Training and Development Processes of Nestle Global and Unilever Global. A comparison on how the two companies use their Human Resource productively.

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Learning Knowledge and Effective Performance
A comparison of employee training at Unilevers and Nestlé Companies
HIMESHA DHARMATHILAKE
Staffordshire University

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Acknowledgement
It would be impossible to thank everyone connected with this report. So many people deserve
more than my warmest recognition. I wish to offer my special appreciations to our valued
instructor Mrs. Shumara Fernando for her untiring support given in completing this Assignment
a success. Without her support this report wouldn’t be a success. It has been a great pleasure
working with a lecturer that takes the extra mile in order for her students to achieve their highest
potential and these efforts are greatly appreciated and have not gone unnoticed.
I would also like to thank the librarians of Asia Pacific Institute of Information Technology
(APIIT) for providing me with necessary resources to complete this project
Finally, I would like to thank my family and friends for their immense support and guidance
given to complete this project successfully.

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Executive Summary
This is a report of comparison on Unilever and Nestlé companies’ HRD processes and practices.
And identifies that the two companies have very effective and systematic training and
development which includes different training aspects such as On-the-job training, Off-the-job
training, Induction training to improve competencies of its workforce in enhancing their levels
of performance while maintain a contended work force who retain in the long run. And also they
make sure to evaluate as the end of the training program.
In chapter 1 the author has analyzed on the topic training and has incorporated the concept of
STC and how the chosen companies have adopted the process. Learning and Development being
the second chapter brings facts about the learning and development processes of the companies.
Finally the author has touched on the topic performance where the performance appraisal
concept has been incorporated to give a meaningful idea as to how the two companies use this.
The report mainly focuses on the idea that “Skill Development is the primary initiative” and the
author has elaborated throughout the report on how the two companies use this idea in their HRD
process.

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Table of Contents
Acknowledgement .......................................................................................................................... 1
Executive Summary........................................................................................................................ 3
Table of Contents............................................................................................................................ 4
List of Figures................................................................................................................................. 5
List of Tables .................................................................................................................................. 5
List of Abbreviations ...................................................................................................................... 6
Introduction..................................................................................................................................... 7
Chapter 1: Training......................................................................................................................... 9
1.0. Systematic Training Cycle ............................................................................................... 9
1.1.0. Training Need Analysis .......................................................................................... 10
1.1.1. Determining and Design ......................................................................................... 12
1.1.2. Deliver and Support ................................................................................................ 13
1.1.3. Evaluation and Valuation........................................................................................ 14
Chapter 2: Learning and Development......................................................................................... 15
2.0. Kolb’s Experimental Learning Cycle............................................................................. 15
2.1. The Downward Spiral of Difference.............................................................................. 16
2.2. The Competency Model for Employee development. ................................................... 17
2.3. Succession planning for development and Management of managerial and Non
Managerial Staff........................................................................................................................ 18
Chapter 3: Performance ................................................................................................................ 20
3.0. Performance Appraisal................................................................................................... 20
Recommendations and Conclusion............................................................................................... 23
Reference List ............................................................................................................................... 24

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List of Figures
Figure 1.0 – Systematic Training Cycle ………………………………………………………….8
Figure 1.1 – Unilever Training Philosophies …………………………………………………....12
Figure 1.2 – Nestlé Training Cycle ………………………………………………..…………….13
Figure 2.0 – Kolb’s Experimental Learning Cycle ………………………………………….......14
Figure 2.1 – Downward Spiral of Difference …………………………………………………...15
Figure 2.2 – The Effective Unilever Manager: Unilever Competency Model ………………….16
Figure 2.3 – The seven pointed star model for systematic SP &M ……………………………..17
Figure 3.0 – The continuous Cycle of performance …………………………………………….19
Figure 3.1 – Comparison of Unilever and Nestlé company employee performance appraisal ....21
List of Tables
Table 1.0 – Skill development at Unilever and Nestlé ………………………………………...…9
Table 1.1 – Difference between Training and Development ……………………………………10
Table 2.0 – Seven steps of the seven pointed star model for systematic SP&M ………………..18
Table 3.0 – Performance of Nestlé and Unilever ………………………………………………..20

