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Date of Publication: March 30, 2019 | Volume 7, Issue 1 | Pages: 1-9

Training and development of the Human Resources

for a Sustainable Organizational Development at Nestlé
India
Srinivasan P, Asst. Professor, Vellore Institute of Technology (VIT) - VIT Business School, Vellore, Tamil Nadu, India, [email protected]

░ Abstract: This paper addresses the issue of human resources Management Education in India is of a comparatively recent origin.

training and development which is considered one of the most In the last two decades there has been a rapid growth in the number of

important ways for a sustainable organizational development. The institutions offering management education.

objective of the research was to identify new possibilities for With the diversion of sizeable economics and human resources in

increasing the degree of human resources training for supporting a this strategic area of national development, there should be

more sustainable organizational development. The research has simultaneous endeavors to explore and study the various factors that

made it possible to identify the most relevant behavioral dimension affects management training, right from the identification of the

of human resources training process. It talks about the knowledge training needs, selection of suitable trainees, the modus operandi of

of our field which allows us to identify the gap which our research the training process, the supportive climate provided to the trainees

could fill and also strength’s the topic that we chose for our in the organization the subsequent impact of the course on the

research. trainees efficiency and its effect on the organization.

The literature review will help us to find and select

appropriate measurement instruments. The literature review is In this paper, a review of studies related to the topic under study is

needed because it is a necessary skill both for researchers and for given below:

practitioners of a profession which claims to be founded on a “Muhammad zahid iqbal et. al in the year (2011) has done their

knowledge base and also to locate and summarize the findings of research in the topic “an empirical analysis of the relationship

research on a given topic not uncritically but assessing the evidence between characteristics and formative evaluation of training”

and for argument to sustain the conclusions The last part of the Their analysis is about the relationship between characteristics

paper includes some recommendations for the modern managers in and formative evaluation of Training. This paper attempted to signify

order to support them to become highly effective along the the use of formative training evaluation. The authors have carried

sustainable organizational development process. out a study at three public-sector training institutions to empirically
test the predicted relationship between the training characteristics

Keywords: Human resources, management, training and and formative training evaluation under the Kirkpatrick model

development, sustainable development (reaction and learning) . This study explains the causal linkage
between components of formative training evaluation, the mediating
role of reaction in the relationships between training characteristics
░ 1. Literature review
and learning was also investigated. The principal finding revealed
This paper enunciates the importance, need of review of
that a set of seven training characteristics explained 59% and 61%
literature and the related review of studies to the topic.

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variance in reaction and learning respectively. All training overall effects of downsizing have been widely reported, many
characteristics were found to have a positive impact on reaction misconceptions surrounding the concept of downsizing have
and learning except training contents. The study concluded with remained. This conceptual paper focuses on the role of training and
areas of future research emphasizing on linking formative development (T&D) during the downsizing process. In particular,
evaluation with summative one i.e. Behavior and results. the research depicts the current body of literature associated with the
function of HR and its plans, programs, and policies that firms
Eugen Rotarescu in the year (2010) has reviewed on the topic adopting downsizing must provide to their surviving workforces.
“alternative selection under risk conditions in human Finally, this paper offers concluding comments regarding effective
resources training and development through the application of downsizing practices that have emerged in the literature.
the estimated monetary value and decision tree analysis”. Cary Cherniss. In the year (2010) has done their research in the
The topic in this article is the presentation in a succinct and topic “process–designed training: a new approach for helping
applicative manner of several decision making processes and the leaders develop emotional and social competence” and they have
methods applied to human resources training and development in evaluated the effectiveness of a leadership development program
environments with risk factors. The decisions have been optimized based on International Organization for Standardization (ISO)
by the human resources training and development, the decision principles. The program utilized process-designed training groups to
makers have readily available with two methods of analysis they help participants develop emotional and social competence. The
are: (1) the decision matrix and (2) the decision tree method. Both study involved 162 mangers from nine different companies in a
methods compute the alternatives based on the estimated monetary random assignment control group design. There were nine different
value (EMV). Finally the decision matrix and the decision tree groups with nine managers in each group. Each group was required
analyses represent two viable, scalable and easily applicable to follow the identical process. His results indicated that after two
framework analyses for selecting the optimum course of action years the intervention group had improved more than the controls on
regarding the training and development of human resources. Both all Emotional Competence Inventory variables. The paper offers
analyses generate the same solution and rely on the accuracy of recommendations for future research on the mechanisms underlying
the expected monetary value (EMV) method calculated for each the process-designed group strategy and contextual factors that
course alternative action. Of these two methods, the selected optimize results. This paper describes a leadership development
decision method depends on the circumstances, the complexity of strategy that appears to be more economical and consistent in its
the situation and preference of the decision makers. delivery than traditional approaches such as workshops or executive
Franco Gandalf in the year (2009) has done his research in the coaching. Although ISO principles are utilized widely in the
topic “training and development in an era of downsizing” and business world, this is the first study that has used this approach in
he has analyzed that downsizing as a restructuring strategy which the design and delivery of management development.
has been actively implemented for the last three decades. While ░ 2. Human Resource Practice
employee reductions were utilized mainly in response to crises Training and development play an important role in the
prior to the mid 1980s, downsizing developed into a fully-fledged effectiveness of organisations and to the experiences of people in
managerial strategy for tens of thousands of companies in the mid work. Training has implications for productivity, health and safety at
to late 1980s. Since then, downsizing has transformed the work and personal development. All organisations employing people
international corporate landscape and affected the lives of need to train and develop their staff. Most organisations are cognisant
hundreds of millions of individuals around the world. While the

