Nestle

Group Members

Kamran Aqeel (2012-mba-27)

Nida Munir (2012-mba-29)

Maida Afzal (2012-mba-31)

Samiya Ishtiaq (2012-mba-33)

Submitted to:

Sir Nabeel Arif

Managing People for High Performance

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This Project of “Managing People for high performance” is completed with a great effort and

true spirit by the following persons,

Kamran Aqeel

Samia Ishtiaq

Nida Munir

Maida Afzal

All these members work hard for collecting information and for completing the report, they

work as a team and true team spirit was among them. the main purpose of this project was to

understand how a company face different kind of challenges relates to their high performance

and in which areas company face different kind of problems due to lack of competence.

This project is completed in two stages

Collection of information

Making Report

All the credits go to ALLAH THE All MIGHTY AND THE MOST BENEFICIAL for

giving us such power and wisdom to complete the report on time. May Allah’s blessings

remain on us forever (ameen) and we are very thankful to Mr Tariq and Mr M.Amjad

(Employee Services & solution Manger Nestle), Ms Nadia Umer for helping us by giving

information about the Nestle Pakistan and for guiding us for our project at the last we would

like to thank Sir Nabeel Arif for taking us in confidence and giving us an opportunity to

make the report and to learn that what are the problems companies face now a days in

Managing people for high performance.

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Table of Content

Executive Summary…………………………………………………………………………………4

History of Nestle……………………………………………………………………………………..5

Henri Nestlé, the founder of Nestlé……………………………………………………………….5

Introduction of Nestle……………………………………………………………………………….6

Nestlé’s Vision Statement……………………………………………………………..……………6

Nestlé’s Mission Statement………………………………………………………………………...6

Nestlé’s Slogan……………………………………………………………………………......6

Nestle Core values…………………………………………………………………………....6

Our Goals………………………………………………………………………………….…7

Global Structure……………………………………………………………………………..7

Some Nestle Brands…………………………………………………………………………………8

Nestle Pakistan…………………………………………………………………………………….…8

Human Resource Management of Nestle Pakistan…………………………………………….9

Nestle Continuous Excellence Department……………………………………………………...9

Ms. Nadia Umer…………………………………………………………………………………….10

Methodology use for collection of data…………………………………………………………11

Problem Based learning…………………………………………………………………………...11 Company Visit………………………………………………………………………………………...11

Questionnaire (employees) ………………………………………………………………………...…11

Meet with leaving employee…………………………………………………………………………..11

Findings……………………………………………………………………………………………...12

First Dimension……………………………………………………………………………………..12 Elements of high performance work system………………………………………………………….12

Organizational structure……………………………………………………………………………….12

Human Resource Structure…………………………………………………………………...13

Shared Services………………………………………………………………………13

Centre of Expertise…………………………………………………………………..13

Business Partners…………………………………………………………………….13

Organization Chart …………………………………………………………………………...14

Required employees by overall Nestle……………………………………………………….15

Required employees by overall NCE…………………………………………………………15

Problem in Organizational structure………………………………………………………....16

Location………………………………………………………………………………………16

Reward system………………………………………………………………………………………...16

Reward linkage with Performance at Nestle…………………………………………………16

Employee wellness programs…………………………………………………………...……17

Perks at Work program……………………………………………………………………….17

Paid Time off………………………………………………………………………...17

Holidays……………………………………………………………………………...17

Parental Leave………………………………………………………………………..17

Health Works………………………………………………………………………...17

Online Services & Discounts………………………………………………………...17

Employee Assistance Program (EAP) ……………………………………………………….17

Counseling, Education Resource & Referral Services………………………………………17

Problems in Reward System………………………………………………………………….17

People………………………………………………………………………………………………….18

Selection & recruitment in Nestle Pakistan……………………………………………..……18

Recruitment…………………………………………………………………………..19

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Selection……………………………………………………………………………...19

Training Programs at Nestlé………………………………………….………………………19

Literacy Training…………………………………………………………………….20

Nestlé Apprenticeship Program……………………………………………………..20

Local Training………………………………………………………………………..20

International Training………………………………………………………………..20

Development program in Nestle……………………………………………………………...20

Information system……………………………………………………………………………………21

Globe Program Objectives……………………………………………………………………21

Email………………………………………………………………………………………….22

Telephone……………………………………………………………………………………..22

ERP at Nestle…………………………………………………………………………………22

Problems in Information system of Nestle…………………………………………………...22

Task Design……………………………………………………………………………………………23

Job description (JDs…………………………………………………………………………..23

Example………………………………………………………………………………………24

Justice and equity……………………………………………………………………………………...24

Second Dimension………………………………………………………………………………….25 Higher productivity and efficiency……………………………………………………………………25

Contribution to the Lower Cost……………………………………………………………………….27

Higher Product Quality …………………………………………………………………………….…27

Customer Satisfaction…………………………………………………………………………………28

Low Employee Turnover……………………………………………………………………………...29

Learning Organization………………………………………………………………………………...29

SWOT of Nestle…………………………………………………………………………………….30

HRM practices organization is doing to achieve high performance……………………….31 Shared Services ………………………………………………………………………………31

Centre of Expertise…………………………………………………………………………...32

Training and development of Nestle…………………………………………………32

Workforce Planning………………………………………………………………….32

Man Power Planning…………………………………………………………………32

Performance related pay (PRP) ……………………………………………………...32

Objective Evaluation of the Organization…………………………………………...32

Role as a Business Partner …………………………………………………………………...33

How well company has managed its performance management…………………………...34 Competency profile mapping…………………………………………………………………34

