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case study of Nestle comapny


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

Published in: Leadership & Management
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case study of Nestle comapny

  1. 1. 1 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 : Products: Baby foods, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods etc.
  2. 2. 2 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
  3. 3. 3 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.
  4. 4. 4 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.
  5. 5. 5  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.