MG629 Developing Leadership: Unilever Leadership Evaluation

This report provides an analysis of leadership and management skills within Unilever, examining how these skills contribute to achieving organizational goals and desired profits. It includes a comparison of leadership and management based on different aspects and values, highlighting the role of key performance indicators in measuring organizational performance. The report evaluates organizational leadership and its impact on management performance, discussing methods for performance measurement. It explores Unilever's leadership and management practices and how the company evaluates its performance using specific metrics, drawing from leadership theories such as transformational, servant, and cognitive leadership. The report also covers management's role in achieving organizational, social, and personal objectives, relating these concepts to Unilever's global strategies and organizational structure.

Developing Leadership
and Management
Skills

Table of Contents
Executive summary..........................................................................................................................3
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................5
Analysis and comparison of leadership and management.......................................................5
Key performance metrics of organizational sector/market/industry........................................8
Organizational leadership and management performance......................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

Executive summary
This report is being made on the context of Unilever, a UK based company. How
developing leadership and management skills in the organisation can helps in building business
to achieve its goals and generate desired profit. It comprises analysation of leadership and
management and comparison between them on the basis of different aspects and values. It
indicates hoe key performance indicator helps organisation in measurement of performances.
Then it evaluate the organisational leadership and its importance with management performance
and how to measure the performance of an organisation. This report encompasses how leadership
and management works in Unilever and how they evaluate their performance based on certain
measures.
INTRODUCTION
In the process of the development of the organisation, a company needs to develop the
leadership and management skills first as these two are the basis of an successful business. A
effective leader is the one who guides in the all aspect of one's career. It is considered as a skills
which incorporate various different personality traits and communication abilities which are
useful for managing an organisation in a productive way. It is very essential for a company as it
builds strong teams in the business to ensure effective working on projects. Where as
management skills can be defined as abilities that an executive possess to fulfil the specific tasks
in the organisation. Having good management in the organisation helps an organisation to
achieve its desired goals. Both management and leadership skills are used interchangeably as
both the skills possess some similar traits such as effective communication, decision making,
problem solving and time management(Birdsall, C., 2018) . This report is being made in the
context of Unilever, which is a multinational consumer goods company having its head quarters
in London, UK. The company is selling many products such as tea, coffee, food condiments,
well being vitamins, cleaning agents, beauty products and personal care. They are owns over 400
brands and working in around 190 countries. Currently more than 21,000 employees are
working in the company. Unilever also works for sustainable environment as their aim includes
100% renewable grid electricity and a deforestation free supply chain by 2023. The aim of this

report is to highlight the evaluation and comparison between leadership and management,
performance metrics of organisational sector and the difference between organisational
performances and management performance.
TASK
Analysis and comparison of leadership and management.
Leadership
A leadership is defined as an important aspect of the organisation who leads the followers in
order to make an impact on the productivity, profitability and in customer satisfaction.
Leadership has changed rapidly in the modern business culture with updated theories and
concepts. Leaders continue to adapt and develop new styles of leadership in order to meet ever
changing demands according to the followers effectively and productively. There are three
leadership theories that impacted organisation, that are transformational leadership, servant
leadership and cognitive leadership (Fotovatfard, A. and Heravi, G., 2021). Transformational
leadership focuses on the employees and the success of the organisation, servant leadership
focuses on the success of the employees and enhances the moral and ethical standards, cognitive
leadership follows the approach that deals with process of decision making and their impact on
their followers. A good leadership consists five elements that include discipline, creativity,
values, support and insight. Its an process which influences and directs the employees to
accomplish organisational as well as personal objectives. In the context of Unilever, they use
leadership growth profile as a model of leadership. They embrace leadership through acquiring
local cultures with the internationally accepted corporate framework.
Management
Management is the way of conducting business organisation. Its a process of getting and
handling things by a community in order to fulfil the long term goals of the organisation. A
successful business needs a understanding business environment for working which only
provided by effective management system. Management develops the values, managerial
abilities, administrative systems and handle organisational responsibility. It is a procedure of
planning and organising the available resources and different activities t achieve goals of the
organisation in a most effective manner (Gavalas, D., Syriopoulos, T. and Tsatsaronis, M., 2021)

