Improving Performance of Unilever: Evaluating Current Structure and Culture

This report evaluates the current structure and culture of Unilever and suggests changes to improve its performance. It discusses the impact of organizational structure and culture on business performance and provides literature and examples to support the recommendations. The report suggests changes such as adopting a hierarchical structure, changing leadership and management style, implementing new technologies, engaging employees in decision-making, and providing off-the-job training to employees.

PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Evaluating whether organization is performing well or not due to current structure and culture.
......................................................................................................................................................3
What changes would make to improve performance of Unilever...............................................5
Literature and appropriate examples............................................................................................8
Using a change management model to make essential changes in the Unilever.........................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Organizational structure and culture are those elements that impact a company and
operations related to that (Rahmad, Sabri and Nasfi, 2021). An organizational structure refers to
strategic systems that clearly outlines how professional practices and activities conducted in the
workplace, for purpose of achieving organizational aims and objectives. While, organizational
culture is defined as an environment in which number of candidates are working together and
attempt to do so, to accomplish a task or project appropriately. The current assessment will be
based on Unilever, which falls under the category of leading British international organizations
in the retail sector, UK. The aim of chosen company is to offer quality and satisfactory quantity
products to all effectively. It also covered under the list of fast moving consumer goods
companies in the nation, because of selling products to consumers according to their needs and
requirements. The study will explain whether chosen firm is performing well or not because of
current culture and structure that is in place. It will also define the changes that management
would make to improve their performance, with justified suggestions. Furthermore, the report
will clarify a specific change management model and apply the same in organizational context to
make important modifications.
TASK
Evaluating whether organization is performing well or not due to current structure and culture.
Current structure of organization is product based divisional organizational structure
which shows that organization is classified into various segments on the basis of product aspects.
For instance company is having division for personal care products as well as another divisions
are for home care products (Unilever simplifies organisation, 2022). The corporate structure of
organization is accountable for adequate support which would be required for innovation of
product in global business. Unilever corporate structure is design which determines various
arrangement and systems used for developing and interconnecting various components. The
structure adapt with changes in consumer goods industry and global market as well.
On the other hand there were some issues in structure such as the minimal support for
regional strategic implementations. Also geographic divisions were one of the feature in context
of organization structure. Due to limited support for market specific or regional strategic
reforms. For such methodologies' organization is capable to make the changes' inn their strategic
effectiveness in regional consumer good market. On the other hand the issues in their matrix

structure is also putting negative impact. The organization may look further to replace current
matrix structure and make and organized around five various business groups (Unilever’s
Organizational Structure for Product Innovation, 2022). The division of five group factors are
concluded as such personal care, beauty and well-being, nutrition, home care etc. so each of
these groups would be accountable for strategy, growth and profit deliverables.
Due to current divisional structure, Unilever may face varied issues, which is important
for management to overcome appropriately, because it may put negative impact on
organizational productivity and performance level. Along with that, organization may face more
problems because of having a culture of performance, which is not that much effective for
employees to grow and succeed professionally as well as personally. This form of culture may
put a lot of pressure upon candidates about achieving goals, instead of taking pleasure of
working with others freely and effectively (Kalemba and Joanna, 2021). Thus, because of two
above reasons, firm might be not performing well, which may affect negatively upon its
operational success and customer base. In the recent time, organizational culture and structure
playing significant role in the world of business, because these two factors are considered by
employees, who tend to work within a company, where management may take initiative to fulfil
their need and consider requirements of staff members.
Without having appropriate structure and positive culture in the workplace, management
is unable to retain skilled candidates and gain the attention of new, which is important for them
to do that. It may create barriers in growth and success of company, that might be unexpected by
the stakeholders, who always tend to work with profitable brands in the corporate world
(Tangsgaard, 2021). Each barrier may impact on brand success in the retail industry where
organizations tend to give tough competition to each other for purpose of making their
businesses more productive than last few years.
With ineffective culture in the workplace, Unilever and its management may face the
worst situation that impact the way they may make plan to grow further in term of business
expansion, which is not that easy for any organization. It is necessary for company to make
changes in the context of their culture and structure because it helps to make things quite simpler
and beneficial. It may take approach to design the structure and create culture in the work area
according to candidates and other stakeholders needs who want to retain and work with Unilever
forever, but also expect to fulfil their need during this journey.

