2. INDE
X
• 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
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.
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!
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
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
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
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
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.
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
an NBA rookie named Michael Jordan and his increasing popularity
popularity took Nike’s sales to break new records. Soon Nike moved
moved in to designing apparel and other cross-training accessories.
accessories. They signed various international teams like the Brazil
Brazil football team, U.S. men’s and women’s soccer team. In 1996,
1996, again they signed up a rookie golfer Tiger Woods for a sum of
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
very well received worldwide. Today Nike is a vast empire which
which incorporates various sports like tennis, baseball, soccer,
cricket and athletics.
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.
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
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 bbusiness.
Bring knowledge, skills and experience to your business which are
intangible but are also priceless.
Create 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
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
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.
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
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
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.
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.