SUBMITTED BY : ALI RAZA

ROLL NO : 16400920-020

COURSE: PERFORMANCE MANAGEMENT

COURSE CODE : HRM-438

BACHELORS IN BUSINESS ADMINISTRATION

UNIVERSITY OF GUJRAT
 PERFORMANCE APPRAISAL ii i

INTRODUCTION

Performance appraisal is a systematic and continuous process that involves the rater and the ratee, i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i

where the former evaluates the performance of the later with respect to laid down standards (Bauer
i ii i ii i i i i ii i ii ii i i ii i ii i ii i ii i i i i i i i i i ii i ii i ii i

& Erdogan, 2009). During the performance review cycle, the evaluator constantly interacts and
i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i

observes with the employee in order to establish his or her level of performance based on the
i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i

company criteria. ii i

Feedback is essential during this process to give the employee a vivid report with regard to i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i

achievement of objectives as initially set. This paper seeks to compare Coca-Cola and General i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i

electric’s performance appraisal policies and examine their effectiveness. In 2011, GE emerged
i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i

number six on fortune 500 companies according to fortune magazine. On the other hand, Coca-Cola
iii ii i i ii iii ii i i ii ii i iii ii i iii i ii ii i iii iii iii

attained the rank of 70 on this list of top 500 fortune companies based on revenues and profits
i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i

(CNNMoney, 2011). i ii

COMPARISON BETWEEN NESTLE AND COCA COLA ii i iii iii ii i ii i

NESTLE COCA COLA ii i

Nestlé is a multinational packaged food i i i i i i i i i i i i i i i i i i The Coca-Cola Company is the worlds largesti i i i i i i

company founded and headquartered in Vevey, i i i i i i i i i i i i i i i i i i manufacturer, distributor, and marketer of non- i i i i i

Switzerland. It came into being from a merger in iii iii iii ii i iii iii iii iii iii alcoholic beverage concentrates and syrups. i i i i i

1905 between the Anglo-Swiss Milk Company

i i i i i i i i i i i i i i i i i i Based in Atlanta, Georgia, KO sells concentrated i i i i i i i

for milk products established by the Page

i i i i i i i i i i i i i i i i i i i i i forms of its beverages to bottlers, which produce, i i i i i i i i

Brothers in Cham, Switzerland, in 1866 and the i i i i i i i i i i i i i i i i i i i i i i i i package, and sell the finished products to retailers. i i i i i i i i

Farine Lactée Henri Nestlé Company set up in

i i i i i i i i i i i i i i i i i i i i i i i i The Coca-Cola Company operates in over 200 i i i i i i i

1867 by Henri Nestlé to provide an infant food

i i i i i i i i i i i i i i i i i i i i i i i i i i i countries and sells over 400 different products, i i i i i i i

product. Trademark of Nestlé is birds in a nest, i i i i i i i i i i i i i i i i i i i i i i i i i i i including the world-famous Coca-Cola and Sprite i i i i i

derived from Henri Nestlé’s personal coat of i i i i i i i i i i i i i i i i i i i i i i lines of soft drinks. i i i

arms, suggests the values upon which he

i i i i i i i i i i i i i i i i i i i i i

KO faces several challenges today. An increased

originated his Company. Several of Nestlé’s
i i i i i i i

i i i i i i i i i i i i i i i i i i

consumer preference for healthier drinks has

brands are globally renowned, which has made
i i i i i i

i i i i i i i i i i i i i i i i i i i i i

resulted in slowing growth rates for sales of i i i i i i i i

the company a global market leader in many
i i i i i i i i i i i i i i i i i i i i i i i i carbonated soft drinks (abbreviated as CSD), i i i i i i

product lines, including milk, chocolate, i i i i i i i i i i i i i i i which constitutes 74% of KO’s sales. KO’s profits
i i i i i i i i

confectionery, bottled water & pet food. i i i i i i i i i i i i i i i i i i are also vulnerable to the rising costs for the raw
i i i i i i i i i i

(Strategic HRM, n.d.). i ii i ii materials used to make drinks – such as the corn
i i i i i i i i i i

syrup used as a sweetener, the aluminum used in

i i i i i i i i i

Nestle’s Brands are:

cans, and the plastic used in bottles. Additionally,
i ii ii i

i i i i i i i i

as food retailers continue consolidating, they’re

1. Milk & Nutrition
i i i i i i

iii i ii i ii

gaining more power to negotiate for lower prices,

i i i i i i i i

2. Beverages
iii
decreasing KO’s price flexibility. i i i

3. Prepared dishes & cooking aids

iii ii i i ii i ii i ii Objectives of coca cola i i i

4. Chocolates & confectioneries

iii ii i i ii
 To get familiar with cooperate world i i i i i i

environment and culture. i i

Objectives of Nestle i ii ii i

 To learn how appraisals of a employee in

i i i i i i i i

the company is decide by managers.

