Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                

Commerce Assignment

Download as pdf or txt
Download as pdf or txt
You are on page 1of 34

COMMERCE ASSIGNMENT

FUNCTIONS OF
MANAGEMENT

NAME:PEARL
CLASS: 12 COMMERCE
ROLL NO: C-07
SUBMITTED TO:TR.PRIYA
INDEX
OBJECTIVES OF THE PROJECT
COMPANY INFORMATION
NESTLE ORGANISATION CHART
SCALAR CHAIN OF COMMAND
UNITY OF COMMAND AND
DIRECTION
CHANNELS OF COMMUNICATION
DELEGATION OF AUTHORITY
AUTHORITY-
CENTRALISED/DECENTRALISED?
SPAN OF CONTROL
SOURCES OF RECRUITMENT
ADOPTED
ADVANTAGES OF SOURCES OF
RECRUITMENT
STEPS IN SELECTION PROCEDURE
ADVANTAGES OF THE STEPS
CONCLUSION
ACKNOWLEDGEMENT
GLOSSARY
BIBLIOGRAPHY & E-RESOURCES
OBJECTIVES

1 TO STUDY THE ORGANISATION


STRUCTURE OF A COMPANY

TO STUDY THE SOURCES OF


2 RECRUITMENT AND STEPS
INVOLVED IN THE SELECTION
PROCEDURE ADOPTED BY THE
COMPANY
INTRODUCTION
This assignment delves into the core functions of
management—planning,organizing,staffing,
leading, and controlling—within the context of
Nestlé India. By combining theoretical insights with
on-site visits and interviews, we aim to explore how
these functions manifest in a real-world corporate
setting. Nestlé India, a leader in the food and
beverage industry, serves as our case study to
understand the practical application of
management principles. This hands-on approach
allows us to glean valuable insights into how
effective management functions contribute to the
success of a globally recognized organization. Join
us as we bridge theory and practice to unravel the
dynamics of management at Nestlé India.
ABOUT
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.

Over the years, the company has become synonymous with a


diverse array of food and beverage products that have found a
place in the hearts and homes of millions of Indians.

At the core of Nestlé India's offerings are iconic brands like Maggi,
Nescafe, Kit Kat, and Nestea. These brands span various
categories, including instant noodles, coffee, dairy products,
chocolates, and beverages. Nestlé India operates multiple
manufacturing facilities strategically located across the country,
forming a robust network to ensure the efficient production and
distribution of its products to meet the diverse demands of the
Indian consumer base.

Maggi noodles, in particular, stand out as a flagship product with


a rich history in India. Despite facing regulatory challenges, Nestlé
India has demonstrated resilience by taking proactive measures
to address concerns, ensuring the sustained popularity of this
household favorite.

Innovation is a key driver for Nestlé


India, and the company invests
significantly in research and
development. This commitment
allows Nestlé India not only to adapt
global products to local tastes but
also to introduce new offerings that
resonate with the unique
preferences of the Indian market.
Beyond its business operations, Nestlé India
actively engages in community initiatives and
corporate social responsibility (CSR) projects.
The company's commitment extends to areas
such as nutrition education, rural development,
and water conservation, reflecting a dedication
to making a positive social impact and
contributing to the well-being of the
communities it serves

NESTLÉ set up milk collection centres that would not only ensure
prompt collection and pay fair prices, but also instil 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.
Listed on major Indian stock exchanges, including the Bombay Stock
Exchange (BSE) and the National Stock Exchange of India (NSE),
Nestlé India operates in accordance with corporate governance
principles, ensuring transparency and accountability in its business
practices.

Sustainability is a paramount focus for Nestlé India, aligning with the


broader global commitment of its parent company. The company
actively pursues initiatives to reduce its environmental footprint,
promote sustainable sourcing practices, and contribute to the
broader goals of environmental responsibility.

NESTLÉ has been a partner in India's growth for over a century 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.
ORGANISATION CHART

An organizational chart is a graphical representation of the


formal structure of an organization, showcasing how
different roles, functions, and departments are organized
and interconnected. It provides a clear visual hierarchy that
helps employees understand their roles, reporting
relationships, and the overall structure of the company.

