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ASA University Bangladesh

Assignment On Training and Development of Nestle Bangladesh.

Course title: Human Resource Management Course code: HRM-501

Submitted To
Md. Azizur Rahman Course Instructor ASA University Bangladesh (ASAUB).

Submitted To
ID: 12-1-14-0 Section-B Program: MBA

Date of Submission: 27th April, 2012

Letter of Transmittal

April 27, 2012 Md. Azizur Rahman Course Instructor ASA University Bangladesh

SUBJECT: SUBMISSION OF ASSIGNMENT Dear Sir, This is to inform you that I am submitting the assignment Training and Development of Nestle Bangladesh. I have tried to discuss all the relevant points of a feasibility study while keeping consistency with Nestl Bangladesh Limited. I would be glad to clarify any discrepancy that may arise or any clarification that you may require regarding my assignment.

Sincerely, _________________________ NAME ID: 12-1-14-00 ASA University Bangladesh

Executive Summary
Nestle is worlds largest health, nutrition and wellness company. Although globally it is twice in size of its nearest FMCG (fast moving consumer goods) competitors, in Bangladesh its journey is relatively new. But recent times it has experienced an organic growth of 40% and this trend predicted to continue in the coming few years. Nestl Bangladesh focus on continues excellence of their employees for their better performance in the work at Nestl and for the betterment of their career. In this paper there is a complete discussion about the current training process and also the process of end result evaluation. Training need assessment, preparation, training, feedback and finally work on feedback these are the step to conduct any training. By following these processes they providing training on Functional Skills, Organizational Knowledge, Business Skill, and Leadership Skill. The company has particular standard that they need to maintain for each session conducted. However every time it becomes difficult to evaluate the outcome by using rating or scoring process from the trainings and also it is not possible to numerically express the improvement of knowledge, skill and behavior that are use deliver through trainings. As a result in this paper an assessment is shown from result evaluation perspective and process evaluation perspective. Kirkpatrick Model is used for assessing from the result evaluation perspective and Context, Input, Process, Product Model (CIPP Model) is used for process evaluation perspective. The existing process of Nestl Bangladesh does to match point to point with these models but it is serving the purpose efficiently and cost effectively. However in the coming days current training function will require modification according to the business need, as a result these assessment may help them for further improvement.

Table of Content

No. 1 2 2.1 2.2 2.3 2.4 2.5 2.6 3 4 5 6 7 8 Introduction

Particulars

Page no. 1-2 3 4 5 5-6 6-7 7-8 8 9-10 11 12-13 13 14 14

Background of Nestle Bangladesh Training and Development at Nestle Bangladesh Objectives of Training and Development Training Preparation Method of Training and development Training and Development Management Professional Development Programs Training need Assessment Existing strategies of Training and Development Job Description Weakness of Training and Development Suggestion and Recommendation Conclusion

1. Introduction
In every field of study, theoretical course work and the field experience play major role to shape the knowledge and skill of a student. In case of business studies the real life experience make the difference in a bigger aspect. To achieve excellence business studies always tries to reflect the real life scenario and the theoretical assumptions side by side. Due to the ever changing nature of business organizations today almost every business schools and institutes are arranging internship programs. In one side as a business student the course works build my basic and this very internship program gives me the real life exposure in one of the well-known corporate of Bangladesh- Nestle Bangladesh Limited. I would like to show my gratitude to the respected authorities of BRAC Business School, Career Service office and especially to Nestl Bangladesh Ltd to offer me such a great scope of learning. In this twelve weeks engagement program I worked in the Corporate Affairs function under the supervision of Mr. Hasibur Rahman, Company Security Manager- Nestl Bangladesh. A part from that I am also grateful to Ms. Afsana Akhtar, Associate Professor and Coordinator, BRAC Business School for her guidance and advice. In this paper I discussed about the business of Nestl Bangladesh and the tasks I performed in this organization; most importantly there is a complete discussion on the training function of the Nestl Bangladesh in the project part of this paper. Along with the discussion I also relate the current process with the two training models for assessing the outcomes.

