LEADERSHIP AND CUSTOMER SATISFACTION(With Special Reference to Hindustan Unilever ltd.) A dissertation submitted in partial fulfillment of the requirements for Personality Development and Communication Skills BBA (3rd SEM)

By Name Enrolment (In BBA 3rd SEM ) Under the Supervision of Dr. RAKESH GUPTA

Lalita Devi Institute Of Management And Sciences (Affiliated to GGSIPU) Kashmiri Gate, New Delhi-

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CERTIFICATEThis is to certify that the Dissertation title Social is bonafide & original Research work done by Student of Lalita Devi Institute Of Management And Sciences (affiliated to GGSIPU) , Under my supervision and guidance . This Subject on which this dissertation has been written by her original contribution towards the discipline of Management and it has not previously formed the basis for the award of the Degree, Diploma, or other similar title to any candidate This Dissertation represents entirely an independent research work of the candidate under my guidance. Guide Signature Date Place ( )

Dr. Rakesh kumar Gupta

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DECLARATIONThis work has not previously been accepted in substance for any degree and is not being concurrently submitted in candidature for any degree / diploma. Signed: .. Date: .. Statement 2 This project is the result of my own independent work/investigation, except where otherwise stated. Other sources are acknowledged by giving explicit references. A bibliography is appended.

Signed: .. Date:

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ACKNOWLEDGEMENTThis project work has been a great experience to . This work would not have been possible without the help, cooperation, constructive suggestion and well wishes of many people. I would like to thank all of them, as I mention a few here. I owe my profound respect to Dr. Rakesh Kumar Gupta , my project guide, and express my deep sense of gratitude and indebtedness for their inspirations, valuable and scholarly guidance, imperative suggestions and personal attention at each stage of the Work. Their gamut of knowledge, dedication towards research, exemplary devotion and trust towards me has been unique and is the prime key behind the success of this project. His personality has been instrumental in blending an exciting spirit and atmosphere for research. It has been a great opportunity and experience to work with him, as I will forever cherish the deep interaction I had with him. Finally, I am most grateful to my parents for their moral support and blessings and for being an immense source of inspiration for me all through my life.

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TABLE OF CONTENTS

Topic 1. Introduction-

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Customer satisfaction Leadership

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2. History and Present Scenario HINDUSTAN UNILEVER 3. Brands 4 Growing with India 5. Review of literature 6. Methodology 7. Bibliography

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INTRODUCTIONCustomer satisfactionOrganizations are increasingly interested in retaining existing customers while targeting noncustomers; measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products. Because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. Work done by Berry, Brodeur between 1990 and 1998 defined ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. These factors are emphasized for continuous improvement and organizational change measurement and are most often utilized to develop the architecture for satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. According to Garbrand, customer satisfaction equals perception of performance divided by expectation of performance. The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation of the performance of the organisation being measured. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key

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performance indicator within business and is part of the four perspectives of a Balanced Scorecard.

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Customer Satisfaction in 7 StepsIt's a well known fact that no business can exist without customers. In the business of Website design, it's important to work closely with your customers to make sure the site or system you create for them is as close to their requirements as you can manage. Because it's critical that you form a close working relationship with your client, customer service is of vital importance. What follows are a selection of tips that will make your clients feel valued, wanted and loved. 1. Encourage Face-to-Face Dealings This is the most daunting and downright scary part of interacting with a customer. If you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured, though, it does get easier over time. It's important to meet your customers face to face at least once or even twice during the course of a project. My experience has shown that a client finds it easier to relate to and work with someone they've actually met in person, rather than a voice on the phone or someone typing into an email or messenger program. When you do meet them, be calm, confident and above all, take time to ask them what they need. I believe that if a potential client spends over half the meeting doing the talking, you're well on your way to a sale. 2. Respond to Messages Promptly & Keep Your Clients Informed This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with all customers' queries within the space of a few hours, but at least email or call them back and let them know you've received their message and you'll contact them about it as soon as possible. Even if you're not able to solve a problem right away, let the customer know you're working on it. A good example of this is my Web host. They've had some trouble with server hardware which has caused a fair bit of downtime lately. At every step along the way I was emailed and told exactly what was going on, why things were going wrong, and how long it would be before they were working again. They also apologised repeatedly, which was nice. Now if they server had just gone down with no explanation I think I'd have been pretty annoyed and may have moved my business elsewhere. But because they took time to keep me informed, it didn't seem so bad, and I at least knew they were doing something about the problems. That to me is a prime example of customer service. 3. Be Friendly and Approachable A fellow Site Pointer once told me that you can hear a smile through the phone. This is very true. It's very important to be friendly, courteous and to make your clients feel like you're their friend and you're there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object - it happens to all of us. It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite and courteous.

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4. Have a Clearly-Defined Customer Service Policy This may not be too important when you're just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. If a customer has a problem, what should they do? If the first option doesn't work, then what? Should they contact different people for billing and technical enquiries? If they're not satisfied with any aspect of your customer service, who should they tell? There's nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. So make sure your customer service policy is present on your site -- and anywhere else it may be useful. 5. Attention to Detail (also known as 'The Little Niceties') Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalised sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and aren't always cost effective, but remember to do them. Even if it's as small as sending a Happy Holidays email to all your customers, it's something. It shows you care; it shows there are real people on the other end of that screen or telephone; and most importantly, it makes the customer feel welcomed, wanted and valued. 6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out Sometimes this is easier said than done! However, achieving this supreme level of understanding with your clients will do wonders for your working relationship. Take this as an example: you're working on the front-end for your client's exciting new ecommerce endeavour. You have all the images, originals and files backed up on your desktop computer and the site is going really well. During a meeting with your client he/she happens to mention a hard-copy brochure their internal marketing people are developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep complete with high resolution versions of all the images you've used on the site. A note accompanies it which reads: "Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide you with large-scale copies of the graphics I've used on the site. Hopefully you'll be able to make use of some in your brochure." Your client is heartily impressed, and remarks to his colleagues and friends how very helpful and considerate his Web designers are. Meanwhile, in your office, you lay back in your chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy customer will send several referrals your way.

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7. Honour Your Promises It's possible this is the most important point in this article. The simple message: when you promise something, deliver. The most common example here is project delivery dates. Clients don't like to be disappointed. Sometimes, something may not get done, or you might miss a deadline through no fault of your own. Projects can be late, technology can fail and sub-contractors don't always deliver on time. In this case a quick apology and assurance it'll be ready ASAP wouldn't go amiss. Conclusion Customer service, like any aspect of business, is a practiced art that takes time and effort to master. All you need to do to achieve this is to stop and switch roles with the customer. What would you want from your business if you were the client? How would you want to be treated? Treat your customers like your friends and they'll always come back Employee Satisfaction + Customer Satisfaction = Sustained Profitability When companies put employees and customers first, their employees are satisfied, their customers are loyal, their profits increase, and their continued success is sustained. This is the conclusion of a recent Harvard Business Review article, Putting the Service-Profit Chain to Work by James L. Heskett, Thomas O. Jones, Gary W. Loveman, W. Earl Sasser, Jr. and Leonard A. Schlesinger, members of the Harvard Business School faculty and service-management interest group. While there are a number of studies which link customer satisfaction with profit, there are few studies which add employee satisfaction into the profit formula. Digital became interested in this connection in 1994. Based on this interest, an internal study of customer satisfaction, employee Satisfaction and operating measures was conducted. The purpose of this article is to support the assertion of the customer satisfaction and employee satisfaction connection and to illustrate Digitals approach towards acting on this connection. When describing the service profit chain, the authors discuss the experience and success of companies that include Banc One, Intuit Corporation, Southwest Airlines, Service Master, USAA, Taco Bell, and MCI. They stress that the correlation of putting employees and customers first with profits has necessitated new ways of managing and measuring success. The techniques used, focus on the impact of employee satisfaction, loyalty, and productivity on the value of products and services delivered so that managers can build customer satisfaction, loyalty and assess the corresponding impact on profitability and growth. The authors note, ...the lifetime value of a loyal customer can be astronomical, especially when referrals are added to the economics of customer retention and repeat purchases of related products. The tool used to examine the relationship between service and profit is called the Service-Profit Chain.

