Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2022 Vol: 21 Issue: 4

Impact of Human Resources Practices on the Applying of Knowledge Management at Directorates of Building and Land Tax in Jordan

Mohammad Issa Ghafel Alkhawaldeh, Directorates of Building and Land Tax, Ministry of Local Administration


Human Resources Management practices, Knowledge Management, Directorates of Building and Land Tax, Jordan

Citation Information

Alkhawaldeh, M.I.G. (2022). Impact of human resources practices on the applying of knowledge management at directorates of building and land tax in Jordan. Academy of Strategic Management Journal, 21(S6), 1-11.


This study aims to identify the impact of human resource management practices on the Appling of Knowledge Management at Directorates of building and land tax in Jordan, the study sample consisted of the employees and managers from various managerial levels. The researchers used a questionnaire as a tool for gathering the study’s data. The statistical program AMOSv24 was used to test the study hypotheses. The study showed a statistically significant effect of human resource management practices on the application of knowledge management in the Directorates of building and land tax in Jordan. Based on the study results the researchers recommend managers and decision makers to improve and develop the human resources management practices to achieve effective applying of knowledge management, by building a reward system for their employees effectively and comprehensively for all administrative cadres and linking these systems to the actual achievement of the staff.


Organizations now a day's witnessed many challenges due to information and communication technology rapid development (Al-Hawary & Al-Syasneh, 2020). World has become a small village, small and large organisations have entered competition, and it has become necessary for every institution to adapt with these developments to survive the competitive market (Al-Shawabkeh et al., 2020). Knowledge management concept refers to the knowledge that organizations employ and manage through experiences, skills, capabilities, explicit and implicit information accumulated by employees and organization to benefit in achieving its strategic goals (Al-Abbadi et al., 2020).

And here rise in mind the role of knowledge management in discovering knowledge from employees minds and behaviors, capturing and documenting it to share and apply it to achieve desired goals, where knowledge management become one of the contemporary intellectual developments which concerned with employees who engage in knowledge activities and individuals with specializations and distinguished abilities who do the conceptual activities in the organization (Rumman et al, 2020; Allahow et al., 2018). Human resource management concept has received great importance; Given that this resource is considered one of the most important resources that contribute to long term organizational success, and determines organizations ability to compete, thus ensuring survival and continuity.

Human element investment is an effective way to make organizational profit, as it represents intellectual and cognitive power that manages and operates organizations (Almomani et al., 2020), if organizations today are required to be creative, they need to use human resources creative energies and not be satisfied with their normal abilities (Alhalalmeh et al., 2020; Al-Hawary, 2011).This study may be useful in explaining the impact of human resources development in knowledge management, given that human resources management is one of knowledge management application success factors, therefore study results are useful in directing and focusing efforts on human resources to improve knowledge management application, and study results and its recommendations may be useful for knowledge and human resources managers. Through this study, researchers try to identify the impact of human resource management on the knowledge management application.

Theoretical Framework and Hypotheses Development

Human Resources Management

Human resource in the organization at various sectors is the mainstay on which modern organizations are based. Interest in human resource has increased; As it is considered one of most important resources that contribute to organization long term success, increases the organization's ability to compete, and ensures its survival and continuity (Al-Lozi et al., 2017 ).

Because human resources are the most important and influential element compared to rest of resources owned by the organization (Al-Lozi et al., 2018; Al-Abbadi et al., 2019). In the absence of human resources, organizations are not existed at all. Individuals view in organizations has shifted from being a cost element that must be reduced to a minimum, to being an organization asset that can be invested in and increased in value, this transformation has led to individual’s consideration as an important organization resource, the human resource can achieve huge wealth and revenues through using their skills and knowledge. For an individual to become a resource he must possess the experience, skills, capabilities and preparations necessary to perform tasks. Human resource is the backbone which modern organizations are based on, as the human resource represents the real tool of objectives achievement. Daft (2008) indicated that human resource is a source of thought and development and is able to employ the rest of available material resources, as it is considered as change management real source and competitive capabilities continuity.

