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 corporat
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 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 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 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 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 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 Document continues below Discover more from: Principal of Management Học viện Ngân hàng 8 documents Go to course 20 Phân tích mơ hình SWOT FPT Principal of Management None Group - Netlé POM - Assignment Principal of Management None FM ôn thi - Financial Management Principal of Management None POM - A1 Grade and Summative… Principal of Management None OM A1 final - POM 45 Principal of Management None A shoeshine operation… Principal of Nestlé uses a wide range of methods to figure out the relevant job analysis a longNone Management with job description and job specification Some methods are used by the organization: : conducted by the company to determine the activities that need to be performed : completed every six months by all employees and managers : groups or individuals (groups or individual) : 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: Internal recruiting Internal recruiting is hiring from the inside This way offers a company many advantages: , it generates a sample of applicants who are well known to the firm these applicants are relatively knowledgeable about the company’s vacancies, which minimize the possibility of inflated expectations about the job it is generally cheaper and faster to fill vacancies internally When Nestlé notices these problems, they immediately send announcements to all employees in the 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: 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 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 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: 14 protect employee health and safety Every week, a listening session is held to listen to employees’ wishes 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 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 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 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 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 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 18 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 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 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 19 1.2 Notable strength One of Nestlé’s highlighted successes in HR can be mentioned is the recruitment process Specifically, the way this company recruits their people is to create a strong workforce from the start, and find a suitable candidate for an appropriate lifelong job For instance, starting with candidates with the fitting qualifications, attitudes, experiences and skills found through the consistent method, the employers continue selecting the members through the competitive employing techniques, in order to reveal the talents’ real ability Nestlé, whose interviewers are experienced, mainly uses the group interview, which would save the time for both the interviews and the candidates, as well as help the employers to compare the ones interviewed Furthermore, by using the aptitude and incentive questions, the employers would be able to select the suitable person for the job Limitations Nestlé is known for challenging criteria when it comes to recruitment opportunities Candidates are expected to have a combination of characteristics ranging from knowledge, personality to motivation Applications have to show their intelligence with a sharp analytical mind, diligence, and commitment to work Not only good academic results but also experience from previous jobs, the ability to negotiate, analyze and handle problems, dynamic and communicative traits are also needed The company wants candidates with leadership skills, who have a positive attitude and the ability to work hard under pressure The wide range of expectations sets the bar for fresh candidates to fulfill their dream to work in the company However, in some cases the arrival of a new candidate does not guarantee to translate into a suitable position with the right skillset and 20 qualifications wanting to fill in that vacancy right at that time Furthermore, the vacancy may be of a post that does not match the wishes of an applicant who wants to apply Nestlé is accused of not having enough actions to tackle chill labor abuse Chocolate in the company’s flavoring Kitkat or Milo products are made from African imported cocoa beans Specifically, cocoa beans purchased prom Ivorian Coast plantations that is often accused of using child labour to save cost Children from the age of 12 to 15 are trafficked from neighbor countries to work as slave in terrible working condition Although this dilemma came to the awareness of Nestlé’s managers, little actions were taken to improve the conditions In terms of selection activities, the criteria of the interviewing procedure of the company contains several weaknesses Sometimes the interviewer selects the candidate based on personal characteristics or personal relationship, or even selects a candidate which is not eligible for the vacancy because of strong reference Nestlé's training and development programs put too much stress on professional training and job-related skills for instance management skills and sales skills This leads to some limitations such as: a significant increase in cost and time for training as well as stress for new staff It could lead to the problem that decision making among staff are not fully empowered Moreover, the company does not have enough actions to enhance creativity among employees to the extent of contemporary standards The resistance to change among the older employees leads to the unconsciousness in the introduction of novel technology achievements such as the Human Resource Information system High operation expenses in the firm contribute to the disruption of some departments and inequality in the distribution of funds to manage all factors of production in the company 21 Opportunities Besides receiving a great number of honourable awards, Nestlé needs to set the suitable goals to grab the development opportunities In order to decrease the limitations of HRM and concentrate