Nestlle Project HRM Project

ACKNOWLEDGEMENT

Praise is to Allah Almighty, the one testing us all at all times and making decisions about what we don’t know and can’t know. Writing this report appeared to be a great experience to us. It added a lot to our knowledge while we were working on this project. If we say that this project is one of our memorable experiences in student life, then it would not be wrong. We owe profound gratitude to Lt. Col. Sohail Akram (R) for stimulating our creative abilities by assigning this report to us. We are immensely obliged to all our fellow students who guided us in making this report, without whose considerate attention and interest, it would be difficult for us to complete this project on time. Whatever we have learnt from them and this project report has put indelible impression on our mind. It is our conviction that this learning experience will always be a source of help in our practical life and professional career.

Contents

EXECUTIVE SUMMARY......... ................... .................... .................... .................... ................ ........... ......... ......... ......... .... 1 INTRODUCTION OF NESTLE................ ............................... ................................... ................................. ............. 2 NESTLE VISION.......... .................... .................... .................... ................... ................... .................... .................... ................ ........ 3 NESTLE MISSION.......... .................... .................... .................... .................... ................... ................... .................... .............. .... 4 NESTLE GOALS AND OBJECTIVES......................................... .................................................... ........... 4 ORGANIZATIONAL ORGANIZATIONA L STRUCTURE .............. ................................................ ......................................... ....... 5 NESTLE CURRENT STRATEGIES ................................................. ....................................................... ...... 6 SWOT ANALYSIS......... ................... .................... .................... .................... ................... ................ ............ .......... .......... ........ ... 7 PEST ANALYSIS.............. ............................. .............................. ....................................... ........................................ ................ 8 PORTFOLIO ......... ................... .................... .................... .................... ................... ................... ................. ............ .......... .......... ....... .. 9 PORTER FIVE FORCES......... ................... .................... .................... .................... ............... .......... ......... ......... ........ ... 10 HUMAN RESOURCE PLANNING.............. ................................. .................................... ....................... ...... 12 RECRUITMENT PROCESS............... .............................. ......................................... .................................... .......... 13 PERFORMANCE PERFORMANC E APPRAISAL ......... ................... .................... ................... ............. ......... ......... ......... ......... ...... 15 COMPENSATION BENEFITS ......... ................... .................... .................... ................... ............. ......... ......... ...... .. 15 MOTIVATIONAL MOTIVATION AL STRATEGI STRATEGIES ES.......... ................... ................... .................... .................... ................ ........... ..... 17 LEADERSHIP STYLE................ ............................... .......................................................... ........................................... 18 LABOR POLICIES.............. ............................. ............................................................ ................................................... ...... 20 SAFETY & HEALTH MEASURES .................................................... ....................................................... ... 21 REFERENCES............... .............................. .............................. ........................................ ......................................... ................ 22 CONCLUSION ......... ................... .................... .................... .................... .................... .................... ................. ............ ......... ...... .. 23

EXECUTIVE SUMMARY

We are analyzing the different aspects related to Managing Human Capital of Nestle Compan Company. y. Our analys analysis is of Nestle Nestle will will includ include e the curren currentt marke markett situat situation ion and stra strate tegi gic c anal analys ysis is of the the comp compan any. y. We analy analyze zed d the the vari variou ous s stra strate tegi gies es and and techniques like PEST analysis, Portfolio analysis and Porter Five Force that can be helpful for improving their products. Nestle has been serving worldwide with its excell excellenc ence e in produc productt safety safety,, quality quality and value. value. It provid provides es many many goods goods which which include Dairy products, Beverages, Bottled Water, Infant diets and confectionary. According to their point of view they provide the best food through out the world. For Nestle they adopted the societal and marketing concept.

