You are on page 1of 12

BINDURA UNIVERSITY OF SCIENCE EDUCATION

GRADUATE SCHOOL OF BUSINESS (GSB)

FACULTY OF COMMERCE
Programme : B212501B
Course Title : Human Resource Management
Course Code : 525
Assignment Number :2
Lecturer : Dr Rusike
Due Date : 30/09/2021
Student Names : Feshilla C. Mutize
Topic
Analyze the Human Resources Management Model of an organization you are
familiar with and discuss your Recommendations.
Table of Contents
1 Introduction 1
2 Definition of terms 1
3 Literature review 1
3.1 Jackson and Schuler Global HRM Framework 1
3.2 Universalistic theory2
3.3 Contingency theory 3
4 Strategic human resources management of Nestle Zimbabwe………………….…………………………………….….3

4.1 Resource based view………………………………………………………………………………………………………………………….3

4.2 Pure Human Capital………………………………………………………………………………………………………………….….…...4

5 HRM practices of Nestle Zimbabwe………………………….…………………………………………………………………………4

5.1 Recruitment and selection…………………………………………………………………………………………………………………4

5.2 Training and Learning…………………………………………………………………………………………………………………….….4

5.3 Performance review and employee development…………………………………………………………………………….5

5.4 Compensation and benefits……………………………………………………………………………………………………………….6

6 Conclusion…………………………………………………………………....…………………………………………………………………….6

7 Recommendations…………………………………………………………….…………………………………………………………….….6

7.1 Weaknesses and results within Nestle……………………………………………………………………………………………….6

7.2 Suggestions for improvement of Nestle Zimbabwe……………………………………………………………………………7

7.3 New HRM policy implementation………………………………………………………………………………………………………7

References………………………………………………………………………………………………………………………………………………9

ii | P a g e
1. INTRODUCTION

Nestle Zimbabwe is a multinational food and beverage corporation with headquarters at 38


Samora Machel Street in Harare's CBD. The corporation is a major player in the food processing
industry, with a sizable revenue stream. Nestle is ranked 72nd among the Fortune 500 companies
in the world (Nestle, 2015). Nestle, as the industry's major participant, has a variety of distinctive
resources, the most important of which is its people resource. People are regarded a significant
source of success at Nestle, according to the company's human resource management report, and
their engagement is seen as highly favorable for the company's long-term competency (The
Nestle, 2012). The corporation is dealing with a varied spectrum of human resources and claims
to have an excellent human resource management system, which is why Nestle was chosen as the
case for this assignment. An in-depth examination of the company's human resource
management system will be extremely beneficial in identifying the human resource policies that
contribute to the company's performance (Wright, Gardner and Moynihan, 2003). In addition,
the author may easily obtain information on Nestle's human resource management system since
it is in town, which will serve as the basis for identifying gaps and recommending improvements
to Nestle's human resource management system.

2. DEFINITION OF TERMS

Human resources (HR) - is the department within a company that is responsible for locating,
screening, hiring, and training job applicants, as well as administering employee benefit
programs (Gardner, 2003).

Employee - one who works for another for a wage or income, usually in a position below the
executive level

3. LITERATURE REVIEW
3.1 Jackson and Schuler Global HRM Framework

In the context of human resource management, the Jackson and Schuler model is critical for
understanding the relationship between internal and external influences (see figure 1). Nestle's
atmosphere is extremely critical for effectively managing human resources. Nestle's culture and

1|Page
structure have more flexibility to adapt to changing environmental conditions, which is backed
up by the company's leadership and strategic capabilities.

Human resources are seen as a valuable asset, and their management is carried out to ensure the
satisfaction of the company's major stakeholders (Ahmad and Schroeder, 2003). Human resource
management is based on an integrated process that is critical for overall satisfaction of the
community, customers, employees, and society as a whole (Boxall and Purcell, 2011). Given
Jackson and Schuler's concept, it can be argued that Nestle has maintained a significant link
between internal and external elements to promote worldwide expansion.

