Management and Leading of Nestlé

With over 265,000 employees worldwide and factory locations in more than 85 countries, Nestlé is a truly multinational, multicultural company. Considering that and their ill name of being an ‘aggressive company’ Nestlé should focused on Human Resources Management. And not only on appropriate tools of recruitment and derecruitment but mostly on managing workforce diversity, compensations and training.

The urgent issue is Nestlé’s policy of employment in developing countries. Customers assume, implicitly or explicitly, that “made by Nestlé” means made by Nestlé workers in Nestlé facilities directed by Nestlé management directly accountable to Nestlé’s corporate headquarters. This assumption on the part of consumers is what justifies their faith in the brand – and their willingness to pay. But to a growing extent, Nestlé is not employing thousands of the workers making Nestlé products. For example, in the important growing Indonesian market, only 44% of the workers making Nestlé branded products in four factories and one warehouse are permanent Nestlé workers. This is typical of Nestlé in Asia and other poorer regions of the world. And in Europe over 10% of workers in Herten Germany, for instance, are agency workers making Nestlé Herten product but not working for Nestlé. In Hungary (Diosgyori) over 20%, in Portugal (Avanca) over 25% and in the UK (York) almost one in eight workers are not permanent Nestlé employees. The use of third party producers (“co-packers”) will increasingly mean that the branded product for which consumers often pay more will come out of a non-Nestlé, “non-branded” factory, often a local one with no global brand or reputation to protect, but still with recognisible logo. Nestlé should take a close look at their employment practices so they can guarantee that branded Nestlé products are made in Nestlé facilities by Nestlé workers and managers on decent and permanent Nestlé work contracts.

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An example of management which noticed the importance of diversity may be Nestlé in USA. The are using a strong Supplier Diversity Program. They claim to selecting only those suppliers who can successfully meet Nestlé’s regional and international needs, which allows them to develop a strong, flexible and competitive supply base, and pass those improvements on to the customer. Not ignoring minority, woman and veteran-owned businesses tend to hire diverse employees. In supporting these business Nestlé support a growing segment of consumer community and gain their loyalty. And by retaining qualified, diverse suppliers, they can gain a distinct competitive advantage that can significantly impact bottom line.

And this is the advertisement from Nestlé

Created by : Lisa Maritseda (group3)

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