unit title human resource management

Over the years, Nestlé Group has continuously invested in new construction, expanded production lines at factories and diversified products to serve the needs of food, nutrition and heal

PROGRAM TITLE: Higher Nationals Business

UNIT TITLE: Human Resource Management

ASSIGNMENT NUMBER: 1

ASSIGNMENT NAME: Assignment 1

SUBMISSION DATE: 18 November 2022

DATE RECEIVED: 15 October 2022

TUTORIAL LECTURER: Pham Xuan Hung

WORD COUNT: 2637

STUDENT NAME: Nham Thi Thanh Huyen STUDENT ID: BKC13271

MOBILE NUMBER: 0934629292

Internal verification:

Table of Contents

Briefly introduce the company 4 Among main areas of HRM (e.g: resourcing, employee relations, organisational development and design, learning and development, etc.), choose and explain (with specific evidences) at least TWO areas that the chosen company is applying 4 With the TWO chosen areas, decide and explain which area is more important in creating

sustainable organisational performance 5 State some recent changes in the chosen company 6 Determine the skills and knowledge that human resources in the company should adapt due to such changes of the company 6 Examine the methods that HRM department of the chosen company should carry out to help staff gain the skills and knowledge required above 6 Evaluate the strengths and weaknesses of the upper methods 7 State the business objectives of the chosen company 8 Review relevant HRM practices to recruit and retain staff to help the company gain the

objectives 8 Evaluate the upper HRM practices 10 Examine if the relevant HRM practices to recruit and retain staff are competitive in the labour market 11 References 13

Briefly introduce the company.

Nestlé Vietnam Co., Ltd was established in 1995 with 100% foreign investment capital and belongs to Nestlé S.A Group Nestlé S.A is the largest food and beverage company in the world Nestlé is present in 191 countries with 328,000 employees worldwide, headquartered

in Vevey - Switzerland Nestlé is committed to improving the quality of life and contributing

to a healthier future for consumers around the world Over the years, Nestlé Group has continuously invested in new construction, expanded production lines at factories and diversified products to serve the needs of food, nutrition and healthy living for consumers in Vietnam

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Among main areas of HRM (e.g: resourcing, employee relations, organisational

development and design, learning and development, etc.), choose and explain (with specific evidences) at least TWO areas that the chosen company is applying

Two of the HRM areas that Nestlé is applying are Financial compensation and talent development - performance management

1 Financial compensation: including direct compensation and indirect compensation Nestlé's average salary ranges from about 9 million VND per month for sellers, 10 million VND per month for factory operators, and 10 million VND per month for forklift drivers In addition, employees working at Nestlé will receive a salary bonus for the 13th and 14th months That award is usually given in the December of each year Moreover, employees at Nestlé also receive bonuses according to the recorded business results

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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) 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 In addition, employees use the company's means of transportation

In addition to holidays and Tet, each Nestlé’s employee has the equivalent of 3 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 6 months

2 Talent development and performance management

- At Nestlé, a high-performance culture is supported by rewards and differentiated growth

- Online management and staff work together to ensure that the goals set are evaluated effectively throughout the year Each manager takes the time necessary to monitor the goals and coaches regularly throughout the year

- Employees receive regular feedback on their performance and career aspirations through a variety of tools and processes (Performance Evaluation (PE), Progress and Development Guidelines (PDG), and 360° assessments)

- Employees who are interested in international missions can be given the opportunity

to work in different countries Nestlé has focused on removing barriers to career growth for women and men by developing more flexible work environments, initiating mentorship plans, having flexible career paths and dual career support

- The company implements an active and rigorous planning process at all levels to ensure that there is a robust legacy system ready to meet future needs

- HR management provides, support to deploy the necessary tools and cooperate with managers online From there, prepare the necessary resources for the continuous development of people and companies

