INTRODUCTION OF NESTLE

Nestle is the leading FMCG company of Switzerland established by Henri Nestle.

Nestle is serving worldwide with its more than 500 factories in 86 countries
comprising almost all continents. Nestlé’s product portfolio is more than 500
products all over the world serving best to their customers.

Henri Nestlé endowed his company with the symbol derived from his name. His
family coat of arms, the nest with a mother bird protecting her young, became the
Company's logo and a symbol of the Company's care and attitude to life-long
nutrition. The Nestlé nest represents the nourishment, security and sense of family
that are so essential to life.

The first product made by Henri Nestlé, a food for babies who were unable to
breastfeed. His first success was a premature infant who could not tolerate his
mother's milk or any of the usual substitutes. People quickly recognized the value of
the new product, after Nestlé's new formula saved the child's life, and soon, Farine
Lactée Henri Nestlé was being sold in much of Europe. Nestlé has been serving
Pakistani consumers since 1988, when the parent company, the Switzerland-based
Nestlé SA, first acquired a share in Milk pack Ltd.(1)

Nestlé is committed to the following Business Principles in all countries, taking into
account local legislation, cultural and religious practices:

• Nestlé's business objective is to manufacture and market the Company's

products in such a way as to create value that can be sustained over the long
term for shareholders, employees, consumers, and business partners.

• Nestlé does not favor short-term profit at the expense of successful long-term
business development.

• Nestlé recognizes that its consumers have a sincere and legitimate interest in
the behavior, beliefs and actions of the Company behind brands in which they
place their trust, and that without its consumers the Company would not exist.
NESTLE VISION

The consumer's voice is the key to Nestlé Pakistan's vision and working. Whether
you live in the remotest village or the city of Karachi, Nestle consumer services team
stands ready to listen to your concerns and provide answers about our products and
guidance on matters of health and wellness.(2)

Nestlé’s global vision is to be the leading health, wellness, and Nutrition Company of
the world. Nestle’ Pakistan subscribes fully to this global vision. In addition to that,
Nestle Pakistan also envisions to:

• Lead a dynamic motivated and professional workforce that is proud of its

heritage and bullish about the future

• Meet the nutritional needs of all age groups through a diversified product
range that contains an innovative portfolio of branded food and beverages of the
highest quality

• Maintain long-term growth and deliver shareholder value

• Establishing responsible communication with the consumer which in turn can

provide us a better look into what changes need to be made to our products

• Strengthen the position as the best career destination for talented and
motivated individuals
 NESTLE MISSION

“Nestle is dedicated to providing the best foods to people throughout their day,
throughout their lives, throughout the world. With our unique experience of
anticipating consumers' needs and creating solutions, Nestle contributes to your
well-being and enhances your quality of life.”(3)

NESTLE GOALS AND OBJECTIVES

Nestle business objective is to manufacture and market the Company's products in

such a way as to create value that can be sustained over the long term for
shareholders, employees, consumers, and business partners.

Nestle recognizes that its consumers have a sincere and legitimate interest in the
behavior, beliefs, and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist.

Nestle continues to maintain its commitment to follow and respect all applicable local
laws in each of its markets.

At the entrance of this new millennium, Nestlé’s objective Is to consolidate and

strengthen its leading position at the cutting edge of innovation in the food area in
order to meet the needs and desires of customers around the world, for pleasure,
convenience, health and well being.(3)
ORGANIZATIONAL STRUCTURE
 HUMAN RESOURCE PLANNING

Planning encompasses those guidelines which constitute a sound basis for efficient
and effective HR Management in the Nestlé Group around the world. They are in
essence flexible and dynamic and may require adjustment to a variety of
circumstances. Therefore its implementation will be inspired by sound judgment,
fulfillment with local market laws and common sense, taking into accounts the
specific context. Its spirit should be respected under all circumstances. As Nestlé is
operating all over Pakistan, it is essential that legislation and practices be respected
everywhere. Also to be considered is the degree of development of each market and
its capacity to advance in the management of their human resources.

Should any HR policy conflict with local legislation, local legislation will succeed.
These policies are addressed to all those who have a responsibility in managing
people as well as to HR professionals. The Nestlé Management and Leadership
Principles include the guidelines inspiring all the Nestlé employees in their action
and in their dealings with others. The Corporate Business Principles refer to all the
basic principles which Nestlé endorses and subscribes to on a worldwide basis. Both
these documents are the pillars on which the present policy has been built. (5)

HR managers and their staff are there to provide professional support in handling
people matters but should not substitute themselves to the responsible manager.
Their major responsibility is to contribute actively to the quality of HR management
throughout the organization by proposing adequate policies, ensuring their
consistent application and coherent implementation with fairness.

