INTRODUCTIONIn the new millennium with the explosion of digital connectivity, the Malaysian government is utilizing ICT application by launching the Knowledge Management Strategic Master Plan with the aim of transforming the Malaysia to increase productivity, improve accountability, improve transparency and facilitate the public sector. Better knowledge management is essential for government agencies at the national, regional or local level, because government organizations are fundamentally knowledge-based organizations. Knowledge management has also become one of the initiatives and trends in the public sector especially in developing countries (Syed Omar Sharifuddin and Fytton Rowland, 2004). A similar view was expressed by Hafizi Muhamad Ali and Nor Hayati Ahmad (2006) based on their research describing knowledge management is becoming an undeniably important component of an organization's intangible assets. Therefore, according to the authors of their articles, Knowledge Management will need to be implemented as it brings many benefits to the Malaysian public sector environment in order to increase productivity, improve accountability and increase transparency. DEFINITION OF KNOWLEDGE AND KNOWLEDGE MANAGEMENT Abdullah (2009) provides an explanation of knowledge as a fluid mix of experience, values, contextual information, expert intuition and grounded intuition in order to provide an environment and structure for evaluating and incorporating new experiences and information. This study addresses the concept of KM applied in the mind of knowledge management, in simpler terms it means exactly that knowledge management. Knowledge management incorporates ideas and processes from many different sources and technologies, a wide variety of… half of paper. .....red and restrained. Using structured organizational assessment processes offers public sector organizations the opportunity to examine and improve their operations and create a workplace culture and climate that facilitates excellence. Challenge employees at all levels to focus on the mission and goals of the agency and to identify ways of working together as an organization rather than as individual processes and programs in order to provide the best possible services to constituents. Part of an organization's culture can provide the critical feedback that not only enables higher levels of performance, but that also engages the workforce in a way that utilizes their knowledge and skills in accomplishing the mission. The responsibility of agency leaders is to introduce, support and sustain the evaluation. Fundamentally, evaluation is not just a process.