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The Service-Profit Chain The service-profit chain establishes relationships between profitability, customer loyalty and employee satisfaction, loyalty and productivity. The links in the chain are as follows: Profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfaction is largely influenced by the value of services provided to customers. Value is created by satisfied, loyal and productive employees. Employee satisfaction, in turn, results primarily from high-quality support services and policies that enable employees to deliver results to customers. Building Commitment through Employee and Customer Engagement Practices Dr. David Ulrich in his article, Tie the Corporate Knot: Gaining Complete Customer Commitment, makes a strong point of connecting customer satisfaction and employee satisfaction. Psychologists have identified two major principles that help determine how individuals develop commitment: information and behavior. When individuals have access to extensive, understandable, and credible information, they engage in activities consistent with the information. For example, when we hear from many people whose opinions we value that a restaurant offers good food or services, we are more likely to act on the information and visit the restaurant. Providing credible information is a first principle of creating commitment. Information does not sustain commitment without the second principle,behavior. Complete customer commitment flows from the same two principles of information and behavior. When customers receive more information about the firm, they are more apt to take action that demonstrates commitment to the firm. Customer commitment may develop at two tiers: strategic and organizational. The strategic tier includes products and services. The organizational tier includes firm practices that translate strategies into action. Partial customer commitment focuses exclusively on the strategic tier, where firms build commitment by sharing information about how products have been adapted to meet customer criteria and by encouraging customer is to participate in the design and delivery of products. Creating unity with customers through human resource practices ensures

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complete customer commitment because customers receive information and participation not only on strategic activities, but on organizational ones as well. Market-In and Product-Out Measures It was used as part of the Product Quality Taskforce report issued in 1994 within Digital Equipment Corporation. It reflects the relationship of the Market-In versus Product-Out measures. The concept of Market-In rather than Product-Out is the basis of one of the four revolutions in management thinking taught by the Center for Quality of Management. William Davidow from Total Customer Service: The Ultimate Weapon., writes, Effective measurement... cant take the place of having a solid core product or service to begin with, nor is it a substitute for strategy...but...lacking good measures, no company can assess its progress or adjust to changes in customer expectations.

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LeadershipHUL has produced numerous business leaders for corporate India. It is referred to as a 'CEO Factory' in the Indian press for the same reasons. It's leadership building potential was recognized when it was ranked 4th in the Hewitt Global Leadership Survey 2007 with only GE, P&G and Nokia ranking ahead of HUL in the ability to churn out leaders with regularity.

The word leadership can refer to: 1. Those entities that perform one or more acts of leading. 2. The ability to affect human behavior so as to accomplish a mission. 3. Influencing a group of people to move towards its goal setting or goal achievement. A leader is simply someone who has followers.

Leadership in organizations :Leadership in formal organizations An organization that is established as an instrument or means for achieving defined objectives has been referred to as a formal organization. Its design specifies how goals are subdivided and reflected in subdivisions of the organization. Divisions, departments, sections, positions, jobs, and tasks make up this work structure. Thus, the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. According to Weber's definition, entry and subsequent advancement is by merit or seniority. Each employee receives a salary and enjoys a degree of tenure that safeguards him from the arbitrary influence of superiors or of powerful clients. The higher his position in the hierarchy, the greater his presumed expertise in adjudicating problems that may arise in the course of the work carried out at lower levels of the organization. It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of administrative subdivisions in the organization and endows them with the authority attached to their position. Leadership in informal organizations In contrast to the appointed head or chief of an administrative unit, a leader emerges within the context of the informal organization that underlies the formal structure. The informal

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organization expresses the personal objectives and goals of the individual membership. Their objectives and goals may or may not coincide with those of the formal organization. The informal organization represents an extension of the social structures that generally characterize human life the spontaneous emergence of groups and organizations as ends in themselves. In prehistoric times, man was preoccupied with his personal security, maintenance, protection, and survival. Now man spends a major portion of his waking hours working for organizations. His need to identify with a community that provides security, protection, maintenance, and a feeling of belonging continues unchanged from prehistoric times. This need is met by the informal organization and its emergent, or unofficial, leaders. Leaders emerge from within the structure of the informal organization. Their personal qualities, the demands of the situation, or a combination of these and other factors attract followers who accept their leadership within one or several overlay structures. Instead of the authority of position held by an appointed head or chief, the emergent leader wields influence or power. Influence is the ability of a person to gain co-operation from others by means of persuasion or control over rewards. Power is a stronger form of influence because it reflects a person's ability to enforce action through the control of a means of punishment. Leader in organizations A leader is anyone who influences a group toward obtaining a particular result. It is not dependant on title or formal authority. (elevos, paraphrased from Leaders, Bennis, and Leadership Presence, Halpern & Lubar). An individual who is appointed to a managerial position has the right to command and enforce obedience by virtue of the authority of his position. However, he must possess adequate personal attributes to match his authority, because authority is only potentially available to him. In the absence of sufficient personal competence, a manager may be confronted by an emergent leader who can challenge his role in the organization and reduce it to that of a figurehead. However, only authority of position has the backing of formal sanctions. It follows that whoever wields personal influence and power can legitimize this only by gaining a formal position in the hierarchy, with commensurate authority. Leadership can be defined as one's ability to get others to willingly follow. Every organization needs leaders at every level. Orthogonality and leadership Those who praise leadership may encounter problems in implementing consistent leadership structures. For example, a pyramidal structure in which authority consistently emanates from the summit can stifle initiative and leave no path for grooming future leaders in the ranks of subordinate levels. Similarly, a belief in universal direct democracy may become unwieldy, and a system consisting of nothing but representative leaders may well become stymied in committees. Thus many leadership systems promote different rules for different levels of leadership. Hereditary autocrats meet in the United Nations on equal representative terms with elected governments in a collegial leadership. Or individual local democracies may assign some of their powers to temporary dictators in emergencies, as in ancient Rome. Hierarchies intermingle with equality of opportunity at different levels.