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE

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INTRODUCTION OF NESTLE Nestle is the leading FMCG company of Switzerland established by Henri Nestle. Nest Nestle le is serv servin ing g world worldwi wide de with with its its more more than than 500 500 fact factor ories ies in 86 coun countr trie ies s comp compri risi sing ng almo almost st all all cont contin inen ents ts.. Nest Nestlé lé’s ’s prod produc uctt port portfo foli lio o is more more than than 500 500 products all over the world serving best to their customers. Henri Nestlé endowed his company with the symbol derived from his name. His family coat of arms, the nest with a mother bird protecting her young, became the Compan Company's y's logo logo and a symbol symbol of the Company Company's 's care care and attitude attitude to life-lo life-long ng nutrition. The Nestlé nest represents the nourishment, security and sense of family that are so essential to life. The first product made by Henri Nestlé, a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestlé's new formula saved the child's life, and soon, Farine Lactée Henri Nestlé was being sold in much of Europe. Nestlé has been serving Pakistani consumers since 1988, when the parent company, the Switzerland-based Nestlé SA, first acquired a share in Milkpak Ltd.(1) Nestlé is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices: •

Nestlé's Nestlé's business business objective is to manufactu manufacture re and market the Company Company's '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. •

Nestlé does not favor short-term profit at the expense of successful long-term

business development. •

Nestlé 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.


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NESTLE VISION

The consumer's voice is the key to Nestlé Pakistan's vision and working. Whether you live in the remotest village or the city of Karachi, Nestle consumer services team stands ready to listen to your concerns and provide answers about our products and guidance on matters of health and wellness. (2) Nestlé’s global vision is to be the leading health, wellness, and Nutrition Company of the world. Nestle’ Pakistan subscribes fully to this global vision. In addition to that, Nestle Pakistan also envisions to: •

Lead a dynamic motivated and professional workforce that is proud of its

heritage and bullish about the future •

Meet the nutritional needs of all age groups through a diversified product

range that contains an innovative portfolio of branded food and beverages of the highest quality •

Maintain long-term growth and deliver shareholder value

•

Establishing responsible communication with the consumer which in turn can

provide us a better look into what changes need to be made to our products •

Stre Streng ngth then en the the posi positi tion on as the the best best care career er dest destin inat atio ion n for for tale talent nted ed and and

motivated individuals


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NESTLE MISSION “Nestle is dedicated to providing the best foods to people throughout their day, thro throug ugho hout ut thei theirr lives lives,, thro throug ugho hout ut the the worl world. d.

With With our our uniq unique ue expe experi rien ence ce of

anticipating consumers' needs and creating solutions, Nestle contributes to your well-being and enhances your quality of life.” (3)

NESTLE GOALS AND OBJECTIVES Nestle business objective is to manufacture and market the Company's products in such such a way way as to crea create te valu value e that that can can be sust sustai aine ned d over over the the long long term term for for shareholders, employees, consumers, and business partners. Nestle 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. Nestle continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. At the entrance of this new millennium, Nestlé’s objective Is to consolidate and strengthen its leading position at the cutting edge of innovation in the food area in order to meet the needs and desires of customers around the world, for pleasure, convenience, health and well being.(3)


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ORGANIZATIONAL STRUCTURE

MARKETING MANAGER is an employee who is responsible for planning and controlling its marketing activities and budgets .Marketing manager take cares the promotional strategies of the products. Manager tries to use innovative ideas for the improvement of product in market.

FINANCE FINANCE MANAGER MANAGER The The fiel field d of finance cove covers rs the the econ econom omic ics s of the the contingent claims. Financial economists study the valuation of these claims, the markets in which they are traded, and their use by individuals, corporations, and the society at large. Finance manager and marketing manager are related with each other to meet their marketing targets. It is important because alone marketing manager can not promote any marketing strategy without any budget.


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NESTLE CURRENT STRATEGIES “A social and managerial process where by individual & groups obtains good food and good life through creating and exchanging products and values.”

THE PRICING STRATEGY We can easily observe that Nestle itself is taking active part in social welfare. We see the lower prices of the product as compared to the other FMCGs Company’s products like Unilever and Procter & Gamble. If we look at the prices, we can observe observe that Nestle Nestle is also using its name for the promotion promotional al activities and pricing strategies also. They have to maintain their level of efficiency and always provide the best at best price. Nestle cares about the customers. As the time is of inflation, nestle is trying to overcome the pricing problems to the extent they can do. Nestlé’s point point of view view is “Onl “Only y by unde unders rsta tand ndin ing g cons consum umer er need needs s can can we serv serve e our our consumers to the fullest”. Profit earning is the core aim of every company but in case of Nestle their profit margin is small just for the sake of customers trust and happiness. Nestle is also one of the leader of retaining their customers. This is one reason of their success.

PROMOTIONAL STRATEGIES Nestle launch was, perhaps one of the most aggressive as far as processed Nestle product concerned, with TV, TV, print ads, radio commercials, billboards billboards and plenty plenty of BTL BTL (bel (below ow the the line line)) acti activi vitie ties s incl includ udin ing g dire direct ct cons consum umer er and and shop shop bran brandi ding ng activities. Due to this aggressive marketing campaign, the competition seems to be getting tougher. So far ads focus towards the younger generation, who want to feel free, young and excited, leading a healthy lifestyle. These ads are appealing a specific social class. They keep the information of the other companies what they are offering. Try to improve their strategies from others so that they can promote their product more. Like more companies are now coming in the market so there is more completion in the market and they have to be up to date from the current situations.


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SWOT ANALYSIS ANALYSIS SWOT analysis would tell us in better way about the competitive position of the company. Following is SWOT analysis of the company.

STRENGTH •

Strong Brand name (NESTLE LOGO & FAMILY BRAND)

•

Mineral Product (Free of chemicals) as compare to others.

•

Only brand in the area maintaining its quality and taste

•

It has largest market share

•

Ease of availability of their products all over Pakistan

•

Immense product range and huge diversification leads to reduce risk.

•

High quality standards

WEAKNESS •

Communication is not appropriate

•

Lack of Awareness

•

Weak Distribution Channels

OPPORTUNITIES •

Concentrating on the areas of weakness and focus on strengths can increase

sales •

It has opportunity to advertise its product in better way.

•

It has strongest opportunity to increase its product line by making segments in

mineral water. By increasing product line it can also increase its sales.

THREAT UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE

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•

Segments are being shared by competitors

•

Under cutting by competitors.

•

Uncertain conditions will affect the sales

PEST ANALYSIS ANALYSIS POLITICAL FACTORS Nestle 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.

ECONOMICAL FACTORS Economical factors enhance the appearance of the company and also losing the company. If we see economic factors than Nestlé 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.

SOCIO-CULTURAL FACTOR Nest Nestle le fulfi fulfill ll thei theirr soci social al resp respon onsi sibi bilit lity, y, Nest Nestle le not not only only to crea create te weal wealth th for for thems themselv elves es and their their shareh sharehold olders ers,, but also also shoul should d consid consider er the impact impact on or influ influen ence ced d by the the inte intere rest sts s of Nest Nestle le beha behavi vior or rela relate ted d to pers person ons s (incl (includ udin ing g employees, consumers, creditors, the community weak, and other social services), interest, and social responsibility. Nestle specifically including the creation of wealth, to obey with business ethics, protection of labor rights, environmental protection, and save resources. •

Taking the Nestlé concept of corporate Social Responsibility to heart, we are

deeply involved in social investment and humanitarian aid. UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE

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•

We are committed to Pakistan's long-term betterment, and strictly follow the

code of corporate governance. •

We deal fairly with stakeholders.

•

We serve our consumers through safe, high quality products & communicate

with them responsibly. We try to benefit our consumers by spreading awareness abou aboutt healt healthy hy nutr nutriti ition on and and lifes lifesty tyles les as well well as cons consta tant ntly ly deve develo lopi ping ng or improving existing products for health, nutrition and wellness. •

During our manufacturing process we are careful to minimize environmental

impact and value employee welfare highly.

TECHNOLOGICAL FACTORS They have certain goals and objectives which they want to achieve. They want to create and promote their products to create value for their product. They have the resour resources ces for increa increasin sing g their their produc product’s t’s quality quality and compet compete e it with with the other other compan companies ies so Nestle Nestle focus focus on techno technolog logy y to create create core-c core-com ompet petenc ences. es. They They conduct researches for that and try to get their objective which they have decided. They are promoting their product by creating customer awareness. For example they are giving the option to be called by them, by simply enter the phone number on their website to discuss and give the feed back regarding the product and services they are providing to the society.

