Knowledge has been recognized as one of the most important aspect of organizations. Knowledge Management is becoming an increasingly essential component of innovation and value creation. The business organizations strength doesnt stand on its assets, manpower, machinery etc but it really stands on the effective use of Knowledge.

Organizations that inhibit or restrict access to the information, knowledge, tools and relationships that people need to generate value and deliver it their customers do not deserve to survive. Their people might be able to operate more productively on their own or with other support. The extent to which companies enable their staff and business partners to excel at acquiring, developing, sharing and exploiting know-how determines their future relevance and value. Intelligent and information-rich individuals want to work for and with intelligent and information-rich organizations.

This paper summarises the importance of effective knowledge management initiatives and the role of people management and development specialists in helping organisations to generate and use knowledge workers to improve organization performance.

Knowledge is dynamic-it goes through human brains for cognition, invention, propagation, fusion, generalization and problem solving. Knowledge management is an increasingly essential component of innovation and value creation.

Knowledge is central to build an active and dynamic knowledge environment. The way one interprets and conceptualizes and internalizes information creates knowledge. So, the use and organization of the information structures (information acquisition, storage, interpretation and communication tools) can help in building a knowledge environment and knowledge oriented culture in business organizations.

In recent years there has been a significant increase of interest in knowledge management. More companies have appointed Chief Knowledge Officers (CKO). However, attention often focuses upon particular stages of: