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Literature Review: Nestlé’s Strategic Human Resource Management and Business Strategy
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LITERATURE REVIEW: NESTLÉ’S STRATEGIC HUMAN RESOURCE MANAGEMENT AND BUSINESS STRATEGY
Introduction
Nestlé’s strategic human resource management (SHRM) and innovative business strategies have helped the company establish itself as a global leader in the food and beverage industry. In this literature review, the existing research surrounding Nestlé’s HR practices, corporate culture, and technological integration in workforce management are synthesized. Specifically, this study focuses on Nestlé’s talent acquisition and development policies, HR automation, and leadership approaches, without considering issues associated with product innovation and consumer marketing strategies. This literature also highlights these key themes: Nestlé’s people-focused culture, technology usage in HR functions, and the ever present discussion around its labor policies.
Review and Analysis of Sources
According to Mello (2023), Nestlé’s human resource strategy closely matches its corporate goals, whereby human resource strategy made efforts to retain talents, developing leadership, and sustainable growth of working force. To continue professional growth, Nestlé works with structured career progression models, diversity and inclusion policies and employee training programs. Like Vasantham (2021), Nestlé employs artificial intelligence and data analytics to enhance recruitment, performance evaluations and workforce planning.
While Nestlé has these strengths, the company has also been criticized for its labor practices. Butt (2024) also notes that although Nestlé claims to operate in an ethical manner in regards to labor policies and competitive benefits, there has yet to be a complete breakdown of corporate competition to ensure fair wages and working conditions at least in some operations. Unlike reports on labor disputes and supply chain challenges, the company’s commitment to CSR is often contradictory. For example, Sin et al. (2022) shows how Nestlé’s strategies as an HR policy create employment satisfaction but at the same time pressure employees to continue working hard, thereby leading to stress in the workplace.
Nestlé’s balancing act between workforce well-being and technological advancements is one important element in the literature. Nestlé has automated its human resources, with Vasantham (2021) arguing that while this will increase Nestlé’s efficiency, there are ethical implications relating to job security and human oversight. However, as Butt (2024) states, on the one hand, Nestlé’s competitive compensation, benefits, and career mobility have a positive effect on the overall engagement to meet the objectives. These different perspectives reflect ongoing debates regarding how multinational corporation such as Nestle manage human capital in a continuously changing business environment.
A Critical Evaluation
There is balance to the literature around Nestlé’s HR strategy in that they had innovative workforce initiatives, but they also had issues with maintaining ethical labor practices. Mello (2023) and Vasantham (2021) state that Nestlé has advanced in HRM technologically, while Butt (2024) and Sin et al. (2022) worry about the wellness and workplace stressors of employees. In particular, Nestlé’s labor conditions are critically assessed, which is contrary to the company’s principle of continued learning and involvement of employees, creating a contradiction within Nestlé’s HR strategy. Some applauded Nestlé’s policy in developing talent, others demanded the firm do more research to determine how long when these policies would really keep or make people happy.
A Thematic Organization and Conclusion
Overall, Nestlé’s SHRM strategy is both a competitive advantage and a subject of ethical debate. The focus is on efficiency, but issues with labor still have not been resolved. Automation and the use of AI among the company’s HR tools is in fact very efficient but exposes the company to worrying ethical dilemmas in the area of job security and employee well being. While retaining an edge over competition, Nestlé’s HRM must be able to address these issues.
Future research will examine Nestlé’s long-term workforce policies, specifically, automation, and its effect on job security of employees and employee satisfaction. In addition to that, the studies about the effect of Nestlé’s employee engagement initiatives as well as its retention policies would give the information about the sustainability of the HR model. This will help to broaden the discussion on the changing nature of HRM in multinational corporations.
References
Butt, U. I. (2024). Nestlé’s role in global food security, climate change and consumer health.
International Journal of Social Sciences and English Literature,
8, 7-15.
Mello, J. A. (2023).
Strategic Human Resource Management (6th ed.). Cengage Learning.
Sin, L. G., Rahim, N. F. A., Lin, J. L. J., Sharma, B., Gulati, C., Ghani, H. Z. B. H., … & Mittal, K. (2022). Fostering A Culture of Business Ethics: A Case Study of Nestlé.
Society,
10(2), 723-734.
Vasantham, S. T. (2021). The Role of Artificial Intelligence in Human Resource Management.
Engineering and Scientific International Journal,
8(2), 59-63.
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