CASE STUDY OF MANAGERIAL COMMUNICATION

(1) Mr and Mrs Basu went to Woodland’s apparel section to buy a Jacket. Mr Basu
did not read the price tag on the piece he had selected. While making the
payment, he asked for the price at the counter. The answer was” Rs 950”.

Meanwhile, Mrs Basu, who was still shopping, came back and joined her husband.
She was glad that he had selected a nice black jacket for himself. She pointed out
that there was a 25% discount on that item. The person at the billing counter
nods his head in agreement. Mr Basu was thrilled to hear that. “That means the
price of this Jacket is just Rs.645. That’s fantastic,” said Mr Basu. He decided to
buy another jacket in green.

In no time, he returned with the second jacket and asked the salesperson to pack
both. When he received the cash memo for payment, he was surprised to find
that he had to pay Rs. 1900 and not Rs. 1290 as he had expected.

Mr Basu could hardly reconcile himself to the fact that the salesperson had first
quoted the discounted price that is Rs. 950. But the original price printed on the
price tag was Rs. 1225.

Questions.

1. Identify the three sources of Mr Basu’s information about the price of the
Jacket.

2. What should Mr Basu have done to avoid the misunderstanding?

3. Who is to blame for this communication gap? Why?

__________________________________________________________
(2) The management of a textile mill in Ahmedabad was surprised that though it
insisted on a high level of education among its supervisors and junior officers
(many of them were “foreign returned”) production was falling and there were
many labour problems, while a rival mill which had employed local men as its
supervisors and officers was doing very well. An expert in management was
consulted and he reported that the chief cause of poor production and labour
problems was that the Gujarati speaking workers were in awe of the English
speaking officers and were very reluctant to approach them with their problems
or difficulties. Also instructions given in English and broken Gujarati were not
understood and there was almost a complete absence of “feedback”

Questions :

1) According to you which type of the communication will be efficient in this case
?

2) What you feel, how could this Gujarati labours can be communicated so as to
remove the gaps ?

3) Where English and where Gujarati language can be used in the best way for the
internal communication ?

4) What can be other ways to resolve the problems ?

(3) The disengaged worker

When training a group of workers, often the challenge for the trainer is ensuring
the key messages are getting through to everyone. In larger groups it’s not always
easy keeping everyone engaged, and all too often, one or two of the workers are
simply not paying attention. In the end, you have a roster sheet full of employee
signatures to show that they’ve taken the training, “but how do you know they
were actually trained?”
As a group, discuss the following topics:

1. When training a group of workers, what are some of the physical indicators
that tell you whether or not a group is no longer attentive?

Answers: limited eye contact, downcast eyes, whispering, restless hands, restless
legs, looking around the room.

2. What can you do as trainer when you notice the workers attention span is
waning?

Answers: Get them involved. Be more interactive with the training not just by
asking questions them but by using them in scenarios, or role playing. Move
around the room, stand by them.

3. List several reasons why workers may not be engaged in a training session.

Answers: The manager delivering the training is not engaged, the training is too
broad and does not directly impact their job duties, the method of delivery is
stale, the trainer is reading directly out of a guide book and does not involve the
staff. Not using the style of learning they need.

4. As a trainer, list the different methods you can use to facilitate a successful
group training session.

Answers: Be creative, make sure your training session involves employee

participation, ask lots of questions, and get lots of feedback, provide examples,
get them physically involved. Real life stories, pictures, newspaper clippings,
games, group work 3-4 people or groups of 2.

5. What are the main differences between a training session and a lecture?

Answers: Training should always involve the worker both mentally through
questions, answers, and opinions, and physically through participation, examples,
or role playing. Lectures, involve 1 person telling everyone in the room what they
need to know. No questions, no opinions, no involvement.
6. How important is it to “train the trainer??

Answers: Having a person on staff who is trained in proper technique, delivery,

and content, will go a long way in ensuring workers are properly trained and
engaged.

(6) The language barrier

Tourism and hospitality is a diverse sector comprised of workers from varied

cultures, backgrounds, ages, and languages. This is one of the reasons our
industry is so unique. But with this diversity, comes its challenges.

In the case of a large hotel, where a housekeeping department is comprised of

workers from all over the world, training can sometimes be a challenge to due
language barriers. And although many corporate properties have developed
strong training programs, it’s not always fully understood by each person in the
room.

Knowing this, what types of tools, methods, and practices can an employer use to
ensure proper training has been provided?

As a group, discuss the following topics:

1. Make a list of different training techniques you can use when trying to
overcome a language barrier?

Answer: Visual aids, physical examples, role playing, team them up with a co-
worker who speaks the same language. Speak a bit slower and pronounce your
words, having reading material helps, as lots of people who may not understand
the language can look at the words and read it okay.

2. At the end of the training, what methods can you use to determine whether
or not the worker understood?
Answer: Have the worker physically show you what they learned (ie; proper lift
technique, proper use, etc., leave time for a Q&A session at the end, summarize
the training.

3. How effective are visual aids when it comes to training and why?

Answer: Visual aids are often beneficial to workers who do not fully comprehend
what you’re saying. For example, if you tell a worker that they need to wear
goggles, an apron and chemical resistant gloves to do a task, they may not fully
understand what goggles are, which apron (cloth or rubber) to use, and the
difference between standard rubber dish gloves and chemical resistant gloves.
But, if you actually provide them with examples of each of it, have them try it on,
they’ll know exactly what you’re talking about.

4. When developing a training plan for an employee who has English as a second
language, what types of things should you consider when putting your training
plan together?

