The effects of the knowledge economy on human resource managementIn the shadow ofModern administrative mechanisms and approaches

Prepared by the researche  : Dr. Moussa Djokhdem – Faculty of Economics, Business and Management Sciences – Amar Telidji University of Laghouat – Algeria-

Democratic Arabic Center

Journal of Human Resources Development for Studies and Research : Twenty-Eighth Issue – April 2025

A Periodical International Journal published by the “Democratic Arab Center” Germany – Berlin

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Abstract

YgoalThis articleTo investigate the impact of the knowledge economy on human resource management, and the required change in the nature of its work to keep pace with the requirements of globalization of management in the knowledge age, and to address various modern administrative mechanisms and approaches that lead to changing the logic of human resource management, so that it contributes more effectively to supporting the organization’s strategy and achieving its goals, thus ensuring competitiveness and continuity in the long term.

            The study shows that the repercussions of the eraKnowledge has direct and indirect repercussions on the functional practices of all business organizations, including the human resources management function and its performance. Traditional practices remain incompatible with the requirements of the new reality characterized by the knowledge economy and its impact, which has significantly imposed challenges and modern trends on the business environment. These trends seek to find the means and mechanisms that contribute to the proper exploitation of individuals’ skills and knowledge.

Introduction:

     The world is now experiencing a wave of broad transformations, a revolution in science and technology, and a broad movement that affects everything. It has never known changes like those it knows today, nor has it witnessed challenges like those it faces, in a way that has led to the creation of new trends that have turned traditional concepts, terms, and practices upside down, to be replaced by others that are more meaningful and effective.,LostGInformation and communication technology (ICT) has permeated most economic sectors and various aspects of human life. The development witnessed by the world is often attributed to the knowledge possessed by each organization, which has become the most distinctive weapon in the battle for progress and advancement.

One of the manifestations of this development is the shift from considering the human element as a mere labor force, to viewing it as a resource that must be invested in and an opportunity that must be exploited, and all decisions related to it must receive sufficient attention.As it isIt is the source of thought and creativity, capable of operating and employing all other available material resources. It is considered the only resource among the organization’s resources that is not subject to depreciation, obsolescence, or imitation. On the contrary, it is constantly increasing and renewing. Given this importance, researchers of various specializations have focused on maximizing its benefits.,Economists called it intellectual capital, accountants called it human or intellectual assets, and researchers in the sciences called it…ManagementWith human capital.         Here, institutions found themselves facing increasing difficulties and major challenges, forcing them to develop their capabilities in order to  Ensuring its survival and continuity. This continuity, in light of the knowledge economy, is directly linked to the extent of organizations’ ability to invest in their intellectual assets, build knowledge capital, and develop their methods.AdministrativeTo achieve all of this, after traditional practices have proven their failure to adapt to the requirements of the new reality, especially those related toManaged byHuman ResourcesThis requires studies that explore the reality of the required changes and the modern methods that must be followed.

ProblematicSearch

    The research seeks to explore the concept ofHuman Resource Management in the Knowledge EconomyAnd from here it becomes clearthat The problemThe main research question can be summarized in the following question:

How does the knowledge economy impact human resource management practices?

To answer this question, some sub-questions are raised that help in:The answerTo the main question:

– What does it mean?h Working in knowledge economies?

– What is the impact of the knowledge economy on the structure of the labor market?

Do traditional concepts meet the requirements of the knowledge economy?

– What and how will the knowledge economy change?Human Resource Management Concepts?

– What are the challenges of human resource management in responding to the requirements of the knowledge economy?

Research importance and objectives:

The importance and objectives of the research are specifically evident in the effort to uncover the ambiguity surrounding the concept of management.ResourcesHumanity in the light of developments in the knowledge economy,The research, in fact, represents an intellectual exploration of a contemporary concept that essentially represents the core of dealing with human resources. It represents an intellectual, organizational, and applied blend of approaches to managing the relationship between the organization’s philosophy and vision on the one hand.,And field application, in light of the fierce and unconventional competition witnessed by global markets, on the other hand. It alsoandThe aim of this research is to contribute to raising awareness among managers of economic institutions of the utmost necessity of taking care ofWith human resourcesIn light of the modern business environment created by the knowledge economy, which imposed a new mentality in dealing with…With him as the most important source of innovation and excellence.        

Firstly:concept Knowledge economyand its effects on work and employment

• Concept and characteristics of the knowledge economy

       Until recently, the Industrial Revolution and the new ideas and concepts it brought with it, It is characterized by the fact that the vast majority of the population is concentrated in the agricultural sector. “This has decreasedThe percentage is half, then a third, then a quarter, then a fifth. In the United States of America, farmers do not constitute more than 2% of the population. Despite the decline in the percentage of farmers, this does not mean a decline in agricultural production itself. Rather, this small percentage of the population, 2%, has the highest rates of productivity in the agricultural sector in the world.[i]Here, a set of concepts related to industry, services, agriculture, and unemployment changed.

