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Published by: Maryam Khan on May 15, 2011
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ORGANIZATION INTRODUCTION Lever Brothers Pakistan Limited is a multinational organization. Unilever PLC London is its parent company.

Unilever is a European based company with headquarters in London, and their shares are quoted at the stock exchange of several European countries. They deal in all kinds of products from animal foodstuff to foods and detergents plus other personal and consumer products. Unilever has its subsidiaries in over 80 countries of the world, to which it spreads its vast knowledge and resources. William Lever (its originator) commences business in England as a grocer. He established Lever Brothers in 1827 in England Sunlight was the first product of Lever Brothers, which makes the beginning of the marketing of branded products at the same time Margarine Uni was established in Nether Land by Simon Van Berg and Anton Jurgens. These two companies in term of: Buying raw material selling finished goods Consequently both the companies loosing out money in term of profit. These problems led to think of the mergers in 1930. These two companies merged together and renamed the business as Unilever PLC / the word UNI is taken from margarine Uni and Lever is taken from Lever Brothers. Its head quarter was established in England and Rotter Dam. Unilever has 500 operating companies in 80 countries. It has 0.3 million employees and turnover of sales in 23000 million pounds. The global business proportion is 60% in Europe 20% in North America and 20% in rest of the world. An identified board of directors control the activities of subsidiary companies throughout the world. Lever Brothers Pakistan Limited started its operations in 1948. A merger of Sadiq Vegetable Oils and Allied Industries existed in Rahim Yar Khan was taken place with Lever Brothers and HVM company based at Karachi. As a result of merger Lever Brothers Pakistan Limited was incorporated as an independent Unilever operating company in 1955. The company is quoted on the Karachi, Lahore and Islamabad Stock Exchanges. Lever Brothers Pakistan Limited has around 1900 employees in Pakistan.

Lever Brothers Pakistan Limited played a dynamic role in boosting consumer products market. It stand at a unique position due to its honesty and integrity. Lever Brothers Pakistan Limited¶s main divisions of business are: MERGER WITH BROOKE BOND Brooke Bond Pakistan Limited was incorporated in 1948. Company¶s 40% shares are held by Unilever, 21% by financial institutions, 24% by individuals, and 10% by insurance companies. The company is quoted on Karachi and Lahore Stock Exchange market. The company is manually engaged in the blending, packaging and marketing of tea. It also has a small business in the sale of packing apices. The company employs around 850 persons. And has three manufacturing locations situated in Karachi and Khanewal. It also have three regional sales offices. The head office of the company is located in Karachi. After the amalgamation of Lever and Brooke Bond, Unilever will have a majority shareholding in the combined company and it will provide a comparable level of technical, management and financial resources. The proposed merger will benefit the consumer in term of price and quality. ACQUISITION Lever Brothers Pakistan Limited acquires the shares of Pakistan Industrial Promoters Limited, Mehran International Limited and Ambrosia International Limited, which is known as Polka Group of Ice Cream Companies. VISION OF LEVER BROTHERS PAKISTAN LIMITED The vision of Lever Brothers Pakistan Limited is driven by is the commitment to excel and we are here to sell aspiration not brand. So, the core vision is integrating and that is to excel in every field whatever Lever Brothers do to provide customer delight and value. The Lever Brothers have been able to follow the track set by their vision and to achieve the standards set by their customers.

MISSION STATEMENT OF LEVER BROTHERS PAKISTAN LIMITED Lever Brothers Pakistan Limited will be the foremost consumer company in Pakistan with the dominant position in laundry, personal wash, skin, ice creams and spreads: a leading position in tea, hair, dental and household care and a sustainably profitable position in cooking oil and fats. 1. We will aim at delivering a 15% UVG rate, hence doubling the size of our business over 5 years and thereby delivering superior value creation. 2. We will achieve this by adopting a broad view of our market by seeking the new opportunities in the core categories of Unilever and by staying closer to all consumers than competitors, understanding their evolving needs and focusing on constant delivery of superior value for our brands through innovation. 3. Competitive advantage will also be developed by driving down relentlessly on relative cost positions and outpacing competition in operational efficiency improvement. 4. We shall build on our strong network of distributors to maximize penetrations and visibility in existing channels and to develop all new channels relevant to our consumers. 5. We shall establish Unilever¶s core brands in Afghanistan, building brand loyalty and strong distribution in the market. 6. To achieve these standards of performance, Lever Brothers Pakistan Limited will develop a strategically focussed organization and will motivate its personnel to use its full potential of creativity and commitment. It will also leverage Unilever¶s best practices and maintain the highest standards of operational control. 7. Through its commitment to high levels of care and safety for its employees, its consumers and the environment, Lever Brothers Pakistan Limited will be exemplary and will participate in the dissemination of such practices in Pakistan.