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List of Abbreviations
HR – Human Resource
HRD – Human Resource Development
KPI – Key Performance Indicators
KSA – Knowledge Skills and Attitudes
SP&M – Succession Planning and Management
STC – Systematic Training Cycle
TNA – Training Need Analysis

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Introduction
In this report, the author wishes to compare the practices of human resource development,
Unilever and Nestlé to bring out the statement “Skill Development is recommended as the
primary Initiative”. Leitch Review (2006)
According to Cosh et al (1998) an educated and well-trained work force is considered to be
essential to the maintenance of a business firm’s competitive advantage in a global economy. It
is also believed that HRD can and should be a powerful agent to facilitate a firm’s expansion and
the development of capabilities, thus enhancing profitability.
HRD as an organizational process comprises the skillful planning and facilitation of a variety of
formal and informal learning and knowledge processes and experiences, primarily but not
exclusively in the workplace, in order that 4 Human Resource Development in a Knowledge
Economy organizational progress and individual potential can be enhanced through the
competence, adaptability, collaboration and knowledge-creating activity of all who work for the
organization. (Harrison and Kessels, 2004)
Skill development can be identified as to improvement of productivity in the workplace and the
competitiveness of businesses and improving the quality of life of workers, their prospects of
work and their mobility. Moore (2012)
Training is futile if the trainer lacks the ability or motivation to benefit from it. In terms of ability
the trainer needs the required reading, writing and mathematics skills and the required
educational level, intelligence and knowledge base. (Dessler and Varkkey, 2009)
The four-stage model of learning outlined by David Kolb (1983) has been an extreamly
influencial tool for employee development. The four satges of learning cycle, experiencing,
reflecting, conceptualizing and experimenting, have been used to demonstrate that effective
learning involeves multiple, interactions with experience and passing through all four stages.
(Edward and Rees, 2011)

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The individual manager needs development just as much as company and society do. He should
first keep himself alert and mentally alive. He needs to keep himself challenged. He must acquire
today the skills which will make him effective tomorrow. (Drucker, 1998)
Performance management is a process that involves many aspects, of people management. But
simply initiating a new performance management scheme or introducing new HR practices or
policies as part of the process will not itself bring about the desired motivation of workers. ( Foot
and Hook, 2011)
Multinational Consumer Goods Company Unilever believes that a skilled, motivated and
engaged workforce is essential to achieve the growth ambition of their organization. Skill
development of managerial and non-managerial staff depends upon the improvement of a team
that is fit for growth and sustainability and is able to understand the gaps in talents of employees
and there by implement strong programs to retain and improve these talents of employees.
(Unilever global company website, 2015) Similarly at Nestlé the employee’s private and
professional life have a good balance. This helps attract and retain people and reconciles
economical imperatives with wellbeing. Nestlé embarked upon training, retraining and upgrading
the skills of its local workers. (Nestlé people development review, 2003)
As stated in Mayfield and Mayfield (2011), Performance goals may need revision, employee
development programs implemented, and assessment measures modified and, much training and
information sharing must be ardently practiced organization-wide as an ongoing process that
educates all employees to be organizational learners.
To further discuss the basic ideas of HRD and Skill Development the author has incorporated
concepts like the systematic training cycle (Training), Downward spiral of difference
(Learning), (Development), the continuous cycle of performance review (Performance).

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Training Need
Analysis
Determining and
Design
Delivery and
Support
Evaluation and
validation
Chapter 1: Training
1.0. Systematic Training Cycle
In order to have competitive advantage organizations must compete through their people.
Employees are the most valued asset of any organization (Aguinis & Kraiger, 2009).
The Systematic Training Cycle (STC) is one of the most commonly acknowledged training
models that have influenced training since the 1960’s (Sloman, 2010). It is comprised of 4 main
stages, namely Training Needs Analysis (TNA), Planning/ Design of training, Delivery of
training and the evaluation of training outcomes. (Armstrong, 2001)
Figure 1.0: Systematic Training Cycle
Source: Authors work based on (Köster, 2002)

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1.1.0. Training Need Analysis
The first stage out of four emphasizes on the Training Needs which should be analyzed in an
organization.
Skill Development
Companies aim to develop their people on 3 different sets of skills during their Training process.
Table 1.0: Skill Development at Unilever and Nestlé
General Skills Professional Skills Leadership Skills
A catalogue exists of all general
skills trainings we offer, and
which are delivered in the most
appropriate way (e-learning,
virtual classroom learning,
classroom learning, etc.)
Each function has an Academy -
e.g. Unilever Marketing Academy
develops programs specifically
for marketers, at each level of
their career
High Potential Leadership
programs exist for High
Potentials at each work level
within Unilever
Source: Author’s work based on Leena Nair (2014).

