Human Resource Management Report

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)

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.

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www.pg.com

Table of Contents
ACKNOWLEDGEMENTS.................................................................................................2 Table of Contents.................................................................................................................4 1. INTRODUCTION...........................................................................................................5 3. Company Cultures...........................................................................................................7 4. Human Resource Department..........................................................................................7 5. RECRUITMENT AND SELECTION.............................................................................8 6. ORIENTATION............................................................................................................13 7. EMPLOYEE TRAINING..............................................................................................14 8. PERFORMANCE MANAGEMENT............................................................................17 9. CAREER DEVELOPMENT.........................................................................................18 10. SWOT P&G Human Resource Department ...............................................................18 11. Conclusion...................................................................................................................20 BIBLIOGRAPHY..............................................................................................................21 APPENDIX........................................................................................................................22

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 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.

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

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.

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 Pakistans 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.

3. Company Cultures
Diversity makes our world unique. Its 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:

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 8

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

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Organizational Goals and Strategy

CV ASSESSMENT

PST & Q&T TEST

SCREENING INTERVIEW

Online Assessment for Management Candidates

PANEL/COMPREHENSIVE INTERVIEW

OFFER

MEDICAL EXAMINATION

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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. 11

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 writeins. 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

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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 units goals, and includes an introduction to his or her 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, and fringe 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 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 someones 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.

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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 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 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 organizations 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

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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 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 employees 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.

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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.

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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

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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 advertise Intakes 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 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 organizations 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 Ms 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 organizations ability to meet the recruitment & selection challenges provides an opportunity to make significant contribution to the company. With better quality people executing the companys 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.

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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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APPENDIX
Visiting card

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