To manufacture and market the Company’s
i i i i i

i i i i i i i i i i i i i i i i i i

 To learn the parameters seniors look while

i i i i i i i

products in such a way as to create value that can iii iii iii iii iii iii ii i iii ii i ii i iii

doing the appraisals. i i

be unremitting over the long term for

i i i i i i i i i i i i i i i i i i i i i

 To see what are the factors, which decide

i i i i i i i i

shareholders, employees, consumers, and i i i i i i i i i i i i

how much appraisals, a particular should i i i i i i

business partners. iii

get.
It does not favor short-term profit at the expense
i ii iii i ii ii i iii ii i ii i ii i ii i
 Who are the Peoples involved in i i i i i i

of successful long-term business development.

ii i ii i iii iii
appraisals system and who takes which i i i i i i

decision?
It recognizes that its clients have a genuine and
i i i i i i i i i i i i i i i i i i i i i i i i i i i

 To understand the appraisals system and

i i i i i i

reasonable interest in the behavior, beliefs and i i i i i i i i i i i i i i i i i i i i i

methodology for appraisals in Coca-Cola i i i i i

actions of the Company behind brands in which i i i i i i i i i i i i i i i i i i i i i i ii

India.
they place their trust and that without its patrons ii i i ii ii i i ii ii i ii i ii i ii i iii

 To get familiar with the work and duties of

i i i i i i i i i

the company would not exist.

iii i ii ii i ii i

a Human Resource (HR) Manager.

i i i i

Nestlé thinks that, as a common rule, legislation i ii i ii i ii i ii ii i iii i i i ii i

INDUSTRY PROFILE i

is the most useful protection of responsible

i i i i i i i i i i i i i i i i i i i i i

REVIEW OF LITERATURE ON THE i i i i i

demeanor, though in certain areas, extra i i i i i i i i i i i i i i i i i i INDUSTRY
supervision to staff in the form of deliberate i i i i i i i i i i i i i i i i i i i i i i i i An industry analysis through Porter’s Five Forces
i i i i i i i

business i i i principles i i i is i i i advantageous i i i reveals that market forces are favorable for
i i i i i i i

consecutively to guarantee that the highest i i i i i i i i i i i i i i i i i i profitability.

standards are met all the way through the i i i i i i i i i i i i i i i i i i i i i i i i

Defining the industry

organization.
i i

Both concentrate producers (CP) and bottlers are

i i i i i i i

Nestlé is aware of the fact that the success of a i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i profitable. These two parts of the industry are i i i i i i i i

company is the expression of professionalism, i i i i i i i i i i i i i i i i i i extremely interdependent, sharing costs in i i i i i

conduct and the conscientious attitude of its i i i i i i i i i i i i i i i i i i i i i procurement, i production, i marketing i and i

management and employees. Consequently i i i i i i i i i i i i distribution. Many of their functions overlap; for i i i i i i i

recruitment of the right people and constant i i i i i i i i i i i i i i i i i i i i i instance, CPs do some bottling, and bottlers i i i i i i i

training and development are essential. i ii i ii ii i i ii conduct many promotional activities. The i i i i i

industry is already vertically integrated to some

i i i i i i i

Nestlé persists to preserve its dedication to

extent. They also deal with similar suppliers and
i i i i i i i i i i i i i i i i i i i i i

i i i i i i i i

follow and value all applicable local laws in each

buyers. Entry into the industry would involve
ii i ii i ii i i ii i ii i ii i ii ii i ii

i i i i i i i

of its markets. (Strategic HRM, n.d.).

developing operations in either or both
i i ii ii i ii i ii i iii

i i i i i i

disciplines. Beverage substitutes would threaten

Core values of Nestle
i i i i i

i ii i ii ii i

both CPs and their associated bottlers. Because of

i i i i i i i i

A requirement for dealing with people is

i i i i i i i i i i i i i i i i i i i i i
operational overlap and similarities in their i i i i i i

reverence and reliance. ii i iii

market environment, we can include both CPs and
i i i i i i i i

bottlers in our definition of the soft drink industry.