        Some researchers point out that the topic of knowledge economy representstopicNew knowledge, On various frameworkseconomic theoryand administrative,Or at the level of practical applications,Despite the modernity of the term or conceptEspecially in Arab countriesWestern studies-Including exploratory and experimental-I have been busyOver the past years, we have learned about its various effects and researched all possible means that would facilitate adaptation to it..

       indicates In thisIn this regard, Peter Drucker said that “the post-capitalist society will be characterized by the fact that the main resource in it is knowledge, not capital or raw materials. This new society includes new classes that differ from what was prevalent in capitalist society. In the first society, there are two classes: capitalistsandworkers,ButThe knowledge society consists of two basic layers::Knowledge workers, service workers.[ii]

     All of this led to the emergence of what is called the knowledge-based economy or knowledge economy, according to Dominique Foray.D.ForayThe emergence of this economy is the result of two factors: long-term concerns that have increased the resources devoted to the production and transformation of knowledge, and secondly, the great influence of new information and communication technology.[iii].Referring to the development of the importance of knowledge and cognitive work, Peter Drucker says:[iv]

• The amount of human labor required to produce an additional unit of output has been declining by 1% per year since the beginning of 1900 as machines have replaced muscle power;
• After World War II, the amount of raw materials required to increase production output by one additional unit began to decline at a rate of 1% per year;
• Since the beginning of 1950 the production capacity required to produce an additional unit has been declining at the same rate of 1% per year;
• The educated labor force increased during the twentieth century at the same rate of 1% per year.

    The Asia-Pacific Economic Community defined the knowledge economy as “an economy built primarily on the production, dissemination and use of knowledge as a fundamental driver of development, wealth creation and employment across all economic sectors.”.^[v]In this economy, Economies’ growth relies heavily on knowledge inputs as a source of added value to the economic system, and this is reflected in changing rules of competition at the individual, organizational, and economic levels.^[vi]

            This economy has many advantages.:

• Knowledge representsIn itA fundamental and decisive source of excellence and success for organizations.Globalization, rapid changes, and competition in a “global market” require attention to the primary source of innovation, achieving excellence, and possessing unique advantages that add special value to customers.
• Relationships between employees have become more complex.There are new types of businesses.It requires each person to develop skills that enhance interconnectivity and communication, and the ability to build and maintain strong working relationships. Virtualization has changed the ways in which individuals interact.

     Whatever is said about the knowledge economy being a “new economy” in its concepts, methods, tools, and growth factors, there is no doubt that it has contributed to changing many of the concepts and work patterns recognized in the traditional economy. The importance of understanding these changes is highlighted by the effects this economy has, especially with regard to job security, and its significant impact on the structure of industry. Therefore, it threatens economic stability at any time, especially since it is an economy characterized by speed, and its fluctuations are often difficult to predict.

• What is work in the knowledge economy?

   According to the report submitted by the Labor Foundationthe work foundationAccording to a comparison from 1995 to 2018, the change in the labor market is driven by three main factors:^[vii]

• The demand for knowledge workers is increasing in most sectors, and knowledge-based industries are growing at a higher rate than other industries.
• Technology drives change, creating and enhancing some types of professions and eliminating others;
• Structural change with a decrease in the size of the workforce specialized in manufacturing industries.

    He seesRory DonnellyThe developments of the new economy and the increase in knowledge work have led to major changes in work and employment, such that knowledge workers are more independent and empowered, and do not depend on organizational membership. They are considered free employees.free agentsThey carry out their work outside the formal organization.^[viii]

  where  He seesMany thinkersThe knowledge economy, with its advanced means, methods and technologies, has produced many implications and effects on work, which are represented in the following aspects:^[ix]

– Technology in general, and advanced technology in particular, has led and continues to lead to a significant reduction in muscular effort, reduced working hours, and provided more free time and rest.

The use of advanced technologies has led to the replacement of mental and intellectual work with physical work to a large extent.

Advanced technologies, methods and means that accompany their use within the framework of the knowledge economy have led to a change in the relationship between the worker, the employer and the work he performs, such that new patterns of work practice have emerged;

– Increased incomes of workers who are able to work in activities that use advanced technologies and methods;

– Given that work performance is linked to a higher level of knowledge and skills, and they receive higher incomes linked to their higher levels of knowledge and skills, which is what motivates them to develop them, and thus the knowledge and skills of workers increase and develop continuously, accompanied by an increase and improvement in their living standards;

The contents of the knowledge economy and the technologies and methods used within its framework allow for increasing worker productivity, increasing income, improving living standards, and enabling development, renewal, and diversification of activities.Economic,Especially those related to advanced technologies, the opportunity and possibility of professional and skill transfer, such that one moves from skills with lower productivity and income to professions and skills with higher productivity and income.

