Effective HRM Strategies for Improved Productivity at Nestle

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HUMAN RESOURCE MANAGEMENT
NESTLE

Table of Contents
INTRODUCTION.....................................................................................................................................2
LO1........................................................................................................................................................3
P1 EXPLAINING PURPOSE AND THE FUNCTIONS OF HRM, APPLICABLE TO WORKFORCE PLANNING
AND RESOURCING.............................................................................................................................3
M1 ASSESS THE FUNCTIONS OF HRM WHICH CAN FULFILL BUSINESS OBJECTIVES AND PROVIDE
TALENT AND SKILLS...........................................................................................................................5
P2 & M2 EXPLAIN AND EVALUATE STRENGTHS AND WEAKNESSES OF VARIOUS APPROACHES FOR
RECRUITMENT AND SELECTION........................................................................................................6
LO2........................................................................................................................................................8
P3 EXPLAIN THE BENEFITS OF DIFFERENT HRM PRACTICES WITHIN A COMPANY FOR EMPLOYER
AND EMPLOYEES BOTH.....................................................................................................................8
M3 EXPLORING DIFFERENT METHOD USED IN HRM PRACTICES, PROVIDING SPECIFIC EXAMPLES. .9
P4 EVALUATE THE EFFECTIVENESS OF VARIOUS HRM PRACTICE FOR IMPROVING PROFIT AND
PRODUCTIVITY................................................................................................................................10
LO3......................................................................................................................................................12
P5 ANALYZING THE USEFULNESS OF RELATIONSHIP WITH THE EMPLOYEES IN THE RELATION WITH
DECISION-MAKING OF HRM............................................................................................................12
M4 EVALUATE THE IMPORTANT ASPECT OF EMPLOYEE RELATION MANAGEMENT AND EMPLOYEE
LEGISLATION THE AFFECT HRM DECISION-MAKING........................................................................12
P6 IDENTIFYING THE KEY COMPONENTS OF EMPLOYMENT LEGISLATION AND THE ITS EFFECT OF
DECISION MAKING OF HRM............................................................................................................13
LO4......................................................................................................................................................15
P7 THE USE OF DIFFERENT PRACTICES RELATED TO HUMAN RESOURCE MANAGEMENT IN A
WORK-RELATED CONTEXT BY USING SPECIFIC EXAMPLES..............................................................15
M5 THE APPLICATION OF HRM IS PRESENTED WITH THE HELP OF A RATIONALE...........................18
CONCLUSION.......................................................................................................................................20
REFERENCES........................................................................................................................................21
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INTRODUCTION
The report discussed the concept of human resource management and its functions in the
business organization. The purpose of human resource management is analyzed along with
its scope in the company. The process of recruitment and selection is examined along with
their strengths and weaknesses. The advantages and disadvantages of the recruitment and
selection process of the company are analyzed in the report. The benefits of training and
development program within the company for the improvement of employees are
explained in the report. The role and importance of maintenance of the employee
relationships within the business enterprise are analyzed.
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LO1
P1 EXPLAINING PURPOSE AND THE FUNCTIONS OF HRM,
APPLICABLE TO WORKFORCE PLANNING AND
RESOURCING
Human resource management is an essential function of the business organization which is
a concern with recruiting, selecting, managing, training, and development of the workforce
and employees of the company (Rouse, 2019).
Scope of HRM
Personnel aspect- the scope of HRM include recruitment, training, selection, development,
productivity, layoff, remuneration, planning, and promotion of manpower.
Welfare aspect- the amenities and other working facilities given to the employees which
include housing, transport, medical, education, safety, restrooms, etc.
Industrial relations aspect- disciplinary actions, settlement of disputes, joint consultation,
union-management relations, collective bargaining, etc. are included in industrial relation
aspect.
Main functions and activities of HRM
Job analysis
The information about the duties and responsibilities along with the skills and capabilities of
employees and workforce of the company. The requirements of the job and different
aspects of the job is given in the job analysis (Heathfield, 2019).
Recruitment
Recruitment is the process where the company encourages more and more candidates to
participate in the process of recruitment and selection. It is a process of hiring right and
skilled employees in the company according to their capabilities and requirements of a
particular job vacancy (Balle, 2019).
