PROCTER & GAMBLE GROUP NO – 8 Abhilash K Anu Mathew Athira Lal Nidhish Thampi Rosmin Thomas
Corporate Purpose, Value andPrinciples Purpose, Values and Principles represent the Corporate Culture. PURPOSE states the most fundamental reason why the organization exists. VALUES are the core concepts that define the character of the Company and its people PRINCIPLES are the guidance by which choices, decisions, and behaviors are determined.
Purpose, Values and Principles Purpose We will provide branded products and services of superior quality and value that improve the lives of the world‟s consumers Values: P&G People We attract and recruit the finest people in the world. We build our organization from within, promoting and rewarding people without regard to any difference unrelated to performance. We act on conviction our people will always be the most important asset.
Purpose, Values and Principles Principles We show respect for all individuals The interests of the Company and the individual are inseparable We are strategically focused on the work Innovation is the cornerstone of our success We are externally focused We value personal mastery We seek to be the best Mutual interdependency is a way of life
Purpose, Values and Principles Principles We show respect for all individuals We believe that all individuals can and want to contribute to their fullest potential. We value differences. We inspire and enable people to achieve high expectations, standards, and challenging goals. We are honest with people about their performance.
P&G in India Established in 1964. Serves over 650 million consumers across India. Beauty & Grooming segment The Household Care segment. Health & Well Being segment. Superior product propositions and technological innovations Committed to sustainable growth in India. Current investments in the country: Five plants over nine contract manufacturing sites, as well as through the 26,000 jobs it creates directly and indirectly.
Cont‟d Sustainability efforts focus on Environmental Protection as well as Social Responsibility to help develop the communities they operate in. Operates under three entities in India Two listed entities: Procter & Gamble Hygiene and Health Care Limited Gillette India Limited One 100% subsidiary of the parent company in the U.S: Procter & Gamble Home Products.
P&G India Timeline In 1979, RHL launched Vicks Action 500. In 1983, RHL established a world-class R&D centre for Herbal medicines at the Kalwe plant to probe into the ancient herbal medicines, evolve products suited to meet modern needs, continuously seek ways to improve the existing products and create new products. In October 1985, RHL became an affiliate of Procter & Gamble Company, USA.
Cont‟d In 1989, P&G India, launched Whisper; the breakthrough technology sanitary napkin which revolutionized the Indian feminine hygiene category. In 1991, P&G introduced „Ariel Micro System‟. In 1993, P&G USA entered into a Joint Venture With Godrej Soaps in India & was named Procter & Gamble Godrej(PGG) to leverage Godrej‟s scale & distribution in the Soaps category in India, however the JV for strategic business reason was dissolved in 1996.
Cont‟d In 1995, Procter & Gamble Home Products entered the Hair care Category with the launch of Pantene Pro-V. It also initiated the „Point Of Market Entry‟ program. The Direct to Consumer (DTC) or Direct Marketing (DM) program followed with the launch of Ariel in India, brought P&G brands closer to its consumers. In 1997, Procter & Gamble Home Products launched Head & Shoulders shampoo. In 2000, Procter & Gamble launched Tide. Tide became India‟s largest „Brand by Value‟ in the year 2003-04
Cont‟d Tide overtook Rin and became the mid-tier laundry leader in the year 2006 Tide surpassed Surf and turned out to be urban India‟s biggest brand in the year 2011 Tide became India‟s 1st 1000 crore brand in the year 2011. In 2003, P&G India got Best Employer Award from Hewitt. In 2004, P&G launched „Shiksha‟ in association with „CRY‟. The objective of the program was to educate underprivileged children. In 2005, Gillette – P&G merged and thus created „The World‟s Largest Consumer Products Conglomerate.
Cont‟d In 2006, P&G launched Pampers for it to be one of the most successful launches in the Indian FMCG history. Received unique distinction of being amongst the fastest brands to reach the milestone of $100MM no‟s in its 4th year since the launch. In 2007, P&G launched Olay with its premium Anti- Ageing line of products – „Olay Total Effects‟. Within 4 years of its launch in the anti-ageing category, P&G established itself as the market leader and helped the industry reach the170crores mark.
