Organisational Leadership at Unilever: A Global Case Study

Organisational Leadership at the global level – A case study of Unilever Assignment

1. Introduction

One of the largest consumer goods companies in the world, Unilever has a long history dating origins to the late era of the 19th century. It emerged in 1930 primarily as a result of the union of the Dutch Margarine Unite and the British soap manufacturer Lever Brothers. The main administrative offices of the company are situated in Rotterdam, the Netherlands, and London, in the United Kingdom.

A multinational employer of consumer goods with its headquarters in the UK is Unilever. The company has a significant worldwide footprint and serves more than 190 countries. Products from Unilever comprise meals and beverages, housekeeping products, cosmetics as well as personal care items, and healthcare items (Ruksana, and Ahmed, 2019). The organization's inventory of prominent brands includes a few more in addition to Dove, Awl, Knorr, Lipton, and Magnum. An excellent opportunity to investigate the Implementation of important principles, frameworks, and concepts in a genuinely worldwide setting is provided by the examination of organisational leadership at a global scale in Unilever.

Unilever maintains a strong reputation for corporate social responsibility and the environment. Responsible management plays a significant role in establishing environmentally friendly and sustainable business practices. The study may take a look at how Unilever's leadership exhibit the highest standards of ethics by incorporating environmental sustainability into the organization's strategy, encouraging an honest way of life, and arriving at decisions that fall in line with the organization's principles.

Effective interpersonal interaction between cultures is essential for effective international management (Nahar, and Zayed, 2019). To overcome barriers of language and culture, Unilever's leadership need to have great cross-cultural communication skills. The case study may investigate how Unilever's leadership promote productive communication across remarkable civilizations and ensure an agreed-upon comprehension of goals, methods, and standards.

The study will provide an in-depth investigation of Unilever's organisational leadership on a worldwide scale by using several theories and concepts (Enoch, 2016). It may look at the influence of successful leadership and managerial behaviour on the organization's overall success, worldwide business activities, creative thinking, environmental sustainability practices, and all the time fulfilment in the global marketplace.

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Figure Unilever Group's Supply Chain and Management

(Source: StudyCorgi, 2022)

2. Critically evaluate contemporary leadership theories (transformational, transactional, or charismatic) with relevant examples from the chosen organisation

Following are a handful of appropriate ideas and theories which can be utilised to examine the leadership style and behaviour at Unilever and how it influences organisational efficiency:

Transformational leadership: To effectively navigate Unilever throughout the international marketplace, the company's executives must have innovative leadership qualities. This approach to leadership places a strong emphasis on encouraging and motivating employees to put the goals of the business ahead of their own goals. The study may look into how Unilever's managers participate and motivate their staff members to drive creativity, environmental responsibility, and environmental sustainability by carrying out the aforementioned concept.

A notable example comes from Unilever, where Paul Polman, past CEO, demonstrated transformational leadership during his time as CEO. He created an ambitious goal for the organization's increased sustainability and consciousness of the environment (Meuser, et.al. 2016). To reduce the organization's influence on the natural environment and improve the outcomes for society, Polman highlighted the significance of the sustainability lifestyle strategy. His leadership inspired workers across Unilever to prioritise environmental sustainability which helped the company establish a leading position in its commitment to social responsibility.

Transactional leadership: Transactional leadership is a style of management that focuses entirely on rewarding and punishing employees for achieving specific goals and objectives. Clarifying expectations, establishing overall performance goals, and providing feedback are its areas of expertise.

The company's performance tracking system serves as an illustration of transactional leadership principles. The organisation establishes specific objectives and goals for its employees and evaluates individual as well as group achievement using productivity assessments (Taylor, 2017). Workers that succeed in achieving their goals are rewarded and given recognition, resulting in incentive and pressure-related productivity.

Charismatic leadership: The charismatic leadership idea emphasizes the personality and atmosphere of the mystery of leaders to enthuse and persuade followers. Innovative and innovative administrators are admired for their ability to formulate a strong argument and organise support for it.

Example from Unilever: Alan Jope, the current CEO of Unilever, exemplifies charismatic leadership through his ability to convey an inspiring vision for the future of the company. Jope has emphasised the significance of "purpose-driven Brands" and has made a point of highlighting Unilever's commitment to environmental and social impact (Hussein, Ibrahim, and Ismael, 2022). Stakeholders and staff members have been motivated by his charismatic management style as a result of the organization's challenges and objectives.

