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Submitted by: Submitted to: For Jain Group Shubhagni Rathore Poonam Gupta-12609190(A) Kunal Singh-12609191(R) Tanika Gupta-12609192(D)

ARDM model

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Page 1: ARDM model

Submitted by: Submitted to:

For Jain Group Shubhagni RathorePoonam Gupta-12609190(A)Kunal Singh-12609191(R)Tanika Gupta-12609192(D)Palak goel-12609193(M)

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A.R.D.M MODEL

JAIN GROUP OF INDUSTRIES

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INTRODUCTIONMr. Manoj Kumar Jain is the founder of "Jain Group.

The Jain Group of Industries is a customer focused Group, driven by technology, with a clear vision to

become a dominant player in the verticals of Infrastructure, Steel, Power and Real Estate.

The concept of firming up banner of “Jain Group” as a business conglomerate to reckon and a common

identification vanguard had emerged.

Thus, final change of name took place in 2006 from “Bengal Infrastructure Limited” to “Jain

Infraprojects Limited”, which stands out to be Flagship Company of the group and is a dominant road

builder in Eastern part of the country with massive business expansion plan. Pursuant to the change of

identity all present and future companies, be it public or private company will be incorporate with Jain as

the prefix. Thereafter, the four main companies of the group are henceforth identified as under:

Jain Infraprojects Limited

Jain Steel and Power Projects Limited

Jain Energy Projects Limited

Jain Realty Projects Limited

Jain Group is a comparatively new corporate entity without any legacy, stain or identity crisis. It is a

modern group with only few years of operation and that too in areas of high public exposure

[road/bridges construction] in the eastern region. The group is very opportunely placed and positioned

to take advantage of this public exposure and build a Corporate Image through exploitation of an

appropriate media mix

Core objective of the group is to be a dominant player in the infrastructure industry that extends to realty

sector and consequential or obligatory involvement in hospitality and facility management. Initial thrust

of the group was in road construction which is still the major revenue earner of the group. In the road

construction contracts get mainly executed through Jain Infraprojects Limited [JIL].

A continuous quest for quality has helped it build an enviable reputation of a company which delivers

every time. The group's businesses are supported by a nimble marketing and distribution network which

keeps it close to its clients. A strong customer support enablement demonstrates long term commitment

and responsibility. The Jain Group believes in growth through innovation, maintaining the highest

standards of business ethics and social responsibility.

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ACQUIRING

CORPORATE HR POLICY

The Recruitment Policy at Jain Group aims at enriching its talent pool by acquiring skills and functional

expertise that strengthen its goal to become a Leader in its chosen verticals on the pivots of a set of

committed, motivated and empowered employees.

OBJECTIVE

The objective of the Recruitment Policy is to source the best talent from Internal and External resources

to achieve the Business Objectives and Goals of the Company.

INTERNAL RECRUITMENTS

SCOPE

New vacancy

Replacement

Demobilization / transfer

RESPONSIBILITY

Requirement identification – SBU head/Operational Head/Project Head

Demobilization /Transfer plan – Concerned SBU head/Oprs. Head/Project head / Corporate HR

New vacancy approval – Corporate HR -> VCMD/CMD

Identification of Interviewer – Corporate HR.

Other Activities in the process – Corporate HR /Site HR

KEY POLICY-CLAUSE

Internal vacancies shall be posted on MS Outlook and displayed on the Notice Boards.

Eligible employees may apply for any vacancy.

All applications shall be sent through “CORPORATE HR HELP DESK”e-mail at

([email protected])

Databank of potential candidates’ profiles shall be scanned, and Corporate HR will hand over these

to the concerned Site HR/Ops. Head.

In case of non-availability of suitable internal candidate(s), external sources shall be approached.

The process of selection shall include (i) Panel interview (ii) competency matching and (iii) a skill

test shall be administered.

The decision of the panel shall be binding and final.

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EXTERNAL RECRUITMENTS

OBJECTIVE

To garner a proper blend of Skill & Knowledge and to ensure that balance is maintained in terms of the

Age-mix, the Qualification-mix & the Skill-mix.

