best practices at nestle malaysia

8/10/2019 Best Practices at Nestle Malaysia

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GGrowingrowing RResourcingesourcing EEngagingngaging AAligningligning TTransformingransforming

HR @ Nestle HR @ Nestle Partnering with the BusinessPartnering with the Business

Ahmad Fauzi YahyaNestle Malaysia

Ahmad Fauzi YahyaNestle Malaysia




v What would you like to learn?

v What is your objective for today’s session?

v What you would like to achieve?

QUESTIONS




Nestle has a great story to tell…

• Henri Nestle becameinterested in baby food dueto the high infant mortalityrate in Switzerland

• He developed “FarineLactee Nestle” in 1867 andsaved an infant’s life afterhis neighbour was unable tobreastfeed

• “Farine Lactee Nestle” hashelped save the lives ofmany children the world over




Worldwide, Over 6'000 Brands and 10'000 Products

In Malaysia..

Brands & Products




World's Larges…Food, Nutrition, Health & Wellness Company

employees

operating companies

factories

countries

Global presenceSales by Regions

37.5% - Europe,

43.7% - Americas18.8% - Asia, Oceania, and Africa

Global presenceSales by Regions

37.5% - Europe,

43.7% - Americas18.8% - Asia, Oceania, and Africa

2008 Financial Performance(Key Figures)

Sales - CHF109.9 bioOrganic Growth - 8.3%

EBIT - 14.3%

2008 Financial Performance(Key Figures)

Sales - CHF109.9 bio

Organic Growth - 8.3%EBIT - 14.3%

research, technology & developmentCentres




NestléMalaysia since 1912

• No.1 FMCG Company

• 11% of the total Malaysianprocessed food basket

• A top 20 KLSE company

• No.1 FMCG Company• 11% of the total Malaysian

processed food basket

• A top 20 KLSE company

halal products

billion turnoverFactoriesSales Offices

employees




Our Vision…

““To be a respected, trustworthyTo be a respected, trustworthy

food, nutrition, health, & wellnessfood, nutrition, health, & wellnesscompanycompany””




Our Mission…

““To Nourish Malaysia/SingaporeTo Nourish Malaysia/Singapore””




The Transformational Challenge…

With vision, we anticipate the future,With vision, we anticipate the future,

through our actions, we will shape it..through our actions, we will shape it..

-- Peter BrabeckPeter Brabeck--LetmatheLetmathe

Chairman & CEO, NestleChairman & CEO, Nestle

....NestleNestle’’s Blueprint for the Futures Blueprint for the Future




Why HR Exists?

I just want a pair of handsI just want a pair of hands……

unfortunately a person comes with it..unfortunately a person comes with it..

-- Henry FordHenry Ford




Moving Forward….

Aligning People Strategy Towards 2020

Employer

BrandingNestle AsNest le As

Employer Of Choice Employer Of Choice

EnablingHR Programs& Practices

G.R.E.A.T. Strateg ic Initiat ives

Employee Value Proposition•Rewardin g Career

•Enr iching Development

•Balanced

Qual i ty Work Life The WayWe WorkT.R.I.P

Develop People

Performance Management

T R A I N I N G

T R A I N I N G

R E T R A

I N I N G

R E

T R A I N I N G

CONTINUOUS LEARNINGCONTINUOUS LEARNING

HR as Key Enabler

Succession Management

Development & Talent Retention

HR as Key Enabler

Succession Management

Development & Talent Retention

Balanced of Quality Work Life

Wellness

Nestle On The Move ~ Change Mgt

Balanced of Quality Work Life

Wellness

Nestle On The Move ~ Change Mgt




Feel: Sense ofbelonging, pride,attachment to theorganisation

Act: Willingness to

go the extra mile;Intention to stay withthe organisation

Think: Belief in &support for thegoals/values of theorganisation

AFFECTIVE

Feel

COGNITIVE

Think

BEHAVIOURAL

Act

These three perspectives impact client satisfaction and business performance.

