shift from a traditional to a knowledge based economy (Stewart, 1997; Ulrich, 1997, 1999; Saint-Onge, 2001, Lengnick-Hall and Lengnick-Hall, 2003). Katzenbach and Smith mentioned that organizations that are quick to respond and dynamic have employees with the skills, ability and specialized knowledge to achieve advancement in service delivery. (Katzenbach and Smith, 1993)
Benefits linked with the adoption of KM in the HR function are as follow:
To mitigate risk by improving decision making and solving problems faster.
To provide better and more cost beneficial services to the public
To unleash new ideas and creativity to consolidate outdated system in order to improve overall performance of the organization.
2.2 Change of the HR function
The challenges faced by HR include:
Developing and sustaining a knowledge and innovation centric culture
Accessing tacit knowledge,
Securing trust and commitment,
Handling non-traditional employees, and organisational vulnerabilities, such as changing balance of power, arising out of heavy dependence on key knowledge workers. (Storey and Quintas, 2001)
Similarly, Currie and Kerrin (2003) believe that "employees' unwillingness to share knowledge with others is crucial in determining the contribution HR practices can make to managing knowledge".
2.3 Roles of HR in Organizations
Knowledge used and generated from roles of HRM in healthcare organizations is as follow:
Formal reward
Formal rewards such as salaries and bonuses are calculated from explicit knowledge such as number of days worked in a month and performance of the employee.
Providing feedback
Providing feedback on the other hand depends on both tacit and explicit knowledge, that is, HR managers usually evaluate the performance of an employee by referring to the criteria provided by the company and the evaluation is based on the perception of the HR manager on performance.
Developing job description
Developing job description converts tacit knowledge, that is, ideas of HR managers of job description, into explicit knowledge, that is, written job description on paper.
Reviewing applications and interviewing applicants
Tacit knowledge is shared between applicants and HR managers during interviews and applications are being evaluated
Coaching and mentoring
Here both tacit and explicit knowledge is being shared between mentors and employees since there is interaction between them and tacit knowledge is shared. Explicit knowledge however is shared when the employees learn how to do a particular work. (Arben Asllani, Fred Luthans, 2003)
HRM also play the role of amplifying efficiency of the employees, quality of facilities and patient's contentment, in short, helping in the accomplishment of department's improvement by sharing knowledge when required to the employees.
2.4 HR competencies
'Competency' is defined as the capacity to add value to an organization. (Ulrich, 1995) According to Aitchison (2009), among the main factors that prevent HR practitioners from being beneficial to an organization is lack of certain competencies.
In order to keep up with the new knowledge based global economy, organizations are being forced to transform their HR function and to do so, competencies and competency based systems are being used as tools. Competencies play a great role in measuring preparedness, developmental needs, and performance of the HR work force.
In order to have a successful HR transformation, organizations must know how to develop new competencies in its employees. Ways in competencies development includes:
Formal courses offered either by the company itself or externally such as universities and computer based training. Factors such as cost, course content and trainer experience are important
On the job training can also be offered. HR competencies are gained in work assignments and job rotations.
HR professional sharing knowledge through peer networks, mentoring and coaching support programs. These can also help in competencies development of employees
The five main domains of competencies which are important for the HR function and its effectiveness are listed below in Figure 1
Business Knowledge
Understanding business needs
Measuring HR's contribution
HR delivery
Staffing
Development
Organizational Structure
Performance Management
Strategic Contribution
Culture Management
Fast change
Strategic decision making
Market driven connectivity
Personal Credibility
Expert knowledge
Effective relationships
Personal communication
HR Technology
Leveraging to deliver value
Figure 1: The HR Competencies (Brockbank & Ulrich Model)
Source: Boselie, P & Paauwe, J. (2004)
2.5 HR Service Delivery
Since HR has changed into a more strategic, value adding and business focused, an increasing importance is being given to a model structure for the function. During the mid 1990's, Dave Ulrich came up with a model design called the "three legged model" as shown below in Figure 2
Corporate Centre
Centers of Expertise
Shared Services
Business Partners
Figure 2: HR "three legged" Model
Source: Peter Reilly, HR Transformation: prizes and challenges (2008)
A survey carried out by The Chartered Institute of Personnel and Development in 2007 proved that both private and public sector organizations have adopted this model and the most common benefit was they gained deeper professional knowledge which helped in transforming the HR function into a more strategic contributor.
