Introduction Of The Company
I have chosen nestle company for analysis of their all human resource strategies Nestle is a food and beverages multinational company that operates in the worldwide. Nestle has a history of 135 years of continuous efforts and hardworking. Nestle says that their principle assets not include the buildings, brands or factories but they consider their capital asset to their employees. According to its revenue measurement it is the world largest food company. The head quarter of the Nestle is in Vavey, Switzerland (Nestle S.A, 2003). The products of the Nestle are related to the milk and nutrition, chocolates, beverages and confectioneries. Nestle promises its customer for the product of high quality, safe and standard. Most important part of their strategy is the human capacity development everywhere they operate. Their half of the factories is located in developing countries where they are providing the employment opportunity as well as many educational programs are conducted by them. Nestle always give priority to the long term development plans rather than short term plans.
Culture and Values at Nestlé
The cultural values of the company are given below (Nestle, 2013)
- Trust and respect for people is their main value
- Honesty and transparency while deals with people is their strong tool for good communication
- Diversity at work to produce innovative culture is found at Nestle.
- Proper feedback is taken from employees and gives them a feel of importance.
The most important part of the company is learning process. The first and foremost condition to be hired at nestle is willingness of learning. Training and coaching is the crucial part of the company.
Human Resource Management Strategy
For a company that is operating in so many countries it is necessary that it manages it human resources with great efficiency so that in return overall efficiency of the company will increase. Human resource management is the integral part of the management of a company. Human resource management means that the talent, ability and skills of the people are used properly to increase the work output at its maximum level. The most important competitive edge for a company is its human resource management. For this purpose it is necessary that the policies and strategies of the company must match with its HRM strategies. To meet the internal environmental challenges is not a big deal but the most crucial thing is to manage the external environmental challenges. Human resource management enables a company to deal its external environmental challenges efficiently (Price, 2011). Human resource management is seen as the strategic partner for the formulation as well as implementation of the strategies that involve training, appraisal, resource planning and rewarding.
Strategic Human Resource Management:
The environment is changing fast and in this rapid change environment can give a good competitive advantage to its competitors. This is called strategic management of HR. It actually links the strategic goals of the company with the human resource. Increased performance of the organization, better innovation, good organizational culture these are all the objectives of the
Strategic Human Resource Management
For the strategic human resource management process key factors include the business strategy, external as well as the internal environment (Mello, 2014). It involves four stages.
- Environmental scanning
- Estimation of human resource demand
- Analysis of human resource supply
- Development of plans to fill the gap that exist between the resource supply and demand
Environmental Scanning
Environmental scanning is the first step of the strategic human resource management that actually helps to identify the opportunities and threats (Mello, 2014).
Estimation of Human Resource Demand
In the second stage of strategic human resource management, forecasting of the future demand of employees is being done .it is seen that what kind of employment is needed and how many employees are needed for this organization. This is a time consuming and difficult task.
Analysis of the Human Resource Supply
In the third stage of strategic human resource management study of type and number of current employees is estimated. It is also analyzed that how much capable employees are located outside the organization. Also it is estimated that what type of training or education are required for the employees who are currently working in the organization (Mello, 2014)
Development of Plans to Fill the Gap That Exist Between the Resource Supply and Demand
In SHRM planning supply and demand for employees are analyzed and then compared so that it is determined that what kind of necessary actions will be required for this .in some market there is less labor than the organizational demand and somewhere vice versa. The main task oh HR manager is that they have to identify the gap and have to do proper planning to fill this gap of demand and supply of labor forces (Price, 2011). The human resource manager has skills and abilities as well as has ability to be an honest partner of his team. At nestle HR functions provide good administrative help and add more value to play an active role for every situation that demands HR action.
Strategic Management At Nestle
Nestle want to improve its business, list of consumers, sales and profit. Meanwhile nestle want to increase the standard of life for everyone and everywhere. Nestle considers its human capital as important asset because without the help of motivated and skilled employment nestle cannot achieve its objectives. Nestle listen the voice of its employees share their ideas and views and proper communication channel is provided to employees (Nestle S.A, 2003).
