training and development case study with solution pdf

MBA Knowledge Base

Business • Management • Technology

Home » Management Case Studies » Case Study of Nestle: Training and Development

Case Study of Nestle: Training and Development

Nestle is world’s leading food company, with a 135-year history and operations in virtually every country in the world. Nestle’s principal assets are not office buildings, factories, or even brands. Rather, it is the fact that they are a global organization comprised of many nationalities, religions, and ethnic backgrounds all working together in one single unifying corporate culture .

Culture at Nestle and Human Resources Policy

Nestle culture unifies people on all continents. The most important parts of Nestle’s business strategy and culture are the development of human capacity in each country where they operate. Learning is an integral part of Nestle’s culture. This is firmly stated in The Nestle Human Resources Policy, a totally new policy that encompasses the guidelines that constitute a sound basis for efficient and effective human resource management . People development is the driving force of the policy, which includes clear principles on non-discrimination, the right of collective bargaining as well as the strict prohibition of any form of harassment. The policy deals with recruitment , remuneration and training and development and emphasizes individual responsibility, strong leadership and a commitment to life-long learning as required characteristics for Nestle managers.

Training Programs at Nestle

The willingness to learn is therefore an essential condition to be employed by Nestle. First and foremost, training is done on-the-job. Guiding and coaching is part of the responsibility of each manager and is crucial to make each one progress in his/her position. Formal training programs are generally purpose-oriented and designed to improve relevant skills and competencies . Therefore they are proposed in the framework of individual development programs and not as a reward.

Literacy Training

Most of Nestle’s people development programs assume a good basic education on the part of employees. However, in a number of countries, we have decided to offer employees the opportunity to upgrade their essential literacy skills. A number of Nestle companies have therefore set up special programs for those who, for one reason or another, missed a large part of their elementary schooling.

These programs are especially important as they introduce increasingly sophisticated production techniques into each country where they operate. As the level of technology in Nestle factories has steadily risen, the need for training has increased at all levels. Much of this is on-the-job training to develop the specific skills to operate more advanced equipment. But it’s not only new technical abilities that are required. It’s sometimes new working practices. For example, more flexibility and more independence among work teams are sometimes needed if equipment is to operate at maximum efficiency .

“Sometimes we have debates in class and we are afraid to stand up. But our facilitators tell us to stand up because one day we might be in the parliament!” (Maria Modiba, Production line worker, Babelegi factory, Nestle South Africa).

Nestle Apprenticeship Program

Apprenticeship programs have been an essential part of Nestle training where the young trainees spent three days a week at work and two at school. Positive results observed but some of these soon ran into a problem. At the end of training, many students were hired away by other companies which provided no training of their own.

“My two elder brothers worked here before me. Like them, for me the Nestle Apprenticeship Program in Nigeria will not be the end of my training but it will provide me with the right base for further advancement. We should have more apprentices here as we are trained so well!” (John Edobor Eghoghon, Apprentice Mechanic, Agbara Factory, Nestle Nigeria) (adsbygoogle = window.adsbygoogle || []).push({}); “It’s not only a matter of learning bakery; we also learn about microbiology, finance, budgeting, costs, sales, how to treat the customer, and so on. That is the reason I think that this is really something that is going to give meaning to my life. It will be very useful for everything.” (Jair Andres Santa, Apprentice Baker, La Rosa Factory Dosquebradas, Nestle Columbia).

Local Training

Two-thirds of all Nestle employees work in factories, most of which organize continuous training to meet their specific needs. In addition, a number of Nestle operating companies run their own residential training centers. The result is that local training is the largest component of Nestle’s people development activities worldwide and a substantial majority of the company’s 240000 employees receive training every year. Ensuring appropriate and continuous training is an official part of every manager’s responsibilities and, in many cases; the manager is personally involved in the teaching. For this reason, part of the training structure in every company is focused on developing managers own coaching skills. Additional courses are held outside the factory when required, generally in connection with the operation of new technology.