Performance based culture is not that effective because it may motivate people to work in
productive and appropriate manner and always drive their attention toward task accomplishment,
that impact mental and physical health of candidates. It is essential for any company such as
Unilever to have or create culture where people can communicate with each other along with
performing well, without facing issues or hurdles to do so. Furthermore, divisional structure used
in the company may create issue to communicate and collaborate with each other in case of
employees. These two areas of improvement and development affect organizational performance
and productivity, as well as profitability and competitiveness.
Collaboration and effective communication are important in the company for better and
competitive growth in the business world. Thus, management may make assure that these two
elements Unilever may have, for which strategic strategies and plans implementation is required.
It is important for management to take right action that help to overcome the adverse impact of
above two issues and enable stakeholders to take pleasure of achieving their aims, whether it is
short, long or medium term.
What changes would make to improve performance of Unilever.
There are different types of techniques and ways available in the business world that a
senior manager in the Unilever can take into their consideration, which enable them to improve
organizational performance. As it is essential for them to do that, in appropriate manner without
hampering productivity of company. They can make varied changes in the context of existing
structure and culture by applying techniques and these are following below;
 Management can take strategic action while playing their role in the Unilever’s, in term
of forming effective team of experts, who are able to develop a plan and tactic of making
change in the context of organizational structure (Zhang and et.al., 2021). Instead of
using divisional organizational structure, they can adopt hierarchical, which is beneficial
and essential too for organization success and excellent performance in the market,
because of several reasons. The adoption or implementation of chosen structure can
contribute to improve the business performance in term of making clarity among staff
members about their duties and responsibilities that is important to have in the workplace,
when a company like chosen one, perform globally. With appropriate and successful plan
for structure change, management can take pleasure of excellently improving venture
performance that move their attention and overall concentration toward expansion. It is

beneficial for Unilever’s rapid growth in the retail sector, where it may have created
excellent brand image among people and influence customers to purchase products sell
by the company.
 Another suggestion that managers can take into their consideration is leadership and
management change, that also support to improve performance of selected organization.
Managers can change their management style or improve the existing one, which allow
them to make candidates able to adopt change in the workplace, that is not easy, but
important too (Shala, Prebreza and Ramosaj, 2021). They can utilize contingency
management style, which is effective on the bases of certain points, for example, helps to
make a manager capable to improve organizational performance by developing plan to
make structure appropriate. Planning is the key element of management style, as it allow
a manager to develop the best plans and then implement the same appropriately for
purpose of achieving set goals and objectives too. It suggested to managers that they can
change the way they conducted their practices in the firm, that help to improve
performance of brand and also make it capable to gain competitive advantages.
 Along with managers, leaders in the Unilever can also change their leadership style that
help to create a positive environment in the workplace which outcome in term of
improving and increasing organizational performance, that is the biggest task for
administration to do appropriately. There are varied forms of leadership styles existed
and utilized in the market, by the successful leaders and entrepreneurs. In the chosen
company, individual leader can change and adopt a specific leadership type such as
participative, which allow them to participate in change management process and also
support individual to do that. In the recent time participative leadership style play
important role in the companies, because it helps to boost morale of employees and give
them confidence to engage in challenge acceptance practice, where their contribution
improves business performance and increase the same rapidly. The utilization of
suggested leadership can achieve business objectives, in term of retaining skilled and
knowledgable candidates who are able to perform professionally and in productive
manner, without making any mistake that impact Unilever’s negatively.
 Along with above two changes, management can focus on making more alter and that is
related to technologies. As they can take approach to implement new systems in the

workplace or replace existing, to make business perform well and in competitive manner,
which is essential to sustain forever in the market. In today's time, technologies usage
become trend in the corporate world, where each and every organization attempt to
implement advanced systems and change their older one with new upgraded version that
support to improve ventures performance excellently. Unilever’s and its management can
also consider this suggestion and plan to change those technologies, software's and
systems that in return lead to increase organizational as well as candidates performance,
competitively. It can be said that technology change in the organization provide
unpredictable benefits to each stakeholder, whether they are investors, owners,
employees and others. It drives the attention of individual person toward using and
developing skills that they can use to work with advanced technologies. The best
advantage of technology in the workplace is quick and fast nature to which candidates
seems to agree. It can be said that a candidate in the organization can turn in load of
work, when the have right resource or technological support for making their job
effortless and comfortable.
 Another change in the Unilever’s, managers can take it related to decision-making
process, for which employees engagement is the main. Instead of taking decisions
individually, management can take approach to engage employees, which help to create
positive culture and also support to improve business performance. As it enable
candidates to feel more valuable, and essential resources for company, which it can
utilize after taking their approval and suggestions through them. It is one of the best
suggestions that plays important role in business progress and success in the retail sector,
as it drive the attention of administration toward engaging employees and providing them
direction to do so, for purpose of improving performance and increasing productivity of
firm, better than its rivals that also existing in the same industry.
 Training is an important factor that also recognized in the company, in term of change.
Organization can focus on changing its training plan and add more elements in that in
term of providing off the job training to employees. This type of change can directly
impact Unilever’s performance in term of increasing productivity and operational
effectiveness which is necessary to improve and increase too. Training can support to
improve performance and increase, in term of developing skills among employees,

