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2013

A.R.D.M MODEL
JAIN INDUSTRIES /NESTLE
ARDM in Human Resource Management refers to a model for operating managers to focus on four key human resource factors: A = Acquiring, R = Rewarding D = Developing and M = Maintaining.

Submitted by: For Jain Group


Poonam Gupta-12609190(A) Kunal Singh-12609191(R) Tanika Gupta-12609192(D) Palak goel-12609193(M)

Submitted to: Shubhagni Rathore

Jaypee Business School 1/1/2013

A.R.D.M MODEL JAIN GROUP OF INDUSTRIES

INTRODUCTION
Mr. Manoj Kumar Jain is the founder of "Jain Group.
The Jain Group of Industries is a customer focused Group, driven by technology, with a clear vision to become a dominant player in the verticals of Infrastructure, Steel, Power and Real Estate. The concept of firming up banner of Jain Group as a business conglomerate to reckon an d a common identification vanguard had emerged. Thus, final change of name took place in 2006 from Bengal Infrastructure Limited to Jain Infraprojects Limited, which stands out to be Flagship Company of the group and is a dominant road builder in Eastern part of the country with massive business expansion plan. Pursuant to the change of identity all present and future companies, be it public or private company will be incorporate with Jain as the prefix. Thereafter, the four main companies of the group are henceforth identified as under: Jain Infraprojects Limited Jain Steel and Power Projects Limited Jain Energy Projects Limited Jain Realty Projects Limited

Jain Group is a comparatively new corporate entity without any legacy, stain or identity crisis. It is a modern group with only few years of operation and that too in areas of high public exposure [road/bridges construction] in the eastern region. The group is very opportunely placed and positioned to take advantage of this public exposure and build a Corporate Image through exploitation of an appropriate media mix Core objective of the group is to be a dominant player in the infrastructure industry that extends to realty sector and consequential or obligatory involvement in hospitality and facility management. Initial thrust of the group was in road construction which is still the major revenue earner of the group. In the road construction contracts get mainly executed through Jain Infraprojects Limited [JIL]. A continuous quest for quality has helped it build an enviable reputation of a company which delivers every time. The group's businesses are supported by a nimble marketing and distribution network which keeps it close to its clients. A strong customer support enablement demonstrates long term commitment and responsibility. The Jain Group believes in growth through innovation, maintaining the highest standards of business ethics and social responsibility.

ACQUIRING
CORPORATE HR POLICY
The Recruitment Policy at Jain Group aims at enriching its talent pool by acquiring skills and functional expertise that strengthen its goal to become a Leader in its chosen verticals on the pivots of a set of committed, motivated and empowered employees.

OBJECTIVE
The objective of the Recruitment Policy is to source the best talent from Internal and External resources to achieve the Business Objectives and Goals of the Company.

INTERNAL RECRUITMENTS
SCOPE New vacancy Replacement Demobilization / transfer

RESPONSIBILITY Requirement identification SBU head/Operational Head/Project Head Demobilization /Transfer plan Concerned SBU head/Oprs. Head/Project head / Corporate HR New vacancy approval Corporate HR -> VCMD/CMD Identification of Interviewer Corporate HR. Other Activities in the process Corporate HR /Site HR

KEY POLICY-CLAUSE Internal vacancies shall be posted on MS Outlook and displayed on the Notice Boards. Eligible employees may apply for any vacancy. All applications shall be sent through CORPORATE HR HELP DESKe-mail at (info@jaingroup.co.in) Databank of potential candidates profiles shall be scanned, and Corporate HR will hand over these to the concerned Site HR/Ops. Head. In case of non-availability of suitable internal candidate(s), external sources shall be approached. The process of selection shall include (i) Panel interview (ii) competency matching and (iii) a skill test shall be administered. The decision of the panel shall be binding and final.

