Competences and Human Resources Empowerment in a Market Driven Company - Assignment Example

Unilever, one of the world’s biggest multinational fast moving consumer goods products multinational, is the residence of most innovative employees in the industry. For Unilever, as an enterprise, things are reliable because it focuses a lot on how the employees interact with each other. High standards of corporate behavior outline the corporate culture of Unilever. Ethical behavior is permitted at work and amicable attitude is what is demanded. There are people from diverse cultural background residing in Unilever who follow the code of conduct and make each other feel at home.1 The Human resource department bolsters and develops the important asset of Unilever- its people. The people play an immense role in delivering outshining business performance. Even if anyone is not part of Human resource department and just a part of Unilever corporate culture, he or she can assist to create it. Employees are empowered at Unilever, both in terms of accomplishing their own career and personal goals and in contributing to Unilever. Human Resource Department ensures that there are innovative people in the organization who care for each other in developing an excellent corporate culture. The control models also play an important role in structuring and enhancing the morale of employees for better performance and sustainability.2 Task 1 The Human Resource Management at Unilever works to ensure that the models of HRM, Control based Model, Resource Based Model and Integrative Model are implemented in the organization. Control-based model is based on management to control and monitor the performance of employee. The resource based model is based on employer-employee relationship and exchange, and also in change of their behaviors and attitudes in quality of manager in the subordinate relationship. Integrative Model combines the qualities of both resource based model and control based models.3 The control-based model The first approach to Human Resource Management Model is dependent on nature of the work place control and also more precisely on the behavior of manager to monitor and direct the performance of employee and their role in the organization. In alliance to this perspective, the HR strategy and management structures are the techniques and instruments to carry out all the work aspects to safeguard the high level of productivity of labor and subsequently profitability level. This emphasis on controlling and monitoring the behavior of employee is on the basis of differentiating the HR strategies. The beginning of this framework is the analysis done by Marx on capitalist labor process and is known as change of labor power into the labor work. In simple terms, at the time of recruitment organizations have a capacity or potential to work. To make sure that each worker exercises her or his full capability, managers must take into consideration the space, tasks, time, and movement when the workers function. However the workers have different interests in time of work pace, job security, and rewards, and also keep in trade unions (formal) and the restrictions of disruption or output (informal) behaviors to offset the management job controls. The counter management of the behavior which calls for the managers to discipline and control the organization’s interior. The substitute of the HR strategies has held the managers to provide the employees with predictable and measurable behavior. The early system of individual control by the employers ruling over the direct autonomy was reinstated by an intricate structural control forms such as bureaucratic control and the technical control.4 The resource-based model The second approach to HR strategy is based on reward-effort exchange system on the nature of it and the degree which implies the view of managers on human resource management and an asset as compared to the variable cost. High performance via workers is also underscored when the technological advancement and other issues are available to most firms. This sum of people’s expertise and knowledge and also social relationships has the potential to give non-alternative capacities that are a basis of competitive advantage. The different perspectives are part of competitive advantage. This ‘mobilization’ of the consent of employees via strategies learning and competitive advantage is vital for any firm. The workplace learning is also important and this model must be examined in detail. The organizations performing on resource-based models have differentiated that enables them to take over their competitors. The continued competitive advantage with the added emphasis is accomplished not via external market analysis of the firm but also via meticulous capabilities and skills analysis by which such characteristics are enhanced that competitors mostly copy. The SWOT analysis is based on exploiting the strengths internally and also neutralizing the weaknesses posed internally. The resource-based approach also exploits the differentiated competencies of work organization and is divided into tangible (technological, physical, human, and financial) and also intangible resources (reputation, brand-name, and know-how) resources. These competencies must be valuable and unique. By capacities, we mean the collective skills by the firm to organize the coordination of resources and also the comprehension which drives a distinctive competency. 