Business Partners are HR professionals who work together with business leaders and who influence and guide strategy and its implementation. In the our context, business partners would be HR professionals within the company gaining knowledge management skills required from knowledge experts in order to apply knowledge management to bring change to the HR function of the organization
On the other hand, Centers of Expertise which refers to groups of HR experts with knowledge of solutions for leading edge HR would be those HR personnel of the company who have gained the knowledge needed to be applied in the function to transform it. Furthermore, these HR experts can educate the employees of the function about the importance of KM and what it means.
Lastly, Shared Services are usually an automated system that's takes care of all routine processes across the business. Shared services in the HR function would refer to a database of explicit knowledge relevant to be function put forward to be accessed and shared among the HR employees. Furthermore, intranet and groupware can also be used.
2.6 Knowledge Management (KM)
Before embarking on the KM journey, one need to understand the components of knowledge, how it differs from information and how information differs from mere data.
Data is simply a number, word or letter without any specific meaning. For example, numbers such as 12 or 17 are mere data without any context.
On the other hand, information refers to a collection of data with a specific meaning. In order for information to exist, there must be a context, that is, a relation between the set of data. For example, if we say that there is 12 months in a year or there are 17 pupils in a class, then these data becomes information.
Furthermore, when information is further analyzed and a pattern relation existing between data and information is found and one is able to understand the pattern, then the collection of data and information become knowledge. Contrary to information, knowledge has the tendency to create its own context. This is because these patterns which represent knowledge have a characteristic of being complete.
HR knowledge is said to have two aspects:
Theoretical understanding
Theoretical understanding of HR management practices is those theories documented in books or being taught in classes
Practical Experience
These are experience gained throughout time and by practicing and is context specific since experience is attached to a specific situation (Perrin et al., 2006; Styhre, 2004)
Types of Knowledge
There are two types of knowledge, namely tacit knowledge and explicit knowledge (Polanyi 1966). Tacit knowledge is personal knowledge found in the head of an individual. It is gained by interacting with people, by experiencing success and failure and by practice of trial. In the HR world, these are HR experts who have developed skills and understanding through years of education and experience in the healthcare sector
However, explicit knowledge is anything that can be stored, documented or archived in facilities, products, processes, services and systems and can easily be shared throughout the organization. These include knowledge such as customer lists, memos, patents, business plans, etc...
The implementation of KM to change the HR function requires efficient approaches to find, understand and use HR knowledge to reach organizational objectives and creating value by reducing the time and expense of trial and error (CIO Council, 2001)
In our context, the implementation of KM to change the HR function requires that HR managers are given training in KM, hence being able to examine the company's environment and find ways in which HR knowledge can be obtained. I believe that by interviewing the HR members of the company, the following tacit knowledge can be obtained
Problems faced by the HR department members.
Defects in the processes and other part of the function to be improved
Ideas for improvement in the function as a whole
HR managers can hence make use of these tacit knowledge to transform the HR function into a better department.
The HR function must also set up a database where explicit knowledge can be easily accessed and shared among its members. Explicit knowledge stored in the database can be:
Explanation of the purpose of the HR function in the company
Goals and objectives of the function
Job descriptions
Policies
Rules and regulations
Scheduling of different task
List of solutions to different problems, etc…
With an effective database available for HR members to make use, HR knowledge can easily be shared and all employees will have the right knowledge required by the function to reach its goals
2.7 Linkage between KM and HRM
Since HRM is about managing people effectively and that people's most valuable resource is knowledge, HRM and KM is said to be interlinked
Moreover, HRM and KM share common activities and goals when creating work units, teams, cross-functional cooperation, as well as communication flows and networks inside the organisation and across its borders. Furthermore, if we link KM processes with HRM processes, several activities are the same in both. Examples are given under the KM process section below.
