Hindustan Unilever Limited - Coursework Example

Hindustan Unilever Limited Executive Summary The study highlights HUL tea and ice-crème unit different problems. Due to these problems HUL tea unit workers’ productivity has reduced dramatically. The reason behind the decreasing productivity of the tea unit workers is low quality food and poor restroom facility. From the study, it has been observed that management can enhance productivity level of the tea unit workers through providing them quality food and paid rest room service. With the help of paid restroom service management can minimize discrimination among middle and bottom level employees. The ice-crème unit workers need travel allowances. To resolve this problem, management can start paid bus facilities for ice-crème unit workers. With the help of these three services, HUL management team can improve its financial stability. On the other side, enhance productivity level of the tea unit workers. Table of Contents Executive Summary 2 Introduction 4 Literature Review 5 Problem Identification of Case Study 10 Solutions and Recommendations 13 Solutions and Recommendations to the CEO and the Management Board 14 Solutions and Recommendations to the Managing Director 15 Solutions and Recommendations to the Trade Unions 15 Implementations 16 Conclusions 18 References 19 Introduction Cultural diversity is the new frame of modern organisational structure. Diversity management is a modern strategic concept, which is used to extend organisational sustainability for better future. Globalisation is the one of the important reasons, which has generated changes in organisational culture. With the help of new age technology organisations have increased its connectivity throughout world. Nowadays, every organisation has expanded its branches across the globe. Owing to which, every organisation has been recruiting employees from varied cultures. To improve productivity organisations have been using diversity and change management within organisational culture. Diversity management is a strategic program, which has used to improve workplace culture. In modern scenario, every organisation wants to make an exclusive identity. To fulfil this desire every organisation used varied strategies for improving product quality standard. The global organisations have moved to diversity management to cater the growing demand of consumers (Peter, 2008). Nowadays, every company has been producing different kinds of products to gain more customers attention. Likewise, Hindustan Vanaspati Manufacturing Company from Asian region has become a leading FMGC company in the present decade. Moreover, Hindustan Lever has become a household name in present scenario. The managerial heads of Hindustan lever has been usingcultural change and diversity management for strengthening its growth level. In the present scenario, due to certain discrepancies, Hindustan Unilever Limited has faced with challenges and problems. The objective of this study is to highlight HUL’s internal problems and solve it with help of diversity management, cultural change and organisational performance theories for strengthening its future growth (Peter, 2008). Literature Review According to Yeager & Nafukho (2011), organisations in the current highly dynamic environment are dependent on team performance within the workplace to attain its goals and objectives. However, seeking team efforts within a workplace is argued to be quite a difficult task, owing to the fact that the workplace in the present globalized era is composed of employees from diverse cultural backgrounds. Correspondingly, Yeager & Nafukho (2011) further stated that diversity is not limited to those factors that are observed within the workplace but also encompasses certain invisible characteristics, such as problem-solving skills, creativity and learning style among others (Yeager & Nafukho, 2011). According to Gupta (2013), there are numerous attributes of diversity, which include ethnic diversity, age diversity, and gender diversity and so on. Notably, these attributes of diversity within a workplace has been claimed to influence the performance of organisation to a considerable extent. Consequently, Gupta (2013) affirmed that it is thus essential for the organisations to assess the impact of workforce diversity in order to reap the benefits offered by hiring of diverse workforce and to deal with the related challenges in the most effective manner. Nonetheless, Gupta (2013) further provided few measures to deal with the challenges of workforce diversity. In this regard, team building, cooperation amid the employees within the workplace and employee participation has been propagated as few prominent measures to eliminate the challenges of workforce diversity (Gupta 2013). As per Mazur (2010), reflecting upon the social identity theory provides an in-depth understanding regarding the effective management of workforce diversity. As an illustration, Mazur (2010) also noted that employees from homogeneous cultures experience high level of satisfaction as well as cooperation while the possibility of arising conflicts is also minimal. However, the employees from heterogeneous cultures experience increase emotional and interaction barriers. In this regard, it has been affirmed that formation of subgroups along with social identity within a workplace is advocated to benefit the organisation from a diverse pool of human resources (Mazur, 2010). In the view of Kirton (2003) diversity management helps the organisations