Assignment principles of management project the hrm of nestlé

Untitled BANKING ACADEMY OF VIETNAM FACULTY OF BUSINESS ADMINISTRATION ASSIGNMENT PRINCIPLES OF MANAGEMENT PROJECT THE HRM OF NESTLÉ Lecturer MSc Giang Nguyen Group The A team Members Nguyễn Thị Bằng[.]

lOMoARcPSD|18034504 BANKING ACADEMY OF VIETNAM FACULTY OF BUSINESS ADMINISTRATION ASSIGNMENT PRINCIPLES OF MANAGEMENT PROJECT: THE HRM OF NESTLÉ Lecturer: MSc.Giang Nguyen Group: The A team Members: Nguyễn Thị Bằng An Đào Thu Hương Nguyễn Quỳnh Anh Đinh Phương Linh Lê Anh Đức Trần Mai Phương Trần Thanh Hoa Nguyễn Thành Vinh Ha Noi, 12/2022 lOMoARcPSD|18034504 Table of contents A Introduction of Nestlé B Content I Analysis and evaluation of Nestlé Organization overview 1.1 History of formation and development 1.2 Goals and objectives 1.3 Organization structure The HRM of Nestlé in Vietnam 2.1 Human resourcing planning 2.2 Recruitment and selection 2.3 Orientation, training and development 2.4 Performance Appraisal 10 2.5 Compensation and Benefits 10 II The successes and limitations of Nestlé’s HRM .13 Successes 13 1.1 Awards 13 1.2 Notable strength 15 Limitations 16 Opportunities 17 III Recommendations 18 C Conclusion 20 D References 21 lOMoARcPSD|18034504 A Introduction of Nestlé In contemporary society, all countries across the globe are having constant revolutions in every aspect of economy The demand for labor’s quality is rising yet there is a lack of specialized labor, leading to the need of HRM which is a crucial factor to develop and to meet the market demand HRM is prioritized in every business and associated with a number of strategies for business They are responsible for critical roles such as: maintaining labor resources and effectively utilizing those labor resources Nestlé is a typical example of their success because of their quality HRM team By emphasizing humane standards as their most critical factor to structure their corporate culture, Nestlé's managers are required to encourage their employees, to prioritize innovation in their working environment, and to foster revolutions The managers themselves have had experiences in an international working environment, in which they learned to respect every culture from other countries and fostered long-term development strategies over short-term ones HRM is a great contribution to this success By acknowledging the importance of this aspect, we decided to select the topic “HRM of Nestlé” with the analysis of Nestlé’s HRM activities, success, limitations and solution for the development lOMoARcPSD|18034504 B Content I Analysis and evaluation of Nestlé Organization overview 1.1 History of formation and development Nestlé global The largest food and beverage company in the world, Nestlé, is based in Vevey, Switzerland They have over 2000 brands ranging from iconic global brands to local brands Water, baby food, coffee, and dairy products are just a few of Nestlé's currently available goods In the 1860s, physician Henri Nestlé invented a food for infants who could not be breastfed His first accomplishment was saving the life of a baby who was unable to be fed by breast milk or any other traditional means Since Nestlé's new formula saved infant lives, the worth of this new product was quickly understood Since then, milk powder from Farine Lactée Henrie Nestlé has become widely available in Europe Nestlé’s mission of “Good Food, Good Life” is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night In addition, their vision Statement and values is to be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier selling preferred products Nestlé Vietnam Vietnamese consumers have grown accustomed to the Nestlé brand and its goods over the past 100 years The business has been active in the Vietnamese market for a long time, having opened its first representative office there in 1912 lOMoARcPSD|18034504 Nestlé Vietnam Co., Ltd focuses on manufacturing and distributing nutritional, food and beverage product lines recognizable to Vietnamese consumers such as Milo, Nescafé, Maggi, As of right now, Nestlé employs more than 2,900 people across the country and runs factories in Vietnam The total amount invested by Nestlé in Vietnam by the end of 2019 was over 700 million USD Nestlé has invested hundreds of millions of dollars in Vietnam, demonstrating not only the company's commitment to the country's long-term development but also its desire to constantly raise the caliber of its products and give consumers a healthier future 1.2 Goals and objectives Nestlé Vietnam's goal is “We maximize the power of food to improve the quality of life for everyone, today and generations in the future" Nestlé'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 Nestlé 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 Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each off markets At the entrance of this new millennium, Nestlé”s 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 lOMoARcPSD|18034504 1.3 Organization structure Managing Director Production Manager Human resource Manager Marketing Manager Finance Manager Organizational Development Manager Human Resource Analysist Employee Relations Manager Recruitment Manager