Henkel Organizational Culture

Questions: 1. How does Henkel link rewards and incentives to strategically-important employee behaviors and the companys targeted outcomes? 2. What are the strategic and financial results from Henkels current strategy? 3. What are some key indicators of Henkels performance? Answers: 1. Henkel is a company involved in the personal care industry. The company is involved in the customer service segment where they have to provide best of services to their customer. There are 50000 employees in Henkel worldwide. To motivate and make more productive their work force they plan to provide rewards and incentive to the employees who are performing well for the companys growth. The incentive plans that influence the role of job and perform better results are Pay incentive within 15th of March Short-term incentive program Performance dialogue Group bonus plan Sales incentive There are welfare benefits like medical, dental, vision, reimbursement accounts, Life and Accident Death Dismemberment Insurance and disability (Baldwin, and Henkel, 2012). 2. The current strategy of Henkel is to globalize their business, outperform to provide the best of services to their customer simplify the working procedure for better productivity and inspire the employees to make them loyal to the company. These strategies help the company to grow in every segment of their business. The company has grown 1.5% in their Laundry and home care, 4.8% in cosmetics and toiletries and 11.8% in adhesive technology. The total growth of the company is 11.2%. This result is the indication about the right managerial decision in every segment of their business. 3. Henkel has developed a high level of performance in their company. All the employees are important to the productivity of the company. Keeping this in mind, they have developed a different work culture within their organization. The indicators of their performance are Inspiring trust - developed a culture where all employees cooperate each other and believe in their abilities. Leading by example management leads their team in an ethical way. Achieving the target and evaluating performance review is done for every employee and help them to understand organizational goal and importance of their achievement (Henkel and Block, 2013). Reference List Baldwin, C. Y., Henkel, J. (2012). The impact of modularity on intellectual property and value appropriation.Harvard Business School Finance Working Paper, (12-040). Henkel, J., and Block, J. (2013). Peer influence in network markets: a theoretical and empirical analysis.Journal of Evolutionary Economics,23(5), 925-953.