The relevance of this study is determined by the fact that at the present stage knowledge becomes the most valuable resource for the development of the economy and society. That is why the system of higher education, which lays the foundations of knowledge development management, should be based on modern developments of researchers on the issue of ensuring the effectiveness of knowledge management. However, there is a problem in this issue, in particular, what research should be emphasised when developing the conceptual framework of knowledge development management of university students. This is due to the fact that for the first time the scientific justification of knowledge management was carried out on the basis of the results of practical developments in the conditions of enterprise work (in particular, the issues of personnel motivation were formulated in the works of American authors as knowledge management tasks).

The aim of the study is to substantiate the psychological and pedagogical foundations that ensure the effectiveness of knowledge management of students in higher education, formulating the competence base of the teacher that meets the challenges of innovative development.

The research methods were: analysing the works of researchers on the issue of ensuring the effectiveness of knowledge management; formulating our own conclusions based on the analysis of researchers' works.

We believe that the concept of knowledge management today is the main task that requires implementation and provision on the issues of development of methodology of university development strategies, in personnel and didactic issues of training teachers of universities of a new formation. Conclusions are drawn about the need to ensure effective knowledge management, which, according to the authors, requires the development of psychological and pedagogical skills of the teacher. The model of psychological and pedagogical competence of a teacher is proposed.