International Management and HRM

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Executive summary

HRM and globalisation have been a critical concept for the organisations around the world. This
paper specifically discusses the factors related to HRM policies and procedures that can place a
negative impact on the globalisation aspect of an international organisation. The report has
considered Unilever as the case study organisation. The study in its course has also provided a
list of recommendations following a detailed analysis of the internal and external environment to
ensure the higher growth of the organisation.

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Introduction 4

Findings 5

Internal and external environment analysis 5

Critical discussion of HRM practice 11

Recommendations 16

Organisational culture 11

HR Strategies and HR management 14

Employee relations and voice 15

Conclusion 16

References 17

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Introduction – Task 1

Globalisation is a critical concept at the present date because of the changes that have been
occurred in the business world for a decade. The businesses, however, face various problems
concerning the management and other aspects. Therefore, it is mandatory to learn how to ensure
higher benefit from having effective human resource management in the firm. However, such
aspects place a firm opportunity for individuals to have an engagement in the activities that can
further provide a competitive advantage to the organisation. The function of HRM initiates the
development of the aspects and opportunities that urges the workforce to have motivation and
creation of appropriate skills and knowledge for the achievement of the higher goal (Truong, van
der Heijden and Rowley 2010).

Such aspects have made the concept of HRM subject topic for many scholars (Brewster and
Mayrhofer 2011). For this reason, this particular report provides information about the HRM
practices in the organisations by engaging in the evaluation of the current practice in the well-
reputed firm through the utilization of various theories and models. Such aspects would ensure to
provide a critical assessment of the HRM policies and procedures in the organisation that
essentially affect the organisational objectives at large.

For that, the organisation’s HRM aspects would be evaluated by the utilization of 3 theories and
other internal/external environment analysis. Furthermore, this particular research would enable
the researchers and readers to find and have the like interaction with trends that are relevant at
the present date concerning HRM policies and procedure. Lastly, appropriate pieces of literature
will be reviewed for better access to the answers such that the organisations around the world can
be benefited by the findings of this report.

The Unilever Company is based in the UK that will be critically evaluated for the developmental
analysis of the HRM practices for a better understanding of the subject matter (Hurn 2014). Such
aspects would help the author in critically assessment, evaluation and review of the current HRM
practices and the recommendations that can aid many other readers to have innovative
management.

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Findings

This section would provide a critical evaluation of the company dealing with the consumer goods
sector. This critical evaluation would include the internal and external environment analysis
related to the HRM practices throughout the organisational world. By having a systematic
interrogation of the surroundings within the firm, the report aims to an arrangement for the
readers and author to gain appropriate knowledge about the effects of current managerial skills.
This would be specifically done by using external analysis factors such as SWOT and PESTLE,
and internal aspects such as the Harvard model of HRM. After that, two HR practices and
policies will be evaluated that has been leading the organisation to its ultimate growth
concerning three selected global objectives. The utilisation of appropriate literature will be
effectively done to ensure the higher growth of the organisation and the Author as well.

Internal and external environment analysis – Task 2

SWOT analysis of Unilever

The company is a leading brand in the consumer goods sector around global marketing. The
SWOT analysis is meant to provide the aspects of the external environment that affected the
company both positively and negatively (Grant 2016). The identification of relevant model and
other aspects will be appropriately done by using the information gained by this stage. It would
provide a series of strengths, weakness, opportunities, and threats of the firm that has been
dealing with HRM policies and related aspects. It would specifically help in the determination of
the factors that polished and shaped the HRM practices in the firm at the present date (Lachat et
al. 2011).

● Strength
One of the strengths of the organisation has been a strong brand image. It is because of the
strength of the brand, the organisation is able to penetrate the market effectively and attain a
higher competitive advantage (Santos and Laczniak 2015). Furthermore, the organisation has
achieved the benefit of higher production and business growth by having the increment in the
product portfolio because of the activities such as mergers and acquisitions. Such aspects led the
firm toward the ultimate aspect of increased revenue. Other than that, the organisation also has
the benefit of utilisation of strategies that have benefited the firm at large concerning the sales

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and objective fulfillment. The international expansion has also helped in gaining success and
brand popularity (Pulver 2012).

● Weakness
One of the primary weaknesses of the organisation is the imitable products. Other companies can
directly have an investment in the products designed by Unilever company and have its
imitation. Furthermore, the organisation, even though have a higher advantage of product mix, it
fails to have appropriate diversification of the products that limit the company’s consumer goods
industry. Furthermore, the company does not have direct connection and influence over the
consumers at large. It means that the company places influence on the consumers through the
help of retailers (Rampier 2012).

