Strategic Human Resource Management of Nike

This document provides an overview of strategic human resource management in Nike, including its importance, purpose, and contribution to achieving organizational objectives. It also analyzes the impact of organizational structure and culture on HRM.

STRATEGIC HUMAN RESOURCE MANAGEMENT OF NIKE
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Table of Contents
Introduction........................................................................................................3
Introduction to Nestle...........................................................................................3
Task 1...............................................................................................................4
LO 1.1 Explain the importance of strategic human resource management in Nestle 4
LO 1.2 Assess the purpose of strategic human resource management activities in
Nestle............................................................................................................4
LO 1.3 Evaluate the contribution of SHRM to the achievement of Nestlé’s objective. .5
Task 2...............................................................................................................5
LO 2.1 Analyse the business factors that underpin human resource......................5
LO 2.2 Assess the human resource requirements in a given situation....................6
LO2.3 Develop a human resources plan for Nestle.............................................6
LO 2.4 Critically evaluate how a human resources plan can contribute to meeting the
objectives set by Nestle....................................................................................7
Task 3...............................................................................................................7
LO 3.1 Explain the purpose of human resource management policies in Nestle......7
LO 3.2 Analyze the impact of regulatory requirements on human resource policies in
Nestle............................................................................................................8
Task 4...............................................................................................................8
LO 4.1 Analyze the impact of an organizational structure on the management of
human resources within Nestle..........................................................................8
LO 4.2 Analyze the impact of an organizational culture on the management of
human resources of Nestle................................................................................9
LO 4.3 Examine how the effectiveness of human resources management is
monitored in Nestle..........................................................................................9
LO 4.4 Make justified recommendations to improve the effectiveness of human
resources management in Nestle.......................................................................9
Conclusion.......................................................................................................10
References......................................................................................................11
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Introduction
Strategic human resource management also known as SHRM is the process that focuses on
managing as well as enhancing the overall skill set of employees so that organisational goals
can be attained. It is required to be implemented properly so as to help in attaining competitive
advantage of the firm (Armstrong and Taylor, 2014). The present study has thus made an
attempt to focus on SHRM of Nestle company which is well known on a worldwide basis for its
foods and drinks. Emphasis of the study is thus on assessing how SHRM will support in
attaining of organizational purposes and formulation of a human resource plan followed by
understanding about human resources policy requirements.
Introduction to Nestle
Figure 1 Nestle Logo
(Source: Nestlé, 2017)
Nestle is a food and beverage firm which provides products related to health, wellbeing
and nutrition to the consumers on a worldwide basis. The offerings include baby foods, water,
chocolates, coffee etc. The company has been involved in supplying 200 brands to the people
over the globe. The mission statement is of serving good food and good life to the people that is
tasty, nutritious and can be consumed for the entire day (About us, 2017). The mission
statement has aided the frim in enhancing the overall lives of people through its wide range of
nutritive and healthy solutions. The HR team of the company is involved in making products that
enhance the life quality of the masses. The company also helps the staff in working up to their
full potential. The management has also set a high performance culture which lays focus on
diversity, innovativeness and employee growth so as to help in overall development (Nestle,
2017) There is further a presence of Talent Assessment and Succession Planning for the staff
which may assist in moving forward in the career path (Development, 2018).
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Task 1
LO 1.1 Explain the importance of strategic human resource management
in Nestle
A very crucial role is played by SHRM in carrying out short, middle and long term planning with
the firm. It is essential within Nestle so as to create a link between HRM and strategic objectives
of the company so that business productivity can be improved in the best possible manner.
Nestle is further able to develop the right kind of organizational culture so that overall working of
employees can be improved and flexible work place can be created (Reddy, and Reddy, 2018).
A major role is also played in creating strategies for the firm and bringing a change in them as
per the need of external factors that impact the working of the company. Nestle has also
emphasized on activities related to recruitment, selection training and development so that
innovative products can be developed. It is only on account of SHRM that positive and
consistent results had been given by the company. The emphasis should thus be on
maintaining the benefits of SHRM and focusing on the flaws linked with it.
