Professional Documents
Culture Documents
Nestlé Project
Nestlé Project
Nestl
Project
Prepared By:
Dina Amgad El Amir
Naglaa Ahmed Raouf Hamed
Submitted To
Dr. Tarek El-Badawy
Course Name
Human Resource Management (HROB 901)
December 2013
Nestl
2013
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1977, Nestl made its second venture outside the food industry, by acquiring Alcon Laboratories
Inc.
In 1984, Nestl's improved bottom line allowed the company to launch a new round of
acquisitions, notably American food giant Carnation and the British confectionery company
Rowntree Mackintosh in 1988, which brought the Willy Wonka brand among others to
Nestl.
The first half of the 1990s proved to be favourable for Nestl. Trade barriers crumbled, and
world markets developed into more or less integrated trading areas. Since 1996, there have been
various acquisitions, including San Pellegrino (1997), Spillers Petfoods (1998), and Ralston
Purina (2002). There were two major acquisitions in North America, both in 2002 in June,
Nestl merged its U.S. ice cream business into Dreyer's, and in August a US$2.6 billion
acquisition was announced of Chef America, the creator of Hot Pockets. In the same time-frame,
Nestl came close to purchasing the iconic American company Hershey's, one of its fiercest
confectionery competitors, although the deal eventually fell through.[11][better source needed] Another
recent purchase included the Jenny Craig weight-loss program, for US$600 million.
In December 2005, Nestl bought the Greek company Delta Ice Cream for 240 million. In
January 2006, it took full ownership of Dreyer's, thus becoming the world's largest ice cream
maker, with a 17.5% market share.
In November 2006, Nestl purchased the Medical Nutrition division of Novartis Pharmaceutical
for $2.5B, also acquiring, in 2007, the milk-flavoring product known as Ovaltine.
In April 2007, returning to its roots, Nestl bought US baby-food manufacturer Gerber for
$5.5 billion.
In December 2007, Nestl entered into a strategic partnership with a Belgian chocolate maker,
Pierre Marcolini.
Nestl agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was
to form part of a broader US$39.3 billion offer, by Novartis, for full acquisition of the worlds
largest eye-care company.
On 1 March 2010, Nestl concluded the purchase of Kraft Foods' North American frozen pizza
business for $3.7 billion.
In July 2011, Nestl SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about $1.7
billion. On 23 April 2012, Nestl agreed to acquire Pfizer Inc.'s infant-nutrition unit for $11.9
billion. Before the acquisition, there was a 'bidding war' between the three shareholders Nestl,
Mead Johnson Nutrition and Danone. Each of the companies held a share, with Nestl holding
the biggest share (17%) (Johnson held 15%, Danone 13%).
As of 28 May 2013, Nestl has announced that it will expand R&D in its research center in
Singapore. With a primary focus on health and nutrition, Nestl is investing $4.3 million in its
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Singapore center, creating 20 jobs for experts in related R&D fields. In 2013 Nestle Nigeria
successfully pioneered and implemented the use of compressed natural gas as a fuel source to
power their Flower-gate factory.
Introduction to Nestl
Nestl Corporate Business Principles will continue to evolve and adapt to a changing world, their
basic foundation is unchanged from the time of the origins of their Company, and reflects the
basic ideas of fairness, honesty, and a general concern for people. Nestl is committed to the
following Business Principles in all countries, taking into account local legislation, cultural and
religious practices:
-Nestl's business objective is to manufacture and market the Company's products in such a way
as to create value that can be sustained over the long term for shareholders, employees,
consumers, and business partners.
-Nestl does not favor short-term profit at the expense of successful long-term business
development.
- Nestl recognizes that its consumers have a sincere and legitimate interest in the behavior,
beliefs and actions of the Company behind brands in which they place their trust and that without
its consumers the Company would not exist.
- Nestl believes that, as a general rule, legislation is the most effective safeguard of responsible
conduct, although in certain areas, additional guidance to staff in the form of voluntary business
principles is beneficial in order to ensure that the highest standards are met throughout the
organization.
