A

“RESEARCH REPORT”
ON
SUCCESSION PLANNING AND COMPETENCIES
OF HUL

Submitted by
Siya Sunilkumar Kallungal
MBA-HR
 CHAPTER: 1
INTRODUCTION
INTRODUCTION OF TOPIC
Competence is a standardized requirement for an individual to properly perform a specific
job. It encompasses a combination of knowledge, skills and behaviour utilized to improve
performance. More generally, competence is the state or quality of being adequately or well
qualified, and having the ability to perform a specific role.
For instance, management competency includes the traits of systems thinking and
emotional intelligence, and skills in influence and negotiation. A person possesses
competence as long as the skills, abilities, and knowledge that constitute that competence
are a part of them, enabling the person to perform effective action within a certain
workplace environment. Therefore, one might not lose knowledge, a skill, or an ability, but
still, lose competence if what is needed to do a job well changes.
The competencies have five characteristics, namely:
* Motives: Things a person consistently thinks about or wants that cause
action, motives drive, direct and select behavior towards certain actions.
Example achievement motivation people consistently set challenging goals
for themselves, take responsibility for accomplishing them and use the
feedback to do better
* Traits: Physical characteristics and consistent responses to situations.
Good eyesight is the physical trait of a pilot. Emotional Self Control and
initiative are more complex consistent responses to situations.
* Self Concept: A person's attitude value or self-image. A person's values
are reactive or respondent motives that predict what a person would do in the short run.
Example: A person who values being a leader would be more
likely to exhibit leadership behaviour.
* Knowledge (Information a person has in a specific work area)
Example:
An accountant's knowledge of various accounting procedures.
* Skill (the ability to perform certain mental or physical tasks) Example:
Mental competency includes analytical thinking. The ability to establish
cause-and-effect relationships.

ABSTRACT
Succession planning is an ongoing system of identifying competent employees who are ready
to move into key jobs in the organization and/or those who, with specifically identified
development, will be ready to assume key jobs at some stated point in the future. Job-person
matches are made between existing employees and future jobs they might assume. These
future jobs are usually higher-level positions. But, succession planning may be for key jobs
above, at the same level, or even below the job an employee now holds. Increasingly,
succession planning is for lateral job moves (e.g., to a different function, project team, or
geography).

The usual criteria for a succession planning system successful include:

● One, preferably two, well-qualified internal candidates are identified as ready to

assume any key job should it become vacant.
● A record of successful promotions (or other job placements).
● Few superior performers leave the organization because of “lack of opportunity”

Competency-based succession planning systems identify the competency requirements for

critical jobs, assess candidate competencies, and evaluate possible job-person matches.
Career path “progression maps” identify key “feeder” jobs for lateral or higher level “target”
positions within a job family or across job families.