● Opportunities
One of the promising opportunity that the organisation has is concerned with business
diversification. The organisation can enter the businesses concerning the market other than the
consumer goods industry (Gareth Bell 2013). Furthermore, the product attractiveness can also be
enhanced by the utilisation of the strategy of product innovation. Production innovation factor
can also work effectively in the health sector to make the consumers satisfied. The company can
also engage in shaping the company to become environmentally friendly and increase more
customer base throughout the world. The increasing revenue can have enhanced growth and the
provision of the opportunity in new market segments (Allen 2013).

● Threats
The organisation faces the problem concerning tough rivalry concerning consumer goods
industry. Such threats reduce the organisation’s market share in the internal performance of the
firm. Other consumer goods companies can also imitate the product that can cause a great threat
to the firm. Other than that, the retailers that sell the products of their own brands can also act as
a bigger threat to the firm development. Furthermore, such efforts may also enhance the
popularity of the retailers that strive to improve the brand image and become rivals (Dirisu,
Iyiola and Ibidunni 2013).

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PESTLE Analysis

This special analysis is meant to ensure that the external factors have been essentially analysed to
identify the factors that can affect the growth of the organisation. It is certainly mandatory to
have the recognition of such aspects because it would determine the purpose of the employees
and HRM individuals that shape the HR procedures and policies. It would determine the primary
aim and focus of the individuals working inside the organisation that would essentially shape the
individual working ability.

● Political factor
The political aspect is certainly the most essential aspect concerning the consumer goods
industry. In some countries like the United States, political stability helps in the minimisation of
challenges that occur during the strategic implementation of the HRM policies (Sandvik and
Storli 2013). However, the European country political issues have been proved to be a potential
threat to the growth of the organisation. The threat goes against the consumer market of the
organisation that has the potential of reducing the consumers and organisational benefit.
However, the political aspects such as free trade relations in the developing countries can aid the
company in having the ultimate benefit of selling individual products in such environments
(Sandvik and Storli 2013).

● Economic factor
One of the factors that have been affected the organisational economy is the increment of wages
in the countries under the developing aspect. It can be both the opportunity and threat for the
organisational development (Olins 2017). Furthermore, Unilever can attain development of
business throughout the world because of the growth of consumer market. For instance, the
organisation can get the ultimate opportunity to have growth in the China market. Other than
that, the firm can get benefit from having business in the countries that are already developed
(Lowitt 2013).

● Social factors
Health is certainly one factor that has concerned many individuals throughout the world till
today. Rising concern has enabled individuals to select the products that can be more
complimentary for their individual growths (Beauchamp and Bowie 2014). Furthermore, the

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environmentalists also get the ultimate opportunity to go against the firm and state that the
products and manufacturing processes, leading to pollution. However, such aspects can present
more opportunities by having the adaptation of the products that can be environmentally friendly
(Wheelen and Hunger 2011).

● Technological factors
Rising automation can create new opportunities for the organisation to have well defined and
appropriate processes that can produce better results and have satisfied employees. The
organisation can have the utilisation of new processes and technologies to aid the employees to
have effective production and faster growth of the firm (Keller, Parameswaran and Jacob 2011).
However, the same aspect can become a threat for the organisation be enabling the competitors
to get the benefit of competitive advantage by having the newest technologies, even better than
Unilever (De Geus, 2011). However, the technology factor can enhance the growth of the firm be
enabling ease of transportation of the critical products from the production place to the retailer.

● Environmental factors
The company has rising opportunity in the environmentalism that can initiate the improvement
of the products and invite new customers at the same time. It has been affecting the
organisational production since many years enabling the consumers to go for another substitute
that can be environmentally friendly (Schäfer 2016). However, such aspects can create
opportunities for gaining the attention of many customers by becoming a firm that provides
products friendly to the environment. The organisation can have the further provision of
programs and campaigns that can promote the organisational products and environmentally
friendly attitude (Perlmutter 2017).

● Legal factors
Environmental regulations in many countries have affected the organisation at large concerning
production and even sale of products. Social and environmental responsibility can ensure the
development of the organisation at a faster rate. Other than that, the patent laws and consumer
rights regulations can place drastic effects over the organisational growth concerning the
international expansion (Korngold 2014).

Harvard Model of HRM

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This particular model is meant to provide the internal business analysis of Unilever to provide
information about the utilisation of HRM practices at the present date. It would help in shaping
the aspects that have led the entire HRM to act in a certain way. Furthermore, the organisational
members would get the opportunity to have developed HRM policies after an appropriate
evaluation of the following observed factors.

