In today's increasingly knowledge-based economy we are witnessing the arrival of a new type of business, whose key strategic asset is knowledge. Knowledge serves both as input in the business process, and is the end result of this process. Knowledge is incorporated in the products (the knowledge-rich products). In many of those enterprises, only 5% - 30% of the tasks relate to tangible production; the chain of value added becomes the chain of knowledge. In order to successfully manage a knowledge business, it is necessary to adjust its structure to natural knowledge flows, implement new incentive systems and reward the employees for sharing their knowledge. In an enterprise of that kind, the employees leave their knowledge at the employer's disposal; instead of directing the people, the employer should manage their competencies. It is also important to understand the essence of knowledge productivity. In the case of a manual worker, it is the work that controls the worker, whereas in the case of intellectual workers, it is the employee that controls the work.