The UK knowledge economy is actually information knowledge economy which is concerned with the impact of the knowledge economy on the knowledge production of organisational management.Knowledge as a product has acquired many management executives to research it in a broad spectrum where its government has become a major concern in building international strategy, innovation and performance. Knowledge as a tool examines the outcomes of knowledge processes, and what we mean by knowledge economy is to make the best out of this tool. The knowledge economy is a product of strategical organisational fields that possess the capability to fulfill human capital inputs by increasing number of technologies (Brusoni et al, 2001).At an institutional level knowledge economy defines various levels to which regional or organisational policies are shaped in context with economic regimes. With knowledge comes innovation and a knowledge-enabled organisational environment adopts and implements knowledge strategies and develops knowledge culture in order to sustain competitiveness in the long term. However, the extent to which a knowledge economy is possible depends upon the organisation’s primary levels of knowledge and innovation it can sustain (Hyde Mitchell, 2000). Under the heading of a knowledge economy lies increasing competitive pressures which are the outcomes of deregulation and internalisation.Governing knowledge under strategic management has been a critical issue that requires performance management to create definitions in context with the UK economy where Knowledge Movement initiate various processes that include sharing and transference of knowledge not limited in a specific cultural context, but entails cross-cultural origins where integrating effects within and between organisations are managed. Gratton et al (1999) suggest that various research measures on a knowledge economy are dependent upon the influences that are acquired through the appropriate use of knowledge with expertise that brings credibility to the HR department (Gratton et al, 1999: 13).