Running head: ORGANIZATION BEHAVIOUR

ORGANIZATION BEHAVIOUR

Name of the student

Name of the university

Author’s note
 ORGANIZATION BEHAVIOUR 1

Executive summary
Unilever is a British multinational consumer goods enterprise with headquarters in London,
England. Unilever is a fast-moving consumer goods (FMCG) firm with a global presence.
They market a wide range of foods, beverages, personal care goods, and other products.
Unilever owns over 400 brands, generated revenue of 53.7 billion euros in 2017, and has
thirteen brands with incomes exceeding one billion euros. Unilever's three major divisions are
Foods & Refreshments (beverages and ice cream), Home Care, and Beauty & Personal Care.
It has research and development facilities in China, India, the Netherlands, the United
Kingdom, and the United States (Watch 2021).

Unilever's goal is to bring energy to people's lives. The company is dedicated to providing
well-balanced nutrition, hygiene, and personal care products that meet a high brand level. The
business has a strong connection to the local culture, and its global reach has resulted in a
high level of customer relationship, which is critical for potential development. The
company's goal is to introduce the wealth of experience to consumers in the local sector,
allowing for the convergence of various communities and nations.
Unilever is a consumer products giant with a global presence. The success of this company is
known through its organizational culture and the policies and practices that its leaders have
implemented over time. Unilever should implement Performance Development Planning
(PDP) as one of its performance assessment and control systems. PDP connects individual
objectives to the organization's mission, empowering workers by instilling a sense of
ownership.
Also, the leadership programs inside the company have guided its culture towards gaining
competitive edge. The culture of the company plays a significant part in keeping the company
ahead of its competitors. This not only motivates the employees but also helps in employee
retention and brand building. However, the company has faced many criticisms regarding its
culture and employee rights but it has revitalized its strategies by accepting criticism and
being accountable for the wrong done. Finally, once adopted, the plan should be tracked on a
regular basis with the goal of making improvements or improving it as needed to meet the
objectives.
 ORGANIZATION BEHAVIOUR 2

Table of Contents
Executive summary....................................................................................................................1

Introduction................................................................................................................................3

Discussion..................................................................................................................................3

Project limitations..................................................................................................................3

Company profile.....................................................................................................................3

Literature review....................................................................................................................4

Motivation and Employee Engagement in Unilever..........................................................4

Organizational culture........................................................................................................6

Leadership..........................................................................................................................8

Issues related to engagement, motivation, culture and leadership.......................................10

Recommendations for Performance Management Strategy.................................................11

Conclusion................................................................................................................................13

References................................................................................................................................14
 ORGANIZATION BEHAVIOUR 3

Introduction
The report presents detailed strategic analysis of organizational performance of a
company in terms of employee engagement, motivation, organizational culture and
leadership. The report includes information on how the above mentioned organizational
factors are practiced by the firm. Further the report explores issues related to engagement,
leadership, culture and motivation inside the firm and it also suggests suitable
recommendations in the form of a Performance Management Strategy. The report also takes
account of the leadership styles practiced by the organization as well as what theories of
motivation are implemented for engaging and motivating the workforce. It further includes
project limitations of the assignment. The organization chosen for the assignment is
“UNILEVER”.

Discussion

Project limitations
The project has many limitations like while conducting secondary research regarding
company issues, there were many articles and journals which were restricted. Also, the
limitation of time was one of the significant factors or challenge because if more would have
given then the research would have been conducted more efficiently as per the company
profile. Because of the expense, the researcher was not able to access many of the
information which could have assisted in conducting the research more fruitfully. There was
also no prior research on problems in the organization and lack of reliable data has led to
many problems in conducting the analysis for the researcher.

