INDEPENDENT REPORT

Index No: COBAHRM22.1P-007

STRATEGIC HUMAN RESOURCE MANAGEMENT

Assessment Number 02

Word Count - 2,600

Date of Submission: 25.03.2023

Table of Contents

List of Tables ............................................................................................................................. 3

List of Figures ............................................................................................................................ 4
1) Nestle Sri Lanka PLC ......................................................................................................... 5
1.1 Introduction to the Food & Beverage Industry ................................................................ 5
1.2 Introduction to the Company............................................................................................ 5
1.3 Changes in Performance Management of Nestle Sri Lanka PLC .................................... 5
1.3.1 Pre-Pandemic ............................................................................................................. 5
1.3.2 During the Pandemic ................................................................................................. 6
1.4 Changes in Ethical Dimensions of Nestle Sri Lanka PLC ............................................... 7
1.3.1 Employee health, safety, and well-being ................................................................... 7
1.3.2 Recruitment and selection ......................................................................................... 8
2) PGP Glass Ceylon PLC ...................................................................................................... 8
2.1 Introduction to the Manufacturing Industry ..................................................................... 8
2.2 Introduction to the Company............................................................................................ 9
2.3 Changes in Performance Management of PGP Glass Ceylon PLC ................................. 9
2.3.1 Pre-Pandemic ............................................................................................................. 9
2.3.2 During the Pandemic ............................................................................................... 10
2.4 Changes in Ethical Dimensions of PGP Glass Ceylon PLC .......................................... 11
2.4.1 Employee health, safety, and well-being ................................................................. 11
2.4.2 Recruitment and selection ....................................................................................... 11
3) Comparison of the Nestle Sri Lanka & PGP Glass companies ........................................ 12
3.1 Performance Management.............................................................................................. 12
3.2 Ethical Dimensions ........................................................................................................ 14
4) Conclusion ........................................................................................................................ 14
References ................................................................................................................................ 15

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List of Tables

Table 1; Cause and effect process in the pre-pandemic situation .............................................. 6

Table 2; Cause and effect process during the pandemic situation ............................................. 6
Table 3; Cause and effect process in the pre-pandemic situation .............................................. 9
Table 4; Cause and effect process during the pandemic situation ........................................... 10

Table 5; Comparison between the current and ideal situation ................................................. 12

Table 6; Comparison between the current and ideal situation ................................................. 14

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List of Figures

Figure 1; Company Logo ........................................................................................................... 5

Figure 2; Care packages for staff ............................................................................................... 7

Figure 3; Care packages for manufacturing & sales team ......................................................... 7

Figure 4; Company Logo ........................................................................................................... 9

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 The Strategic role of Human Resource Management in
Organizational Transformation

1) Nestle Sri Lanka PLC

1.1 Introduction to the Food & Beverage Industry

The vast and varied food and beverage industry covers all aspects of food and beverage
production, processing, and distribution. It consists of a wide range of businesses, from big
global giants to tiny independent producers and retailers. The industries that make up this
business include agriculture, food processing, food packaging, food service, and retail food
sales, to name a few. Many people are employed by the food and beverage industry in various
jobs, making a major contribution to the economy.

1.2 Introduction to the Company

A major player in the food, beverage,
nutrition, and wellness industries is the Swiss
company, Nestle. The Anglo-Swiss
Condensed Milk Corporation established the
first condensed milk factory in Europe in Figure 1; Company Logo
Cham, Switzerland, the same year Nestle was established. To save the life of a neighbor's
infant, Henri Nestle, the German pharmacist who founded Nestle, first introduced his Farine
lactée, a concoction of cow's milk, wheat flour, and sugar, in Vevey, Switzerland, a year after
its initial release. Since then, nutrition has been the foundation of their business (Nestle Lanka
PLC, n.d.).

1.3 Changes in Performance Management of Nestle Sri Lanka PLC

 Employee remuneration policy change for the rewarding framework

1.3.1 Pre-Pandemic
Nestle, being an international organization, has most likely changed its reward management
practices over the year. Nestle's reward management policies have altered as part of broader
organizational goals, such as promoting employee engagement and productivity.

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Nestle's pre-pandemic reward management was focused on attracting and keeping staff through
competitive wage packages and perks. This included offering performance-based bonuses, and
a variety of employee benefits such as health insurance, retirement programs, and payoffs.

