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Knowledge Management (KM) has attracted much attention as a key strategy to achieve organisational success and survival in today’s unpredictable and highly competitive environment. And yet, unless people in organisations possess the learning capability to use knowledge creatively, a well developed knowledge management system cannot be directed at sustaining profitability. In the new economy, the achievement of a sustained competitive advantage depends on firm’s capacity to develop and deploy its knowledge based resources. One way of ensuring competitive advantage is to develop a highly-skilled workforce equipped with the knowledge and expertise required to stay ahead in the marketplace. The topic of KM is still at a relatively young stage of development. There are many areas of debate within the literature concerning the management of knowledge. One of the main areas where understanding is still limited is the role of Human Resources Management (HRM). Within the search of the key factors that explain knowledge management effectiveness, this publication aims to advance a simultaneously conceptual and practical framework that links HRM and knowledge management.