SCOPE

Final year students from the top 50 Engineering & Management Institutions scoring CGP of 6.5 or above.

RESPONSIBILITY

Requirement identification SBU head/Operational Head/Project Head

Vacancy approval Corporate HR -> VCMD / CMD

Selection of Institutions Corporate HR

Selection of Panel Concerned HOD /Corporate HR

Selection method Written test -> GD -> PI

KEY POLICY-CLAUSE

The Campus Visit(s) for recruitment shall be done in November-December each year.

Corporate HR will initiate the Campus Recruitment with a Corporate Profile presentation followed

by other selection process.

Letter indicating the names of short listed candidates shall be handed over to the institution on

the spot or a day after selection.

The absorption of the GET, MT and DET shall take place only on successful completion of their

final semester examination and strictly in accordance to company’s policy.

GET, MT and DET shall undergo a training period of ONE YEAR and on successful completion of

the training period, they shall be absorbed in regular grades and the management will be within

their rights to regularize such trainee without making it compulsory regularization.

LETTER OF INTENT(LOI)

SCOPE

All candidates selected for employment with Jain Group.

RESPONSIBILITY

Corporate HR.

KEY POLICY-CLAUSE

Only Candidates who qualify for the Final Stage of selection shall be issued Letter of Intent (LOI)

Corporate HR shall have a duplicate copy of the LOI duly signed by the candidate in acceptance of

offer.

Offer shall be VALID FOR A PERIOD AS STIPULATED.

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REWARDING

OBJECTIVEA rewards and recognition policy is designed to encourage employees to make a performance difference

either individually or through teams.

This is done to recognize positive behaviors that support individual or team goals and objectives, timely

recognition to employees, to improve employee productivity & quality of work, improve customer

service.

This can be enjoyed by all the employees of the enterprise.

AWARD AMOUNT

KEY POLICY-CLAUSE

The policy recognizes achievements or accomplishments that contribute to the overall objectives

of the organization.

Awards are provided in both monetary & non-monetary terms. Total of monetary and non-

monetary awards shall not exceed Rs. 5,000.00 per employee per fiscal year.

TYPES OF AWARDS

A MONETARY AWARDS

Monetary awards shall include:

Those paid by cash, items which can be easily converted into cash(such as gift certificates,SB,etc)

NON–MONETARY AWARDS

Non-monetary recognition awards include:

Non-refundable gift certificates, meals & trips, Trophies, certificates, merchandise, etc.

TYPES OF EMPLOYEE RECOGNITION

To insure both fair and consistent application of recognition, a core set of rewards and recognition

programs have been developed.

Additional recognition programs may be added as deemed appropriate.

PLANNED EMPLOYEE RECOGNITION

This approach is characterized by pre-arranged, more frequently scheduled ways of acknowledging

contributions and accomplishments of an individual or team. It is less formal and provides more frequent

opportunities to recognize employees.

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Examples:

i. Employee of the month award

ii. Safety award

iii. Customer service award

iv. Public service award

v. Productivity award

vi. Outstanding achievements award

IMMEDIATE EMPLOYEE RECOGNITION

This approach provides employee rewards and recognition at any time for demonstration of behaviors

and values of the organization, contributions to the goals and objectives of the organization or work unit

and to acknowledge individual or team accomplishments.

Examples:

i. Teamwork award

ii. Project Completion award

iii. New or modified business practices award

iv. Exemplary effort award

v. Employee appreciation award

LEVELS OF EMPLOYEE REWARDS & RECOGNITION

There are three basis levels of employee rewards & recognition. These are based on the performance of

the employees and the contribution given by them which proved beneficial to the enterprise.

LEVEL - ONE

To appreciate the performance of the employee for the first time.

Up to 500 cash/non-cash

LEVEL - TWO

To appreciate and encourage the continuous good performance of an employee.

Up to 3000 cash/non-cash.

LEVEL - THREE

To appreciate an employee for performance given in extraordinary situations which might rarely

reappear.

Industrial Tour with spouse.