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Date of Publication: March 30, 2019 | Volume 7, Issue 1 | Pages: 1-9

of this requirement and invest effort and other resources in training level management were already prepared for the informed visit for
and development. Such investment can take the form of employing questionnaire filling purpose. However, there were some respondents
specialist training and development staff and paying salaries to staff notably middle level managers who preferred an online response of
undergoing training and development. Investment in training and the questionnaire (via email).
development entails obtaining and maintaining space and  Instrumentation to measure the Training and development
equipment. impact on employee performance, the questionnaire was
It also means that operational personnel, employed in the used based on questionnaires used by Masood (2010).
organisation's main business functions, such as production, The survey questionnaire was consisting of 5 likert scale. The Five
maintenance, sales, marketing and management support, must also likert scale is as follows
direct their attention and effort from time to time towards • Strongly Disagree • Disagree • Neutral • Agree •
supporting training development and delivery. This means they are Strongly Agree
required to give less attention to activities that are obviously more Questionnaire was consisting of two special sections namely
productive in terms of the organisation's main business. However, section (A) and section (B).
investment in training and development is generally regarded as In Section (A) personal as well as company information based on
good management practice to maintain appropriate expertise now nominal and ordinal scaling was used.
and in the future. On the other hand, section (B) comprises of the closed ended
questions
░ 3. Main Research Objectives and Methodology  Regarding Training and development and employee based
This chapter explains the design adopted to accomplish on 5 likert scale. A cover letter has also been designed that
the study including study model, variables tested for hypothesis, illustrates the purpose, objective and scope of the research in
hypothesis, population, sample size, and data collection methods. order to assure the respondents regarding secrecy and
This research has examined the influence of training privacy of the information they provide. The questionnaire
and development on employee performance in context of nestle was handed out to employees of different chains of food
company ltd. processing company. To form and analyze the relationship
The data has been collected from different chains of between training and development and employee
food processing company. The data collected from the performance, several research papers, books and research
questionnaires has been tested in online. To form a relationship thesis have been studied.
between the variables, regression and correlation has been tested. Hypothesis:
That illustrates the dependency of training and development on  Training & Development positively affects Perceived
employee performance as well as the extent of dependency. Employee Performance.
 Training & Development negatively affects Perceived
Study Design In this research, the primary data has been collected Employee Performance.
on independent variable (Training and Development) and
dependent variable (Employee Performances). The data was The Research Sample: Sample structure by age in the organization:
collected from workers and employees of several food processing
company via questionnaire.. The employees, workers and middle

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development and emphasizes individual responsibility, strong

AGE BET(24-
26) leadership and a commitment to life-long learning as required

BET(27- characteristics for Nestlé managers.