i i i i i i i i i

Integrity and transparency in dealing with

In 1993, CPs earned 29% pretax profits on their
i i i i i i i i i i i i i i i i i i

i i i i i i i i i

people are very important for good

sales, while bottlers earned 9% profits on their
i i i i i i i i i i i i i i i i i i

i i i i i i i i

communication. This is balanced by open

sales, for a total industry profitability of 14%
i i i i i i i i i i i i i i i i i i

i i i i i i i i

dialogue with the purpose of sharing (Exhibit 1). This industry as a whole generates
i i i i i i i i i i i i i i i i i i

i i i i i i i i

competencies and boosting creativity.

positive economic profits.
iii i ii i ii

i i

To communicate is not only to notify; it is also to

Rivalry
ii i ii i i ii i ii iii ii i ii i ii i ii i i ii i ii

pay attention and to take on a discussion.

Revenues are extremely concentrated in this
ii i ii i iii ii i iii iii ii i

i i i i i i

industry, with Coke and Pepsi, together with their i i i i i i i i

The eagerness to collaborate, to facilitate others

i i i i ii i i i i i i i ii i i i ii i
and to be trained is a requirement for progression associated bottlers, commanding 73% of the case
iii iii iii iii i ii iii iii iii ii i i i i i i i

i and promotion in Nestle. (Strategic HRM, n.d.).

i ii i ii i ii ii i ii i ii i market in 1994. Adding in the next tier of soft drink
i i i i i i i i i i i

companies, the top six controlled 89% of the i i i i i i i i

Nestle is a human company

market. In fact, one could characterize the soft
ii i ii i iii ii i

i i i i i i i i

drink market as an oligopoly, or even a duopoly

Nestlé is a human Company providing a
i i i i i i i i i

i i i i i i i i i i i i i i i i i i i i i

between Coke and Pepsi, resulting in positive

rejoinder to individual human needs all over the
i i i i i i i

ii i i ii i i i i ii i i i ii i i ii ii i

economic profits. To be sure, there was tough

world with explicit concern for the comfort of
i i i i i i i i

i i i i i i i i i i i i i i i i i i i i i i i i

competition between Coke and Pepsi for market

both its patrons and its employees. This can be
i i i i i i i

i i i i i i i i i i i i i i i i i i i i i i i i i i i

share, and this occasionally hampered

seen in its approach and its sense of
i i i i i

i i i i i i i i i i i i i i i i i i i i i i i i

profitability.
conscientiousness towards people. (Strategic i i i i i i i i i i i i

HRM, n.d.).
For example, price wars resulted in weak brand
iii

i i i i i i i i

loyalty and eroded margins for both companies in

After analyzing Nestle it has been seen that it has
i i i i i i i i

ii i i ii i ii ii i ii i i ii ii i ii i i ii i ii

the 1980s. The Pepsi Challenge, meanwhile,

to follow all three models
i i i i i i

iii iii ii i ii i

affected market share without hampering per case

i i i i i i i

High Performance, i ii
profitability, as Pepsi was able to compete on i i i i i i i i

attributes other than price. i i i

High Involvement & i ii i ii

Substitutes:
High Commitment.
Through the early 1960s, soft drinks were
i ii

i i i i i i i

synonymous with “colas” in the mind of i i i i i i i

Since Nestlé simultaneously aspires to boost i i i i i i i i i i i i i i i i i i

consumers. Over time, however, other beverages, i i i i i i

sales and profits and, to raise the standard of i i i i i i i i i i i i i i i i i i i i i i i i i i i

from bottled water to teas, became more popular,

i i i i i i i i

living everywhere, it is active and the quality of i i i i i i i i i i i i i i i i i i i i i i i i i i i

especially in the 1980s and 1990s. Coke and Pepsi i i i i i i i i i

life for everyone. Nestlé is also swayed that it is

i i i i i i ii i i i i i i i i i i i i i i i i i i i i i i

responded by expanding their offerings, through i i i i i i

the people who form the vigor of the business

i i i i i i i i i i i i i i i i i i i i i i i i i i i

alliances (e.g. Coke and Nestea), acquisitions i i i i i i

and that nothing can be attained without their

i i i i i i i i i i i i i i i i i i i i i i i i

(e.g. Coke and Minute Maid), and internal product

i i i i i i i i

loyalty and their vigor, which makes people its i i i i i i i i i i i i i i i i i i i i i i i i

