Documente Academic
Documente Profesional
Documente Cultură
INTRODUCTION
Nestle India Ltd. is a part of the Nestle SA group which is one of the largest
manufacturing companies in the world. Henri Nestle founded the company
(with its headquarters in Vevey, Switzerland) in 1867. Nestle has two major
divisions - Le Societe des Products which looks after the production and
marketing and Nestec Ltd. which provides the technical assistance to the
group companies.
Since its inception in 1867, the company has diversified it product range from
the infant weaning formula (which was its first product) to beverages,
confectionery, ice creams and pet foods among others. In a span of 130 years
the company has ranked 26th among the worlds largest corporations and
boasts of a turnover of $48932.5 million and employee strength of 221,144
people spread over 75 countries worldwide (Annexure A).Nestle has long
been viewed as one of the most multinational of the multinationals. This is
because today only 2% of its turnover comes from Switzerland. Out of the
remaining 98%, Europe contributes 43.5%, North and South America
contribute 36.5% and Africa and the Asia Pacific Regions contribute 18%.
Through its effective marketing and a vast sales and distribution network
throughout the country, it ensures that its products are made available to
consumers throughout the country. Nestl has large operations with multidimension areas but people, quality products and brands are the main flag
bearers of the companys image.
Nestl believes in creating shared value and is committed to the communities
it works and lives with. The company is working closely with communities in
areas related to Nutrition, Water and Rural Development, and continues to
enhance the quality of life of people throughout its value chain.
performance culture. The Companys priority is to bring the best and most
relevant products to people, wherever they are, whatever their needs are, and
for all age groups.
Nestl is not a faceless corporation catering to faceless consumers, but is a
human company providing a response to individual human needs. It respects
the cultures of the countries and is committed to make a contribution to the
quality of life of people.
In line with Nestls global philosophy, its commitment to excellence in
product safety and quality and to providing value and services to its
consumers. As a socially responsible corporate, we always focus on
environment friendly operations, ethical business practices and our
responsibility towards the communities.
2. COMPANY PROFILE
2
Although Nestle has been associated with India since the beginning of the
century through the importing and trading of infant food and condensed milk,
manufacturing in India only began with the setting up of the factory in Moga
in 1962. The first product to be manufactured was Milkmaid.
In the last 35 years the company has shown rapid progress and has increased
its product range to 80 products as of October 1997. Nestle India Ltd. now
ranks 22nd amongst India are most valuable companies (Annexure B). Its gross
revenue has increased from Rs 1001.1 crores to Rs. 1213.8 crores in1996.
This remarkable growth has been achieved through Rapidly creating greater manufacturing capacity, both at factories as well as
with co-packers.
Taking measures to ensure availability and improved quality of key raw
materials - fresh milk in particular.
Strengthening of the sales and distribution network (particularly in smaller
towns)
Ambitious and cohesive manpower training and development programs for
the personnel of the company across all disciplines.
The companys exports also resulted in a very successful year in this area as
exports grew by 27% to Rs. 250.8 crores in 2003. Themain contributors to this
increase were the export of tea and coffee to USA, Japan, Russia, Hungary
and Taiwan. Nestle India Ltd. wants to further increase its operations in India
and has started construction of its sixth Factory at Bicholim, Goa for the
manufacture of culinary products (a key thrust area) for this purpose.
Nesvita
Nido
Everyday
Nestle Dahi
Nestle Raita
MILKPAK Cream
Nestle Creations
Beverages:
Nescafe
Nestle Milo
Bottled Water:
Baby Food:
Nestle Cerelac
Prepared Meals:
Breakfast Cereals:
KITKAT
KIKAT Chunky
POLO
Our Mission
"To be in every way the leading company in the Indian food industry and a
good corporate citizen by providing our consumers with superior quality
products, our shareholders with rapid growth and fair returns and our
employees with a challenging and satisfying work environment."
5. ORGANIZATION STRUCTURE
Nestl follows a flat, matrix organizational structure. The departments are
divided function-wise and product-wise. All the products use different
functional departments, and all the functional departments have specific
product departments within them.
The span of control is wide, as each department head has many direct and
indirect reporting relations with his subordinates. Also, as in a pure matrix
form, nearly all employees have two or more departments to report to, directly
or indirectly. The Managing Director of Nestl reports directly to the Head
Office in Switzerland, and gets guidance and objectives from them.
Directly under the Managing Director are different functional departments:
Business Executive Managers
Head of Human Resource Department
Head of Sales Department
Head of Supply Chain4
Head of Food Services Department
Head of Technical Department
Head of Finance Department
Head of Corporate and Legal Department
6. ORGANIZATIONAL BEHAVIOR
Organizational behavior is a field of study that investigates the impact that
individuals, groups and structures have on behavior within an organization for
the purpose of applying such knowledge towards improving an organization's
effectiveness. It is an interdisciplinary field that includes sociology,
psychology, communication, and management; and it complements the
academic studies of organizational theory (which is focused on organizational
and intra-organizational topics) and human resource studies (which is more
applied and business-oriented). It may also be referred to as organizational
studies or organizational science. The field has its roots in industrial and
organizational psychology.
