SHRM ASSIGNMENT

SUBMITTED BY:
GROUP NO.7
ABHISHEK SHARMA
SWATI SUMAN
SANTI PRASAD BAJGAI
LEKI DORJI

INTERNATIONAL MANAGEMENT INSTITUTE, NEW DELHI

INTRODUCTION OF NESTLE
Nestle is the leading FMCG company of Switzerland established by Henri Nestle.
Nestle is serving worldwide with its more than 500 factories in 86 countries
comprising almost all continents. Nestls product portfolio is more than 500 products
all over the world serving best to their customers.
Henri Nestl endowed his company with the symbol derived from his name. His
family coat of arms, the nest with a mother bird protecting her young, became the
Company's logo and a symbol of the Company's care and attitude to life-long
nutrition. The Nestl nest represents the nourishment, security and sense of family
that are so essential to life.
The first product made by Henri Nestl, a food for babies who were unable to
breastfeed. His first success was a premature infant who could not tolerate his
mother's milk or any of the usual substitutes. People quickly recognized the value of
the new product, after Nestl's new formula saved the child's life, and soon, Farine
Lacte Henri Nestl was being sold in much of Europe. Nestl has been serving
Pakistani consumers since 1988, when the parent company, the Switzerland-based
Nestl SA, first acquired a share in Milkpak Ltd. (1)
Nestl is committed to the following Business Principles in all countries, taking into
account local legislation, cultural and religious practices:

Nestl's business objective is to manufacture and market the Company's

products in such a way as to create value that can be sustained over the long
term for shareholders, employees, consumers, and business partners.

Nestl does not favor short-term profit at the expense of successful long-term
business development.

Nestl recognizes that its consumers have a sincere and legitimate interest in the
behavior, beliefs and actions of the Company behind brands in which they place
their trust, and that without its consumers the Company would not exist.

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NESTLE VISION

The consumer's voice is the key to Nestl Pakistan's vision and working. Whether
you live in the remotest village or the city of Karachi, Nestle consumer services team
stands ready to listen to your concerns and provide answers about our products and
guidance on matters of health and wellness. (2)
Nestls global vision is to be the leading health, wellness, and Nutrition Company of
the world. Nestle Pakistan subscribes fully to this global vision. In addition to that,
Nestle Pakistan also envisions to:

Lead a dynamic motivated and professional workforce that is proud of its heritage
and bullish about the future

Meet the nutritional needs of all age groups through a diversified product range
that contains an innovative portfolio of branded food and beverages of the
highest quality

Maintain long-term growth and deliver shareholder value

Establishing responsible communication with the consumer which in turn can

provide us a better look into what changes need to be made to our products

Strengthen the position as the best career destination for talented and motivated
individuals

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NESTLE MISSION
Nestle is dedicated to providing the best foods to people throughout their day,
throughout their lives, throughout the world.

With our unique experience of

anticipating consumers' needs and creating solutions, Nestle contributes to your

well-being and enhances your quality of life. (3)

NESTLE GOALS AND OBJECTIVES

Nestle business objective is to manufacture and market the Company's products in
such a way as to create value that can be sustained over the long term for
shareholders, employees, consumers, and business partners.
Nestle recognizes that its consumers have a sincere and legitimate interest in the
behavior, beliefs, and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist.
Nestle continues to maintain its commitment to follow and respect all applicable local
laws in each of its markets.
At the entrance of this new millennium, Nestls objective Is to consolidate and
strengthen its leading position at the cutting edge of innovation in the food area in
order to meet the needs and desires of customers around the world, for pleasure,
convenience, health and well being. (3)

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ORGANIZATIONAL STRUCTURE

MARKETING MANAGER is an employee who is responsible for planning and

controlling its marketing activities and budgets .Marketing manager take cares the
promotional strategies of the products. Manager tries to use innovative ideas for the
improvement of product in market.

FINANCE MANAGER The field of finance covers the economics of the

contingent claims. Financial economists study the valuation of these claims, the
markets in which they are traded, and their use by individuals, corporations, and the
society at large.

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Finance manager and marketing manager are related with each other to meet their
marketing targets. It is important because alone marketing manager can not promote
any marketing strategy without any budget.

