Study of human resource management in proctor and gamble business essay

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers.

Characteristics of HRM approach

The protection of employee rights in the workplace is one of the fundamental ethical questions facing organizations today. Organizations differ in the extent to which they protect the rights of both employees and themselves as employers, yet little research has examined the types of organizations that have rights protection policies. Instead of the classic normative approach to ethical issues, this study took a contextual approach to the management of rights in the workplace through human resource policies. Associations were found between the organizational characteristics of size, industry, unionization, business condition, and the existence of employee and employer rights policies. Additional analyses revealed underlying dimensions in right policies and the relationship of organizational characteristics to these aspects of rights management were examined. The results are discussed in terms of understanding human resource rights management within an organizational context.

Catherine E. Schwoerer is an Assistant Professor in the School of Business at the University of Kansas. Her research interests include work place rights and responsibilities, training and development, self-efficacy, and aging and work.

Douglas R. May is an Assistant Professor in the Department of Management at the University of Nebraska. His research interests include social issues management and the impact of the physical environment on employees” attitudes and health.

Benson Rosen is Hanes Professor of Management and Chairman of Management Area at the Kenan-Flagler Business School, The University of North Carolina. He is a Fellow of the American Psychological Association and a member of the Academy of Management.

Procter & Gamble

MISSION STATEMENT

“We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper”.

INTRODUCTION

Proctor & Gamble (P&G) started their business by producing candles on small scale. It was founded in 1837. Its head quarter is situated in America. It produces the consumer goods. As of 2008, P&G is the 6th largest corporation in the world by market capitalization and 14th largest US Company by profit. It is 10th in Fortune’s Most Admired Companies list (as of 2007). P&G is credited with many business innovations including brand management, the soap opera, and “Connect & Develop” innovation.it has 138,000 employees to perform their work. Worldwide they have 386 products.

Products

Proctor & Gamble produce 386 Products in world. Here we will mention some of their famous products. It is famous on producing Shampoo. Their main products on this field are Head&Shoulder, Pantene and Pert plus. They also produce soap. Worldwide Safeguard and Camay are their famous soaps. They produce all kind of shaving materials named as Gillette. Pringles is one of the best chips in the world and it is produced by P&G.

Hr structure of P&G:

It appears that there isn’t just one HR department in every country office, but they have an HR team in every department: 1 for IT, 1 for sales, 1 for marketing, etc.

Such a specialized structure quite certainly answers the departments need better, i.e. more directly and faster. On the other hand managing such an HR mega group can be quite a headache. Not to mention that these HR employees don’t have an overview over all the company’s processes – which makes regular rotation for HR specialists necessary.

HR Activities of P&G

Talent Supply Management

P&G is dedicated to recruiting the finest people in the world and building the company from within, through training and promoting our existing employees. P&G delivers a staffing strategy that meets the company’s global needs. By applying supply chain management philosophies to the staffing process and utilizing configurable workflow and collaboration platform, P&G will not only achieve cost savings and faster employee time-to-contribution, but also enterprise-wide productivity improvements and greater retention.

External Relation Development

An important function of P&G is to manage external relationships.  In fact, P&G spend a majority of their time and energy developing and managing these external relationships.  This focus on external relationships is just as applicable to emerging and middle market companies.  P&G develop and maintain mutually beneficial business relationships.  They advocate their clients’ behalf to ensure that this happens. 

Maximizing organizational Excellence

P&G explores the necessity for building strong relationships among employees, customers and community by:

Planning strategically

Benchmarking for excellence

Leading collaboratively

Governing by standards

MODELS OF HRM

The Harvard map of HRM

First proposed model to P&G is Harvard Map of HRM. This is perhaps the most determining model of HRM and has a major influence on academic debate on the subject.

The Harvard interpretation sees employees as resources. However, they are viewed as being fundamentally different from other resources – they cannot be managed in the same way. The stress is on people as human resources. The Harvard approach recognizes an element of mutuality in all businesses, a concept with parallels in Japanese people management, as we observed earlier. Employees are significant stakeholders in an organization. They have their own needs and concerns along with other groups such as shareholders and customers.’

The Harvard Map or model outlines four HR policy areas:

Human resource flows – recruitment, selection, placement, promotion, appraisal and assessment, promotion, termination, etc.

Reward systems – pay systems, motivation, etc.

Employee influence – delegated levels of authority, responsibility, power

Work systems – definition/design of work and alignment of people.