Critical Analysis of HR PERFORMANCE…………………………………………………..34

Nestle Continues Excellence (NCE) …………………………………………………………35

Conclusion…………………………………………………………………………………………...35

References…………………………………………………………………………………………...35

Questionnaire……………………………………………………………………………………….36

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Performance Management is an important part of any organization which increases the

performance of the employees in our report we discuss about the performance management

of the Nestle Pakistan and how human resource continues excellence department contribute

to increase the performance of the employees. We discuss about six elements of work system,

organizational structure, information system, task design, reward system, people and justice

and equity that how these elements increase the performance of the employees and what are

the problems in these elements, than we discuss about the outcomes of high performance

work system that what are the positive and negative outcomes in the work system, than what

HRM practices organization is doing to achieve high performance and how ell company has

managed performance management, our focus is on HR department of Nestle pk in this

report.

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History of Nestle

The key factor which drove the early history of the enterprise that would become The Nestlé

Company was Henri Nestlé's search for a healthy, economical alternative to breastfeeding for

mothers who could not feed their infants at the breast. Nestlé is a Swiss company, founded in

1866 by Henri Nestlé invests Around CHF 1.5 billion in Research and Development every

year Nestlé markets its products in 130 countries across the world.

Henri Nestlé also showed early understanding of the power of branding. He had adopted his

own coat of arms as a trademark; in Swiss German, Nestlé means 'little nest'. One of his

agents suggested that the nest could be exchanged for the white cross of the Swiss flag. His

response was firm: "I regret that I cannot allow you to change my nest for a Swiss cross .... I

cannot have a different trademark in every country; anyone can make use of a cross, but no-

one else may use my coat of arms."

The Company's strategy will continue to be guided by several fundamental principles.

Nestlé's existing products will grow through innovation and renovation while maintaining a

balance in geographic activities and product lines. Long-term potential will never be

sacrificed for short-term performance. The Company's priority will be to bring the best and

most relevant products to people, wherever they are, whatever their needs, throughout their

lives.

Henri Nestlé, the founder of Nestlé

Henri Nestlé, the founder of Nestlé, was a life-saving chemist but also an innovative

marketer. He used scientific knowledge to develop products that met consumer needs. He

used his name to brand his products in a distinctive way. And he set up systems to distribute

his products quickly and effectively.

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Introduction of Nestle

Nestle is world’s largest corporation of food and beverage. Although less than 2% of our sales

are generated in Switzerland, Nestlé is a Swiss company. They are the leader in nutrition,

health and wellness. This company has recognised brand name and very significant influence

on customers, business and government bodies as well. Their products ranges from drinks

like tea, coffee, water, ice-cream to baby food, pet care, pharmaceutical and confectionary

Nestlé markets its products in 130 countries across the world Nestlé manufactures around

10,000 different products and employs some 250,000 people Nestlé sells over a billion

products every day Nestlé is more than just the largest food and beverage company in the

world. Increasingly, Nestlé is becoming the world’s leader in nutrition, health and wellness.

From the start, nutrition has been at the core of our business. However, today we place far

greater emphasis on it – and on health and wellness. Our Corporate Wellness Unit and the

individual business units are driving forces in bringing Good Food, Good Life to all our

consumers.

Nestlé’s Vision Statement

“Nestlé’s aim is to meet the various needs of the consumer everyday by marketing and

selling foods of a consistently high quality.”

Nestlé’s Mission Statement

“We strive to bring consumers foods that are safe, of high quality and provide optimal

nutrient to meet physiological need. Nestle helps provide selections for all individual taste

and lifestyle preferences.”

Nestlé’s Slogan

“Good food good life”

Nestle Core values

1. People

2. Quality

3. Brands

4. Consumer

5. Customer

6. Performance

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Our Goals

To be the reference for

1. Nutrition, Health and Wellness

2. Sustainable Financial Performance

3. Trust by all stakeholders

Global Structure

At the international level, the world is divided into four parts, each reporting to the world

headquarters in Switzerland. Nestlé employs bottom-up as well as top-down reporting. For

yearly budgeting, each territory reports next year’s forecasted sales to its Area Manager who

after gathering all these reports sends a summary for his area to the Regional Manager.

Regional and Zonal Manager do the same process until National Sales Manager has the

forecasted sales for the entire country. Target sales are then reported down to each zone, from

where it is sent to each region, and the process continues until each territory has its target

sales

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Some Nestle Brands

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Nestle Pakistan

Nestlé Pakistan today, is a leading Food & Beverage Company in Pakistan with a key focus

on nutrition, health and wellness reaching the remotest of locations throughout the country to

serve consumers and continue to enhance the quality of life of people throughout its value

chain. Nestlé Pakistan Ltd is a subsidiary of Nestlé S.A. – a company of Swiss origin

headquartered in Vevey, Switzerland. It is a food processing company, registered on the

Karachi and Lahore stock exchanges and operating in Pakistan since 1988 under the joint

venture with Milk Pak Ltd and took over the management in 1992. For last many years in a

row, the company has won a place among the top 25 companies of the Karachi Stock

Exchange.

Nestlé Pakistan operates in many ways but people, products and brands are the basis of the

Company’s image. It respects the cultures of the regions it operates in and recognizes the

need for quality of life of their people.

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Nestlé Pakistan operates in many ways but people, products and brands are the basis of the

Company’s image. It respects the cultures of the regions it operates in and recognizes the

need for quality of life of their people.

Human Resource Management of Nestle Pakistan

In 2012, Human Resource continued its journey from last year, to cultivate a culture of talent

diversity, high performance and ensuring compliance.