1.1 Objective
Broad Objective: Gain a real life exposure with a business organization to relate with the theoretical practice. Specific Objective: To understand the business of Nestl Bangladesh Limited To get knowledge how the HR function in Nestl Bangladesh

1.2 Methodology
Both primary and secondary sources are used to collect information for this report. Main source of information about the business of the Nestl Bangladesh and for the analysis is the training functions are taken from the Human Resource department. Primary source: several discussions with the different person of Nestl Bangladesh. Moreover at the time of doing different task, from there I collected different information. Secondary source: along with the primary sources information are also gathered from the intranet and the files of Nestl Bangladesh.

1.3 Scope
This report talks about the current business operation of Nestl Bangladesh. There is only detail description of the HR function of the company because of the availability of information to me as I worked in this function. Moreover in the project part I talked about the training function where the current process is described and a comparison is being made to analyze the efficiency of outcome analysis of the training conducted.

1.4 Limitation
For the confidentiality concern, access to some information was not available. Moreover, the current effectiveness of the training function was not able to compare with the other FMCGs of the Bangladesh, which was my primary intention to include in this paper.

2. Background Of Nestle Bangladesh


Todays Nestl, the world's largest food and nutrition company, founded by the Henri Nestl (10 August 1814 7 July 1890); a German confectioner in Vevey, Switzerland in 1866. In the food industry Nestl is the most trusted name with high quality products. Good food Good Life is the mission of Nestl, which drives the company to provide consumers with the best tasting and most nutritious choices in a wide range of food and beverage categories and eating occasions. The vision of creating shared value and the very own Corporate Business Principles shaped the company culture and made them a reliable investor over 86 countries of the world. Today Nestl employs around 280000 people and have factories or operations in almost every country of the world with a total equity of CHF 62.60 billion.
. The rivalry between Nestl and the Anglo-Swiss Condensed Milk Company intensified but

ended in 1905, when the two companies merged under the Nestl banner. World War I created a new demand for dairy products. Nestle grew mainly by executing government contracts. The end of the war created a crisis for the company as people started using fresh milk again, instead of condensed and powdered milk. In 1921, Nestl recorded its first loss, which was partly due to the worldwide postwar economic slowdown. Louis Dapples, a Swiss banking expert restructured the company, streaming its operations and reducing the debt burden. In 1930, the Brazilian Coffee Institute approa ched Dapples, seeking new products. After eight years of research Nestl developed a soluble powder that revolutionized coffee drinking around the world. The product was launched under the brand name Nescafe and became an instant success. The onset of Worl d War II speeded up the introduction of Nescafe. The beverage also became a popular drink among American servicemen in Europe and Asia. The end of World War II triggered off a new phase of growth for Nestl. Many new products were added as the company grew through acquisitions. After 1974, Nestls financial position deteriorated. Oil prices rose and growth in industrialized nations slowed down. The Swiss franc appreciated and the price of coffee beans and cocoa shot up. This situation was partially offset by Nestls rapid growth in emerging markets.

2.1 Trainings in Nestl Bangladesh


In a year most of the trainings are conducted to improve the efficiency of the employees. In the year of 2011 the trainings are:

Communication Skill
This training mainly emphasizes on the corporate communication. In different situations of different positions employees need to communicate in different layers of the organization. In this training trainers are mainly the senior employees in the managerial position. Most interesting aspect of this training is that, after the training session the trainers and trainees arrange a role playing session to practice the skill in real life model.

Presentation Skill
Here employees are trained about the presentation skills which are very necessary in day to day life. The trainers of this session are also the senior employees in the management level or sometimes the training team brings experts for it. Especially for the employees of the Nutrition function doctors are bought up by the training team. It is mostly class room based training.

Training on Nutrition Awareness


Nestl itself is very well-known for its nutrition related products; as a result the company also arranges awareness session to aware the employees about the nutrition in our day to day life. Mainly the nutrition specialists are welcome to conduct the session. Along with that the company also arrange nutrition awareness program in the different schools in the rural arrears of the country.

