HR Functions and Employee Job Satisfaction of Nestlé Bangladesh

HR Functions and Employee Job Satisfaction of Nestlé Bangladesh

This report is prepared in order to gain practical knowledge about how an organization practices its HR policies as well as to measure the employee job satisfaction level of Nestlé Bangladesh Ltd. Nestlé started its operation in 1994 in Bangladesh and its factory is situated in Sreepur, Gazipur. Nestlé Bangladesh currently employs 710 people permanently and around 3000 people are employed by suppliers and distributors in connection to Nestlé. Vastly sold products in Bangladesh are Maggi noodles and soup, Maggi Shad-e-Magic, Nescafé, Nido, Breakfast Cereals such as Corn Flakes and Koko Crunch, Coffee-Mate, Munch rolls and many more. Nestlé is the world’s largest food group, not only in terms of its sales but also in terms of its product range and its geographical presence. Nestlé covers nearly every field of nutrition: infant formula, milk products, chocolate and confectionery, instant coffee, ice-cream, culinary products, frozen ready-made meals, mineral water etc.

Although this company has many departments but my focusing area for the research on employee job satisfaction was limited with the core function consisting of Marketing, Sales and Nutrition departments of Nestlé Bangladesh Ltd. A survey has conducted to measure the level of employee job satisfaction. The outcome of the survey was quite satisfactory. However, Nestlé Bangladesh Ltd. should work a lot to retain their existing employees as well as to attract the potential. The outcomes of the survey has described in details in the later chapters of the report.

After assessing the circumstances of Nestlé Bangladesh Ltd. in terms of employee satisfaction a lot of feedback came up. This report also consists of recommendations and conclusion according to my point of view as well as the respondents’ feedback, which I think would improve the phase of the company if implemented.

INTRODUCTION

In every field of study, theoretical course work along with the field experience play major role to shape the knowledge and skills of a student. In case of business studies the practical experience makes the difference in a bigger aspect. As a result, at present almost every business school and institutions are including internship program as a part of study. In accordance with this, I was also required to complete an internship program and to submit a report on the project, to obtain the Bachelor degree in Business Administration from BRAC University. This requirement is designed to facilitate the students with the opportunities to understand the practical world that is necessary to understand the concepts applied by companies. In this report, I have discussed about the HR functions of Nestlé Bangladesh Ltd. and included a survey outcome in order to assess the employee job satisfaction of Nestlé Bangladesh Ltd. Therefore, I have also summarized about the tasks I performed in this organization.

Objective of the report

The objective of the report can be viewed in two forms:

• General objective
• Specific objective

General objective:

The general objective of this report is to prepare the internship report to fulfill the degree requirement under the faculty of BRAC Business School, BRAC University because this internship gives us a chance to co-ordinate with the theoretical knowledge and the practical experience.

Specific objective:

• To gather practical knowledge on how culinary section under marketing department operates.
• To gather practical knowledge on how Nestlé Bangladesh Ltd. performs itsHR functions.
• To discuss the level of employee job satisfaction of Nestlé Bangladesh Ltd. through the survey conducted.

Scope

This report is prepared in order to find out the overall job satisfaction of the employees of Nestlé Bangladesh Ltd. considering some variables like daily assigned job activities, relationship with supervisors as well as team spirit, equal opportunity issue, fairness in compensation, benefits, leave policies, work life balance, training programs, performance evaluation, working culture, work life balance etc. However, I also tried to give an understanding about the function of human resources of Nestlé Bangladesh Ltd. In order to collect sample for my study, I focused on the core function (comprises of Marketing, Sales and Nutrition) of Nestlé Bangladesh Ltd.

ORGANIZATION AND DEPARTMENT OVERVIEW

Nestlé, the world’s leading Nutrition, Health and Wellness Company, was founded in 1866 in Vevey, Switzerland by Henri Nestlé; a German pharmacist. This company is providing safe, quality nutrition for more than 140 years. Currently, Nestlé has sold its products in 196 countries, has 447 factories in 86 countries and more than 333000 employees. In the food industry Nestlé is the most trusted name with high quality products. “Good Food, Good Life” is the mission of Nestlé which is to provide the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. The objective of Nestlé is to be the leader in Nutrition Health and Wellness, and the industry reference for financial performance, trusted by all stakeholders. In 2013, this company has made its sales of CHF 92 billion.

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.

Products of Nestlé Bangladesh Ltd.:

Globally the product line of Nestlé is very large but in Bangladesh currently there are only few products are available which have given below under category and brand wise. Nestlé believes all foods and beverages can be enjoyable and play an important role in a balanced and healthy diet and lifestyle; therefore regardless of how short the product line may be, it ensures the same quality while comparing to the other countries.

