Strategic Human Resources Management: Evaluation of Internal and External Influences on HR Function of Unilever

This report evaluates the internal and external factors that influence the strategic HRM practices within Unilever. It discusses the aim, scope, and purpose of strategic workforce planning, major strategic and operational considerations, and appropriate theories and concepts linking to the growth of strategic HRM.

Strategic Human Resources
Management

CONTENTS
INTRODUCTION......................................................................................................................1
PART – 1....................................................................................................................................1
Aim, scope and purpose of the strategic workforce plan.......................................................1
Evaluation of the key internal and external influences on the HR function of the Unilever. 2
Analysis of major strategic as well as operational considerations.........................................4
Application of appropriate theories and concepts linking to the growth of strategic HRM...5
PART – 2....................................................................................................................................6
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................8

INTRODUCTION
Human resource management is being referred as the tool which is being utilized by
the firms for the purpose of managing their human resource effectively and emphasize on the
objectives of the organization through empowering workforce of the firm. Further, strategic
management is the approach to undertake useful decisions for implementation of activities
successfully. Thus, strategic human resource management is defined as a tool through which
performance of the firm can be improved by effectively managing the employees subsequent
to the evaluation of numerous factors (Hossain and Hasan, 2016). Based on this, the main aim
of the current research report is to discuss the factors and actions that directly influences the
strategic HRM practices within a selected company that Unilever. It is one of the leading
FMCG company of UK having business in varied parts of the world. The report will evaluate
the internal and external factors and trends which impacts the HR and organizational strategy
and will apply suitable theories and concepts.
PART – 1
Aim, scope and purpose of the strategic workforce plan
Speaking in volume in relation with the strategic workforce planning, it is being
developed through designing a procedure within the firm that proactively anticipates current
as well as future hiring requirements. This will also make sure that the firm has the resources
required for meeting the goals of the business. seeking help from the finance, input from the
human resource and procurement team information and business analytics, strategic
workforce plan can be created which fulfilled the pre-determined long-term objective of the
company and also helps in maintaining the long-term success (Ferguson and Reio, 2017). The
main aim and scope of strategic workforce plan is nothing but steady analysis of the
employees and their performance level preventing the business from being surprise by the
ever-changing requirements of the workforce. In addition to this, the main goal of the
strategic workforce plan is to have right people at the right job at the right time. This can take
place through understanding the present capabilities of the employees, planning for the future
scenarios and identifying the anticipated employees and finally, undertaking steps for
aligning the future staff with the desired staff. Strategic workforce plan helps the firm in
building a competitive edge in the market for the Unilever. Additionally, there are recent
trends and developments that impacts the strategic workforce plan within the company and
one of the most important trends among them is globalization. It is important on the part of
the organization to evaluate the global areas where they can expand. The globalized business
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can result in higher level of growth. Further, workforce diversity is also an important
development in the present times where people of different backgrounds and cultures come
together to fulfil the aim of the company. Thus, it is crucial for the Unilever to develop
strategies for attracting diversified employees towards them.
Evaluation of the key internal and external influences on the HR function of the Unilever
The performance and growth of the organization is very much dependent on the
varied factors in which environment of the firm has a crucial role to play. It is important for
Unilever to evaluate potential changes through evaluating internal and external factors that
might have some or the other influences on the human resource function of the organization.
below if the evaluation of certain internal and external influences through application of
different tools and models:
Internal influences (SWOT analysis)
 Strengths – It is leader in the market and operates in the global market with huge size.
Effective management of team (Buller and McEvoy, 2017). Further, it has skilled and
experienced workforce.
 Weaknesses – some of the weaknesses of the company includes segmentation and
extension of brand, increased prices of the product and ineffective approaches and
policies of the management.
 Opportunities – There are different opportunities which can be availed such as
utilization of social media, expansion in the other markets, extension of product width
and length and lunching new product (Deery and Jago, 2015).
 Threats – Some of the threats include market competition, technological development
and fluctuation in the economic conditions.
