PROJECT

ORGANIZATION:
“NESTLE”

Supervisor: Dr. Saeed

Date: 14-05-2023
Subject: Human Resource Management

Participants: Maryam Bilal (922128)

Ayesha Ali Khan (922129)

DEPARTMENT OF MANAGEMENT SCIENCES,

NUML UNIVERSITY MULTAN, PAKISTAN.
DECLARATION
We, students of the Department of Management Sciences, National University
of Modern Languages (NUML) Multan, hereby declare that the work entitled
“STRATEGIC HUMAN RESOURCE MANAGEMENT OF NESTLE” has
been accomplished by us. We also certify that nothing has been incorporated in
this thesis work without acknowledge and that, to the best of our knowledge and
belief, it does not contain any material previously published or written by any
other person or any material previously submitted for a degree in any university
where due reference is not made in the text. We further state that this project is
sole property of our Supervisor and in case of a research publication from this
work; We authorize our supervisor as the resource person provided that our
name is included in the publication.
Maryam Bilal
922128
Ayesha Ali Khan
922129
 ACKNOWLEDGMENT

All
-praises to Almighty
Allah alone, the most merciful and
-the most compassionate and His Holy Prophet
Muhammad (peace be upon Him) the most perfect and exalted
-one among and of ever born on the surface of earth, who is forever
-touch of guidance and knowledge for the humanity. I am thankful to
-Dr. SAEED AHMED for these great efforts of supervising
And leading me to accomplish this fine work. I am thankful to Parents
who supported me in thick and thin times, our fellows who have been
supportive, and have been a great source of help and encouragement,
and I Thank them all and wish them all the best in
their lives. I am thankful to every person
-who gave me something to light
Pathway, I thank them for
Believing in me.
TABLE OF CONTENT

Contents
TABLE OF CONTENT...............................................................................................................................4
Strategic Human Resource Management of..........................................................................................6
INTRODUCTION.....................................................................................................................................6
...............................................................................................................................................................6
HISTORY.................................................................................................................................................7
HISTORY OF LOGO.................................................................................................................................9
Family of NESTLE.................................................................................................................................11
.............................................................................................................................................................12
Vision of Nestle....................................................................................................................................13
Mission of Nestle.................................................................................................................................13
CORE VALUES......................................................................................................................................14
BUSINESS OBJECTIVES.........................................................................................................................15
SWOT Analysis.....................................................................................................................................16
STRENGTHS......................................................................................................................................16
WEAKNESSES...................................................................................................................................16
OPPORTUNITIES...............................................................................................................................16
THREATS..........................................................................................................................................17
STRATEGIC CHOICE..............................................................................................................................18
Differentiation.................................................................................................................................18
SHRM at Nestle....................................................................................................................................19
NESTLE – A HUMAN COMPANY.......................................................................................................19
NESTLE’S SPIRIT...............................................................................................................................19
NESTLE’S CORPORATE LEVEL STRATEGIES...........................................................................................20
BUSINESS LEVEL STRATEGIES...........................................................................................................20
COMPETITIVE ADVANTAGE.............................................................................................................20
FOUR GROWTH PLATFORMS...........................................................................................................20
ALIGNMENT OF BUSINESS STRATEGIES AND HR PRACTICES...............................................................20
Product Development through Innovation and Improvement........................................................21
Adherence to the values and management principles of the organization.....................................21
.............................................................................................................................................................22
1. HR PLANNING..............................................................................................................................23
2. JOB ANALYSIS...............................................................................................................................24
3. RECRUITMENT AND SELECTION...................................................................................................25
4. TRAINING.....................................................................................................................................26
Decentralisation:.............................................................................................................................27
TRAINING PROCESS.........................................................................................................................28
5. PERFORMANCE APPRAISAL SYSTEMS..........................................................................................29
 Productivity Management.......................................................................................................29
6. SOCIALIZATION AND EMPLOYEE RELATION.................................................................................29
7. COMPENSATION..........................................................................................................................30
1. PAY SCHEDULE.........................................................................................................................30
2. REWARDS AND INCENTIVES.....................................................................................................30
BENEFITS..........................................................................................................................................31
HR CAPABILITIES AND ACTIONS...........................................................................................................31
CHANGE MANAGEMENT.....................................................................................................................31
The Talent Management and International HR Team..........................................................................32
Growing and learning......................................................................................................................32
OUTCOMES OF STRATEGY...................................................................................................................32
Nestle’s experience with the recession...........................................................................................33
Factors that allowed Nestle to thrive despite the Recession...........................................................34
HR practises Nestle should adopt........................................................................................................34
.............................................................................................................................................................36
.............................................................................................................................................................36
RECOMMENDATIONS AND CONCLUSIONS..........................................................................................37
 Strategic Human Resource Management of

“NESTLE”

INTRODUCTION

The top company in the world for nutrition,

wellness, and health is Nestlé. The company
has 456 factories in 84 countries and more
than 280,000 employees. Products from
Nestlé are available in practically every nation
on earth .Nestlé was established in Vevey,
Switzerland, where it is now headquartered,
and is frequently referred to as "the
multinational among multinationals." Only
1.5% of its sales are made in the country
where it is based, and all but 12 of its plants
are located abroad. Paul Bulcke is the CEO,
and other members of the General
Management include three Spaniards, two
Canadians, a German, a South African/British,
a Swiss, an American, and an American-
Swiss. With over 250,000 shareholders, of
which about one-third are Swiss, Nestlé is a
truly public firm. Nobody holds more than 3%
of the company's equity.

