ACKNOWLEDGMENT

All the approbation and admiration is for Almighty Allah the most generous, gracious and
beneficent who is intact source of all the knowledge and wisdom endowed to mankind. All
the prayers are forever in the name of Almighty Allah, who helped us in setting goals and
objectives and blessed us to reach the destination. Without His assistance none is capable of
accomplishment.

We would be doing injustice without mentioning the name of the person who helped us
throughout the project. We think of it as our extreme pleasure to avail this opportunity to
express gratitude and deep sense of obligations to Prof.Hina Ali for her valuable and
unprecedented guidance, untiring help, kind behavior and moral support. So our special
thanks go to her.

Company name

: Nestle

Industry

: Food Processing

Website

: www.nestle.com

History:
Nestle was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in
1866 by brothers George Page and Charles Page, and Farine Lacte Henri Nestl, founded in
1866 by Henri Nestl. Nestle has been serving this world for over one hundred and
thirty years. I t h a s differentiated itself through its high quality product mix and
positioned i t s e l f a s h e a l t h a n d N u t r i t i o n C o mp a n y w h i l e targeting the health
conscious people throughout the world. Nestle started its operations in Pakistan
back in1 9 8 8 , b y a c q u i r i n g a d i a r y c o m p a n y M I L K PAK LTD , w h e n p e o p l e
o f P a k i s t a n actually needed it. Since Pakistan is the fifth worlds largest milk producing
country therefore nestle deals mainly in dairy products. Moreover it also sells juices,
chocolates, prepared f o o d l i k e n o o d l e s , b a b y f o o d , i n f a n t f o r m u l a m i l k
a n d b r e a k f a s t c e r e a l s i n Pakistan. N e s t l e i s a l o w c o s t l e a d e r w i t h i t s
e ff i c i e n t o p e r a t i o n s h e n c e i t p r o v i d e s i t s c u s t o m e r s w i t h h i g h q u a l i t y
p r o d u c t s a n d s e l l s t h e m a t a p r e m i u m p r i c e . Therefore it is earning good
profits. N e s t l h a s s e t i t s m a n u f a c t u r i n g p l a n t s a t i n K a r a c h i , L a h o r e a n d
I s l a m a b a d . Nestle, the largest FMCG Company is working all over the world with more
than 500 factories in 86 countries making up of most of the continents. Henri Nestle set up
Nestle in Switzerland. Customers are provided with more than 500 products by Nestle. Nestle
was entitled by Henri Nestle. The logo of the company consists of his family coat of arms,
the nest with a mother bird protecting her young. The symbol of the company is associated
with its care and attitude to lifelong nutrition. The Nestle nest bears the meaning of
nourishment, security and sense of family that are important to life. NESTL EVERYDAY
dairy tea whiter, made from pure fresh milk gives you that perfect rich taste that
only specialized milk can, so you can enjoy the same delicious cup of tea each
time! 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
Nestl Continuous Excellence journey, by providing its support and guidance in maintaining
employee engagement, people development processes and appropriate goal alignment. With a
mindset towards achieving sustainable excellence, a comprehensive learning programmed
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 program was well-received and laid foundations for a community dedicated to
drive the desired mindset to all levels within the organization. To facilitate our commitment
towards eradication of disparity, special initiatives were taken to align and improve the
employee benefits across the organization. Furthermore, our recognition program Maan
Hamara Tum Se continues to mature by becoming a major platform for recognizing
extraordinary achievements on a company-wide scale.

Nestle Mission Statement

Nestls mission, in the words of our founder Henri Nestl, is to: ...positively influence the
social environment in which we operate as responsible corporate citizens, with due regard for
those environmental standards and societal aspirations which improve quality of life. -Henri Nestl, 1857.

HR activities at Nestle:
Performance Appraisal: Setting work standards, assessing performance, and
providing feedback to employees to motivate, correct, and continue their
performance. 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 employees performance. Nestle use the graphic rating scale to
appraise its employees. 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,. Now a day they are competitive in market.

Performance Management:
The function of performance management is to ensure the fulfillment of
goals in an effective and efficient manner. Moreover, it watches performance of organization
and process of production, employees etc.

Performance Management at Nestle:

Line managers and HR assess formally once in a year and get feedback.
Subordinate managers can interrogate for an unfair evaluation.
The HR department has enlisted specific key performance indicators.
Remuneration structure and promotion criteria consider individual performance. HR
staff must help the management in elaborating training programs. Sufficient training
programs are developed at the level of every working company that capitalizes on the
availability of local regional or global resources of the group.
Some training programs improve the language skills of the employees. These
programs also try to consolidate 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.

Objective of the Organization HRM:

The protection of its employees is Nestle first priority because
employees are the asset of this company. To maintain the global corporate standard Nestle
focuses on the need for safe working environments. Nestle has resolved to provide a safe

working environment for all their employees, contractors and visitors and they are trying to
implement Health and safety practices and programs at all working places objectives of the
organization are
We provide a safe work place to owe employees.
We lessen risks of our employees and contractors and visitors and take care of their
injury or illness.
We meet all requirements like health, safety, legislative etc.
We establish and monitor new purposes to decrease work related injury or illness.
We develop an efficient injury management system which helps the affected
employees return to work.
We supply information, provide training to employees and contractors to make them
aware of their roles and responsibilities in decreasing the risk of work place injury or
illness.
We are encouraged a safety and Health management from our suppliers and
contractors.
We discuss on Health and safety matters with employees and other stakeholders.

Method of HRM at Nestle:

The Nestle group in the area of interpersonal relations and its
management style and the corporation values are stated as follows:
Their respect demands specific attitude that is worthy to be highlighted in the present policy.
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 and faith. There is not intolerance,
harassment or discrimination in the management and this principle is applied and maintained
at every stage and situation.
Nestle management does not work in complexity and they are honest in
behaving with customers and employees for excellent communication. The Nestle is
improving continuously for their sincerity in work, dialogue and transparency.

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.
Formal training programs are arranged with purpose of improving pertinent skills and
competencies. Besides, these programs perform individual development. As a result
one cannot get reward by attending programs.
Manager of Nestle measures progress which can be achieved by training programs.
The purpose behind this is to motivate employees by providing attractive but realistic

career that helps them develop their skills over a long-term period within the area of
economic reality and a changing environment.
The act of mentor is done by each manager for his employees.
Formal assessment of Nestle is done once a year on a standard basis. It gives feedback
on past performance and future potential. Other related aspects concerning a staff
members performance are provided feedback.

Objective Evaluation of the Organization:

Human resource managers should identify human resource strategies like
flexible dynamic employees are attracted, selected and then trained and motivated to be more
productive than the competition. Human resource managers are not administrators but
strategic partners.
Inspire of being Human Company Nestle has most of the above mentioned
qualities seen in the managers of present time. The role of HR at Nestle is changing for
certain factors. The HR managers at Nestle focus on following qualities along with
professional skills and practical experience:
The HR managers should develop and motivate employees by addressing the issues
that help others to improve in their work and their ability.
The managers should be curious and broadminded and interested in other culture and
lifestyles including continuous learning and sharing knowledge and ideas freely with
others.
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.