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Support-structures for leadership Charisma and personality alone can work miracles, yet most leaders operate within a structure of supporters and executive agents who carry out and monitor the expressed or filtered-down will of the leader. This undercutting of the importance of leadership may serve as a reminder of the existence of the follower: compare followership. A more or less formal bureaucracy (in the Weberian sense) can throw up a colorless nonentity as an entirely effective leader: this phenomenon may occur (for example) in a politburo environment. Bureaucratic organizations can also raise incompetent people to levels of leadership (see Peter Principle). In modern dynamic environments formal bureaucratic organizations have started to become less common because of their inability to deal with fast-changing circumstances. Most modern business organizations (and some government departments) encourage what they see as "leadership skills" and reward identified potential leaders with promotions. The foundational support structure for leadership will be the organizations Corporate culture, this is where the structure of the environment either supports or degrades a leaders potential. A leaders ability to influence Organizational culture will be directly related to the results they achieve. In a potential down-side to this sort of development, a big-picture grand-vision leader may foster another sort of hierarchy: a fetish of leadership amongst subordinate sub-leaders, encouraged to seize resources for their own sub-empires and to apply to the supreme leader only for ultimate arbitration. Some leaders build coalitions and alliances: political parties abound with this type of leader. Still others depend on rapport with the masses: they labor on the shop-floor or stand in the front-line of battle, leading by example. Determining what makes "effective leadership" Leadership maintains its effectiveness sometimes by natural succession according to established rules, and sometimes by the imposition of brute force. The simplest way to measure the effectiveness of leadership involves evaluating the size of the following that the leader can muster. By this standard, Adolf Hitler became a very effective leader for a period even if through delusional promises and coercive techniques. However, this approach may measure power rather than leadership. To measure leadership more specifically, one may assess the extent of influence on the followers, that is, the amount of leading. Within an organizational context this means financially valuing productivity. Effective leaders generate higher productivity, lower costs, and more opportunities than ineffective leaders. Effective leaders create results, attain goal, realize vision, and other objectives more quickly and at a higher level of quality than ineffective leaders. James MacGregor Burns introduced a normative element: an effective Burnsian leader will unite followers in a shared vision that will improve an organization and society at large. Burns calls leadership that delivers "true" value, integrity, and trust transformational leadership. He distinguishes such leadership from "mere" transactional leadership that builds power by doing whatever will get more followers. But problems arise in quantifying the transformational quality of leadership - evaluation of that quality seems more difficult to

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quantify than merely counting the followers that the straw man of transactional leadership James MacGregor Burns has set as a primary standard for effectiveness. Thus transformational leadership requires an evaluation of quality, independent of the market demand that exhibits in the number of followers. Current assessments of transformational and transactional leadership commonly make use of the Multifactor Leadership Questionnaire (MLQ), developed by Bass and Avolio in 1990 and revised in 1995. It measures five dimensions of transformational leadership: 1. 2. 3. 4. 5. idealized influence - attributions idealized influence - behaviors inspirational motivation individualized consideration intellectual stimulation

The three dimensions of transactional leadership measured by the MLQ cover: 1. contingent reward 2. management by exception (active) 3. management by exception (passive) The functional leadership model conceives leadership as a set of behaviors that helps a group perform a task, reach their goal, or perform their function. In this model, effective leaders encourage functional behaviors and discourage dysfunctional ones. In the path-goal model of leadership, developed jointly by Martin Evans and Robert House and based on the "Expectancy Theory of Motivation", a leader has the function of clearing the path toward the goal(s) of the group, by meeting the needs of subordinates. Some commentators use the metaphor of an orchestral conductor to describe the quality of the leadership process. An effective leader resembles an orchestra conductor in some ways. He/she has to somehow get a group of potentially diverse and talented people - many of whom have strong personalities - to work together toward a common output. Will the conductor harness and blend all the gifts his or her players possess? Will the players accept the degree of creative expression they have? Will the audience enjoy the sound they make? The conductor may have a clear determining influence on all of these questions. Suggested qualities of leadership Studies of leadership have suggested qualities that people often associate with leadership. They include:

Technical/specific skill at some task at hand Charismatic inspiration - attractiveness to others and the ability to leverage this esteem to motivate others Preoccupation with a role - a dedication that consumes much of leaders' life - service to a cause A clear sense of purpose (or mission) - clear goals - focus - commitment Results-orientation - directing every action towards a mission - prioritizing activities to spend time where results most accrue Cooperation - work well with others

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Optimism - very few pessimists become leaders Rejection of determinism - belief in one's ability to "make a difference" Ability to encourage and nurture those that report to them - delegate in such a way as people will grow Role models - leaders may adopt a persona that encapsulates their mission and lead by example Self-knowledge (in non-bureaucratic structures) Self-awareness - the ability to "lead" (as it were) one's own self prior to leading other selves similarly Awareness of environment - the ability to understand the environment they lead in and how they affect and are affected by it With regards to people and to projects, the ability to choose winners - recognizing that, unlike with skills, one cannot (in general) teach attitude. Note that "picking winners" ("choosing winners") carries implications of gamblers' luck as well as of the capacity to take risks, but "true" leaders, like gamblers but unlike "false" leaders, base their decisions on realistic insight (and usually on many other factors partially derived from "real" wisdom). Empathy - Understanding what others say, rather than listening to how they say things - this could partly sum this quality up as "walking in someone else's shoes" (to use a common clich). Integrity - the integration of outward actions and inner values. Sense of Humour - people work better when they're happy.

In 2008 Burman and Evans published a 'charter' for leaders: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Leading by example in accordance with the companys core values. Building the trust and confidence of the people with which they work. Continually seeking improvement in their methods and effectiveness. Keeping people informed. Being accountable for their actions and holding others accountable for theirs. Involving people, seeking their views, listening actively to what they have to say and representing these views honestly. Being clear on what is expected, and providing feedback on progress. Showing tolerance of peoples differences and dealing with their issues fairly. Acknowledging and recognizing people for their contributions and performance. Weighing alternatives, considering both short and long-term effects and then being resolute in the decisions they make.

The approach of listing leadership qualities, often termed "trait theory of leadership", assumes certain traits or characteristics will tend to lead to effective leadership. Although trait theory has an intuitive appeal, difficulties may arise in proving its tenets, and opponents frequently challenge this approach. The "strongest" versions of trait theory see these "leadership characteristics" as innate, and accordingly labels some people as "born leaders" due to their psychological makeup. On this reading of the theory, leadership development involves identifying and measuring leadership qualities, screening potential leaders from non-leaders, then training those with potential. David McClelland saw leadership skills, not so much as a set of traits, but as a pattern of motives. He claimed that successful leaders will tend to have a high need for power, a low need for affiliation, and a high level of what he called activity inhibition (one might call it self-control).

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Situational leadership theory offers an alternative approach. It proceeds from the assumption that different situations call for different characteristics. According to this group of theories, no single optimal psychographic profile of a leader exists. The situational leadership model of Hersey and Blanchard, for example, suggest four leadership-styles and four levels of follower-development. For effectiveness, the model posits that the leadership-style must match the appropriate level of followership-development. In this model, leadership behavior becomes a function not only of the characteristics of the leader, but of the characteristics of followers as well. Other situational leadership models introduce a variety of situational variables. These determinants include:

the nature of the task (structured or routine) organizational policies, climate, and culture the preferences of the leader's superiors the expectations of peers the reciprocal responses of followers

The contingency model of Vroom and Yetton uses other situational variables, including:

the nature of the problem the requirements for accuracy the acceptance of an initiative time-constraints cost constraints

However one determines leadership behavior, one can categorize it into various leadership styles. Many ways of doing this exist. For example, the Managerial Grid Model, a behavioral leadership-model, suggests five different leadership styles, based on leaders' strength of concern for people and their concern for goal achievement. Kurt Lewin, Ronald Lipitt, and R. K. White identified three leadership styles: authoritarian, democratic, and laissez-faire, based on the amount of influence and power exercised by the leader. The Fiedler contingency model bases the leaders effectiveness on what Fred Fiedler called situational contingency. This results from the interaction of leadership style and situational favorableness (later called "situational control"). Leadership "styles" (per House and Podsakoff) In 1994 House and Podsakoff attempted to summarize the behaviors and approaches of "outstanding leaders" that they obtained from some more modern theories and research findings. These leadership behaviors and approaches do not constitute specific styles, but cumulatively they probably characterize the most effective style of today's leaders/managers. The listed leadership "styles" cover:

1. Vision. Outstanding leaders articulate an ideological vision congruent with thedeeply-held values of followers, a vision that describes a better future to which the followers have an alleged moral right. 2. Passion and self-sacrifice. Leaders display a passion for, and have a strong conviction of, what they regard as the moral correctness of their vision. They engage

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in outstanding or extraordinary behavior and make extraordinary self-sacrifices in the interest of their vision and mission. 3. Confidence, determination, and persistence. Outstanding leaders display a high degree of faith in themselves and in the attainment of the vision they articulate. Theoretically, such leaders need to have a very high degree of self-confidence and moral conviction because their mission usually challenges the status quo and, therefore, may offend those who have a stake in preserving the established order. 4. Image-building. House and Podsakoff regard outstanding leaders as self-conscious about their own image. They recognize the desirability of followers perceiving them as competent, credible, and trustworthy. 5. Role-modeling. Leader-image-building sets the stage for effective role-modeling because followers identify with the values of role models whom they perceived in positive terms. 6. External representation. Outstanding leaders act as spokespersons for their respective organizations and symbolically represent those organizations to external constituencies. 7. Expectations of and confidence in followers. Outstanding leaders communicate expectations of high performance from their followers and strong confidence in their followers ability to meet such expectations. 8. Selective motive-arousal. Outstanding leaders selectively arouse those motives of followers that the outstanding leaders see as of special relevance to the successful accomplishment of the vision and mission. 9. Frame alignment. To persuade followers to accept and implement change, outstanding leaders engage in "frame alignment". This refers to the linkage of individual and leader interpretive orientations such that some set of followers interests, values, and beliefs, as well as the leaders activities, goals, and ideology, becomes congruent and complementary. 10. Inspirational communication. Outstanding leaders often, but not always, communicate their message in an inspirational manner using vivid stories, slogans, symbols, and ceremonies. Even though these ten leadership behaviors and approaches do not really equate to specific styles, evidence has started to accumulate that a leaders style can make a difference. Style becomes the key to the formulation and implementation of strategy and plays an important role in work-group members activity and in team citizenship. Little doubt exists that the way (style) in which leaders influence work-group members can make a difference in their own and their peoples performance. (Adopted from: Robert House and Philip M. Podsakoff, "Leadership Effectiveness: Past Perspectives and Future Directions for Research" in Greenberg, Jerald ed.),pp. 45-82 Organizational Behavior: The State of the Science, Hillsdale, NJ, England: Erlbaum Associates, Inc, 1994. x, 312 pp. .) Leadership and vision Many definitions of leadership involve an element of Goal management|vision except in cases of involuntary leadership and often in cases of traditional leadership. A vision provides direction to the influence process. A leader or group of leaders can have one or more visions of the future to aid them to move a group successfully towards this goal. A vision, for effectiveness, should allegedly:

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appear as a simple, yet vibrant, image in the mind of the leader describe a future state, credible and preferable to the present state act as a bridge between the current state and a future optimum state appear desirable enough to energize followers succeed in speaking to followers at an emotional or spiritual level (logical appeals by themselves seldom muster a following)

For leadership to occur, according to this theory, some people "leaders" must communicate the vision to others "followers" in such a way that the followers adopt the vision as their own. Leaders must not just see the vision themselves, they must have the ability to get others to see it also. Numerous techniques aid in this process, including: narratives, metaphors, symbolic actions, leading by example, incentives, and penalty|penalties. Stacey (1992) has suggested that the emphasis on vision puts an unrealistic burden on the leader. Such emphasis appears to perpetuate the myth that an organization must depend on a single, uncommonly talented individual to decide what to do. Stacey claims that this fosters a culture of dependency and conformity in which followers take no pro-active incentives and do not think independently. Kanungo's charismatic leadership model describes the role of the vision in three stages that are continuously ongoing, overlapping one another. Assessing the status quo, formulation and articulation of the vision, and implementation of the vision. Leadership's relation with management Some commentators link leadership closely with the idea of management. Some regard the two as synonymous, and others consider management a subset of leadership. If one accepts this premise, one can view leadership as:

centralized or decentralized broad or focused decision-oriented or morale-centred intrinsic or derived from some authority

Any of the bipolar labels traditionally ascribed to management style could also apply to leadership style. Hersey and Blanchard use this approach: they claim that management merely consists of leadership applied to business situations; or in other words: management forms a sub-set of the broader process of leadership. They put it this way: "Leadership occurs any time one attempts to influence the behavior of an individual or group, regardless of the reason.Management is a kind of leadership in which the achievement of organizational goals is paramount." However, a clear distinction between management and leadership may nevertheless prove useful. This would allow for a reciprocal relationship between leadership and management, implying that an effective manager should possess leadership skills, and an effective leader should demonstrate management skills. One clear distinction could provide the following definition:

Management involves power by position. Leadership involves power by influence.

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Abraham Zaleznik (1977),for example, delineated differences between leadership and management. He saw leaders as inspiring visionaries, concerned about substance; while managers he views as planners who have concerns with process.Warren Bennis (1989) further explicated a dichotomy between managers and leaders. He drew twelve distinctions between the two groups:

Managers administer, leaders innovate Managers ask how and when, leaders ask what and why Managers focus on systems, leaders focus on people Managers do things right, leaders do the right things Managers maintain, leaders develop Managers rely on control, leaders inspire trust Managers have a short-term perspective, leaders have a longer-term perspective Managers accept the status-quo, leaders challenge the status-quo Managers have an eye on the bottom line, leaders have an eye on the horizon Managers imitate, leaders originate Managers emulate the classic good soldier, leaders are their own person Managers copy, leaders show originality

Paul Birch (1999) also sees a distinction between leadership and management. He observed that, as a broad generalization, managers concerned themselves with tasks while leaders concerned themselves with people. Birch does not suggest that leaders do not focus on "the task." Indeed, the things that characterise a great leader include the fact that they achieve. Effective leaders create and sustain competitive advantage through the attainment of cost leadership, revenue leadership, time leadership, and market value leadership. Managers typically follow and realize a leader's vision. The difference lies in the leader realising that the achievement of the task comes about through the goodwill and support of others (influence), while the manager may not. This goodwill and support originates in the leader seeing people as people, not as another resource for deployment in support of "the task". The manager often has the role of organizing resources to get something done. People form one of these resources, and many of the worst managers treat people as just another interchangeable item. A leader has the role of causing others to follow a path he/she has laid out or a vision he/she has articulated in order to achieve a task. Often, people see the task as subordinate to the vision. For instance, an organization might have the overall task of generating profit, but a good leader may see profit as a by-product that flows from whatever aspect of their vision differentiates their company from the competition. Leadership does not only manifest itself as purely a business phenomenon. Many people can think of an inspiring leader they have encountered who has nothing whatever to do with business: a politician, an officer in the armed forces, a Scout or Guide leader, a teacher, etc. Similarly, management does not occur only as a purely business phenomenon. Again, we can think of examples of people that we have met who fill the management niche in nonbusiness organizations Non-business organizations should find it easier to articulate a nonmoney-driven inspiring vision that will support true leadership. However, often this does not occur. Differences in the mix of leadership and management can define various management styles. Some management styles tend to de-emphasize leadership. Included in this group one could include participatory management, democratic management, and collaborative management styles. Other management styles, such as authoritarian management, micro-management, and

