TITLE : How do Human Resnestlesce policies contribute to

efficient and effective HR - management in the NESTLE group

in Pakistan and elsewhere in the world ?

CHAPTER 1 :

INTRODUCTION
Food is core element in nestles daily lives. Not only does it enable us to
survive, but appropriate amounts and quality also help to ensure a better standard
of living by contributing to nestles health and nestlesllness. Consumer needs and
expectations associated with a particular food product are not fixed, but change with
time and according to geographic region, culture and the various stages of live.
High infant mortality rates, and the lack of suitable replacement foods for
babies with no access to breast milk, nestlesre the motivation behind Henri Nestls
invention of Farine Lactee.
The Nestl global vision is to be the leading health, nestlesllness, and
nutrition company in the world. Nestl with headquarters in Vevey, Switzerland
was founded in 1866 by Henri Nestl and is today the world's biggest food and
beverage company. Sales for 2006 nestlesre CHF 98.5 bn, with a net profit of CHF 9
bn. Nestles employ around 265,000 people and have factories or operations in
almost every country in the world.
Nestl group has intended to manufacture a business foundation on
reverberation human ethics along with main beliefs. The group has the only
one of its kind aptitude to make available a whole variety of provisions
foodstuffs, services and nestlesll known products to congregate the
requirements of customers around the planet. It is not anonymous company
food preparation to mysterious customers, honestlesver a human group
provided that a reaction to entity human desires. It compliments the
civilization of the countries it operates in as nestlesll as identifies the
necessities for excellence of life of their people.
The Company's approach is directed by a number of elementary ethics.
Nestl's obtainable goods cultivate all the way through modernization as
nestlesll as transformation at the same time as keep up equilibrium in
geographic actions along with manufactured goods appearance. Long-
standing prospective is in no way forgone for short-range concert. The
Company's main concern is to fetch the most excellent as nestlesll as most
appropriate goods to populace, anywhere they are, no matter what their
requirements, needs, desires, all the way through their lives.






BACKGROUND:
Nestle Pakistan
Nestl has been portioning Pakistani customers since year 1988, at what
time when nestles parent corporation, the Switzerland-origined Nestl SA,
initially get hold of a share in Milkpak Ltd. Nestle Milkpak Ltd. is a food
dealing out corporation, which is listed on the Karachi and Lahore stock
exchanges.
In the present day nestle is entirely incorporated in Pakistani life,
moreover are documented as manufacturer of safe, nnestlesishing as nestlesll
as scrumptious foodstuff, in addition to cream of the crop in on the rise as
nestlesll as inspiring the population in which nestle maneuvers.
Nestl Pakistan makes certain that Nestls commodities are through
accessible to customers anywhere, everywhere in the country they might be.
Ease is at the spirit, heart, soul of the Nestl values, and Nestls intentions is
to convey foodstuffs to people's doorsteps.
In line with Nestls parent Corporations worldwide viewpoint,
Nestls are pompous of Nestls promise to fineness in manufactured goods
wellbeing, superiority, as well as significance. Nestls goods accommodate to
human requirements, moreover Nestls are vigorous in the communities
Nestls serve up.
H.Q (Headquartered) in Lahore, the corporation functions 5
manufacture conveniences. Two of its industrial units are in Sheikhupura &
Kabirwala are multi manufactured goods factories, which a different one at
Karachi is all set for manufacture. One factory is in Islamabad as well as two
is in Karachi and generate bottled water. All the way through its successful
selling also a gigantic sales as well as circulation network right through the
country, it make certain that its goods are completely accessible to customers
whenever they like, everywhere along with honestlesver.



AIMS AND OBJECTIVES:

Nestl Corporate Business main beliefs will carry on to develop as well as
become accustomed to a varying world, Nestls essential underpinning is
unaffected from the instance of the genesis of Nestls Company, also imitates
the indispensable thoughts of evenhandedness, truthfulness, furthermore a
wide-ranging apprehension for people.
Nestl is devoted to the subsequent Business philosophy in all countries,
enchanting into account local legislation, enlightening also sacred put into
practice:
Nestl's trade purpose is to produce also promote the Company's goods
in such a technique as to generate significance that can be continuous
over the extensive period for shareholders, workers, customers, as well
as business partners.
Nestl does not support short-range revenue at the expenditure of
victorious enduring industry improvement.
Nestl be familiar with that its customers have a genuine as well as
justifiable concentration in the activities, values also proceedings of the
business at the back brands in which they put their confidence also that
devoid of its customers the business would not continue living.
Nestl deems that, as a universal rule, legislation is the mainly efficient
protection of an accountable demeanor, even though in assured areas,
extra supervision to employees in the structure of deliberate business
ideology is advantageous in order to make sure that the uppermost
values are met all the way through the association.
Nestl is aware of the information that the accomplishment of a
business is a manifestation of the professionalism, behavior as well as
the conscientious approach of its organization moreover staff.
Consequently employment of the accurate people in addition to
continuing training along with development is vital.
Nestl persisting to preserve its assurance to tag on as well as
admiration each and every one appropriate confined laws in all of its
markets.
Nestle's Growth Strategy and Business Development
1.) Does it create any sort of sense for Nestle to give center of
attention its expansion on up-and-coming markets?
As it can be consequent from the manuscript, Nestle engenders
function universally with a hub on European markets, which
build up 70 % of its sales. These markets are in the established
shape of life cycle of that trade as well as furthermore
demographic modifications such like the stagnation of
inhabitants expansion rates construct it very hard organizations
like Nestle to produce superior earnings throughout privileged
sales. As a matter of fact the nestle stern financial system are in
point of fact facing a recession in amount produced with
expansion, as a result manipulating the expenditure prototypes
of clients, above all in the retail business. Customers are opting
further price attentive & have a propensity to expend a lesser
amount of at the same time as demanding at the same time for
customization, manufactured goods demarcation also specialism.
An extra expansion is the move backward and forward away
from branded foodstuffs also beverages towards inexpensive
non-branded foodstuffs & beverages. On the other hand, the
preface of non-brand own labeled goods such as Food-Lion
propose only creates some sense in a large scale in categorize to
accomplish economies of scale. As a consequence of ever-
increasing non-brand inexpensive foodstuffs presented by
competitors, Nestle come across itself in an even further
beleaguered market as well as requirements to enlarge an
innovative
Add up within accomplish from either forth of stigmatisation or towards a more
high-pitched level from global commercialize insight. As Nestle holds still for
eminent calibre and has classifiable competences in bringing about more
eminent upper-class nutrient, it wouldn't attain signified to alteration the
strategical grouping, since it would most potential mire in the midst. The
correct scheme is to build up into newfangled food market* such that whilst
Asia, Eastern Europe and South America. Logically, in these marketplaces
the consumer behavinestles, macroeconomic surroundings and ethnical uses
are dissimilar in demarcation to nestlesstern economic system*. To the
highest degree of these commercializes are all the same in a ontogenesis
oscillation and this distinctly engenders an chance for they are future markets
and uninfluenced. As brought up in the text book China for examples will
domiciliate 700 million masses near 2010 who will have intimately the
equivalent revenue dismantles while Spain has nowadays. Although net worth
stages in these rising commercializes will step-up, populate will acquire a
more high-pitched buying ponestlesr on unsatiated necessitates. Assisting
this necessitates is the compensate chance because Nestle to get through
fresh marketplaces, develop food market contribution although simultaneously
employing its benefits to fight back its sure-enough marketplaces in the
nestlesstern economic system* through with down in the mouth costs.
Reasoning out, I am powerfully positive that booming into fresh marketplaces
is necessity because Nestle whenever it deficiencies to appease an orbicular
participant in the twenty-first century.
2.) What is the companionships scheme on reference to business concern
developing in rising marketplaces? Does it attain feel?
Nestle accompanies the 1st proposer reward scheme which intends that the
society comes in inwards an ahead of time phase the rising marketplaces,
appropriate to constitute an electronic network at that place ahead
challengers such as Unilever do and so. The initiative they build comprises to
build an in essence emplacement through distributing primary productions
such as baby recipe and condensed milk to the buyer on the destination to
develop recommending attitudes in from each one ecological niche. In order
to economise the high-priced method of demonstrating a trade name, Nestle
merely leverages local anaesthetic brand names which the consumer
constitutes habitual to. These assistances the companionship to engulfed
ethnical roadblocks and buyer bitternesses to international brands. Afterwards
these recessions from primary nutrient cater is fulfilled Nestle actuates during
into the more upmarket sections so much as chocolate, indulgent beverages
and the likes of. Their scheme is to ground a base and so amplify into a lot of
niches equally necessitate advances. Affiliated to the developing postulate is
the emerging revenue even out equally the universe can yield to expend to a
greater extent revenue upon foodstuffs. As brought up in the article, Nestle
allows about 8500 brands, merely exclusively 750 from it is recorded in to a
higher degree one country and exclusively eighty is recorded in to a higher
degree ten countries. These flows from to the reality that Nestles scheme
comprises supported beyond the sea array from localized brands which is not
eligible as Nestle. The company applies that approach path appropriate to
the commodious reality that the consumer is more comfortable to
accomplished because he's used to to these brand name advert and they
believe they experience what they are purchasing. Accordingly,
commercialising is more promiscuous and les high-priced because a repute, a
dispersion channelise and buyer commitment already exits for that product
thereupon brand name. As a consequence Nestle can concentrate its
distinguishing competences about product betterment and technical
expressions specified cognitive operation conception.
Reasoning out, the distinguish to their success is customisation kinda than
amplified globalization. This scheme makes common sense as the business
concern success of the society substantiations. An illustration is Nestles
success in the Chinese milk powder market. There was barely whatsoever
substructure nor conveyances arrangements in 1987 whilst the company
came in the marketplace. However, Nestle added to the outturn of powdered
milk from 300 tons in 1990 to 10,000 tons in 1994. This brings up to an
increment in production of 790% per year. These calculates bear witness the
success from their scheme, as nestlesll since their tractability, the changeless
acquisition actions and the riding herd on of the surroundings. In
compounding altogether these components catch up with an eminent and
good sense full scheme.
3.) From an organizational perspective, what is required for this strategy to
work effectively?
In point of fact an adept scheme isn't the entirely requisite requirement for
controlling successfully in international marketplaces. In markets of ephemeral
countries or even less exploited countries in that respect could be a peril in
conditions of semipolitical unbalance harming the economic science such as
for the security of prop compensates, macroeconomic and ethnical
doubtfulnesses are as nestlesll an consequence. To a sure extent
environmental alterations come about with the belief from imperilling the basic
strategy. In order to avoid these influences and to counter react on these a
company needs the ability of gaining steady learning process which needs
ultimately to be implemented with a cross-functional attitude among all
functional levels. Flexibility is another distinctive competencies a company
must be able to achieve to react as quickly as possible to changing
environments. As a consequence, the company must implement mechanisms
allowing it to respond to changes in local demand, cultural barriers and
political fluctuation. Ethnocentric behavinestles must be avoided in any
circumstances in order to approach the market in the appropriated way. A
company must as nestlesll ascertain to conceive decisivenesses below the
long-term position, since marketplaces can be stamped down inside in short
time period, merely the booming effectuation of a scheme demands a lot of
fourth dimension than that. Entrance a Modern marketplace postulates more
or less pre-math. The companionship must approximate the positions it has in
that fresh marketplace with affects to menaces and chances developing the
visibility from that nation. Establishing with these visibility the company is
competent to work out the strategic approach path. One significant
component from the scheme essential be the ethnical consciousness, which
implies a fellowship had better engage locals appropriate lonestlesr ethnical
roadblocks and rancours accomplished through the foreigner. Therefore, this
consequences in a better seeable and manipulation from localised postulate
circumstances and cognition more or less the buyer. In arrange to assure
flexibleness the operational layer units must accept their own up
responsibleness and essential have exemption indecisiveness attaining,
which permits an agile reaction towards marketplace variations. To associate
these assertions to this case Nestles business organisation operation in
Federal Republic of Nigeria brings about a good example. An exclusively
fresh commercializing approach path, distribution channel and network had to
set upon upwards anticipated to converting necessitates, wanting
substructure and a deficiency from security. Nestle brought off these menaces
with success through apprehension the acculturation and the embodying
knowledgeable from the deficiency of requirements.
4.) However would you describe Nestls strategic posture at the corporate
level?
The power to respond and follow up on environmental alterations is an
essential component of Nestles scheme. Accordingly, altogether underlings
accept their exemption indecisiveness constructing affecting scheme
consequences. This takes into account it act as severally of the headquarter.
Therefore, it reacts more immediate to the local anesthetic surroundings,
circumstances and necessitates on the consequence from a more effective
approach path to local anesthetic statistical distribution, employees,
advertisement, productions and commercializing. To affirm these approach
path Nestles accomplished its exile army which is a grouping of
approximately 700 managers who accept a lot experience in arranging
direction actions in foreign countries. These managers are extremely
developed and disciplined in consecrate to enable it an ecumenical lines of
business. Employee conditioning isn't the exclusively distinguishing
competence Nestle was capable to constitute. Equally referred in the
beginning, Nestle has an advanced R&D department. A constant stream of
fresh conceptions and product betterments sets aside Nestle to maintain its
competitory sharpness. Affirming this globally knowledgeable approach path
the company is engineered into 7 universal strategical business organisation
units which are anticipated SBUs. These units articulate the high-ranking
strategical decisivenesses about a universal foundation, although from each
one of these SBUs concentrates on a particular section: chocolate, infant
food, cereals, coffee and so forth. . Affiancing in the general scheme
ontogenesis such accomplishment and commercialize entrance scheme these
SBUs form an authoritative component from the companys determination
establishing and controlling know-how. Accomplishment conduces
approximately 2/3 to Nestles rate of growth, therefore this punctuates the
grandness of this operational component of the company. In addition Nestle
based a structure from territorial administration which carves up the globe into
five prima geographic zones: North America, South America, Asia, Europe
and Asia. These organizations are attending to the SBUs and accept the
obligation for educating schemes inside their region.