LO 1.2 Assess the purpose of strategic human resource management
activities in Nestle
Various purposes are fulfilled by SHRM within Nestle which are as follows;
 SHRM assists in development of motivational practices within the company such as
career-development opportunities; employee-appreciation programs, Corporate
Mentoring Programme and courses at International Training Centre (Development,
2018). It further provides a positive work culture to the staff members so that employees
feel motivated to work. The SHRM has further assisted in maintaining the diversified
culture of employees that are a part of different nations. The positive culture has helped
Nestle in attaining a positive sales and profit curve over the years (Jackson, Schuler and
Jiang, 2014).
 The concept of SHRM aids in appointing the best HRM team from over the globe who
can be developed and trained to attain strategic goal with respect to providing good food
and good life to the masses.
 The development of enthusiastic employees also takes place which happens through
creation of short courses, training and lecture sessions so that skill set can be
developed.
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 With the help of SHRM there is further a devising of system for effective monitoring of
employees who can then be trained for bringing an improvement in overall performance
(Armstrong and Taylor, 2014).
LO 1.3 Evaluate the contribution of SHRM to the achievement of Nestlé’s
objective
Strategic human resource management has a huge contribution with respect to attainment of
goals and objectives of Nestle.
 Building trust of consumers – Trust factor and employee loyalty can only be developed if
SHRM works on motivating and empowering the staff members. This will increase their
overall work productivity which will make the buyers satisfied.
 Increase in profit figures to be a market leader – If good work culture practices are
performed by the company then few employee turnovers will take place. There will
further be development of experienced employees who can work towards the betterment
of company and fulfill the objective of nestle to be a market leader in food and beverage
sector.
 Utilizing new technologies and processes – this objective can be attained when Nestle
builds an innovative and motivated team which carries out experimental, research and
development activities among others (Sutcliffe, Paine and Pronovost, 2017). SHRM can
play a key role in attaining this objective.
 Conservation of natural resources – Attainment of this objective is of crucial importance
seeing the global warming and strictness of government this area. The HRM team must
train the employees on making the best use of resources such as water and electricity
especially in the production unit of the firm.
Task 2
LO 2.1 Analyse the business factors that underpin human resource
planning in Nestle
There is a presence of external as well as internal factors that support the process of human
resource planning within the organization. These are as follows;Internal factors
 Organizational needs: the planning of human resources within Nestlé can only be done
when overall need of the firm is clear in terms of vision, mission, goals and strategies.
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 Skill requirement: There is often a need of skilled employees in Nestle in production,
research and development, promotion among others. If the skill needs is clear for the
firm then a decision can be made as to whether employees should be recruited from
outside or the present ones should be trained through the process of succession
planning (Armstrong and Taylor, 2014).
External factors
 Supply conditions – the skilled employees should also be prevalent in the external
environment so that recruitment and selection activities can be carried by Nestle. If the
employee base is absent the existing ones should be trained (Jackson, Schuler and
Jiang, 2014).
 Government policy- any change in government policy is most likely to put an impact on
overall HRP planning. For example, HR planning will be affected significantly if the
government passes a law to recruit females or disabled employees on a mandatory
basis.
LO 2.2 Assess the human resource requirements in a given situation
As per a situation the company has started bottled water factory in Kenya and the firm is in need
of new employees. The human resource requirements for the factory are as follows;
 Business development manager – This is one of the most important positions to be filled
by Nestle. They should be able to work in an ever changing environment and accept
challenges that are likely to be faced in Kenya. They must have a good amount of
experience with them and an overall ability to generate business for the company
(Nasreddine and et.al., 2018).
 Sales manager – These are required in Kenya based factory to generate sales for the
firm and train the employees who are under the leadership of sales manager.
