Control Management Approach Of Nestle Organization

Control Issues of Nestle

Question:

Choose an organization with which you are familiar, either as a customer or as an employee, and outline how that organization makes use of the control systems which you have chosen to discuss/analyse. Students are to present their analysis and findings/ conclusions in a professionally presented short report of 1500 + 10% words.

Abstract

Nestle organization is confronting different control issues like child labour issue, crude material issue, moral as well as issues related to boycott, rebuilding of association and numerous different issues. For taking care of these control issues, different control systems ought to be utilized by an association. With the help of employee discipline system, the association controls its representatives or its human resources. This procedure is fundamentally performed by the HR Managers and the stock control system, which helps the company in adjusting the demand as well as supply, both for the raw material and generation of product

Introduction

In this report, we are going to discuss about Nestle Organization. It is essentially going to depict how control model can help the Nestle Organization in taking care of their control issues. It will, likewise, portray the outline of Nestle, control issues which is associated with it, how representatives order system and stock control system can help Nestle to take care of the control issues related to it.

Henry Nestle established Nestle in the year 1866, in Switzerland. Nestle has a range of food products to offer to its customers. The renowned brands of Nestle are Maggi, Kit Kat, Gerber, Toll House, Milo, Nescafe, Coffee mate, Friskies, Purina, Hot Pockets, Herta, Stouffer’s, NIO, Dreyer’s and so on. Nestlé’s slogan “great food, great health” itself explains the strategy that is applied by the company. Nestle is mainly famous as it provides food of good quality which are healthy as well as tasty. The managers at Nestle, are in charge of all the administrative exercises like Quality administration, Process administration, as well as control management. Even after so many issues in its control system, Nestle is the Leading brand in food products only because of its control management approach (Ehrenberg, 1995The quality as well as well-being of Nestlé is the base of the association. Nestlé’s quality control management incorporate the building of trust by gathering the desires as well as preferences of the customers, giving defect less items with zero waste attitudes

There are many control issues of Nestle. Some of the control issues are discussed below:

1. Child Labour Issue: The most important issue of Nestle association is child labour. The children made to word while producing cocoa. Children do this work because of neediness and due to illiteracy which prompts the infringement of the child labour law and goes under child trafficking and slaving (Park & Sandhu, 2002).
2. Raw Material: The other issue identified with control issue, is the control on its raw material. This issue is identified with the unforeseen requests. Here and there the interest may be high and can’t be satisfied, ordinarily crude materials get destroyed because of awful climate or catastrophe, or frequently the inventory may stay in the stock itself.

1. Issues related to ethics and boycott: This issue was confronted by Nestle in 1970’s. In the late 1970s, in United Stated as well as in other European countries, the products of Nestle were boycotted.
2. Restructuring: Defining the employees as well as the structure of the management of the association is additionally a basic control issue which goes under the representative control issue (Park & Sandhu, 2002)

Control System

In the Organization, controlling guarantees the performance analysis and also aides in taking the restorative activities. Mainly three sorts of controls are there, Feed forward control, Concurrent Control as well as Feedback Control. Before initiating the activities, Feed forward controls are initiated, Concurrent control happens amidst the process and at last, feedback control happens after the work is completed (Bilstad & Brown, 1984)

Figure: Control Process (Schermerhorn, 2008)

The above diagram demonstrates the control process which has four steps. The first step is to create the objective as well as standards of performance, step two is to quantify the real performance of the control region. In third step, it compares the actual performance to the goal and measures, and the last step is to take all the fundamental actions.

The Control Process

This report discusses about two control models. They are discussed as follows:

1. Employee Discipline system: Employee Discipline System is an approach of employee control. This tackles the different controlling issues identified with the association. This control system gives the control reasonably, methodically and reliably. It incorporates the conduct and disposition treatment of workers, adulating them on their execution and also influencing the representatives to perform more work. This control system additionally incorporates the legitimate issues identified with the representatives, like child labour and other legal issues. This control system helps in dealing with the workforces that are primarily performed by the HR managers (Schrage & Ewing, 2005).
2. Inventory Control System: Inventory control system helps in dealing with the interest and supply of the products. This control framework helps an association in different courses like performing and dealing with the demand and as per that demand, the products are delivered and raw material is obtained. Inventory control system ascertains an estimated demand from the past information and afterwards the production methodology is transformed. It helps the association by saving cash, time and prevent the wastage of merchandise and crude materials. This is also one of the responsibilities of the inventory managers. It incorporates the two sorts of stock control techniques: Economic Order Quantity (EOQ) and just-in-time scheduling (Bilstad & Brown, 1984).

