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Business based analysis of Nestle

Paper Type: Free Essay Subject: Business
Wordcount: 3304 words Published: 16th May 2017

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Nestle, the largest FMSG 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.

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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.

P2. 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 of those areas are stated by the Nestle. 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. So a clear communication of these principles and values are necessary for beginning the recruitment process.

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.

No effective delegation and improvement of knowledge are possible if all information is not conveyed to those who need to do their work properly.

To communicate means not only to inform but to listen and to engage also in dialogue and all employees are given right to communicate with their superiors or co-workers.

If there is any difference of opinion or any dispute between employee and the superiors the possibility must be offered for a fair hearing. The HR staff of Nestle will help to remove disharmony impartially and give them opportunity to express their opinion freely.

P3. 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.

Best Practices approach of HRM:

The approach, inspired partly by Jeffrey Pfeffer (1998) is based on the idea of a set of best, universal HRM practices as per their situation that adopting them lead to superior organizational performances.

Some of the ‘best practices’ Pfeffer (1998) are employment security, selective hiring, self manager teams, High compensation contingent performances training to afford a skilled and motivated workforce, reduction of status differentials and sharing information.


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

Workforce Planning

Workforce planning is a process which is designed to foretell what, when how much can bring about in talent management. It is an integrated and forward looking process. It provides action plans to the managers to work in a prescribed way. This process helps the managers to avoid or decrease problems of people to take advantage of talent opportunities and to develop the talent pipeline. It builds a competitive advantage over other firms.

Goals of Workforce Planning:

Workforce planning cuts down labor costs quickly and does not impact on productivity negatively.

It makes the leaders and managers prepared for future openings.

It fills up “sudden vacancy” immediately and keeps up a flexible contingent workforce.

It moves talent proactively to increase the return on talent. It has target retention activities on talent. It has target retention activities on key talent.

Man Power Planning:

According to Steiner, manpower planning is a strategy for the acquisition, utilization, improvement and preservation of an enterprise’s human resources. It refers to setting up job specifications or the quantitative requirements of jobs determining the number of personnel required and improving sources of manpower.

The diagnostic approach:

Source: www.wikipedia.org

This approach helps to understand why manpower problems cause. It is possible by using the combination of qualitative planning techniques and qualitative techniques.

Manpower planning is mixed into the total process of management of the employment relationship by identifying the more complex factors.

Organizational structure, job design and work practices can be damaged by the effect of the diagnostic approach. Links between strategy, structure and people can be made by Human Resource planning HRP Forms and develops the rationalized and diagnostic approaches to manpower planning.

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.

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P5. Objective Evaluation of the Organization

Human resource function has significance with the onset of global competition. Human resource managers and corporate planning managers think more strategically and step by step. How intense competition impacts upon employment stability can be addressed by them. Implementing cost savings policies regarding employment and thinking with executives on the process of supporting corporate activities are not the same things. To stop downside of global competition the human resource managers should be more active and recruit and keep up efficient workforce. Planning should be done from the very beginning to stop bloating of 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. None but they can act will to help top management particularly in a climate of economic uncertainty.

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.

P6. 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- 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.

Functional/Technical competencies involve specific success factors within a given work function at nestle.

P7. 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. This analysis proves the best performance standard of HR dept. in the present market. 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.

Abraham Maslow’s Hierarchy of Needs:

In the year 1950 people accepted the theories of motivation by Maslow. These theories state the process of satisfying people’s requirements in the workplace. The theory explains that dissatisfaction can be created by unsatisfied needs. The hierarchy generally appears to be a ‘pyramid’ with each level consisting of a certain class of needs. According to Maslow bottom needs of the pyramid are basic needs which are concerned with existence their needs must be met before a person’s moving to the next level.

Physiological needs:

Food, shelter and clothing are the three elementary things essential for man to live on this earth. Only the workplace can satisfy these needs.

Safety needs:

These needs are concerned with physical survival. Some security needs are high standards of health and safety in the workplace. Job security absence of bullying sufficient rest period pension and sick schemes these needs are fulfilled at Sainsbury’s.

Love and belonging:

The work together in a group means to give and receive affection and friendship. The working part of a team, social Facilities and working friendship can satisfy the needs in the workplace. The employees at Sainsbury’s work together and feel part of a team.

Self Esteem:

In the workplace all the members should respect each other and feel valued. They should have confidence and self respect. Businesses can offer rewards for achievement or promotion.

Self Actualization:

All people are offered training challenges and opportunities to develop each individual needs. They should achieve their full potential.

Performance related pay (PRP)

Performance related pay in an extra payment system added to the base pay. The employees get this payment according to the standard of their performance. Besides, this payment is given to a company after considering how it is performing in financial context. Some forms of PRP are strategic pay, flexible pay, and variable pay. Strategic pay is “a pay design process starting with business strategy and organizational design. It disputes against an assumption that certain best practices must be mixed with a company’s approach to pay. (Lawler 1995)

Flexible pay is that kind of payment system where the pay of the employee is tied to the market situation. In this system the pay of an employee depends on customer satisfaction, customer retention and repeat revenue. The employees will be paid according to their skills and experience rather than job based. This will deploy employees to any projects where their particular skill is required.

Variable pay is offered to the employees with financial incentives after they whom their favorable behavior to the business strategy of a company.

Heery (1996) recommended importantly that the proportion of pay which is contingent on performance should go up as a proportion of total remuneration.

Suggestion for Nestle

Communication strategy: There must be an effective communication strategy in Nestle and the employees should be educated and trained about the changes occurring in the organization. Through open to use meetings and bulletins can help to do this.

Effective Training and Development: Training and development play a huge role in the practices followed by Nestle. It is an inseparable part of the corporate strategies. In house, trainers conduct most of the training programs. External trainers are required for some specialized training programs., All the employee get the scope of going abroad for training and having an idea of global markets.

Entrepreneurship strategy: Every employee should be an entrepreneur who can think ideas independently and realize them by using existing resources and support of the organization to build new kind of product and service.

Recruit purposefully: The reason of the expected global shortage of workers is that the baby boomers are choosing to act for short time as their retirement savings have been decreased. If the market comes back fully there can be a mass exodus as the boomers leave the workforce. Company making severe staffing cuts and do not keep their HR people connected to potential hires will be caught severely short staffed. Now savvy companies can hire talented people who have been downsized by other organizations.

High HR operation cost should be reduced.

The decision making process could be enhanced by leverage of real time information for HR decisions.


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