TQM POTENTIAL MODERATING ROLE TO THE RELATIONSHIP BETWEEN HRM PRACTICES, KM STRATEGIES AND ORGANIZATIONAL PERFORMANCE: THE CASE OF JORDANIAN BANKS.

Author:Alkhazali, Zeyad
 
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INTRODUCTION

The part of an organization's activities that is concerned with selecting and recruiting, training, developing and managing employees activities towards achieving organization's objectives; is regarded as human resource management (HRM) practices (Wall & Wood, 2005; Wright & Boswell, 2002; Wood & Wall, 2002; Armstrong, 2009). Thus, HRM is concerned with employee dimensions towards realizing the objectives of an organization in a workplace (Arshad et al., 2014).

Effective HRM practices and systems focus on the organizational performance level of the business and prevent it from being lethargic (Khilji, 2001). They also emphasize that an organization's effectiveness is proven by a strong bundle of activities and practices targeted at capitalizing on its strengths (Arshad et al., 2014). In this regard, HRM gives a better sign of support to the top management before the time of selecting and hiring suitable personnel, managing, and training them to meet up with the requirements needed to improve organizational performance.

Effective HRM practices are considered as the assurance of continuous survival and performance of the organization (Guest, 2011; Bjorkman & Budhwar, 2007). The varying nature of humans makes HRM practices a complex task (Bamberger & Meshoulam, 2000). Therefore, it is highly important for organizations to focus on strengthen their HRM practices and systems (Schuler & Jackson, 2005). Thus, Achieving better organizational performance requires successful, effective and efficient exploit of organization competencies and resources to create competitive advantage locally and globally.

HRM practices on selection, training and development, compensation, performance appraisal, incentives, promotion, participation, work design, communication, involvement, employment security, and so on must be formulated and implemented by HRM practices experts with the help of line managers to achieve efficiency, cooperation among employees, cooperation with management, commitment, motivation, retention, satisfaction, presence, and other organizational performance success attributes. Organizational performance is an important result that the management and shareholders will use to evaluate the business processes and organization's activities. It is important because a perfect performance would give the shareholders and the investors' confidence in management and thus secure a sustained and profitable organization future.

Organizations that are responsive to changes in the business environment are more able in gaining competitive advantage. Organizations usually look at knowledge management strategies as an empowering means to improving organizational performance, however the processes of knowledge creation, storage/retrieval, and transfer by itself, do not necessarily lead to that preferred enhanced organizational performance; however, effective knowledge application does (Lam et al., 2011; Brewer & Brewer, 2010; Andolsek, 2014).

Organizational performance often depends on the organization's ability to empathize on transforming knowledge into effective use on work, and less on knowledge itself. Adopting best practices and sharing knowledge. Therefore, KM has to infuse into the way people interact in the organizations. In this regard, KM strategies and HRM practices are to be integrated as a vital theme in management and business research for the past decades due to its potential to ability and gain to sustain organizational performance (Lam et al., 2011; Brewer & Brewer, 2010; Andolsek, 2014).

In business firm, KM strategies and HRM practices integration formulates a strong and powerful tools to quantify ways business firm functions. Several examples in the literature have highlighted how the integration between KM strategies and HRM practices has enabled many organizations to achieve sustainable organizational performance (Arunprasad, 2016) and to sustain development (Gloet, 2006).

The triple dimensional attempt of testing variables in this research, aims to investigate the potential moderating role of total quality management (TQM) on the relationship between human resource management (HRM) practices and knowledge management (KM) strategies towards organizational performance of Jordanian banks. Results of such investigation could help seeking ways to create a synergic combination between TQM, HRM practices and KM strategies implementation to enhance their manager's practices towards increasing productivity and effectiveness for sustainable organizational performance.

SCOPE OF THE STUDY

This study attempts to investigate within the following scopes:

  1. This study is quantitative in nature and the data were collected at one time (cross-sectional), specifically from heads of department in Jordanian banks.

  2. This study makes use of the self-completion questionnaire in the collection process. Data for this study was collected from heads of department in Jordanian banks.

  3. The research framework in this study is limited to identify variables: HRM practices, KM strategies, TQM and organizational performance.

LITERATURE REVIEW

HRM Practices and Organizational Performance

Human resource management practices are effective management of people at work. Because human resource is a potentially important source for sustainable competitive advantage, its management well helps to create unique competencies that differentiate products and services and consequently drive competitiveness. This link, in essence, facilitates a successful corporate performance. The growing body of work contains arguments that have a positive relationship between so-called "high performance work practices" and different company performance measures. "High-performance work practices" include comprehensive recruitment and selection procedures, incentive compensation and performance management systems, and extensive employee engagement and training (Racelis, 2015).

Some studies have found positive relationships between HRM practices and policies, and various company performance measures. For example, significant positive correlations have been found between the use of staff organizations in human resources and both annual profits and profit growth among cross-cutting industries. Likewise, links have been shown between high performance work practice systems and short-term measures of corporate finance performance (Racelis, 2015).

Nigam et al. (2011) examined the relationship between HRM practices and performance taking India Service Sectors as a case, they explored the three approaches in HRM practices including universalistic, contingency, and configurations remain in the Indian setting, using analytical approach. The findings show that positive relationships exist between HRM practices and its effectiveness.

Business strategies also have an influence on the relationship between HRM and its effectiveness but, HRM practices universal theory is ineffective in the case of the Indian services sector. It proposes to increase the transport and industry that allows IT to more strategic HR capabilities required. Nigam et al. concluded that HRM practices should be dynamic and contingent in the business strategy to achieve maximum impact on effectiveness performance (Nigam et al., 2011).

KM Strategies and Organizational Performance

Nawaz et al. (2014) investigated the impact of knowledge management strategies on firm performance. Data was collected from 407 manufacturing organizations and analyzed using SPSS. The research aimed to find the impact of three knowledge management strategies that are knowledge acquisition, dissemination of knowledge, and response to knowledge of innovation and firm performance. The results showed that there is a positive relationship between the variables studied and innovation partially mediates the relationship between knowledge management strategies and firm performance. The limitation of this study was that it did not consider the impact of size, and therefore there is need of a comparative study on the basis of size (Ha et al., 2016).

Knowledge Sharing cannot be limited just in sharing information. The main purpose of knowledge sharing in about its effective using that can be the core of its essential expected help to the whole organization while achieving its business goals. In this regard, Nawab's research identifies a number of barriers causing incomplete sharing process. These barriers includes: disadvantaged knowledge of knowledge, culture and language, lack of time and place of meeting, narrow idea of productive work, status and rewards go to knowledge owners, lack of recipient absorptive capacity, knowledge-related beliefs to certain groups, and an intolerant attitude toward mistakes and shortcomings (Nawab et al., 2015).

KM procedures identified with the conversion and protection of knowledge is those that bring about to make existing learning helpful. Procedures related to knowledge conversion and protection incorporate organizational capabilities to strengthen, assimilate, join, structure, coordinate, and convey learning. Information obtained from various assets within and outside the association is ineffective if it is not converted into a gainful practicable structure. It will upgrade yield and business forms (Cho, 2011).

For Kongpichayanond, knowledge application procedures are those expected for actual utilization of learning. Not much information is in hand about consequences of learning application in the literature. It is a presumption about information application and no unequivocal confirmation. It is expected that if an association can make learning it will be connected viably (Kongpichayanond, 2013).

Learning application qualities are capacity, recovery, application, commitment, and sharing. This is the main part of information administration. The value of individual information and KM controlled...

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