COMPETENCY MAPPING
Competency mapping is a process through which one assesses and determines one's strengths as an
individual worker and in some cases, as part of an organization. It generally examines two areas: emotional
intelligence or emotional quotient (EQ), and strengths of the individual in areas like team structure,
leadership, and decision-making. Large organizations frequently employ some form of competency
mapping to understand how to most effectively employ the competencies of strengths of workers. They
may also use competency mapping to analyze the combination of strengths in different workers to produce
the most effective teams and the highest quality work. The steps involved in competency mapping with a
result of job evaluation include the following: 1) Conduct a job analysis by asking incumbents to complete
a position information questionnaire (PIQ). This can be provided for incumbents to complete, or you can
conduct one-on-one interviews using the PIQ as a guide. The primary goal is to gather from incumbents
what they feel are the key behaviours necessary to perform their respective jobs. 2) Using the results of the
job analysis, you are ready to develop a competency-based job description. A sample of a competency-
based job description generated from the PIQ may be analyzed. This can be developed after carefully
analyzing the input from the represented group of incumbents and converting it to standard competencies.
3) With a competency-based job description, you are on your way to begin mapping the competencies
throughout your human resources processes. The competencies of the respective job description become
your factors for assessment on the performance evaluation. Using competencies will help guide you to
perform more objective evaluations based on displayed or not displayed behaviours. 4) Taking the
competency mapping one step further, you can use the results of your evaluation to identify in what
competencies individuals need additional development or training. This will help you focus your training
needs on the goals of the position and company and help your employees develop toward the ultimate
success of the organization. 13 Competency mapping is a process of identifying key competencies for a
particular position in an organisation, and then using it for jobevaluation, recruitment, training and
development, performance management, succession planning, etc. "The competency framework serves as
the bedrock for all HR applications. As a result of competency mapping, all the HR processes like talent
induction, management development, appraisals and training yield much better results," states well-known
HR consultant Ullhas Pagey. He however points out that the competency movement has caught on much
better in the non-IT sector than the IT sector. Only a few IT organisations which are at the higher end of
the HR value chain are known to be doing some work in this area; most are more busy handling
recruitment and compensation-related matters. "Unless managements and HR heads have holistic
expectations from their HR departments, the competency movement is unlikely to succeed as it requires lot
of time, dedication and money," he adds, pointing out that before an organisation embarks on this journey
it has to be very clear about the business goals, capability-building imperatives and core competencies of
the organisation. The competency mapping process needs to be strongly integrated with these aspects.
Experts agree that the competency mapping process does not fit the one-size-fits all formula. It has to be
specific to the user organisation. "My suggestion is to develop models that draw from but are not defined
by existing research, using behavioural interview methods so that the organisation creates a model that
reflects its own strategy, its own market, its own customers, and the competencies that bring success in that
specific context (including national culture). Start with small, discrete groups or teams, ideally in two
directions-a 'horizontal slice' across the business that takes in a multi-functional or multi-site group, more
or less at the same organisational level, and a 'vertical slice' taking in one whole department or team from
top to bottom. From that, the organisation can learn about the process of competency modelling, and how
potential alternative formats for the models may or may not fit the needs of the business," explains Stephen
Martin, an international authority in the field who is also the president of ITAP Europe.
Reasons for Competency Mapping
Competency Mapping is excessively used in the organization to determine
the crucial elements and activities. The basic reasons due to which the mapping of
the competencies is done are as follows:
● Once the competencies are determined, proper training can be provided to
the individuals to work more efficiently on the processes.
● Key performance areas can be improved by understanding the fields where
there is a gap between the actual and the desired results.
● If the competencies are determined for the given job, then the person whose
career panning phase is taking place can consider those competencies and
can be ready for the same.
● Through competency mapping, the individual is preparing himself for the
next set of responsibilities.
● With the help of competency mapping the individual can alter the style
of work where the gap exists.
● By overcoming the differences in the desired level and the actual status of
performance the individual can feel an increase in self-confidence and
motivation level.