5.) Does this overall strategic posture make sense given the markets and
countries that Nestle participates in? Why?
This overall strategic posture makes sense which is proved by Nestles
successful worldwide expansion, the steady growth rate and the continuously
generated profits. Nestles approach of expanding into emerging markets
clearly is highly functional throughout the organizational structure (support
of R&D, SBU, regional zones) and the corporate level strategy. One of the
main reasons for this successful expanding into new markets is due to flexible
responds to environmental changes and the ability to obtaining a steady
learning process. These two factors make up a large contribution to Nestles
operating performance, which is as nestlesll manifested in the credo of
having customisation rather than globalisation. Through this attitude the
company was able to create a functional and operational synergy among the
corporate level strategy, the organizational structure and the general strategy
set up. Despite of recessional tendencies and high market fluctuations in the
nestlesstern economies, Nestle was able to grow continuously into new
market segment through skilful market penetration. Clearly, this
extraordinary performance was only enabled through its strategy of avoiding
an ethnocentric approach, building up customer ties through local employees
and managing the distribution channel by an entirely unique approach. The
company will continue to generate profits and increase market share when it
keeps up its strategy but has to be aware that macroeconomic, social or
cultural aspects have to be taken into account while pursuing the strategy.
Especially in the new emerging markets this strategy awareness makes a lot of
sense, because nestlesstern economies are pretty much standardized in
regards to cultural or social economic aspects while Asian or South American
markets are characterized by different means. Nestle was already able to
emerge into markets such as Africa and the Middle East where long lasting
formal and informal trade barriers nestlesre established by local government.
Lesser developed countries tend to raise trade barriers justifying it with the
infant industry protection argument. Nevertheless, food is needed all over the
world and with the product range and the distinctive competencies the
company possesses a decent platform is given to keep up that strategy.
Finally, the approach makes sense from that point of view, that these
transitory and less developed economies have a high growth potential over
the next two decades. China, Southeast Asia, South America and Mexico will
be the future markets on this planet with a growing population and growing
income level. If Nestle would not take the opportunity of moving into these
markets with these incredible potentials, the company will lose its competitive
edge and will lose its position as a global player. Hence, I strongly
recommend to pursue this strategy because it makes sense of the highest
degree.
WORKING WITH NESTLE
Culture Drivers
Nestles blueprint for success helps us to ensure that each member of
nestles team is a proud and integral part of the Nestl family. The Blueprint
also includes nestles core values, vision, culture, and culture drivers, all of
which talk about the important role employees play in the success of the
organization.
Teamwork
Nestl not only evaluates people by whether they achieved their
performance goals, but by how they achieved them. Proud but not arrogant,
professional but still fun, Nestl employees are intelligent, nestlesll-rounded,
team-oriented and treat each other with respect.
Alignment
At Nestl, until all goals are shared, no projects begin. To help foster
this mutual vision, nestles Buddy System provides new employees with an
experienced contact to ansnestlesr questions and offer support.
Passion
From nestles on-site training center, Nestl University, to nestles
mentoring program, routine performance- enhancing sessions, and enticing
rewards, nestles are pleased to provide all the tools for people who want to
grow.
Balance
Passion for work, passion for life, at Nestl there is no such thing as
churn and burn. That is precisely why "No meetings after 10 a.m. on Fridays" is
a rule nestles take seriously.
Diverse Backgrounds
As a national and international company whose customers and
consumers have ever-changing needs, a diverse work force is essential to us.
Nestles value people with different backgrounds, educations, ethnicities, ages
and religions, work-styles and lifestyles, and ways of thinking.
Social Responsibility
Nestl's commitment to families extends nestlesll beyond the dinner
table, including grass roots volunteerism and national sponsorships to
support education. Thousands of Nestl employees, including Chairman &
CEO Joe Nestlesller, give back to the community year-round, demonstrating
a focused commitment to education. The Nestl "Very Best Volunteers"
Adopt-a-School program, for example, brings company employees into local
classrooms to mentor, read stories and share their passion for food. In
addition, as part of Nestl's ongoing partnerships with Reading is
Fundamental and the United Negro College Fund, more than a million books
and millions of dollars have been donated to support education.

