Documente Academic
Documente Profesional
Documente Cultură
NESTLE
KARNA
VATI
UNIVERSITY
GANDHINAGAR, GUJARAT
TABLE OF CONTENTS
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INTRODUCTION...........................................................................................................................3
HUMAN RESOURCE STRATEGIES IN NESTLE – AN ANALYSIS........................................4
A shared responsibility.................................................................................................................5
Joining Nestle...............................................................................................................................5
Total rewards................................................................................................................................5
Employment and working conditions..........................................................................................6
Training and learning...................................................................................................................6
Talent, development and performance management...................................................................7
Employee relations.......................................................................................................................8
HR PRACTICES...........................................................................................................................10
RECRUITMENT.......................................................................................................................10
The recruitment process at Nestle is clearly defined.................................................................10
PERFORMANCE MANAGEMENT........................................................................................11
TRAINING................................................................................................................................11
- Nestle Apprenticeship Programmes........................................................................................12
JOB DESIGN.............................................................................................................................12
The job design process under NESTLE is a very detailed and strategic process......................12
PAY STRUCTURE...................................................................................................................12
REWARDS & INCENTIVES...................................................................................................12
BENEFITS.................................................................................................................................13
EMPLOYEE RELATIONS.......................................................................................................13
Nestle provides a very healthy working environment which is one of the reasons why Nestle's
employees state their commitment level to be very high...........................................................14
CHANGE MANAGEMENT.....................................................................................................14
SAFETY & HEALTH...............................................................................................................15
The Nestle Operational Safety, Health and Risk-Management Strategy document illustrates
that:.............................................................................................................................................15
CONCLUSION..............................................................................................................................16
INTRODUCTION
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Nestle is the world's leading Nutrition, Health and Wellness company. It is a Swiss multinational
food and beverage company headquartered in Vevey, Switzerland. The Company was founded
in 1866 by Henri Nestle. Its mission of "Good Food, Good Life" is to provide consumers with
the best tasting, most nutritious choices in a wide range of food and beverage categories and
eating occasions, from morning to night. It is the largest food company in the world measured by
revenues, and ranked #72 on the Fortune Global 500 in 2014.
Nestle’s products include baby food, bottled water, breakfast cereals, coffee and tea,
confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine of
Nestle’s brands have annual sales of over CHF1 billion (about US$1.1 billion), "Nestle:
Tailoring products to local niches". CNN, 2 July 2010 including Nespresso, Nescafé, Kit Kat,
Smarties, Nesquik, Stouffer’s, Vittel, and Maggi. Nestle has 447 factories, operates in 194
countries, and employs around 339,000 people. It is one of the main shareholders of L’Oreal, the
world’s largest cosmetics company.
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As a member of the Talent Management and International HR Team, on the other hand, one
will focus on developing the potential and careers of all our employees, particularly those with
high levels of performance and potential who are likely to be Nestle leaders of the
future. Working with the global Nestle business, one will develop the framework and processes
which enable us to identify and develop the potential of our employees. As part of this, the team
will support individuals with a clear career development plan to go on international assignments
out of the UK to locations such as Nestle’s international headquarters in Vevey, Switzerland, or
to other Nestle markets around the globe.
As a member of Reward and Employee Relations Team, an employee will join one of two
expert sub-teams, each with specific responsibility for business-wide strategic and operational
remits. As part of the Employee Relations sub-team, he provides business-wide advice and
guidance to line managers and the HR community on individual employee relations matters and
to HR Business Partners on broader employee relations and change management issues, as well
as developing and implementing our policies and procedures in this area and undertaking
relevant project work. As part of the Reward sub-team, on the other hand, a member will focus
on maximising the return on investment to deliver Reward that will motivate the employees to
perform at the highest level as well as managing our overall Reward principles and processes
including base salary, incentives and Flexible Reward.
A shared responsibility
Line managers have the prime responsibility for building and sustaining an environment where
people have a sense of personal commitment to their work and give their best to ensure our
Company’s success. They care for and develop the leaders of tomorrow.
