Organizational Behavior Analysis of Unilever Vietnam: A Report

This report provides a comprehensive analysis of Unilever Vietnam's organizational behavior, examining the interplay of culture, politics, and power within the company. It delves into the definition and influence of organizational culture, exploring various models such as Handy's model, Johnson and Scholes, and Hofstede's cultural dimensions. The report also addresses the impact of politics and power dynamics within the organization. Furthermore, it investigates content and process theories of motivation, including Maslow's hierarchy of needs and Adams' Equity Theory, applying these concepts to the context of Unilever Vietnam. The study concludes with a summary of findings, offering recommendations based on the analysis, and emphasizing the relationship between culture, politics, and motivation to provide a holistic understanding of the organization's dynamics. The analysis aims to provide insights into the factors that influence employee behavior and overall organizational effectiveness.

Introduction:................................................................................................................................................ 1
A. The influence of culture, politics and power on the behaviour of others in an
organisational context:.............................................................................................................................. 1
I. Influence of culture:........................................................................................................................... 1
1. The definition of organization culture:..................................................................................................... 1
2. Culture theories:................................................................................................................................................ 4
2.1. Handy model of organizational culture:............................................................................................... 4
2.2.Johnson and Scholes:..................................................................................................................................... 6
2.3 Hofstede:............................................................................................................................................................ 7
II. Influence of politics:........................................................................................................................... 8
1. Definition of politics:........................................................................................................................................ 8
2. Definition of organizational politics:......................................................................................................... 8
III. Influence of power:............................................................................................................................ 9
1. Definition of power:.......................................................................................................................................... 9
2. The Need for Power:...................................................................................................................................... 10
3. Types of Power:............................................................................................................................................... 10
IV. Unilever VietNam corporate culture, politics and power:...................................................11
1. Unilever VietNam corporate culture applies Hofstede:...................................................................11
1.1. Power distance:...................................................................................................................................... 11
1.2. Uncertainty avoidance:....................................................................................................................... 13
1.3. Individualism – Collectivism............................................................................................................. 17
1.4. Masculinity – Femininity:................................................................................................................... 19
1.5. Long term orientation:........................................................................................................................ 21
2. Unilever VietNam applies Task culture:................................................................................................ 21
3. Unilever VietNam politics and power:................................................................................................... 22
B. Content and process theory of motivation:.............................................................................. 23
I. Definition of motivation:................................................................................................................ 23
II. Content theories of motivation:................................................................................................... 25
1. Maslow’s hierarchy of needs:..................................................................................................................... 25
2. Apply Maslow’s hierarchy of needs to Unilever VietNam:.............................................................26
III. Process theory of motivation:...................................................................................................... 28
1. Adams' Equity Theory:................................................................................................................................. 28
2. Apply Equity theory of motivation: Adams to Unilever Vietnam:...............................................29
Relationship between culture, politics, and motivation:.............................................................29
Summary and Recommendation:........................................................................................................ 30
Conclusion:................................................................................................................................................. 32
Reference list:............................................................................................................................................ 33
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Introduction:
Organizational behavior is the study or evaluation of individual behavior within an
organization. It is commonly referred to as the interface between the organization and
individual behavior. The organization chosen for this report, "Organizational Behavior," is
"Unilever Viet Nam." The study's goal is to understand the many elements that influence the
behavior of the organization as well as the individuals inside the organization. The content
and process theories of motivation will be analyzed in this study to demonstrate how they aid
in the attainment of goals and objectives. It is critical for a company to arrange its staff into
teams and groups to guarantee greater performance. The many concepts and philosophies of
organizational behavior will be applied to the organization in order to measure their effect.
The study will be accomplished via a deep appreciation of working as part of a team in order
to get a broad understanding of persons and organizational behavior.
A. The influence of culture, politics and power on the behaviour of others in an
organisational context:
I. Influence of culture:
1. The definition of organization culture:
Organizational culture is described as the shared values, attitudes, and practices that
distinguish a company. It's your company's personality, and it has a big impact on
how happy your staff are.
