Unilever and Proctor & Gamble Essay Sample

9 September 2017

A Frenchman named Henri Fayol ( 1841-1925 ) . although an applied scientist came up with a theory. He changed the ideas of concern disposal and sculpted a construction of direction that is practiced even now in this twenty-four hours and age by a huge figure of companies worldwide. This theory of his. now normally known as ‘The 14 rules of direction by Fayol’ is traveling to be applied in two mega-organisations such as Uniliver and Proctor & A ; Gamble ( P & A ; G ) : Proctor & A ; Gamble and Unilever are two large transnational corporations that manufacture a big scope of consumer goods such as drinks. nutrient. personal attention merchandises. merchandises for the place. etc. The former is an American transnational corporation while the latter is a Dutch-British transnational corporation. In around 1997. Unilever decided that it was clip to get down populating up to its possible.

The new aim to increase focal point and better consequences. unsurprisingly go a precedence. Clear way was set and it was agreed about nem con that the company should direct its focal point on specific undertakings and merchandises that mattered. For case. the sale of the chemicals concern in 1997. although considered as a really promising chance. if holding been allowed to stay in the portfolio would hold resulted in a divergence of managerial attending. labor. support. etc. This helped Unilever impart more of its clip and energy into their other merchandises as they didn’t have to worry about the chemical concern any longer. This and other such cases finally lead to a steep growing in the development for Unilever. In the 1990s. Unilever realized that it wasn’t developing and turning really fast – both in footings of net income and size. The head of the many jobs was that they focused a considerable sum of clip and energy on excessively many undertakings. most of which did non necessitate that much attending. Finally. Unilever realized that although they had the equal cognition and means to turn on a much faster and larger graduated table. non plenty was done to work the economic system to do a serious and desirable growing jet for them. A serious lacking of enterprise was merely but obvious.

Although there was creativeness. there was no 1 to take up the wand and run with the thought. Inaugural doesn’t halt at the thought. What makes it count is when the thought blazes into a world through the flickers of executing. Since the start of the new century. thoughts were executed and the steady growing was inevitable. And to promote this. Unilever invested US $ 1 billion for the twelvemonth 2001 dedicated for the intent of research and development. It besides added an excess US $ 5. 7 billion for the selling of its merchandises. In an inspirational film Remember the Titans ( 2000 ) ; the manager of a high school American-football squad is faced with the undertaking of unifying his participants who are of both races. black and white. At that clip. due to the fortunes sing racism. to even believe of equity between the two antecedently mentioned races as a possibility would be madness. And to add to the coach’s mountain of a state of affairs. he needed credence into his squad as he was an African American. But one line that doesn’t fail to talk to the bosom of the spectator is when Coach Boone. standing on the same land where the Gettysburg Battle was fought. expresses the desire for his squad to develop the espirt de corps by shouting out these words to his squad. “If we don’t come together on this hallowed land. we excessively will be destroyed! ” Equity and esprit de corps travel hand-in-hand.

And Unilever. acknowledging that they were one of the most international companies in the universe. ensured that by first settling the fact that each individual was equal to another and cipher was higher than another by race. faith. sex or any other factor. Because without recognizing equity. people can non develop the espirt de corps which requires harmoniousness and integrity among people. Once Unilever had dealt with equality among the employees. it was easy to blend people into different squads and therefore bring forth greater consequences as different positions and positions were added to teamwork with the aid of different backgrounds. huge experiences and diverse civilizations from these employees. A really similar policy was followed and still is followed in P & A ; G. P & A ; G’s strive for regard to be shown throughout and on every degree of the company hopes to finally see a complete abolition of force. favoritism. subjugation. etc. and therefore finally develop the esprit de corps for itself in harmoniousness and integrity. Many organisations consider the wage of its employees slightly of a delicate fuss.

