1. qwertyuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmqwertyuiopasdfghjklzxcvb
Importance of Management
Development in Human Resource
Development and Corporate Strategy:
nmqwertyuiopasdfghjklzxcvbnmqwer
A Case study of Unilever China (Skin-Care
Products Division)
12/24/2009
tyuiopasdfghjklzxcvbnmqwertyuiopas
Author Name
dfghjklzxcvbnmqwertyuiopasdfghjklzx
cvbnmqwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwertyuio
pasdfghjklzxcvbnmqwertyuiopasdfghj

2. Table of Contents
Chapter 1: Introduction ............................................................................................................... 6
Human Resource Development and Management Development ................................................... 6
Unilever........................................................................................................................................... 8
Purpose of Research ...................................................................................................................... 10
Research Objectives .................................................................................................................. 10
Research Questions ................................................................................................................... 11
Significance of the Study .............................................................................................................. 12
Overview ....................................................................................................................................... 12
Chapter 2: Literature Review ................................................................................................. 13
Introduction ................................................................................................................................. 13
HRD and Two interpretations of Management Development ................................................. 14
Management Development for Competitive Advantage .......................................................... 15
Overall Corporate Strategy and Management Development ................................................... 17
Management Development and Impact on managerial performance .................................... 18
Management Development Strategies ....................................................................................... 21
Push and Pull Strategy ............................................................................................................ 21
Formal and Informal Development ....................................................................................... 22
Isolated or integrated Management Development ............................................................... 24
Line Managers’ Perception of Management development ...................................................... 25
Management Development and Transference to Practice ....................................................... 26
Management Development and Role of Top Management ...................................................... 29
Conclusion .................................................................................................................................... 31
Chapter 3: Research Methods ................................................................................................... 32
Qualitative Research ..................................................................................................................... 33
Case Study .................................................................................................................................... 33
Research Instruments ................................................................................................................ 34
Secondary Research .............................................................................................................. 35
In-depth Interviews ............................................................................................................... 36
Reliability...................................................................................................................................... 39
Validity ......................................................................................................................................... 40
2

3. Ethical Issues ................................................................................................................................ 40
Chapter 4: Unilever HRD and MD Strategy---A Review of Literature ................................ 41
Management Development Philosophy in Unilever ..................................................................... 42
Changes in Unilever‘s HR Strategy and its MD Function 1999-2005 Path to Growth Strategy . 42
Unilever‘s Management Development System .................................................................... 45
Application of Management Development System .............................................................. 48
Performance development planning (PDP) .......................................................................... 49
One Unilever Strategy 2005-Present: Outsourcing of HR Functions ........................................... 51
HR BP role in the Operating Framework ..................................................................................... 52
Service Relationship Model: ......................................................................................................... 54
Service Mgmt roles fit with HR leadership .................................................................................. 54
Conclusion .................................................................................................................................... 55
Chapter 5: Interviews ................................................................................................................. 56
Interviews of 10 Managers............................................................................................................ 56
Manager #1 ........................................................................................................................... 56
Manager # 2 .............................................................................................................................. 57
Manager # 3 .............................................................................................................................. 58
Manager # 4 .............................................................................................................................. 58
Manager # 5 .............................................................................................................................. 59
Manager # 6 .............................................................................................................................. 59
Manager # 7 .............................................................................................................................. 60
Manager # 8 .............................................................................................................................. 60
Manager # 9 .............................................................................................................................. 60
Manager # 10 ............................................................................................................................ 61
Interviews of 2 Superiors .............................................................................................................. 62
Superior # 1 ............................................................................................................................... 62
Superior # 2 ............................................................................................................................... 63
Conclusion .................................................................................................................................... 63
Chapter 6: Discussion ................................................................................................................. 64
Discussion and Analysis ............................................................................................................... 64
Major Changes in HR Policy .................................................................................................... 65
Role of MD in Individual‘s Development ................................................................................ 65
Competencies Acquired ............................................................................................................ 66
Integration of Corporate and Individual Goals ......................................................................... 66
3

4. Influence on Performance ......................................................................................................... 66
Impact of Outsourcing .............................................................................................................. 66
Conclusion .................................................................................................................................... 67
Chapter 7: Findings and Conclusion ........................................................................................ 67
Overview ....................................................................................................................................... 67
Findings......................................................................................................................................... 68
Implications for Human Resource Management and Development ............................................. 69
Limitations .................................................................................................................................... 70
Further Research ........................................................................................................................... 70
Appendices ................................................................................................................................... 71
Appendix I: References................................................................................................................. 72
Appendix II: Questions for Interviews ......................................................................................... 82
Questionnaire for Managers ...................................................................................................... 82
Questionnaire for Superiors ...................................................................................................... 83
4

5. Acknowledgement
Abstract
This dissertation is a case study of Unilever PLC one of the largest multinational organisations in
the world. It analyses the organisation within the framework of human resource development and
management development and tries to understand the relevance of management development
(MD) in a corporation‘s overall business strategy and it how it influences the performance of
individual mangers. The reports also considers management development as a strategic tool
trying to understand how Unilever has used it. The study relies on secondary research as well as
in-depth interviews to answer all the research questions posed in the first chapter. From the study
it becomes apparent that the importance of MD is increasing and Unilever does appreciate its
long term importance both at individual and corporate level.
5

6. Chapter 1: Introduction
Human Resource Development and Management Development
Human resource management is considered to be one of the key areas of management process.
Human resource development is one of the main functions of human resource management. Over
the past decade human resource development (HRD) has been identified by different
academicians and researchers as a key not only for development of employees but also as a
strategic tool for an organisation. Today employees and managers are considered as stakeholders
in organisations along with customers, suppliers and shareholders. For any organisation to
prosper, it is important that the employees are not only hired and retained but it is in the best
interest of the organisations that their skills and capabilities are further developed and nurtured.
This is in turn allows employees to improve their competencies and strategically enhances their
6

7. performance and also give the firm a competitive advantage. In the globalised work
environment, large multinational corporations rely on HRD as an instrument to not only develop
human resources to deal in an international environment but also gives an organisation
competitive advantage in both local and global markets. The degree of success in HRD through
different practices also is an added factor in any competitive advantage gained (Horwitz, 1999).
In assition the strategic nature of HRD has made is an important part of HRM as it it acts as a
channel to improve performance and competencies. Therefore HRD is directly linked to
productivity, market share and even sales (Horwitz, 1999).
As in the case of the relationship between HRD and HRM, at managerial level management
development is a very important HRD function. Management development gives specific
importance to developing broad, synchronized and active methods for managerial learning
programs. These initiatives are carried out in form of internal and external programs and formal
and/or informal processes. This is done to achieve corporate objectives in a competitive
environment. Management development is based on the premise that managerial learning should
not be accidental rather it should be part of the overall business process. There is a need for a
consistent policy and practices for successful implementation of MD. This is important because
MD cannot be carried out in isolation it has to be entrenched in the overall strategic philosophy
to benefit all the stakeholders (Akuratiyagamage, 2007).
In the international environment, there is a need for large corporations to choose from a number
of options to develop their internal human resource potential, they are free to use different
means. No matter which route is considered organisations should support learning and
development activities and this need has been recognised and underscored. Even though today
development models use action learning and real challenges, but formal management
7