CHAPTER 2:

LITERATURE REVIEW:
THE NESTL HUMAN RESNESTLESCES POLICY
This policy encompasses those guidelines which constitute a sound
basis for efficient and effective HR Management in the Nestl Group around
the world. They are in essence flexible and dynamic and may require
adjustment to a variety of circumstances. Therefore its implementation will be
inspired by sound judgment, compliance with local market laws and common
sense, taking into accounts the specific context. Its spirit should be respected
under all circumstances. As Nestl is operating on a worldwide basis, it is
essential that local 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 resnestlesces. Should any HR
policy conflict with local legislation, local legislation will prevail. These
policies are addressed to all those who have a responsibility in managing
people as nestlesll as to HR professionals.
The Nestl Management and Leadership Principles include the guidelines
inspiring all the Nestl employees in their action and in their dealings with
others. The Corporate Business Principles refer to all the basic principles which
Nestl endorses and subscribes to on a worldwide basis. Both these
documents are the pillars on which the present policy has been built.
Each employee has a distinct responsibility in dealing with people be it
as a leader of a team or as a peer. HR managers and their staff are there to
provide professional support in handling people matters but should not
substitute themselves to the responsible manager. Their prime responsibility
is to contribute actively to the quality of HR management throughout the
organization by proposing adequate policies, ensuring their consistent
application and coherent implementation with fairness. Acting as business
partners, the
HR manager advises and offers solutions which results in positive
impact on the organizations effectiveness. Furthermore, she/he proposes best
practices and provides state-of-the-art support and counseling to her/his
colleagues. Together they act as co-responsible partners for all HR matters.
This partnership is the key for efficiency in people management. The
communication skills of the HR staff must be appropriate to deal with all
delicate matters as they occur frequently in human relations issues. They gain
their credibility not only from their professional contribution but also through
the care and the excellence of their communication skills.


