The aim of the article is to discuss interrelation between knowledge management and organizational structure of organization. Organizational structure is a backbone of the organization. Type of organizational structure used has strong impact on everyday life of organization and influences all its activities, including knowledge management. From the point of view of knowledge management, three basic groups of organizational structures can be identified in organizations; top down structures, bottom up structures and combined structures. The article defines advantages and disadvantages of these groups of organizational structures and explains how they influence knowledge management activities in the organization. Combined organizational structure represents the best choice for those who want to use full potential of knowledge in their organization. The article presents results of the research made by Department of Management, University of Economics Prague in organizations in the Czech Republic. The research started in 2004. Till today, 131 organizations have been interviewed. The results of research show growth in number of combined organizational structures, especially in highly competitive industries.

The aim of the article is to discuss interrelation between knowledge management and organizational structure of organization. Organizational structure is a backbone of the organization. Type of organizational structure used has strong impact on everyday life of organization and influences all its activities, including knowledge management. From the point of view of knowledge management, three basic groups of organizational structures can be identified in organizations; top down structures, bottom up structures and combined structures. The article defines advantages and disadvantages of these groups of organizational structures and explains how they influence knowledge management activities in the organization. Combined organizational structure represents the best choice for those who want to use full potential of knowledge in their organization. The article presents results of the research made by Department of Management, University of Economics Prague in organizations in the Czech Republic. The research started in 2004. Till today, 131 organizations have been interviewed. The results of research show growth in number of combined organizational structures, especially in highly competitive industries.