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SUBMITTED TO:

MS. HAIDA
SUBMITTED BY:

SARA NAEEM (345) AQSA ASMAT (313) HIRA TAHIR (327)

BBA -5 DEPARTMENT OF MANAGEMENT SCIENCES LAHORE COLLEGE FOR WOMEN UNIVERSITY

CKNOWLEDGEMENTS

Praise is to Allah Almighty, the one testing us all at all times and making decisions about what we dont know and cant know. Writing this report appeared to be a great experience to us. It added a lot to our knowledge while we were working on this report. If we say that this project is one of our memorable experiences in student life, then it would not be wrong as this was our first experience in life of visiting an organization. Moreover, this project also enabled us to see how the theoretical concepts learnt in class through course books are practically being implemented in organizations. We owe profound gratitude to our subject teacher Ms. Haida Ali for stimulating our creative abilities by assigning this project to us. Whatever we have learnt from her and this project has put indelible impression on our mind. We are immensely obliged to all our fellow students who guided us in making this report, without whose considerate attention and interest, it would be difficult for us to complete this report on time. We, being the members of our group, also thank one another for contributing the best in this group project without any conflicts and with great cooperation. It is our conviction that this learning experience will always be a source of help in our practical life and professional career.

Visit to an organization
Organization visited:

Venue:
Date January 20, 2012 (Friday)

Time 10: 00am - 12:00pm Place 308 Upper Mall, Lahore, Pakistan

Interviewee:
Munir Ahmad Chughtai Corporate Administration Manager

Interviewers:
Aqsa Asmat (313) HiraTahir (327) Sara Naeem (345)

Purpose of the visit:


The main objective of this visit is to access the functions of human resource department and to understand the practical implementation of the concepts that have studied during the course. We have visited the organization to collect data required for our project by conducting a structured interview of the corporate administration manager.

TABLE OF CONTENTS
THE STORY ................................................................................................................ 1

CURRENT HUMAN RESOURCE POLICY .......................................................................................................... 4 JOB ANALYSIS: ............................................................................................................................................... 5 JOB DESIGN: .................................................................................................................................................. 5 ALTERNATIVE WORK SCHEDULES AND ARRANGEMENTS: ........................................................................... 6 RECRUITMENT:.............................................................................................................................................. 6 SELECTION PROCESS: .................................................................................................................................... 8 ORIENTATION:............................................................................................................................................... 9 TRAINING METHODS: .................................................................................................................................... 9 CAREER DEVELOPMENT: ............................................................................................................................. 10 PERFORMANCE APPRAISAL METHOD: ........................................................................................................ 10 BENEFITS AND REWARDS:........................................................................................................................... 11 EMPLOYEE SAFETY: ..................................................................................................................................... 12 DISCIPLINARY ACTIONS: .............................................................................................................................. 13

THE

STORY

More than just offering food and beverages, Nestl Pakistan is a leading health, wellness and nutrition company. We believe that good food is necessary for a good life. Food has evolved from being a necessity to becoming an expression of how we live. This is why Nestl Pakistan products are developed to provide a safe and healthy source of nutrition to all family members. Our story begins in 1867, when Henri Nestl developed a baby formula that saved a child's life and marked the beginning of Nestl's decades-old commitment to nutrition. In the 140 years since then, we have expanded around the world and developed a range of products designed to suit every taste, need and cultural preference. Our distinctive seal is recognized everywhere as a guarantee of quality and healthfulness. Nutrition, quality and convenience remain the keystones of our products and even as we confront the new century's challenges, we feel it is our duty to adapt to the changing needs of our consumers. Nestl has been serving Pakistani consumers since 1988, when our parent company, the Switzerland-based Nestl SA, first acquired a share in Milkpak Ltd. Today we are fully integrated in Pakistani life, and are recognized as producers of safe, nutritious and tasty food, and leaders in developing and uplifting the communities in which we operate. We at Nestl Pakistan ensure that our products are made available to consumers wherever in the country they might be. Convenience is at the heart of the Nestl philosophy, and our aim is to bring products to people's doorsteps.