Nestlé India's organizational structure is a hierarchical one,


with a clear division of responsibilities between different
levels of management. The company's leadership team is
headed by the Chairman and Managing Director, who is
responsible for the overall strategic direction of the business.
The leadership team is supported by a team of executive
directors, each of whom is responsible for a specific business
function, such as finance, marketing, or sales.
ORGANISATION CHART
AT INDIA

SOUTH ASIAN REGION


SCALAR CHAIN OF
COMMAND
It refers to the chain of superiors ranging from the
ultimate authority (top) to the lowest rank (bottom).
This prescribed chain of command has to be followed
and communications should flow through the
established chain of command.

AT
The scalar chain of command at Nestlé India refers to the hierarchical structure
of the organization and the established channels of communication that follow
that structure. It outlines the clear reporting relationships between different
levels of management, ensuring that information and decisions flow in an
orderly manner.

Chairman and Managing Director: The Chairman and Managing Director


(CMD) is the highest-ranking official at Nestlé India and holds overall
responsibility for the company's strategic direction and performance.

Executive Directors: The CMD is supported by a team of Executive Directors,


each heading a specific business function or department, such as finance,
marketing, sales, or operations.

Zonal Business Managers: Zonal Business Managers report to the respective


Executive Directors and oversee the company's operations within their assigned
regions or zones.

Area Sales Managers: Area Sales Managers report to the Zonal Business
Managers and are responsible for managing sales teams and achieving sales
targets within their assigned areas.

Sales Executives: Sales Executives report to the Area Sales Managers and are
responsible for directly interacting with customers, generating leads, and
closing sales.
UNITY OF COMMAND
Nestlé India's organizational structure is designed to ensure
that the company operates efficiently and effectively.Key
principles that contribute to this are unity of command

Unity of Command

Unity of command is the principle


that each subordinate should report
to only one superior. This helps to
avoid confusion and conflicting
instructions, and it ensures that
employees are clear about who they
are accountable to. Nestlé India's
hierarchical structure holds true to
this principle, with each level of
management having clear authority
over the level below it.

For example, a sales representative


at Nestlé India would report to a
sales manager, who would report to
a regional sales manager, who
would report to a national sales
director, and so on. This clear chain
of command ensures that everyone
knows who to go to for instructions
and who they are responsible to for
their work.
UNITY OF DIRECTION
Nestlé India's organizational structure is designed to ensure
that the company operates efficiently and effectively.
Another key principles that contribute to this is Unity of
direction

Unity of Direction
Unity of direction is the principle that
there should be one plan of action for
each group of people working towards a
common goal. This helps to ensure that
everyone is working towards the same
objectives and that there is no
duplication of effort. Nestlé India's
established channels of communication
and reporting relationships uphold this
principle.

For example, if Nestlé India decides to


launch a new product, the company
would develop a marketing plan for the
product. This plan would outline the
company's overall goals for the product,
as well as the specific marketing
activities that will be undertaken. The
plan would then be communicated to
all relevant employees, including the
marketing team, the sales team, and the
production team. This would ensure
that everyone is working towards the
same goals and that there is no
duplication of effort.
UNITY OF DIRECTION

Unity of direction is a crucial principle for Nestlé India, ensuring


that all employees work towards the company's common goals.
This is achieved through:

Clear Communication: Nestlé India maintains open


communication channels, keeping everyone informed about the
company's direction and priorities.

Established Reporting Relationships: A clear hierarchy ensures


that decisions flow through the appropriate channels, avoiding
confusion and aligning efforts.

Shared Objectives: Nestlé's strategic planning focuses on


common objectives, uniting employees across departments and
locations.
CHANNELS OF COMMUNICATION

Nestle India has a variety of communication channels that


enable the company to share information and ideas
effectively across its workforce.
FORMAL CHANNELS
Nestle India uses formal channels of communication to relay important
information and announcements across the organization. These
channels include:

Meetings: Nestle India holds regular meetings at all levels of the


organization to discuss key issues, share updates, and brainstorm ideas.
These meetings provide a forum for employees to engage in two-way
communication and provide feedback.