Everyday Coaching Awareness Session


This training program is mainly to get familiar with the rules and regulation to conduct business in the food industry. As a wellbeing company Nestl is bound to maintain the compliance issues; as a result this training session mainly focus on the existing and new rules imposed by the 37

Product Knowledge
Particularly this training is organized for the new joiners of the company; in compare to world market the product line is not so extended in Bangladeshi market. However day by day new products are being introduced in this region. As a result this training is arranged with the help of marketing team by the HR training team for the new joiners.

2.2 Training and Development Objectives


The principal objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. In addition to that, there are four other objectives: Individual, Organizational, Functional, and Societal. Individual Objectives help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization. Organizational Objectives assist the organization with its primary objective by bringing individual effectiveness. Functional Objectives maintain the departments contribution at a level suitable to the organizations needs. Societal Objectives ensure that an organization is ethically and socially responsible to the needs and challenges of the society.

2.3 Training Preparation This is the most lengthy and critical part of the total training function. By comprising so many small parts this preparation is done. In this part the most important aspects are: Decide what training will be conducted Set the Training Calendar Prepare the Nomination, Trainer, Training Content & Logistics Book Venue of the Training Prepare budget

At first the training team decides what trainings need to be conducted in the coming year. Every year there is some training which need repetition, such as the Training on Business principle or other corporate value related training. To make the process simple the training team divides the total period into different quarters; the actual dates are finalized later; based on this quarterly estimation a full training calendar is prepared. However this training calendar needs modification for different emergency or other purposes. Another important aspect in terms of setting a training calendar is to match with the globally published one; which comes from the Vevy; global headquarter of Nestl. Globally

there are some trainings are offered every year, so the local training calendars are developed in such a way that it should not clash with global one. The nomination for the training actually comes from the PGD and also from the improvement areas identified which comes out from the performance appraisal. After the nomination the trainees are informed before the training is conducted by locking the Microsoft Outlook Calendar. On the other hand all the trainings arranged by the training teams are not taken by the Nestl internal employees, some time they bring other experts from different training institutes. Here the training team communicates with the institute according to the training need. It is the responsibility of the trainer to develop the training content according to requirement. Sometimes some training is recommended conducting in the local headquarters; in that case those training contents are directly sent from Vavy. A part from that the required logistic supports for conduction training are prepared by the training team and with the help of Admin. Selecting the venue of the training depends on the nature and the number of the trainee. When the training is conducted for 20 to 25 and the nature of the training is lecture based they use the office canteen; other than that when the session is developed as a workshop manner then they or if the training include any other practice then they book external venue; such as the Flabme or the BDMS of BRAC at Saver. Based on all the aspect the total budget of the training is set. HR function of Nestl mainly prepares this budget for those training which are prepared by the HR training team.

2.4 METHODS OF TRAINING & DEVELOPMENT 1. Individual development program: A clear developmental action plan for an individual which incorporates a wide set of developmental opportunities including formal training. Its purposes are: Improving performance in existing job. Developing skills for future career.

Steps for preparation of personal development plan are: SWOT (strength, weaknesses, opportunities, threats) analysis.

2. Formal training:

Set goals to cover performance in the existing job. Draw up action plans to achieve goals.

Internal courses. External courses. Day release per week, Distance learning, Evening classes, Revision courses, Block release, Sandwich courses, A sponsored full time course.

Computer based training. Techniques (lectures, discussions, seminars, exercises, case studies)

3. On the job training: The assignment should have a specific purpose from which the trainee can learn and gain experience. The work should not be too complex. The organization must tolerate any mistake which the trainee makes. Mistakes are an inevitable part of on the job learning. Methods of on the job training are demonstrations, instructions, coaching, job rotation, and temporary promotion, assistant to position, action learning, committees and project work. 4. The learning cycle: (Kolb) Kolb suggested that classroom- type learning is a special activity. Experiential learning involves doing, however, and puts the learners in an active problem-solving role: a form of self-learning which encourages the learners to formulate and commit themselves to their own learning objectives.

