FACULTY OF BUSINESS MANAGEMENT

MGT340
HUMAN RESOURCE MANAGEMENT

TITLE: NESTLE COMPANY

NAME STUDENT ID

NUR FAGHIRA MAISARAH BINTI MUHAMMAD FARUF 2022542005

NUR ANIS BATRISYIA BINTI AWANG 2022797611

NIK NURUL AISHAH BINTI NIK MOHD NIZAM 2022706035

MUHAMMAD AIMAN BIN ISKANDAR 2022941541

NUR BAIYANA BINTI MAT SAPAK 2021472632

AYUNI FIRDAUS BINTI FAIZAL 2021125005

PREPARED FOR:
DR. SITI MURNI BINTI MAT KHAIRI

DATE OF SUBMISSION:
18 JUNE 2024
 TABLE OF CONTENTS

BIL. CONTENT PAGE NUMBER

1. Acknowledgment 1

2. Introduction 2

3. Biography of the owner of the company 3

4. HRM Issues at Nestle 4-5

5. Factors lead to the issue of concern 6-8

6. Effect from the issues 9-10

7. Actions taken by the employer/owner of the 11-12

company

8. Recommendation 13

9. References 14
1.ACKNOWLEDGEMENT

Assalamualaikum, in the name of Allah, the Most Gracious and the Most Merciful. All praises to
Allah and His blessing for the completion of this report and expressing my heartfelt gratitude to
the beloved Prophet Muhammad.

First and foremost, we would like to sincerely thank our lecturer MGT340 for this semester, Dr.
Siti Murni binti Mat Khairi for her guidance, understanding, patience, and most importantly he
provided positive encouragement to finish this group project. It has been a great pleasure and
honor to have her as our lecturer for this subject especially during our last semester.

We also want to express our gratitude to our parents for their unwavering physical and emotional
support. Their assistance has also allowed us to successfully do this assignment and remember
the group members Faghira, Aishah, Anis, Aiman, Ayuni and Baiyana. We are grateful to every
one of the group members for cooperating and putting up a lot of effort to successfully finish this
report. The sweat that was shared during the process of doing this chore is now gone thanks to
the hard work that was shown.

Last but not least, we would like to sincerely thank and appreciate everyone who has helped us
with this assignment, directly or indirectly. This is stated because we greatly appreciate all of your
assistance in helping us finish this task.

1
2. INTRODUCTION

Nestle, a worldwide leader in nutrition, health, and wellbeing, has a strong presence in Malaysia,
contributing to the country's food and beverage sector for decades. Nestle has a long history
stretching back to 1866, and it has developed to become one of the world's most recognisable
and trusted brands.

Nestle operates in Malaysia as Nestle Malaysia Berhad, a Nestle Group affiliate. Nestle Malaysia
has played a significant role in creating the nation's food environment from its inception in 1912,
supplying a comprehensive range of goods to Malaysian consumers with varying tastes and
preferences.

Nestle Malaysia has a diverse product range that includes powdered and liquid drinks, dairy
products, cereals, confectionery, culinary tools, and nutrition and health science goods. Its well-
known brands include Nescafe, Milo, Maggi, KitKat, and Nestle Breakfast Cereals, among others.

Nestle Malaysia is committed not only to providing high-quality goods, but also to promoting
sustainability and social responsibility. The corporation actively participates in programmes to
promote environmental protection, ethical raw material buying, and community development.

Nestle Malaysia's activities include production facilities, distribution networks, and a devoted staff
committed to the company's core principles of quality, safety, and integrity. Nestle remains a
valued partner in nourishing Malaysians' lives with delicious and healthy food and beverage
options because of innovation, teamwork, and a customer-centric approach.

2
3. BIOGRAPHY OF THE OWNER

1. Name Puan Azualina binti Mispan

2. Company Name Nestle

3. Current Job Account Payable Executive

4. Goals To provide quality food and beverage products while promoting

sustainability and corporate responsibility

5. Achievements Malaysia/Singapore Concur SPOC (Special Point Of Contact)

6. Skills Product development, supply chain management, marketing,

sustainability practices

7. Hobby Supporting communities through various corporate social

responsibility initiatives

8. Level of Education Varied, with employees ranging from entry-level to highly

educated professionals in various fields

9. Work History - Account Assistant at Telekom Malaysia Berhad

- ⁠Credit Collector at Pacific Bank
- ⁠Account Payable Executive at Nestle Products Sdn Bhd

10. Experience - Handling Account Payable and T&E system for Nestle
- Conducted and given training within Nestle markets &
employees.

