Unilever's Change Management Strategies

This assignment examines Unilever's approach to change management within the context of its position as a global consumer goods leader. It highlights the company's strategic implementation of change initiatives and its effective utilization of human resource theories to influence and motivate employees towards positive adaptation. The emphasis is on providing necessary training to ensure employee proficiency and competitiveness in a dynamic market environment.

Leading and Managing
Change

EXECUTIVE SUMMARY
Change is a unpredictable and inevitable phenomenon that might occurs at regular
intervals. Thus every company should be proactive in forming strategies by which these
unpredictable changes could be managed to some extent. Previously, the pace at which
these changes used to occur used to be very slow pace but in present secession change
occurs on daily basis making it difficult for firm to apply them effectively within their
business operations. Unilever is a multinational consumer goods company founded in
1930. This project will provide a summary about the extent to which the white water
metaphor is manifested by Unilever in its business operations and how it has managed
adverse market situation by applying its planned approach to change management . It also
explains how enterprise shifts from calm water to white waters to appraise the impact on
the business and appropriate theories are discussed along with implications it has on HR
department.

Table of Contents
EXECUTIVE SUMMARY...................................................................................................2
INTRODUCTION.................................................................................................................4
TASK ....................................................................................................................................4
I) Planned and unplanned approach of change.................................................................4
2) Consider a business strategy and external factors that impact on the businesses.........8
3) Implications of relevant theory for human resource department................................11
CONCLUSION....................................................................................................................12
REFERENCES....................................................................................................................13
Books and Journals.........................................................................................................13

INTRODUCTION
Globalization and frequent technical up gradation has lead business to constantly
evolve itself and its operations. It is of crucial importance to have combative approach
over competing market environment. With experiencing so much change it is requisite
for an organization to get accustomed with it and adapt them in its business operations,
structure, culture and in routine tasks (Bush and Middlewood, 2013). As resisting a change
is basic human tendency , change management comes as an inclusive approach that assists
business in implementing changes Change management is thus can be defined as
structured process to transforming workforce , operations and organization from present
scenario to future desired state (leading change, 2018). It involves explaining individuals
about need and reason for bringing out change and to accept, be dedicated and grasp
change to be better and more competitive.
Unilever is one of the world's largest multinational brand dealing in consumer
goods. It is also world's largest producer of food spreads like margarine. It was established
in 1930 with its headquarters in London UK.
Unilever found a major kind of change in their working which need to understand
by managers of a company. Although, suddenly they found that customers of Dettol used
to shift to sanitiser from soap. It used to enable them in managing change better because
chances of negative influence from this used to rise better. Previously, change used to be
in format of plan change but it become as an emergent change which used to signify as a
metaphor of white water where things could not become able to manage by Unilever
properly. Thus, this rise in sales of Dettol sanitiser impacted business where a frequent
shift from soap to sanitiser become possible.
This assignment will help in understanding the significance of change management
along with theories, tactics and strategies that are applied by an organization to deal with
change. Moreover it will also give a synopsis key areas that where organization and its
employees resist change.

TASK
I) Planned and unplanned approach of change
Change management is an systematic process that deals in implementation of
positive changes in firm and helping out employees to adapt and imply those changes
successfully . It includes making alterations in usage of resources, process and procedures
been followed, budget allocation and other areas of business operations that critically
change a firm. Although, implementing changes are unavoidable part of a business but it
is generally resisted by mangers, employees and employer too. It is because it is seen as
uncomfortable shift from present comfort zone and require to put more efforts than to
present state to which they are habitual. It also led to spreading fear among people in
specific to employees about the unknown situations to which they might not be able to
adapt themselves (Dawson and Andriopoulos, 2014).
Thus change if not handled effectively may probably results in continuous
reduction in product outcomes, turnover s, transfer requests, strikes etc. Therefore
management is saddle with most crucial task of implementing and even forcing change
on its employees. The best way to deal with resistance to change is by involving
participation of employees in introducing change, to identify and understand problems
related to it and by motivating employees to think differently and to shift their attention
from previous schedules, technical details, working procedures to what are present
scenario requirements. A manager can make use of different approaches of to successfully
implement change in its firm. Unilever being global brand follow a well planned approach
with main purpose of making sustainable living a common place.
Dettol sanitiser sales used to rise with around 8% which facilitate and enable
management to earn and generate more profit. But such frequent change resist them to
produce sanitiser more as compared with soap. Many companies understand such fact and
starting manufacturing the sanitiser on the place of soap. Henceforth, demand of such
products and services used to decline which restrict them in gaining better outcome. This
kind of modification stated as emergent change of Unilever which need to address in better
and effective manner so that beneficial gain suppose to be reflected which assist in define
better future growth as well as expansion could become possible in tenure. Hence, this
kind of modification stands as emergent change not as planned change because
modification arise in mid course and things went to alter frequently and not in control.