The variety of programs is very extensive. They start with continuation training for ex-apprentices who have the potential to become supervisors or section leaders, and continue through several levels of technical, electrical and maintenance engineering as well as IT management. The degree to which factories develop “home-grown” specialists varies considerably, reflecting the availability of trained people on the job market in each country. On-the-job training is also a key element of career development in commercial and administrative positions. Here too, most courses are delivered in-house by Nestle trainers but, as the level rises, collaboration with external institutes increases.

“As part of the Young Managers’ Training Program I was sent to a different part of the country and began by selling small portions of our Maggi bouillon cubes to the street stalls, the ‘sari sari’ stores, in my country. Even though most of my main key accounts are now supermarkets, this early exposure were an invaluable learning experience and will help me all my life.” (Diane Jennifer Zabala, Key Account Specialist, Sales, Nestle Philippines). “Through its education and training program, Nestle manifests its belief that people are the most important asset. In my case, I was fortunate to participate in Nestle’s Young Managers Program at the start of my Nestle career, in 1967. This foundation has sustained me all these years up to my present position of CEO of one of the top 12 Nestle companies in the world.” (Juan Santos, CEO, Nestle Philippines)

Virtually every national Nestle company organizes management-training courses for new employees with High school or university qualifications. But their approaches vary considerably. In Japan, for example, they consist of a series of short courses typically lasting three days each. Subjects include human assessment skills, leadership and strategy as well as courses for new supervisors and new key staff. In Mexico, Nestle set up a national training center in 1965. In addition to those following regular training programs, some 100 people follow programs for young managers there every year. These are based on a series of modules that allows tailored courses to be offered to each participant. Nestle India runs 12-month programs for management trainees in sales and marketing, finance and human resources, as well as in milk collection and agricultural services. These involve periods of fieldwork, not only to develop a broad range of skills but also to introduce new employees to company organization and systems. The scope of local training is expanding. The growing familiarity with information technology has enabled “distance learning” to become a valuable resource, and many Nestle companies have appointed corporate training assistants in this area. It has the great advantage of allowing students to select courses that meet their individual needs and do the work at their own pace, at convenient times. In Singapore, to quote just one example, staff is given financial help to take evening courses in job-related subjects. Fees and expenses are reimbursed for successfully following courses leading to a trade certificate, a high school diploma, university entrance qualifications, and a bachelor’s degree.

International Training

Nestle’s success in growing local companies in each country has been highly influenced by the functioning of its International Training Centre, located near company’s corporate headquarters in Switzerland. For over 30 years, the Rive-Reine International Training Centre has brought together managers from around the world to learn from senior Nestle managers and from each other.Country managers decide who attends which course, although there is central screening for qualifications, and classes are carefully composed to include people with a range of geographic and functional backgrounds. Typically a class contains 15—20 nationalities. The Centre delivers some 70 courses, attended by about 1700 managers each year from over 80 countries. All course leaders are Nestle managers with many years of experience in a range of countries. Only 25% of the teaching is done by outside professionals, as the primary faculty is the Nestle 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 Nestle 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 Nestle externally and to work with outsiders. It emphasizes industry analysis, often asking: “What would you do if you were a competitor?”

Nestle’s overarching principle is that each employee should have the opportunity to develop to the maximum of his or her potential. Nestle do this because they believe it pays off in the long run in their business results, and that sustainable long-term relationships with highly competent people and with the communities where they operate enhance their ability to make consistent profits. It is important to give people the opportunities for life-long learning as at Nestle that all employees are called upon to upgrade their skills in a fast-changing world. By offering opportunities to develop , they not only enrich themselves as a company, they also make themselves individually more autonomous, confident, and, in turn, more employable and open to new positions within the company. Enhancing this virtuous circle is the ultimate goal of their training efforts at many different levels through the thousands of training programs they run each year.

External Links:

• Employee and Career Development (Nestle Global)

Related posts:

• Case Study of Dell: Employee Training and Development
• Case Study of IBM: Employee Training through E-Learning
• Case Study: Nestle’s Growth Strategy
• Role of Case Studies in Employee Training and Development
• Different Employee Training and Development Methods
• Training and Development – Meaning, Definition and Need
• Skill Development Training Methods
• Four Major Theories of Training and Development
• HRM Functions: Training and Management Development
• Outsourcing of Training and Development

4 thoughts on “ Case Study of Nestle: Training and Development ”

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

• Request new password
• Create a new account

An Introduction to Human Resource Management

Student resources, case study: learning and development at choc co..

