Nestlé, Wal-Mart & MNCs in Ireland

Presented By:Mariam Firdaus mba2008044

INTRODUCTION:• Developed from a village operation to worlds leading food company.

• Has capability to adjust to ever changing environment.

• Nestlé's competitive edge –to manage complexity with a high level of

efficiency.

• “Basic Nestlé Management and Leadership Principles were issued in

1997.

• Nestlé aims to:

increase sales & profit

raise standard of living & quality of life.

Nestlé –A HUMAN COMPANY:• Concerned for employees & consumers.

• People –the strength of the company

the most important asset

Nestlé Culture:• Committed to strong work ethic, integrity, honesty and quality.

• Open & frank communication.

• “Pragmatic” than “Dogmatic Approach”

• Curiosity for future trends.

• Loyalty to and identification with company.

General Principles:• Nestlé is people, product and brand-oriented.

• Favours long-term success.

• Seeks to earn consumer confidence, anticipate consumer trends and

responding to it.

• Conscious of its social responsibility.

• As decentralized as possible.

• Avoid dramatic one time changes.

Nestlé Manager’s Profile:

• Personal commitment

• Willingness to take

initiative

• Ability to motivate &

develop people

• Open-mindedness

• Interest in other

cultures life styles

• Willingness to accept

change and manage it

• Adaptability

• International

experience

• Able to convince

• Good general

knowledge

OBJECTIVE of Walmart –to help every associate

Human Resource Department help us in achieving our aim

They look for HR associates who can lead and motivate others

More than 2.1 million associates

Walmart HR –a great place to learn and grow

Wide range of career paths available in:

• Recruiting

• Compensation

• Training

• Diversity & Labor Relations

HR Practices of MNCsin IRELAND

Foreign-owned & Irish-owned MNCs are covered

262 organizations were studied

3 categories of staff

Key group

Managers

Largest occupational group (LOG)

THE HR FUNCTION: 54% of all MNCs have HRIS

39% firms are using Shared Services Centers, higher among Irish MNCs

Use of HR Policy Formation Committees, higher in foreign-owned MNCs

Irish manufacturing MNCs –73% had a HR Policy Formation Body

Most common mechanism used by MNCs is face-to-face meetings for

networking purpose.

HR Practices of MNCs in IRELAND

PAY AND PERFORMANCE MANAGEMENT:

Majority of MNCs aim to have pay levels at or above median point

Most of the MNCs are utilizing “performance appraisal schemes”

Foreign-owned are more likely to use performance appraisals than Irish-owned

Use of “forced distribution”

Use of “peer/360 degree feedback”

Performance related pay (PRP) is used for all employees (more in US MNCs)

Irish-owned MNCs –lower levels of discretion in reward and appraisal areas

HR Practices of MNCs in IRELAND

More common in foreign MNCs

EMPLOYEE REPRESENTATION AND CONSULTATION: 61% MNCs engage with trade unions or labor unions

Existence of non-union structures in 32% of all MNCs

High collective bargaining amongst the LOG.

Unionized MNCs are much more likely to follow the terms of national level

agreements

Almost 60% MNCs are using double-breasting i.e. employing non-union workers

to supplement the work of higher-paid union workers.

There is relatively low level of discretion by Irish MNCS.

HR Practices of MNCs in IRELAND

EMPLOYEE INVOLVEMENT AND COMMUNICATION: High usage of individual communication mechanisms

Main communication mechanism

meeting b/w line manager & employees

meetings with the whole workforce

systematic use of management chain

Growth of newer forms of communication via:

Emails

Newsletters

Use of company Intranet

Problem solving groups are present in 2/3 of companies

55 % have formally designed teams

Irish MNCs reported higher information on staffing plans

HR Practices of MNCs in IRELAND

TRAINING, DEVELOPMENT AND ORGANIZATIONAL LEARNING:

T&D expenditure in Irish MNCs is < 4% of annual pay bill

Biggest spenders are US owned MNCs

2/3 of firms have succession planning system (most commonly found in US companies)

PCNs no longer dominate the expatriate population

US firms are mostly using management development interventions

High levels of autonomy –to local management

Full discretion across US MNCs

HR Practices of MNCs in IRELAND

CONCLUSIONS:

MNC population –a diverse mix of companies

Majority of MNCS in Ireland in service sector

High level of “job churn”

More satisfaction with Irish labor force

Anxiety with regard to increased operating costs (including: increased labor cost, relocation

and living costs for expatriates etc.)

Country of origin (parent country) remains an influential factor in explaining divergence in HR

practices

HR Practices of MNCs in IRELAND