The purpose of this work is to highlight The Effect of Knowledge Management on Organizational Performance specifically the study aimed to pursue the following objectives to determine the relationship between knowledge management and organizational performance; to evaluate the importance of training and development in the Nigerian manufacturing sector; to ascertain the impact of motivation on employees level of commitment in knowledge sharing and to evaluate how E-learning tools affect knowledge sharing in Nigerian manufacturing sector. The study had a population of 948 employees drawn from three manufacturing firms in Enugu State. The sample size of 284 was drawn using Taro Yamane formular at 5% error of tolerance and 95% level of confidence. Instrument used for data collection was the questionnaire. A total of 284 questionnaires were distributed while 246 were returned. A descriptive survey research design was adopted for the study. Four hypotheses were tested using Pearson statistical package for social sciences. The findings indicates that knowledge management had positive impact on performance organization; training and development affected employee performance positively; employee motivation has positive impact on the ability to share knowledge, and E-learning tools affect knowledge sharing positively in Nigerian manufacturing industry. The study conclude that organizations needs to improve existing skills and acquire new ones via knowledge management so as to have competitive advantages over organizations that do not practice knowledge management. The study recommends that Nigerian managers should fashioned out ways of implementing knowledge management that is most suitable for the organizations in order to enhance performance taking into consideration the nature of the organization and culture of the community where the organization is located and the prevailing situations facing the organization at a time.
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