Answer: How will I communicate my message effectively, who is the best

employee for them to shadow, which tools and resources will be most beneficial
to the worker.

(7) Hindustan Unilever Limited (HUL) is India's largest fast moving consumer
goods company, with leadership in Home & Personal Care Products and Foods &
Beverages. HUL's brands, spread across 20 distinct consumer categories, touch
the lives of two out of three Indians. They endow the company with a scale of
combined volumes of about 4 million tonnes and sales of Rs.10,000 crores. The
mission that inspires HUL's over 15,000 employees is to "add vitality to life". With
35 Power Brands, HUL meets everyday needs for nutrition, hygiene, and personal
care with brands that help people feel good, look good and get more out of life. It
is a mission HUL shares with its parent company, Unilever, which holds 51.55% of
the equity. A Fortune 500 transnational, Unilever sells Foods and Home and
Personal Care brands in about 100 countries worldwide.

Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition,
hygiene, and personal care with brands that help people feel good, look good and
get more out of life.

Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition,
hygiene and personal care with brands that help people feel good, look good and
get more out of life

Our deep roots in local cultures and markets around the world give us our strong
relationship with consumers and are the foundation for our future growth. We
will bring our wealth of knowledge and international expertise to the service of
local consumers - a truly multi-local multinational.

Our long-term success requires a total commitment to exceptional standards of

performance and productivity, to working together effectively, and to a
willingness to embrace new ideas and learn continuously.

To succeed also requires, we believe, the highest standards of corporate

behaviour towards everyone we work with, the communities we touch, and the
environment on which we have an impact.

This is our road to sustainable, profitable growth, creating long-term value for our
shareholders, our people, and our business partners.

Over 100 years' link with India

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of
Sunlight soap bars, embossed with the words "Made in England by Lever
Brothers". With it, began an era of marketing branded Fast Moving Consumer
Goods (FMCG).Soon after followed Lifebuoy in 1895 and other famous brands like
Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand
came to the market in 1937.
In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati
Manufacturing Company, followed by Lever Brothers India Limited (1933) and
United Traders Limited (1935). These three companies merged to form HUL in
November 1956; HUL offered 10% of its equity to the Indian public, being the first
among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the
company. The rest of the shareholding is distributed among about 380,000
individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the
company had launched Red Label tea in the country. In 1912, Brooke Bond & Co.
India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through
an international acquisition. The erstwhile Lipton's links with India were forged in
1898. Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was
incorporated.Pond's (India) Limited had been present in India since 1947. It joined
the Unilever fold through an international acquisition of Chesebrough Pond's USA
in 1986.Since the very early years, HUL has vigorously responded to the stimulus
of economic growth. The growth process has been accompanied by judicious
diversification, always in line with Indian opinions and aspirations.The
liberalisation of the Indian economy, started in 1991, clearly marked an inflexion
in HUL's and the Group's growth curve. Removal of the regulatory framework
allowed the company to explore every single product and opportunity segment,
without any constraints on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In

one of the most visible and talked about events of India's corporate history, the
erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from April
1, 1993. In 1995, HUL and yet another Tata company, Lakme Limited, formed a
50:50 joint venture, Lakme Lever Limited, to market Lakme's market-leading
cosmetics and other appropriate products of both the companies. Subsequently
in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the
joint venture to the company.HUL formed a 50:50 joint venture with the US-
based Kimberly Clark Corporation in 1994, Kimberly-Clark Lever Ltd, which
markets Huggies Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary
in Nepal, Nepal Lever Limited (NLL), and its factory represents the largest
manufacturing investment in the Himalayan kingdom. The NLL factory
manufactures HUL's products like Soaps, Detergents and Personal Products both
for the domestic market and exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on
the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired
Kothari General Foods, with significant interests in Instant Coffee. In 1993, it
acquired the Kissan business from the UB Group and the Dollops Icecream
business from Cadbury India.As a measure of backward integration, Tea Estates
and Doom Dooma, two plantation companies of Unilever, were merged with
Brooke Bond. Then in July 1993, Brooke Bond India and Lipton India merged to
form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and
ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL
launching the Wall's range of Frozen Desserts. By the end of the year, the
company entered into a strategic alliance with the Kwality Icecream Group
families and in 1995 the Milkfood 100% Icecream marketing and distribution
rights too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal
restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in
1998. The two companies had significant overlaps in Personal Products, Speciality
Chemicals and Exports businesses, besides a common distribution system since
1993 for Personal Products. The two also had a common management pool and a
technology base. The amalgamation was done to ensure for the Group, benefits
from scale economies both in domestic and export markets and enable it to fund
investments required for aggressively building new categories.

In January 2000, in a historic step, the government decided to award 74 per cent
equity in Modern Foods to HUL, thereby beginning the divestment of government
equity in public sector undertakings (PSU) to private sector partners. HUL's entry
into Bread is a strategic extension of the company's wheat business. In 2002, HUL
acquired the government's remaining stake in Modern Foods.
In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of
the Amalgam Group of Companies, a leader in value added Marine Products
exports.

YEAR

MILESTONES

1888

Sunlight soap introduced in India.

1895

Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai,

Kolkata, and Karachi.

1902

Pears soap introduced in India.

1903

Brooke Bond Red Label tea launched.

1905

Lux flakes introduced.

1913

Vim scouring powder introduced.

1914

Vinolia soap launched in India.

1918
Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs,
Jurgens, Verschure Creameries, and Hartogs.

1922

Rinso soap powder introduced.

1924

Gibbs dental preparations launched.

