5. ï· It is the is deliberate creation of communication channels by the top authorities on formal
lines to inform, instruct, direct, suggest and evaluate employees in the process of
coordinating individuals efforts towards organization goal.
ï· Downward communication takes place when managers like to inform or educate the
employees.
ï· Downward communication is also utilized by the managers to send feedback to the
subordinates as a response to the upward communication
Upward Communication:
ï· The message or any other data which is sent to authorities by the employees is called
upward communication.
ï· Through this, top management can maintain continuous touch with the low levels.
ï· 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
ï· Examples include, Complaints about working conditions or about any other negligent
employee. The medium used include letters and emails.
Horizontal/ lateral communication:
Horizontal communication is a process of interaction between two or more individuals
positioned at the same hierarchical levels of the same franchise
Crosswise or diagonal communication:
ï· Flow of communication does not follow a particular direction. Example: A manager of
some franchise may discuss the matters might discuss for any matters with each other.
EXTERNAL COMMUNICATION:
In Nestle the external communication means sending messages to persons outside the
company. The sources used by Nestle for its external communication are as follows
ï· By Annual Report
ï· Media Advertisement
ï· Print media advertisement
ï· By giving packages
ï· Through services
ï· Through Presidents message
ï· Commercials breaks
Barriers to Communication in Nestle
The problems those are faced by Nestle are as follows
ï· 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.
ï· 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.
6. ï· Information overload and message competition:
Nestle in Lahore is the land office in Pakistan which deals to the whole Pakistan. There are
million of message which come from customer and they have not enough time to read and
reply, thus barrier in communication.
Organizational behavior OF NESTLE
âIndividuals are the bricks of an organization and Individuals create groups and groups create
organizationâ
Nestle organizational behavior focuses primarily on two major areas. Organization behavior
looks at individual behavior based mainly on contributions from psychologist; this area
includes such topics as personality, perception, learning and motivations. Nestle knows the
importance of individuals (MAN) who are the main bricks for organization behavior. Nestle
has been placing greater focus on employee empowerment and participation, which are
essential for long-term growth and success of the company, and therefore employees have
been encouraged to put forward their issues, concerns and suggestions. Nestle trust its
employeeâs focus on integrity, competence, consistency,
loyalty and openness. Manager stops at people desks during the day to chat with them about
their work, keeping up to date also earns the trust of employees.
Secondly their organizational behavior is concerned with group behaviors, which influence
roles, team building and conflict. The organization group behavior is good. Once the
individuals are skillful, energetic, responsible, agreeable etc, then it is easy to make form
successful groups.
All these things make the organization behavior successful.
In order to make all business affairs transparent, smooth and effective, following committees
and teams have been formed which work cohesively and independently:
ORGANIZATION BEHAVIOR OF Nestle AT INDIVIDUAL LEVEL:
Biographical Characteristics
To observe the application of dependent variables (productivity, job satisfaction, absence,
turnover & OCB) at individual level at Nestle, we have prepared some tables;
AGE:
8. ORGANIZATIONAL CULTURE OF NESTLE
ORGANIZATION CULTURE
Organization culture is a system of shared meaning with in an organization that determines in
large degree how employees act.
After Nestles inception, the corporate culture underwent a comprehensive renewal program
which was fully implemented in 2004. This program over the years included the revamping
of the organizational architecture, rationalization of staff, employee empowerment and
transparency in decision making through cross functional teams. This new corporate renewal
program has divided the companyâs major operations into independent activities supported by
legal, financial, informative and other services. In order to reinforce and monitor this
structural change, related check and balances have been established by incorporating
monitoring and control systems.
IMPORTANCE OF CULTURE in Nestle
9. According to the opinion of the Nestleâs sales officer Nestle is a sales oriented company.
Strong culture is a symbol of more profit more earning and sense of responsibility. It is also a
monument of well-disciplined enterprises in which every organ of that organization is well
concerned with the ultimate objective of the organization. As itâs a fundamental truth that
every individual from worker to Top manager is aware of his rights privileges responsibilities
and outcome of efforts being invested.
Special efforts for continuously enriching our business systems and implementing relative
strategies have always been fruitful which are aimed at augmenting a work culture that
enhances employee motivation as well as gaining a better understanding of forces that shapes
motivation, attitude, behavior patterns and expectations.
SIX DIMENSIONS OF CULTURE
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.
2. Attention to detail: According to our survey employees has given importance.
3. Outcome Orientation: The managerâs focuses on both results or outcomes and the
techniques needed to achieve those outcomes.
4. People Orientation: Management decisions do not take into consideration the effect of
outcomes on people within the organization. They have made their employees a central
part of their culture.
5. Team orientation: They emphasize on team orientation i.e. work activities are organized
around them. Stability Nestle is maintaining the status in contrast to growth.
6. Zero Tolerance Nestle have high ethical standards and a âBusiness Principles and
Ethics Policyâ in place. They value, encourage and inculcate corporate reforms, good
governance, best business practices and an environment of continued adherence to âZero
Toleranceâ, resulting in the development of our human capital and meeting all business
challenges.
