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Human resources management practices on knowledge management in social security organization
Atousa Tahvildari1, Morad Rezaei Dizgah*2
1. M.A، Department of management، Rasht Branch, Islamic Azad University, Rasht, Iran
2. Assistant professor, department of management, Rasht Branch، Islamic Azad university، Rasht, Iran
* Corresponding author: E-mail address: [email protected]
Received: 10 April 2015, Accepted: 20 May 2015, Available online: 17 June 2015
Abstract
The purpose of current research is effect human resources management practices on knowledge management in care and insurance units of social security organization in Guilan province.
Statistical society of research is 38 units and sample size was 32. For data collection questionnaire was used and for assessing reliability of questionnaire Cronbach alpha and content validity was used for assessing validity. For considering hypothesis of research Pearson correlation coefficient was used, for fitting model of research model confirming factor analysis and structural equation modeling was used. Findings show that human resources management practices (job design, team work, staffing, career development, training, performance appraisal, compensation) and knowledge management are meaningful.
Key words: Human resources management practices, knowledge management, job design, team work, staffing, career development, training, performance appraisal, compensation
2 Introduction
Many authorities believe that survival of organizations is impossible without paying attention to knowledge management and know the secret of survival of organizations in current competitive environment as paying attention to knowledge management (Varen & Tomas, 2001). Knowledge management is the process of creating value from unseen assets of an organization. These intangible assets or knowledge are counted as a fundamental factor and vital source of organizations and future competitive excellence are appeared in the form of ability of organizations in KM and physical and financial capitals are replaced by thinking and mental capitals (Najaf beige et al, 2011).
Social security organization as the greatest organization of social security in country among 34 Million main subordinate insured people that includes services of insurance and care, are not excepted this rule. Due to dimension of operations and variety of services and geographical dispersion of branches and centers of health for improving performance and using available knowledge, it is needed to make proper situation for knowledge flow in the organization.
Extensive changes in current era shows the importance of its fundamental strategic element that is effective and responsible human resources. Knowledgeable people of the organization are not only a factor for excellence of an organization toward other organizations but are counted as constant and axial competitive excellence. Therefore benefiting this great capital, attention to all stimulating dimensions of this unique factor and its growth cause improvement of performance and effectiveness of the organization. Experiences of knowledge establishment in organizations that are based on knowledge shows that management of effective knowledge needs significant change in culture and values, organizational structure and system of service compensation (Afkhami et al, 2011).
Davenport (2002) believes that the role of staff at implementing knowledge management is significant as KM is management of people and giving reward and making motivation in staff leads to stimulation and strengthening positive behavior fin the direction of implementing effectiveness of KM.
Regarding significant importance human resources practices for competitive excellence of organizations in varied and knowledge-based environment some researchers hay paid attention to considering determining factors of choosing human resources practices and its effect on organizational result such as utilization, efficiency and financial performance (Bromand and
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Ranjbari, 2009). Previous researches between human resources practices and result of organizations such as utilization, flexibility, performance, personal and organizational success, organizational commitment, shows meaningful connection (Allameh et al, 2010). It is expected that HRM practices affect ability of staff including learning and growth. Also it is expected HRM practices affect opportunities of staff such as creating atmosphere of reliance and cooperation in common relations. Thus it is expected resources practices has positive relationship with knowledge creation through effectiveness on knowledge share in the organization (Pastor et al, 2010).
Finally the question of study: Is there relationship between HRM practices and KM in social security organization health and insurance units of Guilan province?
Literature review
Human resources management practices
Extensive changes in current era shows the importance of its fundamental strategic element that is effective and responsible human resources. Knowledgeable people of the organization are not only a factor for excellence of an organization toward other organizations but are counted as constant and axial competitive excellence. Therefore benefiting this great capital, attention to all stimulating dimensions of this unique factor and its growth cause improvement of performance and effectiveness of the organization ( Rohani and Doaei, 2011).
