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Unilever HRM case study

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European MBA HRM presentation

Unilever HRM case study

  1. 1. FLEXIBLE WORKING INTRODUCING ANNUALIZED HOURS AND 24-HOURS WORKING HRM - Unilever
  2. 2. # HRM - Unilever
  3. 3. THE COMPANY <ul><li>Global company </li></ul><ul><li>2007 turnover : €40 billion </li></ul><ul><li>174 000 people in around 100 countries </li></ul><ul><li>Home & personal care </li></ul><ul><li>4 major businesses ( Cooking & eating, Healthy living, Beauty & style , Household activities ) </li></ul>HRM - Unilever
  4. 4. A PORTFOLIO OF AROUND 400 BRANDS HRM - Unilever
  5. 5. FLEXIBLE WORKING <ul><li>What were the challenges that Unilever had to manage ? </li></ul><ul><li>Which methods did they use ? </li></ul><ul><li>Annualization; </li></ul><ul><li>24-hours working ; </li></ul><ul><li>The newest organizational set up. </li></ul>HRM - Unilever
  6. 6. CONSIDERATIONS TAKEN INTO ACCOUNT WHEN CHANGING WORKING TIMES HRM - Unilever
  7. 7. ANSWERING MAIN CHANGES <ul><li>Several National Markets </li></ul><ul><ul><ul><li>Specialized products and tastes </li></ul></ul></ul><ul><ul><ul><li>Each factory producing most of the products </li></ul></ul></ul><ul><ul><ul><li>Local markets with no competitors </li></ul></ul></ul><ul><li>One single European Market </li></ul><ul><ul><ul><li>Standardised products </li></ul></ul></ul><ul><ul><ul><li>One product in each plant </li></ul></ul></ul><ul><ul><ul><li>Direct competition btw factories in Europe </li></ul></ul></ul><ul><li>New HR strategy </li></ul>HRM - Unilever
  8. 8. KEY HR STRATEGY CONSIDERATIONS HRM - Unilever
  9. 9. METHODS TO MANAGE CHANGES <ul><li>The « New Horizons » Plan (1991) </li></ul><ul><li>Collective bargaining, </li></ul><ul><li>Teamwork, </li></ul><ul><li>For a consensual approach to a change management </li></ul>HRM - Unilever
  10. 10. WHY INTRODUCE ANNUAL HOURS <ul><li>All companies </li></ul><ul><li>Reduce weelky planning </li></ul><ul><li>Control overtime </li></ul><ul><li>Emphasis with seasonal changes </li></ul><ul><li>To maximise productivity </li></ul><ul><li>Cope with new technology </li></ul><ul><li>To harmonise terms and conditions of employment. </li></ul><ul><li>Unilever </li></ul><ul><li>To adapt to a new political context and thus a global market </li></ul>HRM - Unilever REASONS FOR :
  11. 11. ADVANTAGES & DISADVANTAGES <ul><li>Annual hours can provide : </li></ul><ul><li>For employers </li></ul><ul><li>greater employee flexibility </li></ul><ul><li>reduce overtime </li></ul><ul><li>maximize productivity and efficiency. </li></ul><ul><li>What does effectively happen : </li></ul><ul><li>For employers </li></ul><ul><li>No overtime anymore </li></ul><ul><li>Greater flexibility </li></ul><ul><li>Banked hours : </li></ul><ul><ul><ul><li>(+) Harmonization and greater control </li></ul></ul></ul><ul><ul><ul><li>(-) Paying for unworked hours </li></ul></ul></ul>HRM - Unilever
  12. 12. ADVANTAGES & DISADVANTAGES <ul><li>Annual hours can provide : </li></ul><ul><li>For employees </li></ul><ul><li>improvement of the basic salary and progress within employee status. </li></ul><ul><li>But can reduce their freedom to plan their leisure. </li></ul><ul><li>What does effectively happen : </li></ul><ul><li>For employees </li></ul><ul><li>Banked hours : </li></ul><ul><ul><ul><li>(-) Employees are obliged to work those hours / Before : volontary (no more freedom of choice) </li></ul></ul></ul><ul><ul><ul><li>(-)« Caravan culture »  </li></ul></ul></ul><ul><li>=) Demotivation </li></ul><ul><li>=) Less family friendly </li></ul>HRM - Unilever