Lever Brothers Pakistan Limited pays extra attention to the complaints of consumers. So they provide extensive attention to developing human resources. CUSTOMERS Lever Brothers Pakistan Limited is the customers focus organization. e. With a questionnaire for suggestion for further improvement on the top of which is written ³WE CARE ABOUT YOU´. The development of their potential is core to Lever Brothers Pakistan Limited business. if the consumer complaints that detergent harmed any cloth or skin they send the sample for lab test a team analyzes that customer complaint is right or not and then they send the detailed response to customer along with gift of their products.g. safety and protection of the environment in which they live and work. INTEGRITY Lever Brothers Pakistan Limited never compromise on integrity management adhere to high standards in all they do.ANALYSIS OF MISSION STATEMENT MISSION CONTENTS ORGANIZATION PHILOSOPHY PEOPLE Peoples are key to strengths of Lever Brothers Pakistan Limited. . Their brands always deliver the high quality as they premise. ENVIRONMENT RESPONSIBILITY Management adheres to all national and Unilever standards to ensure health. They do delight customers with their products and service. SUPPLIERS Suppliers are considered the partners of Lever Brothers Pakistan Limited and Lever Brothers Pakistan Limited maintain mutually beneficial relationship with them.

e. by seeking the new opportunities in the core categories and by staying closer to all consumers than competitors and understanding their evolving needs and focusing on constant delivery of superior value for our brands through innovation´. Lever Brothers Pakistan Limited¶s mission statement contains concerns about all stakeholders. employee commitment to organizational objectives and mission and creating value for customers. suppliers. ORGANIZATION KEY VALUE It defines that what they want. So. CRITICAL SUCCESS FACTOR The central issue of this factor is that what do they have to be good at to succeed in this market or industry. First be foremost consumers and then other stakeholders and describes it as: ³Through its commitment to high level of core and safety for its employees. So far them critical success factor is consumer connectivity and commitment to excel and to provide superior value to customers and products of superior quality and value. The mission statement outlines this as ³adopting a broad view of our market. go for innovation. Lever Brothers Pakistan Limited¶s field of operations is the consumer products and business and this is very clearly stated in their mission statement. They people of organization to be good at or how do they want them to behave and this very clearly stated in mission statement as always stay responsive to change. its consumers and environment. stockholders. customers and community at large. Lever Brothers . PRODUCT MARKET DOMAIN This factor indicates where they are going to compete. CONCERN FOR DIFFERENT STAKEHOLDERS Mission statement describes that what are the obligations to different stakeholders i.PROFIT It is considered to be the ultimate measure of Lever Brothers Pakistan Limited¶s performance and it is required to maintain and grow their business. employees. if we check the mission statement through this aspect then we can easily state that they have clearly stated what should be the organizational key values and how to reinforce them.

Pakistan Limited will be exemplary and will participate in the dissemination of such practices in Pakistan´. organization key values. They are going for unique combination of cost reduction and superior value to customers so they entirely provide the form and source of competitive advantage that what they wanted to achieve and how they will achieve it. and concern for different stakeholders) so therefore. FORM AND SOURCES OF COMPETITIVE ADVANTAGES Mission statement of Lever Brothers Pakistan Limited completely describes the form and sources of competitive advantage as: ³Competitive advantage will be developed by driving down relentlessly on relative cost positions and outpacing competitor¶s in operational efficiency improvements and through building strong network of distributors and by developing a strategically focused organization and by motivating its personnel to use its full potential of creativity and commitment and by maintaining the higher standards of operational control´. we can say that the mission statement of Lever Brothers Pakistan Limited is a global mission as according to the following exhibit. . SCOPE AND TYPES OF MISSION The mission of Lever Brothers Pakistan Limited covers both the external dimension (product market domain. critical success factors) and internal dimensions (philosophy. form and sources of competitive advantage.

5. So in this way they wan to be very close to customer. i. drink.e. distribution and packaging cost and finally reducing all the human cost to offer a competitive price to customer maintain the high standards of quality. 6. Have entered and will be aggressively developing new markets. 3. to know their real insight and desires so they can develop new strategy for product design and can implement their strategy in better manner i. They want to be cost efficient i. be exciting to their customers with stream of innovative products. 7.OBJECTIVES OF LEVER BROTHERS PAKISTAN LIMITED AND ATTAINMENT OF OBJECTIVES OBJECTIVES OF LEVER BROTHERS PAKISTAN LIMITED 1. avoidance of hit and trial approach and hitting the right target with right strategy at right time in right and accurate manner. how they spend their lives. 4.e. Lever Brothers Pakistan Limited has an objective to have a responsive supply chain and technological based processes. 8. 2. they want to know what they eat. what are their preferences. To have a partnership with their suppliers to enable them to provide high quality low cost material.e. they want to reduce in their cost of production. They want to have consumer connectivity. cost of transportation. To be no in all their existing markets. Their main objective is to have a double-digit growth and resultant cash flows will be utilized in improving the product quality and contents to enhance the value to customer and final users. .

