leadership style in unilever

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Fayol argued that if management interacted closely with the workforce and understood their needs and concerns, they would be far better placed to gather feedback about systems and processes and make the necessary efficiency changes. There are many opinions and much writing on just what the various management or leadership styles there are. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Alternatively under the Tannenbaum and Schmidt continuum (1957) it can be suggested that Paul Polman allows freedom of his subordinates to pursue suitable corporate strategies on the basis of their capability and the application of democratic decision-making. When compared to the Dove brand “real beauty” campaign which Unilever have managed since 2007 (Dove, 2010) it can be seen that there is a strong demand for localised product management and positive diversity, which Unilever have responded to. Although there are few current difficulties with employee relationships, it is apparent that some significant changes still need to be made in order to secure the future of Unilever in the current turbulent economic environment. Fabian Garcia was appointed to the role of President, Unilever North America in 2020. Polman’s move to Unilever now gives him the rare vantage point of one who’s served as an executive at three of the world’s largest fast-moving consumer goods companies. At this point they have equal concern for both production and people as they recognise that to deliver consistently excellent products they must have committed and motivated employees. This principle has also been applied with regard to their requirements for tea leaves for their Lipton and PG Tips brands (Unilever, 2010c). Hanneke was appointed President, Foods & Refreshment on 1 May 2019. Leadership style inspires employee into the higher levels of teamwork in the organization. Oxford, Blackwell Business. Recent years have seen the organization undergo massive transformation, and they have reduced their workforce by some 41% over the last ten years (Unilever, 2010). Houston: Gulf Publishing Co. Black, Richard J. This structure offers them flexibility and adaptability across the globe, and also efficiency in production and distribution. These tactics facilitate human resource productivity and organizational performanc… This is closely linked with reward and recognition for work that has been done well or is particularly innovative. However Unilever have a strong commitment to positive diversity as evidenced by their localised products and marketing campaigns, which are specifically aimed to meet the needs of consumers at a localised level. The Unilever website offers several examples of successful case studies where sustainability has proved to be of great business benefit amongst both internal and external stakeholders, and the board of Unilever also recognise that this can only be achieve by impeccable business performance and adherence to best principles in their own right. Miner, J. Unilever recognise that because of their level of consumption of these raw materials and their need to invest in sustainable practices they will need to work closely with bodies such as the Rainforest Alliance to form synergies, which are beneficial to all stakeholders. This report will consider some of the recent changes and challenges, which have faced Unilever, and provide and analysis of the likely future challenges facing the organisation. His background and experience in the commercial goods and manufacturing sectors make him an ideal candidate for the role, as he is both financially astute and commercially aware. Marc was appointed Chief Supply Chain Officer and a member of the Unilever Leadership Executive in January 2016. Find Out More . According to Blake and Moulton (ibid), this leadership style relies on managers recognising that employees must feel as if they are a highly valued part of the organisation, a theory that is closely aligned with that of Maslow who observed that those employees who produced the best work felt that they were suitably rewarded for their efforts. Analysis of the Organization and Leadership of Unilever, All Channel Network in Business Communication, Annual Report 2012-2013 of Tata Consultancy Services Limited, Probability Chain Network in Business Communication. Application of the Hersey and Blanchard’s situational theory model (1999, cited in Gabriel et al, 1999) further underlines that the Unilever management style is one of participating and delegating as opposed to “telling” employees what to do. They are both internal and external to the organisation to help provide check and balance in their operational views and it is interesting to note that the board is very rare in having such a relatively high proportion of female NED’s at 30% (Black, 2003:236-238). There are several theories, which can be used to help understand the relationship between managers and employees within an organisation. Patrick Cescau was the former CEO of Unilever and the first group CEO for the company. This element of the report will consider three of the main theories put forward by leading academics in the subject, via Taylor (1999) Maslow (1992) and Fayol (1999). Greenpeace (2007) “Unilever admits toxic dumping: will clean up but not come clean” http://www.greenpeace.org.uk/contentlookup.cfm?CFID=6864301&CFTOKEN=96874361&ucidparam=20010620124942&MenuPoint=G-A.Retrieved 9th Nov 2010, Hackman, J. R., & Wageman, R. (2005). Leadership in organizations. In contrast to Taylor, Fayol proposed a far more interactive approach to management techniques, which suggested that process controls were in fact best designed by those people who performed the work every day (ie, the workforce). Taylor (1999 cited in Matteson and Ivancevich), identified that to achieve maximum efficiency and effectiveness within an organisation it is necessary to “synthesize workflows” (1999:12-15) to ensure that there is alignment between resource availability and organisational requirements. In contrast to Taylor, the Maslow school of thought discusses tools and techniques to help managers to motivate and empower employees to perform to the best of their ability. It comprises ten operational and executive directors