NESTL

ANURAG SEHRAWAT
AYUSH MAMGAIN
DEV IYER
GAURAV SHARMA
HARSH VIKRAM SINGH
Nestle
Nestl was founded in 1866 by Henri Nestl
Nestls success with product innovations and business acquisitions
has turned it into world's biggest food and beverage company
Nestl family has grown to include dairy products, processed foods,
cereals, cosmetics, pet foods etc.
Nestl is based on the principle of decentralization, which means
each country is responsible for the efficient running of its business -
including the recruitment of its staff
Nestl believes that they should think about their organizations
globally but they deal with people by interacting with them locally

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HRM
There is evidence that the number of companies wanting to employ staff
to work abroad is growing faster than the number of employees willing to
become an expatriate for work

Global talent management: Literature review, integrative framework, and

suggestions for further research

having the right number of people at the right place at the right time
with the right skill sets and levels of motivation are fundamental to
talent management
This is what is required for global expansion

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HR Structure
The HR structure followed at Nestl is a Three-box model

Business Partners Center of Expertise Shared Services

HR professional Role is to design and Operate globally
work closely with develop solutions within a structure
business leaders related to called Nestle
Coordinated learning and Business Service
through hierarchy development (NBS)
Coordinated in two compensation Provide some core
ways and benefits processes such as
Globally employee resourcing, payroll
Zonally engagement etc. to focus on
Regional level efficiency

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Key Design Principles
People management must be a managerial responsibility
Maximum amount of information must be available at the
lowest possible level
Local HR techniques must be in conjunction with the corporate
strategy
The nature and organization of HR should be taken according to
the
size
complexity
geographic location of the units
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Why is it so?
A common global technology platform supports the global HR
organization and offer easy-to-use self-service capabilities to
managers and employees
Encourages communities of expertise to learn from local
business partners to determine leading practices in the field
Cost efficiency- Introduction of shared services is seen as being
particularly important to achieving savings

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Nestles Corporate Policies

Total Rewards Policy

Training and Learning

Conditions of Work

Nestle is one of the Nestles total reward Training is done on the

leading Nutrition, health policy includes a fixed job.
and wellness company pay, variable pay, Lateral Professional
Global standards for benefits, personal development, extension
health and safety for growth and of responsibilities and
employees, suppliers development and work cross functional teams
and visitors. life environment. are encouraged.
These rewards Corporate leadership
programmes are programmes help to
established within social develop and retain best
and legal framework of quality management.
each country.

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 Nestles Corporate Policies

organization
Management

Flexible and Dynamic

Talent & Performance

High performance culture Nestle is committed to maintaining

supported by differentiated a flat and flexible structure with
rewards is key to delivery of minimum levels of management
business objectives. and broad span of control which
Employee evaluation happens enables people development and
throughout the year using tools increases efficiency.
like Performance evaluation Nestle tries to combine the scope
process (PE), Progress and and brand of a global company
development guide (PDG) and 360 with creativity and knowledge of a
degree assessment local business.

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Human Resource and Strategy
We trust our people and believe in giving early
responsibilities

Strategic human resources management has been defined as

the linking of human resources with strategic goals and
objectives
Strategic HR means accepting the HR function as a strategic
partner in the formulation of the companys strategies as well as
in the implementation of those strategies

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Responsibilities under Nestles SHRM

Environmental scanning, i.e. identifying and analysing external

opportunities and threats that may be crucial to the companys
success.

Supplying of competitive intelligence that may be useful in

the long-term planning process

Supplying information regarding the companys strengths and

weaknesses.
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Strategic Partnership of HR in Nestle
HR management is involved in determining the optimum site for
a business and is responsible for many of the aspects
considered in international expansion, such as cultural
evaluation of the site, employee selection, training,
development, compensation, and evaluation
Thus, the strategic role of Nestles international HR department
is to carefully research factors that might lead to a companys
success or failure in a certain region (laws, traditions, cultures,
and people)

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Global Staffing Policies And Human Resource
Orientation
Nestles geocentric management orientation focuses on both
local and worldwide objectives
It is a highly interdependent system that speaks in terms of the
global village. The focus is at once both worldwide and on local
objectives
Special attention is paid to ensure there is a strong alignment
between a candidates values and the Nestl culture.
Only relevant skills and experience and adherence to the Nestl
principles is considered for employment irrespective of
nationality, religion, race, gender, disability, sexual orientation or
age
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Talent development and performance
management
The Company determines training and development priorities
and the responsibility for turning these into actions is shared
between employees, line managers and the Human Resources
Practices such as lateral professional development, extension of
responsibilities, and cross functional teams are encouraged to
acquire additional skills
Employees receive regular feedback on their performance and
career aspirations through a variety of tools and processes such
as the Performance Evaluation process (PE), the Progress and
Development Guide (PDG) and 360 assessments.

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HR as Nestles sustained competitive
advantage
Nestle makes big investment in its people using a combination
of fixed pay, incentives and training, so they are valuable
As the company follows a stringent recruitment process, the
resources are rare
Due to the training and development program that they
undergo, the employees are highly skilled
With an able competency profile mapping, the company
identifies the attributes required for success

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Applying VRIO framework to Nestle HR

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Conclusion
Nestles HR management is aligned with its short- and long-term
objectives to serve as a competitive advantage
HRM has a position of strategic partner in the company rather
than just a support department
Cultural sensitivity to differences among its employees made it
possible for Nestle to expand across the globe and be truly
global company

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THANK YOU