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Project of HRM
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First andforemast I offer my sinceregratitudeto my
Almighty.Next I thankmy parents for theconstant
support andencouragementwithout whom it was
impossiblefor me to complete my task.ThenI humbly
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acknowledgemy madam……..whoshowedmethe perfect
way to completethis project. Last but not least I am great
fullof allmy friendsandwell wisherswho helpinevery
possible aspect.
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Table of content
Executive summary……………………….
1. Introduction………………………….
 History……………………………….
 Nestle vision…………………………
 Nestle mission……………………….
 Goals and objectives…………………
 Organizational structure……………..
2. Recruitment process…………………
 Strength………………………………
 Weakness………………………….....
 Suggestion……………………………
3. Selection process…………………….
 Strength……………………………...
 Weakness…………………………...
 Suggestion…………………..………
4. HR objectives………………………
5. Training program..………………….
6. Professional development………….
 Strength………………………….…
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 Weakness…………………………...
 Suggestion……………………….…
Conclusion………………………………
Executive Summary
The report which was assigned to me is really a reflection of knowledge and
practical implementation of this knowledge.
First of all there is discussed all about Nestle background information’s
like its mission statement, vision statements and also product & services etc.
Then there is discussed Human Resource planning procedure that How Nestle
adopts those practices like Planning, Recruitment and Selection etc.
Then there is also discussed about Training and Development Method that How
Nestle trained their employees. Then there is discussed about Performance
appraisal, How employees performance to be evaluated in Nestle.
Then also discussed about what Nestle give rewards or compensation to their
employees
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INTRODUCTION OF NESTLE
Nestle is the leading FMCG company of Switzerland established by
HenriNestle.Nestle is serving worldwide with its more than 500 factories in 86 co
untriescomprising almost all continents. Nestlé’s product portfolio is more than 50
0products all over the world serving best to their customers.Henri Nestlé
endowed his company with the symbol derived from his name. His family
coat of arms, the nest with a mother bird protecting her young, became
the Company's logo and a symbol of the Company's care and
attitude to life-long nutrition. The Nestlé nest represents the nourishment,
security and sense of family that are so essential to life. The first product
made by Henri Nestlé, a food for babies who were unable to
breastfeed. His first success was a premature infant who could
not tolerate his mother's milk or any of the usual substitutes. People quickly
recognized the value of the new product, after Nestlé's new formula saved the
child's life, and soon, FarineLactée Henri Nestlé was being sold in much of
Europe. Nestlé has been serving Pakistani consumers since 1988, when the
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parent company, the Switzerland-based Nestlé SA, first acquired a share in Milk
pak Ltd.
Nestlé is committed to the following Business Principles in all countries, taking
into accountlocal legislation, cultural and religious practices:
 Nestlé'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.
 Nestlé does not favor short-term profit at the expense of successfullong-
term business development.
 Nestlé 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.
NESTLE VISION
The consumer's voice is the key to Nestlé Pakistan's vision and working.
Whether you live in the remotest village or the city of Karachi, Nestle consumer
services team stands ready to listen to your concerns and provide answers about
our products and guidance on matters of health and wellness.
 Nestlé’s global vision is to be the leading health, wellness, and Nutrition
Company of the world. Nestle’ Pakistan subscribes fully to this
global vision. In addition to that, Nestle Pakistan also envisions to:
 Lead a dynamic motivated and professional workforce that is
proud of its heritage and bullish about the future
 Meet the nutritional needs of all age groups through a
diversified product range that contains an innovative portfolio of
branded food and beverages of the highest quality Maintain long-term
growth and deliver shareholder value
 Establishing responsible communication with the consumer which in turn
can provide us a better look into what changes need to be made to our
products
NESTLE MISSION
“Nestle is dedicated to providing the best foods to people
throughout their day,
thro ugho ut their lives , thro ugho ut the wo rld . W ith o ur uniq
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ue exp erienc e o f anticipating consumers' needs and creating
solutions, Nestle contributes to your well-being and enhances your quality of
life.”
NESTLE GOALS AND OBJECTIVES
Nestle business objective is to manufacture and market the Company's products in
s uc h a way as to c reate value that c an b e s us tained o ver the
lo ng term fo r shareholders, employees, consumers, and business partners.
Nestle 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. Nestle continues to maintain its commitment to follow
and respectall applicable local laws in each of its markets. At the entrance of
this new millennium, Nestlé’s objective Is to consolidate and
strengthen its leading position at the cutting edge of innovation in the
food area in order to meet the needs and desires of customers around the
world, for pleasure, convenience, health and well being.
ORGANIZATIONAL STRUCTURE
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MARKETING MANAGER
It is an employee who is responsible for planning and controlling its
marketing activities and budgets .Marketing manager take cares the
promotional strategies of the products. Manager tries to use innovative ideas for
the improvement of productin market.
FINANCE MANAGER
T h e f ie ld finance c o vers the ec o no mic s o f the contingent
claims. Financial economists study the valuation of these claims, the
markets in which they are traded, and their use by individuals, corporations, and
the society at large .Finance manager and marketing manager are related with each
other to meet their marketing targets. It is important because alone marketing
manager can not promote any marketing strategy without any budget.
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The long-term success ofthe Company depends on its capacity to attract, retain
and develop employees able to ensure its growth on a continuing basis. This is a
primary responsibility for all managers. The Nestlé policy is to hire staff with
personal attitudes and professionalskills enabling them to develop a long-term
relationship with the Company. Therefore the potential for professional
development is an essential standard for recruitment. Each new member joining
Nestlé is to becomea participant in developing a sustainable quality culture which
implies a commitment to the organization, a sense for continuous improvement and
leaves no place for complacency. Therefore, and in view of the importance of these
Nestlé values, special attention will be paid to the matching between a candidate’s
values and the Company culture. Hence, a clear communication of these principles
and values from the very beginning of the recruitment process is required. Those
who are not willing to adhere to the CorporateBusiness Principles and/or to the
Nestlé Management and Leadership Principles cannot be part of the Company, as
both these documents express the basic values and principles of the Organization.
Moreover, for managerial positions specific leadership qualities and business
acumen will be required. Nestlé wishes to maintain and develop its reputation as an
employer of high repute. Contacts with universities, attendance at recruitment
events and other contacts are to be undertaken so as to ensure good visibility of the
Company vis-à-vis relevant recruitment sources. Particular care will be given to
the treatment of each candidacy regardless of the outcome of the selection process.
Even when promoting employees intensively from within the organization, it is the
role of management and HR to keep an eye on valuable candidates from outside
and to benchmark internal skills with external offers. Joining Nestlé7 the Nestlé
Human Resources Policy whilst adequate recruitment tools may improve the hiring
process, it is understood that the decision to hire a candidate remains in the hands
of the responsible manager supported by the HR staff. Under no circumstances
should the decision to hire or not to hire be left in the hands of an outside
consultant or expert. As mentioned in the Nestlé Management and Leadership
Principles, only relevant skills and experience and the adherence to the above
principles will be considered in employing a person. No consideration will be
given to a candidate’s origin, nationality, religion, race, gender or age. It is as
important to hire the right person as it is to integrate newcomers in the organization
so that their skills and behavior can merge smoothly with the company culture.
