Functions Of HRM In Nestle: Essay On HRM's Role In Nestle.

Critically examines the HR function and, draws from the key principles of HRM and assesses how the HR function can help organizations to be more effective in achieving competitive advantage. 

Human resource in the organization plays a great role in managing the operations of the company. Without human resource team it is not possible for the company to manage the operations in a right direction. Human resource team of the company manages the routine activities so that goals and objectives can be accomplished in a proper manner.

In this paper, the discussion will be made on the functions of an HR, the key principles of HRM and also how to evaluate the HR function so that competitive advantage can be achieved. The company which is selected for this task is Nestle.

It is analyzed that there are various characteristics of HRM like it is considered as a service function and also it is a continuous process which takes place continuously.  This approach of HRM is a people-centered approach in which the focus is given to the people and also it focuses more on results so that growth can be achieved. People Centered approach is one of the HRM approach which is related with the employees. In this, focus is given on fulfilling the management objectives by emphasizing on the needs and wants of the employees. When needs and wants of the employees are satisfied they try to give their best towards their assigned activities. Nestle gives more focus on people-centered characteristics so that success can be achieved in an effective manner.

It is seen that human resource give proper structure to the company so that business needs can be achieved by giving focus on the managing the resources of the company. There are many functions related to HR.  The first function is related to the recruitment process of the company. The process of recruitment is conducted by the HR of the company and it is one of the most important functions conducted so that talented candidates can be recruited to conduct the activities. The function of the HR is to fill the positions in the company in less time so that it can be easy for the company to manage the overall activities of the company (Kumari, 2012). 

It can be evaluated that the function of the HR in Nestle is to conduct the screening process and also interview so that the candidates who are not eligible can be rejected in the starting stage only. If the eligible candidate is selected for the job then it can easy to achieve competitive advantage in an effective manner. This is one of the effective functions that will help the company to achieve competitive advantage in the competitive environment. Also, there should be SHRM in the company so that hindrances cannot take place at the time of achieving success in the market. SHRM refers to strategic human resource management in which management principles for managing the workforce is taken into consideration (Deery and Jago, 2015).

Recruitment Process

Next function of the HR is related to the job safety. Safety in the workplace is also essential functions as it is seen that if there is workplace safety then it can be easy for the company to enhance the overall efficiency of the employees. The function of the HR is to assist the workplace safety training and also to maintain federally mandated logs so that injuries that take place can be reduced (Rao and Dhillon, 2017). The HR of the company focuses on job safety of the employees by giving them training of each and every activity that takes place in the company. Also when workplace safety is considered by the HR it is analyzed that company focuses on managing the compensation of the employee's problems so that satisfaction level can be enhanced by the employees. If employees are satisfied then they can give their best towards the activities of the company. The company is also working with Danish institute for human rights so that human rights policy can be reviewed. The company focused on partnership with DIHR related to human rights so that proper right responsibilities can be implemented on global basis. For safety Nestle implements the policy named as occupational safety and health management system which consist of periodic self-evaluation and audits (Ford, 2014).

The important function of the HR in the workplace is to enhance mutual cooperation between the employees. If the relation of the employee is managed in a proper manner then it can be seen that productivity can be enhanced. In the workplace, it can be analyzed that the employee and labor relations are an important function of the HR and Nestle gives emphasis on handling these relations with the help of the HR specialists who are expert in the specific field. The relation of the employee is the responsibility of the HR that helps to enhance the employer and employee relation by evaluating the job satisfaction, employee engagement and also solving the conflict of the workplace. The functions help to maintain the relationship with labor by considering he developing management responses to that organizing of campaigns can be done effectively and also it will help to negotiate the collective bargaining agreements in a proper manner (Sparrow, Hird and Cooper, 2015).

