Best Practices at Nestle Malaysia

HR @ Nest Nestll e Part artnering nering wit ith h the Bus Busine ines ss Ahmad AhmadFauzi FauziYahya Yahya Nestle Malaysia Nestle Malaysia

Growing Resourcing E ngaging Aligning Transforming

QUESTIONS

v

What is your objective for today’s session?

v

What would you like to learn?

v

What you would like to achieve?


Nestle has a great story to tell… • Henri enri Nestl stle beca becam me interested in baby food due to the high infant mortality rate in Switzerland • He devel veloped ped “Far “Farin ine e Lactee Lactee Nestle Nestle”” in 1867 1867 and saved an infant’s life after his neighbour was unable to breastfeed • “Fa “Farine rine Lact Lactee ee Nest Nestlle” has helped save the lives of many 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 Globalpresence presence Global Salesby byRegions Regions Sales 37.5%-- Europe, Europe, 37.5% 43.7%-- Americas Americas 43.7% 18.8%-- Asia, Asia,Oceania, Oceania,and andAfrica Africa 18.8% 2008Financial FinancialPerformance Performance 2008 (KeyFigures) Figures) (Key

employees operating companies factories

Sales Sales OrganicGrowth Growth Organic EBIT EBIT

research, technology & development Centres

countries Growing Resourcing E ngaging Aligning Transforming

CHF109.9bio bio --CHF109.9 8.3% -8.3% 14.3% -14.3%

Nestlé Malaysia since 1912 •• ••

No.1 FMCG FMCG Company Company No.1 11%of ofthe thetotal totalMalaysian Malaysian 11% processed food food basket basket processed Atop top 20 20 KLSE KLSE company company •• A

employees halal products billion turnover Factories Sales Offices Growing Resourcing E ngaging Aligning Transforming

Our Vision…

“To be a respected, trustworthy food, nutrition, health, & wellness company”


Our Mission…

“To Nourish Malaysia/Singapore”


The Transformational Challenge…

..Nestle’s Blueprint for the Future

With vision, we anticipate the future, through our actions, we will shape it.. - Peter Brabeck-Letmathe Chairman & CEO, Nestle


Why HR Exists?

I just want a pair of hands… unfortunately a person comes with it..

- Henry Ford


HR Strategic Direction

Nurturing Talents, Unleashing Potentials

VISION

“ The best Brand for your career “

EMPLOYEE VALUE PROPOSITION

•Rewardin g Career •Enriching Developm ent • Balanced Quality of Work Life


Moving Forward…. Aligning People Strategy Towards 2020 HR HRas asKey KeyEnabler Enabler

Balanced Balancedof ofQuality QualityWork WorkLife Life

Succession SuccessionManagement Management

Wellness Wellness

Development Development&&Talent TalentRetention Retention

Nestle NestleOn OnThe TheMove Move~~Change ChangeMgt Mgt

Employer Branding

R E T R G A N I I N N I I N A G R Employee Value Proposition Nestle As Employer Of Choice

T

Enabling HR Programs & Practices

•Rewardin g Career •E n r i c h i n g D ev e l o p m e n t •Balanced Quality Work Life

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

The Way We Work

T.R.I.P Develop People Performance Management

CONTINUOUS LEARNING


Engagement Model TowersPerrin-ISR

Feel: Sense of Think: Belief in &

belonging, pride, attachment to the organisation

support for the goals/values of the organisation AFFECTIVE

COGNITIVE

Feel

Think

BEHAVIOURAL

Act: Willingness to

Act

go the extra mile; Intention to stay with the organisation

These three perspectives impact client satisfaction and business performance. Growing Resourcing E ngaging Aligning Transforming

High Performance Framework Organisations achieve superior business performance when their strategy, culture and people are effectively aligned Leadership

Business Strategy

Organisational Culture

People ‘Engagement’

Business Results

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 levels 3. Engaged employees whose contribution is maximised This framework underpins Nestlé’s Employee Survey Growing Resourcing E ngaging Aligning Transforming

