Case Study: Evaluating HRM Practices at Nestle in International Mgt

This case study provides an overview of Nestle's Human Resource Management (HRM) practices within an international context. It assesses the company's recruitment and selection processes, training and development programs, and internal and external environmental factors influencing its HRM strategies. The analysis includes a SWOT and PESTLE analysis to evaluate Nestle's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental factors impacting its operations. The case study further explores Nestle's organizational culture, reward management systems, and employee relations, offering recommendations for attracting and retaining global talent. This document, contributed by a student, is available on Desklib, a platform offering AI-based study tools and resources for students.

International management

International management
Executive summary
In this report, the focus will be given on the HRM practices in which the discussion will be
made by considering the Nestle Company. To achieve success in the competitive environment it
is important to focus on internal and external environment so that goodwill can be maintained.
Also, in this the emphasis will be made on the organizational culture, employee relation and
reward management which are considered as one of the major attribute of the HRM practices.
So, in this paper the entire focus will be given on the HRM practices.
1

International management
Table of Contents
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................2
HRM practices.............................................................................................................................2
Task 2...............................................................................................................................................3
Internal environment of Nestle....................................................................................................3
External environment...................................................................................................................5
Task 3...............................................................................................................................................8
Organizational culture..................................................................................................................8
Reward management in talent management program..................................................................9
Employees relation and voice....................................................................................................10
Task 4.............................................................................................................................................10
Recommendations......................................................................................................................10
Task 5.............................................................................................................................................11
Conclusion.....................................................................................................................................11
References ....................................................................................................................................12
Introduction
The report emphasizes on the HRM issues of the Nestle Company. In the second phase of the
report, analysis will be made of the internal and external environment which considers the
2

International management
strategic aims of the company and also it focuses on managing the people in the workplace. In
the next part, the emphasis will be given on the HRM practices in which right HRM policies and
procedures will be taken into consideration. In the last phase of the report, recommendations
will be made which will help to attract and retain the global talent so that the company can
maintain its performance. In this the new approaches related to managing the human resource of
the workplace will be considered.
Task 1
HRM practices
It can be stated that Nestle consider various HRM practices that helps to manage the overall
activities of the company. The practices considered by Nestle are many and with these practices
there are many issues which take place in the workplace:
Recruitment and selection
In Nestle, it can be seen that the recruitment takes place by considering internal selection,
campus trainees and also lateral hires. In the process of recruitment the company collects the
application of the interested candidates and then proper analysis of the CV and background is
made according to the role profile. Then contact is made with the recruitment team in which
they inform the candidate. Then in the pre interview round the focus is given on written tests and
also group activities. Then in the interview round, the interview is made with the human resource
team by phone or through face to face interview (Li, 2015).
In the selection process, the offer letter is given to the candidate for joining the company. It can
be seen that in this the issue can take place related to appointing right candidate at right job.
Also, the knowledge of activities is one of the issues that can take place in the workplace. It is
necessary to resolve these issues so that company can assign the right activity to the right
candidate and also it will boost the overall operation of the company (Nestle, 2016 B).
Training and development
It can be stated that training and development is also the process on which Nestle company
focus. It is one of the effective concepts which help to maintain the overall competitive
3

International management
advantage. Through this, it can be easy to enhance the knowledge and skills of the employees.
Training helps to enhance the overall efficiency of the employees in the workplace. Also, the
development of the skills takes place which has impacted the overall activities of the company
(Allal-Chérif and Bidan, 2017).
In this the issue related to the time consumption can take place and also it is also related with the
overall expense of the company. It can be seen that the problem related to high expense take
place which is necessary to be controlled. It also impacts the strategic aim of the company in the
competitive market. This issue should be reduced so that it can be simple for the employees to
give their best towards the overall activities of the company in the competitive market. In 2017,
the company has the main objective related to offering courses in international training center
and also through e learning which is offered to employees (Nestle, 2018 C).
Task 2
Internal environment of Nestle
SWOT ANALYSIS
Strength
The strength related to the company is good image in the international market. It can be stated
that the strength which is possessed by the company is related with the image. The company has
good image on the international platform which has also enhanced the market share. It can be
seen that due to this company attained the competitive advantage and also achieved success in
the market. Also, the company has the aim to achieve large market share which is only done with
the help of proper management of the people and HRM. Due to efficient employees, the
company is able to manage the entire activities which have also impacted the overall growth in
the competitive market. So, the strength of the company is related with goodwill and also the
large number of the employees in the company (Nestle, 2018 C).
4