3.2 Universalistic theory

It is also known as the best practice model, and it's based on the idea that there are a set of
superior/best HRM practices, and that implementing these will necessarily result in superior
organizational performance (Luthans & Summer, 2005). The concept of best practice was first
identified in early US HRM models, many of which proposed that implementing certain "best"
human resource practices would improve organizational performance, as evidenced by improved
employee attitudes and behaviors, lower absenteeism and turnover, higher levels of skills and
thus higher productivity, and improved quality of life. It is argued that if all businesses can

2|Page
identify, establish commitment to, and adopt a set of best HRM practices, they will benefit and
realize gains in organizational performance. As a result, the universalistic perspective believes
that discovering and applying best practices will improve company performance regardless of the
product market scenario, industry, or location of the firm (Pfeffer, 2001).

3.3 Contingency theory

There is no general prescription of HR policies and practices for the contingency theory,
sometimes known as best fit HRM. It all depends on the context, culture, and business plan of
the corporation (Wright & Snell, 2005). According to contingency researchers, HR strategy is
more effective when it is properly linked with a specific organizational and environmental
context. The best fit theory highlights the need of tailoring HR strategies to the organization's
unique characteristics, such as culture, operational processes, and external environment.

4. STRATEGIC HUMAN RESOURCES MANAGEMENT OF NESTLE ZIMBABWE


4.1 Resource Based View

Researchers have pointed out that humans are the organization's most valuable resource, and that
attracting, retaining, and developing personnel contributes to the company's long-term success
(Wright, Gardner and Moynihan, 2003). Human resources, according to the resource-based
concept, are intangible resources that are inimitable and cannot be moved across industries
(Zacharatos, Barling and Iverson, 2005). Nestle has stated that their goal is to build and sustain
long-term relationships with employees based on their professional development standards.
Nestle's human resource management report states that its employees contribute to the long-term
creation of a high-quality culture that is founded on the company's continuous improvement
approach. Nestle's continual training and learning environment has aided them in maintaining a
staff that is highly skilled and possesses a skill set that cannot be duplicated by others. As a
result, Nestle's human resources contribute to the company's current competitive position, and
they are would offer long term competence to the firm.

4.2 Nestle – Pure Human Capital Company

Nestle has been dubbed a "pure human firm" since it relies on activities that are highly beneficial
to people. Nestle relies on three approaches that are regarded as significant for good human
resource management (Nestle, 2015). High performance, high commitment, and high

3|Page
involvement are three of these three models. Nestle is focusing on enhancing working conditions
for employees all over the world in order to boost employee happiness and commitment (Seibert,
Silver and Randolph, 2004). Nestle's belief is based on the reality that highly motivated people
are heavily involved in organizational strategies.

5. HRM PRACTICES OF NESTLE ZIMBABWE


5.1 Recruitment and Selection

Talent acquisition is a critical strategic activity that necessitates a major effort on the part of the
firm to select highly talented and qualified employees (Paul and Anantharaman, 2003). The
ability of an organization's strong talent acquisition acts as the foundation for strengthening its
capacities to deal with challenging market scenarios. Nestle's recruitment procedure takes into
account a higher level of alignment between an individual's values and the company's culture
(The Nestle, 2012). While conducting recruitment, the qualities of dynamism, loyalty, hard
effort, and honesty are also taken into consideration (Ramsay, Scholarios and Harley, 2000).
Nestle has been able to attract highly talented employees as a result of its emphasis on good
recruitment processes, which has increased the company's skill inventory.

5.2 Training and Learning

Employee training can be defined as a method of bridging the gap between actual and desired
employee performance (Collins and Clark, 2003). Training and learning is an educational
process that aims to increase employees' knowledge and abilities so that they can perform better
(Datta, Guthrie and Wright, 2005). Nestle's culture values learning as an inherent component of
corporate culture, and its human resources are encouraged to systematically improve their level
of learning by providing them with the appropriate support through learning programs.
Employee training and learning opportunities are chosen by management, and training programs
are implemented through a collaborative effort between employees, line managers, and human
resource management departments (The Nestle, 2012). On-the-job training, which is adequately
reinforced by coaching and advising of employees, is one of the key learning sources (DeNisi
and Pritchard, 2006). Nestle personnel are involved in information exchange inside the company.
The organization is relying on a strategy of lateral professional development, increased duties,
job content enrichment, and increased accountability.