Initiatives taken were focused towards enhancing performance principles, leadership

development, and career growth, attracting right talent and providing avenues for learning.

Additionally, Human Resource team has been thoroughly involved in the progress of the

Nestlé Continuous Excellence journey, by providing its support and guidance in maintaining

employee engagement, people development processes and appropriate goal alignment.

With a mind-set towards achieving sustainable excellence, a comprehensive learning

programmer surrounding concepts of coaching and feedback was rolled-out to targeted

groups of existing and upcoming leadership. With blended learning approach and meticulous

evaluation technique, the programmer was well received and laid foundations for a

community dedicated to drive the desired mind-set to all levels within the organization.

With focus on bringing excellence in our service delivery, Human Resource continued to

implement the findings of the survey results regarding level of satisfaction on our processes

and services. The objective remains to fortify the strengths identified and work on gaps

highlighted in our journey.

For Human Resource, 2012 was about continuity, pursuing its drive for strengthening a high

performance culture and developing the people by facilitating them with a progressive and

healthy work environment.

Nestle Continuous Excellence Department

During the year 2012 we have continued to hold the responsibility for the environment,

personal safety, and the safety of others. In view of the growing demands of the market and

changing consumer needs, an expansion in the current manufacturing foot print is under

execution.

On one hand Nestlé Pakistan is investing to take care of health and wellness of the consumer

while on the other hand the Company is keen to look after the needs of its employees, hence

addition of new social block in the factory.

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Ms Nadia Umer:

Nadia joined Nestle Pakistan in 2010 and since then has been very instrumental in the

development of the juices portfolio by deepening the consumer base to fully capture the in-

market opportunity. Some of her notable achievements are SKU Optimization leading to

increased sales velocity with reduced operational complexity and building super premium

range. She has also been a key team member in the LEAN pilot in Juices and contributed to

the roll out of the Operational Master Plan and Consumer Customer Value Proposition

(CCVP) for the business

Methodology use for collection of data

Problem Based learning:

Our learning is Problem based learning. Problem-based learning (PBL) is an approach that

challenges students to learn through engagement in a real problem. It is a format that

simultaneously develops both problem solving strategies and disciplinary knowledge bases

and skills by placing students in the active role of problem-solvers confronted with an ill-

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structured situation that simulates the kind of problems they are likely to face as future

managers in complex organizations.

Now the purpose of getting information we use three kinds of Methods which are following

there:

Methods for collecting information:

In our report we use three kind of methodology for collecting information relating to our

project.

Company Visit

Questionnaire (employees)

Meet with leaving employee

Company Visit:

First of all we visit Nestle Company which is situated in upper Mall, and meet HR manger of

Nestle, he provides us different information regarding HR activities of the Nestle company

and also provide us ideas that how can we cover all the dimension of our project.

Questionnaire (employees):

For more clarification and for getting more information we also get ideas of employees of

Nestle through using Questionnaire. Which provide us hidden problems related to the

elements which affect the performance of those employees?

Meet with leaving employee:

Further we meet Employees which recently leave the Nestle Company and ask them what the

reasons are and what are the problems due to which you decided to leave the Nestle

Company, we also asked him that what are the problems he face during performing his job in

Nestle with respect to the performance management.

Internet:

Searching from internet

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Findings

After the collection of data regarding the performance management of the Nestle Pakistan we find

some information from which we can understand about the performance management of Nestle.

First Dimension

In first Dimension we discuss about the elements of the high performance work system which

are following their:

Elements of high performance work system

1. Organizational structure

2. Information System

3. Task Design

4. Reward system

5. People(selection, training and development)

6. Justice and equity

Organizational structure

Nestle Organizational structure is Decentralized its mean that the Middle level management

have also decision making authority. In all countries parent group is to Swizz Land because

Nestle is a Swizz Land Company. Nestlé Pakistan follows a flat, matrix organizational structure the departments are divided

function-wise and product-wise.

All the products use different functional departments and all the functional departments have

specific product department within them. The span of control is wide as each department

head has much direct and indirect reporting relation with his subordinates.

The Managing Director of Nestlé Pakistan reports directly to the Head Office in

Switzerland, and gets guidance and objectives from them.

Directors are different functional departments:

Business Executive Managers

Head of Human Resource Department

Head of Sales Department

Head of Supply Chain

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(Nestle Pakistan Organizational Structure)

Human Resource Structure

The Human Resource Department is subdivided into three branches:

Shared Services

Centre of Expertise

Business Partners

Shared Services

Shared Services are responsible for data and record collections of all the employees

of Nestlé Pakistan. They handle the payrolls, division of provident funds, medicalallowances,

travel allowances, and all other administration of the employee funds.

Centre of Expertise

Centre of expertise is responsible for recruitment, remuneration and organization

development through Nestle Training programs, both local and international.

Hea

d O

f Sw

iz L

amd

Manging Director

Head of Legal Department

Head of Supply cjain

Head of technical department

head of Human Resource

Share Services

Centre of Expertisse

Business Patners Head of finace

Head of Sales

Business Excellence Manger

Head of food services

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Business Partners

The Business Partners form the link between different human resource activities of

theorganization, and the functional departments they are working with. The HumanResource

Manager–Commercial is a Business Partner for Sales and reports to the Head

of Sales Department. He is supposed to form a link between the Human ResourceDepartment

and the Sales Department, making sure all decisions made by the Sales Department are in line

with the Company’s goals and policies

Organization Chart:

Human Resource

department

Share Services Centre of Expertise

Business Patners

Board of Directors

Mangers

Sales people

Customers

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Required employees by overall Nestle:

If we talk about overall nestle than nestle needs top level employees as well as average or

lower level employees, high level employees means those can perform high and average

means those can perform average, it can show in this kind of bell curve:

High performance employees Average Performance employees Lower level

employees

Required employees by overall NCE:

If we talk about continuous excellence department which is managed by Ms Nadia Omer, in

this department we need high level employees those can perform high.it can show like this,

High performance employees

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Problem in Organizational structure

Although Nestle organizational structure is very effective but there are some positive things

and some negative things in every structure.