According to P.V. Morgan: IHRM is the interplay among 3 dimensions:1. HR Activities(Procure, Allocate, Utilise)2. Types of employees(HCN,PCN,TCN)3. Types of Countries(Host, Parent, Other)
HRM at P&G Human resources at P&G is considered as the utmost importance by being an integral part as one of the 3 pillars of P&G values. P&G has a global HRM structure rather than a local one. P&G has unique Human resource strategies e.g. “promote from within” philosophy which means that people are recruited at the entry level and then through strong training, development, continuous coaching and mentoring people are promoted within the company to the highest levels. Any company‟s performance is driven primarily by it‟s people and similarly for P&G‟s it‟s top or amongst the top performance has been driven by it‟s strong, highly capable people. P&G is often called as „company for leaders‟ due to ex-P&G people being CEO‟s of companies like Boeing, ebay, GE etc.
HR PLANNING The HR planning within P&G is done by the different departments and business units separately both for external and internal needs. In terms of P&G hiring culture it hires people from base level and then promote people from within therefore P&G has significant internal vacancies too other than external vacancies. P&G has a strong policy of job rotation where people work on assignments and then move onto next assignment or higher in their career enabling them to get diverse experience and grow skills and capabilities. The „job analysis‟ is based on the success drivers.
SUCCESS DRIVERSSet of competencies of P&G people, most unmatchable competitive strength.Nine specific behaviors organized under three basic ideas that describe the competitive advantage created by P&G People.Fundamental of all HR systems in P&G.PURPOSEVALUESPRINCIPLES
HIRING PROCESS During the entire hiring process, we‟re looking to see how you relate to, compare with and connect to the following:1. The Power of Minds2. The Power of People3. The Power of AgilityOur Purpose, our Values, our Principles (PVP)
Our Purpose, our Values, ourPrinciples (PVP) At P&G, it‟s about integrity and character. It‟s about building trust by being open, honest, straightforward and candid with each other customers, consumers and business partners. Combined, these characteristics are the Success Drivers, the competencies that define how employees of P&G succeed in today‟s business environment.
The Power of Minds This is the ability to out-think, out-invent and out- play the best competitors over time for the benefit of consumers. P&G looks at the applicants to display infinite curiosity and be eager to create – this desire helps form the ideas that will move the business forward.
The Power of People This is the competitive advantage that P&G‟s people and people-systems create when they work together. P&G strive to create an environment that fully leverages the individual talents for the value of all.
The Power of Agility This is P&G‟s ability to be fast, flexible, responsive and versatile in complex and rapidly changing business environment. This is to be ready to meet change head on and to be rigorous in employees execution.
TALENT SOURCING Recruiting Campus or Pre-screening Planning Needs MarketScreening Reasoning Problem ManagementInterview Tests Solving Test Application FormJob Offer On boarding
SELECTION PROCESS1. Application: People can search and apply for jobs as well as learn more about P&G and its employees at www.experiencePG.com. Once the application is submitted there will be further contact regarding successive steps.2. Assessment: P&G uses online assessments to measure skills and accomplishments that generally do not emerge from interviews. These assessments are critical as they help determine if it is equally beneficial for the candidate to continue through the hiring process.
3 types of Assessmenta) Success Drivers Assessment (Online) Assesses the candidate‟s background, experiences, interests, and work-related attitudes and measures his/her compatibility against P&G competencies for defining successful job performance.b) Reasoning Screen (Online) Depending on the desired position the candidate has to complete the Reasoning Screen. The Reasoning Screen measures cognitive ability. This is important because the nature of our work is complex and continually changing.c) Reasoning Test (In Person) Depending on the desired position candidate will be asked to complete our paper-and-pencil Reasoning Test. The test is delivered on campus or as a part of your final interview. This test measures your reasoning skills using numerical, logic-based & figural reasoning type questions.
