An Overview Of Nestle’s HR Functions And Workforce Systems

An Overview of the Organization

The overall success of the company is entirely based on its ability to catch the attention, then retain and also develop the workforce which further ensures that growth of the company is continuous as well as sustainable. The report will discuss in detail about the company called Nestle and its HR functions (Sharma and Kiran, 2012). The policy of the company hires that employee that have a personal characteristic added with professional level skills which make sure that employees are developed with long term connection with the company.

Nestle is a Swiss-based company which mainly started as food and drink organization. The company is considered as one of the biggest food company in the world, and it can be calculated by different profits and other standards (Sharma and Kiran, 2012). The products of the company range from baby products to medicines and food related product to health to water, dairy products to pet food and much more. There are approx. Twenty-nine brands in the company that singles handily create a revenue of more than a billion. This includes Nescafe, Kit Kat, Maggi and many other brands (Sheikh and Naveed, 2016). There are about four hundred and forty-seven factories that are working in over one hundred and ninety-four countries and at the same time recruits more than four lakhs of people. It is considered as one of the main shareholders of brands like L’Oreal which is considered one of the largest cosmetics based company in the world.  The company saw the major growth during the First World War and Second World War where the company got the opportunity to expand the product base much beyond it initial offerings (Sheikh and Naveed, 2016). 

The main activities of HRM are to make sure that a company has the right amount of workplace with right skills set and studies needed to meet the present and the future requirements. This is called as a workforce planning. Workforce planning is based on the large amount cost to business this is why it is important that the HRM functions calculate the level of productivity, turnover employees and absenteeism to supervise the efficiency and effectiveness of HRM functions (Sayeef, 2014). A business which is constantly growing like the one discussed in the report, Nestle requires regularly indulging in new kind of workforce to develop a line of talent for the upcoming activities and also intact the main set of skills and knowledge within the organization as old workforce heads towards retirement. Aging workforce in specific is an issue for the company like Nestle since it is over fifty percent of the entire staff and exists across a variety of areas within the organization (Sayeef, 2014).

With the introduction of some technologies, many traditional methods are replaced with new techniques and methods. It is important to understand that globalization is on the rise and organizations are trying to expand all around the world which is not limited to different barriers in the geographic term (Yaacob and Then).  Economies are on the rise, and yet many are falling as well and constantly evolving with time. Also, there is turmoil as well because of a number of laws which are stringent. It leads to a huge void which is yet to be filled with a number of policies that further follow all the legal based instructions and at the same time yet not impacting the survival of the company (Sayeef, 2014).

Purpose of HR function and its key roles and responsibilities

Workforce planning has been a priority for some HR managers for the number of years since it has consistently been one of the most challenging works for the Human Resource manager. There are some reasons for the same which are discussed in detail as follows: –

1. Time frame: there are some managers which aims at implementing the present year outcomes. However, workforce planning has also dealt with a long time frame and do not show any sudden advantages that can assist in meeting the yearly demands (Klikauer, 2014).
2. There are data integrity issues as well when the concept of getting out of the gate means that the manager is not ready to test the plans for future and also feel that they have no ability to get the proper understanding of the present head counts.
3. Some managers have the intuition and don’t want to refer the data without understanding the data story. There is no option but to move the overall decision until a manager can experience the real pain that can be later avoided through proper planning of the workforce (Klikauer, 2014).
4. Companies like Nestle face a lot of a hard time while establishing right level of basics of workforce planning. It is normally understood that the workforce plan should be divided one kind of job from another since it is not in the right amount to look at many broad labor sections, with small families, single jobs or real skill base. There are some companies like Nestle that get into so many delays which are self-imposed by nature while rolling out the program by finding the right level at which managers makes a plan (Klikauer, 2014).
5. Traditional kind of forecasting and various methods related to it are poor in predicting the real individual who is at risk for a different kind of turnover and level of retirement and therefore is not sufficient regarding actions (Klikauer, 2014).

While recruitment of the new workforce, an analysis is undertaken that is based on the job which is performed from time to time. Analysis of job is a process which recognizes the work which is needed for the different set of rules and also needs right kind of skills, training, and strengths to perform a particular work in an effective manner (Nwobodo, 2016). The data is taken from the process and is utilized to advertise the vacancy on various platforms. The job requirements are filled through various sources and processes like internal and external recruitment. Internal recruitment consists of a process of selection and recruitment where someone who was presently working within the business is considered. The biggest benefit, in this case, is reduced amount of cost and as the process of recruitment is also not very long and not very expensive. Another advantage is that every human being should be familiar with the organization. An issue with recruitment through internal sources is that it promotion internally leaves the vacancy again to be filled. External recruitment is related to the business where a process of recruitment is based on someone external to the company (Nwobodo, 2016).

When young people are selected for the company, Nestle ensures that the process is radical which can move towards the strengths which is completely dependent on the recruitment process and which also make sure that the process can easily create differentiation between various candidates with low experience by aiming at the potential (Nwobodo, 2016). This also means that the role should be tested and advertised in term of its strength which is needed for the work and not based on a level of competency.

