Brief performance management in Nestle Pakistan

1. Nestle Group Members Kamran Aqeel (2012-mba-27) Nida Munir (2012-mba-29) Maida Afzal (2012-mba-31) Samiya Ishtiaq (2012-mba-33) Submitted to: Sir Nabeel Arif Managing People for High Performance

2. 1
This Project of “Managing People for high performance” is completed with a great effort and
true spirit by the following persons,
Kamran Aqeel
Samia Ishtiaq
Nida Munir
Maida Afzal
All these members work hard for collecting information and for completing the report, they
work as a team and true team spirit was among them. the main purpose of this project was to
understand how a company face different kind of challenges relates to their high performance
and in which areas company face different kind of problems due to lack of competence.
This project is completed in two stages
 Collection of information
 Making Report
All the credits go to ALLAH THE All MIGHTY AND THE MOST BENEFICIAL for
giving us such power and wisdom to complete the report on time. May Allah’s blessings
remain on us forever (ameen) and we are very thankful to Mr Tariq and Mr M.Amjad
(Employee Services & solution Manger Nestle), Ms Nadia Umer for helping us by giving
information about the Nestle Pakistan and for guiding us for our project at the last we would
like to thank Sir Nabeel Arif for taking us in confidence and giving us an opportunity to
make the report and to learn that what are the problems companies face now a days in
Managing people for high performance.

3. 2
Table of Content
Executive Summary…………………………………………………………………………………4
History of Nestle……………………………………………………………………………………..5
Henri Nestlé, the founder of Nestlé……………………………………………………………….5
Introduction of Nestle……………………………………………………………………………….6
Nestlé’s Vision Statement……………………………………………………………..……………6
Nestlé’s Mission Statement………………………………………………………………………...6
Nestlé’s Slogan……………………………………………………………………………......6
Nestle Core values…………………………………………………………………………....6
Our Goals………………………………………………………………………………….…7
Global Structure……………………………………………………………………………..7
Some Nestle Brands…………………………………………………………………………………8
Nestle Pakistan…………………………………………………………………………………….…8
Human Resource Management of Nestle Pakistan…………………………………………….9
Nestle Continuous Excellence Department……………………………………………………...9
Ms. Nadia Umer…………………………………………………………………………………….10
Methodology use for collection of data…………………………………………………………11
Problem Based learning…………………………………………………………………………...11
Company Visit………………………………………………………………………………………...11
Questionnaire (employees) ………………………………………………………………………...…11
Meet with leaving employee…………………………………………………………………………..11
Findings……………………………………………………………………………………………...12
First Dimension……………………………………………………………………………………..12
Elements of high performance work system………………………………………………………….12
Organizational structure……………………………………………………………………………….12
Human Resource Structure…………………………………………………………………...13
Shared Services………………………………………………………………………13
Centre of Expertise…………………………………………………………………..13
Business Partners…………………………………………………………………….13
Organization Chart …………………………………………………………………………...14
Required employees by overall Nestle……………………………………………………….15
Required employees by overall NCE…………………………………………………………15
Problem in Organizational structure………………………………………………………....16
Location………………………………………………………………………………………16
Reward system………………………………………………………………………………………...16
Reward linkage with Performance at Nestle…………………………………………………16
Employee wellness programs…………………………………………………………...……17
Perks at Work program……………………………………………………………………….17
Paid Time off………………………………………………………………………...17
Holidays……………………………………………………………………………...17
Parental Leave………………………………………………………………………..17
Health Works………………………………………………………………………...17
Online Services & Discounts………………………………………………………...17
Employee Assistance Program (EAP) ……………………………………………………….17
Counseling, Education Resource & Referral Services………………………………………17
Problems in Reward System………………………………………………………………….17
People………………………………………………………………………………………………….18
Selection & recruitment in Nestle Pakistan……………………………………………..……18
Recruitment…………………………………………………………………………..19

4. 3
Selection……………………………………………………………………………...19
Training Programs at Nestlé………………………………………….………………………19
Literacy Training…………………………………………………………………….20
Nestlé Apprenticeship Program……………………………………………………..20
Local Training………………………………………………………………………..20
International Training………………………………………………………………..20
Development program in Nestle……………………………………………………………...20
Information system……………………………………………………………………………………21
Globe Program Objectives……………………………………………………………………21
Email………………………………………………………………………………………….22
Telephone……………………………………………………………………………………..22
ERP at Nestle…………………………………………………………………………………22
Problems in Information system of Nestle…………………………………………………...22
Task Design……………………………………………………………………………………………23
Job description (JDs…………………………………………………………………………..23
Example………………………………………………………………………………………24
Justice and equity……………………………………………………………………………………...24
Second Dimension………………………………………………………………………………….25
Higher productivity and efficiency……………………………………………………………………25
Contribution to the Lower Cost……………………………………………………………………….27
Higher Product Quality …………………………………………………………………………….…27
Customer Satisfaction…………………………………………………………………………………28
Low Employee Turnover……………………………………………………………………………...29
Learning Organization………………………………………………………………………………...29
SWOT of Nestle…………………………………………………………………………………….30
HRM practices organization is doing to achieve high performance……………………….31
Shared Services ………………………………………………………………………………31
Centre of Expertise…………………………………………………………………………...32
Training and development of Nestle…………………………………………………32
Workforce Planning………………………………………………………………….32
Man Power Planning…………………………………………………………………32
Performance related pay (PRP) ……………………………………………………...32
Objective Evaluation of the Organization…………………………………………...32
Role as a Business Partner …………………………………………………………………...33
How well company has managed its performance management…………………………...34
Competency profile mapping…………………………………………………………………34
Critical Analysis of HR PERFORMANCE…………………………………………………..34
Nestle Continues Excellence (NCE) …………………………………………………………35
Conclusion…………………………………………………………………………………………...35
References…………………………………………………………………………………………...35
Questionnaire……………………………………………………………………………………….36

