U09a1 human resources final- hathorn,frederic

BUS3040 u09a1 Assignment 1

Frederic Hathorn
BUS3040 Section, Spring, 2012
U09a1Human Resources Final ProjectAssignment

Introduction

Good Human Resource Management is essential to developing, retaining, and continuing to

secure a high overall level of performance within the Proctor & Gamble organization.

Recognizing that education, training, and lifelong learning are the contributing factors to

personal development, Proctor & Gamble understands that the path to long term success is

forged through the efforts, talents and skills of its global workforce. This organization that put

emphasis on development and training are cognizant of this and will invest all its efforts and

other resources in improving the performance of the employees as well as bringing out the

abilities and skills of each and every individual to create a well established team (Armstrong,

2000, p.1).

Recruiting and Selection
Social media and Social networking is simply the communication choice for now and in the

future. The online Social networking phenomenon have pervaded business to the point that

employee development and collaboration depends on how Employers such as “Procter and

Gamble” embrace the technology (Frauenheim, 2007). Procter & Gamble is quickly becoming a

leader in social media. In this digital age, with media platforms such as Facebook, Twitter, and

LinkedIn, Procter & Gamble finds that the return on investment of advertising and recruitment,

when properly designed and implemented, can be much more efficient and profitable. Because of

the economy‟s downfall in recent years, reality appears to have finally arrived at Procter &

Gamble, the world‟s largest marketer, whose $10 billion dollar annual ad budget has hurt the

company‟s margins. Procter & Gamble‟s Brand management continues to be legendary is my


opinion, and even the recruitment processes follow a formulaic approach. Procter & Gamble has

developed a list of six “What counts‟ factors for would-be managers, such as thinking and

problem solving skills, leadership skills, creativity, and interpersonal skills. Procter & Gamble‟s

recruiting is complex and challenging that necessitates their diverse evaluation criteria. I‟m

going to examine the hiring process to show how stringent and complex Procter & Gamble‟s

recruiting methods are with the inclusion of strict screening of a potential applicant. Traditionally

Procter & Gamble recruits in October and November via the Career Center, but does have a

Facebook site to receive recruitment event updates and information throughout the year. These

updates include Leadership Experience and Mentor program details. Proctor and Gamble

recruitment attempts to assess applicants‟ capabilities they call “Success Drivers:” Power of

minds, Power of Agility and Power of People. The company leverages behavioral based

interviews to understand your personal experiences and dissect your strengths and opportunities

across all success drivers. The process begins with an online questionnaire that‟s based on the

position you are applying for. Then you will be asked to complete a 20 to 30 minute online

questionnaire. This questionnaire will be use to determine which candidates to invite to the next

stage of the process. The questionnaire is composed of two parts…

1. Success Drivers Assessment

2. Reasoning Screen

Upon successfully completing the online questionnaire, you will be invited to complete the

Procter and Gamble Global Reasoning Test at an office location. After the testing stages of the

Procter & Gamble assessments, you‟ll be invited to an interview. Most interviews last 45-60

minutes and this typically involves up to two senior leaders from the department you are

applying for. Procter & Gamble was recognized for its comprehensive affirmative action


programs for diversity in the company‟s executive development programs before affirmative

action was abolished in the 1990‟s, according to the labor department. 40% of new management

hires have been women and 26% have been minorities. The number of minorities at the associate

department head level had tripled and the number of women at the department head had doubled

(Hispanic Times Magazine, 1994). Procter & Gamble opened a new packaging customization

facility on the east coast in the Auburn, Maine plant. This new Flexi Center facility will offer

local employment opportunities for individuals with physical and developmental challenges, as

well as disabled veterans. These new hires will account for at least 30% percent of the facility‟s

workforce (PR Newswire U.S., 2011). Even though Procter & Gamble prefers the home grown

talent within the state of Ohio and campus of the University of Cincinnati, if applicants can

overcome the rigorous and demanding recruitment process, it can be a great company to be

employed by.

Recommended HR Strategy Improvements to Senior Management

It‟s been demonstrated that social networking holds great promise in the recruitment of skilled

talented prospects. Procter & Gamble…for the sake of future growth believes recruitment is a

valued-added process. Implementing strategies to deal with advancements and trends in the

recruitment process is pivotal when managing recruitment and the selection of applicants.

