Program |
Diploma in Business |
Unit Number and Title |
Unit 21 Human Resource Management |
QFC Level |
Level 4 |
The assignment addresses the various challenges faced by companies in ensuring a hazard-free and open work culture for employees. The example of Unilever is used, as its HR policies are more aligned with the Guest model than with Storey’s. Unilever, considered one of the leading employers globally, can serve as a guiding force for many other companies. Despite its superior standing in the corporate world, several improvements are still required for the benefit of its employees. For those needing support with such in-depth organisational analyses, our Locus assignments' assignment help services provide valuable assistance in understanding complex HR models and policies.
A well-planned employment relationship between the employer and employee is a key feature of Human Resource Management (HRM). It refers to the way management works to provide a workplace that motivates employees and enables them to put forth their maximum efforts. Over the years, scholars have proposed various models of HRM practices. One such model was introduced by David Guest.
David Guest’s HRM model (1987, 1989, and 1997) primarily focuses on how management should work to increase worker productivity and align them with the organisation's long-term goals.
The model consists of six distinct perspectives:
• HR Strategy
• HRM practices
• HRM outcomes
• Performance outcomes
• Behavioural outcomes
• Financial outcomes
In this model, Guest explains that HRM practices differ significantly from personnel management. He proposes that appropriate HRM practices will lead to desirable outcomes, such as workplace flexibility, which, in turn, fosters employee commitment. These factors ultimately contribute to high productivity within the company (Spicer and Lee, 2014).
Unilever, a multinational corporation with over 400 brands and headquarters in both Rotterdam (Netherlands) and London (United Kingdom), is considered one of the best workplaces globally. Its HRM practices are widely praised. The company’s HR policies ensure the safeguarding of employees' fundamental rights and offer training programmes aimed at enhancing employees' skills. Unilever also conducts employee-led assessments to identify areas for improvement. Given that Unilever deals in software, internal communication within the company is streamlined, contributing to a positive working environment. The company regularly monitors employee satisfaction and employs various retention strategies. Through these innovative HRM practices, employees are motivated to contribute their maximum efforts, aligning closely with the principles of the Guest model.
John Storey’s model of HRM focuses on distinguishing HRM practices from Industrial Relations (IR) and personnel practices, aiming to create ‘ideal’ HRM practices. Critics argue that such an ideal model is impractical in real-life applications and remains more of a conceptual framework. Storey’s model is based on four key characteristics:
• Assumptions and beliefs
• Strategic aspects
• Key levers
• Role of line managers
Storey emphasises the importance of viewing employees as valuable assets, rather than merely meeting their contractual needs (Storey, 2015). He draws a clear distinction between HRM practices on one hand and IR and personnel practices on the other. Storey asserts that while personnel and IR practices focus on formal contracts, HRM practices go beyond contractual obligations. Unilever, for example, is recognised for offering a highly flexible work environment.
Storey also suggests that personnel and IR practices are governed by strict rules, while HRM policies tend to be more adaptable. Unilever’s HRM policies reflect this flexibility, though there are elements of personnel practices that persist, such as monitoring employee performance. While personnel practices involve continuous monitoring, HRM practices as defined by Storey focus on nurturing employees rather than simply evaluating them.
Unilever, a company with over a century of experience, places significant emphasis on its employees. Storey’s model stresses the role of line managers in creating an optimal work environment for employees, enabling them to achieve maximum output. These managers are tasked with implementing HR policies effectively, given their close association with employees. While trained HR professionals are not necessarily required for this task, the managers’ direct involvement with the workforce is crucial.
In Storey’s model, key levers refer to the various methods that can be employed to implement HRM policies effectively. These include performance-based pay, team-based initiatives, and other motivational strategies (Armstrong, 2007).
Unilever is committed to protecting the rights of its employees. Many of its sites provide safe, hazard-free working conditions and access to healthcare. Managers maintain close communication with employees, fostering a supportive workplace. Unilever also offers career breaks, maternity leave, flexible working hours, and gender-neutral policies. These practices have contributed to the company’s significant revenue growth in recent years. The proper execution of HR policies by managers has fostered a hospitable work environment, leading to high employee retention rates. Consequently, most employees remain with Unilever rather than seeking opportunities with other companies.
Flexibility in the workplace entails providing employees with maximum freedom regarding how work is expected to be completed while reducing restrictions imposed on them. It is believed that by increasing flexibility in working hours and approaches to task completion, employee productivity is likely to improve (Christensen and Schneider, 2010). Nowadays, more organisations are aiming to allow employees time to spend with their families. The company, Unilever, is already working towards enhancing its workplace environment for staff. Many employees do not have assigned desks, allowing them the freedom to work from any part of the office they choose. The company's management has redesigned the office layout and introduced new technological services to keep employees informed. In emerging economies, such as South Korea, individuals are encouraged to work from home. Unilever could adopt a similar policy to retain employees, as it would allow them to spend more time with their families. Some employees have expressed that, although the management is approachable, communication with HR can sometimes be challenging. Workers have also noted that salaries do not always reflect the workload. In a survey conducted by Glassdoor, employees indicated that they are not involved in company decision-making processes. Implementing these flexibilities could help Unilever improve its workplace quality.