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.

Rewards:

In Nestlé it is believed that attracting prospective employees and sustaining current employees is not only about remuneration and benefits based on the accurate performance but also about the achieved value and trust that the name has brought to those who work for it; the relationships with the employees line managers and colleagues, recognition and experiences enjoyed while working for a diverse global company and opportunities to learn and grow. Nestlé focuses on fixed pay, variable pay, benefits, personal growth and development and work life environments the key elements which describe the total rewards system. Basically, this rewards function is consisting with two parts, one is operations and another is MIS (management information system) and services.

Under the function operations, below issues are covered.

On boarding: At the time of joining, it is the duty of HR personnel to collecting necessary documents from the candidates. Appointment letter is issued by the authorized authority and a copy of it should be duly signed by the new Employee in token of acceptance of all terms and conditions of employment. Therefore, all joining formalities and paper work needs to be completed. Orientation for new employees will also be covered by the HR.

Maintaining personal database: This database is maintained by assigned HR personnel of rewards team in order to keep track of employee record.

Employee benefits and schemes: This is one of the most fundamental issues while comprising the total rewards program of Nestlé. Nestlé Bangladesh Ltd. maintains a stable compensation structure compare to the other corporate of Bangladesh Nestlé. Regularly surveys and gathers relevant information on the remuneration levels practiced in local and international level. The employee benefits and schemes comprises with following attributes.

1. a) Leave travel assistance: Leave travel assistance is an annual allowance which is provided only for regional work visit purpose.
2. b) Sales incentives: It is a performance based Incentive Scheme for Sales Personnel.
3. c) Nutrition Professional Merit Scheme: The Nutrition Division Field Operations and Nutrition Training personnel are eligible to participate in the Professional Merit Scheme. This Scheme primarily focuses on the Nutrition knowledge assessed via Nutrition Quiz Criteria; field Operations Criteria etc.
4. d) Bonus: Performance Bonus is an annual Bonus where the payouts are decided basis the yearly performance at the Company, Unit/Department & Team/Individual levels.
5. e) Group insurance, Gratuity fund and Provident fund: These are provided based on company policy.
6. f) Discounted Nestlé products: Nestlé facilitates its permanent employee while providing certain amount of discount on Nestlé products available to its staff sales shop.
7. g) Personal loan: Based on company policy individual employee may apply for personal loan.
8. h) Medical Scheme: Nestlé Bangladesh Ltd. facilitates up to BDT. 50000 for its employees for medical issues except the blue collar employee. Based on the medical policy this scheme is issued on each month.
9. i) Leave: In Nestlé Bangladesh Ltd, employees who work on field, leaves are flexible due to sickness issue still for the field employees the number of annual leave is 24 days and for Head office employees its 20 days.

Recognition program: This program is again divided into two parts.

1. a) Long service: Employees who are dedicatedly working with Nestlé Bangladesh Ltd. for a quite long period of time, they are being appreciated with certificates and letter of appreciation as well as gift for their service. This time span is divided in 10 years and 20 years of service.
2. b) Recognition scheme: In each year Management committee of Nestlé Bangladesh Ltd. decides to provide recognition scheme to employees after getting the nomination list from each department.

MIS and services: This function deals with operating the operations function technically. In this function, HR personnel deals with different software for managing employee database (starting with confirmation letter to exit process) , payroll management, insurance, Nestlé quality management system.

Organizational Development, learning & resourcing:

Another most important function of HR is Organizational Development, learning & resourcing which has discussed below in detail.

Resourcing:

This function is basically referring the term talent acquisition. In order to put right people at the right place at right time Nestlé Bangladesh Ltd. conducts manpower planning also referred as planned recruitment annually where the responsible team decides whether the company would accommodate employees through hiring, giving promotion or domestic transfer. While recruiting it is necessary to attract high caliber talent in order to achieve both present and future objective of the company. Recruitment consists of planned as well as unplanned option. If any employee certainly left the job then the company goes for this unplanned option.

Recruitment Process of Permanent employees:

1. Employee request: The department in requirement of an intern will fill out a form and submit it to the Talent Acquisition Manager, along with all the requirements needed and job descriptions.
2. Initial search: CVs are usually gathered through Career Service Offices of wellknown universities, through job fairs, through job portals or through employee referrals.
3. Initial Selection: When a CV meets the specific criterion, it is put in the pool of candidates to appear for the first interview, which is usually only with the Human Resource department, for judging the initial competitiveness.
4. Call for second interview: If the Human Resource department thinks the candidate is capable to make it as a prospective candidate to the final interview, the candidate is selected, where he/she is interviewed by the Human Resource Director and the Director of the department he/she is to be hired for.
5. Final selection: In the interview, the candidate is marked based on Attitude, Interest and Competence. The candidate scoring highest, is finally selected, and after a medical test, is good to go.