So Nestle organizational structure is decentralized, there are a positive thing that they gave all

decision making authority to the lower level of management and they are responsible for the

effectiveness, efficiency and the failure of their specific field but on the other hand there are

disadvantage of this that top level management is more conscious about the organization as

compare to the lower level management and Span of control is so wide which is also a

problem.

Location:

NESTLE PAKISTAN LTD 308, Upper Mall, Lahore PAKISTAN HEAD OFFICES OF

NESTLE LTD

Reward system

In Nestle there is proper reward system for employees. Nestlé favours competitive,

stimulating and fair remuneration structures offering an overall competitive and attractive

compensation package. Remuneration includes salary, any variable part of remuneration as

well as social, pension and other benefits. Employees are paid for their skills as they deserve.

Attractive salary is paid to them as they deserve. Much kind of facilities are also provided to

the employees who motivate the employees.

Reward linkage with Performance at Nestle:

=Effort Performance

=Performance-reward linkage

=Attractiveness

Individual

Efforts

Individual

Performance

Organizational

Reward

Individual

Goals A B C

A

B

C

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Employee wellness programs

Worksite wellness programs have gotten a boost in recent months because of their possible

role in promoting employee wellness through such benefits as counselling and onsite health

centres

Perks at Work Programme

Nestle help its team keep their work and home life in balance through what they call 'Perks at

Work. The best associates are healthy and happy, and lead full lives.

Paid Time Off

Associates earn paid time off each month to use for sick leave, family illness, vacation, or

personal reasons.

Holidays

Nestlé Purina provides regular paid holidays each year.

Parental Leave

Leave is available for birth and adoptive fathers and mothers who are salaried or non-union

hourly associates.

Health Works

The Health Works program helps Nestle associates and their families stay fit and healthy.

Nestle program also provides associates with opportunities to participate in preventative

programs that help save money on heath benefit costs while ensuring Nestlé’s associates

remain healthy.

Online Services & Discounts

Nestlé Purina associates can receive discounts for theatre and entertainment, travel and

lodging, electronics, gifts, financial services, local services and more.

Employee Assistance Program (EAP)

The EAP provides easy, free, confidential access to professional counsellors trained to help

with a variety of personal or family problems.

Counselling, Education Resource & Referral Services

This service offers information and referrals on adoption resources, prenatal care, child care

and elder care services, parenting, educational opportunities and a variety of personal /

convenience services.

Problems in Reward System

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But there are also an element of scheme system in nestle reward system in which reward are

provided to the employees through the schemes. In which deserving employees can’t receive

these kind of reward but those employees that does not deserve these kind of rewards, get

these reward, so those employees those work hard , and deserve these kind of rewards

demotivate with these kind of things.

Moreover some training programs , foreign tours, and many more these kind of facilities are

also provided to just some employees other employees working on the same post does not

receive these facilities at the same time so those employees who get these facilities motivated

but those employees those does not receive these kind of facilities demotivate because of

these things.

According to the Nestle Employee services & solution manger Muhammad Amjad, there are

too kind of factors in organization which can affect the performance and behaviour of the

employees, Intrinsic factors and extrinsic factors.

By intrinsic factors their employees motivated and with the extrinsic factors their employees

demotivate.

People

Selection & recruitment in Nestle Pakistan

Recruitment and selection forms a core part of the central activities underlying human

resource management: namely, the acquisition, development and reward of workers. It

frequently forms an important part of the work of human resource managers – or designated

specialists within work organisations. However, and importantly, recruitment and selection

decisions are often for good reason taken by non-specialists, by the line managers. There is,

therefore, an important sense in which it is the responsibility of all managers, and where

Extrinsic Factors

Supervision

Company Policy

Working

Conditions

Relationship with

peers

Security

Intrinsic factors

Achievement

Recognition

Responsibility

Advancement

Growth

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human resource departments exist, it may be that HR managers play more of a supporting

advisory role to those people who will supervise or in other ways work with the new

employee.

Recruitment:

Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers,

and with appropriate qualification, and encouraging them to apply for jobs with an

organization.

Selection:

Training Programs at Nestlé

The willingness to learn is therefore an essential condition to be employed by Nestlé. 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

Recuirted candidate

Preliminary Interview

Review of application & Resumes

Selection Test

Employement Interviews

Reference & Background checks

Selection Decision

Medical Examination

New Employee

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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.

Literacy Training:

Most of Nestlé’s people development programs assume a good basic education on the part of

employees. These programs are especially important as they introduce increasingly

sophisticated production techniques into each country where they operate. As the level of

technology in Nestlé 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 it’s not only new technical abilities that are required. It’s

sometimes new working practices.

Nestlé Apprenticeship Program:

Apprenticeship programs have been an essential part of Nestlé training where the young

trainees spent three days a week at work and two at school. Positive results observed but

some of these soon ran into a problem. At the end of training, many students were hired away

by other companies which provided no training of their own.