to avoid industrial disputes between top to bottom level management. In present scenario, diversity management and cultural change has equally linked to organisation’s overall performance. Moreover, to improve organisational performance managerial heads and other senior members have implemented varied kinds of strategies and changes. Every organisation mainly aims to serve quality products to maintain standard in the market place. On the other side, without proper financial support and other employee benefits workforce cannot improve its overall performance level and organisation cannot stand in market place. Internal dispute within top-to-bottom employees has also adverse impact on organisational performance level. With the help of proper strategic and change management, organisation can improve its performance and avoid disputes that tend to persists between top-to-bottom level employees (Kirton, 2003). Organisational culture is one of the most significant concepts in management slogans for last several decades. Every organisation has formed strategies to implement cultural change within workplace for better productivity. As per Aquinas (2006), the term organisational culture appeared during 1960’s as a synonym for organisational climate. During 1980’s “Corporate Culture” become common management slogan after the publication of several popular press books. Moreover, popular management journals have reflected interrelated themes regarding culture and its effect among organisational change (Janssens & Steyaert, 2003). According to Peter (2008), in modern scenario, cross-cultural or diversity management has the major discussion topic for every industrial relations specialist. On the other side, cultural practices include values, beliefs, and assumptions influencing organisational work style. In human resource management organisational culture and its practice has played an important part. To sustain in global corporate sector, every organisation can be seen to be recruiting employees from different cultural background (Peter, 2008). In conjunction, Ahmad (2012) noted that performance of an organisation is significantly influenced by the prevailing culture within it. Accordingly, strong culture has been argued to facilitate in seeking increased performance from individuals working in an organisation and vice-versa. Ahmad (2012) firmly stressed that organisational culture shares strong relationship with performance management domain of an organisation. The dimensions of culture, such as involvement, consistency, adaptability and mission are claimed to have substantial impacts on the changing cultural setting of an organisation (Ahmad, 2012). Hatch (2010) reflecting the Scheins theory of organisational culture noted that organization culture is the combination of values, understandings and beliefs shared by the workforce within an organisation. It has been claimed that these shared attributes of organisational culture exert significant impact when any changes with respect to these attributes are witnessed (Hatch, 2010, Sun, 2008). Trefry (2006) defines organisational culture as the collective programming of mind that distinguishes the members of one organisation from another. With the use of proper culture, an organisation can generate a strong support for its workforce. According to Trefry (2006), workers are the ultimate resource for any organisation. With the help of proper diversity management, an organisation can enhance productivity and motivation workforce. In recent times, due to organisational dispute most of the successful company struggling to sustain in a long run. Organisational culture has helped to improve employee behaviours towards job role. Therefore, organisational culture has developed a positive as well as negative impact among workforce and managerial leaders as well. In today’s scenario, leadership qualities of managers have created a positive effect between workforce and organisational culture (Bhatia, n.d.). To increase productivity of workforce, every organisations managerial head has implemented technological change (Janssens & Steyaert, 2003). Janssens & Steyaert (2003) stated that due to technological changes most of the organisation has faced difficulties. Most of the organisations in the developing countries are still following traditional pattern in their workplace. For that reason, most of the employees are faced with problem while working with modern technological setup. Most of the employees get de-motivated with the implementation of technological change in workplace (Janssens & Steyaert, 2003). On further note Janssens & Steyaert (2003) noted that change management has increased the gap between top-level managers and bottom level employees. Nowadays, to minimize this gap managerial heads has been using strategic planning among bottom level employee. For enhancing organisational growth, HRM arrange a counselling as well as training sessions for middle and bottom level employees. Hence, counselling and training session has been argued to be proven effective for motivating workforce and increasing productivity (Janssens & Steyaert, 2003). Cox (1994) stated that the way in which organisational culture might create competitive advantage facilitates individual interaction by enhancing scope of information processing to appropriate levels. The proper use of organisational culture has improved performance level of every employee. As per Trefry (2006), it is argued that widely shared and strongly held values enable management to