Whereas from new employees it is expected to respectour company’s culture, it is
accordingly required from all employees to show an open mind towards new ideas
and proposals coming from outside.
RECRUITMENT PROCESS:
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Recruiting is the process offinding & attracting capable applicants for
employment.
The process begins when new recruits are required & ends when their applications
are submitted.
The result is a poolof applicants from which new employees are selected.
Nestle Pakistan wants
 Fresh graduates as knowledge worker
 Specialist experienced people for special purpose
 People for Skilled and labor based events
 Fresh Graduates As Knowledge Worker
 Personnel planning and vacancy announcement
 Nature of Application form
 Recruiters qualification
 Channels of recruitment
 Recruitment- Constraints and challenges
Recruitment Channel
 Internal recruitment channel
 External recruitment channel
 Walks-ins and write-ins
 Employee referrals
 Advertising
 Private placement agencies & Professional search firms
 Educational institutions & Professional associates
 International recruitment
This should attract personnel of high caliber and of the required potential necessary
to achieve present and future objectives.
It is the Company’s Policy to:
1. Strive to achieve a balanced staff, reflecting the overall composition of the
community in which it operates and apply non-discriminatory practices.
2. Stimulate equality of opportunity by the use of fair procedures and practices.
3. Ensure that Nestlé Employees are always above suspicion of favoritism and
nepotism. Fairness and impartiality should be placed before anything else and
merit should be the only basis of employment.
The quality of our recruitment contributes to the quality of the Company since the
new resources will be the drivers of the growth of Nestlé.
The Company believes in flat and flexible structures. Flat structures provide a
wider scopefor jobs, which facilitate employee motivation, enhance effective
communication and learning opportunities and at the same time reduce hierarchical
reporting layers, resulting in speed and efficiency in business operations.
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The Company’s policy with respectto recruitment is to hire individuals through a
process that is professional and consistent; one that reflects the Company’s
commitment to the principles of hiring the best possible candidates and ensuring
employment equity. This is achieved through Competency Based Interviewing
which is aligned to our Company’s Leadership Framework.
The potential for professional development is an essential standard for recruitment.
Special attention will be paid to the match between the candidates’ personal
attitudes and the Company’s culture and values as well as their willingness to
adhere to the Nestlé Corporate Group-wide Policies and Guidelines.
All applicants to be considered for employment with the Company will be required
to possesseducational and professional qualifications, experience and ability
appropriate for the vacancy to be filled. The Company may, in addition, require
applicants to undergo practical/aptitude tests and/or examinations and interviews.
Our recruitment and selection decisions are fair and objective.
IN NESTLE THEY SURELY SEE QUALIFICATIONBUT THEY PREFER
A PERSON WITH REQUIRED SKILLS, APTITUDE, EXPERIENCE AND
QUALIFICATION.
POSITIVE POINTS OF RECRUITMENT
Nestle have struggled to recruit the right talent needed to help our business grow
and develop.
 Nestle gives people an opportunity for life-long learning as at nestle. The
factor of succession planning is prevailing.
 They use the fight techniques for recruiting.
 They recruit employees through professional and consistent way
 In nestle they surely see qualification but they prefer a person with required
skills, aptitude, experience and qualification.
 Culture diversity exist through which Nestle got
 Adoptable
 New blood
 Large number of employees.
WEEKNESS
 At the time of the recruitment the most suitable and appropriate employee is
not available.
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 Recruitment continues in the full year.
 Fresh graduates are less prefer for the job.
 Online recruitment made some problems that so many people’s apply for
that position on the job boards do not even meet the basic qualification for
the position
 When Nestle recruit new blood (employees) from the external sources it is
comparably higher cost.
SUGGESTIONS
 Company recruit employees through job fairs.
 Company should main focus on external recruitment that innovation and
creativity is taken place.
 When a collection of qualified candidates are available then requirement
process is started
 When company recruit employees then personal biasness of employees are
avoided.
 Company should introduce such policy so that peoples belong to different
culture fit with organization.
SELECTION:
The selection process is about getting the bestcandidate for the job. Companies
use a range of selection methods to suit their specific recruitment needs. At Nestlé,
successfulapplications proceed to the online testing stages following a sifting
procedure. This includes a situational strengths test – providing candidates with an
insight into the culture and role they are applying for, a numerical test and a
strengths-based telephone-video interview.
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Candidates that successfully complete these stages are invited to attend an
assessment centre day.The assessment centre include:
 a strengths-based interview
 a written exercise to test a candidates skills by analyzing a business or technical
issue and making recommendations for action presentation to test behaviors to
certain business scenarios
 A group discussion to show how a candidate interacts with other people.
 The tasks designed for the assessmentcentre provide an overview of how a
candidate may behave in a number of different scenarios. Assessors review
individual candidate performance and their overall suitability for the role against
key behavioral indicators. The behavioral indicators are highlighted below.
Candidates that are successfulat this stage in the assessmentprocess are offered a
position within the Nestlé Academy and invited to a formal induction programme.
The induction programmed provides an overview of Nestlé and specific
information about the function they are joining. It also provides individuals with a
chance to network with other candidates from other schemes and functions. The
programmed includes meeting the senior leadership team and allows individuals to
learn important information about the company. This is a vital part of the process
and ensures new recruits get the bestpossible start to their career.
NESTLE SELECTION STRENGTH AND WEAKNESS
STRENGTH
• Nestle company use panel as well as mass interview which save the time of
interviewers and help the interviewer to compare the candidate and to select the
right personfor right job.
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• Nestle company use all types of questions in their interview according to the
requirement of the job – Situational questions – Behavioral questions – job-related
questions – Stress questions
• In addition nestle company use competency and motivational questions
• Nestle company uses STAR approachin competency based questions
– S Situation: Why did you have this deadline?
– T Task: What was your specific role in the task?
– A Action: What did you do to ensure you met the deadline?
– R Result: What was the end result?
• Nestle company have experienced interviewers
Uses all the types of interviews e.g. – selection interview – appraisal interview –
exit interview.
Select right person for the right job
WEEKNESSES
• The criteria of interview of nestle company is no doubtvery clear and useful but
there are some weaknesses in their procedure
• Sometime interviewer select the candidate on the basis of personal
characteristics or personal relationship with the candidate like same cast, belong to
same city
• Interviewer sometimes selects that candidate which is not eligible for that job on
the basis of strong reference.
SUGGESTIONS
 Company selection process should have main focus on behavior of selected
candidate.
 Company should focus on work sampling because applicant performs a
small sampling of actual job activities.
 Use psychometric assessment to pinpoint those personality factors that
predict success.
OBJECTIVE OF THE ORGANIZATION HRM:
The protection of its employees is Nestle first priority because employees are the
asset of this is company. To maintain the global corporate standard Nestle focuses
on the need for safe working environments. Nestle has resolved to provide a safe
working environment for all their employees, contractors and visitors and they are
trying to implement Health and safety practices and programs at all working places
objectives of the organization are We provide a safe work place to owe employees.
