Best Practices at Nestle Malaysia

HR @ Nestle
Partnering with the Business

Ahmad
AhmadFauzi
FauziYahya
Yahya
Nestle
Malaysia
Nestle Malaysia
Growing Resourcing E ngaging Aligning Transforming
QUESTIONS
v What is your objective for todays session?

v What would you like to learn?
v What you would like to achieve?
Nestle has a great story to tell

Henri Nestle became
interested in baby food due
to the high infant mortality
rate in Switzerland
He developed Farine
Lactee Nestle in 1867 and
saved an infants life after
his neighbour was unable to
breastfeed
Farine Lactee Nestle 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 Largest
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
CHF109.9bio
bio
--CHF109.9
8.3%
-8.3%
14.3%
-14.3%
Nestl Malaysia since 1912
No.1FMCG
FMCG Company
Company
No.1
11%of
of the
the total
total Malaysian
Malaysian
11%
processed food
food basket
basket
processed
top20
20KLSE
KLSE company
company
AAtop
employees
halal products
billion turnover
Factories
Sales Offices
Our Vision
To be a respected, trustworthy
food, nutrition, health, & wellness
company
Our Mission
To Nourish Malaysia/Singapore
The Transformational Challenge
..Nestles 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
Rewarding Career
Enriching Development
Balanced Quality of Work Life
Moving Forward.
Aligning People Strategy Towards 2020
HR
HRas
asKey
KeyEnabler
Enabler
Succession
SuccessionManagement
Management
Balanced
Balancedof
ofQuality
QualityWork
WorkLife
Life
Wellness
Wellness
Nestle
NestleOn
OnThe
TheMove
Move~~Change
ChangeMgt
Mgt
Employer
Branding
Nestle As
Employer Of Choice
ING
AIN
TR
RE
TR
AIN
ING
Development
Development&&Talent
TalentRetention
Retention
Employee Value Proposition
Enabling
HR Programs
& Practices
Rewarding Career
Balanced
Quality Work Life
G.R.E.A.T. Strategic Initiatives
The Way
We Work
T.R.I.P
Develop People
Performance Management
CONTINUOUS LEARNING
Engagement Model
Towers Perrin-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.

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 Nestls Employee Survey
Source: Towers Perrin-ISR's
Nestles Character Foundation
CORPORATE
BUSINESS
PRINCIPLES
MANAGEMENT
&
LEADERSHIP
PRINCIPLES
CHARACTER
NESTLE
CODE OF BUSINESS
CONDUCT
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
co-operation
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
Competence
Center
Shared
Services
Remuneration
Recruitment &
Talent
Management
HR Manager
GMB
HR Manager
G Mgt/LGO
HR Manager
Marketing
HR Manager
Sales/ER
Business
Business
Support
Support
HR Manager
Operations
Finance & Control / Supply Chain
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
Internal 14
External 42
Total = 56
E-Learning Facilities
Results
Orientation
Task
Orientation
Below the Surface

Behaviors become more important as Job Complexity increases
Relative Importance
High
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
Nestles 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 companys 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 comparable companies in order to attract, retain and motivate
talents.
Gross Salary
Total Cash
Total Compensation
Total Reward
Basic
BasicSalary
Salary
Basic
BasicSalary
Salary
Basic
BasicSalary
Salary
Basic
BasicSalary
Salary
Contractual
Contractual
bonus
bonus
Contractual
Contractual
bonus
bonus
Contractual
Contractual
bonus
bonus
Contractual
Contractual
bonus
bonus
Fixed
FixedAllowances
Allowances
Fixed
FixedAllowances
Allowances
Fixed
FixedAllowances
Allowances
Target
TargetVariable
VariableBonus
Bonus
Target
TargetVariable
VariableBonus
Bonus
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
Meeting11
ONGOINGActioning
Development
Plan
1.
2.
3.
4.
5.
Successors
Retirees Placement
Expatriates Placement
Hi Potentials
New Talents/MT Status
Meeting
Meeting22
On going
Collaboration
with the line
1.
Meeting
Meeting33
2.
3.
Approval for Development

