Introduction: CEO in 2008: Kasper Rorsted, Studied Economics and has experience in technological companies. Management style was based on face-to-face conversations and pushing for more efficiency. Henkel until 2008 Founded in 1876 as a producer of detergent, by 1920 it was a leading German detergent en glue producer.

After WWII: company restarted as a producer of detergent, glues and personal care products. In 2008: 14 billion euros sales over 125 countries: 2008: 14 billion in sales (+8%) EBIT-margin (10,3%) =>no competitive spirit?! (“The happy underperformer”) 2nd part of 2008: Financial crisis: Price increase by Henkel =>growth in all the business units fell. Reaction of Rorsted (CEO): transform the company into a leaner and more performance driven company by setting 4-year financial goals (2012) for Sales growth (3-5%) – Biggest acquisition ever of 3,7 billion euros for the adhesives and electronic material businesses of the National Starch and Chemical Company. – Dial brand: high investments in North-America =>top brand in body wash markets.

Selling underperforming brands. Vision and Values Focus on financial goals and priorities =>becoming a winning competitor 10 values (see exhibit 5): but they had little meaning inside the company BUT: the CEO Thought they had..2010: Henkel: ” a global leader in brands and technologies” putting customers central A lot of employees have careers of over 20, 30 or even 40 years within the company. 2009: new performance management system for 4 layers of management.

Place an order for research paper!

Database of essay examples, templates and tips for writing For only $9.90/page

For each employee there was: 1) the current rating of his performance and 2) potential performance for the future. These were put in a grid (exhibit 7) with scores going from L (low), M (moderate) to T (Top) For potential performance numbers were used from 1 to 4 with 4 the limit of performance of someone. These rankings were set up during a Development Roundtable (DRT), a collaborative forum with a group head and his direct reports. Afterwards, the results were discussed during a one-to-one with the employee.

DRT-processes were done bottom-up. Targets were set about how many employees should be fitted in a certain category. E.g; 5% had to be L =>caused a different way of analysis within the business.

Bonus compensation Bonusses were linked to the overall company financial performance, team performance and individual overall performance.

< Prev post Next post >

Influence of Music to Culture Essay

When i want a pop tradition I think of music. There exists so much music out in the earth today. Many people are influenced by simply music they listen to. ...

Gasland and the Social Conflict Theory Essay

Gasland can be examined using the social conflict theory of socialism. There are 3 main hypotheses of socialism: structural efficient, social discord, and representational interaction. The reason behind social discord ...

Ethical differences in cultures Essay

Culture is definitely defined by Lustig and Koester (2003) as a great acquired group of shared values, norms and beliefs by a group of people. It is the unifying factor ...

Exploring a Communication in Arabic Lingua Culture Essay

Discussion is the most basic form of connection and individuals rely on conversation to exchange info and maintain sociable relationships (Gardner 1994: 97). Human communications rely on chat for straightforward ...

Gender Schema Theory Essay

Matn and Halverson suggested a substitute for the cognitive-developmental approach proposed by Kohlberg and known as it the gender schizzo theory. In Kohlberg’s theory, children need to reach gender consistency ...

Achievement Motivation Theory Analysis Essay

Every single manager contains a theory on how to motivate staff to perform work. One of the most well-known motivational strategies is the Carrot and Stick method, the combination of ...

Cultures and Traditions Essay

She doesn’t seem to be embarrassed and there is simply no emotion in her words. Is he dead? Of study course. They are really still trying to make light of ...

Gates of Fire by Steven Pressfield Essay

We. In Greece the polis of Spartis was the number one military expert for the folks and for the timeframe. There was absolutely nothing that the Spartans could not carry ...

Geometry: Indifference Curve, Budget Line, Equilibrium of Consumer Essay

Analysis the Following: 1 . Indifference Contour – A great indifference shape is a chart showing mix of two products that give the customer equal satisfaction and power. Definition: An ...

Edvard Munch The Scream and The Sick Child Essay

Edvard Munch was created in Norwegian in 1863 and became a troubled artist after having been influenced by many people older impressionists. Most of his work is a result of ...