HR Management's Role: Examining L&D Effectiveness in Nestle & Pepsico

This report examines the learning and development (L&D) strategies employed by Nestle and Pepsico, highlighting the crucial role of human resource (HR) management in fostering organizational effectiveness and achieving a return on investment (ROI). It delves into the cultural and HR policy differences between the two companies, analyzing various L&D methods such as on-boarding training, instructor-led training, hands-on training, coaching and mentoring, e-learning, and group discussions. The report further discusses the impact of HR management on employee productivity and overall organizational performance, emphasizing how effective HR practices contribute to internal capabilities and success in the competitive food and beverage industry. Desklib offers a wealth of resources, including past papers and solved assignments, to support students in their academic pursuits.

Developing Human Resources
L&D

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Learning and development in the workplace:..............................................................................3
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Human resource management allow company to not only manage their employee but this
also help them fulfil learning and developing need of employee. Every business organization
focus on people development to become more capable and mainly to increase employee
retention, there are many successful companies who directly focus on human development as
compared to using different strategy to increase company's ROI. This study is based on Nestle
and Pepsico, Nestle is the largest food and beverage company who provide L&D to craft their
workplace more effective (Armstrong, 2020). Whereas Pepsico is one of the most successful
food company that deal worldwide and generate surplus profit, both organization provide L&D
strategies and try to fulfil demand of making workplace more productive. This report will discuss
Learning and development need of both organization. Later this report will examine HR
management and its roles and responsibilities in fulfilling need of L&D in the company. At last
this report will discuss impact of HR management on effectiveness of both organization.
MAIN BODY
Learning and development in the workplace:
Every business organization focus on learning and development phase where they try to
sharpen skills and ability of employee, this simply means training and development program that
not only help company to become more capable with the help of workforce but this allows them
to meet requirement of employee's as well. Almost every business organization give training and
development responsibility to HR department who take care of each and every employee of the
company, it is very clear that structure of business is very simple, which means each and every
department have their own roles and responsibilities that they need to follow (Altinay and et.al.,
2017). Same way HR or human resource department take responsibility of learning and
development or training to employee. It is very clear that training and development is not easy
task, this is quite challenging when organization deal in large scale for example; Nestle, this
company is the largest food and beverage company in the world. This company directly focus on
employee and their ability, Nestle provide effective training and development to employee that
impact ROI (Return on Investment), this company focus on internal ability which means
benefiting employee allow them to get higher retention rate.
Nestle deal in food and beverage which means quires of consumer is high, this company
have skilled worker who deal effectively with any issue that arrive in the business process.

Whereas when talking about Pepsico, this company also deal in food and beverage unlike Nestle
but PepsiCo focus on consumer segment rather than employee segment this simply means they
do provide effective learning and development to employee, but they do not mainly depend on
employee retention. Both organization is different and ROI, they have their own method of
learning and developing employee, these methods are:
Culture and human resource policy: both organization follow and welcome diverse
culture, Nestle unifies people from different culture which allow them to enjoy certain benefits,
this company hire talent from diverse culture which unlock certain opportunity to survive in
different market. Nestle consider diverse culture as business strategy as this allow them to
develop powerful workplace that impact return on investment, for example; Nestle hire
employee from different nation which provide them insight and condition of the market,
employee with expertise advise Nestle to craft survival strategy. This way people of Nestle and
Nestle themselves drive high ROI in different market (Bratton and et.al., 2021). Whereas Pepsico
is one of those companies who also welcome diverse culture but prioritize employee from home
country because they believe diverse culture need extra training and development affords that
cost to the business and their ROI is impacted. Human resource policy of both companies is
different from each other, both company favour employee and their development, for example
nestle drive non-discrimination policy that create healthy workplace. And Pepsico craft
collective bargaining policy and strict rule against any kind of unethical practice in the
workplace.
Every business organization provide learning and development program to employee for
certain purpose such as; introduction to workplace structure, sharpening pre-existing skills and
ability, training and developing new skills and ability. Nestle have their own learning and
development program that help them to sharpen skills of employee, they provide effective
learning program that cover every essential need of the employee in development process, there
are different method of L&D need, these are:
On board training: on board training is one of the best method that allow organization to
provide effective learning and development to new employee, this simply means organization try
to focus on training session inside workplace (Brewster and et.al., 2016). The purpose of on
board training is to push employee to become part of workplace climate, although on board
training can be challenging because this can impact employee retention as well. For example if

