Assignment 1: HR Practices and Business Strategy at Unilever

Assignment 1

Executive Summary

This report analysed the importance of HR practices to the business strategy of Unilever. The importance of the right skills in the organisation to achieve the strategic objectives of the organisation were examined. There was evaluation of the different HR practices at Unilever for the training and development of employees. The report examined the career management practices in the organisation and analysed its implementation across the HR life cycle. The effectiveness of the different measures undertaken by the organisation to improve the quality, performance and retention of the workforce was evaluated. The role of HR in the implementation of the business strategy of implementation was also examined.

Introduction

Human resource management (HRM) is practising people management to attain better performance (Michael, 2019). HR is an essential aspect of a successful business strategy. HR department realises significance of keeping workers focus on the financial goals of the company while offering opportunities for their advancement or growth. In this study, there will be an analysis of culture, processes, and structures in the international and domestic setting. The tools for managing talent at the global level will be explored. Additionally, HR practices contribution to strategic management of Unilever will be evaluated.

Unilever is a multinational consumer goods organisation based in Britain and is headquartered in London. This plc was formed in 1929 and its products are traded in about 190 countries (unilever.com, 2019). Moreover, it has more than 400 brands.

Task 1 – Presentation

Introduction

Human resources can be defined as the workforce that utilises its skills and capabilities to achieve the objectives of an organisation (Sankova et al., 2020). The HR practices of organisations are often different for various markets to account for the differences in societies and the factors that motivate, satisfy, encourage and retain individuals in those societies. This presentation will examine the differences between the HR practices of Unilever in its UK market in comparison with those in international markets. The issues which contribute to the differences in HR practices will be examined and evidence will be presented for differences between markets. The presentation will also analyse how social, legal, economic and cultural factors contribute to differences in HR practices.

Unilever is a manufacturer and seller of consumables in various product categories. The organisation was founded in 1929 as a merger between parent companies who specialised in the manufacture of consumables such as margarine and soap (unilever.co.uk, 2021). The organisation employs over 150,000 personnel and generates £40.79 billion in annual revenue (owler.com, 2021). The organisational structure of Unilever is divisional which is based on regions as well as product categories.

Differences in HR practices of Unilever in UK and international markets

The pay offered by organisations to their employees is an important aspect of HR practice. The level of pay received can make a different to the motivation of an employee by helping them meet basic needs and to achieve a certain level of lifestyle (De Vito et al., 2018). A prime example of Unilever’s different HR practices in different HR markets are in the different levels of minimum wages that are paid in each of these markets. According to the organisation, the differences in pay levels are because of the differences in the expenses of a certain quality of life and according to the needs of the market (unilever.com, 2021). The holidays and leave policies of Unilever in different markets are different according to the employment laws and other regulations of different jurisdictions. The organisation cannot have the same HR practices around the world because of the different requirements of different markets.

The issues that contribute to the differences in HR practices

Social issues – Some societies may prioritise wealth while others can value position and prestige. Differences in social values can lead to differences in HR practices to attract, motivate and retain employees.

Legal issues – Different countries have different degrees of labour protection, minimum wag regulations, and holiday and working hour policies.

Economic issues – There are different economic factors that contribute to variations in HR practices such as level of salaries, inflation, wages offered by competing organisations and living costs.

Hofstede’s Cultural dimensions

Hofstede’s cultural dimensions are a framework which help to understand the factors affecting workplaces and organisational culture (Kristjánsdóttir et al., 2017). There are six dimensions of national culture which vary from nation to nation and cause the HR practices of Unilever to be different.

Power Distance index – This is a measure of the acceptance that disadvantaged people have of their powerlessness. When it is low, people strive to change the situation and when it is high, people accept hierarchies in societies.

Individualism versus collectivism – The former stands for a loose social network while the latter involves loyalty to communities and strong responsibility for members of the collective.

Masculinity versus Femininity – Masculinist societies favour achievement, heroism and material success. Femininity stands for caring, modesty and quality of life. The former is competitive while the latter is cooperative.

Uncertainty avoidance index (UAI) – High UAI implies that society does not prefer uncertainty and does not tolerate new ideas. Low UAI leads to societies having relaxed approaches, were there is acceptance that anything can happen in the future.