A prevalent misperception is that core values, employee perks, and other such benefits
form the foundation of a good corporate culture. In actuality, your fundamental values
should lead your corporate culture, but they should not be an all-encompassing
endeavor, and benefit packages should be a result of your conscious efforts to
establish a pleasant workplace atmosphere.
A strong business culture will attract the appropriate individuals for the position and
keep them engaged as workers. According to a recent Glassdoor survey, 77 percent of
individuals would consider a company's culture before applying for an open position.
Perhaps more importantly, 56 percent consider an organization's business culture to
be more significant than salary.
(Heinz, 2021)
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Types of organizational cultures:
Person Culture A person culture is one in which horizontal structures are
most prevalent. Individuals are seen as more valuable than
the company itself. This can be challenging to maintain
since the company may suffer as a result of conflicting
persons and objectives. (Cancialosi, 2017)
Market Culture Market cultures emphasize competitiveness, performance,
and "getting the job done." (Cancialosi, 2017)
➔ Person culture and market culture are strongly influenced by how members
of an organization do business, treat workers, customers, and the larger
community.
Adaptive Culture Adaptive cultures encourage change and are action-oriented,
enhancing the chances of long-term survival.
(Cancialosi, 2017)
Adhocracy Culture Adhocracy cultures are dynamic and entrepreneurial, with
an emphasis on taking risks, innovating, and being the first
to accomplish things. (Cancialosi, 2017)
➔ The degree to which decision-making independence, the development of
new ideas, and personal expression are permitted are critical components of
adaptive and adhocracy cultures.
Power Culture One leader controls the strategy and makes quick choices in
power cultures. This sort of culture necessitates a significant
reverence to the in-charge leader. (Cancialosi, 2017)
Role Culture Role cultures are where functional structures are
established, where people know their tasks, report to their
superiors, and place a premium on efficiency and
correctness above all else. (Cancialosi, 2017)
Hierarchy Culture Hierarchy cultures, like role cultures, are highly organized.
They place a premium on efficiency, consistency, and doing
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things correctly. (Cancialosi, 2017)
➔ The movement of power and information through the organizational
hierarchy and system is a feature of power cultures, role cultures, and
hierarchy cultures.
Task Culture Teams of experts are created in a task culture to address
specific challenges. Due to the significance of the work and
the number of small teams involved, a matrix structure is
popular in this sort of culture. (Cancialosi, 2017)
Clan Culture Clan cultures are familial in nature, with an emphasis on
mentoring, nurturing, and doing things together.
(Cancialosi, 2017)
➔ Task cultures and clan cultures both encourage devoted personnel to work
toward collective interests.
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2. Culture theories:
2.1. Handy model of organizational culture:
Charles Handy has been a prolific writer on the subject of management and the value
of culture. He also created a model based on four distinct sorts of cultures, each with
four distinct features Classes of Culture. Civilisations can be organized around Power,
Roles, Tasks, or Person, according to the theory. These are related with four Greek
mythology deities and are rendered extremely graphic in the author's book The Gods
of Management.