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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 its management style and the
corporation values are stated as follows: Their respect demands specific attitude
that is worthy to be highlighted in the present policy.
 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 .In
Nestle people are dealt with respect and faith. There is not intolerance,
harassment or discrimination in the management and this principle is applied
and maintained at every stage and situation. Nestle management does not
work in complexity and they are honest in behaving with customers and
employees for excellent communication. The Nestle is improving
continuously for their sincerity in work, dialogue and transparency.HRM
Models: The sourceapproachto 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 if satisfaction is increased it will be the only way to go
about in the management against various estimated methods possibly used in
the hard model. The Objective of HR /Manpower planning: Manpower
planning is done to balance and develop the organizations ability to meet it’s
for taking any advice and decision Nestle depends on its employees. So
Nestle has a ‘Democratic Leadership Style’
 Manager of Nestle measures progress which can be achieved by training
programs. The purposebehind this is to motivate employees by providing
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attractive but realistic career that helps them develop Formal training
programs are arranged with purposeof improving pertinent skills and
competencies. Besides, these programs perform individual development. As
a result one cannot get reward by attending programs. Training and
development is done on-the- job. Every manager has a duty to guide and
train employees for their progress. 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.
Goal by developing Strategies that will contribute its optimum contribution
of human resource. The line manager and staff manager take the
responsibility of Manpower planning. The line management gives the
estimate of manpower requirements and staff manager works on selection
and recruitment related to line manager to whom man power is vital.
Organizations HR Planning and development: What the employee requires
can be understood by an effective mechanism called HR planning.HR
planning can manage the changes in the organization like growing decrease
in requirements of employees. HR planning implements new recruitment
and hold skilled and efficient staff by understanding easily the needs of
future Training and development of Nestle:
 Formal assessmentof 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. Objective
Evaluation of the Organization: Human resource managers should identify
human resource strategies like flexible dynamic employees are attracted,
selected and then trained and motivated to be more productive than the
competition. Human resource managers are not administrators but strategic
partners. Inspire of being Human Company Nestle has most of the above
mentioned qualities seen in the managers of present time. The role of HR at
Nestle is changing for certain factors. The HR managers at Nestle focus on
following qualities along 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 lea the act of mentor is done by each
manager for his employees. Their skills over a long-term period within the
area of economic reality and a changing environment. Ring and sharing
knowledge and ideas freely with others. Performance Management: The
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function of performance management is to ensure the fulfillment of goals in
an effective and efficient manner. Moreover, it watches
 Performance of organization 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
corporatecohesion as well as to promote networking throughout the group.
They develop and share bestpractices 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.
TRAINING PROGRAMS AT NESTLÉ
The willingness to learn is therefore an essential condition to be employed by
Nestlé. First and foremost, training is done on-the-job. Guiding and coaching is
part of the responsibility of each manager and is crucial to make each one progress
in his/her position. 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 and not as a reward.
LITERACY TRAINING
Most of Nestlé’s people development programs assume a good basic education on
the part of employees. However, in a number of countries, we have decided to
offer employees the opportunity to upgrade their essential literacy skills. A number
of Nestlé companies have therefore set up special programs for those who, for one
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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. As the level of
technology in Nestlé factories has steadily risen, the need for training has increased
at all levels. Much of this is on-the-job training to develop the specific skills to
operate more advanced equipment. But it’s not only new technical abilities that are
required. It’s sometimes new working practices. For example, more flexibility and
more independence among work teams are sometimes needed if equipment is to
operate at maximum efficiency. “Sometimes we have debates in class and we are
afraid to stand up. But our facilitators tell us to stand up becauseone day we might
be in the parliament
NESTLÉ APPRENTICESHIP PROGRAM
Apprenticeship programs have been an essential part of Nestlé training where the
young trainees spent three days a week at work and two at school. Positive results
observed but some of these soonran into a problem. At the end of training, many
students were hired away by other companies which provided no training of their
own. Like them, for me the Nestlé Apprenticeship Program will not be the end of
my training but it will provide me with the right base for further advancement. We
should have more apprentices here as we are trained so well!” “It’s not only a
matter of learning bakery; we also learn about microbiology, finance, budgeting,
costs, sales, how to treat the customer, and so on. That is the reason I think that this
is really something that is going to give meaning to my life. It will be very useful
for everything.”
LOCAL TRAINING
Two-thirds of all Nestlé employees work in factories, most of which organize
continuous training to meet their specific needs. In addition, a number of Nestlé
operating companies run their own residential training centers. The result is that
local training is the largest componentof Nestlé’s people development activities
worldwide and a substantial majority of the company’s 240000 employees receive
training every year. Ensuring appropriate and continuous training is an official part
of every manager’s responsibilities and, in many cases;the manager is personally
involved in the teaching. For this reason, part of the training structure in every
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company is focused on developing managers’ own coaching skills. Additional
courses are held outside the factory when required, generally in connection with
the operation of new technology. The variety of programs is very extensive. They
start with continuation training for ex-apprentices who have the potential to
become supervisors or section leaders, and continue through several levels of
technical, electrical and maintenance engineering as well as IT management. 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. Here too, most courses are delivered in-house by Nestlé
trainers but, as the level rises, collaboration with external institutes increases. “As
part of the Young Managers’ Training Program I was sent to a different part of the
country and began by selling small portions of our Magi bouillon cubes to the
street stalls, the ‘sari sari’ stores, in my country. Even though most of my main key
accounts are now supermarkets, this early exposure were an invaluable learning
experience and will help me all my life.” “Through its education and training
program, Nestlé manifests its belief that people are the most important asset. In my
case, I was fortunate to participate in Nestlé’s Young Managers Program at the
start of my Nestlé career, in 1967. This foundation has sustained me all these years
up to my present position of CEO of one of the top 12 Nestlé companies in the
world Virtually every national Nestlé company organizes management-training
courses for new employees with High schoolor university qualifications. But their
approaches vary considerably. 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. Nestlé 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. These involve periods of fieldwork, not only to develop a
broad range of skills but also to introduce new employees to company organization
and systems. The scopeoflocal training is expanding. The growing familiarity
with information technology has enabled “distance learning” to become a valuable
resource, and many Nestlé companies have appointed corporatetraining assistants
in this area. It has the great advantage of allowing students to select courses that
meet their individual needs and do the work at their own pace, at convenient times.
In Singapore, to quote just one example, staff is given financial help to take
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evening courses in job-related subjects. Fees and expenses are reimbursed for
successfully following courses leading to a trade certificate, a high schooldiploma,
university entrance qualifications, and a bachelor’s degree.
INTERNATIONAL TRAINING
Nestlé’s success in growing local companies in each country has been highly
influenced by the functioning of its international Training Centre, located near our
company’s corporateheadquarters in Switzerland. Forover 30 years, the Rive-
Reine International Training Centre has brought together managers from around
the world to learn from senior Nestlé managers and from each other.Country
managers decide who attends which course, although there is central screening for
qualifications, and classes are carefully composedto include people with a range of
geographic and functional backgrounds. Typically a class contains 15–20
nationalities. The Centre delivers some 70 courses, attended by about 1700
managers each year from over 80 countries. All course leaders are Nestlé 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 Nestlé 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 Nestlé values and business
approaches. These courses focus on internal activities.
