Syed Ali Hadi Raza Zaidi-13604 Syed Bilal Ahmed-11971 Umair Mahmood-13559 Sharik Mahmood-13058 Usama Salam-13684
Table of Content
Acknowledgement..3 Executive Summary....4 Introduction.....5 History.....7 Product & Services..8 Mission & Vision Statement....9 Board of Directors..10 Organizational Structure of Pakistan..11 Global Sales Structure.......12 Organization Structure......13 Management Committee.14 Registered & Corporate Office............................................................................15 OB Practices in Nestle....16 OB of Nestle....19 Ob of Individuals.20 Organizational Culture of Nestle..21 Hiring & Training Programs..23 Power, Politices & Learning...24 Teams, Groups & Conflict Management.....25 Code of Conduct..26 Analysis.....27 Recommendations29
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Acknowledgement
We are heartily thankful to our course facilitator Mr. Shafqat Ullah whose encouragement, guidance and support from the initial to the final level enabled us to develop an understanding of the subject and helped us in the completion of this report.
Syed Ali Hadi Raza Zaidi-13604 Syed Bilal Ahmed-11971 Umair Mahmood-13559 Sharik Mahmood-13058 Usama Salam-13684
Executive Summary
This report is on the organizational structure of Nestl Pakistan. It starts with an introduction about Nestl followed by the history of Nestl. It gives a briefing about all the products offered by Nestl. This report also includes the management committee. The report shows an internal architecture of the working of the Nestl confectionary business. It includes the organizational behavior practices which define the communication style and the culture. It also defines the behavior of individuals and about the group in general. The objectives and policies of the organization are also stated along with the practices.
INTRODUCTION
Nestl Pakistan Ltd is a subsidiary of Nestl S.A. - a company of Swiss origin headquartered in Vevey, Switzerland. It is a food processing company, listed on the Karachi and Lahore stock exchanges and operating in Pakistan since 1988 started as a joint venture with Milk Pak Ltd. and took over the management in 1992. For ten years in a row, the company has won a place among the top 25 companies of the Karachi Stock Exchange. Headquartered in Lahore, the Company operates four production facilities. Two of its factories in Sheikhupura and Kabirwala are multi product factories. One factory in Islamabad and one in Karachi produce bottled water. Through its effective marketing and a vast sales and distribution network throughout the country, it ensures that its products are made available to consumers throughout the country. Nestl Pakistan has large operations with multi-dimension areas but people, quality products and brands are the main flag bearers of the companys image. Nestl Pakistan now operates the biggest milk collection operation in Pakistan, Currently, Nestl Pakistan collects milk from an estimated 190,000 farmers spread over 146,000 sq Kms in the province of Punjab and Sindh. Nestl believes in creating shared value and is committed to the communities it works and lives with. In Pakistan, the company is working closely with communities in areas related to Nutrition, Water and Rural Development, and continues to enhance the quality of life of people through out its value chain. Nestl Pakistan today is the leading Food & Beverage Company in Pakistan with a key focus on Nutrition, Health and Wellness and reaching the remotest of locations throughout Pakistan to serve the consumers. Nestl Pakistan prides itself in being the leader in Nutrition, Health & Wellness. Ever since 1867, when Henri Nestl invented the first infant food, nutrition has been in their DNA. Today more and more consumers mirror our emphasis on nutrition, as they realize that food choices affect their health and quality of life. The companys strategy is guided by Nestls Corporate Business Principles which are in line with internationally accepted best practices and ethical
performance culture. The Companys priority is to bring the best and most relevant products to people, wherever they are, whatever their needs are, and for all age groups. Nestl is not a faceless corporation catering to faceless consumers, but is a human company providing a response to individual human needs. It respects the cultures of the countries and is committed to make a contribution to the quality of life of people. In line with Nestls global philosophy, Nestl Pakistan is proud of its commitment to excellence in product safety and quality and to providing value and services to its consumers. As a socially responsible corporate, we always focus on environment friendly operations, ethical business practices and our responsibility towards the communities.
