Ambreen ZulfiqarMohammad Ali

Farwa Afzal Som Dev FareedBarkat

Training & Development at P&G

REPORT ON STRATEGIC HRM AT P&G

ContentsAbstract......................................................................................................................1Procter & Gamble......................................................................................................2

Key values are:........................................................................................................2P&G Pakistan.............................................................................................................3HR at P&G.................................................................................................................3INTRODUCTION TO P&G HR DEPARTMENT:..........................................................4SWOT ANALYSIS OF HR DEPARTMENT:.................................................................5

Strength:.................................................................................................................5Weakness:...............................................................................................................5Opportunity.............................................................................................................5Threat:.....................................................................................................................6

UNIQUE POINT:........................................................................................................6Orientation at Proctor and Gamble:...........................................................................7

Benefits of Employee Orientation:..........................................................................7P&G and Its Employees:............................................................................................8TRAININGS IN P&G:.................................................................................................8

1) Leadership development training:......................................................................92) Training for Suppliers:........................................................................................93) Training for negotiation skills:............................................................................94) Finance team training;......................................................................................105) P&G Driver training:.........................................................................................116) P&G technical training:....................................................................................117) Food safety Training:........................................................................................12Basic Purposes of conducting trainings:...............................................................12

TRAINING METHODS IN........................................................................................13Training and development approaches:...................................................................14

1) On the job approach:........................................................................................142) Off the job approach:........................................................................................15

PERFORMANCE MANAGEMENT:...........................................................................16CAREER DEVELOPMENT AT P&G..........................................................................17HR CONTRIBUTION................................................................................................20Conclusion...............................................................................................................20

AbstractThe report is submitted to the Human Resource Management Instructor Mr. Qamaruddin Maitlo, by students of Business Administration at Sukkur IBA, Pakistan.This report covers the information about P&G, and their training and development policies. P&G has always been a career developing company for its employees. This is the reason it has evolved to be such an inspiring MNC and set aspirations for people to follow the path or try to be a part of P&G as an employee.P&G’s HR department makes Training and development policies, so it is a very crucial branch, this report also tells about the HR department of P&G, how it is unique leaving all other traditional HR departments, the recruitment, selection and training process at P&G and about approaches that are being followed to serve the mentioned purpose, and how training is used for performance management and career development at P&G.

Procter & Gamble

P&G named after the two worthy entrepreneurs Mr. William Procter & James Gamble starting a small business in 1837 based on two products, soap and candle and what it has become now would not be more than a dream in those times, P&G is recognized as one of the most reputed MNCs in world with having its operations and expansions to more than 180 countries worldwide with a dedication to serve the customers with needs and better life style.

The valuations of the company can be easily determined by above lines, but to make it more specific some figure like just to be mentioned help us better, P&G worldwide has an asset value of $132.26 billion and a revenue of $83.06 Billion.

The P&G is alone responsible for employing more than 118,000 with its operations in more than 80 countries, the HR at P&G highly in charge to get employees that worth for the company and provide them with a great opportunity to be a part of world’s most prestigious MNC.

The job of HR at P&G is maximized capabilities, talent supply and relationship development, how they do it is a separate detailed part mentioned later.

The company has values, principles, purpose as follows:

“We will provide branded products and services of superior quality and value that improve the 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 our people, our shareholders and the communities in which we live and work to prosper”

KEY VALUES ARE: Integrity Leadership Passion for Winning Trust Ownership

www.P&G.com

P&G PakistanIn 1991 P&G started serving the people of Pakistan, up till now 6 billion PKR has been invested and its employees over 4250 direct and indirect employees country wide, the recent invest is $ 40 million for home care and fabric plant near the Port Qasim Sindh.

The company has belief that each individual belonging from anywhere has his/her unique and at P&G we share that uniqueness to help achieve goals that is what diversity means to P&G family.

HR at P&GHR is not just a support function at P&G, it’s a strategic team that has the charge of company’s future overlooks, and they make policies, procedures, goals and strategies when sit at table. The uniqueness in HR here is that it is not responsible for compensations and salaries. It’s very interesting to know such fact, thus it indicates how much HR at P&G is concerned about the company’s growth. It cannot be denied that what P&G has become now would have never been possible without HR department’s strategic views, details about HR are mentioned below.

INTRODUCTION TO P&G HR DEPARTMENT:The Human Resource Management department is the key department in the organizational chart that plays the vital role in the success of the company. It performs the main function of organizations like the recruitment of employment, training and development, planning, developing their capacity, utilizing, maintaining, compensating their service and providing the direction. The structure of the HRM department in the Procter & Gamble is Global not the local one, because it operates in the different countries of the world. This can be attained by generating interdependencies within the human resource community across the company. A group of ten teams actively works on the different area of the HRM activity like Human Resource Planning, Recruitment and Selection, Training and Development, Performance Management and Appraisal.