From the application of SWOT analysis, it has been found out that there are different internal
factors that might impacts the HR function of Unilever and these are:
 Employee relationship – It is important on the part of the HR manager to essentially
manage the employee relationship within the company for attaining the desired level
of performance. If there is not cordial and effective association amid the teams and
worker’s than this might have a severe influence on the business policies and
practices of human resource function (Alexander and Doherty, 2018).
 Internal policies – It has been further evaluated that Unilever’s internal policies and
practices have great impact on the HR function. For example, workforce diversity is
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the major internal policy of the company than the human resource department has to
alter their recruitment strategy and must hire diversified employee as per the policy.
 Structure and culture of the organization – The culture and structure also have a
significant impact on the HR function if Unilever. For example, since the company is
very large and they follow bureaucratic culture, the HR policies and practices will be
process oriented. Further, matric organizational structure is followed in Unilever
which signifies that the HR policies will be less structured.
External influences (PESTLE analysis)
 Political – Some of the political factors that might impact the company includes strict
trade reforms by trump government, local and regional laws and restrictions regarding
import and export.
 Economic – There are different economic factors which poses great influence on the
operations of the firm like fluctuations in the currency market, currency influence of
Brexit and mercy of inflation and consumer whims (price, 2017)
 Social – Increasing demand of premium skin care products can impact the firm.
 Technological – Technological factors like execution of integrated supply chain and
leveraging people data centres for comprehending the consumer behaviour is very
crucial to consider.
 Legal – Some of the legal factors that might impact the company includes alteration in
the laws and taxes and regulatory approvals delay the growth of the company (Kolios
and Read, 2017).
 Environmental – Some of the environmental factors might that impact the company
includes sustainable and renewable resources and eco-friendly packaging.
From the application of PESTLE analysis, it has been found out that there are different
internal factors that might impacts the HR function of Unilever and these are:
 Influence of legislation – The laws and regulations of a particular nation impacts the
HR function of the company. For example, the laws regarding the health and safety of
the employees must be consider by the HR department while framing policies and
workforce plans (Guest, 2017).
 Impact of competition on recruitment – There has been rise in the level of competition
and thus, it is essential on the part of Unilever to attract skilled pool of employees for
competing effectively in the market by adopting effective HR strategies.
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 Economic changes – Due to increased rate of unemployment and economic recession
because of covid19 pandemic, Unilever is still suffering in context of talent
acquisition, development and management.
Analysis of major strategic as well as operational considerations
There are different strategic as well as operational considerations that needs to be
evaluated by Unilever. It is important to evaluate these considerations as they can indirectly
or directly influences the human resource strategy of the company. Further, Unilever should
emphasize on strategic and operational consideration for having necessary alteration in the
functions along with the operations of the business (Dirisu, Iyiola and Ibidunni, 2018). some
of these considerations are as follows:
 Cost – It is being regarded as one of the most important elements to be taken in to
account while evaluating the requirements of staffing of the Unilever. There are
different departments such as warehousing, customer service and production which
needs skilled as well as capable workers. It is significant that management can reduce
the base pay for extending the staffing budget. Voluntary assistances would not cost
much however helps in reducing the payroll expenses and provides lower ley
advantages to the workers.
 Workforce diversity – It is being defined as the process where people belonging to
different cultural background, age, religion, language, disabilities and colour work at
same place in a collaborate way. It is important on the part of Unilever to develop
such strategies that attracts diversified employees towards them. through this,
company can have more innovative and creative ideas and will foster better growth
and success (Buller and McEvoy, 2020).
 Rising competition for skills requirements – It has been evaluated that each and every
company requires skilled workforce who can help them in reaching the desired
objectives. Because of this, there has been rise in the level of competition and there
has been creation of mess. However, it is essential on the part of Unilever to attract
skilled pool of employees for competing effectively in the market.
 Development of technology – Development of technology is increasing at a fast once
and thus, it is important on the part of Unilever to adopt advance a well as latest
technologies which can support them in having higher amount of profitability. This
will also help the firm in attracting large pool of candidates (Jackson, Schuler and
Jiang, 2019).