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Table 1.1 - Difference between training and development
Basis of
difference
Training Development
Focus Learn specific behaviors and actions;
demonstrate techniques and process to
complete a specific job.
Understand information concepts
and context; develop judgment;
expand capacities for assignments in
a variety of fields.
Time frame Short term process. Long term educational process.
Skill development Provides technical skills for operational
activities.
Provide conceptual skills.
Suitability Targeted mostly on non-managerial
employees.
Targeted on managerial personals.
Objective To make employees more efficient in their
present work.
To make employees efficient in the
present job as well as to make them
capable of handling future
problems efficiently.
Scope Scope of training is restricted and it is a part
of development.
Scope of development is wide and
training is a part of it.
Method Its chief methods are vestibule training,
apprenticeship training and internship
training.
Its chief methods are transfer,
special courses, conferences and
seminars.
Effectiveness
measure
Effectiveness measures through
performance appraisals, cost- benefit
analysis, passing tests and certification.
Effectiveness measures through
qualify people available when
needed; promotions from within
possible; HR- based competitive
advantage.
Source: Mathis & Jackson (2003: 316); Singla (2009:36)

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At Unilever the need of individual training are objectively identified and necessary involvements
are planned for identified groups, which get rolled out in a phased manner through a training
calendar. Training and development programs are also important to cope up with the changes in
technology and with diversity within the organization. (Unilever global company website, 2015)
At Nestlé the Organization Development Department is responsible directly for the training
needs of the employees. They hire trainees and then communicate the objectives of the training
plan to the trainees. Then identifies and nominate a pool of people who can benefit and
implement the training practically in the near future so that the benefits are maximized for the
organization as a whole. (Nestlé people Development Review, 2003)
1.1.1. Determining and Design
The second step of the STC is designing the training program. According to the results
identified at the need analysis the appropriate training methods are selected.
At Nestlé both managers and non-managers receive help from training and developmental
program but mostly non-managers are concerned with training while the managers are concerned
with developmental programs. External training programs are the best means of maintaining a
balance; they enable participants to keep up with the latest developments in management theory
and examine working methods and situations that are outside Nestlé’s normal experience.
(Nestlé people Development Review, 2003)
On the other hand Unilever designs training programs to their employees that covers professional
skills, general skills and leadership skills to improve their working effectiveness and efficiency.
Unilever believes that through the investment in training would make their employees develop
rapidly and would contribute to the growth of the company. (Unilever global company website,
2015)

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1.1.2. Deliver and Support
The next stage of the training cycle is to deliver the actual training to the employees which
consist of the implementation of the training where various training courses are delivered to the
participants. Köster (2002)
The global training programs at Unilever takes place annually, where employees are sent to
different countries to be trained and developed. Duration of these training programs is 6 months
or more and approximately 35 to 40 managers are being sent. These programs are done for
people who have the most potential in the company. (Maumita and Zaman, 2013)
Over the past three years the total number of registered direct training hours at Nestlé is in excess
of 2800 man–days for around 310 employees. To encourage the sharing of global best practices
all potential factory managers follow an 18-month training program. (Nestlé people
Development Review, 2003)
Figure 1.1 Unilever Training Philosophies
Source: Authors work Based on (Unilever Sri Lanka Sustainable Development Overview, 2011)