Company profile
Unilever is headquartered in London, England, is a British multinational consumer
goods firm. Unilever is an international fast moving consumer goods (FMCG) corporation.
They sell a variety of foods, drinks, personal care products, and other items. Unilever owns
over 400 brands, produced 53.7 billion euros in revenue in 2017, and has thirteen brands with
incomes exceeding one billion euros. Foods & Refreshments (beverages and ice cream),
Home Care, and Beauty & Personal Care are the three major divisions of Unilever. In China,
India, the Netherlands, the United Kingdom, and the United States, it has research and
development facilities (Watch 2021).
 ORGANIZATION BEHAVIOUR 4

On September 2, 1929, the Dutch margarine producer Margarine Unie and the British
soap maker Lever Brothers amalgamated to form Unilever. During the next half of the
twentieth century, the corporation expanded from being a builder of oils and fats products
and stretched its activities internationally. Lipton, Brooke Bond, Chesebrough-Ponds, Best
Foods, Ben & Jerry's, Alberto-Culver, Dollar Shave Club, and Pukka Herbs are amongst the
businesses it has acquired (Murphy and Murphy 2018).

Unilever's goal is to bring energy to people's lives. The company is dedicated to

providing well-balanced nutrition, hygiene, and personal care products that meet a high brand
level. The business has a strong connection to the local culture, and its global reach has
resulted in a high level of customer relationship, which is critical for potential development.
The company's goal is to introduce the wealth of experience to consumers in the local sector,
allowing for the convergence of various communities and nations.

The firm makes use of its human resources to achieve success, and it is committed to
maintaining high levels of performance and efficiency through ongoing training and growth.
The company's organizational culture is uniform, and it has a tradition of looking forward to
the society and world in which it operates (Company profile for Unilever 2021).

Literature review

Motivation and Employee Engagement in Unilever

As stated by Kanfer, Frese and Johnson (2017), motivation is Persons' intrinsic

aspiration to complete responsibilities and achieve objectives. Organizational structure,
operational competence, and business culture are all variables that can affect employee
motivation. Motivating workers to reach their full potential is particularly crucial in the
workplace. Unilever has pioneered new strategies for ensuring high employee motivation and
retaining their most important assets. Through tracking employee engagement, performing
surveys, and conducting employee interviews, Unilever will serve as an instance for small
and large businesses ("How Unilever is achieving exceptional (HR) performance?" 2021).

Unilever has developed a "Social Impact Centre" on its worker portal to assist the
business in exposing its workforce to societal activities. This had a constructive influence on
the social order and connected the company to its social obligations. The center also provided
staff with human rights knowledge to support them understand their rights at work. In
addition to international human resource programs, Unilever's local branches participate in
 ORGANIZATION BEHAVIOUR 5

notable activities. Unilever Klev, for example, in recent times installed a system which
tracked employee productivity and contentment on a continuous basis (Articles 2021).
Workforces were permitted to enter their frame of mind into the device every day before
leaving, and this data assisted organization in determining whether or not the workers were
content with their work. Thus, assists the management in identifying employee engagement
issues.

Unilever has made a concerted effort to communicate with employees in order to

determine if they are aware of the company's mission and the position that they are required
to play. Employees are polled for their opinions on the improvements that need to be made in
order for the organization to meet its goals. Unilever started an employee engagement
initiative in 2009 to ensure that workers are interested in the company's vision and strategic
plans. Employee feedback is gathered through routine employee engagement surveys at
Unilever. Every two to three years, Unilever conducts a Global People Survey (GPS) of all
workers. A streamlined version of the survey is also being offered to Unilever's management
community (Articles 2021).

Successful Human Resource Management necessitates performance evaluation.

Employee engagement with performance appraisals boosts affective organizational
involvement and lowers turnover danger. Despite the fact that workers' inherent motivation
influences their job performance, their competence development is aided by their assessment
and appraisal. In this case, the primary goal of performance evaluation is to enrich
employees' work behaviors, experiences, and abilities. This contributes to their increased
effectiveness in achieving organizational goals (Nahar and Zayed 2019).

Another functional feature of Unilever's human resource department is the

performance management and compensation scheme that an organization develops to aid in
the maintenance of its employees' well-being. Performance management relies heavily on the
human resource department's position as a performance appraiser for all of the company's
employees. As a consequence, it is in control of monitoring individual employee output as
well as the behavior that goes along with it, whether it is poor or outstanding (Chiedu, Long
and Ashar 2017).