 Quality analysts – As Nestle gives huge emphasis on quality hence the need is also to
recruit Quality analysts who can check the overall quality of bottled water that have been
manufactured.
LO2.3 Develop a human resources plan for Nestle
Various steps for human resources plan for Nestle is as follows;
 Need in this step is to have a detailed information about the employees needed within
the company. In present case it is inclusive of business development managers, sales
manager as well as quality analyst.
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 An assessment is required to be done in terms of the skill set needed for completing the
roles and responsibilities (Gray and Hinch, 2018).
 This step is about development of preliminary human resource plan for the firm which
focuses on developing job description, posting on website and calling employees for
selection process.
 This step lays emphasis on carrying out selection activities and training the new recruits.
LO 2.4 Critically evaluate how a human resources plan can contribute to
meeting the objectives set by Nestle
The human resources plan that has been prepared above is most likely to aid in attaining the
objectives set by Nestle. This is as recruiting experienced employees will help in maintaining the
brand image of Nestle and also fulfil the consumer trust objective. This will occur as the
experienced employees will give their best for development of the new factory and may train the
other employees who are not so capable. Recruitment employees with proper skill set will save
the training and developing cost of the company (Kallio, Kallio and Blomberg, 2015).
Development of job description will help in recruiting the best employee’s within the firm who
can further be scrutinized through selection activities. The training sessions as a part of human
resources plan will aid in employee motivation and provision of career opportunities for the
employees.
Task 3
LO 3.1 Explain the purpose of human resource management policies in
Nestle
The HRM policies within Nestle assist in providing an in-depth structure about the organization
with respect to which staff member reports to whom and who will be delegating roles to the
employees. It also assists in bringing an overall equality and fair work practices within the firm
which is needed for reduced employee turnover and long term loyalty from them. Along with this
Nestle also have a presence of certain policies that help in providing overall satisfaction and
retention of staff (Sparrow, Brewster and Chung, 2016). HRM has also been known to provide a
competitive advantage to the firm as it assists in removal of conflicting situations that may
hamper the business operations.
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LO 3.2 Analyze the impact of regulatory requirements on human resource
policies in Nestle
 Anti-discrimination – Nestle management must ensure that no discrimination is practiced
against the employees on behalf of difference in caste, creed, color or sex. If it still does
not adhere with the clauses then penalties are likely to be faced.
 Wage and hour – as per government of UK, firms are required to adhere with the
minimal wage clause which must be revised on a periodic basis. If any company does
not comply with it then penalties are likely to occur followed by a backup pay for up to 2
to 3 years (Jackson, Schuler and Jiang, 2014).
 Medical and disability- the UK law has made clauses as to how the disabled employee
should be treated in the workplace. In case any mistreatment happens with disabled
employees in Nestle they there can be legal penalties followed by tarnished image of the
company.
Task 4
LO 4.1 Analyze the impact of an organizational structure on the
management of human resources within Nestle
In order to support the organizations working, Nestle has been adhering with matrix structure
that has got many impacts on HRM. On positive note, the structure assists the management at
Nestle to use the limited human resources of the company in an effective manner followed by
ensuring towards a rapid information flow. There is further a possibility of proper reporting by
which conflicting situations are handled in a better manner. Process of time management as
well as work priorities can be easily defined followed by explaining the staff member about
whom to refer when any issues are faced by them (Nasreddine and et.al., 2018). But on a
negative note, this structure has added to challenges on account of blurring in reporting
relationships as increase in work load occurs on account of expectations made by department
head and immediate supervisor. A situation of conflict may further arise if employee is asked to
perform a work which is beyond his standard role format. Hence it is very essential that the
senior management ensures that there is a high degree of cooperation as well as coordination
between functional and project management.
