The considerations so far concentrate in three areas of the LGUs‘ functioning and concern the
issues of the individual (clerk), internal structure (a unit‘s organisational structure) and external
structure of an organisation (LGUs‘ environment). Such a view on knowledge management agrees
with the stand of K. E. Sveiby*
. That multi-directional knowledge flow gives the possibility to
absorb it, i.e. to learn. To ensure that the processes are as effective as required it is necessary to
first select and then indicate the needs in the area of knowledge and to take actions to supplement
it in those departments of the unit which have a deficit of knowledge. Creating knowledge (as this
process is called) bases on the interpenetration of its resources in three dimensions. These are:
knowledge worker (LGU clerk), knowledge team (formed by the particular departments) and
knowledge factory (viewed as a local government unit). Basing on the division into explicit and tacit