**3. Human resource management and knowledge management: a review of extant literature**

Knowledge as an asset and KM as a process has received considerable attention in the strategic management and strategic HRM-literature, as a means to attain competitive business advantage [3]. KM's effectiveness often depends on HRM processes and on the quality of management's strategic alignment (organization, people and knowledge). HRM must be analyzed as a factor influencing KM implementation [7]. From the strategic HRM perspective, a set of integrative HR practices that support a firm's strategy produce a sustainable competitive advantage. Human capital (skills, knowledge and behaviors) and organizational capital (routine, systems, tacit knowledge) are the most cited resources in the resource-based view literature, which are gained over time and make it difficult for competitors to interpret and imitate [25].

HRM is understood here as a set of policies, practices and systems that influence behaviors, attitudes and performance of organizational members, aiming to increase their competitiveness and learning capacity, to the extent of creating a culture of learning. For example, Gope et al. [8] found that HRM practices, which enhance individual learning, motivation and retention of employees with an intention to boost knowledge-acquisition and knowledge-sharing, improve organizational performance. Their findings also showed that the traditional roles of HRM practices are evolving to support the achievement of talent management goals such as talent identification, talent development and talent engagement. As suggested by Bontis and Serenko [26], employees' capabilities depend on their training and development as well as job satisfaction levels. Arunprasad [25] noted that strategic HRM practices are significantly and positively related to learning outcomes. For instance, staffing and performance evaluation are the factors that significantly contributed to learning dynamics in software firms. Therefore, according to Theriou and Chatzoglou [16], firms pursuing best HRM practices achieve higher performance through designing HR practices that support KM and organizational learning capability, and in return, the creation of organizational capabilities. It is suggested that best HRM practices are not only related directly to organizational capability, but also indirectly related to the processes of organizational learning capability and KM. In fact, HRM acquires a key role in potentiating and facilitating both KM and learning processes [7]. Thus, if HRM is about managing people effectively and if people's most valuable resource is knowledge, then HRM and KM are closely interrelated [10].

Studies of an alternative point of views have examined the type and quality of HRM and KM linkages. It is widely accepted that HRM is not KM [27]. For example, Teece (2000), cited in Svetlik and Stavrou-Costea [10], argues that KM is more multifaceted than HRM because it involves managing intellectual property rights and the development and transfer of individual and organizational know-how. However, Svetlik and Stavrou-Costea [10] stated that HRM and KM share common activities, goals and strategies when creating work units, teams, cross-functional

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*Aligning Human Resource Management with Knowledge Management for Better Organizational…*

cooperation, as well as communication flows and networks inside the organization and across its borders. They proposed an integrative approach between KM and HRM, so that if we compare the KM cycle with HRM processes, we will find that

The literature has for a long time supported the claim that employees are the most important organizational asset, especially when it comes to achieving an effective KM process [12, 22, 27, 28]. Employees are the vehicles for knowledge creation, sharing and implementation. Nilsson and Ellström [12] emphasized that the general organizational success is increasingly associated with identifying, recruiting, managing, and retaining high performers or talented individuals to meet the present and future demands of an organization. Therefore, the core purpose of the HR function is to develop, select and hire people, train and develop the staff, evaluate their performance, reward them and create a culture of learning to support and achieve the business strategy [22]. In fact, human capital advantage stems from having more capable people than the competition [29]. Shaw et al. [30] argue that human capital can meet the criteria of sustained advantage, when HRM investments are aimed at increasing the knowledge and skills of

Therefore, HRM activities, such as recruitment and selection, education and training, performance management and reward systems, are essential for managing knowledge properly [28] and contribute instrumentally to improving the knowledge flow, i.e., acquisition, transfer and its integration in the organization [7]. Zhou et al. [31] found that several HRM practices (namely, internal communication, training and performance appraisals) play an important role in helping firms to build absorptive capacity and to enhance knowledge transfer during mergers and acquisitions. Knowledge sharing practices must be integrated into strategic business objectives, human resources practices, and the organization's culture so as to

Some scholars have highlighted recently "Knowledge-based HRM" including those HRM practices purposefully designed to enhance knowledge processes within an organization [33] with the need to reposition its functions, orienting them towards strategic capacities of knowledge. That is to manage knowledge workers, to construct a value from knowledge and to assess the risk of knowledge loss [7]. For instance, Hussinki et al. [34] divided HRM practices into several categories such as heterogeneous workgroups and brainstorming commitment-based HR practices (e.g., employee empowerment and career development) and knowledge-based

Broadly speaking, HRM should be aligned with KM and organizational strategies, especially as there is a positive relationship between HRM and those of performance and innovation [21, 35, 36]. HR policies should also be evaluated on their ability to foster the application of personal knowledge for the benefit of the firm. Gourlay [37] added that the employees' willingness to cooperate with KM initiatives is likely to be dependent on HRM policies and procedures. Moreover, Kase and Zupan [35] commented that the performance of HRM should be linked with learning, innovation and intellectual capital. It should focus on building social capital and knowledge networks. An advantage of using HRM is that it is built through the maintenance and development of human capital and organizational processes. This gives it a major role in managing social networks, which are essential in transferring tacit knowledge. Hosseingholizadeh et al. [38] added that HR practices have a vital role in supporting knowledge-work within organizations, especially that they empirically confirmed that motivation, ability and the opportunity provided to knowledge-workers influence knowledge application, sharing and creation. HR practices should focus mainly on enhancing employees' ability and motivation for

*DOI: http://dx.doi.org/10.5772/intechopen.86517*

various activities are shared between both.

the workforce and also to tightly integrate the human capital.

encourage and support on-going collaborative behavior [32].

(e.g., recruiting, professional development, and employee retention).

them to contribute individually to KM activities.