Organizational behavior studies the impact individuals, groups, and structures
have on human behavior within organizations. It is an interdisciplinary field
that includes sociology, psychology, communication, and management.
Organizational behavior complements organizational theory, which focuses on
organizational and intra-organizational topics, and complements human
resource studies, which is more focused on everyday business practices.
Organizational studies encompass the study of organizations from multiple
perspectives, methods, and levels of analysis. "Micro" organizational behavior
refers to individual and group dynamics in organizations. "Macro" strategic
management and organizational theory studies whole organizations and
industries, especially how they adapt, and the strategies, structures, and
contingencies that guide them. Along with those two levels of analysis, some
scholars add categories of "Meso" scale structures, involving power, culture,
and the networks of individuals in organizations, and "Field" level analysis
which studies how entire populations of organizations interact.
Communication:
But mostly at higher level, GM of all the departments interacts with each other
for major decisions. And the lower level is informed about the decision.
They mostly contact through a phone call or email. In a way we see that there
is an open communication channel within the company.
10
Internal Communication:
Downward Communication:
11
Upward Communication:
The message or any other data which is sent to authorities by the employees is
called upward communication.
Through this, top management can maintain continuous touch with the low
levels.
In absence of this communication top level will be isolated and in the long run
managers will be totally fail to manage people and work
External Communication:
By Annual Report
Media Advertisement
By giving packages
12
Through services
Cultural Difference:
Since Nestle is a multinational company having thousands of employees from
different areas and having entirely different culture, it faces a great problem in
its day to day business activities.
Emotional Interference:
Nestle has a huge area all over the world. And operate this huge mob
employees is not an easy task. There are many reasons in which the
employees become anger and which may cause of barriers.
13
15
16
patterns
and
expectations.
1. Innovation and risk taking: According to our survey what we have found
is that employees are not much encouraged to be innovative and take risks.
17
18
Training Programs:
Power is a potential ability and influence for a people which direct other
people in desired direction to do something. In an organization managers use
normally two types of power interpersonal and formal. Formal power is based
19
Legitimate Power:
Expert Power:
Learning
Cash bonuses
Promotions
Increments in salaries
A group whose individual efforts result in performing that is greater than the
sum of the individuals input. At Nestle, employees work in team and they
have a team of over 4,500 unique individuals who make it Pakistans largest
company. Being exposed to best practices and an enabling environment, they
are the best minds in the industry today. By working in teams, employees
bring their collective skills and knowledge to bear on problems and to develop
21
Code of Conduct
In line with Nestle managements effort to maintain the decorum and ensure
an environment that is cohesive to the development and success of the people,
a Code of Conduct has been put in place where the following activities can
result in disciplinary action:
1. Unsatisfactory and negligent job performance.
2. Excessive and unauthorized absence from duty.
22
23
12. ANALYSIS
After studying various issues related to the organizational behavior within the
organization we analyzed that
There are different kinds of rewards NESTLE gives to their employees which
are as follows:
Cash bonuses
Increments in salaries
We found very different kind of reward in Nestle that they motivate their
employees whose performance is not up to the mark by giving them the
salaries equivalent to the market value of the any other employee of same rank
so as to motivate their employees.
Many of the employees are being rewarded after accomplishment of their
sales target in such a way that their management take them to the picnic or
invite them for dinner frequently. And another very interesting fact which I
found in Nestle is that their management does not fire their employees even
their performance level is not up to the mark. Overall employees are satisfied
with their company and jobs.
To some extent they are given empowerment to do their work. Most of them
agree that their jobs are not creating any physical or mental problems for
them.
But according to my opinion employees are facing job stress. It is a fact that
cannot be denied. Because we know that stress is inevitable. It can only end
up with the end of life But the company deals with this problem and provides
them proper counseling.
25
If we see an overall picture, then it is clear that they are somewhat satisfied
with their jobs and they dont have a lot of stress on them. But still there is a
need of improvement in strategies of NESTLE to make workforce more
productive.
Leadership.
Communication skills.
Flexibility.
Customer focus.
26
Nestle has got the combination of leaders that are both task oriented and
leadership oriented. This shows that Nestle have the leaders that perform
better in all situations and can manage their teams more effective and
efficiently.
27
CONCLUSION
The employer should show a greater trust to employees and employees should
feel good about their employer.
BIBLIOGRAPHY
www.nestle.com
www.managementparadise.com
http://www.nestle.in/
http://economictimes.indiatimes.com/nestle-india-
ltd/infocompanyhistory/companyid-13330.cms
http://en.wikipedia.org/wiki/Organizational_behavior
29