Organizational Development, learning:

The line manager and employee work together to ensure that challenging objectives are set and effectively evaluated throughout the year. This further enables managers to acknowledge high performance and reward employees accordingly, while ensuring low performance is properly managed with integrity. Employees receive regular feedback on their performance and career aspirations through a variety of tools and processes such as the Performance Evaluation process (PE), the Progress and Development Guide (PDG) and 360° assessments. Each manager dedicates the necessary time to the monitoring of objectives and regular coaching of employees through the year. Each employee, supported by the line manager, is in charge of her or his own professional development, whereby the employee is encouraged to express career objectives and expectations in an open dialogue. This company’s aim is to retain and motivate employees by offering attractive but realistic career moves allowing them to develop their skills in the longterm.

Given the importance Nestlé puts on cultural diversity, employees who are interested in international assignments can be given the opportunity to work in different countries. The international dimension of the Group is used as a competitive advantage to retain and develop talented people. At Nestlé, promotions are based on sustained performance from a results and behavior standpoint, as well as future potential. The Company undertakes an active and rigorous succession planning process at all levels of the organization to ensure that there is a strong pipeline of successors ready to meet future needs. We are committed to ensuring sustainable conditions for a gender balanced and diverse company. As such, Nestlé has focused on removing barriers to career progression for women and men by developing a more flexible work environment, initiating mentoring schemes, having flexible career paths and providing dual career support. HR management provides the support for implementing the necessary tools, and partners with line managers to prepare the resources necessary for the continued development of people and the Company.

Administration: The administration function is liable for below responsibilities.

• Looking after office Administration: This responsibility consists of supervising the support, checking all bill/voucher for utility, house rent, vehicle maintenance, security guard, land line, cell phone etc. Procuring various assets for the company, Office renovation job, ensuring safety & security within head office by coordinating with security Agency and internal fire fighting team.
• Organize International & Local Travel: Air Ticket booking and confirmation for local & International. Travel VISA processing for the respective country, foreign currency arrangement, bill voucher checking, expense report generating.
• Expatriates issues: This includes obtaining work permits, arranging multiple visas for expatriates and their family members, hiring new house or flats for shifting, household repairing, maintenance of telephones and utilities.
• Transportation: Maintenance of vehicle issues.
• Keep in Order Company Telecommunication connectivity.
• Event management. Like; Family Day, Indoor games, Long Service Award ceremony etc.

RESEARCH FINDINGS AND ANALYSIS

In order to assess the employee job satisfaction of Nestlé Bangladesh Ltd., I have conducted a survey among 21 permanent employee of core function (comprises of Marketing, Sales and Nutrition) of Nestlé Bangladesh Ltd. From my survey, the analyses are given below:

1. Daily assigned job activities are satisfactory enough to complete:

75% of employees agreed that the daily assigned job activities towards them are satisfactory enough to complete whereas 20% of them disagree with it because the timeline of completing works are not sufficient enough and they need to work for additional hours depending upon the pressure of work. Therefore, only 5% of employees remain neutral with this statement.

2. Flexibility of Team spirit exists within the work environment:

20% of employees strongly agreed that Nestlé provides such a work where they feel flexible while working with their team. Therefore, percentage of remain agreed was high in amount because they find their team members very co-operative. 5% of employees remain neutral with flexibility of team spirit.

3. Relationship with supervisor is pleasant enough:

Among the respondents the ratio of strongly agree and only agree remain same which is 45% whereas percentage of being neutral and disagree is also same.

4. Compliance for equal opportunity is satisfactory:

According to the employees, Nestlé provides a satisfied equal opportunity. 20% employees strongly agreed with this as well as 60% of them (a quite high amount) agreed with this whereas

5. Compensation and benefits matches with job duties and responsibilities:

The percentage of being neutral was high, which is 40% whereas 25% of employees disagreed. According to the employees, the compensation structure and benefit system of Nestle Bangladesh Ltd. does not wealth enough compare to the duties and responsibilities they perform. Only 35% of employees is satisfied with this fact.

6. Appropriate recognition for contribution is compensated:

45% employee agreed that while they make any contribution they are recognized with appreciation or compensation where as 15% of them disagreed with it and 40% remain neutral.