  13. 13. A NEW ORGANIZATION <ul><li>1992 : 24h Working Plan </li></ul>HRM - Unilever
  14. 14. WHY INTRODUCING 24 HOURS WORKING ? <ul><li>All companies </li></ul><ul><li>Optimizes production lines </li></ul><ul><li>Stretches time contraints </li></ul><ul><li>Attracts part time workers </li></ul><ul><li>Unilever </li></ul><ul><li>Effective answer to the new production processes </li></ul>HRM - Unilever REASONS FOR :
  15. 15. THE IMPLEMENTATION <ul><li>Possibilities </li></ul><ul><ul><li>Rotating shifts </li></ul></ul><ul><ul><li>Fixed shifts for nigths & days </li></ul></ul><ul><li>Unilever choices </li></ul><ul><ul><li>Rotating work patterns </li></ul></ul><ul><ul><ul><li>Why : </li></ul></ul></ul><ul><ul><ul><ul><li>Avoid lower quality production </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Avoid double corporate culture </li></ul></ul></ul></ul>HRM - Unilever
  16. 16. FROM ATKISON’S POINT OF VIEW HRM - Unilever CORE PERIPHERY
  17. 17. ADVANTAGES & DISADVANTAGES <ul><li>All companies </li></ul><ul><li>For employers </li></ul><ul><ul><li>(-) Create 2 cultures </li></ul></ul><ul><ul><li>(+) Optimazation of production lines </li></ul></ul><ul><li>For employees </li></ul><ul><ul><li>Enable more jobs for those interested in other work patterns </li></ul></ul><ul><li>What does effectively happen ? </li></ul><ul><li>For employers </li></ul><ul><ul><li>(-) Physiological (quality product and output) </li></ul></ul><ul><li>For employees </li></ul><ul><ul><li>(-) Have a compulsary rotating planning : less family friendly </li></ul></ul>HRM - Unilever
  18. 18. 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
  19. 19. HOW TO MASTER A PLANNED WORKING TIME SYSTEM HRM - Unilever
  20. 20. <ul><li>LABOUR MARKET </li></ul><ul><li>SOCIAL FACTORS </li></ul><ul><li>Unemployment rate </li></ul><ul><li>Competitors </li></ul><ul><li>Overtime cost </li></ul><ul><li>Forecasting demand </li></ul><ul><li>Corporate Social Responsibility (CSR) </li></ul><ul><li>Technological changes </li></ul><ul><li>Family patterns (single parents…) </li></ul>HRM - Unilever
  21. 21. A new HR strategy :«Working Smart» <ul><li>‘ Work Smart’ strategy simplifies the organisation by : </li></ul><ul><li>1st Level : Simplifying work and enabling better time management </li></ul><ul><li>2 nd Level : Operating within the business at a team level </li></ul><ul><li>3rd level : simplifying work in terms of organisational processes and employee engagement. </li></ul><ul><li>Unilever’s HR function is now structured into relevant HR components ( shared services, center of expertise & business partners ) </li></ul><ul><li>Extracts of « Unilever’s approach to leveraging HR » in http://www.humanresourcesmagazine.com.au </li></ul>HRM - Unilever
  22. 22. CONCLUSION <ul><li>Charles Darwin </li></ul><ul><li>« It is not the strongest of the species </li></ul><ul><li>that survives, nor the most intelligent, </li></ul><ul><li>but those most responsive to changes ». </li></ul><ul><li>New HR strategies need time to be integrated by employees </li></ul><ul><li>There is not one perfect HR strategy </li></ul><ul><li>Take into account relevant criteria to implement and achieve a new strategy </li></ul>HRM - Unilever
  23. 23. HRM - Unilever

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