Written Reports: Nestle India circulates written reports to keep


employees informed about progress, issues, and decision-making
processes. These reports are often circulated electronically to ensure
timely and widespread distribution.

Company Intranet: Nestle India's intranet serves as a central repository


of information, resources, and communication channels. Employees can
access company news, policies, training materials, and employee forums
through the intranet.

Email: Email is a widely used communication tool within Nestle India,


enabling employees to exchange messages and share files efficiently.
CHANNELS OF COMMUNICATION

INFORMAL CHANNELS

Informal Channels

Nestle India also utilizes informal channels of communication to


foster a more collaborative and approachable work environment.
These channels include:

Socializing: Nestle India encourages informal interactions


between employees during work hours, such as coffee breaks or
team lunches. These interactions provide opportunities for
informal communication and relationship building.

Internal Communication Platforms: Nestle India provides


internal communication platforms that allow employees to
connect with colleagues from different departments and
locations. These platforms foster a sense of community and
encourage the exchange of ideas.

Employee Feedback Mechanisms: Nestle India encourages


employees to provide feedback on the company's culture, policies,
and processes. This feedback is often collected through surveys,
suggestion boxes, or anonymous feedback channels.
DELEGATION OF AUTHORITY

Delegation of authority is a crucial management practice


that plays a significant role in Nestle India's success. By
empowering employees to make decisions and take
ownership of their work, Nestle India can achieve several
benefits:
Increased Efficiency: Delegation frees
up managers to focus on higher-
priority tasks, such as strategic
planning and decision-making. This
allows for a more streamlined workflow
and faster response times to market
demands.

Empowered Employees: Delegation


gives employees a sense of ownership
and responsibility, which can boost
morale, motivation, and job satisfaction.
Empowered employees are more likely
to take initiative, contribute innovative
ideas, and go the extra mile.

Improved Decision-Making: Delegation


brings decision-making closer to the
point of action, allowing employees with
direct experience and knowledge to
make informed decisions. This can lead to
more effective and timely solutions.
DELEGATION OF AUTHORITY

Enhanced Talent Development: Delegation


provides employees with opportunities to develop
their skills and experience, preparing them for future
leadership roles. This contributes to a strong talent
pipeline within the organization.

Adaptability and Growth: Delegation enables


Nestle India to adapt to changing market conditions
and seize new opportunities quickly. By
empowering employees to make decisions, the
company can respond to customer needs and
market trends more effectively.
DELEGATION OF AUTHORITY

Nestle India effectively utilizes delegation of authority by:

Clearly Defining Roles and Responsibilities: The company


clearly outlines the roles and responsibilities for each
position, ensuring that employees understand their scope
of authority.

Providing Adequate Training and Support: Nestle India


provides employees with the necessary training and
support to make informed decisions and execute their
delegated tasks effectively.

Fostering a Culture of Trust and Accountability: The


company cultivates a trusting work environment where
employees feel empowered to take ownership and are held
accountable for their actions.

Regularly Monitoring and Evaluating: Nestle India


regularly monitors and evaluates the effectiveness of
delegation to identify areas for improvement and ensure
that employees are utilizing their delegated authority
responsibly.
IS NESTLE AUTHORITY
CENTRALISED OR
DECENTRALISED?
Nestlé India employs a hybrid organizational structure,
balancing centralized control for major decisions with
decentralized autonomy in areas like regional
operations. This strategic approach ensures consistency
in global strategy while enabling swift adaptation to
local market dynamics, fostering innovation and
responsiveness.

Centralized Elements

Top-down decision-making: Major strategic decisions, such


as product development and marketing campaigns, are
typically made by the company's top executives at the
corporate headquarters. This ensures that these decisions are
aligned with the company's overall goals and objectives.

Standardized processes: Nestlé India has standardized


operating procedures and guidelines that are followed across
all of its operations. This helps to ensure consistency and
quality in the company's products and services.

