Introduction Organizations mostly succeed by virtue of their workforce, work culture, organizational values and their policies and

practices. If any of these factors are lacking in the organization then the organizations fail in achieving their objectives and goals & all these factors could be maintained if we are able to manage the resources of the organization(employees, shareholders, stakeholders and investors) thus human resource management is quite essential in accomplishing the goals of the organization. Human Resource is a basic need of any work to be done. According to ARTHUR LEWIS: There are great differences in development between countries which seem to have roughly equal resources, so it is necessary to enquire into the difference in human behaviors . Importance of Human Resource Management Make organization policies Make organization strengthen by enlisting regulations and roles to its people Ensure health and safety at workplace Handle change in the organization Attract highly qualified and competent people Ensure thats the selected candidate stays longer with the company. Make sure that there is match between cost and benefit. Helps the organization to create more culturally diverse workforce Moreover, when recruitment fails to meet organizational needs for talent, a typically response is to raise entry level pay scales. This can distort traditional wages and salary relationship in organization, resulting in unavoidable consequences. Thus the effectiveness of the recruitment process can play a major role in determining the resources that must be expended on other HR activates and their ultimate success. This report is based on the in-depth analysis of the human resource practices of the two organizations from different sectors namely HUL (FMCG SECTOR) and NESTLE and these organizations are compared on the following parameters:

Human resource practices Leadership styles Organization culture Types of teams / groups at workplace Power differentials

Organizations profile: H.U.L & NESTLE 1- Hindustan Unilever ltd.

Chairman: Mr. Harish Manvani CEO: Mr. Nitin Paranjpe Hindustan Lever Ltd (HLL) is India's largest Fast Moving Consumer Goods (FMCG) Company. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). The three companies were merged in November 1956 and the new entity that came into existence after merger was called as

Hindustan Lever Limited. HLL offered 10% of its equity to the Indian public, and it was the first among the foreign subsidiaries to do so. Currently, Unilever holds 51.55% equity in the company while the rest of the shareholding is distributed among about 380,000 individual shareholders and financial institutions. HULS brands : It constitutes - food care , home care, health care, personal care, nutrition, water , health hygiene & beauty care brands . The brands like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's are household names across the country. Its Principal Competitors: Nirma Ltd.; Jocil Ltd.; Nahar Industrial Enterprises Ltd.; Shrihari Laboratories P Ltd.; Ruchi Infrastructure Ltd.; Procter & Gamble Hygiene and Healthcare Ltd.; Amrit Banaspati Company Ltd.; Henkel SPIC India Ltd.; K S Oils Ltd.; Ultramarine and Pigments Ltd.; Vashisti Detergents Ltd. Sustainability strategies: HUL s sustainability lies in the following points discussed below Unilever Sustainable Living Plan: it believes in small actions , big difference. Thus the Plan contains over 50 concrete targets that will-Help more than one billion people improve their health and well-being -Halve the environmental impact of our products -Source 100% of our agricultural raw materials sustainability

Society & csr activities : Creating a positive impact

In 2009, HUL contributed INR 30 crores towards community related initiatives. Its contribution in 2009, went either to long-term community investment partnerships or to commercial initiatives, with mutual benefits for both -business and partners. It also identified water conservation as an issue we would like to focus our energies on. So hul worked in close partnership with its stakeholders to conserve precious drops of water. Water management has been a key area of focus for HUL across the entire value chain. Therefore it engaged in community projects to conserve water. It aims to conserve more than 20 billion liters of water by 2015. HUL has embarked Dadra & Awards & recognition: These are some highlights of recognition HUL has received from external bodies on its social, economic and environmental performance during 2009 and 2010 Awarded for Best Corporate Social Responsibility Practice at the Social & Corporate Governance Awards 08-09 by BSE, Nasscom Foundation and Times Foundation Awarded as top Indian company in the 'FMCG' sector for the third consecutive year at Dun & Bradstreet-Rolta Corporate Awards, 2009

2- NESTLE

Nestle India Limited is an India-based company engaged in the food business. The food business includes milk products and nutrition, beverages, prepared dishes and cooking aids, chocolates and confectionary. The Company is a part of the Nestle Group. The Companys brands include NESTLE EVERYDAY Dairy Whitener, NESTLE EVERYDAY Ghee, NESTLE Milk, NESCAFE CLASSIC, NESCAFE

SUNRISE Premium, NESCAFE SUNRISE Special, MAGGI 2-Minute Noodles, MAGGI Sauces, MAGGI Bhuna Masala, NESTLE KIT KAT, NESTLE KIT KAT CHUNKY, NESTLE MUNCH and NESTLE MUNCH POP CHOC. On January 1, 2010, the Company completed the acquisition of the healthcare nutrition business from Speciality Foods India Private Limited. Competitors of Nesle ConAgra, Danone, and Kraft Foods are the top 3 competitors for Nestle Engro foods and Haleeb foods also competitors of nestle Nestle India Limited Nestle is planning to invest Rs 6 billion in India in 2009 for expansion of its business in the country.The company which has allotted an investment of Rs 3 billion in the Indian market in 2008, would be doubling the investment in 2009 as part of its business strategy. Nestle International is reinvesting and expanding in India and Nestle India will have all the financial resources to expand and grow from the parent company. Nestle India reported a good increase in its standalone net profit for the second quarter.During the quarter, the profit of the company rose 26.54% to Rs 1,210.90 million from Rs 956.90 million in the same quarter, last year. The company posted earnings of Rs 12.56 a share during the quarter, registering 26.61% growth over prior year period. Net sales for the quarter rose 23.45% to Rs 10,356.30 million, while total income for the quarter rose 23.78% to Rs 10,423.40 million, when compared with the prior year period. COMPARATIVE ANALYSIS BETWEEN HUL AND NESTLE ORGANISATION STRUCTURE HUL The Board of Directors as repositories of the corporate act as a guardian to the Company as also the NESTLE The fact that Nestl is more people and product than systems

protectors of shareholders interest. This Apex body comprises of a Non- Executive Chairman, four whole time Directors and five Independent Non Executive Directors. The Board of the Company represents the optimum mix of professionalism, knowledge and experience

oriented is reflected in the way HR is functioning and is organized.

