Company name

Industry

: Nestle
: Food Processing

Headquarters

: Vevey, Switzerland

Company type

: Multinational Company

Key persons
Bulcke (CEO)

: Peter Brabeck-Letmathe (chairman), Paul

Products
breakfast cereals,
pet foods .

: Baby foods, coffee, dairy products,

confectionery, bottled water, ice cream,

Employees

: 3,28,000(2012)

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. The company grew significantly during
the First World War and again following the Second World War,
expanding its offerings beyond its early condensed milk and
infant formula products. The company has made a number of
corporate
acquisitions,
including Crosse
&
Blackwell in
1950, Findus in 1963, Libby's in 1971, Rowntree Mackintosh in
1988 and Gerber in 2007.
Nestl has a primary listing on the SIX Swiss Exchange and is a
constituent of the Swiss Market Index. It has a secondary listing
on Euronext. In 2011, Nestl was listed No. 1 in the Fortune
Global 500 as the world's most profitable corporation. With a

market capitalization of $ 200 billion, Nestl ranked No. 13 in

the FT Global2011.

Performance of Human Resource Management in Nestle:

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.
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 employees
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 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.
HRM Models:
The source approach to HRM gives importance
on an employee to be resourceful who increases performance
by using motivation, communication, leadership to increase
commitment and loyalty. The soft model considers that if
satisfaction is increased it will be the only way to go about in
the management against various estimated methods possibly
used in the hard model.
The Objective of HR /Manpower planning:
Manpower planning is done to balance and
develop the organizations ability to meet its goal by developing
Strategies that will contribute its optimum contribution of
human resource. The line manager and staff manager take the
responsibility of Manpower planning. The line management
gives the estimate of manpower requirements and staff
manager works on selection and recruitment related to line
manager to whom man power is vital.
Organizations HR Planning and development:

What the employee requires can be understood

by an effective mechanism called HR planning. HR planning can
manage the changes in the organization like growing decrease
in requirements of employees. HR planning implements new
recruitment and hold skilled and efficient staff by
understanding easily the needs of future
Training and development of Nestle:
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 longterm 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.
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.
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
individuals behavior:
Competencies in organization can be divided into two
categories1. 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 competencies involve specific
success factors within a given work 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 employees
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 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.
Bibliography:
www.nestle.com
www.scribd.com
www.wikipedia.com