Cont‟d3) Initial Interview: P&G uses behavioural-based interviews to get to know the real nature of the candidate. It would be a two way communication.4) Final Interview: In addition to more behavioural-based interviews, at this stage company goes into greater detail about skills and capabilities. Taking place either on campus or on-site at P&G, it‟s also the opportunity to get a more in-depth understanding of the company‟s unique culture, values and endless opportunities.5) Offer: The offer gives an opportunity to grow alongside highly talented people, facing new and exciting challenges, and touch and improve the lives of the world‟s consumers every day.
TRAINING AND DEVELOPMENT P&G has a very strong training and development plan as P&G‟s culture is to „build from within‟. P&G in every function has a combination of „on the job‟ training from the very first day together with the function specific „in-company‟ or „external off the job‟ training. P&G has powerful tools and systems in place like „Global Career and Skill development system‟ that keeps track of the all the trainings happening across all functions globally together with the online enrolment possibility. Every employee needs to go through annually a „Work and Development plan‟ review with higher level managers and „training and development‟ is a vital section in this working document.
PERFORMANCE MANAGEMENT P&G‟s core to the performance appraisal is work the „Work and Development plan‟ (W&DP) system that P&G has globally across all functions. Superiors were encouraged to train and help in the development of their subordinates. Work and Development Planning System (W&DP).The W&DP had four components –1. Previous years plan versus the results2. Areas for further growth and development3. Near-term and long-term career interests4. Development and training plan for the year ahead.
Cont‟d The W&DPs were reviewed annually and updated regularly. In addition to the formal review and updates of the W&DPs, superiors were encouraged to supplement the program with informal, ongoing coaching. Key components in the system are W&DP, Rating, Salary Planning and Assignment Planning/Promotion in addition to actual training development and review. Based on the individual‟s past year‟s performance, he/she is assessed and his/her contributions to the business in W&DP will be the base for Rating and Salary planning.
Performance Appraisal The first step in performance appraisal i.e. „Defining the job‟ with W&DP the employee and his/her immediate superior agrees on the work and development plan for the year ahead, which defines clearly the actions together with deadlines i.e. „defining the job‟. In terms of „Appraisal performance‟ this W&DP document is reviewed on a quarterly basis to monitor the performance. The performance appraisal is done using Forced Distribution method in which feedback is collected by using 360-degree feedback method. P&G use ratings to assess contributions relative to others at job level, in order to manage compensation and career progression competitively based on performance.
WORK LIFE AT P&G1. TRAINING OPPORTUNITIES:Internal Training and Development There will be continuous development of technical and interpersonal skills with the support of Company experts and with training courses to ensure career development. Formal trainings exist at many levels throughout the company. All new employees will receive Company Wide Training (P&G Beginnings) and training specific to the respective function, business unit etc. The P&G Build from Within Culture encourages training at all levels to continue to expand your knowledge and skill sets throughout the entire career
Cont‟d Mentoring Mentoring at P&G is filled with experienced individuals who are excited to form relationships with new employees. A P&G mentor is an experienced employee who acts as a trusted counsellor, friend, role model, guide, advisor, and "voice of experience" to a less experienced employee. Mentor/Mentee relationships may form naturally or the business may help introduce new employees to potential mentors.
Cont‟d External Training and Continued EducationTuition Reimbursement P&G offers a very generous Tuition Reimbursement Plan that allows employees to seek continuing education courses or programs that are related to their current or potential next assignment within the company. We will reimburse 80% of tuition and qualifying fees (pre- approval process) with a lifetime cap of $40,000 on Company reimbursed expenses.
Diversity & Inclusion Diversity & Inclusion at P&G is about a culture of respect for every individual. P&G is committed to creating a winning culture where colleagues and managers extending a personal touch to each individual, and getting to know each other. Diversity & Inclusion is a sustained competitive advantage for the continued growth of P&G. It enables P&G to be the “employer of choice” that hires, engages, and retains the best talent from around the world. P&G provides a supportive and encouraging environment that values individuality in order to inspire each P&Ger to bring his and her personal best.
