Case sTudy unilever - ConTenTs

Company style openness

we are open and friendly to contacts and communication. when we have problems, we speak about them openly. we are not afraid to voice our opinion even if it goes against the majority. when discussing the problems, we propose solutions.

we aspire to make our company comprehensible for those who work with it. every employee understands the company structure and areas of responsibility, has access to non-classified information. He is informed about key developments in the company’s life.

we care about what people think of us. we are open for feedback and proposals from outside.

individuality

we take people as they are. we show respect to different styles of work, thinking and appearance. we consider that the employee may choose any style of dress and behavior which is convenient for him and does not interfere with his fulfilling professional tasks. We appreciate bright individuality in people. every one of us has a zest. our ideas are a surprise.

enthusiasm (drive)

we are enthusiastic in our approach. we feel inspiration and encouragement to give the world something more than just a pro- duct. we have sense of humor, optimism, positive and good spirits. We find pleasure in what we are doing.

CASE STUDy UNILEVER - INMARKO CASE STUDy UNILEVER - INMARKO

The purchase of inmarko group by unilever

2. synergies in brand promotion (through into account when combining financial and

and its proper integration in unilever business

mass media)

trade policies.

during mergers 4. synergy in administrative costs

can create a variety of synergies. in economics

inmarko did not invest in advertisement

inmarko headquarters (together with effectiveness as a result of combination, advertising campaign on the television financial department, IT and HR) is located

a synergetic effect is an improvement in work

of their product until 2006, when the national

and aCquisitions 12

integration, merger of parts into unified whole.

started for the first time. This advertising in novosibirsk. Preserving management

during merger and acquisition, synergies stop

campaign focused on two super specialties — team, strengthened by unilever leaders, in

being abstract notions — they are identified

Magnat brunette and Magnat blond. in 2008 Novosibirsk, all supporting functions (finances,

and each synergy is evaluated.

Inmarko advertising budget totaled around 350 iT, Hr) could be relocated to unilever service synergies can show themselves through million rubles directed to aTl advertisement. center in omsk, which could make it possible two major aspects: sales and expenses.

unilever is much more dominant when it to considerably decrease labor expenses while while calculating synergies, it is important comes to investing in media promotions. reducing the total headcount. Furthermore, to realize the necessity of taking into account

in russia, the price on purchasing the

a set of functions like, for example, safety

not only the potential growth of income (and broadcast time for advertisement is calculated

control can be outsourced (thus reducing

cut in expenses), but also readiness to incur

individually for every client and that is why the labor expenses and shifting costs from labor

expenses on carrying out synergies. Fulfillment

power of negotiation is of high importance. expenses to expenses for third party services).

of synergies is a complex process, which is

Consolidation of companies will substantially

5. synergy in sales department costs

conducted during company’s integration, and increase negotiation power and will contribute

Currently inmarko has a network of

often expenses on integration substantially

to achieving better terms and conditions when

10 branches. Merging teams, internal

exceed planned figures. Also it is essential to

purchasing media services.

restructuring and letting go a number of

keep in mind, that synergies can’t be reached

3. synergy in transportation and storage

employees can significantly decrease the

instantaneously, and it’s important to expect

increase in production volume will lead expenses of the united enterprise. Sales can in which timeframe certain synergy can be to restructuring and consolidation of two also be stimulated with inclusion of inmarko achieved.

separate logistic networks into a large-scale goods distribution into distribution network of

Hereafter, as an example, possible joint network. due to the scale effect this can unilever. synergies from unilever and inmarko merger decrease the corresponding maintenance

at the same time there are certain

are cited.

expenses. However, one should not forget that issues in unification of sales teams as ice

1. synergy in purchase of raw materials restructuring of logistic network is a long and cream business requires special assets (low

and packing

high cost process.

temperature storage facilities, frost cameras

growth of values, due to purchase of

unilever can also be characterized by a in cargo vehicles fleet, special sales equipment

different raw materials can lead to major more stable level of stock during the year, faster

at retail outlets), which imposes certain improvements on the part of suppliers. with circulation of receivables (15 days instead requirements to distributors. These issues

delivery expansion, suppliers are likely to give

of 80 days) and payables (70 days instead of

are of significant impact on sales department

discounts leading to reductions in the product

78 days). altogether, introduction of unilever’s headcount decrease possibility.

cost. in particular, the discount rate of sugar

management techniques into inmarko can

6. synergy in technologies

and vegetable oil can usually be amounted to

improve financial indicators of the latter.

incorporation of unilever process solutions

1.5-2 %, condensed and dried milk — to 3-4 %,

However, if the clientele of both companies

in inmarko manufacturing lines could also

while discounts on purchase of products with

is not merged and the overall business pre- lead to costs reduction, along with promoting

higher price, such as various filling agents and

sence is not increased, this might result in the environmental friendliness when it comes

12 when working with the case participants may not focus on this

packing, can reach 10%.

considerably worse conditions for clients in to working conditions and manufacturing

list, they are free to add any other synergies and to exclude those described here if they find this to be desirable course of action.

the ice-cream market. This should be taken processes.

