Hrm Practices at Nestle

Topics: Human resource management, Management, Employment Pages: 10 (2674 words) Published: October 9, 2010

Q.1 : The Key pillars of Nestles strategy include being recognised as preferred corporate citizen, preferred employer, and preferred supplier of preferred product.

Based on this strategy of being organisation of choice,analyse how Nestle is able to integrate and align their HRM practices with overall business strategy.

Introduction :

According to Webster's New World Dictionary, strategy is "the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy" (Guralnic, 1986). The origination of word “strategy” is from military background however it is very much relevant in today’s business world. Any organisation needs to have well structured planning and implantation process to survive and keep well ahead of competitors. It is a known fact that the HRM practices has major influential role in managing a business successfully. Alignment of Human resources management practices implies integrating decisions concerning employees with decisions regarding the outcomes a business is attempting to reach the objective of the company in relations to its business targets.

Nestlé S.A. is the largest nutrition and foods company in the world,[2] founded and headquartered in Vevey, Switzerland. Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, which was established in 1866 by brothers George Page and Charles Page, and the Farine Lactée Henri Nestlé Company, which was founded in 1866 by Henri Nestlé. Several of Nestlé's brands are globally renowned, which has made the company a global market leader in many product lines, including milk, chocolate, confectionery, bottled water & pet food. (from Nestle website)

Key pillars of Nestle’s business strategy, to recognized as preferred corporate citizen, preferred employer and preferred supplier of preferred product is an amalgam of Nestle’s business objective and its core values.

Nestlé's business objective is to be the world's largest and best branded food manufacturer, whilst ensuring that the Nestlé name is synonymous with products of the highest quality, at the same time being recognized as preferred corporate citizen by maintaining high standard of business ethics, working as part of community, protecting environment and by engaging in fair trade & business practice and fair workplace relation.

Nestlé believes to be a human centric company providing a response to individual human needs throughout the world with specific concern for the wellbeing of both its consumers and its employees. This is reflected in its attitude and its sense of responsibility towards people and community as whole. Though Nestle aims to increase sales and profits but, at the same time, it concentrates on raising the standard of living and improving quality of life for everyone. Nestlé strongly believes that people are the most important asset of the company who provide strength and nothing can be achieved without their commitment and their energy. This is where HRM plays an important role through aligning and integrating it practices to implement successfully the strategy and achieving organisational strategic goals.

An organisation has verity of structural forms and organizational processes to choose from when implementing a given strategy, an these choices make an economical difference. (Neo etc page 78 – 24).

The variables that determine the success in Strategy implementation are : - Organisational Structure
- Task Design
- Selection, training and development of people
- Reward system
- Type of Information and information system.

Three (task, people and reward) of the above five implementation variables are primary responsibility of HRM and HRM can directly affect the remaining two variables. Hence integration and alignment of Business Strategy with HRM Functions are outmost important for achieving organizational...
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