Strategic HRM: Nestle's HR Priorities and Corporate Alignment

This essay provides an analysis of strategic human resource management (SHRM) at Nestle, focusing on how HR strategy is embedded within the corporate plan to achieve business objectives. It explores the rationale behind integrating HR with corporate strategy, emphasizing the importance of aligning HR practices with business goals to attract, retain, and develop talent. The essay also discusses HR priorities at the departmental level, such as training and development programs, and addresses contemporary HR challenges faced by Nestle, including communication barriers and compensation discrimination. Furthermore, it highlights major HR-related achievements, such as developing healthy employee relations and implementing performance monitoring tools. The analysis underscores the need for Nestle to enhance its HR practices for improved organizational performance and employee satisfaction.

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Strategic human resource management
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Table of Contents
Introduction......................................................................................................................................1
Embedding HR strategy in the cooperate or strategic plan.............................................................2
Rationale of embedding HR in the corporate or strategic plan.......................................................3
HR or workforce related priority at departmental level...................................................................4
Contemporary HR challenges..........................................................................................................5
Major HR related achievements......................................................................................................6
Conclusion.......................................................................................................................................7
Reference list...................................................................................................................................8

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Introduction
The essay demonstrates the strategic human resource management for the business
organization Nestle and its ability to develop a right corporate strategy to sustain in the business
environment. The human resource management will be possible by consulting with both the
internal and external stakeholders and then collect the trend data and information for analyzing
the performance measures needed to achieve the business objectives. An accurate HR plan shall
be developed for developing the workforce and ensure the recruitment and selection of best
candidates who can maintain flexibility by creating a positive culture and good working
condition at Nestle, Australia (nestle.com.au, 2018).
Embedding HR strategy in the cooperate or strategic plan
By embedding or integrating the HR strategy in the corporate or strategic plan, it would
be easy for analyzing the supply and demand for the future workers, furthermore determine the
actions that could be necessary for eliminating the gaps faced. The HR strategies are aligned with
the corporate or strategic plan for enabling sync with the business goals and objectives and
furthermore manage the core value and beliefs for continuous performance measurement and
evaluation. This could result in attracting and retaining the new and existing workers as well as
achieve the full potential of the business and its people. An ethical and high performance culture
would be created, which would further result in making the employees feel interested and valued
(Bratton & Gold, 2017). It would drive their performances and even make sure to manage the
HR matters by combining the local, regional and global HR polices. The corporate or strategic
plan could also involve following the Nestle Codes of business conduct, furthermore remain
ethical and create good working conditions to treat the employees equally from every aspect. By
embedding the HR strategy with the corporate or strategic plan, it could be effective to develop

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trust and loyalty and ensure compliance with the external standards including the Global
Compact through the CARE program including the Compliance Assessment of Human
resources, Occupational health and safety, Environmental and Business Integrity (Brewster,
2017).
The corporate objectives include achieving better financial stability and competitive
advantage and thus, it could be important for Nestle to enable creativity and innovation, which
would be possible through higher level of engagement of the employees. “Win with and through
our people” is the main motive behind the major 3 strategies of the organization considering its
structure, capability and level of engagement. The corporate engagement strategy could also be a
major source of competitive advantage in business that would drive the performances of the
employees largely too (Cascio & Boudreau, 2016). The HR strategies were embedded to
empower a good culture and at the same time, conduct a situational analysis to analyze the
supplies and demands of human resources, furthermore close any gaps faced. Performance
appraisals should be done to understand the level of skills, knowledge and competencies of the
individuals and determine the key performance indicators too for managing the leadership
principles and at the same time, facilitate the development of systematic procedures for
enhancing the skills, knowledge and expertise of carrying out job responsibilities with
proficiency (nestle.com.au, 2018). The individuals working at Nestle would be paid equally
along with providing rewards and incentives for keeping them motivated and encouraged to
perform to their potential (Cohen, 2015).

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Rationale of embedding HR in the corporate or strategic plan
The rationale of embedding HR strategy in the corporate or strategic plan would be to
ensure proper management of the human resources along with effective procedures for
recruitment, selection, deployment of staffs along with managing the dismissal of staffs. The
rationale would also be to adapt to the internal and external recruitment and selection process for
maximizing the internal capability and deliver a clear path for maintaining consistency all
throughout the business operations and processes at Nestle, Australia (Jackson, Schuler & Jiang,
2014). The rationale of embedding HR in the corporate or strategic plan could also be to adhere
to the values and management principles, furthermore respect the culture and maintain diversity
all throughout. The company would embrace a rich culture and social diversity and this would
result in gaining long-term profit and sustainability in business (Kramar, 2014). Nestle, being
one of the leading brands in Australia could also manage diversity by recruiting and selecting a
diverse range of people from different backgrounds and cultures to promote global business
expansion too. According to the company policies and principles, every employees should be
treated equally and must be valued, recognized and rewarded based on their skills, talent and
contribution to the organization (Nagendra & Deshpande, 2014). Nestle prevented any forms of
discrimination within the workplace and even ensured that the business values and ethics were
maintained. All these could be the major aspects related to the rationale of embedding the HR
strategy in the corporate or strategic plan (Neves, Almeida & Velez, 2018).
HR or workforce related priority at departmental level
The HR or workforce related priority at the departmental level could be focused on
training and developmental programs along with the decentralization for gaining interest in
behaviors, values, beliefs and actions undertaken by the organization. This would help in

