Nestle on Malaysian Technical Cooperation Program 2009.

1. HR @ Nestle
Partnering with the Business
Ahmad Fauzi Yahya
Ahmad Fauzi Yahya
Nestle Malaysia
Nestle Malaysia
Growing Resourcing E ngaging Aligning Transforming

2. QUESTIONS
v What is your objective for today’s session?
v What would you like to learn?
v What you would like to achieve?
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3. Nestle has a great story to tell…
• Henri Nestle became
interested in baby food due
to the high infant mortality
rate in Switzerland
• He developed “Farine
Lactee Nestle” in 1867 and
saved an infant’s life after
his neighbour was unable to
breastfeed
• “Farine Lactee Nestle” has
helped save the lives of
many children the world over
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4. Worldwide, Over 6'000 Brands and 10'000 Products
In Malaysia..
Brands & Products
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5. World's Largest…
Food, Nutrition, Health & Wellness Company
Global presence
Global presence
Sales by Regions
Sales by Regions
37.5% -- Europe,
37.5% Europe,
43.7% -- Americas
43.7% Americas
18.8% -- Asia, Oceania, and Africa
18.8% Asia, Oceania, and Africa
2008 Financial Performance
2008 Financial Performance
(Key Figures)
(Key Figures)
Sales --CHF109.9 bio
CHF109.9 bio
employees
Sales
Organic Growth
Organic Growth -- 8.3%
8.3%
operating companies
EBIT
EBIT -- 14.3%
14.3%
factories
research, technology & development
Centres
countries
Growing Resourcing E ngaging Aligning Transforming

6. Nestlé Malaysia since 1912
•• No.1 FMCG Company
No.1 FMCG Company
•• 11% of the total Malaysian
11% of the total Malaysian
processed food basket
processed food basket
•• A top 20 KLSE company
A top 20 KLSE company
employees
halal products
billion turnover
Factories
Sales Offices
Growing Resourcing E ngaging Aligning Transforming

7. Our Vision…
“To be a respected, trustworthy
food, nutrition, health, & wellness
company”
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8. Our Mission…
“To Nourish Malaysia/Singapore”
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9. The Transformational Challenge…
..Nestle’s Blueprint for the Future
With vision, we anticipate the future,
through our actions, we will shape it..
- Peter Brabeck-Letmathe
Chairman & CEO, Nestle
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10. Why HR Exists?
I just want a pair of hands…
unfortunately a person comes with it..
- Henry Ford
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11. HR Strategic Direction
Nurturing Talents, Unleashing Potentials
VISION
“ The best Brand for your career “
•Rewarding Career
EMPLOYEE VALUE •Enriching Development
PROPOSITION • Balanced Quality of Work Life
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12. Moving Forward….
Aligning People Strategy Towards 2020
HR as Key Enabler
HR as Key Enabler Balanced of Quality Work Life
Balanced of Quality Work Life
Succession Management
Succession Management Wellness
Wellness
Development & Talent Retention
Development & Talent Retention Employer Nestle On The Move ~ Change Mgt
Nestle On The Move ~ Change Mgt
Branding
Nestle As
RE
RE
Employer Of Choice
ING
TR
TR
AIIN
AN
AIN
IING
NG
TR
Employee Value Proposition
•Rewarding Career
•Enriching Development
•Balanced
Enabling Quality Work Life The Way
HR Programs We Work
& Practices T.R.I.P
G.R.E.A.T. Strategic Initiatives Develop People
Performance Management
CONTINUOUS LEARNING
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13. Engagement Model
Towers Perrin-ISR
Feel: Sense of
Think: Belief in & belonging, pride,
support for the attachment to the
goals/values of the organisation
organisation
COGNITIVE AFFECTIVE
Think Feel
BEHAVIOURAL Act: Willingness to
go the extra mile;
Act Intention to stay with
the organisation
These three perspectives impact client satisfaction and business performance.
Growing Resourcing E ngaging Aligning Transforming

