Matching knowledge management and human capital management: Towards an integrative framework

Abstract

The rapidly increasing economic dynamics that global market poses to modern organizations combined with the emergency to attract, develop and retain the best human capital (HC) led to more effective approach to knowledge management (KM). HC becomes the center of KM while the distribution of knowledge among organization's employees is considered its main activity. Effective KM use requires the ability to choose among all skills and knowledge those which contribute to creation of organizational key processes and activities. KM and Human Capital Management (HCM), two highly popular topics in current management discussions, are often bracketed together. An extensive literature review shows that knowledge plays a background role in HCM discussions, emphasizing the impact of KM practices on leadership, creativity, motivation, new ideas generation, recruitment, and employee competence. Some gaps are diagnosed in terms of absence of literature regarding an holistic approach to HC and KM processes, given the fragmentation on findings between the research in the two areas. The literature review of both KM and HC provides a deeper understanding of how KM practices contribute to develop, retain and renew organization’s HC, as part of a broader and more integrated effort to manage and develop human capability for business performance. Taken together, these two research domains are matched in a framework that intends to support the implementation of KM practices in order to promote HC development. A survey was administered to eight portuguese healthcare institutions to infer the most relevant KM practices to impact HC level contributing to the framework.