Discuss about the Analysis of HRM System of the Nestle Company.
Human resource management of an organization chiefly deals with the management of employees by focusing on the Organization’s policies and the system. The Human resource department (HRM) is designed to maximize the performance as well as job satisfaction of the employees. The mentioned department is also responsible for staff recruitment, training and development, rewarding and performance appraisal of the employees. In this report, the analysis of the HRM system of the Nestle Company will be performed. The chosen strategic plan that will be assessed and evaluated in this report includes ‘creating an ethical, responsible and high-performance culture’. This report will contain the analysis of how HR strategy is embedded in the mentioned strategic plan. The reasons behind embedding HR strategies for in the strategic plan will also be discussed in this report. Apart from that, methods by which Nestle can achieve HR related priorities at the organizational level, contemporary challenges faced by the organization and recommendation to overcome the challenges will be discussed in this report.
Considering the fact that like any other organizations, it is the responsibility of the HR department of the Nestle Company to create a responsible and ethical culture in the workplace to enhance the performance of the employees. The HR matters that include recruitment process nd managing staffs of Nestle Australia are governed by a combination of international, local as well as regional Human resource policies. In order to create an environment which is ethical, the HR department of Nestle looks after the interaction process of both the employees as well as the managers of the organization (Hendry, 2012). In order to ensure that the treatment and interaction process of Nestle Oceania towards its employees is justified and employee-friendly, effective training is provided to the managers of the Organization (Cascio, 2018). Not only that, since the formation of an ethical culture does not only depends on the behaviour of the management but also on that of the employees, high vigilance is kept on the behaviour of the staffs both inside and outside the business. In order to implement equal opportunities for all the employees in the organization, Nestle has launched flexible working arrangement framework in 2011 (Armstrong & Taylor, 2014).
Implementing an employee-friendly culture is highly crucial for any organization in order to retain employees as well as enhance their loyalty towards the business (Bratton & Gold, 2017). Being a multicultural company it is highly crucial for Nestle to create an ethical workplace where each and every employee is provided similar facilities irrespective of their gender and country of origin. Some of the reasons behind the importance of HR strategies for implementing cultural diversities are as follows:
The ethical environment of the Nestle organization develops trust among the employees which in turn, enhances their loyalty towards the organization. Staffs are found to take more pride in working in a company they believe in (Briscoe, Tarique & Schuler, 2012).
Developing an ethical and responsible environment prevents negative consequences to happen in the Nestle organization (Colbert, 2014). Unethical actions, if not penalized or addressed appropriately, have the ability to impose a negative impact on the work environment of the organization. For instance, the negative work environment can lead to team-conflict, stress, hostility and fears of dismissal among the staffs (Jiang et al., 2012).
Ethical Culture results in enhancement of the responsibility as well as productivity of the organization. The Nestle organization is highly concerned about the culture of its workplace (Berman et al., 2012). As a result, employees are able to concentrate on their productivity. Unjustified treatment also enhances the loyalty of the employees.
The total number of employees working in Nestle Oceania is 5578 and the total number of factories and distribution centres of the mentioned organization are 13 and 5 respectively (Alfes et al., 2013). It is the responsibility of the HR department to look after the welfare of the huge number of employees and hence the organization should follow the below-mentioned methods to achieve HR priority at all departmental levels:
The HR manager should concentrate on developing leaders at all levels. This is because good leaders are highly crucial for the success of the employees as well as that of the organization. According to a survey, it has been found that 74.1 percent of the employees get encouraged by effective leaders in an organization (Looveren, 2018). Hence to secure a long line of future leaders, the HR professionals of Nestle must implement proper training and development at every organizational level.
When it comes to an organization like Nestle, teamwork can be considered as a crucial portion of their business. In order to ensure quality collaboration as well as trust among the team members of the organization, the HR department must create a culture where trust, fairness and open communication between the employees as well as the managers are encouraged (Nestle.com.au. 2018).