on the growth orientation, Nestlé can approach other methods such as HR recruitment optimization strategy for large food factories with the use of lean manufacturing methods Promoting the control capacity of the development of large food factories can shorten manufacturing time and produce more products After applying the new method, all of the indicators are changing for the better, which makes it possible to consider the right direction of recruitment system improvement This used to test on Nestlé Kuban Company and recorded positive results that the hired employees and their compliance have a direct relationship with HRM policy The competency matrix of Nestlé Kuban also can be used to further motivate employees and decrease their engagement This matrix is the basis for career advancement, enabling each employee to understand how to become a leader, and also providing additional motivation in the form of increase in the percentage of personal contribution to goal achievement In the nutshell, changing the HRM method can be a key factor for several development opportunities of Nestlé in the future III Recommendations In the recruitment and selection process, the company should recruit employees through job fairs and focus on external recruitment that innovation and creativity is taken place When a collection of qualified candidates are available, the requirement process is started That company recruit employees then personal biases of employees are avoided Company should introduce such a policy so that people belongs to different culture fit 22 with organization The companies’ selection process should have main focus on bahavior of selected candidate The manager of Nestlé should focus on work sampling because applicant performs a small sampling of actual job activities Using psychometric assessment to pinpoint those personality factors that predict success From the limitations, Nestlé should better the situation of the firm that the criteria is extremely challenging For this reason, the candidates may not perfectly suitable for the companies’ standard and it may lead to a barrier in the finding applicants process In addition, recruitment and selection process should be faster and more accurate, that means they should put into practice the innovation of technology, AI and big data to easily control all the process Replacing some manual step in the recruitment by automatic tools may makes all stages better In the professional development, developing such a system in their HR department is a recommendation that no ethical issued can be raised The employee should participate in all the activities of the department Nestlé should choose plan in such a way that when there is a need of recruitment, the proper candidate must be available The factor of favoritism must be eliminated from the department of HR The managers should hold meetings of the HR employees more frequently for eliminating any misunderstanding Besides that, centralized campus technology/systems be created or enhanced to support employee development The training and developing process is being put too much stress for the new staff The company should adjust the training program suitably for the freshman Taking some positive actions like encouraging and rewarding them through each test of training process This can boost their creativity, willingness to work and the faithful ability with the company 23 C Conclusion Nestlé’s motto is based on the concept of “Mutual respect, trust and transparency in relating to one another and encouraging open communication & cooperation”, in other words, it revolves around the main problem of “Human” In HR, “human” is an essential factor, which Nestlé has always maintained in a sustained way through the work environment, welfare and so on, and ensure the HRM is the same as preparing the company in the ever-changing business environment In fact, Nestlé has exhibited the ability to adapt to the external environment without losing its core values Although the company has been recognised for its success in human resource management, there are still drawbacks that need more effort to fix; furthermore, the upcoming years would bring more challenges to how the HRM works when doing business As a result, the corporation needs to be fully aware of the internal and external pros and cons in order to prepare for the changes that need to be taken in HRM, as well as the improvement needed to strive in the business 24 D References English references Travel through our history timeline, Nestlé Global, https://www.nestle.com/about/history/nestle-company-history#:~:text=Our%20history %20begins%20in%201866,known%20as%20the%20Nestl%C3%A9%20Group Business Principle, Nestlé Global, https://www.nestle-esar.com/aboutus/business-principles Our people, Nestlé Global, https://www.nestle-cwa.com/en/csv/what-is-csv/governance/our-people The Nestlé Human Resources Policy, https://www.nestle.com/sites/default/files/assetlibrary/documents/jobs/the_nestle_hr_policy_pdf_2012.pdf Our R&D organization, Nestlé Global, https://www.nestle.com/aboutus/research-development/organization Why Nestlé is one of the most hated companies in the world, ZME science, https://www.zmescience.com/science/nestle-company-pollution-children/ Vietnamese references Nestlé Việt Nam kiến tạo giá trị bền vững từ “hạt nhân” người, Zing news, https://zingnews.vn/nestle-viet-nam-kien-tao-gia-tri-ben-vung-tu-hat-nhan-con-nguoipost1290703.html 25 Nestlé Việt Nam doanh nghiệp FMCG nước vào bảng xếp hạng “Doanh nghiệp tiêu biểu người lao động 2022”, Nestlé Việt Nam, https://www.nestle.com.vn/vi/media/nestle-la-doanh-nghiep-tieu-bieu-vi-nguoi-lao-dong Nestlé Việt Nam: Tạo đà cho nữ giới tỏa sáng, Báo đầu tư, https://baodautu.vn/nestle-viet-nam-tao-da-cho-nu-gioi-toa-sang-d162194.html More from: Principal of Management Học viện Ngân hàng 8 documents Go to course Phân tích mơ hình 20 SWOT FPT Principal of Management None Group - Netlé POM - Assignment Principal of Management None FM ôn thi - Financial Management Principal of Management None POM - A1 Grade and Summative Feedbac… Principal of Management More from: Mai Phương Trần 999+ None Học viện Ngân hàng Discover more BT-KTTC-1 - Giải sbt 82 17 KTTC Kế toán tài I Bài làm Chapter Concept Questions… Corporate Finance 100% (3) Dictionary ACCA - Từ điển ACCA Kế toán 100% (8) 100% (1) 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