HRM6002: Nestle Strategic HRM, Performance, Labour Market & Reflection

This report delves into the strategic management practices at Nestle, focusing on social and labour market changes impacting the company. It explores the crucial role of the HR department in aligning organizational strategies, managing performance, and addressing social and cultural issues. The report highlights the benefits of effective training and development programs, along with HR practices that enhance organizational performance. Recommendations are provided, referencing SHRM as an industry best practice. A reflective statement is included, offering personal insights on the learning process and its application to real-world scenarios. This comprehensive analysis provides valuable insights into Nestle's approach to HRM and its strategic implications.

STRATEGIC MANAGEMENT
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................2
TASK1............................................................................................................................................2
Q.1 Social and / or labour market changes..................................................................................2
Role of HR department in effective performance management:.................................................4
Q2:...................................................................................................................................................6
Social and cultural issues arising from workforce management:................................................6
Benefits of training and development:........................................................................................7
The role of the HR department in effective performance management:.....................................8
Benefits of HR practices in enhancing organizational performance:..........................................9
Recommendations using SHRM as Industry's best practice:....................................................11
TASK2..........................................................................................................................................11
Reflective Statement.................................................................................................................11
CONCLUSION.............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Nestle is a Swiss multinational company founded in 1866 by Henri Nestle is based in
Vevey, Vaud, Switzerland. It is the most competitive company for processing food and drink
also deals in baby product, pet-food, dairy products, ice-creams and coffee. The largest food
processing company with 352,000 employees generating the revenue of 91.43 billion pounds by
offering its product and services worldwide Nestle.
Strategic Management is the key process of setting goal and procedures with objective of
making organization more competitive. Typical, this management helps in deploying staff and
resources in best possible ways to achieve business goal.
A report for presentation is identifying social and labour market changes in Nestle's
operating environment in current years. Explore the importance of the HR department role and
strategies which are aligning organisation's strategies with examples. The report will elaborate
the social and cultural issues, in additions to benefits of effective training and development .
Furthermore, role of HR department ensuring the effective performance management of all
employees will be explained. In the end report will explain HR practices and recommendations
of best practices which are beneficial in enhancing the productivity of Nestle.
TASK1
Q.1 Social and / or labour market changes
Social or Labour market changes: There are many aspects that can impact the organization
behaviours one of them is market. The market keeps changing and this affects the organization's
environments. The changes that have occurred in the recent years can be identified as: Employee's Turn over: Many workers in the Nestle are the people who are migrants. So
they might leave their job. There are other political, physical and government factors as
that are influencing the workforce (Niedzielski, 2019). The shortage of labour is
influencing the working environment of the Nestle. For recovering the shortage of the
labours they are searching for more talented people who will ensure that they will be
with the company. They are also experimenting with the company policy to deal with
such situations. The Nestle company has started to manage the talent and applying the
big data and supply chain. The goal of the company is greater productivity. So this
dynamic and uncertainty of the employees has lead the Nestle to think about the talent
management within the company.
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 Technological revolution: The technological change is a rapid change and in the result of
this the companies like Nestle has to face global competition and shorter business cycles.
Technology has positive impact on the Nestle. The new emerging technologies are taking
the place of old techniques (Novakova, 2020). The new techniques involve new models
that helps the company to eliminate current market issues (Tian and Ji, 2017). The
technological revolution has one more positive impact and that is the company has
started to think more strategically. One important aspect of the technological revolution
is that people who are technically so not have much experience with the technology are
finding it difficult to deal with such changes. It has affected their working style. Economical Changes: The labour market has changed so much due to pandemic
(Thesen, 2021). Some labours has to drop their jobs also there are people who need the
job. They have increased their per day pay so it has increased the company's cost. Also
the labour has decreased so the productivity has also decreased. The major consideration
is that the labour markets are struggling and also it is difficult to predict the market but
this is motivation for the company to overcome it. The Nestle company will require the
strategic planning to deal with the situation.
Factors Driving the changes: There are many factors that affects the labour markets and leads
to change in the labour market. Those factors can also have an impact on the growth of the
markets. The factors that are driving the changes are as follows: Low Compensation: The labour employers wants to hire labour at some particular salary.