History
1912-Nestl begins its long relationship with South Asia when the Nestl Angle-Swiss Condensed Milk Company starts importing and selling finished products in the Indian market. 1979-MILKPAK Ltd. is founded by Syed Babar Ali. It manufactures UHT milk, cream and butter, as well as fruit juices. 1981-Production of long shelf-life UHT milk begins at MILKPAK Ltd.'s Sheikhupura factory. 1988-Nestl SA acquires a 40 percent share in MILKPAK Ltd. 1990-The Sheikhupura factory starts the production of NESTL NIDO milk powder and cereals. A new plant is acquired at Kabirwala in the Punjab. 1992-Nestl takes over the running of the company and begins to develop its milk collection network. A Maggi Noodles plant is installed at the Kabirwala factory. 1996-MILKPAK Ltd. is renamed Nestl Milkpak Ltd. 1997-The Kabirwala plant becomes a fully owned unit of Nestl Pakistan Ltd. 1998-NESTL PURE LIFE bottled water is premiered in Pakistan. Within a few years it becomes one of the world's leading brands of bottled water. Meanwhile, Nestl milk collection system in the Punjab matures and the company is able to buy all its milk from farmers instead of relying on contractors. 2001-Nestl Pakistan acquires the Fontalia and AVA water companies which specialise in supplying water to homes and offices. 2004-Afghanistan becomes the fourth sales zone of Nestl Pakistan Ltd. 2005-Nestl Milkpak Ltd is renamed Nestl Pakistan Ltd. The GLOBE project is successfully launched, and is intended to further cooperation and information sharing with Nestl companies around the world. Nestl Pakistan responds swiftly to October's devastating earthquake, using its own distribution channels to bring aid to the worst affected areas.
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Board of Directors
Syed Yawar Ali Ian J. Donald Frits van Dijk Pierre Schaufelberger Giuseppe Bonanno Syed Babar Ali Syed Hyder Ali Chairman Managing Director Director Director Director Director Director
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South
North
Karachi
Gulshan Town
Hasan Square
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Organization Structure
Nestl Pakistan follows a flat, matrix organizational s t r u c t u r e . T h e departments are divided function-wise and productwise. All the products use different f u n c t i o n a l d e p a r t me n t s , a n d a l l t h e f u n c t i o n a l d e p a r t me n t s h a v e s p e c i f i c p r o d u c t departments within them. The span of control is wide, as each department head has many direct and indirect reporting relations with his subordinates. Also, as in a pure matrix f o r m, n e a r l y a l l e mp l o ye e s h a v e t wo o r mo r e d e p a r t me n t s t o r e p o r t t o , d i r e c t l y o r indirectly. T h e M a n a g i n g Director of Nestl Pakistan reports directly to the Head O f f i c e i n Switzerland, and gets guidance and objectives from them. Directly under the Managing Director are different functional departments: Business Executive Managers Head of Human Resource Department Head of Sales Department Head of Supply Chain4 Head of Food Services Department Head of Technical Department Head of Finance Department Head of Corporate and Legal Department
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MANAGEMENT COMMETTIEE
Name
Usman Iqbal Bhatti Faisal Akhtar Rana Edouard Simond Samra Maqbool Ian J. Donald Rizwan Yousuf Giuseppe Bonanno Zafar Hussain Shah Khurram Zia Nauman Khan Syed Fakhar Ahmed Shaheen Sadiq Ali Sadozai Salman Nazir Michel Juillerat Arsalan Khan Abdullah Jawaid
Designation
Country Business Manager Waters Business Manager (Coffee, Milk Modifiers & Cereals) Head of Technical Business Manager Culinary Managing Director Country Business Manager (Nutrition) Head of Finance & Control Head of Sales Business Executive Manager (Ambient Dairy) Country Business Manager (Nestl Professional) Head of Corporate Affairs Head of Communication Company Secretary & Head of Legal Affairs Head of Supply Chain Head of Human Resource Business Manager (Beverages) Business Manager (Chilled Dairy)
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Branches/Regional Offices
South Zone Karachi F-77/1, Block - 7, Kehkashan Cliftton, Kda Scheme 5, Karachi. Phone: 021-35876770, 35876093 Fax: 021-35833937 Quetta 63-B-D, Chaman Housing Scheme, Opp. Askari Park, Quetta. Phone: 081-2834887, 2821243 081-2823946 Fax: 081-2847797 Hyderabad House No. 178, Block C, Unit 2, Latifabad, Hyderabad. Phone: 022-3860403 Fax: 022-3863202 Center Zone: Gujranwala Habib Bank Plaza, 1st Floor Satellite Town, Gujranwala. Phone: 055-3733415, 3733243 Fax: 055-3733379 Faisalabad Ground Floor, Al-Haq Palaza 271-A, Small D Ground, Peoples Colony I, Faisalabad. Phone: 041-8716937, 8555607 Fax: 041-8716823 Multan Al-Syed House, Street No. 2, Iqbal Park, Sabzazar Colony. Bosan Road, Multan. Phone: 061-6212901 , 6512900 Fax: 061-6212901 North Zone: Islamabad Plot No. 395/396, Sector I-9/3, Industrial Area, Islamabad. Phone: 051-4859300, 4859301 Fax: 051-4859303 Jhelum House No. 5/155 Sabir Road, Jhelum Cantt, Jhelum. Phone: 0544-720004 Fax: 0544-629126 Peshawar 42-D Jalala House, Old Jamrud Road, University Town, Pehsawar. Phone: 091-5700859 Fax: 091-5854454