Legal and Regulatory Environment At Nestle
For the success of the company it is necessary that its legal and regulatory body make such policies that fir in the best interest of the company as well as in the best favor of employee also .the regulatory body of nestle company carefully examine, analyze and communicate developmental regulations and implement them in such a way that they can be seen in their strategies and they help to promote the efficient regulatory system according to the needs of organizational strategy. Nestle try to implement the laws and regulations that are seen in the best interest of its shareholders as well as for the society (Price, 2011). They also support the standards that are recognized internationally. Nestlé Company tries to avoid any discrimination through their measurements. For the convenience of the trade and for the consumers nestle try to support the reconciliation of environmental regulations (Nestle S.A, 2003).
Apprenticeship Programs At Nestle
Apprenticeship programs are the essential thing in nestle training procedures. It is been conducted since its foundation. Under these programs in developing countries students are given training while they are at their schools. At the end of these trainings many students are hired by the company. But it has a disadvantage that many other companies hire these trained students. In many areas these programs are started with the collaborations of schools. Currently 1115 apprentice of nestle are training around the whole world.
The Recruitment Process At Nestle
Recruitment means selection and training of the skilled manpower for the organization. Training of employees is also part of recruitment. People who have certain qualities like hard work, honesty, intelligence, dynamism and loyalty have greater opportunity to work with the reputed organizations. In nestle management level hiring is done in head office and for other posts in branches. There are also rule and regulations for promotion. Nestle always try to prefer the people who are well motivated to do work and sometimes hiring process is being done on institutional levels .interviews are conducted in different universities and colleges of the world and fresh candidates are hired from there. A proper way of recruitment is followed .job advertisement is given with full job description then interviews are held and after proper selection training courses Are offered to the newly hired people .people always feel happy and honored to work with this organization (Nestle S.A, 2003).
Local Training Programs At Nestle
Approximately two third employees of nestle work in nestle factories and most of them are given continuous training. Now a days local training is considered as the largest part of the nestle employees. It is the manager’s duty to ensure the proper and continuous training. Manager is sometime personally involved in coaching. There is offered a variety of programs. This type of training at Nestle helps them to produce such employees who are specialist in their fields and have sufficient experience of doing work. This on the job training proves a good pathway towards the career development. At nestle people are considered capital asset therefore they invest their money on people and in result they get best output level.
Nestle also offer many short courses for different employment level. As the world is becoming most information oriented, nestle offer many IT related courses. The company offers the employees to choose the course that is their need.
Employees Retention
Retention of the employees means that how much an organization has the ability to sustain its employees. For example if we say that the employee retention of a company is 85% it means that 85% employees of that company is remain in this company this year.
Employee retention can be increased by many ways .some of them is following.
Development of Career
Understanding of the path of career for employees is necessary and as well as the motivation for them is necessary. Employees can understand about their goals if proper coaching and training is provided them.
Motivating Employees of Different Age Group
At nestle all the work force belong to different generation level so the motivating plans for every age group people differ .so it is the management duty that how efficiently they examine the need of employees and try to motivate them by giving incentives.
Executive Coaching
It means that the training is given to the leadership level .it is very necessary for a company that proper channel is provided for their coaching.
Women Retention Plan
now the trend has been changed all over the world and women are mostly doing jobs at corporate level .so to maintain and improve the motivation level of women employees it is necessary that company should examine the need and type of incentives that they demand .it will decrease their turnover cost. By implanting the women retention plans employees will be more loyal towards the company and give their best potential to the company.
At nestle employee retention programs are planned and properly implemented so that their human capital give their best output and work according to the policies and strategies of the company .Nestle conduct the “stay” as well as the “exit” interviews. In these interviews feedback is taken from different employees and it is seen if a person is leaving the company then what are the reasons behind it and the current employees are interviewed to examine that what are the motivational things are here that they want to stay with this company.
Training And Developmental Plans For Company’s Management Team
For the prosperity of the company it is very necessary that proper training is provided to nestle management team .there are many programs that are held for the development of the management team. One of their programs is the international developmental programs in the department of the sale and marketing. They decided that they will provide the opportunity for the local graduates and promote the schemes that will help out the management to improve their skills and enhance their knowledge. Another program that is very important for nestle company is nestle group audit. The auditing services provide opportunity for their employees of senior management for their better understanding the operational controls and internal efficiencies. Nestle company also provide the opportunity for the people who belong from engineering background. Special coaching classes are given to them at different training centers. This training program lasts from 4 to 6 months. After the training session is over then employees are given their first long term assignments holding the period of one to three years .learning is a crucial part in the culture of nestle .at any level, each and every employee is aware about to enhance their skill and knowledge level to add more value to the company.