Two separate purposes are taken care of with the help of the control systems. Employees control system, is for controlling the human asset in an association. It is important to control the human assets as this is the base of the development of an association, while the stock control system is additionally a basic control system of an association, because if the inventories are not controlled appropriately, it may prompt a gigantic misfortune regarding wastage of products, crude material or not satisfying the market’s demand (Sethi, 1977).

In the two control system, the employee discipline system incorporates the administration of representatives which contains the courses of action of compensating the workers if they perform good in numerous ways like giving promotion, rewards and so on., which influences them to work hard in different ways like inspiration, remunerating project, giving appealing offers etc. While the stock control system incorporates assessing the demand of items in the businesses so that the crude material can be bought, products can be delivered, and interest can be satisfied successfully so that no material gets wasted and also demand is fulfilled (Sethi, 1977).

These two sorts of control systems are performed by two separate sorts of managers who has the duty to perform all the exercises identified with the control system. These control systems help the association in various perspectives and steps towards the development by waste prevention, demand fulfilment and enhancing worker performance by lawful exercises (Park & Sandhu, 2002).

As we discussed about the control issues of Nestle which was related to the employee control system and stock control system. Association structure as well as child labour are the issues which go under the Employees’ discipline system whereas, raw material and the issue of boycott goes under the Inventory Control System (Park & Sandhu, 2002).

As discussed earlier, in the employee discipline system, Legal issues identified with the representatives go under this framework. Hence, this system can help Nestle by presenting the supplier code which screens the production network of all members which, in-turn, helps the organization to track if all the workers in the production network are qualified to work or not. Likewise, a unique training by the HR managers ought to be accommodated for the problem of child labour (Park & Sandhu, 2002).

In the organization’s restructuring, the rights of all the employees should be protected. All the employees should get a fair treatment and equal opportunity.

There are three cases in which a raw material might turn into a control issue. Firstly, in case there is an unforeseen request by the consumers or the raw material is wasted because of a natural disaster or if the stock is not utilized. The solution which is related with this issue may be that, the managers ought to fabricate a solid association with the suppliers of the raw materials. Different offers ought to be given to pull in the customers and the stock management team should modify themselves as per the market situation (Sethi, 1977).

Boycott issue was a genuine issue confronted by Nestle because of unscrupulous showcasing and awful item supply. Thus, the populace of United States declines to purchase Nestle items. Stock control management system incorporates the correct supply of items (Sethi, 1977).

Conclusion

The above report is based on different research and studies. As per the above report, it can be said that the control systems are a key to the management system of an association. The employee discipline system relates to controlling the employees. The employee control system helps Nestle in different courses like in the child labour control issues and the rebuilding of the association, which helps the company in controlling its employees. Stock control system helps Nestle in controlling the crude material for production. Consequently, these control systems help the association in its development by saving cash, time as well as creating enthusiasm within the workers.

References

Sandhu, R. S., Coyne, E. J., Feinstein, H. L., & Youman, C. E. (1996). Role-based access control models. Computer, 29(2), 38-47.

Park, J., & Sandhu, R. (2002). Towards usage control models: beyond traditional access control. In Proceedings of the seventh ACM symposium on Access control models and technologies (pp. 57-64). ACM.

Sethi, S. P. (1977). Dynamic optimal control models in advertising: a survey. SIAM review, 19(4), 685-725.

Bilstad, A. C., & Brown, R. I. (1984). U.S. Patent No. 4,425,116. Washington, DC: U.S. Patent and Trademark Office.

Schrage, E. J., & Ewing, A. P. (2005). The cocoa industry and child labour.Journal of Corporate Citizenship, 2005(18), 99-112.

Ehrenberg, D. S. (1995). Labor Link: Applying the International Trading System to Enforce Violations of Forced and Child Labor, The. Yale J. Int’l L., 20, 361.

Figure: Schermerhorn, R. John, (2008). Exploring Management. 4^th ed., London: Cram101