Reporting to the management committee members are departmental heads who are responsible for advising the management committee for planning and implementation of policies for ensuring that targets are reached. Mashkoor Alam Mr. J.STRUCTURAL ANALYSIS ORGANIZATIONAL STRUCTURE AND MANAGEMENT OF LEVER BROTHERS PAKISTAN LIMITED Lever Brothers Pakistan Limited restructures the organization after the merger with Brooke Bond Pakistan Limited. He leads the seven member¶s management committee. Perwaiz Hassan Khan Mr. J. Mujib-ur-Rehman Mr. Lain Strachan Sangster Mr. Fateh Ali W. The chairman is the executive officer of Lever Brothers Pakistan Limited. Khockhar Mr. Perwaiz Hassan Khan Mr. Clive David Welland (Chairman & Chief Executive) (Vice Chairman) (Technical & Logistics Director) (Director Personnel) (Director Sales) (Director Commercial) (Business Unit manager ODF) (Director Food Business) . Clive David Welland BOARD OF DIRECTORS The board of directors controls the whole operation of the organization it includes the following personalities: Mr. Mujib-ur-Rehman Mr. A. Lee Mr. Lee Mr. Bandaranayake Mr. which is the top of decision making. The management is responsible for corporate strategy of Lever Brothers Pakistan Limited and for initiating policies and overall planning as well as their general management duties. A. A. D. Syed Babar Ali Mr. Lain Strachan Sangster Mr. I. Management committee members are each responsible for specific function. Vellani Mr. N. The committee includes: Mr.

The management of the company includes Syed Babar Ali as director. Abdul GhaniBachani Mr. Azim Azmat Osman As we can notice that the management of the company is composed of a mix of international and Pakistanis business professionalists. Patel Mr. M. D. Bandaranayake Mr. . A.e. Asadullah Sheikh Mr.e. Packages and other industries. Sindh. N. S. Jeff Lee who has world wide experience in this field. Dr. It includes in its board meetings one member from each province i. NWFP and Baluchistan. Punjab. The top management of the company is fully professional specially marketing department which is headed by Mr. who is also involved in many other organizations i.Mr.


We cannot say that the structure of Lever Brothers Pakistan Limited is an ideal or exact functional structure as in functional structure CEO is in direct supervision of each primary activity but Lever Brothers Pakistan Limited have also included layers of vice chairman and very important management committee as described earlier. The chairman and management committee as well as the most of the department heads have their offices there. This structure maximizes the basic advantage of functional structure that the CEO is in charge and well informed about each primary activity and minimizes the basic disadvantage of functional structure that an organization become larger or more diverse. and the functional directors to take a strategic perspective on problems. To continue with structure analysis discussion. marketing.e. which is true in the case of Lever Brothers Pakistan Limited and to offset this disadvantage they have created additional layer of management committee which is responsible of coordination between CEO and chairman. finance. which determines an organization¶s structure i. its based on the primary tasks that have to be carried out such as production. Threat of new entrants . Lever Brothers Pakistan Limited has an ideal structure to oversee the whole organization and to control the operations of the organization which in turn create problems as of very slow decision making process and very centralized too. accounting. etc. then CEO. and then there is separate department for each function and these functions are carried out by directors and they are assisted by managers of that very particular function like marketing manager and those managers have divided each product category into home and fabric care category. 1. Its head office is located in Karachi at Avari Towers. now let¶s turn our discussion to five basic forces. vice chairman. senior management can be over burdened with everyday operational issues. spread and cooking category. So. etc. STRUCTURAL ANALYSIS Lever Brothers Pakistan Limited has a functional structure i. And these categories are headed by one product manager and assistant manager.BRANCH STRUCTURE All over Pakistan 6 branches of Lever Brothers Pakistan Limited are working.e.

e. THREAT OF NEW ENTRANTS These potential threats always exist in every organization. So. spread. situation of healthy competition exist. they don¶t face any significant supplier power. no body would like to loose a buyer like Lever Brothers Pakistan Limited so. Threat of substitutes Buyer power Supplier power Competitive rivalry. they have very diversified product categories and within each category they have brands targeted at almost each and every segment of the market so they don¶t face the buyers power as such but still ³customer is king´ and they do have to pay a lot of attention to buyers being a consumer product company. soaps. SUPPLIER POWER Suppliers don¶t exert any power over Lever Brothers Pakistan Limited rather Lever Brothers Pakistan Limited provides buyer¶s power in this case. fabric care. etc. 4. BUYER POWER To determine buyer power one condition is always necessary i. But an organization like Lever Brothers Pakistan Limited this threat is very minimum because you need a giant to compete with another giant like Lever Brothers Pakistan Limited and in a relatively small market like Pakistan. they face no threat of any new entrant. so. the buyers are few so they exert power over an organization. STRUCTURE TYPES IN MULTINATIONAL COMPANIES . oil.2. But this condition is not present in case of Lever Brothers Pakistan Limited. THREAT OF SUBSTITUTES Same as in the case of new entrant no as such threat they are facing. COMPETITIVE RIVALRY Competition is intense but not cut throat competition and all of them avoid frontal assault or direct attack. they are enjoying the highest market shares in most of their product categories like ghee. 5. Competitive rivalry would be discussed more in detail in the section ³competitor analysis´. 3.