innovation (e.g. Pepsi creating Orange Slice), i i i i i i

most significant asset. Participation of people at

iii i ii i ii ii i ii i i ii i ii

capturing the value of increasingly popular i i i i i i

all levels starts with suitable information on the

i i i i i i i i i i i i i i i i i i i i i i i i

substitutes internally. Proliferation in the number

Company’s activities and on the explicit aspects
i i i i i i

i ii iii ii i iii ii i iii ii i

of brands did threaten the profitability of bottlers

i i i i i i i i

of their work. Everyone is invited to contribute

i i i i i i i i i i i i i i i i i i i i i i i i
towards improvements enhancing Company i i i i i i i i i i i i through 1986, as they more frequent line set-ups, i i i i i i i i

results and personal progress through open i i i i i i i i i i i i i i i i i i increased capital investment, and development of i i i i i i

communication and dynamic collaboration. i i i i i i i i i i i i special management skills for more complex i i i i i i

(Strategic HRM, n.d.). i ii i ii manufacturing operations and distribution. i i i i

Bottlers were able to overcome these operational i i i i i i i

challenges through consolidation to achieve i i i i i

economies of scale. Overall, because of the CPs

Nestlé’s Culture
i i i i i i i i

iii

efforts in diversification, however, substitutes

i i i i i

There’s a very strong organizational culture in i i i i i i i i i i i i i i i i i i i i i

became less of a threat. i i i i

Nestlé. It believes on team work. The head office ii i ii i ii i i ii iii i ii i ii ii i ii

Power of Suppliers
provides the guide lines to the zonal managers
i i

i i i i i i i i i i i i i i i i i i i i i i i i i

The inputs for Coke and Pepsi’s products were

and informs them about their budget limitation.
i i i i i i i i

i i i i i i i i i i i i i i i i i i i i i

primarily sugar and packaging. Sugar could be

The zonal managers are totally independent in
i i i i i i i

i i i i i i i i i i i i i i i i i i i i i

purchased from many sources on the open market,

constructing their plans and the usage of budget.
i i i i i i i i

i ii iii iii iii iii iii i ii iii

and if sugar became too expensive, the firms could

Likewise, the regional managers are
i i i i i i i i i

i i i i i i i i i i i i i i i

easily switch to corn syrup, as they did in the early

independent in their areas. They are given a
i i i i i i i i i i i

i i i i i i i i i i i i i i i i i i i i i i i i

1980s. So suppliers of nutritive sweeteners did not

specific target and a certain amount of budget.
i i i i i i i i

i i i i i i i i i i i i i i i i i i i i i i i i

have much bargaining power against Coke, Pepsi,

The discretion is theirs to make plan and attain
i i i i i i i

i i i i i i i i i i i i i i i i i i i i i i i i i i i

or their bottlers. NutraSweet, meanwhile, had

the targeted result in the certain given budget.
i i i i i i

i i i i i i i i i i i i i i i i i i i i i i i i

recently come off patent in 1992, and the soft drink

The internal control system of the organization is
i i i i i i i i i i

i ii i ii iii iii ii i ii i iii

industry gained another supplier, Holland

very strong and effective as well. Due to the
i i i i i

i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i

Sweetener, which reduced Searle’s bargaining

strong check and balance, they can make
i i i i i

i i i i i i i i i i i i i i i i i i i i i

power and lowering the price of aspartame.

eradications and amendments in their plans. If
i i i i i i

i i i i i i i i i i i i i i i i i i i i i

the plan does not work properly, the manager can

With an abundant supply of inexpensive
ii i i ii i ii ii i i ii ii i ii i ii i

i i i i i i

take corrective measures. No one from the

aluminum in the early 1990s and several can
i i i i i i i i i i i i i i i i i i i i i i i i

i i i i i i i i

company can challenge his power. The

companies competing for contracts with bottlers,
i i i i i i i i i i i i i i i i i i

i i i i i i

betterment towards the achievement of goals can

can suppliers had very little supplier power.
i ii ii i ii i i ii i ii iii i

i i i i i i i

only be done through the collective

Furthermore, Coke and Pepsi effectively further
i i i i i i i i i i i i i i i i i i i i

i i i i i i

commitment. (Nestle Report, n.d.)