7. Overall job security is satisfactory:

Though 15% of employees strongly agreed that their overall job security is satisfactory, 65% of them only agreed. According to them, Nestlé Bangladesh Ltd. provides them a high level of job security compares to other organization. For instance, among the respondents most of them are working in Nestlé for a long time considering the option job security as a benefit. On the other hand, 20% remain neutral. One of the reasons of being neutral can be employee switches to other company for better opportunity as well as benefits.

8. Fairness exists in case of punishment and disciplinary act:

56% of employees agreed with the fact that in case of punishment and disciplinary act fairness exists, whereas 11% disagreed. On the other hand, 5% of employees strongly agreed though 28% remain neutral.

9. Measures taken for punishment and disciplinary act are improving the environment of the organization:

50% of employees agreed that measures taken for punishment and disciplinary act are helping to improve the environment of the organization and 45% remain neutral with this opinion. The percentage of being disagreed is quite low only 5%.

10. Endorsement of the company as a place to work:

Employees of Nestlé Bangladesh Ltd. do agree that considering overall situation, Nestlé is a place of work about which they can suggest prospective candidates to choose this platform as a satisfactory place of work. As a result, percentage of strongly agree and remain agree is quite high in total 95% whereas only 5% thinks that they are neutral which is quite low.

11. Satisfied with the salary structure of Nestlé Bangladesh Limited:

A general findings from this statement was most of the employees are not satisfied with the salary structure as they believe Nestlé Bangladesh Ltd. does not maintain the structure compare to the market standard. As a result, percentage of being disagreed was high which 40% and additionally 5% also strongly disagreed. Though 20% remain agreed and only 5% strongly agreed.

12. Salary increment process is clear to you:

In total, 75% of employees are clear about the salary increment process whereas 20% of them are not.

13. Satisfied with the working hour, leaves as well as work life balance:

Employees are quite satisfied with the working hour, leaves as well as overall work life balance. The percentage of strongly agreed, agreed and neutral is 20%, 50% and 20% respectively. Only 10% are not satisfied among which 5% strongly disagreed.

Recommendations

As, Nestlé Bangladesh Ltd. is one of the well-established companies as well as Nestlé is the world’s leading Nutrition, Health and Wellness Company, therefore, it is very tough to recommend on any aspect of the company. However, I have come up with few recommendations, after conducting the survey and getting feedback from the respondents of this survey. They are as follows:

• Most of the employees are not satisfied with the salary structure, bonus, allowances and other benefits of Nestlé Bangladesh Ltd. As a result, this company may take initiatives to modify its salary structure as well as other benefits options considering the market standard in order to acquire and retain the best talents.
• Salary increment process is also not clearer to some employees which was one the findings from my survey. Considering this issue, workshop might arrange in order to make the process clearer to employees so that their confusion may get clear and they also feel motivated to work.
• The entire PE (Performance Evaluation) and the PDG (Progress and Development Guide) process of Nestlé Bangladesh Ltd. are still not clearer to most of the employees. Therefore, HR personnel as well as the supervisors of respective employees should take care for this issue in order to identify in which area employees are facing problem to understand the process and then try to make them understand the process.
• Being the part of world’s leading Nutrition, Health and Wellness Company, Nestlé Bangladesh Ltd. may introduce some more recognition program for its employees due to their contribution towards work as well as the company. Although, the recognition for long service is there to motivate employees, it hardly motivates the younger ones’.
• Nestlé Bangladesh Ltd. may work in order to improve its transport facility for permanent employees as this was also a feedback from the respondents.

Conclusion

The world’s leading Nutrition, Health and Wellness Company, Nestlé believes that its employees are the key to its success and nothing can be achieved without their engagement. This company is committed to provide its employees all over the world with good working conditions, a safe and healthy work environment, and flexible employment possibilities that support a better balance of private and professional life consistent with its ambition as a leading Nutrition, Health and Wellness Company. In accordance with this global perspective, Nestlé Bangladesh Ltd. is also trying to facilitate its employees with agreeable job satisfaction despite of facing some difficulties. Therefore, considering the above recommendations this company may also able to add value towards its employee. Apart from this, the survey result was quite satisfactory enough which represents that Nestlé Bangladesh Ltd. is a place for work with proper work life balance, dignity, equal opportunity as well as security for job which is at present one of the concerned issues for employees. Lastly, I would like to conclude my report with one of the quotation collected from one of the Category Brand Managers of Nestlé Bangladesh Ltd. “Nestlé provides a safe, respectable work environment. Cordial, pleasant relationships between colleagues make this a great organization to be a part of. Work-life balance at Nestlé is probably the best in the industry.”