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Human resource management (HRM) is that part of management process which makes, enhances, manages and develops the human element of the enterprise measuring their resourcefulness in terms of talents, abilities, total skills, creative, knowledge, and potentialities for effectively contributing to the organizational objectives. Human resources are precious and a source of competitive advantage. Human resources may be tapped most effective by mutually standard policies which promote promise and foster an inclination in employees to act flexibly in the interests of the adaptive organizations pursuit of excellence. Human resource policies can be joined with planned business and used to reinforce appropriate culture. Human resources play a critical role in enabling the organization to effectively deal with the external environment challenges. The human resource management has been accepted as a strategic partner in the formulation of organizations strategies and in the implementation of such strategies through human resource planning, employment, training, appraisal and rewarding the personnel. Strategic management of human resources facilitates creation of competitive advantage for the organization over its rival by building unique human resource based competence. An organizations recruitment, selection, training, performance management process and compensation practices can have a strong influence on employee competence. The workforce will be more capable if a firm can successfully identify, attract, and select the most competent applicants. Performance appraisal takes in account the past performance of the employees and focuses on their improvement for the future performance of the employees through counseling, coaching or training. The human resource strategy of a business should reflect and support the corporate strategy. An effective human resource strategy includes the way in which the organization pans to develop its employees and provide them with suitable opportunities and better working conditions so that their optional contribution is ensured. This implies selecting the best available personnel, ensuring a fit between the employee and the job and retaining, empowering and motivating employees to perform well in the direction of corporate objectives.
STATEMENT OF PURPOSE
Consumer packaged goods (CPG) Organization, alternatively called as FMCG industry mainly deals with the production, marketing and selling of consumer packaged goods. The FMCG or Fast Moving Consumer Goods are those goods which are generally consumed at a regular interval by the consumers. FMCG industry has some of the main activities like financing,
selling, purchasing, marketing etc. The industry also contributes or also involved in general management supply chain, operations and production. FMCG industry gives a variety of consumables and consequently the amount of money is very high which is circulated against FMCG products. Day by day the competition between the FMCG producers is increases which increasing the investment in FMCG industry is also increasing, specifically in India. Estimated to grow FMCG Sector in India is a very high rate by 2010.
FAMILY OF NESTLE
Family of NESTLE consists of products related to: Milk & Nutrition Beverages Prepared dishes & cooking aids Chocolates & confectioneries NESTLE is one of the well known FMCG company. In the Every part of the world, the Nestl name represents a commitment or promise to the customer or consumer that the product is of high standard and safe. NESTLE support the UNGC (United Nations Global Compacts). UNGC guiding principles on human rights, their aim and labour to offer an example of better labour practices and human rights all over his business activities. Our people played a major role for our success. We give the equal ant
respect and dignity to each other and we expect from the every employee to share and contribute their opinions and views to improve Company personal development and results and also promote a sense of personal responsibility. We recruit motivated and competent people, who know and respect our values, provide equal opportunities for their advancement, development, protect their privacy and do not tolerate any form of discrimination or harassment. Human resources of an organization can provide it with a reasonable advantage over its competitors in the fast changing environment. This calls for the strategic management of human resources for the accomplishment of corporate objectives. STRATEGIC HUMAN RESOURCE MANAGEMENT is called as the linking of strategic goals with human resources. No. of objectives in order to enhance or develops an organizational culture, improve organization performance and that fosters flexibility, innovation, and sustainable competitive advantage is called.
