MBA HRM and Leadership Report: Nestle Company Analysis

This report, prepared as a consultation for Nestle Company, delves into the realm of Human Resource Management (HRM) and Leadership. It begins by analyzing various HRM models, including the Fombrun Model, the Harvard Model, the Guest Model, and the Warwick Model, providing a comprehensive understanding of their frameworks and applications within an organizational context. The report then critically examines Nestle's HR functions, such as recruitment and selection, motivation, and performance management, in relation to strategic human resource initiatives. Recommendations are made to enhance these functions and align them with the company's strategic goals. Finally, the report evaluates available off-the-shelf HRM software programs based on criteria identified in the previous tasks, offering valuable insights for optimizing HR practices and fostering a competitive edge. The report emphasizes the crucial role of HRM in achieving organizational success, highlighting the importance of employee motivation, effective performance management, and strategic alignment of HR functions.

Running Head: MANAGING HUMAN CAPITAL AND LEADERSHIP 0
Human Resource management

MANAGING HUMAN CAPITAL AND LEADERSHIP 1
Abstract
Human resource management is an important part of every organization. There are
various human resource management models in order the stakeholders as well as competence
of those. Human resource of any organization plays various important functions such as
recruitment, selection, motivation. In this paper, the discussion is done on these HR models
and functions of Nestle Company.
Besides this, there are many HR system programs are developed in the organization.
The benefits of these programs are discussed in the programs. Sometimes, there are several
problems occur in the organization that requires effective steps to be taken. In order to
address the issue, motivation of employees is the core aspect that depends on the leadership.
In this paper the discussion will be made on the Nestle Company.

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Task 1
Human resources management models provide an analytical framework to identify the
situational factors, competence, strategic choice levels and stakeholders. It helps Nestle
Company to understand the world for explaining the nature and significance of HR practices.
Human resources management has four models these are as given below-
The Fombrun Model
It is the first model which was founded in 1984. It is a model of Human resource
management which focuses on four functions of management and as well as their relation
with each other. This model is taken into consideration by the Nestle Company. These four
functions are selection, development, appraisal, and rewards. These are the four main
functions of management that is contributed in an organisational effectiveness.
It can be said that, this model is incomplete because it emphases only on those four
functions of Human Resource management and ignore the other contingency and
environmental factors which has a positive impact on Human Resource functions. However,
it has been seen that this model helps the company as an investigated framework to identify
the nature and importance of various HR activities (Collings, Wood and Szamosi, 2018).
The Harvard Model
This Harvard model is focusing on the six critical components of Human Resource
Management. There are some dimensions are included in this model these are situational
factors, stakeholder interest, HR outcomes, choice of HR policies and the long term
consequences (Bratton and Gold, 2017).
The stakeholders interest- Interest of stakeholders is recognise the importance of
trade-offs between the owner, employees. It has been seen that trade-offs existing in among
the other interest group. It is a challenge for a HR manager that requires balancing between
the interest of all the stakeholders for Nestle Company (Marchington, Wilkinson, Donnelly,
and Kynighou, 2016).

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The situational factors- It affects management choice for Human resource strategy.
There are some factor which is included in the model work force individualities, technology
and various laws and social values, labour market (Brewster, Houldsworth, Sparrow and
Vernon, 2016).
HR policy choices- It focuses on the decision of the management and actions in terms
of HRM that can be fully esteemed but if the result from this is collaboration between choices
and constraints. It includes the four HR policies areas:
Employee influence: It means assigning the power, responsibility as well as authority
to people as per their capabilities (Guest, 2017).
 HR flows: These are HR functions such as recruitment, appraisal,
promotion, selection, termination and many more functions.
 Work system: Allocate the work and the position of people.
 Reward system: Payment system for motivation.
These HR policy lead the 4 Cs of HR policy outcomes these ate commitment,
congruence, cost effectiveness and competence.
Long term consequence states the cost of HR policies which is estimated at three
levels. These three levels are organisational, individual and societal. These three levels are
required to analysed by using 4Cs. Stakeholders interest affects human resource management
policy and choices and in turn it impacted by log-term consequences.
The six component of this model is Feedback loop; it states that situational factors can
affect the HRM policy and selections that are influenced by the consequences of long-term.
The guest model
David guest who claims that this model is different from the other model and it is
much better than the other models founds this model in 1997. As per this model, HR manager
has the strategies that increase the demand of some practices, and the execution of those
practices results in positive outcomes. These outcomes included the performance, behavioural
related and monetary rewards (Christensen, Bartman and Van Bever, 2016).
This model focuses on the six components in the logical sequence; these are HR
practices, HR strategy, behavioural outcomes, HR outcomes, financial consequences, and
performance results. The financial results of Nestle Company depend on the performance of

