3. HISTORY
Henri Nestlé established Nestlé in 1867 in Switzerland
His first product was lactogen formula for infants by the
name “Farine Lacteé”
“Nestlé” is a Swiss-German word which means “Little Nest”
which is its trademark
Nestlé is the worlds’ number one food company
5th largest company of the world according to its turn over
4. NESTLE IN MALAYSIA
• Nestlé's commitment to providing quality products to
Malaysians dates back almost 100 years ago.
• Nestlé began in Malaysia in 1912 as the Anglo-Swiss
Condensed Milk Company in Penang and later, growth and
expansion made a move to Kuala Lumpur necessary in
1939.
• Since 1962, with its first factory in Petaling Jaya, Nestlé
Malaysia now manufactures its products in 7 factories and
operates from its head office in Mutiara Damansara.
5. MISSION STATEMENT
"Nestlé is the largest food company in the world.
But, more important to them is to be the world's
leading food company”.
7. ORGANIZATIONAL STRUCTURE
Organizational chart clearly indicates the,
responsibilities, authorities and
accountability for each function.
Nestle is practicing functional structure.
Employees in the organization has clearly
written job description according to the
designation.
When delegations occurs, agreement is
written with the mutual understanding.
8. FUNCTIONAL STRUCTURE
Functional organization is a common type of
organizational structure in which the organization
is grouped based on specialization by functional
areas.
Some argue that functional departmentalization
allows for greater operational efficiencies in that
employees with shared skills and knowledge are
grouped together by functions performed.
10. FAYOL’S ADMINISTRATIVE
MANAGEMENT FUNCTIONS
Nestle adapt Fayol’s management process style.
Fayol was one of the most influential contributors
to modern concepts of management, having
proposed that there are five primary functions of
management:
(1) planning,
(2) organizing,
(3) commanding,
(4) coordinating, and
(5) controlling (Fayol, 1949, 1987).
11. Controlling is described in the sense
that a manager must receive feedback
on a process in order to make
necessary adjustments.
Many of today’s management have
reduced the five functions to four: (1)
planning, (2) organizing, (3)
leading, and (4) controlling.
Cont…
12. LEADERSHIP PRINCIPLES
Nestle practices “DEMOCRATIC LEADERSHIP
STYLE”
For taking any advice and decision Nestle
depends on its employees.
Nestle motto is:
"Teamwork with responsible leadership".
Nestlé is people & product oriented.
As decentralized as possible.
13. MOTIVATION
Employees get Motivation by:-
Immediate job satisfaction
Long-term career development
Superior pay and benefits
The personal growth that comes from
experience and training
Materialistic as well as internal motivation
Motivated by Rewards & Benefits
14. REWARDS & BENEFITS
Health screening/on-site occupational health
facilities
Sick pay
25 days' holiday
Mobile phone on a business need basis
Company bonus scheme
Contributory final salary pension scheme
Childcare vouchers (dependent on salary)
Gym facilities at larger sites
Staff shop at most sites
Flex time at some sites
15. COMMUNICATION
Nestle established internal and external
communication channels.
Employees are free to communicate to any
authority. There is no particular established
channel.
Authorities are bound to listen to the
employees.