Manager Remuneration Payroll Manager Funds Manager The HRM of Nestlé in Vietnam 2.1 Human resourcing planning In an organization with a flat structure like Nestlé, the way of vertical career development (hierarchical) is supplemented and gradually replaced by broad-based development, promoted by gaining more skills and new features At the scale of a global corporation, Nestlé offers employees the opportunity to develop their talents to the maximum, thanks to its borderless operating network Understanding current employee needs To understand your employee needs, the company must have job analysis to determine, by observation and analysis, the basic elements of a job like: nature of their work performed, responsibility, equipment used, conditions of working, job position within the organization lOMoARcPSD|18034504 Nestlé uses a wide range of methods to figure out the relevant job analysis a long with job description and job specification Some methods are used by the organization: Employee and supervisor interviews: conducted by the company to determine the activities that need to be performed Structured and open-ended questionnaires: completed every six months by all employees and managers Employee work-logs: groups or individuals (groups or individual) Observation: used by managers to gather all the above details describing the work of a particular task Predicting future employee needs The company has a team that has responsibility for managing everything from data standards through standard reporting and analytics, whether it's diagnostic and escriptive, through to some of the more predictive stuff, and then into strategic workforce planning In addition, Nestlé is trying to attract more and more talented people in the market so that they can develop and retain them The Nestlé HR department is continuing to plan on the positions that need to be filled in order to keep the company floating 2.2 Recruitment and selection 2.2.1 Recruitment Recruitment is “the process of locating and attracting qualified applicants for jobs open in the organization” Here is the Recruitment process of Nestlé: lOMoARcPSD|18034504 Internal recruiting Internal recruiting is hiring from the inside This way offers a company many advantages: First, it generates a sample of applicants who are well known to the firm Second, these applicants are relatively knowledgeable about the company’s vacancies, which minimize the possibility of inflated expectations about the job Third, it is generally cheaper and faster to fill vacancies internally When Nestlé notices these problems, they immediately send announcements to all employees in the lOMoARcPSD|18034504 organization through an internal bulletin, via the internet or bulletin boards to encourage people who are able to participate in applying External recruiting External recruiting is hiring from the outside When need external employment, according to recruitment and development of the basic principles of Nestlé: hire has to adapt to the professional background and characteristics of male or female, give the organization long-term career development planning Standard should be selected in the work instruction and defined within the background of the candidates, pay special attention to the candidate's personality should Nestlé culture There are also several good reasons why organizations might decide to recruit externally: First, for entry level positions and perhaps even for some specialized upper level positions, there may not be any qualified candidates from within the company to fill a position Second, by bringing in different people with new ideas and approaches, the organization can better adapt to changing conditions Using only internally-recruited workers can lead them to have similar opinions which could impede their ability to innovate or respond effectively when faced with competition Finally, recruiting from outside sources strengthens both the company itself and its rivals at the same time 2.2.2 Selection Wherever in the world you apply, the local recruitment team will provide a professional, timely and responsive service.The recruitment process can take up to nine weeks from your application through to offer stage should you be successful, and the organization recruiters will keep you informed every step of the way There are three main steps: lOMoARcPSD|18034504 Background information: Once they receive your application, they’ll analyse your skills and experience to assess your match to the role profile The company will conduct at least two reference checks from your previous employers to ensure that your potential fit with their culture is right, as well as exploring such things as your management and leadership style.You’ll then be contacted by one of their recruitment team Interviewing: The next phase is a series of individual interviews with the Human Resources team – either by phone or face-to-face interview If you’re successful, you will then be interviewed by the appropriate hiring manager Throughout the process, they’ll use competency-based interviewing techniques that will draw on your experiences and real examples from your professional life Employment tests: Some positions may require