Unilever uses both process and content theories of motivation to motivate and
engage its workforce. Herzberg's two-factor theories are well-applied to provide workers
with both intrinsic and extrinsic incentives. Unilever, for example, gives bonuses to
 ORGANIZATION BEHAVIOUR 6

employees who reach deadlines and meet targets, as well as rewards to employees who are
loyal to the organization. Unilever offers a variety of flexible benefits to its employees, many
of which are aimed at assisting them in leading a healthy lifestyle. Salary and incentives, a
pension plan, sharing plans, a discount program, funding for higher education, health and
wellbeing programs, a family-friendly work environment, and volunteer assistance are only a
few of the company's perks ("Unilever Benefits" 2021).

On the other hand, the organization maintains harmony among employees of various
cultures in terms of respect, autonomy, pay scale, and other factors using equity theory.
Unilever's equal opportunity achievement is the result of a long-standing pledge to promoting
gender equality in the place of work. A devoted Diversity & Inclusion team has started a
range of initiatives, comprising a Global Diversity Board and a network of around a hundred
'Diversity & Inclusion Champions,' who have fixed the standard about in what way a
company can foster an inclusive culture through marketplaces. This approach is successful in
inspiring and attracting the company's employees (releases 2021).

Thus, in today's fiercely competitive market environments, the workforce has become
more flexible, making it impossible for businesses to retain their best employees. Among the
most effective means to reduce employee turnover in such a situation is to ensure that
employee motivation is upheld at a high level on a continuous basis (Murphy and Murphy
2018). This turns out in the form of high job satisfaction and organizational loyalty, stopping
employees from seeking employment elsewhere.

Organizational culture

Unilever is a consumer products giant with a global presence. The success of this
enterprise is recognized through its organizational culture and the policies and practices that
its leaders have applied over time. The community, leadership, and human resources of a
company are all interrelated. Unilever is a multibillion-dollar corporation with operations all
over the world. Any change or expansion in one area triggers changes or advancements in
others.

Unilever, for instance, has executed revolutionary methods to maintain high employee
productivity, with Unilever Klev serving as an example of one of those approaches. Many of
Unilever's policies revolved around the widespread usage of information technology that
simplified inner communication. Unilever's instance of in what way to use the best tools and
plans to improve employee satisfaction data would help both small and large businesses.
 ORGANIZATION BEHAVIOUR 7

Monitoring employee satisfaction and maintaining regular interaction with software-driven

employee development assists in enterprise management develop effective HR plans,
irrespective of the size of the business ("Unilever's Organizational Culture of Performance,"
2021).

Unilever's culture is performance-driven, emphasizing the importance of employee

output. This organizational culture often emphasizes the importance of metrics or pointers
used to measure required production and quality competence. Performance management
relies heavily on the human resource department's position as a performance appraiser for all
of the company's employees. As a consequence, it's in control of monitoring individual
employee success as well as the behaviors that go along with it ("Unilever's Organizational
Culture of Performance," 2021).

Since the organization has a performance-driven culture, it will need to place a greater
emphasis on employee well-being and motivation in order to increase throughput. The
process of performance evaluation and reward is critical for creating a happy and well-
motivated workforce. Employees are tired but motivated to work because the company's goal
is to maximize each employee's potential. In this situation, Unilever offers perks for meeting
deadlines and achieving targets, as well as perks for employees who are loyal to the brand
(Chiedu, Long & Ashar, 2017). The company's good reputation stems mostly from how it
treats its employees, with most of its subsidiaries benefiting from that reputation as well. As a
result, the company has been able to hire the right professional and qualified employees,
allowing it to grow and raise income by billions of euros per year.

Unilever's achievement is due to its leaders' capability to raise a culture of

performance and excellence. For regulating the business and develop productivity, the
company's leaders, for instance, hire market-based and results-based methods. Market-
oriented management regulates organization plans dependent on marketplace data. Results-
based approach, on the other hand, assists the company in attaining anticipated outcomes.
Inside the consumer goods industry, these plans help human resource competence and
administrative achievement. Consequently, Unilever's leadership and management styles
contribute towards the corporation's corporate culture.