(Handy, 1996)
❖ Role culture: This is often characterized by organizations with a high degree
of formalisation and centralisation, such as bureaucracies or huge stable
enterprises. There are well-defined formal norms and processes, as well as a
clearly known and strictly enforced organizational structure. Employees
benefit from such a culture because they know exactly what is expected of
them, and there are well-defined protocols and procedures to follow. In a
changing environment, such organizations have the disadvantage of being
significantly less adaptable and nimble. This may not be a big issue for
particularly large organizations, but in certain cases, extremely huge
organizations have failed due to their failure to adapt. (Handy, 1996)
❖ Task culture: This type of organization has a high degree of centralization but
a low level of formalization. They are usually adaptable and results-oriented,
and they frequently operate on a project basis. Specialist building businesses
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or service firms such as architects are potential examples. They thrive in a
competitive setting, but they do necessitate individuals that are very
collaborative and communicative, as well as self-motivated. Team dynamics
are likely to play a large role in the overall success of such a culture, which is
why it's critical to understand how multicultural teams might affect
organizational outcomes. It is not always the best setting for people who want
structure and routine in their workday. (Handy, 1996)
❖ Power culture: A highly formalized organization with no centralization, such a
company is likely to have a dynamic CEO who connects directly with
employees and expects fast and agile replies. Entrepreneurs and tiny nimble
enterprises capable of operating in a volatile environment are often connected
with this culture. It's crucial to distinguish between small family businesses
and entrepreneurial enterprises, as they're not always the same thing, and some
family businesses may become highly introspective, making it tough to
modify their working methods. The positives of a power culture are that an
organization is quick and responsive, but the negatives are that it may be tough
to work for someone who has strong beliefs and expects others to alter their
minds rapidly. (Handy, 1996)
❖ Personal culture: This is a culture that lacks formalized centralization and is
likely to be centered on a self-directed and status-driven work environment.
This sort of general culture benefits professional services organizations in
stable and predictable contexts like accounting or insurance. Individuals
function on a self-motivated basis and require no formal supervision or
structure, but it may be difficult to marshal people in such a culture since they
are accustomed to being self-directed and respond negatively to even minor
changes in rules and procedures. (Handy, 1996)
Handy's framework is also connected to the concept of visual representations of
various cultures, which aids in understanding how different forms of organizational
culture physically present themselves in overall organizational structure and
hierarchy. Handy recognizes that culture will most likely continue to be shaped by the
personality and/or preferences of individual managers or leaders in small
organizations, but that culture will become self-replicating and self-reinforcing in
bigger organizations. Critics of the concept argue that it has to be updated in today's
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more flexible workplaces, where traditional career paths and organizational structures
are less relevant. (Handy, 1996)
2.2. Johnson and Scholes:
Johnson and Scholes established the cultural web paradigm. It's a realistic method for
determining the current condition of an organization's culture and comparing it to the
state that the organization wants to achieve in the future. The gap analysis between
the existing and prospective states is then used to build a strategy for changing
organizational culture.
(Scholes and Johnson, 2002)
The approach enables individuals inside the organization (or even outside the
organization if they have engaged consultants to provide a fresh perspective) to ask a
series of questions regarding the sorts of stories presented in the organization, what
symbols signify and how workers understand them, as well as characteristics of
structure, authority, control, and rituals and routines. Culture is self-reinforcing, and if
people continue to tell tales or support systems that harm organizational culture, a
shift in approach is required. However, a variety of minor incremental adjustments
may be made to establish the groundwork for change, such as presenting more
positive tales rather than negative ones, or projecting a professional or creative image
by encouraging staff to wear uniforms or adhere to a dress code. These elements can
be used in conjunction to determine organizational culture and subsequently alter or
adapt it. (Scholes and Johnson, 2002)
To effect this shift, it is necessary to first map the current condition of the
organization and then pose questions about how the organization would want to be in
the future. What parts of organizational behavior, for example, are not favorably
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contributing to the attainment of organizational strategy? Do specific organizational
activities need to be strengthened or eliminated? Addressing one component of the
time and making change less uncomfortable can help to enhance the feeling of
employees being part of the change process, reinforcing and embedding it and
assisting in the permanent change of culture. (Scholes and Johnson, 2002)
2.3 Hofstede:
Geert Hofstede is well-known for his cultural dimensions model, which was first
introduced in the 1980s and initially identified five (since revised to six, the most
recent being indulgence vs. restraint) components of national culture.