whether they are existing or new, that they can use to achieve the goals of company,
better than last few years. Offline training can provide them benefits of collaborating with
expert who have knowledge about multiple business concepts, that a candidate used to
reach desire outcomes. It can drive the concentration of employees toward gaining
knowledge about things or areas where they need improvement in appropriate and
systematic manner without facing some major challenges. All these suggestions or
strategic recommendations can make company more productive and profitable as it help
to improve its performance rapidly and appropruately.
Literature and appropriate examples.
According to, Kwarteng, Simpson and Agyenim-Boateng, (2021) organizational structure
enable a company to perform at specific extent, either it is high or medium level. Ineffective
structure in the organizations impact negatively upon the way they perform well and focus on
doing the same thing. It impacts negatively upon decision-making and other management
practices, which management focuses on to eliminate the cause behind occurring the same
situation. Toys R US is one of those companies in the world of business, that may have poor
organizational structure, due to which it may not perform well and in competitive manner (10
businesses that failed due to poor management, 2020). It may lead to decrease its performance
and operational efficiency. The main reason behind issue occurrence in this company is poor
management, therefore candidates are facing challenges to do their job and play role effectively,
which is not suitable for rapid growth of brand. Toys R US is the most popular adverts on
television world, with a jingle that may become significantly annoying older people.
Moradi and et.al., (2021) stated that poor structure in a company impact negatively upon
business in term of decreasing sales, for which management and other candidates work hard to
increase. Their efforts and attempts are vague when the management to do not coordinate
appropriate with other stakeholders. It just not impact sales, but also affect brand image in the
world of business, from national to international level (Zusman, 2021). So, management may
focus on that issue and strategically solve the same by applying effective techniques and
approaches, which plays important role in business growth. They may form a plan to change the
structure and add new elements within existing one, which in turn lead to generate more
productivity and profitability.

In the view of, Azeem and et.al., (2021) organizational culture is one of those internal
factors that impacts individual performance and organizations productivity. There are different
types of companies available in the world of business, that attempt to sustain for longer in the
market, but unable to do so because of having poor working environment. TESLA is the best
example of those organizations where the organizational culture is less effective. In the
company, employees may feel a lot of pressure to constantly innovate and create something new.
It is fact that individual person prefers to work within those firms and workplace where they
work stress free, without taking too much stress and pressure from high authority and other
people's like managers, leaders, etc.
Tait and et.al., (2021) explained that innovation provide a lot of benefits to a company,
but puts a huge impact on human resource, in term of creating stress and putting pressure that do
not make any candidate effective in the workplace. It is essential to create and spread positive
working environment in the work area, which make management capable to retain and gain the
attention of new employees as well as candidates, who tend to connect with trustable companies
in the market for different reasons.
It is fact that when a company culture is positive, employees prefer to work forever in
that because they may obtain respects and consideration from high authority, which is rare in the
world of business to have in practical manner. It may drive the attention of stakeholders toward
retaining with brand and leat other do the same, which is quite essential and beneficial for
organizational success. Therefore, culture creation and structure formation in the companies are
essential, whether it is small, large or medium size.
Using a change management model to make essential changes in the Unilever.
Change is an essential and beneficial part of organizational success, because it may drive
the attention of management toward developing and using effective approaches that contribute to
reach desire outcomes. It is important for management to manage a change in the workplace and
that is organizational culture and structure effectively, for which they may take approach to focus
on a specific change management model such as Mckinsey 7's model of change.
The key benefits of chosen strategic framework is that it encompasses 7 elements, among
which each element is valuable and useful in varied terms (McKinsey 7S Change Model, 2022).
The usage of each component in the workplace may contribute to manage and implement change
appropriately in the Unilever. The best thing about model is that is help administration to assess