Which in turn lead to the ‘four C’s’ or HR policies that have to be achieved:

Commitment

Congruence

Competence

Cost effectiveness

2- Contingency Theory

Second model to be referred is Contingency Theory. Contingency theories are a class of behavioral theory that contend that there is no one best way of organizing / leading and that an organizational / leadership style that is effective in some situations may not be successful in others. In other words: The optimal organization / leadership style is contingent upon various internal and external constraints. 

These constraints may include: the size of the organization, how it adapts to its environment, differences among resources and operations activities, managerial assumptions about employees, strategies, technologies used, etc.

Four important ideas of Contingency Theory are:

1. There is no universal or one best way to manage 

2. The design of an organizations and its subsystems must ‘fit’ with the environment 

3. Effective organizations not only have a proper ‘fit’ with the environment but also between its subsystems and 

4. The needs of an organization are better satisfied when it is properly designed and the management style is appropriate both to the tasks undertaken and the nature of the work group.

In contingency theory of leadership, the success of the leader is a function of various contingencies in the form of subordinate, task, and/or group variables. The effectiveness of a given pattern of leader behavior is contingent upon the demands imposed by the situation. These theories stress using different styles of leadership appropriate to the needs created by different organizational situations. No single contingency theory has been postulated.

Functions and role of HR planning

Rigorous HR planning links people management to the organization’s mission, vision, goals and objectives, as well as its strategic plan and budgetary resources. A key goal of HR planning is to get the right number of people with the right skills, experience and competencies in the right jobs at the right time at the right cost. The process by which management ensures that it has the right personnel, who are capable of completing those tasks that help the organization reach its objectives.

Human Resource Department

The HR department (HRD) at P&G is a strategic function. The department helps form and implements strategies. The HR function at P&G is not traditional support function but a strategic function. HR sits at the table while making policies, procedures, goals, and strategies. The HR activities are different from the traditional activities for example P&G HR does not take care of the compensation and salaries. The payment of salaries is taken care by the Purchasing department. HR here is a change and development agent and not the Police of the organization.

RECRUITMENT AND SELECTION

Prior to starting the actual process of recruitment and selection the HR department of P&G undergoes a systematic procedure of determining the organizational demands for employees by identifying the job, tasks and responsibilities, skills and qualifications required for each job.

Functions

Job Structing & Definition

Job structuring begins when a need arises in a certain department. This need is approved and sent it to the HR department, which after studying the requirement again starts the recruitment & selection process.

Job Description

It is a written statement that explains duties, working conditions and other aspects of specified jobs. It defines the job in terms of its content and scope. Although the format can vary, the job description may include information on job duties and responsibilities.

P&G takes due care that their employees are well aware of their responsibilities and duties by keeping a constant check on their performance. It also takes care to provide its employees the best working conditions, which was apparent from the fact that during there survey it was found that the atmosphere was tranquil and highly professional where every manager has his own workstation and every employee has his own desk.

Job description at P&G, however, is not pre-structured but is prepared with the joint consultation of the Human resources manager, the department head and the applicant himself. This description is then matched and adjusted accordingly with that prepared by the parent company. Though highly formalized, yet P&G Displays flexibility in this respect by allowing its employees full participation in setting goals and objectives.

Job Specifications

Job specification describes the job demand on the employees as to what are the human skills that are required for the different jobs. These requirements include experience, training, education and the ability to meet physical and mental demands. Job specification is summarized and known as a Benchmark at P&G. Benchmark is based upon different positions. All the biota and resumes are weighed on this.

Job Standards

Job standards are benchmarks against which employee performance is measured. It also serves, as the goals the employees are required to meet. As the goal setting at P&G is done by the employees’ participation there is a high level of motivation and there is seldom a person who performs below par. P&G boasts of its standards always being met by its employees.

Selection

Recruitment and Selection is performed very strategically at P&G. There are two broad levels of employees at P&G:

A&Ts (assistant and technicians): These are people who sit for the Q&T test

Management Employees: These are people who sit for the Global Problem solving or GPST test.

The figure below shows the steps involved in the recruitment and selection process for A&Ts and Management Employees. The recruitment and selection process for the A&Ts and management employees is similar except for the Online Assessment. After the CV assessment or PST test the management candidates have to clear the Online Assessment before the screening interview.

Selection Process

Selection steps at P&G:

1.Application

2.Assessment

3.Initial Interview

4.Final Interview

5.Your offer and your future

Major Intakes Internship programs

P&G prefers to hire employees through its internship programs. The procedure for hiring internees is the same one as mentioned in the figure; however, they go through two evaluations during their internship, that is, the mid-term evaluation and a final evaluation. The mid-term evaluation deals with the strength and opportunities for the internees whereas a final evaluation deals with the viability of hiring them.