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top-down management, depend more on a leader to provide direction. Note, however, that just because an organisation has no single leader giving it direction, does not mean it necessarily has weak leadership. In many cases group leadership (multiple leaders) can prove effective. Having a single leader (as in dictatorship) allows for quick and decisive decision-making when needed as well as when not needed. Group decision-making sometimes earns the derisive label "committee-itis" because of the longer times required to make decisions, but group leadership can bring more expertise, experience, and perspectives through a democratic process. Patricia Pitcher (1994) has challenged the bifurcation into leaders and managers. She used a factor analysis (in marketing)factor analysis technique on data collected over 8 years, and concluded that three types of leaders exist, each with very different psychological profiles:'Artists' imaginative, inspiring, visionary, entrepreneurial, intuitive, daring, and emotional Craftsmen: well-balanced, steady, reasonable, sensible, predictable, and trustworthy Technocrats: cerebral, detail-oriented, fastidious, uncompromising, and hardheaded She speculates that no one profile offers a preferred leadership style. She claims that if we want to build, we should find an "artist leader" if we want to solidify our position, we should find a "craftsman leader" and if we have an ugly job that needs to get done like downsizing.we should find a "technocratic leader".Pitcher also observed that a balanced leader exhibiting all three sets of traits occurs extremely rarely: she found none in her study. Bruce Lynn postulates a differentiation between 'Leadership' and Management based on perspectives to risk. Specifically,"A Leader optimises upside opportunity; a Manager minimises downside risk." He argues that successful executives need to apply both disciplines in a balance appropriate to the enterprise and its context. Leadership without Management yields steps forward, but as many if not more steps backwards. Management without Leadership avoids any step backwards, but doesnt move forward.

Leadership by a groupIn contrast to individual leadership, some organizations have adopted group leadership. In this situation, more than one person provides direction to the group as a whole. Some organizations have taken this approach in hopes of increasing creativity, reducing costs, or downsizing. Others may see the traditional leadership of a boss as costing too much in team performance. In some situations, the maintenance of the boss becomes too expensive - either by draining the resources of the group as a whole, or by impeding the creativity within the team, even unintentionally. A common example of group leadership involves cross-functional teams. A team of people with diverse skills and from all parts of an organization assembles to lead a project. A team structure can involve sharing power equally on all issues, but more commonly uses rotating leadership. The team member(s) best able to handle any given phase of the project become(s) the temporary leader(s). According to Ogbonnia (2007), "effective leadership is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational or societal goals". Ogbonnia defines an effective leader "as an individual with the capacity to consistently succeed in a given condition and be recognized as meeting the expectations of an organization or society."

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Orpheus orchestra For example, the Orpheus orchestra has performed for over thirty years without a conductor -- that is, without a sole leader. As a team of over 25 members, it has drawn discriminating audiences, and has produced over 60 recordings for Deutsche Grammophon in successful competition with other world-class orchestras. Rather than an autocratic or charismatic conductor deciding the overall conception of a work and then dictating how each individual is to perform the individual tasks, the Orpheus team generally selects a different "core group" for each piece of music. The core group provides leadership in working out the details of the piece, and presents their ideas to the whole team. Members of the whole team then participate in refining the final conception, rehearsal, and product, including checking from various places in the auditorium how the sound balances and verifying the quality of the final recording. At times the entire Orpheus team may follow a single leader, but whom the team follows rotates from task to task, depending on the capabilities of its members. The orchestra has developed seminars and training sessions for adapting the Orpheus Process to business.

Historical views on leadershipSanskrit literature identifies ten types of leaders. Defining characteristics of the ten types of leaders are explained with examples from history and mythology. Aristocratic thinkers have postulated that leadership depends on one's blue blood or genes: monarchy takes an extreme view of the same idea, and may prop up its assertions against the claims of mere aristocrats by invoking divine sanction: see the divine right of kings. Contrariwise, more democratically-inclined theorists have pointed to examples of meritocratic leaders, such as the Napoleonic marshals profiting from careers open to talent. In the autocratic/paternalistic strain of thought, traditionalists recall the role of leadership of the Roman pater familias. Feminist thinking, on the other hand, may damn such models as patriarchal and posit against them emotionally-attuned, responsive, and consensual empathetic guidance and matriarchies. Comparable to the Roman tradition, the views of Confucianism on "right living" relate very much to the ideal of the (male) scholar-leader and his benevolent rule, buttressed by a tradition of filial piety. In On Heroes, Hero-Worship, and the Heroic in History, Thomas Carlyle demonstrated the concept of leadership associated with a position of authority. In praising Oliver Cromwell's use of power to bring King Charles I to trial and eventual beheading, he wrote the following: "Let us remark, meanwhile, how indispensable everywhere a King is, in all movements of men. It is strikingly shown, in this very War, what becomes of men when they cannot find a Chief Man, and their enemies can." [8] Within the context of Islam, views on the nature, scope and inheritance of leadership have played a major role in shaping sects and their history. See caliphate.

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In the 19th century, the elaboration of anarchist thought called the whole concept of leadership into question. (Note that the Oxford English Dictionary traces the word "leadership" in English only as far back as the 19th century.) One response to this denial of litism came with Leninism, which demanded an lite group of disciplined cadres to act as the vanguard of a socialist revolution, bringing into existence the dictatorship of the proletariat. Other historical views of leadership have addressed the seeming contrasts between secular and religious leadership. The doctrines of Caesaro-papism have recurred and had their detractors over several centuries. Christian thinking on leadership has often emphasized stewardship of divinely-provided resources - human and material - and their deployment in accordance with a Divine plan. Compare servant leadership. For a more general take on leadership in politics, compare the concept of the statesman. The great traits that a leader must have, have been debated over time, and most people agree that these are the five key traits. You must have a vision. We've all heard the saying "You must stand for something, or you'll fall for everything." But what does that really mean? Standing firm when it comes to your company's policies and procedures is all well and good, but it doesn't speak to having a vision. As a leader, you have to learn to communicate your vision or the vision of your company to the people you want to follow you. You must have passion, you have to show your team that you want to accomplish the goal as badly as they do, your passion will drive them. You must learn to be a great decision maker. Sometimes, leaders must face times of pressure where they are forced to make quick decisions, a great leader must have this skill. You must be a team builder. To become a great leader, you must first make your team great, you must have the power to give your team responsibilities, and trust them too, you must slowly make them greater and greater. You must have character. Without character, all the other "keys" are for naught. That's because your innate character strengths and limitations play a critical role in your leadership style. The real question is, are you aware of just what role they play? All great leaders have taken steps to learn about their individual personality and what part it plays in their leadership style.

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Hindustan UnileverMumbai, India Revenue No. CEO Top alumni chairman billion 15,000 : Douglas Baillie : Anand Kripalu, managing director of Cadbury India; P.M. Sinha, of Bata India of employees: : $2.74

Place the Right People in the Right Jobs. At this Anglo-Dutch-owned Indian conglomerate, known for churning out leaders as fast as it produces Pears soap and Lipton tea, managers are rated in colorcoded boxes. The top 200 to 250 managers, called greens (as in "go," not "novice"), are singled out on a leadership rating matrix. Mediocre execs are labeled amber, and at the bottom are reds. The aim is to get the top 50 greens into critical jobs at various levels of seniority. The ranking system, the company says, helps it attract and nurture leaders.

