Organisation Behaviour/ Humar Resource Management of Hindustan Unilever Limited

1. ORGANIZATIONAL BEHAVIOUR
HINDUSTAN UNILEVER LIMITED

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3. COMPANY DESCRIPTION
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer
Goods Company with a heritage of over 80 years in India and touches the
lives of two out of three Indians.
With over 35 brands spanning 20 distinct categories such as soaps,
detergents, shampoos, skin care, toothpastes, deodorants, cosmetics,
tea, coffee, packaged foods, ice cream, and water purifiers, the
Company is a part of the everyday life of millions of consumers across
India. Its portfolio includes leading household brands such as Lux,
Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakme,
Dove, Clinic Plus, Sunsilk, Pepsodent, Close up, Axe, Brooke Bond, Bru,
Knorr, Kissan, Kwality Wall’s and Pure it.
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4. PRODUCTS
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5. COMPANY DESCRIPTION
 Unilever's mission is to “Add Vitality to life.” HUL works to create a better
future every day and helps people feel good, look good and get more out of
life with brands and services that are good for them and good for others.
 The Company has over 16,000 employees and has an annual turnover of INR
30,170 crores (financial year 2014 – 15). HUL is a subsidiary of Unilever, one
of the world’s leading suppliers of fast moving consumer goods with strong
local roots in more than 100 countries across the globe with annual sales of
€48.4 billion in 2014. Unilever has 67.25% shareholding in HUL. The products
are manufactured in over 37 factories across India. The operations involve
over 2,000 suppliers and associates. HUL's distribution network comprises of
about 2,500 redistribution stockists, covering 6.3 million retail outlets
reaching the entire urban population, and about 250 million rural
consumers.
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6. ORGANIZATIONAL BEHAVIOUR
Organizational Behaviour is the study of human behaviour in
organizational settings, the interface between human behaviour and the
organization, and the organization itself. It describes the norms and
values of the organisation in its dealings with both internal and external
subordinates.
A Company focuses on enhancing and empowering its employee, this is so
because it considers employee as its most valuable asset.
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7. IMPORTANCE
Motivated employee are often the engine drive in moving an organisation forward, the
Company often organise its employee into teams in carrying out there operations. This
makes the employee feel valuable within the team by contributing different ideas on
proposed operations at the same time by being innovative.
The company by this strategy creates a friendly and innovative culture, which makes it
possible for the company to depend on its workforce in maintaining it brand reputation.
Furthermore, trust is being established as part of its culture. Customers put their trust
on the company to provide good quality product and high level of attention to customer’s
needs and so the employee’s trust their voice will be heard and their various
contributions are being valued.
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8. DIRECTOR
FINANCE
DIRECTOR
MARKETING
DIRECTOR
EXPORTS
DIRECTOR
RESEARCH
DIRECTOR
HR
TECHNICAL
DIRECTOR
LEGAL
DIRECTOR
BEVERAGES
DIRECTOR
PERSONAL
PRODUCTS
DIRECTOR
ICFD
DIRECTOR
DETERGENTS
CHAIRMAN
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9.  In 2002, HUL switched to an open job posting (OJP) system after the failure of a
forced rank system of evaluating people for all its businesses which was
accentuating the insecurities inside the minds of employees as managers relied on
short-term recourses to deliver quarterly profit and sales numbers.
 All new jobs were advertised on the intranet. Any employee who met the criteria
could apply. HUL also started a new personal development plan (PDP), where each
manager was evaluated on a set of 12 competencies. The superior was expected to
discuss the assessment with each person.
 In the early 2000s, HUL extended the reach of its products through a new channel,
the HUL Network to leverage the power of direct selling. The company targeted a
turnover of Rs. 500 crores and planned to have a million consultants working for it
by 2016.
LEADERSHIP
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10. DIVERSITY
 Diversity at Unilever is about inclusion, embracing differences, creating possibilities and
growing together for better business performance. Unilever is committed to becoming a
truly diverse and inclusive company.
 To deliver these business goals, it is vital that Unilever have people with the right talent,
skills and creativity. Unilever believe that having a gender-balanced, engaged workforce
that reflects our consumer base is a critical element of our long-term growth strategy.
