GNcareers, from Gulf News

HR Management: Making that shift to knowledge economy

Knowledge EconomyImage Credit: Special to Jobs & Careers

People are living in a hectic evolution period to new-age defined by competition, rampant change, faster flow of information, business complexity and globalization. The pace of change has become so fast that it took a different type of organization to be dominant, and marked entirely a new era of business.

Industrial economy has employed skilled and semi-skilled workers who are driven by a division of labor system based on crafts and skills. The human resource management; employee relation and unions, play a vital role in fixing workloads and wages for each employee supervised by foremen.

Knowledge economy (KE) is characterized by manpower with intellectual capital and flexibility. These are intangible assets that do not require supervision. They manage their own work at their own pace, and everyone works under minimal or no supervision at all, but they remain highly motivated.

Employees are empowered and delegated for quick decision making. In return, they are rewarded according to their contributions and job value. UAE nationals recognize that developing businesses based on knowledge economy will bring forth economic development and long-term growth.

It is essential to have a delegate management style which does not restrict people with silos, structures and big reporting relationships. Business is not just an organizational chart. It is not an army to have a chain of command and have superior-boss relationships.

We should hire people who are knowledge driven. I wish to refer an interesting quote by former Citibank CEO Walter Wriston, “My theory is if you have the right people in the right place, you don’t have to do anything else. If you have the wrong person in the job, there is no management system known to man that can save you,” he said.

Handy Hints on Human Resource Management
• The UAE is driving knowledge economy to meet its 2021 vision
• KE means investing in intellectual capital
• Businesses must hire employees who are knowledge-driven

Source: Dr. Pon Mohaideen Pitchai, Special to Jobs & Careers
The writer is a Dubai-based HR and Management Consultant