Compensation and Benefits is also the function of The HR. In this process, the employees are managed by giving compensation and benefits so that they can give their best towards the activities assigned in an effective manner. This function can assist the company in attaining competitive advantage as it is seen that if proper benefits and compensation is given by a company to the employees then it can be possible to enhance the overall productivity. The structure of the compensation is designed by the HR in evaluating the qualification of the employee who is conducting the routine activities (Gupta and Shaw, 2014). It is also analyzed that the HR of the Nestle focuses on analyzing the competitive practices so that competitive advantage and employee satisfaction can be enhanced. In the compensation and benefits plan, the HR evaluates the health coverage rates with the insurers and also the focus is given on coordinating the activities with the retirement saving fund. It is seen that when employees get compensation and benefits then organization performance is enhanced in a proper manner (Anitha, 2014).  The HR role is to manage the payroll of the employees by giving emphasis on compensation and benefits section that will help the employees to gain proper knowledge of their payroll. Salary is an important factor and if it not given to the employees in a satisfied manner then it is difficult for the company to retain the employees (Cloutier et al., 2015). The HR of Nestle focuses on giving equal wages to the employees by considering the qualification of the employees so that activities can be conducted smoothly and also retention of the employees can be done effectively (Aruna and Anitha, 2015). 

Job Safety

Labor law and compliance is also the function of the HR. It is seen that these laws and compliance is managed by the HR of the company. If they do not consider it in a proper manner then negative impact can be analyzed on the overall productivity of the company.  The HR can gather the complaints that can be based on the unfair employment practices and related with unsafe working conditions that can give impact on the productivity.

The HR of Nestle is aware of the employment-related with state and federal law like fair labor standards act and also national labor regulations. It is seen that if proper rules and regulations are considered then business risk can be minimized and company can also achieve a competitive advantage as there are no hindrances in the activities (Brewster et al., 2016).

Next function which is related to the HR is training and development. It is seen that it is the responsibility of the HR to give proper training to the employees so that their efficiency towards the work can be enhanced in a proper manner. In Nestle, the HR offers various tools to the employees as it helps them to achieve success in the market. By giving training to the employees it can help the employees in transition into a new organizational culture. The HR of the company provides leadership training and also development on the professional level so that it can be easy for them to achieve competitive advantage in a proper manner (Bolden, 2016). In Nestle, the leadership training is necessary for the employees who are new to the company so that performance can be managed and also the employee relations can be handled on the departmental level. The development opportunities related to the employees help to look for the promotional benefits that help them to achieve their target in the organization. The HR of the company performs the function of giving training to the employees so that in the right direction they can conduct the activities (Buckingham and Goodall, 2015).

By giving training by the HR it can be easy for the company to achieve profits and also the competitive advantage. It is seen that when employees are trained in a proper manner then it helps the employees to perform the task in a proper manner and also with more efficiency. It is one of the best functions that help the company to be successful and conduct the activities so that competitive advantage can be achieved. Training is the best option as it enhances the knowledge of the employees and motivates them to complete the activities with efficiency (Ganesh and Indradevi, 2015). 

Employee Relations

There are many principles which are related to Human resource management. The first principle is related to the recruitment to retirement. It can be evaluated that human resource focuses on dealing with the workers from recruitment and retirement. It takes into consideration manpower planning, training, and development, promotion and transfer. The principle of the HRM is to maintain these functions so that company can achieve success with enhancing the satisfaction level of the employees (Armstrong and Taylor, 2014).

Next principle is related to the attitude for hiring and also to recruit b giving emphasis on the skills. It is seen that at the time of recruiting HR gives focus on the attitude of the person and as it is seen that attitude is the key to the employee engagement. The HR gives emphasis more on attitude rather than the experience. It is analyzed that it is good to hire the people who have a high attitude as it is seen that no experience can beat the attitude of an individual. If a person has a good attitude then it can be easy for them to adopt the skills and knowledge that are important to conduct the activities in an effective manner in the organization (Mishra, Lama and Pal, 2016).