 Creating an inclusive environment that enables all individuals to perform to their full
potential, irrespective of who they are, will help them win equitably and sustainably.
 They embrace diversity in workforce. This means giving full and fair consideration to all
applicants and continuing development of all employees regardless of gender, nationality,
race, creed, disability, style or sexuality.
 Their commitment is set out in Unilever Code of Business Principles.
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11. WORK LIFE BALANCE
HUL offers associate training and workshops on time management; provide flexible work
arrangements in many areas of our business; and provide tools and resources to allow work to
be done efficiently and effectively in a normal workday.
Open communication channels provide the means to support a culture based on relationships.
It has a number of communication channels, including:
▫ monthly leadership and weekly department team meeting (involving function heads)
▫ monthly employee team briefing sessions
▫ consultative employee groups for each region
▫ Surveys to monitor employee views and feelings.
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12. ORGANIZATION CULTURE
All Unilever employees are expected to avoid personal activities and financial
interests which could conflict with their responsibilities to the company. Unilever
employees must not seek gain for themselves or others through misuse of their
positions.
Compliance–Monitoring–Reporting
The Unilever Board is responsible for ensuring information is communicated to,
and understood and observed by, all employees.
Day-to-day responsibility is delegated to the senior management of the regions and
operating companies. Storytelling method is suggested for approaching employees
and suppliers, and engaged with them emotionally. They are responsible for
implementing these principles, if necessary through more detailed guidance
tailored to local needs.
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13. Target Group Formal communication Informal Communication
Employees News release, large group
meetings, employee
newsletter articles,
Management training session,
managers meeting, Intranet,
printed publication such as
posters or bookmarks with the
new corporate culture image or
texts, hotline service that can be
accessed from all around the
world.
Small group meeting and one-
on one meeting, ‘Ask The
Management' session on the
Intranet, party or picnic,
approach by management,
informal Q&A sessions,
group(or per department) e-
mails.
Suppliers News release, large group
meeting, suppliers’
newsletter to home, hotline
service that can be accessed
from all around the world.
Small group meeting and one-
on one meeting, management
visit, informal Q&A sessions,
gathering or lunch party
for suppliers in each area where
they can exchange ideas or
ask questions.
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14. MOTIVATION
It is always important to motivate employees so they remain optimistic and can
perform better under unfavourable conditions too. For encouraging their employee
Hindustan Unilever conducts different project and programs time to time. Some of
them are as follows:
 Project Millennium
Chairman Keki Dadiseth launched Project Millennium in the late 1990s. Teams
of young, talented managers were formed to explore and suggest ways to generate
growth. Project millennium also aimed at promoting lateral thinking and innovation
instead of being dictated only by the rules and systems, HUL was famous for. At
the heart of Project Millennium was human resources.
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15.  Sankalp
Hindustan Unilever Ltd (HUL) started on an employee self actualisation journey, a
platform with multiple volunteering opportunities on various social issues and
involved its 14,000 employees across 40 locations in October 2013. A year later the
company has exceeded what then looked like an ambitious target of contributing
27,375 hours or one hour per day of community service for the 75 years that the
company has been in India.
• The Vitality Index
At the heart of the new HUL initiative is a vitality index - the measurement of the
personal vitality of every individual employee. It is based on four parameters -
blood pressure, blood cholesterol, the Body Mass Index (BMI), and blood sugar.
They are providing employees the encouragement and the necessary tools to
change unhealthy lifestyles before these transform into chronic diseases
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16. TRAINING
Managers at Unilever formed learning groups that helped them strengthen
their leadership abilities by exchanging frank feedback and developing
strong mutual trust. Arising from the focus in driving a holistic capability
program, over 300 training programs were delivered through classrooms.
World saw a significant amount of sharing of Unilever best practices in
building functional expertise through Global Learning Academies. Unilever
introduced an “e-learning” platform which offers a bouquet of 3000
courses on a self learning mode via computer and internet. The
employees need to be given bigger and challenging roles to strengthen the
environment for personal growth. In HUL, employees change roles in
every 2-2.5 years. Different learning programs help the employee in
developing multidimensional personality.