8. development programs are even today very popular. It is thought that these formal programs
give development process a paradigm shift as the employees are able to think and interact in
different environments. However what is significant is how the learning process is transferred
into workplace(Belling, 2001).
Management development is used as an instrument more in larger corporations than in small or
medium sized organisations. The next section briefly discusses Unilever, which has been chosen
as a case study to understand management and whether it is successfully implemented in the case
of this multinational corporation.
Unilever
This research is explores the role of management development within Unilever, it traces its
evolution and its impact on HRD and business strategy. Unilever is one of the biggest FMCG
companies in the world with The company operates under a dual structure, Unilever PLC and
Unilever NV—both are parent companies of the Unilever Group. Although both organisations
are separate legal entities with different stock listings but they operate as a single entity. It is a
truly global concern with its operations in Europe, The Americas, Asia and Africa and its
headquarters in the UK. It has 179,000 employees working for it (Data Monitor, 2008).
There have been many changes in the way HR activities are conducted in different organisations
in recent years. Management philosophy has moved away from the traditional approach of profit
maximisation towards a more holistic approach which includes the empowerment and
development of managers at different levels and considering them as stakeholders and significant
contributors to the organisation. Because Unilever is one of the major leading Multinational
organisations in the world and has been in existence for over a century it is important to
8

9. understand the secret of its sustained success. It is crucial to understand what the organisation
considers its employees to be and in what way do these measures shape employees‘ perceptions
about their place in the organisation and also how it is reflected in their individual performance.
Unilever is a traditional multinational organisation, but with changes in time, nature and
expectations of people has evolved and this along with the changing trends from within the
company has led to the establishment of management development as a strategic instrument in
meeting the goals (Human Resource Management International Digest, 2002).
Unilever has responded to the changing needs and times by putting more emphasis on
management development. Human resource development at Unilever has two major objectives:
(Human Resource Management International Digest, 2002)
 Developing the potential leaders of the organisation
 Developing persons to accomplish their best abilities
The second objective is not just climbing the corporate ladder but a means to facilitate staff
members to extend their professional capability as a result this may in turn aid the performance
growth of the organisation. HR development has to match the strategic long-term goals of the
organisation (Human Resource Management International Digest, 2002).
These efforts have been made globally in different countries, however the research would focus
on one country China and a single division: Personal Care Division of the organization
headquartered in Shanghai to understand the importance of management development on
SHRM and corporate strategy in competitive environment.
9

10. Purpose of Research
The central objective of this study is to understand why a corporation like Unilever opts for
management development. It also aims to find how effective the management development is as
a tool not only at the level of human resources but also as a strategic tool. The dissertation uses
both secondary sources and in-depth interviews to understand the impact of management
development on managerial performance. Interviews of both managers and their superiors were
conducted to understand the perspective of those who experience MD and also those who are in a
position to see whether it is translated into more productive employee and whether it is in line
with the overall corporate strategy.
Research Objectives
The main research objectives would be:
 To find the main driving factors that lead to management development
 To understand the theoretical perspectives that led to implementation of managerial
development plan
 To understand the impact of management development in terms of employees acquiring
skills and competencies and their development and performance
 To understand the effect of management development in terms of organisational
development and competitive advantage
 To understand if performance of managers and the role played by senior management in
encouraging or discouraging management development
10

11. Research Questions
Keeping in mind the above objectives the research questions are two-pronged; to first understand
the overall MD and HRD strategy. For this following questions would be relevant:
 How does Unilever regard management generally regard management development in the
field of HRD and also strategic policy formulation?
 How has the MD strategy evolved in the past ten years?
 What steps are taken to make management development and important part of human
resource development?
 How has management development practice evolved as part of the overall corporate
strategy?
 What has been observed by researchers studying their policies and measures in terms of
management development?
For the Personal care division in China following would be the research questions:
 How has management development changed with the new policy implementation?
 major competencies were acquired by managers during and after the management
development process?
 Were these competencies helpful strategically to the manager and the organisation?
 What was the impact of management development on managers‘ performance?
 Did their performance improve?
 What were the changes perceived by the managers and their superiors?
11

12. Significance of the Study
HRD and MD have increasingly gained importance as more and more organisations realise that
these functions can be utilised not only to train and develop employees and use MD as a tool for
internal recruitment, but this instrument is increasingly being embedded in the in the overall
corporate strategy and regarded as a competitive advantage for an organisation. This particular
study seeks to find out the nature MD taking place in a large corporation like Unilever and also
to see how effectively it is being carried out in case of the organisation‘s Chinese operations.
Even though this researcher is a student with little experience, however, this dissertation would
contribute towards understanding MD from a more practical perspective.
Overview
This report is divided into seven chapters. Next chapter is a detailed look at existing literature,
which is followed by research methods chapter which outline the theory and actual research
methods to be used for this study. Chapter four and five are case study of Uniliver moving from
more general practices and policies as understood from secondary research to a more in-depth
look as one division of the organisation in China. Chapter six discusses the information of the
previous two chapters, while chapter seven is the concluding chapter with a brief summary and
findings of the study.
12

13. Chapter 2: Literature Review
Introduction
An organisation‘s competitiveness is generally associated with improving managerial
capabilities, training and development also called human development (Worrall and Cooper,
2001). And the quality of an employee‘s contribution is fundamentally founded in how the
acquired knowledge and skill is applied. Management development is not a very narrow concept.
Its definition as provided by Baldwin and Patgett (1994, p. 270) “the complex process by which
individuals learn to perform effectively in managerial roles”. This is because when one talks
about adults it is clear that they learn in different ways and development of managers is done in
many ways intentionally or involuntarily in an organised or unorganised way or even
independently by an individual.
It is important first to understand what researchers believe what managers really do. According
to previous studies. Some researchers who have studied managers show managers to be different
from the general picture of a careful alert goal oriented coherent decision maker. Instead a study
by Fores and Sorge (1981) observed managers and according to them managers are time-stresses
13

14. and more interested in dealing with day-to-day issues, who are interrupted regularly and are
unable to prioritise most of the time. Stewart (1968) on the other hand noted that the nature of a
manager‘s job is multitasking with each manager carrying out different activities in a space of a
day. Mintzberg (1973), in a study of CEO found that even at the highest level there were short
span activities which occupied them and the most important way that managers got hold of
information was through talking with colleagues rather than superiors or subordinates (McCall,
1978. On the whole managers react to problems as they occur and they deal with them without
prioritising them or categorising them. Decisions are more or less intuitive based on the
information gained. It is believed that with more sophistication stress levels and number of
activities has improved.
HRD and Two interpretations of Management Development
Management development stresses on building of broad, synchronised and dynamic initiatives
for managerial learning both within and outside an organisation. This is done to allow the
organisation to achieve its organisational goals and objectives in a competitive atmosphere.
management development it is based on the understanding that managerial learning is a planned
part of the business process rather than taking place unintentionally, therefore is integrated into
the human resource management system. For successful management development there needs
to be a consistent set of policies and practices which jointly ensure that learning is an integral
part of an organisation for all the individuals and institutions involved.
Organisations today are dealing with constantly evolving environment and rapidly changing
situations which have not been witnessed before. For any organisation to be successful in a
highly competitive environment it is important for each organisation to keep on altering its
14

15. different aspects like organisational structure, IT, business operations and culture (Sun, 2000).
Organisational development is a collection of ideas and strategies that can be used to enhance abilities and
capacity of an organisation and its human resources at group level and at individual level(Beer and Walton,
1987; Doorewaard and Benschop, 2003; Francis, 2003). Human resource development involves development
and adaption to change as emphasis is on individual learning and this is the basis of organisational learning
(Elkjaer,2001; Grey and Antonacopoulou, 2007; Walton 1999). HRD spotlights the skills and abilities of
individuals and their needs in order that all employees can work within an organisation context (Megginson et
al. 1993).
According to Simmonds and Pedersen, (2006) in their literature review indicate that limited research has been
carried out in development of HRD theory in the past twenty years. Since HRD became a popular practice
there has been a division in how HRD is applied. The division can be seen in the American approach which
emphasises performance outcome paradigm, in which individual development was stressed for organisational
outcomes(Swanson and Holton, 2001). Most of this was based on organisational development theory (De
Simone et a.l, 2002). The British on the other hand have followed learning and development framework which
centres on improving training and development, within this paradigm management development is considered
an important way of developing managers Garavan et al., 1999).
Management Development for Competitive Advantage
It is now believed that competitive advantage is internal to an organisation rather than part of
external environment as thought before (Longenecker and Ariss, 2002; Ulrich and Lake, 1990).
Currently in the business environment high performing managers are hard to find and very
difficult to groom and cannot be substituted easily. Managers are also considered in many cases
as very valuable assets of an organisation (Rauschet al., 2002; Wright and Ferris 1996).
Therefore for any organisation development of managers is essential. When this is applied in a
global environment, understanding, acquiring of awareness and adaption to continuously
15

