Effective Human Capital Management and Leadership at Unilever

This report provides a comprehensive analysis of Human Resource Management (HRM) and leadership practices at Unilever, a multinational consumer goods company. It begins by exploring relevant HRM models, including the Harvard model and the HR value chain, and analyzes their application within Unilever's organizational context. The report then delves into a critical examination of various HRM functions, such as recruitment and selection, and human resource development, in relation to strategic initiatives, offering recommendations for improvement. Furthermore, it evaluates HRM software programs utilized by Unilever and discusses the characteristics of effective leaders, supported by a relevant model. The report's structure includes an introduction, task-based analysis, conclusion, and references, providing a holistic understanding of HRM and leadership within the company.

MANAGING HUMAN
CAPITAL AND
LEADERSHIP

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Relevant Human Resource Models and approaches that are followed by the management of
the company............................................................................................................................3
HRM models and the analyse of different approaches of organisation towards management
and its human resources..........................................................................................................3
TASK 2............................................................................................................................................6
Critical analysis of various functions of the Human resource in relation to the strategic
initiatives ...............................................................................................................................6
Recommendations for improving these functions..................................................................9
TASK 3..........................................................................................................................................10
Critical Evaluation of the HRM software programs and their evaluation............................10
TASK 4..........................................................................................................................................11
Characteristics of the effective leaders considering the issues identified above and analysis by
way of a model.....................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................13

INTRODUCTION
Human resource is one of most important resource for any organisation which they have to
manage effectively. They are considered to be the capital of the organisation as with the help of
their capabilities the objectives are achieved by them. The management of human resource is
related with their recruitment, selection, trainings and development, induction and orientation,
compensation planning, performance appraisal etc. With the help of this the competence of the
employees are improved with the help of which their performances can be improved. The
mangers and the leaders in the organisation plays crucial role in motivating the employees and in
retaining them for a longer period of time so that an efficient workforce can be developed by
them. In this report the organisation which is taken into consideration us Unilever which is a
British Dutch company that offers various consumer goods. They have their operations at
international level with the products such as cleaning agents, personal care products, beauty
accessories, beverages, food products etc. In this reports various model of human resource
management, functions of human resource are taken into consideration. Along with that the
softwares programs which are used by the management of for managing the employees are also
evaluated and the characteristics of effective leaders are also discussed with the help of which
they can manages the employees in the organisation efficiently.
TASK 1
Relevant Human Resource Models and approaches that are followed by the management of the
company
Organisation is facing several challenges or issue such as to analyse the net profits, high
rate of employee turnover, less productivity from regular operations, due to which competitive
organisation impacts on majority of operations and functions that minimised the overall
productivity of company specifically HR department face many challenges as workforce are
highly demotivated because of non-accomplishment of organisational goals.
HRM models and the analyse of different approaches of organisation towards management and
its human resources
HRM models refer to those aspects that focus on strategy, structure and scheme of
organisation that are designed with the motive of generating coordination among all divisions
and human asset of organisation. Models of HRM are combined with different principles that are

hard and soft. Some of the major practical models that is implemented in respective organisation
are mention as follow:
Harvard model
HRM Harvard model consists of six different components that are stakeholder interest,
situational factors, HRM outcomes, HRM policy choices, long term consequences and feedback.
The term stakeholder include management, employee, investor and all those individual who are
engage and linked with operations of organisation. Situational aspect includes business strategy,
workforce, union and framework. From perspective of HRM policy it is designed as per interest
of stakeholder and existing situational factors. The main motive of HRM policy is to develop
positive value and outcomes from operations in order to achieve organisational goals and
objectives with in specified time frame. Along with this long term consequences are concerned
to develop about positive social, organisation and individual results of organisation (Armstrong
and Taylor, 2020).
HR value chain
The HR value chain is one of the most appropriate model of HRM and as per view from
value chain all operations and task performed by HRM can be divide into two separate
categories. HRM activities and HRM outcomes are two parts that undertakes aspects of HR
divisional activities. Outcomes defined goals and targets that are accomplished by management
of organisation by performing HRM activities. This refers that managers recruit various
employees and train them to encourage more efforts for achieving organisational goals. On the
other side, HRM activities state to complete routine activities that are selection, recruitment,
employee satisfaction and many more. Along with this with better and accurate coordination
between HRM outcomes and activities leads to generate positive results. This refers that
candidates are selected with within organised manner due to which skilled employees are
delegate right roles and responsibility (DeCenzo, Robbins and Verhulst, 2016). Thus,
performance of organisation is increased on constant basis.
Standard causal model- It is one of the best known model of HRM as it is derived from
different number of models that are developed for enhancing employee performance. This
demonstrate the casual chain for initiating better business strategy that ends with HR processes
and also improved financial and operational performance of organisation. The major motive of
standard casual model defines that how different activities combined with each other and leads

