Talent Management in Nestle Company - Case Study Example

TALENT MANAGEMENT Introduction In the modern business surface, companies and organizations face an increased global competition and as a result the unforeseen events connected with the shifting markets. As another consequence of such changes is the difficulty to attract, develop and retain the skilled workers within certain organization (Patil & Bhakkad, 2014). For that purpose, a wide range of organizations have adopted the talent management approach as a conscious and deliberate way in attracting, developing and retaining the workforce with the aptitude and those abilities an organization needs and in order to meet the current and future business goals. While the talent management initiatives involve the engagement between the business and those who will contribute the accomplishments of organizational goals, it also involves the individual and organizational development in response to the rapid changing and complex operating environment. Oakes and Galagan (2011), consider that it is the critical for business to get the right people with the right abilities and skills into the right job and talent management if the foundation of management people in any organization. In the following paper, the concept of talent management will be reviewed and factors that influence the approaches of talent management will be highlighted. Using an example of Nestle performance, the approach to talent management will be evaluated. Approaches to talent management An employee as an individual is a talent for an organization in the subject approach of talent management (Buttiens & Hondeghem, 2012). This approach can be inclusive and exclusive, depending on whether it makes no difference between the groups of employees or stresses the specific segment of the employees. As an example of exclusive subject approach the HR policies with the specific programs and actions are considered as those needed for the concrete group of employees. What is also important it is that within organization, these concrete employees constitute the high performance or high potentials of a business and are considered as talents. Lewis and Heckman (2006), consider that the problem of ensuring the proper flow of talents for optimization of human resources is among the major topics of interest to researchers and it involves the designing of organizational staffing and career flows. This issue can be explained by the absence of employees that are not considered as talents to be included into the talent management practices. Organizations are striving to contribute more into the high performers and hire such people for their every position. However, being as historically main approach of talent management, the exclusive approach was important in the context of leadership development where an organization selected an individual to be special and exclusionary practices applied within the workforce. Swailes and Downs (2014), state that it is up to the inclusive approach to view all employees as talents and they should be given sufficient training and development. In such case, employees would obtain the full extent of work-related capabilities. The necessity of more inclusive approach is in the ability of talent management to obtain a competitive necessity. In addition, such approach recognizes various main positions to fill in the organization and necessary for its future development. Armstrong and Taylor (2014), consider the exclusive talents are the key people of high performance and in the right positions, however, inclusive people within an organization are those that are seen as potentially talented and their necessity cannot be underestimated. In the context of modern highly managed and fast track environment, most organizations consider employees should be self-developed in order to affect the majority of workforce. Consequently, companies adopt hybrid approaches in managing people. Thus, wider employees are engaged in the HR policies, they are supported by the succession planning and are offered the key roles. An inclusive approach encourages the development of the diverse workforce, which also creates more opportunities to the benefit of all the talents in the workforce. An exclusive approach provides strategic resource for succession planning and is the perfect approach for financial and non-financial resources targets. In addition, it is easier to the organization to track and evaluate the benefits and the return of the investment if the exclusive approach is utilized (Talent and Talent Management Insights, 2014). Whether it is extremely important for each organization to understand what rules employees in achieving business goals, certain factors influence the adoption of exclusive and inclusive approaches within certain organization. Thus, organization culture is relevant in increasing the talent management and impacts positively to the talent of employees. Another driving force for managing talents is the employees’ reward system that facilitates the talent development. Organizations will to adopt the hybrid approach to talent management since there is always a perspective to career development of the workforce. In addition, work place environment is also defined as one of the predispositions for talent management as it promotes people’s talents (Armstrong & Taylor, 2014). Approach to talent management taken by Nestle Operating in more than one hundred and ninety countries worldwide, Nestle, a Swiss multinational company which produces food and beverages, employs thirty thousand people. The company’s commitment to the development of its people has greatly increased its ability to set its operations and attract and retain talents (Castellano, 2013). However, within an increasingly diverse business environment, it should take appropriate moves for engaging its employees for the purpose of organizational success. Thus, according to Storey (2010), the company encourages it people to take more active role in the developing of their careers, by which the company will observe the most involved employees and select the most talented. There is, however, a challenge for such degree of loyalty, as by bringing the employment relationship up to date, the company predicts failures for those employees who to some extent are not engaged into the company’s activities. It is also important for the company that its managers and employees understood the strategy for career development and the processes that support them. So far the company advises its employees to think about the career development and skills, and offers several actions for development. One of such initiatives is Progress and Development Guide (PDG), which is called to perform to a constant high level and maintain