Budget
Hi Pots Annual Development
Program
Competencies Gaps
Identification
On going
Collaboration
with the line
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
Integrated Talent & Career Management Process
Business Units
Supply Chain
PRODUCTION
Finance & Control
Sales
SG
Communication through Intranet
Employment At Nestl
Nestl fully supports and publicly advocates the United Nations
Global Compacts guiding principles :1.
2.
3.
4.
5.
6.
Supports and respects the protection of

international human rights within its sphere of
influence
Ensures that its own companies are not complicit
in human rights abuses
Freedom of association and the effective
recognition of the right to collective bargaining
The elimination of all forms of forced and
compulsory labour
The effective abolition of child labour
The elimination of discrimination in respect of
employment occupation
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
Workmens 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.
Nestle Foods (M) Sdn. Bhd.
National Union of Commercial

Workers (NUCW)
Food Industry Employees Union

(FIEU)
Collective Agreement 2001 - 2003
Collective Agreement 2002 - 2004
Union membership
97% of non-management
staff union members
Union membership
99% of non-management
Staff union members
Nestle Singapore (Pte) Ltd

National Trade Union Congress
No. of Trade
Unions in
Malaysia = 595
Collective Agreement 2001 2003

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
Nurturing People;
Unleashing Talent
Nestl
Nestl
A Great Place To Work
EMPLOYEE VALUE
PROPOSITION [EVP]
Key
KeyChallenges
Challenges
Rewarding Career
Balanced
Quality Work
Life
Business Alignment
High Calibre of Talent
Employee Engagement
Organizational & Personal

Effectiveness
Value & Performance Driven Culture
Employee Wellness
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
Balancing
Balancingthe
theQuality
QualityWork
Worklife
life~~
Wellness@work
Wellness@work
Terima Kasih

Best Practices at Nestle Malaysia

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HR @ Nestle

Partnering with the Business

Growing Resourcing E ngaging Aligning Transforming

v What is your objective for todays session?

v What you would like to achieve?

Growing Resourcing E ngaging Aligning Transforming

Nestle has a great story to tell

Growing Resourcing E ngaging Aligning Transforming

Worldwide, Over 6'000 Brands and 10'000 Products

Brands & Products

Growing Resourcing E ngaging Aligning Transforming

Food, Nutrition, Health & Wellness Company

research, technology & development

Growing Resourcing E ngaging Aligning Transforming

Nestl Malaysia since 1912

Growing Resourcing E ngaging Aligning Transforming

Growing Resourcing E ngaging Aligning Transforming

The Transformational Challenge

..Nestles Blueprint for the Future

With vision, we anticipate the future,

Growing Resourcing E ngaging Aligning Transforming

I just want a pair of hands

Growing Resourcing E ngaging Aligning Transforming

Nurturing Talents, Unleashing Potentials

The best Brand for your career

Growing Resourcing E ngaging Aligning Transforming

Employee Value Proposition

G.R.E.A.T. Strategic Initiatives

support for the

go the extra mile;

These three perspectives impact client satisfaction and business performance.

High Performance Framework

For an organisation to maximise business results there must be:

Source: Towers Perrin-ISR's

Nestles Character Foundation

Nestle Leadership Framework

Growing Resourcing E ngaging Aligning Transforming

Continuous & Strong Leadership Pipeline

Stronger Engagement level

Growing Resourcing E ngaging Aligning Transforming

High Calibre Talent

Growing Resourcing E ngaging Aligning Transforming

Growing Resourcing E ngaging Aligning Transforming

Finance & Control / Supply Chain

Human Capital &

Growing Resourcing E ngaging Aligning Transforming

Learning & Development Compass

Growing Resourcing E ngaging Aligning Transforming

Functional & Leadership Training

Growing Resourcing E ngaging Aligning Transforming

Growing Resourcing E ngaging Aligning Transforming

Learning & Development Programs 2008

Growing Resourcing E ngaging Aligning Transforming

L&D initiatives in Production

Growing Resourcing E ngaging Aligning Transforming

Professional Certificate in Sales

2 Modules from Nestle

Growing Resourcing E ngaging Aligning Transforming

Executive Diploma in Manufacturing

Competency based Interview

Growing Resourcing E ngaging Aligning Transforming

Growing Resourcing E ngaging Aligning Transforming

Below the Surface

Knowledge of Electronics, Companies' Products,