Benefits of HRM Practices for Employee and Employer - Nestle

This article discusses the benefits of different HRM practices within Nestle for both the employer and employee. It covers topics such as recruitment, training, performance management, job design, and more.

Human Resource
Management

Table of Contents
1) INTRODUCTION.......................................................................................................................5
2) Purpose and Functions of HRM..................................................................................................5
a. Talent Acquisition:.............................................................................................................5
b. People development:..........................................................................................................6
c.Rewards:..............................................................................................................................6
d. Learning, training and engagement:...................................................................................6
e. Administrative support:......................................................................................................7
3) The strengths and weaknesses of different approaches of recruitment and selection................8
a. Recruitment -......................................................................................................................8
b. Selection -...........................................................................................................................9
4) The benefits of different HRM practices within a company for both the employer and
employee—......................................................................................................................................9
a. Recruitment:.....................................................................................................................10
b. Training-...........................................................................................................................10
c. Performance Management-...............................................................................................10
d. Job Design-.......................................................................................................................11
Benefits of HRM practices for employee and employer both..............................................12
5) Effectiveness of HRM practices in terms of organisational profit and productivity.................14
a. Human resource partnership:............................................................................................14
b. Nestle continuous excellence:..........................................................................................15
c. Leadership development:..................................................................................................15
d. Goal alignment:................................................................................................................16
CONCLUSION..............................................................................................................................17
REFERNCES.................................................................................................................................18

1) INTRODUCTION
Human resource management is a basic function of every organisation that is helping in
achievement of various laid down objectives (HUO. and WANG, 2016). Present report is based
on Nestle that is an organization giving major focus on human resource and its functioning. They
have hired employees from different cultural backgrounds and are helping in achievement of
overall objectives in a more effective manner.
2) Purpose and Functions of HRM
Human resource management is a basic function that is helping in success of the
organisation.
Purpose of HRM: The human resource department in Nestle has the responsibility of sustainable
growth and success of company. It is a most important function. The more is the retention period
there is more employee commitment level (Johnson, ., Lukaszewski. and Stone, 2016). It further
helps in more success. There is a core cultural values that are helping n development of a
professional attitude of employees it is a criteria that is used for recruitment of potential
employees and training them, catering to their problems so that all their needs are taken acre by
human resource managers.
It is basically an art that is providing employees a better culture of work, safe working
environment and also job security as it leads to a edge over other competitors. In Bangladesh,
nestle has to build up a professional relationship so that they make sure that there daily
functioning is not getting impacted (Joo, ., Kong, . and Atwater, 2018). The employees do not
face any type of discrimination. Human resource department also help in solving all the issue
that are faced by employee’s so that there is full justice that is done to them. There is also aim to
build up a decentralised model that has less range of business control and helps in retention of
employees for a longer duration of time making it a better place to work.
a. Talent Acquisition:
For the recruitment team of Nestle that is their human resource department they are
working under the name “Talent Acquisition team”. Major role is to take care of the recruitment
process of the organisation, providing them various internship opportunities are some of the
basic functions. While the company is willing to fill up the vacant positions they ask managers

about their requirements and then look for various social contacts, online job agencies and finally
a sourcing method is selected. It helps in selection of best talent in their organisation.
b. People development:
In every organisation there is a requirement to have a developed working environment so
that employees are given opportunities for more skill learning (Lu, 2018). There is a need for a
development of a department so that people can work up to their full potential. It is the
department that basically aims to provide employee’s with opportunities for their overall skill
development and enhancement. Employees are provided with timely feedback and also
suggestions from their superiors that they can work on those areas where they need to and helps
in overall grooming of an individual (Marler, and Parry, 2016).. Overall atmosphere of the
company is helping an employee to share their ideas. All such efforts lade to low employee
turnover and also making plans regarding development of policies of incentives and appraisal to
their workforce.
c. Rewards:
In a company there is requirement of a well designed structure of compensation. There must
be full transparency as organisation is willing to have internal fairness and evaluation that is
unbiased nature for their workers. There are different types of surveys have been taken up by a
company so that there is fair payroll policies and also result of surveys are compared with all
records of other organizations. It will help in changing and correction of policies where the
organisation might be lacking that can help in enhancement of satisfaction level of their
employees.
d. Learning, training and engagement:
It is related with three elements that is helping management of an organisation. It is
concerned with designing of training programs for more understanding of what are some if the
nourishing skills of employees (Mertensand Wilson, 2018). In case of a new recruitment is made
in Nestle in Bangladesh it is in concern with manager has to keep and maintain all records of
their newly hired candidates and report it on periodic time to the talent hunt management team of
this organisation.