1925

Lever Brothers gets full control of North West Soap Company.

1926

Hartogs registers Dalda Trademark.

1930

Unilever is formed on January 1 through merger of Lever Brothers and Margarine

Unie.

1931

Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri

factory site bought.

1932

Vanaspati manufacture starts at Sewri.

1933

Application made for setting up soap factory next to the Vanaspati factory at
Sewri; Lever Brothers India Limited incorporated on October 17.

1934
Soap manufacture begins at Sewri factory in October; North West Soap
Company's Garden Reach Factory, Kolkata rented and expanded to produce Lever
brands.

1935

United Traders incorporated on May 11 to market Personal Products.

1937

Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.

1939

Garden Reach Factory purchased outright; concentration on building up Dalda

Vanaspati as a brand.

1941

Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires
own sales force.

1942

Unilever takes firm decision to "train Indians to take over junior and senior
management positions instead of Europeans".

1943

Personal Products manufacture begins in India at Garden Reach Factory.

1944

Reorganisation of the three companies with common management but separate

marketing operations.

1947

Pond's Cold Cream launched.

1951

Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and
Ghaziabad Vanaspati factories bought.

1955

65% of managers are Indians.

1956

Three companies merge to form Hindustan Lever Limited, with 10% Indian equity
participation.

1957

Unilever Special Committee approves research activity by Hindustan Lever.

1958

Research Unit starts functioning at Mumbai Factory.

1959

Surf launched.

1961

Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205
managers are Indians.

1962

Formal Exports Department starts.

1963

Head Office building at Backbay Reclamation, Mumbai, opened.

1964
Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk
shampoo launched.

1965

Signal toothpaste launched; Indian shareholding increases to 14%.

1966

Lever's baby food, more new foods introduced; Nickel catalyst production begins;
Indian shareholding increases to 15%. Statutory price control on Vanaspati; Taj
Mahal tea launched.

1967

Hindustan Lever Research Centre, opens in Mumbai.

1968

Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine
Chemicals Unit commissioned at Andheri; informal price control on soap begins.

1969

Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched

1971

Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever

Special Committee - plan approved; Clinic shampoo launched.

1973

Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.

1974

Pilot plant for industrial chemicals at Taloja; informal price control on soaps
withdrawn; Liril marketed.
1975

Ten-year modernisation plan for soaps and detergent plants; Jammu project work
begins; statutory price control on Vanaspati and baby foods withdrawn; Close-up
toothpaste launched.

1976

Construction work of Haldia chemicals complex begins; Taloja chemicals unit

begins functioning.

1977

Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to

18.57%.

1978

Indian shareholding increases to 34%; Fair & Lovely skin cream launched.

1979

Sodium Tripolyphospate plant at Haldia commissioned.

1980

Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever

shareholding in the company comes down to 51%.

1982

Government allows 51% Unilever shareholding.

1984

Foods, Animal Feeds businesses transferred to Lipton.

1986
Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds
comes out; Khamgaon Soaps unit and Yavatmal Personal Products unit start
production.

1988

Launch of Lipton Taaza tea.

1990

Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly.

1991

Surf Ultra detergent launched.

1992

HLL recognised by Government of India as Star Trading House in Exports.

1993

HLL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the
company with effect from April 1, 1993, the biggest such in Indian industry till
that time. Merger ultimately accomplished in December 1994; Launch of Vim bar;
Kissan acquired from the UB Group.

1994

HLL forms Nepal Lever Limited, HLL and US-based Kimberley-Clark Corporation
form 50:50 joint venture - Kimberley-Clark Lever Ltd. - to market Huggies diapers
and Kotex feminine care products. Factory set up at Pune in 1995; HLL acquires
Kwality and Milkfood 100% brandnames and distribution assets. HLL introduces
Wall's.

1995
HLL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture - Lakme
Lever Ltd.; HLL enters branded staples business with salt; HLL recognised as Super
Star Trading House.

1996

Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of Group
company, Brooke Bond Lipton India Limited, with HLL, with effect from January 1;
HLL introduces branded atta; Surf Excel launched.

1997

Unilever sets up International Research Laboratory in Bangalore; new Regional

Innovation Centres also come up.

1998

Group company, Pond's India Ltd., merges with HLL with effect from January 1,
1998. HLL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme
Lever Ltd.

2000

Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the
Unilever Board; HLL acquires 74% stake in Modern Food Industries Ltd., the first
public sector company to be disinvested by the Government of India.

2002

HLL enters Ayurvedic health & beauty centre category with the Ayush range and
Ayush Therapy Centres.

2003

Launch of Hindustan Lever Network; acquisition of the Amalgam Group

2005
Launch of "Pureit" water purifiers

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
company, touching the lives of two out of three Indians with over 20 distinct
categories in Home & Personal Care Products and Foods & Beverages. They
endow the company with a scale of combined volumes of about 4 million tonnes
and sales of Rs.10,000 crores. HUL is also one of the country's largest exporters; it
has been recognised as a Golden Super Star Trading House by the Government of
India. The mission that inspires HUL's over 15,000 employees, including over
1,300 managers, is to "add vitality to life." HUL meets everyday needs for
nutrition, hygiene, and personal care with brands that help people feel good, look
good and get more out of life. It is a mission HUL shares with its parent company,
Unilever, which holds 51.55% of the equity. The rest of the shareholding is
distributed among 380,000 individual shareholders and financial institutions.

