An Assignment

On
HRM Practices in Bangladesh: Nestlé

For Partial Fulfilment of International Business,

Bachelor of Business Administration (BBA),
Department of Business Administration

Manarat International University (MIU)

Submitted To:

Sk. Habibur Rahaman

Assistant Professor
Department of Business Administration
Manarat International University
Gulshan, Dhaka-1212

Submitted By:

Name: Rubaba Karim

ID: 2056BBA04244
Department of Business Administration
Manarat International University
Gulshan, Dhaka-1212
Date of Submission:
What is HRM (Human Resources Management)?

Human resource management (HRM) is the practice of recruiting,

hiring, deploying and managing an organization's employees. HRM is
often referred to simply as human resources (HR). A company or
organization's HR department is usually responsible for creating,
putting into effect and overseeing policies governing workers and the
relationship of the organization with its employees. The term human
resources was first used in the early 1900s, and then more widely in the
1960s, to describe the people who work for the organization, in
aggregate.

HRM is employee management with an emphasis on those employees

as assets of the business. In this context, employees are sometimes
referred to as human capital. As with other business assets, the goal is
to make effective use of employees, reducing risk and maximizing
return on investment (ROI).
The modern HR technology term human capital management (HCM)
has been used more frequently compared to the term HRM. The term
HCM has had widespread adoption by large and midsize companies and
other organizations of software to manage many HR functions.

Personnel Aspects of a Manager’s Job

 Conducting job analyses (determining the nature of each
employee’s job)
 Planning labor needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Managing wages and salaries (compensating employees)
 Providing incentives and benefits
 Appraising performance
 Communicating (interviewing, counseling, disciplining)
 Training and developing managers
 Building employee commitment

The importance of human resource management

The role of HRM practices are to manage the people within a workplace
to achieve the organization's mission and reinforce the culture. When
done effectively, HR managers can help recruit new professionals who
have skills necessary to further the company's goals as well as aid with
the training and development of current employees to meet objectives.

A company is only as good as its employees, making HRM a crucial part

of maintaining or improving the health of the business. Additionally, HR
managers can monitor the state of the job market to help the
organization stay competitive. This could include making sure
compensation and benefits are fair, events are planned to keep
employees from burning out and job roles are adapted based on the
market.

How does HRM work?

Human resources management works through dedicated HR

professionals, who are responsible for the day-to-day execution of HR-
related functions. Typically, human resources will comprise an entire
department within each organization.
HR departments across different organizations can vary in size,
structure and nature of their individual positions. For smaller
organizations, it is not uncommon to have a handful of HR generalists,
who each perform a broad array of HR functions. Larger organizations
may have more specialized roles, with individual employees dedicated
to functions such as recruiting, immigration and visa handling, talent
management, benefits, compensation and more. Though these HR
positions are differentiated and specialized, job functions may still
overlap with each other.

Objectives of human resource management

The objectives of HRM can be broken down into four broad categories:

Societal objectives: Measures put into place that responds to the

ethical and social needs or challenges of the company and its
employees. This includes legal issues such as equal opportunity and
equal pay for equal work.
Organizational objectives: Actions taken that help to ensure the
efficiency of the organization. This includes providing training, hiring
the right number of employees for a given task or maintaining high
employee retention rates.

Functional objectives: Guidelines used to keep HR functioning properly

within the organization as a whole. This includes making sure that all of
HR's resources are being allocated to their full potential.

Personal objectives: Resources used to support the personal goals of

each employee. This includes offering the opportunity for education or
career development as well as maintaining employee satisfaction.

Within the unit of each organization, the objectives of HRM are to:

 Help the organization achieve its goals by providing and

maintaining productive employees.
 Efficiently make use of the skills and abilities of each employee.
 Make sure employees have or receive the proper training.
 Build and maintain a positive employee experience with high
satisfaction and quality of life, so that employees can contribute
their best efforts to their work.
 Effectively communicate relevant company policies, procedures,
rules and regulations to employees.
 Maintaining ethical, legal and socially responsible policies and
behaviors in the workplace.
  Effectively manage change to external factors that may affect
employees within the organization.

HRM nowadays around the globe works for all relevant

employees while treating them as important assets for the
organization. The major functions of HRM are as follows:

 To ensure that the organization preaches equal and unbiased

employment opportunities and other regulatory obligations.
 To perform job analysis to specify objectives and requirements of
jobs in the organization.
 To identify employee requirements and interests that
eventually lead the organization to achieve its objectives.
 To formulate and implement plans and strategies that
enriches employee interests and business requirements.
 To recruit potential candidates who will fit in the organization and
eventually achieve the business objectives.
 To maintain the transition with the organization in order to
ensure business continuity by filling the vacant positions within
the organization.
 To provide training and development opportunities to the
employees.
  To develop and ensure implementation of organizational
development programs.
 To design and implement performance appraisal systems for
evaluating performance.
 To assist employees in developing and implementing career plans.
 To formulate and implement compensation systems for
employees.
 To mediate the correlation between organizations and its units.
 To make policies for discipline and grievance handling.
 To develop intra-organization communication systems.
 To ensure employee health and safety programs

Even though, there are these set activities of HRM, it’s

important to clarify the distinction between HR practices and HRM
activities, since without a clear understanding it is not possible to
correlate the two. Both are required for an HR caution to reach its full
potential and for an organization to optimize its human capital
investment.

