Human Resource Management of Nike

Contains Nike's history, there hrm services, training and development initiatives and techniques and performance apraisal ways.

1. M HUMAN RESOURCE MANAGEMENT R JURY ASSESMENT H SUBMITTED TO: Dr. Bhawana Maheshwari SUBMITTED BY: Anushka Singh Pragya Tiwari

2. INDEX Introduction Company profile History HRM Nike HRM Value of human resource policies What a good HR policy do? Recruitment Selection process Strong HR policies benefits HR Planning impact Interdependence of HR planning Training and development Performance management Future strategies Conclusion

3. INTRODUCTION

4. Nike, Inc. is an American multinational association that is involved in the design, development, manufacturing and worldwide marketing and sales of apparel, footwear, accessories, equipment and services. The company’s world headquarters are situated near Beaverton, Oregon, in the Portland metropolitan area (USA). It is a major producer of sports equipment and one of the world’s largest suppliers of athletic shoes and apparel. It employs more than 44,000 people worldwide and in 2014 the brand alone was valued as $19 billion (€17,5 billion), making it the most valuable brand between sports businesses. Founded by Bill Bowerman and Phil Knight on January 25 1964, as Blue Ribbon Sports, the company became officially Nike, Inc. on May 30 1971. The company was named after the Greek goddess of victory, Nike ( Νίκη). Apart from its own brand, Nike market its products under Nike Pro, Nike+, Nike Golf, Nike Blazers, Air Jordan, Air Max and other as well as subsidiaries including brands  Jordan, Hurley Int. and Converse.

5. COMPANY PROFILE

6. Blue Ribbon Sports Renamed Nike in 1978,after the Greek goddess of victory Key people of Nike : Bill Bowerman & Phil Knight Headquarters in Beaverton, Oregon , USA World’s most competitive sports and fitness company Nike employees over 26,000 people Current CEO : Mark Parker Nike is the U.S-based manufacturer of athletic shoes, apparel and sports equipment. Stock symbol: NKE (NYSE) Annual revenue (2008): more than $18billion Founders: Bill Bowerman, Philip Knight Year established: 1964 (as Blue Ribbon Sports) Industry: Sportswear/equipment HQ: Beaverton, Oregon President/CEO: Mark Parker Staff: 30,200 Products: shoes, apparel and sports equipment, accessories Slogan: Just Do It!

7. HISTORY

8. Nike [earlier Blue Ribbon Sports (RBS)] was founded in 1964 by Phil Knight and Bill Bowerman. Phil Knight was a middle distance runner hailing from Portland who trained under track and field coach Bill Bowerman. Bill Bowerman was looking for ways to enhance his student’s performance and tried improving their shoes in his free time. He tried many different combinations but they were not very successful. In the mean time his student Phil Knight went on to complete his MBA in Finance from Stanford University. There he wrote an assignment suggesting the manufacturing of shoes in Japan which would help retailers compete with the well established German brands. FOUNDERS: His suggestions fell on deaf years so he himself decided to import shoes from Japan and sell them in his local area. He tried to sell his initial stock of shoes to his previous coach Bowerman but he was interested to join him and so they decided to become equal partners.  Though the business started slow, by 1965 sales had reached an impressive $20,000. SUCCESS: As their business was established by now they tried to launch their own line of shoes.  After years of struggle, in 1971 they came up with lighter weight training shoes that had an outsole with waffle-type nubs for traction. They debuted their training shoes in the 1972 U.S. Track & Field Trials.

