SEMESTER PROJECT ON NESTLE

1. PRESENTATION
ON
HR FUNCTIONS OF NESTLE

2. GrOUP#2
BSCS 6TH SEMESTER
INSTRUCTOR :
M’AM NAYYAR SULTANA LASHARI

3. GCWUF

4. Group Members:
14-106 14-132
14-107 14-134
14-110 14-139
14-118 14-150
14-119 14-210
14-120

5. CONTENTS:
Introduction:
 History
 Mission & Vision
 Goals
 Logo
 Offices & Factories
 Products
Organization Hierarchy
HR Functions
 Hiring and Interview
 Training
 Orientation
 Performance Management & Appraisal
 Career Management
HR Departments inside the company or separate
SWOT Analysis
Conclusion
References

6. Introduction
 Nestle is a Swiss-German word which means “Little Nest” which is its trademark
 It was founded in 1866 by Heneri Neslte in Switzerland
 His first product was lectogen formula for infants by the name “Farine Lactee”
 Nestle is the world’s number one food company
 Ranked no. 13 in FT global
 2 Million 31 thousand people employed from all over the world
 Present in 86 countries of the global having 522 factories
 Over 700 products renovated or innovated in the past 5 years, with wellness in mind
 It is one of the main shareholders of LOREAL since 1974, the world’s largest cosmetics company

7. Mission & Vision statement
Mission:
“Their mission is to make better food
so that people live a better life”
Vision:
“Their vision is to bring consumers foods that are safe , of high quality
and provide optimal nutrition to meet physiological needs. In addition to nutrition,
health and wellness , Nestle product bring consumers the vital ingredients of taste and
pleasure”

8. LOGOs since 1868

9. Goals
“Marketing objectives are compatible with the overall corporate objectives of
nestle. Company’s objective is to be the world’s largest and best branded food
manufacturer white insuring that nestle name is synonymous withy the
products of the highest quality”

10. SMART Objectives:
 SMART Stands for Specific, Measurable, Actionable (or Achievable), Realistic (or
Relevant), and Time
So Nestle objectives should be:
 S = Specific:
In this they should know exactly what they want to achieve with all the details?.
 M = Measurable:
In this they evaluate that can they quantify their progress so they can track it?
 A = Attainable:
 Is their goal a challenge but still possible to achieve
 R = Realistic:
Is their goal realistic and within their reach?
 T = Timely/Time Bound:
Does their goal have a time limit?

11. Goals met by Nestle
 Good Food Good Life ,the key to health, nutrition and wellness
 Eradicate extreme poverty and hunger
 Achieve universal primary education
 Promote gender equality and empower women
 Reduce child morality
 Improve maternal health
 Insure environmental sustainability
 Develop global partnerships

12. Offices and Factories
 Head Office
Switzerland( Vevy)
 Corporate office
Lahore
 Corporate resident office
Karachi
 Regional sales office
Hyderabad
Lahore
Gujranwala
Faisalabad
Multan
Peshawar
Islamabad

13. Global Headquarters
 Canada
 Australia
 Brazil
 India
 Bangladesh
 China
 Congo
Nestlé has 522 factories in 86 countries around the world. We have about 2 million
31000 employees and sell our products in 196 countries. Nestlé is the world's leading
nutrition, health and wellness company with an unmatched portfolio of more than
2,000 global and local brands.

14. Products
Nestle have more than 2,000 brands, from global icons to local favorites. They help people live
more enjoyable, healthier lives, drawing on their 150 years of passion for nutrition to bring them
products they can trust. The strength of Nestlé’s brands has given the company an unparalleled
position on a global basis across a wide range of product categories.
Brands
Baby foods
Bottled water
Cereals
Chocolate & confectionery
Coffee
Culinary, chilled & frozen food

15. Products (cont’d)
Dairy
Drinks
Food service
Healthcare nutrition
Ice cream
Pet care
Weight management

16.  Nestle is associated with different companies.
The most important associated company is L’Oréal, the world leader in the cosmetics
L’Oréal markets over 500 brands and more than 2000 products in all sectors of the
beauty business: hair colour, permanents, styling ,aids, body and skincare, cleansers
and fragrances.

