Introduction: company profile
Unilever is a world leader in Fast Moving Consumer Goods,with its products being bought 160 million times a day and used 2 billion times a day in nearly over half(nearly 55%) of the households on the planet. Unilever has dual headquarters in Rotterdam and London. This was after the merger in 1930 of Margarine Unie(Rotterdam) and Lever Brothers(London).
Unilever has more than 400 brands, 12 of which generate sales in excess of €1 billion a year. Its top brands include Dove, Knorr, Magnum ice-cream, Lipton tea, Axe/Lynx deodorant, Hellman’s mayonnaise and Omo, Persil and Surf. In 2011 Unilever worldwide turnover was €46.5 billion, with the underlying sales ...view middle of the document...
Motivation- How is it working at Unilever
Motivation is the process of arousing, directing, and maintaining behavior toward a goal. Motivation can be achieved by meeting basic human, being equitable, expectancy theory, organizational fit theory, role perception and goal setting theory.
Unilever have a strategy known as ‘Our People Strategy’ on which they base their employee motivational activities. Therefore all the motivational activities are based on the strategy. The strategy covers the following aspects.
* Employee Safety, health & wellbeing
* Sustainable living plan targets
* Developing & engaging people
* Promoting diversity
* Respecting rights
* Attractive salaries & bonuses
According to Greenberg , motivational activities can be categorized in a number of approaches. A detailed description of the motivational activities at Unilever will therefore be grouped in these perspectives. A description of how Unilever motivates its employees based on the various theories follows shortly. Starting with the order as described on the figure bottom up we have:
Basic Motivation Theory:
* Physiological needs
Unilever provides its employees with a salary which is above or at the living wages standards in the countries it operates. More than that, Unilever has good scoring on the salaries and benefits criteria of popular company review sites like Glassdoor and Indeed. This is particularly interesting since satisfied employees are less likely to review on a company, usually the dissatisfied ones are more likely to comment and spread the word for their bad experiences at a company. Of course there is always the fear that these ratings may be biased.
However, in a study performed by Reena Ali and M. Shakli Ahmed Unilever did not score so well on the criteria of payment at the Work Satisfaction and Motivation Questionnaire by De Beer . Specifically it had a low score on both the payment and benefits measured by the questionnaire. Although money is not a top priority for modern employees, underpayment can still be a high negative motivator for employees.
In addition to the above, a report issued by the the Dutch FNV Bondgenoten and the UK based Unite the Union institutions named “Adding Insecurity to life” in 2009, stipulates that Unilever is underpaying the majority of its employees in Asia. Moreover in these countries Unilever has moved to employment solutions by third party contractors and outsourcing of some activities.
Such practices have both direct and indirect implications to motivation. For the employees in Asia it has a direct effect since people not paid according to their perspective of a fair pay will not be motivated, but also for its employees in the developed countries it can act as a de-motivator. People may feel less motivated to work for a company that participates in unethical business practices.
On the other side Unilever tries to focus on the well being of its...