PORTFOLIO Boston Contingency Matrix Market Share High

Market Share Low


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Stars:

Question Mark:

Nestle Pure Life, Milk

Prepared Meal

Cash cows:

Dogs:

Drinks, Coffee (Nescafe)

Chocolate and Polo

High Industry Growth

Low Industry Growth

BRANDS

PORTER FIVE FORCES BUYER POWER Nestle and other consumer product companies face weak buyer power because here here custom customers ers are fragme fragmente nted d and have have little little influe influence nce on prices prices or may be product. But buyers in form of retailers influence and company face very strong UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE

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buyer power for like Makro, Metro, Hyper star etc. they are able to negotiate for pricing with Nestle and other companies like Unilever, PnG, Coca-Cola etc because they purchase and sell so much products of these rivalries.

SUPPLIER POWER We know know that that compan companies ies always always face face some some amount amount of suppli supplier er power power simply simply becau because se of the costs costs they they incur incur when when switch switching ing suppl supplier iers. s. On the other other hand hand suppliers like Farmers, milk-men, Packages Limited etc. they do a great involvement to do trade with Nestle. In case Nestlé becomes aware of any actions or conditions not in compliance with the Code, Nestlé reserves the right to demand corrective measures. Nevertheless bargaining power for both the firms and their suppliers is probably narrow.

THREATS OF NEW ENTRANTS Give Given n the the amou amount nt of capi capita tall inves investm tmen entt need needed ed to ente enterr cert certai ain n segm segmen entt in household or personal consuming products, such as baby food, break fast cereals, pure juices etc, we suspect that threat of new entrants is fairly low in the industry. While at the same time all the multi-national companies like PnG, Unilever including Nestle all have created the positioning in the consumers mind and they are loyal and have retention with them that slow the success rates of new competitors in the market. In some segments within the household consumer-products industry, this may not be the case since a small manufactur manufacturer er could could develop develop a superior superior product, such as confectionaries, and compete with Nestle. The test is whether the small manufacturer can get its products on the shelves of the same retailers as its much larger rivals because they cannot loose anymore profit margins by giving bribe to retailers as they already earn very less amount.

THREATS OF SUBSTITUTES With-in the consumer-products industry threats of substitute influence the success rate of a certain company. People always go for the substitute because of lower prices and convenience. Firms believe that if they can manufacture and package a lower price alternative themselves they would rather accept the marginal revenue from from their their lower lower price price items items than than risk risk comple completel tely y loosin loosing g the sale sale to a privat private e competitor. UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE

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DEGREE OF RIVALRY As we know the switching cost from one brand to other in this industry is very low. Cons Consum umer ers s in this this cate catego gory ry enjo enjoy y a multi multitu tude de of choi choice ces s for for ever everyt ythi hing ng from from beverages to confectionaries. But as we already discussed many consumers prefer certain brand and they don’t shift so easily. For example it does not cost anything for a consumer to buy one brand of Milk instead of another like Milk-Pak to Haleeb or Olpers. It makes the industry quite competitive and manufacturer try to adopt the Strengths and expose the weaknesses of others.

HUMAN RESOURCE PLANNING Planning encompasses those guidelines which constitute a sound basis for efficient and effective HR Management in the Nestlé Group around the world. They are in esse essenc nce e flex flexib ible le and and dyna dynami mic c and and may may requ requir ire e adju adjust stme ment nt to a vari variet ety y of circumstances. Therefore its implementation will be inspired by sound judgment, fulfil fulfillme lment nt with with local local marke markett laws laws and and commo common n sense sense,, taking taking into into accoun accounts ts the specific context. Its spirit should be respected under all circumstances. As Nestlé is operating all over Pakistan, it is essential that legislation and practices be respected everywhere. Also to be considered is the degree of development of each market and its capacity to advance in the management of their human resources. Should any HR policy conflict with local legislation, local legislation will succeed. These policies are addressed to all those who have a responsibility in managing people as well as to HR professionals. The Nestlé Management and Leadership Principles include the guidelines inspiring all the Nestlé employees in their action and in their dealings dealings with others. others. The Corporate Corporate Business Business Principles Principles refer to all the basic principles which Nestlé endorses and subscribes to on a worldwide basis. Both these documents are the pillars on which the present policy has been built.

(5)

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 major responsibility is to contribute actively to the quality of HR management thro throug ugho hout ut the the organ organiz izat atio ion n by prop propos osin ing g adeq adequa uate te polic policies ies,, ensu ensuri ring ng thei their r consistent application and coherent implementation with fairness. UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE

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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 not only only from their profes professio sional nal contri contribut bution ion but also also throug through h the care care and the excellence of their communication skills.

