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  1. 1. NestleIntroduction:Nestle S.A. is the largest nutrition and Foods Company in the world. Founded andheadquartered in Vevey, Switzerland. It can trace its origins back to 1866, when thefirst European condensed milk factory was opened in Cham, Switzerland, by theAnglo-Swiss Condensed Milk Company. One year later, Henri Nestle, a trainedpharmacist, launched one of the world’s first prepared infant cereals ‘Farine lactee’in Vevey, Switzerland. A global market leader in many product lines, includingmilk,chocolate, confectionery, bottled water and pet food.Company name: NestleIndustry : Food ProcessingHeadquarters : Vevey, SwitzerlandCompany type : Multinational CompanyKey persons : Peter Brabeck-Letmathe (chairman),Paul Bulcke (CEO)Products : Baby foods, coffee, dairy products, breakfastcereals,confectionery, bottled water, ice cream, pet foods ….Revenue : 83.64 billion (2011)Operating income : 12.53 billion (2011)Profit :9.487 billion (2011)Total Assets : 114.09 billion (2011)Total Equity : 58.27 billion (2011)Employees : 3,28,000(2012)
  2. 2. History: Nestle was formed in 1905 by the merger of the Anglo-Swiss Milk Company,established in 1866 by brothers George Page and Charles Page, and Farine LactéeHenri Nestlé, founded in 1866 by Henri Nestlé. The company grew significantlyduring the First World War and again following the Second World War, expanding itsofferings beyond its early condensed milk and infant formula products. The companyhas made a number of corporate acquisitions, including Crosse & Blackwell in1950, Findus in 1963, Libbys in 1971, Row tree Mackintosh in 1988 and Gerber in2007. Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent ofthe Swiss Market Index. It has a secondary listing on Euronext. In 2011, Nestlé waslisted No. 1 in the Fortune Global 500 as the worlds most profitable corporation.With a market capitalization of $ 200 billion, Nestlé ranked No. 13 in the FT Global2011.Organizational Culture of Nestle: Nestle has strong corporate culture which is reflected by the company logo itself. The logo,“Good Food Good Life” which is always attached to its products is the main guidance for everyactivity within the company. The company culture which is related its people structure. Ithas the culture of team focused and open door policy which become one of itscorporatestrengths.
  3. 3. Hierarchy Structure of Nestle:
  4. 4. Performance of Human Resource Management in Nestle: Nestle, the largest FMCG Company is working all over the world withmore than 500 factories in 86 countries making up of most of the continents. HenriNestle set up Nestle in Switzerland. Customers are provided with more than 500products by Nestle. Nestle was entitled by Henri Nestle. The logo of the company consists of his family coat of arms, the nest witha mother bird protecting her young. The symbol of the company is associated with itscare and attitude to lifelong nutrition. The Nestle nest bears the meaning ofnourishment, security and sense of family that are important to life.HR activities at Nestle:  Recruitment: The current report is that innumerable employees are engaged in Nestle, Nestle hires most of the employees through a method. An opportunity of employment comes when some employees want to resign or there is an urgent need. But in case of these three situations the head of the department must have to obtain consent of the managing Director (MD). The Divisional Head fills up a “Recruitment and Budgeted Form” if the request is approved.  Performance Appraisal: The corresponding manager or supervisor evaluate or Judge the Job performance of an employee by a method like performance appraisal, employee appraisal, and performance review or development discussion. The employees are given importance at their work place as the Nestle Company is absolutely dependent on the quality of its employee’s performance. The company pays incentives to its employees to encourage them to give better performance.  Compensation Benefit: Compensation is a main thing of Nestle Real Rewards package, which forces the top performers to give their best. The philosophy of Nestle is to afford and keep up disciplined compensation programs that keep up a long term relationship with employees at the time of judging their performance. Nestle promise to offer compensation packages including base pay, short and long term incentives and benefits,. Nowadays they are competitive in market.Leadership policies of Nestle: In an increasingly dynamic world, leaders face significant challenges andopportunities.  Lead to win: Has built credibility as a result of coherent action, leadership and achievement. Believes in the importance of alignment and management of expectations. Has a broad interest, a good general education, responsible behavior as well as a balanced lifestyle.
  5. 5.  Manage for results: Values proactive cooperation in order to create synergies at local, regional and global levels. Embraces change and is able to implement it and manage its consequences. Believes in achieving business objectives rooted in compliance and sustainable practices.Objective of the Organization HRM: The protection of its employees is Nestle first priority becauseemployees are the asset of this company. To maintain the global corporate standardNestle focuses on the need for safe working environments. Nestle has resolved toprovide a safe working environment for all their employees, contractors and visitorsand they are trying to implement Health and safety practices and programs at allworking places objectives of the organization are We provide a safe work place to owe employees. We lessen risks of our employees and contractors and visitors and take care of their injury or illness. We meet all requirements like health, safety, legislative etc. We establish and monitor new purposes to decrease work related injury or illness. We develop an efficient injury management system which helps the affected employees return to work. We supply information, provide training to employees and contractors to make them aware of their roles and responsibilities in decreasing the risk of work place injury or illness. We are encouraged a safety and Health management from our suppliers and contractors. We discuss on Health and safety matters with employees and other stakeholders.Method of HRM at Nestle: The Nestle group in the area of interpersonal relations and itsmanagement style and the corporation values are stated as follows:Their respect demands specific attitude that is worthy to be highlighted in thepresent policy.  For taking any advice and decision Nestle depends on its employees. So Nestle has a ‘Democratic Leadership Style’.  If the company is able to attract employees and develop its growth continually, they will easily achieve a long term success. This is a primary duty of all managers. The principle of the Nestle policy is to hire staff with personal attitude and professional skills because it will make them able to consolidate a long term relationship with the company. Hence ‘the potential for professional advancement’ is an important standard for recruitment.