PROFILE
Subsidiary of Nestl S.A. came in Pakistan in 1988. Head office and registered office in Lahore. Registered in both Lahore & Karachi Stock exchanges One among the top 25 companies of both stock exchanges. Started with Sheikhupura production plant. Leader of consumer market currently. Company has more than 37 brands in 87 different stock keeping units. More than 2500 employees are in factories and offices. Sales for the first half of 2007 were Rs.14 Billion, recording a growth of +25% More than 65% market share

Nestl factories in Pakistan


Sheikhupura Factory Kabirwala Factory Islamabad Factory Two Factories in Karachi

Ten regional offices in all over Pakistan


Karachi Hyderabad Lahore Gujranwala Quetta Peshawar Sukhur Faisalabad Multan Islamabad

Registered and Corporate office is in Lahore.


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Nestl Vision Statement

The Nestl global vision is to be the leading health, wellness and Nutrition Company in the world. Nestl Pakistan subscribes fully to this vision, and of being the number one health, wellness and Nutrition Company in Pakistan.

Nestl Mission Statement

Dedicated to providing the best food to the people, throughout their day, throughout their lives, throughout the world

CURRENT HUMAN RESOURCE POLICY


Our project content is based on the Human Resource policies in Nestle Pakistan Limited. Here is the main part of Nestls human resource policy according to its latest Corporate Business Principles: The Companys business practices are designed to: Establish staff relations based on trust, integrity and honesty Maintain respect for basic human values, attitudes and behavior Respect employees privacy Comply with applicable data protection regulations and apply Nestl standards in those countries where specific legislation is not yet in place Promote a sense of integrity among all employees all over the world, and apply a number of common rules while at the same time adapting the expression of these rules to local customs and traditions Respect the right of employees to form representative organizations and to join or not to join trade unions, provided this right is freely exercised, and establish a constructive dialogue with these unions

Refrain from any action restricting the employees right to be, or not to be, affiliated to a union Treat every employee with respect and dignity, and not tolerate any form of harassment or abuse mobbing,

Forbid the use of forced labor or involuntary prison labor

JOB ANALYSIS:
In Nestle Pakistan Limited, Remuneration manager analysis all jobs and frames out job profile of each job. Remuneration manager along with the line manager and one or two more persons from HR department collectively make efforts to analyze a particular job and its requirements in a great depth. Nestl makes use of an International measurement tool used widely in all Nestls organizations. This tool measures activities depending on whether the jobs are managerial or non-managerial in nature in order to classify various jobs into distinct categories. After the jobs being analyzed, the results of the analysis are communicated to the high ups in a written detailed report presented in a form of job description and job specification. Nestle believes in continuous process improvement therefore the job analysis process is conducted frequently i.e. 5 or 6 times in a year. The people involved in the process of analyzing the jobs dont face any potential problems during the process; rather they confront certain challenges which they immediately try to overcome. Nestls huge HR department is well organized having a complete setup. They also acquire the services of HR generalist and HR specialist to utilize their professional expertise in different HR related issues.

JOB DESIGN:
In Nestle Pakistan Limited, Line manager is responsible for designing all the jobs. Line manager, while designing jobs also considers the mental and psychological impacts of the physical work environment that can have negative effect on employees health and job performance. A very good physical office environment is provided, as the company has significantly large revenues, it has undertaken a lot of investment in its buildings, furnishings, decorations etc. Low turnover rate indicates good employee satisfaction. Appropriate safety measures are taken
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particularly in the manufacturing area or plant to make the working area safe, sound, secure and comfortable. Healthy working environment is ensured for each employee. For this purpose, risk assessment of work environment is done to analyze its feasibility for the employees. On asking about job scope and job depth of Nestls employees, the interviewee Munir Chughtai described that our result-oriented organizational structure ensures effective communication and empowered self-management. He said that we intend to offer high job depth even when certain job is low in scope. Employees are being directed towards achieving their goals by providing them a road map or pathway and companys policy that describes them how certain goals have to be met. Then this is up to them how they do it. So, MBO (Management by objectives) is practiced widely. Employees have the freedom to plan and organize their work in any way they like. Besides offering the greater job depth, Nestle also tries to widen the scope of its employees through multitasking. This enables jobholder to engage in variety of tasks other than the routine work activities.