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DEVELOPING

GRADUATE ENGINEER TRAINEES & MANAGEMENT TRAINEES

TRAINING SCHEME (NGTS-Next Generation Training Scheme)

OBJECTIVE

NGTS have been formulated with a view to ensure full utilization of the inherent skills of the new

entrants and provide them with comprehensive foundations needed for successful performance in the

first job and in subsequent career progression.

GROWTH PATTERN & COMMON POLICY CLAUSE

a) Adequate emphasis shall be given on developing the essential knowledge and required to perform

as a Front Line Manager, i.e.

Knowledge in terms of:

o Process Parameters

o Setting and Maintaining Standards

o Man Management

o Line and Function Relationships

Skills in terms of:

o Investigation and Analysis

o Problem Solving and Decision-Making

o Preparing and Presenting a Case

o Presentation & Report Writing

b) The company has a system of Project Based Training (PBT) as a part of NGTS wherein each

trainee is assigned a number of projects his/her core area of education as well as from other

functions. Hands-On Training is also included in the curriculum with a view to strengthen

technical base of the Trainees.

c) Induction of Graduate Engineer Trainees (GET) & Management Trainees (MT) in company shall be

done each year on the basis of requirement.

d) They shall be trained within the company for a period of one year and the training shall include

the subsections (INDUCTION & ON JOB TRAINING).

e) The trainees shall be absorbed into regular grades based upon the Project presentations, personal

interviews (by a panel comprising of Departmental Representative, Training Manager & HR

representative) and assessment by the Project based Mentor.

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f) Trainees shall be absorbed into regular grades as under.

QUALIFICATION GRADE

CA / CS / ICWA / ME / M Tech S - 2

BE / B Tech /MBA S -1

BE + MBA / MBA / MCA S -2

INDUCTION

KEY POLICY-CLAUSE

The Trainees shall undergo the Induction training during the first week wherein they shall be

given inputs about the group companies and orientation of various functions in respective place of

posting.

Second phase of training is departmental induction and lasts for one to two months as required.

The Trainees shall undergo departmental orientation wherein they shall be associated with

different departments on a rotational basis.

They shall be associated with a mentor and are required to undertake an in-depth study of the

departments.

The trainees shall also undergo critical equipment training. Industrial tour to other companies is a

part of this module (if required).

Assessment of performance shall be done through project reports, presentations, report by the

mentor & performance in tests.

ON-THE –JOB TRAINING

KEY POLICY-CLAUSE

This shall form the third phase of NGTS and shall last for the balance six months of the training

period.

The trainees shall be allocated departments based on the generic branch of their study,

performance in the tests & counseling interview.

They shall then undertake project-based hands—on training in the respective department.

COMPETENCY & SKILL DEVELOPMENT

OBJECTIVE

The basic objective of competency and skill development is to ensure continuous development of skills

and competencies of employees.

SCOPE

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All regular employees including trainees.

INDENTIFICATION OF TRAINING NEEDS

KEY POLICY-CLAUSE

Training needs are identified on an annual basis.

For the employees in grades O - 2 & above, training needs are derived from the performance

management system and assessment of Competencies through the Assessment Centre.

For the Operation, Maintenance & Support Services Staff (O-1 & below Grades) the needs are

projected by the Supervisors/ Controlling Officers through the Annual Appraisals.

Assessments of Skills are also done annually to ascertain the skill gaps.

Over and above that there are organizational interventions like Multi-skill wherein the Supervisor

identifies the skills that need to be learnt by the employee in order to form multi-functional

workgroups.

The company also has organizational initiatives wherein the target population is identified for the

purpose of each initiative and the same is included in their training need.

ASSIMILATION OF TRAINING NEEDS & DRAFTING THE ANNUAL TRAINING PLAN

KEY POLICY-CLAUSE

Projected needs are assimilated and groups are formed on the basis of level, function, skill /

competency, initiative, etc. and an annual training plan is drawn accordingly.

This plan contains the dates for each program, venue, target population, number of participants

per program, Training Hours per program, Faculty for the program, etc. (Training Calendar)

CONDUCTING TRAINING PROGRAM

KEY POLICY-CLAUSE

Faculty is identified for each program from Internal Sources, External Sources or Experts in

respective fields.