Furthermore, KM and HRM can also be considered to be interdependent since knowledge cannot is managed without the presence of human resource and vice versa (Ivan Svetlik, Eleni Stavrou-Costea, 2007)
Knowledge can be found in all organizations. However, very few have the capability to make good and effective use of this precious asset. The transformation of the HR function will only happen by adopting a proper Knowledge Management framework
2.8 Conceptual KM Framework for the HR Function
The effectiveness of knowledge management systems in HR function of the company is dependent on the levels of KM infrastructure and KM process facility (Ghosh and Scott, 2007). Furthermore, Orzano et al. (2008) states that the critical KM processes (finding, sharing and developing knowledge) lead to better decision-making and organization learning which in turn lead to organization performance in terms of quality, satisfaction and productivity. Finally, there is also the crucial role of the numerous factors that act as enablers for KM processes (Lee and Choi, 2003)
HR Strategy
Knowledge Management Strategy
Sharing culture
Processes
Enabling Technologies
People
Figure 3: The Knowledge Management Framework
Source: KPMG (1998)
2.9 KM strategy
The KM strategy provides the necessary information to what the organization must do and how to achieve strategic goals (Srikantajah and Koening, 2000)
It is also important for KM strategy to be in line with business strategy as well. in order to have a link between these two strategies, it is crucial that the organization identify knowledge needed to fulfill its business strategy and find out the knowledge gap that exist between what the organization should knows and actually knows. (Tiwana, 2002)
A gap analysis as shown can be used by the HR function to evaluate the function in terms of its actual state and its desired objectives. This is done by means of a KM strategic road map
What the HR function must do
What the HR function must know
Strategy-knowledge link
Knowledge Gap Strategic Gap
What the HR function does
What the HR function knows
Knowledge-Strategy link
Figure 4: Gap analysis
Source: The Knowledge Management Toolkit, Tiwana (2002)
A knowledge Audit is usually carries out together with the gap analysis from which a KM strategy can hence be developed (Skyrme, 2001)
At the company, a knowledge audit can provide the following results:
Identification of core knowledge assets and flows - who creates, who uses
Identification of gap in information and knowledge needed to transform the HR function
Opportunities to reduce information handling costs
Improving access to frequently used information
A better understanding of the contribution of knowledge to HR performance results (Dalkir, 2005)
2.9.1 KM Processes
Different proponents have explained KM processes in different ways. Alavi and Leidner (2001) defined KM processes as the creation, storage/retrieval, transfer and application of knowledge, whereas Soliman and Spooner (2000) defined KM process as the capture, organize, access and use of knowledge. However, the best KM process suitable for the change of the HR function is as follow:
2.9.1.1 Knowledge Capture and Creation
Since people interact between each other every day, knowledge is continuously being created. One among the aims of knowledge management is to capture this knowledge and use them in a way so that the organization gains a competitive advantage from it.
Knowledge creation in the HR function includes the training and development of individuals to so that they are able to create new knowledge. Likewise, knowledge creation involves the creation of a supportive environment consisting of employees ready to be challenged by organizational problems (Ivan Svetlik, Eleni Stavrou-Costea, 2007).
The SECI Model in figure 4 shows how HR knowledge can be created:
722px-SECI_Model.jpg
Figure 4: Creation of HR knowledge through the SECI Model
Source: http://en.wikipedia.org/wiki/File:SECI_Model.jpg
An example of Socialization refers to a situation where an employee meets with the HR manager to discuss an HR problem and exchange ideas on how to solve the problem, that is, tacit knowledge is shared
Then in the Externalization process, ideas gained is documented into a manual for the department, that is, tacit knowledge is transformed into explicit one
In the Internalization process, the explicit knowledge gained is shared to other staff when the latter reads the manual and hence, put them in practice when doing similar tasks.
Finally, the Combination process refers to the posting of the manual on the internet for all to refer to.