(Hofstede, 2017)
After compiling a massive quantity of data from a variety of nations, Hofstede
discovered that there are ingrained cultural norms and behaviors that impact
individual behavior. Respect for authority, willingness to take chances, and belief in
individuality or collectivism are just a few examples. The Hofstede Institute has
continued to collect data on national culture as well as the behaviors of individuals
and organizations, which appears to support these broad classifications. These are
crucial for comprehending how people from various cultures are likely to react to
certain circumstances. As with organizational culture, it is not an exact science, and
the categorisations are generalizations, but they have been repeatedly shown to be
relatively accurate as a starting point. Critics of Hofstede point out that he began
collecting data from a small number of secondary sources, and that the data was sold.
However, the fact that they are still being gathered and evaluated against a variety of
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cultural situations, as well as updated to reflect current trends, means that they are still
extensively used as a measure of country culture and expected organizational and
individual reaction.
(Hofstede, 2017)
II. Influence of politics:
1. Definition of politics:
Politics is the process of creating a common choice for a group of individuals, such
that, a decision that applies uniformly to all members of the group. It also entails one
individual using power over another in order to influence their conduct. More
specifically, it refers to obtaining and executing positions of organized government
over a human society, notably a state.
A political system is a framework that determines permissible political techniques in a
particular community. Politics is practiced at many different social levels, ranging
from clans and tribes in primitive communities to sovereign governments. Informal
politics is defined as the formation of coalitions, the exercise of power, and the
protection and advancement of ideas or goals. Formal Politics includes political
parties, public policy, including arguments on war and foreign affairs.
(Kangal, 2021)
2. Definition of organizational politics:
Informal, unofficial, and often behind-the-scenes efforts to sell ideas, influence an
organization, increase power, or achieve other specific goals are referred to as
organizational politics. Politics has existed for millennia. Politics, according to
Aristotle, comes from a multiplicity of interests, and those opposing interests must be
settled in some way. When interests are fundamentally incongruent, "rational"
decision making may not suffice, and political behaviors and influence strategies
emerge.
Organizational politics refers to intentional behaviors that are designed to enhance or
protect a person's influence and self-interest used professionally. The risk is that
unscrupulous employees involved in organizational politics might put their own
interests above that of their employer. Political behavior is outside one's specified job
requirements. The behavior requires some attempt to use one's power bases.
(Kangal, 2021)
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Function of organizational politics:
 Overcoming personal inadequacies: Even in the best-managed organizations,
mismatches occur among managers who are learning, lack necessary training and
abilities, are overqualified, or lack resources. Organizational politics provide a means
for overcoming these deficiencies and completing the task at hand. There are
numerous personnel deficiencies that result in mismatches between individuals and
jobs in companies. (Kangal, 2021)
 Coping with change: Changes in an organization's environment and technology
frequently occur faster than the organization's ability to reorganize. Unanticipated
incidents occur even in organizations recognized for meticulous preparation. People
and resources must be shifted rapidly to meet unforeseen difficulties. Managers
require ambitious, problem-solving managers to lead the crisis response.
(Kangal, 2021)
 Channelizing personal contacts: In bigger companies, it is nearly difficult to know
everyone in a position of power. Managers, on the other hand, must exert influence on
employees throughout the business. The essential access may be obtained through the
political network. (Kangal, 2021)
 Substituting for formal authority: Managers may employ political behaviour to
preserve operations and accomplish task continuity in situations when formal
authority breakdown would otherwise cause issues. In organizational politics, Henry
Mintzberg established various functional positions. Political activities can be used to
prevent a person's official authority from failing or failing to apply. (Kangal, 2021)
III. Influence of power:
1. Definition of power:
In 1957, Dahl stated, "My intuitive idea of power is something like this: A has power
over B to the degree that he can induce B to do something that B would not otherwise
do." This fundamental concept of power has persisted over time: power is simply
defined as the ability to have things done the way one wants them done. This means
that A has the ability to influence B's conduct (Zalesnik, 1989), possibly against B's
wants and ideals. A may be required to apply force against any or all of B's previously
existing forces and restrictions. This can lead to conflict, with varying results and
effects.
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Power and its accompanying politics have an impact on every organization.
