Evaluating HRM Strategies and Environmental Factors at Unilever

This report provides a comprehensive analysis of Human Resource Management (HRM) strategies, focusing on Unilever as a case study. It explores how HR strategies change within a firm using the concept of strategic HRM and examines the impact of environmental factors on HR plans and organizational culture. The report also discusses various HR models that create value for organizations, differentiates between personnel and HRM management using Storey's 27 points, and emphasizes the significance of local culture in human resources management. Additionally, it examines the variations in employment laws when international HRM changes local business systems and offers suggestions for workers regarding HRM practices to ensure high company performance. The analysis covers key areas such as technological innovation, changing employee demands, and economic factors, providing a holistic view of HRM's role in achieving organizational goals and maintaining a competitive advantage. Desklib provides access to this assignment and many more to assist students in their studies.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
ABSTRACT....................................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
TASK A: How HR strategies change by firm with the concept of strategic HRM.....................4
TASK B: Impact of environmental factors on HR plan and culture...........................................5
TASK C: HR model that create value for organisation...............................................................6
TASK D: Differentiate between personal and HRM management with the use of Storey’s 27
points............................................................................................................................................7
TASK E: Significance of local culture in the human resources management.............................9
TASK F: Examine the variations in terms of employment laws when international HRM
changes local business systems.................................................................................................10
TASK G: Suggestions for the workers regarding HRM practices to ensure that the company’s
performance is high...................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
Books and Journals:...................................................................................................................13

ABSTRACT
Human resource management is an important management activity for company as
human resource is the most valuable asset of organisation. That's why it is necessary for an
organisation to hire talented employees who are able to perform their job with full dedication in
order to attain organisational goals and objectives. This report is discussing HR strategies of
organisation in order to achieve goals and objectives.

INTRODUCTION
Human resource management is defined as the practice of including many functions such
as recruiting, deploying, hiring and managing employees of an organisation. HRM plays a very
important role in organisation success and growth (Cooke, Schuler and Varma, 2020). It is the
strategic approach which is used by organisation in order to effectively and efficiently manages
their employees so that they can gain competitive advantage in the market. This report will be
discussing important HR strategies in order to achieve organisational objectives. In this context,
Unilever is undertaking for analysing the impact of environmental factors on HR. Unilever is the
British multinational consumer goods organisation that runs their business is many countries.
This report also discussed important HR models and job design strategies. In addition to this, it
will also cover some hiring and firing strategies.
MAIN BODY
TASK A: How HR strategies change by firm with the concept of strategic HRM.
In today's business environment, every organisation is facing a tough competition and
complexities due to the uncertainty. That’s why it becomes very necessary for company to make
their human resource competitive so that they can deal with all the challenges of business
environment (Peccei and Van De Voorde, 2019). For that purpose, it is necessary for Unilever to
change their HR strategies as it assists them to achieve their goals and objectives. In addition to
this, company needs to understand the concept of strategic human resource management as it is
very important for their survival in the market. Strategic human resource management is the
process in which organisation use strategy for their human resources so that they will well
coordinated and consistent in the organisation. It is including four types of human resources
strategies such as recruitment and selection, performance review and performance appraisal,
learning and development, compensation & succession planning. These are important strategic
human resource management types which should be understood by organisation in order to
formulate strategies.
After COVID-19, it is identified that retail sector is facing difficulties in the market due
to heavy slowdown. This can be done only with the assistance of human resource management.

That's why it is necessary for Unilever to use strategic human resource management activities. In
addition to this, they can also use behavioural theory of strategic human resource management as
it relies on understanding employee’s needs and wants which makes them satisfy. It will results
in increasing productivity as well as performances of employees. Strategic human resource
management is becoming the necessity of organisation as it is focusing on effective use of
human resource.
TASK B: Impact of environmental factors on HR plan and culture
Every day the complexities for organisation are increasing which is necessary to deal. But
for that purpose, companies need to analyse external environmental factors as it gives impact on
culture and HR plan. It is identified by an organisation that human resource is comes under the
most valuable asset of organisation (Úbeda-García and et.al., 2021). This is the reason that
companies need to analyse all environmental factors which impacts on their culture as well as
human resource plan. It is necessary for an organisation that they should use PESTEL analysis
model and Porter’s five forces model as it helps them to understand the environmental factors.
Porter’s five forces model is very helpful in order to analyse a competitive environment in the
market. There are many environmental factors are mentioned below that influences on culture
and human resource plan:
Technological innovation
It is identifying in the current business environment that rapid technological changes and
innovations are taking place. Due to this, it becomes necessary for an organisation to appoint
technical personal as their requirement is increasing. But it becomes difficult for organisation as
it gives a great impact on human resource plan as well as on culture of company. Unilever needs
to make their culture accordingly and plan for their human resource.
Changing demand of employees
It is identified that organisations are changes and this results in changes in the demand of
employees. It is becoming very tough for organisation as technological revolution demands from
the existing employees that they should adopt every changing situation (Li and et.al., 2018). This
is not easy for organisation as Unilever identified that people are resistant from change. So they

