Study of Human Resource Management in Proctor and Gamble Business Essay

5/20/2015
Studyofhumanresourcemanagementinproctorandgamblebusinessessay
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, selfefficacy, 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 KenanFlagler 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".
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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
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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 ashumanresources. 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.'
TheHarvard Mapor 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.
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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
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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
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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
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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.
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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
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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

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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.
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Action Learning
This type of training takes place at Procter and Gamble, at regular intervals to enhance decisionmaking 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
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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.
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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.
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5/20/2015

Study of human resource management

Characteristics of HRM approach

Procter & Gamble

The Harvard map of HRM

Functions and role of HR planning

Human Resource Department

salaries. The payment of salaries is taken care

Major Intakes Internship programs

P&G Practices fast development

Types of Selection Devices

External Recruiting Channels:

Training and Development Approaches

On the job Approach

Job Instruction Training:

0115 966 7955

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