Case study of HRD of Nestle company. useful for management students as well as students of engineering.

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Case study on
HUMAN RESOURCES MANAGEMENT
Of
“NESTLE”
Company name: NESTLE
Industry: FOOD PROCESSING
Headquarters: VEVEY, SWITZERLAND
Company type: MULTINATIONAL COMPANY
Employees : 3,28,000(2012)
Website : www.nestle.com
Products: Baby foods, coffee, dairy products, breakfast cereals, confectionery,
bottled water, ice cream, pet foods etc.

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ABOUT COMPANY:-
Nestle is a Swiss multinational food and beverage company headquartered in
Vevey, Switzerland. It is the largest food company in the world measured by
revenues
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.
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.
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.
 Performance Appraisal: The corresponding manager or supervisor

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evaluate or Judge the Job performance of an employee by a method like
performance appraisal, employee appraisal, and performance review or
development discussion.
 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.
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 develop an efficient injury management system which helps the
affected employees return to work.
 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’.
 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.

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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
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.

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 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.
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.
 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.
CONCLUSION
 The prospective customers of NESTLE have changed from kids to adults-
including every family member to celebrate any occasion with Nestle
products.
 No matter the reason or the season, HRM ofNestle focus on creating
moments of pleasure with every tasty bite.