Employees are nominated for program / seminars/ workshops/ visits conducted by leading

institutions or professional bodies.

Study of effectiveness of training is done every 3 months wherein the trained personnel as well as

the respective supervisor respond about the benefits accrued out of the training in terms of skill/

competency up gradation and the resultant tangible/ intangible benefits.

Skill / Competency assessment is also done to measure the effectiveness of training imparted.

Retraining is imparted to an employee if after assessment it is found that his/her skill or

competency level has not improved to the benchmarked standards.

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MAINTAINING

Human resources are very important for an organization. So while acquiring, rewarding and maintaining

them, HR department should also take care of their maintenance and protection. The survival of human

resource is must for any organization. If this is not maintained the organization has to bear huge losses.

So the Jain Group of Industries had maintained various policies because of which one employee does not

leave his/her job. They are discussed below:

OBJECTIVE

Facilitate people to build a congenial working environment, strive for continuous improvement in

upgrading the competencies of employees through focused initiatives and facilitate people towards a

multi skilled and multi-tasking approach.

EMPLOYEE ENGAGEMENT

Ensuring fair Recruitment, enhanced Performance, Promotions, and improved Quality of Life for

employees and their family members.

Ensuring care for each other, Transparency & Trust with focus on institutionalizing the collective

Initiatives of all.

Ensuring Job Rotation, Job Enrichment, Training and Re-training, Career & Succession Planning,

across the hierarchy.

Enabling each employee to develop to his or her full potential with a shared sense of direction

with a well-defined accountability and responsibility.

Enabling each employee to evolve into self-starter Team Leader and meet the fast changing

business environment and maintain a competitive edge

Provide residential accommodation to the regular Employees.

GM & above are eligible for mobile connection, while for others, this shall be need based with due

approval of respective HOD.

Provide better Health & Quality of Life to individuals working with the Company and their immediate

family members.

MEDICAL FACILITY: All Employees, Trainees and Contract persons working at Project site who come

across any minor or major Injury on Work.

PROMOTION: To integrate growth opportunities, motivate employees for better performance and

ensure continuity in managerial positions.

LOAN & ADVANCE POLICY: To impart welfare through providing financial assistance to the employees.

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SUGGESTION SCHEME (STAR IDEAS):

To provide innovative thinking for work life improvement

To encourage and recognize employee creativity

To provide scope to participate in the development and growth of company.

Through this policy the innovative and creative skills of the employees will be recognized on a

daily basis.

A special certificate will be awarded to the employees whose suggestions and recommendations

make significant difference on the various areas.

DISCRIMINATION &HARASSMENT POLICY

The company shall be committed to providing and maintaining an open, positive work environment,

which is free from any discrimination or harassment.

a. All employees must be treated with respect, dignity, and courtesy.

b. There shall be no discrimination or harassment against any person on the grounds of race, color,

religion, national origin, disability, age, sex, marital status, sexual orientation or citizenship.

c. Any discriminatory action against full time employees, contractual employees, clients, or vendors

shall be met with disciplinary action.

d. Every complaint shall be promptly and thoroughly investigated and confidentiality is maintained

as far as the situation would permits.

MAINTENANCE OF POSITIVE DISCIPLINE IN THE COMPANY: To establish a transparent system for

maintaining positive conduct &discipline amongst the employees in the Company following the Principles

ofNatural Justice

OFFICE INFRASTRUCTURE: The objective of Office Infrastructure Policy is to provide ergonomic

infrastructure facilities so that the desired output can be obtained.

SAFETY: The objective of Safety Policy is to promote safety and better working culture& conditions and

to make “Safety a way of life in the organization”.

COMMUNICATION: In case employees have any queries or doubts on a matter they intend tocirculate or

post, they are advised to discuss the same with the Corporate Communication at HO.

HIV AIDS Policy for Industry: To build positive and supportive attitudes towards those infected and

promote health and safety amongst the employees.

a. The company will provide a safe and healthy work environment for employees.

b. The company will educate its employees and the family on prevention, care and counseling of HIV

/ AIDS.

c. The company will educate its employees on safe blood, blood donation and transfusion.