A sponsored programme allows US investors, who collectively control over 30% of the
capital, to purchase ADRs. Nestlé is the global market leader in product categories like
soluble coffee, newborn nutrition, bottled water, condensed and evaporated milk, ice cream,
as well as chocolate and malt drinks, and culinary. Nestlé is also the world's top nutrition,
health, and wellness firm. The Group shares leadership in the care of animals. The Company
is dedicated to generating wealth for shareholders through long-term, profitable, capital-
efficient growth. It has focused on promoting organic growth and performance improvement
over the previous few years. . While preserving a balance in global activity and product lines,
Nestlé's current products will develop through innovation and renovation. Never will short-
term performance come before long-term potential. The Company's top objective will be to
provide individuals with the best and most pertinent items, regardless of where they are or
what demands they may have at any given time.
 HISTORY

Nestlé was created as a result of

numerous minor business mergers.
Henri Nestle, a trader, chemist, and
inventor, experimented with different
ratios of cow's milk, wheat flour, and
sugar in the middle of the 1860s. The
end result was designed to provide
infants who couldn't be breastfed by
their moms with nutrients. An infant
born too soon was saved by his
formula in 1867. Later that year,
Vevey saw the start of formula
manufacture under the name Farine
Lactee Nestlé, and the Nestle
Company was established.

Henri Nestle chose to forego the simpler path of

establishing a private label in order to pursue his desire to
create his own brands. Henri also desired to expand the
reach of his business. After the debut, Henri started
selling his goods in several European nations within a
short period of time. Henri took a number of actions in
the early years of the business to support research,
enhance product quality, and create new goods. Charles
and George Page, two Americans, started the Anglo-
Swiss Condensed Milk Company in 1866.

Charles and George Page, two Americans, started the Anglo-

Swiss Condensed Milk Company in 1866. The business
introduced a milk-based infant meal that competed with
Nestlé's offerings. Daniel Peter, Henri's neighbour and friend,
created milk chocolate in 1875. Peter became the world’s
leading chocolate maker, and later merged his company with
Nestlé. When the Anglo-Swiss Condensed Milk Company and
Nestlé combined under the Nestlé brand in 1905, the rivalry
between the two businesses came to an end. Dairy products
saw a rise in demand as a result of World War I. Government
contracting was the main source of Nestle's growth. As people
resumed utilising fresh milk instead of condensed and
powdered milk after the war, the industry experienced a
difficulty. Nestlé suffered its first loss in 1921, in part as a
result of the global postwar economic downturn.
Brazilian Coffee Institute contacted Dapples in 1930 in search of fresh goods. After eight
years of study, Nestlé created a soluble powder that transformed coffee consumption all over
the world. When the product was introduced under the Nescafe label, it immediately found
success. The launch of Nescafe was accelerated by the outbreak of World War II. The drink
gained popularity among American servicemen in Europe and Asia as well. A new period of
growth for Nestlé began after the end of World War II. As the business expanded through
acquisitions, numerous more goods were added.

Nestlé's financial situation deteriorated after 1974. Oil prices increased while industrialised
countries' development stalled. The price of cocoa and coffee beans increased along with the
value of the Swiss franc. Nestlé's strong growth in emerging regions helped to partially
mitigate this problem.

Helmut Maucher was appointed CEO in 1981. The way Nestlé operated was significantly
impacted by his policies. To improve the company's financial status, Maucher adopted a two-
pronged approach:

1) First, he started with internal restructuring and divestments

2) Second, he resolved to keep making smart acquisitions.

He unloaded a number of non-strategic or unsuccessful companies between 1980 and 1984,

for a total of around SFr8 billion. Certain food goods that were divested did not align with
Nestlé's focus on high value added markets. He started a cost-cutting initiative to help the
company's financial predicament.

Despite a large decrease in staff strength, inventory and outstanding debt both decreased. To
market its breakfast cereals, Nestlé and General Mills established Cereal Partners Worldwide
as a joint venture in 1990. It encompassed 70 nations, which together account for nearly 75%
of the world's consumption of breakfast cereal outside of the United States and Canada.
Additionally, Nestlé and Coca-Cola established a joint venture known as the Coca-Cola
Nestlé Refreshment Company to market ready-to-drink tea and coffee products under the
Nestea and Nescafe brands.

In order to deliver orally taken nutrition products to hospitals and nursing homes, Nestlé
chose to dissolve its 50-50 Clinic Nutrition joint venture with Baxter Healthcare in 1996.
Instead, Nestlé Clinical Nutrition was founded. In order to expand its product line and global
reach, Nestlé merged with the Anglo-Swiss Condensed Milk Company at the beginning of
the 20th century. With more than 470 plants worldwide, Nestlé is without a doubt the food
industry's uncontested leader in the new millennium. GLOBE (worldwide Business
Excellence), a group-wide project announced by Nestlé, aims to harmonise and streamline
business process architecture. This would allow Nestlé to realise the benefits of being a
worldwide leader while minimising the disadvantages of size. Several guiding concepts will
continue to inform the Company's strategy..
 HISTORY OF LOGO

Over the course of its more than 150-year history, Nestle has changed its logo at least six
times. The initial Nestlé trademark was created by Henri Nestlé and was based on the single
bird on a nest that appeared on his family's coat of arms. To assist establish a connection
between his name and the items he had developed, Nestlé eventually included three young
birds being fed by a mother. Here, we take a look at some of the Nestle logo's earlier
iterations.

1866 – 1868

The iconic Swiss company's visual identity concept has been based on the family name of its
founder, Henri Nestle, which translates from German to "The Nest" since the introduction of
the company's initial logo in 1866.

The Nestle family crest, which consists of a conventional shield with its upper line slightly
extended to the sides, was represented by the initial design. The crown on top of the crest had
been replaced with a feathered metal helmet, and in the centre of the shield was a picture of a
bird sitting in its nest. Only two years were spent using this logo at the business.