Case sTudy unilever - synergy eFFeCTs during Mergers and aCquisiTions Case sTudy unilever - synergy eFFeCTs during Mergers and aCquisiTions

The main problem, which arises during names of the acquiree would suffer a transfer.

integration, is how to properly and effectively The personnel replacements would not be companies

of Companies: Corporate culture helps the company in

distribute the spheres of influence between

numerous, nearly all employees would remain

the acquirer and the acquiree. will integration

in their positions, and the only need would be to

being successful in its trade. For instance, the

be effected as acquisition, merging of equal identify the roles of the top ranking managers. business “good today is better than perfect tomorrow”

entities, or as transformation? There is no There would be a possibility of existence for principle can be productive in FMCg or iT

single answer to this question, although various corporate cultures, sometimes even Consolidation industries, where being ahead of competitors

there are models that could be held up as an

with different lists of values/principles.

and capturing the market share is important.

models and The same principle may not work in other

example.

3) Combined model

there are several models distinguished

This integration model represents a companies, in oil & gas industry for example,

by the extent of centralization of management combination of elements of the above models Corporate where the cost of error would be too high and

in various proportions. during merging, there where a “measure thrice, cut once’”principle in such a case, one company would fully could exist different options for incorporation would rather be applied. any culture can be

1) authoritarian model

Culture

blend into the other (acquirer as a rule) of the acquired company into the acquirer’s evaluated only with reference to a specific and build into the existing organizational

organizational structure, or creation of a strategy of a particular company. There is

structure. There would be a full integration of

new one differing from the structures of both no poor or good culture; there is culture that

business processes and a replacement of top

companies. a selective integration of business facilitates company’s efforts in achieving its

management of the acquiree. The consolidated

processes would take place. For example, goal, and culture that undermines them.

company would continue operating under the logistics, sales network, marketing, feedstock

How should corporate culture be managed

brand name of its mother company, while and advertising space procurement procedures

in case when two companies are merged or

the acquired company’s brand name would would consolidate, while production processes

one company is acquired by the other? The first

not be used at all. The acquiree would inherit

would be implemented in an autonomous thing to do is to understand the development the mission and values of the acquirer, and a control mode. A mixed team of top managers strategy of the merged company both in substitution of the corporate culture would would be created with a possibility of hiring general and in relation to eventual results take place.

of new employees, which would contribute by of the integration. would it lead to adding a

2) autonomous model

providing missing experience, or their transfer new product in the company’s portfolio to be

in such a case, the acquiree would assume

from the acquiring company to the acquired marketed alongside other products? or should

a position of a comparatively independent one. The management of brand names would the acquired company be integrated in the element in the acquirer’s structure, e.g. it also include several optional scenarios: value chain of a joint product?

would become a separate division. once creation of a new brand name, incorporation

Which specific processes in every company consolidated, the companies would then of brand names into the acquirer’s brief-case, would be altered after the integration, and continue acting almost independently of one transfer of a part of the acquiree’s brief-case.

how exactly? The second step is to identify

another. This would be a reasonable scenario

The value system would then transform in every company’s culture the features that

provided that the business of the consolidated

with a possibility of a simultaneous would complicate or assist implementation

companies remains diversified. The acquiring

assumption of the acquirer’s mission at a of this strategy, and also to determine the

company would set up an overall objective (e.g.

global level and preservation of a part of missing, but important features. Based on volume if sales or revenue), while business the functioning philosophy and corporate the understanding of cultures of the merging processes would continue to be controlled culture of the acquired company. There is an companies and the strategy, a scenario of by managers of the acquired company. The option of development of a new culture based working with the merged company’s corporate new brand names would be included into the on effective factors and values of the two culture should be elaborated. acquirer’s brief-case, or vice versa, the brand

companies this time, not one.