  6. 6. In Nestle people are dealt with respect and faith. There is notintolerance, harassment or discrimination in the management and this principle isapplied and maintained at every stage and situation. Nestle management does not work in complexity and they arehonest in behaving with customers and employees for excellent communication. TheNestle is improving continuously for their sincerity in work, dialogue andtransparency.HRM Models: The source approach to HRM gives importance on an employee to be‘resourceful’ who increases performance by using motivation, communication,leadership to increase commitment and loyalty. The soft model considers that ifsatisfaction is increased it will be the only way to go about in the managementagainst various estimated methods possibly used in the hard model.The Objective of HR /Manpower planning: Manpower planning is done to balance and develop the organizationsability to meet its goal by developing Strategies that will contribute its optimumcontribution of human resource. The line manager and staff manager take theresponsibility of Manpower planning. The line management gives the estimate ofmanpower requirements and staff manager works on selection and recruitmentrelated to line manager to whom man power is vital.Organizations HR Planning and development: What the employee requires can be understood by an effectivemechanism called HR planning. HR planning can manage the changes in theorganization like growing decrease in requirements of employees. HR planningimplements new recruitment and hold skilled and efficient staff by understandingeasily the needs of futureTraining and development of Nestle:  It must be admitted that the company culture has learning. All employees try to upgrade their skills and knowledge continuously. So employees are willing to learn to be recruited by Nestle.  Training and development is done on-the-job. Every manager has a duty to guide and train employees for their progress.  Formal training programs are arranged with purpose of improving pertinent skills and competencies. Besides, these programs perform individual development. As a result one cannot get reward by attending programs.  Manager of Nestle measures progress which can be achieved by training programs. The purpose behind this is to motivate employees by providing attractive but realistic career that helps them develop their skills over a long- term period within the area of economic reality and a changing environment.  The act of mentor is done by each manager for his employees.  Formal assessment of Nestle is done once a year on a standard basis. It gives feedback on past performance and future potential. Other related aspects concerning a staff member’s performance are provided feedback.
  7. 7.  Objective Evaluation of the Organization: Human resource managers should identify human resource strategieslike flexible dynamic employees are attracted, selected and then trained andmotivated to be more productive than the competition. Human resource managersare not administrators but strategic partners. Inspire of being Human Company Nestle has most of the abovementioned qualities seen in the managers of present time. The role of HR at Nestle ischanging for certain factors. The HR managers at Nestle focus on following qualitiesalong with professional skills and practical experience: The HR managers should develop and motivate employees by addressing the issues that help others to improve in their work and their ability. The managers should be curious and broadminded and interested in other culture and lifestyles including continuous learning and sharing knowledge and ideas freely with others.Performance Management: The function of performance management is to ensure the fulfillmentof goals in an effective and efficient manner. Moreover, it watches performance oforganization and process of production, employees etc.Performance Management at Nestle: Line managers and HR assess formally once in a year and get feedback. Subordinate managers can interrogate for an unfair evaluation. The HR department has enlisted specific key performance indicators. Remuneration structure and promotion criteria consider individual performance. HR staff must help the management in elaborating training programs. Sufficient training programs are developed at the level of every working company that capitalizes on the availability of local regional or global resources of the group. Some training programs improve the language skills of the employees. These programs also try to consolidate corporate cohesion as well as to promote networking throughout the group. They develop and share best practices of the different management disciplines practiced in the group. E-learning programs are alternative to formal training programs.Competency profile mapping: Competencies are accumulated by totalizing success factors important for obtaining good results in a particular job or in a particular company at nestle. Success factors are made up of knowledge, skills and attributes that are stated in case of particular behaviors and are exhibited by efficient performers in those works. Attributes include personal characteristics, features, motives, values or ways of thinking affecting an individual’s behavior: Competencies in organization can be divided into two categories-
  8. 8. 1. Personal functioning competencies that include broad success factors untied to a specific work function or industry. These competencies often notice leadership or emotional intelligence behavior. 2. Functional/Technical competencies involve specific success factors withina given work function at nestle.Critical Analysis of HR Performance: The performance of an organization must be analyzed for the development. This analysis makes revaluation of existing strategy possible and easy to understand the faults so that organization can rectify them at once. Recruitment, training and development of employee’s caliber have been done with high standards. HR Management provides best working conditions with suitable growth opportunities. Employees must maintain rules and regulation of the country. HR Management keeps the record of the best performing employees and gives them opportunities for growth. It is clear that Nestle emphasizes on personal achievement and the paystructure HR has planned for its employees and the company also mixes practiceslike Job Enrichment and Job enlargement, to motivate employees and to break themonotony of their Job tasks. An example of Job enlargement is the correspondentwho acts both in sales and brand management department.
  9. 9. Bibliography:    management-nestle  Library/Documents/Jobs/HumanResourcesPolicy.pdf
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