need to make their HR plan accordingly and try to make the culture adaptive which is ready for
adopting every situation.
Economic factors
It is concerned with financial health of an organisation. That means in the favourable
economic conditions, Unilever needs to expand their existing employees programs and also
create some new programs for their employees so that they can feel motivated for the
organisational growth and success.
TASK C: HR model that create value for organisation
The success of an organisation is depending on using of HR models as it creates value for
firm. It is identified that human resource models are crucial for the growth and success of an
organisation (Sancho and et.al., 2018). There are many HR models found in the organisation
such as Standard Casual Model of HRM, 8 box models by Paul Boselie, HR value chain, the
Harvard framework for HR.
According to the standard casual model of HRM, it is the best one which drives from
many similar models that shows a casual chain of HRM. The chain is starting with this is
strategy and end with improve financial performance of an organisation. It is aligning all the
organisational HR activities with strategy in order to lead to business performance (Rasool and
et.al., 2019). According to this framework or model, it is identified that organisational HR will
only be effective if they are properly aligned with strategy of company. That's my in order to use
this HR model; Unilever needs to align business strategy with their human resource so that they
can achieve organisational goals and objectives effectively.
HR value chain is found to be one of the best known models in human resource which is
based on the work of Paauwe and Richardson. According to this model, HR is divided into two
categories that are HRM activities and outcomes. HRM activities are concerned with day to day
activities such as recruitment, training, compensation and succession planning. It is found that
these activities are measured with the help of using HR metrics (Ahammad, 2017). On the other
hand, HRM outcomes are the results or goals which are trying by organisation to achieve with
the help of daily HRM activities. It is including employee motivation, satisfaction, presence and
retention. So Unilever is focusing on measuring HRM activities which will result in focusing on

reducing cost. This shows that company needs to focus on HRM activities moreover to HRM
outcomes as it helps in aligning our processes with goals.
TASK D: Differentiate between personal and HRM management with the use of Storey’s 27
points
It is identified that organisations are confusing in human resource management and
personnel management (Otoo, 2019). This is very important to clear out there confusion as both
are different from each other. This can be done with the help of using Storey’s 27 points which is
the model that have 27 points in order to differentiate between personnel management and
human resource management. It is very crucial for a company to understand their difference as
human resources concerned with use of strategic approach of management. The difference can be
better understood with the help of below table:
S. No. Basis Personnel management Human resource
management
Beliefs and assumptions
1. Contract It always goes beyond
contract.
Followed contact with
delineation.
2. Rules More importance to new
rules.
Can do outlook and
impatience for rules.
3. Behaviour
referent
Procedures Business need
4. Guide for
actions of
management
Custom/norms and practices Mission/values
5. Managerial task Monitoring Nurturing
6. Conflict Institutionalised De-emphasized
7. Relations’
nature
Pluralist Unitarist
Strategic aspect
8. Key relations Labour management Customers
9. Corporate plan Marginal to Central to

10. Initiatives Piecemeal Integrated
11. Speed of
decision
Slow Fast
Line management
12. Communicatio
n
Indirect Direct
13. Key managers IR/Personnel specialists Line/business/general
managers
14. Standardisation High Low
15. Management
role
Transactional Transformational leadership
16. Prized
management
skills
Negotiation Facilitation
Key levers
17. Job categories
& grades
Many Few
18. Pay Job Evaluation Performance – related
19. Labour
Management
Collective bargaining
contracts
Towards individual contract
20. Job design Division of labour Teamwork
21. Selection Separate Integrated
22. Conditions Separately negotiate Harmonization
23. Thrust of
relations
Regularised Marginalized
24. Communicatio
n
Restricted flow Increase flow
25. Training and
development
Access to courses Learning companies
26. Focus of
attention of
Personnel procedures Wide range of structural,
cultural, & personnel