A change used to take place in better and effective manner when all kind of its
typologies used to address properly. Change can be of various kind which need to
understand by managers of a business in better manner so that they could be able to gain
better and signified outcome. Thus, for Unilever, it is really essential to understand about
the changes which arise in their working in streamline of Dettol sanitiser enhancement of
sales. This sales enhancement need to address properly through analysing various
typologies stated as follow:
 Incremental change define that things need to be done in better and effective
manner. The main focus is to perform and doing things better and appropriate in
frame so that beneficial outcome could be drawn. Thus, this kind of change enable
and support a business to grow and diversified their operations properly.
 Transformational change derive the things to do differ except when they already
used to become proper. It occurs only when things used to get done better and
appropriate in nature.
Unilever change suppose to be define and describe as incremental where they could
gain better and supportive outcome in frame. This typology is better and appropriate for an
organisation which facilitate and enable them in gain and define better and supportive
outcome in frame.
It strategy focus on Portfolio choices , brands and innovation involving focused
approach to innovation and increased investment in digital marketing. Besides it have an
intense strategy formulated for market development through e-commerce and by applying
zero based budgeting , leveraging scale methods for cost reduction in its production
process (Dhillon, 2013). It lays special focus on its people both its employees and
customers and therefore strives to design training and development Strategies for its
employees and value led for its consumers.
Various areas where changes can be introduced to achieve business objectives and
goals are mentioned below:-
Company's cultural – A company's culture constitutes policies, beliefs,
personality , values , behavioural norms and attitude of its employees. Changes helps in
enhancing and improving organizational by involving employees in decision making
process to make them feel associated with company making it easy to adopt changes.
Unilever follows a global culture which integrates concepts like integrity, quality,

performance, efficiency and responsibility under an effective leadership. The credit for
company's sustainability from long run is its cooperative and innovative culture which
make it easy for people to modify their working pattern according to emerging changes.
Stakeholder analysis – Stakeholders such as customers, government, creditors,
suppliers, employees etc. forms the base for progress and prosperity of an organization
and this it is essential to keep in mind about the probable impact of change in them. It is
because they emerge as an hindrance in managing change in an organisation. Unilever
through its stakeholder engagement programs try to attain its ambitious targets including
change implementation ( (Freshwater, 2014).
Risk mitigation – Risk mitigation is critical factor in introducing change as it helps
in identifying and mitigating those factors that can greatly impact activities of business
during change application.
Concept of White or Calm water metaphor : -
White water metaphor describes all changes as a continuous process that are
sudden, unpredictable but are risky and dangerous if not handles with caution and timely.
These require management to be prepared to act accordingly by making alternative
course of actions on the basis of occurrence of probable future risks at any time as they
these changes show up.
Change management is of two types planned or emergent change. Unilever have to
understand the kinds of modifications properly and then address the things in better
manner. Below mentioned things have to articulate by Unilever regarding emergent
change which arise in their working and need to better understand by managers of a
company:
 Emergent changes are those which arise in any course of moment
 These changes are not beneficial for a company due to completely change pattern
of working
 Emergent modifications resist employees to accept such things
 It used to reflect negative and inappropriate consideration in reference for deriving
suitable gain.
Unilever, have to understand the concept of white water which completely
reflected as emergent change for a company. Although, Dettol sanitisers determine a major

