Many organizations world over are embracing knowledge management systems for survival and to retain profitability. This trend is visible in the technology intensive businesses like biotechnology, computers and telecommunications and also in professions like legal, accountancy and management consultancy. A new breed of managers called “Knowledge Manager” has emerged to put the new system in place in the organizations. Information Managers and Librarians are increasingly drafted to fill the post of Knowledge Managers as their work is nearest to the job. This article covers the broad classification of knowledge and the mechanisms of its transmission and transformation. Finally the importance of human element in the Knowledge Management System is highlighted for the benefit of Information Managers and Librarians.