HRM533
INTRODUCTION TO HUMAN RESOURSE
MANAGEMENT
GROUP
ASSIGNMENT:
COMPANY: NESTLE
MALAYSIA
TABLE OF
CONTENT
Pages
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TABLE
OF CONTENT
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2
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CHAPTER
1 INTRODUCTION
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1.1
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Background
of the company
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3
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1.2
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Objective
of the company
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5
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1.3
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Vision
And Mission Statement
|
5
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1.4
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Corporate
Business Principle
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6
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CHAPTER
2 HUMAN RESOURCE MANAGEMENT
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2.1
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Responsibilities
for Human Resources Team
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1.
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Area
Human Resources Manager
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8
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2.
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Human
Resources Manager
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8
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3.
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Human
Resources Associates
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9
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2.2
|
Nestle
HRM Effectiveness
|
9
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1.
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Staffing
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9
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2.
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Compensation
|
10
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3.
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Benefits
|
10
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|
REFERENCE
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11
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CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE COMPANY
Nestle is one of the
leading Food and Nutrition Company in the world. Nestle has headquarters in
Vevey, Switzerland. The business of nestle is supported by its strong network
in more than 86 countries with more than 500 factories. Along with that the business
also gets the benefit of its international R&D network. The Nestle
factories are operating in the different countries of such as Asia, America,
Africa, Europe, and Oceania. As the company is in the sector of food and
nutrition, it remains sensitive to being a company dedicated to food from the
beginning, Nestle remains sensitive to culinary and eating habits, and responds
to specific nutritional problems, whilst also setting and matching new trends
such as growing out-of-home consumption and caring about the well-being of its
consumers.
Figure 1: The logo of Nestle Malaysia
Henri Nestle was one of the first Swiss
manufacturers to build up a brand with the help of a logo. The original Nestle
trademark was based on his family's coat of arms which featured a single bird
sitting on a nest. This was a reference to the family name which means ‘nest’
in German. Henri Nestle adapted the coat of arms by adding three young birds
being fed by a mother to create a visual link between his name and his company’s
infant cereal products. He began using the image as a trademark in 1868. Today,
the familiar bird’s nest logo continues to be used on Nestlé products worldwide
in a modified form. Henri Nestlé was a Swiss pharmacist who developed the
world’s first milk food for infants in 1867 in his efforts to save the life of
a neighbor’s child, a premature infant who was unable to tolerate his mother’s
milk or any of the usual substitutes. His ultimate goal was to combat the
problem of infant mortality due to malnutrition. This new product, Farine
Lactée Nestlé, saved the life of an infant who could not be breastfed. Soon,
people began to recognize the value of this product and it was marketed in much
of Europe. Thus, began a legacy of creating shared value which is embedded
within their values and corporate business principles. This legacy remains to
be their pride and continues to drive us more than 140 years on. From its
humble beginnings, Nestlé is committed towards building a business as the
world’s leading Nutrition, Health and Wellness company based on sound human
values and principles.
Nestlé’s commitment to providing quality products to
Malaysians dates back more than 100 years ago. Nestle began in Malaysia in 1912
as the Anglo-Swiss Condensed Milk Company in Penang and later, growth and
expansion made a move to Kuala Lumpur necessary in 1939. Since 1962, with its
first factory in Petaling Jaya, Nestle Malaysia now manufactures its products
in 8 factories and operates from its head office in Mutiara Damansara. Their
manufacturing facilities are based in Petaling Jaya and Shah Alam in Selangor,
Chembong in Negeri Sembilan as well as in Kuching, Sarawak.
The Company was publicly listed on the KLSE on 13
December, 1989. Today, the Company employs over 5,500 people and manufactures
as well as markets more than 500 Halal products in Malaysia. Its brand name
such has MILO, NESCAFE, MAGGI and KIT KAT have become trusted household names
and enjoyed for generations.
1.2 OBJECTIVE OF THE COMPANY
Nestlé aim is
to become global leader in Food and Nutrition Company in the world and sustain
that position. This objective of the company signifies that they need to work
hard to stay ahead of Cadbury which is recently being acquired by Kraft food.
Kraft is world leader in today's chocolate business and food and nutrition
business. Nestlé's enhancing quality of life and contributing to a healthier
future. They want to help shape a better and healthier world. They also want to
inspire people to live healthier lives. This is how they contribute to society
while ensuring the long-term success of their company.
1.3 VISION AND MISSION STATEMENT
Nestlé Norden's aim
is to meet the various needs of the consumer every day by marketing and selling
food of a consistently high quality. To achieve this vision Nestle has two
steps to follow, first is High quality and collaboration, which is integral
part of any food business to flourish and second is Focus on e-business and
websites. Nestle has started investing heavy in development of e- business and
its promotion so as to capture clients in e-business sphere also.