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creating trust and loyalty among the customers, furthermore provide additional guidance and
support to the individuals for their well-being (O'Brien & Linehan, 2014). The HR or workforce
related priority could also reflect the professionalism as well as manage responsible attitudes and
behaviors, furthermore recruit and select the most suitable individuals and provide appropriate
training sessions accordingly too. The leadership skills and knowledge are relevant HR or
workforce related priorities at the departmental level that could also keep the staffs motivated
and encouraged to perform to their potential. Engagement of employees must be necessary at
Nestle for maintaining a good culture and at the same time, enhance their level of interest to
accomplish the business goals and objectives with efficacy (Park et al., 2017). HR or workforce
related priority would help in managing the recruitment and selection processes effectively and
even match the values of candidates with the company’s culture, furthermore manage
recruitment at various departmental levels including the head office and at the different branches
(Reilly & Williams, 2016).
Contemporary HR challenges
Nestle is the largest food organization and has developed its strong customer base in the
international market. In the current scenario, the company is facing various challenges due to its
improper management in Human resource management. As the company provides its services to
the all over the country, therefore it is facing the challenges due to lack of proper operation. It
has been identified that communication has become as an important barrier for this company. For
its popularity, it has grabbed the attention of large number of employers. However, the
employees, who have come from other countries are facing issues regarding communication with
the coworkers and managers in Australia (Sims & Quatro, 2015). Some religious issues are also
affecting the organizational environment. Due to this reason the HR manager of the company is

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facing to deal with the employees. The employees are not able to discuss their demands and
problems with the managers, which has created major communication gap. On the other hand,
Nestle Australia has faced issues regarding its improper management in compensation policies. It
has been identified that most of the employees have faced the issues regarding compensation
discrimination (Singh & Dhawan, 2013). This kind of discrimination in the organization de-
motivate the employees, which directly impacts on the productivity of the company. Hence, this
can be said that the initiative of HR managers for engaging the employees towards the
organization, faces disappointment. As the study has repeatedly discussed the popularity and
large customer base of the company, therefore due to improper HR management conflicts among
the department's increase (Stone & Deadrick, 2015). As its result, the harassment, bullying and
other disappointing environment arise in the organization. The study has identified that most of
the times the finance department employee of Nestle is being provided marketing allowance,
bonus, promotion, salary increment and many more. On the other hand, the rate of increment is
very slow in the sales department. This creates discrimination in the organization. Therefore this
can be identified in this study that due to improper distribution of compensation and lack of
monitoring, HR department of Nestle Australia faces various problems (Ye et al., 2015).
Major HR related achievements
After analyzing the entire study, this can be said that in order to deal with the challenges,
the company named Nestle needs to focus on developing HR strategies in the organization. The
HR managers of the company have become more conscious about developing healthy relations
with the employees. They have decided to involve the employees in decision making process. As
its result, the employees who had lost their faith in the organization will be more active towards
its development. Hence, this can be said that this motivational practice will be able to provide

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loyal employees to the company (Kapoor & Kabra, 2014). On the other hand, it has also been
mentioned in this study that the employees are facing issues regarding communication.
Therefore, the HR department of Nestle has decided to recruit the employees from the local
people. It has also decided to send the employees to the different branch of Nestle, where they
will get same people to whom they can communicate (Weiss, 2016). Through this process,
cultural discrimination can be reduced without affecting the organizational productivity. It has
also been mentioned in this study that due to compensation related issues, the conflicts among
the employees' increases. Therefore, the HR department of Nestle has decided to introduce
performance monitoring tool in the organization through this process the productivity and
performance of the employees can be easily analyzed (Reichel & Lazarova, 2013). The HR
department has changed the compensation bonus and promotional policies of the organization.
This has played an important role to reduce the organizational discrimination (nestle.com.au,
2018).
Therefore, this can be said that t after implementing these strategies, the Human resource
department of Nestle has successfully developed healthy environment in the organization. On the
other hand, it has also been mentioned in this study that after introducing the performance
monitoring tool, the employees have become more conscious about their productivity. This can
be said that by motivating the employees towards their work (Sozen et al., 2016).
Conclusion
In this study, it has been identified that the company named Nestle needs to focus on developing
its HR practices with more efficiency. The study has pointed out major challenges faced by the
HR department of this company. In order to manage the challenges, the HR department has taken

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various initiatives. If the employee recruitment and performance monitoring plan can be
successfully implemented, this will bring huge profitability to the company.

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Reference list
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Cohen, D.J., (2015). HR past, present and future: A call for consistent practices and a focus on
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