Unilever's leadership-based approaches support to safeguard that corporate culture is

applied appropriately, mainly in the course of mergers and acquisitions. Reliability is acute in
mergers and acquisitions, wherever operative business amalgamation requires human
 ORGANIZATION BEHAVIOUR 8

resource incorporation. Unilever, for instance, utilizes results-based management to

implement the administrative culture over the newly merged corporation. In this way, the
corporation's leadership makes sure that the corporate culture of achievement and superiority
rests reliable even after mergers and acquisitions.

The development of Unilever's company culture is assisted by leadership. Human

resource systems and actions are impacted through the corporate culture. By everyday
observing and valuations, as well as commitment and collaboration from managers, Unilever
reinforces the business culture of accomplishment and superiority. The consequences of
valuations, for instance, are used to monitor HR undertakings which reinforce Unilever's
victory and quality culture. The requirements of employees are well-defined and combined
into HR program developments. The business inspires superiority as a crucial factor in
employee achievement and competence over this cultural strengthening.

Leadership

Unilever's success is linked to the company's dedication towards leadership. It

primarily demonstrates its dedication to leadership through corporate governance, which
embraces organizational reform and incorporates local cultures into a globally recognized
corporate structure. Unilever's dedication to leadership is based on its corporate governance.
Its Code of Business Ethics, for example, requires the organization and its subsidiaries to
follow globally recognized best practices when conducting business. As a result, the Code of
Corporate Principles encourages the organization to adhere to best practices such as
following the rules, embracing fierce competition, pursuing business ethics, fostering
diversity, and delivering quality services.

The company's principle is corporate governance. Surprisingly, leadership dedication

is still visible in Unilever, regardless of who is in charge. Former CEO Patrick Cescau, for
example, pioneered the “One Unilever” corporate governance model. This strategy aimed to
decentralize and expand the company's leadership and management activities.

Unilever responds to a variety of foreign environments as a multinational corporation.

Unilever is able to articulate complex and sensitive responses based on the cultural concerns
at hand thanks to commitment leadership. Unilever's leadership responds to cultural
challenges in its subsidiaries based on strategic disposition and configuration. Unilever's
ability to triumph over cultural frictions is influenced by cultural sensitivity. In addition, the
response allows the organization to pass competencies and ethical behaviors across national
 ORGANIZATION BEHAVIOUR 9

boundaries. Unilever's dedication towards leadership is also reflected in the company's

philosophy and practices. According to the new Unilever CEO, everybody in the business is a
leader if he or she has a good impact on everyone else. Leadership is regarded as one of
Unilever's key competencies.

This factor, in particular, has a significant impact on leadership development and

behaviors in the company's international operations. The definition of leadership
encompasses not only conventional aspects such as styles and characteristics, but also the
growth of leadership competencies as a result of organizational learning processes, as well as
competitive advantage. The interrelationship between leadership's proficiency and strategic
organizational contingency on the one side, and its strategy and behaviors on the other,
determines its effectiveness. Unilever's leadership depends on attitudes and actions that are
congruent with the deemed managerial contingencies to improve its effectiveness.

At Unilever, they guarantee that their leadership development policy, as well as

several supporting undertakings are inextricably connected to the complete corporate strategy
– if leadership undertakings don't complement the strategy, they are not even on the agenda.
Purpose-driven, honest leaders who want to leave a significant legacy for upcoming
generations are critical in achieving their long-term growth goals. With 173,000 workers
worldwide, company believes that one of the most effective means for Unilever to attract
capable people and executives is to ensure that their personal and professional interests are as
tightly associated as possible with their jobs (Unilever’s keys to leadership success 2021).
The top talent engages in the creation of their own growth plans, resulting in a mutually
agreed-upon and guided direction for them to grow and progress toward their long-term
goals. The company offers a number of leadership development initiatives, many of which
are based on the idea that leadership is "really about communicating the innate talents, how
you thrive on and get energy from," rather than conforming to a "style" of leadership.

