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Company name:NestleIndustry: Food ProcessingHeadquarters: Vevey, SwitzerlandCompany type: Multinational CompanyKey persons : Peter Brabeck-Letmathe(chairman),Paul Bulcke (CEO)Products: Baby foods,coffee,dairy products,breakfastcereals, confectionery, bottledwater, ice cream, pet foods “.Employees : 3,28,000(2012)Website: www.nestle.comHistory:Nestle was formed in 1905 by the merger ofthe Anglo-Swiss Milk Company, establishedin 1866 by brothers George Page and CharlesPage, and Farine Lactée Henri Nestlé,founded in 1866 by Henri Nestlé. The companygrew significantly during the First World Warand again following the Second World War,expanding its offerings beyond its earlycondensed milk and infant formula products.The company has made a number of corporateacquisitions, including Crosse & Blackwell in
1950, Findus in 1963, Libbys in 1971, RowntreeMackintosh in 1988 and Gerber in 2007.Nestlé has a primary listing on the SIX SwissExchange and is a constituent of the SwissMarket Index. It has a secondary listingon Euronext. In 2011, Nestlé was listed No. 1 inthe Fortune Global 500 as the worlds mostprofitable corporation.With a marketcapitalization of $ 200 billion, Nestlé rankedNo. 13 inthe FT Global2011.Performance of Human ResourceManagement in Nestle:Nestle, the largest FMCG Company is workingall over the world with more than 500factories in 86 countries making up of most ofthe continents. Henri Nestle set up Nestle inSwitzerland. Customers are provided with morethan 500 products by Nestle. Nestle wasentitled by Henri Nestle.The logo of the company consists of hisfamily coat of arms, the nest with a motherbird protecting her young. The symbol of thecompany is associated with its care andattitude to lifelong nutrition. The Nestle nestbears the meaning of nourishment, securityand sense of family that are important to life.HR activities at Nestle:
Recruitment:The current report is that innumerable employees are engaged in Nestle, Nestle hires most of the employees through a method. An opportunity of employment comes when some employees want to resign or there is an urgent need. But in case of these three situations the head of the department must have to obtain consent of the managing Director (MD). The Divisional Head fills up a ‚Recruitment and Budgeted Form‛ if the request is approved. Performance Appraisal:The corresponding manager or supervisor evaluate or Judge the Job performance of an employee by a method like performance appraisal, employee appraisal, and performance review or development discussion. The employees are given importance at their work place as the Nestle Company is absolutely dependent on the quality of its employee’s performance. The company pays incentives to its employees to encourage them to give better performance. Compensation Benefit:Compensation is a main thing of Nestle Real Rewards package, which forces the top performers to give their best. The philosophy of Nestle is to afford and keep up disciplined compensation programs that keep up a long term relationship with employees at the time of judging their performance. Nestle promise to offer compensation packages including base pay, short and long term incentives and benefits,. Nowadays they are competitive in market.Objective of the Organization HRM:
The protection of its employees is Nestle firstpriority because employees are the asset ofthis company. To maintain the global corporatestandard Nestle focuses on the need for safeworking environments. Nestle has resolved toprovide a safe working environment for alltheir employees, contractors and visitors andthey are trying to implement Health and safetypractices and programs at all working placesobjectives of the organization are We provide a safe work place to owe employees. We lessen risks of our employees and contractors and visitors and take care of their injury or illness. We meet all requirements like health, safety, legislative etc. We establish and monitor new purposes to decrease work related injury or illness. We develop an efficient injury management system which helps the affected employees return to work. We supply information, provide training to employees and contractors to make them aware of their roles and responsibilities in decreasing the risk of work place injury or illness. We are encouraged a safety and Health management from our suppliers and contractors. We discuss on Health and safety matters with employees and other stakeholders.Method of HRM at Nestle:The Nestle group in the area of interpersonalrelations and its management style and thecorporation values are stated as follows: Their respect demands specific attitude that isworthy to be highlighted in the present policy.