Source: Armstrong and Taylor (2014)

● Stakeholder interests
One of the aspects that have a direct effect on the growth of the organisation has the involvement
of shareholders and other stakeholders in the organisation. The primary shareholders include the
management team members, employees, consumers, government, community, shareholders, and
Unions (Chowdary. and George 2011). Such aspects have placed a direct impact on the
organisational development that ensured the firm toward wider success. However, such aspects
can act in the opposition to the organisational development by leading the firm toward the
downfall. If the organisation has enabled to dissatisfy the stakeholders, the organisation can face
the greater impact of such an aspect (Waddock and Bodwell 2017).

● Resource management
Resource management is certainly another aspect of the organisation that has affected the growth
at large. However, such aspects are likely to be done by having effective policies for the

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management of the resources appropriately (Farndale, Scullion and Sparrow 2010). Such aspects
are the leading ability of the HRM team members to ensure that the management of the policies
is done without any effort. In the case of Unilever, the organisational HRM members are able to
allow the firm to have effective resource management by having enabled policies that can further
ensure growth. However, such aspects also have the influence of motivation and behavior of the
employees on production and the organisation at large (Gospel and Sako 2010).

● Resource outcomes
After having an appropriate management of the resources and the employees, it is further
mandatory to look at the outcomes such efforts undertaken by the organisation. In the case of
Unilever, it is essentially critical for the organisation to ensure development. For this, the
organisational HR team is involved in the management of the resources and other areas of the
firm. However, it has been observed that recently, the firm has been involved in showing less
attention to the employees’ influence over the resource management and other sectors that as
affected the commitment level of the individuals working within the firm (Harzing and
Pinnington 2010).

● Situational factors
Several situational factors have affected the organisation at large, even including the threats and
other weaknesses that were observed previously. Due to the rising need of having instant
development, the employees are being forced into the new environment that is rarely handled by
the organisational members. Such aspects have enabled the firm to get dissatisfied employees
and poor quality production (Van Tilburg et al. 2013).

● Longer term consequences

Since the organisation is facing problems concerning the production rate and the employee
dissatisfaction, the organisation is sure to attain long-term consequences of the activities that
have been mishandled by the HRM team (Koller, Goedhart and Wessels 2010). Such aspects can
lead the organisation toward ultimate downfall and appropriately lower sales of the consumer
goods product. Such aspects have enabled the organisation to have lower talent management and
poor talent development programs are available within the firm. It has also slowed down the HR
selection and employee retention procedure (Porter and Kramer 2011).

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Critical discussion of HRM practice – Task 3

Training provision is one of the aspects of the organisation that has been provided to employees
in many firms. Training is an essential part of the organisational progress that can ultimately lead
the individual toward higher progress (Hofmann and Kotzab 2010). It is certainly the most
essential part of the development, especially if the firm is involved in having the utilisation of the
developmental changes for the progression of the firm. If the employees are not given
appropriate training about the technical development, the employees are likely to get carried
away because of their individual feelings of anger and frustration (Zhu, Dou and Sarkis 2010).

Similar aspects have been happening in the organisation concerning the development. In order to
ensure that the organisational members understand the job responsibility, they are supposed to be
given effective training, which is certainly not the priority in Unilever right now. Scholars made
the assumption that utilisation of bias policies would not certainly lead the firm toward growth,
but the practical use of such aspects would surely do so (Mortara and Minshall 2011).

Another aspect is related to talent management, in which the employees are not being used
according to their individual talents. Such aspects happen when the management team is focused
more toward the external issues without even considering the development of employees at large.
The primary purpose of such policies should be the development of the organisational culture,
which has not been happening in the organisation today (Laszlo and Cescau 2017). Other
policies in the organisation include Ethnicity and ability to discriminate that has been effectively
handled by the organisation.

At first, three theories will be selected for the organisational development and proper
recommendations. The selected theories are Organisational culture, HR strategies and HR
management, and Employee Relations & voice. These have been selected according to the
identified issue in the previous section. The following section would provide an individual
evaluation of the theories to provide appropriate recommendations.

Organisational culture

Objective: the primary objective of the organisational culture is to retain the employees within
the firm such that the firm can attend higher growth at a faster rate.

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Impact: SPA model will be used to have the determination of the aspect that is most affected
because of the issues observed within the firm. For this, employee and employer had been
selected to see which one had been the most affected because of the implication of the new
strategy.

● Employee:
Mindset: The mindset of the organisational workforce had been inclined toward laziness and
attitude not focusing on work. They had mostly been frustrated because of poor organisational
culture

Effect: the primary effect of the above aspect had been the poor outcomes and slower production
rate. It can be termed as the primary aspect of the organisational outcome that produces negative
results. However, only if the organisational culture can be somehow managed by the
organisational members, the employees will feel more connected with the firm.

