Case Study of Nestle: Training and Development

Introduction

Nestlé is today the world’s leading food company, with a 135-year history and operations in
virtually every country in the world. Nestlé’s principal assets are not office buildings, factories,
or even brands. Rather, it is the fact that they are a global organization comprised of many
nationalities, religions, and ethnic backgrounds all working together in one single unifying
corporate culture.

Culture at Nestlé and Human Resources Policy

Nestlé culture unifies people on all continents. The most important parts of Nestlé’s business
strategy and culture are the development of human capacity in each country where they operate.
Learning is an integral part of Nestlé’s culture. This is firmly stated in The Nestlé Human
Resources Policy, a totally new policy that encompasses the guidelines that constitute a sound
basis for efficient and effective human resource management. People development is the driving
force of the policy, which includes clear principles on non-discrimination, the right of collective
bargaining as well as the strict prohibition of any form of harassment. The policy deals with
recruitment, remuneration and training and development and emphasizes individual
responsibility, strong leadership and a commitment to life-long learning as required
characteristics for Nestlé managers.

Training Programs at Nestlé

The willingness to learn is therefore an essential condition to be employed by Nestlé. First and
foremost, training is done on-the-job. Guiding and coaching is part of the responsibility of each
manager and is crucial to make each one progress in his/her position. Formal training programs
are generally purpose-oriented and designed to improve relevant skills and competencies.
Therefore they are proposed in the framework of individual development programs and not as a
reward.

Literacy Training

Most of Nestlé’s people development programs assume a good basic education on the part of
employees. However, in a number of countries, we have decided to offer employees the
opportunity to upgrade their essential literacy skills. A number of Nestlé companies have
therefore set up special programs for those who, for one reason or another, missed a large part of
their elementary schooling.

These programs are especially important as they introduce increasingly sophisticated production
techniques into each country where they operate. As the level of technology in Nestlé factories
has steadily risen, the need for training has increased at all levels. Much of this is on-the-job
training to develop the specific skills to operate more advanced equipment. But it’s not only new
technical abilities that are required. It’s sometimes new working practices. For example, more
flexibility and more independence among work teams are sometimes needed if equipment is to
operate at maximum efficiency. “Sometimes we have debates in class and we are afraid to stand
up. But our facilitators tell us to stand up because one day we might be in the parliament!”
(Maria Modiba, Production line worker, Babelegi factory, Nestlé South Africa).

Nestlé Apprenticeship Program

Apprenticeship programs have been an essential part of Nestlé training where the young trainees
spent three days a week at work and two at school. Positive results observed but some of these
soon ran into a problem. At the end of training, many students were hired away by other
companies which provided no training of their own. “My two elder brothers worked here before
me. Like them, for me the Nestlé Apprenticeship Program in Nigeria will not be the end of my
training but it will provide me with the right base for further advancement. We should have more
apprentices here as we are trained so well!” (John Edobor Eghoghon, Apprentice Mechanic,
Agbara Factory, Nestlé Nigeria) “It’s not only a matter of learning bakery; we also learn about
microbiology, finance, budgeting, costs, sales, how to treat the customer, and so on. That is the
reason I think that this is really something that is going to give meaning to my life. It will be very
useful for everything.” (Jair Andrés Santa, Apprentice Baker, La Rosa Factory Dosquebradas,
Nestlé Columbia).

Local Training

Two-thirds of all Nestlé employees work in factories, most of which organize continuous
training to meet their specific needs. In addition, a number of Nestlé operating companies run
their own residential training centers. The result is that local training is the largest component of
Nestlé’s people development activities worldwide and a substantial majority of the company’s
240000 employees receive training every year. Ensuring appropriate and continuous training is
an official part of every manager’s responsibilities and, in many cases; the manager is personally
involved in the teaching. For this reason, part of the training structure in every company is
focused on developing managers’ own coaching skills. Additional courses are held outside the
factory when required, generally in connection with the operation of new technology.