transferred employee need on board training then company need to provide extra affords this will
impact their ROI. Nestle is one those companies who ensure leadership is involved before,
during and after training as this allow Nestle to complete training before intended time. Whereas
Pepsi co also practice on board training fulfilling L&D need of the workplace, this company
push new employee and transferred employee to become part of workplace and provide
productivity to the company (DeCenzo, Robbins and Verhulst, 2016). Apart from on boarding
training, this company also focus on re boarding, this is process of providing training to those
employees who arrived after long period of time, it is very clear that employee might face any
issue in their personal life that impact their employability, Pepsico provide special training to
those employees to capture greater ROI.
Instructor led training: instruction led training means learning and development program
to employee in a classroom, this is one of the most effective method of meeting L&D need.
Every business organization want their employee to be skilled in the work, they conduct training
in training session. Many organizations use this method of training to sharpen skills of employee
that already have skills for example if business want their employee to manage more complex
project than they provide instructor led training to employee. Nestle is one of those companies
who use instructor led training to both, new and existing employee (Harteis, 2017). This
company allot training process to highly skilled instructor who use their experience and expertise
to provide effective training. This company know increasing skills of employee will allow them
to increase ROI of the company. Whereas Pepsico try to avoid this training method because they
believe special training is quite complex which lead to wastage of time and resource, although
this method is one of the best method in meeting requirement of L&D needs of employee.
Hands on training: hands on training means employee directly perform job and train
automatically with the process, this method is beneficial for those organizations who have
continuous load (Stone, Cox and Gavin, 2020). Many business organization state that hands on
training is experiential training allow employee to become more capable because experience job
impact mindset of employee. In Nestle, HR department provide hands on training to employee to
boost their skills and allow them to quickly adjust in workplace, this company focus on
employee that means they use experiential way to make employee perfectly fit in the job. This
method is quite beneficial in retaining and gaining employee experience that directly impact
ROI of the company. Howe ever this is time-consuming method that impact company's

performance, because new employee sometimes not able to fit in the job role impact company's
smooth process. It is very clear that Nestle is the largest food and beverage company that means
they need to be quick in sharpening skills and ability of employee (Limwichitr, Broady-Preston
and Ellis, 2018). Every business organization have their own L&D standard that allow them to
meet learning and development need of employee, Pepsico use this method to training their
employee on hands, this company have enough resource to meet demand of learning and
development of employee, this company able to manage ROI with the help of hands on training.
Coaching and mentoring: coaching is one of the best method of learning and
development in the workplace, this means organization will provide coaching to employee and
mentor them until they become perfect in fitting job role. It is very clear that coaching to
employee is quite important specially when employee is new but there are many organizations
who coach existing employee to manage difficult project successfully that impact ROI of the
company. Nestle invest in employee that means they expect them to work effectively and
provide best to meet requirement of the job, this company appoint expert to mentor pre-existing
employee, these experts provide guidance to employee allowing them to become more capable
for Nestle. This company know investing in employee will beneficial that will drive ROI for the
company (Lizier and Reich, 2021). Whereas Pepsico focus on beyond training to meet L&D
demand of workplace, this means they will even hire experts from different organization to train
their staff, this company reduce cost of mentorship by becoming partners with those companies
who have expertise. Coaching and mentoring is provided by both organization to drive ROI.
E-learning: e learning is another best method that allow business organization to provide
training and development with the help of electronic method, almost every company use digital
method to mange their work. They also focus on providing training with the help of online video,
tests and courses, this method is quite creative but many large scale business organization try to
avoid this method because they believe e learning do not provide real life experience that impact
performance of employee (Wilton, 2016). Nestle adopt this method of learning and development
to training employee who work from different nation or area, this company believe that
employee from different nation need proper training through online platform. Although e
learning is beneficial when dealing in technological area, because employee get opportunity to
explore those areas of digital world that will benefit them in the future.

Group discussion and internal activity: sometimes business organization simply train
their employee with the help of internal activity or group discussion, this simply means they
provide one task to employee which they need to completed within time frame, by completing
this task employee explore different area of organization and boost their confidence. Employee
try to learn different thing in this activities which somehow benefit company in different way,
group discussion provide employee confidence and increase their communication skills which
become beneficial for the company (Mathis and et.al., 2016). Nestle allot difficult activities and
task to employee which impact their confidence in the workplace, this company see internal
activities as best possible way to develop employee mainly new employee. On the hand, Pepsico
with different size do not focus on this method of learning and developing workplace, this
company believe that group discussion waste time and affords of employee and impact ROI of
the company. Pepsico is one of those companies who focus on easy way to train their employee,
this company use different effective way to boost their ROI.
Brief description of HR management and its impact on organization effectiveness:
Human resource management is one of the most important pillar of every business
organization, this allows company to stand stable because this provides internal support. HR
department not only hire people in the workplace but this also manage productivity of employee.
It is very clear that human resource management is one of the broadest term which include
certain important things, productivity of organization is completely depended on employee and
employees productivity is completely depended upon human resource management (Sütőová,
Šooš and Kóča, 2020). Nestle human resource allow them to achieve internal ability, although
size of Nestle impact human resource performance, it is very clear that Nestle is the largest food
and beverage company that means managing its people will be challenging. They have certain
HRM objectives that impact their management of people, these are:
Societal objectives: societal objectives simply means ethical and social responsibilities of
business organization regarding employment process, it is very important for both employee and
organization to meet need to ethical and societal requirement because this is not only connected
with employment process but this is connected with equal opportunity and pay role accordingly.
Nestle set certain objectives for practising better management of people, this company provide
fair employment to employee according to their skills and ability. Nestle is one of those