reduced the supplier of can makers by negotiating
iii ii i iii

i i i i i i i i

on behalf of their bottlers, thereby reducing the

i i i i i i i i
HR PRACTICES in Nestle
ii i i ii ii i number of major contracts available to two. With i i i i i i i i

more than two companies vying for these i i i i i i i

Human resource planning and requirements in

contracts, Coke and Pepsi were able to negotiate
i i i i i i i i i i i i i i i i i i

i i i i i i i i

Nestlé
extremely favorable agreements. In the plastic i i i i i i

bottle business, again there were more suppliers

Planning consists of those guidelines which
i i i i i i i

i i i i i i i i i i i i i i i i i i

than major contracts, so direct negotiation by the

encompasses a sound basis for efficient and
i i i i i i i i

i i i i i i i i i i i i i i i i i i i i i

CPs was again effective at reducing supplier

effective HR Management in the Nestlé Group
i i i i i i i

i i i i i i i i i i i i i i i i i i i i i

power.
around the world. They are flexible and dynamic i ii iii ii i i ii i ii iii ii i ii i

and may require adjustment to various

Power of buyers
i i i i i i i i i i i i i i i i i i

i i

circumstances. Hence its application will be

The soft drink industry sold to consumers through
i i i i i i i i i i i i i i i i i i

i i i i i i i i

influenced by good judgment, compliance of the

five principal channels: food stores, convenience
i ii iii iii ii i iii iii i ii

i i i i i i

local market laws, keeping in mind the specific

and gas, fountain, vending, and mass
i i i i i i i i i i i i i i i i i i i i i i i i

i i i i i i

context. Its spirit should be respected under all

merchandisers Supermarkets, the principal
i i i i i i i i i i i i i i i i i i i i i i i i

i i i i

circumstances. As Nestlé is operating all over

customer for soft drink makers, were a highly
i i i i i i i i i i i i i i i i i i i i i

i i i i i i i i

the world, it is necessary that labor laws and

fragmented industry. The stores counted on soft
i i i i i i i i i i i i i i i i i i i i i i i i i i i

i i i i i i i

practices be respected everywhere. Degree of

drinks to generate consumer traffic, so they
i i i i i i i i i i i i i i i i i i

i i i i i i i

development of each market and its capacity to

needed Coke and Pepsi products. But due to their
i i i i i i i i i i i i i i i i i i i i i i i i

i i i i i i i i i

advance in the management of their human

tremendous degree of fragmentation (the biggest
i i i i i i i i i i i i i i i i i i i i i

i i i i i i

resources should also be taken into

chain made up 6% of food retail sales, and the
i i i i i i i i i i i i i i i i i i

i i i i i i i i i i

consideration. (Nestle HRM, n. d.)

largest chains controlled up to 25% of a region),
i ii i ii iii iii

i i i i i i i i i

these stores did not have much bargaining power.

HR policies are addressed to all those who have a
i i i i i i i i

iii ii i ii i ii i ii i i ii i ii ii i i ii i

Their only power was control over premium shelf

liability in managing people as well as to HR
i i i i i i i i

i i i i i i i i i i i i i i i i i i i i i i i i i i i i i

space, which could be allocated to Coke or Pepsi

professionals. The Nestlé Management and
i i i i i i i i i

i i i i i i i i i i i i i i i

products.
Leadership Principles include the guidelines
i

i i i i i i i i i i i i i i i

influencing all the Nestlé employees in their

Barriers to Entry
i i i i i i i i i i i i i i i i i i i i i

i i

action and in their dealings with others. The

It would be nearly impossible for either a new CP
i i i i i i i i i i i i i i i i i i i i i i i i

i i i i i i i i i i

Corporate Business Principles comprises of the

or a new bottler to enter the industry. New CPs
i i i i i i i i i i i i i i i i i i

i i i i i i i i i i

basic principles which Nestlé endorses and

would need to overcome the tremendous
i i i i i i i i i i i i i i i i i i

i i i i i i

subscribes to on a worldwide basis. Both these

marketing muscle and market presence of Coke,
i i i i i i i i i i i i i i i i i i i i i i i i

i i i i i i i

documents are the pillars on which Nestlé’s i i i i i i i i i i i i i i i i i i i i i

present policy has been built. (Nestle HRM, n.
i i i i i i i i i i i i i i i i i i i i i i i i Pepsi, and a few others, who had established brand
i i i i i i i i i

d.) names that were as much as a century old. Through

i i i i i i i i i i

their DSD practices, these companies had

i i i i i i

HR managers and their staff are there to provide

intimate relationships with their retail channels
iii i ii ii i ii i i ii i ii i ii ii i ii i

i i i i i i

professional support in handling employee

and would be able to defend their positions
i i i i i i i i i i i i i i i

i i i i i i i i

matters but should not substitute themselves to

effectively through discounting or other tactics.
i i i i i i i i i i i i i i i i i i i i i

i i i i i i

the responsible manager. Their major liability is

So, although the CP industry is not very capital
iii ii i i ii ii i i ii i ii i ii

i i i i i i i i i

to contribute effectively to the quality of HR

intensive, other barriers would prevent entry.
i i i i i i i i i i i i i i i i i i i i i i i i

i i i i i i

management throughout the organization by

Entering bottling, meanwhile, would require
i i i i i i i i i i i i i i i

i i i i i

proposing adequate policies, ensuring their

substantial capital investment, which would deter
i i i i i i i i i i i i i i i

i i i i i i

consistent application and coherent

entry. Further complicating entry into this market,
i i i i i i i i i i i i

i i i i i i i

implementation with fairness. (Nestle HRM, n.