Some of the Major challenges faced by the HR department of the organization include employee turnover, conflict among departments and communication barriers among the employees and the higher authority. The turnover rate of the mentioned company has decreased to 10.1 percent in the year 2013. In 2017 there was an 89.9 billion Swiss francs turnover (Looveren, 2018). However, recently the turnover rate of the organization has got enhanced considerably due to reasons like lack of communication and conflicts among the departments. According to a majority of employees, the sales department of Nestle Oceania obtains several benefits in terms of bonus, allowance and salary compared to the manufacturing and marketing departments. Thus departmental conflict is one of the chief reasons behind employee turnover of the organization. These issues have reduced the growth of the company in the year 2017 (Buller & McEvoy, 2012).
As discussed earlier, the HR department of the Organization has chiefly focused on the following three factors:
People: Attraction and retention of the right employees
Performance: Achievement of the full potential of the business as well as employees of the organization (Kehoe & Wright, 2013).
Culture: Creation of a responsible, ethical and high-performance culture
In one hand, the mentioned company must concentrate on enhancing the overall revenue in the global market since recently they have suffered a huge downfall. For this, the company must implement HR strategies to recruit highly efficient and experienced employees and retain the skilled employees of the organization (Renwick, Redman & Maguire, 2013). On the other hand, enhancing the performance of the employees will result in an increase in the productivity of the organization. Finally, an efficient culture will help the organization to retain its employees and enhance their loyalty towards the organization (Wright & McMahan, 2012).
Conclusion
From the above discussion, it can be concluded that being a highly popular organization, Nestle Oceania has effective HRM strategies. The HR department of the organization is found to have implemented several strategies to enhance the ethical culture. However, the Company has been found to be suffering from several issues related to the HR department which have affected the organization negatively. The turnover rate of the organization has got higher compared to the previous years. The chief reasons behind this are the lack of communication between the employees and the manager and departmental conflicts Finally, some of the recommendations are provided in the essay so that the HR department can enhance their business by retaining their valuable employees and recruiting efficient and skilled employees for the organization.
References:
Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived human resource management practices, engagement and employee behaviour: a moderated mediation model. The international journal of human resource management, 24(2), 330-351.
Armstrong, M., & Taylor, S. (2014). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.
Berman, E. M., Bowman, J. S., West, J. P., & Van Wart, M. R. (2012). Human resource management in public service: Paradoxes, processes, and problems. Sage.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Briscoe, D., Tarique, I., & Schuler, R. (2012). International human resource management: Policies and practices for multinational enterprises. Routledge.
Buller, P. F., & McEvoy, G. M. (2012). Strategy, human resource management and performance: Sharpening line of sight. Human resource management review, 22(1), 43-56.
Cascio, W. (2018). Managing human resources. McGraw-Hill Education.
Colbert, B. A. (2014). The complex resource-based view: Implications for theory and practice in strategic human resource management. Academy of Management Review, 29(3), 341-358.
Hendry, C. (2012). Human resource management. Routledge
Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of management Journal, 55(6), 1264-1294.
Kehoe, R. R., & Wright, P. M. (2013). The impact of high-performance human resource practices on employees’ attitudes and behaviors. Journal of management, 39(2), 366-391.
Looveren, Y. (2018). Disappointing growth in 2017 for Nestlé. RetailDetail. Retrieved 21 April 2018, from https://www.retaildetail.eu/en/news/food/disappointing-growth-2017-nestl%C3%A9
Nestle.com.au. (2018). https://www.nestle.com.au. Retrieved 21 April 2018, from https://www.nestle.com.au/creating-shared-value/our-people
Renwick, D. W., Redman, T., & Maguire, S. (2013). Green human resource management: A review and research agenda. International Journal of Management Reviews, 15(1), 1-14.
Wright, P. M., & McMahan, G. C. (2012). Theoretical perspectives for strategic human resource management. Journal of management, 18(2), 295-320.
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