PROJECT OF HUMAN RESOURCE DEVELOPMENT

HR Processes in Nestle co., Ltd.

Submitted To:
Sir Umar (Gold Medalist)

Submitted By:
SHUMAIL MIR
MUHAMMAD USMAN
RANA NOUMAN
HAMZA
AMMAR
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Mission Statement
Nestle mission statement is “the world’s leading nutrition, health, and wellness company.
Our mission of “Good Food, Good Life” is to provide consumers with the best tasting,
most nutritious choices in a wide range of food and beverage categories and eating
occasions, from morning to night.” This statement indicates that Nestle ranks the
experiences of its customers at the top of its priorities. It has these major points:

1. Boosting health
2. Improving lives
3. Improving communities

For years, Nestle has been recognized for its diligence in ensuring that all the food products
that it produces comply with the minimum health standards and requirements. The company
does this to ensure that it keeps all the people protected from contaminations while at the
same time offering them quality foods to meet their needs. Moreover, in the second point,
Nestle recognizes that the physical, social and economic stability of people comes first before
other profiteering objectives. By doing this, Nestle has constantly boosted the overall health
of communities.

Vision Statement
Nestle vision statement is “to be a leading, competitive, Nutrition, Health and Wellness
Company delivering improved shareholder value by being a preferred corporate
citizen, preferred employer, preferred supplier selling preferred products.” Setting pace
and steering others in the right direction is what Nestle is good at based on this statement.
The following components relate to this statement. 

1. Be a leading company
2. Delivering improved values

Based on its long experience that extends as far as the early 1900s, Nestle has learned the art
leadership. Today, the company has been credited in nudging many other corporations in the
right direction quality-wise. It does this through its extricated services to everyone it serves.
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Organizational Structure of Nestlé is Hierarchical.

Organizational structure is the formal framework by which jobs tasks are divided, grouped,
and coordinated. Nestlé is a function-based organization. The tasks are divided into separate
jobs and then these jobs are grouped together under different departments i.e. functional
departmentalization is found in organization. Each major area is kept under the manager who
is specialist in that concerned field and is responsible for all activities, which that department
performs.
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Introduction
As the top food and processing brand in the world, Nestle Corporation has some of the most
progressive mission and vision statements. The company has set standards in this sector with
its variety of products. In fact, it is one of the few corporations that have celebrated their 150
anniversary and prides in the status they have achieved so far. 

Nestle has particularly honored its vision statement by being a leader in all areas of its
operations, including in how it relates to other stakeholders. Such a success agrees with the
definition of a corporate vision statement as a description of what the corporation wants to be
associated with in the long-term. Just like it is known that a corporate vision statement
outlines the strategies for reaching the vision, Nestle’s mission statement emphasizes the
practices that make it a cut above the rest. In addition, the core values of this company show
how important culture and relationships are for Nestle. It is what has enabled the company to
stay competitive for all these years.

1866–1900: Founding and early years

Henri Nestlé , a German-born Swiss confectioner, was the founder of Nestlé and one of the
main creators of condensed milk.

Nestlé's origins date back to the 1860s, when two separate Swiss enterprises were founded
that would later form the core of Nestlé. In the succeeding decades, the two competing
enterprises aggressively expanded their businesses throughout Europe and the United States.
In 1866, Charles Page (US consul to Switzerland) and George Page, brothers from Lee
County, Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham,
Switzerland. Their first British operation was opened at Chippenham, Wiltshire, in 1873.
In 1867, in Vevey, Henri Nestlé  developed milk-based baby food and soon began marketing
it. The following year saw Daniel Peter begin seven years of work perfecting his invention,
the milk chocolate manufacturing process. Nestlé was the crucial co-operation that Peter
needed to solve the problem of removing all the water from the milk added to his chocolate
and thus preventing the product from developing mildew. Henri Nestlé retired in 1875 but the
company, under new ownership, retained his name as Société Farine Lactée Henri Nestlé.
In 1877, Anglo-Swiss added milk-based baby foods to their products; in the following year,
the Nestlé Company added condensed milk to their portfolio, which made the firms direct
and fierce rivals.
In 1879, Nestlé merged with milk chocolate inventor Daniel Peter.
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1901–1989: Mergers

