The Effect of a Good HR in Promoting KM & Innovation in a Manufacturing Sector – A System Dynamics Approach

Innovation is important to all organizations in all sectors. In a knowledge economy, the better use of knowledge can lead to faster, less risky and more vibrant innovation. A good Human Resource (HR) department in an organization ensures that all the employees are motivated to become knowledge workers and contribute towards organizational objectives. This calls for an effective and in-depth analysis of various HR parameters which have bearing on the system performance. With the above perspective in focus, the purpose of this paper is to delineate through System Dynamics (SD) simulation the fact that good HR Management will enhance Knowledge Management (KM) which is the prime driver of innovation.