Human resources practices are defined in three area: job enrichment, empowerment and condition of reward-performance (Aykan, 2009).Neo et al (2000) stated that HM, has functions that should be considered to maximize organizations’ performance. These functions include;
human resource planning, employment, selection, education and development of staff, system of service compensation, performance management and relations of staff (Edvardson, 2007;
Kovanji et al, 2012). Strategies of HRM need combining business strategies. By these strategies staff are considered as active, powerful and developed reliable and cooperative people and their reciprocal cooperation, motivation and leadership is emphasized (Ishak et al, 2010). Functions of HRM can be constant through facilitating development of capabilities that are special for the company (Minbava, 2005).
In this research the meaning of human resources is job design, team work, attraction, job development, education, performance evaluation and service compensation (Jimenz and Valeh, 2013).
4 Knowledge management
In the view of nonaka knowledge is the most important strategic asset of an organization (Kovanji et al, 2012) that should be managed. Knowledge management is all processes that knowledge is identified, acquired and saved because of that (Ahmad et al, 2012) and is used in the organization for perceiving and applying knowledge strategic resources (Allameh et al, 2012). The goal of knowledge management is utilization of thinking assets for increasing utilization, creating new values and enhancing capability of competition.
Nowadays knowledge management can be defined as competitive resources that required skills for it should be learnt by organizations (Allameh et al, 2012).Many definitions have been presented about knowledge management. Knowledge management in a simple definition is:
knowledge management is a scientific field that strengthens method of having mutual support for creation, possessing, organizing and using information (Amin Bidokhti et al, 2010). Knowledge management is the process that helps organization to choose organize and distribute the most important skills and information needed for doing their activities and transfers it to others (Aghaei et al, 2011).
Knowledge management is studying strategy, process and technology for acquiring choosing, organizing, decision and application of specialties and vital information for business in order to improve quality of decisions and utilization of organizations. In a general level, knowledge management can be defined as a set of process that supervises creation, distribution and utilization of knowledge. This definition needs creating organizational supportive structures, facilitating relations of members, using tools of IT in network and explaining knowledge. KM has a lot of benefit for organizations. In personal level KM makes staff possible to enhance skills and experiences through cooperation with others and share their knowledge (Amin Bidokhti et al, 2010). In organizational level, KM has four main benefits for an organization; enhancing performance of the organization through efficiency, utilization, quality and innovation. Therefore KM is counted as a competitive strategy and privilege (smith and Eskorink, 2005; Jaha, 2011).
I current research KM includes index of knowledge acquiring, knowledge interpretation and organizational memory (Haber, 1991).
HRM practices and KM
The point that what factor causes success of establishment of KM in an organization is an important question that has occupied researchers of management. In different studies that have
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been done by researchers of management, factors such as organizational structure, IT, external environment have been considered (Daneshfard and Shahabinia, 2010), but the important factor that has been considered in some researches is the factor of HRM.
Three important aspects that should be paid attention at creating system of KM are: people of a organization, required technology and culture ( Leebu and Vith, 2001). Increase of importance of knowledge and KM in an organization has been changed into a discussing subject that is in relation with the nature and role of HRM that is used by researchers and theorist differently. It can be said that HRM has high importance at facilitating creativity and innovation. KM is the process through which the organization produces knowledge or thinking capital. KM is the process that an organization creates value from thinking knowledge-oriented assets (Abdirad and Hosseininejad, 2010).
In the process of transferring knowledge, human resource plays important role and helps identification of potential knowledge of people and evaluation and choosing them. By making proper communication we can help the process of transferring knowledge and for this aim we should achieve exact identification and perception. As knowledge transference is done better, the probability of success in education and development increases and it is done through organizational process that leads to facilitating knowledge transference and causes works to be done based on knowledge (Abdirad and Hoseininejad, 2010). In this direction the research has considered the role of HRM in KM.