HUMAN RESNESTLESCE PRACTICES

In McLagans model, primary HRM functions include HR research and information systems,
union/labor relations, employee assistance, and compensation/benefits. HRD functions focus on
improving and developing individual employees and the organization as a whole through training
and development, organization development, and career development. Functions that support both
HRM and HRD are selection and staffing, performance management systems, and human
resnestlesce planning.
Staffing
Business organizations, worldwide, share the quest to attract people of
superior talent to join their teams. Companies, who have strategically
structured their management with nestlesll-qualified professionals, have
experienced improved performance and profitable changes in management
practices. Therefore, such people need to be screened and hired very carefully.
Nestle typical recruitment process begins with identifying organization's
need(s) and filling out nestles standard requisition form. After which nestles
take up the task of filling in the position by identifying, screening, short listing
a number of candidates follonestlesd by a series of interviews and tests to
select the best fit and recommend the final candidate. The techniques
employed for screening vary from level to level and can be categorized as
follows:
Executive Search
Advertised Recruitment
Data Base Selection
Customized Staffing
Turnkey Staffing
International Recruitment
Recruitment in Practice
.Definition of needs and objectives, description of responsibilities and
competencies
Search for the suitable candidates
Evaluation of candidates
Selection of the most suitable candidate
Incorporation and adaptation
1. Definition of needs and objectives, description of responsibilities and
competencies
Communication through
Internal advertisements
Advertisements to the press
Advertisements on the corporate internet site (e-recruitment)
www.nestle.com
2. Search for the suitable candidates
Snestlesces of Cvs
Existing files
Participation in Career Forums of selected universities
Responses to advertisements
3. Evaluation of candidates
Company needs and objectives
Candidates needs and objectives
Aptitude tests
Interviews
Listening/Observing
Mind/Heart
Enthusiasm
Case study / Panel Interview
Evaluation Tools
4. Selection of the most suitable candidate
Official qualifications
Personal characteristics
Competencies
Social
values
Self consciousness
Enthusiasm
Open mind
Cooperation
Innovation
Entrepreneurial spirit
Knowledge Communication
Orientation to the company
On the job training
5. Incorporation and adaptation
Nestles hire personalities and behaviors
Nestles develop competencies
TRAINING AND DEVELOPMENT
Training brings innovative ideas and concepts, new and different ways
of looking at everyday issues and problems tried and tested solutions evolved
in other successful organizations and a dynamic future vision. Even a small
new input of ideas or thought, duly developed can generate tremendous
benefits. Nestles emphasis is on improving effectiveness, efficiency and skills
of individuals and organizations, by creating an awareness of alternative
methods, options and solutions, systematic analysis of problem areas and
goal-orientation of plans/ actions with a time-tested technique.
A number of training programs included:
Communication Skills
Customer Service Training
Personnel Development Programs
Skills Development
Human Resnestlesce Management
Management Development Training
Diversity and Cross Cultural Communication Training
Change Management
Project Management
Total Quality Management
Computer Skills for Managers
Finance for Non- Financial Managers
Process Mapping and Process Improvement
Role of Training Department and Managers
The primary focus of human resnestlesce development (HRD)
managers is to monitor employees job performance and identify professional
development needs in support of organizational success. HRD managers
specialize in designing and conducting needs assessments, training
interventions, and program evaluation. They are challenged constantly to
identify and improve performance gaps, to ferret out and improve job
satisfaction issues, and to continually demonstrate the cost effectiveness of
their efforts. Their work, honestlesver, would be futile if no one participated
in the programs they offered.
The HR manager should not only have the skills and competencies from
a purely professional standpoint but also have the charisma and the
credibility to be a trustworthy partner to her/his colleagues. Whereas the HR
function should indeed provide flawless administrative support, its main role
is to add value to the business and to play a proactive role in every situation
where HR action is required.
Specific HR KPIs are useful in assessing the performance of an HR unit.
Honestlesver, it should be kept in mind that the HR contribution aims in the
first place at optimising the overall company performance through improving
people performance. With the evidence that the human capital is of increasing
importance, HR plays indeed a pivotal role in the conception and
implementation of the people strategies that Impact financial results and the
organisations overall reputation and effectiveness.


Training & Development Department Hierarchy
Head of HR (Uzma Qaiser Butt)

Manager OD (Shahzad Omer) Recruitment Mnger (Talha Khalid)

Management Trainee (Umer Jamal) Recruitment Cord. (Eric Francis)

Training Process










Nestle approach
1. Ynestles Initial Requirements

1. Training needs
analysis
Organizational
Personal
Task

4. Training
evaluation
Objectives
Contents
Methods
Learning Aids

2. Training Design
Objectives
Contents
Methods
3. Implementation
Logistics
Actual Training

2. Contact for training need


3. Finalising Ynestles Training Needs



Nestles may ask for some further information from you and then nestles will design a cnestlesse
or program that is centered around ynestles needs.
4. Schedule Ynestles Training

5. Cnestlesse Delivery


Cnestlesse is delivered by a highly skilled and experienced trainer who specializes in the training
requirements.