HUMAN RESOURCE POLICIES & PRACTICES HUL It focuses on its organizational values that is sustainable strategies in order to retain its employees , maintain stability in the society, csr activities that makes the corporate recognition NESTLE Its main focus is the human resource policies Dealing with People Work/Life Balance Professional Development Industrial Relations HR Organization

DETAILED HR Practices OF HUL TRAINING & DEVELOPMENT HUL is employee focused organization. Training includes Job related training or Personality development training. Some of the programmes are as follows: Business Leadership Training programmes. There are 2 firms for training of employees. Accenture deals with Job related training which employee must needed for better performance. UDICHEE is dealing with personality development issues and conduct 2-3 days workshops at respective training centers. ( Mumbai: CBD /Belapur). Leadership development programmes TRAINING MODULES: Classroom Training . Audio-visual based Training. E-modules.

 Outdoor training. HEALTH AND SAFETY PRACTICES: HUL undertakes various practices to ensure Health and Safety of employee on the job as well as off the job. HUL Focused on mainly 3 Types of Safety: -Personal level. -Occupational safety -Behavior-based safety: Personal Level Safety Practices: This includes wide periodical activities such as one-to-one discussions, wellbeing workshops and awareness campaigns. 1-Ergonomic design of work-stations has also helped in minimizing work related muscular or skeletal disorders 2- HUL has introduced an initiative called the Vitality Index which covers all our employees and colour codes (green, amber and red) them based on their state of health Occupational Safety Practices: 1-Safety is driven top-down and supported by demonstrated leadership. 2-Safety performance is governed through the Central Safety Health and Environment Committee (CSHEC) which is responsible for strategic direction on occupational safety and health issues. 3-All manufacturing units conform to Unilever's internal safety, health and environment Framework Standards (FWS) modeled on ISO-14001 and OHSAS 18001 BEHAVIOR BASED SAFETY:

1-HUL has partnered with DuPont to achieve leadership and excellence in their safety performance. -HUL has established systems for 'safety engagement with employees' to proactively identify unsafe acts and unsafe conditions. -All managers and executives in the factory have leading indicator targets for behavioral audits, Safety Action Meetings (SAM), hazard identification, and system checks. The target for leading indicator is more than one safety engagement per employee, per month. HUL maintain good communication channels with employees through company based information and consultation procedures. -CEO report back: Quarterly performance updates from the CEO to the employees. Conducted at the Head Office, webcast to all sites -Annual Review: All managers are invited to the Annual Review in four major metros -Young Managers Lunch with CEO: Every month the CEO meets about 1015 young managers and has informal chat sessions about the organization and receives their feedback. Ur Say: an online portal through which employees can give suggestions addressed to the Management committee on any aspect of the organization Hamara: Our in-house magazine provides a platform to employees to connect, bond, inspire and express DETAILED HUMAN RESOURCE POLICIES & PRACTICES AT NESTLE PEOPLE ENGAGEMENT: The Nestl Management and Leadership Principles describe the management style and the corporate values of the Nestl Group, specifically in the area of interpersonal relations. Their respect calls for specific attitudes which deserve to be outlined in the present policy:

-A prerequisite for dealing with people is respect and trust. There can be no room for intolerance, harassment or discrimination of any kind as they are the expression of an elementary lack of respect. - Transparency and honesty in dealing with people are a sine qua non for efficient communication. Based on facts and on a sincere dialogue, such transparency is the only solid basis for boosting continuous improvement. - This is to be complemented by open communication with the purpose of sharing competencies and boosting creativity. It is particularly relevant in a flat organisation to convey systematically all information to those who need it to do their work properly. Otherwise no effective delegation or knowledge improvement are possible. _ To communicate is not only to inform. It is also to listen and to engage in dialogue. Every employee has the right to an open conversation with superiors or colleagues. _ The willingness to cooperate and to help others is a required basis for assessing potential candidates in view of a promotion. _ In case of discord between an employee and her/his superior or another employee, the possibility must be offered for a fair hearing. The HR staff will provide assistance to ensure that the disharmony is dealt with impartially and that each party has the opportunity to explain her/his viewpoint regardless of hierarchical position. Worklife balance Nestl is willing to support employees who wish to take an active part in the life of the community or by assuming responsibilities in professional, civic,

cultural, religious or voluntary organisations it being understood that any activity during working hours be first approved by the Company. In the same spirit, Nestl Encourages flexible working Conditions whenever possible and Encourages its employees to have interests and motivations outside work. PROFESSIONAL DEVELOPMENT Learning is part of the Company culture. Each employee, at all levels, is conscious of the need to upgrade continuously her/his knowledge and skills Training programs organised at the International Training Centre Rive-Reine aim at developing and sharing best practices of the various management disciplines practised in the Group. They also strive to strengthen corporate cohesion as well as to promote networking throughout the Group. It is necessary to make optimal use of e-learning programs as a complement to or a substitute for formal training programs. According to needs they should be made available at shop floor level and enlarge the access to training. It is the role of each manager to assess progress achieved as a result of training programs.

Assessing and Developing Each employee is in charge of her/his own professional development. However, the Company endeavours to offer the opportunity to progress for those having the determination and the potential to develop their capabilities Industrial relations