existing bottlers had exclusive territories in which
i i i i i i i i i i i i i i i i i i

i i i i i i i

d.)
to distribute their products. Regulatory approval
i i i i i i

of intrabrand exclusive territories, via the Soft

i i i i i i i

Recruitment
Drink Interbrand Competition Act of 1980, i i i i i i

The recruitment process at Nestle is evidently

i i i i i i i i i i i i i i i i i i i i i
ratified this strategy, making it impossible for new
i i i i i i i i

distinct. People with qualities like dynamism, i i i i i i i i i i i i i i i i i i

bottlers to get started in any region where an i i i i i i i i i

realism, pragmatism, hard work, honesty and i i i i i i i i i i i i i i i i i i

existing bottler operated, which included every i i i i i i

trustworthiness are welcomed there. Nestlé i i i i i i i i i i i i i i i

significant market in the US. In conclusion, an i i i i i i i i

follows a set process for hiring more employees.

iii iii iii iii iii iii iii iii
industry analysis by Porter’s Five Forces reveals i i i i i i i

The major document in this connection is the

i i i i i i i i i i i i i i i i i i i i i i i i
that the soft drink industry in 1994 was favorable
i i i i i i i i i

“Recruitment Requisition Form”. A recruitment iii iii iii iii iii

for positive economic profitability, as evidenced
i i i i i i

opportunity could arise either after discussing or ii i i ii ii i iii ii i iii ii i

in companies’ financial outcomes.
i i i

planning a position on the termination of some i i i i i i i i i i i i i i i i i i i i i i i i

MAJOR COMPANIES
employee or on an urgent need basis. After
i

i i i i i i i i i i i i i i i i i i i i i i i i

In India there are only two major companies

receiving the document the human resource
i i i i i i i

i i i i i i i i i i i i i i i i i i

department puts up an advertisement in the

 Hindustan Coca Cola Beverages Private
i i i i i i i i i i i i i i i i i i i i i

i i i i i

newspaper or it directly contacts placement

Ltd.
i i i i i i i i i i i i i i i i i i

officers at various institutes. Approximately

 Pepsi Co.
i i i i i i i i i i i i i i i

eight to ten best resumes are selected and

i i i i i i i i i i i i i i i i i i i i i i i i

presented to the divisional heads. On their i i i i i i i i i i i i i i i i i i i i i Hindustan Coca Cola Beverages Private Ltd. i i i i i
recommendation the candidates are called for i i i i i i i i i i i i i i i i i i The Coca-Cola Company engages in the
i i i i i i

interviews and the most suitable are finally i i i i i i i i i i i i i i i i i i i i i manufacture, distribution, and marketing of i i i i i

selected. (Nestle HRM, n. d.) i ii iii iii ii i nonalcoholic beverage concentrates and syrups i i i i i

worldwide. It principally offers sparkling and still i i i i i i i

Training
beverages. The company’s sparkling beverages i i i i i

include nonalcoholic ready-to-drink beverages

From the factory floor to the top management,
i i i i

i i i i i i i i i i i i i i i i i i i i i i i i

with carbonation, such as energy drinks, and

training at Nestlé is incessant. Since it is mainly
i i i i i i i

i i i i i i i ii i i i i i i i i i i ii ii i i i i

carbonated waters and flavored waters. Its still

given by Nestlé people, it is always significant
i i i i i i i

i i i i i i i i i i i i i i i i i i i i i i i i

beverages consist of nonalcoholic beverages

for the professional life. Throughout the world,
i i i i i

i i i i i i i i i i i i i i i i i i i i i

without carbonation, including non-carbonated

each country runs its own training programs (e-
i i i i

i i i i i i i i i i i i i i i i i i i i i

waters, flavored waters and enhanced waters,

Learning, classroom courses, external courses),
i i i i i i

i i i i i i i i i i i i i i i

juices and juice drinks, teas, coffees, and sports

and it has five training centers in France, UK,
i i i i i i i i

i i i i i i i i i i i i i i i i i i i i i i i i i i i

drinks. The Coca-Cola Company also offers

Spain, Mexico and Brazil.
i i i i i i

iii ii i iii

fountain syrups, syrups, and concentrates, such as i i i i i i i

Nestle provides the following- ii i iii ii i

flavoring ingredients and sweeteners. The i i i i i

company markets its nonalcoholic beverages i i i i i

Literacy training to promote vital literacy skills,

under the Coca-Cola, Diet Coke, Fanta, and Sprite
ii i ii i i ii ii i i i i i ii i ii

