Organisational Behaviour Report: Nestle's Culture and Challenges

This report provides a comprehensive analysis of Nestle's organisational behaviour, delving into its cultural aspects, personality traits of employees, and the motivational strategies employed to enhance employee performance and engagement. The report highlights Nestle's strong corporate culture, emphasizing its focus on nutrition, wellness, and health, as reflected in its products and mission statement. It explores the company's open-door policy and its emphasis on employee performance and collectivism. Furthermore, the report examines the application of the 'Big Five' personality traits to understand employee behaviour and their impact on the company's operations. The report also discusses various motivational approaches, such as incentives, positive work environments, recognition of achievements, and training programs, employed by Nestle to boost employee morale and productivity. Finally, the report addresses the HR challenges faced by Nestle, including organisational changes and individual employee-related issues, and suggests strategies to overcome these challenges to ensure sustained success. This detailed analysis showcases how Nestle's focus on organisational behaviour contributes to its leading position in the global market.

Organisational
Behaviour

Table of Contents
1. INTRODUCTION.......................................................................................................................1
2. Culture Analysis...........................................................................................................................1
3. Personality....................................................................................................................................3
4. Motivational approaches..............................................................................................................4
5. HR challenges faced by Nestle....................................................................................................5
6. CONCLUSION............................................................................................................................6
REFERENCES................................................................................................................................7
Books and Journals.....................................................................................................................7
Online..........................................................................................................................................8

1. INTRODUCTION
In the present era of modernisation and conceptualisation, every company is trying to
maintain a strategic and winning edge in the vast international market. For this purpose, they are
laying their major concern over enhancing and improving its overall business operations in a
highly significant and effective way. Organisations nowadays are focusing on maximising their
sales by improving their overall level of production channels (Bloisi, Cook and Hunsaker,
2007). They are applying the concept of strategic management within their workplace which
shows that the companies are treating its employees as an asset for the company rather than cost,
which helps the workforce to seek higher level of motivation and commitment towards their
work. Doing this enables the entity to gain increased level of production thereby rendering exotic
and premium services to its core customers and gaining higher level of customer satisfaction.
Organisational behaviour also plays a great role in company's success (Turak, 2013.). It can be
described as the study of the activities and behaviour of its individual employee in an effective
and systematic way which helps the company to gain detailed understanding about the major
needs and requirements of its employees within the workplace (Mullins, 2010). This helps the
company to reduce its overall staff turnover thereby retaining the best and eligible candidate
within the workplace.
Considering this fact, Nestle takes into account the concept of organisational behaviour
within its workplace which helps it to gain the leading heights of corporate success. Nestle is one
of the leading beverage and food transnational company in Switzerland. The company deals in
manufacturing exotic products which includes baby food, bottled water, medical food, breakfast
cereals, tea and coffee, ice-cream, dairy products, frozen food and snacks. Currently, it runs its
operations in around 194 countries and have 339,000 employees working under it (Yousefpour
and et.al., 2012). The report will throw light on the culture adopted by Nestle along with the
implementation of various motivational strategies to gain a prominent position in the tough
trading business environment.
2. Culture Analysis
In order to maintain a strong bran recognition in the vital and fast changing corporate
environment, it is very essential for companies to maintain a stable and impressive work culture.
Doing this will help the company to attain its employees within the workplace thereby gaining an
1

overall increase in its sales production channel. With regard to this fact, Nestle, posses a strong
and positive corporate culture within its entire organisational structure which is impressively
reflected by its logo, which says, “Good Food Good Life”. It reflects the reliability and viability
of the products in context with the overall activities and functions within the company. Nestle's
work culture believes that healthy and hygienic food is the major source of attaining a good
health and by considering this fact, the company lays its major concern over rendering Nutrition,
Wellness and Health to its core customers (Tsai and Wu 2010). The said entity further put its
efforts over developing and emphasizing on such aspects. These three crucial elements that are
Nutrition, Wellness and Health can be effectively found in all the products of Nestle and these
elements are also stated in the mission statement of company as well.
Talking in respect with the culture of Nestle, the company has a fascinating culture of
group focused on providing premium and standard services to its customers. The open door
policy is one of the crucial strength of company's culture. Apart from this, the company lays its
vital concern over performance attitude of its employees, marketing orientation along with
collectivism to encourage and motivate its entire workforce to work hard in order to closely and
effectively accomplish the set goals of company's target within the standard time frame.
Furthermore, the company's culture is highly influence by effective management, motivational
and leadership theories which drives the employees towards attaining the company's success in a
highly successful way (Robert and Josse, 2007.). All such theories plays a great role in gaining a
strong sense of commitment, trust, loyalty and confidence among its employees to work hard
with full dedication and effectively contribute towards achieving the organisation's success.
The management of the concerned company focuses on explaining the culture and
atmosphere of the company to its employees and make them aware about their major roles and
responsibilities towards the company's success. Doing this enables the workforce to get a good
understanding of his/her role within the company which allows him to work accordingly in a full
systematic and appropriate manner (Schoemaker, Krupp and Howland, 2013). Furthermore, the
culture of Nestle is positive and friendly and renders the employees with extensive and exotic
opportunities to build their career in the said entity on long term basis. The said entity also
focuses on rendering fascinating employee engagement techniques which enables the employee
to seek higher level of motivation and helps company to reduce its overall staff turnover in a
significant and effective way (Hebb, 2002).
2