The mission statement
of Nestle is well articulated and reflects the long term objective for doing
the business. It has mentioned in the mission statement that the company will
provide consistently the best food product with the best quality throughout the
life of their customers, which will ultimately enhance the quality of the life
of its customers. The mission statement put the emphasis on the presence of the
company in nearly every country. It promises in its mission statement that the
company will understand the need of its customers and provide the best products
to fulfill the needs. The mission also shows the high quality which is
maintained in the wide range of products of Nestle. The company reassures that
they provide the best range of food products to remain the first preference of
its consumers.
Their purpose is to enhancing
quality of life and contributing to a healthier future. The company’s philosophy
is to produce and sell world-class products of the highest consistent quality,
reliability and conveniences based on business excellence principles throughout
their operations and maximize the use of good quality local raw materials. Be
an exemplary employer with a progressive human resource and social policy such
as with a management style that is based on “Management Commitment and People
Involvement” be a responsible corporate citizen and fulfilling all obligations
to Government, shareholders, customers, communities and consumers. Furthermore,
the company also wants to protect the environment by being committed to
environmentally sound business practices and taking into account the need to
preserve natural resources and save energy. The company must guarantee that all
products manufactured, imported and distributed by Nestlé Malaysia are
certified HALAL by authorized Islamic certification bodies and deliver
shareholder value through the achievement of sustainable and profitable
long-term growth.
1.4 CORPORATE BUSSINESS PRINCIPLE
They actively seek engagement and partnerships with
outside stake holders that optimize positive impact in these areas of focus.
However, Creating Shared Value is not about philanthropy. It is about
leveraging core activities and partnerships for the joint benefit of the people
in the countries where we operate and of their shareholders. They have joint programs
with over 100 organizations around the world in these three areas which are
nutrition, water and rural development. First is nutrition because food and
nutrition are the basis of health and of their business and it is the reason
why we exist. The second is water because the ongoing quality and availability
of it is critical to life and the production of food and to their operations. Next
is rural development because the overall wellbeing of the farmers, rural
communities, workers, small entrepreneurs and suppliers are intrinsic to their
ability to continue to do business in the future.
Creating
Shared Value is open for all companies to apply. While Nestlé’s company have
adopted a Creating Shared Value approach to their business which is the make no
proprietary claim, and Creating Shared Value is a way of thinking which is
available to any company which wants to utilize it. Creating Shared Value
should also not be confused with compliance or sustainability. Creating Shared
Value is built on the foundation of a strong compliance culture and commitment
to sustainability. But Creating Shared Value goes beyond compliance and sustainability
and aims to create new and greater value for society and their shareholders
within the areas of focus. In doing so, Nestlé maintains a very long term
perspective on business development and welcomes dialogue with external
stakeholders who are committed to principled behavior and constructive
engagement. This includes government and regulatory authorities,
intergovernmental organizations, non-governmental organizations, academic and
professional bodies, and local communities.
CHAPTER 2
HUMAN RESOURCE MANAGEMENT
Nestle is a dynamic and flexible organization as they recognizes that
human resources (human assets) as one of the most important characteristics. In
Nestle, human resources teams cultivate our culture through employee learning
and foster sustained growth by ensuring employee passion which directed to help
in deliver organization goals. Therefore, Human Resources Management of Nestle
has to identify, recruiting and retaining top talent across company. In Nestle,
there are three (3) responsibilities for Human Resources Team which are Area
Human Resources Manager, Human Resources Manager and Human Resources Associates
2.1 RESPONSIBILITIES FOR HUMAN RESOURCE
MANAGEMENT
2.1.1 AREA HUMAN RESOURCE MANAGER
Jobs for Area Human Resources Manager is that having human resources
leadership responsibilities for specific geography or business units in
specific area. For the assigned area, the manager create hiring plans, develop
local sourcing strategies, host interview skill training, coordinate and
execute selection processes, and measure process effectiveness. In addition to
that assigned area also, the manager needs to coordinate and execute new
employee orientation, identify retention issues, develop retention plans, administer
exit interviews, and measure process effectiveness. As the Area Human Resources
Manager having a big responsibilities to their assigned area, they need to
ensure compliance with all relevant employment regulations, develop and monitor
compensation and benefits programs, manage employee relations programs, and
lead the organizational development programs.
2.1.2 HUMAN RESOURCE MANAGER
Human
Resources Manager is co-worker to the Area Human Resources Manager. For this
manager, they leads in staffing and recruitment efforts for the Nestle
branches, including in identifying training needs and developing training plans
suitable with business partners and leaders to ensure in successful start-up.
In addition to their jobs, they need to support other managers and employees on
day-to-day employee relations issues, conduct wages analyses, and monitor labor
market trends to ensure competitive pay practices, and maintains legal
compliance in HR related areas and also conducts audits on employment
practices.