            But what? What does a job mean in a knowledge economy?.

     The writer, Aqil Muhammad Al-Aqil, quotes the definition of the job by researchers (Alvin and HeidiToffler(that it”It is only one way to define work andAs the knowledge-based wealth system advances, we are moving toward a future in which more people will work, but most of them will not have jobs. But what What does that mean?^[x]

     Al-Aqil believes that what the two writers Toffler say has become a reality even in developing countries that have developed.Communications, fast internet and computers have become widespread. We have begun to notice many people with knowledge, skills and experience working without jobs. They are linked to several service providers who, in turn, employ their knowledge, skills and experience in their marketing and executive operations and pay them a lot for that. Thus, they work and generate significant revenues without a job. The new businesses that the era of the knowledge revolution offers are not bound by place or time. Work can be done from the office, home, garden or beach. Shopping, investing and trading can also be done from these places. The knowledge revolution has transferred all of this to the virtual world, which can be accessed and dealt with simply by having a fast internet network and computers equipped with modern software.

• Characteristics of the workforce in the knowledge economy

            The workforce in the knowledge economy has several characteristics, including:

*Multiple nationalities:The resources of the knowledge economy (including labor) are international in origin and global in market. Major companies such asInternational Business Machines(IBM)Beginning in the second half of the twentieth century, it established branches outside the United States and employed foreign staff in these branches, eager to establish a presence on the international scene. By the 1990s, with the growth of the knowledge industry, the geographical boundaries between industries began to blur, and mergers and alliances took place between companies producing various types of knowledge components.

*Increase skill level:The knowledge economy is based on advanced technology, including:DevicesComputers, electronics, and communications equipment have experienced high growth rates and are characterized by high spending on research and development.,Due to the high level of technology, a high percentage of workers in knowledge industries are those who have received high levels of education and training from engineers, scientists and technicians. Thwing and Verdier explained ((2009, Thoenig and Verdier), knowledge labor is characterized by a high level of skills, because globalization leads to increased fears of imitation and encroachment on the monopoly positions enjoyed by the countries of the North by the countries of the South (developing countries).

1. High wage rates for knowledge workers. This is for two reasons:

• The first is the rise in the skill levels of knowledge workers;
• Second: Workers’ unions are now using the internet as a means of serving their members and conveying their messages and grievances to society. This development in and of itself is a significant step forward.effectIn the nature of the labor movement to improvedemocracyUnions and stop the decline in the number of their members.

1. Increase in the number of weekly working hours:This is related to the previous characteristic, as the increased demand for skilled workers in the computer and internet fields has led to higher wages and, consequently, higher weekly working hours (due to the direct relationship between wages and working hours…a supply curve relationship). Freeman (op. cit.) found that workers in the computer and internet fields work 5% to 6% more hours than other workers.
2. Change in employment or job search practicesAs the use of computers and the Internet expandsledAn increasing number of workers and employers are turning to computer and internet services because the internet is the cheapest way to obtain information about jobs in the labor market and to obtain information from job seekers.

    In a report submitted by the British Work Foundation, which included a study concerned with exploring the new rules and concepts of work in light of the knowledge economy, it was found that about 30% fromTasks include:  High knowledge content, and 30% have medium content, and the remaining 40% have simple cognitive content.

            We will summarize the most important findings of the report and study in the following points:[xi]

– Knowledge work cannot be judged simply by looking at the job title.-Y or educational level (20% of people working in jobs that require high knowledge content were undergraduates, and 20% of graduates were working in jobs that require low knowledge content);

– In almost all cognitive jobs, the number of women is equal to the number of men, with clear female dominance in some jobs such as: salespeople, IT trainers, healthcare and health services, etc.;

Some have expressed concern that the economy is creating too many graduates at the expense of available jobs that require their skills, pushing sometoAccepting lower-paying jobs, given to less educated workers, which affects them;

– Although the number of weekly working hours for innovative and expert workers has increased, information and communication technology provides a high degree ofFrom independenceAnd the choice in managing their business, as their work does not require permanent presence;

– Knowledge workers have greater flexibility in choosing their schedules compared to other workers.

On the other hand, especially through the Internet as an important aspect of the knowledge economy, new patterns of work are emerging, especially work from home and what is called self-employment.  Self-employment, as the Internet helps individuals choose jobs such as e-commerce – Forex, for example – and others, and these jobs even provide amounts that may often exceed what a person receives monthly through his work in the company or other, and therefore it is very difficult to calculate the real unemployment rate in this economy, if we take into account that these people have informal jobs, and the challenges this raises for countries, especially the emergence of the problem of tax onBusinessElectronic, as it is difficult to impose a tax on a person who practicescommerceVia the Internet.