3. Personality
Nestle is a large business enterprise that employees good amount of human resources in
the company. They are essential to plan strategies for cited enterprise and execute operations
effectively. Like every private organisation Nestle is interested in maximising profits of the
company. In addition, to create brand image in the market and obtain customer loyalty for long
term. The organisation is itself aware about the fact that human resources are valuable asset to
undertake different business operations simultaneously. Nestle posses various individuals with
different personality and ideologies which need to be gathered in such form that desired
outcomes can be attained (Doloriert, Analoui and Sambrook, 2013). To properly study essential
personality traits required for organisational behaviour management can use ''Big Five'' concept.
It reveals five broad domains that help to understand relationship between personality and
various behaviour. These five factors are assumed to represent basic structure behind all
personality traits, that are specified as follows: Openness: It is first and foremost characteristics required for an individual to develop and
prosper in the cited organisation. It describes intellectual curiosity, creativity, novelty and
preference of a professional to undertake different operations in the company. The
employees and managers are able to communicate effectively when both have intellectual
personality. Conscientiousness: This refers to tendency of expressing things in with full confidence
and aware about activities taking place in external environment. It shows self discipline
of an individual for attainment of desired goals and objectives (Kondalkar, 2007). Extra version: Another factor of '' Big Five'' concept is level of energy an individual
posses to conduct different activities in the organisation. Positive emotions, assertiveness,
sociability and tendency to seek stimulation are included in this factor (Cloud, 2010). Agreeableness: It includes tendency to cooperate with various internal and external
factors of Nestle so that desired outcome can be attained. The employees should agree
ton adjust according to changing market conditions and trends.
 Neuroticism: Emotional stability and control over feelings highlights the last element in
required for organisational personality traits. It represents vulnerability to unpleasant
emotions like anger, anxiety, vulnerability and anxiety.
3

All these personality traits play crucial role in equalising work behaviour and attitude.
The term work behaviour refers to actions one adopts to execute various roles and
responsibilities assigned to him. Nestle not only provides greater employment opportunities to
people but also grow and prosper their career. It helps to improve their professional skills and
abilities which benefits both the professional and organisation. Personality traits like openness,
conscientiousness, extroversion, agreeableness and neuroticism helps individual to deal
effectively with work based problems (Malik, 2010). They are able to understand current issues,
reasons behind it and prepare solutions to improve them. Nestle is able to invest in huge
operations with involvement of experts and professionals. They help in making things easier to
plan and execute. The organisation is able to gain required outcomes that ultimately results in
profit maximization and customer loyalty. Positive and interactive personalities are considered
an advantage to the company as they are always interested in innovating things and ready to take
any risk.
4. Motivational approaches
There are n number of approaches that is used to motivate the employees at Nestle
company, are as follows- Provide incentives :- The mentioned company increase employees motivation level by
providing incentives, there are two types of incentives which can provide by the company
financial and non financial incentives (Amo, 2006). Financial incentives include cash
prizes and gift cards. Non financial incentives includes extra holidays and compressed
work weeks. The company can create individual incentives or group incentives to
motivate employees. Positive work environment :- It also helps to increase the motivation level of the
employees of Nestle company, in this, the company makes their environment familiar so
that the employees can share ideas and views to each other that helps to increase their
performance level and they achieve their goals (Fish, 2004). Recognize achievements :- Recognise achievement is another one approach that is used
by Nestle company to motivate their employees, in this the company gives award like
best performer of the month and certificate for accomplishing team tasks that can be
helpful to increase motivation level of the employees.
4