(5)

RECRUITMENT PROCESS According to latest count, thousands of employees are working in nestle. This is an approximate figure as more hiring has been done in the recent past. Nestlé follows a set process for hiring more employees. The major document in this connection is t he "Recruitment Requisition Form". This document is used in all three instances; such as for:

REPLACEMENT Filling of a near position. Additions to the existing workforce A recruitment opportunity may arise either after discussing or budgeting a position on the resignation of some employee or on an urgent need basis. In all three situations, the department head has to obtain approval from the Managing Director (MD). If the request r equest is budgeted, then the Divisional Head fills up a "Recruitment and Budgeted Budgeted Form". This form contains the complete complete information; information; i.e. the following following particulars: •

Date of initiation

•

Date the employee is needed Profile

•

Job description

Afte Afterr rece receiv ivin ing g the the docu docume ment nt the the huma human n reso resour urce ce depa depart rtme ment nt puts puts up an advertisement in the newspaper or it directly contacts placement officers at various institutes. Approximately eight to ten best resumes are selected and presented to the the divis division ional al head heads. s. On thei theirr reco recomm mmen enda datio tion n the the cand candid idat ates es are are call called ed for for interviews and the most suitable are finally selected.

MANAGEMENT TRAINEES UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE

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The procedure for selecting fresh graduates at Nestlé is bit different as the trainees cannot be short listed through their CV's. Management trainees are fresh graduates or they have one year experience at the most. Management trainees are not called directly. They are contacted through their placement officers. Salaries or benefits of the management trainees do not vary with their specialization. Similarly the training period is the same, whether they are selected for marketing or finance.

SUCCESSION PLAN The succession plan at Nestlé is made by the department head. He chooses his own successor. It is the duty of the departmental head to train someone for his work, so that there is a person to takeover in case he is transferred.

JOB ASSESSMENT There is a classified system of job assessment at Nestlé. Accountability incentives in the the form form of busi busine ness ss or faci facili liti ties es are are prov provid ided ed to empl employ oyee ees s perf perfor ormi ming ng well. well. Employees form the internal equity of the company. Therefore, equally justifying measures are taken to satisfy and motivate the employees. (6)

TRAINING AND DEVELOPMENT We know “Learning” is part of the Company culture. Each employee, at all levels, either a fresh or old, is conscious of the need to upgrade continuously her/his knowledge and skills. The willingness to learn is therefore a non-negotiable condition to be employed by Nestlé. Training and Development is done on-the-job. Guiding and coaching coaching is part of the responsibilit responsibility y of each manager manager and it is crucial crucial to make each one progress in her/his position. When formal training programs are organized they they shoul should d be purpo purpose se orient oriented ed and and design designed ed to improv improve e releva relevant nt skills skills and competencies as Nestle does. Therefore they are proposed in the framework of individual development programs. As a consequence, attending a program should never be considered as a reward. Role of each manager at Nestle is to assess progress, achieved as a result of training programs. The objective is to retain and UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE

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motivate employees by offering attractive but realistic career moves allowing them to develop their skills over a long-term period within the framework of economic reality and a changing environment. Each manager has the duty to act as a mentor for his employees. At Nestle formal assessment take place on a standard basis, preferably once a year. Its purpose is to provide feedback on past performance and future potential as well as on other relevant aspects concerning a staff member’s work including the development of his skills and competencies.

PERFORMANCE APPRAISAL A perf perfor orma manc nce e appr apprais aisal, al, empl employ oyee ee appr apprai aisa sal, l, perf perfor orma manc nce e revi review ew,, or (car (caree eer) r) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, quantity, cost, cost, and time) time) typically by the corresponding manager or manager or supervisor supervisor . Nestle give importance to their employees at their work place because Nestle totally depe depend nd on thei theirr qual quality ity,, so qual quality ity achi achiev eved ed by the the Nest Nestle le on the the base bases s thei their r employees performance. So if employees are on right track so company gives incentives to their employees.

