In the present business context the process of adopting effective and efficient human resource management is highly important. It is to be monitored that by employing effective human resource management an organization can easily maintain the growth as well as increase the overall productivity. Hence, it can easily be understood that in order to run effectively and gain competitive advantage an organization needs to take up effective human resource strategies that are not only helpful in retaining and motivating the employees, but also is helpful in gaining a competitive edge over other organizations. In addition to this, it has monitored that the human resource practices such as sufficient compensation, developmental programs and wellness programs help an organization to motivate the employees to a great extent. Moreover, by taking up effective HRM strategies the organizations are able to establish harmonious organizational culture. As a result it has been monitored that the organizations are seeking for implanting effective HRM strategies that will be helpful in the recruitment, training and retention process of the staffs. However, it has also been monitored that organizations often face severe issues as a result of lack of effective HRM strategies. The report hence will focus on the HRM issues that have been faced by Unilever. Along with that the strategies and possible solutions have also been provided.
Unilever is a globally recognized organization that deals primarily in consumer goods. The organization is a British-Dutch company which has headquarter in London. Unilever is considered as one of the biggest and globally recognized organization. Over the year the company has made significant expansion in the global market. The company is primarily manufacturing food and beverages, personal hygiene and care products, home care products and cleaning agents (Shukla, 2014). Moreover, the company owns around 400 brands under their business. Along with that it is also to be mentioned that the organization has made its expansion 200 countries.
The mission statement of the organization specifies the companies aim at achieving global success. Moreover, the vision statement of the organization also specify the aim of making sustainable living. In addition to this, the vision statement of the organization also specifies the company’s belief for long term sustenance and business growth. In addition to this, the vision statement of the organization also emphasizes on the long term environmental sustenance (Long, Ajagbe & Kowang, 2014). To explain it furthermore it can be said that the organization aims at sustainable living and that is regarded as the core component of their vision statement. By analyzing the vision statement it can be understood that the organization is willing towards making effective changes in their products so that it can keep up with the demands of the changing market. In addition to this, the vision statement of the organization also mentions the aim of long term sustenance in the global market.
The mission statement of Unilever emphasizes the importance of adding vitality to the daily life of their consumers. As the organization is a giant manufacturer of food and beverage items as well as personal care products, the company looks forward to meet the nutritional and hygiene needs of the consumers. The mission statement specifies that the brand also wishes to take care of the needs to feel good and add vitality to lives (Bos?Nehles, Van Riemsdijk & Looise, 2013). The important elements of the mission statement of Unilever is to add vitality to the lives of the consumers, providing them with their nutritional, hygienic and personal care needs. In addition to this the mission statement also aims at adding feel good and look good factors to their products. It can easily be understood that by focusing on the feel and look good factors in their products, the company is aiming at grabbing the attention of the consumers who wish to look good and feel good.
By analyzing the mission and vision statement of the organization, it can be understood that the primary aim of the organization is to cater to the needs of the consumers present in the global market. In this regard, a detailed analysis of the organizational strategy can also be done. The primary aspect of the organizational strategy is gaining competitive advantage in the global market by ensuring customer satisfaction. Hence, it can easily be understood that the organization is considering consumers as their primary stakeholders of the organization (Hauptmann & Steger, 2013). In addition to this, it is also to be mentioned that the strategic lookout of the organization also emphasizes on the developmental needs of the employees. The mission statement rightly focuses on the demand of the consumers and is willing to change their product accordingly. Hence, it can easily be understood that the organization is also willing to take up training and developmental program for the employees. Moreover, it can easily understandable that the organizational strategy of Unilever is also efficiently linked with the mission and vision statement of the organization.
