Analyzing Management Perspectives: A Case Study of Nestle's Structure

This report presents a comprehensive analysis of Nestle's management perspectives and organizational behavior. It begins with an introduction to organizational behavior, highlighting its importance in enhancing organizational performance. The report then delves into a case study of Nestle, examining its organizational structure, which is described as a hierarchy and function-based model. The research methodology, including the rationale for selecting Nestle, is also discussed. The report critically analyzes the role of managers in addressing challenges and risks, such as an aging workforce, child labor issues, and ethical concerns, and how Nestle's leaders have responded. Furthermore, it explores the role of ethics and ethical practices within Nestle, emphasizing the company's commitment to principles like zero tolerance for fraud and respect for diversity. The report also examines the role and legitimacy of management functions within Nestle, including planning, organizing, leading, and controlling, and how these functions are influenced by politics and the social environment. The conclusion summarizes the key findings, emphasizing the crucial role of management in Nestle's performance and growth. The report references various academic journals, newspaper articles, and annual reports, to support its findings.

Running head: Management Perspectives 1
Management perspectives

Management Perspectives 2
Contents
Introduction......................................................................................................................................3
Rational for research methodology..................................................................................................3
Case of Nestle..................................................................................................................................4
Organizational structure and theory.................................................................................................4
The role of the manager and their performance to address the challenges and risks......................5
The role of ethics and ethical practice of Nestle..............................................................................6
The role and legitimacy of the management function.....................................................................7
Impacted by politics and the social environment............................................................................8
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

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Introduction
Organizational behaviour is integral component of the organization which seeks an inclusive
understanding of how individuals and organization can enhance the performance of the
organization (Mäntymäki & Riemer, 2016). The case study of Nestle will be chosen in which
organizational structure and theory of it will be described. A rational for the research
methodology will be elaborated to show the reason behind choosing the Nestle. The role and the
functions of the manager will be critically analyzed in the context of describing the risks and
challenges they have to address in today’s changing environment. There are various theories of
organization that help to enhance the productivity of the employees along with the organization.
The impact of values, ethics and diversity on culture of an organization will be defined which
will be helpful for further study. A discussion will be made of the role and legitimacy of the
management function.
Rational for research methodology
It has been analyzed that various researchers have chosen more collaborative approach to case
studies and recognize number of methodologies that have diverse advantages and disadvantages
which are not necessary conflicting but complementary. The aim behind choosing the research
methodology is to gather the information about the case which can be accumulated in relevant
and efficient manner by internet. The selection of case study can be opted as per the purpose of
the study like information oriented selection and random selection. Systematic bias are avoided
by random selection in the sample whereas information oriented selection involve the selection
of the case as per the expectations. The research case study is chosen of Nestle for its effective
organizational behaviour. The leaders of this company are effective to manage the issues for

Management Perspectives 4
which they use effective strategies. The qualitative research is being chosen for analyzing the
case study of Nestle and it has been done with the help of various journal articles, newspaper,
and annual report of the organization and internet sources.
Case of Nestle
Nestle is the world’s biggest food and beverage company that has started its business in 1867.
There are more than 280,000 employees in the Nestle in over 86 countries (Nestle, n.d.). The
main principle of nestle is base on decentralization. The case study of Nestle has been chosen for
this assignment.
Organizational structure and theory
The organizational structure of Nestle is effective as it has adopted the various strategies to
manage the organization in an effective manner. The organizational structure of Nestle is
hierarchy and function based in which National manager is head of specific country who control
entire organization by evaluating their performance.

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Figure 1: organizational; structure of Nestle
Source: (Arslam, 2014).
It has been found that there are number of theories such as classical theory, scientific theory,
bureaucratic theory, modern theory and administrative theory. Nestle has adopted the
administrative theory which is dependent on the departmentalization concept. It defines that the
various activities are focused in the organization to attain the common purpose of the
organization. The major focus of administrative theory within the organization is to improve the
efficient so that the performance of the employees can be done in effective manner and the
process of the organization can be standardized. It has been evaluated that apart from
administrative theory, the contingency theory used by Nestle because this theory assist the
manger to make decisions as per on the situation at hand instead of “one size fits all” method. An
appropriate action is being taken by the manager as per the situation. It is required for the
manager to use leadership approach that involves participation from workers.

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The role of the manager and their performance to address the challenges and risks
Organizations are become advanced due to advanced technology and in such case the role of
manager or leader in the organization is vital to manage the workforce in adequate manner.
Nestle is world’s largest food and beverage company that has faced number of issues or
challenges while operating in worldwide. The company has faced issue of aging workforce and
retirements, child labour and ethical and boycott issues. Nestle CEO Mark Schneide has great
role in reducing the impact of bad image due to these issues in front of customers of Nestle. The
supplier code is introduced by Nestle to maintain the good bonding between suppliers and
company regarding goods. There was another issue of unexpected demand by customers and
inaccuracy of orders numbers in inventory. The leader of the organization has introduced the
Dealer Management system (DMS) which is software application that give tools for managing
the inventory, integration and managing sales. It enhanced the good image between the dealer
and customers. In context of boycott issues which done in late 1970s, the leaders or managers of
Nestle had provided the solution by supporting WHO campaign in introducing complementary
foods (Nestle, 2011). It has been evaluated that the small changes bring the huge impact within
the organization. The Nestle Leadership Program has been developed to provide the training
session to the employees and the company had started to use image of manager as coach. It had
been done in the company because it was the belief of it that coaching works best for
development purposes (Daley, Coyle & Dwyer, 2016).
The role of ethics and ethical practice of Nestle
The ethical principles in Nestle are effective as it cares the each employee of the organization
and underpins the trust of customer. It involves the zero tolerance of fraud corruption and
bribery. Privacy is mattered for the organization that is why the privacy programme is being