e. Administrative support:
In Nestle, there is administration of managers that consist of various teams that is looking
for various functions of employees and helping them in achievement if various objectives in a
given period of time. The administrative managers & teams are concern with the HR department
and they have to perfume various functions such as regulations, documentation and performance
of employees according to the labour code of Bangladesh. There are other departments such as
floor administration (Nolan,. and Garavan, 2016). Vehicle administration, cafeteria, supervision
CARE audit and kitchen administration etc. All these are specialised administrative department
who have to perform certain specially assigned responsibilities by the human resource
management departments.
Above discussed are some of the important functions of human resource department of
Nestle that is helping them in achievement laid objectives in given course of time period.

3) The strengths and weaknesses of different approaches of recruitment and
selection.
a. Recruitment -
Recruiting is the discovering of potential applicant for actual or anticipate organisational
vacancies. Recruiting make it possible to acquire the number and types of people necessary to
the continued operation of the organization. In simple terms recruitment applies to the process of
attracting potential employees to the company or organisation. It is a systematic means of the
finding and inducing available candidates to apply to enterprise for employment. Recruitment is
said to be a positive process because its approach as it seeks to attract as many candidates as
possible. The employee recruitment process is one of the critical aspects of running a successful
business. Because every organisation’s performance is largely depend on the quality of its works,
those that do an effective job of managing various functions are clearly better for it. So, training
and incentive supervision can transform some undesirable employees, recruiting individuals who
are already capable and enthusiastic is clearly preferable. The Nestle Company recruit those
candidates who consider and respect the values of the company. Company recruitment process
builds and maintain the image of the company in the market also increase the growth and
productivity.
Strengths
 This process can save a large amount of time, energy, and aggravating by placing the
right person in the right position.
 This is the important process for every organisation as it determines the present and
future requirements of the organization in conjunction with the personal planning and job
analysis activities.
 One of the strengths of recruitment is increases organizational and individual
effectiveness in the short as well as long term. It evaluates the effectiveness of various
recruiting techniques and sources for all types of job applicants.
Weaknesses
 Internal source of recruitment offers limited choices to the managers of the candidates as
compare to the external source.

 External source of recruitment is the more costly and time-consuming process also affects
the moral of current employees.
 This process not efficient in attracting capable and right candidates for the position.
b. Selection -
Selection is the process of examining the applicants with regards to their
suitability for the given jobs and choosing the best from the suitable candidates and
rejecting the others. Thus, selection is the negative process in its application as it seeks to
eliminate as many unqualified applicants as possible in identify the right candidates. The
Nestle selection process includes situational test, numerical test, aptitude test, along with
telephonic and video interview round. After candidate qualified the test round then they
called for the assessment day at the centres.
 The assessment includes testing the strength of the candidate through interview.
 Testing candidate writing skills by giving them a situational condition and also judge the
decision making skills.
 The assessment test helps the manager in deciding the role of employees according to
their ability, capability and potential.
The assessment test is conducted to get the idea about how a candidate will perform in
different-different business situation and conditions. After executing the assessment process
candidate are shortlisted and offered a position in the company.
4) The benefits of different HRM practices within a company for both the
employer and employee—
To maintain and manage the employees, skills, and knowledge Nestle develop a
systematic human resource practices in the organization the human resource technique
followed by the Nestle help to get a right person at a right place. The human resource
development manages the task and the activity of workforce also encourages them to retain
with the company for long run.