Executive courses:these classes often contain people who have attended a
management coursefive to ten years earlier. The focus is on developing the ability
to represent Nestlé externally and to work with outsiders. It emphasizes industry
analysis,
PROFESSIONAL DEVELOPMENT
Learning is part of the Company culture. Each employee, at all levels, is conscious
of the need to upgrade continuously her/his knowledge and skills. The willingness
to learn is therefore a non- negotiable condition to be employed by Nestle. First
and foremost, training is done on-the-job. Guiding and coaching is part of the
responsibility of each manager and it is crucial to make each one progress in
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her/his position. When formal training programs are organized they should be
purposeoriented and designed to improve relevant skills and competencies.
Therefore they are proposed in the framework of individual development
programs. Industrial relations Nestle upholds the freedom of association of its
employees and the effective recognition of the right to collective bargaining.
Nestle wishes, also through its relationship with unions and other representative
associations, to sustain the long-term development of the Company, both to the
benefit of the employees and of the Company, by maintaining a level of
competitiveness adapted to its economic environment. Industrial relations are a
clear responsibility of local management and will be handled at the appropriate
level: first at site level (factories, warehouse) subsequently at regional or national
level, according to local law and practices. Relations with unions will be
established under strict observation of national law, local practices as they’ll as
those international recommendations to which Nestle has adhered to on a voluntary
basis as stated in the Corporate Business Principles. Contacts with union delegates
should create a further opportunity to provide information allowing their members
and other representative associations to acquire a full understanding of the business
activities and the goals of Nestle. In accordancewith local legislation, Nestle will
refrain from any action restricting the employee’s right to be or not to be affiliated
to a union. Nestle will not engage with any union or other representative
association in activities or discussions other than those relating to employment and
working conditions as they’ll as issues relating to the workplace. Whenever
negotiations take place, they will be duly prepared with the full involvement of line
management and take into account both the Company’s and the employees’
legitimate interest. In dealings with unions, it will be ensured that management
prerogatives be properly maintained. The fact that Nestle is more people and
productthan systems oriented is reflected in the way HR is functioning and is
organized. The HR manager should not only have the skills and competencies from
a purely professional standpoint but also have the charisma and the credibility to be
a trustworthy partner to her/his colleagues. Whereas the HR function should indeed
provide flawless administrative support, its main role is to add value to the
business and to play a proactive role in every situation where HR action is
required. Specific HR KPI’s are useful in assessing the performance of an HR unit.
However, it should be kept in mind that the HR contribution aims in the first place
at optimizing the overall company performance through improving people
22 | P a g e
performance. With the evidence that the human capital is of increasing importance,
HR plays indeed a pivotal role in the conception and implementation of the people
strategies that impact financial results and the organization’s overall reputation and
effectiveness.
They have a unique set of values and guiding principles that have been built up
over time. To try to summarize them in a sentence or two would make them
meaningless. To engender the unique spirit that permeates the entire Nestle Group:
They believe in people, rather than systems. They are committed to creating value
for our shareholders, but they will not favor short-term profits at the expense of
long-term business development. They are as decentralized as our basic policy and
strategy decisions will allow. They are committed to continuous improvement
rather than dramatic, one-off changes Above all, they are pragmatic and not
dogmatic If these are values that strike a chord with you, spare a few minutes to
read through the questions below. To keep us ahead in the ever-changing food
industry, they are constantly driving forward the boundaries of our industry. Our
people must be: Creative Excited by the future Flexible they are committed to the
continual training and personaldevelopment of our people. A world of
opportunities quite literally awaits those who are prepared to: Learn something
new every day Adapt to new environments Develop multi-lingual skills you could
have what it takes to be a Nestle manager. The development of our business
depends on finding people who are ambitious for themselves and for our company,
who can: Communicate and innovate Motivate and inspire Delegate without
abdicating responsibility Nestle has been an international company since its very
beginning. Food is intrinsically linked with local eating and social habits, and
Nestle endeavors to integrate itself as much as possibleinto the cultures and
traditions of the countries where it operates. To deliver products that meet the
needs of individual consumers, they need people who: Respectother cultures
Embrace diversity never discriminate on any basis
Whether they are creating a productto fulfill a nutritional need, or a chocolate bar
that's purely for pleasure, Nestle is only satisfied with the best. They expect that
same commitment to quality from our people. So get in touch with us if you are:
Enthusiastic Dedicated Ready to be part of our success Nestle is not a faceless
company selling to faceless consumers. It is a human company providing response
to individual human needs the world over. Nestle CorporateBusiness Principles:
23 | P a g e
Nestle is committed to the following Business Principles in all countries, taking
into accountlocal legislation, cultural and religious practices: – Nestlé’s business
objective, and that of management and employees at all levels 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, business
partners and the large number of national economies in which Nestle operates. –
Nestle does not favor short-term profit at the expense of successfullong-term
business development, but recognizes the need to generate a healthy profit each
year in order to maintain the supportof our shareholders and the financial markets
band to finance investments; Nestle recognizes that its consumers have a sincere
and legitimate interesting 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.
Protection of the Environment Since its early days Nestle has been committed to
environmentally sound business practices throughout the world and continues to
make substantial environmental investments. In this way Nestle contributes to
sustainable development by meeting the needs of the present without
compromising the ability of future generations to meet their own needs. The Nestle
Policy on the Environment underlines this commitment. Nestle also adheres to the
International Chamber of Commerce (ICC) Business Charter for Sustainable
Development. This Charter requires the establishment of policies, programs and
practices for conducting operations in an environmentally sound manner. Nestle
fully supports the United Nations Global Compact’s three guiding principles on
environment.
.NESTLE TRAINING AND DEVELOPMENT STRENGTH
AND WEEKNESS:
It can be conclude that training and development programs are essential for all
types of organizations and for all employees, as it enhance the skills and
knowledge of the employees.
STRENGTHS
 They hired foreign instructor for the training of the employees.
24 | P a g e
 Literacy training provides a chance to employees for enhance their
educational skills so that their productivity increase.
 The employees after getting trained perform well and become able to
maximize their optional.
 They provide international training through which greater output may
generated through employees.
 They enhanced the development.
 International training and online training motivate the employees to work at
high level.
WEEKNESS
 The factor of favoritism effect the performance of certain employees.
 Technology to support, enhance, and expand employee development is
lacking
RECOMANDATIONS
 They should develop such system in their HR department that no ethical
issue can be raised.
 The employee should participate in all the activities of the department.
 They should choose plan in such a way that when there is a need of
recruitment the proper candidate must be available.
 The factor of favoritism must be eliminated from the department of HR.
 They should hold meetings of the HR employees more frequently for
eliminating any misunderstanding.
 Centralized campus technology/systems be created or enhanced to
support employee development.
CONCLUSION
Human Resource Management is a key function in an organization. Having a
flexible workforce with the right skills and qualifications means that a business is
better able to respond and adapt to changes in the market. Taking an innovative
approach to recruitment and selection ensures that a business recruits and selects
the right candidates who can grow and develop with the business.
