73 11. This also seems particularly likely given the increasing legislation to prevent employers from bullying their employees and behaving in an inappropriate manner (Miner, 2009). Moreover, as increasing numbers of organisations recognise the benefits of adopting a collaborative and co-operative approach to achieving organisational excellence, current management theory would indicate that the days of dictatorial mangers are on the decline (Den Hartog and Koopman cited in Anderson et al, 2002:166-168). In this model the organisation should seek to create a hybrid of “processual” or delineated strategy on the basis of organisational objective, but that the approach should be tailored or tempered by a respect for cultural differences. Furthermore, Gergen (1995) concurs with Hassard and Parker (ibid), in those organisations, which operate in a post-modernist world, should take care to adopt appropriate management styles and techniques, or get left behind their competitors in a rapidly changing world. All work is written to order. Application of the Tannenbaum and Schmidt continuum (cited in Matteson and Ivancevich, 1999) indicates that the collaborative style of leadership has helped Unilever in managing and instilling change, and it is clear that under modern management practices that for them to continue to be successful they must continue to engage and motivate employees, especially those who are new to the culture of Unilever and have joined them through acquisition (Hassard and Parker, 1993:43-45). Spread the love. They have chosen to apply sustainable principles to as many areas of possible in their business on the simple premise that sustainability makes good business sense. & Steffen, W. (eds), (2007). Unilever Management Style. However Unilever have a strong commitment to positive diversity as evidenced by their localised products and marketing campaigns, which are specifically aimed to meet the needs of consumers at a localised level. As each of the manufacturing plants owned and operated by Unilever produces products and foodstuff, which their consumers will either ingest or use for personal care, the manufacturing must be of the highest standards and quality, with rigorous safety and quality checks at every stage of the process. Planning, Organizing, Staffing, Leading & Controlling. This principle has also been applied with regard to their requirements for tea leaves for their Lipton and PG Tips brands (Unilever, 2010c). (1964). To reach the size and level of diversity that they now control, Unilever have sought to acquire a further brand or manufacturing interest at the rate of approximately one per year for the last ten years. Patrick Cescau was known across the world for his work in regard to sustainability and business growth, and he has proved a hard act to follow (Insead, 2010). Although there are few current difficulties with employee relationships, it is apparent that some significant changes still need to be made in order to secure the future of Unilever in the current turbulent economic environment. Whilst it is appreciated that management culture and organisational culture is not something that can be changed overnight, as reliance on technology increases and organisations must become more adaptable to survive, it is likely that the current culture will be fit to see Unilever through into the future. Different Leadership Style Charismatic Leadership Democratic Leadership Transformational Leadership 16. 22 May 2010 http://news.bbc.co.uk/1/hi/business/8633455.stm. Accordingly Unilever has created a four-tier hierarchical structure, which helps to funnel information into the business, and allows the senior team to make appropriate decisions based on available data (Unilever, 2010b). Leadership style of the three selected organizations influences others to accomplish a mission, task and objective. It is about the the functions of Management of Unilever. This is something, which was acknowledged and addressed by Maslow (1999, cited in Strage), who noted that employees require more than simple fiscal reward to remain motivated. Atkinson, G., Dietz, S. & Neumayer, E. (2007). It would seem given that there have been no recent publicised disputes between employees and leaders at Unilever that employees are satisfied with the both the pay and recognition which they receive from the management team. Cummings, Thomas G. & Worley, Christopher G. (2005), Organization Development and Change, 8th Ed., Thomson South-Western, USA. As reported in the Telegraph (2008), Unilever searched long and hard for a suitable successor to the position and eventually felt that Paul Polman would be a suitable candidate given his own background, capabilities and skills. This has influenced the process of strategic decision making at Unilever under the systemic approach advocated by Whittington in his work “What is strategy and does it matter?” (2000). Retrieved 18th Nov 2010. He proposed a theory of cultural dimensions which he used to help explain how multi-cultural influences act upon an organisation with regard to strategic application as discussed by De Wit and Meyer; “Hofstede’s (1993) theory of cultural dimensions implies that although not all the individuals within a country’s population will have exactly the same characteristics, the cultural dimensions will colour the institutional and administrative arrangements that are made within the country, and will set the norms for behaviour.”