The human element, with its energies and ability to create, innovation and development, can overcome the scarcity of natural resources, and not to make it an obstacle to growth and progress, by exploiting the scientific and productive energies of society, as well as rational use of natural resources and available investments.

The term human resource management is used to refer to the activities related to planning the organization's needs of human resources and providing them with the required qualifications and expertise at the right time, as well as training, motivating and keeping them, there are many different names given to the department concerned with the individuals working in organizations, and the authors' opinions on its definition differed. However, the focus of the activity of this department is the human element working in the various departments of this organization. Therefore, we notice that the administrative unit occupies a high place among these departments and is connected with all their activities (Al-Hawary & Al-Namlan, 2018).

Caliskhan (2010) defines human resources management as the management concerned with putting human resources strategies and policies in line with environmental opportunities, business strategies and organizational structure with the aim of achieving competitive advantages through the human element. While (Mondy, 2012) defines human resources management as using individuals to achieve the organizational goals. Moreover, (Doud, 2006) defines human resources management as a unique process for the recruitment management that aims to put competencies in a suitable place by employing committed and skilled employees using an array of logical methods. Thus, it turns out that human resource management is a systematic process aimed at selecting the right person for the right place, in addition to training and developing employees competencies in line with labor market developments.

Many management thinkers call the practice of human resources management HR management jobs, which is a group of activities concerned in putting the human resources under execution, and it is geared towards improving performance, and enhancing the competencies, skills and knowledge of the human resources; in order to achieve strategic goals.

Doud (2006) defines human resources management practice as the organization’s activities directed to all employees and that serve to direct them towards achieving the specific organization goals. Bernardin (2007) specified human resource management practices in human resource planning, analyzing and designing the job, recruitment, training and development, compensation and benefits, and performance appraisal. Whereas (Al-Nady et al., 2013) pointed that it is a group of strategies including human resources formation, HR performance management strategy, employee compensation and reward strategy. Some people see that human resources management practice is confined with planning, job analyzing and recruiting, in addition to training, performance management and compensation. In the following, the researcher mentions the most important practices of human resource management, including:

Human resources planning: Is forecasting the future demands of work from human resources and organization's ability to develop these resources with what is available of them in the organization (Al-Hawary & Abu-Laimon, 2013). (Dessler, 2011) mentioned that planning is the first and most important human resources tasks, as it is the mile stone of what comes back later at the organization as either success of failure. Human resources planning is a prominent and important task that management does and it aims to estimate the organization’s needs of human resources in terms of tasks types or jobs required, in addition to preparing the required individuals for each type of job needed, and the required period for achieving goals of the human resources plan (Al-Hawary & Metabis, 2012).

Attracting human resources: Modern attracting process strategies of human resources are built on the basis of attracting human elements with multiple talents, skills, abilities and capabilities, and selecting the best among them, which allows them to work on specific jobs within the organization, as the modern work style is based on the employee's ability to engage team work, and not just like past individual working style, where the recruiting was based on right individual selection, regardless of his abilities and talents (Metabis & Al-Hawary, 2013 ). Where recruitment was based on the selection of the right individual, regardless of his abilities and talents. After identifying human resources needs in terms of numbers and types, the human resources department begins to practice the first steps of recruitment, in light of the information obtained from human resources strategic plan.

Selection and employment: Ilias (2009) defines selection and employment as practices that confirm the organization's ability to correctly select employees, who have the desired competencies and knowledge, employ them in the right place, and integrate them into the organization's culture and climate. Organizations must be aware of the sources through which it will provide what it needs from human elements and divide these sources into internal sources and external sources (Dessler, 2011), as Ilias (2009) confirms that the correct selection of competencies reduces training and employees development costs, therefore Proper selection process considered as an essential exercise to get benefits from employees.