Another important organizational strategy that the company has taken up is market penetration. In order to ensure growth in the global market, the organization aims at global market penetration. The growth strategy of the organization is to make major expansion in the global market. Moreover, it can be understood that the growth strategy of the organization focuses not only capturing the global market but also coming up with new products that are suitable for individual market. The organizational strategy also includes the importance of product development (Nankervis et al., 2016). The growth strategy of Unilever incorporates product development as an effective growth strategy. It has been monitored that the organization aims at introducing new products that are suitable for the market demands. In addition to this, the organization also focuses on the process of developing the existing products. In addition to this, the organization has also taken up strategies to ensure product diversification. In order to grow in the global market, the company has employed effective strategies of diversifying their products. It has been noticed that at present the organization primarily specializes in the consumer goods (Belizon, Gunnigle & Morley, 2013). The company also has to face tough competition in the global market in this section. The expansion strategy of the organization hence also is focusing on the product diversification and expanding in manufacturing few luxury good items as well.
Another important business strategy that has been taken up by the organization is development of the market. By analyzing the organizational framework it can be understood that the organization has adopted the market development strategy as a supporting strategy of the market penetration framework. In order to expand to a global market and maintain a steady growth the organization has taken up market development strategy. By adopting this intense growth strategy the organization is aiming at entering into a new market. To elaborate it furthermore it can be said that the organization aims at focusing at a new marketing segment. As it can be understood that the organization has already made a significant global expansion. Hence, in order to support the process of expansion Unilever has adopted the market development strategy in order to focus into a particular marketing segment. However, it can be said that the company has already made significant presence in majority consumer goods (Correia, Cunha & Scholten, 2013). Hence, it can be said that the organization has taken up the strategy of market development as a supporting strategy to their intensive growth strategies. In this regard, it can also be said adopting these intensive growth strategies and their successful implementation is highly dependent on the HRM practices that he organization is taking up. In order to ensure successful implementation of these intensive marketing and growth strategies, Unilever needs to promote and practice organizational communication at the very initial steps. The employees need to be aware of the company’s organizational strategies and goals in order be more productive. In addition to this, the process of organizational communication is also important in order to ensure inputs from the employees (Gurkov & Settles, 2013). It can be understood that by adopting the methods of inclusion, the organization will be able to enforce better strategies within the organizational scenario. Hence, by encouraging the employees to share their views and ideas regarding these intense growth strategies, Unilever can successfully implement the market development strategy as well as the strategy of market penetration.
In order to identify and analyze the HRM issue that the organization is facing, a thorough analysis of the internal as well as external environment has to be done. Moreover, the present HRM issue are to be analyzed based upon the internal and external analysis (Aklamanu, Degbey & Tarba, 2016). In this regard it can be said that the company is facing significant problems as a result of ineffective HRM strategies. To analyze the internal factors that are affecting the HRM strategies of the organization, SWOT analysis has to be done.
Strengths:
It can be noticed that the primary aim of the company is to manufacture diverse and upgraded products to the consumers. Hence, it can easily be understood that the organizational strategy primarily focuses on the customers and regard them as their primary stakeholders. Hence, it can easily be understood that the HRM policies that the organization has taken up is focused on the stakeholders as well. To elaborate it furthermore it can be said that the HRM policies that has been taken up by the organization have been decided keeping in mind the market demands (Festing et al., 2013). The company hence has come up with extensive training and development programs to keep the employees updated about the latest technological advancements. In addition to this the organization has also taken up policies to provide effective benefits to the employees. The company has taken up employee friendly strategies. It has come up with sufficient compensation for the employees along with health benefits and other effective programs.
Weakness:
The major weakness of the HRM policies of Unilever is the lack of communication amongst the employees and the leaders of the organization. It has been monitored that although the organization has taken up effective strategies to train and provide benefits, it lacks in organizational communication. As a result, the employees often are not aware of the organizational aims and the change strategies. This has also created adverse effects on the production of the employees as well as the organization (Ngo, Jiang & Loi, 2014). Moreover, it can be said that due to lack of communication can lead to organizational turmoil many a times. Moreover, it is to be mentioned that the lack of communication is also resulting into demotivation amongst the employees of Unilever.
Opportunities:
By analyzing the growth strategies and organizational aim it can be understood that the organization aims at product diversification and capturing new market. Moreover, the company has training and developmental policies that are highly effective in increasing productivity of the organization (Banerji, 2013). In addition to this, it can be said that being a giant producer of consumer goods, the organization has significant market presence. As a result larger number of workforces are attracted towards the organization.