Online Case Study: Learning and Development at Choc Co.

Choc Co. is one of the world's largest confectionery businesses with significant market share in many of the world's biggest confectionery markets, including many emerging markets. It has a long and proud tradition, stretching back more than 150 years, including a long history of developing its employees, which has remained part of its ethos during its progress to becoming a global company.

Despite very positive sales figures over the last 12months, Choc Co. has prioritised streamlining the business to make it more competitive and has placed a strong emphasis on reducing cost over the next 18 months. Despite being keen to preserve its longstanding reputation as a firm that is committed to developing all its employees, in respect of learning and development, this ‘streamlining’ activity has focused on:

• ensuring a clear return on investment in training activities
• changing the way that learning programmes are delivered and being more creative in developing approaches to learning
• connecting training activities to the strategic needs of the firm.

The most important driver of the assessment of its training provision at Choc Co. is change. Whilst performing well in the marketplace, senior management continue to express discontent with levels of productivity and employee performance. Moreover, senior management has determined that the company needs to become more flexible and adaptable to respond to change in its market context, for example by an ability to adapt organisational structures to meet new business needs or through the introduction of technological innovation. However, as a traditionally minded employer, and with low levels of employee turnover at shopfloor level, Choc co. appears to have instilled in its workers a mindset of stability and steady progress, which is at odds with competition in a rapidly changing global economy. Therefore, Choc Co. wants to move towards a system of continuous improvement by creating a culture whereby workers are empowered to implement small incremental changes, rather than have substantial change imposed on them from time to time.

Identifying training needs

Traditionally, training needs analysis at Choc Co. has been ‘gap-led’. In other words, training tends to be focused where Choc Co. identifies a gap in capability – for example, where the introduction of new technology requires worker skill to be updated, company policy is changed or a key worker leaves the firm, requiring training to be provided to their replacement. Typically this gap-led identification of need is conducted at a local level, with little reference made to the wider national or international workforce.

Whilst workers can put themselves forward for training courses, including those provided by local education providers, there is no formal channel for doing this and access to such training often comes down to personal relationships and the constraints imposed by departmental budgets. The culture at Choc Co. is very much one in which training needs are typically identified  for  workers rather than  by  workers.

Delivery of training

Currently, the company runs a number of large training events each year designed to update manufacturing staff on everything from health and safety changes, business strategy and company performance to the adoption of new production technology. This is sometimes coupled with skills training for these workers as and when appropriate. This has traditionally been done at the specialist training centre at their largest production facility, which doubles as the company’s headquarters. This practice partly stems from a time when the company only operated two production facilities in the country. It now operates across six geographically dispersed locations. Workers tend to view these training events as a bit of a waste of time, particularly when they are delivered by consultants with little real understanding of working processes at Choc Co. It is not unknown for workers to claim that the training they receive is outdated and tells them nothing that they don’t already know.

The head of training and development, responding to a call to cut costs from the HR director, is now of the opinion, however, that such long training programmes, often of up to three or four days, are no longer the most cost-effective and efficient means by which to develop the staff. Such training has the dual problem of requiring regular investment and repeat sessions to cover workers on different shifts or at different plants, as well as leading to undesirable downtime of certain aspects of production. In particular, the head of L&D is keen to reduce a reliance on external training providers to design and deliver interventions to different workforce groups, from senior management to shopfloor workers.

Moreover, the company has historically not evaluated the impact of these events. In the new era of cost-cutting and added value, however, the company is keen to ensure that the impact of all training interventions, however big or small, is measured.

Employee development programmes

A major investment in L&D at Choc Co. is in its manufacturing apprenticeship scheme and graduate development programme, both of which are widely viewed as models of good practice in the industry and beyond. These programmes are, however, under significant scrutiny by senior management to better understand the extent to which this investment provides value to the firm. One particular area under review is the turnover of employees who complete these programmes and then leave to work at other firms.