5 The integrative model The integrative model combines the Control-based model and Resource-based Model into an integrative model. One model concentrates on the strategy relying on the managerial control and the other one on efforts for rewards and exchange. This model argues that none of these dichotomous approaches, either the resource-based model or control based gives a framework which will be able to include the flow and ebb of direction and intensity of this HR strategy which builds a model that takes into account the two dimensions of this strategy including the development and acquisition and also locus of control. The development and acquisition are concerned with the area in which HR strategy takes into account the internal human capital as compared to the external recruitment of this human capital. Similarly, the organizations can also think about making huge investments in the process of training or towards buying their workers from the labor market externally. This is called market or buys area of the HR strategy. The locus of control deals with degree upon which the HR strategy emphasizes on by monitoring the employees conformity with the standards relied on process as an alternative to creating a psychological contract that builds the social relationships, also heartens the mutual trust and also respect, and controls this focus on the ends (outcomes) themselves. This area of thinking can be dated back to Walton (1987) ideas that made a clear division between control strategies and commitment. 6 Task 2 Recruitment Unilever has a thorough process of selection which determines the potential an individual can demonstrate in Unilever and how they can fit in Unilever. The selection process starts with the application form. It is the first opportunity which creates an impact. The importance is not over-emphasized by the organization or the employees. It is basically based on the application and its strength that decision to go about is made. This form also gives on vital background information for all the selectors. Much of this information is based on activities, education, interests, and activities. The section also comprises of ‘competency relied questions’. The tests which are conducted mostly are psychometric tests and aptitude tests to obtain objective, relevant, and reliable information on all of the candidates. The test also prepares a person via practice and can assist in enhancing the performance.7 The Interviews are also placed many times. First interview is based in the home country. It allows the applicant to learn about Unilever and Unilever to learn about the applicant. The interview takes about an hour and also covers much ground. The selection board takes a considerable amount of time, mostly a day and takes into account many activities. Applicants are engaged in individual and group exercises and finalist candidates are selected. This selection committee uses Unilever Senior Managers which evaluate the potential of candidate, and also the final selection selections are relied on selecting board activities. Recruiting is the process of attracting and finding the right applicant for the employment. The process starts when new recruits are needed and ends when the applications are submitted. The outcome is the range of applicants from where new employees are then selected. The fresh graduate must know the vacancy announcement, personnel planning, nature of application form, and the qualification of the recruiter, the channels of recruitment, and the constraints and challenges of recruitment. 8 Recruitment at Unilever is carried out by three means. The first of one is Internal Recruitment Channel in which Unilever staff decides on the people who should be promoted to higher posts or people who should be moved to different departments, the rotation effect can positively take place in such an organization. It helps Unilever get the best out of its employees by putting them in the right place. The second channel of recruitment is the external recruitment process in which the staff takes into consideration the walk-ins and write-ins, the referrals of employees, the advertising, private placement agencies and also the professional search firms, professional associates, educational institutions and also the international recruitment. 9 Selection The above figure highlights the selection process at Unilever. The selection process at Unilever is a comprehensive one with the first Initial screening interview option and if the applicant doesn’t have the minimal qualification, he or she is disqualified then and there. If the applicant passes the initial screening interview, an analyzing and reception of application form is done. If applicant by any chance fails here, he or she in fact fails to complete the job specification or application so rejected. If the applicant clears this stage, he goes on to give the employment test. Fails the test, he is rejected right there. But, if the employment test is passed, a comprehensive interview is carried out of the applicant. If the comprehensive interview fails the applicant, that is if he or she fails to impress the interviewer and meet the job expectation, he or she is rejected. If he or she passes, he or she goes on to the sage of background Investigation where the bio data, family history, criminal records are all checked of the potential employee. If a problem is encountered, he or she is rejected then.10 If the background investigation process goes all well and everything goes on smoothly, a cognitive Ability Test of the applicant is carried out. If he or she fails this test, he or she is rejected. However, if the cognitive ability test is cleared by the applicant, he goes on for a medical/ physical test. To be in Unilever, you have to meet certain desired medical requirements. If he or she doesn’t meet