Homework Title/No: 1 Course Code: MGT619 Course Instructor: Mr RAJESH RANJAN Secctor(FMCG)

Date of Submission: 9THSEP 2011 Students Roll No: RQ3703A24 Section No: Q3703

Declaration: I declare that this assignment is my individual work. I have not copied from any other students work or from any other source except where due acknowledgement is made explicitly in the text, nor has any part been written for me by another person. Students Signature: PARUL BHALLA Evaluators Comments: Marks Obtained _____out of________

INTRODUCTION TO THE COMPANY : Nestl with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestl and is today the world's biggest food and beverage company. Nestl is today the worlds leading food company, with a 135-year history and operations in virtually every country in the world. Nestls 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.

MISSION Build branded food business to improve quality of life by offering tasty, affordable and highly nutritional product to our consumer. While maximizing stakeholder value

GOALS
Nestl'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.
Nestl does not favor short-term profit at the expense of successful long-term

business development.
Nestl 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.
Nestl is conscious of the fact that the success of a corporation is a reflection of

the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and

development are crucial.

PRODUCT LINE A few of the products are: Nestl maggi

Nestl butter cream desi ghee 1990 Nestl nido, Nestl cerelac 1991 Nestl rice, Nestl lactogen 1992 Nestl everyday, Gloria magi 1994 Nestl Milo, Nestl neslac 1996 Nestl juices, polo mint, Nescafe classic 1997 Nestl kit Kat

IMPORTANCE OF TRAINING AND DEVELOPMENT IN NESTLE: part of our strategy for maintaining our position as the worlds leading food and beverage company, through our basic business principle, which places priority on long-term business development over short-term temporary gain. learning is an integral part of our companyculture The willingness to learn is therefore an essential condition to be employed by Nestl Guiding and coaching is part of the responsibility of each manager and is crucial to make each one progress in his/her position First and foremost, training is done on-the-job All our employees are called upon to upgrade their skillsin a fast-changing world Formal training programs are generally purpose-oriented and designed to improve relevant skills and competencies. Therefore they are proposed in the framework of individual development programs

the process helps

to empower the teams to take responsibility for their

performance and maintain a positive attitude to their work NEED FOR TRAINING As the level of technology in Nestl factories has steadily risen, the need for training has increased at all levels. Apart from technical abilities new working practices are also required. For example, more flexibility and more independence among work teams are sometimes needed if equipment is to operate at maximum efficiency.

TRAINING PROGRAMMES IN NESTLE:

LITERACY TRAINING

Offer employees the opportunity to upgrade their essential literacy skills. A number of Nestl companies have therefore set up special programs for those who, for one reason or another, missed a large part of their elementary schooling. These programs are especially important as they introduce increasingly sophisticated production techniques into each country where they operate. Much of this is on-the-job training to develop the specific skills to operate more advanced equipment.

ADULT BASED EDUCATION TRAINING.

In South Africa, under the apartheid regime, many people were seriously deprived of elementary education. These include a significant percentage of the older employees at Nestl factories today. A special remedial programme has been designed and put in place for them: ABET, Adult Based Education Training.
It involves a two-hour session twice a week; one hour is donated by Nestl

from the working day, the otheris in the employees time.

The objective is to prepare workers to operate new equipment and

production methods. This requires the ability to read, write and do basic calculations
Nestl now spends approximately 6% of total payroll expenses on training at

Babelegi and in just two years the illiteracy rate has decreased by 15%.

NESTL APPRENTICESHIP PROGRAMMES

Apprenticeship programmes have been an essential part of Nestl training since the companys foundation in 1867. In addition to running its own apprenticeship programmes, in 1959 Nestl was also one of the founding members of Swisscontact, a non-governmental organisation dedicated to training people in developing countries.Since its creation, Swisscontact has trained a total of over 700 000 persons Apprenticeship programs have been an essential part of Nestl training where the young trainees spent three days a week at work and two at school. Positive results observed but some of these soon ran into a problem. At the end of training, many students were hired away by other companies which provided no training of their own.

Currently some 1115 Nestl apprentices are training around the world, either in joint programmes or those entirely run by the company. These positions are highly sought after, as they offer the promise of higher responsibilities and pay. At least 20 times that number of applications is received each year

LOCAL TRAINING:

local training is the largest component of Nestls people development activities worldwide and a substantial majority of the companys 240 000 employees receive training every year. Two-thirds of all Nestl employees work in factories, most of which organise continuous training to meet their specific needs Continuation training for ex-apprentices who have the potential to become supervisors or section leaders, The degree to which factories develop home-grown specialists varies considerably, reflecting the availability of trained people on the job market in each country. On-the-job training is also a key element of career development in commercial and administrative positions. Example: In Japan, for example, they consist of a series of short courses typically lasting three days each. Subjects include human assessment skills, leadership and strategy as well as courses for new supervisors and new key staff. In Mexico, Nestl set up a national training center in 1965. In addition to those following regular training programs, some 100 people follow programs for young managers there every year. These are based on a series of modules that allows tailored courses to be offered to each participant. Nestl Pakistan runs 12-month programs for management trainees in sales and marketing, finance and human resources, as well as in milk collection and agricultural services.

