Knowledge Management Implementation, Strategic Human Resource Practices and Organizational Performance Mediated by Strategic Planning

Abstract

This study purpose is to determine the direct effect of strategic HR practices and knowledge management on organization performance, and to examine whether the strategic planning is a mediating variable. This study is conducted at Mandiri Islamic Bank in Malang, East Java. This is explanatory research type, with questionnaire as a tool for data collection. Analysis unit is employee of Independent Islamic banks in Malang. Data is analyzed by path analysis using SPSS. Analysis results showed that knowledge management affect on strategic planning, while strategic HR practices has no effect. Strategic HR practices directly affect on organization performance. Strategic planning mediates the affect of knowledge management on organizational performance. Knowledge management has indirect effect on organizational performance. It is necessary for good planning strategy. Using innovation, opinions sharing, employee’s involvement in decision making process will create better strategic planning, which in turn will affect on organizational performance. Strategic HR practices affect on organization performance because HR become vital resource for companies. Without HR role, automatically organizational performance can not be maximized. Islamic banking leader need to socialize to employees how to apply knowledge management rightly. High SOP allows a leader to motivate and affect subordinates by exchanging rewards with specific performance.