Training and development: Ilias (2009) defines training and development as "identifying and meeting employees skills to increase employee productivity and work satisfaction, and that training reduces selection costs, recruitment and attracting employees from external labor markets." Training is defined as a planned activity that aims to provide individuals with a set of information and skills that lead to increase individuals' performance work rates (Al-Hawary & Al-Kumait, 2017).Training is an essential human resources management function, through it, workers are rehabilitated, upgraded and developed in a continuous manner, their skills are developed and their information increased to be able to perform their job, and to be able to adapt with the turbulence work environment and effectively achieve organization goals. Training aims to increase knowledge process, skills and capabilities of workforce capable to work in all fields, which are selected in light of various tests conducted to raise their productive efficiency levels to the maximum extent possible (Armstrong, 2008; Al-Hawary & Nusair, 2017).

Incentives and rewards: Ilias (2009) asserts that the incentives and rewards policy is a clear valuable practice that affirms the organization's appreciation and reward for its employee’s efforts, which gives a positive impact on employees and organizational practices (Al-Hawary & Shdefat, 2016 ). Incentives and rewards in the workplace have benefits for both employees and employers, and when they are provided as a result of outstanding performance and productivity, then employees have increased morale, job satisfaction, and participation in organizational functions. Employers become more efficient, sales and productivity increase. Through incentives and rewards, both employers and workers enjoy a positive and productive work environment. Financial incentives give workers in return for performance and productivity. These incentives include options to purchase shares, or develop plans to share in profits, or paid vacations, or financial bonuses and rewards. Non-financial rewards incentives also given for employee performance, these rewards include flexible working hours, training opportunities, and the ability to work independently. Bonuses and incentives are valuable to the employee because they allow workers to learn new skills and get advancement opportunities. For example, a recent graduate might consider an organization's exceptional training program more valuable than a basic salary increase; because he feels that a learning opportunity will benefit his profession (Collings and Wood, 2009).

Performance appraisal: The review and discussion of the employee’s performance of specific duties and responsibilities at specific time, the evaluation is based on the results obtained and compared to the standards agreed upon by manager and employee, rather than in terms of an employee's personal characteristics, the assessment measures skills and achievements with accuracy and reasonable integrity, and provides a way to help identify areas in order to enhance performance and help increase professional growth (Collings & Wood, 2009; Mohammad et al., 2020).Dessler (2011) defined performance appraisal as the process performance evaluation of current and previous employee based on specific performance criteria, so that performance appraisal form must contain the criteria required to perform the job, and compare those criteria with the employee's actual performance. Providing the employee with a clear background about the result obtained from that comparison in order to avoid defects and develop his strengths.

Knowledge Management

Knowledge management is a modern management concept that the literature related to it has grown (Al-Hawary et al., 2018). Recent years organizations witnessed increasing interest in adopting knowledge management concept, and knowledge management is gaining increasing importance in light of the great challenges facing organizations (Al-Hawary & Alwan, 2016). In order to achieve the desired benefit of adopting knowledge management in organizations, the role of the organization’s management must focus on knowledge effective use by employing it towards achieving organizations goals, enhancing the organization capabilities and the skills of its cadres, and achieving development, improvement and sustainability of these capabilities and skills. Knowledge management concept is a modern concept in management science, and knowledge has witnessed an increasing interest during the last two decades, which led to many definitions emergence of the knowledge management concept, which differed according to researchers’ specializations and their different points of view. Laudon & Laudon (2007) defined knowledge management as the systematic process that provides knowledge to workers in various sectors, through the availability of data and information and the dissemination of knowledge and information. While Chou & Yaying (2005) defined it as a process by which the organization intellectual capital is extracted and invested, with the aim of reaching efficient, effective and innovative decisions in order for the organization to gain a competitive advantage and obtain customer loyalty and commitment (Al-Hawajreh et al., 2011; Al-Hawary et al., 2020 ).

Accordingly, the researchers define knowledge management as a set of processes that include identifying, finding, developing, distributing, using, preserving and facilitating its retrieval, which results in raising performance level, reducing costs and improving the ability to adapt to rapid changes in the organization environment.