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Performance Management is an important part of any organization which increases the
performance of the employees in our report we discuss about the performance management
of the Nestle Pakistan and how human resource continues excellence department contribute
to increase the performance of the employees. We discuss about six elements of work system,
organizational structure, information system, task design, reward system, people and justice
and equity that how these elements increase the performance of the employees and what are
the problems in these elements, than we discuss about the outcomes of high performance
work system that what are the positive and negative outcomes in the work system, than what
HRM practices organization is doing to achieve high performance and how ell company has
managed performance management, our focus is on HR department of Nestle pk in this
report.

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History of Nestle
The key factor which drove the early history of the enterprise that would become The Nestlé
Company was Henri Nestlé's search for a healthy, economical alternative to breastfeeding for
mothers who could not feed their infants at the breast. Nestlé is a Swiss company, founded in
1866 by Henri Nestlé invests Around CHF 1.5 billion in Research and Development every
year Nestlé markets its products in 130 countries across the world.
Henri Nestlé also showed early understanding of the power of branding. He had adopted his
own coat of arms as a trademark; in Swiss German, Nestlé means 'little nest'. One of his
agents suggested that the nest could be exchanged for the white cross of the Swiss flag. His
response was firm: "I regret that I cannot allow you to change my nest for a Swiss cross .... I
cannot have a different trademark in every country; anyone can make use of a cross, but no-one
else may use my coat of arms."
The Company's strategy will continue to be guided by several fundamental principles.
Nestlé's existing products will grow through innovation and renovation while maintaining a
balance in geographic activities and product lines. Long-term potential will never be
sacrificed for short-term performance. The Company's priority will be to bring the best and
most relevant products to people, wherever they are, whatever their needs, throughout their
lives.
Henri Nestlé, the founder of Nestlé
Henri Nestlé, the founder of Nestlé, was a life-saving chemist but also an innovative
marketer. He used scientific knowledge to develop products that met consumer needs. He
used his name to brand his products in a distinctive way. And he set up systems to distribute
his products quickly and effectively.

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Introduction of Nestle
Nestle is world’s largest corporation of food and beverage. Although less than 2% of our sales
are generated in Switzerland, Nestlé is a Swiss company. They are the leader in nutrition,
health and wellness. This company has recognised brand name and very significant influence
on customers, business and government bodies as well. Their products ranges from drinks
like tea, coffee, water, ice-cream to baby food, pet care, pharmaceutical and confectionary
Nestlé markets its products in 130 countries across the world Nestlé manufactures around
10,000 different products and employs some 250,000 people Nestlé sells over a billion
products every day Nestlé is more than just the largest food and beverage company in the
world. Increasingly, Nestlé is becoming the world’s leader in nutrition, health and wellness.
From the start, nutrition has been at the core of our business. However, today we place far
greater emphasis on it – and on health and wellness. Our Corporate Wellness Unit and the
individual business units are driving forces in bringing Good Food, Good Life to all our
consumers.
Nestlé’s Vision Statement
“Nestlé’s aim is to meet the various needs of the consumer everyday by marketing and
selling foods of a consistently high quality.”
Nestlé’s Mission Statement
“We strive to bring consumers foods that are safe, of high quality and provide optimal
nutrient to meet physiological need. Nestle helps provide selections for all individual taste
and lifestyle preferences.”
Nestlé’s Slogan
“Good food good life”
Nestle Core values
1. People
2. Quality
3. Brands
4. Consumer
5. Customer
6. Performance

8. 7
Our Goals
To be the reference for
1. Nutrition, Health and Wellness
2. Sustainable Financial Performance
3. Trust by all stakeholders
Global Structure
At the international level, the world is divided into four parts, each reporting to the world
headquarters in Switzerland. Nestlé employs bottom-up as well as top-down reporting. For
yearly budgeting, each territory reports next year’s forecasted sales to its Area Manager who
after gathering all these reports sends a summary for his area to the Regional Manager.
Regional and Zonal Manager do the same process until National Sales Manager has the
forecasted sales for the entire country. Target sales are then reported down to each zone, from
where it is sent to each region, and the process continues until each territory has its target
sales

9. 8
Some Nestle Brands

10. 9
Nestle Pakistan
Nestlé Pakistan today, is a leading Food & Beverage Company in Pakistan with a key focus
on nutrition, health and wellness reaching the remotest of locations throughout the country to
serve consumers and continue to enhance the quality of life of people throughout its value
chain. Nestlé Pakistan Ltd is a subsidiary of Nestlé S.A. – a company of Swiss origin
headquartered in Vevey, Switzerland. It is a food processing company, registered on the
Karachi and Lahore stock exchanges and operating in Pakistan since 1988 under the joint
venture with Milk Pak Ltd and took over the management in 1992. For last many years in a
row, the company has won a place among the top 25 companies of the Karachi Stock
Exchange.
Nestlé Pakistan operates in many ways but people, products and brands are the basis of the
Company’s image. It respects the cultures of the regions it operates in and recognizes the
need for quality of life of their people.