Source: Towers Perrin-ISR'

Nestle’s Character Foundation

CORPORATE BUSINESS PRINCIPLES

MANAGEMENT & LEADERSHIP PRINCIPLES

CHARACTER

NESTLE CODE OF BUSINESS CONDUCT

InspiringPeople •

Lead people

•

Develop people

•

Practise what you preach

Adding Value •

Opening Up •

Knowyourself Insight •

•

•

•

Results focus

Dealing withothers

Initiative

Innovation & Renovation

Proactive co-operation •

ServiceOrientation •

Curiosity

•

Courage

•

Impact/Convincing others

CORPORATE VALUES T.R.I.P

Nestle Leadership Framework


Customers Need 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 Business perspective 1. 2. 3. 4. 5. 6. 7.

High Calibre Talent Excellent Employees Development program Establish Clear Career Development Program Convert Line Managers to People Developer Improve working environment Strengthen Rewards & Recognition Program Aligning Performance Management


Our Role…

q Acquiring

Talents q Developing Talents q Retaining Talents q Change Champion


HR Support Structure Customers

BUSINESS UNITS PRODUCTION / SALES MARKETING SERVICES

Finance & Control / Supply Chain

Business

Business Support Support

Competence Center

Shared Services

r s e n g o a i n t a a r M e p R O H

Remuneration

r e g R a E n / a s e l M a R S H

r e g g i n a t n e a k M r a R M H

r e O g G a L n / a t M g M R H G

Recruitment & Talent Management

r e g a B n a M M G R H

Human Capital & Organization Development

Payroll Management HR Services & GLOBE


Learning & Development Compass


Functional & Leadership Training


In house Training


Learning & Development Programs 2008 Contents External •Learning & Development Compass •Learning & Development Cycle •E-Learning •Training Caclendar 2008 •How to apply •Role of Line Managers •Course Descriptions


L&D initiatives in Production


Professional Certificate in Sales 4 Modules from OUM

Methodology External • Classroom based lecture • Role Play • Presentation • Assignment

• Organizational Behavior • Introduction To Marketing • Introduction To Economics • Business Communication (Presentation & computer skill)

Assessment External 6 MONTHS 72 contact hrs

• 50% Exam • 50% Assignment

2 Modules from Nestle • Commercials at Nestle • Profitability at Nestle


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

Assessment External

Program External

FLM

External

Ability test measure current ability and future potential for different types of work skills •Critical Reasoning based on English •Interpreting Data

•FOOD TECHNOLOGY •PRODUCTION MANAGEMENT •GENERAL MANAGEMENT

Competency based Interview structured series of questions aimed at eliciting behavioral information against specific job-related competencies Growing Resourcing E ngaging Aligning Transforming

Internal 14 External 42 Total = 56

E-Learning Facilities


Results Orientation

Task Orientation


Below the Surface Behaviors become more important as Job Complexity increases High

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

« Natural » Tendencies and Traits Blue Print for the Future For Example:

Results Focus Curiosity Proactive Cooperation Courage

Task-Related Knowledge and Skills For Example:

Knowledge of Electronics, Companies' Products, Labor Relations, Law, Skill in active listening, Negotiating

Low

High

Job Complexity Growing Resourcing E ngaging Aligning Transforming


Nestle’s Core Competencies NESTLE LEADERSHIP FRAMEWORK

Inspiring People • Lead people • Develop people • Practise what you preach

Adding Value Opening Up • Know yourself • Insight • Service Orientation • Curiosity • Courage

• Results focus • Initiative • Innovation & Renovation

Dealing with others • Proactive cooperation • Impact / Convince others



C.A.R.E for Performance

On-going communication; •A shared understanding of what & how •Conducive climate


Total Rewards Approach


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 c omparable companies in order to attract, retain and motivate talents.