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,
Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-
Annapurna, Kwality Wall's – are household names across the country and span
many categories - soaps, detergents, personal products, tea, coffee, branded
staples, ice cream and culinary products. They are manufactured over 40 factories
across India. The operations involve over 2,000 suppliers and associates. HUL's
distribution network, comprising about 4,000 redistribution stockists, covering 6.3
million retail outlets reaching the entire urban population, and about 250 million
rural consumers. HUL has traditionally been a company, which incorporates latest
technology in all its operations. The Hindustan Unilever Research Centre (HLRC)
was set up in 1958, and now has facilities in Mumbai and Bangalore. HLRC and the
Global Technology Centres in India have over 200 highly qualified scientists and
technologists, many with post-doctoral experience acquired in the US and Europe.
HUL believes that an organisation's worth is also in the service it renders to the
community. HUL is focusing on health & hygiene education, women
empowerment, and water management. It is also involved in education and
rehabilitation of special or underprivileged children, care for the destitute and
HIV-positive, and rural development. HUL has also responded in case of national
calamities / adversities and contributes through various welfare measures, most
recent being the village built by HUL in earthquake affected Gujarat, and relief &
rehabilitation after the Tsunami caused devastation in South India.

In 2001, the company embarked on an ambitious programme, Shakti. Through

Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby
improving their livelihood and the standard of living in rural communities. Shakti
also includes health and hygiene education through the Shakti Vani Programme,
and creating access to relevant information through the iShakti community portal.
The program now covers 15 states in India and has over 31,000 women
entrepreneurs in its fold, reaching out to 100,000 villages and directly reaching to
150 million rural consumers. By the end of 2010, Shakti aims to have 100,000
Shakti entrepreneurs covering 500,000 villages, touching the lives of over 600
million people.

HUL is also running a rural health programme – Lifebuoy Swasthya Chetana. The
programme endeavours to induce adoption of hygienic practices among rural
Indians and aims to bring down the incidence of diarrhoea. It has already touched
70 million people in approximately 15000 villages of 8 states. The vision is to
make a billion Indians feel safe and secure.

If Hindustan Unilever straddles the Indian corporate world, it is because of being

single-minded in identifying itself with Indian aspirations and needs in every walk
of life.
Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods
(FMCG) company. It is present in Home & Personal Care and Foods & Beverages
categories. HUL and Group companies have about 16,000 employees, including
1200 managers.

The fundamental principle determining the organisation structure is to infuse

speed and flexibility in decision-making and implementation, with empowered
managers across the company's nationwide operations. For this, HUL is organised
into two self-sufficient divisions - Home & Personal Care & Foods - supported by
certain central functions and resources to leverage economies of scale wherever
relevant.

Board At the apex is the Board, headed by the Chairman, and comprising 5 whole
time Directors and 5 independent non-executive Directors. The day to day
operations are supervised by the National Management comprising the Vice
Chairman, Managing Director (HPC), Managing Director (Foods) and the Finance
Director.

Divisions Each division is self-sufficient with dedicated resources and assets in

sales, marketing, commercial, and manufacturing. The two divisions are further
reorganised into categories.

Typically, each category and each function - Sales, Commercial, Manufacturing - is

headed by a Vice President. They with their respective Managing Director,
comprise that Division's Management Committee.
For managing sales operations, HUL divides the country into four regions, with
regional branches in Delhi, Kolkata, Chennai and Mumbai. Headed by a Regional
Manager, they comprise Regional Sales Managers and Area Sales Managers,
assisted by dedicated field forces, comprising Sales Officers and Territory Sales
Incharges.

In Marketing, each category has a Marketing Manager who heads a team of Brand
Managers dedicated to each or a group of brands.

The commercial team of a Division is responsible for its supply chain

management. There are teams dedicated to sourcing, planning and logistics.

Each Division has a nationwide manufacturing base, with each factory peopled by
teams of Production, Engineering, Quality Assurance, Commercial and Personnel
Managers.

Central functions

HUL's Central Functions are Finance, Human Resources, Technology, Research,

Information Technology, Legal & Secretarial, and Corporate Affairs. Their services
are shared across the company. But, wherever necessary, managerial resources
are dedicated exclusively to a business. For example, each Division now has
dedicated HR managers. HUL believes that while it leverages the scale of a large
corporate, it must also retain the soul of a small company. Its organisation
structure, which has and will continue to evolve with time, is aimed at achieving
this knitting.

BusinessesHome & Personal Care• Personal Wash• Fabric Wash• Home Care•
Oral Care• Skin Care• Hair Care• Deodorants & Talcs• Colour Cosmetics Foods•
Tea• Coffee • Branded Staples• Culinary Products• Ice Creams• Modern Foods
rangesNew Ventures• Hindustan Unilever Network• Ayush ayurvedic products &
services• Sangam• Pureit water purifiersExports• HPC• Beverages• Marine
Products• Rice• Castor

Mr.Harish ManwaniChairman

A distinguished alumnus in statistics & economics and MBA from Mumbai

University, Mr. Manwani joined HUL in 1976. Following several Sales and
Marketing assignments, he became Divisional Vice President - Marketing. Mr.
Manwani joined the Board of HUL in 1995, responsible for the Personal Products
business. In addition, he held regional responsibility as the Category Leader for
Personal Products for the then Central Asia and Middle East (CAME) Business
Group.

Mr. Manwani then moved to the UK as Senior Vice President for the Global Hair
Care and Oral Care Categories and in early 2001 was appointed President of the
Home & Personal Care (HPC) - Latin America Business Group

In 2004, he was appointed President and Chief Executive Officer of the HPC -
North America Business Group. In April 2005, he was elevated to the Unilever
Executive as President – Asia & Africa.