those requirements means he or she is unfit for his or her job or the elements of job, therefore rejected. Subsequently, the work samples of the applicants are required, and if the samples are not taken with responsibility and care, then the applicant are rejected. But, if the work samples were useful, then the hiring decision is made by the executive Human Resource Management team.11 Recommendations Unilever has a very extensive selection and recruitment, which I believe helps to hire the best people for a prestigious organization such as Unilever, but burdens the administration and management to with a huge amount of work. The HRM team should be trusted upon the fact that they will find the best people by the vigorous interviews they carry out and the burden of evaluating their samples should then be lessened to some extent. Also the long one day interviews are tiring for both the interviewer and interviewee and less time must be spent on it. Yes the employees are assets for Unilever and it wants to ensure it has the best of them but a lot of time is wasted in hiring recruitment and selection which can be better utilized somewhere else. Task 3 The basic objective of Unilever is to make sure that its managers all over the globe have the consistent skills and also a common language which will enable them to efficiently handle the challenges that businesses face each day. Also, before the initiative there were about six fifty different suppliers giving the management training, so the accomplishment of this consistency drives the organization successfully. After an intricate process of selection, TACK International was chosen by the Accenture as a means to expand the capacity of management for Unilever worldwide over a time period of five to seven years. TACK was one of the few organizations which were able to offer consistency, depth and breadth of the portfolio for training which Unilever desire. The proven record of TACK with the global blue-chip companies, a strong infrastructure, delivery capacity in forty markets, and twenty five local languages is important to supervising the global initiative.12 For any of the social groups to function effectively and efficiently and accomplish a common objective, the management of most important asset- the resources- is extremely important. Till the 1970s the job of ‘controlling and finding people’ was held by the Personnel Management which was fundamentally an administrative performance, dealing with control of subordinates and management. This Human resource Management concept was developed with an enhanced strategic thinking level about nature and also the role of people as in 24hours per day human capital working in firms which had their own cultures in their own domain. 13 The recent moderations at Unilever have moved from control-based model to the model of compliance. The compliance model takes into consideration the commitment of employees and effectiveness expectancy and the follow of efficiency. The hard edge talks about getting rid of the unnecessary layers of the middle management of the organization which when taken the control functions off it doesn’t have any value added. The Job Design Model divided the operations into many subdivisions, and considers both the specific accountability of job with combined implementation and planning as per the operations’ needs. In Job Design Principle, the employees’ tasks are performed both individually and in a team.14 In the Management Organization, the employees are divided into various hierarchies. It is different from one country to another. There is a robust hierarchy at Unilever which goes from top to bottom and the status symbol is very visible at Unilever but there is no confusion between employees of varying cultures and countries. The compensation of employees of varying positions in hierarchy is dependent on paid compensation as per their job performance. The salary is paid on monthly basis. Other packages as bonus, stock options, etc are also given during the special occasions like company progress, religious festivals, etc. The voice of employees can be heard via the Union which holds a strong Unionized Policy to make sure that greatest employee benefits like bargaining, control damage are entertained.15 The Labor Management Relations are carried out via a joint planning and problem solving policy which is practiced at Unilever to encompass the cooperation of workers towards company. The philosophy of management is to be responsible for the performance of stakeholders. The top level management talks about their decision to different officials and managers in an attempt to arrive at a decision. It also believes that employee’s needs must be fulfilled as a goal of the organization which should be carried till the very end. There are various HRM activities which are included in achieving the goal of organization for Unilever. These are organization structuring, role specification and job design and development of organization.16 The structuring of organization refers to organizational development which allows for all activities to take place nicely and smoothly as needed by the firm, then grouped together in a manner which boosts the co-operation and integration in the organization. Human resource is very helpful for Unilever to accomplish its objectives and goals. The total structure of Unilever which is created by its HRM department is very much efficient and effective to meet the above goal. Human resource professionals follow various differing structure methods to choose and select the best idea for structuring. The role specification and job design, as the name indicates, refers to the responsibilities, duties, and relationships between job holders and other various people in the organization which are the content of jobs. The job which is designed by Human resource Management department is very straight forward in realizing the purposes, objectives, and goals of the organization. Similarly, the role specification of each and every employee is so well groomed and meticulous that partners such as TACK are better able to offer breadth, depth, and consistency of the portfolio for training that Unilever required. 