an organisation to gain huge success in market by organising and managing its human resources
effectively. It also refers that HR strategy relates with all operations and functions that are
performed in an organisation. Moreover, HR practices follow and implement different HR
strategy in order to perform all functions with positive and collaborative approach by involving
or engaging large number of employees in organisational functions (Assagaf, 2017).
Along with this various approaches are also required by Unilever to manage human
resources. This refers that human are most important asset for organisation that is not substituted
by any other organisation due to which it is easy to gain competitive edge in market. In the
present scenario, human resources are the key for development and success of organisation.
Some of essential approaches related with HRM are mention as follow:
To determine and understand company objective- Organisation must understand about
all respective methods, structure and framework that are designed as per accomplishment of
goals and objectives. This refers authorities must share and communicate right message with
employees due to which workforce input efforts towards right direction by participating
effectively in organisational strategy that are developed by HR department.
Analyse of HR capability- The current HR capacity must be design and evaluate to
develop for better understanding that how employees are contributing towards accomplishment
of organisational goals and objectives. There are various methods such as skill inventory
methods and data analyse etc. is used by management to ascertain expert areas of employees.
Moreover, it is also used by management to analyse those areas in which workforce provides low
productive results. This result Unilever is able to overcome from loopholes by improving weak
areas of employees.
Training and development- With the regular training and development session the
performance of routine activities that are completed by workforce will be enhanced. This is one
of the most essential responsibilities of HR department as they are accountable for identifying
needs and wants of employees that also helps to retain employees for longer period. Along with
this with right training and development organisation achieve more success by facilitating
effective results from operations and functions (Bailey and et. al., 2018).
Identify of tools required by employees- Resources are the most important part for all
project and task that are performed by management. So it is compulsory for Unilever to provide
and utilise high quality resources and raw-materials to workforce as it directly relates with

performance of organisation. Moreover, with right tools, methods and resources it is also easy
for management to deal with issue which works as barrier between organisational goals and
objectives.
TASK 2
Critical analysis of various functions of the Human resource in relation to the strategic initiatives
Human resource department of the organisation performs various functions with the help
of which they manage the employees. The aims, objectives and vision of the organisation are to
be achieved with the help of efficient employees and people are attracted towards the
organisation by them. Further they are selected to meet up with the roles and responsibilities with
the use of their skills and the capabilities. The efficiency of the human capital is must for the
organisation and for this they are held accountable for undertaking all the activities related to the
employees. They make employees available to all the other department of the organisation so
that their activities can be executed effectively on time. The functions that are performed by the
human resource managers for managing the employees are:
Recruitment and selection: The recruitment is one of the most important functions of the
human resource managers as create a pool for the company and out of which they select the
suitable and appropriate candidate for the organisation. The candidates are selected with the help
of a process in which their interview is taken, various assessment test are conducted by the
managers so that they ability to handle the situation can be analysed. The nature and the process
of recruiting and selection depend upon the nature of the products which the organisation is
offering, the job role for which they are hiring the candidate and many more (Boon and et. al.,
2018). The HRM of Unilever considers various methods for recruiting the candidate which are
given below:
Internal recruiting: Internal recruitment is the process with the help of which the
vacancies in the organisation are filled by the existing employees. It can be done the managers
by way of transferring the employees, promoting them to some higher designation, turning the
employees who have been working on temporary basis to permanent employees. Such
recruitment is done by the managers and the leaders by way of an analysis of the performances
of the employees and the requirement of the job role and the capabilities of the employees.

External recruiting: External recruitment is the one in which the candidate are selected
from outside the organisation which be through various sources. The types of the external
recruiting which are used by the Unilever for the recruitment of the candidates are:
 Contingency Recruitment: In this type of recruitment the company gives responsibility
to some outside firm to gather the candidates for the specific job with specifications
required. For this the payments are made to the firm as and when the candidate gets
selected by the organisation (Brewster and et. al., 2016).
 Reverse Recruitment: It is a type of recruitment in which the candidate is motivated and
encouraged to take their skills and the capabilities to some other organisation as they may
get appreciated there. It can be done with the help of various tools as through the
agencies so that the best candidate can be selected.
 Retained Recruitment: This type of recruitment is one in which a recruiting firm is
being appointed which is responsible for approaching the desired candidate and the
interviewing them as per the requirement of the organisation.
 Staffing Recruitment: Staffing Recruitment helps in identifying the candidates with the
help of various staffing agencies and that is generally for a shorter period of time
(Budhwar, 2016).
Human resource development is yet another important function which is being performed
by the HRM of the Unilever as with the help of this the competencies, skills, ability and the
knowledge of the employees can be increased. This helps them in improving their performances
as with this they can identify the better way of performing and undertaking any activity. It can be
done by way of organisation various training sessions and developmental programs, by
organising orientation and induction programs for the new employees etc. With the help of such
programs understanding among employees is developed by the managers of the Unilever. Also
with such developmental programs the company takes the competitive advantage as with this the
ability to perform better improves. Various training programs which are organised by the HRM
of Unilever are given below: Induction training: These trainings are provided to the new candidates so that they can
understand the environment of the organisation, their rules and regulations, the reporting
framework as who will give them command and to whom they have to report.

