Strategic fulcrum for a knowledge-based economy: a conceptual 'knowledge-HR' archetype

Abstract

In today's knowledge-based economy, organisation's core competency is built firmly on effective utilisation of human capital, by deploying and institutionalising the firm specific organisation practices. 'Knowledge' is the key to firm's strategic posture and a differentiating factor to leverage on sustained competitive advantage (SCA). This paper depicts the various approaches of strategic human resource management (HRM) practices to enhance the knowledge driven 'learning culture' i.e. organisational learning process. The organisational learning facilitates the human capital in terms of behavioural change, which in turn lead to improved performance of the organisation. The functional outputs of knowledge resource are captured by analysing the learning outcomes such as learning dynamics; organisation transformation; people empowerment; knowledge management and technology application. The impact of strategic HRM practices on learning outcomes are conceptualised as universalistic; contingency and configurational approach, as defined in strategic HRM literature. The universalistic approach portrays the impact of individual human resource (HR) practices on learning outcome. The contingency approach examines vertical fit between strategic HRM practices and knowledge strategy (learning levels). The configurational approach scans both the vertical fit and horizontal fit of policies and practices to reinforce one another.