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With the TWO chosen areas, decide and explain which area is more important in

creating sustainable organisational performance

Talent development and performance management are more important in creating sustainable operations for the company The company’s employees learn new skills, new knowledge, they have the opportunity to improve themselves From there, the company's employees successfully complete the set jobs and have the opportunity to promote in their careers Performance management helps save and optimize the use of resources Performance management also helps businesses develop, create a position in the market and contribute to building a positive working culture for businesses Above all, performance management brings the best experience and product to customers

State some recent changes in the chosen company

16/7/2022 Nestlé Vietnam Co., Ltd and Starbucks brand officially launched the new Starbucks premium instant coffee product (Starbucks At Home) for the first time in Vietnam This new product includes four typical Starbucks coffee flavors: Dark Roast, Caffè Mocha, Caffè Latte, Caramel Latte

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Determine the skills and knowledge that human resources in the company should adapt due to such changes of the company

Skills that Nestle employees need when the company is implementing new products such

as adaptability, communication, collaboration and teamwork, organization and work arrangement:

After the research departments of both Nestlé and Starbucks released the new instant coffee product, the staff of the production department needed to know about the formula and how to mass-produce this instant coffee product

The human resources department needs to ensure that the marketing department needs to have full knowledge about the product such as ingredients, processes, the novelty of the new coffee line Above all, it is to set up marketing strategies with customers through all online sales channels such as Lazada and large supermarket systems such as Topsmarket, CoopXtra, Coop Fineline, Aeon, Lotte, Emart, Winmart

The Human Resources Department works with the Finance Department to ensure that Nestlé has the necessary amount of cash for the business activities of the new product And make sure Nestlé is managing and using the funds as efficiently as possible to meet the full financial obligations of the newly launched product

Examine the methods that HRM department of the chosen company should carry out to help staff gain the skills and knowledge required above

Internal training: Both Nestlé and Starbucks should have internal training sessions or training sessions between 2 companies for product production staff with product research and development departments to learn ways to make new products The Marketing Departments

of Nestle and Starbucks also need to have a training course on product-specific information from which to have business strategies for target customers

Human Resources Department in conjunction with other departments:

- Create working sessions between the marketing departments of both companies: Should have discussions and work between employees to come up with the most effective strategies to optimize benefits for both businesses

- The human resources department coordinates with the finance department to control the finances, regularly comparing the actual financial situation against the financial statements And be responsible for evaluating and setting the operating budget of the new product Also outline a specific plan regarding the funds that need to be spent, providing specific guidance on how to spend these funds

Evaluate the strengths and weaknesses of the upper methods

Strengths

Internal training:

- Save on training costs and the cost of hiring trainers

- Training content is associated with real work: learners will quickly master the skills of performing the job

- Based on internal training programs, businesses can build a well-working team with highly specialized skills and mutual support From there, departments can also strengthen relationships, communicate and interact with each other more, work more effectively as a team, and create greater value

- The internal training program is implemented by the company itself, so it will help employees save time Employees can also take the initiative, and feel more comfortable and excited about the training program

Human Resources Department coordinates with other departments:

- Increase productivity, promote creative thinking about strategies, and improve motivation

- Help employees support each other and learn problem-solving skills

- Promptly detect material errors, promptly fix them, and promptly make adjustments From there, the company promptly has transparent financial statements, capturing the actual business situation to provide information to investors

- Help businesses review vulnerabilities in terms of internal controls, financial and accounting Based on that, enterprises promptly adjust, overcome and change the working process to reduce risks and errors, achieve better efficiency

Weaknesses

Internal training:

- Internal training can take place at an inopportune time that affects other unfinished business for employees

- Because it is internal training, so the employees do not learn more knowledge outside Human Resources Department coordinates with other departments:

- Disagreements between departments of 2 companies when working in groups

- Teamwork can produce uneven contributions A team member can be responsible for most of the work, and there are members who want to do the least amount of work and still get credit This can affect the unity and purpose of the group

