Running Head: ORGANIZATIONAL BEHAVIOR OF NESTLE

Organizational Behavior of Nestle

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ORGANIZATIONAL BEHAVIOR OF NESTLE

Table of Contents
Introduction................................................................................................................................3
Discussion ..................................................................................................................................3
The Nestles Organizational Behavior Practices....................................................................3
Communication Strategies..................................................................................................3
Barriers to Communication ................................................................................................4
The Nestles Organizational Behavior ...................................................................................4
The Nestles Organizational Culture......................................................................................5
The Importance of Culture in Nestle ..................................................................................5
The Dimensions of Culture at Nestle .................................................................................6
The Politics and Power at Nestle............................................................................................6
The Expert Power ...............................................................................................................7
The Legitimate Power ........................................................................................................7
Conclusion .................................................................................................................................7
The Analysis of Nestle ...........................................................................................................7
Recommendations ..................................................................................................................9

ORGANIZATIONAL BEHAVIOR OF NESTLE

Organizational Behavior of Nestle

Introduction
Measured by revenues, Nestle is the largest food company. The companys
headquarters are located in Vevey, Switzerland, and it is Swiss multinational health-related,
snack food and nutritional consumer goods company. The company operates in eighty six
countries and has around four hundred and fifty factories. The company was founded by
Henri Nestle in the year of 1866 and is the leading wellness, health and nutrition company in
todays world. In this Assignment, you will analyze and evaluate the Nestle Company in
reference to organizational behavior.

Discussion
The Nestles Organizational Behavior Practices
Communication Strategies
The Nestle has very informal working environment so that people can easily
communicate with their co-workers. Employees can communicate with their superiors and
their suggestions are always welcomed, as mostly downward communication takes place
within the organization (Grunig, 1982). To some extent workers and employees are
encouraged to participate in decision making and in every new package offered by the
company, the opinions of the employees are asked. No form of written communication was
found until and unless there was an unexpected holiday announcement or a major event.
There is an open communication channel within the company since the employees
mostly contact each other through email or phone call. For major decisions, general managers
of all the departments interact with each other at the higher level and the decision is informed
to the lower level. To achieve the institutional objectives and goals, there is the network of

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communication links within the organization. In the hierarchy of the company, both upward
and downward open communication channels are maintained by the company, which in
creating a good working environment for the employees, is quite effective.
Sending messages to persons outside the company refers to external communication,
in Nestle. Commercial breaks, by giving packages, media advertisement, by the annual
report, through presidents messages, print media advertisement, and through services, are the
sources used by Nestle for its external communication.

Barriers to Communication
Nestle faces a magnificent problem in its daily business activities since it is a
multinational company comprising of thousands of employees from entirely different culture
background and different areas (Carollo, 2012). All over the world, a large area is acquired
by Nestle, and it is not easy to operate such huge mob employees.

The Nestles Organizational Behavior

An organization is created by groups, groups are created by individuals, and therefore,
individuals are the bricks of an organization (Andr, 2008). Two major areas are focused by
the organizational behavior of Nestle. First, based mainly on contributions from a
psychologist, the organizational behavior looks at individual behavior. Motivations, learning,
perception and personality, are the various topics that are included in this area. The
importance of the individual is recognized by Nestle. Great focus has been placed by the
company on employee participation and empowerment, which are necessary for success and
long-term growth of the company.
Therefore, the suggestions, concerns and issues of employees are always welcomed.
The employees of Nestle are focused on openness, loyalty, consistency, competence and

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integrity. Secondly, the organizational behavior of the company is concerned with group
behaviors, that influence, conflict, team building and roles. It is easy to for successful groups,
once the individuals are agreeable, responsible, energetic and skillful. Teams and committees
have been formed that work independently and cohesively, in order to make all business
affairs effective, smooth and transparent.

The Nestles Organizational Culture

A system of shared meaning that determines in large degree how employees act
within the organization is known as, organizational culture. The corporate culture of Nestle
underwent a comprehensive renewal program, after its inception and in the year of 2004, got
fully implemented. The revamping of the employee transparency and empowerment in
decision making through cross functional teams, rationalization of staff and organizational
architecture, was included in this program (Deshpande & Webster Jr, 1989). The major
operations of the company were divided into independent activities supported by other,
informative, financial and legal services, by this new corporate renewal program. Related
balances and checks were established by incorporating control and monitoring systems, in
order to monitor and reinforce this structural change.

The Importance of Culture in Nestle

Nestle is a sales oriented company, in accordance to the opinion of the sales officer of
Nestle. A symbol of sense of responsibility, more earning and profit, depicts the strong
culture. The ultimate objective of the organization is a significant concern for every organ of
the organization, and it is also a monument of well-disciplined enterprises. Every individual
to top manager from worker are aware of the outcome of efforts being invested and their
rights, responsibilities and privileges at the company (Broeckx & Hooijberg, 2010). An

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increasing work culture that gains a better understanding of forces that shape expectations,
behavior patterns, attitude and motivation and enhances employee motivation are aimed by
special efforts made by the company for implementing relative strategies and continuously
enriching the business systems of the company.

