HR Strategies at Unilever: Impact of External Factors and Theories

This report provides a comprehensive analysis of the human resource (HR) strategies employed by Unilever. It begins by outlining the key external and contextual developments that influence HR strategies, including globalization, workplace diversity, changing skill demands, and technological advancements. The report then delves into generic HR strategies such as high performance, high commitment, and high involvement approaches, illustrating how Unilever implements these strategies. Furthermore, it examines the impact of contemporary theories, specifically the best fit and best practice approaches, on HR development within the company. The analysis highlights how Unilever utilizes these theories in its HR practices to enhance employee efficiency, commitment, and overall organizational performance. The report concludes by emphasizing the importance of adapting HR strategies to the ever-changing business environment to maintain a competitive edge.

Table of Contents
INTRODUCTION...........................................................................................................................2
PART 1............................................................................................................................................2
KEY EXTERNAL AND CONTEEXTUAL DEVELOPMENT THAT AFFECTS THE HR
STRATEGIES..................................................................................................................................2
Generic HR Strategies ................................................................................................................2
Key external and contemporary issues that influence HR strategy.................................................4
IMPACT OF CONTEMPORARY THEORIES AND PRACTICAL KNOWLEDGE ON HR
DEVELOPMENT............................................................................................................................6
Best fit approach and best practice approach to HR strategy......................................................6
How Unilever is using the theory in their HR practice...............................................................7

INTRODUCTION
The level of competition has risen to the global growth of the company’s number. To
survive in this highly competitive business environment, a new approach has been adopted by
the company, in order to maintain a well-known SHRM service organization. This service is
a new way of working better for a company. Workers of the basic pillars of a particular plant.
Therefore, human resource management service to try to get their hands on efficiency, staff,
and help improve their performance. It has the company's British brand, its international
business and large population, making it the world's most successful member, in more than
190 countries with more than 400 products in its product line and providing more than
1,67,000 employees worldwide. Each organization, which was their strategy and
organizations and their goals, should be maintained by business personnel and Strategic
Human Resource Management adopted by the company, which is an integrated approach to
employee policies and organizational policies and functioning as a beneficial environment for
physical growth (Wang and et. al., 2021). Therefore, following implicated study highlight the
external and the contextual development which are affecting the HR strategies based on the
generic HR strategies. Even so, some external and contemporary issues like globalisation and
the workplace diversity along the technological implication are discussed. Also, the impact of
the contemporary theories and the practical knowledge on HR development with a brief
overview of the Best fit and best practices approach to HR are being examining in contrast to
the concern business organisation.
PART 1
KEY EXTERNAL AND CONTEEXTUAL DEVELOPMENT THAT
AFFECTS THE HR STRATEGIES
Generic HR Strategies
Human Resource Management to maximize the efficiency of employees, depending on
the role of each employee in the organization. To achieve the goals of the people, therefore,
the company chose to define the category dedicated to caring for the financial needs of the
people. The Department of Labour, managers must deal with all personnel matters, for
example, conflict and policy changes, communication, currency fluctuations, etc. The three
main methods can be summarized as follows.

High performance
High performance or high efficiency aims to make a significant impact on the organization in
terms of productivity, quality, service, growth and profitability. High performance
management practices are key recruitment and selection processes, comprehensive and
appropriate development and management functions, promotion of the payment system and
performance management system (Jain and Srivastava, 2021). These methods are often
referred to as the "High-Performance Work System (HPWS), which incorporates an
approach, which can reduce staff commitment, skills development and motivation. Unilever,
to achieve the highest level of strategic performance objectives are as follows:
 Communication of equipment and business vision, in the context of the
communication of the organization's purpose and the scope of the employee and
determining their role in supporting that purpose.
 The exchange of information practices, which to date information about the operation
of the organization, as well as any other information that may affect the work, is a job. The implementation of compensation policies based on salary linking practices and /
or bonuses for the successful implementation of the organization to support the
objectives. Examples of profit-related payments, profit sharing and offering bonus
Unilever more productive employee. .
High Commitment
One of the feature of strategies of human resource management is the emphasis on the
need to strengthen the commitment of others. Managerial commitment is defined as a system
of Management, which aims to create a commitment so that behaviour becomes self-
governing rather than controlled by punishments and pressures without personal relationships
within the organization that underpin a high level of trust (Watts and Florance, 2021).
Unilever with a high level of employee commitment is often seen by the employer assigned
to its employees, depending on the development of assets, there are available production
features, integrated use of certain employee practices, such as job redesign, job creation in
problem-solving teams, teams, forces, and a small state difference. Strategies for achieving
high commitment are as follows-
• A skills development ladder and emphasized that they make money while working at
Unilever.
 Dedication, the most valuable features of employees at all levels of Organization.
 A high level of performance does not come from a strong job description.
• Reduction of management, and the end of the state is the difference.