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Nestlé
Training
Need
Ananlysis
Nomination
Training
Calender
Logistics
Feedback
Figure 1.2 Nestlé Training Cycle
Source: Author’s work based on Nazim et al (2011:11)
1.1.3. Evaluation and Valuation
Evaluation and Validation is the last stage of the Training Cycle. To evaluate the training, the
trainers assess if the training objectives are achieved.
Unilever uses the Kirkpatrick model of learning evaluation. This evaluates the effect of the
training under four criteria, namely, the student's reaction to the training, what the student is
actually taking away from the instruction, changes in the student's behaviour due to the training
and benefits to the organisation from the training. (Nazim et al 2011) Nestlé takes feedback on
training in the form of a quiz. The quiz is double sided; both the trainees' and trainers' opinions
regarding the training and facilities provided are polled. (Nestlé people Development Review,
2003)
The STC has be able to give a clear understanding for the Author thus is able to notify that
training of employees is essential for any company’s employees for them to perform well and in
turn for them to help in achieving organizational goals and objectives. Ultimately it can be stated
that Training is needed for the Skill Development of the employees and “Skill development” has
be an organization’s Primary initiate.

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Concrete
Experiences
(Doing/Having an
experience
Reflective
Observation
(Reviewing/
Reflecting on the
experience)
Abstract
Conceptualisation
(Concluding/
Learning from the
experience)
Active
Experimentation
(Planning/ Trying
out what you have
learnt)
Chapter 2: Learning and Development
2.0. Kolb’s Experimental Learning Cycle
“Learning is the process whereby knowledge is created through the transformation of
experiences”. Kolb (1984:38)
Kolb’s Experimental Learning theory is an effective four stage cycle of learning. David A. Kolbs
stated that learning comprises the achievement of abstract concepts that can be applied flexibly
in a range of conditions. Thus as the Kolbs experimental learning cycle Figure 2.0 suggests, at
Unilever and Nestlé by implementing various development techniques the employees could learn
effectively and develop through experience.
Figure 2.0 Kolb’s Experimental Learning Cycle
Source: Kolb D. A (1984:38)

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2.1. The Downward Spiral of Difference
HRD professionals need to be able to recognize workplace learning process activity that
intensely old patterns of difference between people, or create new ones. Such patterns can lead to
alienation of individuals or minority groups from the very communities of practice within which
valuable organizational knowledge can be created. Figure 2.1demonstrates the downward spiral
of differences.
Figure 2.1: Downward Spiral of difference
Source: Authors work based on Harrison and Kessels (2004:211)

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Learning is part of the Company culture. Employees at all levels are systematically encouraged
to consider how they upgrade their knowledge and skills. The Company determines training and
development priorities. Experience and on-the-job training are the primary source of learning.
Managers are responsible for guiding and coaching employees to succeed in their current
positions. (The Nestlé Human Resource Policy, 2012)
2.2. The Competency Model for Employee development.
The global Unilever competency Model was introduced in 1994. The company identified these
competencies by studying successful Unilever managers around the world to determine which
characteristics and behaviors distinguished from other managers in Unilever. The Figure 2.2 is a
diagram of the Unilever competency Model. It includes five clusters with their supporting
competencies. Millitelo and Schwalberg (2002:176)
Figure 2.2: The Effective Unilever Manager: Unilever Competency Model
Source: Author’s work based on Millitelo and Schwalberg (2002:176)

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2.3.Succession planning for development and Management of managerial and
Non Managerial Staff.
Figure 2.3: The Seven Pointed star model for Systematic Succession Planning and Management.
Source: Author’s Work based on Rothwell (2010:83)
Step 7: Evaluate the
Succession Planning
Program
Step 6: Close the
Development Gap
Step 5: Access future
Individual Potential
Step 4: Access future
work/people
requirements
Step 3: appraise
Individual
Performance
Step 2: Access present
work/people
requirements
Step 1: Make the
commitment

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Table 2.0: Seven Steps of the Seven Pointed star model for Systematic Succession Planning and
Management
Steps Method
Step 1 The organization’s decision makers should commit systematic SP&M and establish
a program.
Step 2 Decision makers should then asses the present work requirements in Key position.
Only in that way can individuals be prepared for advancement in a way that is
solidly grounded on work requirements,
Step 3 The organization should also begin establishing on inventory on talents so that its
clear what human assets are already available.
Step 4 The decision makers should make an effort to asses future work requirements and
competencies to align with organization’s strategic direction. In that way future
leaders may be prepared to cope up with changing requirements and organizational
strategic objectives.
Step 5 The organization should establish an organizational process or a series of processes
to asses future individual potential that future- oriented process should not be
confused with past or present- oriented employer performance appraisal.
Step 6 The organization should establish a continuing program for leadership development
to cultivate future leaders informally. Decision makers should also explore
alternatives to traditional promotion from within methods of meeting succession
need.
Step 7 The results of evaluation should in turn be used to make continuous program
improvements and to maintain a commitment to systematic SP&M
Source: Rothwell (2010:83:85)
The Author has recognized that from the above learning methods implemented by Unilever and
Nestlé the two companies chosen for comparison has been able to develop the capabilities and
competencies of their employees. Through these learning processes the employees has been able
to develop their own talents and will perform well in their work.