COMPENSATION BENEFITS Compensation is a key part of Nestlé Real Rewards package and helps to attract, motivate, and retain a workforce of top performers. Our philosophy is to provide and maintain maintain discipline disciplined d compensa compensation tion programs programs which value long-term long-term relationsh relationships ips with employees while recognizing individual performance. Nestlé is also committed to offe offeri ring ng comp compen ensa sati tion on pack packag ages es,, incl includ udin ing g base base pay, pay, shor shortt and and long long-t -term erm incentives and benefits, that are competitive in today’s market.

BASE PAY Your base salary is the fixed portion of your pay. Base salaries are designed to be com competi petiti tive ve,, base based d on data data spec specif ific ic to each each posi positi tion on as measu easure red d in the the UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE

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marketplace. High performance over time is recognized by base pay that is higher than the market.

SHORT-TERM INCENTIVES Short-term Incentive pay is designed to reward you for accomplishments during a specific performance period (typically annually). For most Staff and Division level positions, Nestlé offers Awards for Performance Excellence. Nestlé also offers a variety of Sales and Plant Incentive.

LONG-TERM INCENTIVES Long-term Incentive plans, such as Nestlé are designed to motivate and reward those in eligible leadership positions for the Company’s sustained success over a longer period, often three years or more. LTIP target award opportunities are set to be competitive within the market and are calculated as a percentage of pay

HEALTH AND WELLNESS The health and wellness of our employees and their families are important to the Company as they are to you. That’s why Nestlé offers a range of healthcare options through benefits program called NesCARE. Healthcare plans include preventive care, prescription drug benefits, and may cover certai certain n altern alternati ative ve medica medicall servic services. es. You are given given the flexib flexibili ility ty to choose choose the benefits that are right for you (and your family), including medical, dental and vision coverage

SPENDING ACCOUNTS Flexible spending accounts are a great way to save on taxes. These plans allow you to put aside your pre-tax rupees to reimburse yourself for eligible out-of-pocket healthcare and dependent daycare expenses incurred during the year.

DISABILITY There may be a time when you are unable to work due to an illness or injury that occurr occurred ed outsid outside e of work. work. Nestlé Nestlé short short-ter -term m and long-t long-term erm disab disabilit ility y plans plans offer offer UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE

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financ financial ial protec protectio tion n during during these these period periods s to assist assist you in meetin meeting g your your financ financial ial obligations.

MOTIVATIONAL STRATEGIES Adoption Assistance Family is an important part of who we are, which is why Tetra pak offers a valuable support for the families through various programs.

Employee Discounts Tetra Pak offers discounts on a broad range of products to their employees also provide travel and quarters, electronics, gifts, financial services, clothing and more.

Voluntary Benefits Tetra Pak makes a number of voluntary benefits available to you through an outside service provider, including auto and home insurance, prepaid legal services and pet insurance.

Scholarship Program The Nestlé Scholarship Foundation is proud to sponsor a scholarship program that prov provid ides es finan financi cial al assi assist stan ance ce.. Scho Schola lars rshi hip p reci recipi pien ents ts are are sele select cted ed base based d on academic record, demonstrated leadership skills, and participation in school and community activities.

Long-Term Care Long-Term Care insurance is available to protect employees and eligible family members from the potential cost of nursing homes or other long-term care.

Employee Assistance Program (EAP)


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Nestlé provides EAP services at no cost to employees and their eligible family members for confidential access to professional counselors trained to help with a variety of personal and family issues. (8)

Pick and Drop Facilities Nestle provide their employee pick and drop facility, the timing of employee come in to the workplace is also not disturb. All employees are relatively on the time in their workplace.

Good Working Environment Workin Working g environ environme ment nt is very very suitab suitable le for employ employees ees.. Nestle Nestle is multi multi nation national al compan company y so they they provid provide e their their emplo employee yees s effect effective ive workin working g enviro environme nment nt that that encourage employee to done their work continues effectively

Games Acco Accord rdin ing g to the the empl employ oyee ee fitn fitnes ess, s, Nest Nestle le held held gami gaming ng programs for their employees.

LEADERSHIP STYLE The Nestlé Management and Leadership Principles describe the management style and and the the corp corpor orat ate e valu values es of the the Nest Nestlé lé Grou Group, p, spec specif ific ical ally ly in the the area 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. Nestle Nestle has Democrati Democratic c Leadersh Leadership ip Style because they take advise from their employees and review it and then take decision. 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 UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE

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managers. The Nestlé policy is to hire staff with personal attitudes and professional skills enabling them to develop a long-term relationship r elationship with the Company. Therefore the potential for professional development is an essential standard for recruitment. Henc Hence, e, a clea clearr comm commun unic icat atio ion n of thes these e prin princi cipl ples es and and valu values es from from the the very very beginning of the recruitment process is required.