3
4. ISSUES AT COMPANY NESTLE

1. Unattractive of competitive compensation

Recruitment and Retention of employees is difficult to draw in and keep top personnel when there
is a lack of competitive pay and benefits packages. There are little prospects for professional
growth or career promotion, which causes employee discontent and turnover.

Organizations that don't provide competitive compensation packages have a hard time attracting
and retaining talented employees. Lower salary offers relative to standard practices may turn off
potential candidates, who may instead choose jobs that provide more pay. At the same time,
current employees could feel encouraged to look for jobs elsewhere that pay more and have
better benefits. This situation affects not only the stability of the employees but also the
organization's morale and production.

In order to address these problems, companies must reevaluate their pay plans to make sure they
sufficiently account for the abilities and contributions of their employees and are in line with market
prices. This strategy not only improves attempts to attract and retain employees, but it also
develops a more positive and driven workforce as a whole.

2. Job dissatisfaction among employees

Employees find it challenging because of strict restrictions surrounding remote work choices and
inflexible work hours. Excessive workload demands and impractical deadlines lead to elevated
stress levels and a decline in the well-being of employees.

Employee dissatisfaction can result in stress and burnout because they believe their workload is
too heavy or unmanageable. Dissatisfaction can also be greatly increased if compensation is
thought to be insufficient or unlawful in terms of industry norms or the cost of living. These
emotions may be made worse by management's poor communication, a lack of appreciation for
their accomplishments, and a sense that there aren't enough chances for personal development.

4
An inconsistency between an employee's abilities and the responsibilities given to them can also
result in unhappy working conditions and cause boredom or irritation. When these conditions
continue, they can have a big impact on employee satisfaction, output, and eventually, retention
rates in the company.

3. Difficulty in ensuring the effectiveness, accessibility, and analysis of training

Ensuring the effectiveness, accessibility, and thorough analysis of training programs presents
several challenges within organizations. Effectiveness depends on the ability of training to meet
its intended learning outcomes and translate into improved job performance. This requires careful
planning, relevant content, and engaging delivery methods that cater to diverse learning styles.

Retention, motivation, and productivity all depend on maintaining high levels of employee
engagement. Human resource departments may find it challenging to maintain employee
motivation, particularly in uncertain or changing times. Training programs that are difficult for
some employees to attend, particularly those who work remotely or have different schedules, can
impede participation and learning objectives.

Furthermore, the intricacy of quantifying behavior modification and performance enhancement

directly related to training initiatives makes it difficult to assess the efficacy of training. Effective
data collection techniques, well-defined performance indicators, and the capacity to distinguish
between diverse factors affecting employee performance are necessary for effective analysis.

5
5.FACTORS LEAD TO THE ISSUE OF CONCERN

1. Unappealing competitive compensation

Nestle's unattractive competitive compensation presents significant challenges in talent

recruitment and retention. In terms of recruitment, Nestle's compensation packages may
not meet industry standards, discouraging highly skilled candidates from applying for
positions with the company. This shortfall results in long-term vacancies for critical roles,
rising recruitment costs, and a workforce lacking the diverse skill sets required for optimal
organizational performance. Furthermore, this competitive disadvantage impedes Nestle's
ability to attract excellent employees, limiting its ability to innovate, expand, and maintain
market leadership. The company's ability to respond to changing industry demands and
technological advancements may also suffer as a result.

In terms of retention, existing Nestle employees may perceive their compensation as

inadequate in comparison to industry norms, resulting in dissatisfaction and increased
turnover. This dissatisfaction contributes to disruptions in team dynamics, lower
productivity, and increased costs associated with training new employees. Furthermore,
frequent turnover erodes morale and reduces overall employee engagement, thereby
negatively impacting Nestle's organizational culture. This cultural erosion complicates
efforts to consistently provide high-quality products and services to customers, potentially
jeopardizing customer satisfaction and loyalty.

2. Job dissatisfaction

There are several key factors that contribute to job dissatisfaction among Nestle
employees. For starters, dissatisfaction with work options and inflexible work hours make
it difficult for employees seeking more flexible arrangements to balance their work and
personal lives. This lack of flexibility can cause frustration and a sense of being
constrained, lowering overall job satisfaction.

6
 Second, excessive workload demands and unrealistic deadlines contribute to increased
stress among employees. Employees who perceive their workload as unmanageable or
feel pressured by unrealistic deadlines may experience increased stress, burnout, and a
decline in their overall well-being. This can have a negative impact on job satisfaction and
productivity within the organization.

Employees may become dissatisfied if they believe their compensation is inadequate in

comparison to industry norms or the cost of living. Perceptions of unfair compensation
practices, as well as a lack of appropriate salary adjustments, can have a significant
impact on job satisfaction. Furthermore, poor communication from management, a lack of
recognition for accomplishments, and limited opportunities for personal development can
exacerbate dissatisfaction and contribute to a negative work environment.

Furthermore, when an employee's skills do not match the responsibilities assigned to

them, they may feel frustrated, bored, or irritated. A lack of consistency can reduce job
satisfaction and motivation, negatively impacting overall performance and potentially
leading to higher turnover rates as employees seek roles that better utilize their skills and
provide greater fulfillment.

3. Effectiveness, Accessibility, and Analysis of Training

Ensuring the effectiveness, accessibility, and comprehensive analysis of training

programs poses significant challenges for organizations such as Nestle. The effectiveness
of the training is determined by its ability to achieve the desired learning outcomes and
translate them into improved job performance. This necessitates meticulous planning,
relevant content development, and engaging delivery methods that address employees'
diverse learning styles and preferences. However, achieving these goals can be
hampered by a variety of factors.

Accessibility is an important issue, especially in today's workplace, where remote work

and flexible schedules are becoming more common. Training programmes that are not
easily accessible to all employees, particularly those who work remotely or on irregular
schedules, may struggle to achieve full participation and meet their learning objectives.

7
This accessibility issue can undermine the overall effectiveness of training initiatives,
limiting their impact on employee development and performance.

Furthermore, maintaining high levels of employee engagement during training

programmes is critical for retention, motivation, and productivity. Maintaining this
engagement is especially difficult during times of uncertainty or organizational change.
Nestle and similar companies' human resource departments must constantly innovate and
adapt their training approaches in order to maintain employee interest and participation,
while also ensuring that training initiatives align with organizational goals and contribute
positively to overall performance.

8
6. EFFECTS / IMPACTS OF THE ISSUES

1. Compensation That Is Disappointing and Uncompetitive

Low morale, poor productivity, high turnover rates, and trouble attracting top people are all caused
by Nestlé's unattractive and non-competitive compensation. When workers feel underappreciated
and underpaid, they frequently look for better jobs elsewhere, which raises the expense of hiring
and training new employees. This unhappiness contributes to a poor workplace culture by
affecting not only employee morale generally but also individual motivation. Furthermore, a large
loss of institutional knowledge is caused by a turnover of experienced staff members, which could
jeopardize operations and long-term strategic objectives.

2. Job Unsatisfied Among Workers

Strict remote work restrictions, tight schedules, and excessive task expectations are the main
causes of job unhappiness at Nestlé, which raises stress levels and increases absenteeism and
burnout. These elements combine to create a poisonous workplace where workers feel
overburdened and underappreciated. Employee motivation and engagement have noticeably
decreased as a result, which has a negative impact on output and creativity. Persistent
dissatisfaction also ruins joint effort and team dynamics, which further lowers productivity and
makes it more difficult for the business to accomplish its objectives.

9
 3. Challenges in Maintaining Training's Effectiveness, Accessibility, and Analysis

The inability of Nestlé to guarantee the effectiveness, accessibility, and analysis of its training
programmes blocks the advancement of skills and fair training possibilities. Employee
performance and ability to adjust to new difficulties are negatively impacted by insufficient
coaching, which does not increase an employee's capacity. Additionally, employees experience
inconsistencies as a result of unavailable training programmes, which can cause dissatisfaction
and a sense of bias. Continuous development initiatives are limited by the inability to precisely
measure training outcomes, which prevents beneficial programmes from being recognised and
built upon. The company's overall efficiency and competitiveness are impacted by the poor
productivity and weak performance improvement caused by this inadequate training.