NESTLE CURRENT STRATEGIES

A social and managerial process where by individual & groups obtains
good food and good life through creating and exchanging products and
values.

THE PRICING STRATEGY

We can easily observe that Nestle itself is taking active part in social welfare. We see
the lower prices of the product as compared to the other FMCGs Companys
products like Unilever and Procter & Gamble. If we look at the prices, we can
observe that Nestle is also using its name for the promotional activities and pricing
strategies also. They have to maintain their level of efficiency and always provide the
best at best price. Nestle cares about the customers. As the time is of inflation,
nestle is trying to overcome the pricing problems to the extent they can do. Nestls
point of view is Only by understanding consumer needs can we serve our
consumers to the fullest.
Profit earning is the core aim of every company but in case of Nestle their profit
margin is small just for the sake of customers trust and happiness. Nestle is also one
of the leader of retaining their customers. This is one reason of their success.

PROMOTIONAL STRATEGIES
Nestle launch was, perhaps one of the most aggressive as far as processed Nestle
product concerned, with TV, print ads, radio commercials, billboards and plenty of
BTL (below the line) activities including direct consumer and shop branding activities.
Due to this aggressive marketing campaign, the competition seems to be getting
tougher. So far ads focus towards the younger generation, who want to feel free,
young and excited, leading a healthy lifestyle. These ads are appealing a specific
social class.

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They keep the information of the other companies what they are offering. Try to
improve their strategies from others so that they can promote their product more.
Like more companies are now coming in the market so there is more completion in
the market and they have to be up to date from the current situations.

SWOT ANALYSIS
SWOT analysis would tell us in better way about the competitive position of the
company. Following is SWOT analysis of the company.

STRENGTH

Strong Brand name (NESTLE LOGO & FAMILY BRAND)

Mineral Product (Free of chemicals) as compare to others.

Only brand in the area maintaining its quality and taste

It has largest market share

Ease of availability of their products all over Pakistan

Immense product range and huge diversification leads to reduce risk.

High quality standards

WEAKNESS

Communication is not appropriate

Lack of Awareness

Weak Distribution Channels

OPPORTUNITIES

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Concentrating on the areas of weakness and focus on strengths can increase

sales

It has opportunity to advertise its product in better way.

It has strongest opportunity to increase its product line by making segments in

mineral water. By increasing product line it can also increase its sales.

THREAT

Segments are being shared by competitors

Under cutting by competitors.

Uncertain conditions will affect the sales

HUMAN RESOURCE PLANNING

Planning encompasses those guidelines which constitute a sound basis for efficient
and effective HR Management in the Nestl Group around the world. They are in
essence flexible and dynamic and may require adjustment to a variety of
circumstances. Therefore its implementation will be inspired by sound judgment,
fulfillment with local market laws and common sense, taking into accounts the
specific context. Its spirit should be respected under all circumstances. As Nestl is
operating all over Pakistan, it is essential that legislation and practices be respected
everywhere. Also to be considered is the degree of development of each market and
its capacity to advance in the management of their human resources.
Should any HR policy conflict with local legislation, local legislation will succeed.
These policies are addressed to all those who have a responsibility in managing
people as well as to HR professionals. The Nestl Management and Leadership
Principles include the guidelines inspiring all the Nestl employees in their action and
in their dealings with others. The Corporate Business Principles refer to all the basic

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principles which Nestl endorses and subscribes to on a worldwide basis. Both these
documents are the pillars on which the present policy has been built.

(5)

HR managers and their staff are there to provide professional support in handling
people matters but should not substitute themselves to the responsible manager.
Their major responsibility is to contribute actively to the quality of HR management
throughout the organization by proposing adequate policies, ensuring their
consistent application and coherent implementation with fairness.
The communication skills of the HR staff must be appropriate to deal with all delicate
matters as they occur frequently in human relations issues. They gain their credibility
not only from their professional contribution but also through the care and the
excellence of their communication skills. (5)

RECRUITMENT PROCESS
According to latest count, thousands of employees are working in nestle. This is an
approximate figure as more hiring has been done in the recent past. Nestl follows a
set process for hiring more employees. The major document in this connection is the
"Recruitment Requisition Form". This document is used in all three instances; such
as for:

REPLACEMENT
Filling of a near position. Additions to the existing workforce
A recruitment opportunity may arise either after discussing or budgeting a position on
the resignation of some employee or on an urgent need basis. In all three situations,
the department head has to obtain approval from the Managing Director (MD). If the
request is budgeted, then the Divisional Head fills up a "Recruitment and Budgeted
Form". This form contains the complete information; i.e. the following particulars:

Date of initiation

Date the employee is needed Profile

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Job description

After receiving the document the human resource department puts up an

advertisement in the newspaper or it directly contacts placement officers at various
institutes. Approximately eight to ten best resumes are selected and presented to the
divisional heads. On their recommendation the candidates are called for interviews
and the most suitable are finally selected.

MANAGEMENT TRAINEES
The procedure for selecting fresh graduates at Nestl is bit different as the trainees
cannot be short listed through their CV's. Management trainees are fresh graduates
or they have one year experience at the most. Management trainees are not called
directly. They are contacted through their placement officers. Salaries or benefits of
the management trainees do not vary with their specialization. Similarly the training
period is the same, whether they are selected for marketing or finance.

SUCCESSION PLAN
The succession plan at Nestl is made by the department head. He chooses his own
successor. It is the duty of the departmental head to train someone for his work, so
that there is a person to takeover in case he is transferred.

JOB ASSESSMENT
There is a classified system of job assessment at Nestl. Accountability incentives in
the form of business or facilities are provided to employees performing well.
Employees form the internal equity of the company. Therefore, equally justifying
measures are taken to satisfy and motivate the employees.

(6)

TRAINING AND DEVELOPMENT

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We know Learning is part of the Company culture. Each employee, at all levels,
either a fresh or old, 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 Nestl. Training and Development 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 as Nestle does. Therefore they are proposed in the framework of
individual development programs. As a consequence, attending a program should
never be considered as a reward. Role of each manager at Nestle is to assess
progress, achieved as a result of training programs. The objective is to retain and
motivate employees by offering attractive but realistic career moves allowing them to
develop their skills over a long-term period within the framework of economic reality
and a changing environment. Each manager has the duty to act as a mentor for his
employees. At Nestle formal assessment take place on a standard basis, preferably
once a year. Its purpose is to provide feedback on past performance and future
potential as well as on other relevant aspects concerning a staff members work
including the development of his skills and competencies.

PERFORMANCE APPRAISAL
A performance appraisal, employee appraisal, performance review, or (career)
development discussion is a method by which the job performance of an employee is
evaluated (generally in terms of quality, quantity, cost, and time) typically by the
corresponding manager or supervisor.
Nestle give importance to their employees at their work place because Nestle totally
depend on their quality, so quality achieved by the Nestle on the bases their
employees performance. So if employees are on right track so company gives
incentives to their employees.

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COMPENSATION BENEFITS
Compensation is a key part of Nestl Real Rewards package and helps to attract,
motivate, and retain a workforce of top performers. Our philosophy is to provide and
maintain disciplined compensation programs which value long-term relationships
with employees while recognizing individual performance. Nestl is also committed
to offering compensation packages, including base pay, short and long-term
incentives and benefits, that are competitive in todays market.

BASE PAY
Your base salary is the fixed portion of your pay. Base salaries are designed to be
competitive, based on data specific to each position as measured in the
marketplace. High performance over time is recognized by base pay that is higher
than the market.

SHORT-TERM INCENTIVES
Short-term Incentive pay is designed to reward you for accomplishments during a
specific performance period (typically annually). For most Staff and Division level
positions, Nestl offers Awards for Performance Excellence. Nestl also offers a
variety of Sales and Plant Incentive.