Table 1; Cause and effect process in the pre-pandemic situation

Why is the change How is the change

Nestle changed their reward management Nestles incentive management systems
policies for a variety of reasons. One motive varied in unique ways, depending on the
is to remain competitive in the talent market. organization's aims and strategies at the time.
Nestle utilizes incentive management
techniques to attract new employees, retain Compensation levels could be adjusted, new
talent, motivate, and reward employees. benefits or incentives offered, and new
Another motivation is to reflect shifting performance evaluation systems
demographics and tastes in the workforce. As implemented as, first setting goals,
an example younger generations, they are communicating goals, observing goals, and
valuing the benefits such as flexible work at last evaluation. The organization's general
schedules or trainers over traditional perks approach to reward management was also re-
such as health insurance or monthly benefits. evaluated (Nestle Sri Lanka PLC, n.d.).

1.3.2 During the Pandemic

Nestle, in particular, has put in place a number several assist their staff during the pandemic.
These initiatives include more safety precautions and more flexible working conditions.
Table 2; Cause and effect process during the pandemic situation

Why is the change How is the change

In response to the pandemic, firm Nestle has expanded its stable variable pay
management has had to adapt its reward program. Frontline personnel with a higher risk
schemes to be competitive and recruit and of covid-19 exposure.
retain young people. Furthermore, due to For three months in a row, “Nestle Care
socially unstable situations, supply Packages” were sent to staff employees,
shortages, long-term lockdowns, and manufacturing, and fulfillment centers, as well
economic instability employees were as field sales employees. Those were also
using the extra income for the fulfillment precisely packed to incorporate a selection of
of their basic needs.

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 Nestle's well-loved products, to feel they are
also consumers (Nestle Sri Lanka PLC, 2022)

Figure 3; Care packages for staff (Nestle Sri Lanka Figure 2; Care packages for manufacturing & sales
PLC, 2022) team (Nestle Sri Lanka PLC, 2022)

1.4 Changes in Ethical Dimensions of Nestle Sri Lanka PLC

1.3.1 Employee health, safety, and well-being

 Creating a healthy work and life balance

Nestle has traditionally placed a premium on employee health, safety, and well-being. The firm
understands that its most valuable asset is its employees, and it has taken a number several to
ensure their physical, emotional, and mental well-being.

In terms of physical health and safety, nestle has implemented stringent health and safety
procedures at all of its facilities across all locations. These guidelines are designed to keep
workers safe and healthy by preventing accidents and injuries. Nestle also provides its
employees with health and wellness benefits such as gym memberships, nutrition counseling,
and stress management training.

Nestle has taken a variety of efforts to encourage work-life balance and to support its
employees' emotional and mental well-being. To help employees balance personal and
professional responsibilities, the organization has implemented flexible work arrangements
such as telecommuting and flexible scheduling.

Therefore, most employees are required to forecast on the below tips initiated by nestle
management.
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  Assessment of lifestyle - What things in life are being neglected?
 Choose to change lifestyle - Make the conscious decision to change employee lifestyle.
 Allocate specific time for activities - Stick to doing them.
 Make some time for themselves - They all need to recharge themselves. So recharge
their bodies physically and mentally. And make commitments to enjoy their new time
every day.
 Don’t forget to laugh - It’s great for their health (Nestle Family Club, 2021).

1.3.2 Recruitment and selection

 Leadership and personal responsibility.

Nestle hires skilled and motivated employees who follow their values, provide equal chances
for development and progress, respect their privacy, and do not allow harassment or
discrimination.

The Nestle management and leadership principles define the beliefs and abilities that every
employee can use to help Nestle preserve its competitive advantage. In the previous two years,
the principles have been completely rewritten to reflect changes in the Nestle Corporate Human
Resource Principles, as well as new policies and procedures.

The Nestle code of human resource conduct establishes non-negotiable minimum standards of
behavior for all employees regarding issues such as legal compliance, conflicts of interest,
insider trading, fair dealing, confidential information, bribery and corruption, discrimination
and harassment, and reporting non-compliance (Nestle Sri Lanka PLC, 2020).

2) PGP Glass Ceylon PLC

2.1 Introduction to the Manufacturing Industry
The manufacturing industry encompasses the assembly, machining, molding, and raw material
refinement processes. This sector is critical to the economy of many countries because it
supports labor force growth, export revenues, and national income.

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Glass is utilized in many industries, including construction, automotive, packaging, and
electronics. By encouraging the use of recycled glass, minimizing carbon emissions, and
conserving energy, the industry also contributes to sustainable development.

2.2 Introduction to the Company

PGP Glass Ceylon PLC is the one & only Glass packaging
manufacturer in the island nation with a rich history of over 60 years.
As the Island’s sole manufacturer, PGP Glass offers the entire range
of glass bottles for the Food and Beverages, Pharmaceuticals,
Liquor, Cosmetics & Perfume industries. The company has a
capacity of up to 300 TPD furnaces adding more online inspection Figure 4; Company Logo
machines, dual chamber furnaces, and automatic packing (PGP Glass Ceylon PLC, n.d.).