25 | P a g e
To date, Nestlé’s strengths-based recruitment approachhas benefitted both the
company and the candidates applying. It gives young people with limited work
experience the opportunity to demonstrate their potential and suitability for a
position. By mirroring the company’s commitment to creating opportunities for
young people across Europe, through its European Youth Employment Initiative,
for example, Nestlé is rising to the challenges within its external environment
whilst preparing its workforce for continued growth

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Hrm project on nestle

  • 1. Project of HRM Submitted to: Submitted by: First andforemast I offer my sinceregratitudeto my Almighty.Next I thankmy parents for theconstant support andencouragementwithout whom it was impossiblefor me to complete my task.ThenI humbly
  • 2. 2 | P a g e acknowledgemy madam……..whoshowedmethe perfect way to completethis project. Last but not least I am great fullof allmy friendsandwell wisherswho helpinevery possible aspect.
  • 3. 3 | P a g e Table of content Executive summary………………………. 1. Introduction………………………….  History……………………………….  Nestle vision…………………………  Nestle mission……………………….  Goals and objectives…………………  Organizational structure…………….. 2. Recruitment process…………………  Strength………………………………  Weakness………………………….....  Suggestion…………………………… 3. Selection process…………………….  Strength……………………………...  Weakness…………………………...  Suggestion…………………..……… 4. HR objectives……………………… 5. Training program..…………………. 6. Professional development………….  Strength………………………….…
  • 4. 4 | P a g e  Weakness…………………………...  Suggestion……………………….… Conclusion……………………………… Executive Summary The report which was assigned to me is really a reflection of knowledge and practical implementation of this knowledge. First of all there is discussed all about Nestle background information’s like its mission statement, vision statements and also product & services etc. Then there is discussed Human Resource planning procedure that How Nestle adopts those practices like Planning, Recruitment and Selection etc. Then there is also discussed about Training and Development Method that How Nestle trained their employees. Then there is discussed about Performance appraisal, How employees performance to be evaluated in Nestle. Then also discussed about what Nestle give rewards or compensation to their employees
  • 5. 5 | P a g e INTRODUCTION OF NESTLE Nestle is the leading FMCG company of Switzerland established by HenriNestle.Nestle is serving worldwide with its more than 500 factories in 86 co untriescomprising almost all continents. Nestlé’s product portfolio is more than 50 0products all over the world serving best to their customers.Henri Nestlé endowed his company with the symbol derived from his name. His family coat of arms, the nest with a mother bird protecting her young, became the Company's logo and a symbol of the Company's care and attitude to life-long nutrition. The Nestlé nest represents the nourishment, security and sense of family that are so essential to life. The first product made by Henri Nestlé, a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestlé's new formula saved the child's life, and soon, FarineLactée Henri Nestlé was being sold in much of Europe. Nestlé has been serving Pakistani consumers since 1988, when the
  • 6. 6 | P a g e parent company, the Switzerland-based Nestlé SA, first acquired a share in Milk pak Ltd. Nestlé is committed to the following Business Principles in all countries, taking into accountlocal legislation, cultural and religious practices:  Nestlé'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.  Nestlé does not favor short-term profit at the expense of successfullong- term business development.  Nestlé 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. NESTLE VISION The consumer's voice is the key to Nestlé Pakistan's vision and working. Whether you live in the remotest village or the city of Karachi, Nestle consumer services team stands ready to listen to your concerns and provide answers about our products and guidance on matters of health and wellness.  Nestlé’s global vision is to be the leading health, wellness, and Nutrition Company of the world. Nestle’ Pakistan subscribes fully to this global vision. In addition to that, Nestle Pakistan also envisions to:  Lead a dynamic motivated and professional workforce that is proud of its heritage and bullish about the future  Meet the nutritional needs of all age groups through a diversified product range that contains an innovative portfolio of branded food and beverages of the highest quality Maintain long-term growth and deliver shareholder value  Establishing responsible communication with the consumer which in turn can provide us a better look into what changes need to be made to our products NESTLE MISSION “Nestle is dedicated to providing the best foods to people throughout their day, thro ugho ut their lives , thro ugho ut the wo rld . W ith o ur uniq
  • 7. 7 | P a g e ue exp erienc e o f anticipating consumers' needs and creating solutions, Nestle contributes to your well-being and enhances your quality of life.” NESTLE GOALS AND OBJECTIVES Nestle business objective is to manufacture and market the Company's products in s uc h a way as to c reate value that c an b e s us tained o ver the lo ng term fo r shareholders, employees, consumers, and business partners. Nestle 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. Nestle continues to maintain its commitment to follow and respectall applicable local laws in each of its markets. At the entrance of this new millennium, Nestlé’s objective Is to consolidate and strengthen its leading position at the cutting edge of innovation in the food area in order to meet the needs and desires of customers around the world, for pleasure, convenience, health and well being. ORGANIZATIONAL STRUCTURE
  • 8. 8 | P a g e MARKETING MANAGER It is an employee who is responsible for planning and controlling its marketing activities and budgets .Marketing manager take cares the promotional strategies of the products. Manager tries to use innovative ideas for the improvement of productin market. FINANCE MANAGER T h e f ie ld finance c o vers the ec o no mic s o f the contingent claims. Financial economists study the valuation of these claims, the markets in which they are traded, and their use by individuals, corporations, and the society at large .Finance manager and marketing manager are related with each other to meet their marketing targets. It is important because alone marketing manager can not promote any marketing strategy without any budget.
