1. HOW HUMAN RESOURCE MANAGEMENT PRACTICES ARE INTEGRATED AND
ALIGN WITH THE OVERALL BUSINESS STRATEGY AT NESTLÉ.
1.1.LINKING HUMAN RESOURCE MANAGEMENT PRACTICES WITH BUSINESS
Strategic human resource management is an essential part of every successful organization or an organization aspiring to succeed. Strategic human resource management is therefore defines as “pattern of planned human resource developments and activities intended to enable an organization to achieve its goal” (Noe , Hollenbeck, Gerhart and Wright 2008:68-69). The human resource management practice in an organization aims at providing certain outputs in order to achieve the organization’s goals. However, Nestlé recognizes the critical relation between its organization’s human resources management and its contribution to the achievement of Nestlé’s objective, as the recognition of Nestlé as a preferred employer is one of the key pillars of its strategy. Linking human resource management with the business practices results in quality human resource practices and increased business success. This linkage also increases Human Resource’s ability to implement strategic business goals and provide decision markers with critical resource allocation information.
Noe et al (2008:69) note the following four level of linkage or integration of Human Resource management practice with business strategy:
Administrative linkage: this is the lowest level of linkage. The company’s strategic business planning function exists without any input from the Human Resources Management department. Therefore the Human Resource management department simply engages in administrative work unrelated to the company’s core business needs.
One-way linkage: The strategic management function only inform the Human Resource function of the strategic plan which does not constitute Human Resource Management.
Two-way linkage: This allows for sequential consideration of Human Resource issues during the...