Hrm533 Nestle Malaysia

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HRM533
INTRODUCTION TO HUMAN RESOURSE MANAGEMENT

GROUP ASSIGNMENT:

COMPANY: NESTLE MALAYSIA



TABLE OF CONTENT


Pages
TABLE OF CONTENT
2


CHAPTER 1 INTRODUCTION

1.1
Background of the company
3
1.2
Objective of the company
5
1.3
Vision And Mission Statement
5
1.4
Corporate Business Principle
6


CHAPTER 2 HUMAN RESOURCE MANAGEMENT

2.1
Responsibilities for Human Resources Team


1.
Area Human Resources Manager
8

2.
Human Resources Manager
8

3.
Human Resources Associates
9
2.2
Nestle HRM Effectiveness
9

1
Staffing
9

2.
Compensation
10

3
Benefits
10


REFERENCE
11




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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