This is a study on the strategic public presentation direction followed by one of the taking transnational company. The study highlights the importance every bit good as the impact of the public presentation tools on the ‘overall public presentation ‘ of the company.
An effort has been made to understand and measure the effectivity of the public presentation program in actuating the employees and guaranting that their operations finally contribute to run intoing the strategic aim.Unilever is one of the greatest consumer goods fabricating company in the universe. It is a consumer goods fabricating giant which serves to run into the demands of 1000000s of Black Marias universe broad. The broad scope of trade names are intended to fulfill different types of consumer wants like nutrient, wellness, hygiene, personal beauty, nutrition, homecare and many more.
ABOUT THE Company
The history of unilever takes back us to the 1890 ‘s when William Hesketh ( Lever bros laminitis ) scribbled down his findings on his new invention- Sunlight soap. This astonishing merchandise helped the family of Victorian England in advancing spruceness and hygiene.Subsequently, in the twelvemonth 1930 British soap shaper Lever bros and the Dutch oleo manufacturer Margarine Unie merged their entities to make the Unilever.Now it has grown into a major transnational company holding 163,000 employees, 400 different brands,14 sections and an expanded gross revenues market section covering about 170 countries.
Appart signifier this the company besides extended its around the clock help desk to its hundred thousand of distributers and providers.The company maintains 264 fabrication centres all over the universe engaged in the uninterrupted procedure of raising the criterion and public presentation of its merchandise to an international degree. Twenty five elect trade name of the company contributes seventy five per centum of its entire revenue.Knorr, Lipton, Slim fast, Bertolli, Cif, Comfort, Omo, Radiant, Axe, Dove, Lux, Lifebuoy, Ponds, Sunsilk, Vaseline are some of the top trade names of the company.It has established itself as a ‘LEADER ‘ in about every domains in which it operates because of its trade name power. The companies ‘ mission is to spread out the activities by introducing and implementing new concern methodological analysiss by downsizing the inauspicious consequence on environment at the same clip.
WHAT IS STARTEGIC PERFORMANCE MANAGEMENT
Strategic public presentation direction dressed ores on the assorted waies to be followed to accomplish high employee satisfaction, public presentation efficiency and increased stakeholder value.Performance measuring procedure evaluates the developments made towards the attainment of the established ends whereas public presentation direction makes necessary add-ons of some cardinal facets such as communicating and efficient motions to these developments to accomplish the predefined ends ( Bourne, Franco and Wilkes ( 2003 ) ) .
The importance of public presentation direction
Performance direction is a uninterrupted procedure of mensurating and measuring the existent results and comparing the same with planned results. It emphasis the demand for uninterrupted improvisation by keeping a strong communicating web between the managerial force ‘s and subsidiaries.“ Performance direction system emphasizes the nexus between single behaviour and organisational schemes and ends by specifying public presentation in the context of those ends ” ( Aguinis & A ; Pierce, 2008, Bankss and may 1999 ) .For effectual monitoring of the advancement made towards accomplishment of the organisational end, it requires equal feedback from the employers and every bit good as the employees.
And public presentation direction ensures maximal feedback. Application of these critical information derived from their feedback for measuring the overall public presentation should be considered as an effectual technique refering public presentation affairs ( Anstey et al. , 1976 ; Fletcher 1993 )However it should be noted that public presentation direction is different from public presentation assessment. Performance appraisal merely forms a portion of public presentation direction. “ Appraisal is an inconsistent and basically subjective procedure ” ( Grint 1993 ) .Performance assessment provides a systematic and comprehensive model for measuring employee public presentations.
It is concerned with assessing and developing employee public presentation. The most indispensable ingredient of public presentation assessment is to do certain that the employees give a good public presentation and they are rewarded satisfactorily.This study besides deals with the public presentation assessment technique adopted by Unilever for upgrading the criterion of public presentation of its people.To get down with, it is ever of import to associate public presentation assessment technique with the organisational aim. In other words, there is:
“ A demand to link the strategic nonsubjective with public presentation marks ”
Connecting the public presentation assessment techniques with the preset ends of the company holds the key to efficient strategic public presentation direction.The premier aim of Unilever is ‘Meeting mundane demands of people everyplace ‘ .