Mr. Manwani has attended the Advanced Management Programme (AMP) at

Harvard Business School.

Mr.Douglas BaillieCEO and Managing Director

Douglas Baillie (50) Born and educated in Zimbabwe, Mr. Baillie graduated from
the University of Natal with majors in business finance, marketing and business
administration and joined Unilever SA in 1978. His career over the years has
spanned various sales and marketing positions, culminating in a secondment to
Lever Rexona in Australia in 1987.

On his return to South Africa in late 1988, he took up the position of Sales
Director, which was followed by a spell as Marketing Director. Mr. Baillie moved
to London in 1994 to Personal Products Co-ordination where he became the
Regional Liaison Member for Africa, Middle East, Central and Eastern Europe and
Turkey before moving to Vice President, Home and Personal Care for the Africa
Business Group. Mr. Baillie was appointed Managing Director Lever Pond’s South
Africa in 1997 and National Manager, Unilever South Africa, in May 2000. Whilst
in this position Mr. Baillie served on several external Boards including the
Advertising Standards Authority, the Consumer Goods Council of South Africa and
was a member of Presidential Big Business working group

Prior to assuming responsibilities as the Chief Executive Officer (CEO) of

Hindustan Unilever Limited, Mr. Baillie was Group Vice President and Head of
Unilever AMET (Africa, Middle East and Turkey). Mr. Baillie is also the Group Vice
President responsible for Unilever’s business in South Asia, which includes Sri
Lanka, Pakistan and Bangladesh.

D. Sundaram

Finance & IT Director

Mr. D. Sundaram is post-graduate from Madras University and a Fellow of the

Institute of Cost and Works Accountants of India (FICWA). He joined Hindustan
Unilever in 1975 as a Management Trainee. He has worked in various capacities
as Corporate Accountant, Commercial Manager and Treasurer.He was seconded
to Unilever, London,as Commercial Officer for Africa and Middle East

Group between 1990 and 1993 and on return was the Financial Member of the
TOMCO Integration team from 1993 to 1994. He became the Finance Director of
the erstwhile Brooke Bond Lipton India Limited in March 1994. He was again
seconded to Unilever in August 1996 as Senior Vice President–Finance, Central
Asia and Middle East Group with responsibility for Finance, IT and business
strategies for Unilever companies in the Indian sub-continent, North Africa and
the Middle East countries. He returned to India in May 1999 as Finance & IT
Director of HUL.

Mr. Nitin Paranjpe

Exectuive Director

Mr. Nitin Paranjpe after obtaining a degree in BE (Mech) and MBA in Marketing
(JBIMS) from Mumbai joined the Company as a Management Trainee in 1987. In
his early years in the Company, Mr. Paranjpe worked as Area Sales Manager –
Detergents and then Product Manager – Detergents.

In April 1996, he became the Branch Manager, Chennai and in February 1999 was
appointed a member of the Project Millennium team. In 2000, he moved to
Unilever, London and was involved in a review of the Organisation Structure.
During 2001, he was Assistant to the Unilever Chairman & Executive Committee in
London. On his return to India in 2002, he became the Category Head – Fabric
Wash & Regional Brand Director (Asia) for some Laundry and Household Cleaning
(HHC) Brands. In 2004, he became Vice President – Home Care (Laundry & HHC)
India responsible for the top and bottom-line of the Homecare business. Effective
March 2006 Mr. Paranjpe is the Executive Director for the Home & Personal Care
business.
Mr. Sanjiv Kakkar

Director

Mr. Sanjiv Kakkar is BA (Economics) and PGDM from IIM Ahmedabad with 23
years work experience. Mr. Kakkar joined the Company in June 1984 and has
worked in various Sales and Marketing assignments. His marketing experience
spans across categories including Beverages, Personal Products and Oral & Hair
Care

He has also had key stints as Category Head of Oral and General Manager – Sales
& Customer Management of Personal Products. He was appointed Vice President
– Oral & Hair Care in May 2004. In March 2006, Mr. Kakkar was appointed as
Executive Director - Foods and joined the Management Committee on 1st January
2007. Sanjiv was appointed as the Executive Director - Sales and Customer
Development in May 2007.

A.Narayan

Director

Mr. A. Narayan is the Managing Director and CEO of ICI India Limited. He is also
the Chairman of ICI India Research & Technology Centre. Mr. Narayan joined the
Board as Independent Non-Executive Director in 2001.

V. Narayanan

Director

Mr. V. Narayanan is a post-graduate from Madras University. He was Chairman

and Managing Director of the erstwhile Pond's (India) Ltd. He is now Chairman of
the Academy of Management Excellence. He joined the Board as Independent
Non-Executive Director in 1987.

D. S. Parekh

Director
Mr. D. S. Parekh holds a FCA degree from England & Wales. Mr. Parekh has held
senior positions in Grindlays and Chase Manhattan. He is the Executive Chairman
of Housing Development Finance Corporation. Mr. Parekh joined the Board as
Independent Non-Executive Director in 1997.

C. K. Prahalad

Director

Professor C. K. Prahalad is the Harvey C. Fruehauf Professor of Business

Administration at the University of Michigan at Ann Arbor, the US. His
contribution to business strategy is globally recognised. He joined the Board as
Independent Non-Executive Director in 2000.

S. Ramadorai

Director

Mr. S. Ramadorai is the Chief Executive Officer of Tata Consultancy Services. Mr.
Ramadorai is also Chairman of Tata Technologies Ltd. and Chairman of CMC Ltd.
He joined the Board as Independent Non-Executive Director in 2002.