i i i i i i i i

particularly for workers who operate new brand names. The Coca-Cola Company also owns
i i i i i i i i i i i i i i i i i i

i i i i i i i

equipment (‘Mission-directed Work Team

mineral water brands Kinley. The Coca-Cola
i i i i i i i i i i i i

i i i i i i

Approach’). Employees are also sent abroad to Company, nourishing the global community with
i i i i i i i i i i i i i i i i i i i i i

i i i i i i

study markets, consumer tastes and others.

the world’s largest selling soft drink since 1886,
i ii ii i ii i ii i i ii

i i i i i i i i

returned to India in 1993 after a gap of 16 years i i i i i i i i i i i

Nestle Apprenticeship Programs. ii i i ii

giving a new thumbs-up to the Indian Soft Drink

i i i i i i i i i

Local Training Programs-on issues ranging from Market. In the same year, the Company took over
i ii ii i iii ii i ii i
i i i i i i i i i

i i i technical, leadership, and communication and i i i i i i i i i i i i i i i

ownership of the nation’s top soft-drink brands i i i i i i i

business economics. iii

and bottling network. No wonder, their brands
i i i i i i i

have assumed an iconic status in the minds of the

i i i i i i i i i i

Rive-Reine, their International Training and i i i i i i i i i i i i i i i

consumers. Coca-Cola serves in India some of the i i i i i i i i

Conference Centre in Switzerland is where i i i i i i i i i i i i i i i i i i

most recalled brands across the world including

i i i i i i i

Nestlé people from all over the world meet to i i i i i i i i i i i i i i i i i i i i i i i i i i i

names such as Coca-Cola, Diet Coke, Sprite,

i i i i i i i

exchange information and ideas in seminars and iii iii iii i ii iii ii i ii i

Fanta, Thumps Up, Limca, Maaza and Kinley

i i i i i i i
training courses (Strategic HRM, n.d.). i ii i ii i ii i ii (packaged drinking water).
i i

Performance management i ii Strengths:

Strong and well differentiated brands with
Formal assessment is done by Line Managers
leading share positions. Brand portfolio
i i i i i i i i i i i i i i i i i i i i i

and HR once a year with feedback. Nestle gives

includes both global Unilever brands and local
i i i i i i i i i i ii i i i i ii i ii i i i i i i

subordinates the freedom to ask question for an

brands of specific relevance to India.
i i i i i i i i i i i i i i i i i i i i i i i i

unfair evaluation. Explicit key Performance

i i i i i i i i i i i i i i i

Indicators have been listed by the HR i i i i i i i i i i i i i i i i i i i i i  Consumer understanding and systems

department. One of the important key i i i i i i i i i i i i i i i i i i for building consumer insight.
performance i i i indicators i i i is i i i achievement i i i  Strong R&D capability well linked with
following i i i the i i i Nestle i i i management i i i and i i i business.
leadership principles. Remuneration structure i i i i i i i i i i i i  Integrated supply chain and well spread
and promotion criterion depends on the
i i i i i i i i i i i i i i i i i i manufacturing units.
individual’s performance. (Strategic HRM, i i i i i i i i i i i i  Distribution structure with wide reach,
n.d.). high quality coverage and ability to
leverage scale.
Compensation
 Access to Unilever global technology
capability and sharing of best practices
Nestle endeavors to offer fair compensation. i i i i i i i i i i i i i i i i i i

from other Unilever companies.