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Nestle

Nestlé's relationship with India dates back to 1912, when it began trading as The Nestlé Anglo-Swiss

Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market.

After India's independence in 1947, the economic policies of the Indian Government emphasized the

need for local production. Nestlé responded to India's aspirations by forming a company in India and set

up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestlé to develop the milk

economy. Progress in Moga required the introduction of Nestlé's Agricultural Services to educate advice

and help the farmer in a variety of aspects. From increasing the milk yield of their cows through

improved dairy farming methods, to irrigation, scientific crop management practices and helping with

the procurement of bank loans.

Nestlé set up milk collection centers that would not only ensure prompt collection and pay fair prices, but

also instill amongst the community, a confidence in the dairy business. Progress involved the creation of

prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga

into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well.

Nestlé has been a partner in India's growth for over nine decades now and has built a very special

relationship of trust and commitment with the people of India. The Company's activities in India have

facilitated direct and indirect employment and provides livelihood to about one million people including

farmers, suppliers of packaging materials, services and other goods.

The Company continuously focuses its efforts to better understand the changing lifestyles of India and

anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product

offerings. The culture of innovation and renovation within the Company and access to the Nestlé Group's

proprietary technology/Brands expertise and the extensive centralized Research and Development

facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be

sustained over the long term by offering consumers a wide variety of high quality, safe food products at

affordable prices.

Nestlé India manufactures products of truly international quality under internationally famous brand

names such as NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent

years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk,

NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita.

Nestlé India is a responsible organisation and facilitates initiatives that help to improve the quality of life

in the communities where it operates.

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SWOT ANALYSIS

Highly diversified company with wide business interests

Relationship sharing with India for over 9 decades which adds up to a sense

of loyalty

Not responding effectively to changing market

conditionsEntering into markets

which are already mature

Nestle is entering into markets that are already

matureImmense competition

may dent the image of the company if it does not

fight back

Health based products are becoming more popular in

the worldBeing the market leader ,

it can reap the benifits out of this budding trend

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ACQUIRING

The long-term success of the Company depends on its capacity to attract, retain and develop employees

able to ensure its growth on a continuing basis.

The Nestlé policy is:

To hire staff with personal attitudes and professional skills enabling them to develop a long-term

relationship with the Company.

Each new member joining Nestlé is to become a participant in developing a sustainable quality

culture which implies a commitment to the organization.

Special attention will be paid to the matching between a candidate’s values and the Company culture.

Hence, a clear communication of these principles and values from the very beginning of the recruitment

process is required.

Nestlé wishes to maintain and develop its reputation as an employer of high repute.

Contacts with universities, attendance at recruitment events and other contacts are to be

undertaken so as to ensure good visibility of the Company vis-à-vis relevant recruitment sources.

Particular care will be given to the treatment of each candidate regardless of the outcome of the

selection process.

Even when promoting employees within the organisation, it is the role of management and HR to keep an

eye on valuable candidates from outside and to benchmark internal skills with external offers. Whilst

adequate recruitment tools may improve the hiring process, to hire a candidate remains in the hands of

the responsible manager supported by the HR staff.

Under no circumstances should the decision to hire or not to hire be left in the hands of an outside

consultant or expert.

According to the Nestlé Management and Leadership Principles, only relevant skills and experience

will be considered in employing a person.

No consideration will be given to a candidate’s origin, nationality, religion, race, gender or age.

It is as important to hire the right person as it is to integrate newcomers in the organisation so

that their skills and behavior can merge smoothly with the company culture. Whereas from new

employees it is expected to respect our company’s culture, it is accordingly required from all

employees to show an open mind towards new ideas and proposals coming from outside.

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EMPLOYMENT AT NESTLÉ

The Corporate Business Principles outline The Company’s commitment to fully endorse and to respect a series of principles and

international conventions concerning employee’s rights, the protection of children against child

labor and other important issues. These principles are to be respected everywhere and under all

circumstances. The management will implement the necessary processes to ensure that these

principles are enforced at all levels.

Employees who are not abiding with the Corporate Business Principles and the Nestlé Management

and Leadership Principles cannot be maintained in employment and will be requested to leave the

organisation.