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Nestlé Pakistan operates in many ways but people, products and brands are the basis of the
Company’s image. It respects the cultures of the regions it operates in and recognizes the
need for quality of life of their people.
Human Resource Management of Nestle
Pakistan
In 2012, Human Resource continued its journey from last year, to cultivate a culture of talent
diversity, high performance and ensuring compliance.
Initiatives taken were focused towards enhancing performance principles, leadership
development, and career growth, attracting right talent and providing avenues for learning.
Additionally, Human Resource team has been thoroughly involved in the progress of the
Nestlé Continuous Excellence journey, by providing its support and guidance in maintaining
employee engagement, people development processes and appropriate goal alignment.
With a mind-set towards achieving sustainable excellence, a comprehensive learning
programmer surrounding concepts of coaching and feedback was rolled-out to targeted
groups of existing and upcoming leadership. With blended learning approach and meticulous
evaluation technique, the programmer was well received and laid foundations for a
community dedicated to drive the desired mind-set to all levels within the organization.
With focus on bringing excellence in our service delivery, Human Resource continued to
implement the findings of the survey results regarding level of satisfaction on our processes
and services. The objective remains to fortify the strengths identified and work on gaps
highlighted in our journey.
For Human Resource, 2012 was about continuity, pursuing its drive for strengthening a high
performance culture and developing the people by facilitating them with a progressive and
healthy work environment.
Nestle Continuous Excellence Department
During the year 2012 we have continued to hold the responsibility for the environment,
personal safety, and the safety of others. In view of the growing demands of the market and
changing consumer needs, an expansion in the current manufacturing foot print is under
execution.
On one hand Nestlé Pakistan is investing to take care of health and wellness of the consumer
while on the other hand the Company is keen to look after the needs of its employees, hence
addition of new social block in the factory.

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Ms Nadia Umer:
Nadia joined Nestle Pakistan in 2010 and since then has been very instrumental in the
development of the juices portfolio by deepening the consumer base to fully capture the in-market
opportunity. Some of her notable achievements are SKU Optimization leading to
increased sales velocity with reduced operational complexity and building super premium
range. She has also been a key team member in the LEAN pilot in Juices and contributed to
the roll out of the Operational Master Plan and Consumer Customer Value Proposition
(CCVP) for the business
Methodology use for collection of data
Problem Based learning:
Our learning is Problem based learning. Problem-based learning (PBL) is an approach that
challenges students to learn through engagement in a real problem. It is a format that
simultaneously develops both problem solving strategies and disciplinary knowledge bases
and skills by placing students in the active role of problem-solvers confronted with an ill-

13. 12
structured situation that simulates the kind of problems they are likely to face as future
managers in complex organizations.
Now the purpose of getting information we use three kinds of Methods which are following
there:
Methods for collecting information:
In our report we use three kind of methodology for collecting information relating to our
project.
 Company Visit
 Questionnaire (employees)
 Meet with leaving employee
Company Visit:
First of all we visit Nestle Company which is situated in upper Mall, and meet HR manger of
Nestle, he provides us different information regarding HR activities of the Nestle company
and also provide us ideas that how can we cover all the dimension of our project.
Questionnaire (employees):
For more clarification and for getting more information we also get ideas of employees of
Nestle through using Questionnaire. Which provide us hidden problems related to the
elements which affect the performance of those employees?
Meet with leaving employee:
Further we meet Employees which recently leave the Nestle Company and ask them what the
reasons are and what are the problems due to which you decided to leave the Nestle
Company, we also asked him that what are the problems he face during performing his job in
Nestle with respect to the performance management.
Internet:
Searching from internet

14. 13
Findings
After the collection of data regarding the performance management of the Nestle Pakistan we find
some information from which we can understand about the performance management of Nestle.
First Dimension
In first Dimension we discuss about the elements of the high performance work system which
are following their:
Elements of high performance work
system
1. Organizational structure
2. Information System
3. Task Design
4. Reward system
5. People(selection, training and development)
6. Justice and equity
Organizational structure
Nestle Organizational structure is Decentralized its mean that the Middle level management
have also decision making authority. In all countries parent group is to Swizz Land because
Nestle is a Swizz Land Company. Nestlé Pakistan follows a flat, matrix organizational structure the departments are divided
function-wise and product-wise.
All the products use different functional departments and all the functional departments have
specific product department within them. The span of control is wide as each department
head has much direct and indirect reporting relation with his subordinates.
The Managing Director of Nestlé Pakistan reports directly to the Head Office in
Switzerland, and gets guidance and objectives from them.
Directors are different functional departments:
 Business Executive Managers
 Head of Human Resource Department
 Head of Sales Department
 Head of Supply Chain

15. 14
(Nestle Pakistan Organizational Structure)
Human Resource Structure
The Human Resource Department is subdivided into three branches:
 Shared Services
 Centre of Expertise
 Business Partners
Shared Services
Shared Services are responsible for data and record collections of all the employees
of Nestlé Pakistan. They handle the payrolls, division of provident funds, medicalallowances,
travel allowances, and all other administration of the employee funds.
Centre of Expertise
Centre of expertise is responsible for recruitment, remuneration and organization
development through Nestle Training programs, both local and international.
Head Of Swiz Lamd
Manging Director
Head of Legal
Department
Head of Supply cjain
Head of technical
department
head of Human
Resource
Share Services
Centre of Expertisse
Head of finace Business Patners
Head of Sales
Business Excellence
Manger
Head of food
services

