Analysis of Human Resource Management in Nestle

The report analyses the employee engagement strategies implemented by Nestle, drivers of employee engagement, challenges faced and recommendations to improve business performance. The report discusses the employee relations based policies that have been implemented by Nestle in different countries. The major drivers of the employee engagement activities of Nestle have been analysed as well. The report also helps in discussing the issues that have been faced by Nestle related to employee engagement and employee relations. The recommendations are provided based on the ways by which Nestle can further improve the engagement of employees in the organizational processes.

Running head: ANALYSIS OF HUMAN RESOURCE MANAGEMENT
ANALYSIS OF HUMAN RESOURCE MANAGEMENT
Name of the Student
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Author Note

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ANALYSIS OF HUMAN RESOURCE MANAGEMENT
Executive Summary
The report is based on the analysis of the employee engagement strategies that have been
implemented by a multinational organization named Nestle. The company has its operations
in the food industry. The employee relations based policies that have been implemented by
Nestle in different countries has been discussed in the report. The major drivers of the
employee engagement activities of Nestle has been analysed as well. The report also helps in
discussing the issues that have been faced by Nestle related to employee engagement and
employee relations. The recommendations are provided based on the ways by which Nestle
can further improve the engagement of employees in the organizational processes.

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Table of Contents
1.Introduction.................................................................................................................3
2.(a) Employee engagement and employee relations in Nestle.....................................3
2.(b) Drivers of employee engagement and relations in Nestle.....................................5
2.(c) Process of managing employee relationship which can challenge Nestle.............6
2.(d) Engagement strategy that can be considered for addressing challenges...............6
2.(e)Engagement strategy to improve business performance in the long term..............7
3. Conclusion and recommendations.............................................................................8
References......................................................................................................................9

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1.Introduction
Nestle is a Swiss transnational drink and food based brand which has its headquarters
in Vevey, Vaud, Switzerland. The company has acquired the position of the largest food
producer in the world. The rank that is held by Nestle in the Fortune Global 500 list is 64 and
No. 33 on the Fortune Global 2000 list in the year 2016. The different products that are
offered by Nestle in the market include, medical food, baby food, breakfast cereals, tea,
coffee, dairy products and confectionery. The annual sales that has been gained by the brands
of the organization in the market is around, 1.1 billion US Dollars. The company has more
than 400 factories in over 194 countries in the world.
Nestle is also one of the major shareholders of the organization named Loreal. The
organization was established in the year 1905 with the help pf the merger that has taken place
between the Swiss Milk Company and Farine Lactee Henri Nestle (Nestle.com. 2018). Vision
statement of Nestle is based on the ways by which the consumers are offered with food
products that are safe and of good quality which aim to provide nutrition for the purpose of
meeting the physiological needs. The mission statement of Nestle is aimed at becoming the
leading health, nutrition and wellness based company in the world. Nestle has also laid some
major sustainability goals which are also related to the development of the organization in the
future.
The report will be mainly based on the analysis of the different employee engagement
and employee relations based activities that are undertaken by the management. The ways by
which the organization aims at managing the relationships with the employees will also
analysed in the report in detail.

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2.(a) Employee engagement and employee relations in Nestle
The drive for employee engagement in Nestle can be considered to be a best practice
in the food industry. This is divided into mainly three parts or categories which include,
training activities, engagement based campaigns and communication. The management of the
organization believes that the increase in employee engagement and awareness cab further
lead to the development of the sustainable operations of the organization. The employee
engagement based steps that are taken by the organization are related to its sustainability in
the industry (Ranjan 2017). The engagement of employees in the work process further helps
in increasing their levels of motivation in work. The employees are motivated if they are
aware that they can make significant changes in the operating procedure of the organization.
The motivation levels of the employees and the employee engagement are measured on a
regular basis by the management of Nestle (Armstrong and Taylor 2014).
The various engagement programs that are cited by the organization mainly include,
monthly lunchtime conferences that are lucrative in nature. The major reason behind the
application of employee engagement related programs in the organization is the creation of
shared values. The employee engagement based activities helps in ensure that the attendance
of the employees in the organization. The training based on sustainability that has been
conducted by the company in the past years has shown that more than 4000 employees have
undertaken the environmental sustainability (Brewster, Chung and Sparrow 2016). The e-
learning course that has been introduced by Nestle is mainly aimed at increasing the
motivation levels and the attendance of employees as well. The company delivered more than
16 sessions which were based on the environmental sustainability leadership.
The employees in Nestle are considered to be the assets of the company who are able
to provide the maximum levels of profitability and revenues. The employee relations based
policy of Nestle is mainly related to the ways by which the employees need to comply with