In a research that has been done by Smith and Skoring (2005) the role of variable of human resource for creating opportunity for interaction of people together and sharing information has been paid attention. Edvardson (2007) states that strategies of HRM and general strategies of the company cause creation of strategies of KM. In a research that was done by Ishak et al (2010) it was suggested which strengthen their culture of KM achieve higher performance. Jaha (2011) considered the importance of functions of human resources at construction of strategy of the organization by considering the role of creating knowledge. Ahmad and Ahmad( 2012) stated that factors of HRM supporting knowledge affect success of KM. Jimenz and Valeh (2013) shows that there is positive relationship between system of knowledge-oriented human resources and each process of KM and it shows that performance of HRM have systems that have different effects on processes of KM.
Research conceptual model
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Therefore research model that is taken from Jimenez and Valeh research models(2013) is as below:
:
Figure 1: Conceptual Model of Research
Research hypothesis
1. There is relationship between job design and KM.
2. There is relationship between team work and KM.
3. There is relationship between Staffing and knowledge management.
4. There is relationship between career development and KM.
5. There is relationship between performance appraisal and KM.
Job design
Team work
Staffing
Career development
Compensation Training
Knowledge management
Performance appraisal
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6. There is relationship between compensation and KM.
Methodology
This research regarding goal is applied and regarding method is descriptive and correlation type.
Statistical society of current research are healthcare and insurance units of social security organization in Guilan province and its volume is 38 units that at error level of 0.05 and approximate variance amount of society equals 0.14, sample volume was estimated 32 units. For data collection 5 questionnaires were distributed among managers and experts of different districts in each organization that totally 160 questionnaires were collected from all units.
Lopez et al( 2004) Tool used for measuring KM and Jimenez and Vale( 2013) Tool were used for measuring HRM practices. All questions were measured with 5-item likert spectrum and content validity has been used. For assessing reliability of questionnaire Cronbach alpha coefficient was used that is shown in table 1.
For testing hypothesis and determining latent variable, correlation test and multiple regression test and structural equation modeling (SEM), and Lisrel 8.50 software were used. In current research in two sections structural equation were used. In first section for fitting models of measurement and in second section for assessing model and meaningfulness of relations between variables. In this research 6 indices of famous fitting was used. Shomakher and Lomex (2009), Showed amount of 1-5 acceptable for index of NC. Acceptable amount for indices of NFI, NNFI, and GFI is more than 0.90 and for index of RMSEA is less than 0.1 and also for RMR it is less than 0.05.
Table1: considering reliability of testing tools
Variable Items of question Cronbach alpha amount
Job designing 5 0.870
Team work 3 0.712
Staffing 3 0.734
Career development 4 0.723
Training 6 0.801
Performance appraisal 7 0.799
Compensation 6 0.804
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KM 12 0.863
Analysis
Result of the following table shows that regarding significant level 0.000 that is less than 0.05, the relationship between HRM practices and KM is meaningful at the level of 95% certainty.
Since correlation coefficient is positive, the relationship between variables is direct. Therefore H0 hypothesis is rejected and H1 hypothesis is accepted and research hypothesis is approved by Pearson correlation test.
Table2: result of Pearson correlation Job
design
Team
work Staffing Career
development Training Performance
appraisal Compensation HRM KM 0.465** 0.570** 0.816** 0.783** 0/634** 0.867** 0.812** 0.889**
Testing research structural modeling (Comprehensive model)
Before considering main model of research firstly models HRM practices and KM were considered separately. Findings related to fitting two models shows that considering models are proper because all fitting indices of considering models are at favorable level.
Partial structural model is the model of structural equation modeling that indicates how hidden variables (and sometimes manifest) affect each other’s. After relative certainty of acceptableness of current confirming factor models in written structural equation we are in a situation that can estimate and test conceptual model of research through structural equation modeling (Ghasemi, 2010). The reason of using this method is that this model has the capability to analyses relationships of all variables simultaneously instead of two by two considerations of variables.
SEM approach is a comprehensive method for testing hypothesis about relationship between observed variables and latent variables (Shomakher and Lomex, 2009). Since research conceptual model is going to consider cause relationship between variables, for providing the possibility of simultaneous analysis of relationship of variables, structural equation modeling was used and in analyzing model Lisrel software that is one identified software of implementing structural equation modeling was used. The results related to indices of fitting full model of research is observable in the following table. Based on the table it is manifested that structural
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model of research is a proper model because chi-square is normally located in favorable range of 1-5. Amount of RMSEA was below than 0.1 and RMR below 0.05 and amount of other indices is higher than 0.90 that all are favorable amount.