HUL also won The

Top Companies for Leaders 2007By fortune

Type Founded

: Public : 1933

Headquarters : Mumbai, India Key people Industry Products Employees Parent Website : Harish Manwani - Chairman Nitin Paranjpe - CEO : Fast moving consumer goods : tea, soap, detergents : 41,000 : Unilever : www.hll.com

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Hindustan Unilever Limited (abbreviated to HUL), formerly Hindustan LeverLimited , is India's largest consumer products company and was formed in 1933 as Lever Brothers India Limited. It is currently headquartered in Mumbai, India and its 41,000 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 majority stake in Hindustan Unilever Limited. The company was renamed in late June 2007 to "Hindustan Unilever Limited" to provide the optimum balance between maintaining the heritage of the Company and the future benefits and synergies of global alignment with the corporate name of "Unilever". This decision will be put to the shareholders for approval in next "Annual Genera Meeting"

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Hindustan Unilever Ltd

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Hindustan Lever Ltd (HLL) is India's largest Fast Moving Consumer Goods (FMCG) company. HLL's brands like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, KnorrAnnapurna, Kwality Wall's are household names across the country and span a host of categories, such as soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. These products are manufactured over 40 factories across India and the associated operations involve over 2,000 suppliers and associates. Hindustan Lever Limited's distribution network comprises about 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers. HLL is also one of India's largest exporters. It has been recognised as a Golden Super Star Trading House by the Government of India. Presently, HLL has over 16,000 employees including over 1,200 managers. Its mission is to "add vitality to life." The Anglo-Dutch company Unilever owns a majority stake in Hindustan Lever Limited. In the late 19th and early 20th century Unilever used to export its products to India. This process began in 1888 with the export of Sunlight soap, which was followed by Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim soon after. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). The three companies were merged in November 1956 and the new entity that came into existence after merger was called as Hindustan Lever Limited. HLL offered 10% of its equity to the Indian public, and it was the first among the foreign subsidiaries to do so. Currently, Unilever holds 51.55% equity in the company while the rest of the shareholding is distributed among about 380,000 individual shareholders and financial institutions. Brooke Bond entered Indian market in 1900 and in 1903 it launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Unilever acquired Brooke Bond through an international acquisition. Similarly, Lipton's link with India date back to 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated. Pond's (India) had been in Indian market since 1947. It joined the Unilever ranks through an international acquisition of Chesebrough Pond's USA in 1986. The liberalization of Indian economy in 1991 and subsequent removal of the regulatory framework allowed HLL to explore every single product and opportunity segment, without any constraints on production capacity. The 1990s witnessed a string of crucial mergers, acquisitions and alliances. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Ice-cream business from Cadbury India. In one of the most talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL, effective from April 1, 1993. In July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). Brooke Bond Lipton India Limited launched Wall's range of Frozen Desserts in 1994 and by the end of the year, HLL entered into a strategic alliance with the Kwality Icecream Group families. BBLIL merged with HLL, with effect from January 1, 1996. HLL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL). The NLL factory manufactures HLL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. In January 2000, as part of its divestment strategy, the government decided to award 74 per cent equity in Modern Foods to HLL. In 2002,

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HLL acquired the government's remaining stake in Modern Foods. In February 2007, the company has been renamed to "Hindustan Unilever Limited" to strike the optimum balance between maintaining the heritage of the Company and the future benefits and synergies of global alignment with the corporate name of "Unilever".

BRANDSSome of its brands include Kwality Wall's ice cream, Lifebuoy, Lux, Breeze, Liril, Rexona, Hamam, Moti soaps, Pureit Water Purifier, Lipton tea, Brooke Bond tea, Bru Coffee, Pepsodent and Close Up toothpaste and brushes, and Surf, Rin and Wheel laundry detergents, Kissan squashes and jams, Annapurna salt and atta, Pond's talcs and creams, Vaseline lotions, Fair & Lovely creams, Lakm beauty products, Clinic Plus, Clinic All Clear, Sunsilk and Dove shampoos, Vim dishwash, Ala bleach and Domex disinfectant.Rexona,Modern Bread and Axe deosprays .

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Lux Lifebuoy Liril Hamam

Breeze Dove Pears Rexona

Surf Excel Rin Wheel

Fair & Lovely Pond's Vaseline Aviance

Sunsilk Naturals Clinic

Pepsodent Closeup

Axe Rexona

Lakme

Ayush

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Brooke Bond Lipton

Brooke Bond Bru

Kissan Annapurna Knorr

Kwality Wall's

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HUL Exports

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Today, HUL is one of Indias Largest exporters of branded Fast Moving Consumer Goods. It has been recognized by the Government of India as a Golden Super Star Trading House. Over time HUL has developed into a viable & competitive sourcing base for Unilever world wide in Home and Personal Care & Foods & Beverages category of products. HUL is also a global marketing arm for select licensed Unilever brands and also works on building categories with core country advantage such as branded basmati rice. HUL Exports offers high level of service with flexibility and responsiveness thorough out the supply chain. It has a dedicated organization structure to support this endeavour and this has helped in growth of these businesses in particular. Intrinsic cost competitiveness in the end to end Supply chain with appropriate technology and competitive capital investment operations while delivering best in class quality enables HUL to position itself as a key sourcing hub for Unilever and also become a preferred partner for Global customers in categories we operate. HULs key focus in the exports business is on two broad categories. It is a sourcing base for Unilever brands in Home & Personal Care (HPC) and Food and Beverages (F&B) for supplies to other Unilever companies. It also focuses on becoming a preferred supplier to both non-Unilever and Unilever clients in three categories in which India, as a country, has competitive advantage Branded Rice, Marine Products and Castor and its Derivatives . HUL enjoys international recognition within Unilever and outside for its quality, reliability and speed of customer service HUL's Exports geography comprises, at present, countries in Europe, Asia, Middle East, Africa, Australia, North America etc. A brief on HUL's Exports portfolio HPC: The categories under HPC include products in Skin care, Oral care, Pears ,Personal Wash & Lakme range. - Skin Portfolio includes Mass & Masstige Skin (Cream & lotions under Fair & Lovely and Dove brands), Shampoos and Conditioners (under Sunsilk brands), Vaseline & Talc (under Ponds brands). In the past the focus market was in Middle East and Asia, which is now slowing changing with current exports to European countries and robust plans to source different products to US in the near future. - Oral Care consists of Tooth Paste and Tooth Brush (under Pepsodent, Close-up, Mentadant and Signal brands). The exports are to Asian and European countries. - Pears Category consists of Bars, Hand Wash, Body Wash and Shower Gel. Pears is being sold globally including to North America / UK to the GCC / African countries extending up to Singapore and Australia. While the bar remains the most popular product, the brand has now extended to hand wash, shower gel, body wash and face wash. Currently Pears is celebrating its 200 year anniversary which shows the rich heritage and the strong brand