Traditional corporate recruiting has stressed conventional recruiting sources, and these days the

internet plays an enormous part in big business recruitment. In addition to Facebook, Twitter,

LinkedIn, and MySpace, corporations rely also on Monster.com and Hotjobs.com to seek out


talent. People excellence is about ensuring that strategies are in place, providing the support is

there so that employees of Procter & Gamble can do their job properly. Procter & Gamble are

responsible for looking at the overall health of its organization and recruitment processes to

ensure maximum performance. Organizations like Procter & Gamble have effective hiring

practices and a diverse workforce that generally will benefit from a better image of today‟s

marketplace.

Training and Development

Procter & Gamble recruits and develops its Employees and trainees against core competencies

called “Success Drivers”. Before there is training, there are certain characteristics Procter &

Gamble looks for in an Employee. The success drivers are distilled into there basic ideas:

1.) The power of PG&E minds (centers on curiosity and innovation).

2.) The power of PG&E people(concerns Employees ability to discover and make use of
Of the difference)

3.) The Power of agility (deals with people‟s ability to meet change head-on

Procter & Gamble training consists of both functional and business-developmental

training. Employees are given on average six hours of training per year, including formal

training, on-the-job training, and coaching from leadership, innovation, collaboration,

capacity, solutions, and Risk-Taking “Rapid Learn”. Rapid learn is an online learning

tool that gives employees access to the training calendar and course catalog of courses

available. Employees have worldwide access to more than 500 online courses from their


computer. Authors Downs & Perry showed how learning strategies can be improved.

(Downs, 1985), argued that the powerful media of interactive computers and videos

enable people to meet their own learning needs when and where they wish to do it and at

their own pace; Software must be designed to impart and check facts in addition to

matching the ways of learning and prior knowledge of individuals. PG&E makes certain

that every employee follows a personally tailored training program that meets the needs

of the individuals, Business, and overall mission statement. By combining measurement

expertise, on-demand evaluation software, and integrated analytics solutions with

benchmarking, Proctor & Gamble will gain the insight on how to best develop their

workforce.


Using selected workplace safety, productivity etc… into a reporting strategy can help

demonstrate where training has increased revenue or decreased costs. The use of training score

cards is a powerful tool to manage interdependent activities and performance if it has the

capability to provide us with supporting data so that training professionals can identity how cost

and performance results contribute to a training program‟s score. Evaluating the effectiveness of

training can be done through methods or initiated programs. Bruwelheide & Duncan (1985)

described two methods that can be used together for evaluating training results in terms of

observable changes in trainee behavior. The two methods are self-report behavioral checklists

and analogue testing. Trainees observe a prerecorded dramatized interaction between two actors.


At a critical moment in the interaction, the presentation is stopped or halted and the trainees are

asked to carry the interaction forward by writing on an answer sheet a response that would

complete the interaction. Stop-action video taping and role playing would be an effective training

strategy that more organizations should implement.

Performance Management

Procter & Gamble‟s performance management is effective when it‟s flexible, efficient,

measurable, fair, and transparent, providing better alignment of staff roles and goals with the

organization‟s mission. The company addresses the relationship of employees to the organization

through their growth and development while engaging and developing employees throughout the

year. Supervisors have to provide clear developmental feedback, which should include reviews

of past performance, goals, and focuses on future development opportunities.The accountability

factors are incorporated in the performance reviews that are available in all the levels of the

organization (Digh, 1998). Furthermore, the performance review of the employees is based on

the different factors like the ability of the employees to respect as well as to work in effective

manner with the diverse people (Digh, 1998).


Motivation is an important issue in any organization because it is involved in energizing or

initiating human behavior, directing and channeling that behavior and sustaining and maintaining

it (Steers & Porter1987). Some merit pay schemes may encourage poor work practices as

individual employees attempt to maximize their personal gains to the detriment of the entire

organization (Hickey & Ichter1997, p. 40). A reward and recognition process that focuses on


increasing intrinsic motivation can be a method of providing a committed, motivated workforce

which will provide services to the organization to improve its performance.