16. evolving situation are important factors that contribute to international business performance
(Lyles and Salk, 1996). As a result management development activities are necessary part of
organisations who aim to achieve excellence and who want to invest intelligently in human
resources. Following this idea there are two options available to organisations. They can either
recruit employees and managers, or they can enhance the skills and capabilities of their present
employees by providing development opportunities by selecting candidates(Delaney and
Huselid, 1996).previous research suggests that investing in managers in terms of training and
development in a strategically cantered approach management development can give more
variable and long-term benefits, as this is a value added business strategy (Kirkbride, 2003;
Longenecker and Ariss, 2002; Shefy and Sadler-Smith, 2006; Storey and Sisson, 1993). This
may also hold true, for those individual who may demand additional premium for their skills are
expected to change their jobs, therefore it is not easy to expect commitment from such
individuals (Kim, 2005; Walton, 1999). As a result organisations have to deal with issue of
offering individual employees, possibilities to develop. This leads to a relationship which is
based on mutual respect and benefit to both the organisation and individual employee. According
to Bagshaw (1996) this on one hand improves the employee‘s performance and enhances his or
her contribution to the organisation and allows them an opportunity to capitalise on their own
development. A new relationship is also formed between the organisation and its employee.
Organisations in this become committed to developing individuals, while the individuals return
whatever they have learned into the organisation. This is a cycle which continues till the
relationship lasts. Therefore instead of permanence there is a shared growth which replaces it.
Within this paradigm conditions for learning can lead to higher commitment levels from the
employees and also leads to a perception that organisation is a good place to work (Belling,
16

17. 2004; Schuler, 1987).According to Bender et al., (1996), management development and learning
has progressed into a new role which balances the interests of manager and the organisation.
Researchers and academics, understanding the value of learning, propose that organisations
should take steps to encourage and channelize measures to develop managers.
Overall Corporate Strategy and Management Development
Corporate or business strategy influences management development, and management
development also influences strategic decision making. Traditional understanding of influence
on strategy on management development it that HRD would only be considered when corporate
strategy is formed, however this understanding is no longer applicable (Wright and Ferris, 1996).
For management development to be successful it needs to considered as part of the process
where strategy is developed, because the organisation is dependent on using all its resources to
deal with different internal and external challenges (Kirkbride, 2003; Longenecker and Ariss,
2002; Luoma, 2005). This idea of management development provides a wide array of options to
different organisational problems, so that HR is in goal identification and evaluation of
organisational capacity (Fulmer et al., 2000; Rausch et al., 2002; Tichy, 2002). Therefore
management development has to be undertaken with the intent of management policies and
procedures are integrated within an organisation‘s general mission (Walton, 1999).Management
development strategy on one hand provide long-term commitment, while its implementation
show an organisation‘s commitment to continuous development learning and development
process not only to maximise their contribution, but also help them in improving their standing
within an organisation. For this to occur it is important that management development is
17

18. incorporated into the business strategy vertically. When the influence of management
development is considered it is found to influence strategy in several ways. Management
development helps in creating both directly and indirectly, organisational cultures (Fombrun
,1984; Hendry, 1995). Management development also is fundamental because the quality of
management usually ensures how strategy is formulated and what kind of input is made by
managers. Business strategy is more successful when it is formed around the core business
activities, rather than management development being regarded as an independent contribution
which is not part of the core business strategy (Hendry, 1995). As a result management
development provides quality and quantity of human resources.
Management Development and Impact on managerial
performance
There is very limited existing research which directly links management development with managers‘
performance. According to Storey et al., (1997), it was found that UK companies had changed
themselves in terms of management development, and the amount of training being offered much
more than before and management development was considered an important part of
organisational activity. This change was visible in smaller and larger concerns. Keeping this in
mind the idea that management development may be a strategic tool is now more widely
accepted, however, many believed that there was a causal connection between management
development and organisational performance (Miller, 1991). Storey et al., survey further
reiterated this fact that organisations considered MD to have beneficial impact on organisation‘s
profitability. Some theorists contend that organisation‘s leadership should take on the role of
management development. Like higher level managers mentoring lower level managers or
18

19. providing motivation to others to follow. Winterton and Winterton (1997) provide very
conclusive evidence which shows a positive linkage between management development and
performance of individuals and organisation. According to them when management development
objectives are integrated into organisational strategy the connection between development and
performance is clearly enhanced. However the problems abound not because of absence of
management development or lack of development opportunities. According to Pickering and
Matson, (1992) in spite of good management development programs managers don‘t have
sufficient organisational support to convert their learning to a more practical use. They indicate
that the trainees also encountered hostilities which often led to distress and disappointment. The
result is that it is not just the courses which are the problem it is the organisational culture and
other organisational issues. It is important therefore to understand the role of management
development and management should be aware of the changes needed and the development
activity should be more focused. Dave Ulrich (1998) observes that organisation‘s competence
“works when senior managers ensure that development is more than an academic exercise, when
training is tied to business results not theory…”
According to Longenecker and Fink (2001), it is important for both organisations and people o
change their old behaviours and adopt those procedures and attitudes that make them more
efficient and successful (Senge, 1990). They state:
Thus, the name of the new game is change in the search of competitive advantage. To this end,
most modern organizations are presently engaged in a myriad of organizational change efforts
aimed at improving performance. New strategies are being considered which require different
organizational skill sets or behaviours. The complexity involved in implementing new strategies
19

20. has increased and the time available to managers to respond to competitive threats and
implement changes has shortened.
To remain competitive in a changing and more global environment, organisations have changed
their distribution and supply changes have been reorganised, relationship with different
stakeholders has been changed and workforce‘s efficiency and productivity has been evaluated to
and these are just a few of the minor changes which have been carried out by organisations to
deal with the new economic realities. Especially in the face of rapidly changing external
environment there is a need for organisations to have effective leadership which is proactively
able to deal with. Drucker also indicates that change needs effective development of managers.
Thus in this fluid environment dynamics of management development cannot remain constant,
there is need to change them with time as they help managers in acquiring capabilities necessary
to function successfully(McCall et al., 1988). Fulmer indicates that because of rapid
organisational evolution, management development has also to change to keep up with new
realities. According Longenecker and Fink (2001):
Ultra-competitive environments require organizational change; organizational change requires
effective managerial performance; effective managerial performance requires appropriate skills
and behaviour. Appropriate skills and behaviour development is facilitated through appropriate
and effective management development activities. And different management development
activities may be required depending on which skills and behaviours are in most demand of
development by the organization at a particular time (e.g. planning, organizing, leading and
controlling vs. new and different ways of thinking, acquisition of new business skills, and
development of different leadership and communication behaviours.
20