Career Planning
Hindustan Unilever offers roles in various categories like Customer Development,Communications,
Enterprise & Technology Solutions, Finance, Human Resources, GeneralManagement, Legal, Workplace
Services, Marketing, Research & Development, SupplyChain.HUL also has various programs for students
and graduates like:Unilever Future Leaders programme, which is a 15-18 months management
trainingprogram which helps students grow into young leaders as they start their career
withUnileverUnilever Internship programme, which is a 2 month internship programme wherestudents get
hands on experience of working on a live business project at Unilever.Executive Training programme,
which is a 9 month non-managerial trainingprogramme to onboard young talent as they take charge into
entry level executiveroles across the company.HUL's career planning provides an environment that gives
people the chance to achieve theirgoals, both professionally and personally.HUL offers employees ways to
take advantage of opportunities to develop themselves, moreroom to be successful and grow, attractive
remuneration and benefits, and many directionswhich they can follow when building their career.HUL's
career planning for their employees includes rewards and benefit such as:Family Friendly - Agile and
flexible working, maternity, paternity, and adoptionsbenefitsLearning and Development - Education
assistance and learning toolsCareer Break - For those who want to come back to work successfully after
takingbreakFitness - Caters to employees holistic developmentWellbeing - mental health and work life
supportFuture Savings - Offers Voluntary Provident Fund and National Pension SchemeHUL has a clearly
defined career philosophy which revolves around job rotation and diversityof experiences in an individual's
career. They also ensure that they have progressive peoplepolicies in place for employees to enable them to
perform their best at all life stage.HUL's strong employer value proposition is rooted in its unique
positioning by offering bigjobs early on in career to groom for functional and leadership
responsibilities.HUL has a rigorous and transparent 'people planning' process which is owned by leaders
ateach level who review and assess talent on both the 'What' and the 'How' of performance through an
objective process. Capability building and career plans for talent form an integral part of this process.
Succession Planning
There is always a back-up candidate in this talent-rich organization. There are several young Indians
working at the general manager and vice president levels in the firm across countries.The firm's talent hunt
starts with four of five possible candidates, and closer to the date ofappointments, it narrows down to two
people for succession.For CEO-level appointment, any time there are at least three people in the race.The
company tests the mettle of promising youngsters by offering them certain roles that may notseem big but
are challenging.The company gives challenging assignments to its general management cadre and provides
focuseddevelopment plans and special training for these executives.Leaders take the ownership and
commitment of building the next generation of leaders and are heldaccountable for the same.One problem
HUL faces for succession planning is of top talent leaving the firm for their competitors,because of slow
promotions and missing of rigor in company training. This can be solved if there ismore room for freedom
in decision-making for these top-level executives.
HR Planning & Job Analysis
Main strategy is to attract, motivate and retaining the best talent in the firm.The company's believes that a
'fair day's work deserves a fair day's wagesAll the full-time employees and managers across various
locations are all sharply focused onthe common goal, which is to "add vitality to life"On an average, HUL
creates five indirect jobs for every single permanent employee. Theyaim for an environment for
empowering people.Progress of employees is based on :MeritAbility and PerformanceAdhering to the
Company's Code of Business PrinciplesThe values of Truth, Courage, Action and Caring form the bedrock
of these businessprinciples.The HR planning processes in HUL aim at creating a new generation of
industrial workmen.

COMPANY PROFILE
HINDUSTAN UNILEVER LIMITED Hindustan Unilever (HUL) is the largest fast moving
consumer goods (FMCG) company, a leader in home & personal care products and foods &
beverages. HUL's brands are spread across 20 distinct consumer categories, touching lives of every
2 out of 3 Indian. It has employee strength over 15000 & 1200 managers. It has created
widespread network through its 2000 suppliers & associaties.There 75 manufacturing locations in
India itself. It caters its wide range of products to 6.3million outlets. It has market capitalization of
11.5billion.
Brands
Home & personal care:- Under this it has brands that caters to every income segment of
population. In this segment it has brands like Lakme, Axe, Pepsodent, Surf Excel, Wheel, Lux,
Dove, Fair & Lovely & many more. Foods & Beverages:-Under this segment it has brand like
Kissan, Knnor Soups, Annapurna, Kwality Walls, Brooke Bond & Lipton. It has also launch water
purifier with the name Pureit.

The FMCG market is set to treble from $11.6 billion in 2003 to $33.4 billion in 2015. Penetration
level, as well as per capita consumption in most product categories like jams, toothpaste, skin care,
hair wash, etc in India, is low indicating the untapped market potential. Companies present in
FMCG segment like HUL, Dabur, ITC, Godrej & many more have the potential to acquire market
share.
Milestones achieved
Five of HUL's leading brands – Lux, Dove, Pears, Clinic Plus and Sunsilk – won the Reader's
Digest Trusted Brand 2008 Awards. Four HUL brands featured in the top 10 list of the Economic
Times Brand Equity's Most Trusted Brands 2008 survey. HUL was awarded the Bombay
Chamber Civic Award 2007 in the category of Sustainable Environmental Initiatives.

PRODUCTS
There are different types of products in which Hindustan Unilever is dealing.
These are:
(A) Food Brands
(B) Home Care Brands
(C) Personal Care Brands
(A) Food Brands
Annapurna
Partnering with the mom in nurturing her dreams, Annapurna Atta is aimed at
helping her provide wholesome tasty nutrition to her family.
Red Label
Brooke Bond Red Label… 'Chuskiyaan Zindagi ki'
Brooke Bond Taj Mahal
Brooke Bond Taj Mahal is an exclusive selection of teas for the discerning
consumer.
Bru
Bru se hoti hain khushiyaan shuru…
Kissan
With Kissan, good food is loved not shoved!
Knorr
Knorr helps families make meal times special, nutritious, tasty and healthy.
Kwality Wall’s
A good honest scoop of daily pleasure.