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Line managers decide on all people matters under their influence, within the boundaries set by
the policies and principles, acting as the final decision makers The Human Resources (HR)
structure enables and empowers them in establishing business needs and their corresponding
people requirements Therefore, the mission of HR managers and their teams is to provide
professional guidance to line managers aiming to deliver superior business results by optimising
the performance of our people, while ensuring exemplary working condition With a ‘Nestle in
the Market’ (NiM) approach, HR has adopted a streamlined approach to ensuring functional
leadership and the highest level of focus, clarity, and efficiency. Our structure is based on three
dedicated areas which provide specialized services (Centres of Expertise) deploy HR strategies
within a specific business (Business Partners) and perform transactional activities (Employee
Services).
Joining Nestle
The long-term success of the Company depends on its capacity to attract, retain and develop
employees able to ensure ongoing and sustainable growth. This is a primary responsibility of all
managers. The Nestle policy is to hire employees with personal attitudes and professional skills
enabling them to develop a long-term ationship with the Company. Therefore, special attention
will be paid to ensure there is a strong alignment between a candidate’s values and the Nestle
culture Only relevant skills and experience and adherence to the Nestle principles will be
considered in employing a person. No consideration will be given to a candidate’s origin,
nationality, religion, race, gender, disability, sexual orientation or age. Whilst adequate
recruitment tools may improve the hiring process, the decision to hire a candidate remains in the
hands of the responsible manager, supported by the HR team.
Total rewards
Attracting new hires and keeping current employees engaged is not only about remuneration and
benefits based on solid performance. It is also about the hard earned value and trust that our
name brings to those who work with us; the relationships with our lin managers and fellow
workers; recognition and experiences enjoyed while working for a diverse global company; and
possibilities to learn and grow. These are as a whole, the Total Rewards a member will receive
Nestle, therefore, focuses on Fixed Pay Variable Pay, Benefits, Personal Growth and
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Development and Work Life Environment as the key elements that define Total Rewards. In the
spirit of developing a high performance culture, those elements need to correspond to what is
valued by employees in each and every market and which demonstrate how Nestle is committed
to giving each employee the opportunity to grow involve and contribute.
Employees receive regular feedback on their performance and career aspirations through a
variety of tools and processes such as the Performance Evaluation process (PE), the Progress and
Development Guide (PDG) and 360° assessments. Each manager dedicates the necessary time to
the monitoring of objectives and regular coaching of employees through the year. Each
employee, supported by the line manager, is in charge of her or his own professional
development, whereby the employee is encouraged to express career objectives and expectations
in an open dialogue.
At Nestle, promotions are based on sustained performance from a results and behavior
standpoint, as well as future potential. The Company undertakes an active and rigorous
succession planning process at all levels of the organisation to ensure that there is a strong
pipeline of successors ready to meet future needs. We are committed to ensuring sustainable
conditions for a gender balanced and diverse company. As such, Nestle has focused on removing
barriers to career progression for women and men by developing a more flexible work
environment, initiating mentoring schemes, having flexible career paths and providing dual
career support. HR management provides the support for implementing the necessary tools, and
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partners with line managers to prepare the resources necessary for the continued development of
people and the Company.
Employee relations
Since its founding, Nestle has built a culture based on values of trust, mutual respect and
dialogue. Nestle management and employees all over the world work daily to create and
maintain positive individual and collective relationships and are expected to do so as a core part
of their job Nestle not only upholds the freedom of association of its employees and the effective
recognition of the right to collective bargaining, but also ensures that direct and frequent
communication is established in the workplace While dialogue with trade unions is essential, it
does not replace the close relationship that our management maintains with all employees.
In the spirit of continuous improvement, we encourage two-way dialogue with our employees
that goes beyond the traditional aspects of collective bargaining in order to share knowledge and
to jointly find opportunities related to important matters such as Creating Shared Value the
health and safety in the workplace and our concern for the environment The Company and
employee representatives are expected to make all necessary efforts to develop fair and
constructive dialogues, overcome the difficulties that they might encounter, reach sustainable
agreements and implement them.
