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
Introduction of Nestlé
In today's rapidly evolving global economy, the demand for high-quality labor is increasing, yet there is a significant shortage of specialized workers This gap highlights the importance of Human Resource Management (HRM), which plays a vital role in developing strategies to meet market needs HRM is essential for every business, focusing on maintaining and effectively utilizing labor resources to drive organizational success.
Nestlé exemplifies success through its effective human resource management (HRM) team, which prioritizes humane standards in corporate culture Managers are encouraged to support employee innovation and foster transformative practices, drawing from their international experiences to respect diverse cultures This long-term focus on HRM has significantly contributed to Nestlé's achievements Therefore, we chose to analyze "HRM of Nestlé," exploring its HRM activities, successes, limitations, and potential solutions for further development.
Content
Analysis and evaluation of Nestlé
1.1 History of formation and development
Nestlé, the world's largest food and beverage company headquartered in Vevey, Switzerland, boasts over 2000 brands, including well-known global and local products Their diverse offerings include water, baby food, coffee, and dairy items The company's origins trace back to the 1860s when physician Henri Nestlé developed a formula for infants unable to breastfeed, successfully saving a baby's life This groundbreaking product, Farine Lactée, quickly gained recognition and became widely available across Europe, highlighting the significant impact of Nestlé's innovations in infant nutrition.
Nestlé's mission, "Good Food, Good Life," focuses on offering consumers the tastiest and most nutritious options across various food and beverage categories for all eating occasions Their vision emphasizes becoming a leading Nutrition, Health, and Wellness company that enhances shareholder value while being a preferred corporate citizen, employer, supplier, and provider of sought-after products.
Nestlé has established a strong presence in Vietnam over the past century, with its first representative office opening in 1912 Vietnamese consumers have developed a familiarity and trust in the Nestlé brand and its products, reflecting the company's long-standing commitment to the market.
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 6 factories in Vietnam The total amount invested by Nestlé in Vietnam by the end of
In 2019, Nestlé invested over 700 million USD in Vietnam, highlighting its commitment to the country's long-term development and its goal of enhancing product quality This significant investment reflects Nestlé's dedication to providing consumers with healthier options for a better future.
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 aims to manufacture and market its products in a way that creates long-term value for shareholders, employees, consumers, and business partners The company understands that consumers have a genuine interest in its practices and values, recognizing that its existence hinges on their trust Furthermore, Nestlé is dedicated to adhering to all relevant local laws in its various markets as it enters the new millennium.
The goal is to reinforce and enhance its leadership in food innovation, addressing the global needs and desires of customers for pleasure, convenience, health, and well-being.
2 The HRM of Nestlé in Vietnam
Nestlé's flat organizational structure enhances career development by prioritizing broad-based skill acquisition over traditional hierarchical advancement As a global corporation, Nestlé provides employees with extensive opportunities to maximize their talents through its expansive, borderless operational network.
To effectively address employee needs, companies should conduct a thorough job analysis that involves observing and analyzing key job elements, including the nature of work performed, responsibilities, equipment utilized, working conditions, and the job's position within the organizational structure.
Phân tích mô hình SWOT của FPT
FM ôn thi - Financial Management
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:
: 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.
The company boasts a dedicated team responsible for overseeing data standards, standard reporting, and analytics Their expertise spans from diagnostic and descriptive analytics to predictive modeling and strategic workforce planning.
Nestlé is actively seeking to attract and retain top talent in the market to ensure the company's continued success The HR department is strategically planning for key positions that need to be filled to maintain operational stability.
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 is hiring from the inside This way offers a company many advantages:
Nestlé addresses staffing challenges by generating a pool of well-informed internal applicants who are familiar with the company's job vacancies This approach reduces the likelihood of inflated job expectations and allows for a quicker and more cost-effective hiring process When issues arise, Nestlé promptly communicates announcements to all employees to ensure transparency and engagement in the recruitment process.
7 organization through an internal bulletin, via the internet or bulletin boards to encourage people who are able to participate in applying
External recruiting involves hiring candidates from outside the organization, adhering to Nestlé's principles of aligning hires with the professional backgrounds and characteristics of individuals, while also focusing on long-term career development It is essential to select candidates based on their work experience and compatibility with Nestlé's culture, particularly their personality traits Organizations may choose external recruitment for entry-level and specialized positions when internal candidates lack the necessary qualifications Additionally, incorporating diverse perspectives from new hires can enhance the organization’s adaptability to change, fostering innovation and competitive responsiveness Ultimately, external recruitment not only strengthens the hiring company but also contributes to the overall competitiveness of the industry.
