Tuesday, July 14, 2015

Human Resource Management of Unilever -0-

Human Resource Management of Unilever,Unilever.

Definition of hrm:

There are various definitions of HRM given by the HR experts are presented 


Human Resource (HR) management is designing management system to ensure that 

human talent is used effectively and efficiently to accomplish 

organizational goals.

Human Resource Management, 12th Edition (By Robert L. Mathis. John H.


HRM is "planning, organizing, directing, controlling of procurement,

development, compensation, integration , maintenance and separation of human

resources to the end that individual, organizational and social objectives

are achieved."

(Edwin Flippo)

Human resource management is a distinctive approach to employment management

which seeks to achieve competitive advantage through the strategic

deployment of a highly committed and capable workforce, using an integrated

array of Cultural, structural and personal techniques.

(John Storey, 1995)

A series of activities which: first enable working people and their

employing organizations to agree about the objectives and nature of their

working relationship and secondly, ensure that the agreement is fulfilled.

(They named it as Personnel Management) 

Human Resource Management at Unilever:
On the entry level the HR Department is mostly taking MBA 

graduates.According to Unilever their belief is that "Their people are their 

greatestasset”. The HR team takes great pride in acknowledging the 

contribution of each employee. Unilever focuses a lot on HR Development and 

for that theHR team ensures:

Staff of Unilever consists of world class Professionals and ensures thatthe 

right systems are in place to encourage people to develop to theirfull 


Collaborative and mutually supportive work environment is createdthat 

encourages people to grow.

Team of professionals is built which delivers expertise by participatingin 

business decisions.

Performance Management and Reward Systems are developed whichunderlies the 

Business strategy of Unilever.

A clearly defined Recruitment & Selection policy is defined.

The need for Training & Development of employees is assessed.

Compensation & Benefit plan is developed which ensures thatemployees are 

motivated.Unilever is basically equal employment opportunity organization. 

Almost 70%of its employees are male and 30% are female. The job description 

of eachand every employee is predefined. Performance appraisal is done on 

annualbasis. Average age of Unilever employee is 32 years. This shows that 

theyprefer young and energetic people for their middle and lower 

levelmanagement. High profile well experienced persons are considered for 

top-level management. Average Salary is 12000 for an employee.
In Unilever the hierarchy is very lean, in general the whole setup 

iscentralized, all the matters are to be reported to the head office and all 

thepolicies and targets are approved at the higher level. But at the branch 

levelthe structure is decentralized.
All of the employees serving at Unilever are very devoted as they are given 

awonderful learning environment to work, pay offered to them is also 

veryattractive and ample chance of progress motivates them to work more. 

Thejob analysis is done on targets assigned and daily routines. The 

employeesare indeed very satisfied and motivated.
Recruitment & Selection:
Recruitment is the process of gathering a pool of candidates for 

anorganizational vacancy. Selection is the process of short listing only 

thequalified candidates who are fit for the job. In terms of recruitment 

andselection it is important to consider carrying out a thorough job 

analysis todetermine the level of skills/technical abilities, competencies, 

flexibility of theemployee required etc. And HR at Unilever follows these 

criteria. Unileverpolicy of recruitment is very simple, if at any time there 

is a vacancy, due toretirement, resignation, if employees opted for the 

golden handshake or thedeath of an employee, the management of the branch 

will inform the headoffice about the vacancy. The head office will place an 

advertisement in allmajor newspaper with the all necessary information 

required to be furnishedby the applicant.Unilever has this policy of not 

mentioning the name of the company in a jobadvertisement. Usually hiring 

takes place through outsourcing with a help of a third party. Final 

selection takes place after the candidate has beeninterviewed by theManager 

of the department who requires the new employee and then the HRManager. On 

the joining day, the employee has to submit the followingdocuments to the HR 


Joining Report

Copies of educational and professional degrees/certificates

Reference Letter

Three copies of recent passport size photographs
Training & Development:
Training & Development involves improving the knowledge, skills andabilities 

of the individuals. A continuous training is conducted inside 

theorganization to improve the performance of the employee. There are 

twotypes of trainings conducted at Unilever:

In-house Training

External TrainingIn-house training is customized training which is only for 

Unilever employees.

hrm at u part3:

External training is carried out through trainers in training 

institutes.Employees atUnilever are usually trained through Rameez 

Allahwalla (in Karachi),Possibilities and Intec (two well-known training 

institutes).Before training “Training Need Analysis” (TNA) is conducted by 

the managerof the department. And after the training feedback from the 

employee istaken.
Compensation & Benefits:
A very effective way to retain an employee is to give him compensation 

andbenefits. At Unilever following benefits are given:

Medical Facility to employee and his/her parents

Paid Vacations

Accommodation Facility to energetic employees.
A newly hired employee is oriented so that he can get an idea about 

theorganizational setup so that he may feel at home. At Unilever 

orientationplan covers the following points:

Visits to different department of the company

Company’s Policies, Rules and Regulations
Human Resource Information System (HRIS):
At Unilever profiles of all the employees containing data relating 

theirpayroll, leaves, benefits etc is saved in a database known as HRIS. 

Unileveruses a locally procured HRIS which is to be upgraded using 

EnterpriseResource Planning (ERP).
Human Resource Planning:
Planning provides a guideline to accomplish an activity. At Unilever the 

HRteam plans everything so that the outcomes and results can be 

perceivedbefore the plan is actually implemented. This makes the planning 

moreaccurate and efficient; it also saves time and money.
Means of Internal Communication:
Purchase Request (PR):

Whenever an employee requires something from the admin, his request wasput 

forward by filling a simple form which includes name of the entity,

itsquantity, signature of the department etc. This is known as 

Travel Request (TR):
If an employee needs to travel on an official job, he has to give a 

TravelRequest by filling a form. The form includes purpose of travel, 

destination,time and distance.
Visiting Card Request (VCR):
In order to print visiting cards an employee needs to send a Visiting 

CardRequest to admin department after being authorized by the HR department.
Medical Reimbursement Form (MRF):
When an employee desires to get his medical benefit from the company, 

heneeds to fill in a Medical Reimbursement Form so that his request can be 

Joining Report (JR):
When a new employee joins the organization, he has to deliver a 

JoiningReport to the HR Department.
Means of External Communication:

Through Mail.

Through letters.

Through Post & other related services.

Through filling the survey forms from the public.

By conducting the workshop & Seminars for the promotion of Unilevercompany.

Through Societal marketing Practices.· etc etc.


HR supports and develops Unilever's most important asset – our people – by enabling them to deliver outstanding business performance. In HR, you're not just a part of the Unilever culture; you help create it.

An eye on the future

Our environment is about empowering individuals, both in terms of contributing to our business objectives and achieving their own personal and career goals. HR's job is to make sure we have highly skilled people across the organisation. Roles are split into three areas:

Business Partners

Identify the needs of the business in order to develop, manage and implement appropriate strategies. They ensure that the right structure, culture, people and capabilities are in place to foster positive working relationships.

Expertise teams

Work on policies, processes, systems and tools that allow each business area to attract, select and develop talented individuals. They also provide a connection with world-class external experts and keep us up to date with industry best practice.


Deliver and continuously improve services such as payroll, recruitment, pensions and benefits. They also track, monitor and aggressively manage service performance to ensure that it's delivered to the required quality and at the optimum cost.

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