The values of HR department are the partnerships with business leaders, by driving change and managing transformation through the ability to create and manage culture by the management of HR practices of HR systems with excellence through personal credibility and influence of individuals and groups.

SWOT ANALYSIS OF HR DEPARTMENT:STRENGTH: The HR department makes its unique policies on the global level viewing the entire employees. They recruited the employee from the global level and work on their developments from the selection and interviewing them choose the best talent and develop them for the organizational need and to decorate their career.

WEAKNESS: P&G don’t set any academic GPA while selecting candidates and the process for the recruitment is too long, to recruit the final process, they take many tests and conduct two interview first in which they overlook to your personality academic record (document), and your experience while in second interview they ask in-depth questions.

OPPORTUNITY: P&G has the opportunity to expand their business in other countries in which it is not operating through this they can choose more talented and more ideas from the global.

THREAT: P&G competitor UNILEVER is performing better than this, so it can be a threat for the P&G that the most talented candidates are selected by the Unilever because it is paying more benefits and wages than the P&G.

UNIQUE POINT:The special point that is different in the HR department of P&G is that they focus on the employee development since they recruit the employee. P&G’s HR department works on the large scale to make the business operations efficient and effective.

P&G follow the leadership development in business strategy. P&G starts its training from the selection process they follow the within strategy, that’s

meanwhile recruited they made the strategy what kind of development and training he need.

P&G chooses best diverse talent from the global develop them by giving responsibility and challenging task and assignment to judge and develop them.

P&G influence the scale of our organization structure to provide chances for leaders to develop by increasing their breadth of experience and depth of expertise, across groups, country, functions and markets.

P&G is using end to end integrated people, a proven approach to develop employees through experience on the job training and coaching.

P&G chose expect managers not just to build the business, but also creates leader at every pace. They choose the mentor and coach on every single activity as the more ideas can be integrated in the shape of best one best idea.

P&G is operating his operation on the global level so they nurture a culture that raises employee development, while allowing employees to be responsible for their own repeated learning and personal growth.

Orientation at Proctor and Gamble:At Proctor and Gamble, there are two types of orientation takes place that are as follow.

1. Work unit Orientation2. Organizational orientation

In Work unit orientation the employees know about the goals of the work unit in which they are going to perform their duties. The orientation also explains the employees that how their work, duties and performance will contribute to the organizational goals. The employees are also given the information about their co-workers so that they can make their mind how to manage with that co-worker. For example, I got a job at P&G and its orientation day, I will know about my work and duties and then I would know about my co-worker and then I will think that my co-worker is very arrogant so I have to manage him or her like an arrogant person is managed.In organizational orientation employees are informed about the organization’s goals, objectives, philosophy, rules and procedures. Organization orientation also informed the employees about

Human Resource policies like work hours, payroll procedure, extra work requirements and other benefits including fringe benefits and a trip for the employees.

BENEFITS OF EMPLOYEE ORIENTATION:Orientation program is very beneficial and important for every company, their employees and also for the top management.

New employees when enter in the organization they feel stress and are uncomfortable in working. They think that now they would have been given more tasks because they are new to the organization. The orientation gives them the confidence and in the orientation they become familiarize with the people and the environment of the organization.

Before starting the work at any company every employee have some questions like who will be their supervisor? What are the goals and objectives of the company? Etc. Orientation also provide these answers without asking and this also facilitate the middle management in this way that they wouldn’t have to take worry because the information has been delivered to the employees.

The company which are in manufacturing sector, they also give the precautions to the employees so that they can work more efficiently and effectively. By doing this, the company also tells them about what could be the impact if they didn’t follow the precautions

In orientation program the employees also knew about the vacations, payroll, and increment in payroll, insurance benefits, retirement plan and many more things related to them.

Orientation programme promotes the team work and tells the employees that they have to work often in teams.

The employees got committed to the company if the orientation programme is effectively delivered.

P&G and Its Employees:P&G is a company that works by keeping in consideration some values like; Integrity, Leadership, ownership, Passion for wining and Trust. P&G knows it cannot achieve these values without realizing and utilizing its strength, which are its employees. Employees are integral part of P&G. Among the value of P&G three values (Leadership, ownership and trust) are directly related to its employees. Without achieving these values P&G would not be able to pursue its long term goals. So, P&G is making its employees to find the path to its long term goals. One way to do this is training. P&G train its employees so that by working according to these values they should achieve the Goals and have some sense of responsibility.