a. Recruitment:
Recruitment process of Nestle is as following
The Nestle Company focus on loyalty, honesty and reliability, integrity, practicality. Nestle
match the working culture of company with the candidate's values. The recruitment process is
done at the head office and remain other process is done at branch level. Many features are
examined at the higher official are encouraged according to their performance so there is no
sideways recruitment (Sehrawat,. and Pillai,2019). Company also organised recruitment camps
in colleges.
Nestle human resource policy. To maintain better human resource management in the Nestle
Group these policies are maintained.
Nestle people development review- this policy consist, Nestle culture, values, ethics, various
training program and employees’ life after work (Stewart, and Brown, 2019). Company analyse
and evaluate each candidate separately opposed to job profile and the details company collected
from the job briefing. The evaluation and analysis process of candidate should start just after the
interview or the assessment completes.
b. Training-
Training is the ongoing process of the Nestle. Every employee has to undergo with the
training process, this process utilising a systematic and organised procedure by which non-
managerial personal acquire technical knowledge and skills for the definite purpose.
Nestle provide following training functions-
-Local training program, this program include technical problems faced by the employees,
changes in the environment of the business (Stovall, and Neill, 2017. ).
-Company also teach their employees that how to handle new technology and changing
perspective of the customers, this include in company’s Literacy training program.
c. Performance Management-
At Nestle, the performances of the candidates are analysed to know the abilities and the
Potential of their employees.

 The human resource manager as well as the line manager of the company evaluates
the performance of the employees at all level.
 Senior managers maintain good relations with their subordinates and also give them
chance to ask the questions.
 Some important key performance indicators listed by the HR department.
d. Job Design-
Job design refers to the tasks, activities, responsibilities, roles, methods required to
perform a job. This process includes various tests written tests, interview and group discussion.
Thus it is very benefiting for the company in the long run (Watson, and Abzug2016).
Pay structure:
 Provide various benefits to employees like Pension and Retirement schemes.
 Employees get fair remuneration which is more than market standards.
 Provide good standard of living after the retirement.
 Nestle idea award- this is special category award by the company which give to the
employees who shows good performance and give innovative ideas to the company.
Benefits-
To meet the needs of the employees ‘company, provide benefits, Nestle provide following
benefits to their workforce.
 Children Education Assistance Scheme
 Provident fund
 Retirement Gratuity Scheme
 Group Insurance & Accidental Insurance Scheme
 Conveyance Reimbursements
 Residential Accommodation
Employee Relation –
Nestle maintain good relation with their employees. Company organized annual events in the
company in which all relatives of employees are invited by the company (World Health
Organization, 2016). They also taught work life balancing techniques to the employees.
Safety and Health

Company also take care of the safety and security of the employees. Company provide
safe and healthy working environment to the employees ( Guest, ., 2017).
Benefits of HRM practices for employee and employer both
Human Resource Management is a basic function that is part of every organisation. It
consists of various functions such as planning, recruitment and selection. It also includes training
of employees so that overall goals can be achieved. Human resource department is also concern
with management of human resource for overall achievement of organisational goals
Basis Benefits of HRM practices to
Nestle
Benefits of HRM practices to
the employees
Recruitment Recruitment practise of Nestle is
so strict that there is always hiring
of best candidate according to
their present level of
qualifications and skills (Delery.
and Gupta, 2016.). It helps the
organisation in having bets
workforce which can contribute
up to the maximum for
achievement of their overall
objectives.
When new recruitment re
made it is for employees
having very high potential so
employees get work according
to their skills that leads to best
utilisation of their competence.
For existing employees also it
results into reduction of high
work pressure as it gets shared
with the new employees.
Training and
Development
Training is a continuous program
that is very helpful in increasing
the efficiency of employees. It
helps organisation in making
employees proved the
opportunities to learn those skills
where they are lacking. There are
different types of training
For employees if their
employers are providing them
more opportunities of growth
and development of their
overall skill it leads to higher
growth opportunities from
future prospective. It also
results into career growth of