Cultural intelligence: To effectively oversee Unilever's worldwide operations, CEOs must be able to successfully navigate a variety of cultural environments. The ability of a person to adapt and function effectively in environments with different cultures is referred to as intelligence regarding cultures. The information can show how Unilever's Leadership manage employees representing different nations and modify their methods of leadership to correspond with the unique characteristics associated with every location.

Situational leadership: At Unilever, competent managers must be flexible with their strategy. According to the contextual theory of leadership, leaders ought to adapt their strategy for leadership according to the unique circumstances and individual preferences of their subordinates (Meier, 2016). By taking into consideration variables involving the environment of culture, marketplace circumstances, and the competence level of their subordinates, the study may analyse how Unilever's leaders demonstrate situational management.

It is important to note that executive management at companies like Unilever typically combines a variety of managerial styles and strategies. Leadership at Unilever may use a combination of transformational, transactional, and charismatic management theories depending on the situation, information, and individual management styles. These perspectives all give valuable insights.

A comprehensive understanding of how particular leadership styles and behaviours influence the company's overall achievement and advancement in the international marketplace may be gained by analysing various modern leadership theories in the framework of Unilever (Bosse, et.al. 2017). It emphasises how crucial it is to encourage and motivate workers, set clear expectations, and effectively communicate a compelling vision to drive organisational growth and sustainable techniques.

3. Analyse the significance of the function of leadership and its influence on the global organisational performance of your selected company. Include examples to support your points

The efficiency and achievement of organisations are heavily influenced by effective leadership, particularly on a global scale. This situational analysis will focus on Unilever, a worldwide consumer goods company, to assess the importance of managerial leadership and its impact on overall organisational effectiveness.

The study may acquire knowledge about how competent managerial behaviour can influence fulfilment in a global environment by closely examining the managerial skills practices and programmes implemented by Unilever in the following manner:

Strong visionary management: It has performed a key role in establishing the success of Unilever on the global stage, and was recently acknowledged. Paul Polman and Alan Jope, two talented executives, have created clear objectives for the future and an inspiring vision for the company's development (Eliyana, and Ma’arif, 2019). Their ability to effectively communicate this innovative and visionary message to staff members around the world has encouraged an atmosphere of purpose and guidance, bringing the company's initiatives forward to the company's mutual objectives.

As an example, during Paul Polman's leadership, Unilever established the environmentally friendly focusing plan, a bold strategy designed to ride profitable growth while also reducing the company's negative environmental impact. By establishing Unilever referred to as an international innovator in sustainable development and attracting environmentally conscious consumers, this competitive strategy has boosted the company's reputation globally and improved its financial performance.

Transformational management: Unilever is practising revolutionary leadership, which emphasises motivating and enabling employees to achieve greater levels of broader success. At Unilever, innovative leaders promote teamwork and continuous enhancement throughout the organisation (Osborne, and Hammoud, 2017). They create an environment the fact stresses proficiency, responsiveness, and readiness to embrace change—qualities that are essential in a continuously changing worldwide marketplace.

As an illustration, the "crafting brands for lifestyles" programme by Unilever is a well-known case of revolutionary leadership. Unilever has consistently been enabled to respond to a wide range of international regions and customer desires by allowing workers across all levels to demonstrate ownership of their brands and be innovative. The aforementioned approach has assisted the business to maintain its edge over competitors while sustaining growth in a variety of geographic areas.

Pass-cultural management: Unilever, a multinational organisation, conducts business in several countries that have distinct customs and cultures. Developing cross-regional cooperation, knowledge, and acceptance requires useful cross-cultural leadership (Montano, et.al. 2017). Unilever's administrators are aware of the value of interpersonal skills and modify their styles of leadership according to the environment under which the company work.

In this regard, Unilever's succession planning initiatives include cross-cultural education and outreach programmes to ensure that executives have extensive knowledge of their regional financial markets. Technology facilitates strong collaboration and interaction among multinational groups by enabling them to arrive at conclusions that are appropriate and combined with the distinctive customs of other parts of the world.

Moral Management: Unilever focuses a high priority on ethical leadership, encouraging honesty, openness, and responsible business practices. Ethical executives at Unilever create high norms of ethics, serve as role models, and promote an atmosphere of ethical behaviour inside the company (Edginton, 2020). The aforementioned approach enhances the organization's standing, encourages external stakeholders' acceptance, and ensures long-term profitable development.

