Why do organizations undertake knowledge management?

Organizations undertake knowledge management primarily to ensure that organizational knowledge isn't wasted. This involves systematic approaches to capturing, sharing, and utilizing knowledge within the organization. By managing knowledge effectively, organizations can retain valuable insights and expertise, which might otherwise be lost due to employee turnover, retirement, or other changes.

Effective knowledge management enables organizations to foster a culture of learning and continuous improvement, making it easier for them to innovate, solve problems, and enhance overall performance. It also helps streamline operations by ensuring that the right information is accessible to the right personnel when needed, thereby enhancing decision-making and efficiency.

The other options do not align with the foundational goals of knowledge management. For instance, increasing employee turnover would undermine the stability of knowledge retention, limiting an organization's ability to utilize its intellectual resources effectively. Limiting information sharing among departments contradicts the purpose of knowledge management, which is to promote collaboration and the free flow of information. Increasing external competition does not relate directly to knowledge management but pertains more to market strategies and positioning.