1. Nestle
Introduction:
Nestle S.A. is the largest nutrition and Foods Company in the world. Founded and
headquartered in Vevey, Switzerland. It can trace its origins back to 1866, when the
first European condensed milk factory was opened in Cham, Switzerland, by the
Anglo-Swiss Condensed Milk Company. One year later, Henri Nestle, a trained
pharmacist, launched one of the world’s first prepared infant cereals ‘Farine lactee’
in Vevey, Switzerland. A global market leader in many product lines, including
milk,chocolate, confectionery, bottled water and pet food.
Company name: Nestle
Industry : Food Processing
Headquarters : Vevey, Switzerland
Company type : Multinational Company
Key persons : Peter Brabeck-Letmathe (chairman),Paul Bulcke (CEO)
Products : Baby foods, coffee, dairy products, breakfastcereals,
confectionery, bottled water, ice cream, pet foods ….
Revenue : 83.64 billion (2011)
Operating income : 12.53 billion (2011)
Profit :9.487 billion (2011)
Total Assets : 114.09 billion (2011)
Total Equity : 58.27 billion (2011)
Employees : 3,28,000(2012)
2. History:
Nestle was formed in 1905 by the merger of the Anglo-Swiss Milk Company,
established in 1866 by brothers George Page and Charles Page, and Farine Lactée
Henri Nestlé, founded in 1866 by Henri Nestlé. The company grew significantly
during the First World War and again following the Second World War, expanding its
offerings beyond its early condensed milk and infant formula products. The company
has made a number of corporate acquisitions, including Crosse & Blackwell in
1950, Findus in 1963, Libby's in 1971, Row tree Mackintosh in 1988 and Gerber in
2007.
Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent of
the Swiss Market Index. It has a secondary listing on Euronext. In 2011, Nestlé was
listed No. 1 in the Fortune Global 500 as the world's most profitable corporation.
With a market capitalization of $ 200 billion, Nestlé ranked No. 13 in the FT Global
2011.
Organizational Culture of Nestle:
Nestle has strong corporate culture which is reflected by the company logo itself. The logo,
“Good Food Good Life” which is always attached to its products is the main guidance for every
activity within the company. The company culture which is related its people structure. It
has the culture of team focused and open door policy which become one of itscorporate
strengths.
4. Performance of Human Resource Management in Nestle:
Nestle, the largest FMCG Company is working all over the world with
more than 500 factories in 86 countries making up of most of the continents. Henri
Nestle set up Nestle in Switzerland. Customers are provided with more than 500
products by Nestle. Nestle was entitled by Henri Nestle.
The logo of the company consists of his family coat of arms, the nest with
a mother bird protecting her young. The symbol of the company is associated with its
care and attitude to lifelong nutrition. The Nestle nest bears the meaning of
nourishment, security and sense of family that are important to life.
HR activities at Nestle:
Recruitment: The current report is that innumerable employees are engaged
in Nestle, Nestle hires most of the employees through a method. An
opportunity of employment comes when some employees want to resign or
there is an urgent need. But in case of these three situations the head of the
department must have to obtain consent of the managing Director (MD). The
Divisional Head fills up a “Recruitment and Budgeted Form” if the request is
approved.
Performance Appraisal: The corresponding manager or supervisor evaluate
or Judge the Job performance of an employee by a method like performance
appraisal, employee appraisal, and performance review or development
discussion. The employees are given importance at their work place as the
Nestle Company is absolutely dependent on the quality of its employee’s
performance. The company pays incentives to its employees to encourage
them to give better performance.
Compensation Benefit: Compensation is a main thing of Nestle Real
Rewards package, which forces the top performers to give their best. The
philosophy of Nestle is to afford and keep up disciplined compensation
programs that keep up a long term relationship with employees at the time of
judging their performance. Nestle promise to offer compensation packages
including base pay, short and long term incentives and benefits,. Nowadays
they are competitive in market.
Leadership policies of Nestle:
In an increasingly dynamic world, leaders face significant challenges and
opportunities.
Lead to win:
Has built credibility as a result of coherent action, leadership and
achievement.
Believes in the importance of alignment and management of
expectations.
Has a broad interest, a good general education, responsible
behavior as well as a balanced lifestyle.
5. Manage for results:
Values proactive cooperation in order to create synergies at
local, regional and global levels.
Embraces change and is able to implement it and manage its
consequences.
Believes in achieving business objectives rooted in compliance
and sustainable practices.
Objective of the Organization HRM:
The protection of its employees is Nestle first priority because
employees are the asset of this company. To maintain the global corporate standard
Nestle focuses on the need for safe working environments. Nestle has resolved to
provide a safe working environment for all their employees, contractors and visitors
and they are trying to implement Health and safety practices and programs at all
working places objectives of the organization are
We provide a safe work place to owe employees.
We lessen risks of our employees and contractors and visitors and take care of
their injury or illness.
We meet all requirements like health, safety, legislative etc.
We establish and monitor new purposes to decrease work related injury or
illness.
We develop an efficient injury management system which helps the affected
employees return to work.
We supply information, provide training to employees and contractors to
make them aware of their roles and responsibilities in decreasing the risk of
work place injury or illness.
We are encouraged a safety and Health management from our suppliers and
contractors.