The existent battle lies in happening the right balance between working hours. benefits. committees and wages that will profit both the company and the employee. However. if this ‘balance’ is met. the opportunities of a company maintaining its employees run enormously high. In the instance of Unilever. they had made a program to maintain their employees every bit long as they perchance could. They started out by first choosing the right people for the occupation. By and large. these were people who showed high potency. Once the individual was selected. a good wage was given to him along with sensible working hours and plentifulness of benefits. This resulted in a steady turnover from the employees and a stableness of forces as employees were happy with their on the job conditions and didn’t feel the demand to happen work in new grazing lands. It was besides of benefit to Unilever as effectivity and overall consequences turned for the better of the organisation. By maintaining its employees. Unilever was really giving them much more experience in their peculiar field of work and besides heightening the opportunities of publicity within the company instead than outside engaging which normally turns out to be a more expensive and drawn-out procedure.

P & A ; G by and large has the lesser sum of jobs when it comes to wage and stableness of its employees. As the employees are introduced into the company after seminars. development plans and leisure trips to the U. K. and Ireland. a comfort zone is unwittingly built for them. They are besides given particular attending and are made to go to several classs on the debut and operation of P & A ; G. Besides a heavy wage. employees are awarded immense inducements and fillips for finishing undertakings. Incentives are given to three classs of productiveness: top performing artists ( those who perform much better than the set mark ) . cardinal subscribers ( those who perform what they were asked ) and those who perform below the mark set for them. The company sets its wage on the same degrees as that of other major worldwide companies but chooses to present high fillips to promote its employees to avoid absenteeism and slack in productiveness. In 2001. Unilever found the demand to split work. after the procurance of top companies such as Bestfoods and Slimfast. These new methods of direction split the focal point from a really general position to a specific manner of direction. A separate section was set up to overlook the proceedings for nutrient and another was set up to make the same for homo and personal attention. Each section had its ain research squad and concern squad.

Hence. different marks were set for each section so that each section would endeavor for excellence through a monolithic encouragement to its invention and quicker determination devising. which would ensue in a quickening in the execution of those determinations. Unilever. with its long-run attack to direction and growing. found that it is better for an person to travel from one runing company to another ( within Unilever ) so as to acquire the maximal experience he perchance can and to broaden his position on direction itself. Although this may look to be as a mark of uncertainness and unrest in the short-run. in the long tally this is a policy has proven dramatic consequences as directors return back to the first subdivision as senior directors and company function theoretical accounts. Puting the general good of the company foremost means puting the organisational aim as precedence over the personal end. This doesn’t imply that the personal aims of the employee are to be crushed and that they are to make merely as the company orders.

What this really means is that even though every employee has his/her ain ground for fall ining the peculiar company. imparting those grounds in such a manner that it is good to the company and to the employee is what is desirable. P & A ; G allows its employees to take drawn-out holiday interruptions and work lesser hours a hebdomad but on a status that when the employees are working. there is a 100 % productiveness and effectivity from their portion. Even though it may look as a though P & A ; G is losing clip because its employees are working less compared to those in other companies. it is really the solution to their high productiveness rates. When it comes to ‘calling the shots’ . the people in higher places with the greater authorization make the determinations. Authority is the right to give orders and to obtain obeisance. There are chiefly two ways in through which these determinations are taken: centralisation or decentalisation. Most organisations use a mixture of both systems. Centralization is when the determinations are made at the caput of the house. Although considered as parent companies. both Unilever N. V. ( Netherlands ) and Unilever plc. ( U. K. ) operate a batch as a individual entity.

A commission of seven members. led by the presidents of both subdivisions in Netherlands and the U. K. are responsible for strategically taking the other smaller subdivisions around the universe. Ever since the 1970s. Unilever had been following such a construction. Although this may look the best manner to travel about doing determinations. it is really a very clip consuming and energy disbursement method. And because of this centralisation. there was a monolithic failure when Unilever wanted to unify with other companies. Ever since 2005. the determination to deconcentrate power has proven to be the right measure frontward. Even though this is a long procedure that can non be done nightlong. and is still in the procedure of being wholly realized. the benefits of this alteration are bearing fruit for Unilever. However. the scalar concatenation is still being respected in Unilever. This means that the higher up the concatenation the individual is. the more authorization and duty is granted to him. It besides ensures that every individual still has a foreman to describe to. As famously said by Uncle Ben to the chief character Peter Parker portrayed by Tobey Maguire in the action film Spiderman ( 2001 ) . “With great power comes great duty! ” so does the same apply to direction. If a individual has authorization over another. so he is besides responsible for the development of that subsidiary.

