TEM Journal 4(2):178-186 The Role of Human Resource Management Practice Mediated by Knowledge Management (Study on companies from ICT sector, Croatia) Marina Klačmer Čalopa 1 , Jelena Horvat 1 , Lea Kuzminski 1 1 Faculty of Organization and Informatics, UniZg, Pavlinska 2, Varaždin, Croatia Abstract - This paper integrates theories and findings of the role of human resources management (HRM) in the process of knowledge management (KM) in the information and communication technologies (ICT) sector in Croatia.In order to succeed, companies must prevent the loss of knowledge. Therefore, they must recognize the importance of human resources as the main factor of business. Only knowledge management enables knowledge sharing.Furthermore, applications of information technology (IT) in the field of HRM can prevent the loss of knowledge and arise the transfer of knowledge among employees.For the purpose of this paper, a survey regarding human resource and knowledge management in IT companies is conducted in order to analyze the structure of HR and the importance of knowledge sharing in an organization. Keywords: Human resource management, Knowledge management, ICT sector 1. Introduction Nowadays in time of increasing globalization and rapid technological advancement in the market it has become clear that companies which want to survive, should take advantage of ongoing training to equip their employees with additional skills and knowledge. When employees reach their potential, this will benefit the performance of the company. Technology is changing and IT is now omnipresent and requires new needs [12]. Products and services are characterized by short life cycles, and user’s needs have to become individualized. Namely, it is necessary to use resources up to their maximum so that companies can achieve competitive advantage. Out of all resources, the most prominent is knowledge, because it has hidden potentials and allows differentiation among competitors[20]. Market value of the company consists of visible tangible and real but invisible intangible assets. Tangible assets are machinery, buildings and equipment, while the most important intangible asset is employee's knowledge [30]but also their skills and talent that are hard for competitors to imitate, which makes them a powerful source of sustainable competitive advantage [11]. The tangible asset value decreases, while the value of intangible assets increases [10]. This is especially expressed in IT companies. Human capital is specific because it represents a unique asset. It is crucial for company development and society as a whole[14]. Consumers are no longer on the first place though employees are. It is assumed that consumers cannot be satisfied, if employees are not. Human resource management is the function with focus on planning of human resources and maintaining their motivation in order to keep the key employees in the company [5].The importance of human resource managers is growing, which is evidenced by the fact that much more attention is turned toward their motivation and reward. One of their most important tasks is becoming how to leverage employer individual knowledge assets via knowledge sharing with the mission of creation collective knowledge resources[32]. In IT companies, employees’ knowledge has a high value comparing with other resources. Human resources are the most valuable asset to any IT companies.Human capital includes the combined knowledge, skills and creativity. ICT industry in Croatia has about 4,200 companies. Number of employees in 2012 amounted up to 31,388 employees[33]. According to these facts, we can realize the importance of ICT activities in the overall activities in Croatia. However, although there are more women than men in the world, women remain in the minority in the economy[27]. Accordingly, women represent only 30% of employees in ICT. Recent research also showed that a typical Croatian startup company founder is male (96%)[13]. Increasing the number of women in the same activity would lead to an increase of GDP in the EU[39]. “Greater gender equality in economic opportunities 178 TEM Journal – Volume 4 / Number 2 / 2015.