For taking any advice and decision Nestle depends on its employees. So Nestle has a ‘Democratic Leadership Style’. If the company is able to attract employees and develop its growth continually, they will easily achieve a long term success. This is a primary duty of all managers. The principle of the Nestle policy is to hire staff with personal attitude and professional skills because it will make them able to consolidate a long term relationship with the company. Hence ‘the potential for professional advancement’ is an important standard for recruitment.In Nestle people are dealt with respect andfaith. There is not intolerance, harassment ordiscrimination in the management and thisprinciple is applied and maintained at everystage and situation.Nestle management does not work incomplexity and they are honest in behaving withcustomers and employees for excellentcommunication. The Nestle is improvingcontinuously for their sincerity in work,dialogue and transparency.HRM Models:The source approach to HRM gives importanceon an employee to be ‘resourceful’ whoincreases performance by using motivation,communication, leadership to increasecommitment and loyalty. The soft modelconsiders that if satisfaction is increased itwill be the only way to go about in themanagement against various estimated methodspossibly used in the hard model.The Objective of HR /Manpower planning:Manpower planning is done to balance anddevelop the organizations ability to meet its
goal by developing Strategies that willcontribute its optimum contribution of humanresource. The line manager and staff managertake the responsibility of Manpower planning.The line management gives the estimate ofmanpower requirements and staff managerworks on selection and recruitment relatedto line manager to whom man power is vital.Organizations HR Planning anddevelopment:What the employee requires can be understoodby an effective mechanism called HR planning.HR planning can manage the changes in theorganization like growing decrease inrequirements of employees. HR planningimplements new recruitment and hold skilledand efficient staff by understanding easily theneeds of futureTraining and development of Nestle: It must be admitted that the company culture has learning. All employees try to upgrade their skills and knowledge continuously. So employees are willing to learn to be recruited by Nestle. Training and development is done on-the- job. Every manager has a duty to guide and train employees for their progress. Formal training programs are arranged with purpose of improving pertinent skills and competencies. Besides, these programs perform individual development. As a result one cannot get reward by attending programs. Manager of Nestle measures progress which can be achieved by training programs. The purpose behind this is to motivate employees by providingattractive but realistic career that helps them develop
their skills over a long-term period within the area of economic reality and a changing environment. The act of mentor is done by each manager for his employees. Formal assessment of Nestle is done once a year on a standard basis. It gives feedback on past performance and future potential. Other related aspects concerning a staff member’s performance are provided feedback.Objective Evaluation of the Organization:Human resource managers should identifyhuman resource strategies like flexibledynamic employees are attracted, selected andthen trained and motivated to be moreproductive than the competition. Humanresource managers are not administratorsbut strategic partners.Inspire of being Human Company Nestle hasmost of the above mentioned qualities seen inthe managers of present time. The role of HRat Nestle is changing for certain factors. TheHR managers at Nestle focus on followingqualities along with professional skills andpractical experience: The HR managers should develop and motivate employees by addressing the issues that help others to improve in their work and their ability. The managers should be curious and broadminded and interested in other culture and lifestyles including continuous learning and sharing knowledge and ideas freely with others.Performance Management:The function of performance management is toensure the fulfillment of goals in an effectiveand efficient manner. Moreover, it watches
performance of organization and process ofproduction, employees etc.Performance Management at Nestle: Line managers and HR assess formally once in a year and get feedback. Subordinate managers can interrogate for an unfair evaluation. The HR department has enlisted specific key performance indicators. Remuneration structure and promotion criteria consider individual performance. HR staff must help the management in elaborating training programs. Sufficient training programs are developed at the level of every working company that capitalizes on the availability of local regional or global resources of the group. Some training programs improve the language skills of the employees. These programs also try to consolidate corporate cohesion as well as to promote networking throughout the group. They develop and share best practices of the different management disciplines practiced in the group. E-learning programs are alternative to formal training programs.Competency profile mapping: Competencies are accumulated by totalizing success factors important for obtaining good results in a particular job or in a particular company at nestle. Success factors are made up of knowledge, skills and attributes that are stated in case of particular behaviors and are exhibited by efficient performers in those works.
Attributes include personal characteristics, features, motives, values or ways of thinking affecting an individual’s behavior: Competencies in organization can be divided into two categories- 1. Personal functioning competencies that include broad success factors untied to a specific work function or industry. These competencies often notice leadership or emotional intelligence behavior. 2. Functional/Technical competenciesinvolve specific success factors within a givenwork function at nestle.Critical Analysis of HR Performance: The performance of an organization must be analyzed for the development. This analysis makes revaluation of existing strategy possible and easy to understand the faults so that organization can rectify them at once. Recruitment, training and development of employee’s caliber have been done with high standards. HR Management provides best working conditions with suitable growth opportunities. Employees must maintain rules and regulation of the country. HR Management keeps the record of the best performing employees and gives them opportunities for growth. It is clear that Nestle emphasizes onpersonal achievement and the pay structure HRhas planned for its employees and thecompany also mixes practices like JobEnrichment and Job enlargement, to motivateemployees and to break the monotony of theirJob tasks. An example of Job enlargement is
the correspondent who acts both in sales andbrand management department.Bibliography:www.nestle.comwww.scribd.comwww.wikipedia.com