1. Human Resource Management Report

2. ACKNOWLEDGEMENTS
We are highly thankful to Almighty ALLAH who enabled us to complete this project
successfully. We are very obliged to Sir Aftab Ahmed, who has been very encouraging
throughout the course and shared her valuable wisdom with us. Along with it we would
also like to mention the following individuals,
• Mr. Omer Imtiaz (Associate, Human Resource Manager P&G)
• Mr. Sheeraz Siddiqui ( Assistant, Human Resource Manager P&G)
2

3. 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 and
value.Key values are Integrity, Ownership, Passion for Winning, Trust and Leadership.
2
Our company has one of the largest and strongest portfolios of trusted brands, including
Pampers, 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 countries
worldwide. Major function of human resource department at proctor and gamble are
maximizing human capabilities, maximizing organizational excellence, maximizing
engaging, talent supply management and external relation development. P&G prefers to
hire employees through its internship programs. The procedure for hiring internees is CV
assessment, written test, screening interview, panel/comprehensive interview, an offer
letter and finally medical examination, 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.
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. 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.
P&G has a unique human resource management system where it focuses on bringing out
the best of its employees through continuous hard work and devotion.
1
www.pg.com
2
3

4. Table of Contents
ACKNOWLEDGEMENTS.................................................................................................2
Table of Contents.................................................................................................................4
1. INTRODUCTION...........................................................................................................6
1.1History.........................................................................................................................6
1.2Purpose, Values and Principles...................................................................................6
..........................................................................................................................................7
1.3 Global Operations......................................................................................................7
1.4 Products......................................................................................................................7
1.5 P&G Pakistan.............................................................................................................7
3. Company Cultures...........................................................................................................8
4. Human Resource Department..........................................................................................8
5. RECRUITMENT AND SELECTION.............................................................................9
5.1 Functions....................................................................................................................9
5.1.1 Job Structing & Definition......................................................................................9
5.1.2 Job Description.......................................................................................................9
5.1.3 Job Specifications.................................................................................................10
........................................................................................................................................10
5.1.4 Job Standards........................................................................................................10
5.2 Selection...................................................................................................................10
........................................................................................................................................12
5.3 Selection Process.....................................................................................................12
5.4 Major Intakes Internship programs..........................................................................12
5.5 Retaining Employees...............................................................................................12
5.6 Types of Selection Devices......................................................................................12
5.7 Sources of Applicants..............................................................................................13
5. 7.1 Internal Sources...................................................................................................13
5.7.2 Job Rotation..........................................................................................................13
5.8 External Recruiting Channels:.................................................................................13
5.8.1 Walk-ins................................................................................................................13
5.8.2 Internships.............................................................................................................14
6. ORIENTATION............................................................................................................14
7. EMPLOYEE TRAINING..............................................................................................15
7.1 Training and Development Approaches..................................................................16
7.1.2 On the job Approach.............................................................................................16
7.1.2.1 Job Instruction Training:....................................................................................16
7.1.2.2 Job Rotation.......................................................................................................16
7.1.2.3 Coaching............................................................................................................17
4

5. 7.1.3 Off-the-job-approach............................................................................................17
7.1.3.1 Warehouse Training...........................................................................................17
7.1.3.2 Action Learning.................................................................................................17
8. PERFORMANCE MANAGEMENT............................................................................18
9. CAREER DEVELOPMENT.........................................................................................19
10. SWOT P&G Human Resource Department ...............................................................19
11. Conclusion...................................................................................................................21
BIBLIOGRAPHY..............................................................................................................22
APPENDIX........................................................................................................................23
5

6. 1. INTRODUCTION
1.1 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 and
value.
The power of P&G's Purpose is the one factor, above all others, that has contributed to
the Company's long heritage of growth. It is an essential part of who we are, who we
have been and who we will be for generations to come.
1.2 Purpose, Values and Principles
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
• Ownership
• Passion for Winning
• Trust
• Leadership
6