Gross Salary

Total Cash

Total Compensation

Total Reward

Basic BasicSalary Salary




Contractual Contractual bonus bonus




Fixed FixedAllowances Allowances



Target TargetVariable VariableBonus Bonus



Benefits Benefits

Benefits Benefits

COMPONENTS OF TOTAL REWARDS


Career Career&&Work Work Environment Environment

Corporate Communications


Competitive Positioning


Corporate Communications

Variable Pay


Enriching Development Focus Engaging a Winning Team For a heart of Excellence


Developing Talent


Talent Management Process 1. 2. 3. 4.

5.

Validation of “Talent Pool” Validate Career Management Plan for the year Tracking Development Plans Update on Organizational/structural changes New Initiatives on Talent Development

On going Collaboration with the line

Meeting 1 Meeting 1

ONGOINGActioning Development Plan

1. 2. 3. 4. 5.

Successors Retirees Placement Expatriates Placement Hi Potentials New Talents/MT Status

Meeting 2 Meeting 2


1. Meeting 3 Meeting 3

2. 3.

Approval for Development Budget Hi Pots Annual Development Program Competencies Gaps Identification



Talent Meeting Structure & Guidelines FEEDBACK PROCESS

Step 1

Step 2

Dept Reviews Division TMM Forum Head CDS

All Department

CDS/A&C Direct Reports

Respective Departments

Step 3 Market Talent Review by ManCom

Centre Calibration & Validation

Step 4 Direct Reports

Global Talent Review

by Mkt Head

by

Review of MH

Bottom Up

Step 5

Zone / SBU / Corporate Function

FiCo Employee PDGs

Management Growing Resourcing E ngaging Aligning Transforming

Integrated Talent & Career Management Process

Business Units

Supply Chain

PRODUCTION

Finance & Control

Sales SG


Communication through Intranet


Employment At Nestlé Nestlé fully supports and publicly advocates the United Nations Global Compact’s guiding principles :1.

Supports and respects the protection of international human rights within its sphere of influence

2.

Ensures that its own companies are not complicit in human rights’ abuses

3.

Freedom of association and the effective recognition of the right to collective bargaining

4.

The elimination of compulsory labour

5. 6.

The effective abolition of child labour The elimination of discrimination in respect of employment occupation

all

forms

of

forced

and


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 NESTLE Malaysia & Singapore have a total of three National Unions representing the nonmanagement staff : Nestle Products Sdn. Bhd. Ø

National Union of Commercial Workers (NUCW)

Ø Collective Ø

Nestle Foods (M) Sdn. Bhd. Ø

Agreement 2001 - 2003

Food Industry Employees Union (FIEU)

Ø Collective

Union membership Ø 97% of non-management staff – union members

Ø

Agreement 2002 - 2004

Union membership Ø 99% of non-management Staff – union members

Nestle Singapore (Pte) Ltd

No. of Trade Unions in Malaysia = 595

Ø

National Trade Union Congress

Ø

Collective Agreement 2001 – 2003

Ø

Union membership - 33% in (Southpoint) - 67% in (Jurong)

Management + Union Collaboration = Productive Workforce


Worksite Union Committee at various locations

HR Vision, Road Map, Key Challenges & EVP HR HRRoad RoadMap Map VISION

Nurt uring People; Unleashing Talent Nestl é éA Great Place To Work

EMPLOYEE VALUE PROPOSITION [EVP]

Key KeyChallenges Challenges

Rewarding Career E n r i c h i n g D e v el o p m e n t Balanced Quality Work Life

Speed Speed&&Quality QualityResourcing Resourcingand and Acquisition of Talent Acquisition of Talent Development Developmentof ofTalents Talentsfor forSuccessor Successor Readiness Readiness Career CareerProgression Progression~~Flat Flatstructure structure&& specialist specialistrole role Performance PerformanceManagement Management~~ Addressing Addressingperformance performancevs. vs.people people development development

q

Business Alignment

q

High Calibre of Talent

q

Employee Engagement

q

Organizational & Personal Effectiveness

q

Value & Performance Driven Culture

q

Employee Wellness

Balancing Balancingthe theQuality QualityWork Worklife life~~ Wellness@work Wellness@work


Best Practices at Nestle Malaysia

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