Case sTudy unilever - inTegraTion oF CoMPanies:

BUSINESS CONSOLIDATION MODELS AND CORPORATE CULTURE BUSINESS CONSOLIDATION MODELS AND CORPORATE CULTURE

organizational Changes in the Context

• 1 integration into a new model of career

of hr strategy

management and professional development is estimated by the key business indices –

when two companies are being merged, processes;

“profitability” and “market share” — e.g. in

Changes

the Hr department is required to perform a • Retention of key employees in short and long one, two or three years after acquisition. The consistent job in the following directions:

in Company most crucial integration success rate for Hr

terms;

1) Changing the organizational set-up • Harmonization of remuneration and exemp- department can be “Hr budget” (salaries and includes as follows:

tion system.

exemptions) and “efficiency”. Organizational

• Optimization of organizational structure;

3) Transformation of corporate culture changes should also be tracked for timing, as

any transient state of an organization can turn decision making system, information • Understanding of the integrated company’s out to be inefficient. Therefore, it should be management;

• 1 Transformation of business processes, should be based on the following principles:

culture;

minimized.

• Support of released manpower.

• Employee assistance during integration into

2) Coordination and adaptation of talent

a new cultural environment (main principles,

management system (human assets) implies “language” and traditions, corporate standards solutions in the following areas:

and policies);

• Assignment to key managing positions;

• Observation of high moral standards before,

• Transfer to equivalent levels (grades);

in the process of, and after integration.

Restructuring flow-sheet in the context of HR Strategy development

HR Strategy

HR

Business

Organizational

Result

Result

Structure New Structure

Talent / Human

ation

Asset

ormation

egr

Renivated Organization

ofit

ansf Int

Pr

Tr

Corporate

Enhanced

Culture

Culture

Case sTudy unilever - organizaTional CHanges in CoMPany Case sTudy unilever - organizaTional CHanges in CoMPany

organizational Changes

by particular goals and conducted through employee and a manager: the employee ment would distinguish several employee

information support of restructuring

transparent steps. It is essential to explain

has either to stay on lower position and categories:

Changes in employee professional life new employee duties as quick as possible, to develop necessary skills or try to realize his/ • Key employees, which would be needed to can lead to a rise of the stress level: certain show goals and future career potential.

her potential in other fields. The very fact of assure efficient performance after integration; employees will perceive these changes as

• Employees, which would not be needed an opportunity to advance, while other will

resistance to changes

mismatching can appear unexpected to both

within the consolidated structure, but should see it as a threat. Planning informational always accepted with resistance. employees

as a rule, changes in the company are sides and require administrative decision.

be retained for the period of integration; announcements on every restructuring can respond layoffs, reduced productivity and between inmarko and unilever emplo-

Furthermore there is issue of cooperation

• Employees, which are opinion leaders or stage is one of vital tasks. all corporate rejection of new ideas. They could refuse the yees — in what proportion should unilever “opinion shapers”; channels should be used: headquarters’ rules of unfamiliar corporate culture. The representatives be incorporated in the new

• All the rest.

announcements — public or through e-mails, main task of management in this case — as organization, how to soothe differences in all these categories should be surveyed in publications in corporate mass media, series quickly as possible to reduce the resistance, corporate culture, the level of skills, values order to find a way to identify such employees of meetings with various managers and to transfer personnel in the neutral stage, and

and traditions. Generally mixed teams and develop an action plan for each category. employees, getting feedback and reacting then to stage of contribution.

are characteristic of higher possibility of should there be an aim for retention, there on employees’ requests. if a vision of future,

in order to minimize such risks, it is conflict, the predictability of administration is must be a clear understanding of motivation after the changes take place, is not clearly necessary to maintain systematic and regular

declining, and efficiency reduction could be and retention of an employee. communicated to employees in advance, the work to ensure highest participation of observed. it is important to establish a proper

upon completion of activities to retain hunger for information can occur, which in employees in the process of reorganization selection procedure so that it is both just and the key employees, a dismissal procedure its turn might lead to appearance of rumors.

should be thought over. respect for both the It is difficult to separate empty rumors from decision-making).