International management
(Source: Nestle, 2018 B).
Weakness
One of the weaknesses which are possessed by the company is related with various brands under
the same group. So, it creates difficulty for the company to manage the individual brands and
also it enhances the overall conflicts of the company. In reference to the company there are many
legal and consumer problems that exist in the market. The controversies are also related with the
company which impacted the overall image of the company in the competitive market. One of
the controversies is related with baby formula boycott which has directly impacted the overall
brand image of the company. So, it is necessary to reduce this weakness as it also impacts the
overall performance of the employees in the competitive market. It is necessary to manage the
overall activities of the management so that it can be easy to achieve positive outcome in a
proper manner (Ramesh, 2018).
Threats
The threat faced by the company is related with change in technology. The change in technology
is one of the major threats which affect the overall growth of the company. It also impacts the
5

International management
overall process of the company. It can be noted that one of the major threat faced by Nestle
Company is related to high competition level. In the market, there are many companies who are
offering same products in the competitive market and this has impacted the overall profits. So,
through this it can be stated that the company has to face difficulty in enhancing the market share
in the competitive market. It is important for the company to focus on training the employees as
it can impact the productivity level. If the productivity level decreases then it can be difficult to
maintain the overall efficiency of the employees in the workplace and also the growth will not be
achieved (Pai, 2018).
Opportunities
The company has the opportunity to reach to the customers and it is also important to expand its
operations so that goals can be attained. Nestle can also consider the operations by considering
the proper distribution channel. Through proper distribution channel it can be simple to achieve
objectives and also it will help to enhance the operations in the competitive market. The
opportunity can be grabbed if there is proper workforce who emphasizes on the overall
operations. So, the company should also consider the benefit that can enhance the investments in
the startups and it can also help to fulfill the demand of the customers and will focus on
increasing the sales.
External environment
PESTLE ANALYSIS
Political factor
It can be analyzed that the company is managing the activities in a diversified community and
there are various changes in the overall policies and procedures. There are also many products
which are offered to the company but due to various rules and regulations it is not offered in
many countries. The company has also shown the stability in countries’ economies like China
and India. Nestle has to consider various political changes in the developing countries as it can
help in managing the activities in an effective manner. Also, the overall operations of the
company are also impacted by the risk that takes place due to instability in the government
policies. The overall rules and regulations also impact the strategic aim of the company which
directly affects the overall management of the people in the competitive market (Nestle, 2018).
6

International management
Economic factor
It can be stated that the company has also focused on a network of research and development at
the time of introducing the products and services in the market. Due to the changes in the
economic policies of the countries, the company has to suffer from the issues related to
supplying of the products to the customers. It has been analyzed that customers are also impacted
due to the change in the inflation and also with the economic growth. Also, it is important to
promote the economic worth of the farmers by focusing on increasing the overall customer
satisfaction of the customers.
(Source: Nestle , 2018 B).
Social factor
It can be analyzed that the overall operations of the company are influenced by the thoughts and
beliefs of the customers. The activities of the company are affected because of the lifestyle and
7

International management
culture which is not followed by the company. In the present scenario, people focus on
maintaining their health and they are focusing on consuming the quality products. So, to
maintain the quality of the products the company focus on producing the products and services
locally and also it has helped to maintain the overall quality in the competitive market
(Rezaeegiglo et al., 2014).
Technological factor
Technology is also one of the factors which is necessary to be considered. With the help of latest
technologies it has been seen that the company is emphasizing on maintaining the overall
database by taking into consideration the latest technologies. Social media has also reduced the
gap between the customers and company which has given positive affect on the overall activities
of the company. Nestle take into consideration the latest technology so that it can be simple to
maintain the overall standards on the global platform (Mount and Martinez, 2014).
Legal factors
The company has to face the issue related to labor laws in which the emphasis is given on
minimum wages that are set by considering the provision of laws. It can be evaluated that
organization has to focus on considering the laws as the overall assets of the company. The
company has to consider the foreign trade regulations so that products can be offered to the other
countries. In this law, food and beverages are offered to the customers on the international and
domestic level which emphasizes on the rules and regulations of the transportation products. It is
important for the company to emphasize on the global regulations so that on the international
platform the changes can be made. It can be stated that there are various countries which focus
on making changes in the operations so that it can be easy to deliver the products to the
customers by considering the overall framework of rules and regulations (Galalae and George,
2017).
Environmental factors
In the present scenario, it is important to clean the environment. So, the company also considers
the rules and regulations so that it can be easy to produce healthy food by focusing on the overall
operations which are environment friendly. It is important to maintain the environment so that it
8