(B) Home Care Brands

Comfort
The world‟s largest fabric conditioner brand.
Domex
The sheer power of Domex bleach gives you the confidence you need, eradicating all
known germs.
Rin
Rin provides „best in class whiteness‟ which is demonstrable.
Sunlight
Sunlight is a color care brand

(C) Personal Care Brands

Axe
Axe with Best Quality Fragrance
LEVER Ayush Therapy
LEVER Ayush aims to help a new generation of Indians rediscover everyday
health and vitality through customized Ayurvedic solutions.
Breeze
Breeze, with the goodness of glycerine gives soft, fragrant and smooth skin.
Clear
New Clear with Essential Oils, guarantees Zero dandruff and leaves your hair
feeling fabulous.
Clinic Plus
Clinic Plus - makes hair inside strong, outside long!
Closeup
Freshness that brings you Closer.

KEY EXECUTIVES

1 Mr Harish Manwani -Chairman

2 Mr Nitin Paranjpe -Managing Director
3 Mr Gopal Vittal -Executive Director
4 Mr Pradeep Banerjee- Executive Director
5 Mr Sridhar Ramamurthy- Chief Financial Officer
6 Mr D S Parekh -Independent Director
7 Mr A Narayan -Independent Director
8 Mr S Ramadorai- Independent Director
9 Dr R A Mashelkar- Independent Director

CHAPTER: 2
REVIEW OF LITERATURE

“Competency Mapping is a process of identifying key competencies

for an organization and/or a job and incorporating those competencies
throughout the various processes (i.e. job evaluation, training,
recruitment) of the organization.”
To ensure we are both on the same page, we would define a
competency as a behaviour (i.e. communication, leadership) rather than
a skill or ability.
Competencies include the collection of success factors (Knowledge,
skills) necessary for achieving important results in a specific job in a
particular organization and attributes (personal characteristics, traits,
motives, values more historically called “KSA‟s” ) that are described
in terms of specific behaviours and are demonstrated by superior
performers in those jobs or work roles. Companies have long realized
the importance of competency mapping as an important HR
function. This is especially relevant in this recessionary environment
where human capital is one of the most important assets of an
organisation and needs to be nurtured. Its assessment tests for
competency mapping helps companies understand their employees
better.
COMPETENCY MAPPING IS HR TOOL USED IN
● Recruitment / selection
● Training/ development
● Performance management
● Career planning/development
● Succession planning
● Manpower planning
● Human resource development
● Human resource planning
● HR strategic planning
 CHAPTER: 3 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
It is a way to systematically solve the research problem. This research
methodology is different research methods or technique. So it is necessary for
the researcher to study both the things. Researcher is a scientific inquiry and has
three essential characteristic i.e. objectivity, accuracy and continuity.
Methodology has an important bearing in the collection of reliable and pertinent
information as well as on the outcome of the study.
Determination of an appropriate methodology for is a pre-cursor for any
research project to be meaningful, error free and compressive. This refers to
collection, analysis and interpretation of data and above all the presentation of
all those information in a systematic manner. For the present study, out of the
research techniques available, the historical method, statistical method, survey
method has been adopted.
Historical method has been adopted to expound information regarding the
past and phase wise development of the organization till date.
Survey method has been adopted through structured questions asked in an
informal set-up with different target groups following it up by analysis of
data and drawing inferences on the general perception of the people on
different issue under study.
The reason being detailed information can be obtained from a sample of a
large population and over all a survey method was carried out for the fact
that it requires less time.
The statistical method has been adopted to collect and compile structured
information on various aspects of the subject and organization under study.
So we should consider following steps in research methodology:
Meaning of Research
Problem statement
Research design
Sample design
Data Collection
Analysis and Interpretation of data
Meaning of Research:-
Research is defined as “a scientific and systematic search for pertinent
information on a specific topic.” Research is an art of scientific investigation. It
is a careful inquiry especially through search for new facts in any branch of
knowledge.
Area of Study:-
The unit selected for the purpose is one of the best papers manufacturing
company in the country under the name HINDUSTAN UNILEVER LIMITED.
Data Collection
The task of data collection began after a research problem has been defined and
research design chalked out. For collection of data the researcher go through
different sections of executives at various level were interviewed personally by
the researcher at the work place on various subjects with the help of earlier
prepared questionnaires. Generally, there are two sources of data those are:
A. Primary Source of Data
Primary data are that, which are, collected a fresh and thus happens to be
original in character. The primary data is collected from a sample size of 50
was taken out of the management staffs of the paper mill.
B. Secondary Source of Data
Secondary data are those which have already been collected by someone else
and which have already been passed through statistical process. The secondary
data is collected from the records such as official brochures, journal, Business
Magazines, Annual reports, Newspaper, Website and relevant text.
Objective of the Research
1. Competency mapping helps in assessing and determining one's strengths as
an individual worker.
2. It generally examines two areas: emotional intelligence or emotional quotient
(EQ).
3. It also examines strengths of the individual in areas like team structure,
leadership, and decision-making.
4. Competency mapping is used to understand how to most effectively employ
the competencies of strengths of workers.
5. Competency mapping also helps in to analyzing the combination of strengths
in different workers to produce the most effective teams and the highest quality
work.
54
SCOPE OF THE STUDY
The scope of the study is as follows:-
In the present state of economy there is an imperative need of the competency
mapping to protect the working conditions of labor. Competency mapping may
provide good working conditions as well as good quality of work. Thus the
concept of competency mapping become quite important for the management.
This will protect the labor from the unhealthy working conditions. This study
attempts to give an overview of the development in the implementation of
competency mapping and tries to explain the rationale for this.
55
Advantages of the Study
The advantages of using questionnaire for collecting the information are:
(a) Versatility: Questionnaire are versatile in nature as every human resource
problem involves people as ideas relative to the problem & its solution can be
obtained by asking these people about the problem.
(b) Speed & Cost: Questionnaire is usually faster & cheaper in collecting the
data as compared with other primary data collection methods like observation.
This is because in questionnaire one can receive information unlike observation
where the observer has to wait for the event to occur.