- It takes time to control because the cash flow is constantly flowing

State the business objectives of the chosen company

Nestlé Vietnam has introduced two initiatives aimed at net-zero emissions targets by 2050 as well as Nestlé Vietnam's The initiative includes a circular economy model in coffee production and the pioneering replacement of 100% plastic straws with paper straws for ready-to-drink products using straws Particularly with the recirculating coffee production model, Nestlé contributes to reducing the average emission of 12,679 tons of CO2/ year and uses 100% of biomass energy from coffee grounds to replace 74.4% of fuel sources from DO oil as fuel to operate the boiler

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Review relevant HRM practices to recruit and retain staff to help the company gain the objectives

1 Financial compensation

1.1 Direct compensation

Salary

Nestlé's average salary ranges from about 9 million VND/per month for sellers, 10 million VND/per month for factory operators, 10 million VND per month for forklift drivers [ CITATION IND22 \l 2057 ]

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Bonus

Employees of Nestlé will receive the 13th, and 14th-month salary bonus and this award are usually awarded in December every year However, whether or not employees receive this reward depends on the time of their accession

In addition to year-end bonuses, employees at Nestlé also receive bonuses according to recognized business results That means that when employees do well, generating a lot of profits that help the company grow, the reward they receive will increase This is one of the effective ways to motivate employees and increase their dedication to the development of the company

1.2 Indirect compensation

Nestlé’s employees are paid: Health insurance, social insurance, and access to top health care benefits All NESTLÉ’s employees receive Generali health insurance (employees are examined and treated in high-end hospitals and clinics)

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 In addition, employees use the company's means of transportation

In addition to holidays and Tet, each Nestlé’s employee has the equivalent of 3 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 6 months

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2 Non-financial compensation

2.1 Health and wellness care

Every week Nestlé implements various initiatives such as wellness and organizing clubs that help people connect and live positively Every morning, they discuss how to protect employees' health and safety Every week Nestlé hosts a listening session on the thoughts and aspirations of its employees In addition, every year NESTLÉ organizes teambuilding activities and challenging sports activities such as Football Champion League

The company's facilities are fully designed, comfortable with open space with many utilities for employees

2.2 Career Opportunities

Every manager at NESTLÉ is asked to motivate and support employees to find ways to improve at work, constantly changing and innovating They always motivate individuals to look for opportunities to strive and learn, thereby developing their abilities as well as career paths

At Nestlé, there are specific training programs such as literacy for factory workers This program helps factory workers increase their productivity, maintain a positive working attitude, and argue confidently Nestlé offers Nestlé apprenticeship programs for students outside the company or training locally to meet high-quality human resources

2.3 Learn and share

Constantly learning is a prominent part of Nestlé's culture Each member regardless of the position needs to learn and improve their knowledge and skills constantly The spirit of learning is considered an indispensable condition if you want to work at NESTLÉ Each employee has the opportunity to improve themselves, and open up opportunities for development and promotion through continuous internal training programs and consistency with work goals

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Evaluate the upper HRM practices

1 Strengths

Financial compensation

Nestlé offers employees a dynamic salary and benefits system that competes with the market

in all aspects including salary, short-term or long-term bonuses, and social benefits According to statistics, 85% of the company's 2,300 employees are always satisfied with the salary and benefits policy they are enjoying

The value and trust that Nestlé brings to the people who work is the relationship between colleagues, recognition, and the ability to learn and grow when working for a global company

Non - Financial compensation

Working conditions

Nestlé cares about everyone who works inside or outside of a Nestlé facility Nestlé is committed to providing employees with good working conditions, a safe and healthy working environment

Nestlé values building relationships based on the trust and respect of employees at all levels Nestlé does not condone any form of harassment or discrimination At Nestlé, everyone has the same opportunities, regardless of origin, nationality, religion, ethnicity, gender or age Therefore, managers are committed to building and maintaining an environment of mutual trust Nestlé's employees are assured that their voices will be heard