Certificate for 100 shares of the Nestlé and Anglo-Swiss Condensed Milk Co., issued 1.
November 1918
In 1904, François-Louis Cailler, Charles Amédée Kohler, Daniel Peter, and Henri Nestlé
participated in the creation and development of Swiss chocolate, marketing the first chocolate
– milk Nestlé.
In 1905, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk
Company, retaining that name until 1947 when the name 'Nestlé Alimentana SA' was taken
as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its
holding company, Alimentana SA, of Kempttal, Switzerland. Maggi was a major
manufacturer of soup mixes and related foodstuffs. The company's current name was adopted
in 1977. By the early 1900s, the company was operating factories in the United States, the
United Kingdom, Germany, and Spain. The First World War created demand for dairy
products in the form of government contracts, and, by the end of the war, Nestlé's production
had more than doubled.
A 1915 advertisement for "Nestles Food", an early infant formula

In January 1919, Nestlé bought two condensed milk plants in Oregon from the
company Geibisch and Joplinfor $250,000. One was in Bandon, while the other was
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in Milwaukie. They expanded them considerably, processing 250,000 pounds of condensed

milk daily in the Bandon plant.
Nestlé felt the effects of the Second World War immediately. Profits dropped from
US$20 million in 1938 to US$6 million in 1939. Factories were established in developing
countries, particularly in Latin America. Ironically, the war helped with the introduction of
the company's newest product, Nescafé  ("Nestlé's Coffee"), which became a staple drink of
the US military. Nestlé's production and sales rose in the wartime economy.
After the war, government contracts dried up, and consumers switched back to fresh milk.
However, Nestlé's management responded quickly, streamlining operations and reducing
debt. The 1920s saw Nestlé's first expansion into new products, with chocolate-manufacture
becoming the company's second most important activity. Louis Dapples was CEO till 1937
when succeeded by É douard Muller till his death in 1948.
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth
accelerated and numerous companies were acquired. In 1947 Nestlé merged with Maggi, a
manufacturer of seasonings and soups. Crosse & Blackwell followed in 1950, as
did Findus (1963), Libby's (1971), and Stouffer's(1973). Diversification came under
Chairman & CEO Pierre Liotard-Vogt with a shareholding in L'Oreal in 1974 and the
acquisition of Alcon Laboratories Inc. in 1977 for 280 million dollars.
In the 1980s, Nestlé's improved bottom line allowed the company to launch a new round of
acquisitions. Carnation was acquired for $3 billion in 1984 and brought the evaporated
milk brand, as well as Coffee-Mate and Friskies to Nestlé. In 1986 Nestlé Nespresso
S.A. was founded. The confectionery company Rowntree Mackintosh was acquired in 1988
for $4.5 billion, which brought brands such as Kit Kat, Smarties, and Aero.

1990–2011: Growth internationally

The first half of the 1990s proved to be favorable for Nestlé. Trade barriers crumbled, and
world markets developed into more or less integrated trading areas. Since 1996, there have
been various acquisitions, including San Pellegrino (1997), D'Onofrio (1997), Spillers Pet
foods (1998), and Ralston Purina(2002). There were two major acquisitions in North
America, both in 2002 – in June, Nestlé merged its US ice cream business into Dreyer's, and
in August, a US$2.6 billion acquisition was announced of Chef America, the creator of Hot
Pockets. In the same time-frame, Nestlé entered in a joint bid with Cadbury and came close
to purchasing the American company Hershey's, one of its fiercest confectionery competitors,
but the deal eventually fell through.
In December 2005, Nestlé bought the Greek company Delta Ice Cream for €240 million. In
January 2006, it took full ownership of Dreyer's, thus becoming the world's largest ice cream
maker, with a 17.5% market share. In July 2007, completing a deal announced the year
before, Nestlé acquired the Medical Nutrition division of Novartis Pharmaceutical
for US$2.5 billion, also acquiring, the milk-flavoring product known as Ovaltine, the "Boost"
and "Resource" lines of nutritional supplements, and Opti fast dieting products.
In April 2007, returning to its roots, Nestlé bought US baby-food
manufacturer Gerber for US$5.5 billion. In December 2007, Nestlé entered into a strategic
partnership with a Belgian chocolate maker, Pierre Marcolini.
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Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale
was to form part of a broader US$39.3 billion offer, by Novartis, for full acquisition of the
world's largest eye-care company. On 1 March 2010, Nestlé concluded the purchase of Kraft
Foods's North American frozen pizza business for US$3.7 billion.
Since 2010, Nestle has been working to transform itself into a nutrition, health and wellness
company in an effort to combat declining confectionery sales and the threat of expanding
government regulation of such foods. This effort is being led through the Nestlé Institute of
Health Sciences under the direction of Ed Baetge. The institute aims to develop "a new
industry between food and pharmaceuticals" by creating foodstuffs with preventative and
corrective health properties that would replace pharmaceutical drugs from pill bottles. The
Health Science branch has already produced several products, such as drinks and protein
shakes meant to combat malnutrition, diabetes, digestive health, obesity, and other diseases.
In July 2011, Nestlé SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for
about US$1.7 billion. On 23 April 2012, Nestlé agreed to acquire Pfizer Inc.'s infant-
nutrition, formerly Wyeth Nutrition, unit for US$11.9 billion, topping a joint bid from
Danone and Mead Johnson.