We discuss on Health and safety matters with employees and other
stakeholders.
Method of HRM at Nestle:
The Nestle group in the area of interpersonal relations and its
management style and the corporation values are stated as follows:
Their respect demands specific attitude that is worthy to be highlighted in the
present policy.
For taking any advice and decision Nestle depends on its employees. So Nestle
has a ‘Democratic Leadership Style’.
If the company is able to attract employees and develop its growth
continually, they will easily achieve a long term success. This is a primary duty
of all managers. The principle of the Nestle policy is to hire staff with personal
attitude and professional skills because it will make them able to consolidate a
long term relationship with the company. Hence ‘the potential for
professional advancement’ is an important standard for recruitment.
6. In Nestle people are dealt with respect and faith. There is not
intolerance, harassment or discrimination in the management and this principle is
applied and maintained at every stage and situation.
Nestle management does not work in complexity and they are
honest in behaving with customers and employees for excellent communication. The
Nestle is improving continuously for their sincerity in work, dialogue and
transparency.
HRM Models:
The source approach to HRM gives importance on an employee to be
‘resourceful’ who increases performance by using motivation, communication,
leadership to increase commitment and loyalty. The soft model considers that if
satisfaction is increased it will be the only way to go about in the management
against various estimated methods possibly used in the hard model.
The Objective of HR /Manpower planning:
Manpower planning is done to balance and develop the organizations
ability to meet its goal by developing Strategies that will contribute its optimum
contribution of human resource. The line manager and staff manager take the
responsibility of Manpower planning. The line management gives the estimate of
manpower requirements and staff manager works on selection and recruitment
related to line manager to whom man power is vital.
Organizations HR Planning and development:
What the employee requires can be understood by an effective
mechanism called HR planning. HR planning can manage the changes in the
organization like growing decrease in requirements of employees. HR planning
implements new recruitment and hold skilled and efficient staff by understanding
easily the needs of future
Training and development of Nestle:
It must be admitted that the company culture has learning. All employees try
to upgrade their 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 programs are arranged with purpose of improving pertinent
skills and competencies. Besides, these programs perform individual
development. As a result one cannot get reward by attending programs.
Manager of Nestle measures progress which can be achieved by training
programs. The purpose behind this is to motivate employees by providing
attractive but realistic career that helps them develop their skills over a long-
term 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 potential. Other related aspects
concerning a staff member’s performance are provided feedback.
7. Objective Evaluation of the Organization:
Human resource managers should identify human resource strategies
like flexible dynamic employees are attracted, selected and then trained and
motivated to be more productive than the competition. Human resource managers
are not administrators but strategic partners.
Inspire of being Human Company Nestle has most of the above
mentioned qualities seen in the managers of present time. The role of HR at Nestle is
changing for certain factors. The HR managers at Nestle focus on following qualities
along with professional skills and practical experience:
The HR managers should develop and motivate employees by addressing the
issues that help others to improve in their work and their ability.
The managers should be curious and broadminded and interested in other
culture and lifestyles including continuous learning and sharing knowledge
and ideas freely with others.
Performance Management:
The function of performance management is to ensure the fulfillment
of goals in an effective and efficient manner. Moreover, it watches performance of
organization and process of production, employees etc.
Performance Management at Nestle:
Line managers and HR assess formally once in a year and get feedback.
Subordinate managers can interrogate for an unfair evaluation.
The HR department has enlisted specific key performance indicators.
Remuneration structure and promotion criteria consider individual
performance. HR staff must help the management in elaborating training
programs. Sufficient training programs are developed at the level of every
working company that capitalizes on the availability of local regional or global
resources of the group.
Some training programs improve the language skills of the employees. These
programs also try to consolidate corporate cohesion as well as to promote
networking throughout the group. They develop and share best practices of
the different management disciplines practiced in the group.
E-learning programs are alternative to formal training programs.
Competency profile mapping:
Competencies are accumulated by totalizing success factors important for
obtaining good results in a particular job or in a particular company at nestle.
Success factors are made up of knowledge, skills and attributes that are stated
in case of particular behaviors and are exhibited by efficient performers in
those works.
Attributes include personal characteristics, features, motives, values or ways
of thinking affecting an individual’s behavior:
Competencies in organization can be divided into two categories-
8. 1. Personal functioning competencies that include broad success factors
untied to a specific work function or industry. These competencies often notice
leadership or emotional intelligence behavior.
2. Functional/Technical competencies involve specific success factors within
a given work function at nestle.
Critical Analysis of HR Performance:
The performance of an organization must be analyzed for the development.
This analysis makes revaluation of existing strategy possible and easy to
understand the faults so that organization can rectify them at once.
Recruitment, training and development of employee’s caliber have been done
with high standards.
HR Management provides best working conditions with suitable growth
opportunities.
Employees must maintain rules and regulation of the country.
HR Management keeps the record of the best performing employees and
gives them opportunities for growth.
It is clear that Nestle emphasizes on personal achievement and the pay
structure HR has planned for its employees and the company also mixes practices
like Job Enrichment and Job enlargement, to motivate employees and to break the
monotony of their Job tasks. An example of Job enlargement is the correspondent
who acts both in sales and brand management department.
