Human Resource

1 INTRODUCTION

XXXBank had grown since its inception in the early 1990s. In order to improve business performance, it sought to create a truly global networked bank by integrating and encouraging knowledge sharing across its internal boundaries.

Working towards achieving this knowledge management (KM) vision, the corporate business strategy committee of XXXBank recommended the development of a global communication network linking all of its businesses using Intranet technology.

The following sections address the current situation of XXXBank in its lack of HR involvement in implementing the KM system:

1.2 HRM AND CULTURE

There were no attempts by the central HR department to change the existing culture in which sharing information with others would reduce the power that knowledge had given those individuals and departments. Culture change involves introducing initiatives that would transform people's attitudes and behaviours.

There was a decentralised culture, which was reflected in the hands-off role the senior management took in developing the Intranet. HR must take some of the responsibility for not taking a lead role. It merely agreed with senior managers what the culture would look like in respect of being a Learning Organisation and the actions needed to be taken. A learning culture must be one in which a few mistakes and risk-taking is tolerated.

1.3 HRM AND INTRANET/ KM PROJECTS

Significantly, by not involving HR in the initial Intranet pilot scheme or many of the other Intranet/ KM initiatives, the emphasis of each project became too technically driven. There was a focus on testing the infrastructure rather than dealing with people management issues such as gauging how enthusiastically employees would respond to the idea of knowledge sharing using Intranet technology.

1.4 HRM AND SUPPLY & DEMAND OF KM

The supply-driven attitude at XXXBank towards KM meant too great an emphasis was placed on using the IT based tools to supply the knowledge in the hope that someone would use it. GTSnet was an example of an IT system in which no one was using. People needed to be motivated to use the systems and share the knowledge. HR needed to develop initiatives in which KM would become more 'demand-driven'.

Although this issue was recognised by the project manager of IWEB, no one in the team was charged with trying to address the people issue as the focus was exclusively on developing the technology.

1.5 HRM AND WORKSHOPS

It seemed that the best efforts to deal with people management issues were attempted by the Supportweb project team where they recognised that groups would need to be encouraged to share their knowledge. To encourage this, they organised a series of voluntary half-day workshops to address these issues. However, evidence suggested that resources had been invested in resolving the technical problems of the Intranet system rather than the people management issues. HR was either not involved at all or was not given the resources to take a full part in these workshops.

There had been people within XXXBank's HQ who felt Intranet projects needed to be fully co-ordinated and to facilitate this they convened a two-day KM workshop involving technical and business experts. Setting up this workshop should have been the responsibility of HR and they should have ensured that those attending remained for the entire duration of the training. It seemed that those with business expertise left after the first day and as such, on the second day only technical issues were discussed. The scope of the workshop seemed to stress that the development of the Intranets would remain decentralised. HR needed to ensure that the knowledge sharing culture would be emphasised at meetings. Minutes should be recorded at all times and the necessary action plans to be carried out and reviewed.

1.6 HRM AND RECRUITMENT, SELECTION AND NETWORKS

One of the key roles played by HR is recruitment and selection. At XXXBank, HR should have been represented on all KM projects (especially the Intranet steering committee) as well as the recruitment and selection process; indicating who should be involved and designing the selection criteria. There was clearly no involvement of HR in the current system, hence the overall design and implementation of KM project was weak.

The selection process took on an unsystematic approach, leaving a shortfall of skills and expertise on various projects. For example, GTSnet had people without banking knowledge pertaining to XXXBank's processes, Officeweb had no technical expertise and IWEB's team lost track of their main objective due to a lack of leadership.

1.7 HRM AND REWARD STRUCTURE

Another main role of HR is the setting up of a Performance Management and Reward System that recognises and supports individuals and groups that share knowledge.

At XXXBank the current system did not encourage this as it generally rewarded individual people for their expertise rather than sharing of their knowledge. Departments were measured against business performance targets and rewarded if they exceeded them but were punished with reduced resources if they were not met.

Therefore, the existing reward system promoted a 'knowledge protection' culture in which electronic fences were built to hide knowledge both individually and at a group level as opposed to knowledge sharing.

2 INTRODUCTION

To achieve XXXBank's KM vision for the future, four key areas have been identified, namely:

a) Organisational Culture;

b) Recruitment and Selection;

c) Training and Development; and

d) Performance Management and Reward Systems.

In order to achieve successful implementation of KM within XXXBank, the HRM Strategy will be designed based on the above four Pillars

2.1 KM AND ORGANISATIONAL CULTURE

Part of HR role in KM lies in managing and/ or advising on the management of the organisational culture. In the first step of the process, HR would conduct