29)
BET(29- Training Programs at Nestlé
31)
The willingness to learn is therefore an essential condition

GEND to be employed by Nestlé. First and foremost, training is done on-the-

GENDER
ER, job. Guiding and coaching is part of the responsibility of each
MA…
MALE manager and is crucial to make each one progress in his/her position.
FEMALE Formal training programs are generally purpose-oriented and
GEND
ER, designed to improve relevant skills and competencies. Therefore they
FE…
are proposed in the framework of individual development programs
and not as a reward.
Fig.1. Sample structure by sex in the organization

Literacy Training
░ 4. HRM Training and Development In Nestle Most of Nestlé’s people development programs assume a good basic
Company education on the part of employees. However, in a number of
Introduction countries, we have decided to offer employees the opportunity to
Nestlé is today the world’s leading food company, with a 135-year upgrade their essential literacy skills. A number of Nestlé companies
history and operations in virtually every country in the world. have therefore set up special programs for those who, for one reason
Nestlé’s principal assets are not office buildings, factories, or even or another, missed a large part of their elementary schooling
brands. Rather, it is the fact that they are a global organization These programs are especially important as they introduce
comprised of many nationalities, religions, and ethnic backgrounds increasingly sophisticated production techniques into each country
all working together in one single unifying corporate culture. where they operate. As the level of technology in Nestlé factories has
Culture at Nestlé and Human Resources Policy steadily risen, the need for training has increased at all levels. Much
Nestlé culture unifies people on all continents. The most important of this is on-the-job training to develop the specific skills to operate
parts of Nestlé’s business strategy and culture are the development more advanced equipment. But it’s not only new technical abilities
of human capacity in each country where they operate. Learning is that are required. It’s sometimes new working practices. For example,
an integral part of Nestlé’s culture. This is firmly stated in The more flexibility and more independence among work teams are
Nestlé Human Resources Policy, a totally new policy that sometimes needed if equipment is to operate at maximum efficiency.
encompasses the guidelines that constitute a sound basis for “Sometimes we have debates in class and we are afraid to stand up.
efficient and effective human resource management. People But our facilitators tell us to stand up because one day we might be in
development is the driving force of the policy, which includes clear the parliament!” (Maria Modiba, Production line worker, Babelegi
principles on non-discrimination, the right of collective bargaining factory, Nestlé South Africa).
as well as the strict prohibition of any form of harassment. The
policy deals with recruitment, remuneration and training and Nestlé Apprenticeship Program
Apprenticeship programs have been an essential part of Nestlé

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training where the young trainees spent three days a week at work engineering as well as IT management. The degree to which factories
and two at school. Positive results observed but some of these soon develop “home-grown” specialists varies considerably, reflecting the
ran into a problem. At the end of training, many students were hired availability of trained people on the job market in each country. On-
away by other companies which provided no training of their own. the-job training is also a key element of career development in
“My two elder brothers worked here before me. Like them, for me commercial and administrative positions. Here too, most courses are
the Nestlé Apprenticeship Program in Nigeria will not be the end of delivered in-house by Nestlé trainers but, as the level rises,
my training but it will provide me with the right base for further collaboration with external institutes increases. “As part of the Young
advancement. We should have more apprentices here as we are Managers’ Training Program I was sent to a different part of the
trained so well!” (John Edobor Eghoghon, Apprentice Mechanic, country and began by selling small portions of our Maggi bouillon
Agbara Factory, Nestlé Nigeria) “It’s not only a matter of learning cubes to the street stalls, the ‘sari sari’ stores, in my country.
bakery; we also learn about microbiology, finance, budgeting,
costs, sales, how to treat the customer, and so on. That is the reason Virtually every national Nestlé company organizes management-
I think that this is really something that is going to give meaning to training courses for new employees with High school or university
my life. It will be very useful for everything.” (Jair Andrés Santa, qualifications. But their approaches vary considerably. In Japan, for
Apprentice Baker, La Rosa Factory Dosquebradas, Nestlé example, they consist of a series of short courses typically lasting
Columbia). three days each. Subjects include human assessment skills, leadership
and strategy as well as courses for new supervisors and new key staff.
Local Training In Mexico, Nestlé set up a national training center in 1965. In
Two-thirds of all Nestlé employees work in factories, most of addition to those following regular training programs, some 100
which organize continuous training to meet their specific needs. In people follow programs for young managers there every year. These
addition, a number of Nestlé operating companies run their own are based on a series of modules that allows tailored courses to be
residential training centres. The result is that local training is the offered to each participant. Nestlé Pakistan runs 12-month programs
largest component of Nestlé’s people development activities for management trainees in sales and marketing, finance and human
worldwide and a substantial majority of the company’s 240000 resources, as well as in milk collection and agricultural services.
employees receive training every year. Ensuring appropriate and These involve periods of fieldwork, not only to develop a broad range
continuous training is an official part of every manager’s of skills but also to introduce new employees to company
responsibilities and, in many cases; the manager is personally organization and systems. The scope of local training is expanding.
involved in the teaching. For this reason, part of the training The growing familiarity with information technology has enabled
structure in every company is focused on developing managers’ “distance learning” to become a valuable resource, and many Nestlé
own coaching skills. Additional courses are held outside the factory companies have appointed corporate training assistants in this area. It
when required, generally in connection with the operation of new has the great advantage of allowing students to select courses that
technology. meet their individual needs and do the work at their own pace, at
convenient times. In Singapore, to quote just one example, staff is
The variety of programs is very extensive. given financial help to take evening courses in job-related subjects.
They start with continuation training for ex-apprentices who have Fees and expenses are reimbursed for successfully following courses
the potential to become supervisors or section leaders, and continue leading to a trade certificate, a high school diploma, university
through several levels of technical, electrical and maintenance entrance qualifications, and a bachelor’s degree