 Better communications :- Better communication is the best way to enhance motivation
level of the employees and this cited company have skilled and knowledgable person
who have such knowledge that how to communicate, which affect the employees
positively and they perform their task effectively and efficiently to accomplish goals of
the cited company. Offer opportunities :- It is also helpful to motivate employees of the cited company, in
which they give opportunity to their employees so that they perform well and have work
to perform. By offering them opportunities it will help to enhance their future
performance and feel always motivated. Training and development :- Training and development is the process in which newly
hired employees introduce to the work of the company, the mentioned company use both
types of trainings, off the job and on the job trainings for the employees so that they will
motivate and increase their performance level (Kirkwood, 2009). There are development
is for top level management to develop new things in Nestle company.
 Decision making :- To motivate employees Nestle company involves their employees in
decision making so that they can increase knowledge regarding the company.
Participation of the employees in decision making helps to realize the actual position of
their and involve them in those decision that directly affect them.
5. HR challenges faced by Nestle
There are several challenges which is faced by Nestle company, these are as follows- Organisational changes :- Organisational changes related to the inside changes of the
company. And the HR of Nestle company have challenge to introduce change in the
organisation because the company follows traditional trends and sudden change in the
working environment will affect the performance of employees as well as the company.
And these changes also affect the cont trolling cost and restructuring of the company. For
overcome these conditions the HR of the Nestle company should motivate their
employees by giving them rewards and certificates with regards of accept changes
(Bildstein, Gueldenberg and Tjitra, 2013).
 Individual challenges :- in this it is the challenge to the HR of the nestle company that if
they take decisions of an individual basis then it affect to the employee in terms of their
performance level. Empowerment, productivity and job insecurity are the problems
5

which is related to the individual level challenges. To solve these problems HR of the
cited company should give job security and force to empowerment of their employees so
that they accept the challenges as opportunity and also fulfil their needs according to
needs of the company.
6. CONCLUSION
From the above report it can be concluded that, Nestle has effectively managed to
undertake the mechanism of organisational behaviour within its workplace. Doing this has
allowed the said entity to gain higher economies of scale thereby making a prominent and
strategic position in the vital business environment (Bissell and Dolan, 2012). The report has
enabled to gain deep understanding about the crucial concepts of organisational behaviour within
the workplace and has benefited to understand the culture of Nestle in a highly significant way.
Furthermore, the report has helped to gain insight learning regarding the various personality
traits which affects the organisational behaviour and the motivational theories undertaken by
Nestle to enhance its business effectiveness and efficiency in the fast changing corporate world.
6

REFERENCES
Books and Journals
Bloisi, W., Cook, C. W. and Hunsaker, P. I., 2007. Management and Organisational Behaviour.
2nd ed. MCGRAW-HILL Higher Education.
Mullins, L., 2010. Management and Organizational Behavior. 9th ed. Financial Times/Prentice
Hall.
Yousefpour, R. and et.al., 2012. A review of decision-making approaches to handle uncertainty
and risk in adaptive forest management under climate change. Annals of Forest Science.
69(1). pp.1-15.
Tsai, Y. and Wu, S.W., 2010. The relationships between organisational citizenship behaviour,
job satisfaction and turnover intention. Journal of clinical nursing. 19(23‐24). pp.3564-
3574.
Robert, D. and Josse, D., 2007. Signaling and screening of workers’ motivation. Journal of
Economic Behaviour & Organization. 62. Pp. 605–624.
Hebb, O. D., 2002. The Organization of Behavior: A Neuropsychological Theory. Taylor &
Francis.
Doloriert, C. H., Analoui, B. D. and Sambrook, S., 2013. Leadership and knowledge
management in UK ICT organisations. Journal of Management Development. 32(1). pp.4
– 17.
Cloud, R. C., 2010. Epilogue: Change leadership and leadership development. New Directions
for Community Colleges. 3(149). pp.73-79.
Malik, F., 2010. A toolkit to support human resource practice. Personnel Review. 39(3). pp. 287-
307.
Fish, A., 2004. The importance and Relevance of Cross-Cultural management. Cross Cultural
Management: An International Journal. 11. pp.35-38.
Kirkwood, J., 2009. Motivational factors in a push‐pull theory of entrepreneurship. Gender in
Management: An International Journal. 24(5). pp. 346-364.
Bildstein, I., Gueldenberg, S. and Tjitra, H., 2013. Effective leadership of knowledge workers:
results of an intercultural business study. Management Research Review. 36 (8). pp.788 –
804.
7

Bissell, G. and Dolan, P., 2012. Organisational Behaviour for Social Work. Policy Press.
Amo, B. W., 2006. The influence from corporate entrepreneurship and intrapreneurship on white-
collar workers' employee innovation behaviour. International journal of innovation and
learning. 3(3). pp.284-298.
Online
Kondalkar, G. V., 2007. Organizational Behaviour. [PDF]. Available through:
<http://www.iibms.org/pdf/Ebooks/Organizational%20Behaviour.pdf>. [Accessed on 28
th may 2016].
Schoemaker, H. J. P, Krupp, S. and Howland, S., 2013. Strategic Leadership: The Essential
Skills. [Online]. Available through: < http://hbr.org/2013/01/strategic-leadership-the-
esssential-skills/ar/1 >. [Accessed on 28th may 2016].
Turak, A., 2013. Eight Lessons from the Great Man (or Woman) School of Leadership. [Online].
Available through: <http://www.forbes.com/sites/augustturak/2013/04/10/8-lessons-
from-the-great-man-or-woman-school-of-leadership/>. [Assessed on 28 th may 2016].
8