Final report

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Importance of Management
Development in Human Resource
Development and Corporate Strategy:
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A Case study of Unilever China (Skin-Care
Products Division)
12/24/2009

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Author Name

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Table of Contents
Chapter 1: Introduction ............................................................................................................... 6
Human Resource Development and Management Development ................................................... 6
Unilever........................................................................................................................................... 8
Purpose of Research ...................................................................................................................... 10
Research Objectives .................................................................................................................. 10
Research Questions ................................................................................................................... 11
Significance of the Study .............................................................................................................. 12
Overview ....................................................................................................................................... 12
Chapter 2: Literature Review ................................................................................................. 13
Introduction ................................................................................................................................. 13
HRD and Two interpretations of Management Development ................................................. 14
Management Development for Competitive Advantage .......................................................... 15
Overall Corporate Strategy and Management Development ................................................... 17
Management Development and Impact on managerial performance .................................... 18
Management Development Strategies ....................................................................................... 21
Push and Pull Strategy ............................................................................................................ 21
Formal and Informal Development ....................................................................................... 22
Isolated or integrated Management Development ............................................................... 24
Line Managers’ Perception of Management development ...................................................... 25
Management Development and Transference to Practice ....................................................... 26
Management Development and Role of Top Management ...................................................... 29
Conclusion .................................................................................................................................... 31
Chapter 3: Research Methods ................................................................................................... 32
Qualitative Research ..................................................................................................................... 33
Case Study .................................................................................................................................... 33
Research Instruments ................................................................................................................ 34
Secondary Research .............................................................................................................. 35
In-depth Interviews ............................................................................................................... 36
Reliability...................................................................................................................................... 39
Validity ......................................................................................................................................... 40
2

Ethical Issues ................................................................................................................................ 40
Chapter 4: Unilever HRD and MD Strategy---A Review of Literature ................................ 41
Management Development Philosophy in Unilever ..................................................................... 42
Changes in Unilever‘s HR Strategy and its MD Function 1999-2005 Path to Growth Strategy . 42
Unilever‘s Management Development System .................................................................... 45
Application of Management Development System .............................................................. 48
Performance development planning (PDP) .......................................................................... 49
One Unilever Strategy 2005-Present: Outsourcing of HR Functions ........................................... 51
HR BP role in the Operating Framework ..................................................................................... 52
Service Relationship Model: ......................................................................................................... 54
Service Mgmt roles fit with HR leadership .................................................................................. 54
Conclusion .................................................................................................................................... 55
Chapter 5: Interviews ................................................................................................................. 56
Interviews of 10 Managers............................................................................................................ 56
Manager #1 ........................................................................................................................... 56
Manager # 2 .............................................................................................................................. 57
Manager # 3 .............................................................................................................................. 58
Manager # 4 .............................................................................................................................. 58
Manager # 5 .............................................................................................................................. 59
Manager # 6 .............................................................................................................................. 59
Manager # 7 .............................................................................................................................. 60
Manager # 8 .............................................................................................................................. 60
Manager # 9 .............................................................................................................................. 60
Manager # 10 ............................................................................................................................ 61
Interviews of 2 Superiors .............................................................................................................. 62
Superior # 1 ............................................................................................................................... 62
Superior # 2 ............................................................................................................................... 63
Conclusion .................................................................................................................................... 63
Chapter 6: Discussion ................................................................................................................. 64
Discussion and Analysis ............................................................................................................... 64
Major Changes in HR Policy .................................................................................................... 65
Role of MD in Individual‘s Development ................................................................................ 65
Competencies Acquired ............................................................................................................ 66
Integration of Corporate and Individual Goals ......................................................................... 66

3

Influence on Performance ......................................................................................................... 66
Impact of Outsourcing .............................................................................................................. 66
Conclusion .................................................................................................................................... 67
Chapter 7: Findings and Conclusion ........................................................................................ 67
Overview ....................................................................................................................................... 67
Findings......................................................................................................................................... 68
Implications for Human Resource Management and Development ............................................. 69
Limitations .................................................................................................................................... 70
Further Research ........................................................................................................................... 70
Appendices ................................................................................................................................... 71
Appendix I: References................................................................................................................. 72
Appendix II: Questions for Interviews ......................................................................................... 82
Questionnaire for Managers ...................................................................................................... 82
Questionnaire for Superiors ...................................................................................................... 83

4

Acknowledgement

Abstract
This dissertation is a case study of Unilever PLC one of the largest multinational organisations in

the world. It analyses the organisation within the framework of human resource development and

management development and tries to understand the relevance of management development

(MD) in a corporation‘s overall business strategy and it how it influences the performance of

individual mangers. The reports also considers management development as a strategic tool

trying to understand how Unilever has used it. The study relies on secondary research as well as

in-depth interviews to answer all the research questions posed in the first chapter. From the study

it becomes apparent that the importance of MD is increasing and Unilever does appreciate its

long term importance both at individual and corporate level.

5

Chapter 1: Introduction
Human Resource Development and Management Development

Human resource management is considered to be one of the key areas of management process.

Human resource development is one of the main functions of human resource management. Over

the past decade human resource development (HRD) has been identified by different

academicians and researchers as a key not only for development of employees but also as a

strategic tool for an organisation. Today employees and managers are considered as stakeholders

in organisations along with customers, suppliers and shareholders. For any organisation to

prosper, it is important that the employees are not only hired and retained but it is in the best

interest of the organisations that their skills and capabilities are further developed and nurtured.

This is in turn allows employees to improve their competencies and strategically enhances their

6

performance and also give the firm a competitive advantage. In the globalised work

environment, large multinational corporations rely on HRD as an instrument to not only develop

human resources to deal in an international environment but also gives an organisation

competitive advantage in both local and global markets. The degree of success in HRD through

different practices also is an added factor in any competitive advantage gained (Horwitz, 1999).

In assition the strategic nature of HRD has made is an important part of HRM as it it acts as a

channel to improve performance and competencies. Therefore HRD is directly linked to

productivity, market share and even sales (Horwitz, 1999).

As in the case of the relationship between HRD and HRM, at managerial level management

development is a very important HRD function. Management development gives specific

importance to developing broad, synchronized and active methods for managerial learning

programs. These initiatives are carried out in form of internal and external programs and formal

and/or informal processes. This is done to achieve corporate objectives in a competitive

environment. Management development is based on the premise that managerial learning should

not be accidental rather it should be part of the overall business process. There is a need for a

consistent policy and practices for successful implementation of MD. This is important because

MD cannot be carried out in isolation it has to be entrenched in the overall strategic philosophy

to benefit all the stakeholders (Akuratiyagamage, 2007).

In the international environment, there is a need for large corporations to choose from a number

of options to develop their internal human resource potential, they are free to use different

means. No matter which route is considered organisations should support learning and

development activities and this need has been recognised and underscored. Even though today

development models use action learning and real challenges, but formal management

7

development programs are even today very popular. It is thought that these formal programs

give development process a paradigm shift as the employees are able to think and interact in

different environments. However what is significant is how the learning process is transferred

into workplace(Belling, 2001).

Management development is used as an instrument more in larger corporations than in small or

medium sized organisations. The next section briefly discusses Unilever, which has been chosen

as a case study to understand management and whether it is successfully implemented in the case

of this multinational corporation.

Unilever

This research is explores the role of management development within Unilever, it traces its

evolution and its impact on HRD and business strategy. Unilever is one of the biggest FMCG

companies in the world with The company operates under a dual structure, Unilever PLC and

Unilever NV—both are parent companies of the Unilever Group. Although both organisations

are separate legal entities with different stock listings but they operate as a single entity. It is a

truly global concern with its operations in Europe, The Americas, Asia and Africa and its

headquarters in the UK. It has 179,000 employees working for it (Data Monitor, 2008).

There have been many changes in the way HR activities are conducted in different organisations

in recent years. Management philosophy has moved away from the traditional approach of profit

maximisation towards a more holistic approach which includes the empowerment and

development of managers at different levels and considering them as stakeholders and significant

contributors to the organisation. Because Unilever is one of the major leading Multinational

organisations in the world and has been in existence for over a century it is important to
8

understand the secret of its sustained success. It is crucial to understand what the organisation

considers its employees to be and in what way do these measures shape employees‘ perceptions

about their place in the organisation and also how it is reflected in their individual performance.

Unilever is a traditional multinational organisation, but with changes in time, nature and

expectations of people has evolved and this along with the changing trends from within the

company has led to the establishment of management development as a strategic instrument in

meeting the goals (Human Resource Management International Digest, 2002).

Unilever has responded to the changing needs and times by putting more emphasis on

management development. Human resource development at Unilever has two major objectives:

(Human Resource Management International Digest, 2002)

 Developing the potential leaders of the organisation

 Developing persons to accomplish their best abilities

The second objective is not just climbing the corporate ladder but a means to facilitate staff

members to extend their professional capability as a result this may in turn aid the performance

growth of the organisation. HR development has to match the strategic long-term goals of the

organisation (Human Resource Management International Digest, 2002).

These efforts have been made globally in different countries, however the research would focus

on one country China and a single division: Personal Care Division of the organization

headquartered in Shanghai to understand the importance of management development on

SHRM and corporate strategy in competitive environment.

9

Purpose of Research

The central objective of this study is to understand why a corporation like Unilever opts for

management development. It also aims to find how effective the management development is as

a tool not only at the level of human resources but also as a strategic tool. The dissertation uses

both secondary sources and in-depth interviews to understand the impact of management

development on managerial performance. Interviews of both managers and their superiors were

conducted to understand the perspective of those who experience MD and also those who are in a

position to see whether it is translated into more productive employee and whether it is in line

with the overall corporate strategy.

Research Objectives

The main research objectives would be:

 To find the main driving factors that lead to management development

 To understand the theoretical perspectives that led to implementation of managerial

development plan

 To understand the impact of management development in terms of employees acquiring

skills and competencies and their development and performance

 To understand the effect of management development in terms of organisational

development and competitive advantage

 To understand if performance of managers and the role played by senior management in

encouraging or discouraging management development

10

Research Questions

Keeping in mind the above objectives the research questions are two-pronged; to first understand

the overall MD and HRD strategy. For this following questions would be relevant:

 How does Unilever regard management generally regard management development in the

field of HRD and also strategic policy formulation?