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the strict rules and regulations. The company is thereby committed towards the promotion of
greater levels of understanding and knowledge which is an important part of the Corporate
Business Principles of Nestle. The organization also complies with the laws which are
applicable in different countries and the employees are also trained accordingly (Brewster,
Mayrhofer and Morley 2016).
Nestle mainly strives towards the continuous and proactive improvement of the
relationships that have been established with the employees. The organized structures that are
developed within the Human resource department of Nestle helps in the management of the
employees in an effective manner. The implementation of various policies is mainly related
to a joint effort that is made by the two levels which are, corporate level and local level. The
relations that are established with the employees mainly depends on the responsibility that is
fulfilled by the local management of Nestle. The long-term relationships that are developed
by the organization are thereby based on the guidance that is provided by the implementation
of proper business principles (Albrecht et al. 2015).
The working conditions of the employees are improved by Nestle on a regular basis
so that special attention can be provided to the Corporate labour practices. The management
of Nestle is also able to promote the proper levels of communication among the employees
and the managers. The long-term employment related policies are provided importance by
Nestle which helps in the development of proper relationships as well (Brewster et al. 2016).
The innovative technology that has been used by Nestle for employee engagement is based
on the usage of social networks for the purpose of communicating with the employees. This
has helped the company to create successful relationships with employees in an effective
manner.

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2.(b) Drivers of employee engagement and relations in Nestle
The employee engagement activities have been provided high importance by the
management of Nestle. The company has always tried to engage the employees in different
processes so that they are able to provide their best performance. Nestle has always provided
utmost importance to the employees who are a part of the different organizational processes.
The employee engagement policies of Nestle has been helpful for increasing the motivation
levels. The attendance of the employees in the organization has been a major driver for the
implementation of proper policies related to employee engagement (Jackson, Schuler and
Jiang 2014). The management has always tried to create fruitful relationships with the
employees so that the objectives can be fulfilled effectively. The long-term employee
relations have been established by Nestle for the purpose of creating an efficient employee
base. The employees are thereby able to communicate with the management in an open
manner. The positive relationships with the employees helps Nestle to analyse their needs and
demands and provide them with a positive working environment (Purce 2014).
2.(c) Process of managing employee relationship which can challenge Nestle
Nestle had faced major challenges based on the engagement of employees in the
organizational processes in the year 2013. The products of the competitors of the organization
were found to be more popular among the customers as compared to those which are offered
by Nestle. The director of the organization had taken significant steps towards increasing the
levels of profitability of the company with the help of proper employee engagement
strategies. The local competitors of the organization in the countries like, China and Malaysia
had started providing tough competition to Nestle. The company thereby faced a huge
slowdown due to the issues that have occurred in the external environment. The debts on
Nestle had started increasing due to the low levels of profitability and employee engagement
as well (Kramar 2014).