. An effectiveness of management connects with the completion of tasks in the given time and
productive results. Its a dynamic function that changes with the changing business environment
and with economic, social and technological changes. The objectives of the management is
further divided into organisational objectives, social objectives and personal objectives. A good
management system helps in achieving group goals, increases efficiency, creates a organisation
to work in different dynamics and in achieving personal objectives(Pollitt, C., 2018). In the
context of Unilever, they manages their global strategies with the local community to attract and
generate customers. Their organisational structure depends on product type and divided in
different divisions.
Leadership Management
Definition It is defined as the ability of an
individual entity to make an
influence on the employees of
the organisation and motivate
them towards the success of he
company. Leadership affects
the effectiveness of the team
members and enable them to
contribute towards achieving
goals.
A management is the process
of directing and controlling a
group and teams for effective
coordination among the group
and building employees in
accomplishing the business
goals.
Orientation Leadership is based on the
people. Hence its people
oriented.
Management changes
according to the different tasks
. Hence its task oriented.
Approaches Leadership follows the simple
and creative approaches
instead of hard one. In it they
simply analyse the
problem,create creative
solutions and by using their
Management work more
formally and work as creating
strategies, make policies and
develops ideas that operates
smoothly. Management
empowers people according to

ability focuses on solving
problems.
their values and principles.
They reduces organisation
success and generate success.
Style Leadership follows
transformational, consultative
and participative style in their
working.
Management Follows
dictatorial, authoritative,
consultative, transactional and
democratic style in their
working.
Use power through Leaders use their power
through their influence and
charisma.
Management uses their power
authoritatively and in
accordance to their position.
Vision creation Leadership creates the vision
and direction by having
passionate attitude towards
achieving goals.
Management builds the whole
process of achieving vision by
making plans according to the
budget.
Credit In leadership, they prefer to
give credit to those with whom
they work in a team in
achieving business goals.
In management they takes the
credit of achieved goals.
Design Leaders makes new principles
and provides guidelines in
accordance with the situation
and place to enable them to
move from one point to
another.
Management uses strategies
and policies that are designed
to be followed according to the
right procedure and rules.
Focus Leadership focuses on
encouraging their followers to
follow the change in order to
make their follower updated
Management focuses on
managing employees of the
organisation and bringing
stability in the business. They

with the current technology
and environment.
directs rules and regulations to
manage organisation well.
Perspective A good leadership requires
good foresightedness for the
growth of the organisation as
well as team members.
Management works for the
short term goals and manages
for the short term perspective.
Key performance metrics of organizational sector/market/industry.
A key performance indicator helps in determine a company financial, operational and
strategic achievements with the comparison of other organisation which are working in same
field. It is vary from companies and industries depends on performance criteria(Haque, A.,
Fernando, M. and Caputi, P., 2020). The key performance indicator includes five criteria that are
given below:
 Revenue growth- It is a key performance indicator that measures sales and calvulate
revenue generated during the subsequent time. It is calculated year to year but some
companies calculated on the month basis also. Revenue growth provides an early signals
to the business owners about the positive and negative future trends and helps in
management plan and making operations.
 Revenue per client- It is the key performance indicator that is calculated on the basis of
per user. It is calculated on annual revenue divided by number of clients. Revenue per
client calculated the average amount of revenue generated by each member of wealth
management of the company. The figures help in developing and determining stable foot
on the business.
 Profit margin- It is an essential key performance indicator which allows business to
know the profit margin of each product and service and in this process a business get to
know which product generate more profits and making most money. In context of
Unilever
 Client retention rate- It is based on the ability of the business to retain customers for a
long term and generate recurring revenues from them. This impacts on recurring
revenues, customer satisfaction, account expansions and the growth of the business. In

