History And Organisational Examination Of Nestle Corporation

History And Organisational Examination Of Nestle CorporationNestle is a multinational company with its solid groundwide operations in over 84 countries. Nestle is the worlds largest food company with its international headquarters at Vevey, Switzerland. Nestle has al nearly 500 factories world wide out of which 220 argon located in Europe, 150 in America and 130 in Africa, Asia and Oceania. It employs almost 2,30,000 mint.Founder of Nestle was German born Henry Nestle who was nourishment in a small town of Switzerland named Vevey. From a modest beginning he founded the company in 1866 at Switzerland for manufacturing milk powders for babies. Necessity is mother of device is applicable in the invention of a special food product Farine Lactee made from Cereals milk to saved the lives of many infants because, at that clipping Switzerland faced cardinal of the superiorest infant mortality rate the milk realiseula act as nectar that saved the lives of many infants whose mothers were un-able to breast feed successfully. Since than Company keep up ever looked forward and have achieved set targets goals.At present Nestle is the worlds largest food company, with its international head quarters at Vevey, in Switzerland. Nestl is often quoted by most as Multinational of Multinationals. There is a good reason, as less than 2% of the turnover comes from domestic market in Switzerland.Nestlis very much change in its operations most of the markets are given considerable autonomy in its operation. It is more of a people products orientated company rather than systems oriented company. There are unwritten guidelines which are to be followed, based on common senses a strong set of moral principals emphasizing a administrate of note for fellow beings. Nestle has always adapted to the local conditions and at the same time integrates its Swiss heritage. It has always taken a long-term come across in the countries in which it operates.Therefore, one can see a l ot of investment RD and risk taken in smart product areas. There is a great emphasis placed on training by the company. It believes in rewarding and promoting people from within.Today its product brand name Nestle is associated with tone of voice products in worldwide consumer markets.The NestWhen Henry Nestle introduced the first commercial infant formula in 1867, he also created a symbol of the Birds Nest, bright translation of his name, which personifies the companys business. The symbol, which is universally understood, evokes security, motherhood and affection, nature and nourishment, family and tradition. Today it is the central element of Nestls corporate identity and closely parallels the companys corporate values and culture.Main engineerWorlds leading nutrition, health and wellness company.Founded in 1866 in Vevey, Switzerland.It has around 280,000 employees all over the world.It owns 450 factories in 84 countries.Product categories include Soluble Coffee, Infant Nutri tion, Bottled Water, Condensed and Evaporated milk, glassful Cream, Chocolate and Malt drinks.VISIONNestls aim is to meet the various needs of the consumer everyday by marketing and selling foods of a consistently high quality.MISSIONWe strive to bring consumers foods that are safe, of high quality and provide optimal nutrient to meet physiological needs. Nestle helps provide selections for all soulfulness taste and lifestyle preferencesHR at NESTLENESTLES SPIRITMaking Big Investments in PeopleBelieves in building Leaders of Tomorrow eye VALUEA prerequisite for dealing with people is respect and trust.Transparency and honesty in dealing with people are necessary 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 provideingness to cooperate, to help others and to learn is a required basis for advancement and promot ion within the company.Human Resource PoliciesDesigned in alignment to the Business Objectives.Incorporates practices like prank Enlargement as well as Job Enrichment.It follows mainly three different policies-Nestle makement leadership principlesNestle human resources policyNestle people emergence reviewNestls CultureCommitment to a strong work ethic, integrity, honesty and quality.Personal relations based on trust and mutual respect..A personalized and direct way of dealing with each other. Openness and curiosity for dynamic and future trends in technology, changes in consumer habits, new business ideas and opportunities, while maintaining respect for basic human values, attitudes and behavior.HR PracticesRecruitmentTrainingPerformance ManagementRewards and IncentivesEmployee RelationsChange ManagementTrainingLiteracy training- to upgrades essential literacy skills, particularly for workers who operate new equipmentLocal Training Programs- on issues ranging from technical, le adership, and communication and business economics.Performance ManagementTransparent performance appraisal systemIt has the following characteristics-RecruitmentFormal judging by Line Managers and HR once in a year with feedback.Subordinate can question an unfair evaluation.Specific Key Performance Indicators have been enlisted by the HR department.Key performance indicator-Achievement following the Nestle management and leadership principles.Remuneration structure and promotion criteria take into account separate performance.People with realism, hard work, honesty and trustworthiness are looked for.Match between candidates values companys culture are recruited.Recruitment for management aims take place in the head office by top management and all others at the branch level. The existing employees are promoted to higher posts as per the requirements. There are no lateral recruitments. Another source of recruitment is campus placements and human resource consultancies to look for the enthusiastic, motivated and fresh pool of talent.Decision to hire a candidate is ultimately taken by HR professionals only and no preference is given to external consultant. This is done to finally have the discretion power in the men of Company.Employee RelationEmployee turnover is less than 5%., which is considered to be very low for a multinational corporation.Nestle has an open culture upward communication especially in case of grievance redressal is encouraged.Work/Life balance is given importance, as illustrated in the Nestle Human Resource Policy document.Nestle Family one-year events are organized by their HR department whereby employees along with their families are invited.Emphasis is laid on safety of employeesREWARDS INCENTIVESPassion to Win AwardsLong-service AwardsNestle cerebration AwardTalent Management-To develop the framework and processes which will enable the company to identify and develop the potential of employees at Nestle.Learning and development- around-the-clock Improvement Creativity and InnovationChanging mapping of HRMotivate and to develop people.Develop open-mindedness as well as a high level of interest in other cultures and