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LO 4.2 Analyze the impact of an organizational culture on the
management of human resources of Nestle
The culture at nestle is of high performance where focus is on reward and employee
development so as to deliver best output. The culture is also driven by setting of clear
responsibilities that affect overall employee performance. This culture has impacted the HRM in
a positive manner as employees get a chance for career development and taking up increased
responsibilities. It further assists in overall employee motivation so that best work can be
delivered (Głowacki and Jackson, 2013). It is easier for HR to focus on the process of
succession planning if the need arises as all the employees are empowered and have ability to
take up new job responsibilities. Hence it saves the HR from the cost and headache of recruiting
from outside.
LO 4.3 Examine how the effectiveness of human resources management
is monitored in Nestle
In order to monitor the employee performance the company makes use of 360 performance
appraisal systems. The technique is quite active which assists in providing an overall review
about employee working. The staff members can also be motivated so as to work in a focused
manner. This technique further ensures that employees show their loyalty towards Nestle.
Employee monitoring is further done through surveys of employees about the HRM policies of
the company. The staff can give anonymous feedbacks which can then be utilised for bringing
an improvement in HRM (ÖZDEMİR and GÜÇER, 2018).
LO 4.4 Make justified recommendations to improve the effectiveness of
human resources management in Nestle
Effectiveness of HRM within Nestle can be improved by bringing in transprancy with respect to
the performance appraisal systems. The employees must be free enough to interact about their
overall performance with the manager. A consultation/awareness program can also be kept for
the employees where they can be made aware about the organisational policies with respect to
their overall conduct. Good incentives should also be given to employees so that they work in a
motivated manner. Other than this, Exit interviews should also be carried out by management
so that issues with organisational culture and HRM can be worked upon.
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Conclusion
The above study has arrived at a conclusion that Nestle has a presence of good employee
relations that has made the firm successful over the years. Along with this, the company can
attain success in the coming future if it focuses on adhering with the HRM policies as set by the
government such as diversity, nondiscrimination among others. It is further recommended that
the company should make transparency in HRM practices and also carry out exit interview to
assess the issues faced by employees.
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References
Books and Journals
Armstrong, M. and Taylor, S., 2014.
Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
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.
Sparrow, P., Brewster, C. and Chung, C., 2016.
Globalizing human resource management.
Routledge.
Sutcliffe, K.M., Paine, L. and Pronovost, P.J., 2017. Re-examining high reliability: actively
organising for safety.
BMJ Qual Saf.
26(3). pp.248-251.
Kallio, T.J., Kallio, K.M. and Blomberg, A.J., 2015. Physical space, culture and organisational
creativity–a longitudinal study.
Facilities.
33(5/6). pp.389-411.
Głowacki, M. and Jackson, L., 2013.
Public media management for the Twenty-First Century:
creativity, innovation, and interaction. Routledge.
Reddy, M.E. and Reddy, A.P., EFFICIENCY ANALYSIS OF WORKING CAPITAL
MANAGEMENT (A study on Selected FMCG Companies in India).
Message from the
Managing chairman, p.5.
Gray, A. and Hinch, R. eds., 2018.
A handbook of food crime: Immoral and illegal practices in
the food industry and what to do about them. Policy Press.
Nasreddine, L.M., Kassis, A.N., Ayoub, J.J., Naja, F.A. and Hwalla, N.C., 2018. Nutritional
Status and Dietary Intakes of Children amidst the Nutrition Transition: the Case of the
Eastern Mediterranean Region.
Nutrition Research.
ÖZDEMİR, G. and GÜÇER, E., 2018. Food Waste Management within Sustainability
Perspective: A Study on Five Star Chain Hotels.
Journal of Tourism and Gastronomy
Studies.
280. p.299.
OnlineAbout us. 2017. [Online]. Available through: <http://www.nestle.com/aboutus> [Accessed on 14th
May 2017].Nestlé, 2017. [Online]. Available through: <
https://www.nestle.com/> [Accessed on 14th May
2017].
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Development. 2018. [Online]. Available through:
<https://www.nestle.com.my/careers/your_career_at_nestle_malaysia/development>
[Accessed on 14th May 2017].
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