Employee Discipline
Procter and Gamble recognizes the power that comes from people of diverse backgrounds and

experiences coming together around a common goal. Our policy forbids any discrimination,

harassment or intimidation because of race, color, religion, gender, age, national origin,

citizenship, sexual orientation, gender identity and expression, disability or other non-job-related

personal characteristic. Employees are encouraged to bring questions or concerns in this area to

their management. Strict disciplinary action for violations of this policy will be taken, including

termination of employment. Procter and Gamble use employee urine & hair drug testing as a

condition for pre-employment, and is committed to having safe and healthy operations around

the workplace and world to protect the life and health of its employees and community

surrounding its operations. Procter & Gamble tries to create a positive desire of the employees to

attend work regularly. An effective attendance policy helps the business ensure employees can

accomplish the work purpose of attendance policy.Procter and Gamble uses disciplinary policies

to create a smooth running operation. Disciplinary actions must be firm enough to keep those

employed from conducting themselves in behavior wrongdoings. It also requires that Procter &

Gamble be consistent enough to follow through with a set action of discipline even if it could be

harmful to the organization. This keeps other employees from taking advantage of

inconsistencies that could result in law suits for unfairness. Employers who properly follows

disciplinary and termination procedures is more likely to avoid the risk of facing labor chargers

and costly lawsuits. (Zeineddine, 2010). Employers who practice discipline but choose not to


publish or communicate that practice may do so out of fear of legal claims being asserted based

on the policy.


Procter and Gamble uses disciplinary policies to create a smooth running operation. Disciplinary

actions must be firm enough to keep those employed from conducting themselves in behavior

wrongdoings. There have to be agreed ways of working that everyone subscribes to in an

organization, and disciplining an employee is an organizations way of declaring that correction

needs to occur and if the problem isn‟t corrected then there are consequences. Even though there

are policies in place through out the organization conducting discipline sessions with the

employee will increase the likelihood that the employee‟s behavior will cease and dramatically

improve. There are three forms of disciplinary action:

1. Written warning
2. Suspend an employee without pay
3. Dismiss the employee
My suggestions to minimize the disciplinary issues are first for the organization and managers to

have clear expectations. Everybody should know what‟s expected of them.

a. Listen and be aware of your employees and issues
b. Provide “Ways of Working” rules
c. Managers! Are you approachable?? Be approachable.
d. For those who transgress…Deal with indiscipline.
e. Lead by example, walk the walk and don‟t bend the rules!
f. Have a formal process to explain procedures
These are ways in my opinion organizations can build a meaningful annual review process thus

dealing with discipline.


Compensation and Benefits
To attract prominent job candidates, organizations must offer attractive benefits packages. The

objective of my assignment is to provide insights into the remuneration and benefits structure to

compare Procter and Gamble existing compensation package to other private and public

organizations, examining costs and efficiency. Most forms of monetary compensation are wages,

tips, and salaries. Some programs include merit-based programs, bonus-based, and

commissioned based programs. Compensation is usually provided as base pay and /or variable

pay. The new thing now is Broadbanding, which is an incentive based compensation which has

its advantages. Although compensation practice has lagged change in other areas of organization

design, compensation practice is finally beginning to change in fundamental ways (Lawler, 1990;

Schuster & Zingheim, 1992). Non-monetary compensation can be anything from free coffee to a

company picnic or discounted parking. Procter and Gamble offer benefits such as social security,

unemployment, and workers compensation. This Employer offers tax deferred benefits, such as

retirement accounts or section 125 flexible benefit plans. Procter & Gamble offers signing

bonuses for some employees; share-purchase plan for all employees; defined benefit pension

with employer contributions (up to .4% of salary). Tax incentives for certain types of benefits are

offered to employees. Employees and Employers can save taxes on the amount that the employee

defers. Offering benefits can help to increase retention among an organization‟s

employees.Benefits are increasingly expensive now for businesses to provide for employees, so

the ranges of options of benefits are changing rapidly through legislative bodies.



Benchmarks is a measuring tool that gathers ratings of a managers use of skills associated with

success in managing ( Human Resource Management, 2011).Procter and Gamble uses surveys in

reference to benchmark compensation levels to ensure that the pay levels determined by the

organization are not extraordinarily misaligned with market practice, pay not too low or too high.