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the employees that result from the action oriented behaviour of employees. The outcome of
behaviour is the result of employee quality and their flexibility. HR practices are variably
interrelated with the organisational strategies. It can be said that this model is superior from
the others that is partly justified because the dynamic of people management is so difficult to
capture them comprehensively.
The Warwick model
The two researchers, Hendry and Pettigrew from Warwick University, founded this
model. From the other management model, the Warwick proposition put emphasis on the five
elements and these are outer context, HRM content (macro environmental factors), HRM
context, Inner context (micro environmental forces), and Business strategy content.
The Warwick model is all about the HR practices, business strategy, the internal and
external contextual in which the process of changes in the workplace take place, activities of
the company take place (Beer, Boselie and Brewster, 2015). It also includes the interaction
between the changes in the both the context and content. It helps in identifying and
classifying the important environmental effects on HRM.
It helps in connecting the internal and external factors which seeks to explore the
stage that how human resource management implement the changes. This model helps the
company to achieve the external and internal performance and growth (Latorre, Guest,
Ramos and Gracia, 2016).
Task 2
HR functions of the organization
There are various HR functions in relation to the strategic human resource initiatives.
It has been seen that if the company do not focus on the HR functions then it can be difficult
to achieve goals and objectives. It is necessary for the company to emphasize on maintaining
the HR functions of the company. The company should focus on many HR functions. The
HR Functions of Nestle Company:
Recruitment and selection
Recruitment is considered as the process through which it can be simple for Nestle
Company to recruit pool of talented candidates. It has been seen that this process is one of the

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important process on which focus should be given so that it can be simple to manage the
entire activities of the company. It has been examined that success of the recruiter and
employment specialists can only be measured when they focus on the number of positions
they fill in a specified time period. It is important for the company to recruit the capable or
talented candidate so that they can perform their job in a best manner. It is important for the
HR to focus on the skills and qualifications at the time of recruiting the candidate for the job.
If right candidate is selected for the right job then it can be easy for the company to achieve
success (Coller, Cordero and Echavarren, 2018).
Recruitment process is considered as the important factor as it helps to recruit the
capable and if capable candidates are selected then it can help to manage the overall activities
of the company. Also it is important to conduct process recruitment process and select those
candidates who are capable and talented enough to manage the overall activities of the
company. Selection is the process through which the right person can be selected and on this
step it is important to focus on the analytical skill of the employees as it can help to know the
thinking capacity of person towards the activities (Taylor, 2014).
So, it has been recommended that improvement in the process of recruitment in Nestle
Company can be made by testing the candidates by giving mock test as it can show the
capability of the individual towards their job. Also it can help to know the knowledge or the
skill which is possessed by him or her. This step should be taken into consideration with
proper care so that right person can be given right job.
Motivation
It is also considered as one of the important function of HR. It has been seen that if
employees in the workplace are not motivated then it can be difficult for the company to
achieve success in the competitive market. Motivation plays great role in achieving success
in the high level of competition which is prevailing in the market. Motivated employees are
considered as the asset of the company as they give their best towards the organizational
activities and also it helps the company to achieve success in the market (Leary and
Baumeister, 2017).
So, it is the duty of the HR to motivate the employees to employees by focusing on
the needs and wants. It has been seen that HR should take into consideration the Maslow
Hierarchy of needs theory so that it can be easy to motivate the employees in the workplace.

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This theory can help to analyse the needs and wants of the employees. So, it is important for
the HR to focus on this theory so that employees can be motivated in the workplace and this
function is only considered by the HR of the organization. This theory can help to analyze
the key aspects which are necessary for the employees and it has been seen that through this
growth can be attained by the company in the competitive market (Pinder, 2014).
It is the responsibility of the HR to motivate the employees so that they can give their
best towards the activities of the company. Also it is important for the HR to focus on
considering various aspects like rewards and appraisal so that employees can be motivate.
Motivation in the workplace can be improved when HR focuses on considering the
factors like appraisal, rewards and appreciation. It is necessary for the HR to promote the
employees so that it can be easy to boost the level of motivation in the employees. If
company wants to survive in the high level of competition and want to achieve competitive
advantage then the best strategy that should be considered is related with motivation (Miner,
2015).
Manage Performance
The next function of the HR is related to performance. It has been seen that this
function is one of the important function that is important to be considered so that
competitive advantage can be attained. If employees in the workplace are not able to perform
in a proper manner then it has been seen that it is the responsibility of the HR to boost their
morale so that they can give their best.
Also it is the duty of the HR to give training to the employees so that the employees
can acquire knowledge and skills which can help to manage the overall outcome of the
company. It is necessary in the workplace to manage the performance of the employees as it
can help to accomplish goals and objectives.
The human resource of Nestle Company should take into consideration the
improvement plans so that it can be easy to manage the activities of the employees. Also the
performance of the employees can be maintained if focus is given on behavior of the
employees. The HR should take into consideration the behavior of the employees so that
improvement can be made as it directly affects the overall environment of the company.

