Comment on the Process for Control

Comment on the process for control

Type of control

To maintain a company with such big size, a lot of rules are implemented. In this situation, management control plays an important role for the company. Control is a regulatory process of establishing standards to achieve organizational goals, comparing actual performance against the standards and taking corrective action when necessary. There are 3 methods of control, which are feed forward control, concurrent control and feedback control.

Feed forward control is a mechanism for gathering information about performance deficiencies before they occur. In contrast to feedback and concurrent control, which provides feedback on the basis of outcomes and results, feed forward control provides information about performance deficiencies by monitoring inputs, not outputs (Williams and McWilliams, 2010). Feed forward controls are helpful to managers because they allow a manager to plan work effectively; they can regulate resources like employees, raw materials and capital ahead of time. The company ensures that all Nestlé units have the necessary systems in place to deliver the same level of basic safety and health protection for all employees to avoid incidents. Nestle follows their slogan of “good food, good life” by training their employees to produce high quality products.

Concurrent control is a mechanism for gathering information about performance deficiencies as they occur. Thus, it is an improvement over feedback, because it attempts to eliminate or shorten the delay between performance and feedback about the performance. Nestle factory uses concurrent controls when decisions simply cannot be made based on a preventative approach. As problems can arise during an activity, rather than wait until the entire work activity is completed concurrent controls allow managers to monitor work as they occur. Some of the areas of an organization that benefit from concurrent controls are production and employee behavior.

Feedback control is a mechanism for gathering information about performance deficiencies after they occur. This information is then used to correct or prevent performance deficiencies. Study after study has clearly shown that feedback improves both individual and organizational performance. In most instances, any feedback is better than no feedback. However, if there is a downside to feedback, it is that it sometimes occurs too late. Sometimes it comes after big mistakes have been made. Nestle likes to listen to feedback from their employees and customers. According from the negative feedback, Nestle company tries to solve these problems. Other than that, Nestle company does research about what their customer want and try to create something new.

Operational and financial controls

Operational control

There are various definitions for what constitutes operational controls, but it really comes down to one common theme: the power of management over daily activities. In business, operational controls regulate the day-to-day activities via the formulation of policies and execution of procedures. As management, each employee knows best the ultimate goals for business as well as he is responsible for setting a course to accomplish them. This includes not only developing the corporate policies and procedures intended to accomplish your goals, but also enforcing, and in some cases, modifying these policies and procedures. The policies of the organization serve as a protocol to guide decisions and achieve outcomes.

Strong operational controls are correlated to lower fraud risks; certain policies and procedures must be in place to reduce the likelihood of fraud.

Summary of corporate policies

1. Nutrition, Health and Wellness

Nestle’s core aim is to enhance the quality of consumers’ lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. It express this via corporate proposition Good Food, Good Life. Guided by commitment to Nutrition, Health and Wellness, employees work to increase the nutritional value of  products while also improving taste and enjoyment. Nestle also develops brand communication and information that encourages and empowers consumers to make informed choices about their diet.

2.Quality assurance and product safety

Everywhere in the world, the Nestlé name represents a promise to the consumer

that the product is safe and of high standard. The commitment is never to compromise on the safety of any product. Our Quality Policy summarises the essentials of our passion for excellence:

•         to build trust by offering products and services that match consumer expectation and preference;

•         to comply with all internal and external food safety, regulatory and quality requirements.

Quality is everybody’s commitment. The company continuously challenges itselves in order to constantly improve and achieve the highest levels of quality. It maintains the same high food safety standards in all countries in which it operates. Nestle ensures the delivery of high quality products through Quality Management System.

3. Consumer communication

Nestle’s employees are committed to responsible, reliable consumer communication that empowers consumers to exercize their right to informed choice and promotes healthier diets.The company respects consumer privacy.

The core business strategy is built around helping consumers to have a balanced, healthier diet. The Nestlé Consumer Communication Principles contain mandatory rules on marketing communication to all consumers, including accurate representation and portrayal of foods in a way that does not encourage over-consumption. In addition, specific principles guide communication to children including no advertising or marketing activity to children under 6 years of age. Advertising to children from 6 to 12 years is restricted to products that meet predetermined nutritional profiling criteria, including clear limits on energy and health-sensitive ingredients such as sugars, salt, saturated fat and trans fatty acids. The children’s communication principles are specifically aimed at protecting children by ensuring that the advertising is not misleading, does not undermine parental authority or generate unrealistic expectations of success, create a sense of urgency or allude to a sense of low price.

4. Human rights in our business activities

Nestle fully supports the United Nations Global Compact’s (UNGC) guiding principles on human rights and labor and aims to provide an example of good human rights and labor practices throughout our business activities.

The company

•         supports and respects the protection of international human rights within  sphere of influence (UNGC Principle 1);

•         makes sure that it is not complicit in human rights abuses (UNGC Principle 2);

•         is against all forms of exploitation of children;