2.9.1.2 Knowledge acquisition
Knowledge acquisition refers to the recruitment of people and teaching them how to be a professional within the organization. Moreover, knowledge acquisition is also about encouraging employees to share knowledge by taking part in communities of practice and professional networks such as forums (Wenger et al., 2002).
2.9.1.3 Knowledge Organization
Knowledge should be organized in such a way so that everybody understands it. Furthermore, Knowledge should also be indexed properly and in an easy format so as be easily understood by all. Important attributes of information includes comprehensiveness of coverage, relevance accuracy and timeliness. Consistency, usability and customization are also important to the quality of information. However, replication should be eliminated and old information erased.
2.9.1.4 Knowledge Access
The third process is knowledge access. This relates to who will have access and rights to update or delete information from the knowledge database. Users are often given several ways to access the information. However, the system should not be too complicated in a way that discourages users from entering useful data or information.
2.9.1.5 Knowledge Transfer
Knowledge transfer concerns various forms of learning, the creation of a knowledge sharing climate, establishment of training units which assess and analyse training needs, provide and evaluate training, and lead towards learning organisations (Journal of Organizational Knowledge Management, 2010)
Since explicit knowledge is being easily stored in databases and transferred easily, one among the greatest challenges faced by organizations is getting tacit knowledge shared from one employee to another
Some ways to encourage transfer of tacit knowledge are:
Job rotation
Teamwork
Knowledge forums
Communities of practice
2.9.1.6 Knowledge Utilisation
Finally, Knowledge Utilisation is about the deployment of human resources by means of proper leadership, division of tasks and responsibilities, remuneration systems, and performance appraisal. (Journal of Organizational Knowledge Management, 2010)
2.9.2 Sharing Culture
In many organizations nowadays, sharing is natural, whereas in others, this is not the case as the attitude "Knowledge is power" stills prevails. A KM culture requires openness, trust and great empowerment.
Some of the reasons why people don't share are:
People have pride in not having to seek advice from others and in wanting to discover new ways for themselves.
People believe that Knowledge is power, that is, they don't want to share their knowledge in fear of losing their credibility.
Lack of trust is also a common factor, that is, people fear if they share their knowledge, the other person will use their knowledge without acknowledging them as the source
There is also the lack of time to share knowledge since pressure is being applied on deadlines, productivity and efficiency.
On the other hand, some incentives for sharing are:
Develop trust in employees
Motivate employees to share knowledge
Show public recognition for employees who has excelled in sharing. (http://www.skyrme.com/updates/u64_f1.htm)
2.9.3 People Management
Since People is the most important resource in KM, it is crucial that there are motivated employees involved so as to have a successful KM. it is also important that HR practices is aligned with KM, that is, the selection process and recruitment should be carried out in such a way so that recruits who will contribute to the KM process are obtained. For example, knowledge sharing should be a must in a job requirement
Xiaoming and Pandya, 2003, stated that performance management must be re conceptualized in such a way so that contributors of knowledge and the ones using other people's knowledge are rewarded accordingly.
2.9.4 Enabling Technologies
Technology plays a great role in replacing part of administrative responsibility ( Ellig, 1997). There are 3 main technologies that are required to transform HR and create a new infrastructure of HR system. As stated by Barr Tessler, 1998, they are:
HR information system
HR data Warehouse
HR knowledge system
Among the main problem with applying ICT to KM is differentiation between tacit and explicit knowledge. There is also the lack of understanding among HR experts on how technology can help in transformational objectives.
Some of the ICT tools used in knowledge management programmes are intranet, the internet, groupware applications such as Lotus Notes and Mapping tools.
2.10 Choosing the best KM approach
There exist two approaches to KM namely:
Codification approach
Personalization approach
Codification approach refers to storing knowledge, usually explicit ones in databases where it can assessed and used easily by anyone in the company.