2012–present: Recent developments

In recent years, Nestlé Health Science has made several acquisitions. It acquired Vitaflo,
which makes clinical nutritional products for people with genetic disorders; CM&D Pharma
Ltd., a company that specializes in the development of products for patients with chronic
conditions like kidney disease; and Prometheus Laboratories, a firm specializing in
treatments for gastrointestinal diseases and cancer. It also holds a minority stake in Vital
Foods, a New Zealand-based company that develops kiwifruit-based solutions for
gastrointestinal conditions as of 2012.
Another recent purchase included the Jenny Craig weight-loss program, for US$600 million.
Nestlé sold the Jenny Craig business unit to North Castle Partners in 2013. In February 2013,
Nestlé Health Science bought Pamlab, which makes medical foods based on L-methylfolate
targeting depression, diabetes, and memory loss. In February 2014, Nestlé sold its Power Bar
sports nutrition business to Post Holdings, Inc. Later, in November 2014, Nestlé announced
that it was exploring strategic options for its frozen food subsidiary, Davigel.
In December 2014, Nestlé announced that it was opening 10 skin care research centers
worldwide, deepening its investment in a faster-growing market for healthcare products. That
year, Nestlé spent about $350 million on dermatology research and development. The first of
the research hubs, Nestlé Skin Health Investigation, Education and Longevity Development
(SHIELD) centers, will open mid 2015 in New York, followed by Hong Kong and Sã o Paulo,
and later others in North America, Asia, and Europe. The initiative is being launched in
partnership with the Global Coalition on Aging (GCOA), a consortium that includes
companies such as Intel and Bank of America.
Nestlé announced in January 2017 that it was relocating its US headquarters from Glendale,
California, to Rosslyn, Virginia outside of Washington, DC.
In March 2017, Nestlé announced that they will lower the sugar content in Kit
Kat, Yorkie and Aero chocolate bars by 10% by 2018. In July followed a similar
announcement concerning the reduction of sugar content in its breakfast cereals in the UK.
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The company announced a $20.8 billion share buyback in June 2017, following the
publication of a letter written by Third Point Management founder Daniel S. Loeb, Nestlé's
fourth-largest stakeholder with a $3.5 billion stake, explaining how the firm should change its
business structure. Consequently, the firm will reportedly focus investment on sectors such as
coffee and pet care and will seek acquisitions in the consumer health-care industry.
In September 2017, Nestlé S.A. acquired a majority stake of Blue Bottle. While the deal's
financial details were not disclosed, the Financial Times reported "Nestle is understood to be
paying up to $500m for the 68 per cent stake in Blue Bottle". Blue Bottle expects to increase
sales by 70% this year.
In September 2017, Nestlé USA agreed to acquire Sweet Earth, a California-based producer
of plant-based foods, for an undisclosed sum.
In January 2018, Nestlé USA announced it is selling its US confectionary business to Ferrero,
an Italian chocolate and candy maker. The company was sold for a total of an estimated $2.8
billion.
In May 2018, it was announced that Nestlé and Starbucks struck a $7.15 billion distribution
deal, which allows Nestlé to market, sell and distribute Starbucks coffee globally and to
incorporate the brand's coffee varieties into Nestlé's proprietary single-serve system,
expanding the overseas markets for both companies.
Nestle set a new profit target in September 2017 and agreed to offload over 20 of its US
candy brands in January 2018. However, sales grew only 2.4% in 2017, and as of July 2018,
the share price declined more than 8%. While some suggestions were adopted, Loeb said in a
July 2018 letter that the shifts are too small and too slow. In a statement, Nestle wrote that it
was "delivering results" and listed actions it had taken, including investing in key brands and
its global coffee partnership with Starbucks. However, activist investors disagreed, leading
Third Point Management to launch Nestle NOW, a website to push its case with
recommendations calling for change, accusing Nestle of not being as fast, aggressive, or
strategic as it needs to be. Activist investors called for Nestle to divide into three units with
distinct CEOs, regional structures, and marketing heads - beverage, nutrition, and grocery;
spin off more businesses that do not fit its model such as ice cream, frozen foods, and
confectionery; and add an outsider with expertise in the food and beverage industry to the
board.
In October 2018, Nestlé announced the launch of the Nestlé Alumni Network, through a
strategic partnership with SAP & Enterprise Alumni, to engage with their over 1
million Alumni globally.
In September 2018, Nestlé announced to sell Gerber Life Insurance for $1.55 billion.
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A shared responsibility
Line managers have the prime responsibility for building and sustaining an environment
where people have a sense of personal commitment to their work and give their best to ensure
our Company’s success. They care for and develop the leaders of tomorrow.