HR practices involve the strategic approaches of HRM. They

formulate the foundation and guidance for managing the
organization’s employees and should coordinate with the objectives
and business plans. Some examples of HR practices include:
  Setting up the vision, mission and goals of the HR function of the
organization
 Planning, organizing, leading and controlling the HR function
 Measuring the impacts of employee developmental programs
 Continuous approaches to improve the quality of the work
environment
 Train & Develop young talent and future leadership
 Regularly conducting the motivational programs for the
employees
 Working with relevant management level for ensuring
performance evaluations
 Strategize employee progression and advancement opportunities

Apart from the above-mentioned activities and HR practices, here are

the top HR best practices. These best practices areas include
recruitment and selection, training and development,
transparency, employee benefits, employee incentives,
compensation and evaluations, compliance, and terminations.

1. Recruitment and Selection

For hiring high-performers, companies are turning to
innovative processes. There are different ways to assess
 candidates who will be a good fit for the company, both as a high-
performer and as a cultural fit.
 Panel-Based Interviews: According to Google’s study, both
the ideal number of panelists and ideal number of
interviews to be four or fewer. The study showed that any
interviews beyond four added little or no value to the
process. More interviews can simply cause wasted time and
resources and led to disinterest.
 Better Advertising for Job Openings: For attracting top
talents and high-performers, company should not only list
the skills wanted from employees but also give the
candidates the reason to choose one organization over
another.
 Internships: Paid internship gives a better result in terms of
hiring full time employees. Research show among the paid
interns, 60% gets hired whereas the number is only 37% for
unpaid interns. To get an intern to a full-time position, it’s
better to invest in them early on.
 Video Interviewing: Video interview is a great tool for
screening out potential candidates and recognize the
passion and enthusiasm of them towards the job.
 Be Selective: Utilizing digital tracking will aid to keep track of
recruitment metrics like effective hiring sources. Also other
tools like interviews, personality assessments etc. can help
to do so.

2. Training and Development

One of the significant HR best practice is to invest in training and
development opportunities to improve the skill of existing
workforce. Retaining the employees by supporting and
encouraging the to grow is a big challenge in this era where
industries are advancing at an ever-increasing pace.
  Invest in Training and Development: One good way to
reduce training cost is to recruiting interns and later on hire
them full-time. Once you’ve found your ideal employees,
you’ll need to keep them at the top of their field, and as
technology develops at an ever-increasing rate, the
importance of training employees cannot be overlooked.
 Focus on Skill-Specific Training: Once crucial element HR
function is to focus on skill-specific forms of training.
Focusing on teaching skills that don’t line up with the
work requirements or company objectives, could be like
wasting time and money.
 Younger Employees Value Learning: One best practices
should also consider the fact that young employees want
value learning more than their predecessors. Often it’s a
great news for employers because it means you have a
workforce full of employees who are ready to increase their
skills, advance in their careers.

3. Transparency
An important HR practice is to always maintain transparency
and be open with employees regarding the success and failures
of the business. Organizations that foster an open environment of
feedback and communication make employees feel trusted,
respected, and valued.
In order to be a high-impact HR department, the company should:
 Promote Collaboration and Idea Sharing: Focus on creating
an environment that promotes collaboration of ideas and
information sharing. Employees who are informed about
business operations are better able to share their ideas, and
think it’s important to be able to contribute to company
decisions that impact their careers.
  Maintain Openness and Transparency: When companies
are honest and open with their employees, it promotes
a culture of trust between both employer and employee.

4. Employee Benefits
There are ample of benefits that can be offered to employees, but
which ones provide the greatest value? The best benefit plans
take a strategic approach to accomplishing company goals and
retaining great employees as well as ensuring your employees
understand their benefits.
 Choose Benefits that Show the company Value Employees:
Learnings from HR practices can provide some great insight
into where the focus should be of the company’s budget
when it comes to employee benefits. It also helps to
understand which benefits may help to retain the best
employees. Company can choose to provide medical and
dental coverage, health and fitness centers, subsidized
tuition, or any other benefits that will show it value the
employees.
 Use Benefits to Solve Workplace Issues: It is important to
identify where a company is losing money and why the
company might be struggling with employee retention. If a
company want to hire and keep the best talent, it has to
treat them like they’re the best talent.