context of Unilever, their sales growth rate increases of 1.9% and focused on driving
competition.
 Customer satisfaction- It determines whether the customer is satisfied with the goods,
services, business and customer service team. It can be calculated by adding up sum of
all the scores and dividing the sum by the no. of respondents. In the context of Unilever
they increase productivity and increase customer satisfaction by decreasing cost.
Organizational leadership and management performance.
Organisational leadership
Organisational leadership is defined as a approach which helps leaders to set strategic
goals of the organisation with motivating individuals and teams to carry out projects successfully
. Its about managing teams effectively to achieve desired goals (Harvey, H.B. and Sotardi, S.T.,
2018) . The leadership in the organisation consist various skills and steps such as:
 Evaluation of organisational mission and build connect with strengths.
 Build a strategic plan according to the mission.
 Implementation of strategies and holding teams accountable to achieving that goals
within the time according to the planning.
 Evaluation of the challenges and hardships the may come in a way to accomplish goals.
 Innovation of different solutions to meet with those hurdles.
 Communication with the team members effectively and inspiring them to give their best
and work for the unified purpose.
Organisational leadership consist a wide scope of responsibility and deals with the mission and
vision with the establishment of strategic plans. It is required at every stages to consider how
current working can be improved or needs change to meet future challenges (Hassi, A., 2018) .
In context of Unilever,they have created four tier hierarchical structure which allows the leaders
to make appropriate decision based on available resources. It is important because:
 Promotes communication, ethics and respect- Organisational leaders communicates in
all the possible way which makes every employee feels contributed and respected as each
and every role in the organisation is important. A good leader shares good
communication values, ethics and respect as per the exception.

 Motivates team members- An effective leader motivates team members which provides
growth mindsets for the teams and the individuals. A good organisational leadership
contributes to forward momentum of the organisation.
 Encourages problem-solving and decision-making mindset- By providing healthy
working atmosphere which promotes great ideas. Organisational leadership helps in
developing solutions and make effective decision for exponential growth.
 Allows leaders of the organisation to be goal oriented- After empowering individuals
and teams to fulfil their roles and responsibilities in order to get innovative solutions for
the problems, the organisational leaders will focus on the wider picture and moving
forward to achieve organisational goals.
Management performance
Its an approach that makes sure the achievement of organisation in desired goals by
continuous streamlining employee performance and efforts to match with the set goals.
Management performance builds effective communication systems between management and the
employees that helps in accomplishing objectives. In the current business scenario, the role of
management performance is very important as it performs functions such as setting business
goals, regular performance review in comparison to goals, maintains instant communication,
gives performance feedback, establish base for better employee training and development and
connects performances with rewards(Helmold, M. and Samara, W., 2019). In context of
Unilever, the management performance works to meet short term and long term goals and
working on a process of rapid changes in the organisation in order to stand in the competition.
There are various aspects that an organisation measures the performance of its management such
as:
 Financial measures- It is based on organisation's annual reports and relates
organisational effectiveness and profits. Financial measures includes the profit and stock
price of the organisation. These measures should be objectives and relates with the past
performance.
 Customer measures- It is the measurement of the management performance based on
customer attraction, retention and satisfaction. How a management making policies and
applying them on customers in order to increase their sales and profits (Kia, N.,

Halvorsen, B. and Bartram, T., 2019) . It helps in determining whether implementation of
policies works or not.
 Internal business process- It measures the performance which relates to organisational
efficiency. Management plays crucial role in internal strategy making and effective
working in accordance with the goal structure (McCullough, B.P. and Trail, G.T., 2022) .
By analysing the internal business process business will get to know that a management
is working effectively or not.
 Learning and growth of the organisation- It measures the performance related to the
future, making employee learns a skills that helps them in their future and in context of
organisation also. Management contribution in the growth of the employees helps in
measuring management effective working.
CONCLUSION
From the above report it is conclude that development of the management and the
leadership skills in the organisation is very much essential for the effective working of the
organisation. This includes the analysis of the leadership and the management which includes
how leadership and management works in an organisation and how they affect in profitability of
an organisation. Then it includes comparison between leadership and management on the basis
of definition, orientation, approaches, style, power, vision creation, design, credit, focus and
perspective. This report defines how key performance indicator helps organisation to measure its
performance on the basis of different aspects which are revenue growth, revenue per client, profit
margin, client retention rate and customer satisfaction. Then it explains the organisational
leadership and importance of it, such as it promotes communication, ethics and respect,
motivates team members, effective decision making and allows leaders of the organisation to be
goal oriented. Management performance measurement done on the basis of financial measures,
customer measures, internal business process and learning and growth of the organisation.

REFERENCES
Books and Journals
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