Assignment Help on HRM Issues on Nestle Australia
Human resource management is about managing human resource and it refers to taking decisions about HR policies and practice, with an objective of achieving organizational and strategic goals (Stone, 2010). However there are some issues related to HRM, which are discussed later in the essay in relation to the selected company i.e. Nestle. Furthermore it investigates the impact of 2013 global financial crisis on the chosen company.
Nestle is the largest consumer foods company in the world (Nestle Global). Today, the company operates in 86 countries around the world, employs nearly 283,000 people and it has 480 factories all over the world. It was founded and is headquartered in Switzerland. Nestlé originated in 1905 by merger of the Anglo-Swiss Milk Company, which was established in 1866 by brothers George Page and Charles Page, and the Farine Lactée Henri Nestlé Company, which was founded in 1866 by Henri Nestlé. Nestlé is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices like nutrition, health and wellness, consumer communication, human rights in our business activities, leadership and personal responsibility, safety and health at work, supplier and customer relations and environmental sustainability. Hence in terms of Human resource management, organization is committed to safety and health of its employees. Nestlé uses the philosophy of “Good food for a good life” .This is the reason why Nestlé has win hearts of its consumers due to nutritious and tasty food. Nestlé is increasing its products line day by day.
Nestle Australia has above six thousand employees, and twelve factories, it further has five distribution centers, twenty offices in the Oceania region, which includes Australia, New Zealand, and the Pacific Islands. Nestle Australia is a subsidiary of the parent company (Nestle Australia). The company many popular brands including Maggi, Allen’s, Nescafe, Milo, Carnation, Uncle Tobys, kit kat and Purina. The ultimate mission is to create value for everyone including employees, customers and shareholders.
Employees at Nestle are supervised by cooperating and helping management and therefore every member can directly contact the top management for the problems faced and the decisions made. The company is not having a formal boss and employee structure; instead it is a group work structure which has a very helpful sketch. This structure clearly shows that the CEO is having a direct interaction with every manager and therefore every decision is made with mutual consignment. Similarly whenever the company assigns a certain managerial role like the decisional, interpersonal, informational or any other then the managers can easily ask the CEO about the preference of the role and thereby they can act upon the most efficient and the most useful plan. In other words the managers always ask the CEO about the preference and then they look for the role appropriate and suitable to the preference. They can perform any role but situation decides the appropriate role.
The employees of the company are very much motivated because of the motivation steps taken by the company (Nestle Global). The company is of the view that the employees are business partners for the company and therefore they are treated as partners. The management adopts positive reinforcement and avoids negative reinforcement and punishment. This is because positive reinforcement not only engages the labor in activities related to the goals of the business but also delights the employees. This is the main goal of Nestle and therefore they are very much concerned about it.
Punishment is just like a poison and results in the development of resistance by the employees in the company. This is why the managers are always instructed to avoid punishment as it can result in the development of resistance in not only the employees but also the labor unions and this can cause a lot of problems for the company. Extinction is a very important role and therefore it has to be played by every manager of the company. That is why this role has a very great importance for every manager. The company instructs the managers to be extinct, but not rude because this can degrade and demoralize the employees.
REASON FOR SELECTION
The most basic reason for selection of Nestle was that since it is world’s largest consumer goods company and if its performance is affected by financial crisis, there will be long run impacts on everyone. Moreover as Nestle Australia has more than 6000 employees and HR issues being faced need to be resolved, as performance of HR department translates into performance of overall company.
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