 Reducing variability in performance, emphasizes the balance of workload. An
example of policy and making support and open communication in all areas.
High Involvement strategy
HR manager of Unilever believes that higher levels of participation approach work best,
because they work as a result of collaboration, it has a repetitive effect. It’s all about
communication, and participation. Hence this strategy aim is to create an environment in
which discussions between managers and their team members continue, in order to determine
expectations and to share information on the organisation's mission, values and objectives
(Chaudhuri, Park and Johnson, 2021). This approach is a part of the high level of
participation in the system sometimes expanding beyond its original concept, and includes
high-performance approaches. It is the most participatory approach is as follows:
• An approach, which includes the coordination of leadership development resources in
organizational strategic direction. An example of using key mode function and / or
goal setting, managing access to educational, training, assessment and feedback
processes
• Staff participation in decision-making, supporting our employees' ability to influence
decision-making, which means "through, such as Quality Circles, process and project
management in city hall meetings, and / or programs.
• Safety policies and procedures to ensure that employees are the main safety function
in their positions. Unilever have policies in place to support the freedom of impact of
program communication, problems, and practices that support, in general, stable
employment (e.g., avoidance of retrenchment).
Key external and contemporary issues that influence HR strategy
This contemporary business environment is not standing still, it changes constantly, day by
day. The organization wants to explore the most relevant issues and strategies, related to the
organization, this can help, over time. There are various trends of modern business which are
affecting the business performance and the HR strategies which will be discussed below.
Globalisation
Today, the Unilever operates not only in the developed country, but also in the developing
world and expands its business operations. Expansion of the company is increasing in various
fields of international business, creating the necessary human resource managers. The growth
of cross-border trade, as well as the use of information and communication technology aims

to attract global talent, as well as to develop new strategies to preserve, and utilize their
knowledge and skills.
Workplace diversity
Globalisation has not only brought the global talent but also thrives the workplace
diversity. Differences in employee age, culture, race, religion, religion, gender, age, etc. It is
associated with the formation of the framework of Human Resources of Unilever. In order to
establish and transform the way employees work, it is important to consider the diversity of
the workplace. Human resource management requires the training and education of people
from a variety of backgrounds, with the rules and regulations of the employment laws of the
country, and to manage and deal responsibly in order to create a participatory approach at the
Unilever workplace (GOEL and et. al., 2021)
Changes in demand of skills
Changing skills requirements is also a major problem, to deal with competition,
productivity, quality and management of the various employees in the organization. They
should also have professionals and trained staff to plan carefully in line with the lack of
information and lack of organization, as well as to respond to the needs of the dates below.
Continuous improvement and processes for improving productivity
Open to change the way a business is focused on customers and employees or more,
effective efforts to engage with quality paperwork, and compliance with customer needs.
Human Resource Management enables employees to ensure the continuous improvement of
their personal and professional lives, as required, in order to adapt a variety of situations. The
whole process will need to be worked out with clear and comprehensive learning to make a
difference in the expected outcomes of staff needs.
Advances in technology
Advances in technology and the improvement of computer systems to aid human
resource management, in order to make its operation easier and simpler. The current state of
the business is characterized by intense competition and benefits from the survival of the
most powerful. For this reason, Unilever uses information technology, in order to maximize
the effectiveness of the human resource management system (Ramlachan and Ramraj, 2021).
The introduction of technology to Human Resources Management through Human Resources
Information Systems (HRIS) has made it easier and faster for Unilever to collect, organize,
and distribute information to employees and speed up the recruitment process. Over the past
few years, reducing the cost of Computer Science and increasing engineering-related costs in

salaries, wages and benefits, has required a decision on the introduction of an online Human
Resource Management System.
Therefore, from the above carried out study it has been critically analysed that when it comes
out the SHRM there are lots of the aspect which are impacting the daily operations.
Therefore, external and the contextual development of the new trend may affected the
Unilever organisational HRM practices and this would and influence the HR strategy.
Moreover, the Cloud technology and the use of the gig economy are improving and affecting
the HRM system by the 2021, as these system are executed into the HRM practices of
Unilever. These help in fostering the employee commitment despite having workplace
diversity.
IMPACT OF CONTEMPORARY THEORIES AND PRACTICAL
KNOWLEDGE ON HR DEVELOPMENT
Best fit approach and best practice approach to HR strategy
The SHRM model 'Best Fit' focuses on the fact that the close relationship between
Unilever strategies and other programs is respected. The well-balanced model is considered
to be different from the previous models of Harvard, Michigan and York and is called the
"compatible model" of HRM. Based on the development of HRM policies in terms of
business strategies. This strategy includes planning future activities, operational objectives,
and policies to achieve business objectives. The HRM strategy should be developed and used
to support the strategy provided by Unilever. As Unilever continues its life cycle HR
practices must be consistent and lead to the management of other employees who may have a
negative impact and show non-compliance with corporate culture (Kim and Torneo, 2021).
This strategy includes planning future activities, operational objectives, and policies to
achieve business objectives of Unilever. The HRM strategy should be developed and used to
fund the company's asset plan.
The concept of ‘Best Practices’ also acknowledges the importance of business strategy
in practice. Advanced practice models indicate a close correlation between HR practices and
organizational performance and are often associated with high commitment management.
Several high-level jobs are represented as matching HR jobs that create high levels of
employee performance, promote motivation and deliver job creation that increase employee
commitment (Reed and Langford, 2021). Based on the ideas from the expected training, good
HR practice will lead to higher levels of quality, productivity and better employee
satisfaction.