Selection
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The process of screening within the company is known as the selection process where the
candidates chosen by the management as per their skills and capabilities. Selection is a
process which starts at the point when the recruitment ends where a suitable candidate is
chosen from a pool of qualified candidates (Mayhew, 2019).
Training and Development
Training and Development are the programs organized by the business organization with a
motive to improve the work performances of the employees within the company. It is a
result of specific skills and knowledge required by the employees in the changing work
environment and technology.
Best fit approach v/s best practice
BEST PRACTICE BEST FIT
The relationship between the performances
of employees which describe the result of
organizational with the human resource
practices is analyzed in best practice
approach.
The result and impact of vertical integration
are analyzed by exploring the relationship
between strategic management and human
resource management in the best-fit
approach.
The main motive of this approach is to
mark the results of Human resource
practice in terms of organizational
performances.
The main motive of this approach is to fulfill
the needs and requirements of both the
business and its workforce.
Hard and soft models of Human resource management
Hard HRM- is the HRM practice where the employees are considered as the resource of
production and passive asset of the company. The employees are considered incompatible
of trade unions with the business organization.
Soft HRM-is the HRM practice where the participation and communication are made with
the employees and various kinds of employee representation such as unions are started
within the company.
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Workforce planning is the process where the HR manager forecast the requirement of the
workforce for the business. They ensure the right people at the right job at the right time
and right place within the company (Louch, 2014).
M1 ASSESS THE FUNCTIONS OF HRM WHICH CAN
FULFILL BUSINESS OBJECTIVES AND PROVIDE TALENT
AND SKILLS
The main objectives of recruitment are as follows:
 To motivate a large number of candidates to apply for the vacancies.
 To find and employ skilled employees for the company.
 To conduct fresh, fair, and legal research of workforce and employees.
 To build a positive impression of the recruitment process.
There are many skills and capabilities required by the human resource manager of Nestle
which are described as follows:
Budgeting skills
The skills and capabilities to plan, manage and control the budgets of the business
organization by making an effective business decision are known as budgeting skills.
Organization skills
The human resource manager should have the skills of planning, staffing, organizing,
training, and keeping records of human resources of Nestle which are known as organizing
skills.
Training and development skills
Training and development skills are the skills of giving training to the employees in order to
enhance their capabilities and increase their work performances. The different types of
sources for recruitment involves mainly internal and external recruitment which are
discussed below:
The different types of sources for recruitment involves mainly internal and external
recruitment which are discussed below:
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Internal recruitment
The recruitment of employees is done on the basis of their experience and seniority and the
existing employees are considered for the process of recruitment in internal recruitment.
For example, transfer, references, promotion, etc.
External recruitment
The recruitment of the employees is done externally on the basis of their qualification and
skills is known as external recruitment. For examples, recruitment agencies, casual callers,
management consultant, etc.
P2 & M2 EXPLAIN AND EVALUATE STRENGTHS AND
WEAKNESSES OF VARIOUS APPROACHES FOR
RECRUITMENT AND SELECTION
There are various methods which can be used by the company for recruiting and selecting a
suitable candidate for a particular job position within the business. The strengths and
weaknesses of different approaches are also described as follows along with the methods:
Online job portal and websites
The website and online job portal is a method of recruitment and selection where the
information about the job requirements of various companies. The strength of this method
is a large number of applicants can be approached within low cost but the weakness is that
it is not accessible by people other than employees, partner, contractors, etc.
Recruitment agencies
Recruitment agencies are the experts which help in connecting the company with suitable
candidates. The strengths are that the company get specialist knowledge for hiring
employees and weakness is that the cost and expense are very high (Zojceska, 2018).
Employee referral programs
In this method, the employees are hired with the help of references given by existing
employees of the company. The strength is that it increases the retention rate of employees
and weakness is that it can give rise to the charges of discrimination with the employees.
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INDUCTION AND SOCIALIZATION
Induction is the process where the fresh employees are introduced to the company and
made understand the work culture and nature of the company. There are many issues
which can reduce the effectiveness of orientation and induction program:
 Lack of proper communication with the existing employees of the business entity.