Knowledge and knowledge management is a continuous process that does not have a definite beginning or a definite end, and knowledge management processes are meant to be those means by which value is added to the raw knowledge represented in the inputs, with the aim of creating processed knowledge represented in the outputs. The essential goal of knowledge management for the organization is the full use of existing knowledge, the innovations development, and investment encouragement in human resources, and this will only be achieved through a set of processes. The researchers differed in defining knowledge management processes in eight processes: diagnosing knowledge, defining knowledge objectives, generating knowledge, storing knowledge, distributing knowledge, applying knowledge, retrieving knowledge, and perpetuating knowledge. As for Al-Lozi, et al., (2018), they identified knowledge management processes in six processes: knowledge diagnosis, knowledge acquisition, knowledge generation, knowledge storage, knowledge development, knowledge dissemination, and knowledge application. The researchers relied on the five processes (diagnosis, generation, storage, dissemination, and application) in their study

Diagnosis is one an important issue of knowledge management program, as Al-Hawary & Alwan (2016) points out that diagnostic process is imperative because its aim to discover organization knowledge and identify the people who carry it and where they are, as well as determine the place of this knowledge in the databases, the diagnostic process is one of the most important challenges facing business organizations, which knowledge management project success depends on the diagnoses accuracy. Diagnosing knowledge process is a fundamental and main process that contributes directly to launching and determining other processes shape and depth. As this process represents the first step in knowledge management as it determines knowledge quality that the organization wants, and identifies its sources and methods of obtaining them.

Knowledge generation: Means knowledge innovation, and this is done through work teams participation and supportive work groups to generate new knowledge capital in new issues and practices that contribute to defining problems and finding solutions in an innovative and continuous manner. Knowledge generation also provides the company with the ability to outperform, initiate business new lines, accelerate problem-solving, transfer best practices, develop professionals' skills, and assist management in recruiting and retaining talent.

Knowledge storage processes: Those operations that include retention, maintenance, search, access and retrieval from the storage place and the process of storing knowledge is a connecter of acquisition, retention and retrieval of knowledge in the organization.

Knowledge dissemination: The process of disseminating knowledge is a process of transferring knowledge to employees who need it at the right time in order to carry out essential tasks, and it means the exchange of ideas, experiences and practices among workers, and this requires workers to communicate and use what they know to solve problems in a creative way, as knowledge really grows when it is shared and used (Dalkir, 2005).

Knowledge implementation: Knowledge management main objective is to apply the knowledge available to the organization, and use it at the right time to solve an existing problem and to achieve a distinguished position among other competitor’s. Organization success does not depend only on owning knowledge, but on using it better, which leads to creativity and innovation to reach the learning organization and to improve performance.

Human Resources Management and Knowledge Management

Modern information technology provided for knowledge management many capabilities such as: the Internet and intranets, data stores, and browsers, which facilitated the procedures and practices of knowledge management in organizations, but organizations still, need trained staff to use these technology and programs in order to deal with it perfectly. Any organization that wants to continue and succeed in the markets, seeks to discover new ways, modern programs and advanced means that are more effective than those used by competitors, this requires it to follow all developments in the labor market on the one hand, and to train and develop its human on the other hand. It can be said that the knowledge flow and its management in the modern era is modern business organizations beating heart, and here highlights the importance of proper use of all available means of modern and advanced information technology in knowledge management, which contributes to enhance business organizations competitive advantage, and this does not come in isolation from human resources management which works to raise employees competencies and skills in dealing with everything new in technological and knowledge revolution (Al-Hawary & Nusair, 2017). Based on the literature review above the study hypotheses may be formulated as: as shows in Figure 1.

H1: There is a significant effect of Human resources management practices on knowledge management application at Directorates of building and land tax in Jordan.

Study Model

Figure 1: Research Model


Population and Sample Selection

A qualitative method based on a questionnaire was used in this study for data collection and sample selection. The major aim of the study was to examine the impact of human resource management on knowledge management. Therefore, it focused on Directorates of building and land tax in Jordan. Data were primarily gathered through self-reported questionnaires creating by Google Forms which were distributed to a purposive sample of the employees and managers at different managerial levels via email. In total, (265) responses were received including (12) invalid to statistical analysis due to uncompleted or inaccurate. Hence, the final sample contained (253) responses suitable to analysis requirements, where it proved to be sufficient to the extent that was predictable and allowed for a presumption of data saturation (Sekaran & Bougie, 2016).