The variety of programs is very extensive. They start with continuation training for ex-
apprentices who have the potential to become supervisors or section leaders, and continue
through several levels of technical, electrical and maintenance engineering as well as IT
management. The degree to which factories develop “home-grown” specialists varies
considerably, reflecting the availability of trained people on the job market in each country. On-
the-job training is also a key element of career development in commercial and administrative
positions. Here too, most courses are delivered in-house by Nestlé trainers but, as the level rises,
collaboration with external institutes increases. “As part of the Young Managers’ Training
Program I was sent to a different part of the country and began by selling small portions of our
Maggi bouillon cubes to the street stalls, the ‘sari sari’ stores, in my country. Even though most
of my main key accounts are now supermarkets, this early exposure were an invaluable learning
experience and will help me all my life.” (Diane Jennifer Zabala, Key Account Specialist, Sales,
Nestle Philippines). “Through its education and training program, Nestlé manifests its belief
that people are the most important asset. In my case, I was fortunate to participate in Nestlé’s
Young Managers Program at the start of my Nestlé career, in 1967. This foundation has
sustained me all these years up to my present position of CEO of one of the top 12 Nestlé
companies in the world.” (Juan Santos, CEO, Nestlé Philippines)

Virtually every national Nestlé company organizes management-training courses for new
employees with High school or university qualifications. But their approaches vary considerably.
In Japan, for example, they consist of a series of short courses typically lasting three days each.
Subjects include human assessment skills, leadership and strategy as well as courses for new
supervisors and new key staff. In Mexico, Nestlé set up a national training center in 1965. In
addition to those following regular training programs, some 100 people follow programs for
young managers there every year. These are based on a series of modules that allows tailored
courses to be offered to each participant. Nestlé Pakistan runs 12-month programs for
management trainees in sales and marketing, finance and human resources, as well as in milk
collection and agricultural services. These involve periods of fieldwork, not only to develop a
broad range of skills but also to introduce new employees to company organization and systems.
The scope of local training is expanding. The growing familiarity with information technology
has enabled “distance learning” to become a valuable resource, and many Nestlé companies have
appointed corporate training assistants in this area. It has the great advantage of allowing
students to select courses that meet their individual needs and do the work at their own pace, at
convenient times. In Singapore, to quote just one example, staff is given financial help to take
evening courses in job-related subjects. Fees and expenses are reimbursed for successfully
following courses leading to a trade certificate, a high school diploma, university entrance
qualifications, and a bachelor’s degree.

International Training

Nestlé’s success in growing local companies in each country has been highly influenced by the
functioning of its international Training Centre, located near our company’s corporate
headquarters in Switzerland. For over 30 years, the Rive-Reine International Training Centre has
brought together managers from around the world to learn from senior Nestlé managers and from
each other.Country managers decide who attends which course, although there is central
screening for qualifications, and classes are carefully composed to include people with a range of
geographic and functional backgrounds. Typically a class contains 15–20 nationalities. The
Centre delivers some 70 courses, attended by about 1700 managers each year from over 80
countries. All course leaders are Nestlé managers with many years of experience in a range of
countries. Only 25% of the teaching is done by outside professionals, as the primary faculty is
the Nestlé senior management. The programs can be broadly divided into two groups:

Management courses: these account for about 66% of all courses at Rive-Reine. The
participants have typically been with the company for four to five years. The intention is to
develop a real appreciation of Nestlé values and business approaches. These courses focus on
internal activities.

Executive courses: these classes often contain people who have attended a management course
five to ten years earlier. The focus is on developing the ability to represent Nestlé externally and
to work with outsiders. It emphasizes industry analysis, often asking: “What would you do if you
were a competitor?”

Conclusion

Nestlé’s overarching principle is that each employee should have the opportunity to develop to
the maximum of his or her potential. Nestlé do this because they believe it pays off in the long
run in their business results, and that sustainable long-term relationships with highly competent
people and with the communities where they operate enhance their ability to make consistent
profits. It is important to give people the opportunities for life-long learning as at Nestle that all
employees are called upon to upgrade their skills in a fast-changing world. By offering
opportunities to develop, they not only enrich themselves as a company, they also make
themselves individually more autonomous, confident, and, in turn, more employable and open to
new positions within the company. Enhancing this virtuous circle is the ultimate goal of their
training efforts at many different levels through the thousands of training programs they run each
year.

Training and Development : Case Study of Motorola

As of now, the business environment is facing different changes, thus as the dawn of new

millennium, a very vital and famous movement in the business had been long considered as the

huge resurrection of the interest both in the training and development aspects. Most of the
organizations are tired and do not have that much money to waste in their ineffective as well as

unproductive development. In addition, individuals are already considered as less equipped in

order to take time out from the work for jolly because of the fact that everyone is in great need of

detectable changes (Landale 1999). On the other hand, some years ago, and up until now, T&D

programs is consists of a trainer and other experts that are standing in group of students or

trainees and lecturing and teaching different knowledge and subjects. Thus, the choice of words

that both the parties will use relies on the different educative types regarding the approach and

meaning that are being taught, whether they like it or not (Rae 1999, p. 3) .