 Lack of interest and awareness about the working condition of the company.
 Lack of planning and performance along with poor execution of the induction
program.
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LO2
P3 EXPLAIN THE BENEFITS OF DIFFERENT HRM
PRACTICES WITHIN A COMPANY FOR EMPLOYER AND
EMPLOYEES BOTH
Differentiation between training and development are given as follows:
Basis Training Development
Meaning Training is a process and
method through the skills
and capabilities of
employees for a particular
task is enhanced.
Development is the method
through which the overall
growth and development of
employees are achieved
within the company.
Objective To improve current
performances of working
within the company.
To enhance the inner
strengths and capabilities of
employees for facing future
challenges.
Term It is a short term process. It is a long term process.
Orientation Training is oriented to the
current job and work of the
employees.
Development is concerned
with the overall career and
growth of the individual.
The advantages of various HRM practice both for the employees and employer of Nestle are
discussed below:
Employee Relations
Employee relation is the process of developing a strong interpersonal relationship with the
employees of the company by HR management. The employers of Nestle can get the benefit of
support and participation of employees in the decision making and other processes of the
company. The employees of Nestle get motivation and encouragement to improve their work
performance.
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Training and Development
Training and development is the program organized by the HR manager of the company for
improving the skills and capabilities of its workforce. The employer gets the benefits of
achieving goals and objectives of Nestle on time without any wastage and employees of Nestle
can get the advantage of updated skills and knowledge.
There are different types of training which include induction training which given to new
employees to make them familiar with the organization, job instruction training which is given
to demonstrated a particular job, and apprenticeship training which is given for work of
specified time.
M3 EXPLORING DIFFERENT METHOD USED IN HRM
PRACTICES, PROVIDING SPECIFIC EXAMPLES
Reward management system
Reward system is the method through the employees are motivated to work better for
achieving their goals and objective along with the objectives of the company. It is the financial
and non-financial rewards given to the employees for encouraging them.
Workforce planning
It is the method of HRM practice where the HR manager plan and manage a different
workforce of the company. The HR manager of Nestle can use this method for analyzing the
requirement and need of employees along with their capabilities and skills.
Recruitment and selection
It is the method through which the HR manager of Nestle can bring the right people at the
right time at the right place by the process of recruitment and selection. It includes the
process of attracting a large number to candidates to choose from according to their skills.
INTRINSIC AND EXTRINSIC REWARD SYSTEM
The intrinsic factors such as challenging task, urgent work, higher rank, etc. are qualitative in
nature which increases the motivation level of the employees.
The extrinsic factors such as high pay, paid leaves, bonuses, recreational plans, etc. are
quantitative in nature which increases motivation and retention level of employees.
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P4 EVALUATE THE EFFECTIVENESS OF VARIOUS HRM
PRACTICE FOR IMPROVING PROFIT AND PRODUCTIVITY
The advantages of different HRM practices for enhancing profit and productivity of Nestle are
analyzed below:
 The threats of legal litigations on Nestle can be reduced and the reputation of the brand
of the company is maintained in the market.
 The goals and objectives of Nestle are achieved effectively with the help of HRM
practices.
 The retention rate of employees is increased by improving the satisfaction level and
meeting their individual goals.
 The conflicts of the employees and between employers and employees are reduced
which promote a healthy work environment within Nestle.
The link between motivational theory and reward
The motivational theory lays emphasis on the motivational planning for the employees of
Nestle which contain an essential feature of reward mechanism within the company. There
are many motivational theories which include Maslow’s, Herzberg’s, McClelland’s and
McGregor’s theories which suggest various financial and non-financial methods of
encouraging employees. Nestle can use these methods for improving work performances of
the employees and the workforce.
There are many techniques of job design an extension which can be used by Nestle which
include:
Job rotation includes shifting of work and job from one job to another within the company
without changing job position.
The job specification is a method where the job is divided into smaller parts for achieving
simplification and specialized.
Job enrichment is the method of designing the job in a way that the employees are given
more power and control for his work.
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