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equity it enjoys over generations. - Personal wash category predominantly consists of Lux, Fair & Lovely Soap, Lifebuoy Hand wash. Lakme Products are mainly exported to the countries with Indian Ethnic population or to geographies where the brand enjoys strong equity. The markets include Nepal, Bangladesh, United Kingdom & Maldives. F&B: The categories under F&B include products in Tea, Coffee & Processed Foods range. - Tea Category Includes: Tea Bags (includes Tea Bags, Flavored Tea Bags and Square Tea Bags), Instant Tea, Bulk Tea & Packet Tea. The branded packet tea, and instant tea are for Unilever's ready-to-drink tea business. The branded teas are Brooke Bond, Brooke Bond Red label, Brooke Bond Taj Mahal, Lipton, Lipton Yellow Label, Lipton Green Label, Lipton Brisk and Lipton 3-in-1 premix, - Coffee Category consists of Instant coffee & special coffee Beans (under Bon and Bru brands). The focus market for Bon is CIS markets while Bru is mainly sold to Ethnic markets / Indian diaspora world-wide. Both Bon and Bru straddle the entire gamut of formats comprising of spray dried coffee, granulated, freeze dried and pre mixes. - Processed Foods categories include Fruit Spreads / Jams, Soup Powders, Salt, Wheat Flour, Tomato Ketchup and Custard Powder. The branded processed food items consists of Kissan, Knorr, Annapurna, Captain Cook, Brown & Polson brands.

Marine

Products:

HUL offers a comprehensive portfolio, ranging from Surimi, Crabsticks to Shrimps and several value-added products. Among its customers is Icelandic, the world's third largest seafood company. In addition, HUL has also become a part of Unilever's supply chain in seafoods for Europe too. HUL's Marine Products brands are Ocean Diamond, Ocean Excellence, Shogun, Hima, Gold Seal, Tara and Prima. Rice: The categories are Basmati Rice and Basmati Rice-based ready-to-eat rice meals. The brands are Gold Seal, Indus Valley, Rozana and Annapurna .

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www.pureitwater.com

Pureit - The world's most advanced in-home water purifier

Pureit, a breakthrough offering of Hindustan Unilever (HUL), comes with many unique benefits complete protection from all water-borne diseases, unmatched convenience and affordability. Pureits unique Germkill Battery technology kills all harmful viruses and bacteria and removes parasites and pesticide impurities, giving you water that is as safe as boiled. It assures your family 100% protection from water-borne diseases like jaundice, diarrhea, typhoid and cholera. Whats more, it doesnt need gas, electricity or continuous tap water supply. Pureit not only renders water micro-biologically safe, but also makes the water clear, odourless and good-tasting. You will be further reassured to know that Pureit meets the stringent germ-kill criteria of the Environmental Protection Agency (EPA), the toughest regulatory agency in the USA. The performance of Pureit has also been tested by leading scientific and medical institutions in India and abroad. This patented technological breakthrough has been developed by HUL. This state-ofthe-art engineering developed by a team of over 100 Indian and international experts from HUL and Unilever Research Centres has made Pureit possible at the consumer price of just Rs. 1800. Pureit runs with a unique Germkill battery Kit that typically lasts for 1500 litres* of water. The Germkill Battery Kit is priced at Rs.300. This means consumers will get five litres of water that is as safe as boiled water for just one rupee. Which works out to an extremely affordable 20 paise per litre.

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PRESENT STRATURE Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of nearly Rs.13718 crores. HUL is also one of the country's largest exporters; it has been recognised as a Golden Super Star Trading House by the Government of India. The mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is to "add vitality to life." HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 52.10% of the equity. The rest of the shareholding is distributed among 360,675 individual shareholders and financial institutions. HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured over 40 factories across India. The operations involve over 2,000 suppliers and associates. HUL's distribution network, comprising about 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers. HUL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Unilever Research Centre (HURC) was set up in 1958, and now has facilities in Mumbai and Bangalore. HURC and the Global Technology Centres in India have over 200 highly qualified scientists and technologists, many with post-doctoral experience acquired in the US and Europe. HUL believes that an organisation's worth is also in the service it renders to the community. HUL is focusing on health & hygiene education, women empowerment, and water management. It is also involved in education and rehabilitation of special or underprivileged children, care for the destitute and HIV-positive, and rural development. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the village built by HUL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused devastation in South India. In 2001, the company embarked on an ambitious programme, Shakti. Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby improving their livelihood and the standard of living in rural communities. Shakti also includes health and hygiene education through the Shakti Vani Programme, and creating access to relevant information through the iShakti community portal. The program now covers 15 states in India and has over 45,000 women entrepreneurs in its fold, reaching out to 100,000 plus villages and directly reaching to 150 million rural consumers. By the end of 2010, Shakti aims to have 100,000 Shakti entrepreneurs covering 500,000 villages, touching the lives of over 600 million people.

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HUL is also running a rural health programme Lifebuoy Swasthya Chetana. The programme endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. It has already touched 84.6 million people in approximately 43890 villages of 8 states. The vision is to make a billion Indians feel safe and secure. If Hindustan Unilever straddles the Indian corporate world, it is because of being singleminded in identifying itself with Indian aspirations and needs in every walk of life.

PAST MILESTONES Over 100 years' link with India In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing branded Fast Moving Consumer Goods (FMCG). Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 52.10% equity in the company. The rest of the shareholding is distributed among about 360,675 individual shareholders and financial institutions. The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was incorporated. Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations. The liberalisation of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity. Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills

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Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The UNL factory manufactures HUL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired. Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had significant overlaps in Personal Products, Speciality Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HUL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the government's remaining stake in Modern Foods. In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports.

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MANAGEMENT STRUCTURE Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) company. It is present in Home & Personal Care and Foods & Beverages categories. HUL and Group companies have about 15,000 employees, including 1200 managers. The fundamental principle determining the organisation structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the companys nationwide operations. Board The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholders interest. This Apex body comprises of a Non- Executive Chairman, four whole time Directors and five independent Non Executive Directors. The Board of the Company represents the optimum mix of professionalism, knowledge and experience. Profile of the Board of Directors

Management Committee The day-to-day management of affairs of the Company is vested with the Management Committee which is subjected to the overall superintendence and control of the Board. The Management Committee is headed by Mr. Nitin Paranjpe and has functional heads as its members representing various functions of the Company

Mr. Nitin Paranjpe Chief Executive Officer and Managing Director

Mr. D Sundaram Vice Chairman

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Mr. Shreejit Mishra Executive Director Foods

Mr. Gopal Vittal Executive Director Home & Personal Care

Mr. Sanjiv Kakkar Executive Director Sales and Customer Development

Mr. Dhaval Buch Executive Director Supply Chain

Mr. Ashok Gupta Executive Director Legal

Ms Leena Nair Executive Director HR.