Ray Barbie, the head of learning and development at Choc Co. recently attended a seminar at a local university on ‘the changing nature of workplace HRD’. He was slightly alarmed to find out that much of the company’s practice was seen as outdated. In particular, he was interested in examining how some more contemporary approaches and techniques in HRD could help the company both reduce costs and better performance through continuous improvement.

• What changes would you recommend that Choc Co. make to their current learning and development provision in order to reduce costs and improve performance?
• Discuss how e-learning, competency frameworks and improved knowledge-sharing at Choc Co. might help to cut costs and make the HRD activity at Choc Co. more strategic.
• How might the firm seek to ensure a return on investment for its learning and development activity?

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

Southwood School: A Case Study in Training and Development TrAining AnD DevelopmenT instructor's Manual

It is a case study about HRD and it focuses on the importance of HRM in organizations

Related Papers

ahmed saleh

Industrial Marketing Management

Texas State PA Applied Research Projects

One of the keys to an organizations' long-term success is a management development plan. One such agency that has developed and initiated a leadership training program is the Texas Commission on Environmental Quality (TCEQ). The purpose of this applied research project is threefold. First, it describes the ideal components of a leadership development program based on review of existing literature. Next, it assesses the TCEQ Aspiring Leaders Program using the practical ideal type components. And finally, the project provides recommendations for improving the Aspiring Leaders Program. An examination of leadership development literature reveals five crucial components of a model leadership development program. The leadership development model components include executive management support, selection process, implement skills training, provide individualized training, and program assessment. These components are used to frame a case study research approach to examining the Aspiring Leaders Program. The case study research utilized document analysis and structured telephone interviews. The case study research results show that, overall the Aspiring Leaders Program consistently reflects the same structure as the model leadership development program. However, the research results also indicate that significant improvements to the program can be achieved in the mentoring element of the individualized training component. Although to a lesser extent, an area of concern also exists with the selection process component with respect to how candidates are selected and the number of participants per training session.

danyal sajjad

Nageswara Rao

Aysegul Esin

The purpose of this training-of-trainers (ToT) manual on comprehensive SRHR of most-at-risk adolescents and young people is to enable trainers to build the professional skills of their national counterparts to provide quality services to targeted populations according to recognized standards and to disseminate knowledge in the region.

Anushka Abey

Mary Ann Corley

Emerging Issues and practices in peer education New Directions for Student Services

David R Arendale

Peer educators have a critical role to play in the delivery of a wide variety of important programs on college campuses. Nowhere is this more evident than in learning assistance programs. These programs, typically housed in a learning center or learning assistance office, include tutoring and mentoring and often take the form of individual and group support in study skills, note-taking, writing and math skills. There has also been a growing use of peer educators in collaborative learning programs, such as Supplemental Instruction. These programs bring students together to learn course content with one another. While any group of students can meet together to study for an exam, results are much higher when the groups are focused and structured (Arendale, 2005). A good first step in beginning a program is examining the major peer learning programs that are used by colleges across the U.S. There are four commonly implemented and well-validated peer learning programs in higher education in the U.S., with both unique features and common operating principles: Emerging Scholars Program, Peer-led Team Learning, Structured Learning Assistance, and Supplemental Instruction. These four student peer learning programs were selected due to uniquely meeting the following characteristics: (a) the program has been successfully implemented at the postsecondary, (b) the program has a clear set of systematic procedures for its implementation, (c) program evaluation studies have validated the positive claims about the program and published through peer-reviewed professional publications, (d) the program intentionally embeds learning strategy practice along with review of the academic content material, (e) rigorous evaluation studies validate the program contributing to increased content knowledge with higher persistence rates, and (f) the program has been replic

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

Case Study on T&D with solution

• Post author: myspeakhr
• Post category: Case Study
• Reading time: 11 mins read

We all know today’s management education is focusing more on case studies as they help you a clear understanding of concepts. Hence this HRM Case study on T&D with solution will help you understand various concepts in HRM like T&D, SHRM, Employee satisfaction, Career planning, and also general management concepts like Decision making, expanding strategies, etc. This case study on T&D with solution will help you in SHRM also.