On the other hand, personalization approach refers to the extracting tacit knowledge from employees. It involves dialogues between individuals and the sharing of tacit knowledge. One major mean to transfer tacit knowledge from one person to another is through Communities of Practice (CoPs)
CoPs are groups of individuals with similar work responsibilities but who do not constitute of a work team. In these groups, knowledge is created, shared and used. In order for CoPs to reach desired results, the upper management in the hospital must nurture them by providing them with resources and by allowing members the opportunity to participate (Xiaoming Cong, Kaushik V. Pandya, 2003)
Both the approaches can be used, either use the second one to support the first approach (Hansen et all 1990) or use both simultaneously (Snowden 2002)
2.11 HR's Relationship with Top Management, Line Managers and Employees
Since HR is a shared responsibility among top management, line managers and employees, the transformation of the HR function will not affect HR practitioners only. This shared responsibility is shown below.
Top Management creates knowledge such as:
HR goals and objectives
HR policies
Agreed terms of references
Therefore, in order to change the HR function, Top Management would have to agree to alter the above knowledge so as to support the HR transformation
Line managers at the HR department level; on the other hand possess knowledge such as:
Management of staff
Day to day operation
Activities taking place in the function
Working conditions of staff
Once again, the implementation of KM to the HR department will force the line managers to bring about several changes in its work such as, activities such the sharing of knowledge through Communities of Practice can be an example of an additional activity.
Lastly, HR managers, now also acting as KM managers within the function would also have to change its routine of work.
Additionally, a change in the service delivery model of the HR function will require that the line managers are prepared and trained adjust their focus on people management. Employees will be required to make use of shared service centre to perform HR activities. In short, to drive in that kind of change requires the attention of the top management since it is a major organizational initiative.
In order for top management to support the transformation of the HR function depends on the following:
The extent to which it is able to trust the function
The degree of reliability and consistency
Knowledge displayed about people issues
Competence of the HR team
Confidence in its integrity (Reilly and Williams, 2006)
HR must also be able to show a clear link between KM and the bottom line organizational benefit to gain the support of the top management
2.12 Critical Success Factors for HR change
Davenport et al. (1998) identified the following factors for a successful KM project:
Upper Management Commitment
Without the commitment of upper management, it is obviously impossible for any change to happen since it is them who brings new idea, decisions and vision for an organization
Good Understanding of KM Goals by Employee
If KM goals are not understood properly by employees, they would not know how to behave in the company and what to do so as to accomplish the goals.
Motivational Factors
Motivational factors will encourage employees to share tacit knowledge and work accordingly with KM goals which in turn will help in transforming the HR function.
Suitable Organizational Infrastructure
Without a Suitable Organizational Infrastructure that supports HR transformation, it is obvious that there would not be any change.
Davenport also mentioned linkages to economic performance, multiple channels of knowledge transfer and a flexible knowledge structure as Critical Success Factors for HR change.
2.13 Change Management (CM)
As the name states, the transformation of the HR function by implementing KM requires change management theories to be taken into consideration. Change management is also about managing the people-side of change. People usually resist change as they need to give up their habits. The CM team needs to identify, understand and manage resistance within the organization. According to Strebel (1996), employees need to be persuaded to accept new terms of employment relationship in three dimensions namely:
Formal dimension (job description, relationships, etc...)
Psychological dimension (equity of work and compensation, etc…)
Social dimension (values, unwritten rules, etc…)
2.14 Conclusion
The true benefit of HR Transformation lies not in the cost savings that result from streamlining employee transactions, but in how the HR evolution aids effective implementation of the organization's overall strategy (Capgemini, 2007). Different issues dealt with above can be summarized into the figure below.
law1.gif
Figure 6: A Framework for Implementing Knowledge Management
Source: http://www.skyrme.com/pubs/lawlib99.htm
In our context, enablers would be HR managers trained and specialized in the implementation of KM to change the HR function.
Moreover, in order to succeed, a strong leadership and favorable organizational culture are required. Then KM can be used to align the strategy with what the company knows or creating new knowledge needed to line up with the desired strategy.
Last but not least, the HR function's foundation, that is, architecture must be in such a way to support knowledge creation, codification, use and design of shared systems to share knowledge. In order to accomplish this, processes, people and technology must work together and in line with each other.