9. FIRST SHOE: Their first brand ambassador was Steve Prefontaine, who during his college career from 1969 to 1972 set seven American records from the 2,000m to the 10,000m. Soon they launched the Nike Air technology in 1979. This was able to further strengthen their status as a successful competitor to the competition that existed. The growth that Nike experienced was tremendous during this stage which lead them to go for Initial Public Offering by the end of 1980. Soon their brand had grown very popular with the fitness aficionados. And by 1982 they had become the No.1 supplier for athletic/training shoes in America. LOGO: Nike’s brand logo ‘Swoosh’ and tagline 'Just Do It' had become a commonly recognisable symbol in the American households. In 1985, they went on to design signature shoes for an NBA rookie named  Michael Jordan  and his increasing popularity took Nike’s sales to break new records. Soon Nike moved in to designing apparel and other cross-training accessories. They signed various international teams like the Brazil football team, U.S. men’s and women’s soccer team. In 1996, again they signed up a rookie golfer  Tiger Woods  for a sum of $5 million per year. And the rest as they say, is history. MILESTONES: Nike kept launching new editions of their landmark training shoes. They developed Nike Shox in 2000 which was very well received worldwide. Today Nike is a vast empire which incorporates various sports like tennis, baseball, soccer, cricket and athletics.

10. HRM

11. HR (Human Resources) can be defined in many ways but in the context of business, we can say that HR is the strategic and effective management of your most profitable resource: people. A strategy is a careful plan or method that is put in place to ensure success and maximum results! To be strategic, your HR policy must be aligned with your business strategy. So you need to understand your business objectives and consider the impact that these have on your employees.

12. HRM OF NIKE

13. On average for a long-term employee at Nike it is normal for them to go through 5 different positions before they find the perfect fit for someone
With over 56,000 employs the recruitment process need to be very rigorous and detailed
They recruit a lot from colleges
Internship program is a great way there retention rate is so high
Nike wants to send the message of don’t be afraid to venture out

14. HR PLANNING IMPACT HR Management- Integrating human resource management strategies and systems to achieve the overall mission, strategies, and success of the firm while meeting the needs of employees and other stake-holders. HR planning helps you successfully meet goals, assess skill sets, and keep up with social, economic, legislative, and technological trends that impact on HR in your area and in the sector. Links management directly to the strategic plan of your organization Nike routinely completes financial and workforce plans to ensure they achieve goals. Nike has a 3 step strategy that they have had implemented for about 3 years now: 1. Be Innovative to deliver enterprise level sustainability solutions 2. Integrate sustainability into the heart of the Nike business model 3. Mobilize key constituents (civil society employees, consumers, government) to partner in scaling solution For Human Resource Management in 3 years, 17% of Nike factories had completed HRM training

15. VALUE OF HUMAN RESOURCE The role of HR has traditionally been supportive, i.e. to carry out payroll and administration functions and to uphold positive employee relations. Nowadays, HR personnel have expanded their role to include: Legal compliance - ensuring the business meets legal requirements e.g. employment law, health and safety. Transaction activities - dealing with financial matters such as pay and benefits Transformation activities - introducing changes that make for a good working culture e.g. induction, training. Measurement - putting in place systems that show a tangible return on investing in people. The role of the HR is also to demonstrate to their business why their employees are the most profitable resource they have. For example, employees: Represent your b business. B ring knowledge, skills and experience to your business which are intangible but are also priceless. C reate customer satisfaction.

16. WHAT A GOOD HR POLICY DO? Minimize the costs associated with high employee turnover
Improve retention of skills, knowledge, motivation and morale, which in time impact productivity
Give employees job security and money in their pockets
Give employees opportunities – to learn new skills and gain more knowledge

17. RECURITMENT

18. Existing Nike employees can view job openings on the internal web and apply direct to the SSC resourcing centre electronically. Active recruiter then handles the application Process from receipt to job offer. The key stages in the Process are detailed below: A job request is received from the employing department and this is discussed with the central resourcing team. A job requisition is completed and approval sought if it involves a new position of additional headcount. Once finalized the job is posted on the system and applications are invited from internal and external candidates as appropriate. A shortlist is produced from the system, sent to the line manager The introduction of Active Recruiter into the business provides a number of avenues for people to apply for jobs at Nike External applicants can apply direct to the Nike internet site for specific jobs or for more general speculative job opportunities. Electronic links have been established with external web based recruitment organizations such as Monster board to provide further job postings opportunities to attract candidates to Nike More conventional resourcing processes are also used including newspaper advertising and Search organizations for more senior positions