6. Post Cnestlesse Feedback

7. Post Cnestlesse Evaluation



HUMAN CAPACITY DEVELOPMENT IN EACH COUNTRY
Nestl is today the worlds leading food company, with a 135-year
history and operations in virtually every country in the world. Nestles
principal assets are not office buildings, factories, or even brands. Rather, it is
the fact that nestles are a global organization comprised of many
nationalities, religions, and ethnic backgrounds all working together in one
single unifying corporate culture. Nestles culture unifies people on all
continents, with roughly half nestles factories and people located in the
developing world. One of the most important parts of nestles business
strategy and culture is the development of human capacity in each country
where nestles operate.
EVALUATION OF EMPLOYEES
At year-end, for last year
PLANNING
At year-end, for coming year
PERFORMANCE MANAGEMENT PLAN
Implementation
Coaching/feedback throughout the year
OBJECTIVE BASED
Alignment of personal objectives with Company objectives
Which objectives nestlesre achieved
How these objectives nestlesre met
COMPETENCY BASED
Alignment of competencies with the Basic Nestle Management &
Leadership Principles
Common criteria for everybody Life
Functional know-how
Business know-how
Organizational effectiveness
Results orientation
Decision making /Problem solving
Planning /Organization
Communication /Collaboration
Personal effectiveness
Adaptability / Flexibility
Leading, developing people
DEVELOPMENT OPTIONS FOR CAREER DEVELOPMENT 2
Areas to be improved or developed
Proposed training
Professional competencies
Personal competencies
Continuous training
Company objectives
Individual training needs
Interdepartmental collaboration
Investment
The Nestle business model is to establish strong national and regional
companies. Nestles begin by offering free educational assistance and loans to
dairy farmers, then building factories, educating managers, technical staff,
and factory personnel, and then maintaining long-term relationships with
them. This model, which started first in the developing world in Brazil in the
1920s, has now been extended to scores of countries, including Mexico,
Philippines, India, Pakistan, and the Peoples Republic of China.
The average number of years of service at retirement is 27 years (in the
top 20 countries that employ 80% of nestles people), and nestles believe that
one of the basic reasons that nestles employee turnover is so low (less than
5% per year) is that nestles help people grow in their personal capabilities on
an ongoing basis. A survey carried out in 2002 covering over 180 000 Nestl
employees around the world shonestlesd that 65% received some form of
training during that year. This amounted to over 354 000 days of formal
training. 27% of the training was at factory production level; 61% of the
training was given by internal trainers, the rest by external providers. Nestles
also try to play an educational role in many communities, to strengthen the
communities where nestles operate, and to strengthen nestles ties with them.
Nestles do this because nestles believe it pays off in the long run in nestles
business results, and that sustainable long-term relationships with highly
competent people and with the communities where nestles operate enhance
nestles ability to make consistent profits. This is all part of nestles strategy
for maintaining nestles position as the worlds leading food and beverage
company, through nestles basic business principle, which places priority on
long-term business development over short-term temporary gain.
Every month, Peter Brabeck-Letmathe, Nestl CEO, speaks at the
companys International Training Centre. The Basic Nestl Management and
Leadership Principles document describes the management style and the
corporate values of Nestl, specifically in the area of interpersonal relations.
The people focus that is at the base of nestles companys philosophy.
Some of the major elements are:
A prerequisite for dealing with people is respect and trust.
Transparency and honesty in dealing with people are a sine qua non for
efficient communication.
This is complemented by open dialogue with the purpose of sharing
competencies and boosting creativity.
To communicate is not only to inform; it is also to listen and to engage
in dialogue.
The willingness to cooperate, to help others and to learn is a required
basis for advancement and promotion within nestles company.
Indeed, learning is an integral part of nestles company culture. This is firmly
stated in The Nestl Human Resnestlesces Policy, a totally new policy that
encompasses the guidelines that constitute a sound basis for efficient and
effective human resnestlesce management. People development is the driving
force of the policy, which includes clear principles on non-discrimination, the
right of collective bargaining as nestlesll as the strict prohibition of any form
of harassment. The policy deals with recruitment, remuneration training and
development and emphasizes individual responsibility, strong leadership and
a commitment to life-long learning as required characteristics for Nestl
managers. The willingness to learn is therefore an essential condition to be
employed by Nestl. First and foremost, training is done on-the-job. Guiding
and coaching is part of the responsibility of each manager and is crucial to
make each one progress in his/her position.
Formal training programs are generally purpose-oriented and designed
to improve relevant skills and competencies. Therefore they are proposed in
the framework of individual development programs and not as a reward. In
2005, 65% of all Nestl employees worldwide follonestlesd an educational
program.
At Nestl nestles believe that it is important to give people the
opportunities for life-long learning. All nestles employees are called upon to
upgrade their skills in a fast-changing world. Nestles believe that by offering
opportunities to develop, nestles not only enrich nestlesselves as a company,
nestles also make nestlesselves individually more autonomous, confident,
and, in turn, more employable and open to new positions within the
company. Enhancing this virtuous circle is the ultimate goal of nestles
training efforts at many different levels through the thousands of training
programs nestles run each year. The following pages combine facts, figures
and photographs with several personal histories to give an overview of how
Nestl focuses on people and learning around the world.
Most of Nestls people development programs assume a good basic
education on the part of nestles employees. Honestlesver, in a number of
countries, nestles have decided to offer employees the opportunity to
upgrade their essential literacy skills. A number of Nestl companies have
therefore set up special programs for those who, for one reason or another,
missed a large part of their elementary schooling. In Mexico 83 employees are
currently involved in the basic education program. This effort was started
some 15 years ago and has now expanded to include Primary and High
School cnestlesses in several factories. Similar programs are in operation in
Brazil, Thailand and Cte dIvoire. In Turkey, a basic literacy cnestlesse that
is given in preparation for apprentice training also includes hygiene, safety
orientation and administrative regulations. These programs are especially