As an example, Unilever's firm commitment to ethical decision-making and accountability for society is clear utilizing its numerous campaigns, including the Unilever Sustainable focusing Young Marketer Awards. The campaign encourages and recognises younger proprietors who utilise cutting-edge entrepreneurial ideas to respond to the ethical and environmental requirements of the market. Effective ethical managerial practices obligated not solely have an advantageous societal effect on organisations, but also attract customers from around the world with social concern.

4. Explain sources of leadership power and the contribution of employees in creating and sustaining leaders at a global level

• Sources of Leadership Power: Managerial energy comes from a wide range of attributes that make a difference to a leader's efficacy and influence, whether they are executives at Unilever or any other multinational corporation. Understanding such assets is crucial for maintaining and expanding administration on a global scale:
• Expert Power: Leadership at Unilever have specialised knowledge and skills in their respective industries. The aforementioned knowledge enables managers to make intelligent judgements, provide direction, and develop respect and confidence among staff members around the world (Osland, 2017). Professional authority enables individuals to influence others by demonstrating their competence.
• Positional energy: At Unilever, positions of managerial responsibility come with official recognition and organisational power. Pinnacle-level executives have the power to distribute resources, determine strategic goals, and make crucial decisions that affect the growth of the business globally. Managers have the power to affect and guide team members in many different individual domains because of their positional strength.
• Comparable Strength: People appreciate look up to, and admire leaders who have comparable energies. Their personality traits, an atmosphere of ambiguity, and the capacity to develop strong bonds among staff members inspire devotion and loyalty (Kim, Beehr, and Prewett, 2018). International employees might be inspired and motivated to operate at their highest level by managers with referral authority.
• Information power: In today's highly globalised world, managers mitigating the ability to access valuable information and knowledge have a distinct advantage. The power of statistical analysis comes from leaders' capacity to gather, examine, and communicate relevant information to facilitate decision-making. Information-rich executives at Unilever might come up with wise decisions and effectively manage their worldwide teams.

Participation of employees in developing and upholding strong executive leadership at a worldwide stage of development: Workers additionally participate in an integral part in establishing and maintaining successful leadership at a global platform (Osland, 2017). The administration is not exclusively the obligation of individuals who serve in official managerial positions.

Unilever recognises the significance of employee participation in developing leadership in several ways:

• Career advancement: Unilever places a strong emphasis on programmes that identify and support potential managers within the company. Employees are given opportunities to develop their managerial abilities through guidance, learning, and 360-degree rotation tasks, empowering individuals to contribute to managerial behaviour at an international level.
• Feedback and collaboration: Unilever promotes an atmosphere of communication and teamwork participation. It is advised that employees share their viewpoints, knowledge, and proposals with managers (Cortellazzo, Bruni, and Zampieri, 2019). The two-way interaction encourages creative thinking, allows for the transmission of knowledge, and provides executives with an opportunity to consider various perspectives and opinions from all around the company.
• Variety and inclusion: Unilever emphasizes both, recognising that a diverse workforce contributes a broad range of opinions, circumstances, and concepts. Individuals with uncommon environments help facilitate the emergence of influential individuals by challenging social norms, advocating for inclusiveness, and encouraging an imaginative and versatile attitude towards life.
• Personnel empowerment and ownership: Unilever believes in providing employees with an understanding of responsibility over their employment while offering them a feeling of empowering others. Workers feel respected and inspired to volunteer to take on roles of leadership for self-determination, decision-making power, and a sense of responsibility are provided (Kim, Beehr, and Prewett, 2018). Their efforts contribute to developing a succession plan for leadership and ensuring consistency in leadership on a worldwide basis.
• Constant learning and role modelling: Unilever promotes a learning mentality among staff members. Workers can remain modern and respond to the rapid worldwide marketplace through constant learning and developing their skills. The employees support the development and efficiency of international organisations by adopting emerging technologies, market-driven forces, as well as industry standard practices.