1868 – 1938

The distinctive logo for the company was created in 1868 and featured a picture of a nest
with four birds in it. The branches and oak leaves could be seen, and the image was fairly
detailed.

1938 – 1966

The logo was changed in 1938, adding a word mark. Over the nest logo, which was redone in
cleaner lines with less accents and shadows, was written the bold black "Nestle" letters.

1966 – 1984

The nameplate's strong, rounded typeface was replaced in 1966 with a stricter, more
geometric one. The cuts and serifs were bold, assertive, and had clear, straight lines.

1984 – 1995

The logo was further streamlined in 1984; there were now only two baby birds instead of
three, and the overall design was more contemporary and stylish. The word mark was
changed and was now positioned beneath the image. It was designed in a contemporary sans-
serif style with the 'N' bar stretched above the text, extending until the 'T' and then appearing
above the 'E', creating a 'é'.
1995 – 2015

In 1995, the language and graphic components of the Nestle visual identity are being
improved. The image became less detailed and more solid, while the typography was
modified to one that was sleeker and cleaner with softer angles and thicker lines.

2015 – Today

The 2015 makeover almost preserved the iconic composition of the Nestle logo; only the
emblem was expanded, giving the whole design a more balanced and substantial appearance.

 Visual presentation of transformation of logo is as follow:

 Family of NESTLE

The NESTLE family includes items pertaining to:

 Milk & Nutrition

 Beverages
 Prepared foods and cooking aids
 Chocolates

One of the well-known FMCG companies is NESTLE. The Nestlé name is a pledge or
assurance to the buyer or consumer that the product is of a high standard and secure in every
region of the world. The UNGC (United Nations Global Compact) is supported by NESTLE.
The UNGC's human rights guiding principles seek to serve as an example of better labour
practises and human rights throughout all of his commercial endeavours. Our success was
greatly influenced by our workforce. We treat one another with respect and decency on an
equal basis, and we expect each employee to contribute their ideas and thoughts to the
company's growth and success while fostering a feeling of personal accountability. We seek
out motivated and capable individuals who understand and uphold our principles, give them
equal opportunity for professional growth and development, respect their privacy, and do not
accept any type of harassment or discrimination.

In the quickly changing world, an organization's human resources can give it a believable
advantage over its rivals. For the achievement of business goals, this necessitates the strategic
management of human resources. The coordination of human resources with strategic
objectives is known as STRATEGIC HUMAN RESOURCE MANAGEMENT. Numerous
goals are asked for in order to establish or strengthen organisational culture, increase
organisational performance, and promote adaptability, creativity, and long-term competitive
advantage.
 Vision of Nestle

“Nestlé’s aim is to meet the various needs of the consumer everyday by marketing and
selling foods of a consistently high quality.”

Being a chosen corporate citizen, preferred employer, and preferred supplier while selling
preferred products will help us become a leading, competitive, nutrition, health, and wellness
company that increases shareholder value.

Mission of Nestle

“We strive to bring consumers foods that are safe, of high quality and provide optimal
nutrient to meet physiological needs. Nestle helps provide selections for all individual taste
and lifestyle preferences.”

"The top company in the world for wellness, health, and nutrition. Our goal at "Good Food,
Good Life" is to offer consumers the best-tasting, healthiest options across a variety of food
and beverage categories and meal times, from breakfast to dinner. This claim implies that
Nestle places customer satisfaction at the top of its list of objectives.
 CORE VALUES

 Relationships with humans require mutual respect and trust.

 Honesty and transparency in interpersonal interactions are necessary conditions for
effective communication. Open discussion with the aim of skill-sharing and creativity-
boosting is added to this.
 To communicate is to do more than just convey information; it's also to listen and have a
conversation.
 At our organisation, cooperation, helping others, and a willingness to learn are
prerequisites for progress and promotion.

Operation
INNOVATION Efficiency

Unmatched
Unmatched geographic
brand presence
portfolio

Popularly
positioned
Out-of-home products
consumption

Research
and
Emerging Development
Whenever
market Whoever
Wherever
 BUSINESS OBJECTIVES

 The goal for Nestlé's business is to produce and promote its goods in a way that will
benefit its customers, employees, shareholders, and business partners over the long term.
 Nestlé does not prioritise immediate financial gain over successful long-term business
growth.
 Nestlé understands that without its customers, the company would not exist, and that
customers have a true and legitimate interest in the company's behaviour, beliefs, and
actions that are behind the brands in which they put their faith.
 In general, according to Nestlé, laws are the best protection against irresponsible
behaviour, but in some cases, extra instruction for employees in the form of voluntary
business principles is advantageous to guarantee the highest standards are upheld across
the board.
 Nestlé is aware that a company's performance reflects on its management team and
workforce's professionalism, moral character, and sense of responsibility.
 Consequently, it is essential to choose the right candidates and invest in their continuous
training and development.
 Nestlé is aware that a company's performance reflects on its management team and
workforce's professionalism, moral character, and sense of responsibility. Consequently,
it is essential to choose the right candidates and invest in their continuous training and
development.
 In general, according to Nestlé, laws are the best protection against irresponsible
behaviour, but in some cases, extra instruction for employees in the form of voluntary
business principles is advantageous to guarantee the highest standards are upheld across
the board.
 SWOT Analysis

STRENGTHS

 Parental support - Nestle India enjoys the steadfast backing of its parent company,
the biggest processed food and beverage producer in the world with operations in
almost every nation. The parent business's wildly popular global portfolio of goods
and brands are available to the start-up.
 Brand strength - Nestle has some very powerful brands in India, including Nescafe,
Maggi, and Cerelac. These names are so ubiquitous in their respective product areas.
 Product innovation - The company has regularly expanded its product offerings by
presenting new goods to its Indian customers.