16. 15
Business Partners
The Business Partners form the link between different human resource activities of
theorganization, and the functional departments they are working with. The HumanResource
Manager–Commercial is a Business Partner for Sales and reports to the Head
of Sales Department. He is supposed to form a link between the Human ResourceDepartment
and the Sales Department, making sure all decisions made by the Sales Department are in line
with the Company’s goals and policies
Organization Chart:
Human
Resource
department
Share Services
Centre of
Expertise
Business
Patners
Board of Directors
Mangers
Sales people
Customers

17. 16
Required employees by overall Nestle:
If we talk about overall nestle than nestle needs top level employees as well as average or
lower level employees, high level employees means those can perform high and average
means those can perform average, it can show in this kind of bell curve:
High performance employees Average Performance employees Lower level
employees
Required employees by overall NCE:
If we talk about continuous excellence department which is managed by Ms Nadia Omer, in
this department we need high level employees those can perform high.it can show like this,
High performance employees

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Problem in Organizational structure
Although Nestle organizational structure is very effective but there are some positive things
and some negative things in every structure.
So Nestle organizational structure is decentralized, there are a positive thing that they gave all
decision making authority to the lower level of management and they are responsible for the
effectiveness, efficiency and the failure of their specific field but on the other hand there are
disadvantage of this that top level management is more conscious about the organization as
compare to the lower level management and Span of control is so wide which is also a
problem.
Location:
NESTLE PAKISTAN LTD 308, Upper Mall, Lahore PAKISTAN HEAD OFFICES OF
NESTLE LTD
Reward system
In Nestle there is proper reward system for employees. Nestlé favours competitive,
stimulating and fair remuneration structures offering an overall competitive and attractive
compensation package. Remuneration includes salary, any variable part of remuneration as
well as social, pension and other benefits. Employees are paid for their skills as they deserve.
Attractive salary is paid to them as they deserve. Much kind of facilities are also provided to
the employees who motivate the employees.
Reward linkage with Performance at Nestle:
=Effort Performance
=Performance-reward linkage
=Attractiveness
Individual
Efforts
Individual
Performance
Organizational
Reward
Individual
Goals
A B C
A
B
C

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Employee wellness programs
Worksite wellness programs have gotten a boost in recent months because of their possible
role in promoting employee wellness through such benefits as counselling and onsite health
centres
Perks at Work Programme
Nestle help its team keep their work and home life in balance through what they call 'Perks at
Work. The best associates are healthy and happy, and lead full lives.
 Paid Time Off
Associates earn paid time off each month to use for sick leave, family illness, vacation, or
personal reasons.
 Holidays
Nestlé Purina provides regular paid holidays each year.
 Parental Leave
Leave is available for birth and adoptive fathers and mothers who are salaried or non-union
hourly associates.
 Health Works
The Health Works program helps Nestle associates and their families stay fit and healthy.
Nestle program also provides associates with opportunities to participate in preventative
programs that help save money on heath benefit costs while ensuring Nestlé’s associates
remain healthy.
 Online Services & Discounts
Nestlé Purina associates can receive discounts for theatre and entertainment, travel and
lodging, electronics, gifts, financial services, local services and more.
 Employee Assistance Program (EAP)
The EAP provides easy, free, confidential access to professional counsellors trained to help
with a variety of personal or family problems.
 Counselling, Education Resource & Referral Services
This service offers information and referrals on adoption resources, prenatal care, child care
and elder care services, parenting, educational opportunities and a variety of personal /
convenience services.
Problems in Reward System

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But there are also an element of scheme system in nestle reward system in which reward are
provided to the employees through the schemes. In which deserving employees can’t receive
these kind of reward but those employees that does not deserve these kind of rewards, get
these reward, so those employees those work hard , and deserve these kind of rewards
demotivate with these kind of things.
Moreover some training programs , foreign tours, and many more these kind of facilities are
also provided to just some employees other employees working on the same post does not
receive these facilities at the same time so those employees who get these facilities motivated
but those employees those does not receive these kind of facilities demotivate because of
these things.
According to the Nestle Employee services & solution manger Muhammad Amjad, there are
too kind of factors in organization which can affect the performance and behaviour of the
employees, Intrinsic factors and extrinsic factors.
By intrinsic factors their employees motivated and with the extrinsic factors their employees
demotivate.
People
Selection & recruitment in Nestle Pakistan
Recruitment and selection forms a core part of the central activities underlying human
resource management: namely, the acquisition, development and reward of workers. It
frequently forms an important part of the work of human resource managers – or designated
specialists within work organisations. However, and importantly, recruitment and selection
decisions are often for good reason taken by non-specialists, by the line managers. There is,
therefore, an important sense in which it is the responsibility of all managers, and where
Extrinsic Factors
 Supervision
 Company Policy
 Working
Conditions
 Relationship with
peers
 Security
Intrinsic factors
 Achievement
 Recognition
 Responsibility
 Advancement
 Growth

