The first element, organizational structure, determines the manner
by which decision is made as well as the accountability for material and
human processes and resources. Organizational structures vary. They can be
vertical or horizontal. Depending on the objective of the organization, one
type of organizational structure may favor knowledge sharing and knowledge
management practices than others. For example, in organizations where
creativity and innovation are the most important assets, a horizontal structure
that empowers the employees and has few layers of hierarchy will be more
conducive to knowledge sharing and management.