How Unilever is using the theory in their HR practice.
There is no doubt that organizations in today's world are increasingly focused on
improving human resource management. This is because organizations want to select, hire,
retain and retain the best talent for the staff. Remuneration strategies are one of the key
functions of human resource management. Indeed, these activities are designed to increase
the motivation of its employees and to avoid any dissatisfaction with employees. So, in that
respect various theories which are implemented at Unilever are as follows.
Motivational theory
Different motivational ideas were thought to define and analyse the behaviour of
employees.
At Unilever the best way to ensure continued growth in a person’s performance is to
enter the Reward program and the reward system should focus on positive reinforcement as it
is the most effective way to introduce your favourite character. Whenever the word
‘Motivation’ is used, the first thought that strikes the mind is a list of needs of Abraham
Maslow. He studied human behaviour and identified the five basic requirements for a
person's mind and his or her presence in the management field (McCann and Allen, 2021).
Unilever management must appreciate the role of employees verbally and in writing either in
person or electronically although personal communication works well and employees feel
valued and respected for their efforts and their contribution.
Another motivational organisation in UK is Tesco, one of the biggest retail in Britain.
They consider pay as a primary motivator. Motivated employees will work and concentrate
greater on their targets and objectives, will do less mistakes, or will be involved in conflicts.
Motivated employees will show all the time loyalty to the company that appreciate them.
Tesco motivates and support their employees through a work-life balance and gives
remuneration through flexi working hours, health benefits are for free or reduced, Tesco
employees have discount for gym membership, good salary, discount for staff and Company
share points.
Tesco learned that it is significant to build trust and respect. It increases employee’s
motivation through appreciating employees, giving realistic goals and an motivating
atmosphere for them to work. At Tesco a motivated colleague of staff ‘works in partnership
with others to reach individual and team objectives'. (www.tescoplc.com) From this we can
make a conclusion the employer focuses on customers, gives people fairly treatment and is
strongminded and dedicated to get feedback from others.

Contingency theory
The conditions for the employment of urgent ideas create a change in organizations.
That is to say, the type of staff describes this practice. Others deny the full potential of
employees in the Unilever. The argument is that the influence of the organization is not taken
up by the staff, but only by the direct impact of Unilever, that is, natural technology. An
important aspect of contingency theory is that if an employee are not able to perform better in
the one situation via a single model then there is need to try the another model, as here is no
single way to make the organizational functions more efficient and effective. The situation
suggests that in order to be effective, HRM must be aligned with other organizational and / or
external factors.
Contingency Theory suggests that the companies to be effective, human resource
management functions must to fit with the company or external environment aspects in that
way to achieve the organisational goals.
Tesco and Asda implemented inside the organisation self-service till that helps the
cash assistants not to have big queues. Also employees that are helping near self-service can
provide a quick help to the customers after to have a good feedback. Through changing the
environment within the organisation both companies helped to avoid long stay in the queues
for customers and provided a suitable service that will bring to satisfied customers.
Transactional theory
The theory of transaction costs focuses on the termination of agreements between
organizations. These contracts facilitate trade between lenders and customers on the one
hand, and suppliers on the other. The concept of transaction costs in HR operations is that
Unilever's good structure is what achieves economic efficiency by reducing exchange costs.
The theory suggests that each type of transaction creates a linking cost for monitoring,
controlling and managing the transaction (Lee, 2021). Transactional HR actually manages
day-to-day administrative tasks, such as preparing employment policies, hiring and
processing new employees, and managing benefits management and other workplace
activities. Strategic HR, however, priorities and achieves management goals or planning
strategy for long-term goals of Unilever supported by HR measures.
Managers at Tesco monitors every activities being produced in respective business firm.
This allows them to effectively manage better productivity of the company and also have its
contribution towards better coordination and ultimately better productivity of the overall firm.
As by taking relevance of transactional theory, managers can pull coordinative operations and
can achieve desired goals to excel in business operations.