p and g hrm report.doc

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Human Resource Management Report


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ACKNOWLEDGEMENTS

We are highly thankful to Almighty ALLAH who enabled us to complete this projectsuccessfully. We are very obliged to Sir Aftab Ahmed, who has been very encouragingthroughout the course and shared her valuable wisdom with us. Along with it we wouldalso like to mention the following individuals,

Mr. Omer Imtiaz (Associate, Human Resource Manager P&G) Mr. Sheeraz Siddiqui ( Assistant, Human Resource Manager P&G)

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EXECUTIVE SUMMARY1

In 1837, William Procter and James Gamble formed a humble but bold new enterprise.What began as a small, family-operated soap and candle company grew and thrived,inspired by P&G's purpose of providing products and services of superior quality andvalue.Key values are Integrity, Ownership, Passion for Winning, Trust and Leadership.2Our company has one of the largest and strongest portfolios of trusted brands, includingPampers, Tide, Ariel, Always, Pantene, Bounty, Pringles, Charmin, Downy, Iams, Crest,Actonel and Olay.

The P&G community consists of over 138,000 employees working in over 80 countriesworldwide. Major function of human resource department at proctor and gamble aremaximizing human capabilities, maximizing organizational excellence, maximizingengaging, talent supply management and external relation development. P&G prefers tohire employees through its internship programs. The procedure for hiring internees is CVassessment, written test, screening interview, panel/comprehensive interview, an offerletter and finally medical examination, they go through two evaluations during theirinternship, that is, the mid-term evaluation and a final evaluation. The mid-termevaluation deals with the strength and opportunities for the internees whereas a finalevaluation deals with the viability of hiring them.

Procter and Gamble has a very intense and serious appraisal system where performance isrewarded. Everyone is accountable for his actions regardless of his job title. Employeesatisfaction is highly held in this firm. Procter and Gamble as being a multinationalcompany provides opportunities to their employees to develop their skills so that they cankeep in touch to the technological and environmental situations. For this purpose theyorganize workshops, seminars so to train their employees and encourage them for furtherstudies by giving study allowance.

P&G has a unique human resource management system where it focuses on bringing outthe best of its employees through continuous hard work and devotion.

1 www.pg.com2

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Table of Contents

ACKNOWLEDGEMENTS .................................................................................................2Table of Contents ................................................................................................................. 41. INTRODUCTION ........................................................................................................... 53. Company Cultures ........................................................................................................... 74. Human Resource Department ..........................................................................................75. RECRUITMENT AND SELECTION .............................................................................8

6. ORIENTATION ............................................................................................................ 137. EMPLOYEE TRAINING .............................................................................................. 148. PERFORMANCE MANAGEMENT ............................................................................179. CAREER DEVELOPMENT ......................................................................................... 1810. SWOT P&G Human Resource Department ............................................................... 1811. Conclusion ...................................................................................................................20BIBLIOGRAPHY ..............................................................................................................21APPENDIX ........................................................................................................................22

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1. INTRODUCTION

History

In 1837, William Procter and James Gamble formed a humble but bold new enterprise.What began as a small, family-operated soap and candle company grew and thrived,inspired by P&G's purpose of providing products and services of superior quality andvalue.

The power of P&G's Purpose is the one factor, above all others, that has contributed tothe Company's long heritage of growth. It is an essential part of who we are, who wehave been and who we will be for generations to come.

Purpose, Values and Principles

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We will provide branded products and services of superior quality and value that improvethe lives of the world's consumers, now and for generations to come. As a result,consumers will reward us with leadership sales, profit and value creation, allowing ourpeople, our shareholders and the communities in which we live and work to prosper.

Key values are:

Integrity

Ownership

Passion for Winning

Trust

Leadership

1.3 Global Operations

The P&G community consists of over 138,000 employees working in over 80 countriesworldwide. What began as a small, family-operated soap and candle company nowprovides products and services of superior quality and value to consumers in over 180countries.

Products

Our company has one of the largest and strongest portfolios of trusted brands, includingPampers, Tide, Ariel, Always, Pantene, Bounty, Pringles, Charmin, Downy, Iams, Crest,Actonel and Olay.

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1.5 P&G Pakistan

Procter & Gamble commenced operations in Pakistan 1991. There goal is to become thefinest global consumer goods company operating in Pakistans dynamic and promisingmarket.

Up till now P&G Pakistan has invested in excess of RS 6 billion in terms of assets,working capital and market development. Direct employees are 250 and helps create over4000 jobs indirectly.

In recent past P&G have invested $ 40 million towards building new fabric and homecare plant in Port Qasim Sindh.