21. Management Development Strategies
Push and Pull Strategy
According to Pauwee and Williams (2001), there are two ways of developing managers:
Push strategy is the traditional method, a classic management development program where
managers in a certain salary group or age group undergo training and development. They are
selected to undertake a course and this was done especially during the earlier years. In many
cases management trainees would have to come back for more training as they would proceed to
a higher rung in the management ladder.
Pull strategy is based on the requirements of individuals working, when they request to be
trained. This is just in time training for needs which may not have been anticipated by the
management.
These strategies suggest that there are certain times in a mangers‘ career when training is
required, as it was Jordan (1968) who indicated that individuals learn more when they are ready
to learn. However there are many instances when there are situations where development is
needed in addition because of the global realities, managers face tasks which are unprecedented.
For example scenarios where transfers may mean international transfers, In these scenarios pull
strategy appears to be more effective as more spontaneous development opportunities tend to
arise and the training would be more inclusive, instead of training of one manager, as teams
undergo training and development. There may be some advantages associated with the push
strategy as it may increase motivation levels of employees.
21

22. Formal and Informal Development
The second issue which is important in the case of management development as indicated by
Pauwee and Williams, (2001) is whether management development programs are controlled in
form of formalised class-room based programs or should they be more hands on informal
processes?
Organisations can use both formal and informal processes.
Informal Management Development Process: Informal process occurs as a consequence of
organisational operations. Like interpersonal communication or accomplishing of objectives, and
managers in this case may not be intentionally prepared to learn something through a formal
program (Holden and Hamblett, 1998; Järvinen and Poikela, 2001; Marsick and Watkins, 1997;
Mumford, 1997).
Formal Management Development Process: formal processes are pre-planned training and
development programs, which are usually initiated by organisation, and are observed and even
controlled by higher organisational forces Marsick and Watkins, 1997; Mumford, 1997).
Although research indicates that informalprocesses are preferred by individual managers from
formal management development processes (Mumford, 1997). There are several reasons why
informal processes are considered more effective than formal processes, are that in many cases
formal training programs which are not on the job are not considered practical or and are thought
to be irrelevant and difficult to transfer the learning to work environment. These formal
programs are also considered to follow the interest of the individuals who designed the training
program, and do not consider preferences of the trainees (Akuratiyagamage, 2004a; Griffin,
2003; Rees and Porter, 2005). Akuratiyagamage, 2004a believes that relying on a whether formal
22

23. or informal process is not recommended, especially knowing that informal processes are not
sufficient and also inefficient in how development and training is imparted to the employees as
managers don‘t have the ability to convert the learning experience into on job decision-making
process. Formal management development though significant is not enough and not provided in
the correct manner. But this discussion doesn‘t mean that formal processes are better than
informal processes or that informal processes are more natural and incidents, organisations
should only depend on them and not make them part of management development. However,
management development without informal process would make management development less
real and more theoretical (Malcolm et al., 2003). As a result what seems to be appropriate would
be an integrated management development process which makes use of both kinds of processes.
This incorporation would be in terms of several dimensions, time, environmental conditions, and
cognitive capacity and manager‘s work routine (Lohman, 2006). Even at this point the success or
effectiveness of the integrated approach depends on organisational culture and climate, whether
it is conducive to development, and whether the organisation supports, encourages and nurtures
learning (Akuratiyagamage,2004, 2004b; Belling et al., 2004; Muhamad and Idris, 2005;
Rodwell, 2005).
Informal approaches to management development are related to eastern cultural values. Pauwee
and Williams Observe:
In the West we tend to emphasize formal assessment of individual strengths and weaknesses
linked to formal, often course based, development programs. In contrast in SE Asia top
managers are much more personally involved in the development process of their chosen
subordinates. They will each have their stable, as it were, of junior managers with whom there is
23

24. a reciprocal supportive relationship. There is little formal assessment or development but rather
informal development through mentoring, job rotation and project involvement.
Therefore what is being observed is a trend towards using more informal approach a real-life,
real-time development projects instead of more formalised pre-prepared learning which may not
be as effective.
Isolated or integrated Management Development
When one deals with HRD and management development the question arises whether
management development should remain an independent peripheral activity, or should it be
integrated with the organisation‘s strategic objectives? The major weakness as discussed earlier
is when in a more traditional approach to management development; it is regarded as an
instrument which is a separate activity with little or no link with the strategic goal of an
organisation.
When one discusses Human resource development, from the traditional paradigm the
fundamental focus is on development activities and their connection at tactical level rather than
at a corporate or strategic level Saunders and Holdaway, 1992). HRD here becomes more of a
marketing type philosophy with stress on contractual relationships (Stuart and Long, 1985a)
where the line managers and other stakeholders are provided consultancy. In this paradigm line
managers are considered to be customers as HRD is considered to be an independent activity and
there will be need to integrate horizontally, however most of what is taking place is being done
to use human resources in the best possible way (Fredericks and Stewart, 1996).
The integrated paradigm is more concerned with an increasingly more popular theoretical
perspective of HRD which is related to its strategic importance (Garavan et al., 1995). Here as
24

25. mentioned before there is a strong emphasis on a vertical integration between corporate goal and
vertical integration. Strategic HRD is usually defined as development activities which are
applied to improve human resources in an organization, and is an important contributor to
corporate strategies. This is also regarded as learning organization perspective, particularly in a
learning environment. In this approach there is proactive attempt at organisational change,
therefore individual training and development changes into learning.
There has been little or no evaluation of management development programs. Most of the time at
the end of program evaluations is carried out usually to measure levels of happiness. This occurs
because the program is carried out by HR or management development. These evaluations are
not very credible, they are also incapable of measuring actual changes in terms of learning,
behaviour patterns during work and organisational performance (Kirkpatrick, 1976). Mostly
attempts to understand the impact of management development has been limited to surveys of
those who are organising these programs like the HR people. The feedback from HR or
management development employees show that these programs are ineffective and employees
complain about lack of information or even no connection with actual work (Jansen et al. 2001).
Line Managers’ Perception of Management development
On the other hand the responses of line managers are quite different. According to Pauwee and
Williams (2001), their informal study showed that managers regard management development as
advertising. In their view they think that half of the amount invested in management
development is wasted. In addition they believe that MD is much more than theoretical
knowledge. It appears that line managers and many participants feel that the process of selection
for management development plans would be just as important as the actual tutorial. Selection
25

26. indicates to those who are selected that they are valued by the organisation, because it is willing
to spend and incur cost to develop them. It is also indicative of the fact that organisation is
forward thinking and they would be part of that future. It may also be considered as a benefit for
the services they have provided in the past. Management development also facilitates social
networking and in many cases a status symbol and help to career management.
Therefore cutting costs and limiting management development can have a very adverse and
undesirable impact even on the future of an organisation. It may indicate to the managers that
instead of cultivating its own internal workforce, the organisation will be looking At the external
market for managers and this may have an impact on organisational culture, motivation levels
and promotions, to name a few.
Therefore trick is to change the nature of management development programs and make them
more closely linked to the actual work of an organisation rather than cutting down the expense.
Therefore the trend is to closely link learning programs with organisational objectives, Pauwee
and Williams provide an example: ―whether the organization has enough good candidates to fill
vacancies that may arise. Also subsequent links to individual career moves are being tracked.”
Management Development and Transference to Practice
Management development as an instrument of HRD involves activities which are pre-planned.
They are designed to make changes ". . . and, as with all transformations, there is a core process
involved" (Burgoyne and Stuart, 1976, p. 5, cited in Belling et al., 2004). This indicates that
learning outcomes planned or unplanned and transfer material is part of it have to be set in the
framework of core learning processes, which formed them in the first place(Burgoyne and Stuart,
1976; Knowles et al., 1998 cited in Belling et al., 2004). These may appear to be confusing and
26