Compensation Strategy At Nestle
Nestle offers the attractive and competitive remuneration packages. Remuneration consists of salary as well as the social and other relevant benefits. Internal fairness requirement and external level of compensation is considered to establish a good compensation package. Nestle always try to give the remuneration package above the overall market average rate. Regular market surveys are made to know about the market current remuneration level. At nestle to provide the best compensations the salary structure is kept very simple and they always try to avoid any type of complexity.
Nestle give freedom to its employees that they can easily talk about their salary and wage matters with their managers. However nestle also know the fact that remuneration is not the only one tool for motivating the employees.
Strategy of Diversity in Its Employee Base at Nestle
For a successful business running diversity in workplace is very important .if heterogeneous people are grouped together for work purpose and provide them a healthy environment then the output will be mind-blowing. When people from different background have an opportunity to work together than the output will also be full of diversity. At nestle diversity is embraced openly. This help out the company to produce the innovative ideas. they inspire and effect the life of others by bringing people of different backgrounds and providing them healthy environment (Bassett, 2005). this diversity is the best competitive advantage of the nestle in the market place .nestle always welcome all the talent from different areas of the world and then polish them according to its business needs and objectives and finally this great talent is turned to unique human capital asset for them. Nestle use following five strategies for this workplace diversity.
Recognition
It is necessary for the company that it recognize the different talent of the world and then give them an opportunity to show their best. Nestle know the fact that the knowledge of individual will be helpful in its business
Fairness
Fairness at workplace actually means that nestle respect the people differences and accept them openly and treat them according to their background. It is not successful strategy that you treat all the employees in the same way whether it is necessary that people should be treated by accepting their cultural differences as well as their demographical differences. Nestle respect for its each and every employee feelings.
Employee Assessment
It is the foremost duty of the company that they regularly review about their employees. At nestle annual reports about the performance of employee is made. The managers at nestle examine the attitude of the employees and they notice that if there is not exist any discrimination amont all levels of employees. They identify any issue if exist among the employees and try to solve the problem.
Encourage Interaction
Nestle provide an opportunity to its employees that they work with each other and their interaction will increase. They mostly make the heterogeneous teams to encourage the people and try to give training of teamwork. Goals are given to such teams and as a result of their tasks employees learn to work within the team and better communication style is developed among employees.
Evaluation
It is concluded that due to its best human resource practices nestle hold position in the fortune five hundred companies. The company is continuously expanding its portfolio and earn name as the most nutrition food providing company. But it is most boycotted company due to some crimes on environmental regulations. Therefore it is necessary for the company that it should try to make this label off from its name. Overall evaluation of the company tells that due to strong HR practices it is worldwide trustworthy and renowned company.
Recommendation
- More incentives should be provided for the employees who are continuously working for more than 5 years.
- Consultation programs for employees should be introduced for understanding the company policies.
- Nestle should change its image about the perception that it commit many corporate crimes considering about their environmental practices.
- Nestle should pulled out its specific products that are not selling in some markets .it should not spent money on that products.
Conclusion
At nestle, there exist high motivational level, high job performance, high satisfactory level and high job involvement among the employees. This is all due to the fact that their human resource strategies are accordance with the objective and policies of the company. Good performance appraisal, effective training programs and good appraisal and remuneration system encouraged the employees to give their best output. Good strategic management is applied for the company.
References
- Bassett‐Jones, N. (2005). The paradox of diversity management, creativity and innovation. Creativity and innovation management, 14(2), 169-175.
- Mello, J. (2014). Strategic human resource management. Cengage Learning.
- Nestle. (2013). Annual Report.
- Nestlé S.A., Public Affairs. (2003). The Nestlé People Development Review. Zurich: Neidhart + Schön AG, Zurich, Switzerland
- Price, A. (2011). Human resource management. Cengage Learning.