EXTERNAL RECRUITMENTS
OBJECTIVE To garner a proper blend of Skill & Knowledge and to ensure that balance is maintained in terms of the Age-mix, the Qualification-mix & the Skill-mix. SCOPE Final year students from the top 50 Engineering & Management Institutions scoring CGP of 6.5 or above. RESPONSIBILITY Requirement identification Vacancy approval Selection of Institutions Selection of Panel Selection method KEY POLICY-CLAUSE The Campus Visit(s) for recruitment shall be done in November-December each year. Corporate HR will initiate the Campus Recruitment with a Corporate Profile presentation followed by other selection process. Letter indicating the names of short listed candidates shall be handed over to the institution on the spot or a day after selection. The absorption of the GET, MT and DET shall take place only on successful completion of their final semester examination and strictly in accordance to companys policy. GET, MT and DET shall undergo a training period of ONE YEAR and on successful completion of the training period, they shall be absorbed in regular grades and the management will be within their rights to regularize such trainee without making it compulsory regularization. SBU head/Operational Head/Project Head Corporate HR -> VCMD / CMD Corporate HR Concerned HOD /Corporate HR Written test -> GD -> PI

LETTER OF INTENT(LOI)
SCOPE All candidates selected for employment with Jain Group. RESPONSIBILITY Corporate HR. KEY POLICY-CLAUSE Only Candidates who qualify for the Final Stage of selection shall be issued Letter of Intent (LOI) Corporate HR shall have a duplicate copy of the LOI duly signed by the candidate in acceptance of offer. Offer shall be VALID FOR A PERIOD AS STIPULATED.

REWARDING
OBJECTIVE
A rewards and recognition policy is designed to encourage employees to make a performance difference either individually or through teams. This is done to recognize positive behaviors that support individual or team goals and objectives, timely recognition to employees, to improve employee productivity & quality of work, improve customer service. This can be enjoyed by all the employees of the enterprise.

AWARD AMOUNT
KEY POLICY-CLAUSE The policy recognizes achievements or accomplishments that contribute to the overall objectives of the organization. Awards are provided in both monetary & non-monetary terms. Total of monetary and nonmonetary awards shall not exceed Rs. 5,000.00 per employee per fiscal year.

TYPES OF AWARDS
A MONETARY AWARDS Monetary awards shall include: Those paid by cash, items which can be easily converted into cash(such as gift certificates,SB,etc) NONMONETARY AWARDS Non-monetary recognition awards include: Non-refundable gift certificates, meals & trips, Trophies, certificates, merchandise, etc.

TYPES OF EMPLOYEE RECOGNITION


To insure both fair and consistent application of recognition, a core set of rewards and recognition programs have been developed. Additional recognition programs may be added as deemed appropriate. PLANNED EMPLOYEE RECOGNITION This approach is characterized by pre-arranged, more frequently scheduled ways of acknowledging contributions and accomplishments of an individual or team. It is less formal and provides more frequent opportunities to recognize employees.

Examples: i. Employee of the month award ii. Safety award iii. Customer service award iv. Public service award v. Productivity award vi. Outstanding achievements award IMMEDIATE EMPLOYEE RECOGNITION This approach provides employee rewards and recognition at any time for demonstration of behaviors and values of the organization, contributions to the goals and objectives of the organization or work unit and to acknowledge individual or team accomplishments. Examples: i. Teamwork award ii. Project Completion award iii. New or modified business practices award iv. Exemplary effort award v. Employee appreciation award

LEVELS OF EMPLOYEE REWARDS & RECOGNITION


There are three basis levels of employee rewards & recognition. These are based on the performance of the employees and the contribution given by them which proved beneficial to the enterprise. LEVEL - ONE To appreciate the performance of the employee for the first time. Up to 500 cash/non-cash LEVEL - TWO To appreciate and encourage the continuous good performance of an employee. Up to 3000 cash/non-cash. LEVEL - THREE To appreciate an employee for performance given in extraordinary situations which might rarely reappear. Industrial Tour with spouse.

DEVELOPING
GRADUATE ENGINEER TRAINEES & MANAGEMENT TRAINEES TRAINING SCHEME (NGTS-Next Generation Training Scheme)
OBJECTIVE NGTS have been formulated with a view to ensure full utilization of the inherent skills of the new entrants and provide them with comprehensive foundations needed for successful performance in the first job and in subsequent career progression.

GROWTH PATTERN & COMMON POLICY CLAUSE


a) Adequate emphasis shall be given on developing the essential knowledge and required to perform as a Front Line Manager, i.e. Knowledge in terms of: o Process Parameters o Setting and Maintaining Standards o Man Management o Line and Function Relationships Skills in terms of: o Investigation and Analysis o Problem Solving and Decision-Making o Preparing and Presenting a Case o Presentation & Report Writing b) The company has a system of Project Based Training (PBT) as a part of NGTS wherein each trainee is assigned a number of projects his/her core area of education as well as from other functions. Hands-On Training is also included in the curriculum with a view to strengthen technical base of the Trainees. c) Induction of Graduate Engineer Trainees (GET) & Management Trainees (MT) in company shall be done each year on the basis of requirement. d) They shall be trained within the company for a period of one year and the training shall include the subsections (INDUCTION & ON JOB TRAINING). e) The trainees shall be absorbed into regular grades based upon the Project presentations, personal interviews (by a panel comprising of Departmental Representative, Training Manager & HR representative) and assessment by the Project based Mentor. f) Trainees shall be absorbed into regular grades as under.