Freeman saw the use of the Internet as raising the level of labor solidarity and creating new international conditions.New internationalism links trade unions worldwide with each other and with their sympathizers worldwide throughreceipt newsImmediate employment for those interested.And it became Canlabor unionsreceiptHer grievances to the members and menBusinessThe audience without having to go through channelsMedia, and that wouldthatIt puts pressure on companies to respond to its demands.[xii]

• Knowledge economyRestructuring the labor market:

    The knowledge economy, especially through the introduction of modern technology, leads to important changes that directly affect the labor market, as this has a positive impact on sales and a negative impact on employment, as the economic researcherSusan George showed this in a study she conducted on the most important companies. abovetheNationally, these companies were divided according to their industrial activity and their sales or business numbers were compared to the jobs they create, and the following observations were reached:^[xiii]

• For the electronics and IT sector, the sales of the twenty companies that are among the top 100 companies in the world over the yearsBetween 2015 and 2019, employment increased by 47%, while employment decreased by 1.3%.;
• In the automotive production sector, turnover increased by48%, while employment decreased by1.85;
• In the petroleum sector, the paradox is more evident, as this sector witnessed a rise in turnover by53% but the operation decreased by11.4%;
• Operations increased by a very small percentage (1.9% only) in the services sector, mainly in fast food, tobacco and beverage companies.

                  Some researchers have spoken about the expected effects of the integration of global economies into the knowledge economy, especially when we talk about macroeconomic policies, especially since the information sector has affected all aspects, especially with regard to the gap between the great needs required by this sector,Due to its rapid dynamism, and on the other hand, the insufficient outputs of its various education, training, and development systems, particularly in developing countries, are being generated. On the one hand, information technology has contributed to the disappearance of many traditional jobs, thereby increasing the number of unemployed. On the other hand, it has opened the door to many new, related jobs, making efficiency a key criterion for evaluation and hiring, and opening the door to a new type of competition: the competition for knowledge.

    A pioneer in this field is the American economist Wolf.WolffHe published a precise analytical study on the impact of the economic shift towards computerization on the structure of the American labor market for the years between (1950-1990), a period in which the communications and Internet revolution had not yet crystallized, and he published aRustThat’s a year2016The total labor force was divided into 267 occupations, in 64 industries, classified into three groups: the knowledge labor force(knowledge workers), data workers, good and services workers, and make the information workforce the sum of the knowledge workforce and the data workforce.[xiv]

    Wolf found that the information workforce grew during the study period at a rate of (3.1%) annually, compared to the growth rate of the commodity labor force, which amounted to 0.3% annually during the same period. Wolf concluded that the total growth of the labor force canthatIt is attributed to three reasons:[xv]

• Substitution effect: It means the extent to which different industries replace traditional labor with information labor.
• Production effect: It is based on the change in productivity growth between different industries.
• Output effect: It is based on the change in the composition of the final output of different industries.

    Wolf found alsoThe effect of substitution was the direct cause of 50% of the increase in the size of the information workforce, meaning that the increase in the information workforce resulted from employers replacing traditional workers with information workers in their establishments.

The Internet has contributed to reducing the severity of unemployment in terms of its use of electronic employment, which is one of the most important current services available in the labor market system, and aims to narrow the gap between employers and job seekers through the use of electronic channels (the Internet), and this service helps to reduce what is calledinEconomic literatureforFrictional unemploymentFrictional UnemploymentThis is the type of unemployment that is mainly caused by the absence ofInformation on both sides of the labor market – job seekers and employers.

      The new website is a successful simulation of the largest international websites specializing in online business markets and embodiesA promising project that will contribute to solving the widespread unemployment problem in the Arab world by providing the opportunity for Arab professionals and specialists to complete paid work throughInternet.

   In short, modern information and communications technologyNTIC has accelerated the dynamism of the labor market, changed the structures of industries and thus the patterns of competition on which economic growth depends, andACountries, especially developing ones, must accelerate the process of integration into this new dynamic and keep pace with its developments.

And so he seesAbdul Rahim Fouad Al-Fares thatDevelopments in knowledge technologyprogressOpportunities for economic development in developing countries through what The following:[xvi]

1. Countries with the right mix of skills, infrastructure, and policies can be important sources of intangible products or knowledge products in general. Countries likely to benefit include Brazil, China, Costa Rica, Malaysia, and Romania.
2. Economic development is accelerating as a result of technological advancements and the reduction of some costs by exploiting the achievements of others.Leapfrogging.
3. Fighting poverty using communication networks, as the use of knowledge technology allowsActivitiesIt facilitates the livelihood of the poor and gives them an opportunity.To deliver Their voicesAnd inform the concerned authorities of the poorTheir conditions.
4. Increased general well-being: In the study conducted by Hitt and Brynjolfsson (2015, Hitt and Brynjolfsson) and included423facilityAmericanMajor researchers found:thatInvestment in knowledge technology increases productivity and consumer surplus (welfare). However, they found that it did not lead to a significant increase in firm profitability. They attributed this to the rapid spread of knowledge investment and its imitation by competitors.    

secondly:-administrationHuman Resources: What Concept in the Knowledge Economy?