LEADERSHIP:
Leadership is the manner and approach of providing direction, implementing plans, and
motivating employees in the organization. A Managerâs leadership style contributes, to the
subordinatesâ incentive, work fulfillment, and the work growth in the organization.
Leadership plays a vital role for the success of organization. Lack of leadership leads to
increased employee turnover, absenteeism, dissatisfied customers from poor customer
service.
In Nestle 53% of the employees feel that their managers are employee oriented leaders and
remaining 47% feels that their managers are task orientated leaders. So this shows that the
Nestle has got the combination of leaders that are 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.
ï· Task-Oriented:
A manager with a task-oriented style will have work results as his major concerns and
therefore, he will enlarge rigid policy that would lead the subordinates to reach the preferred
results.
ï· Employee-oriented:
A manager with an employee-oriented behavior objective is to improve the employeeâs
confidence and influence them to work jointly and to resolve the problems.
10. ï· Participative:
In Nestle the leadership style is participative in which the leader involves one or more
employees in the decision making process (determining what to do and how to do it). The
leader allows the employees to make the decisions. However, the leader is still responsible
for the decisions that are made. This is used when employees are able to analyze the situation
and determine what needs to be done and how to do it. Positive leaders use rewards, such as
education, independence, etc. to motivate employees.
While negative employers emphasize penalties such as loss of job, days off without pay.
POWER AND POLITICS:
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 on an individual position in the organization
and personal power comes from an individual unique characteristics.
ï· Legitimate Power:
Legitimate power is used in Nestle as it is based on the power a person receives as a result of
his or her position in the formal hierarchy of an organization. The employee has the authority
to control and use the organizational resources.
ï· Expert Power:
Expert power is the influence based on special skills, knowledge or expertise. Expertise has
become on of the most powerful sources. As jobs have become more specialized the
organizations have become increasingly dependant on experts to achieve goals.
LEARNING:
In Nestle learning is done to make the employees skilled at creating, acquiring, transferring
knowledge, and to enhance their skills. In an Organization learning is a long-term activity
that builds competitive advantage over time and requires sustained management attention,
commitment, and effort. In Nestle collaboration with team members give the employees
opportunity for learning social, technical and creative skills. When learning is effective the
organization is highly aware of how to motivate its employees in the best ways. Rewards,
such as education, bonuses are given to motivate employees. There are different kinds of
rewards NESTLE gives to their employees which are as follows:
ï· Cash bonuses
ï· Promotions
ï· Make team leader
ï· Increments in salaries
ï· Allowances like ( fuel allowance, mobile allowance)
ATTITUDE AND JOB SATISFACTION A NESTLE:
Overall employees are somewhat satisfied with their jobs but not completely. There is need
of improvement to make employees more satisfied so that they can perform well.
Training:
Nestle is providing to its employees. The employees have access to company sponsored
training programs and seminars.
11. ï· The purpose of training is to upgrade the capabilities and efficiency of all the employees
and prepare them for more responsible positions in future.
ï· Provide employees with greater opportunity to grow and succeed within the company.
Both managers and non-managers receive help from training and developmental program but
mostly non-managers are concerned with training while the managers are concerned with
developmental programs.
Career Advancement:
Nestle is providing clear path for career advancement to its employees. Company gives full
support to its employees in this context.
Discrimination:
According to employees, they face or experiences not any form of discrimination in Nestle.
They are fairly treated by their boss
Working environment:
Almost all the employees are satisfied with their physical working of employees. Nestle
aimâs to ensure a workplace that necessitates open and respectful communication between the
employeesâ abilities.
Relationship with supervisors:
Mostly employees somewhat agree that their supervisors communicates with them properly
and also provides counseling. They believe that their managers effectively lead the
department.
Supportive colleagues and coworkers:
The morale of the employees at Nestle is satisfactory and the have teen spirit in their work
environment. They are satisfied with their professionalism of their coworkers.
Recognition:
According to employees their performance is individually recognized and they are
appreciated according to the performance.
TEAMS AND GROUPS:
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 Pakistanâs 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 innovative ideas for the organization. To be effective, teams should be formed with
employees from a variety of functional areas. Work satisfaction relates to personal
satisfaction of team members for the work they have done. In Nestle their team consists of
individuals who have technical expertise, problem solving, decision making and interpersonal
skills. And the work team members do provide them freedom, the opportunity to use different
skills, the ability to complete it and that work has a substantial impact on others.
CONFLICT MANAGEMENT:
Nestle compromised self managed work teams according to employees response they feel
greater level of responsibility on their shoulders and they measure the things like planning
12. ,scheduling of work, and assigning tasks to the members of team, control the place of the
work, make decisions through discussion between the team members, take actions to solve
the problems and also interact with their customers and we found that the employees called
their colleagues relationship officer rather than sales officer.