Threats:
In order to analyze the possible threats of the strategies that have been taken up by the organization, it can be understood that the presence of high competition is affecting the organization to a great extent (Gurkov, 2013). Moreover, it can be understood that the process of maintaining the position in the global market, the organization needs to take up effective strategies. As a result of the growing market and industries, employee retention has also become a significant issue.
In addition to the analysis of internal strengths and weaknesses of the organization, a detailed analysis of the external elements has also to be done in order to identify the reasons behind the present HRM issues that the organization is witnessing. In this regard the political, environmental, social, technological, economic and legal aspects of the organizational strategies are to be analyzed.
Political:
It can be noticed that political situation of a country play important role in deciding organizational strategies and effective implementation of them. In the context of the HRM policies that have been taken up by the organization, it can be said that Unilever should be aware and abide by the political situation of the host countries. It has been monitored that the political turbulence of any country can create significant impacts on the process of employee recruitment and retention policies. In addition to this, it can be said that due to the political turmoil within a country, the employees might get affected. Political issues have significant impacts on the lives of the common people (Rok & Mulej, 2014). As a result, the employees often are demotivated to perform within an organizational scenario. In addition to this, any political turmoil in the external environment affects the organizational environment as well. It can be noticed that the rise of organizational politics and consequent conflict affects the productivity of the employees to a great extent. Often it has been noticed that as a result of the organizational conflict, the HRM policies get highly affected.
Environmental:
The primary focus of the effective HRM policies are to ensure the overall wellbeing of the organization. In addition to this, it can also be said that the HRM strategies are affected as a resulted of the environmental issues. It can easily be understood that in order to ensure long term sustenance, organizations need to adopt policies and frameworks that are helpful in maintaining the environmental sustenance as well (Mehta & Chugan, 2015). It has been monitored that the external environment affects the organizational environment and production to a great extent. Moreover, it has been monitored that the external environment and climate plays important roles in the organizational functioning. It has been monitored that in extreme environmental climates the production and capability of the employees decrease automatically. Hence, in the context of Unilever it can be said that the organization needs to adopt preventive measures as well as employee friendly policies to support the needs of the workforce.
Social:
Business expansion and successful maintenance of the organizational framework, society plays highly significant role. To elaborate it furthermore it can be said that the stability of the society and its nature I to be regarded as important in deciding the organizational strategies for the market. Moreover, the social rules and regulations are highly influential in deciding the nature of the workforce. It has been monitored that the nature and skills of the employees are affected by the prevalent social rules and regulations (McDermott et al., 2015). The ideas and perceptions of the employees also vary due to the change of the social scenarios. In this regard, it can be said that the organization needs to adopt HRM strategies that are effective for the particular society. It can be understood that adopting HRM strategies and policies that are helpful as well as effective for any European country will not be relevant or helpful for an Asian country (Kim & Bae, 2017). In order to maintain organizational growth and functioning the organization needs to implement the process of inclusion. By including the views and ideas of the employees Unilever will be more able to understand the social condition of the host market.
Technological:
Technological advancement plays important role in increasing the production of an organization. It has been monitored that by using advanced technologies an organization can increase their productivity to a great extent (Thunnissen, Boselie & Fruytier, 2013). However, it is also to be mentioned that the employees should be aware of and well-versed with the new technologies. Hence, in order to implement advanced technologies within an organizational scenario an organization needs to adopt efficient training and developmental programs for their employees. This will help them in gaining knowledge regarding the new technologies and will consequently make them able to use the new technologies (Analoui, 2017). However, it has been noticed that organization often lacks the process of effective training program before bringing new technologies. As a result organizations often witness apprehension from the employees regarding the adoption of new technologies. Hence, in the context of Unilever, it can be said that the organization needs to adopt effective training programs to ensure effective adoption of new technologies.
