Knowledge Management and Change Management – Term Paper

Knowledge Management and change Management

This section will integrate knowledge management on the child labor issue facing the Nestle Company. However, before looking at how the two are related it is important to have a brief overview of what knowledge management entails. Typically, knowledge is an essential strategic resource to any organization. The success or failure of an organization is largely pegged on the knowledge capacity that the organization has. Nestle company uses its knowledge as a basis for competitive advantage. Knowledge management plays an integral role in change management. Introducing a knowledge management (KM) processes or practices needs a change of the companys behavior and routines. Kittler (2005) in his classical research examined the possible practices and came up with eight steps of change management processes. Nestle company has taken into consideration the eight processes into its child labor issue change management process. The company took into consideration formation of a supportive coalition, creation of a vision of the child labor issue change, relaying or communicating the vision and mission, getting rid of any possible hurdles, creation of short term wins then consolidating the outcomes and ensuring that the changes are embedded into the organizational culture (King, 2001 However, the Nestle management has been able to avert this challenge by defining the new conditions and terms of employment relationship into three categories. These dimensions include; the formal dimension which involves giving job descriptions, relationships, tasks and processes and compensation. The second dimension is psychological dimension that focuses on equity of the work as well as the remuneration. The final dimension is the social dimension which entails the unwritten values and rules. Furthermore, the company has thrived in encouraging its employees to embrace the new changes. Similarly, there is a correlation between organizational learning and knowledge management. Nestle Company has thrived at ensuring that their employees are made aware of any new children initiatives within the company. In the case of any change that will need new knowledge, the employees are trained on how to use the new processes and systems. In so doing their overall knowledge increases as they gain more insights. Furthermore, the KM process directly enhances the process of organization (King & Haney, 2008). For example innovation, collective learning, individual learning, collaborative decision-making. It enhances organizational procedures produce intermediate results like the better decision, products, services, relationships and organizational behavior. The overall outcome is an improved performance of the Nestle Company. The figure below depicts the overall impact of knowledge management;

Furthermore, the figure below provides an explanation of the process cycle of knowledge management. The models are provided in the manner in which one Nestle Company perceives the process of KM. There are a number of models introduced to that look into the relationship between the elements and steps of knowledge management. Some of the models include the Davenport and Prusaks (2000) 3-stage model and the Ward and Aurums (2004) 7-stage model. However, the fig 2 model is valued more since it deals with the major terminologies of a number of activities that can help to make branch roads to make essential and better decisions.

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Moreover, the other essential aspect that must be taken into consideration is the four points under the title of Creation that are referred to the Nonakas (1994) four types of knowledge creation. For Nestle to accrue the best integration of knowledge management and its child labor issue change management processes, it must incorporate the following different types of knowledge creation.

   Socializations that includes the transformation of skilled knowledge into new tacit information with the help of social interactions

   Industrialization is the process that deals with the creation of new knowledge from the existing one.

   Combinations that focus on the development of new overt knowledge by integrating the sections and also synthesize the existing knowledge

   Externalization that deal with the conversion of knowledge.

The one who has an interest in the KM about gaining the knowledge, at times ignore the fact that KM main objectivity which is the improvement of group performance. All other development is the basis that the organization carries, to evaluate the value of KM initiatives. There are some other shots down; the reason is that the KM experts do not take the efforts to assess or forecast the sufficient situations,

Nestle company management team can also implement some knowledge management strategies. It can implement the following two strategies; knowledge management codification and personification. Typically, Codification is mostly employed in the form of electronic document systems that organize, permit and store knowledge. It can easily be distributed and re-used. This strategy is based on re-use economics. Participatory in acquiring or creating a knowledge asset and re-use countless. Secondly, enhance developing network knowledge, share and transfer to societies. Channeling individual expertise based on the expert economics, it is channeling individual expertise to the one with less expertise who may use it for further organizational goals. Earls (2001) also defined that some KM strategies in more in-depth details. In his research he found out those knowledge management strategies involves systems, commercials, processes, strategies, cerographic, organizational and social.

Relationship between knowledge tracking and change management

From above figure, it can be deduced that knowledge management tracking can be attained through different platforms. The Nestle Company can gain requisite knowledge from these platforms that can be of great significance to its knowledge management. It can utilize different search engines through content tagging, keyword search and full-text search. It can also track its information or knowledge through blogging, repositories, contests, badging, gamification and articles. Knowledge tracking can also be done through collaborations in boards, discussions, social media such as Facebook and Twitter, instant messaging and ideations (King, 2002). Therefore, it is clear that with an effective knowledge management tracking system the company is more likely to experience a harmonious flow in its change management process.

Integration of knowledge management in change management

Essentially, Nestle Company being Multinational Corporation it has employees that are diverse about their race, ages, citizenship among other demographics. The company operates in more than 80 countries. Furthermore, the company embraces democratic leadership meaning it gives its employees an opportunity to participate in knowledge creation through engaging them in decision making. Since the employees come from different countries and diverse backgrounds they can share their insights and best ideas agreed upon. These ideas have been essential in implementing change in the company.


In conclusion, it is clear from the above analysis of the Nestle Company that despite the company being among the leading corporations in the world, it has been faced with a lot of change management issues that has hindered some of its operations and tainted its public image. The major change issues that have faced the company include the child labor issue, unethical and boycott issues and re structuring the Nestle company issue. However, this paper has analyzed how the company has responded to the child labor issues and how it has mitigated this issue. Further, the relationship between change management and knowledge management, knowledge tracking and knowledge migration in relation to the Nestle child labor issue has also been analyzed.


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