The Importance of Knowledge Management in Organizations – with Emphasis on the Balanced Scorecard Learning and Growth Perspective

This paper is aimed to show the great importance of knowledge as a vital strategic resource for modern business, at the beginning 21st century. The turbulent business environment, with global trends and the stringent competition in the world market resulted in the significant changes that companies should introduce in their current business operations. The changes are necessary for survival in the market. The companies should adapt to changes in the external environment and make changes in the internal environment in terms of innovation, increasing competitiveness, employee training, increasing flexibility, improving processes and business performance. In a “knowledge economy”, the intangible resources are significant resources that add the value. Since the most business processes are viewed through knowledge management, the real challenge, therefore, is developing an adequate system of knowledge management in companies. How much is the importance of knowledge transfer through organizations, it is confirmed by Balanced Scorecard learning and growth perspective. Its main goals are to raise skill level in performing internal processes, harmonization among employees and companies’ objectives, improving information systems etc. To increase and maintain the value of intellectual capital, companies invest in education and continual training of its personnel, establish a system of grading employees and their performance, reward and promote quality staff. Obviously, there are the difficulties in carrying out modern systems, especially in developing countries, which include the Serbia. However, there is real hope that local companies will soon experience all the benefits of new systems in practice.