7. 1.3 Global Operations
The P&G community consists of over 138,000 employees working in over 80 countries
worldwide. What began as a small, family-operated soap and candle company now
provides products and services of superior quality and value to consumers in over 180
countries.
1.4 Products
Our company has one of the largest and strongest portfolios of trusted brands, including
Pampers, Tide, Ariel, Always, Pantene, Bounty, Pringles, Charmin, Downy, Iams, Crest,
Actonel and Olay.
1.5 P&G Pakistan
Procter & Gamble commenced operations in Pakistan 1991. There goal is to become the
finest global consumer goods company operating in Pakistan’s dynamic and promising
market.
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 over
4000 jobs indirectly.
In recent past P&G have invested $ 40 million towards building new fabric and home
care plant in Port Qasim Sindh.
7

8. 3. Company Cultures
Diversity makes our world unique. It’s our style of communication, our own special
‘take’ on the world around us. To us, diversity covers a broad range of personal
attributes and characteristics, such as race, sex, age, cultural heritage, personal
background, and sexual orientation. By sharing our unique selves, our knowledge and
expertise, and by continually stretching our wings to embrace something new, something
unfamiliar, we color our world
and bring it to life.
4. Human Resource Department
The HR department (HRD) at P&G is a strategic function. The department helps form
and implements strategies. The HR function at P&G is not traditional support function
but a strategic function. HR sits at the table while making policies, procedures, goals, and
strategies. The HR activities are different from the traditional activities for example P&G
HR does not take care of the compensation and salaries. The payment of salaries is taken
care by the Purchasing department. HR here is a change and development agent and not
the Police of the organization. Its functions are very different from the functions of the
traditional HR departments and are listed in the figure below:
8

9. 5. 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.
5.1 Functions
5.1.1 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.
5.1.2 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
9

10. 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.
5.1.3 Job Specifications
Job specification describes the job demand on the employees as to what are the human
skills that are required for the different jobs. These requirements include experience,
training, education and the ability to meet physical and mental demands. Job specification
is summarized and known as a Benchmark at P&G. Benchmark is based upon different
positions. All the biota and resumes are weighed on this.
5.1.4 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.
5.2 Selection
Recruitment and Selection is performed very strategically at P&G. There are two broad
levels of employees at P&G:
a) A&Ts (assistant and technicians): These are people who sit for the Q&T test
b) 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.
P&G Recruitment and Selection Process
10

11. Organizational Goals and Strategy
CV ASSESSMENT
PST & Q&T TEST
Online Assessment for
Management Candidates
SCREENING INTERVIEW
PANEL/COMPREHENSIVE INTERVIEW
OFFER
MEDICAL EXAMINATION
11

12. 5.3 Selection Process
Selection steps at P&G:
1.Application
2.Assessment
3.Initial Interview
4.Final Interview
5.Your offer and your future
5.4 Major Intakes Internship programs
P&G prefers to hire employees through its internship programs. The procedure for hiring
internees is the same one as mentioned in the figure; however, they go through two
evaluations during their internship, that is, the mid-term evaluation and a final evaluation.
The mid-term evaluation deals with the strength and opportunities for the internees
whereas a final evaluation deals with the viability of hiring them.
Interesting Facts:
• P&G have no CGPA recruitment
• P&G Practices fast development
• P&G follows proactive approach to meet future HR Needs
• P&G at current level of recruitments are for at least 2 years later
• P&G HR & Brand makes them successful.
• P&G during current recession was able to recruit 50 new employees.
5.5 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.
5.6 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.
12

13. 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.
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 they
try their best to fill in any vacancies that crop up by first scanning their current employees
for the required qualifications and experience. According to the Human Resources
Manager they prefer to go internally because
• It is considerably less costly than external recruiting.
• A present employee is more likely to stay at P&G than an external candidate.
• The people already working for P&G are well aware of its culture and employee
demands and thus provides a better understanding for their work.
• The organizational policy of promoting from within enhances the employees’
morale, organizational commitment and job satisfaction.
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 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
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 sell
himself/herself to the organization. This method is very appreciated at P&G because it
13

14. too gives them the chance to hire fresh, vigilant, determined and confident work force for
entry-level jobs.
5.8.2 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.
6. ORIENTATION
There are two types of orientation take place at proctor and gamble.
1) Work unit orientation
2) Organization orientation
Work unit orientation familiarizes the employees with the goals of the work unit, clarifies
how his or her job contributes to the unit’s goals, and includes an introduction to his or
her co-worker.
Organization orientation informs the new employee about organization’s objectives,
history, philosophy, procedure and rules. This should include relevant human resource
policies and benefits such as work hours, pay procedure, overtime requirements, and
fringe benefits, in addition, a tour of the organization’s work facilitie
14