4|Page
5.3 Performance review and employee development

Nestle relies on a high-performance work culture, and employees are given a clear awareness of
how their job affects the company's overall operations (Li, 2015). Employees and line managers
share responsibility for performance management, with the purpose of ensuring that highly
difficult and unambiguous goals are set and performance is successfully reviewed throughout the
performance period (The Nestle, 2012). The management effectively rewards good performance,
while low performers are encouraged to increase their level of performance. Performance
Evaluation Process (PE), Progress and Development Guide (PDG), and 3600 evaluations are
some of the important performance tools that Nestle is using (Cappelli and Neumark, 2001). Line
managers are held accountable for encouraging employees to articulate their career goals and
aspirations in order to advance their careers. Nestle also provides opportunities for motivated
human resources to work on international assignments in order to promote workforce diversity
(The Nestle, 2012). Nestle promotes people based on their capacity to maintain their
performance over time, both in terms of behavior and results.

5.4 Compensation and incentives

Nestle provides a comprehensive and competitive benefits package tailored to the needs of its
workers. These benefits are an important part of the complete compensation package since they
provide vital protection to employees and their families while they work for Nestle. It comprises
of a number of modules that can be used to recognize and reward employees for their exceptional
performance. The structure is built on offering consistent, equal, and fair benefits to a
differentiated group, and it includes the non-financial and financial rewards listed below.

6. CONCLUSION

Human resource management methods are critical for modern firms since they aid in the
retention of talented personnel and the strengthening of the organization's skill base. Nestle has
an integrated human resource management system that is well linked with the company's
strategy, structure, and culture, according to the current study. Nestle is focused on acquiring
highly skilled people as well as providing effective training and learning opportunities for them.
Similarly, at Nestle Zimbabwe, performance management and employee development are given

5|Page
high priority. Nestle has demonstrated a lesser reliance on employee empowerment and
inventiveness, as evidenced by the proposals provided in this study.

7. Recommendations
7.1 Weaknesses and Findings within HRM of Nestle

Nestle appears to have a well-integrated human resource strategy that incorporates both internal
and external aspects in order to establish an effective human resource management system,
according to the findings. Nestle's human resource management strategy is based on the belief
that attracting and retaining highly trained personnel is essential for the company's long-term
competitive advantage. Nestle's human resource management strategy is carried out by line
managers, who are provided with professional training by human resource managers and teams
in order to provide excellent working conditions. Despite the fact that Nestle has a high level of
employee involvement, employees are not totally empowered and are closely controlled by line
managers, who are their direct superiors. Employees at Nestle are not given complete autonomy
in making decisions about their careers.

7.2 Suggestions for improvement of Nestle Zimbabwe

Nestle has well-formulated human resources management methods, according to the current
study, and a considerable focus has been maintained on human resource attraction and retention.
It is important to highlight, however, that today's human resources are drawn to firms that
provide them with tremendous job empowerment (Aguinis and Kraiger, 2009). Modern human
resources feel that giving employees more latitude in making decisions improves their ability to
learn and grow in their employment. Employees are looking for organizations that offer them
opportunities for growth through employee empowerment as their desire for growth and
development grows (Ahmad and Schroeder, 2003). Given these viewpoints, it is critical that
Nestle maintains its focus on creating employee empowerment opportunities. In terms of job
responsibilities, Nestle can provide greater freedom to its employees. Employees should be given
the option of choosing the methods of accomplishing their jobs that would provide them with the
most benefits.

In addition, Nestle must provide demanding possibilities to its employees while taking into
account their personal boundaries in order to prevent pushing them beyond their comfort zones.

6|Page
Following that, management must maintain clear communication in order to demonstrate a
receptive attitude toward employee input (Allen, Shore and Griffeth, 2003). Nestle should
support safe failures in order to raise the level of newness without jeopardizing the company's
position. A sense of accountability was required within the business in order for employees to be
aware of the implications of failure.

Furthermore, encouraging employees to submit fresh ideas can not only improve employee
satisfaction, but it can also raise their dedication and degree of effort toward achieving company
goals (Burke and Hutchins, 2007). Nestle's management needs to recognize employees'
contributions since valuing employees' efforts might help them become more innovative. It can
considerably increase Nestle's talent set and boost its resources, giving the company a
competitive advantage in the long run.