Training and development are becoming a very important part of the organization these days, and not everyone who is recruited is the right person for the job and to test this Nestle performs tasks little differently. Training of the employees is crucial to understand that the new recruiters can get comfortable with the work pattern of the company (Nwobodo, 2016). It is important for the HR department to involve training program for every new entrant based on his or her skills which are treated as a set needed for the job. It will also contribute towards motivation of the employees and also increase the level of retention. To ensure that the training program is effective, it is important that every new recruiter has to face on-the-job training for initial time to get the person in sync with guidelines of work related to a company. The training will help the employee but also provide some knowledge to the HR department about the artistry of employee (Palpacuer et al., 2011).

Development of the employee is also very important which works as a bonus for the company as well as for the employees. The company conducts some activities like enrolling them to different kind of conference, seminars and many kinds of activities that can be of personal interest for the employee to feel like an integral part of the company and this way it raises the engagement of workforce (Palpacuer et al., 2011). It can be advantageous for the company by some methods where an employee can add it to skill set.  Therefore, it can be a win-win situation for both where a head of HR is to understand the interest of employees and various areas of interest and also look for the option that will assist them to build on those interests (Palpacuer et al., 2011).

The normal tendency of a human nature is to immediately respond to any kind of recognition and appreciation at work, specifically when it is provided for the efforts put by the employee since it works like proof that the hard work of employees is valued by the company. Nestle take special care of the employees with the help of number of methods and this resulted in following benefits for the company:

1. Increased productivity: there is a known fact that engaged workforce are importantly very productive by nature and try to work in a most efficient manner. When efforts are praised, the employee will obviously work hard to receive such recognition.  
2. Satisfaction at Job: recognition of the efforts of an employee shows that they value the job and understand its worth for the business. The message is clear that the hard work will be rewarded since it deserves it and this is why it is very important (Chowdhury, 2015).
3. High level of retention: when there is high employee turnover that it is obvious that the work culture will have less morale that make other people want to look on options. The time utilized in selecting the right talent and then training those affects the usage and also the fiscal costs that can be pretty high so retaining the employees for the long run should be the main focus (Chowdhury, 2015).
4. Team culture: rewards which are based on reference or recommendations by the colleagues is a great way to boost the team spirit since it motivate the employees to see the positive side of each other (Chowdhury, 2015).

The concept employee engagement defines the level of dedication and also energy that workforce give to the work and is also an important element of their dedication to the company. Engaged employees are obviously more productive, satisfied and loyal to the company. The application of sound HR practices in place is very important and it is also crucial to find out that the employees perspective towards the work culture.  Following is the detailed discussion: –

Following are the employment acts: –

• The employment rights act: this act was amended in 1999 and 2003 and presents a variety of contractual based rights for the workforces like right to an deconstructed pay based statement, right to minimum wage and saving the employees against any kind of unfair dismissal at work (Leaders and Russwurm, 2012).
• Sex discrimination act, 1975: as per this act, employees protects against any kind of discrimination on the basis of gender like in any kind job advertisement or while selecting them for job or during promotion and many more.
• The Equal pay act 1970: as per this act, this is important that all genders should be paid the same kind of pay for doing similar work or provide same value to company.
• The Race Rational act, 1976: there is should be no discrimination on the basis of race illegal in similar manner (Leaders and Russwurm, 2012).  

Conclusion

It is very important to provide special attention to employees to make sure that there is the strong line between the value system of a candidate and the culture of the company like Nestle. Therefore, only important skills set and right kind of experience will understand the principles of Nestle that should be considered in employing the right person for the company (Leaders and Russwurm, 2012). Nestle has adopted right kind of recruitment tool that improves the process of recruitment, and the manager has all the right to take the decision which will be supported by the HR team.

References

Chowdhury, A.M.R.R., 2015. INTERSHIP REPORT ON Strategic Employee Motivation through effective management in HR for factory maintenance: A study of Nestlé Bangladesh Ltd.

Klikauer, T., 2014. Morality 5: HRM and Utilitarianism. In Seven Moralities of Human Resource Management (pp. 138-160). Palgrave Macmillan UK.

Leaders, L.C. and Russwurm, S., 2012. Globalization and Sustainable Leadership. Leadership Development for a Global World: The Role of Companies and Business Schools, p.163.

Mohajan, H.K., 2015. Present and Future of Nestlé Bangladesh Limited. American Journal of Food and Nutrition, 3(2), pp.34-43.

Nwobodo, U.P., 2016. The Impact of Knowledge Management on Organizational Productivity in Nigeria (A Study of Nestle Nigeria Plc) (Doctoral dissertation).

Palpacuer, F., Seignour, A. and Vercher, C., 2011. Financialization, Globalization and the Management of Skilled Employees: Towards a Market?Based HRM Model in Large Corporations in France. British Journal of Industrial Relations, 49(3), pp.560-582.

Sayeef, Z.S., 2014. Nestlé Bangladesh Ltd.

Sharma, A. and Kiran, R., 2012. Corporate social responsibility initiatives of major companies of India with focus on health, education and environment. African Journal of Basic & Applied Sciences, 4(3), pp.95-105.

Sheikh, U. and Naveed, A., 2016. THE IMPACT OF HR PRACTICES ON THE PERFORMANCE OF MULTINATIONAL COMPANIES OPERATING IN PAKISTAN. Gomal University Journal of Research, 32(1).

Yaacob, M.R. and Then, G.H., Investigating Recruitment and Selection Practices of SMEs Travel Agencies in Penang, Malaysia.

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