An experiment documented in the TOMO paper involved offering several employees the benefit of working at any time as long as they met deadlines. They were not required to remain in the office for fixed hours, which allowed them time for their families. The research found that employees experienced better health, improved sleep patterns, and reduced work-related stress. Workers were so satisfied with their workplace that they did not wish to leave their jobs in the foreseeable future (Dominus, 2016). Unilever can develop similar flexibilities and is indeed working towards this mission. The company can examine the workspaces of other leading companies and adopt aspects of their models. For instance, Google Inc., one of the world’s leading employers, allows staff to work from any part of the office, which includes furnished areas like cafeterias, play stations, and gym facilities. Google also allows pets in the office, provides free meals, and has open terraces. Additionally, Google offers employees one day per week to work on non-work-related tasks (Stewart, 2013). These flexibilities could be implemented by Unilever to make it a more attractive workplace, as productivity should be a priority for any organisation.
Flexible working practices benefit both employers and employees. Employees appreciate the ability to spend time with their families and engage in other activities. For employers, flexible working practices assist in retaining employees and reducing turnover. As more young people enter the workforce, employers face greater challenges in retaining them, as this demographic values workplace freedom over salary. New working dynamics enable employers to save money on office desks, as employees can work from various locations inside or outside the office. Consequently, the costs associated with permanent workstations may become unnecessary. Employers benefit by understanding their employees on a personal level, which in turn helps improve the company’s productivity (Boucher, 2015).
Unilever’s productivity manager observed an increase in the company’s overall productivity after introducing office flexibility. Staff health improved, which lowered the company’s medical costs. Employees felt more energised and performed better. The company noted that small changes in work patterns encouraged employees to remain at Unilever for many years. Since then, Unilever has implemented various practices for its benefit, including reduced working hours, part-time working options, increased paid leave, and the establishment of childcare facilities. These practices have worked in favour of the company (Laasch and Conaway, 2014).
Flexibility in the labour market refers to the willingness of the workforce to adapt in response to changes in demand and wages. Globalisation and advancements in technology have increased labour market flexibility. Additionally, the number of women joining the workforce has grown, and they are often offered flexible working hours, which contributes significantly to labour flexibility. At Unilever, pay is based on the amount and quality of work completed. Women seeking part-time roles represent a large portion of the company’s workforce, prompting Unilever to adapt its rigid work structure to accommodate labourers’ needs. Providing flexible working conditions may enhance labour market flexibility, as employees will be more willing to relocate due to the company’s open workspace. Labour forces tend to be more adaptable when part-time roles are available. Furthermore, the company would have the authority in such cases to hire and dismiss employees as needed, given the less rigid nature of part-time contracts.
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Every company is obliged to provide equal opportunities and facilities to all employees within the organisation. The Equality Act 2010 prohibits discrimination in the workplace based on age, race, gender, religion, marital status, pregnancy, disability, gender, sexual orientation, and more (Equal Opportunities Commission, 2016). It has been observed that organisations free from discrimination experience longer job tenures among employees, who value transparency in selection, promotion, and other company processes. Despite numerous awareness programmes, instances of discrimination still occur globally, affecting both large corporations and smaller firms.
For example, in 2016, Meseret Kumulchew filed a discrimination case against Starbucks due to disability discrimination. Ms. Kumulchew, who suffers from dyslexia and faces difficulties in reading specific letters and numbers, had openly communicated her needs to her employer, requiring clear instructions for her tasks. Initially, Starbucks assigned her reduced workloads, which made her feel inadequate, and later accused her of document falsification, despite knowing about her condition. An employment tribunal ruled that Starbucks had failed to accommodate her needs, thus discriminating against her (Coleman, 2016). Additionally, in a more recent case, McDonald’s faced allegations of racially discriminatory practices, including the firing of employees based on race. Affected workers reported harassment and racial slurs from a supervisor who also sent explicit messages and images to female staff. While McDonald’s promotes anti-discrimination campaigns, the allegations indicated a failure to enforce these values within the company.
Moreover, the Trade Union Congress (TUC) recently asserted that female employees should not be compelled to wear high heels in corporate offices, advocating for women’s freedom to choose suitable office footwear. Although some measures have been implemented to combat discrimination, these examples highlight its persistent presence in the workplace.