growth in their sales which required to understand by managers of a company. Thus, this
consideration disable Unilever to manage their working and thus negative outcome could
be reflected.
Approaches of change management: -
The first approach of change management is Kurt Lewin's model is a significant
process that provided high level approach to change. This helps in easily understand
concept of change management. It is based on three step process:- Unfreezing - It is probably the most importunate and crucial stage in change
management. This stage involves making people ready for change and to move out
from their comfort level. It is about communicating about why change is required
and motivating people to accept it as it will for their betterment. Here manager
might have to initially force to meet up deadlines either through positive
motivation like rewards or through negatively motivating them through
punishments (Gobble, 2013). Changing – This phase is concerned with when changes are been introduced and
people are not sure about its impact . It involves developing new attitudes,
behaviours, process and methods and even change in organizational structure in
some cases. People in this stage remain confused as they shift from old working
style to new way of doing things.
 Refreezing – This is the most critical stage where extra precaution is needed. It is
because here it is stage of solidifying , rein enforcing and to stabilize changes that
are been implemented. It is important to see that employees are implying these
changes in their routine tasks and that previous working styles are not again been
practices. Here the emphasis is to make people comfortable with new routines .
2) Consider a business strategy and external factors that impact on the businesses
For implementing change successfully in an organization it is important for a
business to have an effective and efficient business strategy. It is significant as it helps in
communicating and making employees understandable about changes that are been
introduced in an organization. Unilever being worlds leading brand has formulate a well
structures plan that communicates all its employees, managers to know about why a
company needs to adapt to change and then strategies are formulated to make people to
adopt changes. Meanwhile it also assist in preparing suitable training program for making

employees gain requisite skills and knowledge that will be required for completing their
upcoming job tasks . Thus change management techniques aims at grabbing opportunities
that can help in getting competitive edge over business rivals by having an upper hand in
introducing change and becoming advance. It includes making modifications in areas like
resource utilization, supply chain alteration in light of new business scenario, re scheduling
of all tasks and deadlines etc. Mentioned below are some strategies adopted for managing
changes:-
Propose incentives – The first and the foremost change that an enterprise need to
introduce in order to motivate it s employees to comply with implemented change is to
provide them with some incentives. This will encourage them to accept modifications
without much resistance.
Redefine cultural values – With the span of time to increase it productivity level
and to improve its brand vale Unilever has applied several cultural change and has
redefined company's value. By implementing this strategy Unilever shifted from company
tolerating underperformance to one who did not . Even they hae designed an entire new
training module in Port Sunlight, Cheshire to encourage employee's engagement and
reducing its costs merely by using motivational speaker ,
Exercise authority – To make implementation of change effective and to be
followed by everyone it is requisite for management to exercise strict authority on its
workforce. This is essential to suppress employee from opposing and to follow new
standards , norms and process that are been laid down by firm (Gobble, 2013).
External factors affect on business entities while implementing changes : -
Political factors – For a multinational company it is very essential to recognize and
follow all terms and conditions of all the countries in which it is having its operations
running. It is important as it assist in maintaining market sustainability and also enhances
the productivity and performance of the firm . For instance in case of Unilever US being a
political stable economy has supported the firm in minimizing company's strategic
implementation. One of a major political issue which used to face by a company is Brexit
where stores of Unilever in UK and Europe get closed down. Thus, this kind of issue also
impacted upon on working and attribute of Unilever where change could not lead to
manage properly (Herrmann and Nadkarni, 2014).

Economic factors – Economic factors are the result of market ups and downs
which are associated with employment, politics, disposable income of people, currency up
gradation or devaluation etc. which ultimately impacts performance of an organization
(Lee, Hwang and Choi, 2012). For example in developing countries like India increasing
wages brings out an opportunity for Unilever as it can earn higher profits from potential
sales as consumers gain higher disposable incomes. On the other hand developed countries
having economic stability cushions firms business from risks in other market.
Social factors – Social factors are related with taste and preferences of customer
that changes frequently and thus can hinder strategy to introduce change. In UK, generally
customers are loyal towards a specific brands or product that they use. By maintaining
quality of its product Unilever has overcome its competitors by retaining its old consumers
as well as attracting new consumers. For instance, by adopting new and more energy
efficient technologies firm can minimize its energy consumption thereby fulfil in CSR. In
regard to its CSR Unilever launched Unilever Foundation globally in 2012 to support
citizenship activities .
Technological factors – With the frequent technical upgrades it is essential for a
organization to produce products with latest features and technology as it directly impacts
its growth and success. Unilever recognizing this need consistently designs and produce
and improved products and sell it by using latest online promotional tools like through
online websites, shopping applications etc. It also constantly works towards developing
and improving it digital marketing and selling schemes. Besides, Unilever is known for it
higher level of automation that help in quick and easily delivery of products at store
locations. For example Unilever by applying TQM, it applies threshold for defects in it
manufacturing operations whose standards are derived from Unilever's market research
data as well as from consumer feedback and surveys.
Legal factors – Any change in government legislations also has a crucial impact
on the business operations. Various labour laws such as Minimum Wage act, health and
safety act, equality act etc. greatly effects a firms decision in making and implementing
policies and strategies for achieving its objectives. Being a consumer good firm Unilever
is entitled to comply with many laws and legalities. For example in most of the countries
the age of retirement for a citizen varies from 60-65 years. But when in UK and
Netherlands the government removed law which makes it mandatory to retire a person
once he attains the age of 65 years, the company also had to make changes in its policies