ALTERNATIVE WORK SCHEDULES AND ARRANGEMENTS:


We have decided to facilitate our employees in all branches by introducing flextime in near future said Munir Chughtai. At present, Nestls HR department is working on providing the working schedule of flexible working hours (flextime) to its managerial employees. Under this work schedule, employees would have to be at their work during the core period defined by the company i.e. 9:00 am- 3:00 pm whereas the remaining work hours would be flexible for employees. Employees at plant or labor involved in production process are excluded from this schedule because they have to follow 8 hours work shifts. The company, like some other multinationals also offers flexible hours during the month of Ramadan.

RECRUITMENT:
Nestle Pakistan is considered one of the best employers in the country. The company is seen as the No. 1 career destination for talented, motivated and ambitious professionals. HR is dedicated to their employees, and ensures that they have all the right people with the right skills, in the right places at the right time.

Nestle Pakistan offer career opportunities based upon merit, irrespective of color, age, national origin, religion, gender, disability, veteran status, or any other protected class as defined by local law. So, Nestle Pakistan is undoubtedly an equal opportunity employer. A need for a new employee is communicated to the HR department by sending a requisition form signed by the departmental head along with job description. When HR department came to know about any vacancy in certain companys department, it tries to fill it immediately on the basis of human resource succession planning that has been done for the next 5 or 6 years in advance on the basis of job descriptions, job catalog and the available personnel records. This recruitment plan is made by operating manger of each department in order to meet the future human resource needs of the company and is reviewed every year. Nestle Pakistan has a very selective and vigorous recruitment process. Its total hiring per year is usually below 20 - 30 people (for management positions). The first priority for filling vacancies is from existing staff i.e. internal recruitment is preferred over external hiring. Turnover rate at Nestle is very low, so most employees are long term. The interviewee too has been serving the company for 24 years. Hence it is easy to find someone with 10 to 15years of work experience in the company to fill a higher position. Nestle also hires fresh graduates through its management trainee program by utilizing the method of campus recruitment. Only applicants from top colleges and universities i.e. LUMS, IBA, GIKI and foreign universities are entertained. These trainees are also offered high salary brackets, usually above Rs. 30, 000. Besides campus recruiting, company also uses external recruitment methods like internet recruitment in which CVs and job applications are accepted online. Company also gives advertisements of job vacancies in leading newspapers of the country in order to invite desirable persons to fill a particular position. Nestle Pakistan offers wide variety of career opportunities for university and MBA students and graduates from many backgrounds for example in the sciences, economics or marketing. Nestl is often cited as one of the top favorite companies to work for. One reason is that wherever you start work at Nestl, the whole world is opened up for you. Its not uncommon to work in as many as four or five different countries during the course of a career at Nestl. In some ways theres no such thing as a single career. The diversity of disciplines gives people the chance to pursue many different careers. To name a few among dozens: research chemist, cook in the testing kitchens, consumer services manager, brand manager, manager in investor relations or human resources, auditor, productivity consultant, and many more. People not only move from country to country, often with a spell in Head Office as well, but also between disciplines. Thats one reason why so many people make a career for life at Nestl. Another is that they make a point of home-growing their own management, thereby providing more opportunities for advancement.
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The company due to its excellent repute and well established name dont offer certain types of inducements in job advertisements in order to attract people because Nestls name itself is a most attractive feature of the advertisements.