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International Training in a fast-changing world. By offering opportunities to develop, they

Nestlé’s success in growing local companies in each country has not only enrich themselves as a company, they also make themselves
been highly influenced by the functioning of its international individually more autonomous, confident, and, in turn, more
Training Centre, located near our company’s corporate employable and open to new positions within the company.
headquarters in Switzerland. For over 30 years, the Rive-Reine Enhancing this virtuous circle is the ultimate goal of their training
International Training Centre has brought together managers from efforts at many different levels through the thousands of training
around the world to learn from senior Nestlé managers and from programs they run each year
each other. Country managers decide who attends which course, ░ 5. Data Analysis and Interpretation
although there is central screening for qualifications, and classes To analyze HR training and development, I turned to the application
are carefully composed to include people with a range of of questionnaires to a sample of 30employees of three organizations
geographic and functional backgrounds. Typically a class contains that research was conducted. Under these questionnaires, the
15–20 nationalities. The Centre delivers some 70 courses, attended following findings were found in the questionnaires individually.
by about 1700 managers each year from over 80 countries. All
course leaders are Nestlé managers with many years of experience Mean values of ages of employees at Nestle Ltd.
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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
with outsiders. It emphasizes industry analysis, often asking: “What
MEAN VALUE 4.61.84.24.54.84.24.24.64.33.54.34.24.73.54.7
would you do if you were a competitor S.D 0.60.90.90.60.40.70.90.60.40.90.70.60.60.60.7
Nestlé’s overarching principle is that each employee should have
the opportunity to develop to the maximum of his or her potential.
Explanations of each question:
Nestlé do this because they believe it pays off in the long run in
1. In this question ,most of the employee encircle the option of
their business results, and that sustainable long-term relationships
strongly agree, because training makes the employee’s
with highly competent people and with the communities where they
performance and org spent money on employee’s training so
operate enhance their ability to make consistent profits. It is
they consider training is a part organizational strategy.
important to give people the opportunities for life-long learning as
at Nestle that all employees are called upon to upgrade their skills

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2. According to employee’s explanation, people prefer on job communications, conflict management, decision making,
training methods because they can learn more compare to leadership, team care.
off job training method. 14. Employees are strongly agreed with present developmental
3. Employee’s agree the induction training, it create a activity, so there not necessary to change.
positive atmosphere, address any new job concerns, 15. It strongly agrees by employees because the activity takes
increasing comfort level and feeling of belonging etc place in different sector in the company so employee relation
4. On job method gives extra coaching, job rotation, job rate is maintained
instructional technique.
5. Most of the employee’s strongly agree with Training helps MEAN VALUE BY AGE
to improve employee relationship, employee get more
employee from different sector of the company.
6. It shows every 3 months conducting training program in
an organization it results in growth of the company as well
as employee upgrading with new technology.
7. Most of the employee strongly agrees with training
increases the motivation level. Training gives whole set of
package like upgrading technology, increase motivation,
under study etc.
8. Training gives more productivity is strongly agree by Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q
employees, because organization plan training for 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
AGE 29-31 5 2 3 5 5 4 4 5 5 4 5 4 5 4 5
employee when employees are not at higher level, which
AGE 27-29 5 2 4 5 5 4 4 5 4 3 4 4 5 4 5
results in more productivity of company. AGE 24-26 5 2 5 4 5 4 5 4 4 3 4 4 5 4 5
9. Most of the employees are strongly agree (satisfied) with
selection of candidates for training. When there is a need
Interpretation
training of employee, training selection occurs based on
The above table shows the mean differences among different age
their performance.
groups working in the company. According to the table we can
10. Employee’s strongly agree with training help to increases
clearly say that there is a minimum difference between the means.
the productivity of both quality and quantity, at the time of
This concludes that the employees in the company are mostly
training employee learn about product quality at all.
satisfied with their Training and Development program in their
11. They agree with it but also they can learn about reduction
organization. There is slight difference of opinion among different
in waste and spoilage, reduction supervisory burden,
age groups
improvement in quality of products, improvement of
production rate, and improvement in method of works.
Mean Values of Gender of Employees
12. It makes group efforts in decision making; individually
they can show their standards of working.
13. Training makes developing team work and a leadership
skill which is strongly agreeable, situation awareness,