Also our main suppliers and providers of outsourced services should be informed of the

Corporate Business Principles and should comply with those.

Nestlé provides a working environment which protects the health and welfare of the employees

according to the highest affordable standards of safety, hygiene and security. Each employee should not

only care for her/his own safety but also that of her/his colleagues.

Suggestions for improvement are welcome. No discrimination for reason of origin,

nationality, religion, race, gender or age will be tolerated when joining Nestlé; no such

discrimination will be tolerated towards Nestlé’s employees.

Any form of harassment, moral or sexual, will not only be prohibited but actively tracked

and eliminated. Internal rules and regulations will explicitly deal with discrimination and

harassment issues so as to obtain the best possible prevention. Nestlé considers that it is

not enough to avoid discrimination or harassment.

It is essential to build a relationship based on trust and respect of employees at all levels. Therefore, it is

indispensable for each manager to know how her/his employees feel in their work. In larger units it may

be necessary to organize such feedback on a regular basis, using internal surveys or other valuable

approaches.

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REWARDING

Nestlé’s appeal to new and existing people doesn’t just rest on the financial rewards and benefits we

offer. Their name conveys hard-earned value and trust in all their people. They pride themselves on their

strong relationships between line managers and fellow workers. They offer a global, diverse and

enriching environment. And they have countless possibilities to learn and grow.

Naturally, their Total Rewards aren’t standardized around the world. They vary between their Markets,

reflecting differing candidate aspirations and variations in what their employee’s value across the globe.

Their Total Rewards Policy is designed to give both the business and their people a clear understanding

of Total Rewards and the principles behind them.

These guiding principles are:

Provide a globally consistent framework with the flexibility for each Market to create competitive

programmes that comply with local legislation.

Focus on attracting and retaining talented employees, building a high-performance culture and

ensuring a highly engaged workforce that achieves sustainable business results.

Although there are variations between Markets in what employee’s value, there are also some common

elements:

Fixed Pay

Variable Pay

Benefits

Personal Growth & Development

Learning is part of the Company culture. Each employee, at all levels, is conscious of the need to upgrade

continuously her/his knowledge and skills. The willingness to learn is therefore a non-negotiable

condition to be employed by Nestlé. First and foremost, training is done on-the-job. When formal training

programs are organized they should be purpose oriented and designed to improve relevant skills and

competencies. Therefore they are proposed in the framework of individual development programs. As a

consequence, attending a program should never be considered as a reward. 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 staff to assist the management in the

elaboration of training programs.

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At Nestlé we believe that the employee’s private and professional life should have a good balance. Not

only because it reinforces employee’s satisfaction, loyalty and enhances productivity but also because it

positively reflects on the Company’s reputation. It helps attracting and retaining people and reconciles

economical imperatives with well-being. Nestlé is willing to support employees who wish to take an

active part in the life of the community or by assuming responsibilities in professional, civic, cultural,

religious or voluntary organizations it being understood that any activity during working hours be first

approved by the Company. In the same spirit, Nestlé encourages flexible working conditions whenever

possible and encourages its employees to have interests and motivations outside work. We expect all our

people to understand the specific characteristics of Total Rewards and how they are established and

maintained throughout the Group. Our Total Rewards Policy aims to build this knowledge and to explain

how Nestlé is committed to giving each employee the opportunity to grow, evolve and contribute.

Nestlé’s policy is to strive to position it as an employer offering remuneration levels above the average of

the relevant benchmark. Nestlé reviews regularly its competitive position with other companies so as to

keep in line with the market trends. However, the evolution of remuneration is in the first instance

determined by the capacity of the Company to improve its productivity. Wage and salary structures

should be kept simple and avoid unnecessary complexity so as to provide effective compensation and

reward. Remuneration structures should specifically facilitate the implementation of flat organizational

structures and be flexible so as to be able to adapt to the evolution of the market conditions. This means

broad spans allowing sufficient flexibility to effectively reward high professional insight and

performances as well as individual potential.