Long-term versus short-term orientation – A low score on this dimension implies that societies regard changes with suspicion. A high score implies that there is encouragement for modern education to prepare for the future.

Indulgence versus restraint – Indulgence focuses on people enjoying themselves while restraint involves strict enforcement of social codes that suppresses gratification.

Figure 1: Average salaries of single employees in EU countries

(Source – statista.com, 2017).

The impact of countries on training and development of employees

Socio-economic impact – The level of education and skills of labour markets determine how much Unilever has to focus on the training and development of employees.

Institutional impact – The legal requirements for education and vocational training can impact the training and development needs for Unilever. Countries can also require organisations to train employees as a legal obligation.

Normative impact – Societies and employees may expect organisations to support them in career development. There can be social perceptions of employers as preparing employees for addition of greater value or as entities that purchase skills for achievement of organisational objectives.

Conclusion

It can be concluded that there are several factors in international markets which impact the HR practices of organisations. The differences in social, economic and legal factors contribute to different HR practices in different jurisdictions. The training and development activities of organisations can also be affected by factors in international markets.

For PPT, refer to appendix

Task 2: Individual report- Importance of HR practices to the business strategy

Introduction

This section will investigate the significance of HR practices to the business strategy of Unilever plc. The focus will be on its role in strategic management in achieving business goals both at international and local levels.

Importance of HR professionals

Human resources professionals are responsible for developing strategies to recruit and retain employees besides overseeing projects to promote productivity. According to Varma and Chavan (2019), HR has the role of aligning business values and mission. Unilever as a multinational corporation has the focus on developing high-quality services and products along with determining the best ways to market the goods. An effective HR department ensures that the company hires skilled individuals who would be able to meet organisational goals. It has the role of developing the right programs, events, and initiatives that can enhance staff performance to drive success. HR practices contribute to Unilever by supporting business strategy through maintaining adequate staffing. The major concern of the HR department is to ensure that there are sufficient staffs or employees in organisation to fulfil operational needs.

It has the part in ensuring that specific roles and positions are filled with people of right skills at the right time. Thorough market research is carried out to make sure that candidates are recruited from different platforms with varied skills and experience required for conducting different business roles. Besides this practice, HR handles dispute resolutions and labour relations. The team has the duty of ensuring that the firm is familiar with regulations of government considering wage, equal opportunity, and labour requirements. Compliance to the same aids business in avoiding liabilities or lawsuits when disputes occur. This is found that organisational cost control duty is also upon HR managers. They assist in conserving cost when creating benefit materials, compensation packages or employee assistance programs.

Implementation of HR at Unilever for business strategy

According to Al-Khaled and Fenn (2020), HR professionals have a role in optimising workers duties and leading them to the edge. It is found that Unilever HR focuses on ensuring employees' happiness to drive growth and success opportunities of business. The HRM has the responsibility of developing strategies at the global level as revealed from Unilever HR practices. This is found that Unilever HR conducts international campaigns throughout the globe so that the employees would provide their opinions and put forward their concerns about their situation and job. Such practices have enabled the business makes decisions as per employee opinions regarding the development of working conditions or enhancing benefits to motivate them into meeting organisational goals (Bekirogullari, 2019). Otherwise, lack of understanding of their concerns might have limited development opportunities of business that might have hindered success in some way.

It has launched Social Impact Hub to assist employees in findings social activities. This has enhanced communication and encouraged high-performance delivery. Involvement level of each employee however would be different that might have created a gap in its successful implementation. Even its subsidiaries are encouraged to create HR strategies. For instance, Unilever Kleve has invented a device to track job satisfaction and employee motivation regularly (celpax.com, 2016). The employees were needed to input their mood before existing to the device. The information helped the management to be aware of their satisfaction or dissatisfaction and improve strategies accordingly.

The small actions turn into making high profits and income generation opportunities due to the effective application of ‘Corporate Social Responsibility’ principles directed towards employees well being. This is found that Unilever has linked its corporate strategy to Human resource strategy and leadership enhancement. Its competency model known as 'Leadership for Growth Profile' or LGP is implemented worldwide. Based on this model, there are certain criteria for employee behaviours and employees are expected to be committed to development, create vision, boost growth through its application, and motivate each other. The purpose of this model application has been to enhance people behaviour and link the same with strategic goals. Conversely, the outcome of the same might be different as the behaviour of each employee is not similar.