predict employee reactions to certain strategic options thereby minimizing scope or undesired consequences. Shared organisational values, belief and assumption have enriched behaviour of top to bottom level employee. Whenever, managerial heads implement strategic changes in organisational level, HRM takes steps for motivating employee to accept transitions of organisation (Trefry, 2006),. As per Romanenko (2012), nowadays, to minimize competition in market place most of the organisation has chosen merger and acquisition. Due to merger a mixed cultural environment has been developing within workplace. Moreover, cross-cultural issues have hampered workforce productivity and stagnate growth level organisation. For that reason, it has been seen that most of the organisation cannot achieve goal during post-merger period. To avoid cross-cultural issues managerial heads have to be more active after post-merger period and provide extra attention for eliminating issues among bottom level employees (Romanenko, 2012). Problem Identification of Case Study As per the stated case, the Tea Innovation Unit within Hindustan Lever Limited (HUL) has suffered from financial problems. To tackle this problem senior manager has decided to cut down certain amount from employee retirement benefit. On the other side, employee of that unit has demanded change in workplace. For instance, the employees within the unit have recognised needs for upgraded canteen and rest room in workplace premises. On the other side, due to lack of financial support tea unit production has hampered which has eventually resulted in poor performance of the organisation. HUL has 17 tea factories across India. In the regional unit, main mixing of tea leaves is undertaken. Due to the use of obsolete machinery in tea units, production process has decrease and its brand popularity has also reduced among customers (Kirton, 2003). To resolve these problems senior managerial heads and HRM of the tea unit have arranged a meeting with employees. It is worth mentioning that financial crisis is brings hard time for any organisation. To sustain in market senior managers and HRM the tea unit have decided to take certain measures such as going for merger and acquisition with other tea company. The decision related to merger and acquisition has been anticipated to help the tea unit of HUL to improve performance level. On the side, in order to minimize organisational expense senior managers within the company have been of the view to cut down employees retirement benefit. However, as per the Factories Act 1948, senior managers and HRM are not allows to initiate or implement such changes that would affect the welfare of the employees (Kirton, 2003). Therefore, to improve the working conditions tea unit has merged with the Tea Factory HUL. On the other side, to minimise unit overhead expenses senior manager has reduce voluntary retirement amount of higher-level managers. The managerial authority has claimed that after taking voluntary retirement employee waste their money on alcohol or other bad practices Post-merger period also brought certain problems to the tea unit. Employee has demand upgraded canteen and innovative units. To resolve these two situations company would need financial support. The factory unions refused to pay more for workforce recreational activities. The factory union claim that this kind of extra benefit leads towards soaring company’s overhead cost (Kirton, 2003). As per factories Act 1948, company have to provide fund for workforce recreational activity such as rest room facility. Every employee has empowered with same rules and regulations. As per the case study, middle level managers have enjoying the benefits like AC rest room but the employees ate the operating level were not provided with any extra benefits. The company have to provide them rest room for better productivity. The bottom level employees have been involved in exerting more physical labour than middle level employees. Thus, the factory union have to think about bottom level employees’ improvement (Kirton, 2003). On the other “Kwality” ice crème unit which HUL had acquired has faced cultural problem. The ice-crème unit has implemented change management and introduced standard systems and policies. The standard systems and policies have introduced to provide assurance and workplace safety. As per HRM of HUL, work culture of Ice-crème unit was laid back. To strengthen the factory security setup management has implemented new security system. To manage the ice-crème unit, HUL has decided to shift it to tea factory (Kirton, 2003). The tea factory union has supported this decision and provided place for ice-crème. The company have begun to construct a newly equipped Tea factory premises for ice-crème production. This decision was associated to the fact that, ice-crème worker are provided with more benefit than tea workers and the ice crème manufacturing needs more hygiene requirement and different technology than tea. The merger of both these units has proved very beneficial for tea a well as ice-crème workers. Nevertheless, this merger has never proved a profitable for company because, later on ice-crème workers begun to demand more money for travel and food cost expanse (Kirton, 2003). In this case, employees of tea and ice crème unit were not provided with extra allowance. The Tea Factory was divided under three units. Every unit involved 20-25 year experience employees. To save their voluntary retirement plan benefit most of the employee