Engagement ModelTowers Perrin-ISR




Organisations achieve superior business performance when their strategy, culture and people are effectively aligned

For an organisation to maximise business results there must be:1. A culture that is aligned to, or supports execution of, the strategy

2. Effective leadership capability across organisation levels3. Engaged employees whose contribution is maximised

Business

Strategy

Organisational

Culture

Business

Results

People‘Engagement’

Leadership

This framework underpins Nestlé’s Employee Survey Source: Towers Perrin-ISR'

High Performance Framework




Nestle’s Character Foundation

CORPORATE

BUSINESS

PRINCIPLES

MANAGEMENT&

LEADERSHIP

PRINCIPLES

NESTLE

CODE OF BUSINESS

CONDUCT

CORPORATE VALUES

T.R.I.P

CHARACTER

Inspiring People

Adding Value

Opening UpDealingwith others

• Lead people

• Develop people

• Practise

what you preach

• Know yourself

• Insight

• Service Orientation

• Curiosity

• Courage

• Proactiveco-operation

• Impact/Convincingothers

• Resultsfocus

• Initiative

• Innovation &Renovation

Nestle Leadership Framework




Organizational perspective

“Strengthening of Leadership and Performance Culture”

• Continuous & Strong Leadership Pipeline• Stronger Engagement level

• Inculcate Value-Driven performance

• Promote Quality Work life / Wellness

• Strengthen Nestle On The Move (Business Agility)

Customers Need




Customers Need

Business perspective

1. High Calibre Talent

2. Excellent Employees Development program

3. Establish Clear Career Development Program4. Convert Line Managers to People Developer

5. Improve working environment

6. Strengthen Rewards & Recognition Program

7. Aligning Performance Management




HR Services & GLOBE

Payroll Management

Finance & Control / Supply Chain

BUSINESS UNITSPRODUCTION / SALES

MARKETING SERVICES

Human Capital &

OrganizationDevelopment

H R M a n a g e r

O p e r a t i o n s

H R M a n a g e r

G M B

H R M a n a g e r

M a r k e t i n g

H R M a n a g e r

S a l e s / E R

Business

Support

SharedShared

ServicesServices

Competence Competence

CenterCenter

CustomersCustomers

Recruitment &

TalentManagement

Remuneration

BusinessBusinessSupportSupport

HR Support Structure

H R M a n a g e r

G M g t / L G O




Learning & Development Compass




Functional & Leadership Training




In house Training




Learning & Development Programs 2008

•Learning & Development Compass

•Learning & Development Cycle

•E-Learning•Training Caclendar 2008

•How to apply•Role of Line Managers•Course Descriptions

ExternalContents




L&D initiatives in Production




• Organizational Behavior

• Introduction To Marketing

• Introduction To Economics

• Business Communication

(Presentation & computer skill)

• Profitability at Nestle

• Commercials at Nestle

2 Modules from Nestle

4 Modules from OUM

6 MONTHS

72 contact hrs

• Classroom based

lecture• Role Play

• Presentation

• Assignment

• 50% Exam

• 50% Assignment

Professional Certificate in Sales

ExternalMethodology

ExternalAssessment




Executive Diploma in Manufacturing

Management (EDMM)

Collaboration with Open University Malaysia (OUM)

– raise the competency level of our Production Executives-elevating to First

Line Manager

Ability testmeasure current ability and futurepotential for different types of work

skills

•Critical Reasoning based on

English

•Interpreting Data

Competency based Interviewstructured series of questions aimed

at eliciting behavioral information

against specific job-related

competencies

Internal 14

External 42

Total = 56

•FOOD

TECHNOLOGY

•PRODUCTION

MANAGEMENT

•GENERALMANAGEMENT

ExternalAssessment ExternalProgram ExternalFLM




Task

Orientation

Results

Orientation




Blue Print for the Future

Below the Surface

« Natural » Tendencies and Traits

Task-Related

Knowledge

and Skills

For Example: Knowledge of Electronics, Companies' Products,Labor Relations, Law, Skill in active listening,