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human resource departments exist, it may be that HR managers play more of a supporting
advisory role to those people who will supervise or in other ways work with the new
employee.
Recruitment:
Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers,
and with appropriate qualification, and encouraging them to apply for jobs with an
organization.
Selection:
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
Recuirted candidate
Preliminary Interview
Review of application
& Resumes
Selection Test
Employement
Interviews
Reference &
Background checks
Selection Decision
Medical Examination
New Employee

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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. 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.
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 soon ran into a problem. At the end of training, many students were hired away
by other companies which provided no training of their own.
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 centres. Virtually every national Nestlé company organizes
management-training courses for new employees with High school or university
qualifications. But their approaches vary considerably
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 corporate
headquarters in Switzerland.
Development Programme in Nestle:
Learning is part of the Nestlé’s 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 Nestlé.
Each employee is in charge of her/his own professional development. However, the Company
actions to offer the opportunity to progress for those having the determination and the
potential to develop their capabilities

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Information system
Information system that Nestle use is Globe 1
 Nestle use Globe to unlock Nestle potential by:
 Leveraging our size as a strength in a rapidly changing enjoinment
 Uniting and aligning us on the inside to be more globally competitive on the outside
 Enabling nestle to manage complexity with operational efficiency.
Globe Programme Objectives
 Implementation of harmonized Nestle Business Excellence Best Practices
 Implementation of data Standards and Data Management “Managing Data a
Corporate Asset”
 Implementation of standardized information system and Technology

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Globe allow Nestle to
 Speed to share and implement new best practices
 Provide better information for better decision
 Facilitate Organizational change
 Allow for focus on generating demand activities
Email:
Email is also used to communicate with employees and external parties
Telephone:
Telephones are also used to communicate with lower staff or other peoples
ERP at Nestle:
 In 2000 Nestle SA signed a $200 million contract with SAP to roll out an ERP
system.
 Nestle SA also committed to an additional $80 million to be spent on consulting,
maintenance, and upgrades.
 Keeps track of customer orders
 reduce overstocking
 Enables group buying of materials
 data sharing among subsidiaries
Problems in Information system of Nestle:
 2,30,000 employees and 500 facilities in 80 countries
 to support the decentralized strategy it has 80 different information technology units
that’s runs nearly 900 IBM as/400 mid-range computers ,15 main frames , and 200
Unix system
 despite its size the company has had no corporate computer centre
 Local difference created inefficiencies and extra costs that could prevent the company
from competing effectively in electronic commerce.
 The lack of standard business processes prevented it from obtaining lower prices for
its raw material.
 at first project decide not to use sap’s supply chain software because that module was
brand new and appeared to be risky
 The staff that would be directly affected by the changes was not included in the key
stake holder team.
 The lower level worker did not understand how to use the new system and also did
not understand the changes; nobody was prepared for the new ways of doing things.

25. 24
 Turnover among the employees who were to use the Manugistics software to forecast
product demand reached 77 parents. Those who remained found it easier to use their
familiar spread sheets.
 The simultaneous installation of the Y2K changes also caused some trouble.
Task Design
Task Design determines how the details of the organization’s necessary activities will be
grouped, whether into jobs or team responsibilities.
Job description (JDs):
Nestle provide job description to its employees at the time of selection. Job description is a
document that provides information regarding the tasks, duties and responsibilities of job.
Job Analysis for Team
Legal consideration
Employee & labour relation
Safty & health
compensation & benefits
Performane appriasal
Training &development
Selection
Recruitment
Tasks Responsibilities Human Resource Planing Duties
Job specification
Job Description
Job Analysis
Knowledge Skills Abilities

26. 25
Example:
An employees is hired in nestle first of all he hired according to his job specification than he informed
about his tasks, responsibilities, and duties which he have to complete in his j in simple words
management governs how the details of the organization’s necessary activities will be grouped.
Justice and equity:
There are many aspects to justice and the creation of a just world. These include social and
economic factors as well as the principles of equity and equal rights.
“Social justice” has been defined in a variety of ways. Amongst them, they incorporate
concepts of basic rights, the realisation of human potential, social benefit, a healthy planet, an
equitable distribution of resources, equal opportunities and obligations, security, and freedom
from discrimination. Economic justice really forms a part of social justice. It seeks the
equitable distribution of world’s natural and intellectual wealth so that everyone is able to
gain a fair share.
As Nestle is a large organization so nestle follow justice and equity in every situation, but
according to some questionnaires and leaving employee, there is also an element of
favouritism.
 Mangers are selected in the presence of the directors so the deserving candidates are
selected always.
 Average level of employees is also selected according to the job specification and
according to their qualification and skills, but there also an element of Intercede in
some situations which affect the justice and equity.

