IMPACTS OF HRM AND KNOWLEDGE MANAGEMENT ON ORGANISATIONAL PERFORMANCE IN MANUFACTURING INDUSTRY

Abstract

Human resource management and knowledge management are considered to be key aspects in the manufacturing industry, mainly owing to the reason that both provide organisations with the benefit of strategic approaches that helps in making better decision-making and implementing better innovation. The focus of the current study is on analysing how the HRM and KM impacts the organizational performance in the manufacturing industry. The KM is the mediator that assess the relationship between the HRM and organisational performance in the manufacturing industry. Theories such as the Knowledge-Based View (KBV) and the SECI model highlighted that knowledge is an imperative critical organisational resources and source for sustainable competitive advantage, along with ensuring that conitnous knowledge is created. Data was gathered from 203 respondents who were Supervisors, Administrative Staff, Middle Management staff working in 13 leading manufacturing firms in pakistan. The impacts were estimated by making use SMART partial least squares structural equation modelling (PLS). The results highlight that HR has a significant impact in delivering organisational outcomes in relation to the knowledge development. Moreover, the result further reveal that HRM practices impacts on KM in manufacturing industry, along with KM showing significant impact on organisational performance in manufacturing industry. The study solely focus on quantitative analysis, highlighting that the relationship of HRM and organisational performance is affected by the KM as a mediator. The recommendations of the study are to improve knowledge usage mechanisms, invest in technology for KM, strengthen the HRM practices further, develop leadership commitment within the organisation, monitor the impact of KM on the organisational performance and ensure that a learning organisation environment is encouraged.