 How has the MD strategy evolved in the past ten years?

 What steps are taken to make management development and important part of human

resource development?

 How has management development practice evolved as part of the overall corporate

strategy?

 What has been observed by researchers studying their policies and measures in terms of

management development?

For the Personal care division in China following would be the research questions:

 How has management development changed with the new policy implementation?

 major competencies were acquired by managers during and after the management

development process?

 Were these competencies helpful strategically to the manager and the organisation?

 What was the impact of management development on managers‘ performance?

 Did their performance improve?

 What were the changes perceived by the managers and their superiors?

11

Significance of the Study

HRD and MD have increasingly gained importance as more and more organisations realise that

these functions can be utilised not only to train and develop employees and use MD as a tool for

internal recruitment, but this instrument is increasingly being embedded in the in the overall

corporate strategy and regarded as a competitive advantage for an organisation. This particular

study seeks to find out the nature MD taking place in a large corporation like Unilever and also

to see how effectively it is being carried out in case of the organisation‘s Chinese operations.

Even though this researcher is a student with little experience, however, this dissertation would

contribute towards understanding MD from a more practical perspective.

Overview

This report is divided into seven chapters. Next chapter is a detailed look at existing literature,

which is followed by research methods chapter which outline the theory and actual research

methods to be used for this study. Chapter four and five are case study of Uniliver moving from

more general practices and policies as understood from secondary research to a more in-depth

look as one division of the organisation in China. Chapter six discusses the information of the

previous two chapters, while chapter seven is the concluding chapter with a brief summary and

findings of the study.

12

Chapter 2: Literature Review
Introduction

An organisation‘s competitiveness is generally associated with improving managerial

capabilities, training and development also called human development (Worrall and Cooper,

2001). And the quality of an employee‘s contribution is fundamentally founded in how the

acquired knowledge and skill is applied. Management development is not a very narrow concept.

Its definition as provided by Baldwin and Patgett (1994, p. 270) “the complex process by which

individuals learn to perform effectively in managerial roles”. This is because when one talks

about adults it is clear that they learn in different ways and development of managers is done in

many ways intentionally or involuntarily in an organised or unorganised way or even

independently by an individual.

It is important first to understand what researchers believe what managers really do. According

to previous studies. Some researchers who have studied managers show managers to be different

from the general picture of a careful alert goal oriented coherent decision maker. Instead a study

by Fores and Sorge (1981) observed managers and according to them managers are time-stresses

13

and more interested in dealing with day-to-day issues, who are interrupted regularly and are

unable to prioritise most of the time. Stewart (1968) on the other hand noted that the nature of a

manager‘s job is multitasking with each manager carrying out different activities in a space of a

day. Mintzberg (1973), in a study of CEO found that even at the highest level there were short

span activities which occupied them and the most important way that managers got hold of

information was through talking with colleagues rather than superiors or subordinates (McCall,

1978. On the whole managers react to problems as they occur and they deal with them without

prioritising them or categorising them. Decisions are more or less intuitive based on the

information gained. It is believed that with more sophistication stress levels and number of

activities has improved.

HRD and Two interpretations of Management Development

Management development stresses on building of broad, synchronised and dynamic initiatives

for managerial learning both within and outside an organisation. This is done to allow the

organisation to achieve its organisational goals and objectives in a competitive atmosphere.

management development it is based on the understanding that managerial learning is a planned

part of the business process rather than taking place unintentionally, therefore is integrated into

the human resource management system. For successful management development there needs

to be a consistent set of policies and practices which jointly ensure that learning is an integral

part of an organisation for all the individuals and institutions involved.

Organisations today are dealing with constantly evolving environment and rapidly changing

situations which have not been witnessed before. For any organisation to be successful in a

highly competitive environment it is important for each organisation to keep on altering its

14

different aspects like organisational structure, IT, business operations and culture (Sun, 2000).

Organisational development is a collection of ideas and strategies that can be used to enhance abilities and

capacity of an organisation and its human resources at group level and at individual level(Beer and Walton,

1987; Doorewaard and Benschop, 2003; Francis, 2003). Human resource development involves development

and adaption to change as emphasis is on individual learning and this is the basis of organisational learning

(Elkjaer,2001; Grey and Antonacopoulou, 2007; Walton 1999). HRD spotlights the skills and abilities of

individuals and their needs in order that all employees can work within an organisation context (Megginson et

al. 1993).

According to Simmonds and Pedersen, (2006) in their literature review indicate that limited research has been

carried out in development of HRD theory in the past twenty years. Since HRD became a popular practice

there has been a division in how HRD is applied. The division can be seen in the American approach which

emphasises performance outcome paradigm, in which individual development was stressed for organisational

outcomes(Swanson and Holton, 2001). Most of this was based on organisational development theory (De

Simone et a.l, 2002). The British on the other hand have followed learning and development framework which

centres on improving training and development, within this paradigm management development is considered

an important way of developing managers Garavan et al., 1999).

Management Development for Competitive Advantage

It is now believed that competitive advantage is internal to an organisation rather than part of

external environment as thought before (Longenecker and Ariss, 2002; Ulrich and Lake, 1990).

Currently in the business environment high performing managers are hard to find and very

difficult to groom and cannot be substituted easily. Managers are also considered in many cases

as very valuable assets of an organisation (Rauschet al., 2002; Wright and Ferris 1996).

Therefore for any organisation development of managers is essential. When this is applied in a

global environment, understanding, acquiring of awareness and adaption to continuously

15

evolving situation are important factors that contribute to international business performance

(Lyles and Salk, 1996). As a result management development activities are necessary part of

organisations who aim to achieve excellence and who want to invest intelligently in human

resources. Following this idea there are two options available to organisations. They can either

recruit employees and managers, or they can enhance the skills and capabilities of their present

employees by providing development opportunities by selecting candidates(Delaney and

Huselid, 1996).previous research suggests that investing in managers in terms of training and

development in a strategically cantered approach management development can give more

variable and long-term benefits, as this is a value added business strategy (Kirkbride, 2003;

Longenecker and Ariss, 2002; Shefy and Sadler-Smith, 2006; Storey and Sisson, 1993). This

may also hold true, for those individual who may demand additional premium for their skills are

expected to change their jobs, therefore it is not easy to expect commitment from such

individuals (Kim, 2005; Walton, 1999). As a result organisations have to deal with issue of

offering individual employees, possibilities to develop. This leads to a relationship which is

based on mutual respect and benefit to both the organisation and individual employee. According

to Bagshaw (1996) this on one hand improves the employee‘s performance and enhances his or

her contribution to the organisation and allows them an opportunity to capitalise on their own

development. A new relationship is also formed between the organisation and its employee.

Organisations in this become committed to developing individuals, while the individuals return

whatever they have learned into the organisation. This is a cycle which continues till the

relationship lasts. Therefore instead of permanence there is a shared growth which replaces it.

Within this paradigm conditions for learning can lead to higher commitment levels from the

employees and also leads to a perception that organisation is a good place to work (Belling,

16

2004; Schuler, 1987).According to Bender et al., (1996), management development and learning

has progressed into a new role which balances the interests of manager and the organisation.

Researchers and academics, understanding the value of learning, propose that organisations

should take steps to encourage and channelize measures to develop managers.

Overall Corporate Strategy and Management Development

Corporate or business strategy influences management development, and management

development also influences strategic decision making. Traditional understanding of influence

on strategy on management development it that HRD would only be considered when corporate

strategy is formed, however this understanding is no longer applicable (Wright and Ferris, 1996).

For management development to be successful it needs to considered as part of the process

where strategy is developed, because the organisation is dependent on using all its resources to

deal with different internal and external challenges (Kirkbride, 2003; Longenecker and Ariss,

2002; Luoma, 2005). This idea of management development provides a wide array of options to

different organisational problems, so that HR is in goal identification and evaluation of

organisational capacity (Fulmer et al., 2000; Rausch et al., 2002; Tichy, 2002). Therefore

management development has to be undertaken with the intent of management policies and

procedures are integrated within an organisation‘s general mission (Walton, 1999).Management

development strategy on one hand provide long-term commitment, while its implementation

show an organisation‘s commitment to continuous development learning and development

process not only to maximise their contribution, but also help them in improving their standing

within an organisation. For this to occur it is important that management development is

17

incorporated into the business strategy vertically. When the influence of management

development is considered it is found to influence strategy in several ways. Management

development helps in creating both directly and indirectly, organisational cultures (Fombrun

,1984; Hendry, 1995). Management development also is fundamental because the quality of

management usually ensures how strategy is formulated and what kind of input is made by

managers. Business strategy is more successful when it is formed around the core business

activities, rather than management development being regarded as an independent contribution

which is not part of the core business strategy (Hendry, 1995). As a result management

development provides quality and quantity of human resources.