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Second Dimension
Outcome of high performance work system
1. Higher productivity and efficiency:
2. Contribution to the Lower Cost:
3. Higher Product Quality
4. Great Customer Satisfaction
5. Low Employee Turnover
6. Learning Organization
Higher productivity and efficiency:
Positive outcome:
 There are a separate department NCE (Nestle continues Excellence) managed by Ms
Nadia Umer, aim of this department is to enhance the performance of the employees
more and more well. due to the efforts of this department productivity and efficiency
of the employees increases
 Due to efficient and fully managed organizational structure nestle productivity and
efficiency of the employees increase. In decentralization managers feels good that
they are responsible for efficiency.
 Moreover if we talk about the location of the head office of the Nestle Lahore
Pakistan , about which we are discussed, is situated at the upper mall, so that
employees can easily access, so their productivity increase as wall as they become
efficient for their work because location of office have an impact on the performance
of the employees.
 If we take a look at the reward system of the employees in Nestle Pakistan, so the
reward system of nestle is also properly managed, every employee is paid for their
skills and for their work, moreover financial motivation for good work also provided,
so the efficiency and productivity of the employees automatically enhance because
they know that if they are performing very well they’ll be rewarded, so it affects the
high performance of the employees of the Nestle.
 Information system of the Nestle is well managed they use Globe for their
information system. So any employee if face any kind of problem in performing their
high performance they can take any help from this information system so productivity
and efficiency of the employees automatically increase.
 Employees are provided job description so that they know what they have to do,
management make them clear what they do so that they can perform their work very
well.

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 People in the Nestle are selected according to the job specification so they are well
trained that’s why they perform efficiently moreover there are also some developing
programs for employees so they can improve their skills for better performance.
 They are directly proportional to each other as we discussed above that justice means
providing equal rights to every person in an organization and equity means to an
employee according to his performance so if justice and equity both are providing in
an organization there will be no discrimination at all in the organization and people
will love to work there with full concentration which will result in the high
productivity and high efficiency of the workers.
Negative outcomes:
 Organizational structure is decentralized, top level management is more conscious
about the organization as compare to the lower level management. so in Nestle
Decision making authority is to the lower level management so as compare to the top
management lower level management can’t handle the issues more efficiently, and
span of control is so wide so this thing affects the productivity and efficiency of the
employees.
 Information system is very effective but for the lower level employees it is difficult to
handle this kind of information system so it affects the productivity of the lower level
employees.
 People are selected according to the job specification but we observe the element of
Intercede in some cases so employees are not employed according to the job
specification in these cases so the employees don’t know how to perform according to
the standard of quality work so in these cases productivity and efficiency effects.
 While Nestle Pakistan is providing so many facilities and so many incentive to their
employees which enhance the productivity and effectiveness of their employees, but
when the problem which is discussed in reward system occurred, than the employees
those does not receive these kind of facilities they demotivate and their efficiency and
productivity affects.
 Furthermore when some employees are sent to the foreign countries for the training
but the other employees those are working on the same post are not sent, they
demotivate with this thing and it affect their productivity and efficiency.

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Contribution to the Lower Cost
Positive outcome:
 Nestle Pakistan train its employees to for their desire performance when the
employees trained they perform according to the requirement of the company so their
performance helps company to reduce the cost of the products so training is one of the
factors which helps to lower cost.
 As we know nestle Pakistan is decentralized according to Mr.Muhammad Amjad
(employees services solution manger) management is responsible for high and low
cost so they struggle for lower cost this thing make the cost low
 Globe that is use as information system in Nestle ,Globe version 1.5 Roll out incl used
in Pakistan, so employees take a lot of help from Globe and this is also contribute to
decrease the cost.
 If employees are selected according to the job specification than they can work more
efficient so in Nestle large percentage of employees are hire according to their
qualification when they work according to the requirement, than I contribute to the
cost.
 If workers will satisfied with the environment of the organization they will get
benefits according to their performance then they will fully concentrate towards their
work there will be no leg pulling at all so, the mistakes will be less and in the result
the productivity increase and the cost will be low.
Negative outcomes:
 Information system for lower level employees is manual or telephone system, so this
kind of information and communication system affects the cost.
 Different kind of facilities provided to employees increase the cost
 Training , development processes increase the cost
Higher Product Quality
Positive outcome:
 Organizational structure is decentralized, so managers are responsible for their work
so they try to maintain the quality because they are responsible for high or low
quality.
 If employees feel any kind of problem regarding the work than they can take help
from expertise through Information technology so Information system is also
contribute to the high quality
 When employees are selected according to their qualification than they can contribute
to high quality in their field
 When employees are rewarded than they motivated and try to maintain the quality
satisfied employee can satisfy customers
 If the people feel fairness in management than they contribute to the high quality,

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Negative outcomes:
 In some cases there are a factor of favouritism, which affect the quality because if
employee gain any kind of favouritism than they feel no need to constraint on their
quality work and product quality also.
 In case of Intercede employees are not selected according to their qualification which
affects the quality of work and quality of products.
Customer Satisfaction
As we know Nestle is a very large and trustable organization and customer have a strong trust
on the Nestle. Nestlé is committed to offering products and services to Nestlé’s customers
and consumers that meet their needs have their preference and provide sound nutrition. We
want to win the trust of our customers and Consumers by continuously listening to them, by
understanding their expectations and consistently satisfying their needs and preferences.
There are also a customer relation management in Nestle which means deepening the
relationship with consumers, which involves extra effort in talking to and listening to them
regularly.
Positive outcome:
 Nestle is a trusted organization, it manage all the things efficiently from many years
so it contribute to the great customer satisfaction.
 Its MIS system also provides customer desired information to the customers so
customer feels happy and satisfied.
Negative outcomes:
Customers are directly linked with the sellers when seller group not satisfied with
company than he can’t satisfy customer.