WEAKNESSES

 Exports - At the end of 2003, the company's exports were worth Rs 2,571 m (11% of
revenues) and they are still increasing at a respectable rate. However, coffee makes up
a sizable amount of this (almost 67% of the shipments were of Nescafe instant to
Russia). This makes up a sizable portion of all exports to a single area. Russia has
historically been an extremely unpredictable market for Nestle, and as a result, its
overall performance frequently suffers.
 Supply chain - Traceability is the key problem for Nestle India in the company's
complex supply chain management. High requirements for staff, hygienic conditions,
and edible inputs are needed in the food sector. Things are made more difficult by the
fragmented Indian market

OPPORTUNITIES

 Expansion - The Company may choose to enter new regions and smaller
communities. The company can grow presence by further advancing its
penetration into markets that are currently underutilised. The per capita
consumption of the majority of FMCG products is projected to increase as India's
demographic profile shifts in favour of the purchasing class. Nestle will benefit
from this trend inherently.
 Product offers - The company has the ability to increase the number of brands
that are sold under its parent companies' names, including Carnation, Smarties
Chocolates, and morning cereals.
 Global hub - Because producing some products in India is less expensive than in
other South East Asian nations, Nestle India may start serving as the parent
company's export centre for specific product categories.
 • Unaffected by the current economic climate (its share of the UK confectionary market
increased to 15.6% with a 0.5% gain this year). health-based products are getting
more and more popular around the world, particularly in the United States.

THREATS

 Competition - include intense rivalry from both the organised and unorganised
sectors for the company. The Indian government has decreased the import duty on
certain food segments in an effort to liberalise its trade and investment policies
and improve the nation's ability to operate in the global market, which has
intensified the conflict.
 Adapting consumer trends - A tendency of rising consumer durable spending is
leading to falling FMCG spending. Despite the economy expanding at a
respectable rate over the last two to three years, the FMCG sector's performance
has been disappointing. Although things have been getting better lately, there is
still a significant reliance on the monsoon.
 Sectoral problems - Increasing costs for packaging and production as a result of
rising gasoline and raw material prices. However, the businesses might not be able
to fully pass these costs on to the customers.

• They are entering some markets that are already developed.

• International rivals.
• The American market for yoghurt is particularly competitive (General Mills).

 Summary of SWOT Analysis is as follow:

 STRATEGIC CHOICE
Nestlé builds value by maintaining a constant emphasis on operational agility, relevance, and
superior execution. As a business, we are always changing the products we offer in order to
satisfy customer demands and pique their interests. Through quick innovation, effective
resource allocation, and operational efficiency, we aim for a balanced pursuit of financial
growth. Our long-term plan guarantees that we consistently achieve long-term success.

Differentiation
Nestle employs a differentiation strategy, and in order for it to be successful, it has
coordinated its HR strategies accordingly. Nestle employs the following HR techniques to
assist differentiation in order to support the differentiation strategy:

• They favour metrics of long-term performance. Nestlé does not prioritise immediate
financial gain over successful long-term business growth.

• They believe in providing their staff with thorough training so they can keep up with the
pace of the changing environment and be informed about new developments.

• Equal and fair pay policies are upheld at Nestle. The salary structure, incentive, and reward
programmes of Nestlé are also created to encourage creativity.

• The entire employment and recruiting process is focused on people who bring in

• A continual process of career development offers employees broad career pathways, and
significant employee participation permeates the organisation
 SHRM at Nestle
NESTLE – A HUMAN COMPANY

With a focus on the welfare of both its customers and staff, Nestlé is a company that responds
to the diverse needs of people throughout the world. Its attitude and sense of obligation to
other people exhibit this. Nestlé wants to boost sales and earnings while also improving
everyone's quality of life and living standards everywhere it operates. The people are Nestlé's
most valuable resource since the company is likewise convinced that they are its greatest
asset and that nothing can be accomplished without their devotion and enthusiasm. The first
step in involving people at all levels is providing them with the right knowledge regarding the
activities of the company and the particulars of their jobs. Everyone is encouraged to
contribute to improvements boosting Company outcomes and personal growth through open
communication and active cooperation.

Thus, we can infer that Nestle adheres to the following models:

1. High performance
2. High involvement
3. High commitment.

NESTLE’S SPIRIT

“Making Big Investments in People”

We invest heavily in people at Nestlé India because they are our main priority. Our
employees are the main forces behind our success. Nestlé India is a terrific place to work
because it offers its workers a vibrant work environment that is united by one spirit, "The
Nestlé Spirit."
Nestlé India is a thriving business that improves the quality of life of its customers by
providing them with high-quality food products that are centred on nutrition, health, and
wellness. Your honesty, technical proficiency, and performance are what count at Nestlé
India. We put our employees' trust in early responsibility-giving and support their active
participation in the long-term, sustainable growth of the company.
At Nestlé India, we value developing leaders who can tackle problems creatively and publish
successful case studies. Nurturing begins on the first day of employment. Employees have the
opportunity to acquire and improve the functional, people management, and decision-making
skills necessary for success at work thanks to business dynamics and need-directed training
programmes. We encourage you to join us on this exciting adventure as we reach successive
milestones and guarantee that the exposure and experiences you will have will be unmatched.
 NESTLE’S CORPORATE LEVEL STRATEGIES

• The expansion of a product through innovation and refurbishment (while keeping

geographic activity and product lines in balance).
• Potential in the future
• Build a business on solid human values and principles for long-term potential.
• A long-term dedication to the health and welfare of people everywhere they conduct
business.
• When conducting business, one should follow the organization's management principles and
core values.

BUSINESS LEVEL STRATEGIES

• Cheaper - means less price transparency is observed.