The corporate center manages a global network by first establishing the role of each subsidiary. which originated in many European countries such as Unilever or Nestle needed to internationalize their activities at an early stage. which attempts to combine the local responsiveness of the international subsidiary with the advantages available from coordination found in global product companies. staying independent and responsive towards local or national market and yet not loosing touch or coordination with the worldwide network and parent company. but is a source of ideas and capabilities for the whole corporation.The growth in the size and importance of multinational business warrants some special mention. This took the firm of ³international subsidiaries´ but now their challenge is to reduce the local autonomy and increase global coordination. Unilever has well coped with these challenges by adopting the transnational corporation structure. The issue of local autonomy. then sustaining the culture and system to make the network operates efficiently or in a way we can say that they have combined global and multi-domestic strategy. owing to the small size of their home markets. On the basis of these factors there are generally four types of multinational structures. such as: In all the four structures. in which: 1. In deciding the structure of multinational critical aspect or factor or issue is the extent to which local independence and responsiveness take precedence over global coordination. 2. Barriers between their separate strategic views of the domestic and international business. since the structural implications can be significant. Companies. 3. There are interesting differences between countries in the way that global strategy tend to develop. 2. Unilever has assumed the structure of transnational corporations in which they have developed structure. . Each national unit operates independently. But in contrast US companies with a large domestic market tended to favor ³international divisions´ and now they face two challenges: 1. The key is that they wanted to create an integrated network of interdependent resources and competencies.

we want everyone to be healthy.HR POLICIES ON EMPLOYEE BENEFITS ³It is vital we have people with the right talent. As part of our Unilever Sustainable Living Plan (launched in November 2010). reduce office waste. integrity and values have always been central to Unilever and will continue to be so. and. we recognise the need to offer those ways to take advantage of opportunities. People. Our transformation process Started in 2005. reduce energy consumption in our offices. WINNING WITH PEOPLE We believe in providing an environment where individuals can achieve their goals. See 'Developing and engaging our people' for more. reduce employee travel. We can do this most effectively if we harness people¶s own passion for making a difference to help the company achieve its sustainability goals. To ensure our long-term prosperity. we are determined to become faster. increase sustainable sourcing of office materials. In 2009 we updated some of our performance management tools. improve employee health and nutrition. This describes the way in which we seek to treat our people and also the high standards of behaviour and integrity we expect of them. skills and creativity.´ Our approach We are developing the people and building the structures to help us advance towards our new vision. our One Unilever transformation process was nearing completion at the end of 2009. and more directions in which to pursue their careers. both professionally and personally. motivated and committed. speed up decision-making and improve . we have set ourselves bold new targets for creating a better workplace: Reduce workplace injuries and accidents. more focused and more competitive. A place to succeed We are building a performance culture that rewards people who deliver. Our approach is founded in our values as set out in our Code of Business Principles. In order to attract and retain the best people. Our aim was to simplify our business structure. But within that context. Sustainability is now even more closely tied to our business strategy. Inspiring our people and motivating them to succeed will help us deliver our growth ambition. room to succeed and grow. for example introducing a global performance and talent management system. Delivering this requires a workforce that is aware of the wider impacts the business has on society and the environment.

we moved swiftly to establish multi-country organizations (MCOs) in all our geographies. goods receipt. Reduce energy consumption in our offices. We focused on three major areas: restructuring and simplifying our organization. By 2020 we will halve the energy (kWh) purchased per occupant for the offices in our top 21 countries versus 2010. and in 2010 we have created a new global business unit integrating the services of IT. After creating One Unilever operating companies in each country around the world. In 2011 we aim to extend the reach to a further eight countries. Human Resources. developing employee skills and capabilities. recycled or recovered by 2015. Finance. We will send zero waste to landfill by 2017. Information Management and Workplace & Travel Services as a step towards creating an agile and cost-competitive organization for the future. We now have a total of 24 MCOs. and embedding a performance-driven culture. Reduce employee travel. fitness and mental resilience of employees. Improve employee health and nutrition. By 2015 we will reduce paper consumption by 30% per head in our top 21 countries. reaching 35. We have also been streamlining our business. By 2011 this network will cover more than 30 countries. By 2020 we will reduce the total recordable accident frequency rate in our factories and offices by 50% versus 2008. financial y y y y y y . purchase order processes. We are investing in advanced video conferencing Facilities to make communication easier while reducing travel for our employees. Our longer-term goal is to extend the reach to all countries where we operate.competitiveness. We will eliminate paper in our invoicing. It has already been implemented in 30 countries. The new unit will continue to use a combination of in-house and outsourced services to meet Unilever¶s evolving needs. y Our Lamplighter employee program aims to improve the nutrition.000 people. Our Targets y y y Reduce workplace injuries and accidents We aim for zero workplace injuries. Our operating companies are now much leaner and better equipped to focus on serving local consumers and customers at competitive costs. with a single management team leading a cluster of countries.Reduce office waste At least 90% of our office waste in our top 21 countries will be reused.

where legally allowable and technically possible. Remuneration Policies ‡ ‡ ‡ ‡ ‡ ‡ ‡ Principles of Work Levels My Salary My Variable Pay Cash Award Values in Practice Share Options Variable Pay in Shares Workplace Benefit ‡ ‡ ‡ ‡ Diversity Dress Code Hygiene Cafeteria Entitlements ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ On Transfer On Joining Products on Discount Meal Allowance Shift Allowance Mobile Phones/Landlines Loans Group Insurance Leave House Lease Clubs . By 2013 we will source all paper-based office materials from either certified sustainable forests or recycled sources.y reporting and employee expense processing by 2015. Increase sustainable sourcing of office material.