Centralized resource allocation: The company allocates


resources, such as capital and human resources, at the
corporate level. This helps to ensure that resources are used
efficiently and effectively across the organization.
Decentralized Elements

Local decision-making power: Regional and local managers


have some degree of autonomy in making decisions that are
relevant to their specific markets and business conditions.
This allows them to be more responsive to the needs of their
customers and to adapt to local market conditions.

Flexible adaptation: Nestlé India is able to adapt its products,


services, and marketing strategies to meet the specific needs
of different regions and customer segments. This helps the
company to be more competitive in different markets.

Employee empowerment: Nestlé India encourages


employees to take ownership of their work and make
decisions at the point of action. This helps to foster innovation
and responsiveness.

Benefits of having a hybrid authority arrangement:-


Consistency and efficiency: The centralized elements of
the structure help to ensure that the company is
operating efficiently and that there is consistency across
its operations.
Agility and responsiveness: The decentralized elements of
the structure allow the company to be more agile and
responsive to the needs of its customers and to local
market conditions.
Innovation: The company's culture of employee
empowerment encourages innovation and helps the
company to develop new products and services.
SPAN OF CONTROL
The Span of Control refers to the number of subordinates
who can be managed efficiently by a superior. A wide
span of control means that a manager has many direct
reports, while a narrow span of control means that a
manager has few direct reports.

At NESTLE INDIA, they use a hybrid span of control,


which means that it uses a combination of wide and
narrow spans of control and this depends on the various
needs of the organisation at specific times.

For example, The comparatively more similar tasks


within a business unit would need a wider span of
control with more direct reports whereas, the managers
who supervise employees who perform separate and
diverse tasks often need narrow spans of control to
manage successfully. New operations: If the company or
job requirement is new to managers or employees,
implementing narrow spans of control can help teams
adjust to new tasks.
Nestle considers several factors while determining the
appropriate span of control for its managers. These factors
can be broadly categorized into three main areas:

1. Organizational Factors:

Nature of the work: The complexity and interdependence of


the tasks performed by employees can influence the span of
control. Complex tasks and high interdependence may
require a narrower span of control to ensure adequate
supervision and coordination.

Organizational culture: Nestle's overall organizational


culture, which emphasizes teamwork, collaboration, and
employee empowerment, may favor a wider span of control,
as it allows for greater autonomy and decision-making at
lower levels.

2. Managerial Factors:

Manager's experience and skills: A manager's experience,


skills, and ability to handle multiple responsibilities can
influence the span of control. More experienced and skilled
managers may be able to effectively supervise a larger
number of direct reports.

Manager's communication and leadership abilities: Strong


communication and leadership skills are essential for
managing a wider span of control. Effective communication
ensures that employees are informed and aligned with goals,
while strong leadership fosters teamwork and motivation.
3. External Factors:

Market dynamics: The pace of change and


competitive intensity in the market can influence
the span of control. In a rapidly changing market,
a wider span of control may allow for faster
decision-making and adaptation to local
conditions.

Geographical dispersion: The geographical


dispersion of Nestle's operations can also impact
the span of control. With operations spread
across different regions, a wider span of control
may empower local managers to make decisions
tailored to their specific markets.

Nestle carefully evaluates these factors to


determine the optimal span of control for each
manager. The goal is to strike a balance between
efficiency, responsiveness, and employee
development. A well-defined span of control can
lead to improved productivity, increased
employee engagement, and better decision-
making across the organization.
SOURCES OF
RECRUITMENT
Recruitment is the process of identifying, attracting, and
selecting qualified individuals for a specific job or role
within an organization. It plays a pivotal role in ensuring the
right talent is acquired to meet organizational goals.
Effective recruitment is vital for building a skilled and
diverse workforce, enhancing team performance, and
fostering innovation. It directly impacts a company's
competitiveness, productivity, and overall success.
Successful recruitment aligns individual skills with
organizational needs, creating a dynamic and efficient
workforce that contributes to sustained growth and
adaptability in a rapidly changing business environment.
Here below are the sources of recruitment used by Nestle
India:

Internal Sources:
Promotion: Recruitment through promotion is when a
company fills an open position by promoting someone
from within the company. This can have many advantages,
including:
Increased employee engagement and morale:
Employees feel valued and motivated to grow their
careers within the company.
Reduced costs and time: Filling positions internally is
often quicker and cheaper than recruiting externally.
Improved cultural fit: Promoted employees already
understand the company culture and values.
Enhanced knowledge and skills: Promoted employees
bring their existing knowledge and skills to the new
position.
Stronger leadership pipeline: Promotes a culture of
continuous learning and development.
Overall, recruitment through promotion can be a win-win
for both the company and its employees.

Transfer: Recruitment through transfer means filling open


positions by moving existing employees within the
company. This can offer several advantages:
Increased employee engagement and morale:
Promotions and internal movement can motivate
employees and foster loyalty.
Reduced recruitment costs: No need for external
advertising or headhunting fees.
Faster hiring process: Existing employees are already
familiar with the company and its culture.
Improved cultural fit: Transferred employees already
understand the company's values and expectations.
Development opportunities for employees: Provides a
chance for growth and promotion within the company.
Overall, recruitment through transfer can be a win-win
situation, both for employers and employees.

Referrals: Recruitment through referrals involves


employees recommending qualified people they know for
open positions. This brings several advantages:
High-quality candidates: Referrals often come from
someone familiar with the company culture and values,
increasing the chances of a good fit.
Faster hiring: Trust in the referrer's judgment can
speed up the hiring process.
Reduced costs: Referrals can be cheaper than using
external recruitment agencies.
Increased employee engagement: When employees
feel their recommendations are valued, they can feel
more connected to the company.
Overall, recruitment through referrals offers a cost-effective
way to attract high-quality candidates and enhance
employee engagement.

External Sources:
Recruitment through Advertising: It involves reaching out
to potential candidates by placing job postings on
websites, social media, or in print publications. This method
is effective for reaching a large pool of qualified candidates,
especially those who are actively looking for jobs.
Here are some advantages of recruitment through
advertising:
Wide reach: Ads can be placed in various platforms,
reaching a large number of potential candidates.
Targeted advertising: Ads can be tailored to specific
demographics, skills, and job requirements.
Cost-effective: Advertising can be a cost-effective way
to attract qualified candidates, especially compared to
other recruitment methods like headhunting.
Increased brand awareness: Advertising can raise
awareness of your company and its open positions
among potential candidates.
Fast recruitment: Advertising can help you fill open
positions quickly, especially for in-demand roles.
However, it's important to note that advertising is just one
part of the recruitment process. You'll still need to screen
applications, interview candidates, and make hiring
decisions.

Campus recruitment: It is when companies visit colleges


and universities to recruit students for internships and
entry-level jobs. It's a way for companies to find young
talent and for students to get valuable work experience.
Here are three benefits of campus recruitment:
Access to young talent: Companies can connect with a
pool of recent graduates who are eager to learn and
contribute to the workforce.
Reduced costs: Hiring through campus recruitment
can be cheaper than using other sources, such as
headhunters or online job boards.
Stronger employer brand: Companies can build
relationships with students and faculty, which can help
them attract top talent in the future.