27. even complicated but are important when one considers what managers learn and put into
practice on their jobs. And from the perspective of an organisation one has to consider how they
can facilitate them (Rouillier and Goldstein, 1991 cited in Belling et al., 2004). Transfer has been
explained by Tannenbaum and Yuki (1992, p. 240 cited in Belling et al., 2004) as
". . . The extent to which trainees effectively apply the knowledge, skills and attitudes gained in a
training context back to the job".
Transfer is thus a process from a learning activity or program influence subsequent learning or
performance Marini and Genereux, (1995 cited in Belling et al., 2004). Though transference is
not quantifiable in terms of outcome which is usually implied, and it can be understood by
relating learning to the job context for an indefinite time period (Baldwin and Ford, 1988 cited in
Belling et al., 2004). The observations relating to learning transference range from pessimistic
when there is no transfer applied (Tannenbaum and Yukil, 1992; Haskell, 2001 cited in Belling
et al., 2004), to more positive views. These studies indicate that transfer process is not easy,
however by pointing out the things which either help or obstruct learning and its application,
hurdles can be dealt with at the same time beneficial factors can be optimised (Broad and
Newstrom, 1992 cited in Belling et al., 2004).
Previous studies have pointed out seven obstacles to transference from management
development to application in on job reality (Belling et al., 2004):
 Lack of peer support
 Lack of reinforcement back on the job,
 Time and work pressures,
27

28.  Lack of authority,
 Perceived irrelevance of the programme
 Lack of support from the organisation and
 Group resistance to training
 In the same way there are four supporting factors:
 Job/role aids,
 Reward;
 Support, particularly from supervisors and peers
 Opportunity to use learning
It should be pointed out that these obstacles and positive catalysts have not been evaluated
together, however essentially all researchers completely agree that these are the most important
barriers or supporters that exist. When transfer process is considered there are some issues which
affect each individual‘s transfer process experience these influences are: (Belling et al., 2004).
 Personality and behaviour of individual learner
 Workplace culture, environment and support system
 Different aspects of learning experience
It is usually assumed that all the trainees are influenced by the training in more or less the same
way, unless there is a criterion to differentiate the effects of these factors, like who is more
28

29. affected and how one person responds differently than another (Williams and Lillibridge, 1992
cited in Belling et al., 2004). Evidently organisational support cannot be targeted if it is not
known who needs help the most. (Knowles, 1998 cited in Belling et al., 2004).
Different characteristics which may influence transfer especially in the case of managers can be
grouped into a range of individual characteristics which may be involved in influencing transfer,
particularly in relation to managers, may be roughly grouped into Belling et al., (2004):
 Biographical and psychological essentials,
 Personality and
 Organisational elements, such as managerial experience and job satisfaction.
In case of elements relating to organisations, of which the one researched is social support
particularly in form of peer support (Huczynski and Lewis, 1980, Facteau, 1995 cited in Belling
et al., 2004). According to Belling et al., (2004):
When programs are designed and delivered effectively and participants acquire learning
outcomes as a result, those who do apply their learning are not restricted to any particular kind
of programme. All types of management and leadership development programmes, therefore, if
they are designed and delivered appropriately, have the potential to enable participants to learn
and transfer their learning back to their organisations.
Management Development and Role of Top Management
For management development to be successful it is important for top management to be
committed to it. According to Hall (1984):
29

30. Perhaps the most important factor in ensuring that MD is done strategically is the participation
of top management in the process. Because top management is the strategic level of the
organisation, and because top management represents the strategic business planners of the
organisation, they should also be the human resource planners. Top management should involve
in planning and executing MD” (p.176).
Purcell (1995) states:
―If top management does not support MD and if the financial control mode and short-term
investment criterion dominates, there would be a trend to drive out long-term MD investment
and destroy the basis of MD as a part of the corporate strategy” (cited in Bratton and Gold,
1999 p.50).
Schuler (1987) observes:
“Without top management support and commitment to MD the major focus of an organisation is
likely to be on activities other than MD. This is particularly true when the focus is on short-term
goals and immediate results, which allows too little time to wait for the benefits of MD” (p.396).
In a more recent study in Malaysia responsibility and support of leadership in management
development were emphasised Muhamad and Idris, 2005). At the same time the behaviour of
leadership with regards to management development can shape the level of participation from
HR managers, particularly in the strategy process (Devanna et al., 1984; Mumford, 1997).
30

31. Top management has to create an organisational culture which displays their ideologies and
management style which support their policies and limitations (Bratton and Gold, 1999; Hendry,
1995). Management development can be used as a way to show lower level management about
acceptable behaviour. Moreover organisations‘ leadership can create a culture and value system
which would support their strategies and control. Management development can be used by the
leadership to put forward their value system. According to Cisney:
Neither a formal nor informal approach will be effective unless a favorable climate for
development exists in the organization. The maximum development of the individual occurs on
the job through self-initiated activities.
Therefore the job situation must provide opportunity and stimulation for the development of
potentialities. The first essential of a favorable climate is active interest and participation on the
part of top management. Effective delegation of authority and responsibility throughout the line
organization is also necessary to permit the exercise of individual initiative. Challenging,
difficult, and varied work assignments are needed to extend the abilities and round out the
experience of the individual. These are some of the components of a climate which encourages
growth. Unless these ingredients are present or can be provided, there is little prospect for
success in management development. (2)
Conclusion
Management development as a branch of HRM reveals that it has a functional and structural
association with different branches on HRM (Maclagan, 1992; Shefy and Sadler-Smith, 2006;
Walton, 1999). According to Rodwell (1996)
31

32. “…if MD operates as an isolated, solitary activity that is not linked with other organisational
initiatives and policies, it often involves the so called „sheep dip‟ approach, where nothing else
happens to reinforce MD and often expectations about the outcomes it achieves are limited to
getting individuals to attend” (241).
Management development is an all-inclusive and holistic way to allow, guide and organise
learning strategies and policies within an organisation (Megginson et al., 1993; Walton, 1999).
This understanding is based on the assumption that management development is a business
operation , therefore it should not be considered to have outcomes just at individual levels
(Arthur, 1994; Burack et al. ,1997; Napier, 1996; Walton, 1999).
Chapter 3: Research Methods
Human resource management and human development is conducted within certain social
paradigms, the nature of human learning and subsequent performance cannot effectively be
narrowed within quantitative analysis, especially by a student with limited knowledge and
experience. Therefore there is a need to carry out research which is more interpretive in nature.
Within this paradigm interpretations are no absolute and answers are more indicative than fixed,
no matter how much information and facts one tries to gather it is not necessary that all the
information is exhaustive and in the real world just relying of facts limits the border of research.
Qualitative research is a branch of research methods where the role of the investigator is more
active compared to a quantitative survey (Muchinsky, 2003). Analysis is more related to
quantitative relationships while interpretation is linked to qualitative methods. Because of this
the process of interpreting data is not very clear-cut or explicit rather it quite vague (Patton,
32

33. 2002). This particular research considers management development as an instrument of HRD and
how effectively it is being used as in the case of Unilever. This chapter discusses the theoretical view
behind the choice of research and details the instruments used for this study.
Qualitative Research
Since 1970s qualitative research is being used because of its flexibility and viability in different
interdisciplinary areas (Taylor & Bogdan, 1998). Qualitative studies allow researchers to broaden
their scope of study and have deeper understanding of their research topics (Lee, et al., 1999).
Qualitative researchers are willing to go beyond the limiting parameters of quantitative analysis
and the researcher is more personally involved with the research. Rather than just be an objective
observer. In organizational management setting quantitative research is preferred, however
increasingly more academicians and researchers are adopting qualitative research to better
understand the interrelationships and outcomes which may not be possible through quantitative
studies (Spector, 2005). This qualitative research relies on case study of Unilever Corporation. The
next section discusses case study research.
Case Study
This particular research is a case study of Unilever Corporations one of the biggest FMCG
multinational corporations in the world, trying to understand how management development
influences the HRD process and whether MD activity is translated into any competitive
advantage or strategic gain for the company. Through case study researchers are able to
understand different complicated interactions and issues. Case studies usually focus on a limited
set of events and conditions and there interrelationships. According to Robert Yin (1984) case
33