has taken early retirement. The Tea Innovation Unit has merged with the Tea factory. The employee of Tea Innovation Unit has ensued British like hierarchy for that reason a cross-cultural issue has arisen within workplace. On the other side, bottom level employee has placed demand for canteen and rest room. To resolve this situation managerial head with HUL has decided to merge ice-crème unit with tea unit. Despite this step, managerial heads cannot minimize extra allowance demand workers (Bernarch & De Tom, 2009). In this regard, it can be said that managerial heads and HRM cannot resolve its internal issues. Tea unit production has hampered due to use of obsolete machinery in production process. On the other side, ice crème unit production growth has increased with the implementation of new age machinery. The failure of the authority within HUL to revise worker salary is biggest problem for tea and ice crème unit employees. Moreover, tea worker has worked under tight schedules for that reason most of the tea unit employee has demanded recreational rooms (Davidson & Fielden, 2004). Solutions and Recommendations The above highlighted problems of tea and ice-crème unit of HUL have resulted in minimizing its growth level. To strengthen the growth level of tea and ice-crème unit, HRM and organisational heads have to be more focus about the problems faced by these units (Prakash & Mishra, 1995). Nowadays, most of the multinationals has been facing this kind of problems particularly due to those kinds of problems; organisations are challenges with sustaining business profitably in market place. As per the case, HUL which has been a market leader in 2008 is struggling to maintain this position. Thus there is a greater need for the organisational authority to find appropriate solutions to deal with its internal problems. The workers of tea and ice-crème unit gas were demanding for food and travel allowance benefits (Robbins, n.d.). Subsequently the following sections entail the specific solutions and recommendations for each unit. Solutions and Recommendations to the CEO and the Management Board To resolve the problem associated with workforce requirement for quality food, the CEO should involved in negotiating with the managing director regarding the issues raised by the trade unions and the employees in the two different units. The CEO should investigate the matter carefully prior to reaching any decisions or taking measures with respect to the concern matter. The CEO should not only think from the perspective of the company but it is equally important to view the matter from the lens of the employees. Considering the matter from two different perspectives would facilitate the CEO to make sound decisions. In addition, the CEO should estimate the cost-benefit analysis of the identified solution or the decisions for ensuring that the decisions made does not have the adverse impact on the performance of the company while it should be capable of satisfying the needs of both employees and organisation altogether. Besides, the CEO of the company should strive to develop an organisational culture wherein every individual working within the organisation is recognised and valued. Such initiative of the CEO would facilitate in creating sense of belongingness amid the workers within the different business units. On the other side, the CEO to enhance connectivity among top to bottom level managers and employee within HUL have to implement new age communication gadgets for proper update. In this regard, HRM can meet workers weekly with and take their feedback about work. To increase the productivity and commitment level of employees the HRM can provide counselling on a weekly basis and motivate them for enhancing interest for work (Kar & Dhar, 2011). To resolve this problem, the CEO can reduce shift timing of every worker. In this way, workers can balance their personal and professional life in a better way. The CEO should decide to provide bus facility. The bus facility would save time of the workers (Janssens & Steyaert, 2003). Solutions and Recommendations to the Managing Director Similar to the above context, the managing director should also consider the negotiation with the trade unions for deriving understanding regarding the demands of the employees. After reviewing the demands of the employees in the two different units, the managing director should communicate with the CEO of the company regarding the concerned matter and brief the CEO about the intensity of the problem faced by the company (Singh, 2014). The managing director should evaluate the various alternatives which can be helpful to deal with the challenges and should convey the same as well as the best option to the CEO of the company. As per the case, it has been seen that the communication level between senior managerial head and bottom level employee of HUL is not so strong. For that reason, problem in the tea unit has taken massive shape (Visagie & et. al., 2011; Shen & et. al., 2009). To overcome this situation the Managing Director should improve connectivity level with middle and bottom level employees. Thus, with the help of proper communication the issues can countered effectively. In addition, to recover the productivity level the managing director of HUL should arrange a meeting with factory union’s member and settle this issue as soon as possible facility (Management Association, 2014; Siapera, 2010). Solutions and Recommendations to the Trade Unions The trade union should collect the response