14. High Performance Framework
Organisations achieve superior business performance when their
strategy, culture and people are effectively aligned
Leadership
Business Organisational People Business
Strategy Culture ‘Engagement’ Results
For an organisation to maximise business results there must be:
1. A culture that is aligned to, or supports execution of, the strategy
2. Effective leadership capability across organisation levels
3. Engaged employees whose contribution is maximised
This framework underpins Nestlé’s Employee Survey Source: Towers Perrin-ISR's
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15. Nestle’s Character Foundation
CORPORATE
BUSINESS
PRINCIPLES
MANAGEMENT NESTLE
& CODE OF BUSINESS
LEADERSHIP CHARACTER CONDUCT
PRINCIPLES
Inspiring People
• Lead people
• Develop people
• Practise
what you preach
Adding Value
• Results
Dealing
Opening Up
• Know yourself
focus
• Initiative
• Innovation &
with others CORPORATE VALUES
• Insight Renovation • Proactive
• Service Orientation
• Curiosity
• Courage
co-operation
• Impact/Convincing
others
T.R.I.P
Nestle Leadership Framework
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16. Customers Need
Organizational perspective
“Strengthening of Leadership and Performance Culture”
• Continuous & Strong Leadership Pipeline
• Stronger Engagement level
• Inculcate Value-Driven performance
• Promote Quality Work life / Wellness
• Strengthen Nestle On The Move (Business Agility)
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17. Customers Need
Business perspective
1. High Calibre Talent
2. Excellent Employees Development program
3. Establish Clear Career Development Program
4. Convert Line Managers to People Developer
5. Improve working environment
6. Strengthen Rewards & Recognition Program
7. Aligning Performance Management
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18. Our Role…
q Acquiring Talents
q Developing Talents
q Retaining Talents
q Change Champion
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19. HR Support Structure
Customers BUSINESS UNITS
PRODUCTION / SALES
MARKETING SERVICES
Finance & Control / Supply Chain
HR Manager
HR Manager
HR Manager
HR Manager
HR Manager
Operations
G Mgt/LGO
Marketing
Sales/ER
Business
GMB
Business
Support
Support
Competence Recruitment & Human Capital &
Center Remuneration Talent Organization
Management Development
Shared Payroll Management
Services
HR Services & GLOBE
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20. Learning & Development Compass
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21. Functional & Leadership Training
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22. In house Training
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23. Learning & Development Programs 2008
Contents
External
•Learning & Development Compass
•Learning & Development Cycle
•E-Learning
•Training Caclendar 2008
•How to apply
•Role of Line Managers
•Course Descriptions
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24. L&D initiatives in Production
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25. Professional Certificate in Sales
4 Modules from OUM
Methodology
External
• Organizational Behavior
• Classroom based • Introduction To Marketing
lecture
• Role Play • Introduction To Economics
• Presentation
• Assignment • Business Communication
(Presentation & computer skill)
Assessment
External
2 Modules from Nestle
6 MONTHS • 50% Exam
72 contact hrs • Commercials at Nestle
• 50% Assignment
• Profitability at Nestle
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26. Executive Diploma in Manufacturing
Management (EDMM)
Collaboration with Open University Malaysia (OUM)
– raise the competency level of our Production Executives-elevating to First
Line Manager
Assessment
External Program
External FLM
External
Ability test
measure current ability and future •FOOD
potential for different types of work TECHNOLOGY
skills
•PRODUCTION Internal 14
•Critical Reasoning based on External 42
English
MANAGEMENT
•Interpreting Data •GENERAL Total = 56
MANAGEMENT
Competency based Interview
structured series of questions aimed
at eliciting behavioral information
against specific job-related
competencies
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27. E-Learning Facilities
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28. Task Results
Orientation Orientation
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29. Below the Surface
Behaviors become more important as Job Complexity increases
High
Blue PrintNaturalthe Future Traits
« for » Tendencies and
For Example: Results Focus
Relative Importance
Curiosity
Proactive Cooperation
Courage
Task-Related
Knowledge
and Skills
For Example: Knowledge of Electronics, Companies' Products,
Labor Relations, Law, Skill in active listening,
Negotiating
Low High
Job Complexity
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30. Growing Resourcing E ngaging Aligning Transforming

31. Nestle’s Core Competencies
NESTLE
Inspiring People
LEADERSHIP
• Lead people
FRAMEWORK • Develop people
• Practise
what you preach
Adding Value
• Results
focus Dealing
Opening Up • Initiative with others
• Know yourself • Innovation &
• Insight Renovation • Proactive
• Service Orientation cooperation
• Curiosity • Impact / Convince
others
• Courage
Growing Resourcing E ngaging Aligning Transforming

32. Growing Resourcing E ngaging Aligning Transforming

33. C.A.R.E for Performance
On-going
communication;
•A shared understanding
of what & how
•Conducive climate
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34. Total Rewards Approach
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35. Total Rewards Approach
Compensation Philosophy
To establish the company’s salary and remuneration practices based on competitive positioning i.e. 50th% to top 25% or
the 3rd Quartile (Q3) of Community salary practices with the comparable companies in order to attract, retain and motivate
talents.
Gross Salary Total Cash Total Compensation Total Reward
Basic Salary
Basic Salary Basic Salary
Basic Salary Basic Salary
Basic Salary Basic Salary
Basic Salary
Contractual
Contractual Contractual
Contractual Contractual
Contractual Contractual
Contractual
bonus
bonus bonus
bonus bonus
bonus bonus
bonus
Fixed Allowances
Fixed Allowances Fixed Allowances
Fixed Allowances Fixed Allowances
Fixed Allowances
Target Variable Bonus
Target Variable Bonus Target Variable Bonus
Target Variable Bonus Target Variable Bonus
Target Variable Bonus
Benefits
Benefits Benefits
Benefits
COMPONENTS OF TOTAL
REWARDS Career & Work
Career & Work
Environment
Environment
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36. Growing Resourcing E ngaging Aligning Transforming