 Job instruction training: These trainings are provided for making the employees
understand the role and the responsibilities which they have to fulfil. Also the ways,
techniques etc. that can be used by them are also discussed under such sessions (Carbery
and Cross, 2018). Vestibule training: Such trainings are provided to the employees at some other location
which is quite similar to the workplace for making the employees understand their job.
This is one of the most important training as in this they get to know about what and how
they have to execute their role.
 Refresher training: Refresher training are those which are provided to the employees so
that they can effectively adopt the changes which are taking place in the technology,
process etc. With this the employees adds more value to their skills and capabilities that
makes them efficient enough to deal with the changes.
Motivation : The human resource of the organisation need to be kept motivated in order
to keep them focussed and consistent towards their targets and goals which they have to achieve.
They determine the need of the employees as by satisfying them the people working in the
organisation can be motivated. By organising various trainings the employees are encourage to
perform the tasks which they are responsible to do so. Unilever spend a lot of funds in
conducting various sessions for training and development, other recreational activities and events
etc. as through these the understanding among the employees can be improved (Crawshaw,
Budhwar and Davis, 2017).
The managers identifies the need of the employees with the help of Maslow Need
hierarchy theory. This theory provides a hierarchy in which the needs of the people are placed at
five different level. The level depicts that once the lower level needs are satisfied then the person
move towards the higher order need. The physiological needs are satisfied by the salary which is
paid to the employees while the safety and social needs are satisfied by them by making the
employees interact with each other and by providing better, comfortable workplace environment.
For satisfying the needs of self esteem and self actualisation, HR department of the Unilever
provides various opportunities to the employees with which they can achieve their growth. In
addition to this various incentive plans are prepared by the HR managers which can be both
financial and non-financial, that helps them to motivate the employees as the benefits plays a
crucial role in making the employees consistent.

Performance management : The managers in the organisation conduct the assessment
of the performance of the employees so that the areas where the improvement is required can be
identified. Also on the basis of the performance evaluation the productivity of the employees are
determined and after this the requirement of the training and development are identified.
Different methods are used by the company Unilever for evaluating the performance which are
given below:
 360-degree performance appraisal: The performance appraisals were con ducted by
the managers once in a year but with the changing requirement it became a ongoing
process. In this methods the employees of Unilever appraises their managers, suppliers
and even themselves. This analysis of the employees facilitates them in analysing the
area where they need to focus upon (Gandolfi and Stone, 2017).
 Assessment centre methods: In such methods the employees are assessed by way
involving them in stimulations, group activities etc. With the help of this the managers at
Unilever can gather the insights of the personality of the employees such as their ability
to deal with the changes in the skills, understanding of the importance of ethics at the
workplace etc.
 Management by objectives: This is such a methods of appraisal of the performance in
which the employees and managers both determine the plans and the goals are
communicated. With this the goals are clearly defined and on the basis of their
completion the performance are evaluated by the HR managers.
Recommendations for improving these functions
On the basis of the analysis of the functions which are performed by the human resource
mangers various recommendation are made to the Unilever with the help of which they can
improve the efficiency of the functions. The company need to focus on various sources of the
internal recruitment for recruiting the employees. This offers various advantages to them as this
leads to internal mobility of the employees due to which the requirement of making the
employees comfortable with the organisation culture and the rules, regulation at the workplace
reduces. The requirement of the training and various sessions also reduces which help them to
save their cost of trainings as the training only for the changes in the role is to be provided so that
they can adapt the new technology, methods etc. (Healy, 2016)