       What is noticeable in this economy is the increase in the knowledge workforce. This is due to several factors, including: creativity, globalization, consumer culture, and other determinants of major socio-economic change, as it affects, through a complete cycle, economic growth, through important changes affecting markets and industries – the industrial structure – and then affects jobs, work patterns, and organizational patterns through the emergence of new types of organizations such as virtual organizations. So, in this economy, the characteristics of the workforce change, the determinants of growth change, and consequently, the determinants of competition change, so that competition becomes over knowledge and skills, which makesadministrationHuman resources in business organizations are at the heart of change and a new reality, which imposes challenges and roles and requires a reconsideration of many concepts.

    Many researchers have said that there is a need to renew the concepts.administrationHuman resources in light of the developments of the knowledge economy, and everyone sees    C.Iulia & D.POPESCU  It is necessary to accept the idea thatadministrationHuman ResourcesTSelf-renewal through its contribution to the effectiveness of the relationship betweenadministrationHuman capital and knowledge management in the organization[xvii]The researchers add that the role ofadministrationHuman resources in the knowledge economy must expand to include both outside and inside the organization, and the researcher addressesHall Mark  And others, the subject of new roles in light of the knowledge economy and the changes it imposes on the work approach.administrationHuman Resources in a valuable book entitled “administrationHuman Resources in the Knowledge Economy: New Roles, New Challenges, New Skills” An attempt to answer an important question It is: How can that be?TadaptationadministrationHuman resources with the requirements of the knowledge economy?

They believe that in light of this economy, many things will change within the interests ofadministrationHuman resources including:[xviii]

• Intellectual capital is not the property of the employer, but rather a commodity that is bought and sold in intellectual capital markets.
• administrationHuman resources mustIncludesThat human capital is available, skilled, effective, and value-adding;
• There is a needTo manageKnowledge workers (generating, disseminating, applying, and storing knowledge);
• He should careadministrationHuman resources embrace networks and communities of engagement around the organization’s strategic objectives to ensure competitiveness.;
• There is a need to develop new ways to reward individuals, linked to their cognitive performance.;
• The problem of measuring cognitive work,That is, how to measure the contribution of individuals, which is primarily cognitive, in achieving strategic objectives. Here is another problem related to how to evaluate these individuals;
• How can human resources be qualified and developed in?The organizationIn a way that enhances the creative process to ensure competitiveness.

                 Here another challenge arises, which is how the organization can change its culture to suit the requirements of the new situation, or the requirements of the transformation into learning organizations that require characteristics of organizations in a knowledge economy that gives importance to enhancing knowledge sharing and accelerating the organizational learning cycle, strengthening the organization’s memory and achieving and updating knowledge capital, and is this also one of the tasks of…administrationHuman Resources?.

      The idea that people and the knowledge they possess are an organization’s most important assets is not new. The change in terminology frommore20 years ago, from “personnel management” to “human resources management,” I refer to this shift in the concepts and practices related to human resources according to a series of specialized tasks, and to develop its role to become strategic..   

     Some researchers ask an important question that could be a research problem worthy of attention: In light of the secretions and challenges of the knowledge economy and the emergence of methods…AdministrativeHR TalkAs a management  Knowledge and Competencies: Does HR still play a role? If so, what exactly?

      First of all, the researcher answers  Mario Raich[xix]New changes must be analyzed.,It should be noted that the role played by the functionadministrationHuman resources in relation to the organization’s strategy has changed, and then what exactly are we talking about? This term now does not only relate to the organization itself, but rather refers to “individuals in the business environment.”  People in business, i.e. workers, management, strategic partners, consultants, and then haven’t customers become human resources for organizations??, especially for those headingtoFor the customer, customer knowledge has become the most important source of knowledge and innovation, and it must be managed. The customer has become the decision maker regarding the future of organizations, and he is, in fact, the most important human resource.

• In the field of strategy:

     In a knowledge economy, knowledge capabilities are what define and support an organization’s strategy.And managementHuman ResourcesYou must contributeUnderstanding and identifying strategic knowledge capabilities, or what are known as the organization’s core competencies (meaning what is currently useful), as well as the new competencies necessary to ensure future performance, all involve identifying areas of knowledge and competencies that contribute to adding value to the organization, provide current or potential competitive advantages, and are difficult to replace. For example, the goal of recruitment and selection in a knowledge economy is to attract cadres and talents who possess a set of competencies and knowledge related to the organization’s strategic knowledge areas. The primary challenge is selecting those qualified to contribute to the organization in various ways, both now and in the future, and not just to meet current needs. This certainly requires long-term planning with senior management and greater flexibility in the recruitment process.