Now, any change in salary will change the demanded quantity of labour (Bach and
Eckman, 2019). If the salary rate is high the companies will hire fewer labour and vice
versa. The change in consumer demand also changes the labour demands. A well-trained
labour causes the increment in the demand by the employers. Technology is one of the
major factors to influence the labour market. As it is now become a substitute of the
labours and replaced the need of the labours. Now the technology demands the skilled
workforce to increase the productivity. So labour demand of employers has also changed
and it has lead the changes in the labour market. Technology and Wage inequity: Economic changes can change the salary and the
quantity of the labours. The new technological wave has a huge impact on the high and
low skilled labours (How is technological advancement changing the labor market?,
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2018). The labours who are highly skilled are getting jobs. But it has reverse impact on
low skilled labour. Due to the technology it has created imbalance in wages of the
labour. It impacts the labour performances and demotivate them. The technological
changes has reduced the mechanical work and increased the pay of high skilled
technicians. The technical revolution made many middle skilled labour to lose their jobs.
The technology has also played an important role in changing the labour market.
 Government Policies and Pandemic: Government often comes with different policies
that leads the changes in markets as well. One of the major aspects that has lead the
economic changes in the market is pandemic. Due to pandemic many workers had to
leave their jobs. The immigrants moved out of the company and this has left the major
impact on the economic status within the company. The government has also applied
some rules and policies that also became a driving factor of change in economics
changes.
Role of HR department in effective performance management:
Performance management is a procedure of online communication between a supervisor
the employees occurring throughout the year to support organizational goals (Pulakos, Mueller-
Hanson and Arad, 2019.). The role of HR in effective performance management in Nestle is as
following: Aligning strategic decisions: Performance management is more than just the
performance appraisal, where HR department uses performance management to align
strategic decisions to measure performances of employees. Uniliver heads focus towards
remuneration, promotion and extending their range from higher to junior levels of
employees to constitute a new setup to empower performance. Goals and standards setting: HR's practice of short term goal setting along with frequent
discussion is more significant than the meetings (Tweedie and Martinov‐Bennie, 2019).
If the employees of Nestle are aware of their performances standards, the management
will find it easy to direct them in the right direction for effective realignment. Defining goals of mangers: HR department defines the goals of managers and
communicate those roles with the employees. It can prove to be a basic ingredient to
foster a structured performance management system. The HR of Nestle define goals of
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managers and communicate same with the employees, so that workforce isclear about the
management responsibilities and structures. Consulting employees: HR department consult the employees during actual decision-
making process, so that employees feel that they are valued and are an integral part of
organization (Walford-Wright and Scott-Jackson, 2018). It makes employees
accountable for their work and jobs in company. The employees at Nestle are involved in
decision-making process so that they feel empowered, for higher productive targets. Understanding finance: It is the duty of HR managers to study the language of finance
as it is the core business language. It enables the HR professionals to interact with their
stakeholders and also allow HR to transform the bare professional position to an
organization's proper business strategic partners. Resolving issues and problems: It is the duty of HR department to have a well-defined
reward management structure, analyzing jobs for every employee (Islam, 2019). They
are also responsible for establishing KPIs, linking employee's professional worth to
market pace and to develop frequent feedback loop for understanding the setbacks faced
by the employees and improving them.
Examples of HR strategies used by Nestle:Nestle is a company where they are using the HR
strategies very effectively in the company for their employees. It is shows the positive impact on
the business (10 Examples of a Successful HR Strategy, 2021). Well defined HR strategies helps
the companies to achieve the long term targets. The main strategies used by the HR department
of Nestle are as follows: Brainstorming Sessions: The company keeps organizing workshops and trainings
seminars for their employees (Korzynski, Mazurek, and Haenlein, 2020). In these
workshops they organize the brainstorming sessions. In these brainstorming sessions the
nestle employees are asked to think critically and put their ideas forward. This helps the
employees to think critically it also increases their problem solving ability. Also it helps
the employees to enhances their productivity as well as their creativity. Feedback: Nestle keeps asking their employees about their valuable feedback to improve
the working of the management. The HR management holds the meetings to discuss
about these feedbacks (Alghamdi, 2020). Nestle finds it important to engage with
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employees regularly monitoring the motivation and opinions for their workers. It creates
a transparency and also create an open discussion about the betterment of the company. Employee Well-being: Nestle believes that the health of the employee is very important.