Based on the unielver.co.uk (2017) HR management brochure, Unilever HR is a core function as it helps in creating a highly cultured environment when people of varied goals and skills would be able to have better future and have their fulfilment. There is a focus on managing diversity and offering benefits such as paternity and maternity pay. This inspires high productivity otherwise there would be negative response generated from the community. During COVID-19, HR management has the role of tackling crisis by ensuring health and safety, employee wellness, and engagement (Syed, 2020). The professionals of this department identify human potential and take care of them. They have the role of keeping them motivated during crisis and inspiring them so that they would be able to continue their activities for business continuity.

The HR of the company helps business strategy development by collaborating with other functions and supporting teams to grow their abilities as per the requirement of business to be able to win in the competitive market. HR expertise contributes to talent management tools development. This is found that HR individuals possess digital mindset to offer creative insights and implements change. They focus on building relationship with every member. Their negotiation helps the business in managing budget. This is already known that the HR manager has the opportunity of shaping HR policies based on international locations.

HR and Sustainability

Human resources strategic management are meant to follow ‘United Nations’ ‘Sustainable Development Goals’ of ensuring good health and wellbeing of employees and making collaboration with them to attain business goals. It promoted positive mental and physical health environment so that the people would be able to thrive. It empowers employees to be the best in what they do and support them to work ensuring safety. There are Medical and Occupational Health Strategy along with a range of local and global programmes (unilever.com, 2021). This ensures that risk associated with health can be overcome across business functions. The major focus is on mental health, ergonomic factors like repetitive strain injury and lifestyle factors such as obesity, smoking, nutrition or exercise. The primary elements of this strategy are to protect and promote health. The HR emphasises on identifying occupational hazards and removing or reducing potential harm using legislation as standard. It delivers targeted interventions after determining health hazards both psychological and physical. There is focus on preventing occupational diseases or work-related illness. The purpose is to manage ergonomics, protect employees from harsh noise, conduct enzyme related surveillance, and delivering occupational health through ‘World Class Manufacturing Programme’ to factory labours.

Wellbeing of employees

Mental health initiatives are promoted worldwide that is focused on its 'Lamplighter Programme’ (unilever.com, 2021). It also guides on HIV, diabetes, and musculoskeletal problems. Pressure management, communication, management, and leadership are some ways to tackle this problem. The working environment is improved through providing flexible working arrangements such as reduced hours or job-sharing. Besides this, The ‘Well-being Framework’ is a holistic method that is dedicated to support workers to address their mental, emotional, and physical wellbeing. Through this, they can enhance their mental and physical fitness. The purpose of the same is to ensure that the workforces have resilience and energy to maintain effective performance during transformation. The four-pillars of this framework have been created in 2014 that underpins different aspects of considerations.

Figure 1: Unilever wellbeing framework

(Source: unilever.com, 2021)

Based on the framework presented above, the focused areas are related to physical wellbeing by looking after their diet, fitness, energy level, and sleep. Mental wellbeing is managed by making them mindfulness, focused, agile, and empowered. Their emotional wellbeing is meant to make them feel confident by developing self-esteem and inclusion practices. The HR makes sure that the employees make themselves purposeful by connecting them with the company's Sustainable Living Plan.

It is found that Unilever’s ‘Employee Assistance Program’ (EAP) supports workers and is accessible through web chat, text or telephone. Employees can obtain access to counselling service, life coaching, stress reduction course, resilience training, and financial wellbeing. Absence of HR's wellbeing programmes might have lowered their motivation into working. The company's 'Management Development Programme' has the purpose of developing the performance of managers by enabling communication organisation-wide (themindgym.com, 2021). Through this, it could identify talent at different levels, determine pay related to performance, and managed transparency otherwise there could be wrong judgement of talents.

Conclusion

This is found from the above discussion that the HR department of Unilever plays a crucial part in developing strategies. The practices of human resource management team enable the business to attain goals globally. It is found that HR functions help the business in managing people effectively.