About the Case:

This case study will help you in analyzing the situation properly so that you won’t miss some golden opportunities. Many times we just see the short term profits and we miss seeing long term losses we could bear to achieve a short term profit. This case also assures that before taking any decision one should think in all possible ways rather than focusing on one direction. I hope this case study is a life term lesson for all of us

Case Study on T&D with Solution

Title: “MAKAR” Gained profit by missed opportunity & lost wealth.

“Makar” a textile manufacturing unit located in the city of Jaipur with enough infrastructure and a good workforce. The organization is specialized in shirting and suiting particularly the supplies that are done in Rajasthan only. The organization is run by the CEO who is commonly known for well educated, experienced, a businessman with a humane approach. Mr. Mukund CEO “Makar” considered the employees as a competitive advantage of his organization and want to keep the workforce always updated to face the challenges from their competitors.

Mukund the people’s leader

Mr.Mukund, who heads the production himself, developed an efficient top management group which includes Mr.Prem Heading marketing, Mrs.Mrunal leading HR and T&D, Mr.Vaidya leading finance. All these department heads are always been supportive heads for the ideas of Mr.Mukund in handling the workforce. Mr. Mukund always quotes that “I believe that satisfied, educated, the dedicated workforce will be a key to success at any condition to any organization. Money spent on employees will always be an investment for my organization.”

Activity of the Organization

Training and development become a day to activity in the organization. Employees are been trained by well-versed trainers in that area. The organization also encourages the employees to do further studies as part of the career development program and they get a helping hand from the organization.

Happy Employees

The employees of Makar are very much satisfied with this kind of support from the organization and they realized that being with Makar their personal growth will be assured. Because of the above-said things Makar had many advantages like highly trained and qualified workforce, highest quality of supplies assured, less rate of attrition, dedicated workforce, meeting the targets on time, satisfied workforce, etc…

Announcement by Mr. Mukund

One day the employees of Makar were in deep Grief when the news hit the office that Mr. Mukund CEO made an announcement, ” Dear employees. You all are my colleagues rather than my employees. I always feel that I am one of you with more responsibility.  Now my age is not allowing me to shoulder that responsibility, I wish to give way to my younger generation. So I have decided to handover the charge to Mr. Mithun, My only son, who had completed his studies and returned to India. I know you all will be with him as a pillar and extend your support, in the same manner, you supported me. Without you people, this organization would not have reached these heights. I am Sure you all will support him.

Now it has been three months since Mr. Mithun take over the charge and from day one he started auditing in almost all the departments with a motto to reduce cost. And he got a strong statistics that the compensation is the highest cost bared by the company compared to any other cost incurred in the organization.

Mitun’s decision: Shocked Mrunal

Mitun called Mrs. Mrunal the head HR and told her “Mrs. Mrinal, I need an immediate action plan to reduce the labor force by 30% by way of Lay-off” he continued, “Mrunal I hope you are getting my point and I want it to happen soon”. Mrs. Mrunal got shocked by listening to this decision and said to Mr.Mithun that “ Sir it is my responsibility to tell you that the workforce which we have is an excellent, well trained, loyal and self-motivated workforce. In case of lay off such the competitors will take advantage of that. We can think of other options rather than Layoff.”

Mr.Mithun was not in a position to listen to her words he said that “sorry Mrs.Mrunal I am not ready to review my decision and neither wants any alternatives for this I want this work to be done within a week”. Finally, with all her regrets Mr. Mrunal reduced the workforce by 30%. On the other hand, the employees who were waived from Makar joined the competitors with a better package.

One day in his office Mr.Mithun was discussing with Mrs.Mrunal that the cost of labor in the organization has been reduced to a great level which increases the net profit also. After listening to this Mrs.Mrunal said that “it is well-said sir, we have reduced the labor cost and increased the profit but it is more true that we have missed the great opportunity to grow more by losing our wealth to the competitors”

Questions on Case study on T&D with solution

1. “ Employees are the competitive of the advantage of Makar” comment on this statement relating to the approach of Mr. Mukund CEO

2. How did you judge the actions taken by Mr. Mithun to reduce the cost of labor was it really a successful one.

3. “We have gained the profit by losing our wealth” discuss the statement of Mrs.Mrunal and support her statement.