Local Training:

Two-thirds of all Nestlé employees work in factories, most of which organize continuous

training to meet their specific needs. In addition, a number of Nestlé operating companies run

their own residential training centres. Virtually every national Nestlé company organizes

management-training courses for new employees with High school or university

qualifications. But their approaches vary considerably

International Training:

Nestlé’s success in growing local companies in each country has been highly influenced by

the functioning of its international Training Centre, located near our company’s corporate

headquarters in Switzerland.

Development Programme in Nestle:

Learning is part of the Nestlé’s culture. Each employee, at all levels, 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.

Each employee is in charge of her/his own professional development. However, the Company

actions to offer the opportunity to progress for those having the determination and the

potential to develop their capabilities

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Information system

Information system that Nestle use is Globe 1

Nestle use Globe to unlock Nestle potential by:

Leveraging our size as a strength in a rapidly changing enjoinment

Uniting and aligning us on the inside to be more globally competitive on the outside

Enabling nestle to manage complexity with operational efficiency.

Globe Programme Objectives

Implementation of harmonized Nestle Business Excellence Best Practices

Implementation of data Standards and Data Management “Managing Data a

Corporate Asset”

Implementation of standardized information system and Technology

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Globe allow Nestle to

Speed to share and implement new best practices

Provide better information for better decision

Facilitate Organizational change

Allow for focus on generating demand activities

Email:

Email is also used to communicate with employees and external parties

Telephone:

Telephones are also used to communicate with lower staff or other peoples

ERP at Nestle:

In 2000 Nestle SA signed a $200 million contract with SAP to roll out an ERP

system.

Nestle SA also committed to an additional $80 million to be spent on consulting,

maintenance, and upgrades.

Keeps track of customer orders

reduce overstocking

Enables group buying of materials

data sharing among subsidiaries

Problems in Information system of Nestle:

2,30,000 employees and 500 facilities in 80 countries

to support the decentralized strategy it has 80 different information technology units

that’s runs nearly 900 IBM as/400 mid-range computers ,15 main frames , and 200

Unix system

despite its size the company has had no corporate computer centre

Local difference created inefficiencies and extra costs that could prevent the company

from competing effectively in electronic commerce.

The lack of standard business processes prevented it from obtaining lower prices for

its raw material.

at first project decide not to use sap’s supply chain software because that module was

brand new and appeared to be risky

The staff that would be directly affected by the changes was not included in the key

stake holder team.

The lower level worker did not understand how to use the new system and also did

not understand the changes; nobody was prepared for the new ways of doing things.

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Turnover among the employees who were to use the Manugistics software to forecast

product demand reached 77 parents. Those who remained found it easier to use their

familiar spread sheets.

The simultaneous installation of the Y2K changes also caused some trouble.

Task Design

Task Design determines how the details of the organization’s necessary activities will be

grouped, whether into jobs or team responsibilities.

Job description (JDs):

Nestle provide job description to its employees at the time of selection. Job description is a

document that provides information regarding the tasks, duties and responsibilities of job.

Job Analysis for Team

Legal consideration

Employee & labour relation

Safty & health

compensation & benefits

Performane appriasal

Training &development

Selection

Recruitment

Human Resource Planing Tasks Responsibilities Duties

Job specification

Job Description

Job Analysis

Abilities Skills Knowledge

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Example:

An employees is hired in nestle first of all he hired according to his job specification than he informed about his tasks, responsibilities, and duties which he have to complete in his j in simple words management governs how the details of the organization’s necessary activities will be grouped.

Justice and equity:

There are many aspects to justice and the creation of a just world. These include social and

economic factors as well as the principles of equity and equal rights.

“Social justice” has been defined in a variety of ways. Amongst them, they incorporate

concepts of basic rights, the realisation of human potential, social benefit, a healthy planet, an

equitable distribution of resources, equal opportunities and obligations, security, and freedom

from discrimination. Economic justice really forms a part of social justice. It seeks the

equitable distribution of world’s natural and intellectual wealth so that everyone is able to

gain a fair share.

As Nestle is a large organization so nestle follow justice and equity in every situation, but

according to some questionnaires and leaving employee, there is also an element of

favouritism.

Mangers are selected in the presence of the directors so the deserving candidates are

selected always.

Average level of employees is also selected according to the job specification and

according to their qualification and skills, but there also an element of Intercede in

some situations which affect the justice and equity.

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Second Dimension

Outcome of high performance work system

1. Higher productivity and efficiency:

2. Contribution to the Lower Cost:

3. Higher Product Quality

4. Great Customer Satisfaction

5. Low Employee Turnover

6. Learning Organization

Higher productivity and efficiency:

Positive outcome:

There are a separate department NCE (Nestle continues Excellence) managed by Ms

Nadia Umer, aim of this department is to enhance the performance of the employees

more and more well. due to the efforts of this department productivity and efficiency

of the employees increases

Due to efficient and fully managed organizational structure nestle productivity and

efficiency of the employees increase. In decentralization managers feels good that

they are responsible for efficiency.

Moreover if we talk about the location of the head office of the Nestle Lahore

Pakistan , about which we are discussed, is situated at the upper mall, so that

employees can easily access, so their productivity increase as wall as they become

efficient for their work because location of office have an impact on the performance

of the employees.

If we take a look at the reward system of the employees in Nestle Pakistan, so the

reward system of nestle is also properly managed, every employee is paid for their

skills and for their work, moreover financial motivation for good work also provided,

so the efficiency and productivity of the employees automatically enhance because

they know that if they are performing very well they’ll be rewarded, so it affects the

high performance of the employees of the Nestle.