(both by informing and involving them in non-discriminating.

retention of talented members and key employees which are staying and those who objective information and that is why extra

are leaving, can help reserve their loyalty efforts could be needed to show the real state is to forecast reasons, which can lead to

The goal of managers and Hr specialists stakeholders

For the first time in the company after the and retain them as potential partners of of affairs to all employees.

employees’ resistance, as well as to design merger may be an outflow of personnel, but it the company. The best long-term strategy during any changes, the most talented initiatives, which could help to prevent such is not always a negative process. The company is a dismissal compensation, reservation of employees are likely to use them to move up scenarios or minimize negative effects and may leave employees who doesn’t support the exemptions for the transient period, assistance inside or to move out to another company. adapt people to new conditions.

new owner or doesn’t fit into values framework in further employment. noncompetitive employees are likely to adjust

Competence assessment

of new organization. But business success

to new circumstances and all in all are not so

The results of personnel assessment can and stability depends on professionalism of

dynamic. in addition, it is of high importance to

show that lack of necessary competence does

key employees (for example highly qualified

illustrate well in advance and in simple words not allow employee to effectively hold desired

technologist or efficient seller).

Case sTudy unilever - organizaTional CHanges in CoMPany Case sTudy unilever - organizaTional CHanges in CoMPany

Automation and

QA/QC system

Financial East

Legal dept.

Central region

Commercial Sector

Management

Key accounts

Marketing Moscow HR

Production

Logistics Economic

Security

Case sTudy unilever - aPPendiCes Case sTudy unilever - aPPendiCes

Branch

Manager

Delivery Section

Transportation &

Sales

Manager

LogisticsManager

Manager

Head of

Head of

Head of

Sales Section Sales Section

Sales Section

Case sTudy unilever - aPPendiCes Case sTudy unilever - aPPendiCes

Field sales units have a functional organizational structure in each region. each region contains two independent branches sales: the group Food and group of products for Home and Personal Care (HPC).

Vice-President (Customer Development)

National Sales Director (Field Sales)

Regional Sales Manager - Food / HPC (6 regions)

Customer Territory

Regional

Marketing

Sales Manager

Sales

Executive (30 sales areas)

Coordinator

Channel

Modern Trade

Modern

Customer

Distribution

Development Activation

Trade

Sales

Supervisor

Activation Executive Executive

Executive

Supervisor

Case sTudy unilever - aPPendiCes кейс unilever - раздел

Graphic Expression

Distinctive

Features

Advantages Disadvantages

e Company

Unity of command principle –

Simplicity of High requirements to

Manager

only one direct manager

organizational forms and managers' qualification -

tructur

Position ranking – top to

clarity of interrelations exceptional competency

Line Manager 1

Line Manager 2

bottom

Coordination of in all areas (accounting,

Supervision of downline

managers' actions production, sales, etc.)

Linear

subdivisions in all activities

ganizational s Executive or

e Company

Departments are formed by

Exclusion of duplication Hard to maintain

Manager

functionality (production,

of managerial functions constant interrelations

tructur

sales, finance)

High competency of between various

Multiplicity of personnel

specialists functional services

Head of Functional

Head of Functional

subordination to managers

Long duration of

Department 1

Department 2

in accordance with the

decision-making

Functional

scope of competence

procedures

ganizational s

e Director

Plant

Division of managerial labor

Rational combination of Duplication of managers'

Linear departments – main

linear and functional and specialists' functions

job (sales and production),

interrelations in the process of

tructur

functional departments –

Acquittal of the chief line management

appendix 4. types of organizational struCtures

support services

manager from detailed Impossibility of quick

-functional

(finance, HR)

problem analyses response to changing

Dual subordination of

conditions

an organizational structure is a form of labor division by making and implementation of Product Linear

ganizational s

Absence of flexibility of

Sales

interrelations between

managerial decisions. There are linear relations (administrative subordination), functional departments relations (by business segment without direct administrative subordination), interfunctional or

or

cooperative relations (between subdivisions of the same level). depending on the character of relations, there are several main types of management organizational structures:

Graphic Expression

Advantages Disadvantages e Company

Graphic Expression

Unity of command principle –

Simplicity of

High requirements to

e Corporate

Differentiation of

Decentralization of Multilink character of

Manager

only one direct manager

organizational forms and

managers' qualification -

Center

management by product

management management and

tructur

Position ranking – top to

clarity of interrelations

exceptional competency

tructur

types, geographical

Assurance of closer bond expansion of hierarchy

Line Manager 1

Line Manager 2

bottom

Coordination of

in all areas (accounting,

distribution, or client groups

between manufacturers Complication of

Supervision of downline

managers' actions

production, sales, etc.)