companies who complete their societal responsibilities that allow them to become more capable
and competitive in the market.
Organizational objectives: when it comes to organizational objectives, role of HRM
become important, it is very clear every organization depend on HR department to hire talent in
the workplace (Stewart and Brown, 2019). HR management help organization to hire right
people at right position which means company remain stable internally and become productive,
employee with talent is firstly considered by those organizations who deal in large scale for
example; Nestle not only hire talent in the workplace but this company effectively manage talent
as well, when comparing HR management of Nestle and Pepsico, Nestle have more effective
management of talent. This company able to follow objectives they set in HR management.
Impact of HRM on organizational effectiveness:
Secure top talent: HR management not only hire talent in the workplace, but they secure
top talent in the workplace but providing benefits to employee, benefit may include financial as
well. Nestle provide financial benefit to their employee allow them to increase effectiveness of
employee that impact effectiveness of organization as well, HR department maintain stability in
the workplace by providing equality opportunity to employee and by providing benefit according
to performance. Nestle deal in international market and hire talent from different nation that
provide them insight of the market condition, people of different nation bring their own value,
belief and expertise that impact companies performance. Whereas Pepsico focus on hiring local
talent in the workplace, this company have their own talent management strategy. For example if
company deal in developed country then they hire talent locally which provide them certain
benefits. This company know effectiveness only can be possible if local expertise come on
board, Pepsico secure top talent with this strategy.
Stronger on boarding: only HR department know value and importance of perfect
candidate, this department manage candidate and their effectiveness in the workplace. It is very
clear that company's future depend on performance of employee if employee have ability to
performance and meet requirement of organization then they can become successful. Nestle
focus on stronger on boarding process that allow them to adjust their workplace with skilled
worker, this company use skilled workforce to strengthen internal ability of the company. This
HR management practice allow company to craft effectiveness, this not only impact performance
but ROI of the company is also impacted. On the other hand Pepsico strengthen their on

boarding process by hiring skilled worker and with effective learning and development program
this company craft professionalism of their skilled worker.
Improve employee retention: employee retention is one of the most important thing for
every business organization, this simply means organization need to generate surplus profit to
meet the need of employee and to increase their retention (Pucik, Evans and Björkman, 2017).
HR management focus on improving retention of employee as this greatly impact effectiveness
of the company, there are certain ways to increase employee retention for example providing
financial benefit to employee. Nestle's HR management allow them to increase retention of
employee this means they not only provide financial benefit, but they also use strategic HR
solution to boost their employee performance. This company achieve allow their target with the
help of employee retention with strategic HR management, Nestle have ability to manage
employee turn over with surplus profit. Whereas Pepsico focus on mini zing employee's conflict
with the help of powerful learning and development program, this company provide strategic
solution when there is any kind of conflict in the workplace.
Organization culture: every business organization want their workplace to become more
productive, they try to fill workplace with talent with diverse culture. It is very important for
every business organization to welcome people from diverse culture because this not only allow
them explore diverse area but this help them to get insight of those market from employee is
belonging, many business organisation see this as an opportunity to become more capable.
Diverse culture have certain benefit but this also have different type of danger as well for
example if company is unable to manage diverse culture then interest of conflict can be seen, to
manage this conflict organisation mainly human resource department have to provide learning
and development program to diverse culture allow them to become more capable (Pattanayak,
2020). Nestle is one of those company who focus on diverse culture whereas Pepsico also focus
on betterment of workplace which only can be possible if both organisation have ability to
manage diverse culture. It is very clear that both companies are successful because of diverse
culture they both have ability to manage diverse culture in the workplace. Both organisation
know that managing conflict is one of the most important thing in generating and processing
ROI.

CONCLUSION
This report has discussed human resource management and its importance in the business
organization, it is very clear that HR management not only allow company to be internally stable
but this help company to be more effective in the market and to manage their ROI. Later this
report has discussed learning and developing needs of Nestle and Pepsico and analyse different
method of fulfilling learning and development in the workplace. L&D needs may include on
board training and development, instructor led training and development, importance of E
learning, hands on training, coaching and mentoring and group discussion and internal activities.
Later this report has discussed HR management and its importance in fulfilling L&D needs of
both the organisation. At last this report has discussed impact of HR management on
effectiveness of both organisation and its process.

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