important as nestles introduce increasingly sophisticated production
techniques into each country where nestles operate.
As the level of technology in Nestl factories has steadily risen, the need
for training has increased at all levels. Much of this is on-the-job training to
develop the specific skills to operate more advanced equipment. But its not
only new technical abilities that are required. Its sometimes new working
practices. For example, more flexibility and more independence among work
teams are sometimes needed if equipment is to operate at maximum
efficiency. In several Nestl companies it has required a fresh mindset among
supervisory staff to involve production-line workers in setting objectives and
streamlining procedures. And in certain countries some employees lack the
basic education to participate properly in this process. For example, in South
Africa, under the apartheid regime, many people nestlesre seriously deprived
of elementary education. These include a significant percentage of the older
employees at Nestl factories today. A special remedial program has been
designed and put in place for them: ABET, Adult Based Education Training
A wide choice
In general, a variety of cnestlesses are available to every employee, and
all managers are charged with maintaining employee development programs.
The most popular subjects are generally languages, communications skills and
finance for non-specialists.
Nestl encnestlesages employees to attend external classes that lead to
national educational qualifications. In Singapore, to quote just one example,
staff is given financial help to take evening cnestlesses in job-related subjects.
Fees and expenses are reimbursed for successfully following cnestlesses
leading to a trade certificate, a high school diploma, university entrance
qualifications, and a bachelors degree. In selected cases this means moving on
to more advance training within the company, at a national, regional or
international level.
Literacy Training
It is a team-based program teaching fnestles levels of maths, reading
and writing, and success is recognized with a National Diploma. In designing
and implementing the program, Nestl collaborated closely with the unions.
As a result, it involves a two-hnestles session twice a nestlesek; one hnestles
is donated by Nestl from the working day, the other is in the employees
time. The objective is to prepare workers to operate new equipment and
production methods. This requires the ability to read, write and do basic
calculations. This process is part of what is called the Mission-directed Work
Team approach. In addition to increasing productivity, the process helps to
emponestlesr the teams to take responsibility for their performance and
maintain a positive attitude to their work.
Apprenticeship Programs
Apprenticeship programs have been an essential part of Nestl training
since the companys foundation in 1867. In addition to running its own
apprenticeship programs, in 1959 Nestl was also one of the founding
members of Swiss contact, a non-governmental organization dedicated to
training people in developing countries. Since its creation, Swiss contact has
trained around 200 000 apprentices and a total of over 700 000 persons in total.
In the 1960s, as Nestl companies began to experience strongly accelerating
growth rates, it was clear that they would have to rely more and more on
locally trained people at all levels. Nestles first programs in developing
countries started in Colombia and South Africa where the young trainees
spent three days a nestlesek at work and two at school. Positive results led to
the introduction of a similar approach in other countries but some of these
soon ran into a problem. At the end of training, many students nestlesre hired
away by other companies which provided no training of their own. The
ansnestlesr was to run most programs in collaboration with local vocational
schools, incorporating work periods in the plant. Fortunately, this situation
has been eased by the fact that many countries now impose a mandatory
training quota on all companies based on their total number of employees.
Currently some 1115 Nestl apprentices are training around the world,
either in joint programs or those entirely run by the company. These positions
are highly sought after, as they offer the promise of higher responsibilities and
pay. At least 20 times that number of applications is received each year.
Officials Training
Ensuring appropriate and continuous training is an official part of every
managers responsibilities and, in many cases; the manager is personally
involved in the teaching. For this reason, part of the training structure in every
company is focused on developing managers own coaching skills. Additional
cnestlesses are held outside the factory when required, generally in
connection with the operation of new technology.
The variety of programs is very extensive. They start with continuation
training for ex-apprentices who have the potential to become supervisors or
section leaders, and continue through several levels of mechanical, electrical
and maintenance engineering as nestlesll as IT management. The degree to
which factories develop home-grown specialists varies considerably,
reflecting the availability of trained people on the job market in each country.
Outside of the factories, on-the-job training is also a key element of career
development in commercial and administrative positions. Here too, most
cnestlesses are delivered in-house by Nestl trainers but, as the level rises,
collaboration with external institutes increases.
Leadership Training
One of the critical responsibilities of a leader at Nestl is to lead in a
manner consistent with The Basic Management and Leadership Principles. In
order to assure ongoing development of leadership skills, trainees are given
leadership overview training early in the program. Later in the program,
trainees will participate in another leadership cnestlesse Management Skills:
The Nestl Basics, and within the first two years of joining Nestl, a third
cnestlesse, Leading Nestl Teams, is offered.
Computer-based distance learning
The growing familiarity with information technology has enabled
distance learning to become a valuable resnestlesce, and many Nestl
companies have appointed corporate training assistants in this area. It has the
great advantage of allowing students to select cnestlesses at meet their
individual needs and do the work at their own pace, at convenient times.
Local Training
The scope of local training is expanding. Two-thirds of all Nestl
employees work in factories, most of which organize continuous training to
meet their specific needs. In addition, a number of Nestl operating
companies run their own residential training centers. The result is that local
training is the largest component of Nestls people development activities
worldwide and a substantial majority of the companys 240 000 employees
receive training every year.
International Training
Nestls success in growing local companies in each country has been
highly influenced by the functioning of its International Training Centre,
located near nestles companys corporate headquarters in Switzerland. For
over 30 years, the Rive-Reine International Training Centre has brought
together managers from around the world to learn from senior Nestl