Management Development and Impact on managerial

performance

There is very limited existing research which directly links management development with managers‘

performance. According to Storey et al., (1997), it was found that UK companies had changed

themselves in terms of management development, and the amount of training being offered much

more than before and management development was considered an important part of

organisational activity. This change was visible in smaller and larger concerns. Keeping this in

mind the idea that management development may be a strategic tool is now more widely

accepted, however, many believed that there was a causal connection between management

development and organisational performance (Miller, 1991). Storey et al., survey further

reiterated this fact that organisations considered MD to have beneficial impact on organisation‘s

profitability. Some theorists contend that organisation‘s leadership should take on the role of

management development. Like higher level managers mentoring lower level managers or

18

providing motivation to others to follow. Winterton and Winterton (1997) provide very

conclusive evidence which shows a positive linkage between management development and

performance of individuals and organisation. According to them when management development

objectives are integrated into organisational strategy the connection between development and

performance is clearly enhanced. However the problems abound not because of absence of

management development or lack of development opportunities. According to Pickering and

Matson, (1992) in spite of good management development programs managers don‘t have

sufficient organisational support to convert their learning to a more practical use. They indicate

that the trainees also encountered hostilities which often led to distress and disappointment. The

result is that it is not just the courses which are the problem it is the organisational culture and

other organisational issues. It is important therefore to understand the role of management

development and management should be aware of the changes needed and the development

activity should be more focused. Dave Ulrich (1998) observes that organisation‘s competence

“works when senior managers ensure that development is more than an academic exercise, when

training is tied to business results not theory…”

According to Longenecker and Fink (2001), it is important for both organisations and people o

change their old behaviours and adopt those procedures and attitudes that make them more

efficient and successful (Senge, 1990). They state:

Thus, the name of the new game is change in the search of competitive advantage. To this end,

most modern organizations are presently engaged in a myriad of organizational change efforts

aimed at improving performance. New strategies are being considered which require different

organizational skill sets or behaviours. The complexity involved in implementing new strategies
19

has increased and the time available to managers to respond to competitive threats and

implement changes has shortened.

To remain competitive in a changing and more global environment, organisations have changed

their distribution and supply changes have been reorganised, relationship with different

stakeholders has been changed and workforce‘s efficiency and productivity has been evaluated to

and these are just a few of the minor changes which have been carried out by organisations to

deal with the new economic realities. Especially in the face of rapidly changing external

environment there is a need for organisations to have effective leadership which is proactively

able to deal with. Drucker also indicates that change needs effective development of managers.

Thus in this fluid environment dynamics of management development cannot remain constant,

there is need to change them with time as they help managers in acquiring capabilities necessary

to function successfully(McCall et al., 1988). Fulmer indicates that because of rapid

organisational evolution, management development has also to change to keep up with new

realities. According Longenecker and Fink (2001):

Ultra-competitive environments require organizational change; organizational change requires

effective managerial performance; effective managerial performance requires appropriate skills

and behaviour. Appropriate skills and behaviour development is facilitated through appropriate

and effective management development activities. And different management development

activities may be required depending on which skills and behaviours are in most demand of

development by the organization at a particular time (e.g. planning, organizing, leading and

controlling vs. new and different ways of thinking, acquisition of new business skills, and

development of different leadership and communication behaviours.

20

Management Development Strategies

Push and Pull Strategy

According to Pauwee and Williams (2001), there are two ways of developing managers:

Push strategy is the traditional method, a classic management development program where

managers in a certain salary group or age group undergo training and development. They are

selected to undertake a course and this was done especially during the earlier years. In many

cases management trainees would have to come back for more training as they would proceed to

a higher rung in the management ladder.

Pull strategy is based on the requirements of individuals working, when they request to be

trained. This is just in time training for needs which may not have been anticipated by the

management.

These strategies suggest that there are certain times in a mangers‘ career when training is

required, as it was Jordan (1968) who indicated that individuals learn more when they are ready

to learn. However there are many instances when there are situations where development is

needed in addition because of the global realities, managers face tasks which are unprecedented.

For example scenarios where transfers may mean international transfers, In these scenarios pull

strategy appears to be more effective as more spontaneous development opportunities tend to

arise and the training would be more inclusive, instead of training of one manager, as teams

undergo training and development. There may be some advantages associated with the push

strategy as it may increase motivation levels of employees.

21

Formal and Informal Development

The second issue which is important in the case of management development as indicated by

Pauwee and Williams, (2001) is whether management development programs are controlled in

form of formalised class-room based programs or should they be more hands on informal

processes?

Organisations can use both formal and informal processes.

Informal Management Development Process: Informal process occurs as a consequence of

organisational operations. Like interpersonal communication or accomplishing of objectives, and

managers in this case may not be intentionally prepared to learn something through a formal

program (Holden and Hamblett, 1998; Järvinen and Poikela, 2001; Marsick and Watkins, 1997;

Mumford, 1997).

Formal Management Development Process: formal processes are pre-planned training and

development programs, which are usually initiated by organisation, and are observed and even

controlled by higher organisational forces Marsick and Watkins, 1997; Mumford, 1997).

Although research indicates that informalprocesses are preferred by individual managers from

formal management development processes (Mumford, 1997). There are several reasons why

informal processes are considered more effective than formal processes, are that in many cases

formal training programs which are not on the job are not considered practical or and are thought

to be irrelevant and difficult to transfer the learning to work environment. These formal

programs are also considered to follow the interest of the individuals who designed the training

program, and do not consider preferences of the trainees (Akuratiyagamage, 2004a; Griffin,

2003; Rees and Porter, 2005). Akuratiyagamage, 2004a believes that relying on a whether formal

22

or informal process is not recommended, especially knowing that informal processes are not

sufficient and also inefficient in how development and training is imparted to the employees as

managers don‘t have the ability to convert the learning experience into on job decision-making

process. Formal management development though significant is not enough and not provided in

the correct manner. But this discussion doesn‘t mean that formal processes are better than

informal processes or that informal processes are more natural and incidents, organisations

should only depend on them and not make them part of management development. However,

management development without informal process would make management development less

real and more theoretical (Malcolm et al., 2003). As a result what seems to be appropriate would

be an integrated management development process which makes use of both kinds of processes.

This incorporation would be in terms of several dimensions, time, environmental conditions, and

cognitive capacity and manager‘s work routine (Lohman, 2006). Even at this point the success or

effectiveness of the integrated approach depends on organisational culture and climate, whether

it is conducive to development, and whether the organisation supports, encourages and nurtures

learning (Akuratiyagamage,2004, 2004b; Belling et al., 2004; Muhamad and Idris, 2005;

Rodwell, 2005).

Informal approaches to management development are related to eastern cultural values. Pauwee

and Williams Observe:

In the West we tend to emphasize formal assessment of individual strengths and weaknesses

linked to formal, often course based, development programs. In contrast in SE Asia top

managers are much more personally involved in the development process of their chosen

subordinates. They will each have their stable, as it were, of junior managers with whom there is

23

a reciprocal supportive relationship. There is little formal assessment or development but rather

informal development through mentoring, job rotation and project involvement.

Therefore what is being observed is a trend towards using more informal approach a real-life,

real-time development projects instead of more formalised pre-prepared learning which may not

be as effective.

Isolated or integrated Management Development

When one deals with HRD and management development the question arises whether

management development should remain an independent peripheral activity, or should it be

integrated with the organisation‘s strategic objectives? The major weakness as discussed earlier

is when in a more traditional approach to management development; it is regarded as an

instrument which is a separate activity with little or no link with the strategic goal of an

organisation.

When one discusses Human resource development, from the traditional paradigm the

fundamental focus is on development activities and their connection at tactical level rather than

at a corporate or strategic level Saunders and Holdaway, 1992). HRD here becomes more of a

marketing type philosophy with stress on contractual relationships (Stuart and Long, 1985a)

where the line managers and other stakeholders are provided consultancy. In this paradigm line

managers are considered to be customers as HRD is considered to be an independent activity and

there will be need to integrate horizontally, however most of what is taking place is being done

to use human resources in the best possible way (Fredericks and Stewart, 1996).

The integrated paradigm is more concerned with an increasingly more popular theoretical

perspective of HRD which is related to its strategic importance (Garavan et al., 1995). Here as

24

mentioned before there is a strong emphasis on a vertical integration between corporate goal and

vertical integration. Strategic HRD is usually defined as development activities which are

applied to improve human resources in an organization, and is an important contributor to

corporate strategies. This is also regarded as learning organization perspective, particularly in a

learning environment. In this approach there is proactive attempt at organisational change,

therefore individual training and development changes into learning.

There has been little or no evaluation of management development programs. Most of the time at

the end of program evaluations is carried out usually to measure levels of happiness. This occurs

because the program is carried out by HR or management development. These evaluations are

not very credible, they are also incapable of measuring actual changes in terms of learning,

behaviour patterns during work and organisational performance (Kirkpatrick, 1976). Mostly

attempts to understand the impact of management development has been limited to surveys of

those who are organising these programs like the HR people. The feedback from HR or

management development employees show that these programs are ineffective and employees

complain about lack of information or even no connection with actual work (Jansen et al. 2001).

Line Managers’ Perception of Management development

On the other hand the responses of line managers are quite different. According to Pauwee and

Williams (2001), their informal study showed that managers regard management development as

advertising. In their view they think that half of the amount invested in management

development is wasted. In addition they believe that MD is much more than theoretical

knowledge. It appears that line managers and many participants feel that the process of selection

for management development plans would be just as important as the actual tutorial. Selection

25

indicates to those who are selected that they are valued by the organisation, because it is willing

to spend and incur cost to develop them. It is also indicative of the fact that organisation is

forward thinking and they would be part of that future. It may also be considered as a benefit for

the services they have provided in the past. Management development also facilitates social

networking and in many cases a status symbol and help to career management.

Therefore cutting costs and limiting management development can have a very adverse and

undesirable impact even on the future of an organisation. It may indicate to the managers that

instead of cultivating its own internal workforce, the organisation will be looking At the external

market for managers and this may have an impact on organisational culture, motivation levels

and promotions, to name a few.

Therefore trick is to change the nature of management development programs and make them

more closely linked to the actual work of an organisation rather than cutting down the expense.

Therefore the trend is to closely link learning programs with organisational objectives, Pauwee

and Williams provide an example: ―whether the organization has enough good candidates to fill

vacancies that may arise. Also subsequent links to individual career moves are being tracked.”

Management Development and Transference to Practice

Management development as an instrument of HRD involves activities which are pre-planned.