• Selection and appointment:

The researcher points outRobert S. Benchley, according to a survey he conducted, said that in the new economy, the biggest challenges are how to find and retrain those skilled and talented individuals.[xx] Many companies today are seekingtoReducing the so-called hiring cyclethe hiring cycle Only for one dayorMaximum one week, which is what he indicatedTo himresearcherJulekha Dash[xxi] any Reducing the time companies usually take to review, interview and select candidates, especially through the use of technology.andModern technologies, particularly the internet, are helping companies offer job offers and receive applications, enabling them to attract qualified candidates before others, reducing the chances and decisions of candidates being reassigned to other positions.

            Another change that has occurred in the field of selection and appointment is that new appointments are not linked to a specific job, but rather are linked to the worker and his various abilities and competencies, as he pointed out:Takewchi New appointments in Japan are made from recent graduates once a year, and this methodOnce-A-Year HiringIt is possible to apply it because new appointments in Japan are not linked to a specific job, but rather to the worker, his abilities and competencies.[xxii]

• Training Developing knowledge and skills:

     It is well known that an organization’s competitive advantages are achieved through the capabilities of its individuals. Therefore, knowledge workers are considered the foundation for achieving organizational success, given their possession of high levels of learning and competencies, their ability to solve complex problems, enhance creativity, and accept a high degree of independence.,Issues of achieving independence, empowering workers, and adopting long feedback cycles are considered.long feedback cyclesFor their work, one of the most important challenges of performance management, in its traditional sense, is that performance management focuses on specific tasks or work roles and observable outputs, rather than on the long-term contributions of individuals, and henceManagementHuman resources mustTResearch in qualitativeAndThrough which individuals increase their knowledge and learn from each other by sharing practices, experiences, and competencies. Not only that, but they also apply what they have learned to add value to the organization through practice. The success of organizations is largely linked to enhancing this cycle.

Michael Brown, CFO of the company, points out thatMicrosoft  “The only way you can compete today is to retire your knowledge capital before someone else does.” New skills acquired by workers become worthless after three to five years. As a result, industrialized countries have had to develop extensive retraining and informal education systems to enhance the expertise of their workforces.[xxiii]

However, there is a paradox that is difficult for employees to understand, which is that developing their skills will lead to them losing their jobs, and this is what the strategic consultant emphasizes.CK Prahalad  “Continuous improvement is desirable, but you have to consider the implications,” says CK Prahalad. “We tell employees, ‘If you don’t become more effective and efficient, you’ll lose your job to your competitors.’”[xxiv]

• LookMotivation and rewards

    Several problems arise, particularly regarding knowledge or intangibles, how to measure them, evaluate them, and thus provide the necessary rewards. Some researchers have presented numerous efforts in this area, which are currently being tested and explored.

    Also,Job-based pay systemsJob-Based PayOn the way to being replaced by person-based pay systemsPerson-Based Pay: In actual practice, organizations link the performance of the organization, units, and work teams when paying. Competitive advantage comes from strategic diversity, which in turn comes from the ways in which individuals perform their roles. If individuals behave differently, then they must be paid differently. It is not necessary to find a single optimal system, but rather to find a system that supports that approach to work, strategy, and culture.[xxv]

He emphasized thatTakewchi In his study comparing human resource management in Japan, the United States of America and Canada,, whereHe concluded that one of the most important features of Japanese human resources management is that it considers the function of determining wages to be a primary function of human resources management, and that wages are paid to a specific person and not to a specific job. Therefore, wages differ from one person to another, as does the amount of this difference.[xxvi]

      Many studies have also highlighted the importance and role of motivation as a key method for enhancing knowledge sharing and generation within an organization. This approach motivates knowledge and skill holders to disclose their stored creative ideas, known as tacit knowledge, which constitutes the bulk of knowledge. Individuals are often afraid to reveal their skills and knowledge for fear that they will be used against them. However, studies indicate that motivation can facilitate knowledge sharing within an organization through policies that reward those who disclose their knowledge, thus making it a desirable behavior. Competition within the organization shifts to disclosing knowledge rather than concealing it.

       One of the important changes that have occurred in the field of training is the spread and prevalence of the culture of the importance of training to achieve the desired performance, as he pointed out:Pfeffer states that in order to have a multi-skilled workforce that can adapt to changes and has a complete knowledge of the production system, especially the flexible production system, training becomes a vital part of the production functions and not just a separate training process. There is also a belief that training is considered a source of competitive advantage in a large number of organizations. It is also believed that training is an investment in the organization’s work team and that it is considered in the current business environment an actual source of return on invested capital.