7.3 New HRM policy implementation

The implementation of new HRM policies relating to employee empowerment and the
stimulation of employee creativity is a critical process that necessitates management's undivided
attention. Employee empowerment necessitates a reduction in organizational hierarchical layers,
which necessitates major transformation. Organizational culture changes are critical for
implementing policies of employee empowerment and innovation. It also necessitates change
management abilities with the goal of reducing conflict. It's also necessary to consider the
cultural values of the many nations where Nestle operates.

Employee creativity might also be exposed to cultural perspectives as a result of this. However,
by relying on open communication and stressing on the benefits of employee empowerment in
terms of long-term employee growth, opposition can be overcome. Human resource management
policies of employee empowerment and initiatives to enhance employee innovation, on the other
hand, are less likely to be impacted by national legislation.

7|Page
References

Aguinis, H. and Kraiger, K. (2009). Benefits of training and development for individuals and
teams, organizations, and society. Annual Review of Psychology, 60, pp.451-474.

Ahmad, S. and Schroeder, R.G. (2003). The impact of human resource management practices
on operational performance: recognizing country and industry differences. Journal of
Operations Management, 21(1), pp.19-43.

Allen, D.G., Shore, L.M. and Griffeth, R.W. (2003). The role of perceived organizational
support and supportive human resource practices in the turnover process. Journal of
Management, 29(1), pp.99-118.

Boxall, P. and Purcell, J. (2011). Strategy and human resource management. Palgrave


Macmillan.

Burke, L.A. and Hutchins, H.M. (2007). Training transfer: An integrative literature
review. Human Resource Development Review, 6(3), pp.263-296.

Christen, M., Iyer, G. and Soberman, D. (2006). Job satisfaction, job performance, and effort:
A reexamination using agency theory. Journal of Marketing, 70(1), pp.137-150.

Collins, C.J. and Clark, K.D. (2003). Strategic human resource practices, top management
team social networks, and firm performance: The role of human resource practices in
creating organizational competitive advantage. Academy of Management Journal, 46(6),
pp.740-751.

Datta, D.K., Guthrie, J.P. and Wright, P.M. (2005). Human resource management and labor
productivity: does industry matter? Academy of Management Journal, 48(1), pp.135-145.

DeNisi, A.S. and Pritchard, R.D. (2006). Performance appraisal, performance management
and improving individual performance: A motivational framework. Management and
Organization Review, 2(2), pp.253-277.

Freeman, R.E. (2010). Strategic management: A stakeholder approach. Cambridge


University Press.

8|Page
Gupta, A. (2013). Environmental and pest analysis: An approach to external business
environment. Merit Research Journal of Art, Social Science and Humanities, 1(2), pp.013-
017.

Hunger, J.D. and Wheelen, T.L. (2003). Essentials of strategic management (Vol. 4). New
Jersey: Prentice Hall.

Li, T. (2015). Nestle Employee Recruitment Research. International Journal of Business and


Social Science, 6(4).

Nestle (2015). Annual Results. [Online], Available


at: http://www.nestle.com/asset-library/documents/library/documents/annual_reports/2015-
annual-review-en.pdf. [Accessed: 25 September, 2021]

Paul, A.K. and Anantharaman, R.N. (2003). Impact of people management practices on
organizational performance: analysis of a causal model. International Journal of Human
Resource Management, 14(7), pp.1246-1266.

Seibert, S.E., Silver, S.R. and Randolph, W.A. (2004). Taking empowerment to the next
level: A multiple-level model of empowerment, performance, and satisfaction. Academy of
Management Journal, 47(3), pp.332-349.

Sweller, J., Ayres, P. and Kalyuga, S. (2011). Interacting with the External Environment: The
Narrow Limits of Change Principle and the Environmental Organising and Linking Principle.
In Cognitive Load Theory (pp. 39-53). Springer New York.

The Nestle, (2012). Human Resources Policy. [Online], Available


at: http://www.nestle.com/asset-library/documents/jobs/the_nestle_hr_policy_pdf_2012.pdf.
[Accessed: 25 September, 2021]

9|Page
10 | P a g e

You might also like