all of whom have exceptional qualifications and experience in the fields of science, technology and business. Whittington observed that organisational culture is governed by the social structures created by management level, social class and interest groups, and that trying to cut across these groups in certain localised areas was likely to create excessive tension and achieve very little (Whittington, 2000:185-189). They are dual-listed in the Netherlands and the UK, but operate as a single-entity with the same board and senior team. This leadership style can obviously stifle the leader’s subordinates, but can also be useful in a crisis when important decisions need to be made without delay. ), Handbook of industrial, work and organizational psychology, Volume 2: Organizational psychology. Taylor (1999 cited in Matteson and Ivancevich), identified that to achieve maximum efficiency and effectiveness within an organisation it is necessary to “synthesize workflows” (1999:12-15) to ensure that there is alignment between resource availability and organisational requirements. It is a perpetual challenge for Unilever to maintain the interest and enthusiasm of employees who perform repetitive jobs such as those that will be required for a significant proportion of the Unilever workforce. Whittington proposed that organisations in the same circumstances as Unilever would do well to adopt what he described as a systemic approach. : MIT Press. The Managerial Grid: The Key to Leadership Excellence. Some of these challenges are outside of their control, however in order to ensure that they remain one of the leading conglomerates in the world they must adapt and respond flexibly to both internal and external challenges. By this they mean that they have continued the work started by Patrick Cescau seeking to align business activity and ethical activity. We are rallying them for next year and what we need to do to drive the company higher. Running head: MANAGEMENT STYLES Management Styles Management Styles Reflections: To be a better supervisor it's important to know the different management styles generally employed, and which one is the best fit for the manager's personality. Spread the love. Accordingly Unilever has created a four-tier hierarchical structure, which helps to funnel information into the business, and allows the senior team to make appropriate decisions based on available data (Unilever, 2010b). By this they mean that they have continued the work started by Patrick Cescau seeking to align business activity and ethical activity. Leadership style is important in business. Despite the size of Unilever, it is remarkable that they are able to adapt so readily to change at both an internal and external level, and across global boundaries. Such is the level of control exerted by Unilever, that in theory it should be possible to take an employee from a UK manufacturing site and exchange them for an employee from a Dutch manufacturing site, and they should each be capable of performing the necessary roles and functions (Unilever, 2010). As can be seen from the preceding discussions, the senior management team at Unilever have faced some serious internal and external challenges, both at a local level and a global level. Therefore the two executive directors; Paul Polman (Chief Executive Officer) and Jean-Marc Huët (Chief Financial Officer) serve as figureheads for the company. 4. Blake, R.; Mouton, J. In contrast to Taylor, Fayol proposed a far more interactive approach to management techniques, which suggested that process controls were in fact best designed by those people who performed the work every day (ie, the workforce). This is a particularly so on production line, as there is a requirement for absolute conformity as opposed to creativity and individualism. Although Patrick Cescau formally stepped down from his role following his 60th birthday (the main reason for him to leave the post), he has continued to play an active role in corporate life and now serves as a non-executive director to another large multi-national firm. You can read leadership quotes by Steve Jobs and many other visionary leaders. Unilever have been accused of causing deforestation by campaigners such as Greenpeace because of the use of palm oil, a major ingredient in many products. It is recognised by scholars such as Atkinson et al (2007:66-68) that there is currently no uniform approach to sustainability or any codified measures of best operational practice. Find Out More . Whilst they are far from bankruptcy, recent years have seen considerable expenditure and challenge for Unilever, which has centred on the considerable number if divestments and acquisitions in order to strengthen and consolidate their global brand portfolio (Morden, 1996:458-496). It is therefore interesting to observe the influence and effect of Paul Polman as the first external candidate to take the role the Chief Executive Officer. Dr Judith Hartmann Non-Executive Director. As each of the manufacturing plants owned and operated by Unilever produces products and foodstuff, which their consumers will either ingest or use for personal care, the manufacturing must be of the highest standards and quality, with rigorous safety and quality checks at every stage of the process. In consequence Unilever have committed to sourcing all of their palm oil requirements sustainably by 2015 (Unilever, 2010d). This is strongly evidenced at Unilever where the culture of the organisation is derived from its own multi-national background. One of the biggest challenges for learning professionals when it comes to leadership development is that they can lose focus of the bigger strategy picture and their functional expertise may unintentionally obstruct business drivers, according to Daan Van Den Broek, vice-president human resources for Unilever ANZ. http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/07/01/wskin101.xml. It would seem from the success and growth of Unilever as a multi-national conglomerate that they have been particularly successful and following these principles and instilling a collaborative approach which harnesses the power and knowledge of the workforce and uses it to further the growth and development of the business (Fayol, ibid). They are dual-listed in the Netherlands and the UK, but operate as a single-entity with the same board and senior team. Houston: Gulf Publishing Co. Black, Richard J. 6- Management and Leadership Approaches at Unilever Netherlands. Whittington proposed that organisations in the same circumstances as Unilever would do well to adopt what he described as a systemic approach. Cummings, Thomas G. & Worley, Christopher G. (2005), Organization Development and Change, 8th Ed., Thomson South-Western, USA. Organisational Culture has been defined as “the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization,” (Hill and Jones, 2001:27). 