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2.(d) Engagement strategy that can be considered for addressing challenges
The engagement strategy that has been considered by the company was based on the
training that was provided to the employees based on the products that are offered by Nestle.
The employees thereby need to know the trends that are being followed in the market which
can help them to compete easily with the local competitors. The volumes of goods of Nestle
that need to be sold by the company is also an important factor that can help the employees to
understand the operations better. The employees need to be made more engaged in the
operations of the organization so that they are able to solve the issues that are faced by the
employees. The buying patterns of the customers need to be analysed by the employees in the
stores so that they are able to provide better explanation based on the products that are
offered by Nestle (Shields et al. 2015).
2.(e)Engagement strategy to improve business performance in the long term
The employee engagement based steps which are taken by organizations are directly
linked to the ways by which the profitability can be increased. The management thereby
needs to implement appropriate strategies which can be helpful in increasing the engagement
of employees in the work process and further improve the sustainability of the organization as
well. Engagement is mainly based on the connection that the employees with the organization
on an emotional basis. Nestle thereby needs to increase the employee engagement related
activities in order to create a sustainable position of the organization in the food industry
(Newell and Scarbrough 2017).
The leadership of the company needs to be effective so that the employees are made
to follow the engagement related initiatives that are taken by the management. Analysis of
the talent that is possessed by the organization is an important part of the employee
engagement activities. Nestle also needs to improve the levels of communication that has

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been established with the employees. The improvement of communication levels can be
helpful for the company to create long-term relationships with the employees. Nestle also
needs to invest in the employees for the purpose of gaining their best performance in all the
operations (Laursen and Foss 2014). The use of new technologies is an important aspect of
the employee engagement activities that can be performed by Nestle in the industry. The
learning and development programs that are organized by Nestle play an important part in the
ways by which the employees of the organization are provided the best levels of training.
Employees need to be made an important part of the vision and mission that has been created
by the company. The goals of the employees and the organization need to be aligned in an
effective manner so that Nestle is able to operate in the environment in a sustainable manner
(Werner 2014).
3. Conclusion and recommendations
The report can be concluded by stating that Nestle has been implementing proper
engagement strategies for the employees. The company has always aimed at creating
effective relationships which can stay for a long term. The employees or human resources
have been provided utmost importance by Nestle. The organization is thereby able to create a
profitable position in the industry with the help of the performance that has been depicted by
the employees. However, the organization has also faced some major issues based on the
ways by which it operates in the market and the profitability as well. The director of Nestle
and other members of the management have taken appropriate steps for increasing the levels
of employee engagement and profitability of the organization as well.
Recommendations – Nestle needs to improve the employee engagement programs
that have been previously implemented in its operations. The relationships with external
stakeholders of the company need to be improved so that Nestle is able to create a

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competitive edge in the market. The levels of collaboration between the local management
and corporate management needs to be improved so that Nestle is able to create a stable
position in the market in a long term basis. The long term sustainability of an organization is
thereby dependent on the ways by which employees are involved in the operations.

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References
Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee
engagement, human resource management practices and competitive advantage: An
integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1),
pp.7-35.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Brewster, C., Chung, C. and Sparrow, P., 2016. Globalizing human resource management.
Routledge.
Brewster, C., Houldsworth, E., Sparrow, P. and Vernon, G., 2016. International human
resource management. Kogan Page PubKramar, R., 2014. Beyond strategic human resource
management: is sustainable human resource management the next approach?. The
International Journal of Human Resource Management, 25(8), pp.1069-1089.lishers.
Brewster, C., Mayrhofer, W. and Morley, M. eds., 2016. New challenges for European
resource management. Springer.
Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic
human resource management. The Academy of Management Annals, 8(1), pp.1-56.
Kramar, R., 2014. Beyond strategic human resource management: is sustainable human
resource management the next approach?. The International Journal of Human Resource
Management, 25(8), pp.1069-1089.
Laursen, K. and Foss, N.J., 2014. Human resource management practices and
innovation. Handbook of innovation management, pp.505-530.

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Nestle.com. (2018). [online] Available at: https://www.nestle.com/aboutus [Accessed 24 Jul.
2018].
Newell, H. and Scarbrough, H., 2017. Human resource management in context: a case study
approach. Macmillan International Higher Education.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals), 67.
Ranjan, P., 2017. Human Resource Management and Organizational Behaviour. Journal of
HR, Organizational Behaviour & Entrepreneurship Development, 1(1), pp.8-12.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P.,
Johns, R., O'Leary, P., Robinson, J. and Plimmer, G., 2015. Managing employee
performance & reward: Concepts, practices, strategies. Cambridge University Press.
Werner, J.M., 2014. Human resource development≠ human resource management: So what is
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