The impact of Human resource management on sales of nestle

HRM is an integral part of management process that helps the firm to enhance, mangeing and developing the human element of the firm. In many occasions human resource management is the source and responsible of competitive advantage. Human resource can be controlled for making it most effective by mutual standard polices which helps the employees to act flexibly and in the interest of organizational excellence As nestle is operating world wide, it has to follow the local laws and legislation to maintain its goodwill every-were. Nestle is currently employing 330,000 people having manufacturing facilities in 83 countries of the world with 461 factories. Nestle is agreed on the point that their employees are the most important factor of the company without their commitment and energy nothing is possible. It also emphasizes on the involvement of more people from all level helps to maintain the loyalty towards the organization. Everyone in the firm is openly invited to share there opinions and views for the improvements of Company.

HR practices and policies

Following are some of the most important HR practices and policies of nestle Recruitment. People management. Performance appraisal. Training. Pay structure/rewards and incentives. Employee relationship. Change management.

Recruitment
Recruitment is one of the most important parts of HR in any organization. The process of recruitment in nestle is clearly defined. As this process helps the firm to get best out of applicant which suits the job better then other, the recruitment team of nestle pay attention on those people having qualities like dynamism, realism, loyalty, pragmatism, hard work, honesty and reliable. Good selectivity of human resource for the sales department and the department that are directly related to the sales are positively related to the organizational sales.

People management
This emphases on the points that explains the core culture of nestle and effective management in nestle group around the world. It states equality among the people working in nestle. It explains that every employee has equal rights to an open conversation with superiors and their team mates. There is no room for discrimination, harassment or any other element that is a hurdle between open conversation and that affects the respect. This rule applies to every level of organization and under all circumstances. For any disorder among the employees there is a proper hearing to ensure equality and justice among people of nestle. So with the help of these rules nestle maintains a good and friendly relationship among all the employees which cuts the effect of negtivenes among the employees. When there is effective people management the organization will flourish.

Performance appraisal
This includes all procedure that helps to appraise the contribution and potential of the members in the organization. This also helps to make corrective decision for selecting the correct employee for the job. At nestle the performance appraisal is done in order to understand the each employees abilities and relevant merit. If the employee knows that his efforts is going to be recognized can appreciated then he/she will be more motivated toward its sales target, so it has the positive impact on the organizational performance and sales It is done through the following procedures; The feedback created by the formal assessment of line manger and HR once in a year. The basic key performance indicators (KPIs) are also evaluated regularly by the HR department The employees subordinates are also questioned as a part of evaluation Another important KPI is to follow the nestle management and leadership principles

Trainings
Training is another most important part of HR is training. It helps to organize and enhance the skills of the people and also to understand the deep knowledge of the task assigned to them. From the upper to lower management the training is continues. Nestle provides Literacy training, to upgrade the literacy, it is for those employees who operate the new technology machines and equipment. Employees are also sent abroad to study management, customers taste etc. Increase the expertise of the communication skills and business economics.

Through the above training techniques the organization can gain a sustainable competitive advantage as the employees can learn new set of skills and can in the end help organization to positively impact on sales. So the greater the amount of training, the greater will be organizational performance /sales.

Employee relationship
The level of employee turnover is less then 5% which is very low for the company like nestle. Nestle has an open culture that helps every employee feel ease in expressing there ideas and feel encouraged.

At Nestl we believe that the employees private and professional life should have a good balance When there is a good relationship between the employee and the employer there is a greater chance that the employee feels more comfortable and more loyal towards the job and company, it in the end creates a positive impact on the firm.

Pay Structure Rewards and Incentives.

The pay structures are made simple and avoid unnecessary complexity to provide satisfaction for the employees. The remuneration of nestle is above average in the industry, it offer fair wage to there employee according to the nature of their job. The wage also depends upon the performance of employee such as team targets and achieving individual KPIs. There are many financial and non financial rewards for the employees such as Passion to win awards

This award is given to those who over- achieve the target on quarterly basis. Long service awards

It is for those employees who are working with nestle for more then 30 years. Nestle idea awards

This award is given to those who come up with the most innovative ideas that has the potential to be implemented on nestle. Benefits are also provided to the employees as a compensation package. These includes the following Personal medical leave Children education Provident and gratuity funds Health insurance and medical reimbursement Conveyance facilities

Through these HR practices and benefits the employee can be motivated so that he/she can be more loyal towards what they have to do. So benefits, compensation and incentives has a positive impact on the nestle sale.

Change management
Nestle is very active and very responsive to the environmental changes. It manages Change and drives sustainable profitable growth by following the policy of making gradual changes instead of making drastic and risky changes. One of the most important examples of change management is ERP implementation.

With the help of effective change management the employee resistance against the change can be reduced and the change which is better for the organization can be implemented. So the more the effective change management the more would be organizational performance/ sales.

Ref:
http://www.ukessays.com/essays/business/strategic-hrm-at-nestle-business-essay.php http://www.nestle.com/asset-library/Documents/Jobs/HumanResourcesPolicy.pdf http://www.iso.org/iso/home/news_index/news_archive/news.htm?refid=Ref1628 www.google.com.pk http://www.nestle.pk/