‡ Health ‡ Long Service Medical Policy Travel and Transport ‡ ‡ ‡ ‡ ‡ ‡ Domestic Travel Travel by Road International Travel Travel & Insurance Transport Pick and Drop Safety and Security ‡ ‡ ‡ ‡ ‡ Emergency Evacuation Travel by Road Fire Drill Bomb Threat Off-site Events Leisure ‡ ‡ Beach Huts Sports Self Development ‡ Education Assistance Retirement ‡ On Separation or Retirement .


regulation. share options and variable pay in shares. Recruitment is the process of gathering a pool of candidates for an organizational vacancy.MANAGEMENT STYLE OBSERVED/INTERVIEWED AT UNILEVER  DECISION MAKING The fast-moving consumer goods giant is undergoing a cultural change in the way the company approaches strategic decision making. We managed to develop & deploy the system in 2. 2000. People with this attitude and approach will find Unilever challenging. inspiring and highly rewarding´ Unilever has this strategy of recruiting people at a rigorous path. safety. and corporate acquisitions. functionally as well as technically. Unilever has applied Decision Making under Uncertainty to hard-to-resolve questions in product development. And officers entered their data for 2003. and also setup Indiawide multi-location helpdesks to handle the high quanta of data. based on the Performance Management Model followed at HLL. ³HLL wanted a Performance Appraisal and Competency Enhancement system for its officers.  PERFORMANCE APPRAISALS Performance appraisals are done and accordingly rewards are designed for motivation of workers such as cash awards value in practice. 2001 & 2002.  RECRUTIMENT ³We believe that individuals should drive their own careers and that life at work should be a continuous learning journey. About 4000-5000 officers' data was absorbed for the previous 3 yrs.This whole process was supported without any hitches and the whole exercise completed in under a month´. Selection is the process of short listing only the qualified candidates who are . The problem was that there were no records of the details of officers in a consolidated form. Helpdesks were setup in the four main metros and Bangalore to handle regional data and provide regional support. But they hire highly skilled and trained people so these people perform accordingly.5 months. Seizing the opportunity to make a difference is more important than simply progressing up the ladder. Unilever has implemented the process called Decision Making under Uncertainty. We were also given a ridiculously short deadline of 3 months to develop the whole software and absorb data into it.

flexibility of the employee required etc. if at any time there is a vacancy. A continuous training is conducted inside the organization to improve the performance of the employee. skills and abilities of the individuals. At Unilever following benefits are given: ‡ Medical Facility to employee and his/her parents ‡ Paid Vacations ‡ Accommodation Facility to energetic employees Executive Directors enjoy similar benefits to many other employees of the Unilever Group. if employees opted for the golden hand shake or the death of an employee. due to retirement. Training & Development involves improving the knowledge. And after the training feedback from the employee is taken. Unilever policy of recruitment is very simple.fit for the job. Before training ³Training Need Analysis´ (TNA) is conducted by the manager of the department. There are two types of trainings conducted at Unilever: ‡ In-house Training ‡ External Training In-house training is customized training which is only for Unilever employees. Employees at Unilever are usually trained through Rameez Allahwalla (in Karachi). External training is carried out through trainers in training institutes. trainer led learning. the use of company cars (or cash in lieu) and assistance with relocation costs when moving from one country to another. . BOTH PROFESSIONAL & PERSONAL. This usually happens through classroom.  BENEFITS FOR EMPLOYEES A very effective way to retain an employee is to give him compensation and benefits. operational visits to other countries and sites along with professional certification courses. A lot of emphasis is placed on professional skills development which are technical skills required for your job. General skills will also be developed with the aid of e-learning courses. They also receive an allowance to cover small out-of-pocket expenses not covered by the reimbursement of their business entertaining expenses. resignation. the management of the branch will inform the head office about the vacancy. In terms of recruitment and selection it is important to consider carrying out a thorough job analysis to determine the level of skills/technical abilities. competencies. These include subsidized medical insurance. The head office will place an advertisement in all major news paper with the all necessary information required to be furnished by the applicant  TRAINING AND DEVELOPMENT EARNING IS AN INTEGRAL PART OF LIFE AT UNILEVER AND THERE ARE MANY WAYS IN WHICH YOU CAN DEVELOP YOUR SKILLS. Possibilities and Intec (two well-known training institutes). virtual instructor led programs and the traditional classroom style instructor led programs. And HR at Unilever follows these criteria.