Next principle of HRM is to understand the pay structure concepts so that employees can conduct the activities in a smooth way. Pay is considered as a reward for the employees to give the services. Pay involves base salary, variable pays and also the advantages offered by the company. For instance: A bonus is seen in the form of a variable pay (Aslam et al., 2015).  So it is seen that bonus helps to a given award by giving focus on the exceptional work performance. It is the responsibility of the human resource manager to give pay according to the skills and knowledge possessed by an individual.  If proper wages are given to the employee's then retention of the employees will be more and it will help the company to achieve competitive advantage in an effective manner (Butler and Callahan, 2014).

Slow hiring and fire more are also one of the principles of HRM in which the HR can be slow in hiring but they recruit those candidates who are talented enough to conduct the activities of the company. They look for the people who have the right mindset, knowledge of the activities so that profits can be achieved easily. The HR tries to remove all the negative aspect from an individual and encourage them to conduct the activities smoothly so that growth of the company takes place. Nestle also focuses on hiring talented candidates so that they can manage the activities of the organization and can also bring efficiency in their work. 

Compensation and Benefits

Next principle of HRM is related to shed complexity and simplicity. People in the recent scenario, give more focus on the flat companies rather than tall organizational structure. It can be evaluated that the companies who are tall have hierarchies with a bureaucratic mindset that do not take place in the present situation. It is important that employee feel good in conducting the activities. If they are not happy then it can lead to lower the overall productivity level of the company.

So, it is concluded that HR plays a great role in achieving the competitive advantage b performing various functions like training and development. To achieve competitive advantage there should be a proper link between HRM and SHRM as it helps to achieve goals and objectives of the company smoothly. If these functions are considered in proper manner then it can help the company to enhance the market share. 

References

Anitha, J., 2014. Determinants of employee engagement and their impact on employee performance. International journal of productivity and performance management, 63(3), p.308.

Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Aruna, M. and Anitha, J., 2015. Employee retention enablers: Generation Y employees. SCMS Journal of Indian Management, 12(3), p.94.

Aslam, A., Ghaffar, A., Talha, T. and Mushtaq, H., 2015. Impact of compensation and reward system on the performance of an organization: An empirical study on banking sector. European Journal of Business and Social Sciences, 4(8), pp.319-325.

Bolden, R., 2016. Leadership, management and organizational development. In Gower handbook of leadership and management development (pp. 143-158). Routledge.

Brewster, C., Houldsworth, E., Sparrow, P. and Vernon, G., 2016. International human resource management. Kogan Page Publishers.

Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard Business Review, 93(4), pp.40-50.

Butler, M.G. and Callahan, C.M., 2014. Human resource outsourcing: Market and operating performance effects of administrative HR functions. Journal of Business Research, 67(2), pp.218-224.

Cloutier, O., Felusiak, L., Hill, C. and Pemberton-Jones, E.J., 2015. The importance of developing strategies for employee retention. Journal of Leadership, Accountability and Ethics, 12(2), p.119.

Deery, M. and Jago, L., 2015. Revisiting talent management, work-life balance and retention strategies. International Journal of Contemporary Hospitality Management, 27(3), pp.453-472.

Ford, J.K., 2014. Improving training effectiveness in work organizations. Psychology Press.

Ganesh, M. and Indradevi, R., 2015. Importance and effectiveness of training and development. Mediterranean Journal of Social Sciences, 6(1), p.334.

Gupta, N. and Shaw, J.D., 2014. Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), pp.1-4.

Kumari, N., 2012. A Study of the Recruitment and Selection process: SMC Global. Industrial Engineering Letters, 2(1), pp.34-43.

Mishra, S.N., Lama, D.R. and Pal, Y., 2016. Human Resource Predictive Analytics (HRPA) for HR Management in Organizations. International Journal of Scientific & Technology Research, 5(5), pp.33-35.

Rao, M. and Dhillon, M., 2017. HRIS: An evolution with HR functions. International Journal of Research in Finance and Marketing, 7(6), pp.98-100.

Sparrow, P., Hird, M. and Cooper, C.L., 2015. Lean Management and Organizational Effectiveness. In Do We Need HR? (pp. 86-110). Palgrave Macmillan, London.