assessments such as: Psychometric testing The assessments we use cover the following areas – abstract, verbal and numerical reasoning as well as personality and motivational profiling You will be given the opportunity to receive verbal feedback as part of the psychometric testing stage Case studies You will be given a scenario relevant to the job you've applied for, and be asked to prepare a short presentation or response You will present this back to the hiring manager, whilst at the same time, receiving verbal feedback on your approach Medical assessment Some positions may require you to undergo a pre-placement medical assessment The details of an assessment will be given to you if relevant to the position you are applying for If you success get through all the steps then congratulations and welcome you to the Nestlé team The organization will give you more information about your induction lOMoARcPSD|18034504 11 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 Jair Andres Santa, Nestlé Columbia “It’s not only a matter of learning bakery; we also learn about microbiology, finance, budgeting, costs, sales, how to treat the customer, and so on” Local training Two-thirds of all Nestlé employees work in factories, most of which organize continuous training to meet their specific needs So that local training is the largest component of Nestlé’s people development activities worldwide Ensuring appropriate and continuous training is an official part of every manager’s responsibilities and, in many cases, the manager is personally involved in the teaching For this reason, part of the training structure in every company is focused on developing managers' own coaching skills The variety of programs is very extensive They start with continuation training for ex-apprentices who have potential to become supervisors or section leaders, and continue through several levels of technical, electrical and maintenance engineering International Training Nestlé founded the Rive-Reine training center in order to provide training sessions for employees from all over the world for or weeks training sessions Typically a class contains 15-20 nationalities The center delivers some 70 courses, trains around 2,000 people per year They all work in various departments ranging from HR, Finance, Operations, Research & Development, to Marketing & Sales Development Programs at Nestlé lOMoARcPSD|18034504 12 Learning is a part of Nestlé's culture Each employee, at all levels, is conscious of the need to continuously upgrade her/his knowledge 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 offer the opportunity to progress for those having the determination and the potential to develop their capabilities 2.4 Performance Appraisal For evaluation of employees there is Performance Development Rating To evaluate success, the rating is used which looks at two major aspects: “what” and “how” The “what” measures success in achieving the individual established goals and the “how” looks at employee behavior, soft skills, team working abilities… This PDR then becomes the basis for reward of the high performance at Nestlé Moreover, performance appraisal is a developmental tool that is used to measure factors such as: job knowledge; quality and quantity of output; leadership abilities; dependability; co-operation & judgment… 2.5 Compensation and Benefits In all activities, Nestlé aims to improve the physical and mental health of employees with a focus on four aspects: Financial (competitive salaries and bonuses), Spiritual (a diverse and inclusive environment with a meaningful contribution to society), Physical (providing knowledge and support to build a healthy lifestyle), and Emotional (building a culture of transparency and trust) 2.5.1 Financial compensation Nestlé builds extremely dynamic and competitive compensation and benefits in all areas Short-term or long-term salaries, bonuses, and additional benefits for employees’ salaries are high Nestlé Vietnam believes this is important to start a good life for employees and their families lOMoARcPSD|18034504 13 Base salary This is the salary paid based on the position of each employee and the employees are paid a base salary once a month Like other companies, the base salary of employees at Nestlé is determined by their role and experience Popular positions at Nestlé are technical staff, brand manager, marketing, and many other positions In these positions, the level is used to measure employee performance and experience The average Nestlé salary ranges from around $45,764 per year for an engineering microbiologist, up to $307,314 per year for a director The average hourly wage of Nestlé ranges from about $16 per hour for a shopkeeper, to $36 per hour for the maintenance worker (According to Glassdoor.com statistics) In Vietnam, Nestlé's average salary ranges from about million VND per month for sellers, 10 million VND per month for factory operators, and 10 million VND per month for forklift drivers Annual cash bonus Employees working at Nestlé will receive a salary bonus for the 13th and 14th months and awards are usually given in the December of each year However, whether members receive this bonus or not