Physical: even if the employees had been physically present within the organisation, their mental
absence proves that the firm had not been successful in engaging the workforce in the working
environment.

Social: such employees are seen to have a less social connection with the organisation members,
that produces enmity among each other. The senior management team cares less about such
employees that remain socially aloof.

Philosophy: these employees have the philosophy of having to get home faster, not being able to
care about the product quality they are producing.

Ethnicity: the employees are not even able to have effective communication with the group even
in a social group that has been connected with the organisation due to alienation in the
organisational culture.

● Employer:
Political/economics: the employer usually has both the political and economic benefit as
compared to the workforce that is being handled. However, it was observed that many employers
are not aware of their responsibility that enhances the problems concerning the advancement of

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the organisation. It certainly alienates the employees by having the creation of a weak culture
within the organisation.

Globalisation: such aspects also affect the globalisation aspect in which the employer might be
involved in.

Implication:

● Process: in order to change the situation, the organisation should ensure that the processes
should have more involvement of the employees with employers so that their individual
relationship can be enhanced. Such efforts can lead the organisation toward the ultimate
growth by enabling the firm to have effective progress by also including the employees in
the decision-making process. In this way, the organisation can achieve better
organisational culture by having cooperative employees.
● Products: the employees should also be involved in the product innovation processes that
can improve the organisational culture within the firm.
● Purpose: the organisation should change the purpose such that the involvement of
employees is publicly noticed, which can also make them workforce effectively satisfied.
● Profitability: the employees should be given appropriate profit share that they deserve.
● Partnerships: if the strategic alignment is done with other countries, the employees are
sure to be included to their fullest extent.
Intervention

To ensure that the organisation has been making any changes, the strategies made should be
analysed, evaluated, and monitored.

Outcomes:

W: satisfied employees

H: higher motivation

A: mutual understanding

T: minimum time spent in trying to improve productivity

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HR Strategies and HR management

Objective: the primary objective of the HR strategies and HR management is to ensure that
employees are able to face higher growth.

Impact:

● Employees:
Mindset: the employees have been unhappy due to the poor management of the organisation.

Effect: the lower production rate is certainly the biggest effects of poor management.

Physical: the employees are not able to ensure higher growth and they might even take longer
leaves.

Social: the employees are not able to effectively socialise with other management members.

Philosophy: these employees think that the management team has nothing to do with them.

Ethnicity: the employees do not feel like belonging to the firm.

● Employer:
Political/economics: poor management occurs when the management neglects ill practices done
by the employers.

Globalisation: such aspects place a drastic effect on the globalisation aspect.

Implication:

● Process: mishandled procedures and zero training

● Products: employees show degradation in production rate
● Purpose: loss of purpose among the workforce
● Profitability: company attains zero profit
● Partnerships: fear of losing partnerships because of degradation
Intervention

The management team should ensure that the proper strategies are made to properly monitor the
growth of the individual employees through appropriate feedback sessions.

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Outcomes:

W: increased productivity

H: active employees

A: active participation

T: time off employees can be saved

Employee relations and voice

Objective: the primary objective this factor is communication of respective perception.

Impact:

● Employees:
Mindset: the employees have been unhappy due to poor communication.

Effect: less attentive at work and employee alienation

Physical: more leaves in the organisation

Social: no socialisation with senior members

Philosophy: they have more misunderstandings

Ethnicity: the employees do not feel like belonging to the firm.

● Employer:
Political/economics: poor management occurs when the management neglects ill practices done
by the employers.

Globalisation: such aspects place a drastic effect on the globalisation aspect.

Implication:

● Process: mishandled procedures

● Products: lower production rate
● Purpose: zero awareness to organisational purpose

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 ● Profitability: company attains zero profit
● Partnerships: fear of losing partnerships because of degradation
Intervention

Proper communication and feedback sessions should be held where the management can finally
hear employees and have actual communication.

Outcomes:

W: increased productivity

H: highly motivated

A: mutual understanding

T: time spent on communication can be saved.

Recommendations – Task 4

This section would provide the practical implication of the efforts that can be used for the
development of the organisation. This recommendation will be appropriately supported by the
demonstration of the implementation aspects. Evaluation of the practices within the organisation
will be one in this section to have the provision of appropriate recommendations for the firm
growth.

Conclusion – Task 5

This paper specifically dealt with the aspect of globalisation and HRM practices that have been
occurring in the organisations at the present date. For that Unilever had been used as a selected
firm. It was observed that even if the organisation has achieved global benefit, the firm can still
face a downfall if the management has not been used effectively. Many issues in the HRM had
been observed that can be easily solved by utilising the above recommendations.

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