- Nestl is conscious of the fact that the success of a corporation is a reflection of the
professionalism, conduct and the responsible attitude of its management and employees.
Therefore recruitment of the right people and ongoing training and development are crucial.
- Nestl continues to maintain its commitment to follow and respect all applicable local laws in
each of its markets.
Mission Statement
At Nestl, we believe that research can help us make better food so that people live a better life.
Good Food is the primary source of Good Health throughout life. We strive to bring consumers
foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In
addition to Nutrition, Health and Wellness, Nestl products bring consumers the vital ingredients
of taste and pleasure.
Vision Statement
Nestl aim is to meet the various needs of the consumer every day by marketing and selling food
of a consistently high quality. The confidences that consumers have in our brands is a result of
our companys many years of knowledge in marketing, research and development, as well as
continuity consumers relate to this and feel they can trust our products.
2013
Nestl
Main Products
Good Food, Good Life: the key to health, nutrition and wellness. With over 140 years of
experience and expertise, we take great pride in bringing you the best products because happy,
healthy consumers are important to us. We develop our products keeping your preferences, tastes
and needs in mind. We understand that you, along with millions of other consumers, know that
you can trust our products to deliver purity, quality, convenience and nutrition. Our products are
carefully aligned to Pakistani tastes and needs. We're always trying hard to develop new products
and improve existing ones, and serve our consumers better. That's why through constant
renovation and innovation we're always testing or launching value added products and making
them available in sizes that will suit every requirement. So explore the world of health with
Nestl products, and find out what suits your family's needs!
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environment. Over a hundred people travel out of the country every year to take advantage of
their international training and development events.
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Should any HR policy conflict with local legislation, local legislation will prevail.
These policies are addressed to all those who have a responsibility in managing people as well as
to HR professionals.
The Nestl Management and Leadership Principles include the guidelines inspiring all the Nestl
employees in their action and in their dealings with others. The Corporate Business Principles
refer to all the basic principles which Nestl endorses and subscribes to on a worldwide basis.
Both these documents are the pillars on which the present policy has been built.
1. A shared Responsibility
Each employee has a distinct responsibility in dealing with people be it as a leader of a team or
as a peer.
HR managers and their staff are there to provide professional support in handling people matters
but should not substitute themselves to the responsible manager.
Their prime responsibility is to contribute actively to the quality of HR management throughout
the organization by proposing adequate policies, ensuring their consistent application and
coherent implementation with fairness.
Acting as business partners, the HR manager advises and offers solutions which results in
positive impact on the organizations effectiveness. Furthermore, she/he proposes best practices
and provides state-of-the-art support and counseling to her/his colleagues. Together they act as
co-responsible partners for all HR matters.
This partnership is the key for efficiency in people management.
The communication skills of the HR staff must be appropriate to deal with all delicate matters as
they occur frequently in human relations issues. They gain their credibility not only from their
professional contribution but also through the care and the excellence of their communication
skills.
2. Dealing with People
The Nestl Management and Leadership Principles describe the management style and the
corporate values of the Nestl Group, specifically in the area of interpersonal relations. Their
respect calls for specific attitudes which deserve to be outlined in the present policy:
- A prerequisite for dealing with people is respect and trust. There can be no room for
intolerance, harassment or discrimination of any kind as they are the expression of an elementary
lack of respect. This principle suffers no exception and is to be applied at all levels and under all
circumstances.
- Transparency and honesty in dealing with people are a sine qua non for efficient
communication. Based on facts and on a sincere dialogue, such transparency is the only solid
basis for boosting continuous improvement.
- This is to be complemented by open communication with the purpose of sharing competencies
and boosting creativity. It is particularly relevant in a flat organization to convey systematically
all information to those who need it to do their work properly. Otherwise no effective delegation
or knowledge improvements are possible.
- To communicate is not only to inform. It is also to listen and to engage in dialogue. Every
employee has the right to an open conversation with superiors or colleagues.
- The willingness to cooperate and to help others is a required basis for assessing potential
candidates in view of a promotion.