Code of Business Principles

Unilever has earned a reputation for conducting its business with integrity and
with respect for the interests of those our activities can affect. This reputation is
an asset, just as real as our people and brands.

Our first priority is to be a successful business and that means investing for
growth and balancing short-term and long-term interests. It also means caring
about our consumers, employees and shareholders, our business partners and
the world in which we live.

To succeed requires the highest standards of behaviour from all of us. The general
principles contained in this Code set out those standards. More detailed guidance
tailored to the needs of different countries and companies will build on these
principles as appropriate, but will not include any standards less rigorous than
those contained in this Code.

We want this Code to be more than a collection of high-sounding statements. It

must have practical value in our day-to-day business and each one of us must
follow these principles in the spirit as well as the letter.

Code of Business Principles

Standard of Conduct

We conduct our operations with honesty, integrity and openness, and with
respect for the human rights and interests of our employees.

We shall similarly respect the legitimate interests of those with whom we have
relationships.Obeying the Law

Unilever companies and employees are required to comply with the laws and
regulations of the countries in which we operate.

EmployeesUnilever is committed to diversity in a working environment where

there is mutual trust and respect and where everyone feels responsible for the
performance and reputation of our company.

We will recruit, employ and promote employees on the sole basis of the
qualifications and abilities needed for the work to be performed.

We are committed to safe and healthy working conditions for all employees. We
will not use any form of forced, compulsory or child labour.

We are committed to working with employees to develop and enhance each

individual's skills and capabilities.
We respect the dignity of the individual and the right of employees to freedom of
association.We will maintain good communications with employees through
company based information and consultation procedures.

ConsumersUnilever is committed to providing branded products and services

which consistently offer value in terms of price and quality, and which are safe for
their intended use. Products and services will be accurately and properly labelled,
advertised and communicated.ShareholdersUnilever will conduct its operations in
accordance with internationally accepted principles of good corporate
governance. We will provide timely, regular and reliable information on our
activities, structure, financial situation and performance to all
shareholders.Business Partners

Unilever is committed to establishing mutually beneficial relations with our

suppliers, customers and business partners.

In our business dealings we expect our partners to adhere to business principles

consistent with our own.

Community Involvement

Unilever strives to be a trusted corporate citizen and, as an integral part of

society, to fulfill our responsibilities to the societies and communities in which we
operate.Public Activities

Unilever companies are encouraged to promote and defend their legitimate

business interests.Unilever will co-operate with governments and other
organisations, both directly and through bodies such as trade associations, in the
development of proposed legislation and other regulations which may affect
legitimate business interests.Unilever neither supports political parties nor
contributes to the funds of groups whose activities are calculated to promote
party interests.The Environment

Unilever is committed to making continuous improvements in the management of

our environmental impact and to the longer-term goal of developing a sustainable
business.Unilever will work in partnership with others to promote environmental
care, increase understanding of environmental issues and disseminate good
practice.InnovationIn our scientific innovation to meet consumer needs we will
respect the concerns of our consumers and of society. We will work on the basis
of sound science, applying rigorous standards of product safety.

CompetitionUnilever believes in vigorous yet fair competition and supports the

development of appropriate competition laws. Unilever companies and
employees will conduct their operations in accordance with the principles of fair
competition and all applicable regulations.Business Integrity

Unilever does not give or receive, whether directly or indirectly, bribes or other
improper advantages for business or financial gain. No employee may offer, give
or receive any gift or payment which is, or may be construed as being, a bribe.
Any demand for, or offer of, a bribe must be rejected immediately and reported
to management.Unilever accounting records and supporting documents must
accurately describe and reflect the nature of the underlying transactions. No
undisclosed or unrecorded account, fund or asset will be established or
maintained.

Conflicts of Interests

All Unilever employees are expected to avoid personal activities and financial
interests which could conflict with their responsibilities to the company.Unilever
employees must not seek gain for themselves or others through misuse of their
positions.

Compliance – Monitoring – Reporting

Compliance with these principles is an essential element in our business success.
The Unilever Board is responsible for ensuring these principles are communicated
to, and understood and observed by, all employees.

Day-to-day responsibility is delegated to the senior management of the regions

and operating companies. They are responsible for implementing these principles,
if necessary through more detailed guidance tailored to local needs.Assurance of
compliance is given and monitored each year. Compliance with the Code is
subject to review by the Board supported by the Audit Committee of the Board
and the Corporate Risk Committee.

Any breaches of the Code must be reported in accordance with the procedures
specified by the Joint Secretaries. The Board of Unilever will not criticise
management for any loss of business resulting from adherence to these principles
and other mandatory policies and instructions.

The Board of Unilever expects employees to bring to their attention, or to that of

senior management, any breach or suspected breach of these principles.Provision
has been made for employees to be able to report in confidence and no employee
will suffer as a consequence of doing so.

In this Code the expressions 'Unilever' and 'Unilever companies' are used for
convenience and mean the Unilever Group of companies comprising Unilever
N.V., Unilever PLC and their respective subsidiary companies. The Board of
Unilever means the Directors of Unilever N.V. and Unilever PLC.

