Abstract
The effectiveness of human resource management (HRM) in sustaining knowledge management (KM) and the role of both KM and HRM in supporting employee replacement processes are the main objectives of the study presented in this paper. This research through literature review and qualitative case studies examined the impact of KM and HRM strategies on organisational effectiveness during employee replacement program, called Nitaqat in the Kingdom of Saudi Arabia. The lost knowledge as a result of this turnover on a large scale as a 'country scale' is the topic that will be discussed and presented in this paper. Nitaqat as a localisation program that has been forced by the Saudi Ministry of Labour has caused mass employees' turnover, affecting knowledge retention in many private companies. For the purpose of avoiding knowledge loss while maintaining the competitive advantage of intellectual capital, the research investigated KM-HRM links responsible for any adequate employee replacement process. This paper presents specifically the discussion and analysis of interviews done with the HR managers from construction companies to understand the impact of Nitaqat progam within the construction industry in the Kingdom of Saudi Arabia.
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