doesn’t depend on their joining time, it depends on the recorded business results 2.5.2 Benefits Welfare policies Healthcare Nestlé employees are paid health insurance, social insurance, and access to top health care benefits All Nestlé employees receive Generali health insurance (employees are examined and treated in high-end hospitals and clinics) Especially, during the Covid19 pandemic, Nestlé provided a medical team to consult with and treat workers and provided oxygen generators for workers' families who had sick family members Every week, the company implements many different initiatives such as healthcare, and club organizing, to help people connect and stay active Every morning, they discuss how to lOMoARcPSD|18034504 14 protect employee health and safety Every week, a listening session is held to listen to employees’ wishes Mental health care Every year, Nestlé organizes team building activities and sports activities like the Football Champion League These are the programs that show team spirit and ability to take up the challenge of each NESTLÉ employee Besides, Nestlé's office is designed to prioritize natural elements, which help employees feel comfortable whenever they work In addition, the dining area, playing sports, and relaxation room are also arranged privately so that employees can take a break when they need to re-energize The company also equips lots of meeting rooms, with modern facilities for effective work as well as employee’s rest time Allowances Employees who use Nestlé's nutritional products are free to buy at the factory and can buy Nestlé products at a more favorable price than the market All the employees can use the company's means of transportation In addition to holidays and Tet, each Nestlé employee has the equivalent of working weeks In particular, Nestlé also has a maternity policy with a paid maternity leave of at least 14 weeks and has the right to extend the leave period up to months Career opportunities Nestlé Vietnam not only offers competitive salaries and welfare policies based on sustainable work performance but also creates value for its employees These factors are crucial in attracting and retaining staff members Employees benefit from a healthy lOMoARcPSD|18034504 15 relationship with management and colleagues, gain recognition and experience from working for a multinational company, and have the opportunity to learn and grow According to Nestlé Vietnam's HR director: For Nestlé Vietnam, employees are the most valuable assets This is the reason why the company wants to ensure each employee has a chance to make a contribution, grow, and climb the career ladder The company has created motivation for all employees and appreciate their value and potential without regard to race, ethnicity, sex, nationality, religion, age, or other differences." Nestlé gives employees not only a good job but also a lot of opportunities for long-term career development Every manager at Nestlé is asked to motivate and support employees to find ways to improve work They always motivate individuals to seek opportunities to strive and learn new things, thereby developing personal capacity as well as a career path In 2022, the company has invested VND 17 billion ($739,000) in training activities to improve the expertise and skills of its employees Nestlé builds a clear career development path by levels in combination with specific training programs for each position based on its own core values Therefore, it promotes employee development and gives them long-term learning opportunities At Nestlé, there are specific training programs such as literacy training for workers with the aim to increase labor productivity, maintaining a positive working attitude, and confidence to argue; vocational training for students outside the company; or local training to meet high-quality human resources needs As a multinational corporation, Nestlé offers employees the opportunity for selfdevelopment with a clear career development path Despite the impacts of the pandemic on the company’s business performance over the 2020-2021 period, Nestlé Vietnam always places top priority on the safety, stability, salary, bonus, and welfare of all employees II The successes and limitations of Nestlé’s HRM lOMoARcPSD|18034504 16 Successes 1.1 Awards As a worldwide company whose branches are all over the world, Nestlé has been nominated and achieved numerous awards within the region served In 2016, the Nestlé HR team in Sri Lanka won the gold at SLITAD Awards, an award to recognise the best people development across Sri Lankan business enterprises, for their top-of-the-range practices regarding performance and talent management, learning and development, employee recognition initiatives and creative HR actions In 2021, its branch in South Africa was honored to be one of the Top Companies Conscious Company Awards, this is the emphasized proof for Nestlé’s commitment to leadership and personal responsibility, as well as the demonstration for the CEO’s belief in the power of their people and the capacity to adapt new things as a crucial enabler to flourish; within the same year, Nestlé UK was honored as the company has the best CSR Strategy