Individuals are more concerned with power concerns than with the organization's
bottom line. In the lack of adequate devotion, organizations suffer from bad health
and low production. In reality, being committed to the company is not enough to
ensure its success; it is also necessary to be committed to a set of management and
ethical ideals. (Zalesnik, 1989)
2. The Need for Power:
Power is desired and sought for as a result of conflict, failure, and success. Some
people consider this to be natural, while some psychoanalysts believe that power
seeking is detrimental to psychological growth. However, other psychoanalysts
believe that, under certain conditions, power may really help to shape an individual's
personality (Zalesnik, 1989).
Power is desired to control and shape the destiny of departments and organizations,
the results of interpersonal confrontations, and personal security and success. The
more the disarray or disagreement in an organization, the greater the desire for
authority. People react to dread in a variety of ways: some surrender, others escape
(absenteeism and turnover), and some fight back.
The urge to have an influence on others, as well as the desire for power, can be
pursued responsibly in order to do good for the organization. Not all power seekers
are neurotic, tyrannical, or unstable individuals (though some clearly are). Power
seekers are capable of being effective, well-adjusted, and highly driven (McClelland,
1982). Power, it turns out, is the ultimate instrument for human control, one that only
the mentally healthy can properly wield. As a result, appropriate methodologies and
criteria must be devised for its successful implementation in organizational contexts.
An individual's sense of efficacy, success, and usefulness is a source of power and
confidence in and of itself. The essence of the subjective perception of power is a
person's sense of contribution and that what they do makes a difference. Furthermore,
self-esteem and self-worth are sources of strength inside oneself. This source can be
recognized as a critical contributor to the desire and acquisition of all power bases. In
other words, some people crave authority in order to boost their own self-esteem,
which is not always an unbalanced goal (Zalesnik, 1989).
3. Types of Power:
Organizational power, according to Etzioni and Lehman (1980), varies depending on
the tools used to control members. Such means might be physical, material, or
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metaphorical in character. According to compliance theory, organizational authority
can be coercive, remunerative or utilitarian, or normative. Coercive power is used to
manage lower-level actors by using force or the threat of physical punishment. Power
systems based on coercion are ubiquitous in prisons and militaries.Organizational
representatives use extrinsic rewards to manipulate lower-level members in
remunerative power (also known as utilitarian power) structures. Salary, commissions,
employment stability, and other benefits are among it. The distribution of symbolic or
intrinsic incentives to exercise control over lower-level participants constitutes
normative power. Churches, professional organisations, and schools are examples of
normative power structures (Etzioni and Lehman,1980; Hyle,2006; Lunenburg, 2012).
There are two methods to obtain normative power. The first, known as pure normative
power, requires organizational representatives to manage views of respect and
prestige while employing ritualistic symbols to gain conformity. The second, also
known as social power, relates to the influence that peers have on one another's
conduct. Because of how they are employed by the organization to manage
participants, both pure normative and social powers are classified as normative
powers for organizations. Organizational representatives can exert pure normative
power directly; however, social power needs representatives to manage the informal
group in such a way that the peer group governs its members in a positive manner
(Etzioni and Lehman, 1980).
IV. Unilever VietNam corporate culture, politics and power:
1. Unilever VietNam corporate culture applies Hofstede:
1.1. Power distance:
According to Hofstede, Vietnamese culture has a relatively high power distance index
(Hofstede, 2001). A centralized decision structure and a strong concentration of
authority are frequent patterns in Vietnamese businesses. Senior managers at the
highest levels of the company make the most significant choices. Unilever has a
towering pyramid of hierarchy, which is normally linked with a centralized decision-
making structure, as a huge global organization with thousands of direct employees
(in each subsidiary) and many distinct departments and divisions. The huge number of
hierarchical levels commonly observed in Vietnamese enterprises makes it relatively
favorable for Unilever to develop such a towering organizational structure. Working
in such a centralized firm, Vietnamese workers are likely to accept complex processes
for reporting and receiving instructions, obey their superiors, and feel normal despite
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