Division

1 Division 2 Linear Division 3 Division is an element of the

and customers informational links

Quick response of the Escalation of costs for Executive

subdivisions in all activities

Divisional

organization, and is entitled

to independently solve

organization to maintaining of

ganizational s managerial personnel ganizational s environment changes

current business issues

or

or

e Company

Departments are formed by

Exclusion of duplication

Hard to maintain

Fusion of project activities

Improvement of Complication of

Manager

functionality (production,

of managerial functions

constant interrelations

e Company Manager

and functional organiza-

personnel management organizational

tructur

sales, finance)

High competency of

between various

Multiplicity of personnel

specialists

functional services

tructur

Department 1 of Functional Head

of Functional Head

Head

tional structure

efficiency

interrelations

Department 2

of Functional

Department 3

Dual subordination of

Flexibility of organiza- Possibility of conflicts in

Head of Functional

Head of Functional

subordination to managers

Long duration of

executives – to project

tional structure temporary teams

Department 1

Department 2

in accordance with the Executive decision-making

Project Manager А

Executive

Executive

manager and to functional

Efficiency of decision Achievement of long-

Functional

term goals of Executive

scope of competence

procedures

Matrix

Project Manager В

department manager

making

High goal orientation of organization may be

ganizational s or

Project Manager С

ganizational s

e Plant

Division of managerial labor

Rational combination of

Duplication of managers'

Director

Linear departments – main

linear and functional

and specialists' functions

job (sales and production),

interrelations

in the process of

tructur

functional departments –

Acquittal of the chief line

management

Finance HR

Planning

Procurement

support services

manager from detailed

Impossibility of quick

-functional

(finance, HR)

problem analyses

response to changing

Dual subordination of

conditions

Product Production

Product

personnel

Absence of flexibility of

Linear ganizational s

Development

Sales

interrelations between

or

departments

Graphic Expression

e Corporate

Differentiation of

Decentralization of

Multilink character of

Center

management by product

management

management and

tructur

types, geographical

Assurance of closer bond

expansion of hierarchy

distribution, or client groups

between manufacturers

Complication of

Division 1 Division 2 Division 3 Division is an element of the

and customers

informational links

Divisional

organization, and is entitled

Quick response of the

Escalation of costs for

to independently solve

organization to

maintaining of

22 ganizational s

current business issues

environment changes

managerial personnel

Case sTudy unilever - aPPendiCes

or

Position

FTE

Personnel cost, EUR

2. Department of automation and QA/QC (total)*

2.1 Process development

2.2 Management systems development

3. Financial sector (total)

3.1 Planning and business support

3.2 Internal audit

3.4 Finance & accounts

3.5 Category development

6. Commercial sector

6.1 Eastern department

6.1.1 Urals division

Yekaterinburg sales branch

6.1.2 East division

Krasnoyarsk sales branch

Barnaul sales branch

6.1.3 Siberia division

Novosibirsk sales branch

Omsk sales branch

Novokuznetsk sales branch

appendix 5. personnel struCture and Costs in inmarko, 2008 14 6.2 Central department

6.2.1 Tula division

Tula sales branch

Kazan sales branch

Personnel cost,

FTE 88 EUR Personnel cost, 6.3 Key Accounts department 104117 EUR

Position

6.4 Moscow department

"Inmarko" 7. HR sector (total)

16 5 11900 8862 2. Department of automation

1. Management 7.1 Branch service desk

9 12285 and QA/QC (total)*

2. Department of automation 7.2 Employer personnel and brand name development

62 2 79220 2450 2.1 Process development

and QA/QC (total)* 7.3 Business partnership

1772 1 891540 4375 2.2 Management systems development

8. Production sector (total) 2.1 Process development

64 4 41258 6174 3. Financial sector (total)