Thus, T&D process is a vital factor or aspect of the company that helps to maintain the

effectiveness and efficiency of the human resource. It can also help in the process of

improvement and development of the entire performance and productivity that can help to

maintain competitive advantage that will helps to maintain the organization’s current position in

the market. It is important to consider that without the help of an effective T&D program,

organization can quickly fall behind in the process of getting the skill sets and the knowledge

that are required in order to ensure the competitiveness of the work force (Buhler 2002, p. 142).

2 Training and Development

T&D program or agenda is applied and implemented in a company when a new skills and

knowledge were done or when one of the existing skills or knowledge has been deemed (Arthur

1995, p. 245). It is an approach or method that is used in order to ensure that the employees are

focusing on the specific subject or skill that is needed to be learned. For example, T&D program
can be designed in order to prepare the employees to use new technology or system (Sims 2002,

p. 175). However, it is important to take note that the success of any T&D programs relies

greatly on the different efforts, knowledge, skills as well as devotion of the instructor and other

entities that are involved in the entire process, specifically the employees and the management in

the process of creating the instructions. That is the reason why it is very important to assign great

time as well as effort in the process of selecting the right instructors or trainers (Sims 2002, p.

175). As a result, it can be said that the entire T&D cn help the process of change management

that can help to prevent any refusal or negative response of the employees.

3 Changes and Development in Human Resource Approaches

Due to the different changes in the business environment, most of the businesses or

organizations are focusing on the importance of the labor force or human resource as the most

important resources. Thus, Human resource development or HRD plays a vital role in the

modern organizations, this is due to the fact that HRD is the organized learning activities that

were arranged in the organization to improve the performance as well as personal growth in

order to improve the performance, personal growth that will help to improve the job, individual

as well as the entire organization.

Currently the HRD environment is facing different problems as well as conflicts that make

the HRD profession one of the challenging careers. This is due to the fact that inside the

workforce, the entire demographics are changing, thus many organizations are realizing that the

workforce diversity is considered as one of the most important source of competitive advantage
(Sims 2006). The said condition shows that changes in the HRD are enormous. This is

connected to the different issues about ethnicity, cultural and languages as well as prejudice that

are related to the said subjects, or in simple term it is associated with differences. As a result, it

shows that the different developmental opportunities are being focused not just on the

organizational learning but also on the different acculturation process between the foreign and

old employees. Another important thing that must be considered is the growing number of

populations of women that are emerging or entering the workforce. Thus, it is important for any

company to consider that the interests of the women in the process of seeking positions must be

considered, and their vulnerability must be protected. Above all, it is also important to consider

the ageing workforce that will push different HRD programs to focus on the needs and demands

of younger as well as older employees (Sims 2006).

Aside from that said demographic changes, it is also important to consider the two most

important and visible factors that affect the entire HRD and pushes the intensive T&D program:

globalization and competition. This is due to the fact that it changes the process of HRD, and it is

helpful in order to ensure maintenance of both global and local balance. This is due to the fact

that companies nowadays are discovering that it is always important not only to focus on the

global changes, but also focus on the different local events and trends in order to communicate

with their customers. Thus, HRD must also hit the different process of sharing information as

well as transfer of knowledge that will drive the process of research and innovation (Sims 2006).

As a result, it is important to align the HRD with the technical and technological

requirements, thus the needs for more knowledgeable, experienced as well as skilled workers is

vital. In connection to that, different technological trends like the demand and growth of more
knowledge-intensive goods as well as services; changes in the competencies of human; global

network; streamlining of business; rapid response; quicker innovations; quality improvement as

well as revolution, shows that companies and organizations as of now are more connected with

each other, thus must synergized (Sims 2006).

The said development is connected with the T&D processes and programs, this is due to the

fact that most of the organizations nowadays are focusing on improving the knowledge and

abilities of the individual. As a result, the process of closing the skills gap is considered as one of

the most critical and crucial area of HRD for any organization in terms of penetrating the market

in continuous manner. This is because skills gap can threatens the productivity as well as

competitiveness in the level of organization and operation that requires the entire HRM

professional to start on cultivating the workforce from the period of recruitment. On the other

hand, the said process is not easy because there are different works that require customization of

different skills, that not all of the newly hired employees acquire social skills aside from the

basic skills (Sims 2006).

Above all, it is important to take note that the process of building the organization is

considered as a vital for existence and the survival of the organization in the modern industry.

Time and time again, most of the companies must invest on the different internal customers and

employees that help them to take advantage of the entire human capital management. In addition,

the sense of ownership is a vital aspect that requires the HRD professionals to develop different

strategies that will guarantee superior knowledge, skills as well as experience that must be settled

inside the workforce. This can be done by focusing on the different learning skills that will put
the skills enhancement and will develop assignment and focus on the process of developing

career and empowerment (Sims 2006, p. 19).