individual’s personal development and career plan (Storey, 2010). However, there are certain omissions within such system. Whether the HR specialists are not taught to properly analyze an employee’s expectations and an individual is not assessed within certain time, the result of PDG program is not efficient and can cause employee’s dissatisfaction and reducing of the level of company’s commitment due to the thought that the company is not thinking about one. Such inactivity of HR specialists can lead to the employee’s willingness to leave the company. Within the global market, there is also a dilemma for Nestle to consider it as the provider of global career. There is no clear definition about what the global career is (Dickman & Baruch, 2011). While Nestle positions itself as the global company, less than five percent of employees remain within the headquarter. In terms of talent management, the company completes its global human talent, however, facing challenges regarding looking for expatriates, who manage operations across the world. However, in managing its talents, the company does not take into account all levels of employees and provides opportunity of global career development to mostly senior staff with less attention to other employees. According to Nestle Management leadership principles (2015), the company is building and sustaining the working environment where people are provided with the sense of personal commitment to their work, which at the same time, gives the company success. It also cares about the development of leader of tomorrow by means of allowing the progress in their work and expansion of their capabilities. It also understands the importance of the constant learning and improvement and share of knowledge. It provides employees with the accurate feedback through performance evaluation forms. However, in terms of talent management, the company uses more exclusive approach, by which it recognizes the concrete segment of employees, such as senior staff, that are able to achieve leadership development and gain more than others within an organization. Thus, the company keeps its organizational running through the larger portion of the workforce that has technical skills and capabilities. Other part of employees is the high potential pool, which comprises of staff who will become the high performers and senior managers in the future. Moreover, at the beginning of recruitment process, the company follows the strategy that is designed specific to fill the difficult-to-fill roles. Consequently, employees that will be selected for further accomplishments are unique from the very start. Such exclusive approach in selecting candidates is beneficial for business, however, does not give people who would want to contribute the company and develop within its policies to join the team. Conclusion and recommendations Perspectives for managers (2008), pointed the specific moves of Nestle in its striving to align its employees with the organizational goals. The company has identified significant problems with the hierarchical model and designed the “Nestle on the move”. It has implemented the flexible structure, inspired management, launched the Nestle Leadership Program and developed People Initiative. Despite these achievements, the company should also pay attention that due to the exclusive approach may not serve employees well, Nestle should make appropriate actions as to the balancing the talent management. Kehinde (2012), states that the main focus of an organization should be paid to the selection of the appropriate talent management tools, ensuring training for all employees and reducing of staff turnover. As a type of investment, training and development of all employees is essential for such global companies as Nestle. Talent management scheme should be appropriate for all levels of employees equally and there should be no separation between the potential high performers and those employees whose activities should be improved. Instead, appropriate training sessions and work shadowing is necessary for all staff. Since talent pipeline is the biggest challenges that companies face nowadays, organizations should be able to adjust their operations and management approaches to the shifting demographics and workforce needs. While organizations continue to use the HR management systems that align with the cultures and strategic goals, talent management should become the main theme for businesses as it drives companies’ success and ensures business consistency. This can be achieved if the right mindset will be established and a powerful value of employee will be crafted. This will allow organizations to develop and retain employees and thus achieve a strength within the business environment. References Armstrong, M. and Taylor, S., (2014). Armstrongs Handbook of Human Resource Management Practice, Kogan Page Publishers Buttiens, D. and Hondeghem, A., (2012). Talent Management in the Flemish Public Sector   Positioning the Talent Management approach of the Flemish Government, European Group of Public Administration, Retrieved from http://soc.kuleuven.be/io/pubpdf/Buttiens_2012_EGPA_TalentManagement.pdf Castellano, W., (2013). Practices for engaging the 21st century workforce, FT Press Dickman, M. and Baruch, Y., (2011). Global careers, Routledge Kehinde, J., (2012). Talent Management: Effect on Organizational Performance, Journal of Management Research, Vol. 4, No. 2, Retrieved from http://macrothink.org/journal/index.php/jmr/article/viewFile/937/1286 Lewis, R. and Heckman, R., (2006). Talent management: a critical review, Human Resource Management Review, 16, 139-154, Retrieved from http://www.irproje.com/media/userfiles/610013.pdf Nestle Management leadership principles, (2015). Official website for Nestle, Retrieved from http://www.nestle.com/asset-library/documents/library/documents/people/management-leadership-principles-en.pdf Oakes, K. and Galagan, P., (2011). The Executive Guide to Integrated Talent Management, American Society for Training and Development Patil, D. and Bhakkad, D., (2014). Redefining Management Practices and Marketing in Modern Age, Athrav Publications Perspectives for managers, (2008). IMD Business School, Retrieved from https://www.imd.org/research/publications/upload/PFM156-LR_Broeckx-Hooijberg.pdfStorey, J., (2010). Leadership in Organizations: Current Issues and Key Trends, Routledge Swailes, S. and Downs, Y., (2014). Inclusive talent management: model building and theoretical underpinning, HRD Conference, Edinburgh Napier University Talent and Talent Management Insights, (2014). NHS Leadership Academy, Retrieved from http://www.leadershipacademy.nhs.uk/wp-content/uploads/2014/07/Insight-1-Defining-Talent-and-Talent-Management.pdf Read More