Managing Human resources in Multinational Companies
The famous company that I have selected for this case study is Nestle. This company is involved with production of food and drinks and has its headquarters in Vaud, Switzerland. The company is fortune 500 type and was the largest food manufacturing company in the world as at 2014 (Nestle Official Website) The company operates in 194 countries and this brings with it many employees. The company must thus have an integrated human resource management system to ensure its operations remain efficient in order to achieve its mission, goals and objectives. This paper explores how Nestle manages its human resource in terms of treatment offered to customers and suppliers all over the world.
Nestle has a Human Resource Management policy that guides the executive on how to ensure their global workforce remain efficient. The policy clearly states that the company does recognize that its employees are the key to its success and the hitherto achievements of the company can be attributed to their continuous engagement. The HR policy dictates the mission and vision of the HR function in the lifecycle of employment at Nestle. The execution of this policy will be motivated by sound judgement, abidance to market laws and judgement skills taking into account the particular contxt. The spirit of this HR policy ought to be treated with respect under all circumstances. Nestle puts its employees at the focal point of all their activities (Nestle Human Resources Policy, 2012).
The interaction between customers and the employees is founded on an effective two-way communication that allows the company to get feedback from its customers. Training and learning is integrated into the culture of the company and the policy requires that employees will be continuously trained to better their knowledge and skills. The company conducts corporate leadership programmes that ensure their management remains on track in leading the company to prosperity (Nestle Human Resources Policy, 2012). Effective communication strategies allows the customers and suppliers to give feedback on the experience they had with Nestle’s products. This allows the management to continuously make adjustments to improve their products and the human resource at large.
According to Nestle Human Resources Policy (2012), Nestle do not treat people differently in different parts of the world. The organization’s products are universal and the human resource arm believes so should be the treatment to its employees. The company does appreciate the differences in customer wants and needs in different parts of the world but uphold that all the consumers to their products fall under one broad part of the company: Customers. However, the company conducts reshuffles in their employees to ensure that the employees in the branches abroad are well versed with their countries of operation.
Among the perks that are offered to employees at Nestle include benefits and variable pay based on performance. The company conducts regular performance evaluation checks especially in new and emerging markets. The company also maintains a cordial relationship with its employees and openness is encouraged. The company also puts into account external factors such as inflation and tax in the countries of operation and continuously revises the fixed pay upwards. Allowances are also offered to all employees depending on the location and forces in the business and social environment where they operate (Nestle Human Resources Policy, 2012). Perks based on performance would be most important to me since they encourage the spirit of hard work when employees toil individually and also in unison in order to achieve peak performances that warrant the perks.
Nestle Human Resources Policy. (2012). Accessed on 7th August, 2016 from http://www.nestle.com/asset-library/documents/jobs/the_nestle_hr_policy_pdf_2012.pdf.
Nestle Official Website. Accessed on 7 August 2016 from Nestle.com/