QUALIFICATION CA / CS / ICWA / ME / M Tech BE / B Tech /MBA BE + MBA / MBA / MCA

GRADE S-2 S -1 S -2

INDUCTION
KEY POLICY-CLAUSE The Trainees shall undergo the Induction training during the first week wherein they shall be given inputs about the group companies and orientation of various functions in respective place of posting. Second phase of training is departmental induction and lasts for one to two months as required. The Trainees shall undergo departmental orientation wherein they shall be associated with different departments on a rotational basis. They shall be associated with a mentor and are required to undertake an in-depth study of the departments. The trainees shall also undergo critical equipment training. Industrial tour to other companies is a part of this module (if required). Assessment of performance shall be done through project reports, presentations, report by the mentor & performance in tests.

ON-THE JOB TRAINING


KEY POLICY-CLAUSE This shall form the third phase of NGTS and shall last for the balance six months of the training period.

The trainees shall be allocated departments based on the generic branch of their study,
performance in the tests & counseling interview.

They shall then undertake project-based handson training in the respective department. COMPETENCY & SKILL DEVELOPMENT
OBJECTIVE The basic objective of competency and skill development is to ensure continuous development of skills and competencies of employees. SCOPE All regular employees including trainees.

INDENTIFICATION OF TRAINING NEEDS


KEY POLICY-CLAUSE Training needs are identified on an annual basis. For the employees in grades O - 2 & above, training needs are derived from the performance management system and assessment of Competencies through the Assessment Centre. For the Operation, Maintenance & Support Services Staff (O-1 & below Grades) the needs are projected by the Supervisors/ Controlling Officers through the Annual Appraisals. Assessments of Skills are also done annually to ascertain the skill gaps. Over and above that there are organizational interventions like Multi-skill wherein the Supervisor identifies the skills that need to be learnt by the employee in order to form multi-functional workgroups. The company also has organizational initiatives wherein the target population is identified for the purpose of each initiative and the same is included in their training need.

ASSIMILATION OF TRAINING NEEDS & DRAFTING THE ANNUAL TRAINING PLAN


KEY POLICY-CLAUSE Projected needs are assimilated and groups are formed on the basis of level, function, skill / competency, initiative, etc. and an annual training plan is drawn accordingly. This plan contains the dates for each program, venue, target population, number of participants per program, Training Hours per program, Faculty for the program, etc. (Training Calendar)

CONDUCTING TRAINING PROGRAM


KEY POLICY-CLAUSE Faculty is identified for each program from Internal Sources, External Sources or Experts in respective fields. Employees are nominated for program / seminars/ workshops/ visits conducted by leading institutions or professional bodies. Study of effectiveness of training is done every 3 months wherein the trained personnel as well as the respective supervisor respond about the benefits accrued out of the training in terms of skill/ competency up gradation and the resultant tangible/ intangible benefits. Skill / Competency assessment is also done to measure the effectiveness of training imparted. Retraining is imparted to an employee if after assessment it is found that his/her skill or competency level has not improved to the benchmarked standards.

MAINTAINING
Human resources are very important for an organization. So while acquiring, rewarding and maintaining them, HR department should also take care of their maintenance and protection. The survival of human resource is must for any organization. If this is not maintained the organization has to bear huge losses. So the Jain Group of Industries had maintained various policies because of which one employee does not leave his/her job. They are discussed below: OBJECTIVE Facilitate people to build a congenial working environment, strive for continuous improvement in upgrading the competencies of employees through focused initiatives and facilitate people towards a multi skilled and multi-tasking approach. EMPLOYEE ENGAGEMENT Ensuring fair Recruitment, enhanced Performance, Promotions, and improved Quality of Life for employees and their family members. Ensuring care for each other, Transparency & Trust with focus on institutionalizing the collective Initiatives of all. Ensuring Job Rotation, Job Enrichment, Training and Re-training, Career & Succession Planning, across the hierarchy. Enabling each employee to develop to his or her full potential with a shared sense of direction with a well-defined accountability and responsibility. Enabling each employee to evolve into self-starter Team Leader and meet the fast changing business environment and maintain a competitive edge Provide residential accommodation to the regular Employees. GM & above are eligible for mobile connection, while for others, this shall be need based with due approval of respective HOD. Provide better Health & Quality of Life to individuals working with the Company and their immediate family members. MEDICAL FACILITY: All Employees, Trainees and Contract persons working at Project site who come across any minor or major Injury on Work. PROMOTION: To integrate growth opportunities, motivate employees for better performance and ensure continuity in managerial positions. LOAN & ADVANCE POLICY: To impart welfare through providing financial assistance to the employees. SUGGESTION SCHEME (STAR IDEAS):