Information system of the Nestle is well managed they use Globe for their

information system. So any employee if face any kind of problem in performing their

high performance they can take any help from this information system so productivity

and efficiency of the employees automatically increase.

Employees are provided job description so that they know what they have to do,

management make them clear what they do so that they can perform their work very

well.

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People in the Nestle are selected according to the job specification so they are well

trained that’s why they perform efficiently moreover there are also some developing

programs for employees so they can improve their skills for better performance.

They are directly proportional to each other as we discussed above that justice means

providing equal rights to every person in an organization and equity means to an

employee according to his performance so if justice and equity both are providing in

an organization there will be no discrimination at all in the organization and people

will love to work there with full concentration which will result in the high

productivity and high efficiency of the workers.

Negative outcomes:

Organizational structure is decentralized, top level management is more conscious

about the organization as compare to the lower level management. so in Nestle

Decision making authority is to the lower level management so as compare to the top

management lower level management can’t handle the issues more efficiently, and

span of control is so wide so this thing affects the productivity and efficiency of the

employees.

Information system is very effective but for the lower level employees it is difficult to

handle this kind of information system so it affects the productivity of the lower level

employees.

People are selected according to the job specification but we observe the element of

Intercede in some cases so employees are not employed according to the job

specification in these cases so the employees don’t know how to perform according to

the standard of quality work so in these cases productivity and efficiency effects.

While Nestle Pakistan is providing so many facilities and so many incentive to their

employees which enhance the productivity and effectiveness of their employees, but

when the problem which is discussed in reward system occurred, than the employees

those does not receive these kind of facilities they demotivate and their efficiency and

productivity affects.

Furthermore when some employees are sent to the foreign countries for the training

but the other employees those are working on the same post are not sent, they

demotivate with this thing and it affect their productivity and efficiency.

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Contribution to the Lower Cost

Positive outcome:

Nestle Pakistan train its employees to for their desire performance when the

employees trained they perform according to the requirement of the company so their

performance helps company to reduce the cost of the products so training is one of the

factors which helps to lower cost.

As we know nestle Pakistan is decentralized according to Mr.Muhammad Amjad

(employees services solution manger) management is responsible for high and low

cost so they struggle for lower cost this thing make the cost low

Globe that is use as information system in Nestle ,Globe version 1.5 Roll out incl used

in Pakistan, so employees take a lot of help from Globe and this is also contribute to

decrease the cost.

If employees are selected according to the job specification than they can work more

efficient so in Nestle large percentage of employees are hire according to their

qualification when they work according to the requirement, than I contribute to the

cost.

If workers will satisfied with the environment of the organization they will get

benefits according to their performance then they will fully concentrate towards their

work there will be no leg pulling at all so, the mistakes will be less and in the result

the productivity increase and the cost will be low.

Negative outcomes:

Information system for lower level employees is manual or telephone system, so this

kind of information and communication system affects the cost.

Different kind of facilities provided to employees increase the cost

Training , development processes increase the cost

Higher Product Quality

Positive outcome:

Organizational structure is decentralized, so managers are responsible for their work

so they try to maintain the quality because they are responsible for high or low

quality.

If employees feel any kind of problem regarding the work than they can take help

from expertise through Information technology so Information system is also

contribute to the high quality

When employees are selected according to their qualification than they can contribute

to high quality in their field

When employees are rewarded than they motivated and try to maintain the quality

satisfied employee can satisfy customers

If the people feel fairness in management than they contribute to the high quality,

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Negative outcomes:

In some cases there are a factor of favouritism, which affect the quality because if

employee gain any kind of favouritism than they feel no need to constraint on their

quality work and product quality also.

In case of Intercede employees are not selected according to their qualification which

affects the quality of work and quality of products.

Customer Satisfaction

As we know Nestle is a very large and trustable organization and customer have a strong trust

on the Nestle. Nestlé is committed to offering products and services to Nestlé’s customers

and consumers that meet their needs have their preference and provide sound nutrition. We

want to win the trust of our customers and Consumers by continuously listening to them, by

understanding their expectations and consistently satisfying their needs and preferences.

There are also a customer relation management in Nestle which means deepening the

relationship with consumers, which involves extra effort in talking to and listening to them

regularly.

Positive outcome:

Nestle is a trusted organization, it manage all the things efficiently from many years

so it contribute to the great customer satisfaction.

Its MIS system also provides customer desired information to the customers so

customer feels happy and satisfied.

Negative outcomes:

Customers are directly linked with the sellers when seller group not satisfied with

company than he can’t satisfy customer.

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Low Employee Turnover

According to the Nestle Lahore Pakistan HR manger Nestle turnover rate is 6 to 7 %. Once

employee is hired, than Nestle HR manager tries its best to retain the employees, that’s why

Nestle turnover rate is low.

Positive outcome:

Because of the Nestle reputation Employees feel proud to work at Nestle

Nestle reward system is very effective so employees feel satisfied and they feel no

need to leave the organization.

Nestle Information system help the employees a lot and make their jobs easy for them

and they face no major problem to perform the job and like their work and feel no

need to leave the organization.

Employees are clearly defined their work , that what to do, so they know what to do

and Nestle never get extra work from employees without their consent so employees

get satisfied an turnover decreases.

Nestle also offer different kind of training programs and development programs which

make their employees happy and thus turnover decreases.

Nestle is fair with its employees so employees feel secure to work at Nestle and feel

no need to leave the organization.

Negative outcomes:

According to the leaving employee of the organization, there is an element of

favouritism in Nestle organization, so all the benefits are provided to the employees

but priority is given to the favouritism employees even they don’t deserve to receive

rewards.