TRAININGS IN P&G:Training makes employees feel the importance and sense of ownership in the company. P&G is concerned about employees so it's organized formal as well as informal training for employees.

At P&G they use 70:20:10 model of training that is described below:

70:20:10 MODEL:

This model states that people learn about job required tasks by trainings in a proportion that, 70% is done by job experience, 20% from relationship with others, and 10% from other training material. So most of the trainings are designed by keeping this model in considerations and approaches are linked with this model.

P&G conducts 92 training programs per year for local employees to offer their employees to get additional exposure to various parts of business by taking advantage from company’s promote-from-within approaches. Some general training that is being conducted in P&G are described below:

1) LEADERSHIP DEVELOPMENT TRAINING:P&G is trying to create diversity in the organization, because P&G believe in philosophy that” Diversity is the second name of creativity”. It is a training through which P&G’s employees are taught to think diverse as well as to maintain and develop relations with the people who belong to different cultures. In this training employees are not taught by any coach, but they automatically gain insights and goals of this training are achieved. It helps employees stay well interconnected.

Employees in P&G are trained by using technology and IT equipment; they are trained in gaining job insights, developing team building skills, to learn about IT equipment, and to have understanding about company’s goals. P&G’s philosophy is:

Leadership in P&G:

Leaders set the direction for employees, so that employees using their talents and competencies do the job in a right way. P&G has done it in a very impressive way that is the reason that P&G is ranked on first among Best companies for leadership by chief executive magazines. P&G is receiving this award third time in a row due to maintaining good leadership over employees and due to struggles that it has done for improving employees skills by formal and informal trainings.

P&G is providing training to its employees, not only to improve their skills and capabilities but also to provide them job insights and understanding of company’s goals.

2) TRAINING FOR SUPPLIERS:P&G gave training to suppliers to ensure that they are protecting the information of company by understanding the requirements and take it as their personal responsibilities. Each supplier designed their own training course for their employees. The employee training course makes sure that every employee is well- informed and trained them on annually basis, so that all supplier employees must have information and skill to protect P&G information.

3) TRAINING FOR NEGOTIATION SKILLS:To improve the negotiation skills of their employees they gave training with the help of CBI (consensus Building Institute). In 2000 March the sales of P&G were declining because employees are facing challenges in agreements with suppliers or sales partners. So P&G realize that after research and development that there is the main problem with negotiation. After realizing, company starts to give training to their employees, which increase their negotiation capacity.

4) FINANCE TEAM TRAINING;P&G provide trained employees perform extraordinary in financial analysis and to create financial professionals within its own corporate culture. P&G Global finance manager says training is necessary to increase or polish the skills which are satisfying the

uniqueness of the company. By providing the training it is easy for P&G Company to move a person in any finance job role whenever there is need of job rotation.

5) P&G DRIVER TRAINING:At P&G drivers are trained about LGV/ HGV driving courses. They had made a team of drivers whether these are being trained for new career or due to the company’s requirement. The aim is to make trainees a professional driver. Trainees are guided on every step and are also told about safety and security rule of driving.

6) P&G TECHNICAL TRAINING:This training is for P&G technical staff and it offers research training for the development of fundamental knowledge on biotechnology material of basic chemicals in detergent. P&G is a pioneer in developing new technologies and innovations in consumer product categories that improve the health and well-being of consumers worldwide, through the application of leading edge science and technology and a deep understanding of consumer needs.

7) FOOD SAFETY TRAINING:P&G also arranges food safety programs and trainings for employees. Experts are appointed from HACCP training. HACCP stands for hazard analysis and critical control points. This is a preventative food safety system in which every step, manufacturing, storing, and distributing food product is analyzed for microbiological chemical hazards.

BASIC PURPOSES OF CONDUCTING TRAININGS: Learn job required skills: Training is done to teach employees about the skills

that are required for any job. P&G conduct training to match employee’s specifications with the job requirement along with their long term planning.

Career development : Career Development is the lifelong process of managing learning, work, leisure, and transitions in order to move toward a personally determined and evolving preferred future. P&G is enabling employees to get to know, and improve their skills for personal as well as for company’s development. P&G sets some standards for the employees and these are trained to achieve those standards by improving existing and new skills, behavior, attitude, knowledge and understandings.

To ensure that Personal Values match with organizational culture: As employees come from different cities. They have different background and culture. Even P&G appreciates diversity within company. That is the reason that P&G is operating in over 80 countries and managing it very proper, so employees

are trained and told about different cultures. So that there would not be any biasness or discrimination among employees. In such trainings organizational goals and values are told very clearly.