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OB PARACTICES IN NESTLE
COMMUNICATION: Communication Strategies followed by Nestle: At Nestle the working environment was very formal. People were encouraged to participate and they could easily communicate with their co-workers. Few of the things that we noticed about their communication flow were Mostly downward communication occurs. However employee suggestions were also welcomed. They can talk to their superiors easily. Employees and workers are encouraged to participate in decision making to some extent. They are asked their opinions in any new package that the company is offering. But mostly at higher level, GM of all the departments interacts with each other for major decisions. And the lower level is informed about the decision. No trend of memos, unless there is a major event or an unexpected holiday announcement. There is not much written communication. They mostly contact through a phone call or email. In a way we see that there is an open communication channel within the company. There is the network of communication links within organization, to achieve the goals as well as institutional objectives. INTERNAL COMMUNICATION: Nestle has maintained open communication channels both downward and upward in the companys hierarchy. This is quite effective in creating a good working environment for the employees. Mostly all the conversation that is being carried on is through e-mails within departments and employees. All sorts of announcements are made through emails most of the time no such memos are used.
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Downward Communication: In Nestle message which is sent to workers by top authority is called downward communication. It is the is deliberate creation of communication channels by the top authorities on formal lines to inform, instruct, direct, suggest and evaluate employees in the process of coordinating individuals efforts towards organization goal. Downward communication takes place when managers like to inform or educate the employees. Downward communication is also utilized by the managers to send feedback to the subordinates as a response to the upward communication. Upward Communication: The message or any other data which is sent to authorities by the employees is called upward communication. Through this, top management can maintain continuous touch with the low levels. In absence of this communication top level will be isolated and in the long run managers will be totally fail to manage people and work Examples include, Complaints about working conditions or about any other negligent employee. The medium used include letters and emails.
EXTERNAL COMMUNICATION: In Nestle the external communication means sending messages to persons outside the company. The sources used by Nestle for its external communication are as follows By Annual Report Media Advertisement Print media advertisement By giving packages Through services Through Presidents message
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Barriers to Communication in Nestle The problems those are faced by Nestle are as follows Cultural Difference: Since Nestle is a multinational company having thousands of employees from different areas and having entirely different culture, it faces a great problem in its day to day business activities. Emotional Interference: Nestle has a huge area all over the world. And operate this huge mob employees is not an easy task. There are many reasons in which the employees become anger and which may cause of barriers. Information overload and message competition: Nestle in Lahore is the land office in Pakistan which deals to the whole Pakistan. There are millions of messages which come from customer and they have not enough time to read and reply, thus barrier in communication.
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Nestle organizational behavior focuses primarily on two major areas. Organization behavior looks at individual behavior based mainly on contributions from psychologist; this area includes such topics as personality, perception, learning and motivations. Nestle knows the importance of individuals (MAN) who are the main bricks for organization behavior. Nestle has been placing greater focus on employee empowerment and participation, which are essential for long-term growth and success of the company, and therefore employees have been encouraged to put forward their issues, concerns and suggestions. Nestle trust its employees focus on integrity, competence, consistency, loyalty and openness. Manager stops at people desks during the day to chat with them about their work, keeping up to date also earns the trust of employees. Secondly their organizational behavior is concerned with group behaviors, which influence roles, team building and conflict. The organization group behavior is good. Once the individuals are skillful, energetic, responsible, agreeable etc, then it is easy to make form successful groups. All these things make the organization behavior successful. In order to make all business affairs transparent, smooth and effective, following committees and teams have been formed which work cohesively and independently.