34. study explores an occurrence within its real-life setting. In addition here several sets of evidence
are used and parameters between context and phenomenon are not very clearly defined. In terms
of reliability some criticize its limited focus and question how a few cases cannot lead to a
general finding. While others believe that case studies can only be used as exploratory studies.
However case study method is being used successfully in different areas including social
sciences and business research.
A major strong point of the case study method is that it entails use of several sources and practice
in the information collecting method. The investigator establishes beforehand what data to gather
and what examination method to use with the information to respond to the research questions.
Information gathered is typically mostly qualitative, as in this particular study but sometimes it
may also be quantitative. Instruments to gather information can comprise interviews, secondary
research or review of existing literature, observation, and gathering of physical objects. This
particular study relies on secondary research or existing literature on Unilever, specifically
related to HRD and MD. While a set of interviews carried out in Unilever China: Personal Care
Division were carried out in form of qualitative interviews of 10 managers and 2 of their
superiors.
Research Instruments
To make the study more reliable and relatively broader so as to understand the general
understanding of MD in Unilever in general and its personal care division in China in particular,
the researcher has chosen two instruments to achieve research objectives.
34

35. Secondary Research
This particular instrument is compilation and interpretation of data that has already been
collected. For secondary research it is important to know the source of any information. This has
to be properly cited in text and also credited in bibliography. Secondary analysis is considered by
these researchers to be different from systematic review or Meta analysis or qualitative studies
which aim to compile and understand information and analyse the information to reach a
conclusion. According to Popay, et al (1998, 335), secondary research is different from
systematic review because is carried out on specific type of studies, while secondary research
analysis of combination of qualitative and quantitative datasets. Secondary data can be defined as
all the information which may have been collected by different sources, researchers, government
agencies for a purpose which is quite different from the study being conducted by this researcher
for example.
Many academics have preferred growth of secondary analysis (Szabo and Strang 1997, Thorne
1994). They advocate that this technique can be utilised to generate new information,
propositions and additional confirmation of existing assumptions. It also lets researchers to
search for new areas for empirical research and helps researchers to collect information about
populations which may not be reachable without difficulty.
It also has been found that for those individuals who are students like this researcher, secondary
research is much more suitable method (Szabo and Strang 1997). Thorne (1994) is of the opinion
that secondary analysis is not as basic as supposed and that it cannot be carried out separately.
However this does not in any way stop use of primary data collection. Primary research is
needed in many instances to make the information become more convenient, that are within
certain limits.
35

36. Secondary research is practical because in primary research in both quantitative and qualitative
studies, information is most of the time reliant upon the classification and perception of target
population, pre-existing conditions and their answers, therefore secondary analysis is similar to
primary because at some level all the data and research whether primary or secondary is
dependent on a researchers‘ research skills and abilities to interpret information and critically
analyse information both secondary and primary on the researcher‘s understanding.
This researcher used a combination of on-line, academic and trade journals, company profile and
reports and some books to understand corporate philosophy generally and more specifically the
HRD process and MD initiatives in Unilever.
In-depth Interviews
Kvale (1996) has referred to interviews as ―favoured digging tool‖ in the area of social sciences.
Interviewing in organisational location as in the case of this particular research, a researcher just
needs oral report from concerned people to find out about their work and different
interrelationships and respondents perception about various aspects of their work and career.
Interviews can vary from structured to semi structured to unstructured interviews. They can also
be a combination of all three as a researcher works to find more detailed information about
respondents or their perceptions. In qualitative research interviewing is a flexible process. It‘s
not done in isolation therefore it‘s like in-depth interviewing (Taylor & Bogdan, 1998).
Therefore interviewing can be defined as face-to-face engagement which take place between
researchers and interviewees, so that the respondents‘ perspective and position on different
feature of their lives, interactions and dissimilar situations are articulated directly. Detailed
interviews are essentially discussions between two individuals without any prescribed question
answer format. Quantitative surveys have close-ended questions or multiple choice questions, in
36

37. qualitative approach the researcher acts as a research instrument because the analysis is carried
out by him or her. He or she also decides how to put forward and phrase a question to get
reliable information.
Interviews are preferred in qualitative research because of the degree of flexibility offered, as
each interview has its own pace and speed. An outsider may consider interview as a simple
uncomplicated exercise. However an interview is packed with different standards and
interpretations that may not be obvious. Each interview may have some general similarities,
there is the opening, where the interviewer gains entry and create the rapport and tone for what
follows. This is followed by the core of the process that consists of questions and the creation of
the probe. Finally, there is the conclusion, the wrap-up, where the interviewer and respondent
start a sense of closure. It is imperative to be conscious about who the respondent is and what
sort of questions will be inquired.
Standardized Open-Ended Interview
This is the most inflexible of all the interviews. The interviewer has to follow a rigorous
preset open-ended questionnaire. There is little or no flexibility in the wording or the order of the
questions. However in spite of fixed format and avoiding digression, it is still a qualitative
interview as the responses are open-ended. This method is the most controlled and effective of
the interviewing method, it is practical as it minimises partiality especially in the case of
inexperienced or less familiar of interviewers. This is also used when the purpose is to evaluate
individuals or their performance. This methodology is the best way if the interviewer has limited
time and financial constraints. The most important disadvantage is that the interviewer has no
37

38. space to satisfy the respondent and there is no guarantee that the questions posed can answer the
questions.
Planning in-depth interviews
Even though unstructured interviews are flexible, however it is important to plan and
organise the entire interviewing process, as it would lead to a more coherent execution and
objectives of the research are fulfilled. In this case the researcher is inexperienced and thus has
opted for standardised open-ended interviews and observations. Kvale (1996) below has listed
the seven stages of the basic framework of the research.
1. Thematizing In this particular study the detailed thematising has been
outlined in the first chapter which not only explains the purpose of the study but also lists
research objectives.
2. Designing For this instead of just relying on in-depth interviews the
student has used two instruments. In addition the question1
3. Interviewing In this case the researcher has also taken into account
attitude of the respondents and acted as an interviewer and an observer
4. Transcribing Since the interviews were carried out in Mandarin in China,
the details of the interview are directly discussed in chapter 5.
5. Analyzing a more standardised approach was taken by this writer.
Moreover, the researcher acted more as an interpreter than an analyst as the responses
and observations were inferences.
1
See Appendix II.
38

39. 6. Verifying In this case the notes were discussed with the respondents to
make sure that the interviewer‘s interpretations of the participant‘s response was correct
and to keep the researcher‘s bias to the minimum
7. Reporting The researcher tried to minimise personal bias while reporting
the interviews.
Over a period of three weeks this researcher interviewed 10middle managers and 2 of their
superiors in the Personal Care Division of Unilever China in Shanghai. Each interview was on
one-on-one basis and the researcher tried to keep her own personal bias at the minimum taking
noted and making observations.
Reliability
According to Stenbacka, (2001):
“The concept of reliability is even misleading in qualitative research. If a
qualitative study is discussed with reliability as a criterion, the consequence is
rather that the study is no good” (p. 552)
Personal in-depth interviews are based on the responses of the interviewees. And there is always
a possibility that the respondents‘ personal understanding might spoil the consistency of the
responses, keeping in mind the world-wide economic downturn and its impact on multinational
corporations and their employees. In addition personal bias of the interviewer might have come
into play but were unintended. In addition because of distance interviews were conducted
partially through telephonic conversations, consequently the impact of face-to face interviews
was reduced.
39

