The Real Digital Transformation In HR Tech: How Global Leaders Can Manage - Global Trade Magazine
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  June 25th, 2020 | Written by

The Real Digital Transformation In HR Tech: How Global Leaders Can Manage

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All executives across the globe should embrace HR technology to represent a complete answer to the need for innovation and continuous learning in today’s global market environment. In doing this, first executives must have an understanding of the concept of knowledge in companies. To analyze knowledge in organizations, there is an important taxonomy of organizational knowledge that needs to be discussed. The following section addresses this taxonomy in depth to set the record straight upon the importance of HR Technology.

Human, Social, and Structured Knowledge

Two prominent scholars that are well known in the Academy of Management, one of the largest leadership and management organizations in the world by the names of David De Long and Liam Fahey argue that knowledge can also be classified using individual, social, and structured dimensions. Executives can categorize followers based on their human knowledge which focuses on individual knowledge and manifests itself in an individual’s competencies and skills. This type of knowledge includes both tacit and explicit knowledge. David De Long and Liam Fahey suggest that this form of knowledge comprises the skills gained by individual experiences, and learned as rules and instructions formulated by executives for followers to use as a guide.

Social knowledge, on the other hand, is categorized as tacit knowledge that is shared so that it can become collective knowledge. Executives can use structured knowledge that emerges informal language from annual reports, memos, and other means of communication to be represented as statements, and is considered explicit knowledge. Therefore, consultants can classify knowledge in this way so that it emerges at three levels—-individual (i.e. human), group (i.e. social) and organizational (i.e. structured).

Executives can implement HR technology to create conducive organizational climates that foster organizational learning in which individual knowledge is shared and utilized. Unshared individual knowledge is like lettuce in the refrigerator—if shared, everyone enjoys it, if not, it could not have any use. In the next section, I present a factor that executives have embraced—–HR technology.   

Managing Knowledge and Innovation through HR Technology

HR technology is an internal resource that increasingly facilitates HR business processes and improves the search for information and knowledge around the company. For example, HRIS (Human Resource Information System) software enables companies to overcome space constraints in communications and promotes the depth and range of knowledge access. HRIS software can be also employed to enhance the conversations and knowledge exchanges between organizational members. Three prominent scholars in the University of North Carolina at Chapel Hill by the names of Andrew Gold, Arvind Malhotra and Albert Segars argue that this knowledge shared through technology could positively contribute to knowledge integration. Executives can apply HRIS software to develop and disseminate information throughout the company which can improve the search for information in order to adapt to today’s uncertain business environment.

HCM (Human Capital Management) software is an important resource for strategic planning for knowledge integration. Robert Grant highlights knowledge integration as a major reason for the existence of a company. This software enhances learning and sharing information by providing access to accurate information and knowledge. HCM software also stimulates new knowledge generation, through transferring knowledge to other members and departments. Knowledge sharing itself can in turn develop more innovative climates and facilitate knowledge creation in organizations. HCM software can, therefore, play a crucial role in improving knowledge creation and transference. Executives can use HCM software to develop an effective learning culture that disseminates knowledge around the company.

HRMS (Human Resource Management System) software can be also used by executives to facilitate of the knowledge creation process through providing the essential infrastructures to store and retrieve organizational knowledge. HRMS software encourages executives to embark on technological facilities to provide new and possible solutions for solving organizational problems and transferring individuals’ knowledge to other members and departments and improving knowledge capturing, storing, and accumulating to achieve organizational goals.

In Conclusion

This article advances the current literature on HR technology and knowledge management by offering novel insights into how better HR technology leads to better knowledge management. Executives can apply HR technology in their decision-making processes in order to investigate various alternatives and options.

Success in today’s global business environment can be more effective when HR technology is effectively applied and widely used to achieve a higher degree of competitiveness. Importantly, knowledge management performance at all levels of the company is positively associated with using HR technology and setting up useful software and systems to enhance strategic decision-making. Executives can implement HR technology by employing IT professionals and allocating more budgetary resources to share and utilize knowledge within companies.

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References

Gold, A.H., Malhotra, A. and Segars, A.H. 2001. Knowledge management: An organizational capabilities perspective. Journal of Management Information Systems, 18(1), 185-214.

Grant, R.M. 1996. Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(S2), 109-122.

Long, D.W.D., & Fahey, L. (2000). Diagnosing cultural barriers to knowledge management. The Academy of Management Executive, 14(4), 113-127.