Further it is recommended that the employees who has been recruited from the external
sources must be provided effective induction and the orientation so that their can understand the
culture of the organisation effectively. With such programs they can make them comfortable
with the existing employees and the reporting framework i.e., whom they have to report to and
the one who will give them command. In addition to this the company must focus upon the
campus recruitment as with the help of this they can attract the new talent in the organisation.
With such talent the Unilever can effectively handle the changes which are taking place as they
have the knowledge of what is going on in the economy. The Unilever must focus on the
refresher training for the existing employees as with the help of this they can make them
competent enough to deal with the changes in the technology so used by them (Hughes and
Byrd, 2017).
The HR managers of the Unilever need to focus upon various motivational theories and
the ways with the help of which the employees relation can be improved. This will help them in
retaining the employees for a longer period of time in the organisation. Various policies for
managing the conflicts must be formulated and they need to be communicated to the employees.
With the help of which the culture of the organisation can be managed effectively. It can be done
by the managers through preparing a handbook in which all the policies, procedures, rules and
regulations are specified so that the employees get through it. This will help them in reducing the
chances of various issues that can be faced by the company in future.
TASK 3
Critical Evaluation of the HRM software programs and their evaluation
Human resource management uses various software programs with the help of which they can
make their processes innovative and automated. With the help of this various functions of the
human resources can be combined with each other such as the employees data, recruitment
processes, tract the attendance of the employees etc. Such software facilitate the managers in
analysing the performance of the employees, their compensation and many more. On the basis of
which the HR managers determines the requirement of various training and development
sessions for them (Järlström, Saru and Vanhala, 2018). The software programs which are
adopted by the organisation for managing the employees are:

 Paycom: This software helps in automating the core task of the human resource
managers related to the recruiting, managing, retaining in the organisation. With the help
of this software the pressure on the HR managers of the paperwork reduces and make
them focus on those activities which cannot be automated. It provides various benefits
such as it helps in reporting, on-boarding and learning management.
 ADP Workforce Now: With the help of this software the organisation can handle
various tasks simultaneously such as handling of the payroll, management of the talent,
benefits the administration etc. The complexities of the life cycle of the employees can
also be managed. But this is suitable for the company that has 50 or more employees
(Mayo, 2016).
 People Soft: It provides end-to-end solution by automating the activities and
streamlining the entire supply chain. People Soft can effectively be used by any type of
organisation irrespective of their nature of business.
 Ultimate pro: Ultipro is a cloud based software with the help of which all the core HR
functions such as the payroll, management of the talent etc. can be incorporated in one
software. From this software the data can be accessed by the enterprises for different
needs.
The Unilever can adopt various software for improving their processes and managing the
human resources. The most appropriate software is People Soft as in that all the core activities of
the human resource can be unified and automated. As the Unilever is a large company so it is
suitable for it as the software can handle a large data and can be customised. Also with the help
of this the supply chain of the company can also be streamlined. In addition to this the visibility
of the activities of the human resource can be improved (Susanto, Fang-Yie and Chen, 2019).
TASK 4
Characteristics of the effective leaders considering the issues identified above and analysis by
way of a model
An effective leaders are those who passionately work and help in creating vision for the
employees with the help of which they can perform their job effectively. Such a leader posses
various characteristics with the hep of which they motivate the people to work. Some of the
characteristics of the effective leaders which are possessed by the leaders of Unilever are:

 Accountability: An effective leaders take the responsibility of the actions which are
taken by them and are accountable for such action. They analyses various issues and tries
to learn from the mistakes so that the performances does not get affected from it further.
 Creative: The leaders are creative as they tries to find out the solution of various
problems by introducing the innovation in the activities. They make the employees
comfortable with the changes that are taking place by making them understand the
importance of such change (Troth and Guest, 2019).
 Motivates others: The leaders motivate the employees by way of various incentives and
by providing various opportunities to them. With this the leaders can effectively manage
their employees.
The models which can be use for analysing the efficiency of the leaders can be the styles
with which they tries to achieve the goals and objectives. The models which are used by the
leaders of the Unilever are:
 Autocratic Leadership: With the help of this style of leadership, all the decision are
controlled by the individual. Such style are used by the leaders of Unilever in case the
decisions are important because in this the participation of employees may not be
entertained.
 Democratic Leadership: This style of leadership is also known as the participative
leadership in which the employees actively take part in the decision making of the
employees. This leads to the free flow of the ideas of the employees.
 Authentic Leadership: Authentic leadership is a approach in which the focus is on
building the legitimacy of the leaders which can be done by way of building the
relationship. With this openness is achieved due to which the employees can effectively
share the ideas and issues with them (Wilkinson, Redman and Dundon, 2017).
The leaders in Unilever follows all the approaches as the organisation operates at large
scale and have a large number of employees. They faces the problem of lack of motivation,
reduced productivity etc. among the employees. Such problems can be easily be solved by way
of these approaches.
CONCLUSION
It is concluded from the above report that the organisation need to manage the human
capital effectively in order to achieve their objectives. This can be done by way of adopting

various approaches that can help the HR managers in motivating the employees. The employees
can be motivated by satisfying their needs, providing them various opportunities, through various
training and development sessions and many more. The human resource performs various
functions with the help of which they can attract, retain and manage the employees effectively by
way of various models and approaches of leadership.

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