Nestle uses Alderfer’s ERG Theory to manage the employee in the company.

By using this theory, the

well-being and development of the employee are prioritize instead of the performance alone. Nestle
provided existence need by carrying out activities like “Employee Healthy Programs” to encourage and
maintain a healthy lifestyle of the employee. For example, health screening program and stress
management programs. At the same time, Nestle also provided relatedness need to encourage the
employee to create their own social or community obligations through the Nestle charity homes activity.
An example, the Careton Build Homes Project. Every year, Nestle provide rewards to employees who
excel in their performance. This would drive the workers to work harder to achieve the company’s goal. I
agree with Nestle practices because they have used the appropriate way to motivate their employees
and obtain a positive outcome from their program. Nestle received the award “The Putra Brand Award
2014” because of it. To make Nestle more outstanding, they can build a friendlier environment for their
employee. Nestle can conduct a casual dress day. It will make the employee more excited to go to work.
At the same time, feeling more comfortable in their work environment.

A good leader should have the fundamental trait to influence others to attain an organizational goal.
Nestle uses strategic leadership to lead and manage the organization. By using the style of strategic
leadership, leaders are expect to be both resolute and flexible. They should be able to compete
proactively, be able to face difficulties and be able to react strategically to environmental changes. Based
on the report “The Nestle Management and Leadership Principle”, there are 4 principles which managers
of all levels in the company should follow to achieve ongoing success; lead to win, manage for results,
grow talent and teams, and compete and connect externally. Leaders are expect to be able to open to
risk and possibility of making a mistake. Leaders should maintain composure under pressure. They
should be able to implement new ideas due to environmental change; at the same time baring the
consequences. To be a good leader, Nestle believes the continuance in learning and improvement. It is
also important to build diverse teams with a gender balance to ensure a harmonious environment.
Nestle also constantly look for ways to satisfy their customers while attracting new ones. They are
curious and open minded to the culture and lifestyle of the consumers. By doing so, they are able to
detect the likes and dislikes of customers and create new products to suit the consumer habits and
trends. The leading practices that Nestle used to manage their business is agreeable. To make Nestle
more successful, they can acquire suggestions from employees as well to detect more uncertainty thus
decreasing the environmental risk.

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