The practical implications of equal opportunities legislation mean that a company cannot ignore laws prohibiting all forms of discrimination. Libby Lyons, Director of the Workplace Gender Equality Agency, remarked that as long as flexible working hours remain rare among men, this option may remain limited for women as well, given that men typically comprise the majority of the workforce (Spring, 2016). Equal opportunities legislation ensures that organisations do not discriminate against employees based on gender or other factors.
For instance, companies must provide paid maternity leave to female employees, allowing them to return to work after childbirth. However, women who re-enter the workforce post-pregnancy are often excluded from managerial roles or other high-responsibility positions, impeding their career progression. Organisations must ensure that women receive fair treatment and appropriate roles upon rejoining, without being viewed merely as investments. The Employment Equality Act has significantly impacted both employers and employees, encouraging managers to offer support previously lacking for marginalised workers. By complying with these provisions, companies can retain talent and avoid legal complications.
The Dutch-British company Unilever believes that a company prospers when employees’ fundamental rights are respected. Recognising the discrimination women face, including limited training and frequent harassment, Unilever prioritises a safe and equitable workplace. The company actively upholds its commitment to provide equal pay, respect, and freedom to all employees, without forcing anyone to work against their will (Unilever Human Rights Report, 2015).
In 2014, Unilever identified discrimination as a critical issue to address, with management working to eliminate discriminatory practices based on class, race, colour, creed, gender, and more. Ensuring respect for all employees has become a core objective, promoting inclusivity and providing equitable opportunities. The firm also offers paid maternity leave and part-time roles, enabling employees to balance work with family responsibilities. These initiatives foster employee loyalty and satisfaction, making Unilever a preferred employer for many. By creating a diverse workplace, Unilever facilitates a supportive environment for workers from different backgrounds, which in turn drives productivity.
Unilever employs various methods to achieve high employee satisfaction. Supervisors continuously track work outcomes to monitor employees’ performance, and the company implements a three-stage management system using a scorecard approach. In the first stage, targets are established based on individual performance. The second stage involves monitoring each employee’s progress and comparing actual productivity to expected outcomes. This process helps identify areas for improvement. The final stage provides each employee with an annual scorecard, assessing output against expectations, which helps management gauge individual capability. By making long-term and short-term goals clear, Unilever motivates employees to put in maximum effort. Additionally, a rating system recognises exceptional performance, reinforcing a culture of achievement.
Ensuring proper health conditions for employees remains a top priority for employers across various companies. Human Resource Management (HRM) professionals are responsible for enhancing workplace health standards. With improved health conditions, employees can increase their productivity by maintaining regular attendance (Growing the Health and Well-being Agenda, 2016). Many companies now provide vaccination programmes to prevent illness, alongside on-site healthcare facilities.
Unilever has implemented a universal welfare programme known as Lamplighter, which collects data to develop welfare strategies. This programme addresses both physical and mental well-being, providing tailored dietary advice for employees worldwide. Additionally, Unilever assesses work-related stress levels, redistributing workload where necessary to ensure mental health. Recently, the company acquired Seventh Generation Inc., a North American personal care products company, furthering its commitment to employee welfare (Unilever, 2016).
In most organisations, healthcare responsibilities are integrated into the HR department’s role. HR is responsible for recognising and addressing employees’ health concerns, and ensuring workplace hygiene and safety. HR practices should aim to prevent work-related illnesses, providing comprehensive staff training on safety measures. Welfare initiatives should minimise absenteeism, which can harm productivity. A workplace first-aid kit is essential, and HR must also consider employees’ mental health. Overburdening staff can disrupt sleep patterns and lower productivity, so HR should foster a positive work culture to motivate employees. Regular meetings and training sessions should equip employees to handle health risks effectively. All these aspects fall under HR's duty to support employee health and well-being.
Many employees in companies are part-time rather than full-time workers, preferring to work from home. Despite this shift, companies maintain product quality standards. In the UK, working conditions have been reported as more satisfactory compared to similar roles in other countries. HR practices play a vital role in addressing workers' needs and creating a supportive work environment (Edwards and Rees, 2008). HR acts as the liaison between company management and employees, particularly during conflicts. Policies introduced by the company are typically executed by HR, ensuring compliance and support for all employees.
For instance, maternity leave has been a significant issue for female employees, who previously faced job loss post-pregnancy due to insufficient paid leave. Companies like Google have extended paid maternity leave, setting an example for other firms. Unilever, for example, allows women employees to work from home, reflecting HR’s proactive role in accommodating employees’ needs.
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The HRM strategy of Unilever is more or less based on the Guest model, which is not a utopia but can be achieved in real workplaces. Various problems have been dealt with in this report and the steps are recommended to improve the working conditions. All the companies in the world need to work on the discrimination that takes place in an office and need to make sure that the employees are able to maintain good health conditions. The better the workplace the more will be the productivity of the companies. Employees should be considered as assets of the firm and not as mere capital investments.
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