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Training
Training is considered as the important aspect that can help to boost the morale of the
employees. Through training it can be simple for the Nestle Company to enhance the skills
and knowledge of the employees in the work which is given to them. Training programs
should be considered by the company so that it can be easy for the employees to accept the
change and also it will help to enhance the responsibilities of the company towards the work.
Training which is given to the employees help to ensure that the employees are
capable enough to manage the work according to the acceptable levels. The process of
training can be improved by taking into consideration various innovative skills or techniques
so that it can be simple for the employees to accomplish their objectives (Sung and Choi,
2014).
Career planning and career development
Next function of the HR is related to career planning and career development. It has
been that career planning operations helps to focus on the overall potential of the employees
so that it can be easy to achieve growth and development. The function of the HR manager in
Nestle Company is to assist the employees so that it can be easy to evaluate their strength and
weakness. If strength is taken into consideration then it can be simple for the HR to guide the
employees accordingly.
It is the duty of the HR to give higher position to the employees and it can only be
done when they focus on the overall capability of the individual. It also helps to polish the
skills of the employees and maintain the work life. It is important for the HR manager to
focus on developing the career of the employees so that it can be simple to attain the positive
outcome.
It has been recommended that Nestle Company should focus on developing the career
of the individual.It is necessary to focus on giving them training by considering new
techniques so that growth can be maintained in the high level of competition (Anitha, 2014).
Maintaining the records
It is also one of the functions of the HR in the workplace. It is essential to maintain
the records of the people so that activities can be completed in a smooth manner. It has been
seen that in context to IRS, the company should focus on maintaining the records in relation

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to income, expenses and purchases. To maintain the records of the company is the
responsibility of the HR as it can directly impact the overall functioning of the company.
If the company wants to manage the entire activities it has been seen that records are
important to be controlled so that growth can be attained in the high competitive market. The
process of maintaining the records can be managed or improved if company focuses on doing
inspection on every week. It has been seen that it is the duty of the Nestle Company to
maintain and give each detail as it can help the company to grow in the high competitive
market (Pundt and Herrmann, 2015).
Maintaining relation of the employees
It is also one of the important function of the HR as it has been seen that the
communication with HR take place in the workplace. The HR has the duty to resolve the
conflicts which take place in the workplace and also proper coordination is important to be
maintained. The HR should focus on maintaining the relations so that positive environment
can be created in the workplace.
To create positive environment it has been recommended that fun games should be
played in the workplace as it help to enhance communication in the workplace. There should
be specific rules and regulations that should be implemented by the HR so that it can be easy
to manage the overall activities of the company (Mone and London, 2018).
Labor laws
Next function of the HR is to consider the labor laws so that it can be easy to manage
the overall activities of the company. It has been seen that HR of the Nestle Company should
ensure that all the activities are conducted within the specified laws so that it can be easy to
achieve growth. It has been recommended that HR should impose penalty on the employees
if they do not follow any rules and regulations. It is necessary for the company to focus on
maintaining the laws in the workplace as it can impact the overall activities of the company
(Nica, Manole and Potcovaru, 2016).
So it can be concluded that HR should focus on considering all the functions so that it
can be easy to accomplish goals and objectives. HR is considered as an important part of the
company and they are only responsible to manage the entire activities of the company. If HR
manages the entire activities then it can be easy for the company focus on the overall goals.