an d now it no longer can compel any of its employee to take retirement at age of 65 years.
(Park, Marshall, Jakku and et.al,, 2012).
Environmental factors – Unilever strongly supports renewable and sustainable
resources . Its products are designed to be eco friendly and safe from packaging to its
design and thus are safe to be consumed by its customers. With the emerging concern for
environmental degradation all over the globe, Unilever along with many other companies
established European Union Emission Trading System as a collaborative initiative to
reduce carbon emission from its manufacturing units.
3) Implications of relevant theory for human resource department
Unilever is among the leading companies that have set benchmarks when it comes
to efficient human resource management. Company keep sits most precious resources- its
employees in centre of focus while formulating any strategy, policy or procedure . It make
sure that it follow all the rules and legislation that re laid down by government fro
protecting and rights of employees and to prevent them from getting exploited or
discriminated.
Implications of human resource department: -
In context to human resource department, it is responsibility that all policies ,
procedures that are formulated should aim towards optimum utilization of resources along
with customer's satisfaction. And it is important to execute proper training and
development programs for them so that they can adapt to sudden changes occurring in
firm's business operations.
Motivational Theories
This theory was developed by Abraham Maslow and was the first theory of
motivation. According to this theory every individual has certain needs that are arranged in
an hierarchy in pyramid form. These basic needs includes requirement of food, shelter,
cloth as first and foremost priority. Once they are fulfilled employees seek to feel secure
that is in terms of job security, be loved ( friends and relationship), need to be recognized
and finally self actualization need .
It is advisable to the HR division of Unilever to be specific and focused to recruit right
person with potential capability at right job profile. It will ensure higher productivity level
for company as well as employee job satisfaction. As company has already launched its

Social Impact Hub it is likely to provide an opportunity to its employees to get participate
in various social activities resulting in satisfying their need of being loved.
Company along with its HR management team should focus on formulating employee
centric schemes for rewarding them for their contribution in providing their services to
the organization. This will surely be helpful in encouraging and motivating them which
leads to fulfilled of their need to be recognized for their work. It can also initiate self
assessment of employees , external audits and training it helps in fulfilling the last need in
hierarchy the self actualization need (Yoder-Wise, 2014).
CONCLUSION
The assignment undertaken concludes that mangers of each and every business
are required to implement change time to time in context to changing market environment
if they want to be success and run its business in long terns. Unilever being worlds largest
consumer good multinational company strategically and efficiently follow change
management for by applying various human resource theories to influence and motivate its
employees to adopt and accept changes in positive away without been resistant to it.
Moreover it is the duty of management to provide necessary training to its employees so
that they can be proficient and competitive enough to meet upcoming job challenges.

REFERENCES
Books and Journals
Bush, T. and Middlewood, D., 2013. Leading and managing people in education. Sage.
Dawson, P. and Andriopoulos, C., 2014. Managing change, creativity and innovation.
Sage.
Dhillon, J. K., 2013. Senior managers’ perspectives of leading and managing effective,
sustainable and successful partnerships. Educational Management Administration
& Leadership. 41(6). pp.736-750.
Freshwater, D., 2014. Board editorial: The challenge of global leadership: managing
change, leading movement. Journal of Research in Nursing. 19(2). pp.93-97.
Gobble, M. M., 2013. Creating change. Research-Technology Management. 56(5). pp.62-
66.
Herrmann, P. and Nadkarni, S., 2014. Managing strategic change: The duality of CEO
personality. Strategic Management Journal. 35(9). pp.1318-1342.
Lee, S. M., Hwang, T. and Choi, D., 2012. Open innovation in the public sector of leading
countries. Management decision. 50(1). pp.147-162.
Park, S. E., Marshall, N. A., Jakku, E. and et.al,, 2012. Informing adaptation responses to
climate change through theories of transformation. Global Environmental
Change. 22(1). pp.115-126.
Patanakul, P., 2014. Managing large-scale IS/IT projects in the public sector: Problems
and causes leading to poor performance. The Journal of High Technology
Management Research. 25(1). pp.21-35.
Yoder-Wise, P. S., 2014. Leading and Managing in Nursing-E-Book. Elsevier Health
Sciences.
Online
leading change. 2018.[Online]. Available through.
<http://www.thechangeforum.com/Change%20Leadership.htm>.