It provides useful insights on compensation administration and pay delivery practice.

Labor Relations

While the practice of labor relations is governed by a fairly stable set of laws and regulations,

and its processes and activities are relatively common across Employers, Proctor and Gamble

labor relations processes and activities within the company are developed to clarify, manage,

reduce, and resolve conflicts between employees and their representatives, while accommodating

the various goals and missions of each. Proctor and Gamble is a large corporation so it has many

shareholders. Operations decisions are made by managers hired by the shareholders through their

elected board of directors.


An important goal for labor relations is for management to talk with employees one-on-one

about what interests the employee. This is the best way to build good relationships between a

manager and their team. People don‟t care how much you know, until they know how much you

care and Employers should take notice of this. An effective management technique is to say

goodbye to your employees as they leave work every night. When you say good night to people,

you will naturally say thank you, great job, well done, and provide other positive feedback to

your team as they leave. By developing a broad strategy to improve employee engagement will


assist in making labor relations more workplace friendly because employee respect can carry a

company a long way.

Global Environment

Proctor and Gamble are finding out that to survive in the global market they must cooperate with

organizations around the world. They must both defend their domestic markets from foreign

competitor and broaden their scope to encompass global markets. In order to reach the goal of

Proctor and Gamble, HRM must play an important role to run the business and make a good

business environment to create smooth effortless work and also compete with the others to gain a

competitive advantage by expansion to the global area/broaden, integration of cultures & values,

got and received the feedback from the consumers to develop the product and service, training

staff many time and encourage getting high competencies.


Proctor and Gamble needs to develop relationships with international HR counterparts to

encourage information exchange. P & G shouldhave the ability to express the relative worth of

human resource programs in terms of their bottom line contribution to the organization. Position

the human resource function as a strategic partner in global business, and implement formal

systems that improve world-wide communication. Lastly Design and implement an international

human resource information system.

Conclusion

Human Resource Management has to change in many ways to accommodate domestic and

global organizations abroad. The rate of change will likelyincrease quickly and public and


political expectations of service levels will continue to rise. Proctor and Gamble must

stillcontinue to attract talented people who will be committed, involved in their work, and willing

toachieve high levels of performance anddeliver excellent value for money. A quality workforce

will always aid in giving the company a competitive advantage with a well executed Human

Resource Management plan that reduces labor costs, because the bottom line in cost cutting to

provide a profit for the organization. Human Resource Planning helps the organization to tap

efficiently talents which will help to integrate both the individual and organizational goals. There

is so much tied into HRM and that‟s what makes it a vital and most important component in any

organization.

References

Adler, N. J., & Ghadar, F. (1990). Strategic human resource management: A Global Perspective

In Pieper, R. (ed.) Human Resource Management in International Comparison.

Armstrong, M. (2000). Performance management: Key Strategies and Practical Guidelines,

Kogan Page, p.1

Bruwelheide, L. R., & Duncan, P. K. (1985). A method for evaluating corporation training

Seminars. J. Organ. Behav. Manage. 7 (1//2): 65-94

Digh, P. (1998). The next challenge: Holding people accountable, HR Magazine.

Downs, S. (1985). Retraining for new skills. Ergonomics 28:1205-11

Downs, S., & Perry, P. (1984). Developing learning skills. J. Eur. Ind. Train. 8:21-26.

Frauenheim, E. (2007). Workforce management, 15475565, 10/22/2007, Vol. 86, Issue 18.

Hickey, M. & Ichter, J. 1997, „Promoting physician productivity through a variable


Compensation system‟, Healthcare Financial Management, vol. 51, no. 8, pp.38-40.

Lawler, E. E. (1990). Strategic pay. San Francisco: Jossey-Bass

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2011). Fundamentals of human
resource management (4th ed.). New York: McGraw-Hill Irwin.
Schuster, J. R. & Zingheim, P. K. (1992). The new pay. New York: Macmillan.
Steers, R. M. & Porter, L. W. 1987, Motivation and work behavior and performance, 4th edn,
Scott Foresman & Co.

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