• Differentiation - to lessen the likelihood that the supply chain will be complex and the
appeal to discounters

COMPETITIVE ADVANTAGE

• Research and development (R&D)

• Its selection of products
• A staff of 280,000 people with a global reach

FOUR GROWTH PLATFORMS

• Nutrition
• Emerging consumers
• Premium goods and
• “Out-of-home” good

ALIGNMENT OF BUSINESS STRATEGIES AND HR PRACTICES

The commercial objectives of Nestle and the plans made to operate the company are both
taken into consideration while developing HR strategies or practises. The corporate goals and
HR strategy are always in sync. Nestle is exceptional in that it has been able to continually
instill its business aim and fundamental values into every aspect of its workers' daily
operations, from hiring to ongoing performance reviews.

Product Development through Innovation and Improvement

Human resource tactics are used to promote product growth, or productivity. For example,
flexible, dynamic staff are lured, chosen, trained, and encouraged to be more productive than
the competitors. A prime example is the Kit Kat production facility in York, England, which
was run by Ian Jobson before being taken over by Nestle CEO Peter Brabeck. A tonne of
chocolate was made in 38 man-hours in 1998, according to Time magazine. The anticipated
manufacturing time for this year is 23 hours thanks to a combination of robotics, automated
packing, and production-line advancements. Process innovation made it possible to shorten
the production time.

Adherence to the values and management principles of the organization

1. Honouring many cultures and traditions

Since Nestlé does not discriminate on the basis of origin, nationality, religion,
ethnicity, gender, or age, it embraces cultural and social diversity. Additionally,
Nestlé thinks that its actions can only benefit the company in the long run if they also
assist the community in which it operates. In other words, local dedication and
activity can best convey global thinking and strategy.
2. Variety
It is obvious that Nestlé's businesses are incredibly diversified since they have
produced hundreds of the top brands in the world and give our workers access to a
staggering array of career opportunities. It shouldn't be a surprise that Nestle supports
diversity in their workforce as much as they do in their product line.
3. The Culture of Nestlé
Nestlé is devoted to certain cultural ideals. These principles were established over its
history and have some Swiss roots. They are also changing to support the Company's
ongoing restructuring. They fit the following description:
 A dedication to quality, honesty, and a strong work
ethic.
 Trust- and respect-based interpersonal relationships.
This suggests a willingness to get along with people
and the capacity for honest and open communication.
 A direct and personalised method of communication.
This suggests a great degree of tolerance for different
viewpoints and a steadfast dedication to working
constructively with others
 Curiosity and openness to emerging and dynamic
technological developments, alterations in customer
behaviour, and new commercial prospects while
upholding respect for fundamental human attitudes,
values, and behaviour.

For example, offering training programmes to staff at all

levels ensures an open and adaptable culture.
.
1. HR PLANNING

The ability of the company to find, keep, and develop staff members who can support
ongoing business growth is essential to its long-term success. This is one of their main
duties as managers. The hiring philosophy of Nestlé seeks to select employees who will
be able to maintain a positive working environment and a long-term relationship with the
company. As a result, the opportunity for professional growth is a crucial hiring criteria.
Every new employee at Nestlé is expected to take part in creating a sustainable quality
culture, which calls for dedication to the company and a drive for constant development
that forbids complacency. As a result, and in light of the significance of these Nestlé
principles, particular emphasis will be given to how well a candidate's values align with
the Company's culture

 Need To Create Job

With 2000 brands worldwide and around 339,000 employees, our Nestlé company is
happy to have supplied healthy nutrition for more than 140 years at 308 Mall Rd in
Lahore, Pakistan. The goal is to lead the field of nutrition, health, and wellness. We
consider behaviour to be just as important to leadership as size. Our most valuable
resource is our people, and in keeping with our culture, we believe that investing in
their potential is an investment in the future of everyone.
The day-to-day operations of the human resources office are overseen by the human
resources assistant. This position oversees the administration of the human resources
policies, procedures, and programmes and helps to achieve the HR practises and goals
that will create an employee-focused, high performance culture that places an
emphasis on goal achievement, quality, productivity, and employee empowerment as
well as the hiring and ongoing development of a top-notch workforce
2. JOB ANALYSIS

It gives the detail information if Job. For example we are conducting Job analysis for HR
manager position. It includes:

a) Job Description
Accountable for offering a broad range of HR services in a discreet
and very responsible manner. This Assistant Human Resources
Manager position is intended to serve as a feeder for the Human
Resources Manager position in the succession plan
b) Job Identification
Position: Assistant Human Resources Manager
Company: Nestlé
Department: Human Resources
Timing: Full-time
Gender: Male and female
Posting of Job: APRIL 16, 2015, 6:48:56
Location: Lahore / Islamabad; Pakistan
Reports To: Director of Human Resources and Corporate Communications
c) Responsibilities
• Oversees the HR Department's effective daily operations.
• Helps put services, policies, and programmes into action.
• Maintains personnel records, such as I-9, FMLA, and medical records.
• Ensure regulatory reporting and compliance requirements.
 • Assists in ensuring that HR policies are in accordance with all applicable local,
state, and federal laws.
• Handle the administration of payroll
• Maintain the attendance database and the notices of corrective action.
• Keep in constant contact with the plant manager, department managers, and
team leaders with any issues that concern or may affect all employees.
• Provides general assistance to employees and responds to requests from job
candidates.
d) Qualification
A business degree from a university.
Specialisation or a professional designation in human resources is beneficial.
Five to eight years of expertise in human resources.
Capable of managing highly-confidential papers and information correctly.
excellent verbal and written interpersonal and communication abilities.
Strong analytical abilities and meticulousness.
Initiative, the capacity to pick up new ideas, and flexibility.
The capacity to manage several priorities under minimum supervision in a fast-
paced workplace.
Required is working knowledge of the ESA, the Human Rights Code, and other
relevant laws.
Microsoft Word, Excel, PowerPoint, and Outlook are strong computer skills.
Enterprises, SAP, and LinkedIn Recruiters are useful.

e) Experience
Required: two years of clerical experience or training, with preference given to
those with knowledge of duties related to human resources.
Strong computer and Microsoft Office (Word, Excel, Access, PowerPoint)
abilities are required.