To provide innovative thinking for work life improvement To encourage and recognize employee creativity To provide scope to participate in the development and growth of company. Through this policy the innovative and creative skills of the employees will be recognized on a daily basis. A special certificate will be awarded to the employees whose suggestions and recommendations make significant difference on the various areas.

DISCRIMINATION &HARASSMENT POLICY The company shall be committed to providing and maintaining an open, positive work environment, which is free from any discrimination or harassment. a. All employees must be treated with respect, dignity, and courtesy. b. There shall be no discrimination or harassment against any person on the grounds of race, color, religion, national origin, disability, age, sex, marital status, sexual orientation or citizenship. c. Any discriminatory action against full time employees, contractual employees, clients, or vendors shall be met with disciplinary action. d. Every complaint shall be promptly and thoroughly investigated and confidentiality is maintained as far as the situation would permits. MAINTENANCE OF POSITIVE DISCIPLINE IN THE COMPANY: To establish a transparent system for maintaining positive conduct &discipline amongst the employees in the Company following the Principles ofNatural Justice OFFICE INFRASTRUCTURE: The objective of Office Infrastructure Policy is to provide ergonomic infrastructure facilities so that the desired output can be obtained. SAFETY: The objective of Safety Policy is to promote safety and better working culture& conditions and to make Safety a way of life in the organization. COMMUNICATION: In case employees have any queries or doubts on a matter they intend tocirculate or post, they are advised to discuss the same with the Corporate Communication at HO. HIV AIDS Policy for Industry: To build positive and supportive attitudes towards those infected and promote health and safety amongst the employees. a. The company will provide a safe and healthy work environment for employees. b. The company will educate its employees and the family on prevention, care and counseling of HIV / AIDS. c. The company will educate its employees on safe blood, blood donation and transfusion.

Nestle
Nestl's relationship with India dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. After India's independence in 1947, the economic policies of the Indian Government emphasized the need for local production. Nestl responded to India's aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the milk economy. Progress in Moga required the introduction of Nestl's Agricultural Services to educate advice and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestl set up milk collection centers that would not only ensure prompt collection and pay fair prices, but also instill amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well. Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the Nestl Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices. Nestl India manufactures products of truly international quality under internationally famous brand names such as NESCAF, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Dahi and NESTL Jeera Raita. Nestl India is a responsible organisation and facilitates initiatives that help to improve the quality of life in the communities where it operates.

SWOT ANALYSIS

Highly diversified company with wide business interests Relationship sharing with India for over 9 decades which adds up to a sense of loyalty

Not responding effectively to changing market conditions Entering into markets which are already mature

Nestle is entering into markets that are already mature Immense competition may dent the image of the company if it does not fight back

Health based products are becoming more popular in the world Being the market leader , it can reap the benifits out of this budding trend

ACQUIRING
The long-term success of the Company depends on its capacity to attract, retain and develop employees able to ensure its growth on a continuing basis. The Nestl policy is: To hire staff with personal attitudes and professional skills enabling them to develop a long-term relationship with the Company. Each new member joining Nestl is to become a participant in developing a sustainable quality culture which implies a commitment to the organization. Special attention will be paid to the matching between a candidates values and the Company culture. Hence, a clear communication of these principles and values from the very beginning of the recruitment process is required. Nestl wishes to maintain and develop its reputation as an employer of high repute. Contacts with universities, attendance at recruitment events and other contacts are to be undertaken so as to ensure good visibility of the Company vis--vis relevant recruitment sources. Particular care will be given to the treatment of each candidate regardless of the outcome of the selection process. Even when promoting employees within the organisation, it is the role of management and HR to keep an eye on valuable candidates from outside and to benchmark internal skills with external offers. Whilst adequate recruitment tools may improve the hiring process, to hire a candidate remains in the hands of the responsible manager supported by the HR staff. Under no circumstances should the decision to hire or not to hire be left in the hands of an outside consultant or expert. According to the Nestl Management and Leadership Principles, only relevant skills and experience will be considered in employing a person. No consideration will be given to a candidates origin, nationality, religion, race, gender or age. It is as important to hire the right person as it is to integrate newcomers in the organisation so that their skills and behavior can merge smoothly with the company culture. Whereas from new employees it is expected to respect our companys culture, it is accordingly required from all employees to show an open mind towards new ideas and proposals coming from outside.