(9)


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LABOR POLICIES •

In Nestle, management 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. •

Nestle management has work simplicity and honest in dealing with people for

effi effici cien entt comm commun unic icat atio ion. n. Base Based d on fact facts s and and on a sinc sincer ere e dial dialog ogue ue,, such such transparency is the only solid basis for boosting continuous improvement. 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 the their

work ork

prop proper erly ly..

Othe Otherw rwis ise e

no

effe effec ctiv tive

dele delega gati tio on

or

knowl nowled edg ge

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. •

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 of Nest Nestle le will will prov provid ide e assi assist stan ance ce to ensu ensure re that that the the dish dishar armo mony ny is deal dealtt with with impartially and that each party has the opportunity to explain her/his viewpoint regardless of hierarchical position.


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SAFETY & HEALTH MEASURES Nestlé regards its people as its most valuable asset and places the highest priority on protecting protecting them. them. In every every country country where we operate, operate, our company company emphasizes emphasizes the the need need for safe safe work workin ing g environ environmen ments, ts, which which must must meet meet our strict strict global global corporate standards. We are determined determined to provide a safe working environ environme ment nt for all our employees, contractors and visitors and we are vigilant vigilant in cont contin inui uing ng to impl implem emen entt Heal Health th and and Safe Safety ty prac practi tice ces s and programs at all our sites. •

Valuing our people by providing a safe place to work.

•

Identifying, assessing and reducing risk and preventing injury or illness to our

employees, contractors and visitors. •

Operating our business to meet health, safety, legislative

and other other requirements applicable to Nestlé. •

Continually Continually monitoring, monitoring, reviewing reviewing and establishing establishing new

objectives aimed at eliminating or minimizing work related injury or illness. •

Develo Developin ping g and implem implement enting ing effect effective ive and and effici efficient ent injury injury manag managem ement ent

syst system ems s whic which h enab enable le a safe safe and sust sustai aina nabl ble e return to work for affected affected employees. •

Providing information, training and supervision to employees and contractors

to ensu ensure re they they unde unders rsta tand nd thei theirr role roles s and and respon responsib sibili ilitie ties s in elimin eliminati ating ng or minimizing the risk of workplace injury or illness. •

Encouraging a similar Health and Safety commitment from our suppliers and

contractors. •

Consulting with employees and other stakeholders on Health and Safety

matters.


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REFERENCES 1. http://www.nestle.com/AllAbout/AllAboutNestle.htm 2. http://www.scribd.com/doc/10552265/Nestle 3. http://www.scribd.com/doc/10552265/Nestle 4. http://www.nestle.pk/brands/our-brands.aspx 5. http://www.careers.nestle.com/NR/rdonlyres/09DFA44E-2206-406A-BF238EB09D5DE44E/81594/HumanResourcesPolicy.pdf 6. http://www.careers.nestle.com/life/career_training.htm 7. http://www.nestleusa.com/nirf/cm2/upload/81C7DAEC-D955-4170-83F21E97F0FB8AFE/RealRewardsBroch_FINAL.pdf 8. http://www.nestleusa.com/nirf/cm2/upload/81C7DAEC-D955-4170-83F21E97F0FB8AFE/RealRewardsBroch_FINAL.pdf 9. http://www.careers.nestle.com/NR/rdonlyres/09DFA44E-2206-406A-BF238EB09D5DE44E/81594/HumanResourcesPolicy.pdf 10. http://www.nestle.pk/community/she-policy.aspx www.nestle.pk www.nestle.com www.wekipdia.com

BOOKS CONCERNED Nestle Management Report 2005 Nestle Management Report 2006


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CONCLUSION

Nestle is the world leader in FMCG industry. People trust on the products launched by the company even the product is facing some problems. Nestle today move for new strategies to retain their customer and also want to get new customer. Nestle enhance their internal and external policies to satisfy their customers and also their employees. HR plays a major role to maintain Nestle status in the market.


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Nestlle Project HRM Project

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