21. Organization Structure

23. Hiring & Interview:
 Application:
First of all we apply against any post that is may be in there website or
newspaper.
 Selection:
 After receiving the application, they’ll analyze the resume to measure the
match against the role profile.
 The next phase is a series of individual interviews with human resources team-
either by on-line, on phone, face-to-face interview.

24. Hiring & Interview (cont’d)
 Interview:
Interview is process in which a potential employee is evaluated by an employer for
prospective employment in their company, organization or firm. During this process, the
employer hopes to determine whether or not the applicant is suitable for the role.
 Types of Interview
 Selection Interview:
Conduct at the time of selection
 Appraisal Interview:
Give promotions and rewards.
 Exit interview:
when the employee leave the organization

25. Hiring & Interview (cont’d)
 Format of Interview
 Structured Interview:
Directive and standardized format.
 Unstructured Interview:
Non-directive and use for complex job.
 Content of Interview
 Situational Interview:
Give the situation and ask for solution.
 Behavioral Interviews:
Check the past experience of actual job.
 Job-related Interview:
Questions related to required job.
 Stress interview:
Check temperament and depression.

26. Administration of Interview
 Structured sequential interview:
 Standardized questions
 Conducted by interviewer in a sequence
 Unstructured sequential interview:
 Ask questions as comes to interviewers’s mind
 Panel job interview:
 Group of interviewers interview the candidate
 Mass interview:
 Group of interviewers interview the group of candidates
 Web-assisted interview:
 Uses internet technology
 Phone interview:
 On call interview in order to save the time

27. Training & development process:
Training:
Training is the process of teaching new or existing employees the basic skills
they need to perform their job.
The training and development process:
 Need analysis
 Instructional design
 Validation
 Implement the program
 Evaluation

28. Nestlé's Training and development
process
 It must be admitted that the company culture has learning. All
employees try to upgrade skills and knowledge continuously. So
employees are willing to learn to be recruited by nestle,
 Training and development is done on-the-job. Every manager has a
duty to guide and train employees for their progress.
 Formal training program are arranged with purpose of improving
pertinent skills and competencies. Beside these programs perform
individual development. As a result one can’t get reward by attending
programs.

29. Nestle's Training and development process
(cont’d)
 Manager of Nestle measure progress which can be achieved by training program.
The purpose behind this is to motivate employees by providing attractive but
realistic career that helps them develop their skills over a long time period within
the area of economic reality and a changing environment.
 The act of mentor is done by each manager for his employees.
 Formal assessment of nestle is done once a year on a standard basis it gives
feedback on past performance and future performance. Other related aspects
concerning a staff member performance are provided feedback.

30. Nestle’s Training and development process
(cont’d)
 Nestle also provide international training programs. International training
center located near Nestlé's company corporate headquarter in Switzerland.
 Apprenticeship program have been an essential part of training where the
young trainees spent three days a week at work and two days at school

31. Orientation:
 A procedure for providing new employees with basic background information
about the firm.
New employee
orientation
Organizational
structure
Company
Background
Benefits
IT System

32. Purpose of Orientation:
 The new employee should feel welcome and at ease.
 He or She should understand the organization in a broad sense.
 The employee should be clear about what is expected in terms of work and
behaviour.
 The person should have begun the process of becoming socialized into the firms
ways of acting and doing thing.

33. Orientation Process:
 It may for days, weeks or year.
 Supervisors follow-up and encourage new employees to engage in those activities
that will enable each to learn and quickly become productive.

34. Two Types of orientation:
 Overview Orientation
 Job specific Orientation

35. Overview Orientation:
 Basic information:
 The department and the branch.
 Important policies and general procedures (non-job specific)
 Information about compensation and benefits
 Safety and accident presentation issues
 Employee and union issues (rights, responsibilities)
 Physical facilities

36. Job Specific Orientation:
 Tells about:
 Function of the organization
 Job responsibilities, expectations and duties
 Policies, procedures, rules and regulations
 Lay out of workplace
 Introduction to co-workers and other people in the broader organization.

