ROLE OF KNOWLEDGE PROCESSES AS A MEDIATOR VARIABLE IN RELATIONSHIP BETWEEN STRATEGIC MANAGEMENT OF HUMAN RESOURCES AND ACHIEVING COMPETITIVE ADVANTAGE IN BANKS OPERATING IN JORDAN.

Author:Shehadeh, Hazem Khaled
Position:Abstract
 
FREE EXCERPT

INTRODUCTION

Human resources management in modern times is considered one of the most important and most sensitive organizational functions in the organization. As it deals with human element, in which organizations can achieve competitive advantages. It is the most expensive resource needed by leadership and management in all its fields and work stages. Furthermore, anyone is concerned about the success of business organizations find that their success lies neither in their use of advanced technology nor in diversifying their funding sources. Business organizations are not just a set of buildings or policies and laws rather they are a group of individuals who share common relationships and interact with each other to perform main tasks and functions aid them in achieving the organization's goals and their objectives. Thus, the human element is the basic basis on which organizational structure is based, and affects and is influenced by a variety of variables in organization's environment (Daft, 2010).

The difference among business organizations must be attributed to different performance among individuals. Technology, markets and products can bring competitiveness to organizations, but human resources sustain them (Caliskan, 2010).

Strategic management of human resources represents an extension of concepts and principles of human capital theory, which emphasizes that individuals are an asset of the organization's assets and that individual differences among them require the organization to formulate a strategy for human resources with clear goals and policies that raise human's element efficiency, improving productivity and supporting the organization's capability to achieve competitive advantage through continuous alignment between human resources strategy, organization's overall strategy and its competitive strategies as well as coordination and internal integration of human resources management practices (Gilani et al., 2012).

In addition, numerous studies have also confirmed that human resources are the most important elements of knowledge creation, its participation and application, whereas knowledge is established and practiced through human resources in the organization and it appears in the production and distinguished performance of the organization. The human resource is the basic generator of knowledge and the main part through which the organization moves from individual knowledge to organizational knowledge, thus individuals are knowledge-makers who generate knowledge as part of their work; they are the strength of intangible assets, which are a source of success and competitive growth of organization.

The practices of the strategy of recruiting human resources with knowledge, expertise and abilities to the necessary level, this leads to creating new knowledge for the organization. These individuals are easily integrated into the organization, have the ability to use and apply knowledge quickly and efficiently. Additionally the strategy of training and learning is the most important tools of change behaviors of individuals, and then generating knowledge and sharing it as well as performance appraisal, reward and compensation strategies represent an incentive for increased interest in creating, sharing and applying knowledge (Chen & Huang, 2009)

Based on above, the research aims at confirming nature of the relationship between strategic management of human resources and achieving competitive advantage. In addition, examining the nature of the relationship between strategic management of human resources and knowledge management processes and studying role of knowledge processes as a mediator variable in relationship between strategic management of human resources as well as achieving competitive advantage in banks operating in Jordan.

THEORETICAL FRAMEWORK Strategic Management of Human Resources

Strategic management serves as an input to strategic thinking at the organization level, not limited to senior management. Strategic direction should extend to include all axes of each of entity of organization's entities. One of these axes is human resources, which focuses on finding the best ways to prepare, create and develop workforce structure and integrating it into the appropriate career tracks for them. In addition to managing human resources within these tracks in a way that ultimately achieves raising performance level of human element, increasing organization's competitive performance.

Strategic management is defined as the process by which human resources management practices are connected to organization's strategic objectives for the purposes of enhancing performance level and developing organizational culture supporting innovation and creativity. (Dessler, 2005) and it is described by (Mathis & Jackson, 2011) as the best use of human resources that helps organization to gain and maintain competitive advantage.

Strategic management of human resources includes an active study of human resources, analyzing and linking it to organization's goals and strategies, so that human element becomes one of the weapons to achieve competitive advantage and improving organization's market conditions and its business results.

It should be noted that the process of preparing general strategy of organization is carried out at the level of organization's senior management or through a specialized team under supervision of senior management.

Moreover, with participation of relevant parties at each stage of strategy preparation, which means that the human resources management is present at each stage of general strategy preparation (Wheelen & Hunger, 2012).

(Sani, 2012) emphasized that we should view at human resource management on a strategic basis and on the basis of systemic concept of human resource management functions, which consider human resource management functions as interactive and related elements that influence and are influenced by surrounding contexts around them. This happens through two levels of compatibility: horizontal compatibility achieving integration among special strategies of human resources management and vertical compatibility that requires achieving integration of human resource strategies and organization's overall strategy.

Functional Strategies of Human Resources Management

Human resources strategies include designing and implementing a set of administrative activities that are linked specifically to organization's needs of human resources, developing its abilities and promoting its efficiency. Furthermore, with a view of maximum benefiting from its efforts and thoughts to achieve organization's strategic objectives and in line with study objectives things that have the most influence in achieving competitive advantage will be presented, they are:

Strategy of Human Resources Formation

It is considered the first step in forming human resources structure and it includes:

Strategy of analyzing and designing functions

It is a process under which, there is information collection and factual facts about the nature of organization's functions. In addition, analyzing, summarizing and presenting them in a form of written lists, showing their tasks, responsibilities and powers. Through psychological, physical and social environment in which they are performed as well as potential risks accompanying their performance and then knowing and identifying necessary human skills and abilities required to perform them (Akeely et al., 2005).

Functions design method has to be linked to the organization's strategy, as it may require new or different tasks or different approaches to carry out same tasks. Organization's strategy effects on designing and determining tasks of various functions/jobs within organization. Additionally, the way in which functions are designed can affect organization's ability to accomplish competitive advantage. If the organization wants to follow a cost-effective strategy, it has to organize its functions in a simple and repetitive manner. This allows organization to hire employees do not have highly skills and easily train them. On the other hand, if the organization wants to compete through price, it may resort to regulate its production operations according to work teams (El-Morsi & Al-Sabbagh, 2011).

Human resources planning strategy

It is considered one of the important strategic functions as it is based on other functions of human resources management. It is related to identifying actual human resource needs of organization in terms of quantity, quality and in a manner in agreement with the mission and organization's strategic objectives (DeCenzo & Robbins, 2010).

In addition, human resources planning at organizational level needs (Abu Sheikha, 2018):

  1. Special data on the current situation that provide sufficient information on organization's employees, such as age, family status, scientific qualifications, practical experiences and special abilities and skills.

  2. Performance rates for various functions in the organization.

  3. Objective and fair measure of total productivity and partial productivity of production elements.

  4. Dynamic system for function/job classification on objective basis.

    Employment Strategy

    Recruitment/employment process is considered a natural extension for human resources planning and a basic tool by which people can be used, chosen and differentiation is made among them, as they can be the most suited to current and future employment requirements. In addition, it is way that enables the organization to achieve competitive advantage exemplified by the quality of human resources that are difficult to be imitated by competitors (Al-Dmour, 2008).

    The source of individuals is internally, which means to looking for people who already work in the organization (internal channels), or it may be externally through external labor market (external channels) (Davies et al., 2007).

    Training and Development Strategy

    Training strategy is regarded...

To continue reading

FREE SIGN UP