3. Company Cultures

Diversity makes our world unique. Its our style of communication, our own specialtake on the world around us. To us, diversity covers a broad range of personalattributes and characteristics, such as race, sex, age, cultural heritage, personal

background, and sexual orientation. By sharing our unique selves, our knowledge andexpertise, and by continually stretching our wings to embrace something new, somethingunfamiliar, we color our worldand bring it to life.

4. Human Resource Department

The HR department (HRD) at P&G is a strategic function. The department helps formand implements strategies. The HR function at P&G is not traditional support functionbut 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&GHR does not take care of the compensation and salaries. The payment of salaries is takencare by the Purchasing department. HR here is a change and development agent and notthe Police of the organization. Its functions are very different from the functions of thetraditional HR departments and are listed in the figure below:

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5. RECRUITMENT AND SELECTION

Prior to starting the actual process of recruitment and selection the HR department ofP&G undergoes a systematic procedure of determining the organizational demands foremployees by identifying the job, tasks and responsibilities, skills and qualifications

required for each job.

5.1 Functions

5.1.1 Job Structing & Definition

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

5.1.2 Job Description

It is a written statement that explains duties, working conditions and other aspects ofspecified jobs. It defines the job in terms of its content and scope. Although the formatcan 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 andduties by keeping a constant check on their performance. It also takes care to provide its

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employees the best working conditions, which was apparent from the fact that duringthere survey it was found that the atmosphere was tranquil and highly professional whereevery 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 applicanthimself. This description is then matched and adjusted accordingly with that prepared bythe parent company. Though highly formalized, yet P&G Displays flexibility in thisrespect by allowing its employees full participation in setting goals and objectives.

5.1.3 Job Specifications

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

5.1.4 Job Standards

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

by its employees.

5.2 Selection

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

a) A&Ts (assistant and technicians): These are people who sit for the Q&T testb) Management Employees: These are people who sit for the Global Problemsolving or GPST test.

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

P&G Recruitment and Selection Process

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Organizational Goals and Strategy

CV ASSESSMENT

PST & Q&T TEST

SCREENING INTERVIEW

PANEL/COMPREHENSIVE INTERVIEW

OFFER

MEDICAL EXAMINATION

Online Assessment for

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5.3 Selection Process

Selection steps at P&G:

1.Application2.Assessment3.Initial Interview4.Final Interview5.Your offer and your future

5.4 Major Intakes Internship programs

P&G prefers to hire employees through its internship programs. The procedure for hiringinternees is the same one as mentioned in the figure; however, they go through twoevaluations 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 interneeswhereas 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.

5.5 Retaining Employees

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

5.6 Types of Selection Devices

Selection at P&G involves following distinctive processes. A candidate must clear alllevels of selection process to be hired at P&G.Written testOnline evaluationScreening InterviewPanel interview.

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Selection is the process of assessing the candidates by various means and making achoice 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 arethen called for interview. An interview with the HR Manager, the department head andfinally by a panel of executives.

5.7 Sources of Applicants

5. 7.1 Internal Sources

P&G is well known of being conservative and this can be justified by the fact that theytry 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 ResourcesManager 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 employeedemands and thus provides a better understanding for their work.

The organizational policy of promoting from within enhances the employeesmorale, organizational commitment and job satisfaction.

5.7.2 Job Rotation

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

5.8 External Recruiting Channels:

At P&G external recruiting is the last option. In case a need arises for externalrecruitment they meet it discreetly. When enquired on this issue the HR Manager saidthat they do not prefer external recruitment because it may have a negative impact on thework 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

5.8.1 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 sellhimself/herself to the organization. This method is very appreciated at P&G because it

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too gives them the chance to hire fresh, vigilant, determined and confident work force forentry-level jobs.

5.8.2 Internships

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

Interesting Facts:

Initially P&G hired recruits only fromIBA andLUMSbut now they areoutreaching for more institutions like CBM, SZBAIST and AMIetc fordiversification.

6. ORIENTATION

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

1) Work unit orientation2) Organization orientation

Work unit orientation familiarizes the employees with the goals of the work unit, clarifieshow his or her job contributes to the units goals, and includes an introduction to his orher co-worker.

Organization orientation informs the new employee about organizations objectives,history, philosophy, procedure and rules. This should include relevant human resource

policies and benefits such as work hours, pay procedure, overtime requirements, andfringe benefits, in addition, a tour of the organizations work facilitie

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7. EMPLOYEE TRAINING

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

Developmental training is also conducted here which helps an employee to improve hisor 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 differentdepartments, these people are the best in business and they are assigned the task oftraining the rest of the employees.

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

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

Annual functions are held regularly where employees of all levels interact and discussadvance strategies and do planning for future. Team building exercises are alsoconducted along with motivational workshops so that specific issues concerningemployees 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 professionaldevelopment and the ability to touch someones life through his decisions and actions.P&G is a company so varied in the scope of businesses, that they offer a totally differenttype of career experience than their competition.