VISUAL DEPICTION OF THE SHRM PROCESS STAGES OF STRATEGIC HRM PLANNING PROCESS
Strategic human resource management is the process by which managers design the mechanisms of an HRM system to be reliable with each other, with the organization's plans and goals and with other essentials of organizational architecture. The main role of strategic HRM is the improvement of an HRM system that increases an organization's awareness, worth, invention, and productivity to customers. Strategic human resource planning (SHRP) involves four distinct stages: - Situational analysis/environmental scanning. - Estimating demand for human resources. - Analyzing the supply of human resources. - Developing action plans to close any gap between human resource demand and supply. The first stage of HR planning is the point at which strategic planning and HRM interact. HR planners anticipate sources of threats and identify and should drive the organization's strategic planning and opportunities with the help of Environmental scanning. The strategic ideas or plan implement to
environmental circumstances, and HR planning is the mechanisms that an organization can use to accomplish this adaptation process. The second stage, forecasting demand, requires estimating not only how many but also what kinds of employees will be needed by the organization. The demand for employees should be closely tied to the strategic direction of the organization. Forecasting yields advance estimates of the organization's staffing requirements. This is a difficult task, especially for organizations in rapidly changing environments. Four forecasting techniques include expert estimates, trend projections, statistical modeling, and unit-demand forecasting. Estimate by no of expert, a group of experienced or expert provides the organization with demand estimates based on subjective assessments of available economic, intuition, prior experience, and labor force indicators. Trend projection involves forecasting which is based on a previous relationship between the employment and a factor related to employment (e.g. sales levels). Statistical modeling techniques (e.g. regression analysis or Markov analysis) are more quantitative forecasting and sophisticated techniques. Unit-demand forecasting requires the unit managers (e.g. department head, project team leader) to analyze the present and future job-by-job, peopleby-people needs. The third phase involves studying the number and types of current employees in terms of the training and skills necessary for the future and also the supply of capable workers in the outside labor market. The skills inventory is a major tool used to assess the internal supply of employees. A skills inventory is a list of names, skills and characteristics of the people currently working for the organization. The list of skills coded into the skills inventory should be tailored to the needs for the organization, but might include such factors as level and field of education, knowledge of a foreign language, professional qualification or certification, or licenses held. The organized inventory provides a way to acquire these data and makes them available as needed in an efficient manner. Also important is the need to maintain the inventory so that information is kept current. With regard to the external labor market, the entire country (or world) may be the relevant labor market for highly skilled jobs. For unskilled jobs the relevant labor market is usually the local community. After the HR planning system has analyzed both the supply of and the demand for future workers, the two forecasts are compared to determine what, if any, actions are necessary. If a discrepancy exists between the two estimates, the organization needs to choose an appropriate course of action designed to eliminate the gap. The organization has a number of options available when the demand for workers is greater than the supply of workers. The organization might elect to use overtime work with current employees, increase training and promotions of current employees, or recruit new employees. In tight labor markets, the availability of labor is
limited (i.e. demand exceeds supply), driving up the price of those employees who are hired, and limiting the extent to which the organization can be selective in its hiring procedures. In a loose labor market, qualified employees are abundant. When the supply of workers exceeds demand, alternative solutions include attrition, early retirements, demotions, layoffs, and terminations.
HR PRACTICES
RECRUITMENT: Recruitment is the process of developing and maintaining adequate manpower resources. Recruitment refers to the attempt of getting interested applicants and creating a pool of prospective employees so that the management can select the right person for the right job from this pool.
People management policies, basic values & principles elaborated in- Nestle management & leadership principles- The Nestl Management and Leadership Principles describe the management style and the corporate values of the Nestl Group, specifically in the area of interpersonal relations. - Nestle human resources policy- This policy encompasses those guidelines which constitute a sound basis for efficient and effective HR Management in the Nestl Group around the world.
Nestle people development review- this policy throws light on Nestls culture and core values, different training programs and life of employees after work. PERFORMANCE MANAGEMENT: Performance management includes all standard procedures used to appraise contributions, potentials and personalities of group members in a working organization. It is a process which is important for making accurate and impartial decisions on employees for secure information.
At Nestle performance appraisals of Employees are done in order to understand each employees abilities, competencies and relative merit.
