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Creating and Maintaining High-
Performance Organizations
The mystery of high performance of Nestle
By Kabir Md Shahriar
GSB - 196235
Nestle:
Overall Nestle’s Objective:
To be the world’s largest and best-branded food manufacturer while
ensuring that nestle name is synonymous with the products of the highest
quality.
HR Objectives of Nestle:
Satisfy through good staffing, rewards, training and pay scale to all quality, competent & committed
employees such as manager, strategic planner, employees of the organization.
High commitment to quality products and brands.
Respect of other cultures and traditions.
Personal relations based on trust and mutual respect.
Being committed to work and quality.
Preferring the long-term perspective to short-term thinking.
Essentials of employee’s high performance:
HR of Nestle:
The Mystery of High Performance of Nestle:
Financial stimulis for high performance. Non-financial stimulis for high performance.
Standard Pay. Safety at work.
Bonus scheme. Operational safety health and risk management.
Fringe benefits. Management leadership and employee involvement.
Employee involvement.
Implementation.
Motivation.
Recognition.
Autonomy.
Training & development programs.
Special Programs for low turnover employees of Nestle:
 Reason Analysis.
 Performance Analysis.
 Motivation.
 Training & Counseling.
 Rewards.
Adopting new technologies of Nestle:
 E-Commerce.
 Customer care.
 Using modern equipment.
 Employee’s individual account in their website.
 All the HR policies in their website.
 Planning to create E-learning platform.
 Individually they have developed various technologies. For example:
---Healthier fats,
(Allow us to use natural vegetable oils instead of partially hydrogenated fats in
our Maggi bouillon cubes and seasonings).
--- Malt extraction,
(That meant less sucrose and more complex carbohydrates in the product).
--- Foam booster technology.
(Creamy head for Nescafé Cappuccino, with less fat).
Nestle Audit:
Our CARE Audit program (Compliance Assessment of Human Resources,
Occupational Health & Safety, Environment and Business Integrity)
monitors our support for international conventions and the social
elements of the Nestlé Corporate Business Principles, as well as
compliance with local laws.
The Group-wide program uses three independent external certification
bodies to assess our commitment to socially responsible and
environmentally sustainable business practices in four areas:
occupational health and safety, labor standards, business integrity and
the environment. They have carried out over 1460 audits since 2005. In
2011, we carried out CARE audits at 110 sites. No critical non-
compliances were identified .
Employees Satisfaction of Nestle:
Daily assigned job activities are
satisfactory enough to complete.
Flexibility of Team spirit exists within the
work environment.
Relationship with supervisor is
pleasant enough.
Compliance for equal opportunity is
satisfactory.
Compensation and benefits matches
with job duties and responsibilities
From glassdoor.
Performance’s Result:
 In Malaysia, Chile and Spain, creative manner, and
adapted to local environment and needs.
 In Italy, management and trade unions are
working together and promoted the corporate
commitment of achieving “zero accidents” and to
foster female employment and specific work-life
initiatives.
 Nestlé has been named & awarded Australia’s top
food and beverage employer out of a pool of 150
private and public companies selected from the
country’s biggest satisfaction survey.
 Nestlé Philippines has received an award from the
Employers’ Confederation of the Philippines in
recognition of its “outstanding achievements for
industrial peace and harmony”.
 Recently they received appreciation certificate
from European union.
 In 2018, their e-commerce sales grew five times
faster than the Group average and reached 7.4% of
total Nestlé sales.

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A case analysis on nestle's high performance.