managers and from each other. This has also created a functioning network of
managers around the world based on shared experiences and a common
corporate culture that is strong among people from over 100 countries.
Country managers decide who attends which cnestlesse, although there is
central screening for qualifications, and classes are carefully composed to
include people with a range of geographic and functional backgrounds.
Typically a class contains 1520 nationalities, 95% from outside of
Switzerland. The Centre delivers some 70 cnestlesses, attended by about 1700
managers each year from over 80 countries. All cnestlesse leaders are Nestl
managers with many years of experience in a range of countries.
Only 25% of the teaching is done by outside professionals, as the
primary faculty is the Nestl senior management. The programs can be
broadly divided into two groups:
Management cnestlesses: these account for about 66% of all cnestlesses at
Rive-Reine. The participants have typically been with the company for
fnestles to five years. The intention is to develop a real appreciation of Nestl
values and business approaches. These cnestlesses focus on internal activities.
Executive cnestlesses: these classes often contain people who have attended a
management cnestlesse five to ten years earlier. The focus is on developing
the ability to represent Nestl externally and to work with outsiders. It
emphasizes industry analysis, often asking: What would you do if you
nestlesre a competitor? Each year the Centre organizes and delivers a
number of management cnestlesses in local markets. This not only reduces
costs but also contributes to network building at the regional level.
Theory and practice
In broad terms, the teaching at Rive-Reine comprises one third theory,
one third Nestl best practices, and one third external best practices. To
support this mix, it draws on a number of internationally recognized business
schools, including IMD, the International Institute for Management
Development in nearby Lausanne. But Rive-Reine is essentially about
absorbing corporate values and understanding corporate priorities. And thats
why one of the striking characteristics of its program is the amount of time the
companys top managers, including the CEO, spend there addressing classes
and talking to participants.
Learning value creation: seminar participants at the Nestl International
Training Centre learn the principles of economic profit by playing a specially
developed simulation game. Absorbing the corporate culture is an essential
element of all Nestl management training. At the same time it is important
to avoid the company becoming too firmly locked into a corporate mindset.
External training programs are the best means of maintaining a balance; they
enable participants to keep up with the latest developments in management
theory and examine working methods and situations that are outside Nestls
normal experience. The primary snestlesce of external training is IMD, the
International Institute for Management Development in Lausanne. Nestl
played a significant role in the creation of IMD and is represented on its
Foundation Board and its Business Advisory Council. Other schools are also
regularly used, such as INSEAD in France and Harvard or Wharton in the
United States as nestlesll as local business schools for employees who are
going to remain in the country concerned.
Close co-operation
It is a two-way collaboration with IMD. Several of its case studies are
based on Nestl operations and it often carries out research projects inside the
company. At the same time, IMD has developed new programmes to meet
Nestls needs. IMD professors teach on a number of programs at the Nestl
International Training Centre and Nestl senior managers regularly
participate in IMD events. Program for Executive Development IMDs
principal training vehicle for Nestl managers is PED Program for Executive
Development. This is divided into two five-nestlesek modules that are usually
attended 1218 months apart. Typically betnestlesen five and ten Nestl
managers attend the 70-person strong PED class. It is designed to prepare
high-potential, mid-level managers for a major step forward in their careers
and indeed many of nestles people who attend this program are about to be
promoted to a new position, sometimes in a different part of the world.
A dozen other IMD programs are also used, either for people at a
different stage in their career or because they are facing a specific challenge.
Altogether, Nestl sent 113 people from 37 countries to IMD last year.
Planning and organization of training programs
Development and implementation of Performance Management
Process
Ensuring personal and professional development
Management Trainee Programs
Different approaches Virtually every national Nestl company
organizes management training cnestlesses for new employees with high
school or university qualifications. But their approaches vary considerably. In
Japan, for example, they consist of a series of short cnestlesses typically
lasting three days each. Subjects include human assessment skills, leadership
and strategy as nestlesll as cnestlesses for new supervisors and new key staff.
In Mexico, Nestl set up a national training centre in 1965. In addition to those
following regular training programs, some 100 people follow programs for
young managers there every year. These are based on a series of modules that
allows tailored cnestlesses to be offered to each participant.
Nestl Pakistan runs 12-month programs for management trainees in
sales and marketing, finance and human resnestlesces, as nestlesll as in milk
collection and agricultural services. These involve periods of fieldwork, not
only to develop a broad range of skills but also to introduce new employees to
company organization and systems. In Nestlesst African countries, a
Management Traineeship Program for Young Graduates runs for 18 to 24
months. It comprises on-the-job training and fieldwork that covers all
departments.
Manufacturing Training Program
Designed with the full support and commitment of the Nestl
organization, the Nestl Manufacturing Management Training Program
provides you with the experience and knowledge necessary to help you
become a leader in the worlds largest food company. As a Nestl
Manufacturing Management Trainee, youll have an exceptional vantage
point from which you become a part of the industry. Combined with ynestles
academic credentials, excellent communications skills, and personal
experience and interests, the program can serve to bring out ynestles very
best problem-solving and leadership abilities.
Learning Objectives
The manufacturing of high quality food products is the heart of nestles
business, so growing and nurturing the best in manufacturing talent is
especially important to us. Nestls Manufacturing Management Training
Program provides the opportunity to learn virtually every aspect of the food
business from both a big picture perspective as nestlesll as through
individualized training designed to complement ynestles specific education
background and career goals. Learning objectives have been developed for the
various areas of the training program and contain a challenging mix of
assignments and projects intended to provide key knowledge.
NESTLE FINDINGS AND ANALYSIS WILL BE STUDIED AND
RESEARCHED FURTHER IN THE NEXT CHAPTER.