3. RECRUITMENT AND SELECTION

Within Nestlé worldwide, the Recruitment Services team in Nestle UK is acknowledged as

the benchmark for innovative hiring techniques. This is so that they don't only fill
employment at Nestle. Instead, they collaborate with the company to proactively find and
close talent gaps. Although it's not always simple, Nestle Recruitment teams are continually
looking forward and developing new strategies to draw in the top talent and stay one step
ahead of the competition.

The hiring procedure at Nestle is well-defined and always synchronised with the shifting
business requirements.

 It is important to find individuals who possess traits like dynamism, realism,

pragmatism, hard work, honesty, and reliability.
  Candidates who fit the culture of the employer and their own ideals are hired.
 Top management at the head office and all other levels of management conduct
recruitment for management positions. According to the needs, the current employees
are elevated to higher positions. There aren't any lateral hires. Campus placements
and human resource consultants are other sources of hiring for finding the most
enthusiastic, motivated, and young people

Guidelines:

Policies, fundamental beliefs, and guidelines for managing people are described in the

 Nestle management and leadership principles. The Nestlé Management and

Leadership Principles outline the corporate principles and management philosophy of
the Nestlé Group in the domain of interpersonal relations in particular.
 Nestle human resources policy: This policy includes the rules that provide a solid
foundation for efficient and effective HR Management throughout the Nestlé Group.
 The Nestle People Development Review sheds light on the company's culture and
basic values, various training initiatives, and life outside of work for workers.

HR professionals alone make the final hiring decision; external consultants are not given
precedence. This is done in order to give the Company discretionary power at last.

4. TRAINING
At Nestlé, training is ongoing at all levels of management, from the shop floor to the top.
Additionally, it is always applicable to the workplace because it is mostly provided by Nestlé
employees. Every nation in the world has its own training initiatives (e-Learning, in-person
classes, and outside courses).

Nestle offers these:

 Literacy training—to improve fundamental literacy abilities, particularly for

employees who use new machinery.
 Programmes for Nestle Apprentices.
 Local training programmes on topics like business economics, leadership, and
technical subjects.

The decentralised structure of Nestle, which is as decentralised as feasible within the

constraints imposed by core policy and strategic decisions needing growing flexibility, also
supports this type of culture. Operational effectiveness, group-wide alignment, and personnel
needs.

Decentralisation:
Nestlé is aware of the true and proper interest of its customers in the attitudes, values,
and deeds of the organisation behind the brands they support and trust, and that the
company couldn't operate without its customers.

 Nestlé considers regulation to be the most reliable safeguard in general. Nevertheless,

in some instances, extra instruction to personnel in the form of voluntary business
 principles is helpful to ensure that the highest standards are met across the
organisation.
 Nestlé is aware that a company's performance reflects on its management team and
workforce's professionalism, moral character, and attitude towards responsibility. The
selection of qualified candidates, continued training, and growth are essential.
 Nestlé continues to uphold its commitment to comply with and respect all relevant
local laws in each of its.

TRAINING PROCESS
 On Job Training
It's a training that's conducted in front of the company or training that takes
place while operations are in progress; it's a really effective process used by
many well-known companies, and Nestle also uses this system. However,
there is an inherent risk because all new employees could make a mistake or
cost the company money, so the company only uses this system when it makes
sense. It works well when a major level person makes a mistake and then the
Nestle business uses that mechanism to fix things.
 Training in Diversification
It is a training process where employees work at various management levels
and posts to gauge how effectively and efficiently they can carry out their
duties.
 Local Training
A reputable training institution from Bangladesh, the Slavery and Labour
Training Institute, conducts these trainings within the nation. Consultants from
other countries' training schools are often asked to conduct training. These
trainings typically take place outside of the office, in a different location.
 In House Training
The majority of these trainings take place in the office setting and are typically
led by senior managers who are experts in various fields.
 Market Survey Training
By sending employees to the market, the company plays a crucial part in the
market survey. The management also runs a project to assess the staffs'
proficiency and efficiency.
 Off-The-Job Training
Although it can be painful and deplete employees' confidence and motivation,
this process is also an effective way to train internal staff members. It takes a
lot of time and money, both of which must be borne by the employer, but it is
sometimes necessary to improve a company's efficiency or its workforce
efficiency. Whereas any temporary employees may work for the business with
or without pay, and while this is technically not a job, it is necessary for them
to be full-time employees, and it also depends on how well they do.
 Computer-Based Training
 Most businesses today teach their employees using computers and projectors,
which is a very efficient and time-saving method. This allows businesses to
communicate their plans, training, what to do and what is prohibited by the
business and other authorities; it's a comprehensive package of direct
communication and training.

5. PERFORMANCE APPRAISAL SYSTEMS

The ability for employees to challenge their superiors is advantageous to both the
individuals working there and the business as a whole.

 Productivity Management
 A formal evaluation with feedback conducted once a year by the line managers
and HR.
 A subordinate may contest an unfair assessment.
 The HR department has chosen specific Key Performance Indicators.
 Compliance with Nestle management and leadership principles is one of the
crucial key performance metrics.
 Individual performance is taken into consideration in the compensation structure
and promotion standards.
 Emphasis on personal success
The type of remuneration structure that HR has created for its employees
demonstrates Nestlé's emphasis on individual performance. The corporation also uses
techniques like job enrichment and job enlargement to inspire employees and break
up the monotony of their duties. The correspondent's dual employment in the sales
and brand management divisions is an illustration of job expansion.