PERSONALITY:
The people working at Nestle have Type A personality they are strong leaders and can work
well under pressure. They are independent and are excellent problem solvers. They ensure
that all work is accomplished in a timely manner. Type Aâs are very decisive and once a
decision is made they are quick to work towards its implementation. Gaining insights into
your personality is an important key in understanding your employees what motivates them
and where they do their best work. The leader should maximize its employeeâs strengths and
enhance their effectiveness as individuals. Type Aâs enjoy receiving recognition for their
work and they desire to advance in all areas, especially those related to their work. In general,
Type Aâs are able to work quickly and are often seen as high-achievers holding increasingly
high-powered positions In Nestle employees having Type A behavior often includes:
ï· Competitiveness
ï· Strong Achievement-Orientation
ï· Multi-tasking
ï· Aggressiveness
ï· Strive to think or to do more things at once.
ï· A commitment to achieve goals and an intense desire to compete.
ï· Always in a hurry
Code of Conduct
In line with Nestle managementâs 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.
3. Unsatisfactory safety performance.
4. Reporting on duty under the influence of drug or intoxicants.
5. Absence from duty without notice or permission from the supervisor unless the cause of
absence prevents giving notice.
6. Using influence for promotion, transfer or posting.
7. Conduct that violates common decency and morality.
8. Engaging in a fight or in activity that could provoke fighting on site property.
9. Insubordination or deliberate refusal to comply with reasonable requests or instructions.
10. Use or possession of weapons, ammunitions, explosives, intoxicants, illicit drugs
ornarcotics on site.
11. Acts of âhorse playâ on site property.
12. Gambling on site property or bringing illegal gambling paraphernalia on to the site.
13. 13. Theft or unauthorized removal of site property or property belonging to site employee,
contractor and vendor.
14. Intentional damage to site, employee, contractor or vendor property.
15. Dishonest act or fortification of records, including the giving of false information when
required.
16. Bringing combustible material on site or having any type of match sticks, cigarette lighter
or flame producing device in restricted areas.
17. Smoking except in designated areas.
18. Using or divulging without permission, any confidential information gained through
employment at the site.
19. Physical, mental or sexual harassment of fellow employee including threat to do bodily
harm.
20. Crime involving fraud, indecency, breach of dignity or public morals and other serious
offences.
21. Any other commission or omission which, in the opinion of the company, requires/justifies
dismissal/termination of employment.
ANALYSIS:
After studying various issues related to the organizational behavior within the organization
we analyzed that
ï· Nestle is working globally and is also operating in Pakistan. The organization behavior
regarding goal setting for employees I have analyzed that the management of Nestle is
effective in setting goals according to the competition in the privator sector of Pakistan.
ï· The management style in Nestle is kind of participative management in which employees
are given chance to share their ideas for decision making.
There are different kinds of rewards NESTLE gives to their employees which are as
follows:
ï· Cash bonuses
ï· Promotions Make team leader
ï· Increments in salaries
ï· Allowances like ( fuel allowance, mobile allowance)
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.
ï· 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.
14. ï· 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.
ï· Most of the employees have positive attitude toward their jobs.
If we see an overall picture, then it is clear that they are somewhat satisfied with their jobs
and they donât have a lot of stress on them. But still there is a need of improvement in
strategies of NESTLE to make workforce more productive.
NESTLE asses the employeeâs performance on:
ï· Leadership
ï· Communication skills.
ï· Team work and Co-operation.
ï· Problem solving & decision making.
ï· Customer focus.
In NESTLE training to the employees is given for the current improvement in the job while
developmental program is for improving the skill which will be used in the future. Both
managers and non-managers receive help from training and developmental program but
mostly non-managers are concerned with training while the managers are concerned with
developmental programs.
Nestle aimâs to ensure a workplace that necessitates open and respectful
Communication between the employeeâs abilities. Almost all the employees are satisfied with
their physical working of employees.
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.
The organization properly communicates its strategies to its employees to carry good results
efficiently and effectively. The communication between the employees is good and that
drives them to do outstanding achievement in work. In Nestle the employees are listened,
respected, trusted, and valued that gives them a sense of self worth and belonging.
Nestle is providing clear path for career advancement to its employees, Company gives full
support to its employees in this context. At Nestle, employees work in team and they have a
team of over 4,500 unique individuals who make it Pakistanâs 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 innovative ideas for the organization.
RECOMMENDATIONS:
To increase goodwill and positive impression of Nestle among employees and customers
Company should adopt the following things:
ï· Enhance more promotion opportunities for their employees.
ï· Encourage employees to participate in decision making.
15. ï· We would suggest that specific job related training should be imparted to employees this
would give an additional benefit to employees for improving their skills.
ï· Professional counseling programmes should also be started to provide employees with the
information, regarding future prospects at Nestle and in the mobile industry
ï· Although Nestle is covering whole Pakistan but is rates are high they can lower its rates,
with low charges in order to capture a larger market and this way they can capture the
customers of low income group.
ï· They should be establishing and maintaining effective communication with each employee,
sharing of ideas and employee involvement in decision making process
ï· The employer should show a greater trust to employees and employees should feel good
about their employer.
ï· Their should be no artificial barriers between employees and management.