International management
can be easy for the company to maintain their goodwill in the competitive market. It can be
stated that in this HRM activities plays an important role in managing the overall activities of the
company and also it positively impacts the overall operations of the company (Wilburn and
Wilburn, 2015).
(Source: Nestle, 2018 B).
Task 3
Organizational culture
There are various elements of HRM practice. There are various practices of HRM that can
impact the routine activities of the company in the competitive market. One of the HRM practice
is related to organizational culture which is considered as one of the important factors that can
help to maintain the overall activities of the company. If the culture of the organization is not
good or positive then it is not possible to achieve positive outcome from the activities which are
completed by the employees (Leary and Baumeister, 2017).
9

International management
In reference to the Nestle company, it can be seen that it has the main aim to maintain the
positive culture in the competitive market. The company maintains positive culture and due to
this the positive impact can be seen on the entire activities. The level of competition is so high
that it is necessary for the top management to emphasize on maintaining the culture. In Nestle,
the employees are free to share their views and opinions with the top management and this is
considered as one of the positive factors through which the company can attain growth and
success. Through positive organizational culture it can be analyzed that employees feel
motivated and happy which can help in attaining the overall success in the competitive market
(Huhtala et al., 2015).
So, it is necessary for the company to fulfill the need of the employees and this can be done
when focus is given on the Maslow hierarchy of needs which can help to motivate the employees
and also focus on creating positive culture in the competitive market. In Maslow hierarchy of
needs there are five stages. The first one is related with physiological needs in which it is
important to focus on the basic needs so that it can be easy to achieve growth in the market. The
next is related to safety need in which the employees should feel secure in relation to their job as
through this they will be able to give their best towards the organizational goals and objectives.
Belonginess and love needs is the one in which the relation of the employees should be made so
that positive outcome can be attained. Esteem needs are also the one in which the emphasis is
given on the prestige and feeling of accomplishment. The last is self-actualization need which
focuses on the attaining the overall potential and this can impact the overall activities of the
company in the competitive market (Fallatah and Syed, 2018). (Ramesh, 2018).
Reward management in talent management program
It has been analyzed that it is necessary to maintain the reward system of the employees so that
they can give their best towards the activities. The company has the reward system in which the
employees earn more incentives when they perform best. So, it can be stated that these are one of
the important and best practice which is considered by the company as it can help in managing
the overall goals and objectives of the company. In this it is necessary for the top management to
make the policies and procedures so that rewards can be earned by the employees. Through this
HRM practice it can be easy for the company to manage the talent in the competitive market as it
helps in enhancing the skills of the employees in the workplace (Nestle, 2018 A).
10

International management
It can be stated that traditional approach towards human resource management emphasizes on
maintaining the policies, procedures and contracts which focuses on the employee performance
and also on attaining the goals of the employees. So, in this reference it can be seen that salaried
model of human resource management traditional approach can also be applicable for the white-
collar jobs who have the rigid terms of employment and are also stated for the job description.
Also, in this concept it defines the work structure in relation to the overall responsibilities which
are given by the management (Lepper and Greene, 2015).
Employees relation and voice
This is also one of the important HR practice in which it is necessary for the top management to
focus on maintaining the employee relations. It can be analyzed that in Nestle the employees
have proper relations which helps in maximizing the overall level of productivity in the
workplace. The relation of the employee is important to be maintained as it can help in attaining
growth. In this, the emphasis is also given on monitoring and supervising the employees by
considering the rules and policies of the company in a proper manner. So, the HR traditional
approach should be considered as through this it can be simple to attain growth in the market.
Task 4
Recommendations
So, by analyzing it has been recommended for the company human resource activities are
considered as one of the best practices that can help to attain success in the competitive market.
To attract and retain the global talent it is necessary to emphasize on maintaining the cultural
differences so that employees can feel comfortable and happy at the time of doing the activities
of the company. Also, one of the best approaches that should be considered by the company is
related to motivation. The company should focus on retaining the employees by giving
motivation. Motivation in the workplace can only be done when they offer proper rewards to the
employees. At the time of performance appraisal, the employees should be appraised by seeing
the performance so that positive outcome can be attained in the competitive market. The next
method is also related with the feedback process. The employees should be set free to share their
views and opinions and this process can help the employees in attracting and retaining the talent
in the workplace for long time.
11