Cont‟dCorporate Affinity Groups P&G currently has seven corporate sponsored Affinity Teams, each of which is involved with professional networking, developing cultural competencies, recruiting, and employee training and education. There are other Affinity groups that are sponsored by functions or business units. All new employee will be welcomed and invited to join by the following affinity groups: African American, Hispanic, Asian Pacific American, Native American Women, Gay, Ally, Bisexual, Lesbian & Transgender Employees (GABLE) People with Disabilities
Work Life Balance The P&G work culture is embedded with work life balance. The company believes that employees and the company work together with great flexibility, to have the healthiest, most productive people in the world who deliver strong business results, grow individual careers and help employees achieve its life objective. In order to facilitate the work life balance P&G have undertaken a strategy which is termed as „FLEX @ WORK‟. FLEX@WORK flex@work is a business strategy that allows the company to balance the needs of individuals and the needs of the company. There is a general arrangement that allows the employee and management to determine eligibility and decide which option is right for the business and employee. Some of the programs under this are.
Cont‟d… Work from Home This is one of the flexibility arrangement provided by P&G whereby if the nature of work is conductive and the performance of the employee is strong and if the arrangement fits within the needs of business and organisation, employees will be eligible to work from home a designated % of time each week. Flexible Scheduling Provides an employee alternative methods of organizing work- time across the week to meet both business and personal needs. Flexible scheduling provides an option to vary the number of hours in a workday to improve productivity. Personal Leave of Absence A Personal Leave of Absence enables the company to meet business needs and retain valued employees who, for variety of reasons and at different times in their careers, need to take up three months off, periodically without pay, with continued benefits, for individual interests.
Benefits for Life At P&G salary is only a part of the well-developed compensation program, an employee receives more than the basic salary. The total compensation includes Base salary Medical insurance Life insurance Retirement plans Stock purchase program Other recognition
Benefits: Paid- time Off New hires at P&G will enjoy vacation, public holidays, and personal holidays. On comparison with other companies P&G provides 2 more paid holidays and employees will also have the option to buy additional week of vacation using Flex Comp credit. Health Care Benefits P&G provides health benefits to all its employees with coverage beginning on your first day, and they provide all these benefits at a lower premium with lower deductibles. Wellness Programs Employee‟s health and well being are extremely important to P&G‟s vibrant living and Blue Print for Healthy living are two programs offered to educate and empower employees and their family members to make the best possible health care and lifestyle-related choices. Participation in the program includes incentives such as earning back health care deductibles.
Cont‟d Retirement Plan: Profit Sharing P&G makes an automatic contribution to employees account based on the years of service & base salary. The employees need not make any contribution, but may choose to add additional contributions to a P&G Stock Savings Plan. Flex Benefits/FlexComp P&G provides employees with a Company Credit to your FlexComp account (% of the salary based on years of service) that employee can spend as they choose on a number of pre or post tax benefits including, but not limited to, buying additional vacation, child/dependent care assistance, life insurance, etc. Tuition Reimbursement P&G offers a very generous Tuition Reimbursement Plan that allows employees to seek continuing education courses or programs that are related to their current or potential next assignment within the company. P&G will reimburse 80% of tuition and qualifying fees with a lifetime cap of $40,000 on Company reimbursed expenses.
INTERNATIONALISATION During 1980s, P&G started world wide expansion and started to change its organisational structured. It migrated to the global matrix organization. It resulted in the creation of four regions – North America, Latin America, Europe (including Middle East and Africa), and Asia. Later in 1998, it replaced the structure with an amalgam of independent organizations: Global Business Units with primary responsibility for products, Market Development Organizations with primary responsibility for markets, and a Global Business Services unit responsible for managing internal business processes.