INTERNATIONAL TRAINING

 For over 30 years, the Rive-Reine International Training Centre has brought together managers from around the world to learn from senior Nestl managers and from each other.Country managers decide who attends which course, although there is central screening for qualifications, and classes are carefully composed to include people with a range of geographic and functional backgrounds. Typically a class contains 1520 nationalities. The Centre delivers some 70 courses, attended by about 1700 managers each year from over 80 countries. All course leaders are Nestl managers with many years of experience in a range of countries. Only 25% of the teaching is done by outside professionals, as the primary faculty is the Nestl senior management. The programs can be broadly divided into two groups: Management courses: these account for about 66% of all courses at Rive-Reine. The participants have typically been with the company for four to five years. The intention is to develop a real appreciation of Nestl values and business approaches. These courses focus on internal activities. Executive courses: these classes often contain people who have attended a management course five to ten years earlier. The focus is on developing the ability to represent Nestl externally and to work with outsiders. It emphasizes industry analysis, often asking: What would you do if you were a competitor? The teaching at Rive-Reine comprises one third theory, one third Nestl best practices, and one third external best practices EXTERNAL MANAGEMENT TRAINING:

Absorbing the corporate culture is an essential element of all Nestl management training. At the same time it is important to avoid the company becoming too firmly locked into a corporate mindset. External training programmes are the best means of maintaining a balance; they enable participants to keep up with the latest developments

in management theory and examine working methods and situations that are outside Nestls normal experience The primary source of external training is IMD, the International Institute for Management Development in Lausanne. Nestl played a significant role in the creation of IMD and is represented on its Foundation Board and its Business Advisory Council. Other schools are also regularly used, such as INSEAD in France and Harvard or Wharton in the United States as well as local business schools for employees who are going to remain in the country concerned.

PROGRAM FOR EXECUTIVE DEVELOPMENT

Program for Executive Development IMDs principal training vehicle for Nestl managers is PED Program for Executive Development. This is divided into two fiveweek modules that are usually attended 1218 months apart. Typically between five and ten Nestl managers attend the 70-person strong PED class. It is designed to prepare high-potential, mid-level managers for a major step forward in their careers and indeed many of our people who attend this programme are about to be promoted to a new position, sometimes in a different part of the world.

THE NESTL NUTRITION PROGRAMME

The Nestl Nutrition Programme for Health Professionals comprises four interrelated activities: nutrition workshops, publications, educational materials scholarships.

The workshops enable leading scientists and clinicians to meet and discuss topics of concern to the international health community. Past workshops,for example, have focused on polyunsaturated fatty acids, nutrition and bone development, intestinal immunology, probiotics, food allergies and diabetes.

To supplement classroom and workshop sessions for the Foundation Module, we deployed an interactive e-learning programme version starting in 2009, which by the end of 2010 had been tailored for use in 26 countries. In 2010, we developed an innovative approach for our hard-to-reach audiences, such as factory-based employees and their families TOOLS USED FOR VARIOUS TRAINING PURPOSES: Majorly lecture based teaching For literacy training- two-hour session twice a week; one hour is donated by Nestl from the working day, the otheris in the employees time.

Apprentice traininig -three days a week at work and two at school International training- The Centre delivers some 70 courses, attended by about 1700 managers each year from over 80 countries and includes: a.Management courses b. Executive courses:

Recently started e learning solutions Interactive e-learning programme version starting in 2009, which by the end

2010 had been tailored for use in 26 countries. In 2010,developed an innovative approach for our hard-to-reach audiences, such as factory-based employees and their families Practical Training To operate new euipment

External Organizations The primary source of external training is IMD, the International Institute for Management Development in Lausanne. INSEAD in France and Harvard or Wharton in the United States as well as local business schools

CONCLUSION: Nestls overarching principle is that each employee should have the opportunity to develop to the maximum of his or her potential. Nestl do this because they believe it pays off in the long run in their business results, and that sustainable long-term relationships with highly competent people and with the communities where they operate enhance their ability to make consistent profits. It is important to give people the opportunities for life-long learning as at Nestle that all employees are called upon to upgrade their skills in a fast-changing world. By offering opportunities to develop, they not only enrich themselves as a company, they also make themselves individually more autonomous, confident, and, in turn, more employable and open to new positions within the company.