2.3 Changes in Performance Management of PGP Glass Ceylon PLC

 Maximizing and investing in learning and development initiatives related to programs

2.3.1 Pre-Pandemic
Learning and development were vital in the pre-covid situation because PGP glass assisted
individuals and their internal departments by adapting to changing labor market needs and
remaining competitive with the scope of the organization’s goals. Learning and development
were primarily focused on developing job-specific skills, increasing productivity, and
promoting employee engagement and job satisfaction while maintaining the morale of workers.

Table 3; Cause and effect process in the pre-pandemic situation

Why is the change How is the change

The learning and development often included By adding numerous technologies to improve
a combination of formal training programs, learning and development, such as video-
on-the-job learning, and coaching and based learning and virtual reality-based
mentoring. training were implemented.
Assisting the employees in developing their This was tested out into a three to six months
careers and improving their overall ‘Learning Journey’ for each learner. The PGP
performance via several virtual events such Learning University believes in the concept
as workshops and seminars are examples of of the “Flipped Classroom” that the bulk of

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 formal training programs, whereas on-the-job knowledge and concept related to leadership
learning entails learning from peers and more happens outside of the classroom through
experienced colleagues. pre-work, pre-reads, and classroom learning
becomes a hub for peer learning, experience-
sharing practice, and reflection (PGP Glass
Ceylon PLC, 2022).

2.3.2 During the Pandemic

The pandemic has increased the implementation of technology and innovative learning and
development practices. Companies are responding to these changes to give their employees the
skills and assistance they require to navigate the new work environment.

Table 4; Cause and effect process during the pandemic situation

Why is the change How is the change

The pandemic has had a profound influence As more people work from home, online
on their ability to work and study. In the face learning has become the standard. To train
of lockdowns and social distancing methods, their personnel management has turned to e-
PGP glass has turned to remote working and learning platforms, webinars, and online
e-learning technology to continue delivering training programs. As a result of this
learning and development opportunities to transformation, learning has become more
their staff. flexible and accessible, allowing employees
to learn at their speed and from any location.

Increased focus on Mental Health: The

pandemic has had a profound impact on
mental health, and the management
recognizes the value of mental health support
and well-being. To assist employees' well-
being, learning, and development programs
now include stress management, resilience
strategies, and mental health awareness
training.

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2.4 Changes in Ethical Dimensions of PGP Glass Ceylon PLC

2.4.1 Employee health, safety, and well-being

 Minimizing health hazards and providing a safe working environment

Employees and contractors at PGP are subjected to a stringent health examination that includes
pre-employment and ongoing health assessments. The findings of the medical examinations
allow all employees to get regular intervention and proactive lifestyle change management.

The PGP has implemented industrial hygiene and occupational health activities at its
production sites. This program includes Task-Based Exposure Assessment (TBEA), a
qualitative risk measurement approach for estimating the danger of chemical and solvent
exposure. Based on the TBEA, high-risk goods and chemicals were prioritized for personal
exposure monitoring.

PGP encourages its employees and contractors to take safety precautions, record unsafe
activities, dangerous conditions, and near-miss events, among other incidents, and track
corrective and preventive actions. Workers also receive occasional refresher training on several
topics, with specific training programs and deadlines (PGP Glass Ceylon PLC, 2022).

As an example during the covid period, the human resource department initiated activities such
as creating the “Geo Bubble Concept” for social distancing, issuance of hand sanitizers and
personal protective equipment, flexible shift rotations for identifying and tracing covid victims
and shift wise covid care team also introduced. As well as the covid infected employees were
also provided with food and essentials with the board in facilities to ensure other employees a
safe working environment.

2.4.2 Recruitment and selection

 Being an equal employer by enabling strategic & ethical talent acquisition through
technology

PGP is an equal opportunity employer that bases its recruitment, employment, development,
and promotion choices exclusively on a person's ability and potential about the job's
requirements, and it conforms with local, state, and federal employment regulations. Their code
of conduct expressly states that they are an equal-opportunity employer.

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PGP's goal is to develop a clear, fair, and efficient recruitment process. To complement this
process, they have installed an app called "HONO" as a human resource management system
for recruiting across the firm.

A four-step simplified ethical recruitment process begins by allowing hiring managers to log
in to HONO recruiting via their HRMS single sign-on. Once within HONO, they may raise
hiring requisitions in a highly intuitive environment. Most jobs are addressed, assessed, and
pre-populated in the system under ethical practices, such as ensuring credible recruiting from
the respective HR management process (PGP Glass Ceylon PLC, 2022).

