The purpose of this master thesis is to analyze knowledge management and its usage in organizations. Knowledge is broad and abstract concept which gained more importance just in modern economy. Given that more and more emphasis is put on knowledge-based economy now more than ever, knowledge has become the main factor the competitive advantage is based on and is considered as intangible asset. An increased interest in knowledge in organization and its management derives from the transition to the knowledge economy. Thus, the paper presents basic concepts of knowledge, with a particular emphasis on silent and explicit knowledge and their transformation into knowledge that all employees in the enterprise can use efficiently. The organizational knowledge management indicate the process of gathering, organizing and transferring knowledge among employees. In most organizations knowledge management is done by a system that serves as a base where all the knowledge in the organization is stored. In this paper an example of the concept of knowledge management is given –Pliva. Pliva is part of the pharmaceutical industry, which is based on the rapid flow of information and knowledge as well as research and development, ultimately giving an ideal example for application of a knowledge management system.