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- In case of discord between an employee and her/his superior or another employee, the
possibility must be offered for a fair hearing. The HR staff will provide assistance to ensure that
the disharmony is dealt with impartially and that each party has the opportunity to explain her/his
viewpoint regardless of hierarchical position.
3. Joining Nestl
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. This is a primary responsibility for all
managers. The Nestl policy is to hire staff with personal attitudes and professional skills
enabling them to develop a long-term relationship with the Company.
Therefore the potential for professional development is an essential standard for recruitment.
Each new member joining Nestl is to become a participant in developing a sustainable quality
culture which implies a commitment to the organization, a sense for continuous improvement
and leaves no place for complacency. Therefore, and in view of the importance of these Nestl
values, 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.
Those who are not willing to adhere to the Corporate Business Principles and/or to the Nestl
Management and Leadership Principles cannot be part of the Company, as both these documents
express the basic values and principles of the Organization.
Moreover, for managerial positions specific leadership qualities and business acumen will be
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 candidacy regardless of the outcome of the selection
process. Even when promoting employees intensively from within the organization, 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, it is understood that the
decision 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. As mentioned in the Nestl Management and Leadership
Principles, only relevant skills and experience and the adherence to the above principles 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 organization 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.
4. 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
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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 organization.
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. Therefore,
suggestions for improvement are welcome and will be given prime consideration. In the same
way that 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.
Furthermore, 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.
Nestl favors a policy of long-term employment. Whenever, an operation/activity cannot be
maintained within the Nestl sphere, reasonable steps will be undertaken to avoid overall loss of
employment by identifying an external business willing to take over activity from Nestl,
whenever this is possible. If this is not possible, a closing down may be unavoidable. It will be
handled in full respect of local legislation and of the Corporate Business Principles. A social plan
will be elaborated taking into account the legitimate interests of the concerned staff. Reasonable
efforts will be deployed to reduce, as much as possible, the negative social impact of such a
situation.
5. Work/Life Balance
At Nestl they 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.
6. Remuneration
Nestl favors competitive, stimulating and fair remuneration structures offering an overall
competitive and attractive compensation package. Remuneration includes salary, any variable
part of remuneration as well as social, pension and other benefits. Each operating company will
establish a compensation practice taking into account relevant external compensation levels as
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The Nestl Human Resources Policy Contacts with union delegates should create a further
opportunity to provide information allowing their members and other representative associations
to acquire a full understanding of the business activities and the goals of Nestl.
In accordance with local legislation, Nestl will refrain from any action restricting the
employees right to be or not to be affiliated to a union. Nestl will not engage with any union or
other representative association in activities or discussions other than those relating to
employment and working conditions as well as issues relating to the workplace.
Whenever negotiations take place, they will be duly prepared with the full involvement of line
management and take into account both the Companys and the employees legitimate interest.
In dealings with unions, it will be ensured that management prerogatives be properly maintained.
9. HR Organization
The fact that Nestl is more people and product than systems oriented is reflected in the way HR
is functioning and is organized. Processes and systems as well as professional HR tools are there
to support HR management but never to the detriment of the human dimension. The human
perspective should be present at all times and under all circumstances.
The HR function should report to the manager responsible for a defined operation (Region,
Market, Country, and Factory) with a functional relation to the market HR according to the size
of that operation. The HR manager should not only have the skills and competencies from a
purely professional standpoint but also have the charisma and the credibility to be a trustworthy
partner to her/his colleagues. Whereas the HR function should indeed provide flawless
administrative support, its main role is to add value to the business and to play a proactive role in
every situation where HR action is required. Specific HR KPIs are useful in assessing the
performance of an HR unit. However, it should be kept in mind that the HR contribution aims in
the first place at optimizing the overall company performance through improving people
performance. With the evidence that the human capital is of increasing importance, HR plays
indeed a pivotal role in the conception and implementation of the people strategies that impact
financial results and the organizations overall reputation and effectiveness.
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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.
This analysis proves the best performance standard of HR dept. in the present market.
It is clear that Nestl 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.