Unilever also has a diversity of leadership initiatives which deals with difficult
situations; for instance, one initiative uses actual case studies from the Unilever industry to
illustrate some of the problems it has encountered recently. Unilever also run a market
simulation that shows how the world will be in ten years. It allows the leaders to comfortably
experiment with their decision-making while also allowing them to see the effect of their
current decisions on the future (Unilever’s keys to leadership success 2021).
 ORGANIZATION BEHAVIOUR 10

Issues related to engagement, motivation, culture and leadership

Unilever is a global leader in fast-moving consumer goods (FMCG). However, it has
infringed on a number of employee rights. Hindustan Lever, a Unilever subsidiary in India,
has abused human and employee rights by employing about 25000 children in the cultivation
of cotton seeds. They worked an average of ten to thirteen hours a day for a daily wage of just
forty cents. They should come into contact with toxic pesticides while working. The
organization tends to employ children over adults to save money on labor. In most cases, a
boy receives just 55% of what a man receives and 30% of what a woman receives. This
showed that the corporation was unconcerned with the employee's health and safety.

They were compelled to operate in hazardous environments for a subsistence wage.

As a result, a number of European countries, including Germany, the Netherlands, and
Ireland, have initiated anti-child labor campaigns. This movement started in Germany, then
moved to the Netherlands, and finally to Ireland. These campaigns emphasized that school is
the best place for children to learn, and that child labor should be avoided. Unilever
announced that it will no longer employ children in India. Unilever has directed Hindustan
Lever Limited to stop using child labor ("Unilever and child labour", 2021).

Another major concern is Unilever's incompetent approach towards recruitment and

training. Unilever pays scant attention to large-scale initial training for new recruits,
encouraging new workers to adapt and learn new procedures and policies on their own, with
only limited supervision from their supervisors. This is still a major concern, even among
adaptable and young people. This may explain why, despite the attractive pay, his coworkers
were quick to switch jobs. The average length of employment at Unilever is relatively short,
and employees have a low level of loyalty to the organization. As a result, employee
recruitment occurs almost continuously during the year.

Unilever's managers and employees have a tendency to quit after one or two years.
Despite the fact that Unilever's ethos is spread around the globe, the company has had
difficulty maintaining employee loyalty. It's also possible that this is due to the fact that
Unilever is a well-known company in the industry, and consumers often want to learn from
them and incorporate what they've learned in other companies for a number of reasons. This
may have an effect on the company's growth (Impact of Cultural Differences on
Organizational Performance in Unilever Nigeria, 2021). Since every employee needs time to
 ORGANIZATION BEHAVIOUR 11

adjust to the company's culture when they are hired, and every time an employee leaves, a
vacancy must be filled, which takes time.

Recommendations for Performance Management Strategy

Performance management is a continuous method of assessing and comparing real
and expected results. It emphasizes the importance of maintaining a robust communication
network between management and subordinates in order to ensure continuous improvisation
(Cappelli and Tavis 2016).

As the preceding discussions have shown, Unilever’s management team has

encountered important inner and outer challenges on a local and international level. Some of
these challenges are outside their control, but they should adapt and react flexibly to both
internal and external encounters in order to remain one of the leading conglomerates globally.
This part of the study reflects numerous strategies for strengthening and developing
management practices in order to continue to enhance employee morale and engagement, as
well as suggestions based on applicable theories on how the required changes can be
implemented (Wachira and Kariuki 2018).

Despite the fact that there are few existing issues with worker relationships, it is clear
that certain major modifications are needed to protect Unilever's future in the existing volatile
economic climate. Although Unilever is far from bankruptcy, recent years have seen
significant investment and struggle, with a focus on a huge number of mergers and
acquisitions to reinforce and combine their universal brand portfolio.

