Nestle Human Resource Management

Nestle Human Resource Management

Group Members : Waleed Ibrahim Ayesha Akram Neelam Rehman Shifa Imam Bilal Tanveer Dawood Khan Ali Asad Tahir

Section J OB/HRM Lahore School Of Economics

Nestle Human Resource Management

Introduction: Nestl has been serving Pakistani consumers since 1988, when our parent company, the Switzerland-based Nestl SA, first acquired a share in Milkpak Ltd. Today we are fully integrated in Pakistani life, and are recognized as producers of safe, nutritious and tasty food, and leaders in developing and uplifting the communities in which we operate. We at Nestl Pakistan ensure that our products are made available to consumers wherever in the country they might be. Convenience is at the heart of the Nestl philosophy, and our aim is to bring products to people's doorsteps This report is intended to answer the following questions 1. Organizational charts 2. Organizational culture 3. Profile of senior management 4. Chart of Hr department 5. What are the different organization functions the organization is engaged in 6. How are HR policies linked with the companys strategic goals i.e. volume of business, product portfolio, competition, external factors. 7. Does the organization have a proper job description? Who is responsible for making it 8. What are the different selection and recruitment tools which the company uses to attract outside candidates? 9. Success of these tools 10. What are the different techniques used by the organization to motivate employees? 11. How inspirational is the top management towards its employees? 12. What is the organizations focus towards training and development of its employees, how much is nestle investing into such activities? 13. Do you think the HR department is an instrumental in the department?

Nestle Human Resource Management

Organizational chart

Nestle Human Resource Management

Organizational culture Nestl is committed to a number of cultural values. These values come partly from its Swiss roots and have been developed during its history. They are also evolving so as to support the permanent reshaping of the Company and they tend to vary country to country depending on the nature of their employees but collectively they can be described as follows: Commitment to a strong work ethic, integrity, honesty and quality. Personal relations based on trust and mutual respect. This implies a sociable attitude towards others, combined with an ability to communicate openly and frankly. A personalized and direct way of dealing with each other. This implies a high level of tolerance for other ideas and opinions, as well as a relentless commitment to co-operate proactively with others. Openness and curiosity for dynamic and future trends in technology, changes in consumer habits, new business ideas and opportunities, while maintaining respect for basic human values, attitudes and behavior.

Like, open and flexible culture is ensured by way of providing training programs to employees at all the levels. Nestle ensures a decentralized culture thus each country is responsible for its own recruitment and training, furthermore they follow a decentralized culture within every country allowing employees to express their skill on individual level. Their basic approaches centralize what you must and decentralize what you can.

Nestle Human Resource Management

Profile of senior management: 1. Trevor Clayton, Managing Director, MD Office (Country Head of Operations) 2. Syed Yawar Ali, Chairman 3. Raymond Franke, Head of Finance and Controls, Finance & Control Division 4. Haseeb Aslam, Country Business Manager Water, Water Division 5. Peter Wuethrich, Head of Technical, Technical Division 6. Salman Nazir, Head of Supply Chain, Supply Chain Division 7. Uzma Qaiser Butt, Head of Human Resources, Human Resources Division 8. Zafar Hussain, Head of Sales, Sales Division Information about senior management is confidential however further information about them is available at Linkedln.

Nestle Human Resource Management Chart of Human Resource Department: Department is headed by Head of HR, there are 4 center of expertise (Recruitment, Organizational Development, Remuneration, Employee Relations), 2 Center of Scales (Corporate Administration, Payroll) and 5 HR Business Partners report to Head of HR. All these people have their teams as well.

Recruitment Organizational Development Remuneration Head Of H.R Employee Relations

