Strategic Positioning of Hrm in the Knowledge Economy

With knowledge management as the strategic intent and learning to learn as the strategic weapon, the current management focus is on how to leverage knowledge faster and better than competitors. Research demonstrates that it is the cultural mindset of the people in the organisation that primarily defines success in knowledge intensive organisations. The paper highlights the importance of people management in the knowledge economy, explores major challenges to HRM in managing knowledge workers, and identifies some key HR strategies for effective people-centric partnership in knowledge management, namely, trusting HR philosophy, institutionalising learning to learn, and fine tuning HR systems in recruitment, retainment, performance and reward management of intellectual capital in a multi-national context. This paper is derived from the author’s forthcoming book on “Managing People in the New Economy”.