And with stiff competition from other planetary challengers it becomes indispensable that the company follow effectual public presentation rating tools and techniques.
The scorecard attack
The scorecard attack is one of the public presentation direction tool that the company has been utilizing for old ages. It is a really of import technique which helps the managerial forces ‘s in change overing the entities mission and schemes into good structured public presentation steps. “ The balance scorecard: Measures that thrust public presentation ” ( Kaplan and Norton1992 ) .The scorecard was foremost applied by Unilever River Plate Argentina and Unilever Australia in the twelvemonth 1995.The Unilever is cognizant of the fact that the balanced scorecard offers a common platform for the full organisation for public presentation rating and demands a systematic attack for transporting on the companies twenty-four hours to twenty-four hours and long term activities expeditiously.The Unilever scorecard attack can be broken down into chiefly three phases.Phase one starts with the building of balance scorecard for the wining twelvemonth on the footing of the current twelvemonth ‘s information.
The phase involves specifying of the public presentation marks which must be both come-at-able and mensurable. Specific countries need to be identified to roll up the needed information.The 2nd phase stress on around the twelvemonth monitoring procedure. Information is gathered on the present public presentations and they are compared against planned marks at specific clip intervals.
Such comparing pinpoints countries which has the range for farther betterment. And encase if the existent public presentation exceeds the budgeted public presentation it highlights the demand for alteration of the criterions.The 3rd and concluding phase is performed at the terminal of the twelvemonth. The overall public presentation is compared against the criterions and assessed and these information ‘s are so used to fix the scorecard for the following twelvemonth. Capability appraisal is conducted on each of the specific countries identified in the earlier phase.The appraisal is done to find if these countries were capable of run intoing the prescribed public presentation criterions. And if public presentation criterions are non satisfied so necessary actions are suggested to better the state of affairs.On completion of the three phases it was found that certain betterments need to be made to heighten the quality of public presentation.
The suggestion for betterment was accepted by the members of the company. An debut brochure ( accompanied by a drumhead card ) was generated for the senior managerial forces. A more comprehensive public presentation usher was offered to the intranet users and equal preparation was besides provided to them.Application of the consequencesThe most of import measure in the integrating phase was to link the corporate centre demands with consequences obtained from the balanced scorecard. A qualified facilitator was called upon to work aboard the ‘centers leading group ‘for specific clip period of three months.The corporate centre construction of Unilever is as shown below:
*As per the study of Steve sixpence, Executive Director, European Centre for concern excellence, Brigitte Tantawy- Monsou, D.
Biochemistry, DEA of Food Technology, VP Organizational Effectiveness, Unilever Strategic Centre, Unilever N.VSuch an operation was able to give many fruitful consequences. One of the major accomplishments was the coevals of ‘Corporate centre scorecard ‘ . After the completion three months clip it was found out that scorecard attack had successfully been able to do the employees concentrate on the marks and schemes.
They were able to take effectual determinations sing optimal allotment of resources. The corporate Centre became more clients centric. At the beginning of the balanced scorecard procedure, merely three sections were included. But because of the successful consequence it was able to give, at the terminal of the full procedure all 14 sections had developed their ain scorecards.So the balanced scorecard attack was able to supply a figure of advantages to the company and raise their criterion of public presentation.
The kernel of squad public presentation
Before discoursing the importance and the manner in which squad public presentation are encouraged and evaluated in the company it is necessary to happen out the existent significance of squad public presentation. Harmonizing to Hackman the squad public presentation consist of three of import constituents, they are: – ( I ) Whether the squad is capable of carry throughing the marks. ( two ) Whether the employees are satisfied of being a portion of the squad and whether they are loyal in their attempts towards attainment of squad marks ( three ) Whether the squad is capable of following different alterations to increase the effectivity of public presentation. The public presentation direction should do the workers understand the demand to work in harmoniousness with their fellow workers.It is the responsibility of the company to transfuse a sense of squad spirit and harmoniousness amongst the employees. It is really much of import to do certain that the employees work every bit squad. Proper coordination of the operations of employees at assorted degrees of section is really much necessary to ease smooth seafaring of the organisational operations.