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• Preparing an
effective plan
• The effective
Coach
• Coaching
approaches and
techniques
• The Appraisal
Process
• Preparing for the
appraisal interview
• Conducting the
appraisal interview
• Significant job
segments
• Standard of
perfprmance
The Basis
for
Appraisal
The
Appraisal
The
performanc
e
Impreovem
ent plan
On- the-
job
coaching
Chapter 3: Performance
3.0. Performance Appraisal
According to Angelo et al (2006) “Performance appraisal” is a discrete, formal,
organizationally sanctioned event, usually not occurring more frequently than once or twice a
year, which has clearly stated performance dimensions and/or criteria that are used in the
evaluation process. Figure 3.0 gives a better understanding how the performance appraisal is
carried out in an organization.
Figure 3.0: The continuous cycle of performance review
Source: Author’s work based on Kirkpatrick (2006)

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Table 3.0 Performance of Nestlé and Unilever
Nestlé Unilever
 Line managers and HR assess formally
once in a year and get feedback.
 Subordinate managers can interrogate for
an unfair evaluation.
 The HR department has enlisted specific
key performance indicators.
 Remuneration structure and promotion
criteria consider individual performance.
HR staff must help the management in
elaborating training programs. Sufficient
training programs are developed at the
level of every working company that
capitalizes on the availability of local
regional or global resources of the group.
 Some training programs improve the
language skills of the employees. These
programs also try to consolidate corporate
cohesion as well as to promote networking
throughout the group. They develop and
share best practices of the different
management disciplines practiced in the
group.
 E-learning programs are alternative to
formal training programs.
 To help better current performances
 To help in development of the employee.
 To determine training and development
needs.
 To give employee feedback and counsel
them
 To review performance for salary
purposes.
 Everyone in Unilever have 3 business
goals and 1 development goal
 This is about aligning everyone’s actions
and getting things done
 Clear direction on key priorities
 KPIs and targets to focus employees’
actions and assess results
 Yearend performance rated on a 1 to 5
scale
Source: Author’s work based on Annual Reports of Unilever and Nestlé, (2013,2014)

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Figure 3.1: Comparison of Unilever and Nestlé company employee performance appraisals
Source: Author’s work based on Annual reports of Unilever and Nestlé, (2013, 2014)
The Author has identified from the information of company comparisons that better
performances will lead to successful achievements in organizational goals and objectives and
also improve sales and bring more profit to the company. This is because the Employees at this
point have developed their skills. It is therefore clear that Skill development is the primary
initiative that any company should adopt in order for their employees to help in their goal
achievement.

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Recommendations and Conclusion
This Report provides an insight into the HRD practices in Unilever and Nestlé. The Author was
able to examine the impact of HRD practices on company performance. It is assumed the
following relationship between a interacting HRD system consisting of performance-oriented,
skill-developing and strategically aligned HRD practices and organizational performance.
Based on the outcome of the study, it is essential on the part of management to take a second
look at the drawback revealed so that the maximum impact of employee appraisal can be
achieved. Unilever should also adopt other employee appraisal methods in addition to the
management by objective method. This will ensure that the shortcomings of management by
objective can be controlled through the use of other methods as well. For instance it can
occasionally use 360 degrees of appraisal which has been proven to be quite effective as well.
The Author suggests that in Nestlé they should be establishing and maintaining effective
communication with each employee, sharing of ideas and employee involvement in decision
making process. The employer should show a greater trust to employees and employees should
feel good about their employer. There should be no artificial barriers between employees and
management.
Thus from the above information provided in the report it is clear that Developing the skills of
employees should be the primary initiative in any company in order to gain and retain their
employee training, developing, learning and performing skills at a higher level.

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