easy access to actionable information on both a regional and global basis. employees at Unilever needed fast. in general the whole setup is centralized. One of the greatest priorities on the UIP agenda was to find a quick data integration solution to allow user access to any number of data sources for in-depth analysis.  ORGANIZATION STRUCTURE In Unilever the hierarchy is very lean. Unilever had a decentralized IT infrastructure with multiple environments. the IT department launched the Unilever Information Program (UIP) to develop an infrastructure to support the Path to Growth strategy. To get to this point. BPCS. it also saves time and money. benefits etc is saved in a database known as HRIS. HUMAN RESOURCE PLANNING Planning provides a guideline to accomplish an activity. At Unilever profiles of all the employees containing data relating their payroll. Unilever uses a locally procured HRIS which is to be upgraded using Enterprise Resource Planning (ERP). This makes the planning more accurate and efficient. But at the branch level the structure is decentralized. including enterprise resource planning (ERP) applications from companies such as SAP. all the matters are to be reported to the head office and all the policies and targets are approved at the higher level. . At Unilever the HR team plans everything so that the outcomes and results can be perceived before the plan is actually implemented. To reach its Path to Growth goals. MFG Pro. and Fourth Shift. as well as legacy systems. leaves.

Question from Manager Q1) Is the HR strategy of Unilever aligned with its vision? Q2) Is the HR of Unilever just being ³nice to staff´ and considered as a ³back room function´ in Unilever? Q3) Are the HR processes in Unilever is effectively managed? It is Adding value in the performance employees? How the company is promoting it? Q4) Do you think employees in Unilever know ³what is expected out of them´? Q5) Are the HR management design the job descriptions in such away that it¶s focused on ³responsibilities´ rather than ³deliverables´ resulting in the following questions: y y y y y y Objectives not achieved? Duplication of responsibilities? Delays in execution? Blame games? Confrontation between different functions? Over staffing? Q6) Is your current appraisal system: y y y y y Needs have well accepted in the organization? Reducing the communication gaps? Measuring the performance of each employee against targets? Assessing the training & development your employees? Distinguishing ³high post´ from ³stock bowlers´? Q7 Have you ever conducted a climate / opinion survey in your organization? Q8 Is Unilever going through any change? Now or in future? Q9 Are you aware of Impact of the change on organizations? and people? Q10 Are you ready to manage people behaviors during transition? .

Questions from employees Q1 Do you able to answer the following of your questions? y y y y y y y y Where do you standing today in your organization? Where do you expect your self to be in the Unilever in future ? When will you thing you able reach there? What do you thing the HR policies of Unilever provide enough resources available to you to be there? What Do you thing are the barrier in your path? Who are your competitors? Do you thing if you stay in this organization you will be happy and healthy? What do you think about the organization? Q2 How they want to see the organization? Q3 What is your commitment level towards the organization? Q4 What do you thing HR policies and procedures exists in your organization? Q5 What is your opinion about the HR-policies y y y It followed in true spirit? Is it enhancing communication within the organization? Are these policies and procedures employee friendly? .

while the head of the corporate relations department keeps the external affairs and corporate relations committee informed. Regional presidents report to either the director of the Foods division or the director of the Home and Personal Care division. they play an important role in shaping divisional strategy and ensuring that regional strategies and plans are consistent with overall objectives. the parent companies. Leading the team are the chairmen of Unilever PLC and Unilever N.V. SENIOR CORPORATE OFFICERS Unilever's senior corporate officers are responsible for ensuring that board meetings and board committee meetings are supplied with the information they need. ADVISORY DIRECTORS The advisory directors are the principal external presence in Unilever's government. the Corporate Development Director.COMPANY STRUCTURE EXECUTIVE COMMITTEE The Executive Committee is responsible for agreeing priorities and allocating resources. The advisory directors comprise a majority of the members of certain key committees of the Boards. managing external relations at the corporate level and developing future leaders.. . So. for example. committee meetings. the Finance director and the Personnel director. identifying and exploiting opportunities created by Unilever's scale and scope. Other members are the global division directors for Unilever Best foods and Home and Personal Care. agreeing and monitoring business group strategies and plans. as well as meetings with the Chairmen. They attend the key quarterly meetings. conferences of the directors and the Executive Committee. As members of either the Unilever Best foods or Home and Personal Care divisions. REGIONAL PRESIDENT The regional presidents are responsible for delivering business results in their respective regions. One of their key roles is to assure that government provisions are adequate and reflect best practice. setting overall corporate targets. the chief auditor ensures that the audit committee has the necessary information.