They are designed to make changes ". . . and, as with all transformations, there is a core process

involved" (Burgoyne and Stuart, 1976, p. 5, cited in Belling et al., 2004). This indicates that

learning outcomes planned or unplanned and transfer material is part of it have to be set in the

framework of core learning processes, which formed them in the first place(Burgoyne and Stuart,

1976; Knowles et al., 1998 cited in Belling et al., 2004). These may appear to be confusing and
26

even complicated but are important when one considers what managers learn and put into

practice on their jobs. And from the perspective of an organisation one has to consider how they

can facilitate them (Rouillier and Goldstein, 1991 cited in Belling et al., 2004). Transfer has been

explained by Tannenbaum and Yuki (1992, p. 240 cited in Belling et al., 2004) as

". . . The extent to which trainees effectively apply the knowledge, skills and attitudes gained in a

training context back to the job".

Transfer is thus a process from a learning activity or program influence subsequent learning or

performance Marini and Genereux, (1995 cited in Belling et al., 2004). Though transference is

not quantifiable in terms of outcome which is usually implied, and it can be understood by

relating learning to the job context for an indefinite time period (Baldwin and Ford, 1988 cited in

Belling et al., 2004). The observations relating to learning transference range from pessimistic

when there is no transfer applied (Tannenbaum and Yukil, 1992; Haskell, 2001 cited in Belling

et al., 2004), to more positive views. These studies indicate that transfer process is not easy,

however by pointing out the things which either help or obstruct learning and its application,

hurdles can be dealt with at the same time beneficial factors can be optimised (Broad and

Newstrom, 1992 cited in Belling et al., 2004).

Previous studies have pointed out seven obstacles to transference from management

development to application in on job reality (Belling et al., 2004):

 Lack of peer support

 Lack of reinforcement back on the job,

 Time and work pressures,

27

 Lack of authority,

 Perceived irrelevance of the programme

 Lack of support from the organisation and

 Group resistance to training

 In the same way there are four supporting factors:

 Job/role aids,

 Reward;

 Support, particularly from supervisors and peers

 Opportunity to use learning

It should be pointed out that these obstacles and positive catalysts have not been evaluated

together, however essentially all researchers completely agree that these are the most important

barriers or supporters that exist. When transfer process is considered there are some issues which

affect each individual‘s transfer process experience these influences are: (Belling et al., 2004).

 Personality and behaviour of individual learner

 Workplace culture, environment and support system

 Different aspects of learning experience

It is usually assumed that all the trainees are influenced by the training in more or less the same

way, unless there is a criterion to differentiate the effects of these factors, like who is more

28

affected and how one person responds differently than another (Williams and Lillibridge, 1992

cited in Belling et al., 2004). Evidently organisational support cannot be targeted if it is not

known who needs help the most. (Knowles, 1998 cited in Belling et al., 2004).

Different characteristics which may influence transfer especially in the case of managers can be

grouped into a range of individual characteristics which may be involved in influencing transfer,

particularly in relation to managers, may be roughly grouped into Belling et al., (2004):

 Biographical and psychological essentials,

 Personality and

 Organisational elements, such as managerial experience and job satisfaction.

In case of elements relating to organisations, of which the one researched is social support

particularly in form of peer support (Huczynski and Lewis, 1980, Facteau, 1995 cited in Belling

et al., 2004). According to Belling et al., (2004):

When programs are designed and delivered effectively and participants acquire learning

outcomes as a result, those who do apply their learning are not restricted to any particular kind

of programme. All types of management and leadership development programmes, therefore, if

they are designed and delivered appropriately, have the potential to enable participants to learn

and transfer their learning back to their organisations.

Management Development and Role of Top Management

For management development to be successful it is important for top management to be

committed to it. According to Hall (1984):

29

Perhaps the most important factor in ensuring that MD is done strategically is the participation

of top management in the process. Because top management is the strategic level of the

organisation, and because top management represents the strategic business planners of the

organisation, they should also be the human resource planners. Top management should involve

in planning and executing MD” (p.176).

Purcell (1995) states:

―If top management does not support MD and if the financial control mode and short-term

investment criterion dominates, there would be a trend to drive out long-term MD investment

and destroy the basis of MD as a part of the corporate strategy” (cited in Bratton and Gold,

1999 p.50).

Schuler (1987) observes:

“Without top management support and commitment to MD the major focus of an organisation is

likely to be on activities other than MD. This is particularly true when the focus is on short-term

goals and immediate results, which allows too little time to wait for the benefits of MD” (p.396).

In a more recent study in Malaysia responsibility and support of leadership in management

development were emphasised Muhamad and Idris, 2005). At the same time the behaviour of

leadership with regards to management development can shape the level of participation from

HR managers, particularly in the strategy process (Devanna et al., 1984; Mumford, 1997).

30

Top management has to create an organisational culture which displays their ideologies and

management style which support their policies and limitations (Bratton and Gold, 1999; Hendry,

1995). Management development can be used as a way to show lower level management about

acceptable behaviour. Moreover organisations‘ leadership can create a culture and value system

which would support their strategies and control. Management development can be used by the

leadership to put forward their value system. According to Cisney:

Neither a formal nor informal approach will be effective unless a favorable climate for

development exists in the organization. The maximum development of the individual occurs on

the job through self-initiated activities.

Therefore the job situation must provide opportunity and stimulation for the development of

potentialities. The first essential of a favorable climate is active interest and participation on the

part of top management. Effective delegation of authority and responsibility throughout the line

organization is also necessary to permit the exercise of individual initiative. Challenging,

difficult, and varied work assignments are needed to extend the abilities and round out the

experience of the individual. These are some of the components of a climate which encourages

growth. Unless these ingredients are present or can be provided, there is little prospect for

success in management development. (2)

Conclusion

Management development as a branch of HRM reveals that it has a functional and structural

association with different branches on HRM (Maclagan, 1992; Shefy and Sadler-Smith, 2006;

Walton, 1999). According to Rodwell (1996)

31

“…if MD operates as an isolated, solitary activity that is not linked with other organisational

initiatives and policies, it often involves the so called „sheep dip‟ approach, where nothing else

happens to reinforce MD and often expectations about the outcomes it achieves are limited to

getting individuals to attend” (241).

Management development is an all-inclusive and holistic way to allow, guide and organise

learning strategies and policies within an organisation (Megginson et al., 1993; Walton, 1999).

This understanding is based on the assumption that management development is a business

operation , therefore it should not be considered to have outcomes just at individual levels

(Arthur, 1994; Burack et al. ,1997; Napier, 1996; Walton, 1999).

Chapter 3: Research Methods

Human resource management and human development is conducted within certain social

paradigms, the nature of human learning and subsequent performance cannot effectively be

narrowed within quantitative analysis, especially by a student with limited knowledge and

experience. Therefore there is a need to carry out research which is more interpretive in nature.

Within this paradigm interpretations are no absolute and answers are more indicative than fixed,

no matter how much information and facts one tries to gather it is not necessary that all the

information is exhaustive and in the real world just relying of facts limits the border of research.

Qualitative research is a branch of research methods where the role of the investigator is more

active compared to a quantitative survey (Muchinsky, 2003). Analysis is more related to

quantitative relationships while interpretation is linked to qualitative methods. Because of this

the process of interpreting data is not very clear-cut or explicit rather it quite vague (Patton,

32

2002). This particular research considers management development as an instrument of HRD and

how effectively it is being used as in the case of Unilever. This chapter discusses the theoretical view

behind the choice of research and details the instruments used for this study.

Qualitative Research

Since 1970s qualitative research is being used because of its flexibility and viability in different

interdisciplinary areas (Taylor & Bogdan, 1998). Qualitative studies allow researchers to broaden

their scope of study and have deeper understanding of their research topics (Lee, et al., 1999).

Qualitative researchers are willing to go beyond the limiting parameters of quantitative analysis

and the researcher is more personally involved with the research. Rather than just be an objective

observer. In organizational management setting quantitative research is preferred, however

increasingly more academicians and researchers are adopting qualitative research to better

understand the interrelationships and outcomes which may not be possible through quantitative

studies (Spector, 2005). This qualitative research relies on case study of Unilever Corporation. The

next section discusses case study research.

Case Study

This particular research is a case study of Unilever Corporations one of the biggest FMCG

multinational corporations in the world, trying to understand how management development

influences the HRD process and whether MD activity is translated into any competitive

advantage or strategic gain for the company. Through case study researchers are able to

understand different complicated interactions and issues. Case studies usually focus on a limited

set of events and conditions and there interrelationships. According to Robert Yin (1984) case

33

study explores an occurrence within its real-life setting. In addition here several sets of evidence

are used and parameters between context and phenomenon are not very clearly defined. In terms

of reliability some criticize its limited focus and question how a few cases cannot lead to a

general finding. While others believe that case studies can only be used as exploratory studies.

However case study method is being used successfully in different areas including social

sciences and business research.

A major strong point of the case study method is that it entails use of several sources and practice

in the information collecting method. The investigator establishes beforehand what data to gather

and what examination method to use with the information to respond to the research questions.

Information gathered is typically mostly qualitative, as in this particular study but sometimes it

may also be quantitative. Instruments to gather information can comprise interviews, secondary

research or review of existing literature, observation, and gathering of physical objects. This

particular study relies on secondary research or existing literature on Unilever, specifically

related to HRD and MD. While a set of interviews carried out in Unilever China: Personal Care

Division were carried out in form of qualitative interviews of 10 managers and 2 of their

superiors.

Research Instruments

To make the study more reliable and relatively broader so as to understand the general

understanding of MD in Unilever in general and its personal care division in China in particular,

the researcher has chosen two instruments to achieve research objectives.

34

Secondary Research

This particular instrument is compilation and interpretation of data that has already been

collected. For secondary research it is important to know the source of any information. This has

to be properly cited in text and also credited in bibliography. Secondary analysis is considered by

these researchers to be different from systematic review or Meta analysis or qualitative studies

which aim to compile and understand information and analyse the information to reach a

conclusion. According to Popay, et al (1998, 335), secondary research is different from

systematic review because is carried out on specific type of studies, while secondary research

analysis of combination of qualitative and quantitative datasets. Secondary data can be defined as

all the information which may have been collected by different sources, researchers, government

agencies for a purpose which is quite different from the study being conducted by this researcher

for example.