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initiated by the company in which company collect, store and utilizes the data to engage with
consumers (Li, 2015). It covers the entire stages of the data processing from the stage of
accumulation to deletion. Diversity is always considered as the sensitive issue, it is vital for the
organization to give respect to the different culture’s people (Downey, Werff, Thomas & Plaut,
2015). The engagement process of Nestle is underpinned with transparency and good faith which
is able to build knowledge and understanding in good manner. However, there are various
leadership theories and styles but Nestle has adopted comprehensive leadership which involves
managing for better outcomes, enhancing the internet talent of the employee and competing with
external environment for progressive growth in the same filed (Obisi, 2011). The major role of
the leader in handling the ethics responsibility within the organization is vital because the
response of the employee as well as customer may impact the entire project of the organization.
The major advantage point of it is more focused towards the prevention of the future generations
that is why it is committed to environmental sustainability. A contextual approach is being taken
in the organization rather than dogmatic one; it entails the pragmatic decisions which are based
on the facts.
The role and legitimacy of the management function
Nestle company has major four management functions such as planning, organizing, leading and
controlling. The decisions are being evaluated by the leaders by keeping considerations of
employees of the organization. The company evaluates the alternatives in an adequate manner
before taking any action. The function of organization is initiated the workforce diversity plan
and health safety plan not only for the customers but also for the employee (Hirsh, 2016). The
leaders of the company have adopted the democratic style which involves the employee in

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making decisions of the company. Various acts are initiated by the company by taking
consideration of the governments and company laws which help leaders of the company to
control the activities of the organization. In context of legitimacy, Nestle initiate and openly
advocates the United Nations Global Compact. It has been recognized by Nestle that
globalization is the cause of leading to the development of international recommendations.
Although, it is considered as the general rule, thee recommendations are defined to governments,
they inescapably influence to the business practices. Nestle has integrated significant
International Labour Organization Conventions. The local laws are respected by Nestle in order
to improve the efficiency of the organization of particular place. It has been evaluated that the
attitude of the leaders of the organization is impactful as they provide the training to the new
employees regarding how to accomplish the task in effective manner without breaching any
company norms (Deresky, 2017).
Impacted by politics and the social environment
It has been found that Nestle is in full of support of the efforts of government for the purpose of
encouraging healthier diets. The profile of the products is improved in Nestle due to changes to
complement the effort of government to build a healthier population. The management functions
of the company can be influenced due to changes in political and social environment as it has
been evaluated that the Nestle is following the laws and legislation as per settlement by
government. Social environment has huge influence on Nestle as it is different of each country
that may influence the working environment of the company (Nestle, 2014). However, the
leaders of Nestle are more focused towards the local test of the particular country or region and it
has been done by them by exploring the market of specific country. It enables them to take
appropriate decision in context of management growth. The changes in political terms can

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impact the entire organizational structure of Nestle (Buettner, 2015). For instance, the
amendments in tax policy will certainly impact the entire products of the company in different
countries. Nestle company had wide issues regarding unethical practices which hampered the
image of the company adversely but the approach of leaders are effective that reduce the impact
of it on the customers.
Conclusion
In the limelight of above discussion, it has been concluded that the management has huge role in
the performance and the growth of the company. The rational of methodology has been provided
to describe the way from where data are collected. The case study of Nestle has been opted for
this assignment as it is world largest Food and Beverage Company that has effective
organizational structure. The role of leaders has been discussed in context of facing issues and
challenges in the organization. The appropriate actions were being taken by leaders to reduce the
impact of adverse condition on the organization which has been elaborated in term of Nestle.

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References
Arslam, A. (2014). Nestle. Retrieved from: https://medium.com/@arhamarslan/nestle-
cf04010833cd.
Buettner, R. (2015). A systematic literature review of crowdsourcing research from a human
resource management perspective. In System Sciences (HICSS), 2015 48th Hawaii
International Conference on (pp. 4609-4618). IEEE.
Daley, J., Coyle, J., & Dwyer, C. (2016). Sheffield Hallam University and Nestlé: Developing
future leaders with the Chartered Manager Degree Apprenticeship–a partnership
approach. Higher Education, Skills and Work-Based Learning, 6(4), 370-377.
Deresky, H. (2017). International management: Managing across borders and cultures. Pearson
Education India.
Downey, S. N., Werff, L., Thomas, K. M., & Plaut, V. C. (2015). The role of diversity practices
and inclusion in promoting trust and employee engagement. Journal of Applied Social
Psychology, 45(1), 35-44.
Hirsh, W. (2016). 8 Growing leaders through career development. Leadership in Organizations:
Current Issues and Key Trends, 137.
Li, T. (2015). Nestle Employee Recruitment Research. International Journal of Business and
Social Science, 6(4).
Macey, W. H., & Schneider, B. (2008). The meaning of employee engagement. Industrial and
organizational Psychology, 1(1), 3-30.

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Mäntymäki, M., & Riemer, K. (2016). Enterprise social networking: A knowledge management
perspective. International Journal of Information Management, 36(6), 1042-1052.
Nestle, (2011). The Nestlé Management and Leadership Principles. Retrieved from:
https://www.nestle.com/asset-library/documents/library/documents/people/management-
leadership-principles-en.pdf
Nestle, (2014). A Quick Introduction of Nestle. Retrieved from:
https://managementtheoriesnestle.wordpress.com/.
Nestle, (n.d.). Nestlé Corporate Business Principles. Retrieved on 27th March, 2018, from:
https://www.nestle.co.za/common/documents/about/nestle_corporate_business_principles
.pdf.
Obisi, C. (2011). Employee training and development in Nigerian organisaitons: Some
observations and agenda for research. Australian Journal of Business and Management
Research, 1(9), 82.