Human resource management challenges in knowledge-intensive sectors Essay

Human resource management challenges in knowledge-intensive sectors and solutions - Essay Example Based on this research human resource management (HRM) is of crucial importance for the optimum functioning of the organisation, irrespective of whatever sector they operate in. As the organisations in all the sectors including knowledge-intensive sectors will have humans or employees, human resource management is inevitable. With the organisations in the knowledge intensive sectors maximally dependent on the employees and their intellectual assets than other sectors like manufacturing, service, etc., (which could have use of infrastructures and machineries), HRM has to play a major role to solve all the HRM centric challenges. In any organisation, Human Resource Department (HRD) in association with other departments will play a variety of roles. HRD as part of HRM will select of the right people for the right jobs or designations through aptly conducted recruitment drives. Then, they have to provide a healthy and effective work environment for them to exhibit high productivity. Effe ctive work environment in the sense, the employees can be made to work as part of teamwork, can be involved more in the decision making processes and importantly could be given timely incentives so that their efficacy levels are always at the peak. All these key aspects have to be taken by the organisation or the management with good inputs from the HRD in line with optimum HRM. Workers are the integral part of any successful organisation and that includes Knowledge-Intensive Firms (KIP). This paper will discuss the HRM centric challenges and problems that will normally arise among the employees in KIPs, and importantly discuss how it can be solved, thus making the employees provide optimum productivity and thereby keep the operations of those firms, running in a smooth, well lubricated manner. Knowledge-intensive sector or Knowledge-Intensive Firms (KIPs) The concept of KIFs is apparently distinct from other organisational categories or organisations in other sectors. This is becau se in other traditional organisational categories, the emphasis will be more on the raw materials, capital, machineries, etc., with employees and their intellectual assets playing a complementary role. However, in the case of firms in the Knowledge intensive sectors, their entire operations will depend on humans and their knowledge. â€Å"KIFs are generally considered to be diametrically opposite to traditional manufacturing firms in that the knowledge rather than physical or financial capital is central to the companies’ existence† (Jorgensen, Becker and Matthews 2009, pg. 451). Thus, the firms operating in the Knowledge Intensive sector carry out their operations based on the professional knowledge exhibited by their employees. That is, using the knowledge of the employees, they mainly provide knowledge based support, service and even products for other business processes. As stated by Rylander and Peppard (2005, pg.4), â€Å"KIFs are characterized as organisations where well-educated and qualified employees form a major part of the work force and engage in mainly â€Å"intellectual work†. Certain organisations, which do and provide these types of works or services comes under this knowledge intensive sector. For example, consulting organisations, financial companies, law firms, private banks, architecture companies, etc., comes under this sector because these companies will use their employees’ knowledge and data analysis skills to provide service to the other businesses or clients. Because of this main focus on the employees and their knowledge, more than their physical skills, their mental abilities will be focused. Thus, these firms will have a different employment structure than the traditional firms. For example, â€Å"their employment structures are heavily weighted towards scientists, engineers, auditors and other experts in specific fields.† (Metcalfe and Miles 1997, pg. 8). Thus, it is clear that the organisation al and employment struct