Task 3: Career development and career management at Unilever

Career development can be defined as the achievement of career objectives by employees through planning and support of the organisation, which can be in the form of mentoring, training, performance feedback and appraisals (Ismail and Rishani, 2018). Employee engagement and motivation can be increased and employee turnover can be reduced through career development. Career management is the broader aspect of HR practices which includes career development through identification of the skills, talents and competencies of individuals (Marwan and Ali, 2019). Unilever focuses on the career management and development of employees as an investment into the strategic advantage of the organisation to deal with future challenges. Improvement and addition to the skills and talents of employees can be implemented through training and development programs so that the organisation can benefit from new and improved competences to provide better value to customers and acquire a competitive advantage.

Unilever acknowledges the strategic importance of their human resources because they realise that their 155,000 employees around the world utilise their skills and abilities to meet the objectives of the organisation (unilever.com, 2021). The organisation believes in "redefining the future of work" by recruiting their employees based on their skills and attitudes and making their workforce more inclusive and diverse. The career management of employees at Unilever takes place through the HR life cycle by considering the value they can bring and to reward them for their performance at the end of their journey with the organisation. Unilever focuses on career management so that there are mutual benefits for the employees as well as for their organisation. The organisation focuses on the management of employees so that their performance outcomes can improve and lead to the achievement of organisational goals. Career management at Unilever begins by attracting the appropriate talent top the organisation through the promise of addition of value to the organisation, the world, and "a better you" (unilever.com, 2021).

The effectiveness of career development at Unilever is because of the reputation of the organisation which makes employees want to improve their career prospects. Employees are attracted to the idea of working for Unilever’s purpose of providing value to customers and to the environment and communities. The organisation also has in-house programs for training and development of employees that can allow them to be their “best self” in terms of their performance and prospects (unilever.com, 2021). These programs are for various skills, competences and different levels of seniority in the organisation so that no employee and no department is ignored from the benefit of career development. The Unilever Future Leaders Programme is an in-house program that trains promising employees across all departments and levels of seniority to achieve leadership skills and management acumen (unilever.com, 2021). Employees from various departments have benefitted from career development through the program that allowed employees to take initiatives and improve their skills through greater knowledge and understanding about the processes of the organisation.

Unilever implements a strategy of continuous learning so that employees can benefit from career development and the organisation can benefit from improved competence and capabilities of their employees. The organisation faced challenges in implementing career development because employees wanted to improve and learn but they felt that the opportunities were inaccessible (td.org, 2021). Unilever improved their career development program by establishing a unified system in stages so that employees were not overwhelmed. The organisation has managed to increase the positivity of their feedback through their engagement surveys. Organisations which implement career development are likely to benefit from higher levels of employee satisfaction (Purba and Ruslan, 2020). A lack of career development opportunities in organisations can also affect the strategy of the organisation by increasing employee turnover which leads to added costs for recruitment and training new employees.

The objective of organisations is to maximise their shareholder value by offering greater value to customers and growing their sales and profits through ethical means (Khan, 2017). Career development is implemented by organisations to achieve these objectives through the effort and skill utilisation of employees. Training and development improve the performance outcomes of employees and prepares them for future roles. Career development is a long-term goal which is achieved through steps of training, improvement of performance, preparing for future roles and promotions. It motivates employees through the prospects of increased esteem and rewards, and the possibilities of greater opportunities for contribution to organisational goals.

The QUAD model of talent management can be used to understand the approach of Unilever in its processes of acquiring, planning, retaining and developing employees. The four processes in the model refer to the life cycle of employees in the organisation and involve management of careers to meet the strategic objectives of the organisation. The planning of career development at Unilever includes the assessment of existing talent and the needs of the organisation. The strategic management of HR can include recruitment to meet the needs of the organisation or undertaking training and development programs to increase the performance of employees or prepare them for new roles in the organisation (Talpo? et al., 2017). Career development becomes important for Unilever because there are additional costs for recruitment. The training and development of existing employees can contribute to improved organisational outcomes because they are already aware of the processes and work ethic of the organisation.