5.1- Approaches to Corporate Social Responsibility. This usually isn’t the best leadership style for businesses or teams that rely on innovation or creative problem solving. Unilever is characterised by open channels of communication, and there are points which against the Hersey and Blanchard model the leadership style could be regarded as “selling”, this is more to do with the differing levels of maturity in various parts of the business, and particularly in those parts which have been recently acquired. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. This report offers an analysis of the current organisational structure and management approach of the senior management team at Unilever, a multi-national organisation that produces and distributes many well-known consumer products. Examples of this include working with employees to indentify and implement efficiency savings, and also generating a culture of continuous improvement, which builds a self-perpetuating cycle of success (Judge et al, 2002:770-775). This is closely linked with reward and recognition for work that has been done well or is particularly innovative. As noted on the corporate website (Unilever, 2010c), Unilever have a strong commitment corporate social responsibility and sustainability and they have adopted a specific and targeted set of measures and key performance indicators to benchmark their own sustainability performance. When considering these findings in the light of the Blake and Moulton Leadership grid (1964), it can clearly be seen that the leaders at Unilever are at the inclusive and collaborative point on the scale as termed the “sound” style (previously known as “tem style”). Sustainability or Collapse? Therefore they have engaged some of the most innovative principles in research and development, agriculture, packaging and manufacturing as they believe that “sustainability helps [them] win” (Unilever, 2010c). Published: 1st Jan 1970 in Application of the Hersey and Blanchard’s situational theory model (1999, cited in Gabriel et al, 1999) further underlines that the Unilever management style is one of participating and delegating as opposed to “telling” employees what to do. Therefore Unilever have explicitly set out to create a management structure, which is capable of making faster decisions and responding more flexibly to external stimulus. Finally, the three senior corporate officers are responsible for ensuring that the board of Unilever (both executive and non-executive) have all the necessary information to make prudent and timely corporate decisions on both an operational and strategic basis. It would seem given that there have been no recent publicised disputes between employees and leaders at Unilever that employees are satisfied with the both the pay and recognition which they receive from the management team. Leadership development is ingrained in the Hindustan Unilever culture and is aligned to the vision of being a high performance workplace. In N. Anderson, D. S. Ones, H. K. Sinangil & C. Viswesvaran (Eds. Their ability to perform on their competencies and whether the culture of the organisation supports their chosen strategies or not. Unilever’s success is partly based on the ability of leaders to support a culture of performance and quality. Maslow, A.H. (1992) A Theory of Human Motivation,’ Chapter 10 in Henry M. Strage,1992, Milestones in Management: An Essential Reader. This has helped their own reputational and brand management and has enabled them to react rapidly to consumer demand, which has served to strengthen their corporate and market position. As Maslow noted, once the basic needs have been satisfied, the need to be accepted and to “belong” is a powerful human motivator. The Unilever Executive (UEx) “is responsible for managing profit and loss, and delivering growth across our regions, categories and functions” (Unilever, 2010a). This report will consider some of the recent changes and challenges, which have faced Unilever, and provide and analysis of the likely future challenges facing the organisation. Registered Data Controller No: Z1821391. Unilever state that their approaches to Corporate Social Responsibility incorporate “business benefits as well as ethical principles” (Unilever, 2010c). As reported in the Telegraph (2008), Unilever searched long and hard for a suitable successor to the position and eventually felt that Paul Polman would be a suitable candidate given his own background, capabilities and skills. Remembering that the board of Unilever has been secure and stable for some time, it is of little surprise that they are able to adopt and react flexibly to change. 10. His background and experience in the commercial goods and manufacturing sectors make him an ideal candidate for the role, as he is both financially astute and commercially aware. BBC News. It would seem given that there have been no recent publicised disputes between employees and leaders at Unilever that employees are satisfied with the both the pay and recognition which they receive from the management team. Copenhagen Climate Change ( 2009 ) http: //www.copenhagenclimatecouncil.com/about-us/councillors.html ( retrieved 5th,... Have been undertaken by Unilever in their recent history in the hindustan Unilever recognised early that its success would determined. Registered in England and Wales structure gives them suitable balance between Corporate Governance.... Answer any questions you have about our Key personnel across Unilever South Africa in 2020 Marketing in. 400 brands that touch on the lives of billions of people on Earth their recent history fayol, K.... 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