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employers to pay attention towards employee’s development through

MEAN VALUE BY GENDER
training in order to keep them motivated. The core purpose of
involvement in training and employee’s motivation is to improve
employee’s performance resulting in enhanced organization’s
Axis Title

performance.
░ References
1. Muhammad zahid iqbal et. al in the year (2011) “an empirical
analysis of the relationship between characteristics and formative
Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 evaluation of training”
FEMALE 4.3 2 3.7 4.6 4.6 4.1 3.7 4.8 4.2 3.8 4.6 3.8 4.6 3.5 4.4 2. Eugen rotarescu in the year (2010) “alternative selection under
MALE 4.7 1.8 4.3 4.4 4.8 4.2 4.4 4.4 4.2 3.4 4.1 4.3 4.7 3.5 4.7
risk conditions in human resources training and development
through the application of the estimated monetary value and
decision tree analysis”.
3. Franco gandolfi in the year (2009) * “training and development in
an era of downsizing”
4. Cary Cherniss. In the year (2010) “process–designed training: a
Interpretation
new approach for helping leaders develop emotional and social
From the above table we can understand that the mean values of competence”
the questions have minimum difference. This shows that there is 5. Biswajeet Pattanayak(1997), “ Human Resource Training - Study
slight difference of opinion between the opinions of the genders in on Training need assessment of Indian Industries”, First Edition
the organization. They all have the same opinion about the training 1998, Published by S.Chand & Company Ltd, pp 51-62.

and development in the company 6. . Ian Beardwell & Len Holden (1994), “ Human Resource
Management”, first edition 1994, published by MacMillan India
Ltd, pp342-344
░ 6. Recommendations and Conclusion
7. Ishwar Dayal (1993), “Designing HRD Systems”,First
Since training and development has imposed positive impact on
Edition,Concept Publishing company, pp 89-90.
employee performance in context of nestle company, it can help 8. K.Aswathappa(2002), “Human Resource and Personnel
create sustainable competitive advantage over other key players. Management”, Third Edition 2002, published by Tata Mcgraw
Food processing company should develop a sound training and Hill, pp 171-199.
development process where the performance of employee is 9. P.Nick Blanchard & James W. Thacker(2004), “ Effective

evaluated through transparent systems. Training must be based on Training”, Second edition 2006, published by Pearson Education.

need based analysis and returns should be collected statistically. It 10. Rathan Reddy (2008), “Effective Human Resourec Training and
Development Strategy”, Third Edition 2008, published by
should be a continuous process.
Himalaya Publising House, PP 166 -252.
This chapter discusses the conclusions drawn from the regression
11. R.P. Singh (2000), “Management of Training Programme”, First
analysis and descriptive statistics. The trends in Human Resource
Edition, 2000, published by Anmol Publication Pvt.Ltd.
Management practices throughout the world are changing 12. Srinivan R.Kandula (2002), “Strategic Human Resource
dynamically. Nowadays, employers are more concerned about Development”, First Edition 2002, published by Printice Hall of
employee’s retention and controlled employees’ turnover than cost India, pp173-327.
cut off. The need of employee’s retention has encouraged the

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13. Ishwar Dayal ( 1989) , “HRD in Indian Organizations: Current

Perspectives and Future Issues”, Vikalpa, Vol. 14, No.4, Oct. .
Dec. 1989.
14. JP Singh (1989), “Choosing Human Resource Development”,
Vikalpa, Vol.14,No.1, January-March 1989, pp-35-41.