6. SOCIALIZATION AND EMPLOYEE RELATION

One of the reasons Nestlé employees report having a very high level of dedication is that
Nestle offers a highly healthy work environment.

 There is less than 5% employee turnover, which is considered to be quite low for a
global corporation.
 Nestle has an open culture and encourages upward communication, particularly when
it comes to grievance redress.
 The Nestle Human Resource Policy whitepaper emphasises the value of work-life
balance.
 Their HR department plans yearly "Nestle Family" gatherings to which employees
are invited, together with their families.
 The safety of employees is prioritised (Nestle Policy on Health and Safety at Work)
Employee Relations Sub-Team develops and implements Nestlé's policies and procedures in
this area and works on pertinent project work. Line managers, the HR community, and HR
Business 15 Partners receive business-wide advice and guidance from Employee Relations
Sub-Team on individual employee relations matters as well as on broader employee relations
and change management issues

7. COMPENSATION
Consists of:

1. PAY SCHEDULE
 Nestle works to provide just compensation. The pay scale is higher than the industry
average.
 The variable portion of the salary is rather large to recognise individual achievement.
 For higher management levels, the variable part is related to team and individual aim
accomplishments.

2. REWARDS AND INCENTIVES

 Include the 'Passion to Win' awards. These quarterly awards have become a tradition
to honour those who surpass their goals.
 Long-service Awards: Given to staff members who have worked for the company for
more than 30 years.
 "Nestle Idea Award": According to the correspondent, Nestle institutes the Nestle
Idea Award every three months to reward and recognise staff members who come up
with pertinent and original ideas that have the potential to be adopted at Nestle.
Apply the guiding concepts listed below to every area of Reward Nestle.

REWARD GUIDELINES

High performers will receive the highest rewards because their degree of reward is directly
correlated to their level of performance. Additionally, there is a connection between the
business performance and reward.

 Competitive - We benchmark all aspects of reward to ensure we provide all our

employees with a competitive reward package.
 Inclusive - Our reward programme is created to reflect the significant contribution
that every employee, not just senior managers, makes.

Versatile - We've prioritised letting you customise the Reward you receive to your
circumstances, whenever possible or practical

BENEFITS
Without discrimination, the following benefits are offered to all employees:

 Personal and medical leave (set number per year)

 Group Insurance & Accidental Insurance Scheme;
 Provident Fund;
 Retirement Gratuity Scheme;
 Children Education Assistance Scheme;
 Conveyance Reimbursements
 Monthly health check-ups,
 Free consultations, residential housing, among others

HR CAPABILITIES AND ACTIONS

CHANGE MANAGEMENT
 Since its founding in 1866, Nestle has
adapted to the constantly shifting external
environment without sacrificing its
essential principles and ideals. It succeeds.
By adhering to the philosophy of
implementing progressive adjustments as
opposed to making abrupt and dangerous
changes, change and fosters sustainable
profitable growth.

 Implementation of an ERP system: In June 2000, Nestle SA signed a highly publicised

$200 million contract with SAP and an extra $80 million to set up an ERP system for its
 global organisation. This move was made to assist centralise a conglomerate that owns
200 operating firms and subsidiaries in 80 countries. Although the ERP system was
probably going to be advantageous in the long run, the project affected the corporate
culture and structure. It attempted to centralise the decentralised framework. Employees
at first rejected this, but it has been successfully adopted thanks to later HR initiatives
including training.

The Talent Management and International HR Team

On the other hand, is responsible for fostering the professional growth of all Nestle
employees, with a special emphasis on those who exhibit high levels of performance and
potential and who are likely to become future Nestlé leaders. The fundamental goal of this
talent management programme is to provide the framework and procedures that will allow
Nestle to recognise and nurture its employees' potential. This programme assists people in
pursuing worldwide assignments from their designated locations, such as Nestlé's global
headquarters in Vevey, Switzerland, or from other Nestlé markets throughout the world.

Growing and learning

The Learning and Development Team is active in the creation of innovative solutions and in
fostering change through extensive development initiatives like our 'Lead2Win' programme.
Additionally, this team assists the business in developing and implementing functional
development programmes across the entire organisation, from manufacturing to supply chain.

At Nestle, learning and development refers to innovation, creativity, and continuous

improvement. Continuous Improvement carries out learning and development, which then
immediately leads to creativity and innovation. There are typically two parts to this process:

i. To build core skill development strategies that will promote continual professional
and personal growth throughout the organisation, a team of dedicated and
experienced development professionals is assembled. After that, each company area's
strategy are customised using the assistance from business directors and HR business
partners.
ii. The trainees can utilise our extensive intranet for learning and growth in the next
step, which is going online. This tool has been specifically created to assist learners
in self-managing their education in a convenient online setting. Once you're operating
there, you may concentrate on learning new skills relevant to your job and career
goals with the aid of our leadership development programmes, which are intended to
produce leader of tomorrow.

OUTCOMES OF STRATEGY
After implementation of strategy if goals are achieved then strategy is successful and
continue it. But when goals are not achieved and there is recession:

Nestle’s experience with the recession

Nestle has experienced a few difficulties throughout this crisis in terms of

 As consumers migrate from branded foods to retailers' own labels, shipment growth
has halted.
 The volume of goods sold: After Nestle relied on price increases to pass on higher
raw material costs, the volume of goods sold increased by 2.8% in 2008, however this
is down from a 4.4% growth in 2007.

