ITIL 4 Foundation Practice Exam

What is a primary outcome of effective knowledge management?

1. Higher employee turnover

2. Improved organizational effectiveness

3. Reduced need for resources

4. Increased internal competition

The correct answer is: Improved organizational effectiveness

A primary outcome of effective knowledge management is improved organizational effectiveness. Knowledge management focuses on capturing, distributing, and effectively using knowledge within an organization. By ensuring that valuable information and expertise are readily available to employees, organizations can enhance decision-making processes, foster innovation, and streamline operations. When employees have access to accurate and timely knowledge, they are better equipped to perform their tasks efficiently, which leads to increased productivity and collaboration. This collective intelligence drives improved workflows, reduces redundancies, and ultimately contributes to achieving the organization's goals more effectively. In contrast, higher employee turnover, reduced need for resources, and increased internal competition do not directly result from effective knowledge management. While it may influence aspects of resource use and workplace dynamics, the fundamental purpose and benefit lie in enhancing organizational effectiveness.