No matter where you apply globally, our local recruitment team ensures a professional, timely, and responsive service throughout the hiring process The recruitment journey can take up to nine weeks from application to offer stage for successful candidates, with our recruiters keeping you updated at every step The process consists of three main steps.
Upon receiving your application, the company will evaluate your skills and experience to determine your suitability for the role They will conduct at least two reference checks with your previous employers to assess your cultural fit and examine your management and leadership style Following this process, a member of their recruitment team will reach out to you.
Interviewing: The next phase is a series of individual interviews with the Human
The resources team will conduct an initial interview with you, either via phone or in person If you succeed in this stage, you will then meet with the relevant hiring manager During the interview process, competency-based techniques will be employed, focusing on your experiences and real-life examples from your professional background.
Employment tests: Some positions may require assessments such as:
The successes and limitations of Nestlé’s HRM
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
The HR team in Sri Lanka achieved gold at the SLITAD Awards, recognizing their exceptional practices in performance and talent management, learning and development, and employee recognition In 2021, Nestlé's South Africa branch received the Top Companies Conscious Company Award, underscoring the company's commitment to leadership and personal responsibility This accolade reflects the CEO's belief in the potential of their workforce and the importance of adaptability as a key factor for success.
Nestlé has been recognized for having the best CSR strategy through its Alliance for YOU jobs program, showcasing its commitment to social responsibility The company's branch in Asia has received multiple accolades, including HR Asia's Best Companies to Work for in Asia Notably, Nestlé Thailand won this award consecutively in 2019 and 2020, while Nestlé Hong Kong has maintained its status as a winner for four consecutive years.
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.
Nestlé Vietnam Limited has garnered significant recognition throughout its development in Vietnam, receiving accolades from esteemed local and international human resource organizations The company has been honored with prestigious awards, highlighting its commitment to excellence in the workplace.
The Vietnam HR Awards, held biennially, recognize companies with outstanding human resource management and policies In 2018, Nestlé Vietnam received accolades for its exemplary compensation and benefits policy, marking its second win in this category This award validates Nestlé Vietnam's commitment to competitive compensation practices and its operational guideline of "Attracting, developing, and retaining talents." The company fosters a high-achievement culture to drive business development Additionally, Nestlé's "Talent Factory" policy enhances talent management by synchronizing activities, boosting human resource efficiency, and aligning with business growth In a rapidly changing environment, this approach is crucial for building a strong talent pool, ensuring sustainability for future generations, and strengthening employee alignment with the company's strategic goals.
HR Asia's Best Companies to Work for in Asia is an annual award recognizing companies that employees consider among the best workplaces in the region Organized by Business Media International (BMI) and HR Asia, a respected magazine for HR professionals, this award highlights exceptional workplace environments Notably, Nestlé received this prestigious recognition for two consecutive years, in 2018 and 2019, affirming its status as one of Asia's top employers.
Nestlé has been awarded as “Typical business for employees” for the third time
In 2022, Nestlé distinguished itself as the sole foreign direct investment (FDI) company in the fast-moving consumer goods (FMCG) sector to be recognized in the "Typical Enterprises for Employees" rankings This accolade, organized by the Vietnam General Confederation of Labor in partnership with the Ministry of Labor, War Invalids and Social Affairs, and the Vietnam Chamber of Commerce and Industry (VCCI), has been awarded since 2014 based on criteria that prioritize employee welfare Nestlé's recognition highlights the company's commitment to enhancing the physical and mental well-being of its workforce, fostering a productive work environment, and promoting employee development.
In 2020, Nestlé Vietnam received recognition from the United Nations Agency for Peace, Gender Equality, and Women's Empowerment (UN Women) for its commitment to gender equality through the Women's Empowerment Principles (WEPs) The company was honored in the categories of community and industry engagement, as well as workplace equality, showcasing its dedication to fostering an inclusive work environment that values diversity and empowers women Noteworthy initiatives include the Nescafe Plan Project, which features 30% female farmer leaders among its participants, and the fact that over 50% of Nestlé's senior management and leadership positions are held by women.