The system is set up to trigger approval phases, assist the recruitment team in sourcing
applicants through several skill-checking stages, and can filter candidates based on concrete
factors such as education and years of experience, as well as certain pre-screening questions.
The company communicates with the candidate at every stage of the process.

3) Comparison of the Nestle Sri Lanka & PGP Glass companies

3.1 Performance Management
Table 5; Comparison between the current and ideal situation

Factors Nestle PGP Glass

Resistance In pre-pandemic, People who perform In pre-pandemic, the employees
for changes should be acknowledged were encouraged by motivation
and rewarded, admired, fed backed. sessions to take part in the learning
Workers who are motivated to change process & update their profiles by
for performing well are more likely to obtaining training and completion
accept change. So once workers certificates for the achievements.
demand incentive schemes
management has to be fair and genuine During the pandemic, employees
in offering to employees. were provided with self-learning
options & facilities and educated to
During the pandemic, as an energizing retain learning each skill daily, on
way, employees are also provided with the other hand, essential utilities
non-financial benefits, which is were not enough for the training.
accepted by most employees.

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Strategies In pre-pandemic, benchmarking: In pre-pandemic, these are
Nestle does compare the compensation customized sessions that are
management strategies of the facilitated by internal and external
competitors to ensure they are training institutes and chosen by the
competitive and which can be management. Typically, classroom
negotiated with the employees. programs are supplemented by
robust pre-program and post-training
During the pandemic, nestle has interventions to strengthen the
initiated care package distribution to its learning process.
employees with their brands to align the During the pandemic, the courses
employees with the mission hosted on self-driven online learning
requirements. platforms also provided knowledge
on staying focused at their own pace
while maintaining a safe
environment in family life. The
learner is presented with a wide
range of learning offerings related to
health and safety practices that end
with a short assessment to provide a
quick assessment and feedback to the
learner in the Sinhala language as
well.

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3.2 Ethical Dimensions
Table 6; Comparison between the current and ideal situation

HR Ethic Factors Nestle PGP Glass

Function
Employee Strategies Nestle has implemented PGP glass is more focused on
health, safety, several health compliances, employee safety measures
and well-being and safety precautions- and as a large-scale
related initiatives, and in the manufacturing firm, they
topic of well-being employee analyze task-based exposure
nutrition counseling also assessment to overcome such
improved. employee risk-related issues.
Recruitment Strategies For new blood in nestling the For the ethical practice of
and selection programs related to self- recruitment, PGP glass uses a
driven leadership practices digital concept to streamline
people were encouraged to the ethical environment in
act on new principles and recruitment. For that HR
policies such as gender Application called “HONO”
equity in the workplace. has been developed.

4) Conclusion
As a researcher in selected sectors and organizations,

Nestle has put in place a strong performance management system that matches individual
ambitions with the company's overall goals, while also giving employees regular feedback and
chances for growth and development. The corporation also places a high value on ethical
behavior, with a code of corporate conduct outlining clear guidelines for staff to follow.

PGP Glass, on the other hand, prioritizes employee development and engagement through its
performance management system, which focuses on providing employees with regular
feedback and coaching to help them improve their skills and talents. The organization also has
a strong ethical component, with a code of conduct outlining specific expectations for
employee behavior and a dedication to sustainability.

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References

Nestle Family Club, 2021. www.nestlefamilyclub.lk. [Online]

Available at: https://www.nestlefamilyclub.lk/en/video/maintaining-work-life-balance-home

Nestle Lanka PLC, n.d. www.nestle.lk. [Online]

Available at: https://www.nestle.lk/aboutus
Nestle Sri Lanka PLC, 2020. Nestle Creating Shared Value Report, s.l.: s.n.

Nestle Sri Lanka PLC, 2022. www.nestle.lk. [Online]

Available at: https://www.nestle.lk/media/pressreleases/allpressreleases/support-
challengetime

Nestle Sri Lanka PLC, 2022. www.nestle.lk. [Online]

Available at: https://www.nestle.lk/media/pressreleases/allpressreleases/support-
challengetime
Nestle Sri Lanka PLC, 2022. www.nestle.lk. [Online]
Available at: https://www.nestle.lk/media/pressreleases/allpressreleases/support-
challengetime

Nestle Sri Lanka PLC, n.d. www.nestle.lk. [Online]

Available at: https://www.nestle.lk/benefits-perks
PGP Glass Ceylon PLC, 2022. PGP Glass Annual Report, s.l.: s.n.
PGP Glass Ceylon PLC, 2022. PGP Glass Annual Report, s.l.: s.n.
PGP Glass Ceylon PLC, 2022. PGP Glass Annual Report, s.l.: s.n.

PGP Glass Ceylon PLC, n.d. www.pgpceylon.com. [Online]

Available at: https://pgpglassceylon.com/about-us/

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