Nestle's HRM Strategies: Achieving Competitive Advantage Through HR

This essay critically examines the role of the Human Resource (HR) function in achieving competitive advantage, using Nestle as a case study. It delves into the nature and characteristics of HRM, people management strategies, procedures, and tools, and the wider organizational implications of HRM practices. The essay discusses key HR functions such as recruitment, job safety, employee relations, compensation and benefits, labor law compliance, and training and development. It highlights how Nestle utilizes these functions to enhance employee satisfaction, productivity, and overall organizational performance. Key principles of HRM, including recruitment to retirement, attitude-based hiring, understanding pay structures, and strategic hiring practices, are also explored. The analysis emphasizes how effective HRM practices, such as providing comprehensive training and development programs, ensuring workplace safety, and fostering positive employee relations, contribute to Nestle's ability to achieve and sustain a competitive edge in the market.

Running head: Managing people
Managing People

Managing people
Human resource in the organization plays a great role in managing the operations
of the company. Without human resource team it is not possible for the company to
manage the operations in a right direction. Human resource team of the company manages
the routine activities so that goals and objectives can be accomplished in a proper manner.
In this paper, the discussion will be made on the functions of an HR, the key principles of
HRM and also how to evaluate the HR function so that competitive advantage can be achieved.
The company which is selected for this task is Nestle.
It is analyzed that there are various characteristics of HRM like it is considered as a
service function and also it is a continuous process which takes place continuously. This
approach of HRM is a people-centered approach in which the focus is given to the people
and also it focuses more on results so that growth can be achieved. People Centered
approach is one of the HRM approach which is related with the employees. In this, focus is
given on fulfilling the management objectives by emphasizing on the needs and wants of
the employees. When needs and wants of the employees are satisfied they try to give their
best towards their assigned activities. Nestle gives more focus on people-centered
characteristics so that success can be achieved in an effective manner.
It is seen that human resource give proper structure to the company so that business
needs can be achieved by giving focus on the managing the resources of the company. There are
many functions related to HR. The first function is related to the recruitment process of the
company. The process of recruitment is conducted by the HR of the company and it is one of the
most important functions conducted so that talented candidates can be recruited to conduct the
activities. The function of the HR is to fill the positions in the company in less time so that it can
be easy for the company to manage the overall activities of the company (Kumari, 2012).
It can be evaluated that the function of the HR in Nestle is to conduct the screening
process and also interview so that the candidates who are not eligible can be rejected in the
starting stage only. If the eligible candidate is selected for the job then it can easy to achieve
competitive advantage in an effective manner. This is one of the effective functions that will help
the company to achieve competitive advantage in the competitive environment. Also, there
should be SHRM in the company so that hindrances cannot take place at the time of
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achieving success in the market. SHRM refers to strategic human resource management in
which management principles for managing the workforce is taken into consideration
(Deery and Jago, 2015).
Next function of the HR is related to the job safety. Safety in the workplace is also
essential functions as it is seen that if there is workplace safety then it can be easy for the
company to enhance the overall efficiency of the employees. The function of the HR is to assist
the workplace safety training and also to maintain federally mandated logs so that injuries that
take place can be reduced (Rao and Dhillon, 2017). The HR of the company focuses on job
safety of the employees by giving them training of each and every activity that takes place in the
company. Also when workplace safety is considered by the HR it is analyzed that company
focuses on managing the compensation of the employee's problems so that satisfaction level can
be enhanced by the employees. If employees are satisfied then they can give their best towards
the activities of the company. The company is also working with Danish institute for human
rights so that human rights policy can be reviewed. The company focused on partnership
with DIHR related to human rights so that proper right responsibilities can be
implemented on global basis. For safety Nestle implements the policy named as
occupational safety and health management system which consist of periodic self-
evaluation and audits (Ford, 2014).
The important function of the HR in the workplace is to enhance mutual
cooperation between the employees. If the relation of the employee is managed in a proper
manner then it can be seen that productivity can be enhanced. In the workplace, it can be
analyzed that the employee and labor relations are an important function of the HR and Nestle
gives emphasis on handling these relations with the help of the HR specialists who are expert in
the specific field. The relation of the employee is the responsibility of the HR that helps to
enhance the employer and employee relation by evaluating the job satisfaction, employee
engagement and also solving the conflict of the workplace. The functions help to maintain the
relationship with labor by considering he developing management responses to that organizing of
campaigns can be done effectively and also it will help to negotiate the collective bargaining
agreements in a proper manner (Sparrow, Hird and Cooper, 2015).
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Managing people
Compensation and Benefits is also the function of The HR. In this process, the employees
are managed by giving compensation and benefits so that they can give their best towards the
activities assigned in an effective manner. This function can assist the company in attaining
competitive advantage as it is seen that if proper benefits and compensation is given by a
company to the employees then it can be possible to enhance the overall productivity. The
structure of the compensation is designed by the HR in evaluating the qualification of the
employee who is conducting the routine activities (Gupta and Shaw, 2014). It is also analyzed
that the HR of the Nestle focuses on analyzing the competitive practices so that competitive
advantage and employee satisfaction can be enhanced. In the compensation and benefits plan, the
HR evaluates the health coverage rates with the insurers and also the focus is given on