2.5 Training and Management Development At Nestl, we strongly believe that it is our people who form the strength of the Company and that nothing can be achieved without their commitment and their energy. People are indeed our most important asset and we invest heavily on their training and development. It is on this foundation that we have designed our Training & Management Development strategy, focusing on three main axes. Our first axis is to develop a team of talents to ensure that the right people are in the right place at the right time. The second axis is to enable experience through exposure; either through on-the-job training, overseas assignments or project participation. The third axis

of development stresses on providing appropriate training and developmental opportunities aimed at generating meaningful learning that enhances both corporate and personal performances. As a people company, we remain committed to offering our people opportunities to develop their capabilities and realize their full potential.

2.6 Professional Development Programs Adequate training programs are developed at the level of each operating company capitalizing on the availability of local, regional or global resources of the Group. It is the responsibility of HR s t a f f t o a s s i s t t h e m a n a g e m e n t i n t h e e l a b o r a t i o n o f t r a i n i n g p r o g r a m s . F o l l o w i n g t yp e o f programs are conducted at Nestle: Training programs enhancing the language skills of the employees. Training programs aimed at developing and sharing best

p r a c t i c e s o f t h e v a r i o u s management disciplines practiced in the Group. They also strive to strengthen corporate cohesion as well as to promote networking throughout the Group. E-learning programs as a complement to or a substitute for formal training programs.

3. Training Need Assessment


People are an organizations most important resource. For an organization to accomplish its mission, its employees must have a clear understanding of their roles, know how well they are performing those roles and be given opportunities to develop. These factors lead to positive 29 outcomes for individuals, teams and the organization. Thus, it is important for an organization to have an effective system for assessing employee performance, communicating performance information to employees and providing on-going support. The purpose of a training needs assessment is to identify performance requirements or needs within an organization in order to help direct resources to the areas of greatest need, those that closely relate to fulfilling the organizational goals and objectives, improving productivity and providing quality products and services. Assuming that the needs assessment identifies more than one training need, the training manager, working with management, prioritizes the training based on the urgency of the need, the extent of the need and the resources available. Based on this information, the training manager can develop the instructional objectives for the training and development program. In Nestl Bangladesh particularly Training Need Assessment is done and the training programs are set upon the performance evaluation and the Performance development guide of the employees. At beginning of the year an objective is set for every employee and then the first review on the performance is occurred at the mid of the year; here the corresponding manager checks how much of the given objective is achieved and gives feedback on the achievement. Finally at the year end the total performance of the year is evaluated and from here the development areas comes out. For developing that area the performance development guide is prepared and the training team prepares the training according to that guide.

3.1 Conduct a Need Assessment


Nestl Bangladesh follows some factor that helps to conduct their necessary need assessment. The facilitator gathers all employees who have the same job in a conference room with a white board or flip charts and markers. Ask each employee to write down their ten most important training needs. Emphasize that the employees should write specific needs. Communication or team building is such broad training needs, as an example that you would need to do a second training needs assessment on each of

these topics. How to give feedback to colleagues or how to resolve a conflict with a coworker are more specific training needs. Then, ask each person to list their ten training needs. As they list the training needs, the facilitator captures the training needs on the white board or flip chart. Don't write down duplicates but do confirm by questioning that the training need that on the surface appears to be a duplicate, really is an exact duplicate. when all training needs have been listed, use a weighted voting process to prioritize the training needs across the group. In a weighted voting process, you use sticky dots or numbers written in magic marker (not as much fun) to vote on and prioritize the list of training needs. Assign large dot 25 points and smaller dots five points each. Distribute as many dots as you like. Tell needs assessment participants to place their dots on the chart to vote on their priorities. List the training needs in order of importance, with the number of points assigned as votes determining priority, as determined by the sticky dot voting process. Make sure you have notes (best taken by someone on their laptop while the process is underway) or the flip chart pages to maintain a record of the training needs assessment session. Take time, or schedule another session, to brainstorm the needed outcomes or goals from the first 3-5 training sessions identified in the needs assessment process. This will help as you seek and schedule training to meet the employees' needs. You can schedule more brainstorming later, but I generally find that you need to redo the needs assessment process after the first few training sessions.