A dynamic organisation creates a climate of innovation and allows people to think from different
perspectives. Mistakes may be made but there is always a willingness to correct and learn from
them. The scope and brand strength of a global company combines with the creativity and
knowledge of a local business. As a result, people can have far-reaching influence every day and
explore their full long-term potential, propelled by continual support and a collaborative
approach by line managers and employees.
Human resource management (HRM) is that part of management process which makes,
enhances, manages and develops the human element of the enterprise measuring their
resourcefulness in terms of talents, abilities, total skills, creative, knowledge, and potentialities
for effectively contributing to the organizational objectives. Human resources are precious and a
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source of competitive advantage. Human resources may be tapped most effective by mutually
standard policies which promote promise and foster an inclination in employees to act flexibly in
the interests of the adaptive organization's pursuit of excellence.
Human resource policies can be joined with planned business and used to reinforce appropriate
culture. Human resources play a critical role in enabling the organization to effectively deal with
the external environment challenges. The human resource management has been accepted as a
strategic partner in the formulation of organization's strategies and in the implementation of such
strategies through human resource planning, employment, training, appraisal and rewarding the
personnel.
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HR PRACTICES
- Nestle human resources policy- This policy encompasses those guidelines which constitute a
sound basis for efficient and effective HR Management in the Nestle Group around the world.
Nestle people development review- this policy throws light on Nestle's culture and core values,
different training programs and life of employees after work.
PERFORMANCE MANAGEMENT:
Performance management includes all standard procedures used to appraise contributions,
potentials and personalities of group members in a working organization. It is a process which is
important for making accurate and impartial decisions on employees for secure information. At
Nestle performance appraisals of Employees are done in order to understand each employee's
abilities, competencies and relative merit.
TRAINING:
Training is a major and also an important part of organized activity for increasing the skills and
knowledge of people and also to understand the deep knowledge of task that what they have to
perform or for a definite purpose. It involves systematic procedures for imparting technical
know-how to the employees so as to increase their knowledge and skills for doing specific jobs
with proficiency.
From the Company floor to the upper management, training at Nestle is continuous. Nestle
people provide this training and it is constantly appropriate to the professional life.
- Literacy training-to upgrade essential literacy skills, especially for workers who operate new
equipment ('Mission-directed Work Team Approach'). Employees are also sent abroad to study
markets, consumer tastes etc.
communication and business economics. Employees are also sent abroad to study markets,
consumer tastes etc.
JOB DESIGN:
Job design refers to the way the tasks are combines to form a complete job. Job design is a
process which integrates work content ( tasks, functions, relationships), the reward ( extrinsic
and intrinsic), and the qualifications required (skills, knowledge, abilities) for each job in a way
that meet the needs of employees and the organization.
The job design process under NESTLE is a very detailed and strategic process.
- Selection-Combination of written test, GD & interview (Interviews for top Management posts).
The company incorporates practices like Job Enrichment and Job Enlargement, to motivate
employees and to break the monotony of their job tasks. The correspondent herself works in both
sales and brand management departments, which is an example of job enlargement.
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PAY STRUCTURE:
Pay structure is generally the pay ranges and levels or hierarchy of job. It set out the different
level of pay for different types of employees. It may mean the structure of the total wage of a
worker or group of workers is composed;
- Nestle strives to offer fair remuneration. Remuneration level is above the average in industry.
- The variable component of the salary is comparatively big to reward individual Performance.
- In case of higher management level, the variable part is linked to individual & team target
achievements.
It consists of a variety of modules that can be presented to reward employees and identify unique
performance. The structure is based on consistent, delivering equitable and fair rewards to a
differentiated group and consists of the following non-financial and financial rewards.
- 'Passion to Win' awards- These quarterly awards have been institutionalized to reward those
who over-achieve their targets.
- Long-service Awards- To recognize employees who have been with the company for more than
30 years.
- 'Nestle Idea Award'- It was found from the correspondent that the company institutes Nestle
Idea Award every quarter to recognize and award employees who come up with relevant and
innovative ideas which have the potential of being implemented at Nestle.