To reduce cost of hiring: P&G prefers to maintain existing employees than hiring new one. Because high turnover of employees does not depict a good cultural image of business. When employees get understanding of the company’s culture, values. So P&G believes that it’s better to keep them and train them for new skills required for the job, rather than laying off them and hiring new employees. It would be costly to arrange orientations and new employee will take time to understand the culture of company.

Succession planning: it helps employees to be eligible for changing roles in the organization. To get settled in the organization and also for transferring the culture to new generation employees onwards. Because culture is the identity of the organization.

TRAINING METHODS INBasically, there are two approaches for training and development.1) On-the-job-approach2) Off-the-job-approach

1) ON THE JOB APPROACH:Under this approach employees are trained in the spot while working Trainers consciously train employees on the job or employees observe their work and get trained. This method is less costly because training is provided on the job, in same working conditions, on the same machines that they have to use. In on the job training some of the commonly used methods that P&G uses are:Job Instruction Training:

P&G mostly use this method of training, because it saves time. Without such training employees would run here and there to help that means late work hours and uncompleted projects. For P&G employees are core strength so every new employees is trained and told about work and company. Job instruction training is provided by following procedure:a) Trainees are prepared by having an overview of the job for which they are hired. In this step training purpose is told along with desired results.

b) In this step, trainers note the trainee’s skills and capabilities they possess. Jobs requirements are told to trainees to make them realize the training needs.c) Trainers provide trainees a room to recognize their potential by explaining jobs in detail and consequences of well done work.d) This step is known as follow up. Trainees get feedback and help from trainers. And some learning material or instructions are given to trainees.

Job rotations:

Boredom is a state or condition of being dissatisfied of one’s current conditions or work. P&G realizes that when employees lack interests, boredom increases. So they used job rotation technique to train employees. In this technique trainees are given different activities and tasks of various structures and departments in a sequence over the period, to prevent boredom. Because, as boredom decreases, interest increases so as a result goals would be achieved. There are three purposes for which job rotation is being used in P&G:1) To make a person well informed about different jobs:As, people get information about different jobs. They become aware about each and every task or activity that may help to pursue P&G’s long term goals. Or that may deviate from achieving those goals.2) To alleviate boredomBecause boredom creates inefficiency in work that means longer working hours. So job rotation helps top alleviate boredom, so that work could be done efficiently.3) To develop rapport: employees are intended to be in harmony or sympathetic relation with each other so that they know and learn from each other.

Coaching:

P&G appoint peoples as coach to train the trainee, so that his performance gets improved. Mostly it is a conversation based session. In P&G, learners are asked to hire a coach, with whom they may feel comfortable.

Coaches teach to improve skills, abilities and boost performance of the workers. They are told about the step and sequence of tasks in the job. They get a detailed understanding about goals and objectives. Coaches teach individuals in a way so that there would be a balance between fulfilling organizational goals and while keeping consideration of personal development needs of employees. P&G Pakistan’ pacing line manager Mr. Zohaib Arif Malik said,

“Almost every individual is trained by coach in P&G to help them in their work.”

P&G uses this approach in four specific time:

When employees have learned new skills so, coaching helps them to apply that skill.

When helping the employees have consequences of much better performance. When an employee realizes that something is needed to change is any task, but

they don’t what is it. When a team member brings a problem to manage. That creates hindrances in his

work.

2) OFF THE JOB APPROACH:Sometimes while teaching the employees, there occurs the risk of disturbance in actual job, so sometimes off the job approach is used. Employees are trained at a place where

there is the same environment as an actual job. Employees get trained there and then work on actual jobs.

Action Learning:

This is a training that is especially used to improve employee’s decision making skills. Employees are given the problems and asked to solve problems within a time period. They are kept under monitoring, but are encouraged to apply any solution that comes into their mind. This is not done on a job so there are less chances of any loss, and employees get confidence on their decision. This ultimately results in greater efficiency for P&G.

Seminars

This is mostly used training in P&G. It is used at the start of each training method. Trainees are prepared and told the importance of training. Trainees are motivated and a lecturer is appointed. P&G appoints inspirational lecturers that can grab attention of trainees so that trainees can learn more because this is a verbal based training. So main focus is lecturer should be motivational enough to make trainees learn more. Seminar subject varies from teaching about interpersonal, information technology, or technical topics to specific field related topics like marketing, sales, and financing.

This training is done in training centers of P&G or in outside training programs.

Web Based Training

This is an internet based training or we can say virtual learning training. Web conference, web seminars or video learning is done in this web based trainings, employees are gathered and sessions are conducted to make them know about skills or methods for doing a job, employees are told about the organization’s policies and other information is

delivered in this training. This is mostly done when lecturer or trainer is far away and can’t come to P&G training centers. So web trainings are arranged.