International management
The leaders of the company should emphasize on baby boomers and Z generation. If they have
proper record then it can be simple to recruit and retain the employees in the workplace. When
in the workplace if more baby boomers are retiring and more generation Z is recruited then in
this case it is necessary to focus on human resource practices. The company should also focus on
making the policies which will help in attracting and recruiting the employees. The generation Z,
will also adapt to the changes which are made by the company. So, these are recommendations
that should be considered to achieve success in the competitive market.
Task 5
Conclusion
It can be concluded that it is important to consider the right HRM practices as it can help in
achieving success in the competitive market. Proper training and development should be
considered so that employee’s skills can be maximized and they can give their best towards the
organization. At last it can be stated that company should emphasize on maintaining the
organizational culture so that it can be easy to motivate the employees to give their best towards
the organizational activities. HRM practices plays an important role in accomplishing the overall
goals and objectives of the company in the competitive market and without the HRM practices it
will not be able to maintain its goodwill in the market.
12

International management
References
Allal-Chérif, O. and Bidan, M., 2017. Collaborative open training with serious games: Relations,
culture, knowledge, innovation, and desire. Journal of Innovation & Knowledge, 2(1), pp.31-38.
Fallatah, R.H.M. and Syed, J., 2018. A Critical Review of Maslow’s Hierarchy of Needs.
In Employee Motivation in Saudi Arabia (pp. 19-59). Palgrave Macmillan, Cham.
Galalae, C. and George, S., 2017. Case Study 1: Nestle in Mexico: The Good Food Versus The
Good Life Dilemma. In Strategic Marketing Cases in Emerging Markets (pp. 1-10). Springer,
Cham.
Huhtala, M., Tolvanen, A., Mauno, S. and Feldt, T., 2015. The associations between ethical
organizational culture, burnout, and engagement: A multilevel study. Journal of Business and
Psychology, 30(2), pp.399-414.
Leary, M.R. and Baumeister, R.F., 2017. The need to belong: Desire for interpersonal
attachments as a fundamental human motivation. In Interpersonal Development (pp. 57-89).
Routledge.
Lepper, M.R. and Greene, D. eds., 2015. The hidden costs of reward: New perspectives on the
psychology of human motivation. Psychology Press.
Li, T., 2015. Nestle Employee Recruitment Research. International Journal of Business and
Social Science, 6(4),pp.38.
Mount, M. and Martinez, M.G., 2014. Social media: A tool for open innovation. California
Management Review, 56(4), pp.124-143.
Nestle, M., 2016. Corporate funding of food and nutrition research: science or marketing?. JAMA
Internal Medicine, 176(1), pp.13-14.
13

International management
Nestle. 2018a. Benefit and perks. [Online] Available from: https://jobs.nestle.com/en/benefits-
perks [Accessed on 22th November 2018].
Nestle. 2018b. Overview. [Online] Available from: https://www.nestle.com/investors/overview
[Accessed on 22th November 2018].
Nestle. 2018c. Providing training to our people. [Online] Available from:
https://www.nestle.com/csv/impact/employment-diversity/training [Accessed on 22th November
2018].
Pai, V.S., 2018. Challenges MNCs Face in Emerging Markets: The Nestlé
Experience. Vision, 22(2), pp.222-231.
Ramesh, R., 2018. Case Analysis III: Challenges MNCs Face in Emerging Markets: The Nestlé
Experience. Vision, 22(2), pp.237-238.
Rezaeegiglo, R., Sadouni, A., Aref, F., Khotbesara, P. and Eslam, N., 2014. Review and Rating
factors affecting the Deployment of (CRM) Customer Relationship Management at Nestle
Company. International Journal of Academic Research in Business and Social Sciences, 4(1),
p.539.
Wilburn, K. and Wilburn, R., 2015. Social purpose in a social media world. Journal of Global
Responsibility, 6(2), pp.163-177.
14