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 Complying with the rules and legislations – It is important on the part of the HR
manager of Unilever to consult the security as well as employment experts, insurance
firms and fire departments for making sure that they cover all the legislatives
requirements which are applicable to the workers. Further, it is crucial that the
management must consider the stage law and federal laws, must focus on
development of safe workplace and enforce company policies and tax payments.
Application of appropriate theories and concepts linking to the growth of strategic HRM
In each and every company, human resource manager has a crucial role to play to
encourage and motivate the workers and teams in order to attain the pre-determined goals and
objectives of the company and so is in the case of Unilever (Lingard, 2018). Other than this,
the business functions of the company are also being managed as well as upheld for the
development of strategic aims and functions for increasing the growth of the firm in larger
market place. there are variety of theories and concepts that are linked with the growth of
strategic human resource management of Unilever. Some of the important among them are
being discussed in the subsequent section.
Motivation theory (Maslow’s need hierarchy theory)
According to this, there are five important needs stacked in a pyramid where the basic
need of the human being initiates from the bottom of the pyramid and these needs are
physiological, safety, social, esteem and self-actualization. This theory helps the HR
managers to augments the productivity as well as commitment level of the workers by
motivating them through accomplishment of these different needs. By fulfilling the basic
needs of the employees such as water, washrooms to social and safety needs that is
promotion, safe environment and good relation at workplace, managers can encourage them
address the needs of the company.
Contingency theory
It is being referred as an organizational theory that claims that there is no best method
of conducting or leading the company and making any decision. However, best action is
relied on the internal as well as external situation (Storey, 2017). The human resource
management function of Unilever can make use of this theory for comprehending the
manners by which the decisions are being taken through evaluating both the internal as well
as external situations of the market. Further, this theory also states that HRM functions
should match the environmental along with financial aspects for accomplishing the goals of
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the firm. Companies such as Nestle and Procter and Gamble are making use of this approach
for making effective HR decisions in the company.
Human resource practices
There are different human resource practices which needs to be considered by the
managers of Unilever and these are:
 Flexible working arrangements – It is important that the HR manager should offer
flexible working arrangements to the employees so that they can work hard and better
through successfully balancing their work life and personal life. This is adopted by
Marico Limited, an Indian consumer goods company. This HR practice supporting the
HRM strategy of the company effectively (Van Buren, Greenwood and Sheehan,
2021).
 540 performance appraisal – This is being defined as the method of assessing the
performance level of the employees through gathering feedback not only from the
supervisors, peers, juniors, managers but also from the clients. companies such as
GTL, ITC and Infosys are making use of this system. With the help of such HR
practices in places, these companies are enhancing the level of productivity of their
employees and meeting the business objectives successfully.
 E-recruitment – It is being referred as the automated process of determining,
attracting, screening as well as hiring applicants. Company can make use of this
practice for connecting with the prospective candidates with the use of technology.
The biggest advantage of using this method is that broader number of potential
applicants can be reached by the firm (Rao, 2014).
PART – 2
Covered in PowerPoint presentation
CONCLUSION
From the above evaluation, it can be concluded that strategic human resource
management is an important process that helps the company in managing the business
activities as well as concerns. Through evaluation of the current trends and development and
varied internal and external factors, it was found out that these factors have a significant
influence on the human resource management strategies along with the practices and policies
of the business. Other than this, relevant theories and concepts relating to the growth and
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development of strategic HRM to specific organisational examples have also been included
significantly.
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REFERENCES
Books and journals
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performance: Sharpening line of sight. Human resource management review. 22(1).
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performance: Sharpening line of sight. Human resource management review. 22(1).
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advantage and optimal organizational performance (A STUDY OF UNILEVER
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Ferguson, K.L. and Reio, T.G., 2017. Human resource management systems and firm
performance. Journal of Management Development. 29(5). pp.471-494.
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U.K: Cengage Learning EMEA.
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management and the decline of employee focus. Human Resource Management
Review. 21(3). pp.209-219.
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Deery, M. and Jago, L., 2015. Revisiting talent management, work-life balance and retention
strategies. International Journal of Contemporary Hospitality Management. 27(3).
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Kolios, A. and Read, G., 2017. A political, economic, social, technology, legal and
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