Many academics have preferred growth of secondary analysis (Szabo and Strang 1997, Thorne

1994). They advocate that this technique can be utilised to generate new information,

propositions and additional confirmation of existing assumptions. It also lets researchers to

search for new areas for empirical research and helps researchers to collect information about

populations which may not be reachable without difficulty.

It also has been found that for those individuals who are students like this researcher, secondary

research is much more suitable method (Szabo and Strang 1997). Thorne (1994) is of the opinion

that secondary analysis is not as basic as supposed and that it cannot be carried out separately.

However this does not in any way stop use of primary data collection. Primary research is

needed in many instances to make the information become more convenient, that are within

certain limits.

35

Secondary research is practical because in primary research in both quantitative and qualitative

studies, information is most of the time reliant upon the classification and perception of target

population, pre-existing conditions and their answers, therefore secondary analysis is similar to

primary because at some level all the data and research whether primary or secondary is

dependent on a researchers‘ research skills and abilities to interpret information and critically

analyse information both secondary and primary on the researcher‘s understanding.

This researcher used a combination of on-line, academic and trade journals, company profile and

reports and some books to understand corporate philosophy generally and more specifically the

HRD process and MD initiatives in Unilever.

In-depth Interviews

Kvale (1996) has referred to interviews as ―favoured digging tool‖ in the area of social sciences.

Interviewing in organisational location as in the case of this particular research, a researcher just

needs oral report from concerned people to find out about their work and different

interrelationships and respondents perception about various aspects of their work and career.

Interviews can vary from structured to semi structured to unstructured interviews. They can also

be a combination of all three as a researcher works to find more detailed information about

respondents or their perceptions. In qualitative research interviewing is a flexible process. It‘s

not done in isolation therefore it‘s like in-depth interviewing (Taylor & Bogdan, 1998).

Therefore interviewing can be defined as face-to-face engagement which take place between

researchers and interviewees, so that the respondents‘ perspective and position on different

feature of their lives, interactions and dissimilar situations are articulated directly. Detailed

interviews are essentially discussions between two individuals without any prescribed question

answer format. Quantitative surveys have close-ended questions or multiple choice questions, in

36

qualitative approach the researcher acts as a research instrument because the analysis is carried

out by him or her. He or she also decides how to put forward and phrase a question to get

reliable information.

Interviews are preferred in qualitative research because of the degree of flexibility offered, as

each interview has its own pace and speed. An outsider may consider interview as a simple

uncomplicated exercise. However an interview is packed with different standards and

interpretations that may not be obvious. Each interview may have some general similarities,

there is the opening, where the interviewer gains entry and create the rapport and tone for what

follows. This is followed by the core of the process that consists of questions and the creation of

the probe. Finally, there is the conclusion, the wrap-up, where the interviewer and respondent

start a sense of closure. It is imperative to be conscious about who the respondent is and what

sort of questions will be inquired.

Standardized Open-Ended Interview

This is the most inflexible of all the interviews. The interviewer has to follow a rigorous

preset open-ended questionnaire. There is little or no flexibility in the wording or the order of the

questions. However in spite of fixed format and avoiding digression, it is still a qualitative

interview as the responses are open-ended. This method is the most controlled and effective of

the interviewing method, it is practical as it minimises partiality especially in the case of

inexperienced or less familiar of interviewers. This is also used when the purpose is to evaluate

individuals or their performance. This methodology is the best way if the interviewer has limited

time and financial constraints. The most important disadvantage is that the interviewer has no

37

space to satisfy the respondent and there is no guarantee that the questions posed can answer the

questions.

Planning in-depth interviews

Even though unstructured interviews are flexible, however it is important to plan and

organise the entire interviewing process, as it would lead to a more coherent execution and

objectives of the research are fulfilled. In this case the researcher is inexperienced and thus has

opted for standardised open-ended interviews and observations. Kvale (1996) below has listed

the seven stages of the basic framework of the research.

1. Thematizing In this particular study the detailed thematising has been

outlined in the first chapter which not only explains the purpose of the study but also lists

research objectives.

2. Designing For this instead of just relying on in-depth interviews the

student has used two instruments. In addition the question1

3. Interviewing In this case the researcher has also taken into account

attitude of the respondents and acted as an interviewer and an observer

4. Transcribing Since the interviews were carried out in Mandarin in China,

the details of the interview are directly discussed in chapter 5.

5. Analyzing a more standardised approach was taken by this writer.

Moreover, the researcher acted more as an interpreter than an analyst as the responses

and observations were inferences.
1
See Appendix II.

38

6. Verifying In this case the notes were discussed with the respondents to

make sure that the interviewer‘s interpretations of the participant‘s response was correct

and to keep the researcher‘s bias to the minimum

7. Reporting The researcher tried to minimise personal bias while reporting

the interviews.

Over a period of three weeks this researcher interviewed 10middle managers and 2 of their

superiors in the Personal Care Division of Unilever China in Shanghai. Each interview was on

one-on-one basis and the researcher tried to keep her own personal bias at the minimum taking

noted and making observations.

Reliability

According to Stenbacka, (2001):

“The concept of reliability is even misleading in qualitative research. If a

qualitative study is discussed with reliability as a criterion, the consequence is

rather that the study is no good” (p. 552)

Personal in-depth interviews are based on the responses of the interviewees. And there is always

a possibility that the respondents‘ personal understanding might spoil the consistency of the

responses, keeping in mind the world-wide economic downturn and its impact on multinational

corporations and their employees. In addition personal bias of the interviewer might have come

into play but were unintended. In addition because of distance interviews were conducted

partially through telephonic conversations, consequently the impact of face-to face interviews

was reduced.

39

Validity

Validity in qualitative is not a specific criterion. According to Winters 2000:

―Rather a contingent construct, inescapably grounded in the processes and

intentions of particular research methodologies and projects” (p.1).

As a result soundness of the dissertation principally depends on reliability of this researcher, her

reputation and circumstances within which the responses are interpreted. In this research,

through the entire planning, interviewing and compiling process, the interview has made it a

point to minimise any kind of issues which may jeopardise the validity of the report.

Ethical Issues

In order to keep this research morally acceptable, I made sure that the interviewees were

prepared and willing to be part of the research and consent was taken from the employers, in

addition they participated in their free time. In addition all the interviewees‘ names were

unspecified so that they can avoid any unfairness because of their responses. This interviewer

has also taken an undertaking that she will only reveal the details about their skill and the

organisation itself to the degree that they have approved.

40

Chapter 4: Unilever HRD and MD
Strategy---A Review of Literature
Unilever Corporation was formed in 1930 by the merger of a Dutch margarine company and

Lever Brothers, a British soap manufacturer. Today it is one of the largest fast moving goods

manufacturing concern with a presence in 150 different countries across the globe. Its most

famous brands include Dove, Rexona, Lipton and Knorr to name a few. It has 174,000

employees as of 2007 (Data Monitor, 2009).

Human Resource development and motivation is increasingly essential for global corporations.

In the case of Unilever it has positively measured behavioural resources for being successful in

the international competitive atmosphere; it has developed the skill model, the ―Leadership for

Growth Profile" (LGP), which has been executed worldwide. It has also shown that it works

locally in different regional markets, as a multi-local multinational company. One chief factor of

its HR policy is ‗Building an Enterprise Culture‘ which supports employees to have positive

outlook using their attitude, enthusiasm, and inspiration. This culture is formed through a

restructuring process, management development performance management, training and an

effective reward system (Human Resource Management International Digest, 2002). The recent

HR strategy and subsequent MD strategy can be divided into 2 phases the first is from 1999-

2005 Path to Growth Strategy. While the second phase is outsourcing of HR functions to

Accenture to achieve more synergies. This Chapter looks at both phases of HR strategy in

Unilever though there is limited information on the One Unilever strategy available in existing

literature because this chapter needed focus on Unilever‘s HRD and MD function material

available was limited.

41

Management Development Philosophy in Unilever

There were two main objectives for management development: First to ensure growth of future

leaders internally, secondly to develop employees so that they can reach their full potential. In

this case management development was not just making people move up the corporate ladder,

rather it is to develop and cultivate expertise in a certain field. The organization indicated that

the employees are very valuable and through putting themselves through rigorous training they

were willing to learn and were aware of new development. In addition cultivating future leaders

meant the organization was willing to invest in its employees for long term rather than just

recruiting new managers from outside. According to the Unilever philosophy a ―one-sided‖

focus on the client and discounting the role of employees as major stakeholders will not lead to

growth in the organization in terms of performance growth, and in the long run might impact

consumers negatively too. When employees have the opportunity to develop themselves to their

potential with consumer-oriented clear objectives then an organization is able to achieve strategic

objectives.

Changes in Unilever’s HR Strategy and its MD Function 1999-

2005 Path to Growth Strategy2

The changes which occurred in 1999and the human resource experienced a restructuring of

philosophy. In addition to the previous HR practices new one was introduced which were aimed

2
This section is based upon Reitsma, (2001)

42

at improving employee performance and providing an agenda for skill and ability development.

All these systems were introduced globally. This is detailed in figure 1.

Figure 1: Conflicting Objectives of Management Development (Reitsma, 2001).

The figure reflects changes in Unilever‘s corporate strategy and its corresponding HR strategy

following are some of the changes that occurred are (Reitsma, 2001):

43

 The organisational structure of organization changed and became, flatter, and the

difference between each level was the degree of responsibility and decision-making

power of the employee. Moving from one level to next would be an important move.

And a real change for the managers. In addition the decision to evaluate performance

before moving the managers upwards was critical, with the superiors relying on more

objective performance outcomes.

 An analysis of different fields like marketing or finance etc. led the organization to create

a framework for career growth patterns. This was done for training and also for the

managers to plan their own development process so that it worked with the work level

system. This encouraged professionalism and also created learning opportunities rather

than just jumping from one level to another.

 A competencies dictionary was created which helped in performance evaluation, training

choices and assessments.

 Those managers who showed consistent high performance and also those who displayed

consistency in their performance were offered remuneration. This system in addition to

the work level system allowed managers to work at the same level with additional perks

and salaries, and were allowed to develop their skills without influencing their salaries.