37. Competitive Positioning
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38. Variable Pay
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39. Enriching Development Focus
Engaging a Winning Team
For a heart of Excellence
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40. Developing Talent
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41. Talent Management Process
On going
Meeting 11
1. Validation of “Talent Pool” Meeting Collaboration
2. Validate Career Management with the line
Plan for the year
3. Tracking Development Plans
4. Update on
Organizational/structural
changes
1. Successors
5. New Initiatives on Talent
2. Retirees Placement
Development
3. Expatriates Placement
ONGOING- 4. Hi Potentials
Actioning 5. New Talents/MT Status
Development
Plan
On going Meeting 22
Meeting
Collaboration
with the line
1. Approval for Development
Budget On going
2. Hi Pots Annual Development Collaboration
Meeting 33
Meeting Program with the line
3. Competencies Gaps
Identification
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42. Talent Meeting Structure & Guidelines
FEEDBACK PROCESS
Step 1 Step 2 Step 3 Step 5
Dept Reviews Division TMM Market Talent
Forum
Centre
Review
Calibration &
by ManCom Validation
Head CDS All Department
CDS/A&C Direct
Reports
Respective Step 4
Departments
Review of MH Global Talent
Direct Reports Review
by Mkt Head by
Bottom Zone / SBU /
Up FiCo Employee Corporate Function
PDGs
Management
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43. Integrated Talent & Career Management Process
Business Units
Supply Chain PRODUCTION
Finance & Control
Sales
SG
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44. Communication through Intranet
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45. Employment At Nestlé
Nestlé fully supports and publicly advocates the United Nations
Global Compact’s guiding principles :-
1. Supports and respects the protection of
international human rights within its sphere of
influence
2. Ensures that its own companies are not complicit
in human rights’ abuses
3. Freedom of association and the effective
recognition of the right to collective bargaining
4. The elimination of all forms of forced and
compulsory labour
5. The effective abolition of child labour
6. The elimination of discrimination in respect of
employment occupation
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46. Malaysian Labour Legislations
• Employment Act 1955
• Industrial Relations Act 1967
• Trade Unions Act
• Employment Provident Fund Act
• Employees’ Social Security Act
• Children and Young Persons (Employment) Act 1966
• Employment Information Act
• Employment (restriction) Act
• Private Employment Agencies Act
• Workmen’s Compensation Act
• Wages Councils Act
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47. Industrial Relations
NESTLE Malaysia & Singapore have a total of three National Unions representing the non-
management staff :
Nestle Products Sdn. Bhd. Nestle Foods (M) Sdn. Bhd.
Ø National Union of Commercial Ø Food Industry Employees Union
Workers (NUCW) (FIEU)
ØCollective Agreement 2001 - 2003 ØCollective Agreement 2002 - 2004
Ø Union membership Ø Union membership
Ø97% of non-management Ø99% of non-management
staff – union members Staff – union members
Nestle Singapore (Pte) Ltd
Ø National Trade Union Congress
No. of Trade Ø Collective Agreement 2001 – 2003
Worksite Union
Unions in Committee at
Malaysia = 595 Ø Union membership
- 33% in (Southpoint) various locations
- 67% in (Jurong)
Management + Union Collaboration = Productive Workforce
Growing Resourcing E ngaging Aligning Transforming

48. HR Vision, Road Map, Key Challenges & EVP
HR Road Map
HR Road Map
VISION
Nurturing People;
Unleashing Talent
Nestlé
Nestl é A Great Place To Work
EMPLOYEE VALUE
PROPOSITION [EVP]
Rewarding Career Key Challenges
Key Challenges
Enriching Development
Balanced
Speed & Quality Resourcing and
Speed & Quality Resourcing and
Quality Work Acquisition of Talent
Acquisition of Talent
Life Development of Talents for Successor
Development of Talents for Successor
Readiness
Readiness
Career Progression ~~Flat structure &
Career Progression Flat structure &
q Business Alignment specialist role
specialist role
q High Calibre of Talent Performance Management ~~
Performance Management
q Employee Engagement Addressing performance vs. people
Addressing performance vs. people
q Organizational & Personal development
Effectiveness development
Balancing the Quality Work life ~~
Balancing the Quality Work life
q Value & Performance Driven Culture
Wellness@work
Wellness@work
q Employee Wellness
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49. Terima Kasih
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