10
7. ACTIONS TAKEN BY THE EMPLOYER OF THE COMPANY

Implementing these actions, Nestle can create a more attractive and supportive work
environment, which will help in attracting and retaining top talent, reducing employee
dissatisfaction, and improving overall productivity and engagement.

1. Enhance Work Environment and Flexibility

Nestle can offer Flexible Work Arrangements, introduce flexible working hours and remote
work options to accommodate employees' needs and improve work-life balance. By doing
This can reduce stress and increase job satisfaction.

Other than that, Nestle can do Workload Management Monitor and manage workloads to
prevent employee burnout. Ensure that deadlines are realistic and resources are easily
allocated.

2. Foster a Positive Organizational Culture

Nestle must do Employee Recognition, by doing this Nestle can establish recognition
programs to celebrate employee achievements and contributions. This can boost morale
and foster a sense of belonging. Nestle also needs to have open communication among
the staff, this transparent communication within the organization can Encourage
employees to voice their concerns and suggestions without fear of reprisal

Besides that, Nestle must have Well-Being Initiatives. Nestle can invest in employee well-
being initiatives, such as mental health support, stress management workshops, and
fitness programs, to improve overall employee health and satisfaction.

11
 3.Staff Relocation for Operational Efficiency

Nestlé had implemented a strategic initiative to relocate staff from underperforming departments
to areas with higher demand and growth potential. To optimize human resources and enhance
operational efficiency, the company decided to relocate several employees from the confectionery
division to the health and wellness department. This strategic relocation not only bolstered
Nestlé’s growing health and wellness sector but also exemplified the company's commitment to
adaptability and efficient resource management.

12
8. RECOMMENDATION

Nestle has moved its headquarters and implemented an open space office since then. Open
space office may increase productivity but it gives less privacy to the employees. It also creates
noise that could distract employees. Employers can create a zone where employees can make
phone calls or have a conversation with others. This will reduce the distraction and lead to more
productivity.

In addition, Nestle needs to improve compensation and benefits for the employees. Employers
need to review and reset salaries to compare and compete with the existing market rates from
time to time. Ways that have to be adopted are to add options that involve performance related
pay and other related incentives that will facilitate achievement of excellent performance for the
employee. They provide benefits such as medical insurance, pension, and sick leaves to increase
employees' satisfaction.

The company should hold more team-building activities for their workers. This is beneficial to
workers in a way that allows them to relax, to let go of workplace stress, and company puts a
stronger emphasis on employees’ well-being both at work and outside of work. Team-building
also helps companies to foster good communication especially for the office where there is a
diverse culture and language in one office.

13
9. REFERENCES

1. Bhushan, R. (2015, June 9). Sleepless nights at Nestle, as staff and executives try to find

what went wrong. The Economic Times. https://m.economictimes.com/industry/cons-

products/food/sleepless-nights-at-nestle-as-staff-and-executives-try-to-find-what-went-

wrong/articleshow/47593361.cms

2. Nestlé lays out action plan to help end deforestation and restore forests in the cocoa

supply chain. (2019b, March 5). Nestlé Global.

https://www.nestle.com/media/pressreleases/allpressreleases/nestle-action-plan-end-

deforestation-restore-forests-cocoa-supply-chain

3. Giovanaz, V. R. E. D. (2020, November 19). Nestlé workers in Latin America speak out

against “unfair practices.” Brasil De Fato.

https://www.brasildefato.com.br/2020/11/19/nestle-workers-in-latin-america-speak-out-

against-unfair-practices

4. Peachyessay. (2020, June 13). Human Resource Management Analysis of Nestle

Malaysia. Peachy Essay. https://peachyessay.com/sample-essay/human-resource-

management-analysis-of-nestle- Malaysia/

5. Nestlé Malaysia Embraces Future of Work with New Headquarters. (n.d.-b). Nestlé

Malaysia. https://www.nestle.com.my/media/pressreleases/newnest-1powerhouse

14