Interesting Facts:

P&G have no CGPA recruitment

P&G Practices fast development

P&G follows proactive approach to meet future HR Needs

P&G at current level of recruitments are for at least 2 years later

P&G HR & Brand makes them successful.

P&G during current recession was able to recruit 50 new employees.

Retaining Employees

P&G is involved in selective hiring and its HR department assesses the needs of the organization in advance. Each employee is a part of a team and they try hard to retain their employees. Its selective hiring process enables the organization to hire enough employees so that it can sustain them through the different business cycles.

Types of Selection Devices

Selection at P&G involves following distinctive processes. A candidate must clear all levels of selection process to be hired at P&G.

Written test

Online evaluation

Screening Interview

Panel interview.

Selection is the process of assessing the candidates by various means and making a choice followed by an offer of employment. This process consists of the following steps. Initial screening is done by the written test taken by P&G. The applicants who qualify are then called for interview. An interview with the HR Manager, the department head and finally by a panel of executives.

Sources of Applicants

Internal Sources

P&G is well known of being conservative and this can be justified by the fact that they try their best to fill in any vacancies that crop up by first scanning their current employees for the required qualifications and experience. According to the Human Resources Manager they prefer to go internally because

It is considerably less costly than external recruiting.

A present employee is more likely to stay at P&G than an external candidate.

The people already working for P&G are well aware of its culture and employee demands and thus provides a better understanding for their work.

The organizational policy of promoting from within enhances the employees’ morale, organizational commitment and job satisfaction.

Job Rotation

Once the recruits are identified they are put on a job rotation in the organization.

External Recruiting Channels:

At P&G external recruiting is the last option. In case a need arises for external recruitment they meet it discreetly. When enquired on this issue the HR Manager said that they do not prefer external recruitment because it may have a negative impact on the work group, cohesion and morale.

Although advertising is an effective tool, yet P&G does not advertise.

They create awareness by following methods

P&G HR News Letter

P&G stays in touch with Employment Placement Officers at Universities

Walk-ins

Another common and effective methods of external recruitment are walk-ins and write-ins. These methods are quite informal and provide the applicant an opportunity to sell himself/herself to the organization. This method is very appreciated at P&G because it too gives them the chance to hire fresh, vigilant, determined and confident work force for entry-level jobs.

Internships

Another channel of external recruitment is internships. These internships facilitate market exposure for fresh graduates. P&G provides these recruits with an extensive learning program where they are taught how to handle dealings in the corporate world and hence mould them into their culture. These recruits are evaluated after their internship period is over and these appraisals are filed. Whenever external filling is required these interns are their first option to the P&G.

Interesting Facts:

Initially P&G hired recruits only from IBA and LUMS but now they are outreaching for more institutions like CBM, SZBAIST and AMI etc for diversification.

EMPLOYEE TRAINING

It is an integral part of Procter and Gamble. They have an in house training program where employees are trained not only regarding their technical or academic skills, but also learn to enhance their interpersonal skills so that they can develop better communication skills, work efficiently as team members and be prepared to face challenging environments comfortably. Through these trainings, the employees also learn to cope in different and diverse environments and develop practical skills so that they could be at par with this ever changing and tough business environment.

Developmental training is also conducted here which helps an employee to improve his or her work performance. The employees here are also trained regarding safety, health and legal issues. So through these trainings they turn an employee into a leader.

They have lead teams in both offices which consists of all the best people from different departments, these people are the best in business and they are assigned the task of training the rest of the employees.

Procter and Gamble as being a multinational firm has operations in many different countries of the world but they all are well interconnected. For instance if a plant at Cairo does something new or applies a new strategy which is successful, people are sent from here so as to learn them and apply it into their operations. So on job training takes place continuously.

They also comprise of technology based training programs. Like they have a mentor program on their website where employees can interact with each other, discuss issues and find ways to help each other in times of need (Experiential exercises). Here people in similar departments or on similar projects interact, share information, guide and find solutions.

Annual functions are held regularly where employees of all levels interact and discuss advance strategies and do planning for future. Team building exercises are also conducted along with motivational workshops so that specific issues concerning employees could be addressed and rectified.

Management trainees in this company are also trained through job rotation.

P&G offers a person immediate responsibility, challenge, personal and professional development and the ability to touch someone’s life through his decisions and actions. P&G is a company so varied in the scope of businesses, that they offer a totally different type of career experience than their competition.