Q1. Does your top management believe in building a

competency – based organization?

Category Percentage of Employees

Yes 58
Doubtful 20
No 22

Q2. Out of the following what are the benefits you are
availing at your work place?
Facilities Employee
Medical Facilities 35
Canteen Facilities 40
Shelter Facilities 25
Recreational Facilities 10

Q3. Does your top management believe that the success of

your organization depends on having competent managers?
Yes 30
Doubtful 20
No 10

Q4. Is your training based on scientific, or at least

systematic, identification of competency gaps and
competency needs?
Yes 80
No 20

Q5. Does your top management believe in using multi-rater

assessment or 360 degree feedback for employee

development?

Response No. of Respondents (%)

Strongly Agree 36.5 %

Agree 30%

Undecided 33.5%

Disagree -

Strongly disagree -

Q6. Does your organization have a culture of using task forces

and work groups for various exercises/tasks/issues?

Yes 85

No 15
Regression Analysis:
H0: p> 0.05: Variable is not significantly affecting the dependent variable
H1: p< 0.05: Variable is significantly affecting the dependent variable.
About the company :

With nearly 90 years of heritage in India, Hindustan Unilever Limited (HUL) is India’s
largest fast-moving consumer goods company. On any given day, nine out of ten Indian
households use one or more of our brands, giving us a unique opportunity to build a brighter
future. 