 Target setting and target management became central to HR practices and the HR

strategy‘s focus became more goals oriented. This was carried out at all managerial

levels. And this limited practice which in the past was restricted to senior management

was applied throughout the organization.

 Giving importance to individual employee and his or her wishes in terms of his or her

personal growth, and the appraisal system changed from a backward-looking system to a

44

more looking ahead system. And would have eventually led to more discussion oriented

appraisals rather than a grading system.

 Unilever wanted its employees to take active part in their development within the

organization and according to Reitsma (2001) needed complete transparency in the

practice of assessment and criteria used to evaluate employees.

Unilever’s Management Development System

Following are some of the factors which made Unilever‘s management development system a

success:

Joint ownership by corporation and employee: it is generally accepted that MD is a business

activity, however in the case of Unilever; the responsibility is shared by the organisation and

individual worker. It is important to note that each individual is unique with different talents,

limitations and preferences, therefore with an individual‘s input these factors also become part of

the MD process. A paternalistic philosophy would not be helpful as it would not empower the

managers. The new empowering paradigm forced the corporation to give managers the tools to

improve their learning and understand. And to make sure that the system is able to incorporate

personal development plans formed by the employees. Secondly the responsibility of MD is not

just the job of HR personnel; rather it is part of the overall corporate strategy of Unilever with

the executive board and chairman being part of the process. Thus it is the overall organization

which provided the MD system and also helped in bring out managers with promise, decided on

training, and placement and kept the employees informed about the overall corporate goals. In

45

addition the managers were always in the loop about their own position within the organization

and he or she was honest about his/her desires and expectations.

MD principles applied to all: all managers had combined roles in their jobs:

 They were responsible for their subordinates who reported to them

 They were responsible to take steps for their own development.

 Their bosses in turn supported them in their own development

As a result everybody had to follow the system as it was in the general interest of the managers

to adhere to it. This was an interlinked system which became more efficient as it gained speed.

Identification of potential high performance employees at all levels: identification of

leadership and other talents should not be done at senior management levels. At Unilever it starts

at recruitment level, from which point individual hopes are discussed and assessment of the

employee‘s performance are made. This provides the employee an ideal position to start his or

her career. At each level different managers and players change although the principles remain

the same from bottom till top. This system gives more opportunity to spot talent at the earliest

possible level, either for a specialised career or for a general career. As a result throughout an

employee‘s career targeted development takes place based on the overall assessment and the

needs and wishes of the manager, inducing him or her to reach their potential. In MD two major

players are involved, the direct superior who knows the manager and managers who are two

levels up. Senior management at this level are there to ensure a certain level of consistency is

present within one SBU but also between different operating units within a group or even at

46

international level. They are especially important in the case of international transfers, as they

have the information and are in a position to assign tasks.

Keeping overall interest of the Corporation over an operating company: for building one‘s

career there is a need to develop individuals in such a manner that they have exposure to

different environments and processes, this builds in managers a depth which helps them cope

with different situations, and at the same time having an in-depth view of a core function. This

means that individual employees go through lateral transfers and work in several different

operations in their career, this is an overall loss for the operating company in the short run,

however, in the long run it benefits the individual and the company as he or she may return at a

senior post to the same operating unit in future and bring along a reservoir of experience which

would not have been possible in the absence of lateral transfers through MD.

One system: since Unilever is enormous even by multinational standards, therefore,

management development in 90 different countries and across continents with international

transfers, the system is centralised, with a set of operating principles which guide the MD policy

globally. Therefore the entire system is seamless.

MD and its integration with pay- system: management development and performance

development of managers at Unilever is integrated with the remuneration package. Unilever is

very vocal in its preference for steep careers, which includes sustained high performance. And

high performance is reciprocated with a package which reflects the expectations of the

organisation.

Transparency: a system which is designed in such a way that encourages high degree of

involvement from managers has to be transparent to be effective. Transparency works both ways

47

as on one hand a manager needs to know what the organisation thinks about him and his

potential as a future leader, at the same the organisation should also know about the views and

wishes of its managers. As a result positive synergies can help them to be realistic about their

goals.

Application of Management Development System

The above principles are important but there are some underlying major causes which need to be

understood.

Successful Career Building

A successful career of any kind is based on consistently high performance, not just displaying

high potential. It is based on:

Professional ability: Unilever has created dictionary for 10 professions, these include,

research and development, finance, HR, marketing etc. Different fields require different skills.

Through these dictionaries job skills profiles are created, which help in matching individual

performance with what job expectations are. This ensures transparency and avoids confusion.

And it can be carried out by the individuals themselves, which shows how strong the tool is.

Competencies: professional abilities describe what the managers need to do while competencies

describe how it is done. The organisation has recognised a set of principles which are linked to

exceptional performance. Competencies can be cultivated and Unilever has provided its

managers with a instructions which helps them with different competencies. These dictionaries

can be applied globally and can even be accessed through the intranet. This allows managers to

develop their own skills.

48

Experience: it is important for the managers to acquire skills and experience on different aspects

of work, and understand and can deal with a variety of random situations.

Performance development planning (PDP)
Performance development planning forms the very core of management development system.

Once a year at least, a manager discusses issues with his or her superior, which goes beyond

standard performance appraisal. This planning and discussion leads to an individual‘s

performance and sets precedence for future development. The outcomes are then discussed and

noted down.

Target setting and review: target setting is done for each individual manager, as these give

focus to the activities that a manager carries out and the objectives that he or she sets. Targets

are some priorities what are to be achieved within the regular job. Instead of end-goals they are

some dos of a job. Usually target setting and reviews occur at the start of a year.

Performance Review: this is similar to performance appraisal, as it reviews last year‘s

performance and how it was achieved. In this review different areas of acitivity and behaviour

are reviewed and those areas where skills and competencies are needed are pointed out. There

are no performance categories; instead there is a discussion about realistic progress and what to

do in future, rather than discussing the past.

Skills and competencies development plan: based on the above review a small number of

competencies are identified which need to be improved in a period of a year to eighteen months.

Usually about three to four areas are chosen. With this approach specific actions have to be

defined through which performance can be improved. Training is not the only option, other

49

actions could be to join a project where certain ability or competency is needed and even

mentoring and coaching is discussed with peers and seniors. Throughout the period reviews are

done periodically to make sure that the development is taking place according to the plan. While

planning three things are kept in mind:

 Manager‘s potential: individual manager‘s potential is measured in terms of professional

skills acquired and competencies of the manager.

 Experience: the broader the experience of the manager the higher the potential he or she

has. And the better the competency to deal with different concurrent situations.

 Manager‘s own wishes: are crucial for the PDP system and a clear and open discussion

are needed and views are noted so that they don‘t get lost. His or her input allows the

organisation to choose the right option for the individual.

Unilever’s viewpoint: this part of PDP needs input of the organisation and how it views a

manager‘s future place in the organisation. This is important because through this managers

build realistic expectations about their role in the organisation. This is not secret; rather it is

discussed with the individual. If the individual‘s goals are not in-line with the organisation‘s

view then he or she may leave the corporation. Some of the managers have to stay in one

position for a long time so that they can refine their learning; the role though is not stagnant as it

evolves as the manager works on different cross-functional roles. In addition international

transfers mean additional exposure and opportunities to build skills and competencies. Therefore

a three-four year period offers an ideal time to learn the most and deal with the consequences of

one‘s actions.

50

The human resource planning meetings (HRPMs): After PDP discussion a human resource

planning meeting takes place between different heads where internal operating company issues

are taken into account. Succession planning and organisational plans are created and career plans

are reviewed for each business group especially for managers who are short listed as high

potential. These discussions at business group level ensured that individual development was

aligned with the overall corporate strategy.

One Unilever Strategy 2005-Present: Outsourcing of HR

Functions

The Path to Growth strategy completed its 5 year term in 2005. After 2005, the organisation

became even leaner considering the global environment. It decided to outsource its HR

management function. In the One Unilever Strategy, a major feature has been to give the

employees necessary skills to ensure a successful business strategy. Unilever has invested in

HRD and learning with the help of Accenture, the organisation has come up with a universal

program for ―General Management and Leadership Skills‖ which also offers e-learning. This

capability has led to a new framework called ―Standards of Leadership‖. The program ensures

that each individual manager takes the duty for overall corporate strategy. Unilever thus is

developing successful leaders (Human Resource Management International Digest, 2009).

According to Bohmer, (2009) Unilever has become: Leaner, more effective organization, able to

deliver products to market quickerHigh HR data quality to serve as the fundament for spot on

business decisions , cost management, cost reduction In the past roles were generalized, now HR

has specialized roles: HR BusinessPartners, HR Expertise Teams and HR Shared Services.

Figure 2 shows how HR strategy has been transformed:
51

HR BP role in the Operating Framework

HR as it is now

HR as it was

5% HR TRANSFORMATION  Strategy 20 %
Strategy
 Performance
Performance Enhancement
Enhancement 55%
25%
 Transactions
15%
Transactions 30%
 Admin 5%

Administration 40 %

HR Transformation

HR vision: “To be leaders

in how people drive business

performance”

Figure 2: HR BP Process Role in the Operating Frame Work (Bohmer, 2009)

52

At present learning is a centralised process, there is a central group of providers, who deliver

different trainings, including, general, professional and leadership, both at plants and at various

head offices world-wide. The most enthusiastic of staff take training activities within the firm.

In the past there was a combination of in-house and professional development activities, but with

the new deal with Accenture, the business process outsourcing activity meant that Unilever,

which could produce its own economies of scale doing HRD in house now sought to concentrate

on its core marketing and selling its brand as it outsourced the non-value adding activities to

Accenture. According to this action, short-term transactional activities like training delivery and

training design were outsourced to Accenture, while strategic and transformational activities like

learning needs analysis, professional-skills training and most leadership and team development

were still part of Unilever‘s HRD (Human Resource Management International Digest, 2009).

