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Increasingly, ability of an organization to compete in the global village gets defined by its ability to manage its knowledge and knowledge workers. It is most apparent in knowledge-intensive industries such as software, biotechnology, consultancy and Pharmaceuticals However, knowledge management has become an important issue in all types of organisations and industries. It is being said that only those organisations that are able to create a culture for knowledge management will survive and grow It is in this context that this study was designed to examine and understand some of the problems being experienced in implementing knowledge management systems in Indian organisations. Further, the study also focussed on identifying what needs to be done to manage and institutionalize knowledge management processes and to create organisational culture for managing and motivating knowledge workers. In the first part of the paper we start with the discussion about context of knowledge organisations and how knowledge facilitates improving performance of traditional as well as knowledge organisations. The paper examines some barriers to knowledge management as experienced in a few Indian organisations that have implemented knowledge management systems. In the second part of the paper, we discuss organisational systems and processes, which can facilitate knowledge generation and knowledge sharing processes. In the last part of the paper, we discuss unique characteristics of knowledge workers and their concept-of-self Further, we examine how to attract, retain and motivate superior knowledge workers, involve them in …