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Low Employee Turnover
According to the Nestle Lahore Pakistan HR manger Nestle turnover rate is 6 to 7 %. Once
employee is hired, than Nestle HR manager tries its best to retain the employees, that’s why
Nestle turnover rate is low.
Positive outcome:
 Because of the Nestle reputation Employees feel proud to work at Nestle
 Nestle reward system is very effective so employees feel satisfied and they feel no
need to leave the organization.
 Nestle Information system help the employees a lot and make their jobs easy for them
and they face no major problem to perform the job and like their work and feel no
need to leave the organization.
 Employees are clearly defined their work , that what to do, so they know what to do
and Nestle never get extra work from employees without their consent so employees
get satisfied an turnover decreases.
 Nestle also offer different kind of training programs and development programs which
make their employees happy and thus turnover decreases.
 Nestle is fair with its employees so employees feel secure to work at Nestle and feel
no need to leave the organization.
Negative outcomes:
 According to the leaving employee of the organization, there is an element of
favouritism in Nestle organization, so all the benefits are provided to the employees
but priority is given to the favouritism employees even they don’t deserve to receive
rewards.
 Globe system is difficult to understand by an average employee, so they hesitate to
work at that kind of where technology is up to date and difficult for them to
understand.
 Favourites get priority for foreign training and development courses so other
employees get dishearten, and think to change the organization.
Learning Organization
A learning organization is the term given to a company that facilitates the learning of its
members and continuously transforms itself. It encourages organizations to shift to a more
interconnected way of thinking.
Learning is part of the Nestle 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 Nestlé.

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Positive outcome:
 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 her/his position.
 When formal training programs are organized they should be purpose oriented and
designed to improve relevant skills and competencies. Therefore they are proposed in
the framework of individual development programs.
 Latest technology used in Nestle makes its employees more learning, and make the
organization a learning organization.
 Foreign training and development program make the employees and organization
learning.
 When all the needs and wants of the workers will fulfil they seek more for the
development of their organization and they can think in a better way and participate a
role in the performance.
Negative outcomes:
 Some employees those don’t want to learn something because they feel proud to work
in Nestle and feel no need for learning
Strengths
 Brand strength
 Product innovation
 Research & development
 Market share
Weaknesses
 MATURE MARKETS
 Less consumer research in few areas
 Complex supply chain management

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Opportunities
 Expansion
 Product offering
 Global hub
Threats
 Changing consumer trends
 Competition
HRM practices organization is doing to
achieve high performance
Nestle HR management perform a number of activities to achieve high performance.
Shared Services (SS)
As explained in the organization structure, this department is responsible for maintaining the
data and records of the employees to decide about their pays, allowances etc. The department
is also supposed to carry out the performance appraisals (PA) with the help of the line
managers. The SS sets guidelines and provides the line managers with tools, systems and
processes to evaluate their subordinates. Based on these evaluations, pays and remunerations
are decided. (Remunerations are done by the Centre of Expertise).
The pay and compensation strategy is tied to the achievement of the business objectives and
helps them build a growth-oriented culture. Apart from payrolls, SS is in-charge of
administration of employee funds. It is supposed to decide that which employee gets which
fringe benefit, and to what extent, for example, medical allowances, travel allowances etc.
The provident funds for employees are also calculated by SS. The SS is a vital department for
maintaining employee motivation and loyalty to Nestlé. It needs to be ensured that all data
collection and PAs are done correctly, and in line with the procedures and guidelines set by
the organization. It also needs to give enough allowances and leverages to the employees to
allow them to balance their personal and professional life. Nestlé believes that employee’s private and professional life should have a good balance. In
the same spirit, Nestlé encourages flexible working conditions whenever possible and
encourages its employees to have interests and motivations outside work. This not only
maintains satisfaction with the job, it also increases loyalty, productivity and provides
motivation for better performance in the future.

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 360 Degree Appraisal System:
Performa acne Appraisal system used by Nestle is a 360 degree appraisal system. This
process enables the individual’s performance to be evaluated from an all-around perspective
and thereby provide more accurate information on an individual’s performance over a stated
time period. The concept of 360 degrees comes from the number of degrees in a circle. Every
point at the edge of the circle provides a direction or a dimension to its centre. So providing
an employee with 360degree feedback means that feedback comes from all directions .This
leads toward validity and reliability of the performance appraisal.
Centre of Expertise
Hiring and requirement is the most important task performed by Centre of Expertise. It is the
process on which the entire company’s future and performance relies upon.
TheBusiness Partners are supposed to communicate the staff requirements of different
departments, and set the job description and requirements. Contacts with universities and
recruitment events are maintained to have good visibility of the Company and recruitment
sources. This thing helps to achieve high performance.
 Training 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
 Workforce Planning:
Workforce planning is a process which is designed to foretell what, when how much can
bring about in talent management. It is an integrated and forward looking process. It provides
action plans to the managers to work in a prescribed way. This process helps the managers to
avoid or decrease problems of people to take advantage of talent opportunities and to develop
the talent pipeline. It builds a competitive advantage over other firms.
 Man Power Planning
Manpower planning is a strategy for the acquisition, utilization, improvement and
preservation of an enterprise’s human resources. It refers to setting up job specifications or
the quantitative requirements of jobs determining the number of personnel required and
improving sources of manpower.
 Performance related pay (PRP)
Performance related pay in an extra payment system added to the base pay. The employees
get this payment according to the standard of their performance. Besides, this payment is