  • 9. 9 | P a g e The long-term success ofthe Company depends on its capacity to attract, retain and develop employees able to ensure its growth on a continuing basis. This is a primary responsibility for all managers. The Nestlé policy is to hire staff with personal attitudes and professionalskills enabling them to develop a long-term relationship with the Company. Therefore the potential for professional development is an essential standard for recruitment. Each new member joining Nestlé is to becomea participant in developing a sustainable quality culture which implies a commitment to the organization, a sense for continuous improvement and leaves no place for complacency. Therefore, and in view of the importance of these Nestlé values, special attention will be paid to the matching between a candidate’s values and the Company culture. Hence, a clear communication of these principles and values from the very beginning of the recruitment process is required. Those who are not willing to adhere to the CorporateBusiness Principles and/or to the Nestlé Management and Leadership Principles cannot be part of the Company, as both these documents express the basic values and principles of the Organization. Moreover, for managerial positions specific leadership qualities and business acumen will be required. Nestlé wishes to maintain and develop its reputation as an employer of high repute. Contacts with universities, attendance at recruitment events and other contacts are to be undertaken so as to ensure good visibility of the Company vis-à-vis relevant recruitment sources. Particular care will be given to the treatment of each candidacy regardless of the outcome of the selection process. Even when promoting employees intensively from within the organization, it is the role of management and HR to keep an eye on valuable candidates from outside and to benchmark internal skills with external offers. Joining Nestlé7 the Nestlé Human Resources Policy whilst adequate recruitment tools may improve the hiring process, it is understood that the decision to hire a candidate remains in the hands of the responsible manager supported by the HR staff. Under no circumstances should the decision to hire or not to hire be left in the hands of an outside consultant or expert. As mentioned in the Nestlé Management and Leadership Principles, only relevant skills and experience and the adherence to the above principles will be considered in employing a person. No consideration will be given to a candidate’s origin, nationality, religion, race, gender or age. It is as important to hire the right person as it is to integrate newcomers in the organization so that their skills and behavior can merge smoothly with the company culture. Whereas from new employees it is expected to respectour company’s culture, it is accordingly required from all employees to show an open mind towards new ideas and proposals coming from outside. RECRUITMENT PROCESS:
  • 10. 10 | P a g e Recruiting is the process offinding & attracting capable applicants for employment. The process begins when new recruits are required & ends when their applications are submitted. The result is a poolof applicants from which new employees are selected. Nestle Pakistan wants  Fresh graduates as knowledge worker  Specialist experienced people for special purpose  People for Skilled and labor based events  Fresh Graduates As Knowledge Worker  Personnel planning and vacancy announcement  Nature of Application form  Recruiters qualification  Channels of recruitment  Recruitment- Constraints and challenges Recruitment Channel  Internal recruitment channel  External recruitment channel  Walks-ins and write-ins  Employee referrals  Advertising  Private placement agencies & Professional search firms  Educational institutions & Professional associates  International recruitment This should attract personnel of high caliber and of the required potential necessary to achieve present and future objectives. It is the Company’s Policy to: 1. Strive to achieve a balanced staff, reflecting the overall composition of the community in which it operates and apply non-discriminatory practices. 2. Stimulate equality of opportunity by the use of fair procedures and practices. 3. Ensure that Nestlé Employees are always above suspicion of favoritism and nepotism. Fairness and impartiality should be placed before anything else and merit should be the only basis of employment. The quality of our recruitment contributes to the quality of the Company since the new resources will be the drivers of the growth of Nestlé. The Company believes in flat and flexible structures. Flat structures provide a wider scopefor jobs, which facilitate employee motivation, enhance effective communication and learning opportunities and at the same time reduce hierarchical reporting layers, resulting in speed and efficiency in business operations.
  • 11. 11 | P a g e The Company’s policy with respectto recruitment is to hire individuals through a process that is professional and consistent; one that reflects the Company’s commitment to the principles of hiring the best possible candidates and ensuring employment equity. This is achieved through Competency Based Interviewing which is aligned to our Company’s Leadership Framework. The potential for professional development is an essential standard for recruitment. Special attention will be paid to the match between the candidates’ personal attitudes and the Company’s culture and values as well as their willingness to adhere to the Nestlé Corporate Group-wide Policies and Guidelines. All applicants to be considered for employment with the Company will be required to possesseducational and professional qualifications, experience and ability appropriate for the vacancy to be filled. The Company may, in addition, require applicants to undergo practical/aptitude tests and/or examinations and interviews. Our recruitment and selection decisions are fair and objective. IN NESTLE THEY SURELY SEE QUALIFICATIONBUT THEY PREFER A PERSON WITH REQUIRED SKILLS, APTITUDE, EXPERIENCE AND QUALIFICATION. POSITIVE POINTS OF RECRUITMENT Nestle have struggled to recruit the right talent needed to help our business grow and develop.  Nestle gives people an opportunity for life-long learning as at nestle. The factor of succession planning is prevailing.  They use the fight techniques for recruiting.  They recruit employees through professional and consistent way  In nestle they surely see qualification but they prefer a person with required skills, aptitude, experience and qualification.  Culture diversity exist through which Nestle got  Adoptable  New blood  Large number of employees. WEEKNESS  At the time of the recruitment the most suitable and appropriate employee is not available.
  • 12. 12 | P a g e  Recruitment continues in the full year.  Fresh graduates are less prefer for the job.  Online recruitment made some problems that so many people’s apply for that position on the job boards do not even meet the basic qualification for the position  When Nestle recruit new blood (employees) from the external sources it is comparably higher cost. SUGGESTIONS  Company recruit employees through job fairs.  Company should main focus on external recruitment that innovation and creativity is taken place.  When a collection of qualified candidates are available then requirement process is started  When company recruit employees then personal biasness of employees are avoided.  Company should introduce such policy so that peoples belong to different culture fit with organization. SELECTION: The selection process is about getting the bestcandidate for the job. Companies use a range of selection methods to suit their specific recruitment needs. At Nestlé, successfulapplications proceed to the online testing stages following a sifting procedure. This includes a situational strengths test – providing candidates with an insight into the culture and role they are applying for, a numerical test and a strengths-based telephone-video interview.
  • 13. 13 | P a g e Candidates that successfully complete these stages are invited to attend an assessment centre day.The assessment centre include:  a strengths-based interview  a written exercise to test a candidates skills by analyzing a business or technical issue and making recommendations for action presentation to test behaviors to certain business scenarios  A group discussion to show how a candidate interacts with other people.  The tasks designed for the assessmentcentre provide an overview of how a candidate may behave in a number of different scenarios. Assessors review individual candidate performance and their overall suitability for the role against key behavioral indicators. The behavioral indicators are highlighted below. Candidates that are successfulat this stage in the assessmentprocess are offered a position within the Nestlé Academy and invited to a formal induction programme. The induction programmed provides an overview of Nestlé and specific information about the function they are joining. It also provides individuals with a chance to network with other candidates from other schemes and functions. The programmed includes meeting the senior leadership team and allows individuals to learn important information about the company. This is a vital part of the process and ensures new recruits get the bestpossible start to their career. NESTLE SELECTION STRENGTH AND WEAKNESS STRENGTH • Nestle company use panel as well as mass interview which save the time of interviewers and help the interviewer to compare the candidate and to select the right personfor right job.
  • 14. 14 | P a g e • Nestle company use all types of questions in their interview according to the requirement of the job – Situational questions – Behavioral questions – job-related questions – Stress questions • In addition nestle company use competency and motivational questions • Nestle company uses STAR approachin competency based questions – S Situation: Why did you have this deadline? – T Task: What was your specific role in the task? – A Action: What did you do to ensure you met the deadline? – R Result: What was the end result? • Nestle company have experienced interviewers Uses all the types of interviews e.g. – selection interview – appraisal interview – exit interview. Select right person for the right job WEEKNESSES • The criteria of interview of nestle company is no doubtvery clear and useful but there are some weaknesses in their procedure • Sometime interviewer select the candidate on the basis of personal characteristics or personal relationship with the candidate like same cast, belong to same city • Interviewer sometimes selects that candidate which is not eligible for that job on the basis of strong reference. SUGGESTIONS  Company selection process should have main focus on behavior of selected candidate.  Company should focus on work sampling because applicant performs a small sampling of actual job activities.  Use psychometric assessment to pinpoint those personality factors that predict success. OBJECTIVE OF THE ORGANIZATION HRM: The protection of its employees is Nestle first priority because employees are the asset of this is company. To maintain the global corporate standard Nestle focuses on the need for safe working environments. Nestle has resolved to provide a safe working environment for all their employees, contractors and visitors and they are trying to implement Health and safety practices and programs at all working places objectives of the organization are We provide a safe work place to owe employees.