they are promoted to higher managerial level.The Working Environment & Accountability at unilever With the world fast becoming a Global Village and the Internet Information Technology Revolution. ICMA and also people who have spend years at Unilever. CA. Unilever can pride itself in having one of the most congenial and professional working environments of any company operating in Pakistan. The function of promotion of the workers is also performed by ERD after consulting with the top management and analyzing the past record of the workers Job Assessment At Unilever Pakistan Limited Performance Appraisal is prepared to check the performance of workers. The Personnel Department makes all the arrangements for the report meant of new employee. It sees better such employee is available in the organization or not. After that it arranges the interviews for the succeeded applicants. All hiring and promotion decisions are taken on merit. it gives the advertisement in the newspapers. cash rewards are also granted. the issues of HUMAN RIGHTS and Working Condition are becoming significant important with each passing day. The basic Objectives of job assessment are . The head of the department. For this purpose it collects information about the desired employee¶s functions and then defines the job requirements and job profile. Extreme emphasis is placed on worker safety and health Selection & Career ladder Personnel Department makes arrangements for the recruitments of the employees. Usually the interviews are bland of different types of interviews. It also makes arrangements for test. It also collects all the applications of the applicants. These interviews include panel interview. In order to provide incentives to employees at Unilever. All local laws are adhered to regarding different matters. It is like ACR (annual confidential report) in the government sector. at higher level I have seen various MBA. on job basis gives bonuses. structured questions etc. caste or creed. In case of no. The background information about the succeeded applicants is also gathered by the Personnel Department Promotion Of Persons At UNILEVER On the basis of experience and performance. Unilever is an equal opportunity employer and there is no discrimination on the basis of sex. The Personnel Department uses different tests for different applicants.

honesty · Loyalty · Devotion and commitment of the part of employee to achieve organizational objectives Measures To Check Overall Performance Higher manager to check the performance of employees adopts following measures. Top management is maintaining very cordial relationships with union leaders. promotion is granted on performance basis so they are also accountable if they are performing poorly. they have to face the circumstances.· Check the overall performance of employees · Whether the job assigned is fully done or not · Integrity. If the employees are not obedient to their superior or involved in unethical activities. · Standards are established first · Measure the individual as well as collectively performance · Compare actual performance with planned · Taking corrective action · Reviews of job are made. . They are often terminated from their jobs. Severe punishment like demotion. · Superior management assesses accuracy of work. Actually employees feel a part in the organization and its achievements. They can be demoted from their ranks. if they are not performing well. In Unilever. firing and suspensions are given to non-performing or low-performing employees. Accountability Employees have to face inquiries or suspensions. Satisfaction Of Employee Employees have a high morale. if they are involved in activities which are not according to the goal of Unilever Pakistan Limited. On the basis of performance appraisal awards and rewards or punishments are given.

Some of these are annual. is much conscious about the health and safety.F. A list of some benefits and services is given below: Attendance Allowance Good attendance award Death Compensation Canteen allowance Tea Expenses . and some are monthly while some are once in the whole employment period. Furthermore.F.COMPENSATION AND ADMINITRATION The Unilever Pakistan Limited conducts the wages survey in the market and of the major competitors after every two years and compares the results with its own package and there is any difference then adjustment is made. Following are the Instruments which are provided to the workers: Long shoes Helmets Gloves Fire Instruments BENEFITS & SERVICE Unilever R. the organization has a well equipped Medical Center where MBBS doctors are available in order to meet with emergency cases. The Personnel Department provides all possible instruments to all workers and it has the desire that every worker should use those instruments in order to avoid losses. The desire of Unilever R. some are semi-annual.F. Proper equipments are available in all areas of the production where sensitive machinery is in operation. HEALTH AND SAFETY Unilever R. is that its employees must be satisfied in every aspect because it has the opinion that satisfied employees are more productive as compared to dissatisfied. also provides certain benefits and services to all its employees. The Unilever gives 30 different types of allowances to its employees.

The company also celebrates Annual Sports Day on which different games are played and prizes are given to the succeeded players by the company. Indoor and outdoor facilities are also available. Personal Development And Training Junior-level courses are frequently held in-house for personal training. .Conveyance Allowance Family medical allowance Family medical care House rent Allowance Utilities allowance Meal Allowance Rehabilitation Allowance Retirement Jersey Shoes Tonga Allowance Traveling Announce Hajj Marriage Assistance To minorities The organization has a club for the employees of the organization. Neurolinguistic programming was part of the course to help the employee in day-to-day activities to improve proficiency and effectiveness in their attitude and work style. 1. Executive Development Course This course was specially designed for middle management to enhance their principle-centered leadership qualities so that they could meet the emerging challenges of the global world. Various courses organized in the past include the following.

Wage rates. HUMAN RESOURCES PLANNING The most important function performed by the ERD is the Human Resource Planning. 4. Basic English Language Course This course was for those staff that is not proficient in written and verbal English language. working hours. Unskilled manpower is hired from the market for training. Under these plans it has two types of recruitment: Badli Temporary For long term plans workers are recruited from the temporary workers who have become skilled one. Short term Plans are made for those places where workers have gone on holidays or absent. The main purpose was to give acquaintances to the staff of their rights. 3. And during this period they are paid as per the prevailing wage rules. To motivate its employees the organization uses both intrinsic and extrinsic approaches for motivation its employees. For This purpose it makes long term and short term plans to make the labor available for production. In-Housing Training School Unilever has also established an in-house Training School for unskilled labor so that they may be trained. Basic Labor laws of Pakistan Professionals from Labor Department organized this course. o Intrinsic Approach o Extrinsic Approach . vacations. For a smooth production there must be an effective Human Resource Planning. MOTIVATION The organization has the opinion that motivated workers are more productive than unmotivated workers. child & bonded labor etc.2. were the main topics covered. An external instructor whose services were especially hired for this purpose conducted the course.