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BOARD OF DIRECTORS

Harish Manwani Chairman

A distinguished alumnus in statistics & economics and MBA from Mumbai University, Mr. Manwani joined HUL in 1976. Following several Sales and Marketing assignments, he became Divisional Vice President - Marketing. Mr. Manwani joined the Board of HUL in 1995, responsible for the Personal Products business. In addition, he held regional responsibility as the Category Leader for Personal Products for the then Central Asia and Middle East (CAME) Business Group. Mr. Manwani then moved to the UK as Senior Vice President for the Global Hair Care and Oral Care Categories and in early 2001 was appointed President of the Home & Personal Care (HPC) - Latin America Business Group. In 2004, he was appointed President and Chief Executive Officer of the HPC - North America Business Group. In April 2005, he was elevated to the Unilever Executive as President Asia & Africa. Mr. Manwani has attended the Advanced Management Programme (AMP) at Harvard Business School. Nitin Paranjpe CEO and Managing Director

Mr. Nitin Paranjpe joined the Company as a Management Trainee in 1987 after obtaining a degree in BE (Mech) and MBA in Marketing (JBIMS) from Mumbai. In his early years in the Company, Mr. Paranjpe worked as an Area Sales Manager Detergents, in Delhi Branch and then as a Brand Manager in the Household Cleaning Category. In April 1996, he became the Branch Manager, Chennai and in February 1999 was appointed a member of the Project Millennium team. In 2000, he moved to Unilever, London and was involved in a review of the Organisation Structure. During 2001, he became the Personal Assistant to the Unilever Chairman in London. On his return to India in 2002, he became the Category Head Fabric Wash & Regional Brand Director (Asia) for some Laundry and Household Cleaning (HHC) Brands. In 2004, he became Vice President Home Care

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(Laundry & HHC) India, responsible for the top and bottom-line of the Homecare business and in March 2006, he was appointed as the Executive Director for the Home & Personal Care business. Mr. Paranjpe was appointed as the CEO and Managing Director of the Company in February 2008. D. Sundaram Vice Chairman and CFO Mr D. Sundaram joined HUL in 1975 as Management Trainee and worked in various capacities in HUL as Corporate Accountant, Commercial Manager and Treasurer till 1990. He was seconded to Unilever, London as Commercial Officer for Africa and Middle East Group between 1990 and 1993 and on return was the Financial Member of TOMCO Integration team from 1993 to 1994. He became the Finance Director of Brooke Bond Lipton India Limited in March 1994 when the two companies were merged. He was again seconded to Unilever in August 1996 as Senior Vice President Finance Central Asia and Middle East Group with responsibility for Finance, IT and business strategies for Unilever companies in the Indian sub-continent, North Africa and the Middle East countries. He returned to India in May 1999 as Finance & IT Director of HUL. Mr Sundaram was elevated as Vice Chairman of the Company in April 2008. Sanjiv Kakkar Director Mr. Sanjiv Kakkar is BA (Economics) and PGDM from IIM Ahmedabad with 23 years work experience. Mr. Kakkar joined the Company in June 1984 and has worked in various Sales and Marketing assignments. His marketing experience spans across categories including Beverages, Personal Products and Oral & Hair Care. He has also had key stints as Category Head of Oral and General Manager Sales & Customer Management of Personal Products. He was appointed Vice President Oral & Hair Care in May 2004. In March 2006, Mr. Kakkar was appointed as Executive Director Foods and joined the Management Committee on 1st January 2007. Sanjiv was appointed as the Executive Director - Sales and Customer Development in May 2007. Dhaval Buch Director Mr. Dhaval Buch joined HUL as a Management Trainee in June 1984. He has held a series of assignments in Manufacturing, Household Care category and New Ventures including a stint with Unilever in U.K. during 1993-95. He was a member of Project Millennium, a key organisational initiative. In June 2005, he was appointed as Vice President - Technical (HPC) and in 2006 was appointed as Executive Director Supply Chain. He was appointed to the Board of Directors of the Company in April 2008.

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D. S. Parekh Director Mr. D. S. Parekh holds a FCA degree from England & Wales. Mr. Parekh has held senior positions in Grindlays and Chase Manhattan. He is the Executive Chairman of Housing Development Finance Corporation. Mr. Parekh joined the Board as Independent Non-Executive Director in 1997.

C. K. Prahalad Director Professor C. K. Prahalad is the Harvey C. Fruehauf Professor of Business Administration at the University of Michigan at Ann Arbor, the US. His contribution to business strategy is globally recognised. He joined the Board as Independent Non-Executive Director in 2000.

A. Narayan Director Mr. A. Narayan is the Managing Director and CEO of ICI India Limited. He is also the Chairman of ICI India Research & Technology Centre. Mr. Narayan joined the Board as Independent Non-Executive Director in 2001.

S. Ramadorai Director Mr. S. Ramadorai is the Chief Executive Officer of Tata Consultancy Services. Mr. Ramadorai is also Chairman of Tata Technologies Ltd. and Chairman of CMC Ltd. He joined the Board as Independent NonExecutive Director in 2002.

R. A. Mashelkar Director

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Dr. R.A. Mashelkar, a Ph. D in Chemical Engineering is an eminent scientist. He has served as the Director General of Council of Scientific and Industrial Research ( CSIR) for over 11 years and is presently the President of Indian National Science Academy and President of Global Research Alliance, a network of publicly funded R&D institutes from Asia-Pacific, Europe and USA with over 60,000 scientists. He is also the President of National Innovation Foundation and Institution of Chemical Engineers (IChemE), UK. Dr. Mashelkar has won over 50 awards and medals in the field of science and technology and was honoured by the President of India with Padmashri (1991) and with Padmabhushan (2000), in recognition of his contribution to nation building.

CODE OF BUSINESS PRINCIPLES Introduction Unilever has earned a reputation for conducting its business with integrity and with respect for the interests of those our activities can affect. This reputation is an asset, just as real as our people and brands. Our first priority is to be a successful business and that means investing for growth and balancing short term and long term interests. It also means caring about our consumers, employees and shareholders, our business partners and the world in which we live. To succeed requires the highest standards of behaviour from all of us. The general principles contained in this Code set out those standards. More detailed guidance tailored to the needs of different countries and companies will build on these principles as appropriate, but will not include any standards less rigorous than those contained in this Code. We want this Code to be more than a collection of high sounding statements. It must have practical value in our day to day business and each one of us must follow these principles in the spirit as well as the letter. Standard of Conduct

We conduct our operations with honesty, integrity and openness, and with respect for the human rights and interests of our employees. We shall similarly respect the legitimate interests of those with whom we have relationships. Obeying the Law

Unilever companies and our employees are required to comply with the laws and regulations of the countries in which we operate.

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Employees

Unilever is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of our company. We will recruit, employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed. We are committed to safe and healthy working conditions for all employees. We will not use any form of forced, compulsory or child labour. We are committed to working with employees to develop and enhance each individual's skills and capabilities. We respect the dignity of the individual and the right of employees to freedom of association. We will maintain good communications with employees through company based information and consultation procedures. Consumers

Unilever is committed to providing branded products and services which consistently offer value in terms of price and quality, and which are safe for their intended use. Products and services will be accurately and properly labelled, advertised and communicated. Shareholders

Unilever will conduct its operations in accordance with internationally accepted principles of good corporate governance. We will provide timely, regular and reliable information on our activities, structure, financial situation and performance to all shareholders. Business Partners

Unilever is committed to establishing mutually beneficial relations with our suppliers, customers and business partners. In our business dealings we expect our business partners to adhere to business principles consistent with our own. Community Involvement

Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfill our responsibilities to the societies and communities in which we operate.

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Public Activities

Unilever companies are encouraged to promote and defend their legitimate business interests. Unilever will co-operate with governments and other organisations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect legitimate business interests. Unilever neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests. The Environment

Unilever is committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustainable business. Unilever will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. Innovation

In our scientific innovation to meet consumer needs we will respect the concerns of our consumers and of society. We will work on the basis of sound science applying rigorous standards of product safety. Competition

Unilever believes in vigorous yet fair competition and supports the development of appropriate competition laws. Unilever companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations. Business Integrity

Unilever does not give or receive whe