  • 15. 15 | P a g e 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 its management style and the corporation values are stated as follows: Their respect demands specific attitude that is worthy to be highlighted in the present policy.  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 .In Nestle people are dealt with respect and faith. There is not intolerance, harassment or discrimination in the management and this principle is applied and maintained at every stage and situation. Nestle management does not work in complexity and they are honest in behaving with customers and employees for excellent communication. The Nestle is improving continuously for their sincerity in work, dialogue and transparency.HRM Models: The sourceapproachto 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 if satisfaction is increased it will be the only way to go about in the management against various estimated methods possibly used in the hard model. The Objective of HR /Manpower planning: Manpower planning is done to balance and develop the organizations ability to meet it’s for taking any advice and decision Nestle depends on its employees. So Nestle has a ‘Democratic Leadership Style’  Manager of Nestle measures progress which can be achieved by training programs. The purposebehind this is to motivate employees by providing
  • 16. 16 | P a g e attractive but realistic career that helps them develop Formal training programs are arranged with purposeof improving pertinent skills and competencies. Besides, these programs perform individual development. As a result one cannot get reward by attending programs. Training and development is done on-the- job. Every manager has a duty to guide and train employees for their progress. 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. Goal by developing Strategies that will contribute its optimum contribution of human resource. The line manager and staff manager take the responsibility of Manpower planning. The line management gives the estimate of manpower requirements and staff manager works on selection and recruitment related to line manager to whom man power is vital. Organizations HR Planning and development: What the employee requires can be understood by an effective mechanism called HR planning.HR planning can manage the changes in the organization like growing decrease in requirements of employees. HR planning implements new recruitment and hold skilled and efficient staff by understanding easily the needs of future Training and development of Nestle:  Formal assessmentof 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. Objective Evaluation of the Organization: Human resource managers should identify human resource strategies like flexible dynamic employees are attracted, selected and then trained and motivated to be more productive than the competition. Human resource managers are not administrators but strategic partners. Inspire of being Human Company Nestle has most of the above mentioned qualities seen in the managers of present time. The role of HR at Nestle is changing for certain factors. The HR managers at Nestle focus on following qualities along 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 lea the act of mentor is done by each manager for his employees. Their skills over a long-term period within the area of economic reality and a changing environment. Ring and sharing knowledge and ideas freely with others. Performance Management: The
  • 17. 17 | P a g e function of performance management is to ensure the fulfillment of goals in an effective and efficient manner. Moreover, it watches  Performance of organization 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 corporatecohesion as well as to promote networking throughout the group. They develop and share bestpractices 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. TRAINING PROGRAMS AT NESTLÉ The willingness to learn is therefore an essential condition to be employed by Nestlé. First and foremost, training is done on-the-job. Guiding and coaching is part of the responsibility of each manager and is crucial to make each one progress in his/her position. 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 and not as a reward. LITERACY TRAINING Most of Nestlé’s people development programs assume a good basic education on the part of employees. However, in a number of countries, we have decided to offer employees the opportunity to upgrade their essential literacy skills. A number of Nestlé companies have therefore set up special programs for those who, for one
  • 18. 18 | P a g e 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. As the level of technology in Nestlé factories has steadily risen, the need for training has increased at all levels. Much of this is on-the-job training to develop the specific skills to operate more advanced equipment. But it’s not only new technical abilities that are required. It’s sometimes new working practices. For example, more flexibility and more independence among work teams are sometimes needed if equipment is to operate at maximum efficiency. “Sometimes we have debates in class and we are afraid to stand up. But our facilitators tell us to stand up becauseone day we might be in the parliament NESTLÉ APPRENTICESHIP PROGRAM Apprenticeship programs have been an essential part of Nestlé training where the young trainees spent three days a week at work and two at school. Positive results observed but some of these soonran into a problem. At the end of training, many students were hired away by other companies which provided no training of their own. Like them, for me the Nestlé Apprenticeship Program will not be the end of my training but it will provide me with the right base for further advancement. We should have more apprentices here as we are trained so well!” “It’s not only a matter of learning bakery; we also learn about microbiology, finance, budgeting, costs, sales, how to treat the customer, and so on. That is the reason I think that this is really something that is going to give meaning to my life. It will be very useful for everything.” LOCAL TRAINING Two-thirds of all Nestlé employees work in factories, most of which organize continuous training to meet their specific needs. In addition, a number of Nestlé operating companies run their own residential training centers. The result is that local training is the largest componentof Nestlé’s people development activities worldwide and a substantial majority of the company’s 240000 employees receive training every year. Ensuring appropriate and continuous training is an official part of every manager’s responsibilities and, in many cases;the manager is personally involved in the teaching. For this reason, part of the training structure in every
  • 19. 19 | P a g e company is focused on developing managers’ own coaching skills. Additional courses are held outside the factory when required, generally in connection with the operation of new technology. The variety of programs is very extensive. They start with continuation training for ex-apprentices who have the potential to become supervisors or section leaders, and continue through several levels of technical, electrical and maintenance engineering as well as IT management. 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. Here too, most courses are delivered in-house by Nestlé trainers but, as the level rises, collaboration with external institutes increases. “As part of the Young Managers’ Training Program I was sent to a different part of the country and began by selling small portions of our Magi bouillon cubes to the street stalls, the ‘sari sari’ stores, in my country. Even though most of my main key accounts are now supermarkets, this early exposure were an invaluable learning experience and will help me all my life.” “Through its education and training program, Nestlé manifests its belief that people are the most important asset. In my case, I was fortunate to participate in Nestlé’s Young Managers Program at the start of my Nestlé career, in 1967. This foundation has sustained me all these years up to my present position of CEO of one of the top 12 Nestlé companies in the world Virtually every national Nestlé company organizes management-training courses for new employees with High schoolor university qualifications. But their approaches vary considerably. 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. Nestlé 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. These involve periods of fieldwork, not only to develop a broad range of skills but also to introduce new employees to company organization and systems. The scopeoflocal training is expanding. The growing familiarity with information technology has enabled “distance learning” to become a valuable resource, and many Nestlé companies have appointed corporatetraining assistants in this area. It has the great advantage of allowing students to select courses that meet their individual needs and do the work at their own pace, at convenient times. In Singapore, to quote just one example, staff is given financial help to take
  • 20. 20 | P a g e evening courses in job-related subjects. Fees and expenses are reimbursed for successfully following courses leading to a trade certificate, a high schooldiploma, university entrance qualifications, and a bachelor’s degree. INTERNATIONAL TRAINING Nestlé’s success in growing local companies in each country has been highly influenced by the functioning of its international Training Centre, located near our company’s corporateheadquarters in Switzerland. Forover 30 years, the Rive- Reine International Training Centre has brought together managers from around the world to learn from senior Nestlé managers and from each other.Country managers decide who attends which course, although there is central screening for qualifications, and classes are carefully composedto include people with a range of geographic and functional backgrounds. Typically a class contains 15–20 nationalities. The Centre delivers some 70 courses, attended by about 1700 managers each year from over 80 countries. All course leaders are Nestlé 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 Nestlé 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 Nestlé values and business approaches. These courses focus on internal activities. Executive courses:these classes often contain people who have attended a management coursefive to ten years earlier. The focus is on developing the ability to represent Nestlé externally and to work with outsiders. It emphasizes industry analysis, PROFESSIONAL DEVELOPMENT Learning is part of the Company culture. Each employee, at all levels, is conscious of the need to upgrade continuously her/his knowledge and skills. The willingness to learn is therefore a non- negotiable condition to be employed by Nestle. First and foremost, training is done on-the-job. Guiding and coaching is part of the responsibility of each manager and it is crucial to make each one progress in