It keeps organizing the medical camps for their employees. They also have developed a
counselling cell in which they talk about the mental health of the employees and keep
their discussions private. The counsellor is always present in the cell and helps them and
guide them to focus on the works improve their mental health.
Q2:
Social and cultural issues arising from workforce management:
Due to diversity in workplace various cultural and social issues can arise in an
organization which can affect its performance (Matthews, 2018). Various social and cultural
issues which are faced by nestle are following: Communication issues: Nestle has diverse workforce working together to achieve
common organizational goals. It can challenge the communication between all the
employees, as people from different demographics and cultures have different languages,
meanings and pronunciations. It can cause them difficulty to understanding each other
which can cause a significant drop in productivity and team work in the organization. Difficulty in defining diversity: Diversity includes various factors such as religion,
gender, race, disability status, workforce skills and personality types. There are various
ways to categorize these factors, which can be difficult for the companies to identify. To
deal with this issue, Nestle can emphasize and discuss the components along with
confining their definitions. Cognitive biasness and stereotypes: Cognitive biasness refers to the human tendency to
make decisions in certain situations based upon their perception rather than evidence
(Burnham and Harris, 2018). These issues can arise in the chosen organization, as there
is a tendency of employees to stereotype which narrows their view in the organization. It
reduces the potential benefits of diversity. It can arise from processes which are difficult
to distinguish such as motivational factors and social influence.
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 Homophily: Homophily means the tendency of individuals towards similarity in groups.
It is a common issue where the individuals associate and socialize only with others who
are similar to them. This behavior can be reflected in recruitment, hiring process and also
in the informal socialization between the employees of the company. Nestle can tackle
these issues through awareness, clever delegation and promotion of new strategies based
upon the differences.
 Workplace harassment and discrimination: Workplace is an environment where people
with distinct personalities, social status and cultures interact (Bakhri and et.al., 2018).
Although all the employees are given rights to be treated fairly and to feel safe in the
organizational premises but some employees might face harassment or discrimination.
To deal with issue Nestle have adopted various Legislation of employees laws which
eliminates these threats.
Benefits of training and development:
Training and development are the activities undertaken by companies with a view to
enhance the knowledge and skills of its employees by providing information and instructions to
perform a specific activity or job (Armstrong and Landers, 2018). Nestle can conduct training
and development programs because it can provide it following benefits: Employee retention: Retaining employees is a big challenge which Nestle can tackle
through proving training and development to its employees. It can offer various career
development programs in their employment contracts. It which can establish the
employee's sense of value in the company, fostering loyalty and thus attaining employee
retention. Training future leaders and managers: Training and development ensure the
developments of employees to be their future managers. Nestle can conduct the training
and development programs, as it will help its human resource professionals to select their
current employees as future managerial candidates. Company can establish leadership
development programs to ensure that the business is always focusing on organizational
objectives and succession planning through preparing promotable talent. Employee engagement: Employee engagement refers to the commitment of employees
towards their work and organization (Haugen and et.al., 2019). Nestle can conduct
various development programs to keep its employees motivation while certain training
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programs will establish regular re-evaluation of skills, processes and the employees as
well. It can also help in assessment of skills and abilities of employees within a team
which can facilitate the managers to plan development programs to consider potential
gaps. Employee empowerment: It refers to the philosophy of management which focus on
importance of allowing employees, to make independent decisions and acting upon them.
Nestle can provide new training programs as it will facilitate its leaders who inspire and
ignite people's imaginations and utilize them by compelling vision which is more
important currently.
 Fostering teamwork and co-operation: Training provides employees the opportunity to
explore new topics and refine their skills and knowledge which can help them in better
bonding with their teams (Noe and Kodwani, 2018). Nestle can adopt training programs
to foster the coordination and team spirit among the employees so that they can lean on
one another for learning opportunities.