programmes such as local training
programmes, Apprenticeship
programmes and literacy training
camps so that they can help in
complete training of employees.
such employees.
Job design Job design is also a function that
is performed by human resource
department in nestle that is
helping in breaking down of the
work according to specific
responsibilities that has to be
performed by a employee hired
for that particular position. It
results into a clear assignment of
responsibilities to a specific
individual and brings clarity for
employer.
Job design is also very
beneficial for employees as
they have a complete clear
picture of what are the actual
works they have to do in order
to complete their assigned job
responsibilities. It leads to less
doubts and conflicts that can
arise for a employee regarding
their overall roles and course
of daily work.
Performance
management
In Nestle, performance of
employees is assed according to
their tales and capabilities. It helps
HR managers in making a review
of overall competency of their
employees. When timely
performance is managed it leads
to senior management giving
more opportunities to subordinates
about different key indicators
where they are not having a
satisfactory level of performance.
When performance is properly
managed in an organisation by
the top authorities and rewards
are being provided to
employees for their high level
of performance then it results
into increasing the satisfaction
level of employees.

5) Effectiveness of HRM practices in terms of organisational profit and
productivity
Human resources are a basic function in every organisation and it is helping and
facilitating for having more smoothness in their functioning. In case of Nestle, there is a strong
human resource management is having an impact on increasing the profitability of this
organisation (Collings, Wood. and Szamosi, 2018). It is also helping in increasing the
facilitation process of growth and utilisation of human resources in a more effective manner. It
can be said that there are some human resource practises that are helping in achievement of
overall goals as discussed below:
a. Human resource partnership:
In Nestle there is a human resource department that is helping in establishment if a strong
connection between other departments. All such departments are acting as a team player and
helping in attainment of success at more repaid speed. It has made resource department function
more efficiently & effectively. It is a department that has also helped employees in catering to
the needs in the given time frame (Carbery. and Cross, 2018). It can be said that it is a customer
unit and having expertise in this field that is helping people in their organisation in increasing
their performance level and the productivity of the overall human resource that is part of their
organisation.
Human resource at factory:
There are different types of process that can be used by a human resource
department that consist of functions such as recruitment, training and other essential
activities. It helps in establishment of a connection between the team management and

the head office. It helps on consulting on case of numerous decisions that have to be
made in the course of functioning of Nestle.
b. Nestle continuous excellence:
In order to maintain the present earning capacity of Nestle it is very necessary to
focus on their overall growth rate fort achievement of their laid objectives. This
company has developed some of the policies that basically consist of three basic
elements such as:
Compliance: It is one of the dominant features that help in talking right decision for doing right
things. Such type of activities helps in improvement of the overall working conditions for
employees (Brewster, 2017). As, there can be timely implementation of legislations and all rules
that has to be followed by both employers & employees. Various other functions such as
production and conduct are also a part of this function.
c. Leadership development:
It is in concern with the habit of excellence that is in companies and can be achieved in
case of quality leadership (Bratton, and Gold, 2017). It is very helpful in effective use of
leadership that can help in increasing the rate of growth for both employees and employers.
There is training that is given in Nestle with regards to improvements and more sustainable
environment. It also results into high performance. Further there is also a learning environment
that is created for development of work related opportunities.
Nestle Leadership framework: NLF is related to a major element that is helping
in fostering growth. NLF has been designed that consist of the basic office work and
culture, planning that is the foundation of different policies in an organisation. NLF has
“6 Drivers of success” that is acting as a present & future of Netsle. NLF is also helping
organisation in attracting, guiding and evolving the whole workforce in Nestle.
d. Goal alignment:
In Nestle, there is proper alignment of various plans & policies that is helping
this organisation in timely achievement of their laid down vision, mission and objectives.
There are various human assets in Nestle that is helping in solving various problems
according to the global alignment policy. The overall objective of the goal alignment is

also to make policies and bring positive results out of efficiency and effectiveness in an
organisation. Goal alignment is very helpful in an organisation to make employees
answer some questions such as what they are actually doing. Which measures are telling
about it and of there are some issues associated with it. All such questions can be
answered by use of such HRM practises.