  • 21. 21 | P a g e her/his position. When formal training programs are organized they should be purposeoriented and designed to improve relevant skills and competencies. Therefore they are proposed in the framework of individual development programs. Industrial relations Nestle upholds the freedom of association of its employees and the effective recognition of the right to collective bargaining. Nestle wishes, also through its relationship with unions and other representative associations, to sustain the long-term development of the Company, both to the benefit of the employees and of the Company, by maintaining a level of competitiveness adapted to its economic environment. Industrial relations are a clear responsibility of local management and will be handled at the appropriate level: first at site level (factories, warehouse) subsequently at regional or national level, according to local law and practices. Relations with unions will be established under strict observation of national law, local practices as they’ll as those international recommendations to which Nestle has adhered to on a voluntary basis as stated in the Corporate Business Principles. Contacts with union delegates should create a further opportunity to provide information allowing their members and other representative associations to acquire a full understanding of the business activities and the goals of Nestle. In accordancewith local legislation, Nestle will refrain from any action restricting the employee’s right to be or not to be affiliated to a union. Nestle will not engage with any union or other representative association in activities or discussions other than those relating to employment and working conditions as they’ll as issues relating to the workplace. Whenever negotiations take place, they will be duly prepared with the full involvement of line management and take into account both the Company’s and the employees’ legitimate interest. In dealings with unions, it will be ensured that management prerogatives be properly maintained. The fact that Nestle is more people and productthan systems oriented is reflected in the way HR is functioning and is organized. The HR manager should not only have the skills and competencies from a purely professional standpoint but also have the charisma and the credibility to be a trustworthy partner to her/his colleagues. Whereas the HR function should indeed provide flawless administrative support, its main role is to add value to the business and to play a proactive role in every situation where HR action is required. Specific HR KPI’s are useful in assessing the performance of an HR unit. However, it should be kept in mind that the HR contribution aims in the first place at optimizing the overall company performance through improving people
  • 22. 22 | P a g e performance. With the evidence that the human capital is of increasing importance, HR plays indeed a pivotal role in the conception and implementation of the people strategies that impact financial results and the organization’s overall reputation and effectiveness. They have a unique set of values and guiding principles that have been built up over time. To try to summarize them in a sentence or two would make them meaningless. To engender the unique spirit that permeates the entire Nestle Group: They believe in people, rather than systems. They are committed to creating value for our shareholders, but they will not favor short-term profits at the expense of long-term business development. They are as decentralized as our basic policy and strategy decisions will allow. They are committed to continuous improvement rather than dramatic, one-off changes Above all, they are pragmatic and not dogmatic If these are values that strike a chord with you, spare a few minutes to read through the questions below. To keep us ahead in the ever-changing food industry, they are constantly driving forward the boundaries of our industry. Our people must be: Creative Excited by the future Flexible they are committed to the continual training and personaldevelopment of our people. A world of opportunities quite literally awaits those who are prepared to: Learn something new every day Adapt to new environments Develop multi-lingual skills you could have what it takes to be a Nestle manager. The development of our business depends on finding people who are ambitious for themselves and for our company, who can: Communicate and innovate Motivate and inspire Delegate without abdicating responsibility Nestle has been an international company since its very beginning. Food is intrinsically linked with local eating and social habits, and Nestle endeavors to integrate itself as much as possibleinto the cultures and traditions of the countries where it operates. To deliver products that meet the needs of individual consumers, they need people who: Respectother cultures Embrace diversity never discriminate on any basis Whether they are creating a productto fulfill a nutritional need, or a chocolate bar that's purely for pleasure, Nestle is only satisfied with the best. They expect that same commitment to quality from our people. So get in touch with us if you are: Enthusiastic Dedicated Ready to be part of our success Nestle is not a faceless company selling to faceless consumers. It is a human company providing response to individual human needs the world over. Nestle CorporateBusiness Principles:
  • 23. 23 | P a g e Nestle is committed to the following Business Principles in all countries, taking into accountlocal legislation, cultural and religious practices: – Nestlé’s business objective, and that of management and employees at all levels 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, business partners and the large number of national economies in which Nestle operates. – Nestle does not favor short-term profit at the expense of successfullong-term business development, but recognizes the need to generate a healthy profit each year in order to maintain the supportof our shareholders and the financial markets band to finance investments; Nestle recognizes that its consumers have a sincere and legitimate interesting 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. Protection of the Environment Since its early days Nestle has been committed to environmentally sound business practices throughout the world and continues to make substantial environmental investments. In this way Nestle contributes to sustainable development by meeting the needs of the present without compromising the ability of future generations to meet their own needs. The Nestle Policy on the Environment underlines this commitment. Nestle also adheres to the International Chamber of Commerce (ICC) Business Charter for Sustainable Development. This Charter requires the establishment of policies, programs and practices for conducting operations in an environmentally sound manner. Nestle fully supports the United Nations Global Compact’s three guiding principles on environment. .NESTLE TRAINING AND DEVELOPMENT STRENGTH AND WEEKNESS: It can be conclude that training and development programs are essential for all types of organizations and for all employees, as it enhance the skills and knowledge of the employees. STRENGTHS  They hired foreign instructor for the training of the employees.
  • 24. 24 | P a g e  Literacy training provides a chance to employees for enhance their educational skills so that their productivity increase.  The employees after getting trained perform well and become able to maximize their optional.  They provide international training through which greater output may generated through employees.  They enhanced the development.  International training and online training motivate the employees to work at high level. WEEKNESS  The factor of favoritism effect the performance of certain employees.  Technology to support, enhance, and expand employee development is lacking RECOMANDATIONS  They should develop such system in their HR department that no ethical issue can be raised.  The employee should participate in all the activities of the department.  They should choose plan in such a way that when there is a need of recruitment the proper candidate must be available.  The factor of favoritism must be eliminated from the department of HR.  They should hold meetings of the HR employees more frequently for eliminating any misunderstanding.  Centralized campus technology/systems be created or enhanced to support employee development. CONCLUSION Human Resource Management is a key function in an organization. Having a flexible workforce with the right skills and qualifications means that a business is better able to respond and adapt to changes in the market. Taking an innovative approach to recruitment and selection ensures that a business recruits and selects the right candidates who can grow and develop with the business.
  • 25. 25 | P a g e To date, Nestlé’s strengths-based recruitment approachhas benefitted both the company and the candidates applying. It gives young people with limited work experience the opportunity to demonstrate their potential and suitability for a position. By mirroring the company’s commitment to creating opportunities for young people across Europe, through its European Youth Employment Initiative, for example, Nestlé is rising to the challenges within its external environment whilst preparing its workforce for continued growth