Center of scales

Corporate Administration Payroll

Business Partners

Teams

Nestle Human Resource Management What are the different organization functions the organization is engaged in? Main functions are Marketing/Businesses, Sales, Supply Chain, Technical, Finance, HR, Legal Affairs, Corporate Affairs Nestl believes that people are most valuable assets in enriching, the company provides an extraordinary mix of cultures and nationalities, and we can have a constant access to people from all over the world. Nestle believes in giving as much responsibility as possible to the individual. This inherent trust means employee can quickly establish his/her own credibility, prove their professionalism and make a valuable contribution to the company. The working conditions at Nestl match or are above those in comparable companies, and the company encourages a healthy work / life balance for all employees. Nestle as a manufacturing and marketing company, what counts is professional skills, personality and strength of character, and to contribute actively to the long term sustainable growth of the business. With career options spanning Sales, Marketing, Supply Chain, Human Resources, Finance & Control, Technical and various other functions, Nestl offers a wide range of opportunities for people. Technical Management Trainees are selected from reputed engineering institutes, specializing in the streams of Chemical, Electronics, and Automation & Industrial Engineering. They are required to undergo an intensive on-the- job training program in Factories and Head Office. To create a pool of high caliber managerial talent, Nestle hires fresh management graduates from premier management institutes across the country. The Management Trainees are selected mainly in the areas of Sales & marketing, Human Resources and Supply Chain. All the Technical Management Trainees are selected, required to undergo an intensive on-the-job training program, they undergo a preplanned training program in Factories and Head Office. Nestl India offers a wide range of opportunities for people. It believes in offering the best training and development that will enable people to grow continuously and maximize their potent. Nestle-Pakistan believes in empowering people. So employees are given early responsibilities, each person is encouraged to take personal responsibility, and to contribute actively to the long term sustainable growth of the business. Almost from their first day on the job, young managers have the opportunity to acquire and develop skills in leadership, people management, change management, and decision making. Nestl recognizes that people make the difference. The Company encourages and supports its people to inculcate the clearly laid down Nestl Leadership Principles to enable them to take up responsibilities and challenges early in their career. Nestl does give their employees a chance to discuss their career development for future accomplishments. They send their efficient workers and employees abroad for the improvement in their career. They also conduct workshops and seminars for this purpose. Nestle has established a separate compensation department for its employees. They offer incentive pay and special bonuses to employees; they also provide disability benefits to their employees. 7

Nestle Human Resource Management

The success of an individual is very much dependent on his ability, willingness to learn and align his objectives with that of the organization. In the course of career employees are encouraged constantly to learn more. Nestl will push every individual to broaden his/her horizon, both nationally & internationally. Everyone has an equal chance to move on to higher responsibilities. It is up to the individual to make the most of those opportunities.

Nestle Human Resource Management How are HR policies linked with the companys strategic goals? I.e. Volume of business, product portfolio, competition, external factors. HR prepares its people plan based on companys strategic goals where Strategic goals are statements of what you wish to achieve over the period of the strategic plan (e.g. over the next year, five years, ten years.) They reflect the analysis you do that starts with creating a vision, a role statement and a mission statement, and then your analysis of your environment, strengths, weaknesses, opportunities and threats. In some ways, drafting five or six major strategic or business goals may seem relatively simple. The actual writing may be but connecting the goals to the rest of the strategic planning process requires a high degree of analytic and logical skill. Volume of business, product portfolio and competition everything is considered by HR and then we make people plan as per the requirements of the business keeping in view the upcoming challenges.

Nestle Human Resource Management

Does the organization have a proper job description? Who is responsible for making it? Yes, concerned line manager along with HRM manager prepares a job description where line manager is a person who heads revenue generating departments (manufacturing and selling) and is responsible for achieving an the organization's main objectives by executing functions along while Human Resource Management (HRM) is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organizations. These managers prepare a job description that is a list that a person might use for general tasks, or functions, and responsibilities of a position. It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, or a salary range. Job descriptions are usually narrative, but some may instead comprise a simple list of competencies; for instance, strategic human resource planning methodologies may be used to develop competency architecture for an organization, from which job descriptions are built as a shortlist of competencies policy making, target setting, decision making.

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Nestle Human Resource Management

What are the different selection and recruitment tools which the company uses to attract outside candidates? The company uses different tools to recruit outside candidates that include advertisement through internet, newspaper, internal website, and social networks i.e. LinkedIn, etc. In addition to that they also source candidates through headhunters. The most exercised method used by Nestle is advertisement through the internet since it is cheap source to let people know about the job vacancies. As it is a cost effective way to publicize openings; therefore it generates quicker responses, than just about any other method. The company also posts hiring and recruitment information on its website nestle.com; on which advertisements are done regarding new employment opportunities. Social networking sites like LinkedIn; a businessoriented social networking site; are also used for advertisement purposes. These sites provide people with the information they need regarding employment, and therefore plays a huge role in employing outside candidates for the new or existing jobs. In addition to these tools, information is also provided to the masses through newspaper, as job vacancies are advertised in almost all prominent newspapers of the particularly country. In Nestle, the recruitment for executive level positions is done through headhunter. Headhunter is independent employment service or individual that seeks out personnel for high-level executive positions; formally known as an executive search company or consultant. Headhunters are generally used by Nestle for filling its executive positions.

