This study conceptually identified performance rating index on knowledge activities of individual employee. Many researchers on knowledge management have been arguing an importance of employee’s knowledge activities such as knowledge acquisition, creation, sharing, and transfer. However, in spite of the fact that performance appraisal makes workers have a desirable attitude and behavior, it is not easy to find practical tools for rating index derived from knowledge activities of employees. This study suggests effective rating index to obtain knowledge, create novel and useful knowledge,