It may be stated that it is extremely essential for the growth of an organization to establish an effective Human Resource Management (HRM) as a robust HRM may be considered as the backbone of an organization. Moreover, the HRM of a company has a direct connection with the decision making process of the company which indicates that without an effective HRM a company will not make proper decisions. In this report, the role and function of HRM in Nestle will be discussed in detail.

Brief description about the business of Nestle

HRM plays a crucial role in the growth of Nestle as Nestle is one of the renowned food and beverage making companies in the world. One of the main roles of the HRM of Nestle is to select, hire, retain and attract appropriate employees which helps the company to fulfil the organizational goals of the business (Nestlé. 2021). Furthermore, as per the case study, the company is ranked 72nd in Fortune 500 companies which indicate the positive impact of the HRM in this company. It has been observed that the HRM of Nestle has conducted several tasks such as talent acquisition, job training process, managing performance of employees and many more.

Critical analysis of the situation

It needs to be implied that the STEEPLED framework is extremely essential to analyse the external and internal environment of the company. After analysing the social factor, it may be explained that the HRM of the company has decided to manufacture high quality products which will be extremely essential to satisfy the customer base and that may result in optimum profitability. Moreover, the HRM of an organization may play a crucial role in developing the product as modern HRM may implement a graphic processor system and parallel processing to develop the quality of the product (Malik et al., 2019). Additionally, the HRM of the company also focuses on using updated technology which is impactful to operate the digital service and reduce cyber-attacks. On the other hand, trade wars also create a poor impact on the growth of the business while due to trade wars the process of the raw material has increased.

Figure 1: Domestic sales quantity of Nestle

After analyzing the environmental impact it is required to be argued that the HRM of Nestle is also focused on reducing the emission of greenhouse gasses and half of the electricity source of the company has produced from renewable electricity (Refer to Appendix-1). Additionally, the HRM activities of the company have played an essential role in enhancing the domestic sales quantity of the company (Nestlé. 2021). One of the main roles of the HRM of the company is to analyse the current political changes which may affect the decision making process of the company. Moreover, the company has faced several ethical issues over the years such as financing issues, animal testing issues and many more, while these issues need to be resolve through an effective HRM strategy. In addition to that, the brand has also faced some legal issues as the company is unable to safeguard the innovative designs of the company which may affect the brand value.

Discussion of potential solution

The HRM of Nestle follows Corporate Social responsibility and the HRM of the company also made a commitment to reduce the environmental and social impact through providing climate change leadership. On the contrary, the HRM of the company is focused on reducing plastic usage and the main motive of the company is to use recyclable plastics in the production unit as the company successfully reduced the usage of running water by 32% (Nestlé. 2021). In addition to that, a culture and crisis communication has been observed in Nestle which may create a poor impact on the financial condition and brand name of the company (Dhanesh and Sriramesh, 2018). Moreover, it is the diary of the HRM of the company to establish crisis management which will help to reduce the bad impact and increases the market share of these issues from the stakeholders and shareholders of the company (Nestlé. 2021).

Figure 2: Market share of Nestle in 2020, by product

Along with that, Brexit also impacted the performance and productivity of the company even though the relocation operation and testing purposes of the company have been hampered due to Brexit. Moreover, the company has also observed several legal issues such as trademarks issues to design KitKat bars as if the company will be unable to solve these legal problems then it may harm the brand value and image of the company. The HRM of the company requires to implement effective strategies which may be impactful to resolve these ethical and legal issues. In the modern era, the HRM of the company requires taking strategic steps which is extremely essential for better planning and organizing the work as it helps to enhance the competitive advantage of the organization (Akter, 2021). Furthermore, the company requires to improve the performance of employees through executing effective performance management and it is also useful to produce supreme quality products.


It has been observed that the company has faced several financial, legal and ethical problems while Nestle needs to implement an effective HRM which will be extremely impactful to resolve these problems in a professional manner. Moreover, one of the biggest benefits of effective HRM is that it helps to make faster decisions which ensure the better performance growth of the company. The global political condition is changing rapidly as Brexit has poorly impacted the entire operation of the company while the execution of HRM may help to take proper steps according to the global political condition. The section procedure of the HRM of Nestle may play a vital role as it will help to retain and hire skilful employees which will help produce high quality products. One of the main roles of Nestle HRM is to motivate and encourage the employees which is extremely essential to enhance the work effectiveness of employees ( 2021). The tracing and learning process of the company is extremely suitable to identify the weakness and strengths of the company as it assures the production of high quality production. The HRM of Nestle is also focused on executing technological advances in the company while without power technology the speed of the production will not be increased.


From the above discussion, it should be concluded that the company has faced several issues and challenges while if the company is able to establish an effective HRM the issues have been solved which also enhances the brand value and image.


The recommendations are as follows:-

  1. It should be recommended that the HRM of Nestle needs to implement effective HRM strategies to improve the decision making process
  2. The HRM of the company is required forces to develop the quality of product to gain more comparative advantage
  3. It should be recommended that the company needs to give more focus on talent acquisition and training process for better performance and production


Akter, S., 2021. Companies’ vision, mission, and core values focus on human resource management. International Journal of Financial, Accounting, and Management, 2(4), pp.343-355.

Dhanesh, G.S. and Sriramesh, K., 2018. Culture and crisis communication: Nestle India’s Maggi noodles case. Journal of International Management, 24(3), pp.204-214. 2021. [online] Available at: <> [Accessed 17 September 2021].

Malik, A., Pereira, V. and Tarba, S., 2019. The role of HRM practices in product development: Contextual ambidexterity in a US MNC’s subsidiary in India. The International Journal of Human Resource Management, 30(4), pp.536-564.

Nestlé. 2021. Human Resources Management. [online] Available at: <> [Accessed 17 September 2021].


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