LONG-TERM INCENTIVES
Long-term Incentive plans, such as Nestl are designed to motivate and reward
those in eligible leadership positions for the Companys sustained success over a
longer period, often three years or more. LTIP target award opportunities are set to
be competitive within the market and are calculated as a percentage of pay

HEALTH AND WELLNESS

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The health and wellness of our employees and their families are important to the
Company as they are to you. Thats why Nestl offers a range of healthcare options
through benefits program called NesCARE.
Healthcare plans include preventive care, prescription drug benefits, and may cover
certain alternative medical services. You are given the flexibility to choose the
benefits that are right for you (and your family), including medical, dental and vision
coverage

SPENDING ACCOUNTS
Flexible spending accounts are a great way to save on taxes. These plans allow you
to put aside your pre-tax rupees to reimburse yourself for eligible out-of-pocket
healthcare and dependent daycare expenses incurred during the year.

DISABILITY
There may be a time when you are unable to work due to an illness or injury that
occurred outside of work. Nestl short-term and long-term disability plans offer
financial protection during these periods to assist you in meeting your financial
obligations.

MOTIVATIONAL STRATEGIES
Adoption Assistance
Family is an important part of who we are, which is why Tetra pak offers a valuable
support for the families through various programs.

Employee Discounts
Tetra Pak offers discounts on a broad range of products to their employees also
provide travel and quarters, electronics, gifts, financial services, clothing and more.

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Voluntary Benefits
Tetra Pak makes a number of voluntary benefits available to you through an outside
service provider, including auto and home insurance, prepaid legal services and pet
insurance.

Scholarship Program
The Nestl Scholarship Foundation is proud to sponsor a scholarship program that
provides financial assistance. Scholarship recipients are selected based on
academic record, demonstrated leadership skills, and participation in school and
community activities.

Long-Term Care
Long-Term Care insurance is available to protect employees and eligible family
members from the potential cost of nursing homes or other long-term care.

Employee Assistance Program (EAP)

Nestl provides EAP services at no cost to employees and their eligible family
members for confidential access to professional counselors trained to help with a
variety of personal and family issues. (8)

Pick and Drop Facilities

Nestle provide their employee pick and drop facility, the timing of employee come in
to the workplace is also not disturb. All employees are relatively on the time in their
workplace.

Good Working Environment

Working environment is very suitable for employees. Nestle is multi national
company so they provide their employees effective working environment that
encourage employee to done their work continues effectively

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Games
According to the employee fitness, Nestle held gaming programs for their
employees.

LEADERSHIP STYLE
The Nestl Management and Leadership Principles describe the management style
and the corporate values of the Nestl Group, specifically in the area of interpersonal
relations. Their respect calls for specific attitudes which deserve to be outlined in the
present policy:
A prerequisite for dealing with people is respect and trust. There can be no room for
intolerance, harassment or discrimination of any kind as they are the expression of
an elementary lack of respect. This principle suffers no exception and is to be
applied at all levels and under all circumstances.
Nestle has Democratic Leadership Style because they take advise from their
employees and review it and then take decision. The long-term success of the
Company depends on its capacity to attract, retain and develop employees able to
ensure its growth on a continuing basis. This is a primary responsibility for all
managers. The Nestl policy is to hire staff with personal attitudes and professional
skills enabling them to develop a long-term relationship with the Company.
Therefore the potential for professional development is an essential standard for
recruitment.
Hence, a clear communication of these principles and values from the very
beginning of the recruitment process is required.

(9)

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LABOR POLICIES

In Nestle, management dealing with people is respect and trust. There can be no
room for intolerance, harassment or discrimination of any kind as they are the
expression of an elementary lack of respect. This principle suffers no exception
and is to be applied at all levels and under all circumstances.

Nestle management has work simplicity and honest in dealing with people for
efficient communication. Based on facts and on a sincere dialogue, such
transparency is the only solid basis for boosting continuous improvement.

This is to be complemented by open communication with the purpose of sharing

competencies and boosting creativity. It is particularly relevant in a flat
organization to convey systematically all information to those who need it to do
their

work

properly.

Otherwise

no

effective

delegation

or

knowledge

improvements are possible.

To communicate is not only to inform. It is also to listen and to engage in

dialogue. Every employee has the right to an open conversation with superiors or
colleagues.

In case of discord between an employee and her/his superior or another

employee, the possibility must be offered for a fair hearing. The HR staff of Nestle
will provide assistance to ensure that the disharmony is dealt with impartially and
that each party has the opportunity to explain her/his viewpoint regardless of
hierarchical position.

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