1.1 Discuss the influence of leadership, culture and people development on performance

All About Unit 702 Leading and Developing People to Optimise Performance

UNIT CMI 702: Leading and Developing People to Optimise Performance is a leadership unit at senior level that focuses on how you get the best out of people in a real workplace, not just on paper.

The unit looks at what “performance” actually means for a team or organisation – not only targets and KPIs, but also behaviour, motivation, skills and attitude. It asks you to think about how leaders create the right conditions for people to do their best work: clear direction, fair workloads, support, trust and honest communication.

A big part of the unit is about understanding different people in your team. You look at how strengths, weaknesses, experience and personal situations affect performance, and how a one-size-fits-all approach does not work. You are expected to think about how to spot potential, how to support people who are struggling, and how to keep high performers engaged so they do not lose interest or leave.

You also explore how to develop people in a planned way. That includes day-to-day coaching, giving useful feedback, agreeing development plans, and linking training or mentoring to real business needs. The unit encourages you to see development as an ongoing part of the job, not a once-a-year event or a tick-box exercise.

Another key theme is the link between leadership style and performance. You are asked to reflect on your own style, how it affects others, and how you might need to adjust it in different situations. For example, there are times when a more supportive, coaching approach is needed, and times when a firmer line is required to protect standards and fairness.

Sample Answer (Do not copy)

Task 1

A written report entitled:

‘The principles for leading and developing people’

1.1 Discuss the influence of leadership, culture and people development on performance

The effectiveness of an organisation is heavily impacted by the interconnected elements of leadership, company culture, and the growth of its people. Their effect on how engaged and productive employees are, as well as the overall success of the organisation, is well-known. Companies that focus on these areas usually do better than their competitors (Gökalp and Soran, 2022).

Leadership and its Effect on Performance

Leadership is very important in determining where an organisation is headed and how well it does. Good leaders help others see the bigger picture, motivate their team, and give them a reason to work. They facilitate the alignment of individual objectives with those of the company, fostering motivation and engagement.

For example, Unilever, one of the biggest companies shows how good leadership affects how well a company does. Unilever`s leaders, especially former CEO Paul Polman, focused on being responsible and doing business in a way that is good for the environment and society. Polman`s way of leading focused on building long-lasting value instead of just making quick profits. This helped improve the company`s reputation, employee happiness, and financial success. Under his leadership, Unilever grew well and was often one of the best companies in its field (Jamali et al., 2022).

Good leadership helps organisations be more flexible, which is important for succeeding in today`s fast-changing business world. Leaders who support new ideas and flexibility can help organisations quickly adjust to changes in the market, keeping them competitive. Transformational leadership focuses on encouraging and motivating workers, and it is usually linked to better performance. By encouraging trust and teamwork, strong leaders can improve how involved employees are and boost their work output. On the other hand, bad leadership can cause workers to feel unmotivated, leave their jobs more often, and be less productive. Poor communication skills, ineffective problem-solving, and an inability to adapt can negatively impact an organisation`s performance (Gökalp and Soran, 2022).

Organisational Culture and its Impact on Performance

Organisational culture is the common values, beliefs, and practices that influence how employees act in a company. A good work culture can help people do their best by making a friendly workplace where everyone shares the same goals and values as the company. Unilever has done well because it focuses on being sustainable, embracing diversity, and being innovative. The company`s promise to be kinder to the environment and follow fair business practices has made it look better to the public, boosted employee happiness, and increased customer loyalty. Unilever encourages teamwork, openness, and constant growth, which has led to improved results in different areas of the company (Jamali et al., 2022).

Organisational culture affects performance in several ways:

When workers feel happy and valued at their jobs, they are more involved and do better work. When workers feel appreciated and connected to the company’s values, they are more likely to put extra effort into their jobs (Paais and Pattiruhu, 2020).

Innovation 

It happens when a culture supports creative ideas and is open to taking risks. Companies like Google and Apple are famous for being creative places. They encourage their workers to try new things and come up with fresh ideas, which helps the companies do well.

Collaboration:

A culture that encourages teamwork and easy communication can help solve problems and make decisions better. Companies that work well together usually are more done and perform better.

On the other hand, a harmful or poorly matched work environment can negatively affect how well people perform. A culture filled with fear, distrust, or too much competition can cause people to become less involved, leave their jobs often, and not work well (Paais and Pattiruhu, 2020).

People Development and its Role in Performance

Helping employees learn new skills, grow in their careers, and find chances to advance is very important for improving how well the organisation does. Companies that help their workers keep learning and growing are more likely to keep their best employees, boost skills, and get more work done (Sugiarti, 2022).

Unilever’s way of helping people grow and learn is impressive. The company spends a lot of money on training its employees so they have the skills needed to keep up with changes in the market. Unilever focuses on developing its leaders, which helps the company, keep a strong group of future leaders. This has played a big role in improving the company`s performance (Sugiarti, 2022).

1.2 Appraise the impact of organisational development and design on performance.

Organisational development (OD) and organisational design are important for how well a company performs. They are interconnected elements that facilitate a company`s efficient operations, adaptation to market fluctuations, and employee satisfaction (Jain, 2020).

Organisational Development and Its Effects on Performance at Unilever

Unilever has always understood that improving how the organisation works is important for doing well. Unilever has worked on improving how the company runs by focusing on a few important areas: managing changes, helping employees grow, managing performance, and making processes better (Jain, 2020).