Measurement Instrument

A self-reported questionnaire that consists of two main sections along with a section regarding control variables was used as the measurement instrument. Control variables considered as categorical measures were composed of gender, age group, educational level, and experience. The two main sections were dealt with a five-point Likert scale (from 1= strongly disagree to 5= strongly agree). The first section contained (29) items to measure human resource management based on (Al-Abbadi et al., 2019). These items were distributed into dimensions as follows: four dedicated for measuring human resource planning, six dedicated for measuring human resource recruiting, six for measuring selecting and appointment, five for measuring training and development, four for measuring compensation, and four for measuring performance evaluation. Whereas the second section included nine items developed to measure knowledge management according to what was pointed by (Al-Hawary & Alwan, 2016).


Measurement Model Evaluation

This study was conducted structural equation modeling (SEM) to test hypotheses, which represents a contemporary statistical technique for testing and estimating the relationship between factors and variables (Wang &Rhemtulla, 2021). Accordingly, the reliability and validity of the constructs were tested using confirmatory factor analysis (CFA) through the statistical program AMOSv24. Table 1 summarizes the results of convergent and discriminant validity, as well the indicators of reliability.


Table 1
Results Of Validity And Reliability Tests
Constructs 1 2 3 4 5 6 7
1. HRP 0.749
2. HRR 0.435 0.743
3. SAA 0.397 0.482 0.725
4. TAD 0.556 0.359 0.429 0.719
5. COP 0.460 0.441 0.516 0.381 0.755
6. PEV 0.402 0.528 0.457 0.375 0.479 0.745
7. KNM 0.691 0.633 0.684 0.627 0.672 0.645 0.761
VIF 3.157 2.994 2.410 1.864 2.594 1.037 ---
Loadings range 0.682-0.806 0.638-0.826 0.658-0.793 0.641-0.780 0.671-0.814 0.703-0.794 0.631-0.861
AVE 0.561 0.552 0.525 0.517 0.570 0.554 0.579
MSV 0.495 0.501 0.436 0.397 0.466 0.405 0.511
? 0.832 0.877 0.865 0.839 0.840 0.828 0.921
C.R 0.836 0.880 0.869 0.842 0.841 0.832 0.925

Table 1 shows that the standard loading values for the individual items were within the domain (0.631-0.861), these values greater than the minimum retention of the elements based on their standard loads (Al-Lozi et al., 2018; Sung et al., 2019). Average variance extracted (AVE) is a summary indicator of the convergent validity of constructs that must be above 0.50 (Howard, 2018). The results indicate that the AVE values were greater than 0.50 for all constructs, thus the used measurement model has an appropriate convergent validity. Rimkeviciene, et al., (2017) suggested the comparison approach as a way to deal with discriminant validity assessment in covariance-based SEM. This approachis based on comparing the values of maximum shared variance (MSV) with the values of AVE, as well as comparing the values of square root of AVE (√AVE) with the correlation between the rest of the structures. The results show that the values of MSV were smaller than the values of AVE, and that the values of √AVE were higher than the correlation values among the rest of the constructs. Therefore, the measurement model used is characterized by discriminative validity. The internal consistency measured through Cronbach's Alpha coefficient (α) and compound reliability by McDonald's Omega coefficient (ω) was conducted as indicators to evaluate measurement model. The results listed in Table 1 demonstrated that both values of Cronbach's Alpha coefficient and McDonald's Omega coefficient were greater than 0.70, which is the lowest limit for judging on measurement reliability (de Leeuw et al., 2019).

Structural Model

The structural model illustrated no multicollinearity issue among predictor constructs because Variance Inflation Factor (VIF) values are below the threshold of 5, as shown in Table 1 (Hair et al., 2017).This result is supported by the values of model fit indices shown in figure 1.and as shows in Figure 2.