The Dimensions of Culture at Nestle

Employees were found not much encouraged to be risk taking and innovative, in
accordance to the survey conducted. Employees were given importance, and outcomes or
results were both focused by the manager inclusive of the techniques required to accomplish
those outcomes. The effect of outcomes on people within the organization is considered by
the management decisions. A central part of the organizational culture is their employees. In
contrast to growth, the status is maintained by the stability Nestle. Team orientation i.e. work
activities are organized around them, are emphasized by the managers.
Nestle have an Ethics policy and business principles, that reflects the high ethical
standards of the company (Nijhof & Rietdijk, 1999). The meeting of all business challenges
and the development of the human capital is resulted from the environment of continued
adherence to zero tolerance and best business practices, good governance, and corporate
reforms that are encouraged and valued.

The Politics and Power at Nestle

In desired to do something, other people are directed by the potential influence and
ability, which is known as power. Formal and interpersonal, are the two types of power
normally used by the managers in an organization (White & Dozier, 1992). The individual
position is the basis of formal power in an organization and individual unique characteristics
are the sources through which the personal power is derived from.

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The Expert Power

A power received by a person on the basis of a result of her or his position in the
formal hierarchy of an organization, is the legitimate power, which is used in Nestle. The
authority to use and control the organizational resources is upheld by the employee.

The Legitimate Power

Expertise, knowledge, and unique skills are the basis of influence of expert power.
One of the most powerful sources in an organization is the expertise. To achieve goals, the
organizations have become increasingly dependent on experts as jobs have become more
specialized.

Conclusion
The Analysis of Nestle
After studying various issues within the organization related to the organizational
behavior at Nestle I analyzed that Nestle is a global company whose goal setting for
employees, related to the organizational behavior, is done by the management, who is
effective and according to the competition in the private sector, set the goals of the
employees. Chances to share ideas for decision making are given to employees since Nestle
has a participative management style. Allowances, such as, mobile and fuel allowance,
increment in salaries, team leader is the form on the basis of promotions, and cash bonuses
are the different kinds of rewards given to employees by Nestle.
Customer focus, flexibility, decision making and problem solving, co-operation and
team work, communication skills and leadership, are the factors on which the performance of
the employee is assessed by Nestle. To motivate their employees, the Nestle provides salaries

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equivalent to the market value to its employees whose performance is not up to the mark,
which was a highly different type of reward system found in Nestle. Employees whose
performance level is not up to the mark are not fired by the management, which is another
particularly interesting fact that I found in Nestle.
Employees are satisfied with their jobs and the company overall. Empowerment to do
their work is given to employees to some extent as most of them agree that they are not
facing mental or physical problems due to their jobs. Proper counseling is provided to
employees since stress is an inevitable factor and job stress is faced by employees, in
accordance to my opinion. A positive attitude was reflected towards job by most of the
employees. To make the workforce more productive, there is still a need of improvement in
strategies of Nestle, as in accordance to the overall picture of the company; employees are
somewhat satisfied with their jobs.
For the current improvement in job, training is given to employees at Nestle.
However, for future skills, a developmental program is provided to employees. Development
program and training provide help to both non-managers and managers. The development
programs are a significant concern for managers mostly, whereas, training is a significant
concern for non-managers. To ensure a workplace that necessitates respectful and open
communication between the abilities of the employee is the aim of Nestle. In concern to the
physical working, almost all employees are satisfied.
The combination of leaders that are both leadership oriented and task oriented is
acquired by Nestle that shows the leaders of Nestle can manage their team more efficiently
and effectively and can perform better in all situations.

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Recommendations
The company must adopt the following things, to increase positive impression and
goodwill of Nestle among customers and employees. For employees, the company must
enhance more promotion opportunities. For improving their skills, an additional benefit to
employees can be given if the specific job related training is imparted to employees. In order
to capture a larger market and the customers of low income group, the company must lower
its rates. The employees must feel good about their employer and a greater trust to employees
must be shown by the employer.
To participate in decision making, the employees must be encouraged. To provide
employee with information, related to the mobile industry and future prospects at Nestle,
professional counseling programs must be started by the company. In decision making
process, employee involvement and sharing of ideas must be encouraged, and effective
communication with each employee must be maintained and established. There must be no
artificial barriers between management and employees.

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References

Andr, R. (2008). Organizational behavior. Pearson/Prentice Hall. Retrieved from:

http://www.lavoisier.fr/livre/notice.asp?ouvrage=2570987
Broeckx, P. V., & Hooijberg, R. (2010). Nestl on the Move: Evolving Human Resources
Approaches for Company Success. Monographs in Leadership and Management, 4,
51-66. Retrieved from:
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3290
Carollo, B. (2012). Corporate Management in Action-Nestl and Globalisation. GRIN
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Nijhof, A. H., & Rietdijk, M. M. (1999). An ABC-analysis of ethical organizational
behavior. Journal of Business Ethics, 20(1), 39-50. Retrieved from:
http://link.springer.com/article/10.1023/A%3A1005979101679#page-1

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White, J., & Dozier, D. M. (1992). Public relations and management decision
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