The communication skills of the HR staff must be appropriate to deal with all delicate
matters as they occur frequently in human relations issues. They gain their credibility
not only from their professional contribution but also through the care and the
excellence of their communication skills. (5)

RECRUITMENT PROCESS

According to latest count, thousands of employees are working in nestle. This is an

approximate figure as more hiring has been done in the recent past. Nestlé follows a
set process for hiring more employees. The major document in this connection is the
"Recruitment Requisition Form". This document is used in all three instances; such
as for:

REPLACEMENT
Filling of a near position. Additions to the existing workforce

A recruitment opportunity may arise either after discussing or budgeting a position

on the resignation of some employee or on an urgent need basis. In all three
situations, the department head has to obtain approval from the Managing Director
(MD). If the request is budgeted, then the Divisional Head fills up a "Recruitment and
Budgeted Form". This form contains the complete information; i.e. the following
particulars:

• Date of initiation
• Date the employee is needed Profile
• Job description
After receiving the document the human resource department puts up an
advertisement in the newspaper or it directly contacts placement officers at various
institutes. Approximately eight to ten best resumes are selected and presented to
the divisional heads. On their recommendation the candidates are called for
interviews and the most suitable are finally selected.

MANAGEMENT TRAINEES

The procedure for selecting fresh graduates at Nestlé is bit different as the trainees
cannot be short listed through their CV's. Management trainees are fresh graduates
or they have one year experience at the most. Management trainees are not called
directly. They are contacted through their placement officers. Salaries or benefits of
the management trainees do not vary with their specialization. Similarly the training
period is the same, whether they are selected for marketing or finance.

SUCCESSION PLAN

The succession plan at Nestlé is made by the department head. He chooses his own
successor. It is the duty of the departmental head to train someone for his work, so
that there is a person to takeover in case he is transferred.
JOB ASSESSMENT

There is a classified system of job assessment at Nestlé. Accountability incentives in

the form of business or facilities are provided to employees performing well.
Employees form the internal equity of the company. Therefore, equally justifying
measures are taken to satisfy and motivate the employees. (6)

TRAINING AND DEVELOPMENT

We know “Learning” is part of the Company culture. Each employee, at all levels,
either a fresh or old, is conscious of the need to upgrade continuously her/his
knowledge and skills. The willingness to learn is therefore a non-negotiable condition
to be employed by Nestlé. Training and Development is done on-the-job. Guiding
and coaching is part of the responsibility of each manager and it is crucial to make
each one progress in her/his position. When formal training programs are organized
they should be purpose oriented and designed to improve relevant skills and
competencies as Nestle does. Therefore they are proposed in the framework of
individual development programs. As a consequence, attending a program should
never be considered as a reward. Role of each manager at Nestle is to assess
progress, achieved as a result of training programs. The objective is to retain and
motivate employees by offering attractive but realistic career moves allowing them to
develop their skills over a long-term period within the framework of economic reality
and a changing environment. Each manager has the duty to act as a mentor for his

employees. At Nestle formal assessment take place on a standard basis, preferably

once a year. Its purpose is to provide feedback on past performance and future
potential as well as on other relevant aspects concerning a staff member’s work
including the development of his skills and competencies.

PERFORMANCE APPRAISAL

A performance appraisal, employee appraisal, performance review, or (career)

development discussion is a method by which the job performance of an employee
is evaluated (generally in terms of quality, quantity, cost, and time) typically by the
corresponding manager or supervisor.

Nestle give importance to their employees at their work place because Nestle totally
depend on their quality, so quality achieved by the Nestle on the bases their
employees performance. So if employees are on right track so company gives
incentives to their employees.

COMPENSATION BENEFITS

Compensation is a key part of Nestlé Real Rewards package and helps to attract,
motivate, and retain a workforce of top performers. Our philosophy is to provide and
maintain disciplined compensation programs which value long-term relationships
with employees while recognizing individual performance. Nestlé is also committed
to offering compensation packages, including base pay, short and long-term
incentives and benefits, that are competitive in today’s market.
BASE PAY

Your base salary is the fixed portion of your pay. Base salaries are designed to be
competitive, based on data specific to each position as measured in the
marketplace. High performance over time is recognized by base pay that is higher
than the market.

SHORT-TERM INCENTIVES

Short-term Incentive pay is designed to reward you for accomplishments during a

specific performance period (typically annually). For most Staff and Division level
positions, Nestlé offers Awards for Performance Excellence. Nestlé also offers a
variety of Sales and Plant Incentive.

LONG-TERM INCENTIVES

Long-term Incentive plans, such as Nestlé are designed to motivate and reward
those in eligible leadership positions for the Company’s sustained success over a
longer period, often three years or more. LTIP target award opportunities are set to
be competitive within the market and are calculated as a percentage of pay

HEALTH AND WELLNESS

The health and wellness of our employees and their families are important to the
Company as they are to you. That’s why Nestlé offers a range of healthcare options
through benefits program called NesCARE.

Healthcare plans include preventive care, prescription drug benefits, and may cover
certain alternative medical services. You are given the flexibility to choose the
benefits that are right for you (and your family), including medical, dental and vision
coverage

SPENDING ACCOUNTS

Flexible spending accounts are a great way to save on taxes. These plans allow you
to put aside your pre-tax rupees to reimburse yourself for eligible out-of-pocket
healthcare and dependent daycare expenses incurred during the year.
DISABILITY

There may be a time when you are unable to work due to an illness or injury that
occurred outside of work. Nestlé short-term and long-term disability plans offer
financial protection during these periods to assist you in meeting your financial
obligations.