- Formal assessment by Line Managers and HR once a year with feedback. - Subordinate can question an unfair evaluation. - Specific Key Performance Indicators have been enlisted by the HR department. - One of the important key performance indicators is achievement following the Nestle management and leadership principles. - Remuneration structure and promotion criteria take into account individual. TRAINING: Training is a major and also an important part of organized activity for increasing the skills and knowledge of people and also to understand the deep knowledge of task that what they have to perform or for a definite purpose. It involves systematic procedures for imparting technical know-how to the employees so as to increase their knowledge and skills for doing specific jobs with proficiency. From the Company floor to the upper management, training at Nestl is continuous. Nestl people provide this training and it is constantly appropriate to the professional life. Nestle provides the following- Literacy training-to upgrade essential literacy skills, especially for workers who operate new equipment (Mission-directed Work Team Approach). Employees are also sent abroad to study markets, consumer tastes etc.
the qualifications required (skills, knowledge, abilities) for each job in a way that meet the needs of employees and the organization.
The job design process under NESTLE is a very detailed and strategic process.
- Selection-Combination of written test, GD & interview (Interviews for top Management posts). The company incorporates practices like Job Enrichment and Job Enlargement, to motivate employees and to break the monotony of their job tasks. The correspondent herself works in both sales and brand management departments, which is an example of job enlargement. PAY STRUCTURE: pay structure is generally the pay ranges and levels or hierarchy of job. We can also say it as a salary structure. It set out the different level of pay for different types of employees. It may mean the structure of the total wage of a worker or group of workers is composed; - Nestle strives to offer fair remuneration. Remuneration level is above the average in industry. - The variable component of the salary is comparatively big to reward individual Performance. - In case of higher management level, the variable part is linked to individual & team target achievements. REWARDS & INCENTIVES: it consists of a variety of modules that can be presented to reward employees and identify unique performance. The structure is based on consistent, delivering equitable and fair rewards to a differentiated group and consists of the following non-financial and financial rewards. - Passion to Win awards- These quarterly awards have been institutionalized to reward those who over-achieve their targets. - Long-service Awards- To recognize employees who have been with the company for more than 30 years. - Nestle Idea Award- It was found from the correspondent that the company institutes Nestle Idea Award every quarter to recognize and award employees who come up with relevant and innovative ideas which have the potential of being implemented at Nestle. 3.3.7 BENEFITS: Nestle offers a comprehensive and competitive benefits package designed to meet the varying needs of employees. These benefits are an integral part of total compensation package and provide employees and their families valuable protection during employment with Nestle.
The following benefits are provided to all employees, with no discrimination- Leave-Personal & Medical (fixed no. per year) - Children Education Assistance Scheme
- Provident fund - Retirement Gratuity Scheme - Group Insurance & Accidental Insurance Scheme - Conveyance Reimbursements - Residential Accommodation - Monthly health check-ups & free consultation for self & family etc. 3.3.8 EMPLOYEE RELATIONS: Employee Relations involves the body of work concerned with maintaining employer-employee relationships that contribute to satisfactory productivity, motivation, and morale. Essentially, Employee Relations is concerned with preventing and resolving problems which arise out of or affect work situations.
Nestle provides a very healthy working environment which is one of the reasons why Nestls employees state their commitment level to be very high.
- Employee turnover is less than 5%., which is considered to be very low for a Multinational Corporation. - Nestle has a open culture & upward communication especially in case of grievance redressal is encouraged. - Work/Life balance is given importance, as illustrated in the Nestle Human Resource Policy document. - Nestle Family annual events are organized by their HR department whereby employees along with their families are invited. - Emphasis is laid on safety of employees (Nestle Policy on Health and Safety at Work).
3.310 SAFETY & HEALTH: Every employer is required to carry out a risk assessment for the workplace which should identify any hazards present in the workplace, assess the risks arising from such hazards and identify the steps to be taken to deal with any risks.
The Nestle Operational Safety, Health and RiskManagement Strategy document illustrates that:
- Nestle is dedicated to safe & healthy work environment. - Regular safety assessments & audits take place by internal & external bodies.