Table3: indices of fitting full model of research Fitting index
RMSEA NC NFI
NNFI GFI
RMR
1.88 0.069
0.92 0.90
0.91 0.038
Causal relationship between main variables of research has been shown in two standard and meaningful modes in tables 2 and 3. Calculating meaningful numbers shows that because relationship between HRM practices and KM is meaningful and 0.98.
Therefore hypothesis of research is confirmed and there is meaningful relationship between HRM and KM in social security organization and healthcare and insurance units of Guilan province.
Figure 2: result of analyzing direction of main model of research in standard mode
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Figure 3: result of analyzing direction of main model of research in meaningful mode
Discussion and conclusion
Findings of research show that there is meaningful relationship between job design and KM. The severity of this relationship is 0.465 and significant is less than 5% and in the direction of research of Seyyed Javadin et al (2008) and Modinkati et al (2009). Also there is relationship between team work and KM. The severity of this relationship is 0.570 and level is less than 5%
and in the direction of research of Jimenz and Vale (2013). There is relationship between staffing and KM. The severity of this relationship is 0.816 and level is less than 5% and in the direction of research of Bromand and Ranjbari (2009) and Minbava et al (2005). There is relationship between career development and Km. The relationship is 0.783 and level is less than 5% and in the direction of Abdirad and Hosseini( 2010) and Edvardson (2007). There is relationship between training and knowledge management. The severity this relationship is 0.465 and level is less than 5% and in the direction of Shiva and papsko (2008). There is relationship between performance appraisal and KM he severity of this relationship is 0.867 and level is less than 5%
and in the direction of research of Ahmad and Ahmad( 2012) and Smith and Skoring (2005).
There is relationship between compensation and KM. The severity of this relationship is 0.812 and level is less than 5% and in the direction of research of Jaha (2011) and Ishak et al ( 2010).
11 Result of fitting research model
For assessing relationship between variables in the form of a model structural equation modeling was benefited by using Lisrel software. In first step result related to evaluation of model fitting indices through 6th criteria of model fitting shows that model of direction analysis is a proper model; index of chi-square has been placed in range 1-5 normally. Index of RMSEA model equals 0.069 and located in acceptable range and index of RMR locates in acceptable range less than 0.05 and other index have amounts higher than 0.90 that shows favorability of fitting indices. Also results related to models of measuring two variables HRM practices and KM denotes acceptableness of the model. Calculating meaningful numbers shows that causing relationship between human resource management practices and KM is meaningful and 0.98.
Therefore main hypothesis of research is confirmed and there is meaningful relationship between HRM and Km in social security organization and healthcare and insurance unts in Guilan province.
The most applying result of research is that managers need to manage their organization’s human capital actively through various dimensions of strategic HRM practices in order to stimulate their capacity in acquiring, sharing and knowledge application. For facilitating relationship of strategic HRM practices managers firstly need to identify the importance of KM capacity. Then they should apply strategic HRM practices for stimulating better level of capacity of KM.
Statistical society is suggested to organize human resources and coordinate human resources practices with parameters of KM and pay attention to system of HRM for enhancing learning of staff and creating motivation for sharing knowledge. Also presenting feedback to staff in contrast to working activities of the organization and motivating employees by giving reward for their positive behavior toward KM in organization.
Also regarding the importance HRM practices at enhancing Km statistical society is suggested to enhance the degree of flexibility of jobs in the organization about variable of job design and improve intra job communication. Freedom of work should be valued and participation of staff should be developed in decision-making.
Also for future research it is suggested that other variables and effective parameters on KM like organizational culture and organizational behavior and their relationship with HRM be considered in the form of comprehensive model. The role of mediating variables affecting relationship HRM practices and KM should be paid attention.
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