4. Existing Strategies for Training and Development The Training and Development Strategies Plan is used by companies to train employees on various methods used in their respective departments. The Training and Development Strategies provides an overview with checklist, motivation for participation, implementation process, the training involved, methods of coaching and mentoring, and assessments with certificate of completion. A training strategy is designed to achieve an educational goal, such as teaching a new skill
or updating employees on changes to company policy. Creating training strategies delivers focused information that offers value to the employees by creating an improved skill set, and to the company by developing a better-prepared staff.

Create a training action plan, which must ensure that the necessary systems are in place, access resources, source or design training and position the training. The training must then be delivered and co-ordinate.

Establish what are the customers want and need. Ensure their customers to know the training is meeting their needs and that these needs provide a base for decisions in all other areas.

Decide between on-the-job, classroom, distance learning, web-based and virtual learning. Access, location, and distribution are key to consider. Establish roles and responsibilities. Action the Training and Development Strategic Plan. Monitor and evaluate progress and make adjustments where necessary. Survey leading public and private sector organizations for the best examples of training programs, methods, and technologies. Create and distribute a matrix that matches the essential competencies with the techniques, methods, programs, and activities most likely to aid in developing the competencies.

5. Job Description
5.1 Roles and responsibilities of the institution

Developing an Information Strategy which integrates IT training with the overall mission of the institution.

Identifying, in consultation with key staff, a skills audit, to determine what specific competencies are required to meet organizational objectives.

Establishing a balance between recruiting specific skills and effectively developing existing talent.

Providing adequate resources for training and development. Ensuring staff have access to appropriate equipment. Ensuring access to practical "hands on" training and practice. Encouraging networking between colleagues in other institutions. Considering strategies such as short-term secondment to an institution which may have more experience in a specific area. Involving staff in designing training and development programmers. Facilitating effective multi-disciplinary communication. Taking a broad view of what constitutes training and development (i.e. combination of formal courses, generic and tailor-made, informal training within the organization, skills transfer within the organization, networking etc.)

5.2 PERFORMANCE MANAGEMENT Formal assessment by Line Managers and HR once in a year with feedback. Subordinate can question an unfair evaluation. Specific Key Performance Indicators have been enlisted by the HR department. One of the important key performance indicators is achievement following the Nestle management and leadership principles. Remuneration structure and promotion criteria take into account individual performance

5.3 Employee Relation: Intolerance, harassment or discrimination or any kind of expression of disrespect is strongly discouraged in Nestl. Emphasis has been given on the transparency and honesty in dealing with people for efficient communication. It is ensured that every employee has the right to an open conversation with superiors or colleagues. However, in case of discord between an employee and the respective superior, the situation is advised to be resolved by a fair hearing. As a result HR staffs provide assistance to ensure that the disharmony is dealt with impartially. It is the responsibility of the local management to maintain a harmonious Industrial relation in appropriate levels. Nestls relations with unions is established under strict observation of national law, local practices as well as those international recommendations to which Nestl has followed to on a voluntary basis as stated in its corporate business principles.

6. Weakness of Training and Development


Nestle Bangladesh has some lacking that create threat for their training and development.

Training budget cuts when resources get tight. Management not fully supportive of training effort. No data documenting the impact of training to the bottom line. Training programs don't support the organization's mission and strategic goals. Training programs are poorly attended. Training program presenters are not well received by attendees. Training program evaluation is ineffective and incomplete Sometimes the trainer does not give the proper training. They also dont follow off the job training Some lacks in recruiting and selection process They do not follow any personnel replacement chart.

7. Recommendations
A work hour in the company is very hectic as most often they have to stay for long hours. So, they could give more emphasis on the recreation of the employees during the work hours. Company should concentrate more on casual worker as they are not at all educated even though they do not have the basic knowledge of a industry so before appointing a new casual worker he should be trained properly about the basic things of the industry. Company should take some certified trainer. Nestle Bangladesh should arrange the transport facility for their employee and workers because their factory is quite far from the main city. For training and development supervisors should be more accountable to his/her senior as Nestle has a structured training system but more of its work falls upon supervisor. So supervisors accountibity should be under someone.

8. Conclusion
Nestls overarching principle is that each employee should have the opportunity to develop to the maximum of his or her potential. Nestl 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.

Reference 1. www.google.com 2. www.nestle.com