and then analyse the change in internal situation of company, related to structure and culture as
well. To make change possible in the organization, managers and leaders may concentrate on
using components and these are;
Strategy-
For purpose of managing structure and culture change in the workplace, management
may take initiative in term of developing strategies and plans, which they may follow
appropriately (Galli, 2018). According to their plan or tactic, candidates may perform their role,
and support managers as well, to accomplish the project or task on time, without making any
mistake that affect final expected outcomes. Under both term of change, they may plan to add
more value in form of using and implementing new technologies that create flexibility and
positive working environment in the workplace of Unilever, where number of candidates are
working together and conducting practices individually, with guidance and directions of high
authority. By developing the best strategies, they may enable organization to gain competitive
advantages, for which change management is important.
Structure-
Another step that management may take to achieve aim in term of change management is
current one. According to the second element, they may focus on improving or changing
organizational structure and culture too, by conducting practice of creating map, in which the
role, responsibilities and position of each candidate is specified (Unilever simplifies
organisation, 2022). Earlier it may utilize divisional as business structure, which is less effective
and because of this reason firm may plan to switch to new one that might be organized around
five distinct business units such as beauty & well-being, home care, ice cream, personal care and
nutrition. Each group perform its role with specific group of people, who are productive and
effective in varied terms. They are also capable to manage change and work with the same.
Systems-
The most essential thing that management may improve to manage structure and culture
related change is current one. According to the term, they may move to improve the system as
day to day activities that candidates are accountable to conduct for purpose of achieving strategic
and essential aims of Unilever. Change in the company is possible when employees engage
themselves in that procedure, in term of supporting and developing their understanding about
how important it is for everyone, including investors, customers and other stakeholders. They

may approach to improve system by clarifying the activities and roles, that candidate play to
make company productive. It is important for managers to aware people about change and then
system, which they attempt to make more effective than every, that in turn eliminate the causes
behind failure.
Shared values-
Before making any change and taking action according to new plan for change
management, administration may take approach to share the aim or motive behind action they
are taking interest to implement in practical manner (Pospisil and Zavodna, 2022). They may
communicate and collaborate with all the employees in the Unilever to aware them or inform
about change in the overall structure, which make them work quite effective and systematic.
Manager also assure that each employee feel comfortable and accept what type change happens
around them, which is important for organizational growth and success in the competitive world
of business, where competition level is high. It may reflect the main motive of management in
front of candidates which they effort to comprehend and then support to fulfil appropriately,
instead of resisting change.
Styles-
Change in the Unilever is also possible when the style adopts by the leaders related to
their leadership is appropriate. As it may boost the morale and confidence among individual
candidate, which help to make themselves adjust with new environment, culture and structure,
that implement according to their needs and requirements. By using the right and suitable
leadership styles, leaders may motivate people to accept change in the work area around them,
and also influence in positive manner which in return lead to increase their performance and
productivity. It may support to maximize both terms better than last few weeks or months, which
is not that easy for any leader or manager to do so because of requiring efforts and resources too.
It may influence the decisions and performance of candidates.
Staff-
In the Unilever, management may focus on change management, which is not that easy
when staff members do not accept their decision and support to implement appropriately in the
workplace. Therefore, they have to make an important action in term of making discussion with
candidates and determining their needs, which help to increase their performance and obtain
positive response about change management in the firm. Manager may make assure that

employees feel happy and are satisfied about anything may happen in the work place, where they
are working to reach desire results as achieving goals and objectives. This element contributes to
manage modification and also allow management to take pleasure of increasing profitability and
productivity.
Skills-
Change in the workplace impact employees performance, which is quite common, but
still require more attention from management site. Therefore, managers and leaders to make
change possible in the workplace may plan to train employees, because it helps to develop new
skills among them and also improve existing competencies (Setianingrum, Puspitasari and
Wulandari, 2021). Training is the most important and beneficial part of change management, as
it make a team or individual person capable to work with new technologies, systems and
environment, which is beneficial for Unilever and themselves as well. It is fact that core
effectiveness and competencies of candidates may play significant role in defining the
organizational success and gaining competitive advantages, which is essential for its brand
position and reputation in the industry. Training may support to boost their morale and give them
confidence about performing productively.
CONCLUSION
From the above report it has been identified that organization structure and culture plays
significant role in formation of better work culture. It also promotes to employee performance
and aligns with very positive outcomes. Furthermore, it has been identified about current
structure of organization which shows that there are some issues related to minimal support for
regional strategic implementation. Similarly, it had been discussed such various consequences
that relates with performative outcomes of organization. The recommendations are provided for
organization for how culture can be more favourable carrying out the adequate strategies for lack
of services. On the other hand change management model has taken into consideration for
evaluation of such measures likely to be aligned with changes should be implemented in
organization for leading towards more successful outcomes. Overall the study is provided with
suitable examples and literature review for justifications.
Furthermore, by summing up above discussion, it has been summarized that management
has managed changed in the workplace by applying the elements of Mckinsey change
management model. It has enabled them to gain competitive advantages by building productive