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

7.1 Training and Development Approaches

Basically there are two approaches for training and development.

1) On-the-job-approach

2) Off-the-job-approach

7.1.2 On the job Approach

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

7.1.2.1 Job Instruction Training:

New employees go to each and every department to expand their vision, as well as toenhance the experience requirements of work. This increases their ability to performbetter. This benefits the growth and personal grooming of the employee. It also results inan increase in the potential of the new hire, which ultimately adds to the organizations

effectiveness.

7.1.2.2 Job Rotation

Job Rotation is the practice of periodically shifting workers through a set of jobs in aplanned sequence. The approach is often aimed at reducing the boredom associated withjob simplification by providing some task variety. Job rotation also has the advantage of

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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 departmentto the output, which is the delivery of the product. Between these two comes everything.

7.1.2.3 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 thetrainee in such a manner that he can perform exactly the same as his trainer does.

7.1.3 Off-the-job-approach

This approach comes into action when the trainee is trained not on the job, but is trainedat a similar environment off the job. By this I mean to say that he is trained in a similarenvironment with all the same materials used in the jobs so that he can learn about his jobwithout disturbing the actual process.Some techniques of this approach that are used at P&G are given below.

7.1.3.1 Warehouse Training

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

7.1.3.2 Action Learning

This type of training takes place at Procter and Gamble, at regular intervals to enhancedecision-making qualities in the employees. It benefits the employee to go ahead in hiscareer and also benefits the organization to gain from the employees increased potentialand experience. For example, Employees are given a problem and are said to find the bestpossible solution in a certain time period. This practice benefits the employee ondecision-making skills, which ultimately result in the increased efficiency of theorganization.

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8. PERFORMANCE MANAGEMENT

Procter and Gamble has a pre set system to evaluate employee performances so as toreach an objective human resource decision which is backed by documentation proof. Itis based on Management by Objective principle which focuses mainly on end resultsachieved. Meetings are held quarterly arranged by subordinates. One to one meetings arealso held where objectives are delegated. Each employee is given a fair chance and inthese meetings all the issues or problems faced by every individual employee arediscussed 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 isrewarded. Everyone is accountable for his actions regardless of his job title. Employee

satisfaction is highly held in this firm.

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9. CAREER DEVELOPMENT

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

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

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

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

10. SWOT P&G Human Resource Department

Strengths

Highly competitive

Extremely strong goodwill

Financial stability

Highly organized framework

Low employee turnover rate

Working is a great learning experience

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Weaknesses

Does not advertise

Conservative attitude

Low preference for external recruitment

Opportunities

External recruitment can be effective

Threats

Can lose out good applicants as they do not advertiseIntakes only at fresh graduates are risky

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11. Conclusion

P&G is a Learning Organization to some extent as it focuses on enhancing its systems(including people) to continually increase the organization's capacity for performance.

P&G has built a strong foundation for consistent sustainable growth, with clear strategiesand room to grow in each strategic focus area, core strengths in the competencies thatmatter most in the industry, and a unique organizational structure that leverages P&Gstrengths.

Its HR department has evolved since the organizations inception and it now empowersemployees to choose their mentor on their own from any part of the organization

worldwide through their intranet. This helps to even resolve any issue regarding similarproblems faced by employees in different parts of the world.

Out of the three Ms i.e. Man, Money & Machine, probably the human dimension is ofthe utmost importance. Hiring employees is not the sole objective rather the primary goalis to devise a tool that can help the organization attract, maintain, retain and motivatethem enough to give their best to the organization. Recruitment & Selection is thereforethe first step towards success. Better the quality of the employees better the performanceof the company.

An organizations ability to meet the recruitment & selection challenges provides an

opportunity to make significant contribution to the company. With better quality peopleexecuting the companys operations the HR department can create a competitiveadvantage for the company.

In light of the research conducted by our team members we have concluded that P&G isan extremely formal, organized, dedicated and quality conscious organization. It has veryformalized structure for the recruitment and selection of employees. The workingexperience for recruits at P&G is a learning process. It believes in internal recruitment,which helps them maintain a consistent workforce.The turnover rate is about less than 5% that is favorable for the company.

P&G has a unique human resource management system where it focuses on bringing outthe best of its employees through continuous hard work and devotion.

Finally, P&G must take into account the grapevine system of the organization (if any)and continuously try to reduce any organizational politics which would be against theinterests of the company.

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BIBLIOGRAPHY

The findings of this report have been gathered through:

Interviews of P&G Human Resource Department personnel

P&G website (www.pg.com)

P&G Pakistan(www.pg.com.pk)

Wikipedia

Google search engine

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http://www.pg.com/http://www.pg.com.pk/http://www.pg.com/http://www.pg.com.pk/


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APPENDIX

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