40. Validity
Validity in qualitative is not a specific criterion. According to Winters 2000:
―Rather a contingent construct, inescapably grounded in the processes and
intentions of particular research methodologies and projects” (p.1).
As a result soundness of the dissertation principally depends on reliability of this researcher, her
reputation and circumstances within which the responses are interpreted. In this research,
through the entire planning, interviewing and compiling process, the interview has made it a
point to minimise any kind of issues which may jeopardise the validity of the report.
Ethical Issues
In order to keep this research morally acceptable, I made sure that the interviewees were
prepared and willing to be part of the research and consent was taken from the employers, in
addition they participated in their free time. In addition all the interviewees‘ names were
unspecified so that they can avoid any unfairness because of their responses. This interviewer
has also taken an undertaking that she will only reveal the details about their skill and the
organisation itself to the degree that they have approved.
40

41. Chapter 4: Unilever HRD and MD
Strategy---A Review of Literature
Unilever Corporation was formed in 1930 by the merger of a Dutch margarine company and
Lever Brothers, a British soap manufacturer. Today it is one of the largest fast moving goods
manufacturing concern with a presence in 150 different countries across the globe. Its most
famous brands include Dove, Rexona, Lipton and Knorr to name a few. It has 174,000
employees as of 2007 (Data Monitor, 2009).
Human Resource development and motivation is increasingly essential for global corporations.
In the case of Unilever it has positively measured behavioural resources for being successful in
the international competitive atmosphere; it has developed the skill model, the ―Leadership for
Growth Profile" (LGP), which has been executed worldwide. It has also shown that it works
locally in different regional markets, as a multi-local multinational company. One chief factor of
its HR policy is ‗Building an Enterprise Culture‘ which supports employees to have positive
outlook using their attitude, enthusiasm, and inspiration. This culture is formed through a
restructuring process, management development performance management, training and an
effective reward system (Human Resource Management International Digest, 2002). The recent
HR strategy and subsequent MD strategy can be divided into 2 phases the first is from 1999-
2005 Path to Growth Strategy. While the second phase is outsourcing of HR functions to
Accenture to achieve more synergies. This Chapter looks at both phases of HR strategy in
Unilever though there is limited information on the One Unilever strategy available in existing
literature because this chapter needed focus on Unilever‘s HRD and MD function material
available was limited.
41

42. Management Development Philosophy in Unilever
There were two main objectives for management development: First to ensure growth of future
leaders internally, secondly to develop employees so that they can reach their full potential. In
this case management development was not just making people move up the corporate ladder,
rather it is to develop and cultivate expertise in a certain field. The organization indicated that
the employees are very valuable and through putting themselves through rigorous training they
were willing to learn and were aware of new development. In addition cultivating future leaders
meant the organization was willing to invest in its employees for long term rather than just
recruiting new managers from outside. According to the Unilever philosophy a ―one-sided‖
focus on the client and discounting the role of employees as major stakeholders will not lead to
growth in the organization in terms of performance growth, and in the long run might impact
consumers negatively too. When employees have the opportunity to develop themselves to their
potential with consumer-oriented clear objectives then an organization is able to achieve strategic
objectives.
Changes in Unilever’s HR Strategy and its MD Function 1999-
2005 Path to Growth Strategy2
The changes which occurred in 1999and the human resource experienced a restructuring of
philosophy. In addition to the previous HR practices new one was introduced which were aimed
2
This section is based upon Reitsma, (2001)
42

43. at improving employee performance and providing an agenda for skill and ability development.
All these systems were introduced globally. This is detailed in figure 1.
Figure 1: Conflicting Objectives of Management Development (Reitsma, 2001).
The figure reflects changes in Unilever‘s corporate strategy and its corresponding HR strategy
following are some of the changes that occurred are (Reitsma, 2001):
43

44.  The organisational structure of organization changed and became, flatter, and the
difference between each level was the degree of responsibility and decision-making
power of the employee. Moving from one level to next would be an important move.
And a real change for the managers. In addition the decision to evaluate performance
before moving the managers upwards was critical, with the superiors relying on more
objective performance outcomes.
 An analysis of different fields like marketing or finance etc. led the organization to create
a framework for career growth patterns. This was done for training and also for the
managers to plan their own development process so that it worked with the work level
system. This encouraged professionalism and also created learning opportunities rather
than just jumping from one level to another.
 A competencies dictionary was created which helped in performance evaluation, training
choices and assessments.
 Those managers who showed consistent high performance and also those who displayed
consistency in their performance were offered remuneration. This system in addition to
the work level system allowed managers to work at the same level with additional perks
and salaries, and were allowed to develop their skills without influencing their salaries.
 Target setting and target management became central to HR practices and the HR
strategy‘s focus became more goals oriented. This was carried out at all managerial
levels. And this limited practice which in the past was restricted to senior management
was applied throughout the organization.
 Giving importance to individual employee and his or her wishes in terms of his or her
personal growth, and the appraisal system changed from a backward-looking system to a
44

45. more looking ahead system. And would have eventually led to more discussion oriented
appraisals rather than a grading system.
 Unilever wanted its employees to take active part in their development within the
organization and according to Reitsma (2001) needed complete transparency in the
practice of assessment and criteria used to evaluate employees.
Unilever’s Management Development System
Following are some of the factors which made Unilever‘s management development system a
success:
Joint ownership by corporation and employee: it is generally accepted that MD is a business
activity, however in the case of Unilever; the responsibility is shared by the organisation and
individual worker. It is important to note that each individual is unique with different talents,
limitations and preferences, therefore with an individual‘s input these factors also become part of
the MD process. A paternalistic philosophy would not be helpful as it would not empower the
managers. The new empowering paradigm forced the corporation to give managers the tools to
improve their learning and understand. And to make sure that the system is able to incorporate
personal development plans formed by the employees. Secondly the responsibility of MD is not
just the job of HR personnel; rather it is part of the overall corporate strategy of Unilever with
the executive board and chairman being part of the process. Thus it is the overall organization
which provided the MD system and also helped in bring out managers with promise, decided on
training, and placement and kept the employees informed about the overall corporate goals. In
45

46. addition the managers were always in the loop about their own position within the organization
and he or she was honest about his/her desires and expectations.
MD principles applied to all: all managers had combined roles in their jobs:
 They were responsible for their subordinates who reported to them
 They were responsible to take steps for their own development.
 Their bosses in turn supported them in their own development
As a result everybody had to follow the system as it was in the general interest of the managers
to adhere to it. This was an interlinked system which became more efficient as it gained speed.
Identification of potential high performance employees at all levels: identification of
leadership and other talents should not be done at senior management levels. At Unilever it starts
at recruitment level, from which point individual hopes are discussed and assessment of the
employee‘s performance are made. This provides the employee an ideal position to start his or
her career. At each level different managers and players change although the principles remain
the same from bottom till top. This system gives more opportunity to spot talent at the earliest
possible level, either for a specialised career or for a general career. As a result throughout an
employee‘s career targeted development takes place based on the overall assessment and the
needs and wishes of the manager, inducing him or her to reach their potential. In MD two major
players are involved, the direct superior who knows the manager and managers who are two
levels up. Senior management at this level are there to ensure a certain level of consistency is
present within one SBU but also between different operating units within a group or even at
46

47. international level. They are especially important in the case of international transfers, as they
have the information and are in a position to assign tasks.
Keeping overall interest of the Corporation over an operating company: for building one‘s
career there is a need to develop individuals in such a manner that they have exposure to
different environments and processes, this builds in managers a depth which helps them cope
with different situations, and at the same time having an in-depth view of a core function. This
means that individual employees go through lateral transfers and work in several different
operations in their career, this is an overall loss for the operating company in the short run,
however, in the long run it benefits the individual and the company as he or she may return at a
senior post to the same operating unit in future and bring along a reservoir of experience which
would not have been possible in the absence of lateral transfers through MD.
One system: since Unilever is enormous even by multinational standards, therefore,
management development in 90 different countries and across continents with international
transfers, the system is centralised, with a set of operating principles which guide the MD policy
globally. Therefore the entire system is seamless.
MD and its integration with pay- system: management development and performance
development of managers at Unilever is integrated with the remuneration package. Unilever is
very vocal in its preference for steep careers, which includes sustained high performance. And
high performance is reciprocated with a package which reflects the expectations of the
organisation.
Transparency: a system which is designed in such a way that encourages high degree of
involvement from managers has to be transparent to be effective. Transparency works both ways
47