37. Nestle Orientation: First day
 Attire
 Subsidized meal and free beverages
 Pick and drop services
 No smoking, but especial areas
 No entry without employee I.D card
 Work place rules
 Safety and security issues

38. Nestle Orientation: Second day
 Personal financial security benefits:
 Gratuity= service benefit after resignation or retirement
 Provident fund= you and company pay for it so that you can buy home, shares or
payment for insurance premium.
 Pension fund( your choice)

39. Continued
 Total remuneration:
 It based on market data and company’s affordability
 Total remuneration = 60% of basic salary + 40% bonus, perks and benefits
(annual)
 Annual performance bonus depend upon your
 division and company’s performance.

40. Continued
 Training and Development:
 Internal, external, on-the-job, cross functional rotation and international assignments.
 sophisticated tools like PE/PDG which monitors and evaluate performance.
 Performance evaluation is based on:
 1 year in terms of achieving your objectives as well as demonstrating nestle leadership
behavior.
 Our online system is highly objective and transparent, which means performs are
visible throughout the organization.

41. Continued
 Leave:
 Casual leaves : 10 days per year
 Medical leave: 10 days per year
 Annual leave: 15 days per year
 Hajj leave: 40 days if drawn from nestles’ hajj ballot.
 Maternity leave: 3months, may extended till 6months

42. Continued
 Travel and relocation:
 If high performer then chance to travel or relocate to other countries. You don't
have to worry Administration Service Department will do it.
 Having trouble at work:
 If any (harassment) you are requested to share it with your superiors, HR or
compliance hotline.

43. Continued
 Other benefits:
 Eid gift hampers and substantial discount at staff shops.
 Educational assistance
 Medical coverage
 Dar care
 Mobility benefits
 Vehicle policy
 Mobile communication

44. Continued
 Values and Principles:
 Core guiding documents are:
 “The Nestle Management and Learning Principles”,
 “Nestle Leadership Frame” and “Code of Business Conduct.
 Nestle core value:
 People source of energy
 Continuous training and improvement of skills.
 Respect n cultural diversity

45. Nestle Orientation: Third day
 Employees have given all necessary information required to perform their jobs.
 Familiarization of work place
 Employees position including roles, duties and outline about how the position fits in
overall workplace and organization structure
 Workplace protocols.

46. Performance Management System
 Performance management is the continuous process of identifying,
measuring and evaluating the performance of the individuals and teams
and aligning their performance with the organizational
goals.

47. Performance Management Process
Monitoring
activities
Developing
Evaluating
/Rating
Rewarding
Plan & Set
Goals

48. Performance Appraisal
 In performance appraisal system there are just evaluation of the employees that
whether they working well & either they are satisfied with the job done by them or
not
 Performance appraisal is a developmental tool that is used to measure
factors such as :
 job knowledge
 quality and quantity of output
 leadership abilities
 dependability, co-operation & judgment,

49. Nestle Performance Scorecard
Measurements Below Par Par Above
Par
Standards Manager’s assessment
Leadership,
Ethics/Integrity
Customer Interaction
Community Involvement
Contribution to Overall Business
People Manager’s assessment
Performance
Teamwork
Training & Development
Employee Satisfaction
Control Auditors’ standards
Audit
Legal
Regulatory

50. Objectives & Uses of Performance
Appraisals
 Promotions
 Validations
 Training and Development

51. Performance Management vs.
Performance Appraisal
 Performance management:
 Dynamic(Lively ,active), continuous process.
 Improves organizational effectiveness.
 Used to achieve strategic goals.
 Performance appraisal:
 Periodic (usually annual) event.
 Formal/official review(evaluation).
 Last step in performance management process.

