Modeling Effects of KM and HRM Processes to the Organizational Performance and Employee’s Job Satisfaction

Abstract

There have been many literature focusing on Knowledge Management (KM) contribution to the business world, and there is still a lacuna of empirical studies related to KM and Human Resource Management (HRM) practices. This paper examines the effects of KM and HRM practices relating to the organizational performance and employee’s job satisfaction level. A theoretical model is proposed to identify significant relationships and to develop some hypothesis. These hypotheses are then tested with a structural equation modeling using a randomly selected survey data set of 150 respondents, where variables in the questionnaire have been considered from previous empirical studies. Results demonstrate significant positive effects of KM and HRM practices to the organizational performance. Finding also reveals that employee’s loyalty to the organization depends on employee’s job satisfaction which is highly influenced by the organizational performance. Although the sample is limited to a Bangladeshi organization, the new model can be employed to datasets from other developing countries.