To motivate the employees the organization has introduced a program name OFI (Opportunity for Improvement). COMPANY¶S POLICIES Unilever's update Code of Business Policies because we believe that their reputation for high corporate standards is a key asset which they needs to be fresh and living throughout in their business. Their first priority is to be a successful business and that means investing for growth and balancing short-term and long-term interests. More detailed guidance tailored to the needs of different countries and companies will build on these principles as appropriate. just as real as their people and brands. This reputation is an asset.INTRINSIC APPROACH Job rotation XTRINSICE APPROACH Training Appreciation letters Bonuses Cash awards Gifts Shields Clocks Put the name of the workers on the notice board who perform an excellent performance. . It also means caring about their employees To succeed requires the highest standards of behavior from all employees. Unilever has earned a reputation for conducting its business with integrity and with respect for the interests of those our activities can affect. The general principles contained in this Code set out their standards in Hr policies. The Code is published in full below. but will not include any standards less rigorous than those contained in this Code.

Organizational Chart:The reporting structure and division of labor in an organization is called Organizational Chart.Organizational Chart Of Fundamentals of Organization We often begin to describe a firms Structure by looking at its Organization Chart. . The above chart provides a picture of reporting structure (who reports to whom) and the various activities that are carried out by different individuals.

buying department and marketing department link together to achieve overall mission. Various individuals and units through out the organization perform different tasks.g. 5. This include issues pertaining to authority within an organization. engineering.Note that organizational chart give various kinds of information that are conveyed in a very simple way: 1The boxes represent different work. some degree of communication and cooperation must exist among them. projects.g. The solid lines are called functional lines and they report to works manager and the doted lines Are called operational lines and they report to their own head. 2 The titles in the boxes show the work perform by each unit. Repair and maintenance department further divided into sub department which are engineering store. e. All the persons or units That are of the same ranks and report to same person are on one level. managers must simultaneously consider the issues of integration. There are two fundamental concepts around which organization is structured is differentiation and Integration. E. All the specialized in Unilever cannot be performed completely independently. the finance department. Differentiation Differentiation is created through division of labor and job specialization. They all have assigned different task under the repair and maintenance department.g. Integration and its related concept.coordination. First we will discuss vertical differentiation within Unilever organizational structure. Levels of management are indicated by horizontal layers in the chart. area engineer personal wash. Integration:As Unilever differentiate their structures. refer to the procedure that link the various part of Unilever to achieve the Unilever overall mission. the chief executive officer and hierarchical levels. Because the Unilever is a larger organization and it has different units. Planning. The Buying department of unilever has a specific task which purchasing inventory or raw material. area engineer personal product. as well as issues pertaining to delegation and decentralization . This would be someone in an organization. 3 Reporting and authority relation ship are indicated by solid lines showing super subordinate connection 4. Division of labor means that the work of the organization is subdivided into smaller task. Specialization is a process in which different individuals and units perform different tasks. the board of directors. E.

Personal wash(Soap). Packaging & Raw material. As the task of Unilever become increasingly complex. the organization in inevitably must be sub divided that is. Line departments are those units that deal directly with the organization primary good organization services. Personal product (Shampoo. Area Eng. and matrix organization Horizontal Structure It is also called division of labor. One of the first places this can be scene is in the distinction between line and staff departments. Centralize Decision Making Unilever is a centralized organization because most of its decision makes by top level executives but lower level can also gives their views. Lotions). Secondly we will discuss the horizontal Structure including issues of decartelization that create functional. PW soap finishing. Less means a narrower span of control. In Unilever buying department.Vertical Structure:Vertical structure is also called Reporting structure which tells about the hierarchy of an Organization an chain of command Top level Middle Level Lower Level Unilever Span of Control A span of control is the number of people who report to one manager in a hierarchy. divisional. Estate First aid center. In this the communication is difficult for employees. Unilever estate. PW finishing. sell things. It is tall organization that has many reporting level.the wider the span of control. PP finishing. Human resource department. and . Business service department. Factory medical center. they make things. Area Eng. departmentalized-into smaller unit¶s organization departments. organization provide customers service. The more people under the control of one manager . Quality assurance. Unilever has the Narrow span of control but now they are moving to wide span of control by reducing their layers. Admin & security.

Staff department means units that support line department.service and Utilities department are the line department. Services engineer support the service & utilities department. responsibility.g. The vertical hierarchy is overlaid by some form of lateral authority. It has 2 axes. Unilever is matrix organization and composed of dual reporting relationship in which some manager¶s report to two superiors-a functional manager and a divisional manager. A Matrix Organization is an organization structure that is matrix-shaped. e. influence. and accountability that violate the traditional "one-boss" or "Unity of Command" (Fayol) principle of management. or communication and there are dual lines of authority. rather than a pyramid-shape. . The Matrix Organization A matrix organization is a hybrid form of organization in which functional and divisional form Overlap.

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