Economic:
Economic condition of a country as well as an organization is highly important. It has been monitored that economic instability of a country creates adverse impacts on the organizational functioning. Productivity and stability of the employees also get affected as a result of the economic turmoil. Hence, the organization needs to implement effective strategies in order to ensure the organizational stability. In the context of Unilever, it can be mentioned that the organization has monitored economic turmoil in many of the Asian countries (Bachmann & Zaheer, 2013). It can also be monitored that due to the economic turmoil the employees of the organization suffer from lack of motivation. In addition to this, the organization can monitor lack of production as a result of reduced demand of the market. Hence, it can be said that the economic scenario of a market is highly influential in deciding organizational functioning (Jackson, Louw & Zhao, 2013). In order to reduce the risks of demotivation and less production, the HRM strategies of Unilever needs to be more effective. The organization should take up developmental programs and workshops to motivate the employees.
Legal:
Legal factors rules and regulations are highly significant in maintaining success of the organization. It can easily be understood that the legal rules and regulations are vastly different from one country to another. Hence, in order to keep up effective functioning an organization needs to adopt effective strategies. In order to ensure effective growth, Unilever should be aware of the diverse legal rules and regulations (Budhwar & Debrah, 2013). For an organization that has significant presence in the global market, complying with changing legal regulations is one of the most important strategies. In addition to this, it is also it be mentioned that the labor laws and rules also tend to differ from one country to another. In order to ensure effective production and eliminate turmoil, the HRM policies of Unilever needs to comply with the global laws that are prevalent in the present context.
By analyzing the organizational affairs it can be understood that the organization is facing problem due to low production and lack of employee retention. It can be understood that as a result of the global expansion, Unilever is depending upon a complex organizational structure (Gholami et al., 2016). Hence, it can also be understood that the HRM policies need to be more flexible so that it can comply with the global and ever changing market. It is to be mentioned that by analyzing the internal factors the organizational of Unilever multiple factors can be identified as influencing and creating impact on the HRM policies of the organization (Bhamu & Singh Sangwan, 2014). The primary factor that can that is creating most impact is the presence of high competition amongst the industries. Moreover, it can also be understood that as a result of the high competition amongst the manufacturers of the consumer goods, the employee retention capacity of the organization is decreasing significantly. Moreover, it is to be mentioned that lack of communication amongst the employees and the leaders are affecting the employees to a great extent.
Another important factor that is raising concern amongst the managers of the organization is the decrease in production of the employees (De Prins et al., 2014). It has been monitored that several external factors are creating adverse impact on the production of the employees. By analyzing the external factors it can be understood that the technological advancement and growing demand for diverse consumer products are affecting thee production significantly (Seeck & Diehl, 2017). Employees are often apprehensive about the adoption new technologies. Moreover, they are becomes also unsure about the organizational aims and goals. Hence, it can be understood that the organization lacks effective communication.
It can also be understood that the external factors creates significant impact in the HRM policies of the organization. Moreover, these factors creates great impact on the performance and motivation of the employees. In the present context it can be said that the social and political turmoil are creating adverse effect on the overall performance of the employees (Mazur, 2015). Hence, the significant factors that are influencing the HRM strategies and creating problem within the organizational scenario are the presence of tough competition, lack of effective organizational communication and socio-economic instability of the targeted market.
By analyzing the factors and elements that can create significant impacts on the human resource of the organization, it can be understood that both internal and external factors are influencing the performance and satisfaction of the employees (Mesu, Sanders & Riemsdijk, 2015). To resolve these problems effective HRM practices as well as possible solutions are to be analyzed. In this regard a detailed analysis of the possible HR practices are to be analyzed. It has been monitored that the primary and most important practice of the HRM framework of an organization is to regard the needs and demands of the organization as having highest importance (Carr et al., 2014). Hence, the HRM strategy should work effectively towards creating a balance between the organizational goals and expectations of the employees. Moreover, it is to be mentioned that the organization needs to take up HRM policies that are fit for the organizational culture. In this regard, it can be understood that the organization needs to adopt screening procedures while appointing employees. It has to be monitored that the HRM of Unilever should be implement strategies in order to identify and select the candidate who will be fit for organizational culture (Andrew, 2013). Moreover, it is to be mentioned that the screening and employing process should include organizational diversity. Another important factor of implementing effective HRM practices is to understand the factors that can influence and motivate the employees to a great extent. In this regard, it can be mentioned that the factors that can motivate include both financial as well as non-financial rewards. Moreover, organizations needs to adopt flexible approaches by using modern technology.