Figure 2: Sem Results of the Human Resource Management Effect on Knowledge Management

The results in Figure 1 indicated that the chi-square to degrees of freedom (CMIN/DF) was 2.348, which is less than 3 the upper limit of this indicator. The values of the Goodness of Fit Index (GFI), the Comparative Fit Index (CFI), and the Tucker-Lewis Index (TLI) were upper than the minimum accepted threshold of 0.90. Moreover, the result of Root Mean Square Error of Approximation (RMSEA) indicated to value 0.058, this value is a reasonable error of approximation because it is less than the higher limit of 0.08.

Consequently, the structural model used in this study was recognized as a fit model for predicting the DEP and generalization of its result (Ahmad et al., 2016; Shi et al., 2019).To verify the results of testing the study hypotheses, Structural Equation Modeling (SEM) was used, the results of which are listed in Table 2.

Table 2 Hypothesis Testing
Relation Standard Beta t value p value Result
Human resource planning àKnowledge management 0.704*** 32.00 0.000 Supported
Human resource recruiting àKnowledge management 0.638** 29.11 0.006 Supported
Selecting and appointment àKnowledge management 0.581** 28.62 0.002 Supported
Training and development àKnowledge management 0.762*** 35.70 0.000 Supported
Compensation àKnowledge management 0.485* 23.92 0.03 Supported
Performance evaluation àKnowledge management 0.529* 24.53 0.02 Supported

The results demonstrated in Table 2 show that training and development has the highest positive impact on knowledge management(β=0.762, t=35.70, p=0.000), followed by human resource planning (β=0.704, t=32.00, p=0.000), human resource recruiting (β=0.638, t=29.11, p=0.006),selecting and appointment (β=0.581, t=28.62, p=0.002),performance evaluation (β=0.529, t=24.53, p=0.02), and finally the lowest impact was for compensation (β=0.485, t=23.92, p=0.03). Thus, all the minor hypotheses of the study were supported based on these results.

Result Discussion

It was found that human resource management practices have an effective and significant contribution to knowledge management application success, and this result is attributed to the fact that paper and electronic knowledge and information are characterized by a wide variety and quantity. Therefore, it needs a specialized human resource to take care of its retention, classification and management, these information available in the work environment imposed on human resources to cooperate among them and to exchange experiences and skills to be able to process this information in the right way, as this helped to disseminate knowledge and apply it better, which is reflected at a better performance level, in addition to human resources keenness to acquire experiences and knowledge in order to maintain their workplaces, this prompted them to apply the knowledge they possess to prove their preference and aptitude for their workplaces and to carry out their jobs efficiently and effectively. These results are in line with Holowetzki study (2002); Yaghoubi & Maleki, (2012), in which the researchers identified a set of critical factors that have a role in the knowledge management successful implementation, and was most important human resource management. It also agrees with Minbaeva's (2009), whose results revealed that human resource management practices have a significant role in knowledge management application, and the results revealed the positive impact of human resource management practices on knowledge transfer and dissemination.

Based on the study finding, the researchers present a set of recommendations, which aim to contribute to human resource management improvement and development in order to achieve an effective knowledge management; organizations have to build an effective and comprehensive system of incentives and rewards for its employees for all administrative staff, and linking these incentives to employee’s actual achievement.

And so they have to Work on updating software, hardware and sources that store knowledge so that it is easier for the administrative staff to access them when needed. and finally Coordinating annuals visits between the administrative staffs to review the successful experiences in human resource management and knowledge management, in order to open the way for employees to further share and transfer information and knowledge.

Organizations have to Link employee performance results with appropriate compensation and benefits systems, in order to reach fairness in the performance appraisal process.And so to continue staff skills training and development while keeping aware of the latest developments in administrative issues and information technology.


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Received: 13-Jan-2022, Manuscript No. ASMJ-22-10869; Editor assigned: 16-Jan-2022, PreQC No. ASMJ-22-10869(PQ); Reviewed: 23-Jan-2022, QC No. ASMJ-22-10869; Revised: 6-Feb-2022, Manuscript No. ASMJ-22-10869 (R); Published: 13-Feb-2022

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