2.1.3 HUMAN RESOURCE ASSOCIATES
Human
Resources Associates in Nestle was designed to develop individuals with high
potential for leadership in human resources. These associates are responsible
in providing human resources and project support for that business group. They
also need to provide an excellent opportunity for incumbents to acquire and
strengthens skills that core to human resources areas. Other than that, these
positions provide support for and deliver results in:
• Staffing
• Employee relations
• Compensation
• Benefits
2.2 NESTLE HRM EFFECTIVENESS
2.2.1 STAFFING
Through Nestlé’s website and offline application, it show that Nestle
recruitment process have been done in various available channels. To improve
effectiveness, they recruit and develop local talents with local knowledge. In
Malaysia, Nestle employ people to work in all manufacturing sites. Other than
that, Nestle do provide internship programme, management trainee for fresh
graduates, recruiting professionals and gender balanced. Nestle takes talent
retention very seriously as they appreciate the local talent by giving many
benefits and provide great working environment for their employees. A gender
balanced workplace also one of the priority to Nestle. Recently, Nestle have
introduced a KPIs (Key Performance Index) related to gender balance by focusing
on succession planning practices and developing long-term female talent in the
succession pipeline. In this introduction, they ensure that at least one woman
in the key position in this company.
2.2.2 COMPENSATION
Compensation has been introduced to Nestle employees as they care for
their employees and treat them fairly together with respect. They believed that
good labor condition and relations ensures sustainable growth for Nestle. In
developing higher work environment, Nestle provides a reference for
relationship with employee representatives and also with the trade unions
through Nestle Employee Relations Policy. Nestle also has its own compensation
board of directors to deals with compensation matter of employee in the
company.
2.2.3 BENEFITS
Nestle offered benefits through its total reward policy. Therefore, these
benefits were generated to attract new hires and unsure constant engagement of
the current employees. They also give attractive benefits that are based on
employee’s work performance such as bonuses, incentives and awards. They
established these benefits to heighten people’s trust and instill a good value
for the company for the other to perceive. Below are the benefits that Nestle
offered:
• Car Schemes
• Flexi Loan Scheme
• Uniforms
• Wellness Benefits
• House Purchase Assistance Scheme
• Maternity Leave
• Social & Recreational Facilities
• Nestle Scholarship Scheme
• Emergency Loan
• Service & Retirement Award
REFERENCE
Chandoo. (2010, May 19). How much does it cost to run a
website based business? Retrieved from Startup Desi:
http://startupdesi.com/costs-of-running-web-business/
CIMB Bank. (2017, August 27). Nestle (Malaysia).
Retrieved from
http://investing.com.my/clients/inveszcom/Downloads/Nestle_(Malaysia)-Cost_efficiencies_still_the_main_priority_(CIMB)_28082017828201792053AM2.pdf
Hamid, A. J., & Dass, F. (2016, June 16). Nestlé's
trust in Malaysia. Retrieved from New Straits Times:
https://www.nst.com.my/news/2016/06/152248/nestl%C3%A9s-trust-malaysia
Nestle. (2017, December 2). Nestle: About Us.
Retrieved from Netle Website: https://www.nestle.co.za/aboutus/missionvision
Nestle Malaysia. (2016, August 22). Nestlé
(Malaysia) Berhad Continues Strong Growth Momentum in First Half of 2016.
Retrieved from Nestle Malaysia: https://www.nestle.com.my/media/pressreleases/allpressreleases/nestle-malaysia-continues-strong-growth-momentum-in-first-half-of-2016
Nestle Malaysia Berhad. (2016). Corporate
Governance & Financial Report 2016. Petaling Jaya: Nestle Malaysia
Berhad.
Nestle Malaysia Berhad. (2016). Nestlé in
Society Report 2016. Petaling Jaya: Nestle Malaysia Berhad.
Nestle Malaysia Bhd. (2013, July). Retrieved
from
http://www.nestle.com/asset-library/documents/media/news-and-features/2013-july/facts-figures-nestle-in-malaysia-en.pdf
The Star Online. (2010, December 11). Nestle
Malaysia: Exports to remain strong contributor. Retrieved from The Star
Online:
https://www.thestar.com.my/business/business-news/2010/12/11/nestle-malaysia-exports-to-remain-strong-contributor/
The Star Online. (2015, October 22). Nestle
Malaysia boosts profit by 19% despite weak consumer sentiments. Retrieved
from The Star Online:
https://www.thestar.com.my/business/business-news/2015/10/22/nestle-malaysias-profit-jumps-19pc-despite-weak-consumer-sentiments/
The Star Online. (2017, August 30). Malaysia's
F&B establishments show steady growth. Retrieved from The Star Online:
https://www.thestar.com.my/business/business-news/2017/08/30/malaysia-food-and-beverage-sector-shows-steady-growth/
The Wall Street Journal. (2017, December 2). Nestle
(Malaysia) Bhd. Retrieved from The Wall Street Journal:
http://quotes.wsj.com/MY/NESTLE/company-people
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