There is a demand to promote single committedness to team public presentation in organisational ends. Lack of coordination, communicating and personal disfavors among employees can make hinderances in the way of achieving organisational ends. So it should be seen that such constrictions are identified and eliminated at the earliest possible degree.For the intent of doing the employees aware of the importance of teamwork assorted instruction and preparation plans are being followed by the company. These preparation plans are conducted to do the people aware of their functions and duty and carry their responsibility delligently.
The plan includes conducting of mock drills, acquire together maps during weekends so that they become more familiar with one another. The trainers try to educate and convert the kernel of keeping strong communicating nexus between the employees and the directors and amongst the employees themselves. Feedback, mentoring and developing play a polar function in heightening employee public presentation. After establishing the preparation plan the trainers collects necessary feedback from the employees to do certain that their coaching has been successful.For measuring squad public presentation the same balanced scorecard attack is being applied ( already explained in the beginning ) .
The marks shall be fixed sing assorted public presentation standards. A squad program should be formulated and it shall incorporate the thoughts of all the squad members. The manner in which the squad operates towards the marks are closely studied and evaluated. It is necessary that the public presentation of the employees be monitored to find whether they are able to fulfill the pre-established criterions or non. If the consequences are satisfactory it means that the employees have been rather successful in working as a squad and their combined attempts were able to present the expected benefits.Harmonizing to Marks et Al ; 2001, the success of squad public presentation is wholly linked to the capableness of the group to improvize themselves from clip to clip. In short dynamism holds the key to success.
A reappraisal meeting of squad ‘s public presentation evaluates and surveies the manner in which the squad was able to accomplish the mark through joint operation and through their well sketched squad program. As a compliment to their satisfactory public presentation, squad awards shall besides be presented. The squad awards act as acknowledgment of their joined attempts and it shall actuate them towards better public presentations in the hereafter.
The awards can be either fiscal or otherwise. Offering a fillip schemes to the squad members if they are successful in run intoing the public presentation marks, declaring the best squad awards, carry oning societal events to ease the victors are some of the methods that can beef up the squad spirit.In this regard it should be noted that one of the of import facet of public presentation direction is that, it communicates to its employees whether their public presentations were up to the grade and whether their responses towards the alterations have been satisfactory or not..
Monitoring the squad public presentation
Monitoring is procedure of consistently garnering ; measuring and using informations ‘s to clear employee grudges and guaranting consensus.Each and every action of the employees in the squad is purely monitored by the directors and necessary recommendations are made from clip to clip to better the squad public presentation. Adequate feedback should be collected from both employees and higher-ups.
Performance reappraisal technique
Performance Development Planning ( PDP ) : – It is one of the public presentation ratings and monitoring system followed in Unilever.PDP links the single ends with the organisational nonsubjective thereby actuating the employees by making a sense of ownership. It monitors the workings of the employees and provides valuable feedback sing the quality of public presentation and competency. In this manner the company is able to aline the public presentation marks with the strategic aims. Performance Development Planning involves the monitoring and appraisal of the competences of both the employers and subsidiaries of the company. On the footing of the information obtained from Performance Development Planning appraisal, the employees shall be rated.
The evaluations shall be made by comparing the competence degree of the employees against the fixed criterions. If they are able to execute up to the criterions or exceeds the expected degrees it shall be satisfactory. Otherwise it becomes a affair of concern and pressing steps need to be taken.So it becomes necessary on portion of the organisation to supply proper preparation and instruction to its employees. in this respect Unilever has introduced intranet based acquisition centre. This learning centre provides all sorts of informations which help the employees in pronouncing their accomplishments and competences. In this manner the employees are made good equipt, so that they may lend their upper limit to run into the organisational aim and fulfill their forces ends along with it.
What should be done to guarantee uninterrupted committedness of persons
One of the most effectual methods followed to capture employee committedness is set up a just rewarding system.