Remuneration level is above the average in i i i i i i i i i i i i i i i i i i i i i

 High quality manpower resources.

industry. The inconsistent component of the i i i i i i i i i i i i i i i i i i

salary is relatively immense to reward individual

Weaknesses:
i ii i ii iii ii i ii i i ii i

i i performance. In case of higher management i i i i i i i i i i i i i i i i i i

level, the inconsistent part is associated with

i i i i i i i i i i i i i i i i i i i i i  Limited success in changing drinking
individual & team target achievements. i i i i i i i i i i i i i i i habits of people.
(Strategic HRM, n.d.). i ii i ii  Complex supply chain configuration,
unwieldy number of SKU’s with
Rewards & incentives
dispersed manufacturing locations.
iii ii i

 Price positioning in some categories

‘Passion to Win’ awards- These quarterly i i i i i i i i i i i i i i i i i i

allows for low price competition.

awards have been institutionalized to reward i i i i i i i i i i i i i i i i i i

those who over-achieve their targets. Long-

i i i i i i i i i i i i i i i
service Awards are given to recognize i i i i i i i i i i i i i i i i i i Threats:
employees who have been with the company for iii iii iii iii iii iii iii iii

 Low priced competition now present in

more than 30 years. ii i i ii iii

all categories.
‘Nestle Idea Award’- the company institutes i i i i i i i i i i i i i i i i i i  Changes in fiscal benefits.
Nestle Idea Award every quarter to distinguish
i i i i i i i i i i i i i i i i i i i i i  Unfavorable raw material prices in
and honor employees who come up with
i i i i i i i i i i i i i i i i i i i i i sugar, aluminum, commodity etc.
significant and pioneering ideas which have the i i i i i i i i i i i i i i i i i i i i i

Opportunities:
prospective of being implemented at Nestle. i i i i i i i i i i i i i i i i i i

(Strategic HRM, n.d.).

 Market and brand growth through
i ii i ii

increased penetration especially in rural

Benefits
areas.
The following benefits are provided to all
i i i i i i i i i i i i i i i i i i i i i  Brand growth through increased
employees at Nestle ii i iii consumption depth and frequency of
usage across all categories.
Leave-Personal & Medical (fixed no. per year).
 Upgrading consumers through
i ii i ii iii iii ii i ii i

innovation to new levels of quality.

Children Education Assistance Scheme. iii i ii i ii

 Leveraging the latest IT technology.

Provident fund. iii

Learnings during training

Retirement Gratuity Scheme. ii i i ii
During the training a learn lot of things, it is
not confined only to training purpose but in a
Group Insurance & Accidental Insurance
whole, it taught me the importance of
i i i i i i i i i i i i i i i

Scheme.
teamwork, ethics and behaviors in the office.
This training for me was a whole new
Conveyance Reimbursements. iii

experience of a MNC culture and work method

Residential Accommodation. iii
in it. It taught me, every single work whether it
is small or big in cooperate world is very
Monthly health check-ups & free consultation i i i i i i i i i i i i i i i i i i

important in its aspect and meeting the

for self & family etc. (Strategic HRM, n.d.).
ii i iii ii i ii i ii i ii i ii i

deadlines to complete the given work is even

more important.
Employee relations i ii Some of my major learnings are
 What are Basic HRM Practices are.
Nestle provides a very healthy working
 What is a performance appraisal system is.
i i i i i i i i i i i i i i i i i i

environment which is one of the reasons why

 What are the key elements of performance
i i i i i i i i i i i i i i i i i i i i i i i i

Nestlé’s employees organizational commitment

appraisal system are.
ii i i ii iii iii

is very high. Employee turnover is less than 5%,

 What are the factors that are responsible for
iii iii ii i i ii i ii iii iii iii iii

which is considered to be very low for a

performance appraisal of an employee.
i i i i i i i i i i i i i i i i i i i i i i i i i i i

multinational corporation. Nestle has an open

 What is the difference between 180 degree
i i i i i i i i i i i i i i i i i i

culture & upward communication particularly in

and 360 degree performance appraisal
i ii i ii ii i ii i ii i ii

case of grievance, redressal is encouraged. Work

system.
i i ii ii i i ii ii i iii i ii

and Life stability is given substance, as

 What type of performance appraisal system
i i i i i i i i i i i i i i i i i i i i i i i i

illustrated in the Nestle Human Resource Policy

is followed by Hindustan Coca Cola
iii iii i ii iii iii ii i i ii

document. ‘Nestle Family’ annual events are

Beverages Private Ltd and what is the
i i i i i i i i i i i i i i i i i i

organized by their HR department and

System followed for giving performance
i i i i i i i i i i i i i i i i i i

employees along with their families are invited.

appraisal to their employee.
i i i i i i i i i i i i i i i i i i i i i

Strong emphasis is laid on safety of employees

i i i i i i i i i i i i i i i i i i i i i i i i

(Nestle Policy on Health and Safety at Work. i i i i i i i i i i i i i i i i i i i i i i i i

(Strategic HRM, n.d.). i ii i ii