Research Article

COMPATIBILITY BETWEEN KNOWLEDGE MANAGEMENT AND ORGANIZATIONAL DESIGN

ABSTRACT

Constant changes in the business environment, business processes or products, are forcing organizations to reorganize, to search for new organizational forms, but also to establish clever market positioning that creates a competitive advantage. Organizational design becomes important in order to find the most effective structure, which would cope with ever-changing business environment; and knowledge management maximizes the utilization of knowledge as one of the main sources of competitive advantage in the market. The purpose of the paper is to explore the importance of compatibility between knowledge management and organizational design. Knowledge management is recognized as an essential element of business, and extensive efforts are being made to build and develop this process. Numerous improvements are possible in the area of organizational design, such as redesigning existing models and developing new ones so that knowledge management practices can be applied as easily as possible. The research findings would most benefit managers, who can analyze their businesses and determine areas where change is needed, regarding organizational design and knowledge management, which influences business performances.

Keywords

business organization organizational design organizational structure knowledge management