CONCLUSION
It can be said from above discussed points that human resource is a very important function
of every organisation. There are some basic purpose for which human resource department so
designed such as most essential is recruitment & selection of talented employees. Further there
are certain benefits of such human resource practices for both employers and employees. Further
there are some of the hrm practises that result into increasing effectiveness in whole functioning
of an organisation.
RECOMMENDATION
It is being recommended from above discussion that Nestle is a global brand has all practises
of human resource and it has helped them in attainment of their laid down objectives. There has
been a complete process that is being followed while making each recruitment by Nestle but
there can be use of other approaches such as employment exchanges, visiting some college
campuses as a means of external recruitment so that talented and potential employees can be
selected in the company. External source of recruitment is a must be most preferred source of
recruitment that can be used by Nestle in order to fulfil their human resource recruitment.

REFERNCES
Books & Journal
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C., 2017. The integration of human resource management and corporate strategy.
In Policy and practice in European human resource management (pp. 22-35).
Routledge.
Carbery, R. and Cross, C. eds., 2018. Human resource management. Macmillan International
Higher Education.
Collings, D.G., Wood, G.T. and Szamosi, L.T., 2018. Human resource management: A critical
approach. In Human resource management (pp. 1-23). Routledge.
Delery, J. and Gupta, N., 2016. Human resource management practices and organizational
effectiveness: internal fit matters. Journal of Organizational Effectiveness: People and
Performance.
Guest, D.E., 2017. Human resource management and employee well‐being: Towards a new
analytic framework. Human Resource Management Journal, 27(1), pp.22-38.
HUO, Y.F. and WANG, R.W., 2016. Research on the Structure Dimensions of Supportive
Human Resource Practice in the Context of China. Journal of Tianjin University of
Commerce, (2), p.8.
Johnson, R.D., Lukaszewski, K.M. and Stone, D.L., 2016. Introduction to the special issue on
human resource information systems and human computer interaction. AIS Transactions
on Human-Computer Interaction, 8(4), pp.149-159.
Joo, M.K., Kong, D. and Atwater, L., 2018, July. Workforce gender diversity, human resource
practices, and organizational outcomes. In Academy of Management Proceedings (Vol.
2018, No. 1, p. 17603). Briarcliff Manor, NY 10510: Academy of Management.
Lu, Q., 2018, August. The Impact of Inclusive Human Resource Practices on Individual
Creativity: The Role of Job Crafting and Transformational Leadership. In 8th
International Conference on Education, Management, Information and Management
Society (EMIM 2018). Atlantis Press.
Marler, J.H. and Parry, E., 2016. Human resource management, strategic involvement and e-
HRM technology. The International Journal of Human Resource Management, 27(19),
pp.2233-2253.
Mertens, D.M. and Wilson, A.T., 2018. Program evaluation theory and practice. Guilford
Publications.
Nolan, C.T. and Garavan, T.N., 2016. Human resource development in SMEs: a systematic
review of the literature. International Journal of Management Reviews, 18(1), pp.85-
107.
Sehrawat, P. and Pillai, R., 2019. Implications for human resource management practice: using a
neuroscientific lens. Development and Learning in Organizations: An International
Journal.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.
Stovall, O.S. and Neill, J.D., 2017. The ethical implications of human resource
accounting. Journal of Accounting, Ethics and Public Policy, 18(2).

Watson, M.R. and Abzug, R., 2016. Effective human resource management. The Jossey-Bass
handbook of nonprofit leadership and management, pp.597-638.
World Health Organization, 2016. Global strategy on human resources for health: workforce
2030.