life-styles.create a climate of innovationHR professionals should be able to inculcate the willingness to accept change and the ability to manage it.International experience and understanding of other cultures will prepare the employees to face the challenges in global markets.The aim of the Human Resources Strategy is to support staff. This it will do by developing and promoting good HR practice for the recruitment and development of high quality staff, by effectively managing their performance and by providing appropriate rewards and whippy opportunities that allow individuals to manage their own development.Core Functions of International Human Resources In NestleRecruitmentSelection ProcessExpatriatesPerformance AppraisalTraining and growingCompensationSources of RecruitmentThere are many different types of interviews. Once you are selected for an interview, you may experience one or more of the situations described below. When you muniment an interview, try to get as much information about whom you will be meeting. It is rare to have only one interview prior to a job offer.Most employers will bring back a candidate a number of times to be sure a potential employee will fit into the company culture.MODERN TECHNIQUES AND SOURCES OF RECRUITMENT FOR GLOBAL COMPANIES LIKE NESTLE 1) Walk-In - The busy global organizations and the rapid changing companies do not respect time to perform various functions of recruitment. Therefore they advise the candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place.2) Consult-In - The busy and dynamic global companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The international companies select the adequat e candidates from among such candidates though the selection process.3) Head-Hunting - The global companies request the professional organizations to search for the best candidates particularly for the senior executive positions. The professional organizations search for the most qualified candidates and advice the global company regarding the filling up of the positions.4) Body-Shopping - Professional organizations and the hi-tech training institutes develop the pool of human resources for possible employment. The prospective employers contact these organizations to recruit the candidates. The proboscis shoppers appoint people for their organization and provide the required/specific employees to various organizations on request. In fact, body shoppers collect fee/commission from the organizations and pay the pay/benefits to the employees.5) Business Alliance - It is like acquisitions, mergers, and takeovers help in getting human resources. In addition, the companies do also have alliances in sharing their human resources on ad-hoc basis.6) Tele-Recruitment - The technological revolutions in telecommunication helped the organizations to use internet as source of recruitment. Organizations advertise the job vacancies though the World Wide Web internet. The job seekers dismiss their application though e-mails or internet websites.CASE STUDY ON NESTLE UNFAIR LABOR PRACTICESNestle was one of the biggest purchasers of cocoa from the pearl Coast, a country in West Africa. Most of the worlds cocoa production came from farms and plantations located in Ivory Coast. Studies conducted by some of the major welfare organizations in the world like the International Labor Organization, UNICEF and other independent agencies revealed that the workers on these plantations lived and worked in poor conditions. They were paid minimal wages and exploited by the land-owners. Most of the workers had been trafficked i.e. bought and sold, make them practically slave labor. Nestle purchased cocoa from these farms despite its awareness of the conditions of the laborers, thus becoming it a party to their exploitation.Child labor was also employed on the plantations. UNICEF studies revealed that over 200,000 children were shipped to Ivory Coast and other cocoa producing countries in Western Africa from neighboring countries like Mali and Burkina Faso, to work on the plantations, especially during the harvesting of cocoa or coffee beans. The children were sometimes as young as nine years and could not escape from the plantations to return to their homes.A report released by the International engraft of Tropical Agriculture (IITA) also confirmed that child labor was used extensively on plantations in Africa, from where Nestle sourced most of its cocoa. The report which surveyed 1,500 farms in Ivory Coast, Ghana, Nigeria, and Cameroon found that more than 200,000 children worked in hazardous conditions using machetes and spraying pesticides and insecticides with out the necessary protective equipment.The labor was usually supplied to the plantations by labor broker, totally unrelated to the laborer. The workers very received only a very small proportion of the price paid for the Nestle product by the final consumer. Nestle was aware of the consumptive labor practices used by its suppliers and was also in a position to pressurize them to change, as it was a major buyer. Besides the report of several apt organizations, public interest groups also sent several petitions and representations to Nestle to stop buying bonded labor-tainted cocoa. However, the company chose to ignore these petitions, and continued its purchases of cocoa from these suppliers.Nestle was also regard in union busting in some countries. For instance, when a group of 13 workers, working in a sub-contracting facility of Nestle in Thailand, organized themselves to form a union, Nestle immediately cut the number of orders to that company and asked the company to put the unionized workers on indefinite leave with half pay. The workers were forced to quit, because of their lower pay. In doing so, Nestle had clearly denied there workers their right to organize themselves to better their interests.Companies like Nestle made a public show of their support to complaisant causes, in order to divert attention from their irresponsible behavior elsewhere. Nestle set up the Nestle Trust to support social issues relating the children and aged. However, some people believed the company was using these social causes for pure promotional purposes Nestle has well laid out charters to govern their social responsibility and behavior, but more often than not, these are only on paper.STRATEGIC HRM VERSUS CONVENTIONAL HRM Traditional HRMStrategic HRMResponsibility of HRMStaff specialistsLine managersFocusEmployee relationsPartnerships with internal and external customersRole of HRTransactional, change follower, and respondentInitiativesSlow, reactive, fragmentedFast, proactive, integratedTime horizonShort termShort, medium, long (as necessary)ControlBureaucratic-roles, policies, proceduresOrganic-flexible, whatever is necessary to succeedJob DesignTight division of labor, independence, specializationBroad, flexible, whatever is necessary to succeedKey InvestmentCapital, productsPeople, knowledgeAccountabilityCost centreInvestment center