Recession could not be forced to shoulder the full weight of these two issues. Since rising
inflation was the real cause of the second issue. Despite the fact that the weak dollar and
fierce domestic rivalry have damaged it. However, if we speak generally, Nestle has earned a
reputation as a recession-proof business. Nestle reported that their profit for the year 2008
was 69.4%. The globe is currently experiencing its worst recession, which is thought to have
started in 2008 and continued into the first half of 2009. Every business in the world was
seeing a severe decline in sales and services, regardless of what they produced or the services
they offered. though, even during the recessionary period.

 Nestle made a net profit of 15 billion US dollars in 2008.

 From 10.65 billion Swiss francs in 2007, net income increased to 18 billion francs in
2008.
 The profit increased by 69.4% from the previous year.
 Sales jumped 2.2% last year to 109.9 billion francs, and organic revenue rose 8.3% in
2008, the fourth straight year Nestle outperformed expectations.
 Additionally, despite the global economic downturn, Nestle anticipates continuing
earnings growth in 2009, leveraging its strong 2008 performance as a springboard for
expansion.
 In 2008, Nestle approved an investment of 300 crore in the Indian market, which
amounts to about Nestle's additional target is to achieve organic growth of close to
5% and to double its investment in 2009.
  Considerably increase the EBIT margin in constant currencies. Nestle's internal
resources would enable it to accomplish this goal.
 Nestlé, the company behind Nescafé coffee, Maggi soup, and KitKat chocolate bars,
increased its 2008 organic growth prediction to "about 8 percent" from a previous
aim of at least 7.4 percent.
 Nestle stock increased 5.4% after falling to a level that was over two years low.
 After spending 8.7 billion (Dh27.16 billion) francs on stock purchases in 2008,
Nestle will spend four billion francs on stock buybacks this year.
 Nestle also announced that it would raise its dividend for the year by 15% to 1.40
francs per share.

Factors that allowed Nestle to thrive despite the Recession

Nestle miraculously weathered the world's worst recession, sending a hopeful and motivating
message to many other businesses. There have been several arguments made that for Nestle,
combating the recession appears to have involved:

• Innovation and "renovation of its brands and products" It appears to be an important factor
in keeping Nestle afloat. Nestlé increased its spending in food and beverage research and
development by 15% in 2008.

• Nestle was able to profit from "a wide variety of market conditions," which offers it a
competitive advantage, and as a result, it weathered the recession. Not in a downturn, but
most likely in a slowdown, is India. The demand for consumer goods in the price range that
Nestle sells has not been impacted by the lack of available liquidity. Nestle was able to
survive in India as a result.

• Due to the company's "defensive qualities as well as its strong growth credentials," it has
weathered the recession and is now positioned for profitable growth both immediately and
over the long term.

• Everyone will need food if a global recession takes hold and the Middle East war continues.
As a result, millions of consumers will continue to purchase Nestle goods, such as Stouffer
frozen foods, Taster's Choice coffee, and Nestle infant formula.

• "The market's desire to be in a safe haven situation is the key to Nestlé's short-term
performance. "Beyond that, Nestle has a really promising profits story over the long term.

• Nestle's extensive product line up and broad geographic reach enable it to weather the
recession more effectively than its competitors.

HR practises Nestle should adopt

Nestle should put these HR best practises into practise:

i. Communication Plan: Nestle needs to develop a sound communication plan because

employees in today's changing environment and in a dynamic company like Nestle
 should be informed of the changes happening inside the company. This could be
accomplished through bulletins, open house gatherings, etc.
ii. Effective Training and Development: At Nestle, training and development play a
significant role in daily operations. It is a crucial component of company strategies.
The majority of Nestle's training sessions are led by in-house instructors, whereas
outside trainers need to be contacted for some specialised training programmes. In
order to familiarise personnel with international markets, training programmes
overseas should be made available to them as well.
iii. Entrepreneurship strategy: Each employee must be a self-starting businessperson who
can come up with ideas and implement them while utilising the organization's
resources and assistance to develop unique and imaginative goods and services.
iv. Recruit strategically - The expected global labour shortfall has not vanished; it has
simply been delayed. The cause? Baby boomers are opting to work a little bit longer
due to the decline in the value of their retirement assets. As the baby boomers exit the
employment after the market has fully recovered, you should prepare for a huge
exodus. Companies that make drastic employee reductions and fail to keep their HR
representatives in touch with potential hires will find themselves severely
understaffed. Smart businesses currently have a fantastic opportunity to hire
exceptional individuals who have been let go by other companies.
v. Cut High operating costs for HR
vi. Utilise real-time data for HR choices to improve the decision-making process.
RECOMMENDATIONS AND CONCLUSIONS
Nestle uses a high-performance, high-involvement, and high-commitment model. Nestle is
exceptional in that it has been able to continually in still its business aim and fundamental
values into every aspect of its workers' daily operations, from hiring to ongoing performance
reviews. Similarly, a culture that is open and adaptable is guaranteed by offering training
opportunities to staff members at all levels.

The decentralised structure of Nestle also supports this type of culture. Transparent
performance evaluation processes and allowing employees to challenge their superiors are
advantageous for both the employees and the organisation as a whole. The type of
compensation structure used by Nestle demonstrates its emphasis on individual
accomplishment.

It is necessary to design a consultation/awareness programme to help the staff members

comprehend the policies. Employees who have worked for the company for more than two
years straight should receive extra rewards.

Over the course of its long historical evolution from a tiny village enterprise to the top food
company in the world, Nestlé has shown an admirable capacity to adapt to a constantly
changing external environment without compromising its essential principles, which are
crucial for long-term success. As Nestlé's size and complexity increase to a level that
necessitates ongoing evolution of its organisational structure and management style, this
capability of using HR as a strategic partner in the implementation of the company's activities
will continue to be challenged. Success will be ensured by its drive to learn and question
what it is doing and why it is doing it, together with its longstanding respect for Nestlé
principles.