of the employees and their concern which they would be presenting before the management of the company. The trade union should negotiate with the management without disrupting the operation of the company and should ensure that the demand made to the management are not ambiguous or beyond the ability of the company to suffice those demands. The trade unions should respect the decisions of the company should work towards the accomplishment of both personal and organisational goals. Implementations The management of the tea and ice-crème unit in HUL should provide quality food in cafeteria, paid rest room and paid bus facility to meet the demands of workers at operational level and to enhance productivity as well as motivation level of the workers. As per the case, it has been seen that due to low quality food workers has loss their productivity level and desire for work (P, 2009). Introduction of quality food in affordable will enhance workers’ productivity as well as interest for work. From the case, it has been noticed that most of the tea workers belongs to Bengali culture. Moreover, Bengali people have known for their good food habits. To sustain on earth every human being need food and shelter. Therefore, introduction of quality food in the tea unit cafeteria would improve productivity level workers. On the other side, reasonable price would also minimize the financial crisis currently faced by the management (Cox, 1994). The paid rest room service would help to minimize discrimination among middle and bottom level employees. It has been seen that most of the bottom level workers have complaint about middle level employees for sharing amenities with them. With the help of paid rest room service, the management can gain financial support (McKanna, 2000). On the other side, the implementation of the paid rest room facility would have negative impact among workers as well as management in the near future. To enjoy the paid rest room facility, bottom level employees can demand for extra wage from management. This way, the management again suffer from financial crisis. In this way, management can minimize discrimination among middle and bottom level employees (Ayer Company Publisher, 1972). The ice-crème unit workers have been demanding for travel allowance from the management. To overcome this problem, management can provide paid bus service for ice-crème unit employees. With the implementation of bus facility, management can enhance workers’ productivity (Sinha, 2004). On the other side, it might be thought to be time consuming for workers as well as for the management. This bus service would cut down absenteeism rate from the workplace. It has been seen that most of employees cannot manage to come workplace in time due to inadequate transportation service. The bus facility will establish a strong communication between the workers and the management in future. Through this bus service management can also improve its financial condition (Sinha, 2004). At the end, it can be said that quality food service, paid rest room and bus facility altogether can improve financial condition of HUL. On the other side, productivity level of the workers can be increase through implementing quality food service, paid rest room and bus facility. All three services will increase the production level of the tea and the ice-crème unit (Robinson, 2009; Aquinas, 2006). To minimize industrial disputes senior manager and HR managers should build strong communication devices. HR managers have to create a friendly relation with every worker. With the help of friendly relation, HR managers can motivate workers, which will enhance productivity level of workers. On the other side, strong bonding between workers and top-level managers would eventually result in minimizing industrial disputes or problems. Effective communication from top-to-bottom level employees would enhance productivity level of the organisational. As per the case, the tea unit in HUL has faced financial crisis due to lack of interaction among top to bottom employees. Developing a strong bonding among top level managers with bottom level employees would facilitate HRM improve communication process (Aquinas, 2006; Luthans & Doh, 2005). Conclusions From the above discussion, it can be comprehended that, HUL can improve its tea unit production level through implementing various paid services like restroom and bus facility. With the help of quality food management can improve worker productivity level. On the other side, through these paid services organisation can enhance its financial conditions more positivity. Quality food in affordable price can be considered to be beneficial for management as well as for workers. Effective communication always improves workers’ productivity level and generates a positive attitude among them. With the help of effective communication, pattern management can reduce industrial disputes within organisation. In this regard, it can be said that HUL senior managers implement communication and create friendly relation with worker for better improvement in production level. On the other side, HRM have to create friendly relations with bottom level workers. With the help of friendly relation, HRM can provide advice and motivate employee to improve performance level. On the other side, proper diversity management can reduce cross-cultural issues within organisation. Presently, HUL tea and ice-crème unit has been suffered from cultural issues. 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