It is to be mentioned that the in order to support the HRM practices of an organization certain HR activities are considered as effective in the global context (Gannon, Roper & Doherty, 2015). Moreover, it can be monitored that he HR practices can be applied irrespective of organizational structure or industry type. Hence, the best practice model incorporates the HR practices that are effective and creates a close connection between organizational performance and HRM practices (Fassinger & Morrow, 2013). The primary look out of the best practices HRM approach is to ensure engaging highly skilled employees, providing effective and sufficient training to the employees and motivating them. It has been monitored these are some of the strategies that are to be taken up universally by organizations, irrespective of their framework and industries.
In comparison to the best practice approach, the best fit approach is more focused towards the organizational performance. It is to be mentioned that the best fit approach includes the strategic approach towards the organizational goals. By adopting the HRM approach, the organizations become capable of deciding the future planning activities and organizational objectives (Armstrong & Taylor, 2014). It has been monitored that the best fit approach tend to question the relevance of best practice approach. Along with involvement of effective and skilled labors the strategy includes approaches of focusing on the needs and expectations of other stakeholders such as the consumers, suppliers and the competitors.
As it is widely known that the HRM practices of an organization is to cater to the needs of the organizational aims. Moreover, organizations take up HRM policies to ensure better service and production to the consumers (Alagaraja, 2013). In this regard it is to be mentioned that the strategic framework of an organization include the process of employing efficient workforce, arranging training and developmental needs and ensure organizational development. Hence, by adopting thee strategies ensure effective organizational functioning as well as employee satisfaction.
It has been widely accepted that the primary aim of the HRM strategies is to cater to needs of the employees while efficiently managing organizational operations and functioning. In this regard, it can also be understood that one of the most effective strategies of HRM is to motivate the employees and encourage them to share their views and ideas (Katou, Budhwar & Patel, 2014). Moreover, it is to be mentioned that the motivational theory also includes the aspect of providing basic securities to the employees of an organization (Hauff, Alewell & Hansen, 2014). In this regard, it is to be mentioned that the motivational theory hence focuses on and emphasizes the importance of priding job security and catering to the needs of social well-being of the employees. It has been proved that the providing the employees with these securities help in motivating them to a great extent. As a result of this, the production of employees also increases significantly.
Ensuring job design of the employees is regarded as one of the most important aspect of human resource management. Moreover, theories specify that the process of job designing is one of the core functions of the HRM practices (Al Ariss, Cascio & Paauwe, 2014). Moreover, it is to be mentioned that the deciding the job role creates a sense of job satisfaction amongst the employees. In this regard the importance of deciding job designs and expected behavioral outcome are regarded as some of the key factors in obtaining job satisfaction.
Another important factor that derives best HRM practices is implementing team work. It has been monitored that the organizations that adopt team work are more likely to perform effectively (Dries, 2013). In addition to this, it has also been monitored that by implementing team work in a more robust manner an organization is able to implement organizational communication in a more effective manner.
After analyzing the internal and external factors that are playing important role in deciding the organizational functioning and successful HRM policies it can be said that the organization is facing HRM issues due to multiple factor. It can be said that the primary problems that the human resource management of the organization is facing are the lack of training and developmental programs, employee retention and effective production. In addition to this it can be said that the organization is facing these problems due to the lack of effective HRM strategies as well as few external factors. In order to overcome the situation, few recommendations are to be made.
Conclusion
To conclude, it can be said that though the organization has taken up effective HRM strategies in order to ensure long term sustenance in the global market, it needs to adopt more employee friendly strategies. By employing effective and employee friendly strategies the organization will be able to increase staff satisfaction and productivity. In addition to this the organization also needs to take up training and developmental programs for the employees. It can be said that by taking up robust training and developmental program the organization will be able to keep up with the ever changing demands of the global market and technological advancement. Moreover, from the analysis it can be understood that the by employing effective HRM strategies the organization will also be able to adaptive and resilient towards the changing market. Effective HRM practices will also help the organization to utilize the skills and talent of the employees in a more effective manner.
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