15. 7. EMPLOYEE TRAINING
It is an integral part of Procter and Gamble. They have an in house training program
where employees are trained not only regarding their technical or academic skills, but
also learn to enhance their interpersonal skills so that they can develop better
communication skills, work efficiently as team members and be prepared to face
challenging environments comfortably. Through these trainings, the employees also learn
to cope in different and diverse environments and develop practical skills so that they
could be at par with this ever changing and tough business environment.
Developmental training is also conducted here which helps an employee to improve his
or her work performance. The employees here are also trained regarding safety, health
and legal issues. So through these trainings they turn an employee into a leader.
They have lead teams in both offices which consists of all the best people from different
departments, these people are the best in business and they are assigned the task of
training the rest of the employees.
Procter and Gamble as being a multinational firm has operations in many different
countries of the world but they all are well interconnected. For instance if a plant at Cairo
does something new or applies a new strategy which is successful, people are sent from
here so as to learn them and apply it into their operations. So on job training takes place
continuously.
They also comprise of technology based training programs. Like they have a mentor
program on their website where employees can interact with each other, discuss issues
and find ways to help each other in times of need (Experiential exercises). Here people in
similar departments or on similar projects interact, share information, guide and find
solutions.
Annual functions are held regularly where employees of all levels interact and discuss
advance strategies and do planning for future. Team building exercises are also
conducted along with motivational workshops so that specific issues concerning
employees could be addressed and rectified.
Management trainees in this company are also trained through job rotation.
P&G offers a person immediate responsibility, challenge, personal and professional
development and the ability to touch someone’s life through his decisions and actions.
P&G is a company so varied in the scope of businesses, that they offer a totally different
type of career experience than their competition.
15

16. 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.
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 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.
7.1.2.1 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.
7.1.2.2 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
16

17. 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.
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 the
trainee 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 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.
7.1.3.1 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.
7.1.3.2 Action Learning
This type of training takes place at Procter and Gamble, at regular intervals to enhance
decision-making qualities in the employees. It benefits the employee to go ahead in his
career and also benefits the organization to gain from the employee’s increased potential
and experience. For example, Employees are given a problem and are said to find the best
possible solution in a certain time period. This practice benefits the employee on
decision-making skills, which ultimately result in the increased efficiency of the
organization.
17

18. 8. PERFORMANCE MANAGEMENT
Procter and Gamble has a pre set system to evaluate employee performances so as to
reach an objective human resource decision which is backed by documentation proof. It
is based on Management by Objective principle which focuses mainly on end results
achieved. Meetings are held quarterly arranged by subordinates. One to one meetings are
also held where objectives are delegated. Each employee is given a fair chance and in
these meetings all the issues or problems faced by every individual employee are
discussed and each one is provided with all the possible help and assurance.
Procter and Gamble has a very intense and serious appraisal system where performance is
rewarded. Everyone is accountable for his actions regardless of his job title. Employee
satisfaction is highly held in this firm.
18

19. 9. 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.
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
19

20. 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 advertise
Intakes only at fresh graduates are risky
20

21. 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 strategies
and room to grow in each strategic focus area, core strengths in the competencies that
matter most in the industry, and a unique organizational structure that leverages P&G
strengths.
Its HR department has evolved since the organization’s inception and it now empowers
employees 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 similar
problems faced by employees in different parts of the world.
Out of the three M’s i.e. Man, Money & Machine, probably the human dimension is of
the utmost importance. Hiring employees is not the sole objective rather the primary goal
is to devise a tool that can help the organization attract, maintain, retain and motivate
them enough to give their best to the organization. Recruitment & Selection is therefore
the first step towards success. Better the quality of the employees better the performance
of the company.
An organization’s ability to meet the recruitment & selection challenges provides an
opportunity to make significant contribution to the company. With better quality people
executing the company’s operations the HR department can create a competitive
advantage for the company.
In light of the research conducted by our team members we have concluded that P&G is
an extremely formal, organized, dedicated and quality conscious organization. It has very
formalized structure for the recruitment and selection of employees. The working
experience 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 out
the 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 the
interests of the company.
21

22. 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
22

23. APPENDIX
Visiting card
23