5. Employee Incentives
For incentives to be effective, HR best practice must be
implemented in the correct manner, or it may demotivate
employees instead of motivating them. Here are some HR best
practices for providing effective employee incentives.
 Know what Motivates Employees: One way to motivate
employees is using commission or productivity as an
 indicator of a raise, and not to limit raises to an annual
review or bonus at the end of the year. Employers
who simply raise wages once a year regardless of
performance are not incentivizing employees to do their best
because employees begin to simply expect the raise no
matter what.
 Pay Raises vs. Bonuses: A study found that employees valued
a base-pay raise over a single bonus, because it has long-
term effects. So if a company is weighing the overall benefits
of pay raises versus a handsome bonus, it’s better to go with
the pay raise.
 Be Creative with Incentives: There are many incentives
other than ‘monetary’ that keep employees motivated,
such as a recognition and rewards program or the
use of social recognition to acknowledge employees for the
work they do.

6. Compensation
To hire or retain great employees, you need to have great
compensation plans in place. Above-average employees deserve
above-average compensation, and you want to show your
employees that you value them and the work they do.

Some HR best practices for compensation include:

 Combining Good Benefits with Compensation: A
combination of good benefits and compensation can
help show employees that the company values and
appreciates their contribution as workers and their well-
being as people.
 Vary Compensation Options: Increasing compensation
offer doesn’t always mean adding more numbers. There
 can be other types of compensation such as additional
vacation days, company discounts etc.
 Compensation Transparency: Transparency and
communication are two major elements when it comes
to winning compensation strategy. A study showed that most
employees don’t know how their pay compares to the
rest of the market. If employees don’t understand
organization’s comp strategy, then employees are much
more likely to become dissatisfied on that point.
Compensation strategy should be based on the productivity
and contributions of the employees.

7. Compliance
Issues It can be very difficult to juggle the complexities of
compliance issues with the daily tasks of running other human
resources practices in the workplace. Here are some
human resource practices to prevent compliance issues.
 Utilize HR Software: A good way to avoid compliance issues
are to use HR software to simplify compliance practices. This
will help to find and correct errors quickly and avoid future
compliance issues.
 Designate a Point Person for Your HR Team: One of the best
ways to stay up-to-date with compliance is to designate a
point person for your HR team, who has the responsibility to
keep up with new regulations and changing labor laws. They
also have the responsibility to convey this information to the
HR department, which ensures everyone is on the same page
when it comes to legal considerations.

These all are the best practices that an HR function of an organization

can work on. Now, I will describe how these practices are maintained in
my organization NESTLE Bangladesh Ltd.
Nestlé in Bangladesh:

The world’s largest food and nutrition company Nestlé started its first
commercial operation in Bangladesh in 1994. In 1998, Nestlé
Bangladesh became a fully owned subsidiary of Nestlé S.A. (South Asia)
as Nestlé S.A. took over the 40% remaining share from Nestlé
Bangladesh’s local partner (Transcom group). Currently Nestlé
Bangladesh Ltd. has only one factory which is situated at Sreepur, 55
km north of Dhaka. Products like instant noodles, cereals and repacks
milks, soups, beverages and infant nutrition products are being
produced in this factory.

Nowadays, Nestlé Bangladesh Ltd. is a strongly positioned organization.

The Company will continue to grow through its policy of constant
innovation and renovation, concentrating on its core competencies and
its commitment to high quality, with the aim of providing the best
quality food to the people of Bangladesh.

Vision of Nestlé Bangladesh Ltd.:

The vision of Nestlé Bangladesh Ltd. is to be recognized as the most

successful food and beverage company in Bangladesh, generating
sustainable, profitable growth and continuously improving results to
the benefit of shareholders and employees.
HR FUNCTIONS OF NESTLÉ BANGLADESH LTD.

People are the key behind the continued achievement of any

organization. Human Resources Management in Nestlé is based on
values and principles which provide the platform for all people, policies
and actions. Nestlé believes that the long-term success depends on
capacity to attract, retain and develop employees’ who are able to
ensure ongoing and sustainable growth; upon this belief the primary
responsibilities of HR managers are developed whereas Human
Resource department is the custodian of all people policies.

Recruitment and selection, training and development, performance

appraisal, managing pay and benefits, employee relations these are the
very basic practice in HR function like any other organization in Nestlé
Bangladesh Ltd. However, the basic HR practice in Nestlé may be same
like other organizations but the Human resource policy which guides
the whole practice makes it unique from others. This encompasses
guidelines which offer a basis for efficient and effective HR
Management around the globe. Due to business need, the total HR can
be divided into two parts: Head office and factory though both of the
parts report to the HR director at the same. As I was able to collect the
data from the permanent employee of Head office only, I have focused
the HR functions of Head office only. HR teams in head office mainly
look after the Rewards, Organizational Development, learning &
resourcing and Administrative responsibilities.

Here are few best Human Resources Management that nestle practices.