Third parties: In recruitment


through third parties,
companies hire an agency to
find and hire candidates for
them. This can be helpful for
companies that lack the time or
expertise to conduct effective
recruitment themselves.
Advantages:
Wider pool of candidates: Agencies have access to a
large network of potential candidates, including those
who may not be actively seeking a new job.
Specialized expertise: Agencies specialize in finding
and hiring candidates for specific industries and roles.
Reduced time and cost: Agencies handle the time-
consuming and costly tasks of recruitment, freeing up
internal HR staff for other priorities.
Improved hiring outcomes: Agencies can help
companies hire top talent by using their expertise to
identify and assess candidates.
This approach can be beneficial for companies seeking to
fill specific roles, but it's important to consider potential
downsides, such as agency fees and the possibility of not
finding the best fit for the company culture.
STEPS OF SELECTION
PROCEDURE
Nestle's selection procedure is a multi-step process designed
to identify and hire the best candidates for open positions.
Here's an overview of the typical steps involved:
Application Review: Nestle reviews applications against
the position requirements and qualifications. This initial
screening helps identify potential candidates who meet the
basic criteria.
Online Tests: Depending on the role, candidates may be
required to take online tests to assess their aptitude, skills,
and knowledge relevant to the position. This helps further
refine the pool of candidates and identify those with the
necessary capabilities.
Skill Assessments: In specific cases, candidates may be
invited to participate in practical skill assessments to
evaluate their competence and ability to perform the
essential tasks of the job. This provides a more hands-on
evaluation of their skills and suitability for the role.
Group Discussions: For certain positions, Nestle may utilize
group discussions to assess candidates' communication,
teamwork, and problem-solving skills. This provides insights
into how candidates interact with others and contribute to
a team environment.
Interviews: Shortlisted candidates typically participate in
interviews with Nestle representatives. These interviews
allow for a deeper evaluation of the candidate's
qualifications, experience, personality, and cultural fit.
Reference Checks: Nestle may contact references provided
by candidates to verify their employment history,
performance, and overall suitability for the position. This
helps gather additional information and confirm the
candidate's qualifications.
Final Selection and Offer: After considering all information
gathered through the selection process, Nestle makes a
final decision on the best candidate for the position. The
chosen candidate receives a job offer outlining the terms
and conditions of employment
ACKNOWLEDGEMENT

I would like to extend my heartfelt


gratitude to my Accounts teacher, Tr.
Priya Ambe for assigning us this project
as our term 2 assignment and giving us
a wonderful opportunity to enrich our
knowledge more on the functions of
management and learn it through the
lens of Nestle.It has helped me
understand this concept in a better
way.

I would also like to thank all my friends,


family for their support,understanding
and encouragement and specially all
those who answered my survey and
helped me successfully complete my
assignment on time
CONCLUSION
In conclusion, delving into Nestle's management
functions, including organizational structure,
sources of recruitment, steps of selection, span of
control, centralization, and decentralization,
reveals a holistic approach to effective leadership.
Nestle's well-defined organizational structure
ensures clear communication and efficient
workflows. The diverse sources of recruitment
showcase a commitment to talent acquisition,
while meticulous steps in selection ensure a
qualified workforce. The company's optimal span
of control balances authority and responsibility,
fostering agility. Nestle's strategic blend of
centralization and decentralization exemplifies
adaptability and efficient decision-making. As
aspiring managers, we learn that a
comprehensive understanding and adept
application of these elements are pivotal for
navigating the complexities of modern business
environments.
GLOSSARY
Organizational structure: It shapes roles, relationships, and
communication, vital for efficient workflow, coordination,
and achieving collective goals in businesses.
Centralized: A centralized organizational structure is one in
which decision-making authority is concentrated at the top
of the company. This means that senior managers have the
final say on all major decisions, and there is relatively little
autonomy for lower-level employees.
Decentralized: A decentralized organizational structure is
one in which decision-making authority is distributed
throughout the company. This means that lower-level
employees have more autonomy to make decisions about
their work, and senior managers are typically responsible for
setting overall goals and strategies.
Hierarchy: refers to a system of organizing individuals or
elements in a graded or ranked series, typically based on
authority or importance.
Span of control: Span of control refers to the number of
subordinates or tasks that a manager can effectively
supervise or control within an organizational structure.
Manager: A manager is someone who oversees and directs
the work of others. They are responsible for planning,
organizing, and coordinating the activities of their team to
achieve a common goal.
GLOSSARY
Unity of command is a management principle
that emphasizes a clear reporting structure,
where each employee receives orders from and
is accountable to only one supervisor.
Unity of direction is a management principle
that emphasizes the need for a single, cohesive
plan of action to ensure all organizational efforts
align toward common objectives.
Delegation of authority is the transfer of
decision-making powers and responsibilities
from a superior to a subordinate within an
organizational hierarchy, promoting effective
task distribution and organizational efficiency.
THANK YOU !

You might also like