Line managers decide on all people matters under their influence, within the boundaries set
by the policies and principles, acting as the final decision makers.

The Human Resources (HR) structure enables and empowers them in establishing business
needs and their corresponding people requirements.

Therefore, the mission of HR managers and their teams is to provide professional guidance to
line managers aiming to deliver superior business results by optimizing the performance of
our people, while ensuring exemplary working conditions.

With a ‘Nestlé in the Market’ (NiM) approach, HR has adopted a streamlined approach to
ensuring functional leadership and the highest level of focus, clarity, and efficiency. Our
structure is based on three dedicated areas which provide specialized services (Centers of
Expertise),

deploy HR strategies within a specific business (Business Partners) and perform transactional
activities (Employee Services).

Employment and working conditions

We are committed to providing our employees all over the world with good working
conditions, a safe and healthy work environment, and flexible employment possibilities that
support a better balance of private and professional life consistent with our ambition as a
leading Nutrition, Health and Wellness Company.

As such, we provide flexible working conditions whenever possible and encourage our
employees to have outside interests especially community involvement.

Those with line management responsibilities are required to take personal ownership of
safety and health within their area of responsibility and are encouraged to develop their
capability in this area.

Nestle’s commitment however goes beyond its own employees. We care about all people
working inside or outside our premises under contractual obligations with service providers
and we insist that they also take steps so that adequate working conditions are made available
to them.
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We believe that it is essential to build a relationship based on trust and respect of employees
at all levels. We do not tolerate any form of harassment or discrimination.

Therefore, managers are committed to build and sustain, with their teams, an environment of
mutual trust. HR ensures that a respectful dialogue is present and the voice of the employees
is heard.

Corporate policy:

Policy on Conditions of Work and Employment

Total rewards
Attracting new hires and keeping current employees engaged is not only about remuneration
and benefits based on solid performance. It is also about the hard-earned value and trust that
our name brings to those who work with us; the relationships with our line managers and
fellow workers; recognition and experiences enjoyed while working for a diverse global
company; and possibilities to learn and grow. These are as a whole, the Total Rewards we
receive.

Nestlé, therefore, focuses on Fixed Pay, Variable Pay, Benefits, Personal Growth and
Development and Work Life Environment as the key elements that define Total Rewards. In
the spirit of developing a high-performance culture, those elements need to correspond to
what is valued by employees in each and every market, and which demonstrate how Nestlé is
committed to giving each employee the opportunity to grow, evolve and contribute.

contractual obligations with service providers and we insist that they also take steps so that
adequate working conditions are made available to them.

We believe that it is essential to build a relationship based on trust and respect of employees
at all levels. We do not tolerate any form of harassment or discrimination.

Therefore, managers are committed to build and sustain, with their teams, an environment of
mutual trust. HR ensures that a respectful dialogue is present and the voice of the employees
is heard.

Nestlé Total Rewards programmed must be established within the social and legal framework
of each country, and with respect to applicable collective agreements.

It is the responsibility of each manager to propose the remuneration of their employees within
the framework of Company policy. Sufficient time should be spent with each employee to
explain her or his specific situation in terms of remuneration and benefits, if needed with the
support of HR management, in order to communicate properly, clearly and with sufficient
transparency.
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Corporate policy:

Nestlé Total Rewards Policy

Training and Learning

Learning is part of the Company culture. Employees at all levels are systematically
encouraged to consider how they upgrade their knowledge and skills.

The Company determines training and development priorities. The responsibility for turning
these into actions is shared between employees, line managers and the Human Resources.

Experience and on-the-job training are the primary source of learning. Managers are
responsible for guiding and coaching employees to succeed in their current positions.