A just wage graduated table, opportunities of promotion, supplying disputing undertakings or few words of grasp can truly hike up the assurance of the employees. The wage system followed by the company must be such that it must be wholly based on the competency, accomplishment and endowment of the person.One such technique followed is the Unilever work flat theoretical account. It is peculiarly utile to the lower degree employees. The technique stresses on the demand to supply a opportunity of promotion to higher work degrees and thereby actuating and beef uping the committedness of the persons.
The Unilever work degree theoretical account
The work degree theoretical account came into being in 1988.It can be applied on a planetary graduated table. The basic thought behind this theoretical account is to promote the employees of the lower degree to take top degree determinations like the executives or senior directors of the concern.
The international board has pin pointed six different qualitative work degrees. And the work degrees are assigned different payments followed in different markets. The appraisal under the work degree theoretical account can be better illustrated through an illustration.Unilever work degree theoretical accountWork degreeNature of partManagement bedPay graduated tablePotential list654StrategicVoltFourThreePoundDollar654321OperationalTwoIHankering32* As developed by Billis and Dive in the twelvemonth 1988.
If an employee is capable of supplying quality public presentation and is presently in work degree 2 he shall be expected to be promoted to work degree 3 and be ranked 3 in the possible list.Work degree theoretical account is easy to understand, use and manage. Through this theoretical account the company is taking to raise the corporate public presentation to a superior degree.
This is a really effectual technique of promoting the employees to set in their uninterrupted committedness towards better public presentation and finally run intoing the entities ends. This theoretical account emphasizes the demand to fulfill the employees by supplying them with just wages.Other than the fiscal facet it is required that the company should besides see that favourable political and working environment prevail in the company.
The employees can lend their upper limit merely if they have peaceable and promoting atmosphere. Poor working environment, deficiency of safety, no publicities, unjust and ill-mannered intervention of higher-ups can hold inauspicious consequence on the employees and can even take employee turnover. Lack of creativeness and inventions can make injury to the organisational ends. Absence of originative parts from the employees can decelerate down the development procedure of the full company. Hence attempts have should be taken to supply good working and political environment to the employees.
Sing this fact Unilever has introduced ‘Unilever sustainable life program ‘ ( information from www.unilever.com ) . The plan was introduced in November 2010 ) .The aim of the plan is to foster the endowment, competences and creativeness of employees by supplying a suited workplace.It aims to restrict the figure of accidents, errors, energy waste, and promote and protect the trueness and wellness of the employees.
The Unilever is cognizant of the fact that its employees are playing an indispensable function in safeguarding the quality of its trade names and advancing the advancement of the company in the planetary market. And hence it considers themselves responsible towards their employee ‘s public assistance and development.
Through the study on strategic public presentation direction an effort has been made to understand and analyze the importance of public presentation direction in a transnational company like the Unilever. The study emphasizes on the fact that Unilever maintains a really effectual public presentation direction system which helps the concern to accomplish its strategic aims more easy.
Through the study an sincere attempt has been made to research the demand of public presentation assessment technique like the balanced scorecard in measuring employee public presentations. The mode in which the strategic aims are linked with public presentation marks and how the public presentations are evaluated is good explained through the assorted phases of balanced scorecard.Apart from public presentation rating the study besides has tried to explicate the kernel of squad public presentation and how it should be managed and how it can take to nonsubjective achievement. It besides discusses the importance of monitoring squad public presentation.
The public presentation reappraisal technique followed by the company throws visible radiation into the fact that the company does no via media in measuring the competences of its executives and employees, and guaranting a superior quality public presentation.The study tries to work out the job of how to guarantee uninterrupted committedness from employees. Offering just chances for publicities and good payment graduated table can assist in fulfilling the employees and retaining them.Unilever besides exerts on the demand to keep a healthy and promoting atmosphere to its employees at work. Unilever relies on the competence and trueness of its employees to accomplish their strategic ends.The facts are good supported by Illustrations wherever it is necessary to supply extra information ‘s and to ease easy apprehension.
Finally on the footing of the study we arrive on the decision that Performance Management System is a system which establishes work marks, lays down public presentation standards, assesses the employee public presentations, collects adequate feedback, and so specifies the preparation demand and honoring system to be followed by the concern.