19. SELECTION

20. The selection process should be: Transparent
Timely and cost effective
Equitable Free from conflict of interest

21. All recruitment will be based on agreed job descriptions and person specifications. Recruitment and selection must be conducted as an evidence-based process and candidates should be assessed against agreed selection criteria, based on relevant knowledge, skills, competencies, experience and qualifications to perform the role as outlined in the person specification. All decisions must be recorded.
Short listing must be undertaken by at least two individuals who are involved in the interviewing process. Interviews should normally be conducted by at least two people, and all interviews for one post must be conducted by the same people. In order to promote equality of opportunity selection committees should, wherever possible, be of mixed race and gender composition.
Any skills tests (e.g. Presentations) must be directly related to the role and measured against objective criteria, and presentations for one post must be assessed by the same persons. Candidates must be notified of the details of any skills test when they are invited for interview.
Interview questions must relate to the job requirements as exemplified in the person specification and the candidate’s suitability for the position. The person specification should be used as the basis for determining the interview questions. The choice of appointee will be determined by the majority view of the interviewers.

22. INITIATIVES

23. Strong human resource policies are critical to building an engaged workforce Strengthening human resources management
Strong human resource policies are critical to building an engaged workforce
Strong human resources policies and capable, qualified management are essential for all Nike suppliers to be compliant with the law and our Code Leadership Standards. Nike have developed guidance and tools they can use to improve Human Resources Management (HRM) in their factories.
Nike is supporting their suppliers in developing predictive, agile, resilient and integrated HRM capabilities. By investing in HR professionals, systems and processes their suppliers will be able to have the right people, with the right skills, in the right roles, who are engaged, empowered and invested in driving their business success.

24. Strong human resource policies are critical to building an engaged workforce They have teams in each of our regions with individuals dedicated to working with our suppliers to measure and develop their HRM capabilities. In the last several years, these engagements were often part of an integrated approach to Nike’s Lean Management Framework. Those activities included: Developing systems and processes to capture accurate data and conduct data analysis on HRM related qualitative and quantitative metrics
Assessing supplier management strengths and weaknesses and identifying opportunities for development
Providing coaching and consultation to strengthen supplier HRM systems, with a focus on how to attract, develop and engage their employees
Developing tools to measure worker engagement and identify areas of opportunity for investment We will continue to evolve our approach, partnering with organizations focused on developing relevant tools and services to support suppliers as they drive their strategies around workforce investment and management. For examples of how we are working to explore use of innovative HR tools, see our story on Worker Technology.

25. Interdependence of HR planning Nike's commitment to growing the potential of its people and building leadership capability is carried out in organization and talent reviews directly linked to the business strategic priorities. In these reviews, leaders are held accountable for improving the performance, potential, diversity, position continuity and cost of their bench. Nike’s supply chain is taking a lead on a new transformation. Working with contract manufacturers to apply lean manufacturing, an approach that delivers the highest-quality product while eliminating all types of waste, including lost time and material.
Nike’s approach to lean includes worker empowerment – giving factory workers the skills and abilities needed to manage production and immediately address issues as they arise, such as quality or process improvements.

26. Training and development In perspective, Nike employs more than 40,000 employees, who fit into the various categories of designing, marketing, distributions as well as logistics that manage and run the operations of the company around the world. Company’s culture in Nike has been pointed out as a key cornerstone in the training process of the company. Nike is a design company, and that extends to the way it thinks about talent development and learning. Just as the company partners with top athletes to build and promote the brand, Martin sought out top performers in the company to model learning programs. When Martin joined Nike in 2014 ,his team developed a new manager boot camp, which will be piloted this summer to help new leaders develop the core skills and behaviours needed to succeed. The program will include live and online training, simulations, workshops and ample time to practice in small groups. His team also rolled out a new upward feedback tool to help managers calibrate their performance, and to help the leadership team identify broad areas in need of improvement. It differs from a 360-degree feedback tool in that it focuses specifically on the behaviours the company wants to change. The boot camp and feedback tool demonstrates the power of working alongside employees to build a business and culture where people feel like their managers are invested, thereby unleashing their potential, Martin said. “The more you can show the power of working alongside employees the easier it is to show the business the value of what you do.”