Nestlé employees understand the importance of continuous improvement, as well as sharing

knowledge and ideas freely with others. Practices such as lateral professional development,
extension of responsibilities, and cross functional

teams are encouraged to acquire additional skills, enrich job content and widen
accountability.

Nestlé also offers a comprehensive range of training activities and methodologies to support
everyone’s learning and growth. Attending
a programmed should never be considered

as a reward but as a component of on-going development.

Additionally, corporate leadership programmed help us develop and retain the best-qualified
management. Leaders have the opportunity
to attend either international training courses

at Rive-Reine, which build integrated business understanding and solidify and reinforce
Nestlé values and principles, or programmed conducted by our strategic learning partners.

Talent, development
and performance management
At Nestlé, a high-performance culture supported by differentiated rewards and development
is key to the delivery of individual and business objectives. This is driven by the alignment of
clear and challenging responsibilities and ensuring that employees are aware of how their
work impacts Nestlé.

The line manager and employee work together to ensure that challenging objectives are set
and effectively evaluated throughout the year. This further enables managers to acknowledge
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high performance and reward employees accordingly, while ensuring low performance is
properly managed with integrity.

Employees receive regular feedback on their performance and career aspirations through
a variety of tools and processes such as the Performance Evaluation process (PE), the
Progress and Development Guide (PDG) and
360° assessments. Each manager dedicates the necessary time to the monitoring of objectives
and regular coaching of employees through the year.

Each employee, supported by the line manager, is in charge of her or his own professional
development, whereby the employee is encouraged to express career objectives and
expectations in an open dialogue. We aim to retain and motivate employees by offering
attractive but realistic career moves allowing them to develop their skills in the long-term.

Given the importance Nestlé puts on cultural diversity, employees who are interested in inter-
national assignments can be given the opportunity to work in different countries. The
international dimension of the Group is used as a competitive advantage to retain and develop
talented people.

At Nestlé, promotions are based on sustained performance from a results and behavior
standpoint, as well as future potential. The Company undertakes an active and rigorous
succession planning process at all levels of the organization to ensure that there is a strong
pipeline of successors ready to meet future needs.

We are committed to ensuring sustainable conditions for a gender balanced and diverse
company. As such, Nestlé has focused on removing barriers to career progression for women
and men by developing a more flexible work environment, initiating mentoring schemes,
having flexible career paths and providing dual career support.

HR management provides the support for implementing the necessary tools, and partners
with line managers to prepare the resources necessary for the continued development of
people and the Company.

Corporate policy:

Expatriation Policy

Employee Relations
Since its founding, Nestlé has built a culture based on values of trust, mutual respect and
dialogue. Nestlé management and employees all over the world work daily to create and
maintain positive individual and collective relationships, and are expected to do so as a core
part of their job.

Nestlé not only upholds the freedom of association of its employees and the effective
recognition of the right to collective bargaining, but also ensures that direct and frequent
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communication is established in the workplace. While dialogue with trade unions is essential,
it does not replace the close relationship that our management maintains with all employees.

In the spirit of continuous improvement, we encourage two-way dialogue with our employees

that goes beyond the traditional aspects of collective bargaining in order to share knowledge
and to jointly find opportunities related to important matters such as Creating Shared Value,
the health and safety in the workplace and our concern for the environment.

The Company and employee representatives are expected to make all necessary efforts
to develop fair and constructive dialogues, overcome the difficulties that they might
encounter, reach sustainable agreements and implement them.

A flexible and dynamic organization

The Human Resources management described in this document requires and supports an
organisation “on the move”.

Nestlé is committed to continue the journey to establishing flat and flexible structures with
minimal levels of management and broad spans of control, which enable people development,
increase efficiency, and ease implementation
of our “Nestlé Management and Leadership Principles”.

Less hierarchical layers call for increased cooperation between colleagues. This is what will
make the organisation more flexible and more accountable. Indeed, it supports today’s and
tomorrow’s business requirements for an agile and innovative company working with ever
competitive intensity.

These simple beliefs have inspired us to create an environment that puts the emphasis not just
on individual responsibility and autonomy, but also

on a strong willingness to support others, to work in multi-skilled teams, and to cooperate

rather than to compete internally.

A dynamic organisation creates a climate

of innovation and allows people to think from different perspectives. At Nestlé we encourage
our people to take risks. Mistakes may be made but there is always a willingness to correct
and learn from them.

We combine the scope and brand strength

of a global company with the creativity and knowledge of a local business. As a result, people
can have far-reaching influence every day and explore their full long-term potential,
propelled by continual support and a collaborative approach by line managers and employees.