The role of the HR department in effective performance management:
The HR department of Nestle is playing key role in rapid growth of the business by
developing, changing and reinforcing the culture of the organization. HR department's essential
elements covers pay, performance management, development, requirement and on-boarding
processes (Oppong, 2017). Department of HR reinforce the value of business by various
strategics and tactics, which are as following:
HR strategies and their alignment with Nestle strategies Talent Acquisitions- The function of talent acquisitions helps Nestle to choose skill
workforce which are highly talented. Hr department helps company to deal with the
situation of complex market and ability of strong talent acquisition which serve
organization the basic of enhancing capabilities. Training and Learning- Training and development function helps Nestle to bridging the
gap between actual and desired performance of the employees which systematically
improve professionalism (DeNisi and Murphy, 2017). This approach of HR department
helps in enrichment the knowledge and skills through the learning programs which add
value in growth of the company.
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 Employee relations- Nestle has built values of trust and mutual respect by maintaining
individual and collective relationships. Company is establishing these values by ensuring
frequent and direct communication at workplace for example trade unions. Management
of HR team of Nestle maintain and ensure these relations with all employees which
enhance the rapid growth due to encouragements. Performance management- Nestle aims of ensuring high challenges and clear goals to
formulate effective performance management which function plays the HR team. By
effectively rewarding high performance the management encourage and motivate
employee of Nestle (Sadique and Waykole, 2019). This strategy helps in performance
evaluation by fostering personal and professional development such as brainstorming and
encouraging diversity in workforce.
 Total rewards- Nestle attract new hires and retain current employees based in
remuneration and benefits on solid performance, as these recolonizations help in the
growth of employees and encourage their fellows. Nestle conducts various programs
within the social and legal framework of company policies which leads Nestle towards
growth. Therefore, focus on fixed pay and variable pay with key elements such as
benefits and work life environment which ensure the success of the company in long-run.
Benefits of HR practices in enhancing organizational performance:
HR practices are the strategic operations of HR in a company. Nestle uses the following
HR practices which help it in enhancing its organizational performance:
Talent acquisition:
It is the process of commitment of the companies in choosing the talented and skilled
workforce. Nestle's HR practice of talent acquisition enhances its organizational performance as:
 The abilities of strong talent acquisition serves the basis of enhancing, capabilities of the
company to deal with diverse market situations (Tseng and Levy, 2019).
 It helps in maintaining the balance between the higher level of compliance between the
values of individuals with the culture of the company.
 Due to effective recruitment, companies can attract highly talented workforce which can
enhance the skills of inventory of the organization.
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Training and learning:
Training is the procedure of filling the gap between the actual and desired performances
of employee in an organization (Burhan,-Ismael and et.al., 2021). The employees at Nestle are
encouraged to enhance their knowledge, though offering them necessary training programs. The
benefits of this HR practice can be:
 It helps employees in improving their performances and contribute more in
organizational goals.
 It helps the organization to foster teamwork in employees, so that they work as one
towards achievement of the common objectives and attain expertise on various jobs.
Performance management:
The efforts of employees and their commitment towards achieving organization goals is
measured in performance management. Nestle is depended upon the performance work culture
where employees are offered clear understanding, about impact of their work on the company.
The benefits of Performance management practice are:
 It ensures that highly challenging and clear goals are created and performance of
employees is effectively evaluated throughout that performance period.
 It helps in rewarding the high performances and encouraging the low performers to
improve their performances (Raffoni and et.al., 2018).
 It helps the management to encourage diversity in workforce through offering that
opportunity to work on international assignments.
 It helps the company in succession planning and training the next best alternative to fill
the requirements.
Career planning:
Career planning is the technique of HR which is involved in discovering educational,
professional and training opportunities which suits individual employees and their interests.
Nestle practices career planning to help the organization to enhance its performance as:
 It helps the organization to identify skill gap based on information provided by the job
description and specification through job analysis (Tabiu, Pangil and Othman, 2020).
 It assists employees in their career planning by identifying their development need.
Organizational re-structuring:
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