He proposed a “general theory of management”, suggesting that managers had six primary functions and fourteen further principles of management. Some theorists such as Hackman and Wageman (2005:269) refer to this as “celebrating success”. Hofstede, G. (1993) ‘Cultural constraints in management theories’, in De Wit, B. and Meyer, R. (2004) Strategy Process, Content, Context, 3rd Edition, Thomson, London pp206. Therefore Unilever have explicitly set out to create a management structure, which is capable of making faster decisions and responding more flexibly to external stimulus. Stefan Cloete. By this they mean that they have continued the work started by Patrick Cescau seeking to align business activity and ethical activity. 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. 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). Dhillon, Amrit (2007-07-01). : MIT Press. Thus, this element will consider some of the current issues facing Unilever and how they will seek to address them. 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. 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). http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/07/01/wskin101.xml. Cambridge, MA. Unilever Management Style. Miner, J. They are both internal and external to the organisation to help provide check and balance in their operational views and it is interesting to note that the board is very rare in having such a relatively high proportion of female NED’s at 30% (Black, 2003:236-238). 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. BBC News. He worked for more than 17 years with Unilever, where he was responsible for building and managing Indian and global markets. 5.1- Approaches to Corporate Social Responsibility. Simons, H.W. 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). Looking for a flexible role? One of the biggest challenges for learning professionals when it comes to leadership development is that they can lose focus of the bigger strategy picture and their functional expertise may unintentionally obstruct business drivers, according to Daan Van Den Broek, vice-president human resources for Unilever ANZ. Leadership style of the three selected organizations influences others to accomplish a mission, task and objective. 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. Examples of such positive diversity can be found in Indian advertising for skin creams (Telegraph, 2007). This principle has also been applied with regard to their requirements for tea leaves for their Lipton and PG Tips brands (Unilever, 2010c). November 30. The Managerial Grid: The Key to Leadership Excellence. Leadership in organizations. 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). Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. 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. : MIT Press. 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. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Luc-Olivier Marquet. This report will consider some of the recent changes and challenges, which have faced Unilever, and provide and analysis of the likely future challenges facing the organisation. Human Resources VP Africa. The theories of Taylor, Maslow and Fayol all offer suggestions as to how to engage with employees in times of significant change and challenge. It was formed in 1930 as the amalgamation of the UK soap company Lever Brothers, and the Dutch margarine company Margarine Unie. Their leadership styles and approaches will be discussed in more depth below. This is closely linked with reward and recognition for work that has been done well or is particularly innovative. Their ability to perform on their competencies and whether the culture of the organisation supports their chosen strategies or not. These tactics facilitate human resource productivity and organizational performanc… As noted on the corporate website (Unilever, 2010c), Unilever have a strong commitment corporate social responsibility and sustainability and they have adopted a specific and targeted set of measures and key performance indicators to benchmark their own sustainability performance. Find Out More . Conny Braams was appointed Chief Digital & Marketing Officer in January 2020 and is part of the Unilever Leadership Executive (ULE). (1964). Alternatively under the Tannenbaum and Schmidt continuum (1957) it can be suggested that Paul Polman allows freedom of his subordinates to pursue suitable corporate strategies on the basis of their capability and the application of democratic decision-making. They are dual-listed in the Netherlands and the UK, but operate as a single-entity with the same b… 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 definition also helps us to understand the values of the organisation and how they seek to lead and develop their business. Hanneke was appointed President, Foods & Refreshment on 1 May 2019. 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). As Maslow’s’ theory suggests, once the basic needs of financial reward for work have been satisfied sufficient to meet the demands of paying bills, then an employee looks for other motivations to come to work, such as feeling valued by their employer, and having their work and achievements recognised. Figure 1: Maslow’s Hierarchy of Needs (1999). Dr Judith Hartmann Non-Executive Director. According to Blake and Moulton (ibid), this leadership style relies on managers recognising that employees must feel as if they are a highly valued part of the organisation, a theory that is closely aligned with that of Maslow who observed that those employees who produced the best work felt that they were suitably rewarded for their efforts. Whittington observed that organisational culture is governed by the social structures created by management level, social class and interest groups, and that trying to cut across these groups in certain localised areas was likely to create excessive tension and achieve very little (Whittington, 2000:185-189). 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. 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). 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. When considering these findings in the light of the Blake and Moulton Leadership grid (1964), it can clearly be seen that the leaders at Unilever are at the inclusive and collaborative point on the scale as termed the “sound” style (previously known as “tem style”). He is a French national with numerous accreditations to his name and an extremely successful history at Unilever. Retrieved 18th Nov 2010. Costanza, R., Graumlich, L.J. Our academic experts are ready and waiting to assist with any writing project you may have. Fabian Garcia President, North America. Change of Leadership at Unilever. 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). They suggest that if major achievements which have been made possible by the co-operative work of the team are celebrated and recognised, this will go on to motivate and encourage employees to continue to perform. Each of these theories addresses a different aspect of the employee – management relationship as will be discussed. 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). During a recent Wharton Leadership Lecture, he … Our South African leadership team biographies provide additional details about our key personnel across Unilever South Africa. It is about the the functions of Management of Unilever. 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. This is a particularly so on production line, as there is a requirement for absolute conformity as opposed to creativity and individualism. 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. 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. 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. The skills gained as a marketer and managing a brand are much the same as those needed to lead a business, he adds, but suggests anyone making the transition will need to tweak their management style. Gabriel, Y. Fineman, S. Sims, D. (2000) Organizing and Organisations. 22 May 2010 http://news.bbc.co.uk/1/hi/business/8633455.stm. This is a particularly so on production line, as there is a requirement for absolute conformity as opposed to creativity and individualism. Bureaucratic leaders are all about rules. It was formed in 1930 as the amalgamation of the UK soap company Lever Brothers, and the Dutch margarine company Margarine Unie. New York, Doubleday. The Managerial Grid: The Key to Leadership Excellence. Taylor suggested that by measuring and monitoring these objectives and setting out clear processes and procedures for employees to follow, it is possible to significantly increase labour productivity and effectiveness. Bureaucratic Leadership. Finally, the three senior corporate officers are responsible for ensuring that the board of Unilever (both executive and non-executive) have all the necessary information to make prudent and timely corporate decisions on both an operational and strategic basis. They may set strict procedures that they follow precisely, and they expect their team to do the same. 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. New York, Doubleday. 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. 73 11. Cummings, Thomas G. & Worley, Christopher G. (2005), Organization Development and Change, 8th Ed., Thomson South-Western, USA. Handbook of Sustainable Development. In consequence Unilever have committed to sourcing all of their palm oil requirements sustainably by 2015 (Unilever, 2010d). Costanza, R., Graumlich, L.J. The ten non-executive directors serve as the “independent element in Unilever’s governance” (Unilever, 2010a) and are drawn from a wide range of backgrounds all having huge experience and expertise in their respective areas. 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. The cornerstone of Taylors’ theory was centred on adhering to “best practice” processes to minimise waste and maximise productivity. Copenhagen Climate Change (2009) http://www.copenhagenclimatecouncil.com/about-us/councillors.html (retrieved 5th Nov, 2010). According to Blake and Moulton (ibid), this leadership style relies on managers recognising that employees must feel as if they are a highly valued part of the organisation, a theory that is closely aligned with that of Maslow who observed that those employees who produced the best work felt that they were suitably rewarded for their efforts. As a multinational company, Unilever Ghana b elieves that leadership style is of major consideratio n and challenge worldwide, and has a major influence on employees’ attitudinal outcomes. 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