  • 1. Creating and Maintaining High- Performance Organizations The mystery of high performance of Nestle By Kabir Md Shahriar GSB - 196235
  • 2. Nestle: Overall Nestle’s Objective: To be the world’s largest and best-branded food manufacturer while ensuring that nestle name is synonymous with the products of the highest quality. HR Objectives of Nestle: Satisfy through good staffing, rewards, training and pay scale to all quality, competent & committed employees such as manager, strategic planner, employees of the organization. High commitment to quality products and brands. Respect of other cultures and traditions. Personal relations based on trust and mutual respect. Being committed to work and quality. Preferring the long-term perspective to short-term thinking.
  • 3. Essentials of employee’s high performance:
  • 5. The Mystery of High Performance of Nestle: Financial stimulis for high performance. Non-financial stimulis for high performance. Standard Pay. Safety at work. Bonus scheme. Operational safety health and risk management. Fringe benefits. Management leadership and employee involvement. Employee involvement. Implementation. Motivation. Recognition. Autonomy. Training & development programs.
  • 6. Special Programs for low turnover employees of Nestle:  Reason Analysis.  Performance Analysis.  Motivation.  Training & Counseling.  Rewards.
  • 7. Adopting new technologies of Nestle:  E-Commerce.  Customer care.  Using modern equipment.  Employee’s individual account in their website.  All the HR policies in their website.  Planning to create E-learning platform.  Individually they have developed various technologies. For example: ---Healthier fats, (Allow us to use natural vegetable oils instead of partially hydrogenated fats in our Maggi bouillon cubes and seasonings). --- Malt extraction, (That meant less sucrose and more complex carbohydrates in the product). --- Foam booster technology. (Creamy head for Nescafé Cappuccino, with less fat).
  • 8. Nestle Audit: Our CARE Audit program (Compliance Assessment of Human Resources, Occupational Health & Safety, Environment and Business Integrity) monitors our support for international conventions and the social elements of the Nestlé Corporate Business Principles, as well as compliance with local laws. The Group-wide program uses three independent external certification bodies to assess our commitment to socially responsible and environmentally sustainable business practices in four areas: occupational health and safety, labor standards, business integrity and the environment. They have carried out over 1460 audits since 2005. In 2011, we carried out CARE audits at 110 sites. No critical non- compliances were identified .
  • 9. Employees Satisfaction of Nestle: Daily assigned job activities are satisfactory enough to complete. Flexibility of Team spirit exists within the work environment. Relationship with supervisor is pleasant enough. Compliance for equal opportunity is satisfactory. Compensation and benefits matches with job duties and responsibilities From glassdoor.
  • 10. Performance’s Result:  In Malaysia, Chile and Spain, creative manner, and adapted to local environment and needs.  In Italy, management and trade unions are working together and promoted the corporate commitment of achieving “zero accidents” and to foster female employment and specific work-life initiatives.  Nestlé has been named & awarded Australia’s top food and beverage employer out of a pool of 150 private and public companies selected from the country’s biggest satisfaction survey.  Nestlé Philippines has received an award from the Employers’ Confederation of the Philippines in recognition of its “outstanding achievements for industrial peace and harmony”.  Recently they received appreciation certificate from European union.  In 2018, their e-commerce sales grew five times faster than the Group average and reached 7.4% of total Nestlé sales.

Notas do Editor

  1. Headquarters: Vevey, Switzerland Founder: Henri Nestlé Founded: 1866, Vevey, Switzerland Nestlé has 447 factories, operates in 189 countries, and employs around 339,000 people.
  2. Salaries at Nestles' range from an average of $46,553 to $116,696 a year. Average is = 7500$ monthly.
  3. Fermentation and probiotics: Nestlé Research was one of the first to look at the molecular interaction of probiotics with intestinal cells. We have sequenced several probiotic genomes, so that we can better understand their characteristics and mechanisms of action. Extrusion: We have strong expertise in hot extrusion (eg infant and breakfast cereals), co-extrusion (eg filled bars and snacks) and cold extrusion (eg ice-cream and chocolate). Healthier fats: We have also developed technologies that allow us to use natural vegetable oils instead of partially hydrogenated fats in our Maggi bouillon cubes and seasonings. Foam booster technology: This produces the creamy head for Nescafé Cappuccino, with less fat, and which is much denser and longer-lasting than regular foam. In 2002 we relaunched Nescafé Cappuccino with our new foaming mix products, which we created these using our foam booster technology. Malt extraction: We have developed a new process for malt extraction for Milo that meant less sucrose and more complex carbohydrates in the product. It was launched in Malaysia in 2006, and in 2007 it was rolled out across Asia. Portion dispensing systems: This know-how is essential for our beverage systems.
  4. In 2016, In order to assess the employee job satisfaction of Nestlé Bangladesh Ltd., I have conducted a survey among 21 permanent employee of core function (comprises of Marketing, Sales and Nutrition) of Nestlé Bangladesh Ltd. From my survey, the analyses are given below: 75% of employees agreed that the daily assigned job activities towards them are satisfactory enough to complete whereas 20% of them disagree with it because the timeline of completing works are not sufficient enough and they need to work for additional hours depending upon the pressure of work. Therefore, only 5% of employees remain neutral with this statement. The percentage of being neutral was high, which is 40% whereas 25% of employees disagreed. According to the employees, the compensation structure and benefit system of Nestle Bangladesh Ltd. does not wealth enough compare to the duties and responsibilities they perform. Only 35% of employees is satisfied with this fact. 20% of employees strongly agreed that Nestlé provides such a work where they feel flexible while working with their team. Therefore, percentage of remain agreed was high in amount because they find their team members very co-operative. 5% of employees remain neutral with flexibility of team spirit. Among the respondents the ratio of strongly agree and only agree remain same which is 45% whereas percentage of being neutral and disagree is also same. According to the employees, Nestlé provides a satisfied equal opportunity. 20% employees strongly agreed with this as well as 60% of them (a quite high amount) agreed with this whereas. https://www.assignmentpoint.com/business/human-resource-management/hr-functions-employee-job-satisfaction-nestle-bangladesh.html
  5. local teams have provided training on the Nestlé Corporate Business Principles to all employees in a 3. The accolade recognizes Nestlé’s success in building a partnership with the trade union to overcome the difficulties of the past through commitment, openness and constructive dialogue; 4. In Europe, the Nestlé European Council for Information and Consultation meets regularly with union representatives to improve mutual understanding and have agreed to work closely on health and safety topics.