48. as on one hand a manager needs to know what the organisation thinks about him and his
potential as a future leader, at the same the organisation should also know about the views and
wishes of its managers. As a result positive synergies can help them to be realistic about their
goals.
Application of Management Development System
The above principles are important but there are some underlying major causes which need to be
understood.
Successful Career Building
A successful career of any kind is based on consistently high performance, not just displaying
high potential. It is based on:
Professional ability: Unilever has created dictionary for 10 professions, these include,
research and development, finance, HR, marketing etc. Different fields require different skills.
Through these dictionaries job skills profiles are created, which help in matching individual
performance with what job expectations are. This ensures transparency and avoids confusion.
And it can be carried out by the individuals themselves, which shows how strong the tool is.
Competencies: professional abilities describe what the managers need to do while competencies
describe how it is done. The organisation has recognised a set of principles which are linked to
exceptional performance. Competencies can be cultivated and Unilever has provided its
managers with a instructions which helps them with different competencies. These dictionaries
can be applied globally and can even be accessed through the intranet. This allows managers to
develop their own skills.
48

49. Experience: it is important for the managers to acquire skills and experience on different aspects
of work, and understand and can deal with a variety of random situations.
Performance development planning (PDP)
Performance development planning forms the very core of management development system.
Once a year at least, a manager discusses issues with his or her superior, which goes beyond
standard performance appraisal. This planning and discussion leads to an individual‘s
performance and sets precedence for future development. The outcomes are then discussed and
noted down.
Target setting and review: target setting is done for each individual manager, as these give
focus to the activities that a manager carries out and the objectives that he or she sets. Targets
are some priorities what are to be achieved within the regular job. Instead of end-goals they are
some dos of a job. Usually target setting and reviews occur at the start of a year.
Performance Review: this is similar to performance appraisal, as it reviews last year‘s
performance and how it was achieved. In this review different areas of acitivity and behaviour
are reviewed and those areas where skills and competencies are needed are pointed out. There
are no performance categories; instead there is a discussion about realistic progress and what to
do in future, rather than discussing the past.
Skills and competencies development plan: based on the above review a small number of
competencies are identified which need to be improved in a period of a year to eighteen months.
Usually about three to four areas are chosen. With this approach specific actions have to be
defined through which performance can be improved. Training is not the only option, other
49

50. actions could be to join a project where certain ability or competency is needed and even
mentoring and coaching is discussed with peers and seniors. Throughout the period reviews are
done periodically to make sure that the development is taking place according to the plan. While
planning three things are kept in mind:
 Manager‘s potential: individual manager‘s potential is measured in terms of professional
skills acquired and competencies of the manager.
 Experience: the broader the experience of the manager the higher the potential he or she
has. And the better the competency to deal with different concurrent situations.
 Manager‘s own wishes: are crucial for the PDP system and a clear and open discussion
are needed and views are noted so that they don‘t get lost. His or her input allows the
organisation to choose the right option for the individual.
Unilever’s viewpoint: this part of PDP needs input of the organisation and how it views a
manager‘s future place in the organisation. This is important because through this managers
build realistic expectations about their role in the organisation. This is not secret; rather it is
discussed with the individual. If the individual‘s goals are not in-line with the organisation‘s
view then he or she may leave the corporation. Some of the managers have to stay in one
position for a long time so that they can refine their learning; the role though is not stagnant as it
evolves as the manager works on different cross-functional roles. In addition international
transfers mean additional exposure and opportunities to build skills and competencies. Therefore
a three-four year period offers an ideal time to learn the most and deal with the consequences of
one‘s actions.
50

51. The human resource planning meetings (HRPMs): After PDP discussion a human resource
planning meeting takes place between different heads where internal operating company issues
are taken into account. Succession planning and organisational plans are created and career plans
are reviewed for each business group especially for managers who are short listed as high
potential. These discussions at business group level ensured that individual development was
aligned with the overall corporate strategy.
One Unilever Strategy 2005-Present: Outsourcing of HR
Functions
The Path to Growth strategy completed its 5 year term in 2005. After 2005, the organisation
became even leaner considering the global environment. It decided to outsource its HR
management function. In the One Unilever Strategy, a major feature has been to give the
employees necessary skills to ensure a successful business strategy. Unilever has invested in
HRD and learning with the help of Accenture, the organisation has come up with a universal
program for ―General Management and Leadership Skills‖ which also offers e-learning. This
capability has led to a new framework called ―Standards of Leadership‖. The program ensures
that each individual manager takes the duty for overall corporate strategy. Unilever thus is
developing successful leaders (Human Resource Management International Digest, 2009).
According to Bohmer, (2009) Unilever has become: Leaner, more effective organization, able to
deliver products to market quickerHigh HR data quality to serve as the fundament for spot on
business decisions , cost management, cost reduction In the past roles were generalized, now HR
has specialized roles: HR BusinessPartners, HR Expertise Teams and HR Shared Services.
Figure 2 shows how HR strategy has been transformed:
51

52. HR BP role in the Operating Framework
HR as it is now
HR as it was
5% HR TRANSFORMATION  Strategy 20 %
Strategy
 Performance
Performance Enhancement
Enhancement 55%
25%
 Transactions
15%
Transactions 30%
 Admin 5%
Administration 40 %
HR Transformation
HR vision: “To be leaders
in how people drive business
performance”
Figure 2: HR BP Process Role in the Operating Frame Work (Bohmer, 2009)
52

53. At present learning is a centralised process, there is a central group of providers, who deliver
different trainings, including, general, professional and leadership, both at plants and at various
head offices world-wide. The most enthusiastic of staff take training activities within the firm.
In the past there was a combination of in-house and professional development activities, but with
the new deal with Accenture, the business process outsourcing activity meant that Unilever,
which could produce its own economies of scale doing HRD in house now sought to concentrate
on its core marketing and selling its brand as it outsourced the non-value adding activities to
Accenture. According to this action, short-term transactional activities like training delivery and
training design were outsourced to Accenture, while strategic and transformational activities like
learning needs analysis, professional-skills training and most leadership and team development
were still part of Unilever‘s HRD (Human Resource Management International Digest, 2009).
The roles out-sourced are (Bohmer, 2009):
 Core HR
 Payroll
 Resourcing
 Suppliers & Vendors
 Learning
 In-sourced Service
 E-Reward
At this point according to Human Resource Management International Digest (2009), the
organisation understands the need to have intense interaction between internal and external HRD
functions. Regular meetings take place that form the basis for a successful training relationship
which has be outsourced. At the same time Unilever has an overarching framework and
53

54. guidelines to standardise and control Accenture programs at local, regional and global levels. At
the same time Accenture is not to be regarded as the training centre. The objective is to
differentiate between internal and external development functions. At the same time it is not
clear how training and development programs are assessed in terms of their value to the overall
business strategy, especially the role of Accenture staff. This will become more evident in future
(Human Resource Management International Digest, 2009). Figure 3 shows the integration of
tasks between Unilever and Accenture HR teams:
Service Relationship Model:
Service Mgmt roles fit with HR leadership
Unilever Accenture „Unilever Team‟
VP Global HR Service Delivery Global Account Director
Geographical Service Delivery Regional Account Directors
Directors
Service Delivery Manager Country/Cluster
Country/Cluster Account Director
Global HR Service Performance NN
Director
54