17 The Organizational development refers to planning, implementing, and stimulating programs desired to enhance the efficiency and effectiveness with which the organization goes about each day and adapts to particular change. The market is rapidly changing. Like other firms, Unilever has to live with this change and make adjustments. The development which the HRM department makes in this regard is also structures that it gives a genuine way to meet the goals and objectives. 18 Task 4 There are various classical theories of motivation proposed by different people to explain the reliance of motivation to work. These include Maslow hierarchy of needs, McGregor Theory X and Theory Y, Herzberg Motivation Theory, David McClelland Motivation theories, C Argyris Expectancy Theory, Porter’s and Lawler’s Model, Handy’s motivational calculus and many more. I will evaluate these classical theories of motivation and from my discussion of these theories and will propose a hybrid theory which may combine the most meaningful characteristics from a range of these theories and which will have practical value in this organization. 19 The Theory X and Theory Y model by McGregor explains the basic human traits. The assumptions of Theory X are that an average human being has an intrinsic dislike for work and will eschew the work if he can. People must be controlled, directed, or coerced with punishment to get them to expend efficient effort towards the organizational objectives achievement. 20Contrary to it, Theory Y believes that people are different than what Theory X model perceives them to be. The expenditure of mental and physical effort in work is natural for them as play or rest. The average human being does not dislike wok as much and can also be practices as satisfaction source. The threat of punishment and external control are the only reasons of taking about effort. People can consider self-direction to accomplish the objectives to which people are most committed to. These commitment objectives are an outcome of rewards linked with accomplishment and most essential of these rewards is the need for self actualization satisfaction. Most of the human beings learn to adapt, accept, and to carry out responsibility. 21 The Maslow’s pyramid of needs or motivation theory is based on five needs of the individual which is essential for him to work. These are physiological needs which are the needs to drink, food, pain relief, and shelter. The security and safety needs are the physical needs that if satisfied can permit a man to think beyond the physical dangers associated with economic security, desire for an orderly and predictable world. Social needs come after safety and security needs which are the basic motivators of behavior. After that, ego comes in; it is the egoistic or esteem needs which are needed for self esteem or esteem for others which takes into account the achievement, self-confidence, autonomy, competence, knowledge, status, respect, and reputation. Self-actualization or self-fulfillment needs is the highest level of Maslow’s pyramid or hierarchy which are needed for realizing the individual needs, for consistent development of self and the creativity in highest sense.22 Considering these theories of motivation and their affect on the organization, a positive work environment is needed for Unilever every day. The company gives constant rankings among most of the employers in the world as it puts its employees at the forefront. Employees should be put first all the time in any organization. A culture of motivation should be developed which should encourage the individuals to carry on with goals and objectives professionally and to maintain a balance between family and work. The company should encompass an environment of training, loving, mentoring and tutoring and also robust people management. A culture of mutual trust should be build upon on which respect is kept at highest level. This makes an environment of shared responsibility between employee and company. Each employee should be encourages to join a culture of respect and mutual trust in which individual responsibility is encouraged and personal affects for the performance of employee are improved. Many theories of motivation must be integrated within the organization. Maslow’s hierarchy theory is evident in the organization by Self-actualization. It high lightens the inborn need of an individual who has the option to develop full potential. Generally, employees for Unilever are able to make an effective difference but they should be able to maintain a robust value system. A value system is needed to be maintained at home and in school both. Unilever uses the process theories to encourage its employees to accomplish the desired goals of the company. These theories which can be used to generate a hybrid theory such as expectancy theory, goal setting theory, and equity theory which expects the performance of employees to bolster the overall vision and mission of company rather than the performance of an individual. The equity theory is considered when the benefits and wages coincide with other