SELECTION PROCESS:
The process of interviewing and evaluating candidates for a specific job and selecting an individual for employment based on certain criteria. Employee selection can range from a very simple process to a very complicated process depending on the firm hiring and the position. Certain employment laws such as anti-discrimination laws must be obeyed during employee selection. The role of HR department is to define a selection process. Basically, HR department streamlines the entire process. NESTLES OBJECTIVE OF SELECTION PROCESS: The objective of selection process in nestle is to choose the individual who can successfully perform the job from the pool of qualified candidate. Job analysis, Human Resource planning and recruitment are necessary prerequisites to the selection process. THE CRITERIA TO SELECTING THE EMPLOYEES: Munir Chughtai, HR manager nestle says that, Entry in nestle is quiet challenging Nestle mostly selects the students of LUMS and PUNJAB UNIVERSITY as the employees in their organization and the toppers of other universities. There are a certain criteria for selecting the employees like, according to the job description and job profile it conducts the verbal interviews. In addition to the verbal interviews it also conducts some in-writing tests. The international tool nestle got to select the employees is their scores and the topper of the universities. Department heads of nestle interviews the candidates and they mark them independently again after the interviews. It also conducts follow-up interviews to supplement the information obtained in other steps of the selection process to check the suitability of the applicants for the specific opening. Both structured and unstructured interviews are used in the selection process depending on the job. The average age of the candidates must be 35.Nestle circulates the employees in every department for two years. It gives a chance to new employees to prove themselves in every department. Reference checking system in the selection process, is not that strong in Nestle, it depends on the need of the organization. During the selection process the organization also conducts the physical examination of the individual who is offered the job. The exam is given to determine not only the

applicant is physical capable of performing the job but also his eligibility for the group life, health, and disability insurance. For this purpose different medical tests are used.

ORIENTATION:
An introductory stage in the process of new employee assimilation, and a part of his or her continuous socialization process in an organization. Major objectives of orientation are to (1) gain employee commitment, (2) reduce his or her anxiety, (3) help him or her understand organization's expectations, and (4) convey what he or she can expect from the job and the organization. It is commonly followed by training tailored to specific job positions. See also acculturation and company orientation. HR Manager Munir Chughtai told, that I had dinner with the new employees last night, the purpose was to introduce them to their department while all the business heads were present there. The length and timings of the orientation program in Nestle depends on the size of group of the new employees. Orientation is conducted at least once a week. For the sake of evaluation of the orientation, the company doesnt go in depth. It just takes an overview of the orientation program by asking questions from the newly hired employees.

TRAINING METHODS:
Educational preparation for performing a job that is typically provided to staff by the business that has recently hired them before they become active in service to the company. Employee training is increasingly required to assist the work force in using modern techniques, tools, strategies and materials in their jobs. Mr. Munir Chughtai quotes: We are famous for our learning Initial training can have a significant influence on the new employees productivity and attitude towards his job. Training is a continuous process in Nestl. It gives different types of trainings to its employees depending on the job profile. Different types of training methods are used here. 1. On job training 2. Cross functional 3. Classroom training 70% 20% 10%

The training program is evaluated by getting the feedback from the employees. For this purpose feedback form is filled by the employees before and after the training.

CAREER DEVELOPMENT:
In simple terms it means 'Providing employees an opportunity to grow', especially to those employees who deliver performance. Growth means, to an employee, one or more of the following: 1. Climbing up the ladder in the organizational hierarchy. 2. On-going increase in remuneration. 3. Acquiring higher level skills & competencies. 4. Occupying higher level Job positions. 5. Having an opportunity to avail of some exclusive benefits (perks & privileges). According to Mr. Munir Chughtai, Career development is not a mere management responsibility. It is a composite organizational process which involves people, addresses their ambitions, assigns them roles & responsibilities commensurate with their potential, evaluates their performance, and creates Job positions to accommodate growth ambitions of employees. Career development is an important responsibility of nestle towards its employees. It provides different career opportunities to its employees. Managers of nestle plays an important role in facilitating their subordinates career. It asses the employees from performance appraisals and assessment Centre then implementS the career development.