Globe system is difficult to understand by an average employee, so they hesitate to

work at that kind of where technology is up to date and difficult for them to

understand.

Favourites get priority for foreign training and development courses so other

employees get dishearten, and think to change the organization.

Learning Organization

A learning organization is the term given to a company that facilitates the learning of its

members and continuously transforms itself. It encourages organizations to shift to a more

interconnected way of thinking.

Learning is part of the Nestle culture. Each employee, at all levels, 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.

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Positive outcome:

Training is done on-the-job. Guiding and coaching is part of the responsibility of each

manager and it is crucial to make each one progress in her/his position.

When formal training programs are organized they should be purpose oriented and

designed to improve relevant skills and competencies. Therefore they are proposed in

the framework of individual development programs.

Latest technology used in Nestle makes its employees more learning, and make the

organization a learning organization.

Foreign training and development program make the employees and organization

learning.

When all the needs and wants of the workers will fulfil they seek more for the

development of their organization and they can think in a better way and participate a

role in the performance.

Negative outcomes:

Some employees those don’t want to learn something because they feel proud to work

in Nestle and feel no need for learning

Strengths

Brand strength

Product innovation

Research & development

Market share

Weaknesses

MATURE MARKETS

Less consumer research in few areas

Complex supply chain management

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Opportunities

Expansion

Product offering

Global hub

Threats

Changing consumer trends

Competition

HRM practices organization is doing to achieve high performance

Nestle HR management perform a number of activities to achieve high performance.

Shared Services (SS)

As explained in the organization structure, this department is responsible for maintaining the

data and records of the employees to decide about their pays, allowances etc. The department

is also supposed to carry out the performance appraisals (PA) with the help of the line

managers. The SS sets guidelines and provides the line managers with tools, systems and

processes to evaluate their subordinates. Based on these evaluations, pays and remunerations

are decided. (Remunerations are done by the Centre of Expertise).

The pay and compensation strategy is tied to the achievement of the business objectives and

helps them build a growth-oriented culture. Apart from payrolls, SS is in-charge of

administration of employee funds. It is supposed to decide that which employee gets which

fringe benefit, and to what extent, for example, medical allowances, travel allowances etc.

The provident funds for employees are also calculated by SS. The SS is a vital department for

maintaining employee motivation and loyalty to Nestlé. It needs to be ensured that all data

collection and PAs are done correctly, and in line with the procedures and guidelines set by

the organization. It also needs to give enough allowances and leverages to the employees to

allow them to balance their personal and professional life. Nestlé believes that employee’s private and professional life should have a good balance. In

the same spirit, Nestlé encourages flexible working conditions whenever possible and

encourages its employees to have interests and motivations outside work. This not only

maintains satisfaction with the job, it also increases loyalty, productivity and provides

motivation for better performance in the future.

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360 Degree Appraisal System:

Performa acne Appraisal system used by Nestle is a 360 degree appraisal system. This

process enables the individual’s performance to be evaluated from an all-around perspective

and thereby provide more accurate information on an individual’s performance over a stated

time period. The concept of 360 degrees comes from the number of degrees in a circle. Every

point at the edge of the circle provides a direction or a dimension to its centre. So providing

an employee with 360degree feedback means that feedback comes from all directions .This

leads toward validity and reliability of the performance appraisal.

Centre of Expertise

Hiring and requirement is the most important task performed by Centre of Expertise. It is the

process on which the entire company’s future and performance relies upon.

TheBusiness Partners are supposed to communicate the staff requirements of different

departments, and set the job description and requirements. Contacts with universities and

recruitment events are maintained to have good visibility of the Company and recruitment

sources. This thing helps to achieve high performance.

Training and development of Nestle:

It must be admitted that the company culture has learning. All employees try to upgrade their

skills and knowledge continuously. So employees are willing to learn to be recruited by

Nestle. Training and development is done on-the-job. Every manager has a duty to guide and

train employees for their progress

Workforce Planning:

Workforce planning is a process which is designed to foretell what, when how much can

bring about in talent management. It is an integrated and forward looking process. It provides

action plans to the managers to work in a prescribed way. This process helps the managers to

avoid or decrease problems of people to take advantage of talent opportunities and to develop

the talent pipeline. It builds a competitive advantage over other firms.

Man Power Planning

Manpower planning is a strategy for the acquisition, utilization, improvement and

preservation of an enterprise’s human resources. It refers to setting up job specifications or

the quantitative requirements of jobs determining the number of personnel required and

improving sources of manpower.

Performance related pay (PRP)

Performance related pay in an extra payment system added to the base pay. The employees

get this payment according to the standard of their performance. Besides, this payment is

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given to a company after considering how it is performing in financial context. Some forms

of PRP are strategic pay, flexible pay, and variable pay.

Objective Evaluation of the Organization

Human resource function has significance with the onset of global competition. Human

resource managers and corporate planning managers think more strategically and step by

step. How intense competition impacts upon employment stability can be addressed by them.

Implementing cost savings policies regarding employment and thinking with executives on

the process of supporting corporate activities are not the same things. To stop downside of

global competition the human resource managers should be more active and recruit and keep

up efficient workforce. Planning should be done from the very beginning to stop bloating of

organization.

Role as a Business Partner

Business Partner’s tasks and responsibilities can be clearly explained with his position in the

business as a Business partner. A business partner is a link between the whole of

the organization and the Human Resource Department. His main focus is on coordinating and

integrating the strategies and plan of actions of different departments in line with the whole

organization. He ensures that the growth objectives and plans of the departments don’t come

into conflict with the mission of the organization as a whole. The Centre of Expertise is

concerned with making changes and finding new ways of operating to increase the efficiency

of the whole organization.