Environment Policy

Hindustan Unilever Limited (HUL) supplies high quality goods and services to
meet the daily needs of consumers and industry. In doing so, the Company is
committed to exhibit the highest standards of corporate behaviour towards its
consumers, employees, the societies and the world in which we live.The company
recognises its joint responsibility with the Government and the Public to protect
environment and is committed to regulate all its activities so as to follow best
practicable means for minimising adverse environmental impact arising out of its
operations.The company is committed to making its products environmentally
acceptable, on a scientifically established basis, while fulfilling consumers'
requirements for excellent quality, performance and safety.The aim of the Policy
is to do all that is reasonably practicable to prevent or minimise, encompassing all
available knowledge and information, the risk of an adverse environmental
impact arising from processing of the product, its use or foreseeable misuse.This
Policy document reflects the continuing commitment of the Board for sound
Environment Management of its operations. The Policy applies to development of
a process, product and services, from research to full-scale operation. It is
applicable to all company operations covering its plantations, manufacturing,
sales and distribution, research & innovation centres and offices. This document
defines the aims and scope of the Policy as well as responsibilities for the
achievement of the objectives laid down.The Vision Our vision is to continue to be
an environmentally responsible organisation making continuous improvements in
the management of the environmental impact of our operations.We will achieve
this through an Integrated Environment Management approach, which focuses on
People, Technology and Facilities, supported by Management Commitment as the
prime driver.The Environment Policy Hindustan Unilever Ltd. (HUL) is committed
to meeting the needs of customers and consumers in an environmentally sound
manner, through continuous improvement in environmental performance in all
our activities. Management at all levels, jointly with employees, is responsible and
will be held accountable for company's environmental performance.Accordingly,
HUL's aims are to:

· Ensure safety of its products and operations for the environment by using
standards of environmental safety, which are scientifically sustainable and
commonly acceptable.
· Develop, introduce and maintain environmental management systems across
the company to meet the company standards as well as statutory requirements
for environment. Verify compliance with these standards through regular
auditing.

· Assess environmental impact of all its activities and set annual improvement
objectives and targets and review these to ensure that these are being met at the
individual unit and corporate levels.

· Reduce Waste, conserve Energy and explore opportunities for reuse and recycle.

· Involve all employees in the implementation of this Policy and provide

appropriate training. Provide for dissemination of information to employees on
environmental objectives and performance through suitable communication
networks.

· Encourage suppliers and co-packers to develop and employ environmentally

superior processes and ingredients and co-operate with other members of the
supply chain to improve overall environmental performance.

· Work in partnership with external bodies and Government agencies to promote

environmental care, increase understanding of environmental issues and
disseminate good practice.Responsibilities Corporate The Board and the
Management Committee of HUL is committed to conduct the company
operations in an environmentally sound manner. The Management Committee
will:

· Set mandatory standards and establish environmental improvement objectives

and targets for HUL as a whole and for individual units, and ensure these are
included in the annual operating plans.

· Formally review environment performance of the company once every quarter.

· Review environment performance when visiting units and recognise exemplary

performance.
· Nominate:- A senior line manager responsible for environmental performance at
the individual HUL site.- HUL environmental coordinator.The Management
Committee, through the nominated environmental coordinator will:

· Ensure implementation of HUL Policy on environment and compliance with

Unilever and HUL environmental standards and the standards stipulated under
relevant national / local legislation. When believed to be appropriate, apply more
stringent criteria than those required by law.

· Assess environmental impact of HUL operations and establish strategies for

sound environment management and key implementation steps.

· Encourage development of inherently safer and cleaner manufacturing

processes to further raise the standards of environment performance.

· Establish appropriate management systems for environment management and

ensure regular auditing to verify compliance.

· Establish systems for appropriate training in implementation of Environment

Management Systems at work.

· Ensure that all employees are made aware of individual and collective
responsibilities towards environment.

· Arrange for expert advice on all aspects of environment management.

· Participate, wherever possible, with appropriate industry and Government

bodies advising on environmental legislation and interact with national and local
authorities concerned with protection of environment.Individual UnitsThe overall
responsibility for environment management at each unit will rest with the Unit
Head, who will ensure implementation of HUL Policy on environment at unit level.
Concerned line managers / heads of departments are responsible for
environmental performance at department levels.In order to fulfill the
requirements of the Environment Policy at each site, the Unit Head will:
· Designate a unit environment coordinator who will be responsible for co-
ordinating environmental activities at unit, collating environmental statistics and
providing / arranging for expert advice.

· Agree with the Management Committee Member responsible for the unit,
specific environmental improvement objectives and targets for the unit and
ensure that these are incorporated in the annual objectives of the concerned
managers and officers and are reviewed periodically.

· Ensure that the unit complies with Unilever and HUL mandatory standards and
the relevant national and state regulations with respect to environment.

· Ensure formal environmental risk assessment to identify associated

environmental aspects and take appropriate steps to control risks at acceptable
levels.

· Ensure that all new operations are subjected to a systematic and formal analysis
to assess environmental impact. Findings of such exercises should be
implemented prior to commencement of the activity.

· Manage change in People, Technology and Facilities through a planned approach

based on training, risk assessment, pre-commissioning audits and adherence to
design codes.

· Regularly review environment performance of the unit against set objectives and
targets and strive for continual improvement.

· Sustain a high degree of environmental awareness through regular promotional

campaigns and employee participation through training, safety committees,
emergency drills etc.

· Ensure dissemination of relevant information on environment within the unit

and to outside bodies, and regularly interact with Government authorities
concerned for protection of environment.
· Maintain appropriate emergency procedures consistent with available
technologies to prevent / control environmental incidents.

· Provide appropriate training to all employees.

· Ensure periodic audits to verify compliance with environment management

systems and personally carry out sample environment audits to check efficacy of
the systems.