coordinating the activities with the retirement saving fund. It is seen that when employees get
compensation and benefits then organization performance is enhanced in a proper manner
(Anitha, 2014). The HR role is to manage the payroll of the employees by giving emphasis on
compensation and benefits section that will help the employees to gain proper knowledge of their
payroll. Salary is an important factor and if it not given to the employees in a satisfied manner
then it is difficult for the company to retain the employees (Cloutier et al., 2015). The HR of
Nestle focuses on giving equal wages to the employees by considering the qualification of the
employees so that activities can be conducted smoothly and also retention of the employees can
be done effectively (Aruna and Anitha, 2015).
Labor law and compliance is also the function of the HR. It is seen that these laws and
compliance is managed by the HR of the company. If they do not consider it in a proper manner
then negative impact can be analyzed on the overall productivity of the company. The HR can
gather the complaints that can be based on the unfair employment practices and related
with unsafe working conditions that can give impact on the productivity.
The HR of Nestle is aware of the employment-related with state and federal law like fair
labor standards act and also national labor regulations. It is seen that if proper rules and
regulations are considered then business risk can be minimized and company can also achieve a
competitive advantage as there are no hindrances in the activities (Brewster et al., 2016).
Next function which is related to the HR is training and development. It is seen that it is
the responsibility of the HR to give proper training to the employees so that their efficiency
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Managing people
towards the work can be enhanced in a proper manner. In Nestle, the HR offers various tools to
the employees as it helps them to achieve success in the market. By giving training to the
employees it can help the employees in transition into a new organizational culture. The HR of
the company provides leadership training and also development on the professional level so that
it can be easy for them to achieve competitive advantage in a proper manner (Bolden, 2016). In
Nestle, the leadership training is necessary for the employees who are new to the company so
that performance can be managed and also the employee relations can be handled on the
departmental level. The development opportunities related to the employees help to look for the
promotional benefits that help them to achieve their target in the organization. The HR of the
company performs the function of giving training to the employees so that in the right direction
they can conduct the activities (Buckingham and Goodall, 2015).
By giving training by the HR it can be easy for the company to achieve profits and also
the competitive advantage. It is seen that when employees are trained in a proper manner then it
helps the employees to perform the task in a proper manner and also with more efficiency. It is
one of the best functions that help the company to be successful and conduct the activities so that
competitive advantage can be achieved. Training is the best option as it enhances the
knowledge of the employees and motivates them to complete the activities with efficiency
(Ganesh and Indradevi, 2015).
There are many principles which are related to Human resource management. The first
principle is related to the recruitment to retirement. It can be evaluated that human resource
focuses on dealing with the workers from recruitment and retirement. It takes into consideration
manpower planning, training, and development, promotion and transfer. The principle of the
HRM is to maintain these functions so that company can achieve success with enhancing the
satisfaction level of the employees (Armstrong and Taylor, 2014).
Next principle is related to the attitude for hiring and also to recruit b giving emphasis on
the skills. It is seen that at the time of recruiting HR gives focus on the attitude of the person and
as it is seen that attitude is the key to the employee engagement. The HR gives emphasis more on
attitude rather than the experience. It is analyzed that it is good to hire the people who have a
high attitude as it is seen that no experience can beat the attitude of an individual. If a person has
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a good attitude then it can be easy for them to adopt the skills and knowledge that are important
to conduct the activities in an effective manner in the organization (Mishra, Lama and Pal, 2016).
Next principle of HRM is to understand the pay structure concepts so that employees can
conduct the activities in a smooth way. Pay is considered as a reward for the employees to give
the services. Pay involves base salary, variable pays and also the advantages offered by the
company. For instance: A bonus is seen in the form of a variable pay (Aslam et al., 2015). So it
is seen that bonus helps to a given award by giving focus on the exceptional work performance.
It is the responsibility of the human resource manager to give pay according to the skills and
knowledge possessed by an individual. If proper wages are given to the employee's then
retention of the employees will be more and it will help the company to achieve competitive
advantage in an effective manner (Butler and Callahan, 2014).
Slow hiring and fire more are also one of the principles of HRM in which the HR can be
slow in hiring but they recruit those candidates who are talented enough to conduct the activities
of the company. They look for the people who have the right mindset, knowledge of the
activities so that profits can be achieved easily. The HR tries to remove all the negative aspect
from an individual and encourage them to conduct the activities smoothly so that growth of the
company takes place. Nestle also focuses on hiring talented candidates so that they can manage
the activities of the organization and can also bring efficiency in their work.
Next principle of HRM is related to shed complexity and simplicity. People in the recent
scenario, give more focus on the flat companies rather than tall organizational structure. It can be
evaluated that the companies who are tall have hierarchies with a bureaucratic mindset that do
not take place in the present situation. It is important that employee feel good in conducting the
activities. If they are not happy then it can lead to lower the overall productivity level of the
company.
So, it is concluded that HR plays a great role in achieving the competitive advantage b
performing various functions like training and development. To achieve competitive advantage
there should be a proper link between HRM and SHRM as it helps to achieve goals and
objectives of the company smoothly. If these functions are considered in proper manner then it
can help the company to enhance the market share.
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Managing people
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