Figure 1: The QUAD model of talent management

(Source – Inspired from Tamunomiebi and Worgu, 2020)

The acquisition of talent involves attracting the right candidates with the right skills and values to the organisation. Unilever focuses on attracting talent which will contribute to the organisation through their skills. The on-boarding and orientation of candidates can lead to their becoming valuable contributors to the organisation and beginning their careers (Crowley-Henry et al., 2019). The attraction of employees can be through the brand of Unilever or the rewards and remuneration they offer, or because of the career prospects in the organisation. The attraction of the talent is of strategic importance for the organisation because it considers the existing and future needs of the organisation in terms of human resources.

According to Sonnenfeld and Peiperl’s framework of career systems, staffing by organisations can be in the academic strategy, club strategy, team strategy and fortress strategy (Bagdadli and Gianecchini, 2019). The academic strategy focuses on hiring candidates who are fresh in the job market so that they can developed for long careers in the organisation. The club strategy emphasises seniority and loyalty to encourage the growth of individuals. The team strategy focuses on recruiting the best talent that is available so that the reliance is on skill and not on loyalty. The fortress strategy is implemented by organisations that are faced with problems so that they focus on hiring people for essential roles but do not focus on their training and development. Unilever can be said to be following the Academy strategy under this framework because there is ample information about entry levels jobs and training and development opportunities on their website (unilever.com, 2021). The organisation does recruit candidates in higher positions for lateral entry into their hierarchy, but the main focus is on recruiting young candidates and grooming them to allow them to progress in their career in the organisation.

The Goal-setting theory holds that it is the responsibility of organisations to set goals for employees so that they can be motivated (Locke and Latham, 2019). The obstacles in the path of employees are addressed so that they can grow their careers. The implementation of this theory helps organisations to boost their performance. Unilever implements this approach through their training and development programs which help employees to achieve their goals and helps them to address the obstacles by providing them relevant skills (Unilever.com, 2021). The organisation sets goals and sets examples of rewards through promotions and career growth of individuals who contribute to the achievement of organisational objectives.

Career development at Unilever happens through several in-house training and development programs which enhance the performance of employees and increase their knowledge and understanding for positions of greater responsibility. The Unilever Future Leaders programme is one such in-house initiative that prepares employees for positions of leadership and management in the organisation (unilever.com, 2021). The focus of these programmes is not just to further the achievement of organisational objectives but also to motivate employees and secure their commitment to the organisation through prospects of career growth and improvement in rewards and position. Through the use of career development tools, the organisation can reduce employee churn and increase the satisfaction and commitment of employees (Al Mamun and Hasan, 2017).

Unilever secures the retention of employees through the use of career development tools which can increase their satisfaction and retention. The organisation has a focus on helping employees to use opportunities and achieve the most they can in their careers. The promise of a purpose and prospects of career growth motivates employees and ensures their commitment to the organisation. Lack of career development opportunities leads to an increase in employee turnover and hampers organisational interest by requiring addicting expenditure on recruitment (Kurniawaty et al., 2019). Securing the retention of employees allows Unilever to build the management and leadership of the organisation from their existing employees so that they can use their competence and work experience to grow in the organisation and contribute to the success of the organisation.

The career management practices of Unilever are to motivate employees through rewards for their performance and their efforts. The motivation for performance functions as a tool for career development because employees look for opportunities to make greater contributions for the organisation in the hope of greater recognition and career growth (Caniëls et al., 2018). Unilever implements career development throughout the HR life cycle of employees to achieve it organisational objectives through the skills and talents of employees. When existing employees are given the opportunity and a path for career growth, they bring specialised knowledge about the effectiveness of processes through their experience of learning in their previous positions. The learning curve of employees through their career development enables them to prepare for new roles beforehand. Learning experiences and expectations of growth keep employees engaged and committed to the objectives of the organisations.

Conclusion

It can be concluded that HR practices are closely connected with the business strategy of Unilever. The HR life cycle of employees at Unilever was examined and found to be consistent with the objectives and strategy of the organisation. The attraction of talent, their recruitment, career development and retention of employees are focused on the strategic use of HR to achieve the long-term goals of the organisation. Unilever was found to have several in-house training and development programs to encourage employees and to give them opportunities. The reflective essay examined the implementation of career management and career development by the organisation. It used the Quad framework to understand the approach of Unilever to the four stages of acquiring talent, planning, development and retention.

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Appendix