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HINDUSTAN UNILEVER LIMITED
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SOHIT JAISWAL SUKAMAL DE SAUMYASREE GHOSAL TRIPTI MONDAL SABYASACHI HALDER SOUVIK DE SUBHADEEP MONDAL RITU HALDER
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INTRODUCTION Hindustan Unilever Limited(HUL) is India’s largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians. HUL works to create a better future everyday and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. Hindustan Unilever Limited, formerly Hindustan Lever Limited, is India’s largest consumer products company and was formed in 1933 as Lever Brothers India Ltd. Its current headquarter is in Mumbai, India and its employees are headed by Harish Manwani, the non-executive chairman of the board. HUL is the market leader in Indian products such as tea, soaps, detergents as its products have become daily household name in India. The Anglo-Dutch company,Unilever, owns a stake in HUL. The company was later renamed in June 2007 as “ Hindustan Unilever Limited”.
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Some of the products of Hindustan Unilever Limited
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Mission HUL’s mission is to add vitality of life. They meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life. vision To earn the love and respect of India, by making a real difference to every individual.
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Area of specialization
HUL specializes in Consumer products as we can see in the figure.
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Organization Structure of
Hindustan Unilever Limited
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FINANCIAL RECORDS Hindustan Unilever Limited is one of the world’s leading suppliers of fast moving consumer goods, with strong local roots in more than 100 countries across the globe with annual sales of Rs 27,408 crores in the year with a net profit of Rs 3,867 crores.
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Net Profit and Expected Profit Of HUL
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Innovations Skin lotion: Delivering moisture where it’s needed. Moisturisers help to replenish dry skin. The key ingredient – Glycerine. Unilever set about developing a moisturiser too for this. The result was Stratys-3, a combination of three special ingredients. One of which is Glycerol Quat, a new molecule which closely resembles Glycerol, but binds four times more water within the cells of the skin’s top layer. Clean clothes, less water: HUL was asked if they could improve Surf Excel so less rinsing is needed, while still getting clothes as clean as before. We knew we could cut the number of rinses by adding on a number of anti-foam ingredients commonly used in detergents. That would make the lather rinse more quickly. This is how new Surf Excel Quick Wash delivered a good lather at the washing stage, and reduced the need for rinsing – saving two buckets of water per wash.
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Cool ice cream innovations: Less fat, more fruit
Cool ice cream innovations: Less fat, more fruit. The new ingredient is called ‘ice structuring protein’. This protein allows us to make ice cream and ice lollies which are lower in fat, sugar and calories and at the same time include more fruit. Knorr: a revolution in stock- Knorr is now launching the biggest innovation in stocks and bouillon for nearly 100 years: a little pot with an authentic bouillon: Knorr Stock Pot. By interacting closely with consumers, we realised that the jelly format of Knorr Stock Pot is very close to home-made bouillon in how it looks and smells and how you use it.
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corporate social responsibility
The company has reduced the water usage in manufacturing operations from 21.5% to 10.1%.Rainwater harvesting has also been started in more than 50% of the units. HUL has also been working for more than a decade in the area of water conservation in locations which face acute water shortage. HUL started a three-month campaign called "Go Recycle" to promote plastic recycling among consumers . HUL also creates financial inclusion. The company joined forces with the State Bank of India (SBI) to introduce banking services to people from low-income groups in rural areas. HUL also renders services to the community, focusing on health & hygiene education, empowerment of women, and water management. It is also involved in education and rehabilitation of underprivileged children, care for the destitute and HIV-positive, and rural development.
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HUL has also responded to national calamities, for instance with relief and rehabilitation after the 2004 tsunami caused devastation in South India. The Company is on track to meet the global target, which is to reformulate the products to reduce Greenhouse Gas emissions by 15%. Project Shakti, a unique initiative by the Company to build and support a network of women entrepreneurs in small villages was strengthened in 2010–11 with the Shaktimaan initiative, under which men from Shakti households were given a bicycle to cover a cluster of villages in their vicinity. Lifebuoy , a product of HUL took hand washing messages to remote areas, reaching out to 30million people directly in through HUL's rural outreach programme. Project Sunlight is a project where every home has enough water to drink and to wash, cook and clean and where everybody can enjoy life today while protecting the planet for future generations.
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Due to its tremendous contribution towards society and and huge profits, HUL is one of the top organizations in India.
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Principles of management
HUL follows the basic principals of Management introduced by Henry Fayol . Taking these into consideration we find that: 1) Division of Labour: Each & Every employee of the HUL are recruited with specialized knowledge . So as a result of those the efficiency of employees increases and the benefits of Specialization can be enjoyed. 2)Authority & Accountability: The authority here are diversified. There are about 365 managers in different levels of the organization. The topmost is the Board of Directors, it comprises of Non-executive Chairman, Directors, five independent Non-executive and the Managers. 3) Discipline: In order to succeed there requires certain control of authority which we can find that in every level there are managers as well as good supervisor who take care of clear and fair agreement and judicial applications.
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Continued…….. 4) Unity of Command: The direction of command flows from the top level to the bottom level of the management. 5) Unity of Direction: Since it indicates that there should be one head and one plan for the accomplishment of group activities, it is not so relevant due because the individual employees contribution are there. 6) Fair Remuneration and work environment: The motive of HUL is to serve the society as well as the employees with best possible ways by giving job appraisals, bonus and fair environment so that the employees are motivated. 7) Stability of tenure & security: Since the organization is diversified i.e., there is diversity in work, the employees are given security and stability of tenure as it keeps on changing according to the demand of customers.
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Applications of the Principles of Management:
1) Planning : The first and foremost principles of management is planning. It involves selecting missions and objectives and the action to achieve them. So, here the mission is to add strength to life and to meet everyday needs for nutrition, hygiene, personal care with brands that help people feel good and look good and get more out of line. 2) Organizing: Organizing involves establishing an intentional structure of roles for people to fill in an organization. It is made necessary to accomplish the goals. HUL follows that the right person is allocated on right job. So efficiency grows and as a result production increases. Beside this, the organization maintains diversity in work environment as a result employees doesn’t get bored rather acts as a flexibility which effects the individual motivations of workers as a result there is a high productivity. Apart from these the order or the authority travels from upper to lower level and there is both formal and informal organization.
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Continued…….. 3) Decision making: The decision making is done by the Board of Directors, as well as the non-executive chairman. Since there are managers involved in different stages of the production, the information flows in both ways i.e. either from upward to downward or vice versa. So here we find the Double Loop Learning. 4) Departmentation: It helps in grouping activities on the basis of product or product lines. Since each department has individual heads for example, Production Head, Sales Head, Accounting Head, etc., it facilitates use of specialized capital, facilities, skills & knowledge therefore helps is lesser disruption and permits growth and diversity of products and services. 5)Organizational Culture: The organization maintains good organization culture by providing hygiene factor, good communication between authority and employees.
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CONCLUSION As almost all the management principles like Division of labour , authority & accountability, Discipline, Unity Of Command , Unity Of Direction have been effectively applied in the organization and it not only makes bulk profit every year but also shares it concerns for the society as we have seen in the CSR of the organization. Hence, HUL would be a perfect idol for other organizations in the sense that the needs and welfare of the society can also be taken care of very effectively even when an organization is primarily a profit making organization.’
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