DEVELOPING

Training programs organized at the International Training Centre Rive-Reine aim at developing and

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sharing best practices of the various management disciplines practiced in the Group. They also strive to

strengthen corporate cohesion as well as to promote networking throughout the Group. Learning is part

of the Company culture. Each employee, at all levels, is conscious of the need to upgrade continuously

her/his knowledge and skills. The willingness to learn is therefore a non-negotiable condition to be

employed by Nestlé. First and foremost, training is done on-the-job. Guiding and coaching is part of the

responsibility of each manager and it is crucial to make each one progress in her/his position. When

formal training programs are organized they should be purpose oriented and designed to improve

relevant skills and competencies. Therefore they are proposed in the framework of individual

development programs. As a consequence, attending a program should never be considered as a reward.

It is necessary to make optimal use of e-learning programs as a complement to or a substitute for formal

training programs. According to needs they should be made available at shop floor level and enlarge the

access to training. It is the role of each manager to assess progress achieved as a result of training

programs.

Each employee is in charge of her/his own professional development. However, the Company endeavors

to offer the opportunity to progress for those having the determination and the potential to develop their

capabilities. The objective is to retain and motivate employees by offering attractive but realistic career

moves allowing them to develop their skills over a long-term period within the framework of economic

reality and a changing environment.

Regular counseling and guidance are the best tools for improving performance and for helping people

develop their skills. It also allows to correct errors swiftly and to transform them into a positive learning

experience. In an organisation with flat structures this supports better delegation. Direct personal

contact should always been given preference over written communication whenever possible.

Efficient performance management emphasizing the achievement of agreed objectives is a prime

responsibility for each manager. The necessary time should be dedicated to the monitoring and the

follow-up of the progressive achievement of objectives during the year. This feedback is meant to

stimulate performance and should take place through an open dialogue based on mutual trust and

willingness to progress. It is requested to provide written evidence of such meetings. Focus should be

essentially on continuous improvement, appropriate training measures but also on shaping a stimulating

working environment.

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In case of serious underperformance, a termination of employment should be envisaged. Such

termination should be handled with due respect of the person and should include, where appropriate,

separation terms that take into account the employee’s personal situation. When assessing potential it

should be kept in mind that the best indicator of talent is achievement. Therefore responsibility should be

given as early as reasonable to allow people to prove them. Candidates for managerial positions should

clearly have demonstrated their willingness and ability to apply the Nestlé Management and

Leadership Principles.

International experience and participation in group development initiatives such as

GLOBE, SMPT and others can be acquired in all countries of the Group and are a requirement for holding

high-level positions. The development of expertise in specific areas of competence is determinant for the

Company’s success. Therefore job rotation should be practiced with caution. Whilst job rotation might be

useful under certain circumstances, it should not result in weakening our expertise in key areas.

MAINTAINING AND PROTECTING

Learning has always been a part of Nestle and that is why all the employees who are interested and show

a sense of willingness are trained on-the-job with the help of proper guidance and coaching. This training

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program helps one improve relevant skills and competencies and is completely purpose oriented and

that is the reason that they are proposed in the framework of individual development program. Sharing

of best management practices of various disciplines helps the company to strengthen the corporate

cohesion. The company also provides e-learning programs which is available at the shop floor level to

enhance their level of training.

Going with the traditions of the company, the company initiates an open dialogue to express the

objectives and expectations of the employees. The main objective is to retain and motivate and develop

their skills over a long-period within the framework of economic reality and changing environment. Co-

responsibility, counseling and guidance provided by the company transform the employee’s attitude into

a positive learning experience. A formal assessment is carried out once a year and this is based on facts

and not opinions. Efficient performance management and monitoring is a must at Nestle for progressive

achievement of objectives during the year. Feedback through open dialogue leads to continuous

improvement. In case of serious under performance, a termination of employment is envisaged.

The best indicator of talent is the potential of one’s that drives him/her to achieve for what they have

come for. For keeping alive the enthusiasm, the company regularly changes the jobs within the

department and also changes the location of various employees. Nestle also focuses on collective

bargaining and helps in maintaining a level of competitiveness. It is prerogative for various stakeholders

to understand the business model and goals of Nestle.