Knowledge Management: Tool for Enhancing HRM Practices and Organizational Innovation

Abstract

Knowledge management (KM) is the process of creating, utilizing, sharing, storing and reuse of knowledge for making better organizational decisions due to the availability of relevant knowledge. The proper management of knowledge and proper utilization of human capital helps in creating innovation for running any successful business. Well-structured and well-managed knowledge and knowledge-based human capital leads to innovation that is more constructive. The research proposed in this paper signifies the effects of knowledge management on HRM practices and organizational innovations in different multinationals. To perform this research, a Questionnaire was prepared to collect primary data from 200 employees working at different public and private banks. Different analysis were performed like: The Co-relation was applied to find the effects of how much knowledge management enhances HRM practices and helps in bringing organizational innovation in public and private banks in Pakistan. T-test using two variables i.e. (1) Categorical, which was ‘Organization’ and (2) Continuous variable, ‘Knowledge’ were also used to find the same impact, and it was found that, there is not much significant difference of knowledge management in public and private organizations. The correlation analysis was also performed, and results clearly suggest that a positive relationship exists between knowledge management and HRM practices, which directly enhances HRM practices and organizational innovations.