At P&G, the opportunities for advancement are limitless. Whether a person wants to gain experience across functions, brands or even locations, P&G offers a person the possibility to get additional exposure to various parts of the business. At P&G, a person goes as far as his talents will take him. His skills and drive to succeed are the only determining factor in how far he will go! Take advantage of the company’s promote-from-within culture, top-notch training and outreach programs.

Training and Development Approaches

Basically there are two approaches for training and development.

On-the-job-approach

Off-the-job-approach

On the job Approach

This approach comes into action when the training given is on the job. By this it means that an employee is trained while doing work, right on the working spot. An experienced employee or a trainer continuously teaches the new hire to deliver the best, and also keeps an eye on him to check whether the training is result oriented or not. Some techniques of this type of training that take place at P&G are explained below.

Job Instruction Training:

New employees go to each and every department to expand their vision, as well as to enhance the experience requirements of work. This increases their ability to perform better. This benefits the growth and personal grooming of the employee. It also results in an increase in the potential of the new hire, which ultimately adds to the organization’s effectiveness.

Job Rotation

Job Rotation is the practice of periodically shifting workers through a set of jobs in a planned sequence. The approach is often aimed at reducing the boredom associated with job simplification by providing some task variety. Job rotation also has the advantage of cross-training workers, which benefits the organization when vacations, absences, downsizing or resignations occur. For example P&G believes in this approach and rotates its employees in all the departments, staring from the input that is the import department to the output, which is the delivery of the product. Between these two comes everything.

Coaching

Coaching is an important part in the training and development process. In this approach, the new employee is under supervision of a more experienced employee, who trains the trainee in such a manner that he can perform exactly the same as his trainer does.

Off-the-job-approach

This approach comes into action when the trainee is trained not on the job, but is trained at a similar environment off the job. By this I mean to say that he is trained in a similar environment with all the same materials used in the jobs so that he can learn about his job without disturbing the actual process.

Some techniques of this approach that are used at P&G are given below.

Warehouse Training

The HR department conducts this form of training in order to familiarize the employee with different job routines. The employee has to learn the specific tasks. For example, at P&G, inventory management is an essential task. The workers are sent to the warehouse and have to undergo training associated with maintenance of the serial numbers, production batches, labeling etc.

Action Learning

This type of training takes place at Procter and Gamble, at regular intervals to enhance decision-making qualities in the employees. It benefits the employee to go ahead in his career and also benefits the organization to gain from the employee’s increased potential and experience. For example, Employees are given a problem and are said to find the best possible solution in a certain time period. This practice benefits the employee on decision-making skills, which ultimately result in the increased efficiency of the organization.

ORIENTATION

There are two types of orientation take place at proctor and gamble.

Work unit orientation

Organization orientation

Work unit orientation familiarizes the employees with the goals of the work unit, clarifies how his or her job contributes to the unit’s goals, and includes an introduction to his or her co-worker.

Organization orientation informs the new employee about organization’s objectives, history, philosophy, procedure and rules. This should include relevant human resource policies and benefits such as work hours, pay procedure, overtime requirements, and fringe benefits, in addition, a tour of the organization’s work facilities

Analyse ways in which performance can be enhanced

Performance appraisal

Concerned with determining how well employee are doing, communicating that information to employees and establishing a plan for performance improvement.

In sapphire fiber the performance of employee is checked by using a form and this form indicates few areas and a percentage is given to all these areas. So employee performance is evaluated according to this, this activity occurs once a year. Suggestions from them are appreciated.

The exact performance appraisal is not happening in sapphire fiber. They are working on it. All paper work is completed and within 2 to 3 months it will in process.

Enhancement processes

Procter and Gamble has a pre set system to evaluate employee performances so as to reach an objective human resource decision which is backed by documentation proof. It is based on Management by Objective principle which focuses mainly on end results achieved. Meetings are held quarterly arranged by subordinates. One to one meetings are also held where objectives are delegated. Each employee is given a fair chance and in these meetings all the issues or problems faced by every individual employee are discussed and each one is provided with all the possible help and assurance.

Procter and Gamble has a very intense and serious appraisal system where performance is rewarded. Everyone is accountable for his actions regardless of his job title. Employee satisfaction is highly held in this firm.

CAREER DEVELOPMENT

We know that career development means a sequence of position held during his or her lifetime.

Procter and Gamble as being a multinational company provides opportunities to their employees to develop their skills so that they can keep in touch to the technological and environmental situations.

For this purpose they organize workshops, seminars so to train their employees and encourage them for further studies by giving study allowance.

They do not discriminate at any level. Opportunities are open for every individual to develop themselves and they help their employees for this purpose.