How well company has managed its performance management

The function of Performance management is to ensure the fulfilment of goals in an effective

and efficient manner. Moreover, it watches performance of organization and process of

production, employees etc.

In Nestle Pakistan

Line managers and HR assess formally once in a year and get feedback.

Subordinate managers can interrogate for an unfair evaluation.

The HR department has enlisted specific key performance indicators.

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Remuneration structure and promotion criteria consider individual performance. HR

staff must help the management in elaborating training programs. Sufficient training

programs are developed at the level of every working company that capitalizes on the

availability of local regional or global resources of the group.

Some training programs improve the language skills of the employees. These

programs also try to consolidate corporate cohesion as well as to promote networking

throughout the group. They develop and share best practices of the different

management disciplines practiced in the group.

E-learning programs are alternative to formal training programs.

Competency profile mapping

Competencies are accumulated by totalizing success factors important for obtaining good

results in a particular job or in a particular company at nestle. Success factors are made up of

knowledge, skills and attributes that are stated in case of particular behaviours and are

exhibited by efficient performers in those works. Attributes include personal characteristics,

features, motives, values or ways of thinking affecting an individual’s behaviour.

Competencies in organization can be divided into two categories- personal functioning

competencies that include broad success factors untied to a specific work function or

industry. These competencies often notice leadership or emotional intelligence behaviour

Critical Analysis of HR PERFORMANCE

The performance of an organization must be analysed for the development. This analysis

makes revaluation of existing strategy possible and easy to understand the faults so that

organization can rectify them at once. Recruitment, training and development of employee’s

caliber have been done with high standards. HR Management provides best working

conditions with suitable growth opportunities. Employees must maintain rules and regulation

of the country. HR Management keeps the record of the best performing employees and gives

them opportunities for growth. This analysis proves the best performance standard of HR

dept. in the present market. It is clear that Nestle emphasizes on personal achievement and

the pay structure HR has planned for its employees and the company also mixes practices like

Job Enrichment and Job enlargement, to motivate employees and to break the monotony of

their Job tasks. An example of Job enlargement is the correspondent who acts both in sales

and brand management department

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Nestle Continues Excellence (NCE)

There are a separate department for continuous excellence of the performance Headed by

Nadia Omer .This department mange the performance of the overall company very well.

Conclusion

So conclusion of our whole report is that Nestle is good in its performance but in some cases

it needs to improve and there are some negative things and there are some positive things

which we observe in our finding about the performance of the nestle. Nestle performance

management is high but not the maximum so of the maximum performance management

Nestle needs some improvement which we’ll discuss in our second part of the report.

(Nestle Performance)

References

Nestle.com

Nestle.pk

Company visit (Lahore)

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Institute of Business and Management

University of Engineering and Technology Lahore

Questionnaire

Agree Neutral Disagree

1. Employees, once confirmed as permanent, can

feel secure in their employment with our

organization.

2. When faced with economic pressures in part of

our business, we work hard to find alternatives

before laying staff off.

3. We are very selective in whom we hire in this

organization and we let our existing and potential

employees know it.

4. We are very clear about the attributes,

competencies, attitudes and values that we want

in a new employee

5. We use a variety of recruitment and selection

tools to ensure that the people that we hire not

only bring the skills and knowledge that we need

but, more importantly, that they will fit with our

organization's culture.

6. Our senior executives get involved in the

selection process to demonstrate the importance

we place on hiring the right people for our

organization.

7. We evaluate our recruitment and selection

process against job performance to ensure that

we are bringing people in that can perform well

on the job.

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8. We have structured our workplace so that most of

our work is done in team.

9. Our work teams are largely self-managing and

empowered to solve problems in their immediate

work area.

10. Management rarely has to become involved in

making work-related decisions at the frontline.

11. Our organization's pay and benefit package is

well above industry or community norms for

work of comparable value.

12. Our employees know that our pay and benefit

package is well above industry or community

norms for work of comparable value.

13. We provide our employees with opportunities to

invest in our organization to benefit financially

from their efforts to contribute to our success

14. It is clear to individuals and/or teams what has to

be achieved in order to earn performance-based

rewards.

15. Our organization makes a significant investment

in the ongoing training and development of

frontline staff.

16. Our frontline staff is multi-skilled and can take

on many different work assignments.

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17. Our frontline staff frequently changes jobs in the

interest of acquiring new skills and knowledge.

18. Work teams and/or individuals frequently review

and evaluate processes, incidents, decisions and

innovations to derive as much learning as they

can from both success and failure.

19. Our training goes beyond job-specific, technical

skills to include social skills, general problem-

solving skills and broader knowledge of the

organization.

20. Financial information concerning the

organization is fully and openly shared with

frontline employees on a regular basis.

21. Non-financial performance information is fully

and openly shared with frontline employees on a

regular basis.

22. Every effort is made to ensure that frontline

employees fully understand important financial

and non-financial information on organization

performance.

23. We work hard to ensure that we apply the best

performance tools and techniques that are

relevant to the field in which we operate.

24. We keep up-to-date with advances in knowledge

about what works (and what does not work) to

improve performance in our field.

25. We work hard to equip our employees with the

best methods, tools, technology, practices and

techniques.

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26. We work hard to minimize distinctions between

frontline employees and senior management.

27. We avoid the use of demeaning job titles and try

to use titles that promote equality.

28. We minimize compensation and benefits

differences between levels in our organization.

29.