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given to a company after considering how it is performing in financial context. Some forms
of PRP are strategic pay, flexible pay, and variable pay.
 Objective Evaluation of the Organization
Human resource function has significance with the onset of global competition. Human
resource managers and corporate planning managers think more strategically and step by
step. How intense competition impacts upon employment stability can be addressed by them.
Implementing cost savings policies regarding employment and thinking with executives on
the process of supporting corporate activities are not the same things. To stop downside of
global competition the human resource managers should be more active and recruit and keep
up efficient workforce. Planning should be done from the very beginning to stop bloating of
organization.
Role as a Business Partner
Business Partner’s tasks and responsibilities can be clearly explained with his position in the
business as a Business partner. A business partner is a link between the whole of
the organization and the Human Resource Department. His main focus is on coordinating and
integrating the strategies and plan of actions of different departments in line with the whole
organization. He ensures that the growth objectives and plans of the departments don’t come
into conflict with the mission of the organization as a whole. The Centre of Expertise is
concerned with making changes and finding new ways of operating to increase the efficiency
of the whole organization.
How well company has managed its
performance management
The function of Performance management is to ensure the fulfilment of goals in an effective
and efficient manner. Moreover, it watches performance of organization and process of
production, employees etc.
In Nestle Pakistan
 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.

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 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 behaviours and are
exhibited by efficient performers in those works. Attributes include personal characteristics,
features, motives, values or ways of thinking affecting an individual’s behaviour.
Competencies in organization can be divided into two categories- personal functioning
competencies that include broad success factors untied to a specific work function or
industry. These competencies often notice leadership or emotional intelligence behaviour
Critical Analysis of HR PERFORMANCE
The performance of an organization must be analysed 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. This analysis proves the best performance standard of HR
dept. in the present market. It is clear that Nestle emphasizes on personal achievement and
the pay structure HR has planned for its employees and the company also mixes practices like
Job Enrichment and Job enlargement, to motivate employees and to break the monotony of
their Job tasks. An example of Job enlargement is the correspondent who acts both in sales
and brand management department

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Nestle Continues Excellence (NCE)
There are a separate department for continuous excellence of the performance Headed by
Nadia Omer .This department mange the performance of the overall company very well.
Conclusion
So conclusion of our whole report is that Nestle is good in its performance but in some cases
it needs to improve and there are some negative things and there are some positive things
which we observe in our finding about the performance of the nestle. Nestle performance
management is high but not the maximum so of the maximum performance management
Nestle needs some improvement which we’ll discuss in our second part of the report.
(Nestle Performance)
References
Nestle.com
Nestle.pk
Company visit (Lahore)

38. 37
Institute of Business and Management
University of Engineering and Technology Lahore
Questionnaire
Agree Neutral Disagree
1. Employees, once confirmed as permanent, can
feel secure in their employment with our
organization.
2. When faced with economic pressures in part of
our business, we work hard to find alternatives
before laying staff off.
3. We are very selective in whom we hire in this
organization and we let our existing and potential
employees know it.
4. We are very clear about the attributes,
competencies, attitudes and values that we want
in a new employee
5. We use a variety of recruitment and selection
tools to ensure that the people that we hire not
only bring the skills and knowledge that we need
but, more importantly, that they will fit with our
organization's culture.
6. Our senior executives get involved in the
selection process to demonstrate the importance
we place on hiring the right people for our
organization.
7. We evaluate our recruitment and selection
process against job performance to ensure that
we are bringing people in that can perform well
on the job.

39. 38
8. We have structured our workplace so that most of
our work is done in team.
9. Our work teams are largely self-managing and
empowered to solve problems in their immediate
work area.
10. Management rarely has to become involved in
making work-related decisions at the frontline.
11. Our organization's pay and benefit package is
well above industry or community norms for
work of comparable value.
12. Our employees know that our pay and benefit
package is well above industry or community
norms for work of comparable value.
13. We provide our employees with opportunities to
invest in our organization to benefit financially
from their efforts to contribute to our success
14. It is clear to individuals and/or teams what has to
be achieved in order to earn performance-based
rewards.
15. Our organization makes a significant investment
in the ongoing training and development of
frontline staff.
16. Our frontline staff is multi-skilled and can take
on many different work assignments.

40. 39
17. Our frontline staff frequently changes jobs in the
interest of acquiring new skills and knowledge.
18. Work teams and/or individuals frequently review
and evaluate processes, incidents, decisions and
innovations to derive as much learning as they
can from both success and failure.
19. Our training goes beyond job-specific, technical
skills to include social skills, general problem-solving
skills and broader knowledge of the
organization.
20. Financial information concerning the
organization is fully and openly shared with
frontline employees on a regular basis.
21. Non-financial performance information is fully
and openly shared with frontline employees on a
regular basis.
22. Every effort is made to ensure that frontline
employees fully understand important financial
and non-financial information on organization
performance.
23. We work hard to ensure that we apply the best
performance tools and techniques that are
relevant to the field in which we operate.
24. We keep up-to-date with advances in knowledge
about what works (and what does not work) to
improve performance in our field.
25. We work hard to equip our employees with the
best methods, tools, technology, practices and
techniques.

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26. We work hard to minimize distinctions between
frontline employees and senior management.
27. We avoid the use of demeaning job titles and try
to use titles that promote equality.
28. We minimize compensation and benefits
differences between levels in our organization.
29.