BENEFITS: Nestle offers a comprehensive and competitive benefits package designed to meet
the varying needs of employees. These benefits are an integral part of total compensation
package and provide employees and their families valuable protection during employment with
Nestle.
- Provident fund
- Conveyance Reimbursements
- Residential Accommodation
- Monthly health check-ups & free consultation for self & family etc.
EMPLOYEE RELATIONS:
Employee Relations involves the body of work concerned with maintaining employer-employee
relationships that contribute to satisfactory productivity, motivation, and morale. Essentially,
Employee Relations is concerned with preventing and resolving problems which arise out of or
affect work situations.
Nestle provides a very healthy working environment which is one of the reasons why Nestle's
employees state their commitment level to be very high.
- Employee turnover is less than 5%., which is considered to be very low for a Multinational
Corporation.
- Nestle has a open culture & upward communication especially in case of grievance redressal is
encouraged.
- Work/Life balance is given importance, as illustrated in the Nestle Human Resource Policy
document.
- 'Nestle Family' annual events are organized by their HR department whereby employees along
with their families are invited.
- Emphasis is laid on safety of employees (Nestle Policy on Health and Safety at Work).
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CHANGE MANAGEMENT
- Nestle has adjusted to the ever-changing external environment for the last 140 years since its
inception 1866 without losing its fundamental views and fundamental values. It manages Change
and drives sustainable profitable growth by following the policy of making gradual changes
instead of making drastic and risky changes.
- ERP implementation- In June 2000, Nestle SA signed a contract of $200 million with SAP with
additional $80 million for maintenance and consulting to install an ERP system for its global
enterprise to maintain centralize a multinational that subsidiaries in 80 countries and have owns
200 operating companies. While the ERP system was likely to have long-term benefits, the
project touched the corporate structure and culture.
The structure was decentralized, and it tried to centralize it. This was initially opposed by
employees but with subsequent measures taken by the HR like training etc., this has been
successfully implemented.
Every employer is required to carry out a risk assessment for the workplace which should
identify any hazards present in the workplace, assess the risks arising from such hazards and
identify the steps to be taken to deal with any risks.
The Nestle Operational Safety, Health and Risk-Management Strategy document illustrates that:
CONCLUSION
Nestle, over its long historical development from a small village operation to the world's leading
food Company, has demonstrated an enviable capability to adjust to an ever changing external
environment, without losing its fundamental beliefs and core values, so important for long-term
success. Over the years to come, this capability of using HR as a strategic partner in
implementation of company's activities will continue to be challenged even more as Nestle is
growing in size and complexity up to a dimension which demands a continuous evolution of its
organization and of the way in which it is run. Its motivation based on willingness to learn and to
question what it is doing and why it is doing it, combined with its long standing respect for
Nestle values, will assure its success.
The Model employed by Nestle is one of High Performance, High involvement and high
commitment. Nestle is unique in the sense that it has been able to successfully inculcate its
business objective as well as its core values, consistently in its employees day-to-day activities
starting from recruitment till continuous performance appraisals. Like, open and flexible culture
is ensured by way of providing training programs to employees at all the levels.
Its HR strategies are very strong and dependable. That is why, it is able to manage its very large
force, about 339000 people, effectively, and create success. There is no doubt that the HR
strategy it adopts helps the organization’s employees contribute at the highest level possible and
improve the bottom line.
To meet its ultimate goals, including productivity, quality and customer satisfaction, the
company helps its employees to improve their skills, attitudes and behavior, and decrease labour
turnover. The policies and practices for building the right skills, eliciting the right behaviors and
achieving the right outcomes helps to govern its business strategy.
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The various HR strategies which it adopts can also be thought of as principles for managing the
workforce. As an HR professional, one can translate these principles into specific policies and
practices for building the right skills, eliciting the right behaviors and achieving the right
outcomes for one’s firm. Of course, what is right for one company may not be right for another.
But certainly, one can conclude that Nestle’s sound HR strategy can add value to a firm in
transforming and managing effectively in the globalised marketplace.
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