. Miner, J. Unilever have therefore developed and implemented a robust series of controls, which enables them to manage and monitor every part of the production process, and also standardise it across their estate. This section of the report considers some recommendations to continue to improve employee motivation and engagement by enhancing and improving management practices, and also offer suggestions based on relevant theory as to how the necessary changes can be embedded. The collaborative and communicative style of the leaders should be upheld and gently moulded in newer acquisitions to one which is collaborative and co-operative in approach, drawing on the theories of Maslow to help motivate and engage employees in such a way that they provide constructive criticism and feedback on how best to help Unilever develop in the current challenging environment. Looking for a flexible role? This is a particularly so on production line, as there is a requirement for absolute conformity as opposed to creativity and individualism. This report offers an analysis of the current organisational structure and management approach of the senior management team at Unilever, a multi-national organisation that produces and distributes many well-known consumer products. Their ability to perform on their competencies and whether the culture of the organisation supports their chosen strategies or not. Fabian Garcia President, North America. Indeed, palm oil remains a major ingredient for many products toady, and their continued commitment to sustainability and efficient distribution is one of Unilevers’ core corporate strategies (Dhillion, 2007). Examples of such positive diversity can be found in Indian advertising for skin creams (Telegraph, 2007). It is a perpetual challenge for Unilever to maintain the interest and enthusiasm of employees who perform repetitive jobs such as those that will be required for a significant proportion of the Unilever workforce. Registered Data Controller No: Z1821391. 6- Management and Leadership Approaches at Unilever Netherlands. Remembering that the board of Unilever has been secure and stable for some time, it is of little surprise that they are able to adopt and react flexibly to change. However Unilever have a strong commitment to positive diversity as evidenced by their localised products and marketing campaigns, which are specifically aimed to meet the needs of consumers at a localised level. B. This structure offers them flexibility and adaptability across the globe, and also efficiency in production and distribution. They may set strict procedures that they follow precisely, and they expect their team to do the same. As Maslow noted, once the basic needs have been satisfied, the need to be accepted and to “belong” is a powerful human motivator. Laura Cha was appointed a Non-Executive Director of Unilever PLC in May 2013. Considering the size and scope of the organisation it is understandable that they must operate within a defined framework, and as noted by Cummings and Worley (2005:136-138) the sheer size of the company can expose them to the risk of paralysis and stagnation as they are too large to respond flexibly to external challenges. Playing an essential role in the leadership style management over Unilever, Paul Polman, a Dutch nationality, is the first external candidate to take the highest responsibility driving Unilever since 2008. It would seem from the success and growth of Unilever as a multi-national conglomerate that they have been particularly successful and following these principles and instilling a collaborative approach which harnesses the power and knowledge of the workforce and uses it to further the growth and development of the business (Fayol, ibid). Therefore the two executive directors; Paul Polman (Chief Executive Officer) and Jean-Marc Huët (Chief Financial Officer) serve as figureheads for the company. New York, Doubleday. It is a perpetual challenge for Unilever to maintain the interest and enthusiasm of employees who perform repetitive jobs such as those that will be required for a significant proportion of the Unilever workforce. Unilever is one of the largest businesses in the world, with an annual turnover of nearly £40 billion and in excess of 179,000 employees globally (Unilever, 2010). From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Handbook of Sustainable Development. Published: 1st Jan 1970 in Greenpeace (2007) “Unilever admits toxic dumping: will clean up but not come clean” http://www.greenpeace.org.uk/contentlookup.cfm?CFID=6864301&CFTOKEN=96874361&ucidparam=20010620124942&MenuPoint=G-A.Retrieved 9th Nov 2010, Hackman, J. R., & Wageman, R. (2005). Taylor (1999 cited in Matteson and Ivancevich), identified that to achieve maximum efficiency and effectiveness within an organisation it is necessary to “synthesize workflows” (1999:12-15) to ensure that there is alignment between resource availability and organisational requirements. Application of the Tannenbaum and Schmidt continuum (cited in Matteson and Ivancevich, 1999) indicates that the collaborative style of leadership has helped Unilever in managing and instilling change, and it is clear that under modern management practices that for them to continue to be successful they must continue to engage and motivate employees, especially those who are new to the culture of Unilever and have joined them through acquisition (Hassard and Parker, 1993:43-45). Maslow (1999, cited in Strage) discusses the hierarchy of needs model, whereby he identified that it was not simply money that motivated employees to work, but many other factors contributed to the desire of employees to perform to the best of their ability. When compared to the Dove brand “real beauty” campaign which Unilever have managed since 2007 (Dove, 2010) it can be seen that there is a strong demand for localised product management and positive diversity, which Unilever have responded to. Critics of Taylors’ approach such as Daft et al (2010:26), argue that the forced level of direction engendered by the Taylorist approach de-skills and de-motivates employees who effectively become “machines” who are dehumanised. Each of these theories addresses a different aspect of the employee – management relationship as will be discussed. This includes specific beauty products for various nations in response to consumer demand. Unilever has over 400 brands that touch on the lives of billions of people around the world. Unilever is characterised by open channels of communication, and there are points which against the Hersey and Blanchard model the leadership style could be regarded as “selling”, this is more to do with the differing levels of maturity in various parts of the business, and particularly in those parts which have been recently acquired. Organisational culture is complex, and can be influenced by a huge variety of factors as noted by Hofstede (1980) who identified the influenced and effects of multi-cultural workforces within multi-national environments. 5.1- Approaches to Corporate Social Responsibility. Gabriel, Y. Fineman, S. Sims, D. (2000) Organizing and Organisations. Cheltenham: Edward Elgar. Polman’s move to Unilever now gives him the rare vantage point of one who’s served as an executive at three of the world’s largest fast-moving consumer goods companies. Examples of such positive diversity can be found in Indian advertising for skin creams (Telegraph, 2007). ), Handbook of industrial, work and organizational psychology, Volume 2: Organizational psychology. 7th ed., London: Irwin, McGraw-Hill, pp.12-15. Each level within the hierarchy serves a different function allowing the other levels of the organisation to concentrate on their core roles. It will draw on the theories of eminent scholars such as Taylor (1999) who proposed the theories of increased organisational efficiency by utilising an appropriate management structure, and also highlight how the internal structure of the organisation is influenced by external environment and organisational structure. This was a departure for the Anglo-Dutch company as they had never previously taken an external candidate for the position, preferring to recruit internally. The theories of Taylor, Maslow and Fayol all offer suggestions as to how to engage with employees in times of significant change and challenge. The main driver for the merger was collaboration, as both companies relied heavily on palm oil as a major ingredient for their products and by sharing resources they were able to import and distribute to their factories far more cost effectively (Unilever, 2010). Unilever have been accused of causing deforestation by campaigners such as Greenpeace because of the use of palm oil, a major ingredient in many products. From the analysis of the company and its operating ethos and mission it can also be implied that his management style is European-influenced and therefore likely to be reflective of an inclusive culture and style in that it is both democratic and laissez-faire (Morgeson, 2005:497-508). Paul Polman of Unilever lives, breathes, and exudes this powerful assertion. The Unilever website offers several examples of successful case studies where sustainability has proved to be of great business benefit amongst both internal and external stakeholders, and the board of Unilever also recognise that this can only be achieve by impeccable business performance and adherence to best principles in their own right. Fabian Garcia was appointed to the role of President, Unilever North America in 2020. In contrast to Taylor, the Maslow school of thought discusses tools and techniques to help managers to motivate and empower employees to perform to the best of their ability. Unilever