27. Performance Management The performance management system at Nike ensures proper and timely fulfilment of the objectives embodied in the organizational plans, identifying the contribution of each employee in the performance of them. It also generates a constant communication between managers and employees to improve job performance of both. The objective of the performance management system at Nike is to provide an accurate and reliable way the employee carries out the job. Assessment systems must be directly related to the post and be practical and reliable. They need to have levels of measurement or completely verifiable standards.  The formal discipline policies of Nike focuses on the training of harassment and violence, because they believes that the implementation of an effective prevention plan will have much greater impact on reduction of workplace violence that focus on what steps will be taken after an incident happen. Employers that implement effective programs to address complaints, train employees on security issues, provide security adequate physical, reduce job stress, and promote the work team in a very supportive environment are most likely to see an increase in productivity and a reduction in incidents violent.

28. Performance Management To accelerate the execution of Nike’s retail strategy and build the capabilities critical for success, BTS created two fully customized experiential-based programs targeting Nike’s Head Coaches and District Managers. Two scenario-based solutions—one modelling a retail store for Head Coaches, the other a sales district for District Managers—defined the core of each one-day program. In each competitive business simulation, teams of employees were challenged to balance priorities, react to unexpected events, and make trade-offs as they executed their brand strategy and grew profitability in a simulated retail store or sales district. Through the high-impact program, teams of participants experienced first-hand the impact their decisions had on revenues, costs, consumer experience, employee capability, and contribution to the brand’s overall strategy.

29. Future strategies In order to stay competitive and remain a leader in the sports industry, Nike needs to consider what strategies they should undertake in the coming future. If they take the cost leadership approach by undercutting their competitors in this price sensitive market, they will most likely enter into price wars with each other. Moreover, this will mean that Nike will have to find ways to cut their costs, whether it is manufacturing costs, investments into R&D or marketing costs. This will lead to poorer quality products and less innovation, not only a loss to Nike but also for the consumers. In the end, none of these sports brands will benefit and Nike may face profit losses as well as harming its own image of being a good quality, reputable sports brand. Due to the highly competitive nature of the sports industry, Nike will only be able to maintain a dominator in this field if they continue to be differentiated from its competitors. If Nike merely launches a new line of sportswear, other sports brands will quickly follow and will not bring long-term growth for the company. For Nike to deliver sustainable growth in the long run, they should consider a break out strategy stepping into the food nutrition industry by taking advantage of Nike’s global networks and brand name. 

30. CONCLUSION

31. The human resource management of Nike is a strategic level activity that is carried out by the top-level management of the company. It is concerned with a technical and a strategic function. The technical function is about recruitment, selection, training of new workers, motivation of workers and the development of workers. This requires the use of a common body of knowledge and it is meant to attract and retain workers of an appropriately high standard and the monitoring of these workers to achieve productivity standard. Strategically, the HR unit of Nike will have to be proactive and it must transpose the strategic requirements and expectations of Nike to the HR context and ensure that the HR unit’s activity is in line with the company’s corporate standards. Nike’s HR unit also cooperates and works with other units of the company like marketing, IT, research and development and international business to achieve its main objectives and goals.

32. REFRENCES

33. https://studentshare.org/human-resources/1497127-nike-training-and-development https://www.wowessays.com/free-samples/free-human-resource-management-in-nike-research-paper-sample/ https://www.google.com/amp/s/www.forbes.com/sites/simonmainwaring/2019/07/23/purpose-at-work-how-nike-inspires-and-innovates-with-employees-and-consumers/amp/ https://www.google.com/amp/s/bstrategyhub.com/swot-analysis-of-nike-nike-swot-analysis/%3famp