and skilled teams of candidates, among which each candidate accepted change and work with
that, strategically, productively and competitively. The above strategic recommendations has
improved business performance effectively and successfully.

REFERENCES
Books and Journals
Azeem, M and et.al., 2021. Expanding competitive advantage through organizational culture,
knowledge sharing and organizational innovation. Technology in Society. 66. p.101635.
Galli, B. J., 2018. Change management models: A comparative analysis and concerns. IEEE
Engineering Management Review. 46(3). pp.124-132.
Kalemba, A. and Joanna, A.M., 2021. The Importance of the Intra-Organizational Culture of
Communication in the Context of Employee Mediation. European Research Studies.
24. pp.533-543.
Kwarteng, A., Simpson, S. N. Y. and Agyenim-Boateng, C., 2021. The effects of circular
economy initiative implementation on business performance: the moderating role of
organizational culture. Social Responsibility Journal.
Moradi, E and et.al., 2021. Impact of organizational inertia on business model innovation, open
innovation and corporate performance. Asia Pacific Management Review. 26(4).
pp.171-179.
Pospisil, J. Z. and Zavodna, L. S., 2022. An Insight to the World of Female Entrepreneurship:
Systematic Literature Review of the Phenomenon using the Mckinsey 7S Model.
Foundations of Management. 14(1). pp.51-66.
Rahmad, R., Sabri, S. and Nasfi, N., 2021. The Influence of Organizational Structure, Leadership
and Human Resource Capability on Service Effectiveness. International Journal of
Social and Management Studies. 2(3). pp.123-131.
Setianingrum, N., Puspitasari, N. and Wulandari, D., 2021. McKinsey Plus Managerial
Transformation Model in the Phase of New Normal: Evidence from Bank Mandiri
Syariah Indonesia. Review of International Geographical Education Online. 11(10).
pp.1635-1646.
Shala, B., Prebreza, A. and Ramosaj, B., 2021. The Contingency Theory of Management as a
Factor of Acknowledging the Leaders-Managers of Our Time Study Case: The Practice
of the Contingency Theory in the Company Avrios. Open Access Library Journal. 8(9).
pp.1-20.
Tait, J and et.al., 2021. Responsible innovation: Its role in an era of technological and regulatory
transformation. Engineering Biology. 5(1). pp.2-9.
Tangsgaard, E. R., 2021. How Do Public Service Professionals Behave in Risky Situations? The
Importance of Organizational Culture. The American Review of Public Administration.
51(7). pp.492-508.
Zhang, G and et.al., 2021. Molecular Coupling and Self‐Assembly Strategy toward
WSe2/Carbon Micro–Nano Hierarchical Structure for Elevated Sodium‐Ion Storage.
Small Methods. 5(8). p.2100374.
Zusman, P., 2021. Participants' Ethical Attitudes and Organizational Structure and Performance:
Application to the Cooperative Enterprise. In Agricultural cooperatives in transition
(pp. 23-54). Routledge.
Online
10 businesses that failed due to poor management. 2020. [Online]. Available Through:
<https://www.e-careers.com/connected/10-business-that-failed-due-to-poor-
management>

McKinsey 7S Change Model. 2022. [Online]. Available Through:
<https://www.managementstudyguide.com/mckinsey-7s-change-model.htm>
Unilever simplifies organisation. 2022. [Online]. Available Through:
<https://www.unilever.com/news/press-and-media/press-releases/2022/unilever-
simplifies-organisation/>
Unilever’s Organizational Structure for Product Innovation. 2022. [Online]. Available Through:
<https://panmore.com/unilever-organizational-structure-product-
innovation#:~:text=Unilever%20has%20a%20product%20type,division%20for
%20home%20care%20products.>

16