for its Nestlé’s Alliance for YOU jobs programme One of the most recognisable awards for Nestlé’s branch, especially in Asia, is the HR Asia’s Best Companies to work for in Asia, this award has announced Nestlé’s branch name various times; for instance, Nestlé Thailand was the Winner of Thailand for two years continuously (2019 and 2020), Nestlé Hongkong has been holding a seat in the Winner of Hongkong for years without interruption (namely 2019, 2020, 2021, 2022), To be recognised by such noticeable awards, Nestlé has proved itself as a role model for organizations as one of the best human resource management Regarding The Nestlé Vietnam Limited, during the development process in Vietnam, Nestlé Vietnam has been repeatedly appreciated by reputable local and international human resource organizations and recognized and voted with the most prestigious awards The leading corporation in “Compensation and Benefits Policy” and “Talent Management” lOMoARcPSD|18034504 17 Vietnam HR Awards is an award held every two years in order to seek and honor the companies whose human resource management and policies are excellent and prestigious In 2018, Nestlé Vietnam was honored in its ceremony with the award for its compensation & benefits policy and talent management, be it the second time the corp received these Regarding the Compensation and Benefits Policy, the award is the confirmation for Nestlé Vietnam’s strategies, with a competitive and effective compensation and benefits practice Following its own operational guideline “Attracting, developing and retaining talents”, the company keeps on promoting the high achievement culture in order to improve its business development In terms of talent management, Nestlé Vietnam applied the policy called “Talent Factory” - an integration creating the synchronization in the talent management activities, which can improve the efficiency of the human resource and the business development of the company With the everchanging environment, this policy plays an important part in building a strong frontline talent force for current needs, improving the sustainability of the next generations and strengthening the relationship between the employees and the companies’ business strategy One of the best company to work for in Asia The HR Asia’s Best Companies to Work for in Asia is an annual reward for the company which was recognised by their employees as one of Asia’s best working places The award is organized by the Business Media International (BMI) - a leading business related media and event properties and HR Asia, a reputable magazine for HR professionals In two continual years, 2018 and 2019 , Nestlé was named as one of the best companies to work for in Asia by this Asia's leading HR magazine lOMoARcPSD|18034504 18 Typical business for employees Nestlé has been awarded as “Typical business for employees” for the third time (2018, 2020, 2022) In 2022, Nestlé was the only FDI company in FMCG who made it into the “Typical enterprises for employees” rankings The ranking is organized by the Vietnam General Confederation of Labor, in collaboration with the Ministry of Labor, War Invalids and Social Affairs, as well as the Vietnam Chamber of Commerce and Industry (VCCI) from 2014 to present, through the program’s set of criteria taking employees into consideration As Nestlé received this award, the company was acknowledged for its efforts to take care of employees’physical and mental lives, ensure and improve an effective working environment and promote employees’capabilities UN Women Awards for improving gender equality In 2020, Nestlé Vietnam was honored by the United Nations Agency for Peace Gender Equality and Women's Empowerment (UN Women) awarded the Women's Empowerment Principles (WEPs) in the following categories: Gender Equality through Community and Industry Engagement; Gender equality in the workplace This is the evidence for Nestlé’s attempt in building an equality based working environment which is based on the values of respecting differences and principles of women’s empowerment Some of the notable examples are the Nescafe Plan Project, whose percentage of female farmer leaders is 30% of the total leaders participated, or the fact that over 50% of their senior management and leaders are women Best Workplace Wellbeing 2021 Despite the most challenging year in decades, Nestlé Vietnam has won recognition as the most sustainable company and the best place to work in Vietnam in 2021 by Vietnam Excellence This is due to the fact that Nestlé places top priority for the employees by using the 4T strategy ... Some of the notable examples are the Nescafe Plan Project, whose percentage of female farmer leaders is 30% of the total leaders participated, or the fact that over 50% of their senior management. .. improving the sustainability of the next generations and strengthening the relationship between the employees and the companies’ business strategy One of the best company to work for in Asia The HR... integration creating the synchronization in the talent management activities, which can improve the efficiency of the human resource and the business development of the company With the everchanging