In a challenging year, Nestlé Vietnam has been honored as the most sustainable company and the best workplace in Vietnam for 2021 by Vietnam Excellence, highlighting its commitment to employee well-being through its 4T strategy.
Nestlé's recruitment process is a key success in its HR strategy, focusing on building a strong workforce from the outset The company emphasizes finding suitable candidates for long-term roles by targeting individuals with the right qualifications, attitudes, experiences, and skills Through a consistent and competitive selection process, Nestlé effectively uncovers the true potential of its talent, ensuring the right fit for both the employees and the organization.
Nestlé employs experienced interviewers who primarily conduct group interviews, optimizing time for both candidates and interviewers while facilitating direct comparisons among applicants By incorporating aptitude and incentive questions, Nestlé effectively identifies the most suitable candidates for available positions.
Nestlé sets high recruitment standards, seeking candidates with a blend of knowledge, personality, and motivation Applicants must demonstrate intelligence, analytical skills, diligence, and a strong work ethic, alongside solid academic performance and relevant work experience Essential traits include negotiation abilities, problem-solving skills, and effective communication The company values leadership qualities, a positive attitude, and resilience under pressure, creating a challenging environment for fresh candidates aspiring to join However, securing a position does not always ensure a perfect match between a candidate's skills and the job requirements.
Many applicants possess qualifications for a specific vacancy, yet the position may not align with their career aspirations This discrepancy often leads to a mismatch between job seekers and available roles, highlighting the importance of finding a position that suits both skills and personal goals.
Nestlé faces criticism for insufficient efforts to address child labor abuse in its supply chain, particularly concerning the cocoa used in its KitKat and Milo products The company sources cocoa beans from plantations in the Ivory Coast, where there are frequent allegations of child labor exploitation Children aged 12 to 15 are reportedly trafficked from neighboring countries to work under harsh conditions as virtual slaves Despite being aware of this serious issue, Nestlé has taken minimal action to enhance the working conditions on these plantations.
The company's interview selection process has notable weaknesses, as candidates are sometimes chosen based on personal traits or relationships rather than qualifications Additionally, strong references can lead to the selection of individuals who may not meet the necessary eligibility criteria for the position.
Nestlé's training and development programs primarily focus on professional training and job-related skills, such as management and sales skills, which can result in increased costs and time commitments for training This emphasis may also cause stress for new employees and limit their decision-making empowerment Furthermore, the company's efforts to foster creativity among employees fall short of contemporary standards.
Recommendations
In the recruitment and selection process, companies should prioritize external recruitment through job fairs to foster innovation and creativity Once a pool of qualified candidates is established, the hiring process can commence, ensuring that personal biases are minimized It is essential for companies to implement policies that promote cultural diversity, allowing individuals from various backgrounds to thrive within the organization.
The selection process for companies should prioritize the behavior of candidates, emphasizing work sampling to allow applicants to demonstrate their skills through actual job activities Managers at Nestlé should also utilize psychometric assessments to identify personality traits that are indicative of future success.
Nestlé faces significant challenges in its recruitment process, as the stringent criteria may deter suitable candidates and create barriers in attracting applicants To enhance efficiency and accuracy, the company should leverage technological innovations, including AI and big data, to streamline the recruitment and selection process By replacing manual steps with automated tools, Nestlé can improve each stage of hiring, ultimately leading to better outcomes.
To enhance professional development within the HR department, it is essential to establish an ethical system that encourages employee participation in all departmental activities Nestlé should implement a recruitment strategy ensuring that suitable candidates are readily available when needed, while actively eliminating favoritism within the HR team Frequent meetings among HR managers and employees can help address misunderstandings and foster a collaborative environment Additionally, investing in centralized campus technologies and systems will further support employee development initiatives.
The training and development process for new staff is currently overly stressful, necessitating adjustments to the program to better suit newcomers Implementing positive actions, such as encouragement and rewards for each training milestone, can significantly enhance their creativity, motivation, and loyalty to the company.
Conclusion
Nestlé’s guiding principle emphasizes “mutual respect, trust, and transparency,” focusing on the importance of human factors in human resource management (HRM) The company has consistently prioritized a supportive work environment and employee welfare, adapting effectively to the dynamic business landscape while upholding its core values Despite its recognition for successful HRM practices, Nestlé faces ongoing challenges that require attention, particularly as the business environment evolves To navigate these changes, the corporation must remain vigilant of both internal and external factors, ensuring necessary improvements in HRM to thrive in the future.