            Also, among the important changes in the field of training, as a result of the significant increase in the number of temporary workers in the new business environment, organizations will need what can be called training programs.Just In Time: JIT to meet the demands of changing and demanding competencies in the workforce.[xxvii]

• Career path:

     The researcher points outAshraf Abdel Rahman Mohamed  thatWith the dramatic increase in the volume of temporary workers in recent years, there has been a shift fromFrom JIT in manufacturing to JIT in operations, employers are demanding the availability of the workers they want exactly when they need them, exactly as they need them, and when they don’t need them, they don’t want them in the organization. Can HR provide workers under these conditions, and how can it manage a career path in light of that? This represents a challenge for HR, especially since the nature of the psychological contract between temporary workers and employers has changed its form.[xxviii]

• Protecting and preserving human resources:

     He seesWhicker, LM & Andrews, K.M that itIn addition to enhancing the organizational knowledge lever,To manageHuman Resources: A New Focus on Knowledge-Related Risksknowledge risk,The latter refers to the actual or anticipated loss of hard-to-replace knowledge that can be lost as a result of individuals leaving an organization. Here, human resources managers must strengthen incentive systems that ensure an individual will remain with their organization, provided they find a suitable environment. On the other hand, they must also seek to promote the sharing of knowledge and skills, find ways to store knowledge, and enhance organizational memory.

            Hence, the focus is on the cognitive content of individuals.head contents’The focus is not on the number of individuals.  head countThe knowledge possessed by a single individual may exceed the combined knowledge of all individuals. Therefore, it is important to examine the sources of risk and identify exactly where the knowledge and skills the organization needs lie, especially those directly related to competitive advantage.

• development And managementKnowledge workers through enhancing the relationship (knowledge-learning-practice) Knowing-Learning-Doing:

        He seesWhicker, LM & Andrews, K.M [xxix] The competitive advantages of an organization are achieved through the capabilities of its individuals. Therefore, knowledge workers are considered the basis for achieving organizational success, given their possession of high levels of learning and skills, their ability to solve complex problems, enhance creativity, and accept a high degree of independence.,Issues of achieving independence, empowering workers, and adopting long feedback cycles are considered.long feedback cyclesOne of the most important challenges of performance management in their work is that, in its traditional sense, performance management focuses on specific tasks or work roles and observable outputs, rather than on the long-term contributions of individuals. Hence,ManagementHuman resources mustTResearch in qualitativeAndThrough which individuals increase their knowledge and learn from each other by sharing practices, experiences, and skills. Not only that, but they also apply what they have learned to add value to the organization through practice. The success of organizations is largely linked to enhancing this cycle.

   Value to an organization does not simply come from facilitating the reception of information. Individuals create value from information by using it to do something. Here, the important role is…To manageHuman resources is the pursuit of building the value of knowledge at the individual and collective levels, i.e. focusing on the organization as a system. Facilitating the transfer of knowledge between individuals and teams, and from outside to inside the organization and vice versa, has become essential in building organizational competencies. Organizational knowledge is not formed solely through the collection of individual knowledge and competencies, but rather through the results of the integration and synergy of that knowledge.

    Empowerment is now a common goal, meaning that organizational culture emphasizes the empowerment of employees and makes them willing to take action, make decisions, and take initiative, rather than being weak and waiting for and obeying management’s directives. Various global companies have begun experimenting with how their culture can create empowered employees who make critical decisions and enhance organizational trust, in order to maximize their benefits.

 ringـــــAnd:

It appears from the above that the challenges of the so-called knowledge economy make traditional human resource management practices insufficient to achieve excellence and continuity for business organizations. omenChangestheEconomic andtheOrganizational andtheA massive technological revolution forced it to reconsider its organizational and administrative methods and shift its focus in terms of resources.,So that the competent human resource has become the decisive factor and the most capable of gaining a competitive advantage for the organization in the global market in particular..

On the one hand, we must approach the concepts of employment according to a different logic. Traditional concepts of selection and appointment, as well as training and human resource development, are no longer decisive in achieving and enhancing outstanding performance in the dynamics of the knowledge economy.

     Then it shouldPaying more and more attention to the competent human element through evaluating, developing and motivating it by moving away from primitive and improvised methods and mechanisms in management and administration, and adopting modern methods and mechanisms that are in line with the data of the hour, and in this contextModern concepts of knowledge and skills management are particularly important, as they have redefined most concepts related to human resource management, significantly contributing to its adaptation to its requirements. Here, it is necessary to study all the complementary relationships between these concepts, which ultimately serve the logic of adaptation and flexibility in human resource management practices.