Besides if a individual has a foreman. so no 1 else is allowed to give him instructions that change the initial direction given to him by his ain foreman. This means that there must be some kind of integrity in bid when it comes to teaching a individual. A individual can non hold two different higher-ups giving him instructions over one same affair. This will take to heavy contradictions and confusion among the subsidiaries. Decentralization is the sort of order that runs in P & A ; G. Employees. unlike those in Unilever are allowed to do certain determinations within their boundaries drawn out to them. They are given much more authorization but besides on their home bases. come a batch more duty. Despite P & A ; G being an exceptionally big administration. the communicating that appears to be taking topographic point between directors and employees is surprisingly really informal and societal. Even though formal meetings. are held between a director and his subsidiary. in P & A ; G a different type of communicating is noticed. Here the senior director is allowed to speak to a junior employee anytime he feels like even to the extent that a insouciant tiffin is allowable and frequent.

In add-on to that. employees are encouraged to subject suggestions on a quarterly footing to the HR section where so an one-year elaborate feedback is forwarded to the director based on the suggestions and ailments sent in by his employees. Discipline from Employees can non be overlooked. To obey the regulations and ordinances set by the administration requires non merely subjecting subsidiaries but besides good higher-ups at all grades. The same disciplinary guidelines are followed at P & A ; G and Unilever. where employees are expected to work with unity. in all honestness and with the extreme regard for their colleges and clients.

Recently the criterions of relationships between people both inside and outside the company have been raised. Malpractice. fraud. payoff. etc. of any degree does non have any kind of amusement whatsoever. Before fall ining the company. each and every employee is warned that there are terrible penalties that come with such patterns. Overall. there isn’t much of a difference between both Unilever and P & A ; G as both of them run about the same sort of concern. They both trade with so many merchandises and hence drama immense functions in the planetary market when it comes to merchandises like theirs. That is why they have so many similarities when it comes to train and equity. They besides see each other as competition and the competition between the two has surely caused the two to hold some differences in direction manners like the concatenation of bid and order. wage and stableness of its employees.

Mentions

1 ) How Procter and Gamble Survived Through Innovation – A Case Study – a knol by Osman Masahudu Gunu. 2011. How Procter and Gamble Survived Through Innovation – A Case Study – a knol by Osman Masahudu Gunu. [ ONLINE ] Available at: hypertext transfer protocol: //knol. Google. com/k/how-procter-and-gamble-survived-through-innovation-a-case-study # . [ Accessed 12 November 2011 ] . 2 ) Unilever planetary company web site. 2011. Unilever planetary company web site. [ ONLINE ] Available at: hypertext transfer protocol: //www. unilever. com/ . [ Accessed 12 November 2011 ] . 3 ) PG. com Home: sustainability. company. trade names. 2011. PG. com Home: sustainability. company. trade names. [ ONLINE ] Available at: hypertext transfer protocol: //www. pg. com/en_US/index. shtml. [ Accessed 12 November 2011 ] . 4 ) 14 Principles of Management of Henri Fayol. . 2011. 14 Principles of Management of Henri Fayol. . [ ONLINE ] Available at: hypertext transfer protocol: //www. citehr. com/137134-14-principles-management-henri-fayol. hypertext markup language. [ Accessed 12 November 2011 ] . 5 ) National Council Of Educational Research And Training: : Home. 2011. National Council Of Educational Research And Training: : Home. [ ONLINE ] Available at: hypertext transfer protocol: //ncert. nic. in/NCERTS/textbook/textbook. htm? lebs1=2-8. [ Accessed 12 November 2011 ]

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