4 Roles of Different Entities in T&D

4.1 Employers

The main responsibility of the employer is to ensure that the T&D process are connected to

their entire strategy and goal. It is also important for the employers to ensure that the T&D

program to be implemented is beneficial not only for the company but also for employees’

individual development growth. It is also the responsibility of the employers to inform the

employees regarding the T&D process and how it can affect their position or their performance

in the company. This is to prevent any conflict and misunderstanding.

Above all, it is the responsibility of the employers to hire or employ training professionals

that is suitable to the current organization and inform them regarding the different issues that are

connected with the different rules and regulations as well as policies of the company.

4.2 Training Professionals

In the entire T&D program and process, the training professionals have the most important

role this is due to the fact that they are the one that set the pace of the program. Aside from that,

they are also responsible in guiding and giving assistance to the trainees and employees, and

focuses on furnishing the subject-matter expertise. Above all, they are accountable or responsible

in the process of evaluating the entire training and development program (Sims 2002, p. 177).
 That is why, an effective instructors must have the ability to deliver the different content of

the T&D program in manner that they assists and make the entire learning process easier for the

trainee employees. This focuses on the different skills such as the ability to: speak well, write

convincingly, systematize and put into order the different works of other, creative, imaginative

and inventive, and more importantly encourage others in greater performance and success and

smoothen the progress of the climate for learning (Sims 2006, p. 176).

4.3 Employees

Employees play one of the most vital roles in the process of T&D, due to the fact that they

are the direct player or beneficiaries of the program. Thus, it is important for the employees to

focus on how they can help themselves in acquiring or absorbing the different subjects and

knowledge that are being offered by the training professionals.

As a support to the effort of the employer and the training professionals it is important for

the employees to participate in the entire program. This is because learning is considered as

quicker and more long-lasting when the learner can participate in active manner (Sims 1990).

4.4 Labor Unions

Labor union is considered as an organization of workers that have banded and gathered
together in order to accomplish common goals in different areas like wages, hours as well as
working conditions. Through the leadership of the labor union, it deals and negotiates with the
employers (Lewis 2001). As a result, it is the responsibility of the labor unions to make sure that
the different policies and rules and regulations that are connected with the training or
development process or initiatives, are fair for the employees. It is also their responsibilities to
ensure that the programs that are being implemented are conducive for the learning process and
flow of the employees, in connection to good working environment.
4.5 Government

The government plays a very crucial or vital role in the entire process and aspect of human
resource or HR. This is due to the fact the government focuses on ensuring that a respective
organization or firm is following the given standards or procedures of the local as well as
international law. Thus, the government is responsible in ensuring that the entire T&D process,
together with the policies and procedures are following the standard of both the local, national as
well as international standards.

5 Application and Benefits of T&D

There are different organizations and companies that are focusing on the process and

programs of T&D in order to improve the products and services that they are offering towards

their customers. All of them are realizing that it has a great impact over their performance.

One of the most well-known brand or figure in the field of T&D is Motorola. It is the

company that brings up the popularity of applying Six Sigma in their management process. As a

result, the company had been able to establish their Motorola University that focuses on

developing the learning process and knowledge of their employees, as well as outsiders

regarding the benefits of Six Sigma. Motorola University has long been the equivalent of

Harvard or MIT in the organization. It is considered as highly respected in terms of corporate

universities due to the fact that it offers leading-edge thinking that is related to the goals of

Motorola. It was crafted as an internal development course to be used in a blended learning

environment. Thus, the principles about leadership are all explained in different practical terms

that are easily translated and applied in the actual workplace (Motorola Inc. 2009).

As a result, T&D programs are not just valuable for the organization alone, but also for the

individual employees, due to the fact that it helps to develop the current abilities and skills.
 T&D development helps to improve the profitability as well as positive attitudes towards

profit orientation that eventually leads to improvement of the job knowledge and skill all levels

of management in the organization. Aside from that, it can also help to improve the morale of the

workforce, therefore helps the employees to identify the goals of the organization. On the side of

the employees, it can help individual to make better decision and have an effective problem

solving technique that helped them to encourage and achieve self-development as well as self-

confidence that will help individual to handle stress, tension, frustration as well as conflict. This

will increase the satisfaction of the employee that will cause motivation for better performance

(Sims 1990).

6 Conclusion

T&D process and program focuses on improving the performance of each and every

individual employee by feeding them new skills and information that will help them to grow. As

a result, when employees are more skilled and knowledgeable, they are intended to develop more

self-confidence and self-esteem that enables them to work and perform well.