Footnotes and references:

[i]Naseem Al Ameri: Continuing education is the real solution to the unemployment problem.http://www.balagh.com/youth/nm026ssy.htm

[ii]Tarif Atallah, Knowledge Economy: Concepts and Trends, National Forum on the Economics of Education, February 2025, University of Algiers, Algeria, p. 48.

[iii] Dominique Foray: The conference economy, edition LA DECOUVERTE, Paris, 2017, p. 78.

[iv]Sayed Mohamed Gad El Rabb: Managing Intellectual and Knowledge Resources in Modern Business Organizations, Al-Yazouri Press, Cairo, 2016, p. 49.

[v]Abdul Rahman Al-Hashemi, Faiz Muhammad Al-Azzawi, Methodology and Knowledge Economy, First Edition, Dar Al-Masirah for Publishing and Distribution, 2017, p. 42.

[vi] “The Knowledge Based Economy: A Review of the Literature” NSW Board of Vocational Education and Training, Oct 2009.

[vii] Ian Brinkley (March 2018), The Knowledge Economy: How knowledge is reshaping the economic life of nations, the work foundation, P 43.

[viii] Rory Donnelly, The knowledge economy and the restructuring of employment: the case of consultants, Work, employment and society Volume 23 _ Number 2 _ June 2019, P 321

[ix]Yasra Ibrahim, Knowledge Economy, Dar Al-Hikma Publications, Tripoli, Libya, 2017, p. 222.

[x]Aqil Muhammad Al-Aqil, unemployment or work without a job:http://news.ksu.edu.sa/news/60743

[xi] Ian Brinkley & all; Knowledge Workers and Knowledge Work, A Knowledge Economy Program Report, The Work Foundation, London, March 2009.

[xii]Yasser Al-Nouri, Labor Market in the Knowledge Economy, Seventh Annual International Scientific Conference “Knowledge Management in the Arab World”26-28 April2019 Malaysia.

[xiii]Abdelhamid Qoromi, A. Abdelkader Chelali, “The Impact of Globalization on the Issue of Unemployment and Employment: The Position of Neoliberal Trends,” a presentation at the conference: Employment Policy and its Role in Human Resources Development, April 13-14, 2011, Faculty of Law and Political Science, University of Mohamed Khider, Biskra.

[xiv]Bakr Yassin Muhammad Ishtiya, The Reality and Prospects of Information Economics in Palestine, Master’s Thesis, An-Najah National University, Nablus, Palestine, 2014, p. 77

[xv]Same reference, p. 79.

[xvi]Yasra Ibrahim, previous reference.

[xvii] Iulia CHIVU, Dan POPESCU, Human Resources Management in the Knowledge Management, Revista Informatica Economică. 4(48)/2018, p 78

[xviii] Hall Mark L. Lengnick-Hall, Cynthia A. Lengnick: human resource management in knowledge economy, new challenges, new roles, new capabilities, Barrett-Koehler Publishers INC, San Francisco, 2013, P 45

[xix] Mario Raich “HRM in the knowledge-based economy: is there an afterlife?”, Journal of European Industrial Training, Vol. 26 Iss: 6, (2012) p. 124

[xx] Robert S. BenchleyTHE VALUE OF HUMAN CAPITAL – human resource management – Brief Article“. Chief Executive, The. FindArticles.com. Jul 03, 2012.

[xxi] Julckha Dash, “HR. Timing Is Every Thing In The War For If Talent”, Computer World, Vol. 34, Issue 48, 2017, p19 see:http://www.computerworld.com/s/article/54397/HR_Timing_Is_Everything_In_the_War_for_IT_Talent

[xxii]Ashraf Abdel Rahman Mohamed, The Role of Human Resources Management in Egyptian Business Organizations in the Knowledge Economy, a thesis submitted for the degree of Doctor of Philosophy in Business Administration, Faculty of Commerce, Cairo University, 2016, p. 142.

[xxiii] Mohamed Khadry, The Impact of the Knowledge Economy on Achieving Competitiveness in Arab Economies:www.iefpedia.com/arab/?p=15073

[xxiv]Same reference.

[xxv]Ashraf Abdel Rahman Muhammad, previous reference, p. 89.

[xxvi]Ashraf Abdel Rahman Muhammad, previous reference, p. 87, quoting:

Norihiro Takewchi, “Comparative Competitive Aspects Of Japanese Use Of Human Resources Vis-Avis United States And Canada” Canada-United States Low Journal, Vol. 16, 1990, pp. 209-213

[xxvii]Ashraf Abdel Rahman Muhammad, previous reference, p. 89, with modifications

[xxviii]The same reference, p. 90, with modifications.

[xxix] Whicker, LM and Andrews, KM Human Resource Management in the Knowledge Economy: Realizing the Potential, Asia Pacific Journal of Human Resources (2004), 42, 2, P 158