MOTIVATIONAL STRATEGIES

Adoption Assistance

Family is an important part of who we are, which is why Tetra pak offers a valuable
support for the families through various programs.

Employee Discounts

Tetra Pak offers discounts on a broad range of products to their employees also
provide travel and quarters, electronics, gifts, financial services, clothing and more.

Voluntary Benefits

Tetra Pak makes a number of voluntary benefits available to you through an outside
service provider, including auto and home insurance, prepaid legal services and pet
insurance.

Scholarship Program

The Nestlé Scholarship Foundation is proud to sponsor a scholarship program that

provides financial assistance. Scholarship recipients are selected based on
academic record, demonstrated leadership skills, and participation in school and
community activities.

Long-Term Care

Long-Term Care insurance is available to protect employees and eligible family

members from the potential cost of nursing homes or other long-term care.
Employee Assistance Program (EAP)

Nestlé provides EAP services at no cost to employees and their eligible family
members for confidential access to professional counselors trained to help with a
variety of personal and family issues. (8)

Pick and Drop Facilities

Nestle provide their employee pick and drop facility, the timing of employee come in
to the workplace is also not disturb. All employees are relatively on the time in their
workplace.

Good Working Environment

Working environment is very suitable for employees. Nestle is multi national

company so they provide their employees effective working environment that
encourage employee to done their work continues effectively

Games

According to the employee fitness, Nestle held gaming

programs for their employees.

LEADERSHIP STYLE

The Nestlé Management and Leadership Principles describe the management style
and the corporate values of the Nestlé Group, specifically in the area of
interpersonal relations. Their respect calls for specific attitudes which deserve to be
outlined in the present policy:

A prerequisite for dealing with people is respect and trust. There can be no room for
intolerance, harassment or discrimination of any kind as they are the expression of
an elementary lack of respect. This principle suffers no exception and is to be
applied at all levels and under all circumstances.

Nestle has Democratic Leadership Style because they take advise from their
employees and review it and then take decision. The long-term success of the
Company depends on its capacity to attract, retain and develop employees able to
ensure its growth on a continuing basis. This is a primary responsibility for all
managers. The Nestlé policy is to hire staff with personal attitudes and professional
skills enabling them to develop a long-term relationship with the Company.

Therefore the potential for professional development is an essential standard for

recruitment.

Hence, a clear communication of these principles and values from the very
beginning of the recruitment process is required. (9)
 LABOR POLICIES

• In Nestle, management dealing with people is respect and trust. There can be
no room for intolerance, harassment or discrimination of any kind as they are the
expression of an elementary lack of respect. This principle suffers no exception
and is to be applied at all levels and under all circumstances.

• Nestle management has work simplicity and honest in dealing with people for
efficient communication. Based on facts and on a sincere dialogue, such
transparency is the only solid basis for boosting continuous improvement.

• This is to be complemented by open communication with the purpose of

sharing competencies and boosting creativity. It is particularly relevant in a flat
organization to convey systematically all information to those who need it to do
their work properly. Otherwise no effective delegation or knowledge
improvements are possible.

• To communicate is not only to inform. It is also to listen and to engage in

dialogue. Every employee has the right to an open conversation with superiors or
colleagues.

• In case of discord between an employee and her/his superior or another

employee, the possibility must be offered for a fair hearing. The HR staff of
Nestle will provide assistance to ensure that the disharmony is dealt with
impartially and that each party has the opportunity to explain her/his viewpoint
regardless of hierarchical position.
 SAFETY & HEALTH MEASURES

Nestlé regards its people as its most valuable asset and places the highest priority
on protecting them. In every country where we operate, our company emphasizes
the need for safe working environments, which must meet our strict global
corporate standards.

We are determined to provide a safe working environment for

all our employees, contractors and visitors and we are vigilant in
continuing to implement Health and Safety practices and
programs at all our sites.

• Valuing our people by providing a safe place to work.

• Identifying, assessing and reducing risk and preventing injury or illness to our
employees, contractors and visitors.

• Operating our business to meet health, safety, legislative

and other requirements applicable to Nestlé.

• Continually monitoring, reviewing and establishing new

objectives aimed at eliminating or minimizing work related
injury or illness.

• Developing and implementing effective and efficient injury management

systems which enable a safe and sustainable return to work for affected
employees.

• Providing information, training and supervision to employees and contractors

to ensure they understand their roles and responsibilities in eliminating or
minimizing the risk of workplace injury or illness.

• Encouraging a similar Health and Safety commitment from our suppliers and
contractors.

• Consulting with employees and other stakeholders on Health and Safety

matters.
 REFERENCES

1. www.nestle.com

2. www.scribd.com

3. www.wekipdia.com

CONCLUSION

Nestle is the world leader in FMCG industry. People trust on the products launched

by the company even the product is facing some problems.

Nestle today move for new strategies to retain their customer and also want to get

new customer. Nestle enhance their internal and external policies to satisfy their

customers and also their employees. HR plays a major role to maintain Nestle status

in the market.