The roles out-sourced are (Bohmer, 2009):

 Core HR

 Payroll

 Resourcing

 Suppliers & Vendors

 Learning

 In-sourced Service

 E-Reward

At this point according to Human Resource Management International Digest (2009), the

organisation understands the need to have intense interaction between internal and external HRD

functions. Regular meetings take place that form the basis for a successful training relationship

which has be outsourced. At the same time Unilever has an overarching framework and
53

guidelines to standardise and control Accenture programs at local, regional and global levels. At

the same time Accenture is not to be regarded as the training centre. The objective is to

differentiate between internal and external development functions. At the same time it is not

clear how training and development programs are assessed in terms of their value to the overall

business strategy, especially the role of Accenture staff. This will become more evident in future

(Human Resource Management International Digest, 2009). Figure 3 shows the integration of

tasks between Unilever and Accenture HR teams:

Service Relationship Model:

Service Mgmt roles fit with HR leadership

Unilever Accenture „Unilever Team‟

VP Global HR Service Delivery Global Account Director

Geographical Service Delivery Regional Account Directors

Directors

Service Delivery Manager Country/Cluster
Country/Cluster Account Director

Global HR Service Performance NN
Director

54

Figure 3: Service Relationship Model (Bohmer, 2009)

What is important though is that core competencies training is still retained by Unilever, this

means that Accenture doesn‘t have to have an in-depth understanding of its core values or

infrastructure. But at the same time there is need to integrate the internal and external functions

to make all activities more effective. Therefore there is need according to literature for greater

understanding and level of trust (Human Resource Management International Digest, 2009).

Conclusion

This was an overview of the corporation‘s MD policy over the past ten years. The next chapter

details the interviews carried out in the Skin Care Division of Unilever in Shanghai.

55

Chapter 5: Interviews

To make the inquiry into management development more specific in-line with the research

objectives of this research, qualitative in-depth interviews3 were used as a research tool to

understand the perception of 10 managers and their 2 superiors from Personal Care Division at

Unilever China regarding management development and its effectiveness in this particular

organization. The interviews were carried out in a series of on-on-one interviews; some of them

were face-to-face, while others were carried out over the phone. All of the respondents were

Chinese and the interviews were carried out in Mandarin. This chapter details the responses of

the respondents. Since there were concerns about keeping identities of the respondents secret,

they are given numbers in this discussion

Interviews of 10 Managers

Of the 10 managers 8 had been working with the organization for 10 years or more, while two

had 5 years experience. Because of cultural differences with western social values, it was quite

difficult to draw out the managers and their responses seemed to be guarded yet honest.

Manager #1
According to manager # 1 there was a change occurring in the HR process in general and

particularly in the MD function. MD was still an internal function except for some formal

training programs; informal development was still being carried out internally. MD was

necessary he said because it helped him in identifying his own goals, while at the same time it

3
See separate questionnaires for subordinates and their seniors in Appendix # 2

56

integrated his own expectations with corporate objectives. In his view he was able to become

more focused about his career and could see where he wanted to be within this organisation in

future. In his view formal training was not as helpful as mentoring and informal training. In this

respondent‘s case according to him MD activities helped him tremendously in aligning his own

career choice with that of Unilever. He said that MD as a function was very motivating and there

was positive impact. In his view there was not much significant change between the old and new

policy as it wasn‘t as if there was a complete break. But the organisation was definitely paying

more attention to MD now than before.

Manager # 2

Manager # 2 was a relatively new to see the difference between old and new policies. MD is

helpful because according to him his able to identify what the organisation expects of him and he

is also able to convey what his own expectations are. Communication and interactions with

different groups and preparedness for lateral transfers was something he gained while

undergoing development. He is aware of the corporate goals and he said that he was proud that

he could in his individual capacity to the overall corporate goals. He appeared to be quite

impressed with the way HRD and more specifically MD functions were carried out. He said

there was no confusion about what was expected of him therefore he knew what he had to do to

become successful he believed he had improved his performance because of this. He had joined

this organisation when Path to Growth was phasing out, but he thought One Unilever Strategy

was more focused in strategic decision making. He said right now it was difficult to assess but

with global recession this was a good decision to have a leaner but more focused workforce.

57

Manager # 3

This manager believed that MD in form of informal training was the key to management

development. The new strategy of outsourcing was a visionary idea because this had helped even

in HR to focus on the core SHRM activities. He believed all MD activity was geared towards

corporate goals. In his view the help he got from his seniors in form of mentoring was the key to

his own growth, and because interlinking of subordinate and superior growth had also helped.

He did not specify any specific competencies gained. He believed MD was the way to integrate

individual and corporate goals. His performance had been improving. From his understanding

managers‘ development was now core activity of internal HRM. The new strategy was still

evolving and things would become clearer in future.

Manager # 4

Manager # 4 was a female manager who had been with the organisation for over 10 years. She

thought that there was not a significant break from the original philosophy, instead the

organisation had learned and implemented the changes to make MD more effective. MD in her

view was necessary for internal recruitment and internal hiring. She believed that here

communication with her peers and superiors had improved and she had become better informed

about what was expected of her. Corporate and individual goals were integrated further with

MD. In her view performance was not directly affected rather there was an overall impact on her

attitude. She agreed with the view that outsourcing was a good decision as now the core HR

function was more strategically focused. She believed she had become more proactive because of

MD.

58

Manager # 5

Manager # 5 was of the opinion that there were some significant changes as there was now

greater emphasis on performance development especially in MD. Management development in

his view is important because individual and corporate goals cannot be separated it is imperative

for them to be integrated both for strategic success and competitive advantage gained by the

organisation. In his view the SHRM strategy was transforming and evolving and all employees

were in a win-win situation. He was not specific about competencies, but he thought that he had

started becoming more goal oriented. This he thought led to a significant improvement in his

performance and he did get positive feedback from his superiors. He agreed with the view that in

fact outsourcing was a step in the right direction especially in management development. In this

view MD was now an integral part of any multi-national corporation‘s strategy.

Manager # 6

This manager was of the view that every few years there was a need to change management

strategies to deal with the external environment and for any organisation to be successful it had

to be in-line with changing needs of managers. Management development was important to

achieve strategic goals. But in his view formal programs were a waste of time, as opposed to

more informal in-house development as he believed it was more effective and centred than

formal external training. He thought that in fact it was informal training that had allowed him to

develop his potential. As he was able to recognise his own skills and competencies. He believed

that performance was now the focus of development programs, the need to improve performance

was the core of MD now, and this philosophy was different from previous objectives.

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Manager # 7

Manager # 7 was a new recruit and had joined Unilever a year back. He said he was not sure

about the previous MD strategy but he was quite impressed with the new strategy. He thought

that MD was crucial for a manager‘s career growth. He said he had become more focused and

confident about his work and his interpersonal skills had developed significantly. In his view

integration of corporate and individual objectives was important as this would indicate growth of

the organisation and of the individual. He said it was too early to recognise changes in his

performance, however, he said his performance was definitely improving. About the last 2

questions he said he was relatively new to answer them.

Manager # 8

This manager was of the view that outsourcing was not a good idea. In his opinion allowing

other organisations to deal with HR transactional activities would not increase the focus but

everything would largely depend on the integration of internal and outsourcing functions. MD

was important as it allowed an individual to grow with an organisation and increased a sense of

loyalty. In over ten years he said now he knew that the right attitude and positive steps were

necessary to progress in this organisation. He said that Path to Growth very successfully

integrated individual and corporate objectives. There was a definite improvement in performance

because of MD. MD may have become focused but he was not very enthusiastic about

outsourcing.

Manager # 9

This manger was another female working in a male dominated office. She seemed driven and

believed that there were changes occurring because of outsourcing. She was a vocal supporter of

60

outsourcing. In her view because of economic slowdown and leaner organisations, it was

necessary to use external contractors for peripheral processes which were not directly linked with

core processes. In her view MD played an important role and was responsible not only for

developing managers but also helped in fulfilling long-term strategic objectives. She said she had

learned to work in teams and to improve her interpersonal skills as well as she had found out

about skills which she had not recognised. Integration of individual and corporate goals was

quite successful because it had led to reduction in divergence. In her view MD was key to

improving one‘s performance as it gave an individual opportunity to improve his or her skills.

MD was definitely more focused. Moreover because of MD she could show her potential and

move upwards in the organisation.

Manager # 10

The last manger to be interviewed was also of the view that there was not much difference

visible except for in formal training programs. In his view formal MD plans had become more

focused especially in terms of formal programs. He believed that MD was important but was

only valid in the Long-run and in terms of career development of those individuals who would

like to have career in one organisation. He had gained a lot in terms of how he could proactively

deal with different issues concurrently. MD he thought was the key to integrating individual and

organisational goals, especially in Path to Growth strategy, however it was too early to see its

impact with regards to One Unilever policy. He felt that his performance had improved

significantly. He agreed that MD was now more focused on individual employee and this was

because both Accenture and internal HRD were tackling different areas. He was of the view that

MD had become more strategic in its objectives.

61

Interviews of 2 Superiors

The pre-set questions aimed at the two superiors were a bit different because they were designed

to understand the perception and opinions of the superiors, especially in terms of how they saw

their subordinates dealing with different types of MD activities and what their responses were. In

addition, they were framed to understand the significance of these activities and the responses of

the managers working under them. Each superior had a group of 5 managers reporting to him.

Superior # 1

According to Superior # 1 there were changes in MD because of the new HR policy with more

HR functions being performed by Accenture, however since MD was part of the SHRM

therefore then difference was in terms of greater focus on individual manager‘s development

within the organisation. The senior thought that MD was fundamental tool by which higher level

promotions can take place and it was through both informal and formal development techniques

that he himself had been able to move up the corporate ladder and he saw others doing it

themselves. In his own case his subordinate became more responsible, focused and also their

communication skills had improved significantly. In addition since they were responsible for

chalking out their own development therefore they were also more responsible about the

outcomes. He thought MD was very important for integrating corporate and individual

objectives. In terms of performance he believed it had improved significantly and had a positive

impact on overall performance of his subordinates. He responded in affirmative to the question

about the effect of outsourcing on MD. MD was now concentrating on refining different skills

and abilities of individual mangers and he though the role of informal training was more

important than formal development activities.

