Unilever HRM case study

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Information about Unilever HRM case study

Published on February 2, 2009

Author: Vince77580

Source: slideshare.net

Description

European MBA HRM presentation

FLEXIBLE WORKING INTRODUCING ANNUALIZED HOURS AND 24-HOURS WORKING HRM - Unilever

# HRM - Unilever

THE COMPANY Global company 2007 turnover : €40 billion 174 000 people in around 100 countries Home & personal care 4 major businesses ( Cooking & eating, Healthy living, Beauty & style , Household activities ) HRM - Unilever

Global company

2007 turnover : €40 billion

174 000 people in around 100 countries

Home & personal care

4 major businesses ( Cooking & eating, Healthy living, Beauty & style , Household activities )

A PORTFOLIO OF AROUND 400 BRANDS HRM - Unilever

FLEXIBLE WORKING What were the challenges that Unilever had to manage ? Which methods did they use ? Annualization; 24-hours working ; The newest organizational set up. HRM - Unilever

What were the challenges that Unilever had to manage ?

Which methods did they use ?

Annualization;

24-hours working ;

The newest organizational set up.

CONSIDERATIONS TAKEN INTO ACCOUNT WHEN CHANGING WORKING TIMES HRM - Unilever

ANSWERING MAIN CHANGES Several National Markets Specialized products and tastes Each factory producing most of the products Local markets with no competitors One single European Market Standardised products One product in each plant Direct competition btw factories in Europe New HR strategy HRM - Unilever

Several National Markets

Specialized products and tastes

Each factory producing most of the products

Local markets with no competitors

One single European Market

Standardised products

One product in each plant

Direct competition btw factories in Europe

New HR strategy

KEY HR STRATEGY CONSIDERATIONS HRM - Unilever

METHODS TO MANAGE CHANGES The « New Horizons » Plan (1991) Collective bargaining, Teamwork, For a consensual approach to a change management HRM - Unilever

The « New Horizons » Plan (1991)

Collective bargaining,

Teamwork,

For a consensual approach to a change management

WHY INTRODUCE ANNUAL HOURS All companies Reduce weelky planning Control overtime Emphasis with seasonal changes To maximise productivity Cope with new technology To harmonise terms and conditions of employment. Unilever To adapt to a new political context and thus a global market HRM - Unilever REASONS FOR :

All companies

Reduce weelky planning

Control overtime

Emphasis with seasonal changes

To maximise productivity

Cope with new technology

To harmonise terms and conditions of employment.

Unilever

To adapt to a new political context and thus a global market

ADVANTAGES & DISADVANTAGES Annual hours can provide : For employers greater employee flexibility reduce overtime maximize productivity and efficiency. What does effectively happen : For employers No overtime anymore Greater flexibility Banked hours : (+) Harmonization and greater control (-) Paying for unworked hours HRM - Unilever

Annual hours can provide :

For employers

greater employee flexibility

reduce overtime

maximize productivity and efficiency.

What does effectively happen :

For employers

No overtime anymore

Greater flexibility

Banked hours :

(+) Harmonization and greater control

(-) Paying for unworked hours

ADVANTAGES & DISADVANTAGES Annual hours can provide : For employees improvement of the basic salary and progress within employee status. But can reduce their freedom to plan their leisure. What does effectively happen : For employees Banked hours : (-) Employees are obliged to work those hours / Before : volontary (no more freedom of choice) (-)« Caravan culture »  =) Demotivation =) Less family friendly HRM - Unilever

Annual hours can provide :

For employees

improvement of the basic salary and progress within employee status.

But can reduce their freedom to plan their leisure.

What does effectively happen :

For employees

Banked hours :

(-) Employees are obliged to work those hours / Before : volontary (no more freedom of choice)

(-)« Caravan culture » 

=) Demotivation

=) Less family friendly

A NEW ORGANIZATION 1992 : 24h Working Plan HRM - Unilever

1992 : 24h Working Plan

WHY INTRODUCING 24 HOURS WORKING ? All companies Optimizes production lines Stretches time contraints Attracts part time workers Unilever Effective answer to the new production processes HRM - Unilever REASONS FOR :

All companies

Optimizes production lines

Stretches time contraints

Attracts part time workers

Unilever

Effective answer to the new production processes

THE IMPLEMENTATION Possibilities Rotating shifts Fixed shifts for nigths & days Unilever choices Rotating work patterns Why : Avoid lower quality production Avoid double corporate culture HRM - Unilever

Possibilities

Rotating shifts

Fixed shifts for nigths & days

Unilever choices

Rotating work patterns

Why :

Avoid lower quality production

Avoid double corporate culture

FROM ATKISON’S POINT OF VIEW HRM - Unilever CORE PERIPHERY

ADVANTAGES & DISADVANTAGES All companies For employers (-) Create 2 cultures (+) Optimazation of production lines For employees Enable more jobs for those interested in other work patterns What does effectively happen ? For employers (-) Physiological (quality product and output) For employees (-) Have a compulsary rotating planning : less family friendly HRM - Unilever

All companies

For employers

(-) Create 2 cultures

(+) Optimazation of production lines

For employees

Enable more jobs for those interested in other work patterns

What does effectively happen ?

For employers

(-) Physiological (quality product and output)

For employees

(-) Have a compulsary rotating planning : less family friendly

SYNTESIS HRM - Unilever Temporal Flexi-time X Shift work Fixed Rotated X Over-time Numerical Temporary workers Part time and job sharing Functionnal Multiskilled X

HOW TO MASTER A PLANNED WORKING TIME SYSTEM HRM - Unilever

LABOUR MARKET SOCIAL FACTORS Unemployment rate Competitors Overtime cost Forecasting demand Corporate Social Responsibility (CSR) Technological changes Family patterns (single parents…) HRM - Unilever

LABOUR MARKET

SOCIAL FACTORS

Unemployment rate

Competitors

Overtime cost

Forecasting demand

Corporate Social Responsibility (CSR)

Technological changes

Family patterns (single parents…)

A new HR strategy :«Working Smart» ‘ Work Smart’ strategy simplifies the organisation by : 1st Level : Simplifying work and enabling better time management 2 nd Level : Operating within the business at a team level 3rd level : simplifying work in terms of organisational processes and employee engagement. Unilever’s HR function is now structured into relevant HR components ( shared services, center of expertise & business partners ) Extracts of « Unilever’s approach to leveraging HR » in http://www.humanresourcesmagazine.com.au HRM - Unilever

‘ Work Smart’ strategy simplifies the organisation by :

1st Level : Simplifying work and enabling better time management

2 nd Level : Operating within the business at a team level

3rd level : simplifying work in terms of organisational processes and employee engagement.

Unilever’s HR function is now structured into relevant HR components ( shared services, center of expertise & business partners )

Extracts of « Unilever’s approach to leveraging HR » in http://www.humanresourcesmagazine.com.au

CONCLUSION Charles Darwin « It is not the strongest of the species that survives, nor the most intelligent, but those most responsive to changes ». New HR strategies need time to be integrated by employees There is not one perfect HR strategy Take into account relevant criteria to implement and achieve a new strategy HRM - Unilever

Charles Darwin

« It is not the strongest of the species

that survives, nor the most intelligent,

but those most responsive to changes ».

New HR strategies need time to be integrated by employees

There is not one perfect HR strategy

Take into account relevant criteria to implement and achieve a new strategy

HRM - Unilever

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