Hrm in the Knowledge Economy
Knowledge is becoming a critically important resource in business organizations. And human resource management is the pillar for any organization. Managing human resources effectively has become vital to organization within the modern and fast-paced business environment. In order to survive in the current competitive environment it is mandatory for every company to recruit the right sorts of people in the right place. Now the question is why this word “right’’ has been used in here? Because if we recruit a driver to serve the customer in the check out and a person for driving the lorry who does not even know how to drive then we cannot expect the right jobs done by these people. Since today’s economy is the knowledge economy so I decided to show the relation between human resource management and knowledge economy.
Knowledge is defined by Sanchez, Heene and Thomas (1996) as “the set of beliefs held by an individual about casual relationship among phenomena.’’ Alvin Toffler (2008) said “Knowledge is the most democratic source of power.’’ This paper indicates the relation between Human resource management and the Knowledge economy. So we need to know what is knowledge economy and Human resource management.
Knowledge economy is an economy that increasingly bases its economic activity on value enhancing knowledge rather than limited natural resources. It has always been important. It is becoming more important now because there has been acceleration in the creation and dissemination of knowledge.
Human resource management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.
Besides capital, labour, land and organization, knowledge is the great fifth production factor in our economy. Nowadays it is the most precious of the five factors, because it