Negotiating

For Example: Results Focus

Curiosity

Proactive CooperationCourage

Job Complexity

R e l a t i v e I m p o r t a n

c e

HighLow

Behaviors become more important as Job Complexity increases

High




Nestle’s Core Competencies

Inspiring People

Adding Value

Opening Up Dealingwith others

• Lead people

• Develop people

• Practisewhat you preach

• Know yourself

• Insight

• Service Orientation

• Curiosity

• Courage

• Proactivecooperation

• Impact / Convince

others

• Resultsfocus

• Initiative

• Innovation &Renovation

NESTLELEADERSHIP

FRAMEWORK




C.A.R.E for Performance

On-going

communication;•A shared understanding

of what & how•Conducive climate




Total Rewards Approach



GGrowingrowing RResourcingesourcing EEngagingngaging AAligningligning TTransformingransforming Corporate Communications

Total Rewards Approach

Compensation Philosophy

To establish the company’s salary and remuneration practices based on competitive positioning i.e. 50th% to top 25% or

the 3rd Quartile (Q3) of Community salary practices with the comparable companies in order to attract, retain and motivatetalents.

Gross Salary

Contractual

bonus

Contractual

bonus

Total Cash Total Compensation Total Reward

Contractual

bonus

Contractual

bonusContractual

bonus

Contractual

bonusContractual

bonus

Contractual

bonus

Basic SalaryBasic Salary Basic SalaryBasic SalaryBasic SalaryBasic SalaryBasic SalaryBasic Salary

Fixed AllowancesFixed Allowances Fixed AllowancesFixed Allowances Fixed AllowancesFixed Allowances

Target Variable BonusTarget Variable Bonus Target Variable BonusTarget Variable Bonus Target Variable BonusTarget Variable Bonus

BenefitsBenefits BenefitsBenefits

Career & Work

Environment

Career & Work

Environment

COMPONENTS OF TOTAL

REWARDS



GGrowingrowing RResourcingesourcing EEngagingngaging AAligningligning TTransformingransforming Corporate Communications

Competitive Positioning




Variable Pay




Developing Talent




Meeting 1Meeting 1

ONGOING-Actioning

Development

Plan

1. Successors

2. Retirees Placement3. Expatriates Placement4. Hi Potentials

5. New Talents/MT Status

1. Approval for Development

Budget2. Hi Pots Annual Development

Program3. Competencies Gaps

Identification

1. Validation of “Talent Pool”2. Validate Career Management

Plan for the year 3. Tracking Development Plans4. Update on

Organizational/structuralchanges

5. New Initiatives on Talent

Development

Meeting 3Meeting 3

Meeting 2Meeting 2

On goingCollaboration

with the line

On going

Collaborationwith the line

On goingCollaboration

with the line

Talent Management Process




SalesSG

PRODUCTIONSupply Chain

Business Units

Finance & Control

Integrated Talent & Career Management Process




Communication through Intranet




Malaysian Labour Legislations

• Employment Act 1955• Industrial Relations Act 1967• Trade Unions Act• Employment Provident Fund Act• Employees’ Social Security Act

• Children and Young Persons (Employment) Act 1966• Employment Information Act• Employment (restriction) Act• Private Employment Agencies Act• Workmen’s Compensation Act• Wages Councils Act




Industrial Relations

Management + Union Collaboration = Productive Workforce

NESTLE Malaysia & Singapore have a total of three National Unions representing the non-

management staff :

Nestle Products Sdn. Bhd.

Ø National Union of Commercial

Workers (NUCW)

ØCollective Agreement 2001 - 2003

Ø Union membershipØ97% of non-management

staff – union members

Worksite Union

Committee at

various locations

Nestle Foods (M) Sdn. Bhd.

Ø Food Industry Employees Union

(FIEU)

ØCollective Agreement 2002 - 2004

Ø Union membershipØ99% of non-management

Staff – union members

Nestle Singapore (Pte) Ltd

Ø National Trade Union Congress

Ø Collective Agreement 2001 – 2003

Ø Union membership

- 33% in (Southpoint)

- 67% in (Jurong)

No. of Trade

Unions in

Malaysia = 595




Terima Kasih

best practices at nestle malaysia

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