Cont‟d.. Market Development Organization MDO‟s mission was to focus on customer needs and adapt the company‟s global marketing and sales strategies and programs to these local needs. Thus it created seven MBOs – North America, Western Europe, Central Europe (including Middle East and Africa), Latin America, Northeast Asia, China, and Asia(India & Australia). The GBUs operated autonomously and was responsible for profit and loss of a product-category. It created seven GBUs – fabric and home care, healthcare, beauty care, snacks and beverages, tissue and towels, feminine protection, and baby care.
Transnational Strategy “A combination of the multi-domestic and global strategies. Firms seek to achieve both global efficiency and local responsiveness.” P & G practices a transnational strategy, which is a combination of a multi-domestic strategy and a global strategy. Evidence of this strategy can be buttressed by its approach to business, “Think globally and act locally”. Procter and Gamble identified the increasing globalisation of business and resultantly altered their business strategy and structure in order to maximise exposure in more countries in order to: remain competitive internationally, benefit from economies of scale; and to maximise revenues, profits, share price and return on invested capital.
Cont‟d To facilitate the implementation of their global strategy CEO, Lafley, changed the structure from a “Global Product Structure”, which is often associated with a standardisation strategy and implemented a “Transnational” global strategy, and implemented a hybrid organisational structure that considered the geographical dispersion of multiple marketplaces, respective specialisation for particular brands and specialisations and economies of scale in particular value creating functions. Which they called the „Front-Back Hybrid Matrix organisation‟ structure. This strategy allowed P&G to simultaneously amalgamate cost reductions in the firm and retain efficient customer responsiveness; adapting to local tastes and expectations as they vary across nations.
Perlmutter‟s Model: Polycentrism P&G always tried for intense exploitation of local markets and so they wanted to maintain very good local responsiveness and for that they have constituted a better-informed local management. With regard to P&G India, they take in employees who are natives of India and all the top level management employees including the directors are all Indian nationals. Therefore they are adopting Polycentrism as the company is showing a host country orientation; which reflects host countries goals and objectives
Types of employees(HCN,PCN,TCN) Bob McDonald is Chairman of the Board, President and Chief Executive Officer of Procter & Gamble. US National. Werner Giesler, Global Operations from Germany. At global level, P&G adopt Third Country National (TCN) approach at the top management level. Whereas P&G India adopt Host Country National Approach(HCN) as the employees at the top level are natives of India as the Chairman is Mr.R.A Shah and the Managing Director is Mr. Shantanu Koshla.
Research and Development Procter & Gamble fueled its consumer products engine from R&D inside its own walls. As its markets have matured, P&G has directed its search outward. Operated one of the greatest research and development operations in corporate history. P&Gs new strategy, connect and develop, uses technology and networks to seek out new ideas for future products. P&G hadnt changed their innovation model since the late 1980s. They moved from a centralized approach to a globally networked internal model. Most of P&Gs best innovations had come from connecting ideas across internal businesses. External connections also could produce highly profitable innovations.
P&G made it their goal to acquire 50 percent of their innovations outside the company. The strategy wasnt to replace the capabilities of our 7,500 researchers and support staff, but to better leverage them. Created „connect and develop‟ innovation model. With a clear sense of consumers needs, they could identify promising ideas throughout the world. Applied their R&D, manufacturing, marketing, and purchasing capabilities to them to create better and cheaper products, faster. Through the model, there were improvements in product cost, design, and marketing. R&D productivity has increased by nearly 60 percent. Innovation success rate has more than doubled. The cost of innovation has fallen. P&G has launched more than 100 new products for which some aspect of execution came from outside the company.
P&Gs R&D Model Procter & Gamble, the FMCG giant, now partners with third parties in over 80% of its innovation activity, as part of a wide-ranging transformation of the companys activity in this area. The owner of Tide and Pampers spends more than $2bn on research and development every year, a figure it suggests doubles that of its nearest rival, alongside £500m on generating consumer insights. Connect & Develop platform, set up in 2000 with the aim of gathering 50% of ideas from outside sources, be it individuals, firms or universities. Have joint development laboratories with their suppliers. Runs an innovation and technology committee on its board of directors, with McDonald arguing it is one of "few companies in the world" boasting such a body.