is characterised by open channels of communication, and there are points which against the Hersey and Blanchard model the leadership style could be regarded as “selling”, this is more to do with the differing levels of maturity in various parts of the business, and particularly in those parts which have been recently acquired. The diagram below outlines what Maslow has identified, in that as each level of need is satisfied, the individual moves up the pyramid to satisfy the next need in the ranking. Kees Kruythoff, president of Unilever's North America cluster, has traveled the world for the multinational consumer goods company. When Paul Polman took on the role of CEO of Unilever in January 2009, during the eye of the financial storm, he brought with him years of experience from holding high positions at both P&G and Nestlé. Sunny Jain was appointed President, Beauty & Personal Care in June 2019 and is part of the Unilever Leadership Executive (ULE). Fayol, H. (1999) Planning’ in M.T. Taylors’ theories were developed whilst observing car production plants, and there are close analogies with regard to the production flows of manufacturing in the Unilever plants. (1995) The Limits of Pure Critique’ in H.W. 166-187): Sage Publications, Inc. DfT (2010) Road Freight drops 24% in first quarter of 2010 available online at http://www.aricia.ltd.uk/articles.aspx. An Integrated History and Future of People on Earth. Unilever state that their approaches to Corporate Social Responsibility incorporate “business benefits as well as ethical principles” (Unilever, 2010c). Contrastingly it is also useful to consider some of the more controversial activities, which have been undertaken by Unilever in their recent history. They are also the largest ice-cream manufacturer in the world, controlling some 73% of the world’s ice cream production and generating revenue of €5 billion per year alone from ice cream sales in Europe. When compared to the Dove brand “real beauty” campaign which Unilever have managed since 2007 (Dove, 2010) it can be seen that there is a strong demand for localised product management and positive diversity, which Unilever have responded to. They are dual-listed in the Netherlands and the UK, but operate as a single-entity with the same board and senior team. Leadership development is ingrained in the Hindustan Unilever culture and is aligned to the vision of being a high performance workplace. This usually isn’t the best leadership style for businesses or teams that rely on innovation or creative problem solving. It is interesting to set the Hersey and Blanchard model against the backdrop of situational leadership, as it seems that the characteristics of Unilever are a mature and confident group of leaders who are happy to delegate tasks and responsibility, and thus leverage the best from their employees (Den Hartog and Koopman, ibid). Unilever CEO Paul Polman’s decision to retire after a decade at the helm comes amid mounting challenges for the FMCG sector as consumer trends shift and growth becomes increasingly hard to find.. A look across the sector shows that a number of the world’s biggest companies have changed the person at the top in the last couple of years, from PepsiCo to Mondelēz, Nestlé to the … In consequence Unilever have committed to sourcing all of their palm oil requirements sustainably by 2015 (Unilever, 2010d). Sustainability or Collapse? Whilst they are far from bankruptcy, recent years have seen considerable expenditure and challenge for Unilever, which has centred on the considerable number if divestments and acquisitions in order to strengthen and consolidate their global brand portfolio (Morden, 1996:458-496). Analysis of the Organization and Leadership of Unilever, All Channel Network in Business Communication, Annual Report 2012-2013 of Tata Consultancy Services Limited, Probability Chain Network in Business Communication. The changes build on our creation of three global Divisions last year – Beauty & Personal Care, Foods & Refreshment, and Home Care – and are designed to further strengthen the execution of our strategy in our markets. They are listed on both the UK FTSE 100 and the Dutch equivalent the AXE, and they have 13 brands which generate revenue of over â‚¬1 billion per year. (retrieved 5th Nov, 2010). Unilever have been accused of causing deforestation by campaigners such as Greenpeace because of the use of palm oil, a major ingredient in many products. The cornerstone of Taylors’ theory was centred on adhering to “best practice” processes to minimise waste and maximise productivity. Organisational Culture has been defined as “the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization,” (Hill and Jones, 2001:27). There are several theories, which can be used to help understand the relationship between managers and employees within an organisation. It is therefore interesting to observe the influence and effect of Paul Polman as the first external candidate to take the role the Chief Executive Officer. 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