Managing Change at Unilever:

A clear example of how Unilever has changed and improved is its strong commitment to sustainability. In the last ten years, the company has adopted a thorough plan to be more environmentally friendly, sustainably use resources and enhance social benefits. This needed a big change inside the company, so employees had to get used to new ways of doing things and new goals. Unilever introduced plans to manage changes by providing a lot of training and clear communication. This helped employees understand the company`s long-term goal of being sustainable and how they can contribute to it. Focusing on change management made sure that employees were ready for the new directions and felt involved in them. This, in turn, boosted their spirits and made the work process better (Toldbod and Laursen, 2024).

Employee Development: Helping workers grow and improve their skills.

Unilever spends a lot of money to help its employees grow because they know that having skilled and motivated workers is important for being successful. The company has a strong program to help its employees develop their leadership skills. This program is meant to prepare them for future challenges. This attention to helping people grow has led to more engagement, less staff leaving, and better work performance. By preparing future leaders, Unilever makes sure it can quickly adjust to changes in the market (Toldbod and Laursen, 2024).

Managing Performance:

Unilever`s way of managing performance is closely connected to its main objectives. The company has a detailed system to manage performance that makes sure employees` goals match the overall goals of the organisation. This alignment has been very important for Unilever in keeping its attention on being environmentally friendly and coming up with new ideas. By regularly checking and boosting the performance of each person and team, the company makes sure it stays competitive in a fast-changing global market (Murphy, 2020).

How Unilever`s Structure Affects Its Performance

Unilever`s company structure is an important part that affects how well it does. The company has a clear setup that combines global standards with local needs. This helps it stay flexible and quick to respond in different markets while keeping things running smoothly (Murphy, 2020).

Global Matrix Structure:

Unilever is organised in a way that combines different parts of the company. It has three main divisions: Beauty and Personal Care, Foods and Refreshments, and Home Care. Each division is run worldwide, but they have a lot of freedom to make decisions based on their local market. This helps Unilever to make products and processes the same when it makes sense, which saves time and effort. It also lets local teams adjust to the likes and dislikes of their area. This setup helps Unilever be both efficient and creative because it can quickly adapt to what customers want while still working on a large scale (Abdelaal and Veras, 2023).

Simple Roles and Tasks:

Unilever makes sure that everyone`s jobs and duties are clearly stated, which helps people take responsibility and work better. By having a clear organisation and simple ways to make decisions, the company reduces confusion and problems. This clarity helps employees see how their work affects the company`s success, which encourages them to do their jobs better (Abdelaal and Veras, 2023).

1.3  Critically appraise how human resource policy and strategy inform the way people are led and developed.

HR policies and strategies are very important for how people are guided, trained, and managed in a company. These rules are important for helping employees improve, guiding leaders, and creating the company`s culture. Unilever shows how smart HR strategies can affect leadership and help employees grow, which helps the company do well (Wilton, 2022).

Improving Leadership Skills with HR Planning at Unilever

Unilever`s HR policies are designed to help achieve its long-term goals, which focus on being sustainable, encouraging new ideas, and being a global leader. The company’s plan for training leaders shows how HR rules affect how people are managed. Unilever aims to develop leaders who can adapt easily, are driven by a strong purpose, and can manage changes in a fast-paced environment. The company`s "Leadership Development Framework" is a part of its human resources plan. The aim is to cultivate essential abilities like strategic planning, effective decision-making, and team motivation (Habeeb and Babatunde, 2023).

Unilever`s training programs for leaders are designed to meet everyone`s needs, helping employees do better and succeed at work. This customisation comes from HR rules that focus on ongoing growth and adaptability. By investing in training for leaders, Unilever makes sure it has people ready to help the company achieve its goals, especially in sustainability and new ideas. Unilever focuses on developing leaders through its "Purpose-Led, Future-Fit" strategy. This plan helps leaders link their business goals with good outcomes for society and the environment (Wilton, 2022).

Managing Talent and Developing Employees

Unilever’s HR plan is not only for training leaders; it also has programs to help all workers improve and learn new skills. The company understands that to stay ahead of its rivals, it must continue to support its employees` growth. Unilever`s "Learning for Life" program is a policy that motivates all employees to continue learning and improving their skills throughout their careers. Unilever provides various training programs, online courses, and leadership classes for its employees to help them develop the skills they need to do well in a quickly changing business world (Habeeb and Babatunde, 2023).

HR policies like "Future Fit" are important for Unilever`s workforce. They aid employees learn new digital skills and understand how to be green and eco-friendly (Akdere and Egan, 2020). These plans help everyone do their work better and aid the team adjust to new technology and be eco-friendlier. Unilever wants to aid its workers grow and feeling comprised, and this is a significant part of its plan for handling employees. This approach helps the company stay strong and participate effectively over time (Wang et al., 2019)

Impact of HR Policies on Leadership and Employee Development

Unilever`s HR strategies are made to generate a friendly and hospitable workplace. These instructions are about being a good leader, counting different kinds of individuals, and making sure everybody feels included in the group. These are significant for teaching leaders who can work well in a global team. The "Unilever Compass" is the business`s strategy for development. It puts a lot of emphasis on making leaders who can provision others by being truthful and having clear goals. This income that leaders think about more than just making cash; they also pay courtesy to how what they do affects people and the situation (Wang et al., 2019)