2.2 Management systems development 8.1 QA/QC department

272 27 212356 33492 3.1 Planning and business support

3. Financial sector (total) 8.2 Procurement

221 13 126952 9065 3.2 Internal audit

8.3 Novosibirsk production unit 3.1 Planning and business support

539 8 287160 9590 3.3 Accounting

8.4 Tula production unit 3.2 Internal audit

120926 452022 3.4 Finance & accounts

8.5 Omsk production unit 3.3 Accounting

692 7 278030 8750 3.5 Category development

3.4 Finance & accounts 8.5.1 Cold Storage Facility

17 7 21088 7298 3.6 Monitoring

9. Economic security 3.5 Category development

717 61 407570 34066 4. Legal

3.6 Monitoring 10. Logistics (total)

22 22 21466 17301 5. Marketing

4. Legal 10.1 Product logistics

18 15 27003 9107 6. Commercial sector

5. Marketing 10.2 Transportation logistics

1824846 6.1 Eastern department

6. Commercial sector

900855 6.1.1 Urals division

6.1 Eastern department

142482 Yekaterinburg sales branch

6.1.1 Urals division

115812 6.1.2 East division

Yekaterinburg sales branch

186606 Krasnoyarsk sales branch

6.1.2 East division

112448 Barnaul sales branch

Krasnoyarsk sales branch

88 54453 6.1.3 Siberia division

Barnaul sales branch

527493 Novosibirsk sales branch

6.1.3 Siberia division

266844 Omsk sales branch

Novosibirsk sales branch

149832 Novokuznetsk sales branch

Omsk sales branch

100528 6.2 Central department

Novokuznetsk sales branch

309188 6.2.1 Tula division

6.2 Central department

24 31955 Tula sales branch

6.2.1 Tula division

62 64467 Kazan sales branch

Tula sales branch

107409 6.3 Key Accounts department

Kazan sales branch

88 104117 6.4 Moscow department

6.3 Key Accounts department

444655 14 7. HR sector (total)

6.4 Moscow department

7. HR sector (total)

16 8862 one euro – 41 roubles 7.2 Employer personnel and brand name development

Exchange rates for calculations shall be adopted as follows: one dollar - 30 roubles, 7.1 Branch service desk 16 8862

7.1 Branch service desk

9 12285 7.3 Business partnership

7.2 Employer personnel and brand name development

2 2450 8. Production sector (total)

7.3 Business partnership

891540 8.1 QA/QC department

8. Production sector (total)

8.1 QA/QC department

23 8.2 Procurement

8.2 Procurement

Case sTudy unilever - aPPendiCes 27 33492

Unilever RUB

Inmarko

Total

Function

Customer Development

Marketing

Supply Chain

General Management

Facilitites (incl. security)

Total (main departments)

Deliver

Make

Plan

Total (production)

Marketing research

Communications

Finance (incl. regional)

Research & Development

HR (incl. regional)

Information Technology (incl. regional)

Legal

Total (support functions)

Case sTudy unilever - aPPendiCes Case sTudy unilever - aPPendiCes

Additional cost,

Elements of Harmonization

EUR

Managers (Work level 2+)

Directors (Work level 1)

Social Tax

Current relocation cases

New relocation cases (incl. relatives)

Long – service award

Test – drive implementation (to provide corporate car)

Recruitment policy harmonization

Medical Insurance for relatives Wl2+

Harmonization compensations, benefits and rewards (all work levels)

Harmonization compensations, benefits and rewards (for workers)

Inmarko on-top bonuses

Retirement policy

Mobile phone policy

Total

Case sTudy unilever - aPPendiCes Case sTudy unilever - aPPendiCes

Parameter

Thous. $

Revenue

Net cost

Feedstock and materials

Sales technical support

Transportation

Storage costs

Advertising

Salaries and taxes

Overhead operating costs

Depreciation in net costs

Case sTudy unilever - aPPendiCes Case sTudy unilever - aPPendiCes

we are building a winning culture, in which every employee is encouraged to grow to his or her full potential. we have developed a performance- based reward structure that recognises people have delivered results and have the right values for our business.

Our goal is to deliver Unilever’s promise to consumers and the world through a pioneering employment experience that our competitors wish they had.

That means we don’t just encourage employees to give us feedback, we have developed leading-edge tools to help us hear clearly how reward feels from the point of view of our people.

we aim to give every employee access to a Total reward statement in real time. This describes and values every element of the reward package. it also provides useful information on how the elements of each individual’s package work.

we will stretch the content and coverage of Total reward statements to more than just money; we want employees to be able to see the value of all their benefits at Unilever, including learning to help individuals keep track of their progress and potential.

our Total reward statements also have a unique feature in ‘rate-my-reward’ through which our people can tell us what they think of every aspect of their package. How important is each element to an individual? How satisfied are they with it? We want to see reward from our employees’ point of view and hear their suggestions for improvements.

we create a longer-term reward development Plan for each country so that we can continuously improve the relevance and effectiveness of the rewards we offer our people.

We know that reward is important. Reward should not be a ‘black box’. We believe that rewards should be ‘open, fair, consistent and explainable’ and we aim to deliver every aspect of this in everything we do.

we also offer employees attractive incentives. if the company does well in meeting its goals, our total pay should be around the top quarter of the market. That means that pay for highly rated people making an exceptional contribution will be towards the top of the market range. If we all work together to deliver excellent results for Unilever, we will be well rewarded.

Case sTudy unilever - aPPendiCes

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