SUMMARY OUTPUT (DPS Regression)

Regression Statistics
Multiple R 0.60406
R Square 0.36489
Adjusted R
Square 0.20611
Standard Error 1.85475
Observations 6

ANOVA
Significance
  df SS MS F F
Regression 1 7.905777237 7.905777237 2.298131584 0.204115277
Residual 4 13.7603561 3.440089024
 Total 5 21.66613333      

Coefficient Upper
  s Standard Error t Stat P-value Lower 95% 95% L
Intercept 4.14204 1.046634724 3.957485029 0.016712814 1.236117395 7.04797
X Variable 1 8.6E-05 5.65825E-05 1.515958965 0.204115277 -7.1321E-05 0.00024

Conclusion:
1. From Multiple Regression we can conclude that: As P-value of Working capital (X variable 1) is
greater than 0.05, and therefore working capital of HUL is not significantly affect the Profit after Tax
(dependent variable).
Also, as the p value of the Debt equity ratio (X variable 2) is less than 0.05, the debt equity ratio of HUL is
significantly affecting the profit after tax (dependent variable).
2. From Simple Regression we can conclude that: As P value of Profit after tax is lesser than 0.05,
therefore profit after tax of HUL significantly affects the dividend per share.

FINDINGS

After analyzing the Competency Mapping in an

Organization i.e. HINDUSTAN UNILEVER LIMITED
following findings are observed in the above mentioned
company:

❖ Organizations conduct health programmes aimed at

educating employees about health problem.

❖ Employees get opportunity to use and develop human capacities.

❖ Organizations provide safe and healthy working conditions

 to the employees.

❖ Organizations provide opportunities for career growth.

❖ Organizations provides for balanced relationship among

work and quality of life.

❖ Organizations follow trends of social integration in workforce.

71

❖ Participative management and control of work

exist in organizations. ❖ Organizations take steps to

minimize the stress.

❖ Organizations provide adequate and fair

compensation to employees.
❖ Harmonious relation between worker – supervisor

exists

❖ Effective Grievances handling procedure exists in organizations

❖ Organizations provide alternative and flexible work

schedules to the employees.

❖ Organizations conceived about the establishment of social

relevance to work.

❖ Organizations take alternative measures for pay and

stability of employment.

❖ Recognition for better results in job is given to employees

 ❖ Adequate resources are available to employees to attain

their objectives.

72

SUGGESTIONS

The competency mapping is of origin and has a long way to go.

Individual as well as organized efforts are required to improve
work life of workers. Some of the following suggestions will be
helpful for competency mapping in the organization:

∙ There should be flexibility in the work schedule of

the employees. ∙ Job redesigning or job enrichment

improves the quality of job. ∙ Employees should be

provided with opportunity for advancement and

growth. This will be highly motivated and their
commitment to the organization will increase.

∙ The employees should be given freedom of

decision making ∙ Peoples in the organization

should be allowed to participate in the

management decisions affecting their lives.
 ∙ Employees want stability of employment. Adequate job

security should be provided to the employees.

The principle of equitable administrative justice should be
applied in disciplinary actions, greviance procedures,
promotions, transfers, work assignments etc.

CONCLUSION

There is no simple answer to the question of how to motivate

people. Can money motivate? Yes, but money alone is not
enough, though it does help. We have discussed some of the
pertinent theories bearing on human motivation & this is
balanced by some of the practical factors which can lead to
excellence.

Human resource remains the focal point & leadership the critical
component, & motivation has to be „tailored‟ to each individual.
The next section deals with an important mode of motivation,
namely financial aspects of rewarding employees.

These activities motivate the employee‟s behavior & create a

greater sense of loyalty for the organization. Such activities
mould the employee‟s attitudes & help them to make a better
cooperation with the company. And competency mapping can
help us well in doing so.
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 75
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April 2004
QUESTIONNAIRE

Q1. Does your top management believe in building a

competency – based organization?

Yes/ Doubtful / No

Q2. Out of the following what are the benefits you are
availing at your work place?

Medical Facilities/ Canteen Facilities / Shelter & Result

Facilities /Recreational Facilities

78
Q3. Does your top management believe that the success of
your organization depends on having competent
managers?

Yes or Doubtful or No

Q4. Is your training based on scientific, or at least systematic,

identification of competency gaps and competency needs?
Yes/ No

Q5. Does your top management believe in using multi-rater

assessment or 360 degree feedback for employee

development?

Strongly Agree Agree

Undecided Disagree Strongly Disagree

79
Q6. Does your organization have a culture of using task
forces and work groups for various exercises/tasks/issues?

Yes No

Q7. Does organization provides safe and healthy working

conditions to the employees?

Strongly Satisfied Satisfied Undecided

Dissatisfied Strongly Dissatisfied