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17. Activity Description
Familarization Get familiar with the company's Sales System, Branch
Structure and Brand Portfolio.
Sales Stint Experience a firsthand contact with the trade to get a grip
of market dynamics and understand the role of an Area
Sales Manager
Brand
Management
Imbibe the Unilever principles of Brand Management,
understand the role of a Brand Manager and
develop brand strategy.
Business Projects A cross-functional team project which shall be worked out
with every Business Management Committee and evaluated
by the Management Committee at the end of the stipulated
9 week period
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18. Activity Description
International
Stint
Complete a project in your core functional area in another
country within duration of 8 to 12 weeks. The objective is
to help you build relevant skills in your core functional area
with a global perspective and transfer your learning’s to an
Indian context.
Rural Consumer
Stint
In addition to the primary aim of community service, the
objective of the four-week stint at an NGO is to give you
an understanding of the Rural Consumer.
Business
Orientation
Programme
An 11-day program that mainly consists of classroom
sessions at in-house Training Centers to provide a clearer
understanding of key business processes and practices.
Factory Stint Get familiar with the production process, commercial
function payments and factory working capital control
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19. NETWORK BUILDING WITH ALUMNI:
THE ALUMNI PORTAL
India’s largest fast-moving consumer goods company has found a new way
of keeping in touch with its employees — present and former. HUL has
built its own community site for networking with its alumni. The website
gives a formal structure to do things that employees were already doing —
networking with other Leverites. The company realised that even though
people had moved on, their interest in the company remained. So far, of
the 2,500 people that the company contacted, 1200 have already
registered. Some 470 of them are management board representatives
from diverse sectors like telecom, IT service, retail, and banking and, of
course, FMCG.
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20. REWARDS
Unilever are building a winning culture, in which every employee is encouraged to grow to his
or her full potential. They have developed a performance-based reward structure that
recognises people have delivered results and have the right values for business. Their goal is to
deliver Unilever's promise to consumers and the They don't just encourage employees to give
feedback but have developed leading-edge tools to help them hear clearly how reward feels
from the point of view of our people. It includes:
• Total reward statement
• Rate my reward
• Reward development plan
• Incentives
Their goal is to deliver Unilever's promise to consumers and the world through a pioneering
employment experience that their competitors wish they had.
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21. CORPORATE RESPONSIBILITY
In the earlier years, HUL continued to involve itself in social welfare initiatives
across the Country, both through charity and social investment around issues like
education, health, nutrition and initiatives for the economic upliftment of the
underprivileged.
• HUL has commenced a pilot in its tea business, in partnership with an NGO
(Partners in Change) to source tea directly from small producers and thereby
improve their livelihood.
• Project Shakti which enlisted under privileged rural women as direct-to-home
distributors. Not only did this initiative provide sustainable income opportunities,
but it also extended HUL’s rural reach to another 100 million consumers in over
100,000 villages.
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22. • The effort of the Company in improving water availability through soil
conservation and water harvesting methods has borne good results.
▫ In the Parkhed region (near Khamgaon factory), HUL has been
successful in demonstrating the effectiveness of the model which is
now ready for roll out.
▫ In Kharchond, Silvassa the area under irrigation has increased, thereby
improving the economic condition of the villagers in the region.
The Company believes that brands must be at the forefront of driving
social change. The extension of the Lifebuoy Swasthya Chetna programme
to 43000 villages with a view to improve hygiene standards and thereby
reduce the risks of infant mortality through diarrhoea.
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23. CONCLUSION
• Hindustan Unilever Limited by this strategy creates a friendly and innovative
culture, which makes it
possible for the company to depend on its workforce in maintaining it brand
reputation.
• Creating an inclusive environment that enables all individuals to perform to their
full potential, irrespective of who they are, helps them win equitably and
sustainably.
• Trust is at the heart of every relationship, whether it be:
▫ customers' and consumers' trust that the Company will provide the highest level
of service and attention to their needs.
▫ Employees' trust that their contribution is being valued in an open culture.
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24. THANKS
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