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Nestle Human Resource Management Success of these tools Almost all of these tools have their own significance in attracting outside candidates for the job, and therefore for Nestle all have been successful, yet recruitment through the internet has proven more beneficial as it has reduced cost of advertisement and has increased chance of suitable match for the job specified. For executive search, headhunters and LinkedIn have been more successful as compared to other methods.

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Nestle Human Resource Management What are the different techniques used by the organization to motivate the employees? Training is futile if the trainee lacks motivation. Since at Nestle, employees keep on getting new training, therefore it is necessary to keep them motivated. This motivation helps existing and new employees achieve their organizational goal. Nestle has got employee recognition programs in place to motivate the employees. They have provided employees: Equal Employment Opportunities (EEO). They have provided employees with equal opportunities, and no discrimination is done on the basis of race, color, religion, etc. These chances provide employees with an equal opportunity for growth, and thus helps increase their motivation level. Immediate job satisfaction. Nestle has a trend of appreciating its employees whenever they show some exceptional performance and it is meant with reward. In addition to that any employee that performs well is praised, which usually result in satisfaction and increased motivation. Long-term career development. The management does not just hire employees for now and then basis, but consider their employees as an asset for the company and thus provide them with long term career development opportunities along with chances for growth. Superior pay and benefits. Nestle provide its employees with better pay as compared to others along with benefits like maternity fund, health benefits, etc. In addition to that, extra benefits are provided to the employees, which is mostly associated with their performance. Therefore the employees always try to show their best as they are rewarded for their efforts, and as a result the one that performs gets the reward. The personal growth that comes from experience and training. Since Nestle can be regarded as one of the largest and oldest company, so it contains a lot of experience in itself which is enmeshed in its culture and values. The employees therefore have a lot of chances for gaining new experience and attaining personal growth which proves helpful to them in performing. Materialistic as well as internal motivation. Nestle has been in existence for more than a century, but still the basic foundation is unchanged from the time of the origins of the company, and reflects the basic ideas of fairness, honesty, and a general concern for people. All these aspects provide encouragement to the employees, as they know that their company considers them as an asset, and therefore provide them with internal motivation and satisfaction.

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Nestle Human Resource Management How inspirational is the top management towards its employees? Top Management is really focused towards embedding the organizational values and building high performance culture, they practice it while preaching. Therefore it has been much inspirational for the employees. Top Management is very supportive towards the employees in order to provide them the full comfort they require. It is the utmost try of the high level officers to give them support morally, financially and most important; mentally. It has an open door system which shows that they welcome any new and fresh ideas from the juniors and give them a boost. Even if the employee fails to do a specific task, the top management encourages them. Fringe benefits such as cars, medical facilities, homes, etc are given to the employees. Those lower level workers who perform well get bonuses which enhance the level of competition amongst the employees. Promotional schemes are also introduced which further gives a boost to the performance as well as the skills of the employees. The working conditions are suitable for the employees, as provided by the top management. In every manner, employees are fully pushed to work at ease and stay jubilant in their life

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Nestle Human Resource Management

What is the organizations focus towards training and development of its employees, how much is Nestle investing into such activities. Training and development of employees is very important at Nestle, and therefore the company invests much in this area as per the organizational needs of the employees. Nestle has started a series of programs which trains both, the fresh and existing employees. Management Trainee Program: Nestle has initiated a Management Trainee Program for fresh applicants. They hire fresh graduates as potential managers to develop new competencies and skills through on-the-job development. They are hired in one of various departments at inductee level on a 1 year training program, and once the program is completed, they are assigned independent responsibilities supporting the company's business needs which most of the times is according to the training which they had gone through. The company begins hiring Management Trainees in January. Next the employees undergo a series of tests and interviews with different levels of management, where at the end a handful amount of candidates are selected and, then trained. Employee Nutrition Quotient Training program: Nestle has also developed the NQ (Nutritional Quotient) training program for its employees. This program was designed to increase the employees knowledge about the Nutrition, Health, and Wellness. NQ training consists of engaging modules suitable for all employees, from the Executive Board to plant operators. It was also designed to increase the knowledge of nutrition expertise of Nestle scientists and health marketing specialists. It is based on the principle that nutrition is everybodys business at Nestle, irrespective of the area in which employees work. Since Nestls expert nutrition knowledge is long-established, centered on the activities of Nestle Nutrition and R&D network, therefore the NQ program is intended to broaden and increase the knowledge base among employees in other job functions, therefore providing everyone with the confidence to apply this knowledge in their work. The program combines nutritional knowledge with commercial application. It helps employees persuade the consumers and provide them with information that is of assistance to them like, when communicating with consumers about balanced diets, the knowledge gained by Nestle employees through the NQ program will help make nutrition and wellness tangible to consumers, ensuring that Nestle is regarded as a knowledgeable partner in nutrition matters. The key to the success of the NQ training are interactive, customized modules designed to encourage people to participate and put knowledge into action. These are tailored to specific needs:

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Nestle Human Resource Management

Foundation module: a stand-alone program of learning and development for Nestle employees whose jobs are principally non consumer or customer facing. Advanced module: core learning for staff who are engaged with external bodies and consumers/customers. Specialist modules: place particular emphasis on understanding the consumer and application of the Nestle nutrition and wellness strategy in specific product categories.

The NQ program toolkit comprises a suite of materials for trainers, including training manuals and slide sets. For trainees themselves, learning takes place in an engaging way using a variety of media and formats, including interactive games, motivational video content and an on-line quiz. This is used to measure collective progress and to allow each trainee to evaluate, in an entirely confidential way, his or her personal lifestyle choices. The toolkit also comprises awareness-raising and motivational material that can be used and adapted to meet local needs, including posters, questionnaires and certificates. Constant development: As nutrition and insight into nutrition is evolving, so is the NQ Nutrition training, helping Nestle employees keeping in pace with new developments and maintain a high level of integrity through the breadth and depth of the nutrition expertise. Nestl is today the worlds leading food company, with a 135-year history and operations in virtually every country in the world. Their principal assets are not office buildings, factories, or even brands. Rather, it is the fact that they are a global organization comprised of many nationalities, religions, and ethnic backgrounds all working together in one single unifying corporate culture. Their culture unifies people on all continents, with roughly half their factories and people located in the developing world. A qualified workforce, trained by Nestl or emerging from a strong educational and industrial context, strongly influences the companys ability to be globally competitive. The fair treatment and development of company staff and the strengthening of the local workforce are essential long-term investments. They reinforce the conditions for growth and sustained economic development in the locations where Nestl operates. Nestls ability to employ thousands of people each year is an important contribution the company makes towards future generations, providing income to families who can enhance their chances at better education, healthcare and standard of living for entire families and communities.

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Nestle Human Resource Management Do you think the HR department is an instrumental in the departments? The HR Department is like a backbone for all other departments. It is one department that single handedly interrelated all other departments such as the finance, research and development or the sales. Therefore yes, it is an instrumental/influential in the departments of a company. As it may be obvious, the whole company is almost governed by the Human Resource Department. During the earlier years of the business world, only a few businesses found it necessary to have a Human Resource Department. Most businesses carry on with their everyday activities only with the help of Personnel Managers. However, as time went by, many businessmen found it necessary to have a Human Resource Department. The Human Resource Department has many functions. Planning; here, the Human Resource Department plans all the activities regarding the human resources for one year. Job Analysis. This is where the Human Resource Department will assess the different duties of the various jobs in the company. Recruitment, De-recruitment, and Selection. Assessment of the various Compensation and Benefits suitable for each position in the company. Appraisal of the Performance of the employees in the company. Human Resource Department is also responsible for the Development of the Human Resources of the company. The Health and Safety of the employees, when it comes to their work, is also a major function of the Human Resource Department. To serve as a facilitator in the Employee and Labor Relations. The last and most probably most difficult function of the Human Resource Department is the Human Resource Research. As evident from the functions of the HR, one can state the obvious the ever growing in size companies will not be able to manage their workforce without the HR . Apart from this, it is the human resource management that steps in times of recession (present day situation) Below is an example of how HR influences other departments: Finance> Allocates on spending depends of the costs of wages, bonuses and compensation. Furthermore the costs of training are presented.

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Nestle Human Resource Management On the other hand this issue is a debated one, for example some CEOs believe the Sales department is the most important one as without it the HR wouldnt be able to run in the first. But is more like a who came first: chicken or egg debate. It is important to acknowledge that the units produced depend on productivity which is directly under the influence of HR. Also without the HR there maybe the wrong allocation of positions leading to a disaster. Therefore it can be seen that HR is of the important rank to all managers in a company. In conclusion the HR department is the most administrative one in general which controls the first most important asset of the company that is the labor. Therefore it can be agreed upon that the HR department serves an instrumental position compared to the other departments.

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Nestle Human Resource Management References: http://www.scribd.com/doc/40494541/Nestle http://download-reports.blogspot.com/2010/09/hrm-report-on-nestle.html www.nestle.com

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