interventions strategies
27. Conflict
handling
Reach temporary Manage culture and climate
From the above discussion, it is identified that both HRM and personnel management are
different from each other. In Storey’s 27 points, it is identified four important places that are line
management, beliefs and assumptions, key levers and strategic aspect which help Unilever to
differentiate between both personal and human resource management.
TASK E: Significance of local culture in the human resources management.
Human resource manager is mainly concerned for hiring the deserving candidate and also
having the perfect knowledge of the local culture so that they can directly deal with their
customer. Culture refers to the set of religion caste behaviour and the attitude of the person
which reflect the overall effectiveness of the business in their business operation. Local culture
shows the overall scenario of the business and there are certain aspects which are enlisting the
significance of local culture in relation to human resource are explained as follows:
 Local individual is having the knowledge of culture by which they can easily resolve the
various issue a respective of their culture. Unilever can easily achieve their business goals
when they are having the employer for the local culture and having good external
environment knowledge which contribute directly to the sale and profitability of the
business.
 When the organsiation is hiring the employees from the local area it reduces the language
barrier as the individual personal must have the good command on the local language by
which they can have open communication to their customer or the colleagues to any level
of management. They are also familiar with the various languages that are being used in
the particular region and Unilever can change their communication channel by hiring the
people from local area so that they can make them understandable about the specific
point.
 As the individual is hiring the local individual it will reduces the cost incurred on
language assistance cost cultural and relocation expenses. Human resource manager also
so a lot there given budget in the various areas in order to manage the cost on their

personal. When the individual is from the local culture then they will easily set in the
organisation and it work according to their job role. Unilever can easily function in
various business operation and allocate their points in other department also by which
particular problem can be solved in an appropriate manner.
TASK F: Examine the variations in terms of employment laws when international HRM changes
local business systems.
There are different laws that is been followed by the organsiation in the different
operations & human resource manager is bound with the micro aspects which are miserly dealing
with the workers. But when it comes to international venture, they must have the external factors
by which they can ensure smooth running in different operations and human resource manager is
responsible for the evaluation of employee performance as well as their retention. There are
various employment law in relation to international HRM considerations and these are explained
as follows:
 Host Country nationals (HCN): these are the workers who are working in the foreign
branch of the organisation and they are the representatives of Unilever and operating
various functions in order to increase the overall sale of the venture.
 Third country Nationals (TCN):the type of worker who are working in various nation
in which Unilever is profiling across the globe.
 Parent country National(PCN):these are the employees who are working in the
organisation and not originated the venture & they are not in the same nation of Unilever.
They are having some law of the workers of the specific region that is being followed by
Unilever.
There are various rules and regulation that are Being given by the employer by enjoying
the effectiveness operation in an effective manner. In UK, factories act 1948 shows the various
norms of the workplace and different methods of working and the working culture of the
company. Another at is national minimum wages act 1998, in this it is said that the employee
must get the equal & fair minimum wages for their given job role. Unilever is following the act
and rules by which they can instead a effective brand image in the large market. There are
different laws by which organisation I can contribute to the society by having good compliances
with the legal aspect in the target market.

TASK G: Suggestions for the workers regarding HRM practices to ensure that the company’s
performance is high.
Resource management is create effective value as it is the important department in the
organisation which is concerned for the overall appraisal and performance management of the
personal in the specific job role. Unilever must offer the performance appraisal by which
employees can create value in their working and contributing in getting a good results. There are
various factor that is having major role in achieving the business goal of the company. Cultural
and religion are the two important aspect that shows the lifestyle and the behaviour of the
individual or the employees. In consideration to Unilever they are having positive working
environment as employee will love to work there II and their views 8 box model by which they
can identify the difference between personnel management and human resource management.
This helps in taking a right person at the right job in order to complete the task with the help of
specialised individual. This also help the business to get growth for a longer span of time by
which they can increase the profits and overall growth of the market. Thus, hiring of workers
from the local region help the organisation to get effective communication & solve the particular
issues in an easy approach as the person is having effective knowledge about the local language
and the external environment of the local culture by which they can rightly deal with the
customer.
CONCLUSION
It is concluded from the above respective report that human resource management is
responsible for recruiting and selecting the right individual who can perform the given job role in
a well-defined manner. There are various perspectives related to the resource management and
effective work and different strategy in being used so that effectiveness can be retained within
the organisation. Various strategies being used so that they can choose the right individual &
give them proper training and development program in order to sharp their skills and abilities. It
is the duty of the human resource manager to select the appropriate candidate for a particular job
role so that they can contribute to the profit and revenue of the company. Integrated set of studies
from both the quantity and the quality in the given work that is being operated within the
organisation. This is also stated from the human resource management that it is the practices that
includes all the structure of management & it helps in better selection process. It also helps in the

right decision with the help of innovation and advancement with the employees. Personnel
management also help in developing the recruitment by which individual can be chosen for a
specific role by analysing their skills and abilities. Lastly HRM is concerned for giving rewards
to the employee who are having high performance in their given job.