· Report environmental statistics to HUL Corporate Safety & Environment Group

on a monthly basis.Research and Innovation Centres

Since most new products and processes are developed in these Units, certain
additional responsibilities devolve on them to ensure implementation of the
Environment Policy of the company. In addition to the Unit Head's responsibilities
outlined above, the heads of these units will:

· Ensure that a formal and systematic risk assessment exercise is undertaken

during the process/product development stage with specific reference to
environmental impact.

· Transfer technology to the pilot plant and main production through a properly
documented process specification which will clearly define environmental impact
and risks associated with processes, products, raw material and finished product
handling, transport and storage.

· Ensure that treatment techniques are developed for any wastes generated as a
result of the new product/process and is incorporated into the process
specifications

Quality Policy

Hindustan Unilever Limited considers quality as one of the principal strategic

objectives to guarantee its growth and leadership in the markets in which it
operates.The company is committed to respond creatively and competitively to
the changing needs and aspirations of our consumers through relentless pursuit
of technological excellence, innovation and quality management across our
businesses, and offer superior quality products and services that are appropriate
to the various price points in the market as well as to our commitment to building
shareholder value.The company recognises that its employees are the primary
source of success in its operations and is committed to training and providing
them the necessary tools and techniques as well as empowering them to ensure
broad base compliance of this policy in the organisation at all levels.The company
is committed to fulfill its legal and statutory obligations and international
standards of product safety and hygiene and will not knowingly sell product that
is harmful to consumers or their belongings. It will institute systems and measures
to monitor compliance in order to meet its responsibilities to consumers.The
company will maintain an open communication channel with its consumers and
customers and will carefully monitor the feedback to continuously improve its
products and services and set quality standards to fulfill them.The company is
committed to extend its quality standards to its contract manufacturers, key
suppliers and service providers and by entering into alliances with them, to jointly
improve the quality of its products and services. This policy is applicable to
production from its own facilities as well as to production that is outsourced.The
company will periodically review this quality policy for its effectiveness and
consistency with business objectives.The company delegates authority and
responsibility for dissemination and implementation of this policy to each
Business and Unit Head.

Safety and Health Policy

Hindustan Unilever Limited (HUL) supplies high quality goods and services to
meet the daily needs of consumers and customers. In doing so, the Company is
committed to exhibit the highest standards of corporate behavior towards its
consumers, employees, the societies and the environment in which we operate.
Towards this, the Company recognises its responsibility to ensure safety and
protection of health of its employees, contractors and visitors in all its operating
sites, which include manufacturing, sales and distribution, research laboratories
and offices during work and work related travel.This Policy document defines the
vision, principles, aim, required actions and scope of the policy application as well
as the responsibility for execution.Our Vision Our vision is to be an injury free
organisation. Our MissionWe will bring safety on top of mind for all employees
and will integrate it with all business processes. We will realise our Vision through
an Integrated Safety Management approach, which focuses on People, Processes,
Systems, Technology and Facilities, supported by demonstrated leadership and
employee commitment at all levels as the prime drivers for ensuring a safe and
healthy work environment.Safety PrinciplesHUL's Occupational Safety and Health
Policy is based on and supported by the following eight Principles.These Principles
have the same status as the Company's Code of Business Principles:

· All injuries and occupational illnesses are preventable

· All operational exposures can be safeguarded

· Safety evaluation of all business processes is vital

· Working safely is a condition of employment

· Training all employees to work safely is essential

· Management audits are a must

· Employee involvement is essential

· All deficiencies must be reported and corrected promptly Note: In order to

facilitate operationalisation of the Safety Principles, a separate document has
been prepared, which covers: a) Safety Principles b) Success Criteria c) Illustrative
KPIThis document will form the basis for the concerned Line / Organisations in
developing KPI's for their respective functions / sites.Scope of Application This
section defines the scope of application of this Policy (where, when and to whom
is this Policy applicable). Where does this policy apply?

· All own/leased sites – Manufacturing, Research/Innovation, Offices, Depots,

Warehouses

· In-house purchased services i.e. canteen, travel desk, IT implementation etc.

· Sites of associates with HUL holding > 24% while carrying out operations of
making, handling, using, transporting, selling or disposing off of our products Who
does the policy apply to?

· All employees at business anywhere

· Contractors and visitors while at our own sites When does it apply?

· At work (our employees, contractors and visitors)

· Travel between home and work of our employees

· Business related travel including stay out of headquarter

· All Company organised business events i.e. training programmes, conferences,

business related get-togethers, annual sports etc.Implementation Responsibility
HUL Management at all levels is responsible for Policy implementation. Every site
shall prepare a responsibility matrix with respect to this Policy. Such SHE
responsibilities shall form an integral part of overall job responsibilities of all
employees.All Unilever and HUL Standards, Rules and Procedures on
Occupational Safety and Health, including those that may be specific to a site are
integral to this Policy and its implementation. All employees are required to
ensure strict adherence.

Questions:
1) If Hindustan Unilever straddles the Indian corporate world, it is because of
being single-minded in identifying itself with Indian aspirations and needs in every
walk of life, for being single –minded in identifying itself it needs to have good
communication system, taking into account the parameters given in the case
study you are required to explain the communication environment within the
Organization set up of Hindustan Unilever Ltd.

2) Based on the details given with reference to Hindustan Unilever Ltd, you are
required to prepare a speech for The Chairman of Hindustan Unilever Ltd on
‘every employee needs to be an effective communicator’.

3) Prepare a diagrammatic representation of Organization structure and explain it

with relevance to Formal Communication network.

4) Explain the relevance of informal communication network and how to use for
the benefit of a multi product company like Hindustan Unilever Ltd.