companies. Lower level employees do not see inequality and should be motivated the same way. Lastly, the goal setting theory is needed for team work and individual both for a more successful area to work. Top of Form Bottom of Form Task 5 To maintain competitive advantage for Unilever, streamline and reorganize the organizational structure of Unilever Strategy Justification is the first step towards reorganizing the structure of organization. Unilever maintained the two business entities, known as dual chirpers on an attempt for Unilever Group owns the Unilever plc and the Unilever NV and the List stock should be handled separately and the share of the board of directors of management basically do the three board and business representatives on the responsibilities which can conflict with other issues. The company came up with two local and disjointed opportunities for employees. The company should recognize how to streamline the leadership and the management process so to fasten up the effectiveness and slowed the process of decision making. Unilever should consolidate all the brands under one umbrella of a parents brand so that the management and supervision becomes easy for the human resource management and strategic management department at Unilever. It should combine these brands together for effective and efficient realization of resources and human potential. One Unilever firm should be divided into Cross Functional Management teams who can then consider the upper management for any decision. These teams include the Global Business Units, Market Development Organization, Global Business Services, and Corporate functions. The Global Business Units will include Margarines, oil, frozen foods, ice creams, spreads, tea based beverages, culinary, wellness and health, deodorants, toiletry, oral care, soaps, skin care, laundry, lotions, household care, cleansing products, and fragrances and the management of such commodities separately for efficient resource management such as human capital. Market development is needed in United States, Ireland, Netherlands, Italy, and Korea. Global Business Services are required in regional leadership tea, global process owners, and global enabling team. Corporate functions are necessary in finance, human resource management, customer business development, Public Affairs, Market research, Product Supply, Government Relations, Market Research and Human Resources. The above mentioned organizational structure is perfect for a huge organization as Unilever as a simple structure of management will enhance the speed of decision making and accountability. A simple organizational structure will guarantee certain benefits such as a greater clarity of responsibility, leadership, and accountability. It will allow Unilever to emphasize on needs of their consumers and customers more effectively and efficiently by increasing the growth and sales potential of the organization. Obviously a simple structure will lead to efficient accountability as people won’t have to go through a long hierarchy chain to reach to senior management or pass their message to the executives. It will also provide an opportunity for leveraging economies of scale by increasing scale of operations. A strategic platform will thus be created for effective brand management which will also be a blessing of efficient human resource management by simpler organizational structure and development. When the process of decision making and accountability will be easy, fast, and accurate for most people in the organization there will be no conflicts and problems. Unilever’s employees are its assets and nurturing the human resource management system will make employees feel at home. When the employees will be able to reach the upper management easily and effectively without any problems so there will be no issues or problems and employees will be more contended and satisfied. Unilever needs to empower its individuals, its staff or its people for this change. The drastic change that should be brought on in Unilever from a long chain of hierarchy to simpler management structure will generate several difficulties for the employees. They will be posed to new threats and challenges which will be part of the self-actualization and decentralization they will receive from the simple management system. They will be responsible for their actions more and can not just rely on their head for their problems. The mishaps by them will directly be telecasted to the upper management and employees need to be vigilant in their work to produce the best results for the organization. .Top of Form Bottom of Form Bibliography BECK, R. C. (1978). Motivation: theories and principles. Englewood Cliffs, N.J., Prentice-Hall. BRATTON, JOHN. Strategic human resource management. Retrieved on January 10, 2012 from: http://management-class.co.uk/human_resource_centre/bgcha02.pdf LUCIA, A. D., & LEPSINGER, R. (1999). The art and science of competency models: pinpointing critical success factors in organizations. San Francisco, Calif, Jossey-Bass/Pfeiffer. UNILEVER (2012). Graduate recruitment process. Retrieved on January 10, 2012 from: http://www.unileverme.com/careers/graduate-recruitment/graduate-recruitment-process.aspx UNILEVER (2012). Unilever Official Website. Retrieved on January 10, 2012 from: http://www.unilever.com/ VARCHETTA, GIUSEPPE (2000-2001) Competences and Human Resources Empowerment in a Market-Driven Company. The Unilever Case. © SYMPHONYA Emerging Issues in Management, n. 2. Retrieved on January 10, 2012 from: http://www.unimib.it/upload/gestioneFiles/Symphonya/lasteng/f200020012a/varchettaeng220002001.pdf Read More