PERFORMANCE APPRAISAL METHOD:


Performance appraisal is very important as it measures output. And Measurement is important for the growth of anything. So you need to measure and how you measure, thats very important. says Munir Chughtai while elaborating the importance of performance appraisal system. The appraisal method used in Nestl is unique in its own way. Remuneration manager analysis all jobs and frames out job profile of each job. Nestl makes use of an International measurement tool used widely in all Nestl organizations. This tool measures activities depending on whether the jobs are managerial or non-managerial in nature. We focus on calibration. Nestle maintains a standard and makes sure that each employee learnS to reach the highest standards that they surely are capable of. Nestl has now come to a point where it measures it not
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only measure activities but also identifies and measures behaviors of employees necessary to successfully perform the job. Decisions regarding performance appraisal are made in assistance with the line manager. Performance appraisal is not merely a process carried out to find suitable employees for promotion but to measure the output level of each individual employee and determine areas of improvement. As Munir Chughtai quotes:
Nestl spends time on its employees. We calculate we promote job and not the person

So performance appraisal is done keeping in mind the profile of the job as well as the employees profile. In Nestl, HR department has a very important role in the appraisal system as the department has to communicate the results to the employees explain them their measured output and also help them plan their future in Nestl. Professional skills, experience, the capacity and willingness to apply Nestl Basic Management and Leadership Principles are the main criteria for promotion. There are 5 to 6 promotion boards in a year. It can be very crucial if errors are committed while conducting performance appraisal process. So Nestl makes sure that all such challenges are met and sufficient and right information is exchanged between performance appraisal system and the concerned employees. After measuring and communicating the results, we help employees plan their future activities.

BENEFITS AND REWARDS:


As far as benefits and rewards are concerned, Nestl employees definitely have an advantage over other organizations employees. Nestl offers a number of benefits such as Factory and head office pick and drop service Medical facilities, Health screening/on-site occupational health facilities Sick pay 25 days' holiday Mobile phone on a business need basis Company bonus scheme Contributory final salary pension scheme
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Childcare vouchers (dependant on salary) Gym facilities at larger sites Gratuity funds Pension Cafeteria Empowerment Female friendly committee (that helps them adjust in the environment) Day care centre (KEDCO)

Apart from these benefits, rewards such as MANN HUMARA TUM SAI HAI are awarded to the deserving employees. But most important of all Nestl offers a healthy and creative environment which focuses on trust, values, and behavior and gender unbiasness. The environment that Nestl provides to its employees is comparable to none. All these rewards and benefits raise the level of employees job satisfaction as they get motivated by them. Nestl HR department makes sure that all employees are aware of these benefits and rewards. And also help them in directing their activities in achieving them.

EMPLOYEE SAFETY:
Munir Chughtai is also the head of Health and Safety Department Nestl. He remarks No compromise on safety Nestl make sure that every process is safe, especially the production processes. Nestl develops safety measures keeping in view the job profile. Nestl conducts risk assessment of office, factory as well as work environment. The HR department makes sure that all employees are familiar with the safety measures and also communicate them effectively. Nestl conducts a basic training programs after every 3 years. All employees have to show 100% participation. These programs educate employees about PPEs (Peoples Protection Equipment) and other safety measures that are to be followed. Apart from that, Nestl has a qualified first aiders team from Pakistan Red Crescent Society which is well known for its services. Nestl also has Rescue 1122 and fire fighters team that are always active for any emergency.

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For Nestl, employee safety is the top priority and so makes sure that all departments are well equipped for any possible accidents. A proper record is maintained in case of any accident and its report is to be submitted to the concerned authority within 24 hours. This record is then periodically analyzed to avoid and prevent future accidents. Dr. Rizwana (member of Pakistan Red Crescent Society) quotes The kind of health and safety set-up I see in Nestl, I dont think I have seen it anywhere else. It is very important for Nestl employees to know their safety rights. Nestl also conducts safety drills and celebrates safety week. If someone is violating the rules, ANYONE CAN STOP him/her irrespective of their job position.

DISCIPLINARY ACTIONS:
In Nestl, the first step in orientation is that the employee is supposed to read a document called Code of Good Conduct which contains a list of disciplinary actions to be followed in Nestl. As Nestl focuses on behaviors, therefore it is very much important that the behavior of all employees is in accordance with the disciplinary actions as framed by Nestl. Violation of disciplinary actions is very low in frequency. But if someone is held guilty of violating them, then an inquiry committee comes into action. The employee held responsible for violation as well the line manager is a part of the committee. A neutral inquiry is conducted by the inquiry office that investigates reviews and then takes actions accordingly. It usually result is oral or written warnings but may result in dismissal in extreme cases.

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