PERFORMANCE MANAGEMENT:P&G measure performance after training by evaluating the employee performance so they can achieve the objectives. It is based on MBR (management by results) which is also known as management by objectives (MBO). In MBO employees and management agree on what they need to achieve organizational goal. After training meetings were held, objectives were set; afterwards framework was formulated, so when it comes for performance, then employers evaluate their performance with respect to that framework. It led them towards an alternate course of action that whether employees met the set criterion or not? When implemented all these things properly, employee’s performance finally evaluated on the basis of their share in overall productivity of the firm. These all things help top-management in keeping check-and-balance of performance of workers. On the basis of which, P&G reward their employees; this includes increment in salary, bonuses, extra fringe benefits, and performance appraisals through other financial rewards as well.

All these training and development contribute in long-term strategic planning, which is very much crucial for the survival of employees, if done properly; it helps P&G to enhance its performance by providing guidelines to its employees. This also includes departmental goals, after which the goals of the program etc. Strategic planning is usually for a longer period of time, but it sometimes takes tactical planning in its account. This procedure lets company to earn margins; because strategic planning if met properly leads an organization to get fulfilled its purpose of existence.

The P&G uses Forced Distribution method in which they collect feedback by using 360-degree feedback method. The company use Forced Distribution method for carrier development or succession and also for managing compensation. P&G measure the contribution of each employee relative to other job level according to following policies:

Give reward on performance To support the business Reward competitively

In this method the percentage is divided into several performance categories. Each portion of category is not same. In Procter and Gamble the 5% is for the top, 90% for middle and 5% for bottom. According to this method employees are rated against the

each category. This method is more intolerant as compared to other methods of performance appraisal .In Forced Distribution Method the top 5% got the “A” ranking and in the 90% got “B” rank while remaining 5% come in “C” ranking which means need improvement.

CAREER DEVELOPMENT AT P&GEvery person wants to build the career where he/she work within the organization either in the form of incentives and promotion, because they want to enhance their abilities for other works also but some organization ignore their internal skill and the employees sometimes leave that organization or are fired by company.

In P&G career development is different and better from other companies for employees, when P&G wants to hire someone than their career starts from the first day of his/her joining because company believe “that employees are the leaders for today and tomorrow”. P&G Company will hire the best employees and then they share with them organizational values and purpose to accomplish the company’s objectives and they will become the leader of today and tomorrow. Company believes that “The best brand starts with the best team” it means that a group of talented employees can do the best for the brand and achieving the company’s purpose and also for them in the future time.

The P&G company gives different challenges to their employees because in different situation, how he/she accomplish the task in this task employees can show his/her hidden skills for performing the task. The Company also route its employees to different culture and country to learn from other cultures that he/she may get aware of the entire surrounding environment. Actually, they do all the things for the career development of their employees for the future of them and company.

The company has strong point is that they never stop for learning it means they want to develop their employees for this global competitive world that in future the employees become the leader of this world for their company.

HR CONTRIBUTION Leadership and responsibility starts from the first day Everyday work is challenging and innovative Career development and best training system Team building effectiveness and solid interpersonal skills

The human resource department of P&G Company is very strong because all the achievement that company gets is through its HR policies because they hire the best and also build the career of their employees that they can perform well in the competitive world. The human resource department of P&G Company goes for more recruiting, but they train their existing employees for new skills and processes at every stage. They also look after the employees either they are working well or not and also see the manager’s work that he/she appraise the subordinate’s efforts or not because appraisal encourage employees and for P&G employees comes first.

ConclusionP&G is a company that deals with the people. It produces consumer products.P&G’s philosophy is that today’s happy employees are tomorrow’s leaders. P&G always work for employees career building. It has initiated almost 92 training programs for employees career development. Employees are trained not only for hard but also soft skills in these trainings. P&G appoints trainers and employees are themselves asked and supervised, to know what type of trainings they need. P&G is fourth time awarded as best company for producing leaders by chief executive leaders magazines. P&G has always been concerned for employee’s ethical values development. Performance management is the main purpose of these trainings. P&G evaluate these trainings by using forced distribution method and 360 feedback to measure the results as well as to know the deficiencies. So, employees feel proud to be part of companies like P&G.

References uki.experiencepg.com/home/pg_leadership_academy.html http://www.honey.com/honey-industry/honey-testing-and-regulations/haccp-

definition-and-procedures/ https://www.pg.com/en_PK/ https://twitter.com/proctergamble http://www.pg.com/vn/careers/

training_development.shtml