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Employees of the company are managed with the help of the employees and it has been seen
that if HR is not right on their part the employees will also face many issues in the workplace.
Task 3
Many software programs of Human resource management are beneficial for the
Nestle Company. Human resource management of Nestle Company work together so that
goals can be attained. There are many benefits of implementing HR software is in the
workplace such as productivity, Morale and reduced the errors. It is the best way to keep the
work smoothly in the organisation. There are number of software that is used by the Human
resource department as given below:
ADP Workforce Now
It is a human capital management solution for the organisation those have more than
50 employees. The capabilities of this software are that it handles the entire payroll, talent
management, benefits, time, compliance, benchmarking and labour management. It is
beneficial for the organisation because it helps to motivate the employees. Incentives,
rewards are the main source to motivate the employee towards the organisation activities.
And it is difficult for HR to maintain the document of more than 50 employees due to
difficulties the employees face the challenges such as less bonus and many others. To reduce
these challenges, the company has to maintain the ADP Workforce now that maintains the all
records of an employee. With this software, client of the company also receives the self-
services tools for employees and managers such as widely used ADP mobile app, to access
pay checks, W-2s, benefit information and more. It helps the users to minimise the manual
administrative tasks. This software also integrates with HR and business applications
(Nankervis, Baird, Coffey and Shields, 2016).
Clear Company HRM
It is a software system, which works for human resources in recruiting the teams
across the private and public industries. This software is beneficial for the company because
it connects the applicants with the company. Its applicant tracking system helps the company
in getting the bulk emails, and inviting the applicants for recruitment. This software connects
the new employees on performance management and boarding.

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Social sharing tools, mobile career sites, one-click background checks and referral
management are the features included of this software. It helps the HR because it is difficult
for the HR to find the applicants as per the requirements. Clear company provides 100
supplementary reports that find everything, from employing manager interview rates and cost
for hiring. Its feature onborading solution automates the new hire process from verification to
approve offer letters. It provides dedicates relationship with managers and clients. This
software solves the problem of right recruitment for the company (Petrick, 2017).
Paycor Perform
It is integrated cloud based software which offers the functionality and includes the
entire employee lifecycle. Its lifecycle starts from recruiting to attendance management.
Collectively, the solutions offer the tools for managing recruitment, hiring, payroll, tax
compliances, time, attendance, and compliance reporting activities. It reduces the burden of
HR manager with this it also beneficial for the organisation because it increases the
productivity of the company.
Right person at the right place in right time increases the productivity and efficient
utilising of time improves the productivity as well as the development of the company. This
software allows the recruiters can track prominent candidates, track communication, set the
interview rounds and more. HR teams can easily manage the payroll process, file
compliances requirements and many other works. Administrators can configure the
workflows and divide the responsibilities according to the business’s roles (Darwish, Singh
and Wood, 2016).
Namely
Namely offers a cloud-based solution to manage the human capital of the company. It
helps the midsize companies in managing the compliances and streamlines everything such as
payroll, benefits and talent management (Jamali, El Dirani and Harwood, 2015).
This software is beneficial for HR managers; but it manages the talent management. It
is suitable for those companies that are seeking for the platform that can be constructed to
match their unique infrastructure of the company. It also provides the “namely human
resources information system” in which the company can easily store employee information.
Namley’s talent management helps the company to conduct the paperless on boarding,

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tracking of goals. Besides this, it also conducts performance reviews and many more. It also
handles the taxes and ACA report. Its integrated benefits and administration helps with
enrolment and sending of elections to carriers.
These are the software which helps the company to manage the human resource
management and the other activities of HR managers. It has been seen that the company
achieve their goals by reducing the issues and conflicts in the organisation. Although all the
software which has been discussed is beneficial for the company but the most beneficial
software for Nestle Company can be “namely software” because it helps in many segments
from recruitment to attendance of the employee. As a Human resource manager, the two
software is necessary for the Nestle Company to manage or develop the human capital.
Task 4
Leadership is useful because it tends to makes the big challenges easier to handle.
There are many benefits of leadership which helps the company to motivate and encourage
the employee towards the activities of an organisation. These characteristics are given below:
Vision for the future
An effective leader is that who has a clear idea of its vision for the organization as
well as for employees. An effective leader has the abilities to look into the future of the
company, make clear goals that will help Nestle Company to benefits from those gaols. It
also has to share the vision with others so that the company can achieve the success. By
sharing those goals with employees in best manner, it can motivate the employees to take the
opportunity to take those effective measures so that appropriate action can be taken. It also
enhances the personality of an employee and productivity of the company.
Communication effectively
Effective communication technique is a best way to motivate the employees in an
organization. By setting clear goals and expectation for employees, leaders can motivate its
employees to take interest in various activities of organization. Leaders with great
communication skills are likely to energise its employees in a positive way. An effective
leader knows how to draw out the clear expectation for its employees.