5. Evaluate a range of variables that impact leadership effectiveness in organisations

Examining factors like gender, way of living, and the surrounding atmosphere are part of analysing many factors that affect the efficiency of leadership within an organisation. These factors may influence the internal workings of a firm while having a significant impact on the performance of management. The various attempts to examine each of the following parameters:

A. Gender: Recognising how the gender aspect influences managerial efficiency is crucial for creating equitable and welcoming organisations. Gender equality plays an essential role when it comes to leadership efficiency.

• Gender assumptions: In society, there are gender assumptions that may impact how people view managerial abilities. The conventional method standards based on gender may contribute to discrimination and prevent the acknowledgement of females' managerial skills. Improving equality among genders and eliminating these biases is essential for improving the efficiency of leadership.
• Leadership style: While managerial behaviours differ from person to person, various studies indicate that women are more likely to demonstrate revolutionary and collaborative styles of leadership (Solomon, and Steyn, 2017). These behaviours place a significant value on diversity, cooperation and sympathy, numerous factors which affect interpersonal relationships and effectiveness among the staff members.
• Managerial Visualisation: It is essential to have women in the roles of administration. Companies that prioritise gender diversity in managerial positions frequently are benefited from distinctive points of view as well as a broader spectrum of competencies, strengthening their overall management efficiency.

B. Subculture: The way lifestyle influences organisational standards and leadership behaviours. understanding of leaders working in multinational corporations with different labour forces, and cultural aspects are crucial.

• Verbal exchange patterns. Different communication norms exist in various cultural backgrounds, and they have a direct effect on the way leaders engage with their workforce. While certain traditions emphasise open communication, others prefer indirect or context-related interaction (Louw, Muriithi, and Radloff, 2018). Effective communicators modify their techniques to eliminate cultural disparities and promote cultural understanding among the staff members.
• The authority separation: The visually appealing nature of organisational structures or cultural expectations regarding the separation of power has an impact on managerial performance. Managers are obligated to be dominant and make decisions entirely in environments where there is an excessive amount of power separation. Low-power separation cultures, on the other hand, discourage collective leadership and participation in decision-making.
• Collectivism vs. individualism: How social norms towards individuals (emphasising individual objectives and freedom of speech) or collectivism (emphasising organisational harmony and interdependence) affect managing leaders must negotiate these interpersonal gaps and modify their leadership styles accordingly.

C. Environment: A further factor affecting the effectiveness of leadership is the external atmosphere that exists where organisations operate.

• Business and marketplace fluctuations: Various markets and industries necessitate that executive adapt their approaches and practice (Mbokota, and Reid, 2022). Strong business leaders anticipate developments in the marketplace, are aware of their external environment, and coordinate the objectives and strategies of their organisations.
• Economic, social, and political factors: These variables influence the successful implementation of administration (Yahaya, and Ebrahim, 2016). Successful managers evaluate the external environment, anticipate limitations in ability, and make informed decisions to successfully navigate these aspects.
• Technological advancements: Rapid developments in technology influence the efficiency of management. Managers have a greater chance towards achievement in the age of the Internet when they welcome digital and utilise it to promote imaginative thinking, effectiveness, and adaptability.

Hence, in today's changing global environment, managers can negotiate complexity, take advantage of abilities and promote fulfilment with an in-depth knowledge of the aforementioned factors.

Conclusion

The relevance of revolutionary leadership is highlighted by the case study of Unilever, which shows how crucial it is for boosting organisational success on a global scale. The effectiveness of encouraging and motivating employees with an inspiring mission and a consistent dedication to environmental sustainability has been verified by executives like former chief operating officer Paul Polman. By encouraging creativity, ethical behaviour, and employee involvement, revolutionary leadership enables organisations to successfully navigate the complicated landscape of the global economy.

Unilever's effectiveness in the international business climate appears to be linked to the organization's ability to transform as well as be versatile in its managerial strategy. The essential nature of contextual leadership, which involves managers adapting their approaches and behaviours according to the environment of culture, market circumstances, and the developmental stage of their organisations, is demonstrated by the case study. Flexible leaders are better equipped to handle a wide range of demanding conditions and take advantage of possibilities across unique locations around the world.

Unilever's focus on sustainable development and corporate social responsibility emphasises the value of ethical behaviour in the global marketplace. The case study demonstrates how moral decision-makers may have an important effect on the community and enhance their organization's reputation by cultivating a subculture of trustworthiness. Coordinating the organization's operations with its core principles, which are essential for long-term success and the contentment of stakeholders, is made possible by moral management.

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