62

Superior # 2

In the opinion of the second superior there was a definite change in the way HR policy was

being pursued by the new policy. He believed that external forces had induced Unilever to

outsource its peripheral HR activities so that core processes were kept in focus. He saw his

subordinated becoming more confident, proactive and goal oriented. They had also become more

aware about their own career goals and milestones. Each individual was a stakeholder in the

organisation and thus his or her improvement and contribution had led to achieving of different

corporate goals. He thought that MD was one of the reasons why recently there was greater

coherence and convergence in individual and corporate objectives. He said he had witnessed the

growth of individuals and their ability to deliver different objectives had improved, thus there

was a marked difference in their performance. He was all in favour of outsourcing of

transactional activities of HR as it was the need especially because of global economic

slowdown. The changes he said were subtle and did not appear over-night but they were

particularly visible in the attitude and behaviour of the subordinates, as it showed increase in

self-esteem and higher motivation levels.

Conclusion

Next Chapter discusses MD at Unilever in light of existing literature and the responses of

mangers especially in terms of the changes occurring within the organisation.

63

Chapter 6: Discussion
Discussion and Analysis

Chapter 4 and chapter 5 have discussed HRD policy of Unilever, the former being a general view

of organisational philosophy and implementation. While the latter a portrayal of the perception

of some middle level managers and their superiors working for Unilever China in Shanghai. A

general picture has emerged from the two chapters and an in-depth look at the management

development at Unilever especially with a framework provided in the second chapter in terms of

existing literature on MD.

It is important to first acknowledge that MD is the cornerstone of HRD especially in terms of

internal recruitment, development of managers and recognising potential. In the past ten years

two major strategies have been adopted, first a five year plan Paths to growth strategy followed

by a significantly different approach which has led to outsourcing of some fundamental HR

functions. However it is important to understand that strategic aspects of HRD are still internal

functions. At the same time the researcher was unable to find out how much One Unilever

strategy is a complete break from its predecessor especially in its objectives. At the same time it

appears that the new policy is considerably different because it has led to a leaner and efficient

way of conducting business and managing human resources. Interviews have also failed to shed

light on whether there is any difference between them. The interviewees were hesitant when

specific answers were required. This may be because of cultural values, and also there was a

guarded response from the respondents. But it is evident that MD is an important function for

the organisation and it relies on it as a tool of SHRM. Following sections will try to interpret the

responses within the framework of background information of MD strategy at Unilever.

64

Major Changes in HR Policy

Since there was limited information available about the new MD strategy the researcher relied on

the responses of the managers and their superiors. According to most mangers and both the

superiors there was a significant different between the two HR policies. However some of them

felt that it was essentially just a continuation of the old policy, while newer recruits didn‘t know

the differences. It appears that there are some changes but right now it is too early to say in detail

how they differ. Those who believed that there was a change in HR policy had a positive

attitude towards the new policy.

Role of MD in Individual’s Development

There was an array of views about the role of MD. All participants believed that MD was

essential however there was a wide ranging response as perceived by each individual. Some of

the views of managers and superiors are:

 Goal identification and focus

 Transparency

 Focus on core SHRM

 Internal recruitment

 Strategic goal integration of individual and corporation

 Career growth

 Loyalty

 Proactive approach by managers

 Increase in confidence

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Competencies Acquired

In terms of competencies gained, there was again a varied response from the participants, except

for two who were not very specific, most of the managers believed that it improved interpersonal

skills and communication. Some thought it made them more focused and goal oriented. While

other had been able to recognise their own abilities because of MD. The two superiors were

more specific and felt that they not only became more responsible to the organisation but to

themselves. One of them also pointed out the importance of mentoring which was not

recognised by any of the mangers. Largely the competencies pointed out were quite broad. This

researcher felt that the respondents were not very comfortable giving details of competencies.

Integration of Corporate and Individual Goals

All of the respondents agreed on the idea that MD was a tool which helped the corporation and

the individual to integrate their goals. It was through MD that an individual manger was able to

understand his or her position in relation to overall organisational development.

Influence on Performance

In terms of performance there was an overwhelming reponse. All of the respondents believed

that MD had helped them in improving their performance. In addition it had also helped

improve their motivation levels which had influenced their performance. It was generally

believed that MD‘s actual impact could be witnessed by superiors in the form of enhanced

performance and that was now the focus of new Unilever policy.

Impact of Outsourcing

Generally most of the respondents appreciated the philosophy behind outsourcing; however most

of them also felt that it was too early to assess its significance. There was only one respondent

66

who was vocally opposed to outsourcing though he admitted that he had witnessed some positive

changes. The superiors felt that on one hand the changes were subtle but already some positive

changes were being felt in the subordinates. While the role of internal development and a

mentor was also highlighted. MD was now recognised as the focal point of the core HR strategy

which was managed by Unilever. In terms of specific changes most of them believed that it was

too early to comprehend any specific changes at this point.

Conclusion

The above discussion has taken an-in-depth look at the general existing view of Unilever in

terms of MD and has also tried to interpret interviews and translate them into coherent answers

to the research questions identified in the first chapter. The final chapter takes a brief overview

of the research and gives the findings of the report with implications for HRD. It also lists some

limitations of this study.

Chapter 7: Findings and Conclusion
Overview

This dissertation has sought to understand management development as an instrument used by

multinational corporations as a strategic function, a way of internal recruitment and succession

and to gain competitive advantage. This study used the case study method to see how MD is

regarded and implemented in one of the truly global organisations Unilever. For this a review of

existing literature was done, which provided fundamental understanding of management

development as a theoretical concept as well as its application and results in terms of individual

67

growth and strategic outcomes. Qualitative study of Unilever using both secondary research and

in-depth interviews provided a clear picture of MD within the organisation. At this point the

importance of Secondary research was crucial because of guarded responses from the

respondents. Anticipating cultural refrain, this researcher had decided to use secondary research

to reinforce the responses in the interview. This chapter first details the findings, followed by

implications in human resource management and strategic management. It concludes the

dissertation with limitations and a importance of further research.

Findings

From the discussion and interpretation carried out in the preceding chapter following are some

major findings:

 In the past ten years MD has become a key function of HRD as the organization has

recognized the importance of MD as a strategic tool and also because it allows it to

develop potential talent to fulfill its strategic objectives.

 In the past ten years there have been significant changes. First Path to Growth strategy

tried to align individual and organizational goals. It also used management development

to enhance employee development and participation. One Unilever on the other hand has

been able to outsource most of the transactional functions of HR, this has led to a greater

focus on MD and developing Strategic competencies within the HR.

 From both secondary and primary research both formal and informal methods were used

for MD in both the policies. Role of mangers in determining their own growth was

highlighted in Path to Growth, while in One Unilever performance was now the key

focus of the new HR strategy.

68

 In terms of competencies several have been identified, however it appears that

interpersonal communication was an important competency, while mangers become more

responsible and goal oriented. This was observed by the mangers and their superiors.

 With time and impact of external environment MD has become increasingly important as

all of the respondents consider it the key to their personal success and also as a driver for

performance and growth within the organization.

 In case of outsourcing of peripheral HR functions to Accenture, most of the respondents

were of the view that it was too early to understand the implications.

Implications for Human Resource Management and

Development

In a global competitive environment especially with economic downturns and leaner

organisations, it is becoming imperative for organisations to strategically plan their human

resource functions in such a way that the organization can compete successfully in an ever

shrinking world. This research has shown how Unilever the leading consumer goods company

has incorporate MD as part of its strategic philosophy to gain competitive advantage and also to

make its managers a part of the strategy. As they have realised the importance of its managers

and employees and their contribution to the company‘s growth. This indicates that role of MD is

going to increase as an instrument of HRD. In addition, from international point of view China

being the biggest market of consumer product has provided an excellent example of how

international operations have to be dealt at local level. Since this researcher in spite of her

Chinese background felt that some questions were not answered as explicitly as needed. In terms

of performance, MD was considered to be an important driver and according to all the

69

respondents it was perceived to be help in performance. it appears from the findings and

discussion that MD not only effectively enhances competencies, it also leads to better

performance.

Limitations

There are several limitations associated with this research. This study was carried out with

limited finances, it was also had time constraints which gave this researcher limited time to carry

out the entire research. Secondly since the primary research was carried out in China and

Mandarin was used for the interviews there will be a margin of errors due to translation

problems. This researcher is a student therefore this was her first effort at a formal research

report she had no expertise in conducting the research. This report was a very limited in its scope

therefore it‘s by no means exhaustive.

Further Research

Human resource management is an important part of the overall business strategy and its is

continuously growing in importance especially in strategic planning. This report is a limited

endeavour, and reflects the perceptions of employees. There is a need to explore the context of

MD further and to interpret the impact of new Unilever outsourcing policy, because it can help

other organisations with their MD processes.

70

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Appendix II: Questions for Interviews

Questionnaire for Managers

 Do you see any major changes occurring in MD because of new HR Policy especially

with outsourcing of HR functions?

 How do you think MD helps in your development and how does it fulfil Unilever‘s

strategic objectives?

82

 Specifically what major competencies were gained by you in different formal and

informal MD programs?

 How successful was this exercise in integrating corporate and individual objectives?

 How was your performance influenced in MD?

 Has outsourcing transactional HR activity made MD more focused, how?

 What specific changes do you see because of MD?

Questionnaire for Superiors

 Do you see any major changes occurring in MD because of new HR Policy?

 How do you think MD helps in your subordinate‘s development and how does it fulfill

Unilever‘s strategic objectives?

 Specifically what major competencies were gained by your subordinate in different

formal and informal MD programs?

 How successful was this exercise in integrating corporate and individual objectives?

 How was the performance of your managers affected by MD programs?

 Has outsourcing transactional HR activity made MD more focused?

 What specific changes do you see because of MD?

83

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