EMPLOYMENT AT NESTL
The Corporate Business Principles outline The Companys commitment to fully endorse and to respect a series of principles and international conventions concerning employees rights, the protection of children against child labor and other important issues. These principles are to be respected everywhere and under all circumstances. The management will implement the necessary processes to ensure that these principles are enforced at all levels. Employees who are not abiding with the Corporate Business Principles and the Nestl Management and Leadership Principles cannot be maintained in employment and will be requested to leave the organisation. Also our main suppliers and providers of outsourced services should be informed of the Corporate Business Principles and should comply with those. Nestl provides a working environment which protects the health and welfare of the employees according to the highest affordable standards of safety, hygiene and security. Each employee should not only care for her/his own safety but also that of her/his colleagues. Suggestions for improvement are welcome. No discrimination for reason of origin, nationality, religion, race, gender or age will be tolerated when joining Nestl; no such discrimination will be tolerated towards Nestls employees. Any form of harassment, moral or sexual, will not only be prohibited but actively tracked and eliminated. Internal rules and regulations will explicitly deal with discrimination and harassment issues so as to obtain the best possible prevention. Nestl considers that it is not enough to avoid discrimination or harassment. It is essential to build a relationship based on trust and respect of employees at all levels. Therefore, it is indispensable for each manager to know how her/his employees feel in their work. In larger units it may be necessary to organize such feedback on a regular basis, using internal surveys or other valuable approaches.

REWARDING
Nestls appeal to new and existing people doesnt just rest on the financial rewards and benefits we offer. Their name conveys hard-earned value and trust in all their people. They pride themselves on their strong relationships between line managers and fellow workers. They offer a global, diverse and enriching environment. And they have countless possibilities to learn and grow. Naturally, their Total Rewards arent standardized around the world. They vary between their Markets, reflecting differing candidate aspirations and variations in what their employees value across the globe. Their Total Rewards Policy is designed to give both the business and their people a clear understanding of Total Rewards and the principles behind them. These guiding principles are:

Provide a globally consistent framework with the flexibility for each Market to create competitive programmes that comply with local legislation. Focus on attracting and retaining talented employees, building a high-performance culture and ensuring a highly engaged workforce that achieves sustainable business results.

Although there are variations between Markets in what employees value, there are also some common elements:

Fixed Pay Variable Pay Benefits Personal Growth & Development

Learning is part of the Company culture. Each employee, at all levels, is conscious of the need to upgrade continuously her/his knowledge and skills. The willingness to learn is therefore a non-negotiable condition to be employed by Nestl. First and foremost, training is done on-the-job. When formal training programs are organized they should be purpose oriented and designed to improve relevant skills and competencies. Therefore they are proposed in the framework of individual development programs. As a consequence, attending a program should never be considered as a reward. Adequate training programs are developed at the level of each operating company capitalizing on the availability of local, regional or

global resources of the Group. It is the responsibility of HR staff to assist the management in the elaboration of training programs. At Nestl we believe that the employees private and professional life should have a good balance. Not only because it reinforces employees satisfaction, loyalty and enhances productivity but also because it positively reflects on the Companys reputation. It helps attracting and retaining people and reconciles economical imperatives with well-being. Nestl is willing to support employees who wish to take an active part in the life of the community or by assuming responsibilities in professional, civic, cultural, religious or voluntary organizations it being understood that any activity during working hours be first approved by the Company. In the same spirit, Nestl encourages flexible working conditions whenever possible and encourages its employees to have interests and motivations outside work. We expect all our people to understand the specific characteristics of Total Rewards and how they are established and maintained throughout the Group. Our Total Rewards Policy aims to build this knowledge and to explain how Nestl is committed to giving each employee the opportunity to grow, evolve and contribute. Nestls policy is to strive to position it as an employer offering remuneration levels above the average of the relevant benchmark. Nestl reviews regularly its competitive position with other companies so as to keep in line with the market trends. However, the evolution of remuneration is in the first instance determined by the capacity of the Company to improve its productivity. Wage and salary structures should be kept simple and avoid unnecessary complexity so as to provide effective compensation and reward. Remuneration structures should specifically facilitate the implementation of flat organizational structures and be flexible so as to be able to adapt to the evolution of the market conditions. This means broad spans allowing sufficient flexibility to effectively reward high professional insight and performances as well as individual potential.