Unilever's culture is some of its accomplishments. The numerous aspects of the

company are functioning together to improve monetary outcomes and product superiority.
Distinct achievement is boosted through effective leadership. The business also upholds a
performance-oriented administrative culture through fetching together members from
numerous departments. In Unilever's consumer goods marketplace, this achievement culture
is established at the distinct and administrative levels.

Unilever's management structure could be enhanced further. It is suggested that

strategies be enhanced to promote diversity. In global industry, better diversity is inevitable,
and the organization should profit from it. Unilever might also make advancements in
information technology. For instance, progressive tools for marketplace analysis, consumer
relationships, and inner communications might support employees in a variability of
 ORGANIZATION BEHAVIOUR 12

conducts. These enhancements would support to strengthen the corporation's success culture
(Onifade, Opele and Okafor 2018).

Taking all of these variables into account, as well as all of the theories that have been
addressed and functional, it is clear that there is a self-perpetuating sequence and principles
of accomplishment which is inspiring Unilever's leaders to perform in a way which is
extremely prospective to help them in generating a vigorous company that is fit for existing
times. The leaders' cooperative and communicative style must be maintained and subtly
shaped into a cooperative and supportive approach in innovative acquisitions, constructing on
Maslow's theories to support, motivate and involve workforces in such a way that they
provide positive criticism and suggestions on in what way to help Unilever develop in the
existing demanding situation. Though it is understood that organization and organizational
culture cannot be modified immediate, as dependence on technology grows and organizations
must become more adaptable to thrive, it is expected that Unilever's current culture would be
sufficient to carry the company frontward.

Every performance must be monitored on regular basis. Monitoring is the systematic

collection, evaluation, and application of data to resolve specific employee concerns and
achieve consensus. The managers must closely track each and every move of the team
members, and they make appropriate suggestions to improve the team's performance on a
regular basis. Both staff and supervisors should have adequate input (Chebiego and Kariuki
2018).

Unilever should implement Performance Development Planning (PDP) as one of its

performance assessment and control systems. PDP connects individual objectives to the
organization's mission, empowering workers by instilling a sense of ownership. It keeps track
of the employees' activities and offers useful input on their success and competence
(Professional Development Plan 2021). The organization will be able to match production
goals with business priorities in this way. The monitoring and assessment of both the
employers' and subordinates' competencies is part of Performance Development Planning.
Employees will be assessed based on the data collected during the Performance Development
Planning evaluation. Employee competency levels should be compared to predetermined
criteria to determine ratings. It will be satisfactory if they are capable of performing at or
above the predicted levels. If not, it will become a cause of concern, necessitating immediate
action.
 ORGANIZATION BEHAVIOUR 13

It also becomes essential for the company to deliver sufficient training and education
to its workforces. Unilever must develop an intranet-based learning center in this regard. This
learning center offers a variety of resources to assist workers in articulating their abilities and
competencies. Employees are better prepared in this way, so they can devote their full
potential to achieving the corporate target while still achieving their personal objectives.

Conclusion
The above discussion concludes that Unilever is a global giant in consumer products
and has maintained a high culture of performance management. Being among the world’s
best companies, it has successfully gained success in creating a motivated workforce through
various rewards and programs. Also, the leadership programs inside the company have
guided its culture towards gaining competitive edge. The culture of the company plays a
vigorous role in keeping the company ahead of its competitors. This not only motivates the
employees but also helps in employee retention and brand building. However, the company
has faced many criticisms regarding its culture and employee rights but it has revitalized its
strategies by accepting criticism and being accountable for the wrong done. This has also
helped in creating a sustainable and ethical image of the company in the marketplace. Thus,
the company must implement the above mentioned strategies for removing its flaws and
always staying ahead in the competition. It's crucial to choose the correct plan. The effective
implementation of the strategy, on the other hand, is more significant. This will entail the
efficient use of Unilever's resources to meet predetermined goals. Communication is also
important to ensure that those in charge of executing the plan believe in it and are empowered
to do so effectively. Finally, once adopted, the plan should be tracked on a regular basis with
the goal of making improvements or improving it as needed to meet the goals.
 ORGANIZATION BEHAVIOUR 14

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