4. From the above-said case find the opportunity which was missed by Makar due to the lay off as mentioned by Mrs. Mrunal.

Free HRM Case Study with Solution

Solution: solution for case study on t&d .

The solutions discussed here are just key points out of my observation and perception. You may come out with better solutions. It is purely based on how you perceive the case and how you analyze it. Hope the answers will help you. If you get better solutions please post it in the comment box it may help others.

1. “Employees are the competitive advantage of Makar” comment on this statement relating to the approach of Mr. Mukund CEO

Competitive Advantage means the point where you specialized when compared to that of your competitors. That is an edge over your competitors. In the said case Mr. Mukund and his team enabled employees to get well trained and also encouraged to precede their further studies. Hence they become skilled, educated, well trained, and qualified employees.

When the employees are been considered as the competitive advantage of any organization then it becomes a greater strength of that organization. Because when the employees are the competitive advantage that means that they are well trained and they are much satisfied with the organization the same way a well trained and satisfied employee will produce products which are rich in quality. To comment on the statement said by Mr.Mukund it is true that employees are the competitive advantage of Makar. The reasons why employees are considered so is a) they are well trained up to date b) they are educated c) skilled d) Habituated to cope up with the change in technology e) producing high-quality f) time-bound etc.

2. How did you judge the actions taken by Mr. Mithun to reduce the cost of labor was it really a successful one? As soon as Mithun took over the charge he wants to reduce the cost of production or you can say the overall expenses of the company in all means. When he noticed that the cost of labor is very high he didn’t analyze in the way why it is high and what the company is getting because of spending on it. According to me decision taken by Mr. Mithun is not a wise or successful Idea because:- a) Mr.Mukund has spent years together and invested lots of money to mold the employees in such a way. Mr.Mithun’s decision will not allow him to encash the investment done by his father he b) Mr.Mithun fire the employees from the organization on whom they have invested because of which the competitors will get a chance to utilize the benefit of money that Makar had to spend on the employees. c) this decision may also reduce the level of motivation and morale of the remaining employees as the job security becomes a question mark in Makar.

3.“We have gained the profit by losing our wealth” discuss the statement of Mrs.Mrunal and support her statement.

Mrs.Mrunal HR head of Makar was opposing the decision of Mr.Mithun from starting itself. Because being an HR Mrunal was clear that the amount spent on employees for training is not an expense but it is an investment. But Mithun didn’t listen to her words. And being an employee she has been forced to separate some of the employees from MAKAR. And Mrunal did it. But she is not happy about what she had done. So she said this statement. This statement is very well suitable for Makar. Let us separate this statement in two parts and discuss “We have gained the profit + by + losing our wealth”

In this statement “We have gained the profit” means by reducing the workforce Makar has reduced the expenses which resulted in an increase in the profit “losing our wealth” means Makar has invested a lot of money on employees by way of training and made them a strong workforce which is also a competitive advantage to Makar. By separating them from Makar it is can be said that Makar lost its wealth and wealth here denotes the highly skilled employees.

4. From the above-said case find the opportunity which was missed by Makar due to the lay off as mentioned by Mrs.Mrunal.

Mrs.Mrunal said that “Makar has missed a good opportunity by means of Layoff”. The opportunity mentioned here is:-

When we go through the case carefully it was mentioned that “Makar has a good infrastructure and workforce”, but it is serving the need of Rajasthan only. And it is also mentioned that Makar has gained a good value among the customers as they don’t have any negative points to say about Makar.

In this situation when it is noticed that Makar has an excess workforce that is well trained the CEO should consider the option of extending the business to nearby states. This will develop the business and increase profit.

Expansion of Business is the Opportunity which was Mentioned by Mrs. Mrunal in the case.

I hope you find the HRM case study on T&D with solution is helpful. You can find more case study on HRM by clicking here

Share this:

You might also like, human resource management case studies with solution, business law case studies with solutions, submit a comment cancel reply.

This site uses Akismet to reduce spam. Learn how your comment data is processed .