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Productivity Turnover Absences More Medium Less More Medium Less More Less Less More No Less More Less Less More No Medium
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SIX DIMENSIONS OF CULTURE 1. Innovation and risk taking: According to our survey what we have found is that employees are not much encouraged to be innovative and take risks. 2. Attention to detail: According to our survey employees has given importance. 3. Outcome Orientation: The managers focuses on both results or outcomes and the techniques needed to achieve those outcomes. 4. People Orientation: Management decisions do not take into consideration the effect of outcomes on people within the organization. They have made their employees a central part of their culture. 5. Team orientation: They emphasize on team orientation i.e. work activities are organized around them. Stability Nestle is maintaining the status in contrast to growth. Zero Tolerance Nestle have high ethical standards and a Business Principles and Ethics Policy in place. They value, encourage and inculcate corporate reforms, good governance, best business practices and an environment of continued adherence to Zero Tolerance, resulting in the development of our human capital and meeting all business challenges.
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Training Programs
Training is seen as an ongoing process. It doesnt only involve training sessions and lectures, but day-to-day interactions with the superiors and fellow employees, absorbing their knowledge and ideas: guidance and coaching by managers is a given. Knowledge also comes through the tasks assigned: simple learning-by-doing and on-the-job training. Apart from that, Nestl is committed to enhancing employee skills and competencies through formal training programs. These are selected a c c o r d i n g t o i n d i v i d u a l requirements and the job they are working for. The candidates are selected based on their performance, potential and personal development goals and recommendations come from t h e He a d o f Hu ma n R e s o u r c e D e p a r t me n t a n d t h e B u s i n e s s P a r t n e r s o f r e s p e c t i v e departments. The Centre of Expertise is responsible for designing .
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LEARNING
In Nestle learning is done to make the employees skilled at creating, acquiring, transferring knowledge, and to enhance their skills. In an Organization learning is a long-term activity that builds competitive advantage over time and requires sustained management attention, commitment, and effort. In Nestle collaboration with team members give the employees opportunity for learning social, technical and creative skills. When learning is effective the organization is highly aware of how to motivate its employees in the best ways. Rewards, such as education, bonuses are given to motivate employees. There are different kinds of rewards NESTLE gives to their employees which are as follows: Cash bonuses Promotions Make team leader Increments in salaries Allowances like (fuel allowance, mobile allowance)
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CONFLICT MANAGEMENT:
Nestle compromised self managed work teams according to employees response they feel greater level of responsibility on their shoulders and they measure the things like planning ,scheduling of work, and assigning tasks to the members of team, control the place of the work, make decisions through discussion between the team members, take actions to solve the problems and also interact with their customers and we found that the employees called their colleagues relationship officer rather than sales officer.
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CODE OF CONDUCT
In line with Nestle managements effort to maintain the decorum and ensure an environment that is cohesive to the development and success of the people, a Code of Conduct has been put in place where the following activities can result in disciplinary action: 1. Unsatisfactory and negligent job performance. 2. Excessive and unauthorized absence from duty. 3. Unsatisfactory safety performance. 4. Reporting on duty under the influence of drug or intoxicants. 5. Absence from duty without notice or permission from the supervisor unless the cause of absence prevents giving notice. 6. Using influence for promotion, transfer or posting. 7. Conduct that violates common decency and morality. 8. Engaging in a fight or in activity that could provoke fighting on site property. 9. Insubordination or deliberate refusal to comply with reasonable requests or instructions. 10. Use or possession of weapons, ammunitions, explosives, intoxicants, illicit drugs ornarcotics on site. 11. Acts of horse play on site property. 12. Gambling on site property or bringing illegal gambling paraphernalia on to the site. 13. Theft or unauthorized removal of site property or property belonging to site employee, contractor and vendor. 14. Intentional damage to site, employee, contractor or vendor property. 15. Dishonest act or fortification of records, including the giving of false information when required. 16. Bringing combustible material on site or having any type of match sticks, cigarette lighter or flame producing device in restricted areas. 17. Smoking except in designated areas. 18. Using or divulging without permission, any confidential information gained through employment at the site. 19. Physical, mental or sexual harassment of fellow employee including threat to do bodily harm. 20. Crime involving fraud, indecency, breach of dignity or public morals and other serious offences. 21. Any other commission or omission which, in the opinion of the company, requires/justifies dismissal/termination of employment.
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ANALYSIS
After studying various issues related to the organizational behavior within the organization we analyzed that
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RECOMMENDATIONS
To increase goodwill and positive impression of Nestle among
employees and customers Company should adopt the following things:
Enhance more promotion opportunities for their employees. Encourage employees to participate in decision making. We would suggest that specific job related training should be imparted to
employees this would give an additional benefit to employees for improving their skills.
Although Nestle is covering whole Pakistan but is rates are high they can
lower its rates, with low charges in order to capture a larger market and this way they can capture the customers of low income group.
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