52. Method of performance appraisal used in
Nestle company
 Being a remarkable company, nestle use some effective performance appraisal
method that alien the employee to achieve strategic goal.
 Nestle HR management follow
 self-rating
 appraisal by subordinates
 rating committees (nestle academy)
 mostly use 360 degree feedback

53. 360 Degree Appraisal System:
 Nestle uses a 360 degree approach to do performance appraisals of the
employees or of the management process.
 It is used to evaluate employee’s qualities such as talents, behavior, values, ethical
standards, loyalty etc.
 The results are purely for feedback and not for compensation.
 360 appraisal was developed by General Electric(GE), USA in 1992

54.  This appraisal method is made by top management , immediate supervisors, peers
,subordinates, self and customers.

55.  The concept of 360 degrees comes from the number of degrees in a circle. Every point at the
edge of the circle provides a direction or a dimension to its center. So providing an employee
with 360degree feedback means that feedback comes from all directions .This leads toward
validity and reliability of the performance appraisal.

56. Career Management
Career management is the process through which employees :
 become aware of their own interest ,values , strengths and weaknesses.
 Identify the goals
 Establish action plans to achieve career goals
 Why career management ?
If the company is failure to motivate their employees about career plans it can be
result of :
1.Ashortage of employees to fill open positions
2.Lower employee commitment

57. Career Management (cont’d)
3.Feelings of not valuable by company
4.Frustation
Functions of Nestle management
 Planning
 Organizing
 Directing
 Controlling
Nestle company merge all these functions and set a good career plan.
All functions are performed with proper management under the trained and good managers
.
An example of these principles occurred in the baby formula segment of market.

58. Career Management (cont’d)
Nestle follow these functions as well as manages all employees ;
 holding that everyone is involve in their actions.
 Each new member joining Nestle is to become a participant
 In developing a sufficient quality culture which implies a Commitment to the
organization
 Moreover , for managerial positions specific leadership qualities are Required.
 Even when promoting employees within the organization , it is the role of
management and HR department to keep an eye on valuable candidates from
outside

59. SWOT ANALYSIS OF NESTLE
 Strength:
 Very long history (over 150 years)
 Operated factories in 77 countries ,a truly global company
 considered the innovation leader in the global food and nutrition sector(3500 scientist in
company R&D network)
 Low cost operators (beat the competition by producing low cost products , edging ahead
with low operating costs)
 Offering thousands of local products
 Have a great CEO, peter Brabeck , and a very strong workforces
 Weaknesses:
 Not as successful as they thought they would be in some market (i.e. France)
 Some of their product were positioned as too scientific and
consumers didn’t quiet understand (i.e. LC-1 was a food and not
a drug)

60. SWOT Analysis of Nestle(cont’d)
 Opportunities:
 Well known company and strong brand name .
 Health base product are becoming more popular in the world, including in the
united states.
 Ranked first in nearly all the product segments in which it operated
(market leader).
 Threats:
 Some markets they are entering are already mature
 Global Competitors.
 There are intense competitions in the united states, especially yogurt
market(general mills).

61. CONCLUSION
 In conclusion we provide our point of view regarding the elements of high
performance system that Nestle is good in its performance but in some cases it
needs to improve and there are some negative things and there are some positive
things which we observe in our finding about the performance of the nestle. Nestle
performance management is high but not the maximum so of the maximum
performance management Nestle needs some improvement

62. CONCLUSION(cont’d)
 But our whole research is that the performance management system of an
organization can be improved moreover they can develop a performance
management system in which they define Vision statement of the company than
set the goals, implement them and then review or monitor them on the quarter
yearly basis, then make 360 degree assessment of the employees by this the
performance of the employees as well as performance of the organization can be
achieved.

63. References
 www.google
 www.slideshare . net
 http://documents.tips/documents/hrm-nestle-56241a277a2ff.html
 https://www.slideshare.net/bomarayag/nestle-8139996?next_slideshow=1
 https://www.slideshare.net/waheeducp/nestle-final-project
 https://www.slideshare.net/oakhOlly24/nestle-ppt-13909217
 https://www.google.com.pk/search?q=nestle+company+slideshare&rlz=1C1AVNE_
enPK730PK734&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiNtL2v3cfTAhVIyR
QKHXhBArkQ_AUIBigB&biw=1034&bih=723#imgrc=fg7RvfSawa6bhM: