Assignment 1

Role of Training in Unilever

21/10/2008
[Type the company name]
S@Y@

Submitted To
Dr Nadeem Ahmad Bashir

Group # 7
Group Members:

Saba Khalid 05108005

Hassan Sabir 05108023

Maryam Mustafa 05108077

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Table of Contents

Serial no. Particulars Page no.

1. Open System Approach 01

2. Components of System Approach 02

3. Value of a System Approach 03

4. Uni-lever Pakistan 06

5. Human Resource Department 07

6. Data Collection Design 8

7. Questionnaire 8

8. Information Collected 10

9. Conclusion 13

15. Bibliography 14

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ACKNOWLEDGEMENT

We at first bow our head before Allah Almighty who bestowed his countless
blessings upon us, guided us towards the way of success, blessed us with courage
of facing problems and obstacles; enable us to accomplish this task.

All thanks to Allah Almighty, the most Beneficent and Gracious who enabled us to
complete this assignment.

We found no words to say thanks to our families for their cooperation and support.

Our kind teacher has always remained supportive and taught us so well, that we
are able to apply that knowledge in practical field of life.

We wish to place our deep sense of thanks to GIFT University who has provided us
this great opportunity while doing our studies in its true sense. Valuable
experience and knowledge of the persons removed the difficulties at all crucial
junctures.

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Executive Summary

In this assignment, we have conducted and interview with the HR manager of Uni-

Lever for knowing about the role that training plays in their organization. We have

collected information regarding the process of training, pays and incentives, tenure

of the training, employees need and readiness for training, employees’ motivation

and many other aspects of training and Role of HR department in this regard.

We have develop a structured questionnaire and we have conducted a phone

interview with Uni-lever employee and get all the information that we have

needed.

After getting the information we have summarize it in a well mannered way and

conclude it according to the information and current situation of the other

organization.

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Uni-lever Corporate Mission

Unilever's
mission is to add
Vitality to life.
We meet
everyday needs
for nutrition;
hygiene and
personal care
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with brands that

help people feel
good, look good
and get more
out of life.

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Unilever Pakistan

The Unilever Pakistan Limited (UPL), formerly Lever Brothers Pakistan Limited was established
in Pakistan in 1958. The town of Rahimyar Khan was the site chosen for setting up a vegetable
oil factory. Unilever Pakistan is the largest FMCG company in Pakistan, as well as one of the
largest multinationals operating in the country. Now, Unilever is operating in six factories at
different locations around the country. The Unilever's Head Office was shifted to Karachi from
the Rahimyar Khan site in the mid 60's.

If you travel around the world, you will find homes across all continents where people use
Unilever products. In fact, in many countries it would be hard to find homes without Unilever
products. Unilever is one of the largest, most international companies in the world. Products
fall into two main categories, "Foods and Home" and "Personal Care", each of which is vast.
Unilever sells over a thousand brands, many of which are market leaders - in a country, in a
region or in the world. Unilever Pakistan Limited needs no introduction. In the world of
consumer products it has created an indelible name for itself with brands such as Lifebuoy,
Lux, Surf and Dalda. By far the largest consumer products company in Pakistan, UPL is a part
of the consumer products giant Unilever.

Unilever Pakistan Limited (UPL) was established some fifty years ago in the then newly
created Pakistan. The town of Rahim Yar Khan was the site chosen for setting up a vegetable
oil factory in 1958 and that is where the first UPL manufacturing facility developed. Today,
Unilever Pakistan is a force to reckon with. Its contribution to Pakistan's economic
development cannot be overestimated. Now operating six factories at different locations
around the country, the company contributes a significant proportion of the country's taxes. It
employs a large number of local managers and workers. It provides a pool of well-trained and
highly motivated manpower to other segments and has introduced new and innovative
technologies into the country.

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Human resources Department

Unilever's people are our most important asset. In Human Resources (HR), you'll support and
develop those people, enabling them to deliver outstanding business performance.

An eye on the future

Unilever culture is about empowering you, both to contribute to our business objectives and to
achieve your own personal and career goals. They also keep an eye on the future, with our
'leadership behaviors' initiative aiming to identify the next generation of leaders.

HR's overall function is to devise and implement strategies and policies to ensure that we have
the right people with the right skills. Within that, there are numerous options for you. For
example, it could be covering culture change, leadership development, strategic talent
management, coaching and skills development or alignment of reward with performance.

For human resources you need

• Strong interpersonal and leadership skills.

• The ability to see the big picture while delivering on day-to-day goals.
• A real interest in how people drive business.
• The strength and integrity to take tough decisions.
• An interest in coaching and developing people.

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Data Collection Design

First we have developed a Questionnaire that have mentioned below and asked all these
questions on Phone. We have talked with the Operational Manager because in Lahore there is
only a strategic Business Unit of Unilever. However, Operational Manager has all information
regarding their HRM department; that helps us.

Questionnaire

1) Do you provide training to your employees?

2) Do you provide High-leverage training or continuous training?

3) Do you provide training on performance based?

4) Do you provide educational opportunities to your employees?

5) Does training is an on-going process in your organization?

6) What is your training process in your organization?

7) What is your training policy?

8) What type and duration of trainings do you provide?

9) Do you think the training given in your organization fulfills the training needs?

10) What incentives do you give to the trainees?

11) Do you conduct the training evaluation?

12) What are your career planning & development programs for the employees?

13) Do you have career counseling mechanism?

14) How your organization values to the performance appraisal?

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15) Do you implement the performance management system?

16) What are Performa’s and formats for the performance evaluation of employees?

17) What purposes do you achieve form the performance evaluation?

18) Do you feel any flaw in the present appraisal system?

19) How do you ratify the rater’s errors and biases?

20) Do you believe the compensation plan is designed according to employees needs?

21) What are other incentives to the employees and managers?

22) Do you offering medical facility to the employees?

23) What percentage of employers provides some formal training?

24) How much is budgeted for formal training?

25) Who receives most of the training?

26) Does the amount of money spend vary by department?

27) How much training is being outsourced?

28) How is training delivered?

29) Who controls training procedures?

30) How much training is being developed by outsource contractors?

31) Does globalization affects the company’s process of training?

32) Do employees share their knowledge in the workplace?

33) What competitive advantage you have on your competitor because of training?

34) What is the impact of training on employee retention/turn over?

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Information Collected

 Yes, they are providing training to every employee of the organization according to their
job requirements. English Communication training is provided to the every employee
because of their multi-national environment.

 Training is provided on continuous basis and employees are trained to built relationship
among jobs, work units and company. Employees acquire new skills and apply them on
their jobs.

 Managers take an active role in identifying training needs and help to ensure that
employees use training in their work. Managers have a look on the performance of the
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employee so that they can have a check and balance of the training procedures. Managers
use informational maps that show where the knowledge lies in the organization.

 They are providing educational training to every employees, it include support of courses
offered outside the company, self-study, and learning through job rotation. Courses are
taught by the professors of Lahore University of management sciences and Lahore
School of Economics and some other universities of Lahore.

 Yes, training is an on-going process in the Unilever because they continuously want
improvement in the employee’s performance. As environment is changing rapidly and
accordingly the needs and wants of the customers, so for the satisfaction of customers
they want to improve their products and services. For improvement and innovations they
need on-going training. So, with the change of the world they can change their skills and
knowledge accordingly.

Training Process

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Feed
Back

 Our Company is product oriented through the very innovative and hi-tech network. To
meet the technical requirement and to ensure customer satisfaction, our company has
very strong training infrastructure. We have one university at IBA and 15 management
staff colleges along with many training schools for lower staff workshops throughout the
country. Our training policies and procedures are very accommodating to all employees
without any discrimination.

 Training institutes conduct TNA before the commencement of new fiscal year. On the
basis on the need analysis, these institutes chalk out the training programs for whole year
as per their specialties. These training programs are endorsed to all field regions from
where staff is deputed for said course accordingly. The trainings are normally for one
week; however some training spanned over 3 to 9 Months.

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 Almost, Unilever is conducting every sort of the training which is basic requirement for
the operations of the company. All our trainings needs are being fulfilled through our
training programs and institutes; however foreign trainings are also imparted to the
engineers and managers of the company.

Training Incentives

 Wage & Salary administration.

 Incentive Pay

 Insurance

 Vacation Leave administration

 Retirements Plans

 Profit Sharing

 Stock Plans

 Every training program is formatted to evaluate the trainees during the process and
course of the training. However, the trainees do perform after training very successfully
to operate and maintain the Unilever Network.

 The Company has endorsed education policy, in which 75% expenditure will be born by
the company for the professional degrees at the 10 best universities of the country.
Employees are encouraged to get admission in the degree courses and they are given the
NOC’s for the study purposes.

 These are very innovative ideas which are now being implemented by new management.
Career counseling is not being made at this moment. However, there is career planning
wing which shall also offer career counseling plans in future.

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 Definitely, the performance appraisal is the process of individual performance evaluation
and our company has very strong & effective performance evaluation mechanism.

 Very recently this concept has been implemented for the company managers. Key
Performance Indicators (KPI’s) are developed for the managers and their performance is
judged on the basis of the achievement of those very objectives. This mechanism is on
the quarterly basis and is very effective so for.

 There are three to four different Performa’s used in the company for the performance
evaluation of the employees. These Performa’s are placed at Annex-H, I & J for officers,
officials and MT’s.

 The performance evaluation reports (ACR’s) are recorded in dossier of each officer and
official. The reports are very confidential and used for performance improvement,
compensation plans, promotions and transfer programs etc.

 Our ACR’s system is traditional and need improvement. In the new management setup,
all these things will be shifted on the corporate information system (CIS) for online
performance evaluation reports.

 Our performance reporting system contains double signing system. Officers and officials
ACR’s are reported by the immediate supervisor and countersigned by the second higher
officer. In case of MT’s the reporting officer and HR manager jointly rate. In the new
system, the concerned employee is also involved in the appraisal system. Hence,
involvement of the two superiors reduces the errors and biases in the rating of the
employees.

 The Company is giving pay and allowances about 80% above the other government
employees. Our managers and engineers are getting 4 to 5 times more than the pay and
perk of the other companies in the country.

 Employees and managers are getting almost same type of pays and allowances. However,
the non-managers or non-gazette employees are getting additional benefits i.e. Twice a
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year uniform allowance, wedding allowance for daughters of Rs 50000, Burial charges of
Rs. 10000, Death compensation Rs. 200000, interest free advances/ loans and leaves
encashment annually etc.

 Unilever is providing complete medical facility to the employees and his dependents in
the three hospitals at Lahore. Same type of the facility is available throughout the country
for all employees. Besides medical facility, company is providing transport and telephone
call facility to the employees.

 In Unilever about 80% employees are getting formal training.

 They are spending about $20 to $30 billion.

 53% of training was received by employees, 27 % by managers, 20 % by executives.

 Yes, the money spend on training on different department varies because of the need of
employees. Some employees need more training than other employees.

 Unilever reports that they use both in-house and outside suppliers of training for all levels
of employees. Outside sources deliver 56% of training and others are doing by other
resources.

 70 % instructors led in a classroom and rest of the training is given by using different
resources and technologies.

 All the training is controlled by the HR manager.

Conclusion

Uni-lever has a well managed process of training and they are giving good training and
development facilities and incentives as compare to the other companies. Unilever culture is
about empowering employees, both to contribute to their business objectives and to achieve thier
own personal and career goals. They also keep an eye on the future, with ‘leadership behaviors'
initiative aiming to identify the next generation of leaders.

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HR's overall function is to devise and implement strategies and policies to ensure that they have
the right people with the right skills. Within that, there are numerous options for employees. For
example, it could be covering culture change, leadership development, strategic talent
management, coaching and skills development or alignment of reward with performance.

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