DEVELOPING
Training programs organized at the International Training Centre Rive-Reine aim at developing and sharing best practices of the various management disciplines practiced in the Group. They also strive to strengthen corporate cohesion as well as to promote networking throughout the Group. Learning is part of the Company culture. Each employee, at all levels, is conscious of the need to upgrade continuously her/his knowledge and skills. The willingness to learn is therefore a non-negotiable condition to be employed by Nestl. First and foremost, training is done on-the-job. Guiding and coaching is part of the responsibility of each manager and it is crucial to make each one progress in her/his position. When formal training programs are organized they should be purpose oriented and designed to improve relevant skills and competencies. Therefore they are proposed in the framework of individual development programs. As a consequence, attending a program should never be considered as a reward. It is necessary to make optimal use of e-learning programs as a complement to or a substitute for formal training programs. According to needs they should be made available at shop floor level and enlarge the access to training. It is the role of each manager to assess progress achieved as a result of training programs. Each employee is in charge of her/his own professional development. However, the Company endeavors to offer the opportunity to progress for those having the determination and the potential to develop their capabilities. The objective is to retain and motivate employees by offering attractive but realistic career moves allowing them to develop their skills over a long-term period within the framework of economic reality and a changing environment. Regular counseling and guidance are the best tools for improving performance and for helping people develop their skills. It also allows to correct errors swiftly and to transform them into a positive learning experience. In an organisation with flat structures this supports better delegation. Direct personal contact should always been given preference over written communication whenever possible. Efficient performance management emphasizing the achievement of agreed objectives is a prime responsibility for each manager. The necessary time should be dedicated to the monitoring and the follow-up of the progressive achievement of objectives during the year. This feedback is meant to stimulate performance and should take place through an open dialogue based on mutual trust and willingness to progress. It is requested to provide written evidence of such meetings. Focus should be

essentially on continuous improvement, appropriate training measures but also on shaping a stimulating working environment. In case of serious underperformance, a termination of employment should be envisaged. Such termination should be handled with due respect of the person and should include, where appropriate, separation terms that take into account the employees personal situation. When assessing potential it should be kept in mind that the best indicator of talent is achievement. Therefore responsibility should be given as early as reasonable to allow people to prove them. Candidates for managerial positions should clearly have demonstrated their willingness and ability to apply the Nestl Management and Leadership Principles. International experience and participation in group development initiatives such as GLOBE, SMPT and others can be acquired in all countries of the Group and are a requirement for holding high-level positions. The development of expertise in specific areas of competence is determinant for the Companys success. Therefore job rotation should be practiced with caution. Whilst job rotation might be useful under certain circumstances, it should not result in weakening our expertise in key areas.

MAINTAINING AND PROTECTING


Learning has always been a part of Nestle and that is why all the employees who are interested and show a sense of willingness are trained on-the-job with the help of proper guidance and coaching. This training program helps one improve relevant skills and competencies and is completely purpose oriented and that is the reason that they are proposed in the framework of individual development program. Sharing of best management practices of various disciplines helps the company to strengthen the corporate cohesion. The company also provides e-learning programs which is available at the shop floor level to enhance their level of training. Going with the traditions of the company, the company initiates an open dialogue to express the objectives and expectations of the employees. The main objective is to retain and motivate and develop their skills over a long-period within the framework of economic reality and changing environment. Coresponsibility, counseling and guidance provided by the company transform the employees attitude into a positive learning experience. A formal assessment is carried out once a year and this is based on facts and not opinions. Efficient performance management and monitoring is a must at Nestle for progressive achievement of objectives during the year. Feedback through open dialogue leads to continuous improvement. In case of serious under performance, a termination of employment is envisaged. The best indicator of talent is the potential of ones that drives him/her to achieve for what they have come for. For keeping alive the enthusiasm, the company regularly changes the jobs within the department and also changes the location of various employees. Nestle also focuses on collective bargaining and helps in maintaining a level of competitiveness. It is prerogative for various stakeholders to understand the business model and goals of Nestle.