COMPANY PROFILE

In this report, we are going to discuss human resource management at Nike. Nike is a U.S
based international cooperation founded on January 25, 1964, by Bill Bowerman and Phil
Knight. Earlier, Nike was called as Blue Ribbon Sports when it was established. Later, it was
named as Nike on May 30, 1971. The multinational organization deals with design,
development, manufacturing, and marketing and sales of accessories, sports equipment,
footwear across the whole world. Every sportsperson loves to use Nike branded sportswear as
a symbol of hope and excellence in their play.

Phil Knight was a sportsperson who was successful in expanding his business across
Germany, Egypt, China, Japan, and other countries accommodating 31% of global athletic
footwear. The great founder believes in his hard work, his passion for sporting, and
mastermind in sales and marketing. These elements of his faith encouraged people to buy his
branded product for sports events. Knight named his branded products as “Nike” which
resembles the Greek goddess for victory. The logo extracted from the winged goddess is
symbolic of motivation, faith, hope, power, speed, and excellence.
Knight was a distance runner coached by Bill Bowerman during his studies in M.B.A
in finance. Knight alone started to popularize his business through writing assignments on
Japanese websites. Unfortunately, he received no reviews or feedbacks. Later, he along with
Bill Bowerman began exporting their Nike shoes to Japan replacing the German-dominated
shoes.

PERSONNEL MANAGEMENT Vs HUMAN RESOURCE MANAGEMENT

Personnel management is the management of working staff in an organization to meet its

goals. Personnel management is very much essential in making a work atmosphere
relationship between employees and its management. In Nike, personnel management teams
are formed consisting of managers to recruit the employees under various departments like
development, manufacturing, design, and so on. The primary objective of personnel
management in Nike is that they support the best quality products through well-equipped and
hardworking employees.
Human Resource Management

Human resource management in Nike is the process of recruiting the right employees to serve
for the organization widening their marketing and sales.

Personnel management Human resource

management

a)It is the traditional way of management a) It is the modern way of management.

b) Here, relationship management is b) Here, the relationship is maintained

between a personnel and the management. between a group of working staff and
management.

c) Personnel management comes under the c) Human resource management comes

control of personnel managers. under the control of all levels of managers
from top to bottom.

d) In personnel management, the d) In human resource management,

individual employees are focused for their collective training rooms are given to
work and improvement training rooms are reinforce the overall participation and
provided. dedication of the employees in their work
for the growth of the organization.

e) Personnel management deals with a e) Human resource management is

single employee’s task, work and concerned with the mass participation
satisfaction for the achieving goals. and the involvement of the employees.

f) Personnel management assumes people f) Human resource management considers

as their input to achieve the desired goal. people as important and uses their
valuable human resources to get the
outcome.

Function of the human resource management

In Nike, the human resource management recruits innovative and creative minded candidates
during their selection process. They assure the employees with job security, money to their
wallets, appraisals, promotions, rewards, and recognition.
 Fig 1.1.1 Diagram showing various roles of HRM

In Nike, an unusual H.R interview model is carried out rather than other companies. They
recruit and analyze the skills of the candidates under every perspective. After hiring the
employees, the HRM assures them that they are the deserved ones to serve in Nike for its
rapid global growth. The talent acquisition group in Nike owns knowledgeable and skillful
recruiters who keep a keen eye during the recruitment process. At every stage of training, Nike
encourages the employees to do more and to earn more. Individual training rooms were
provided to improve the employability skills for poor performed candidates.

Roles and responsibilities of line managers in Nike

*A line manager is responsible for providing best training and support to hired
employees.
*In Nike, the line managers build a friendly relationship with employees to see a high
career growth in their organization.
*A line manager is always responsible for looking after its teamwork, coordination and team
growth.
*Line manager engage with other line managers from different teams and responsible for
generating outcome reports, reviews and feedbacks to higher level managers.
 *Line managers must have the capability of handling larger organizations which demands
long working hours. They must be able to withstand the maximized pressures from the
company side to increase the outcome.
*The actual work of the line manager in Nike starts after hiring the candidates to various
team positions. As soon as the recruitment process is over, the project manager allocates tasks
to different teams under the guidance of line managers.
*The line managers working in Nike continuously assist their employees during training
sessions and give them feedback on a daily basis. Encourages the employees to trust
themselves in their work with full involvement and satisfaction

Impact of the legal and regulatory framework in HRM

In Nike, the human resource management team strictly follows some rules and guidelines
which are applicable both to its business and employees. Any violations of these rules could
punish either the company or its employees under the official legal and regulatory acts.
In Nike, this legal and regulatory framework has a significant impact during the interviewing
process. The laws under legal and regulatory framework assure that all the skilled and
innovative people have equal access to filling the job vacancies irrespective of their color,
caste, economic status and family background. In this present century, Nike has become the
world’s leading provider of sportswear because of its way of recruiting the right people to do
the right job.
Task 2
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Reasons for human resource planning in organizations

Human resource planning definition
Human resource planning is the process of identifying the current availability of human
resources in an organization and plans are made to improve them to pitch an organization to
higher levels. Human resource planning applies to all sort of business to achieve its objectives.
In Nike, business is successful because of thoughtful human resource planning by HRM teams.
The planners working in Nike has a clear-cut story of Nike’s successes and failures in marketing
and sales. They keep an eye on those areas where they met failures and try to improve them.
A sudden rise or fall in business is in the hands of working employees and their relationship
with higher officials.
In H.R planning, the work is subjected to the right employees, and they are put under
teams. The team leaders visions, monitors, and motivates them in every aspect. Finding the
right candidate for a job is possible only through the best human resource practices. Thus we
can conclude that human resource planning is essential to establish a well-versed workforce
platform to take the company to higher working standards in the future.

Fig 2.1.1 HR planning and analysis model

Stages involved in human resource planning

Human resource planning is done under six stages.

a) The first and foremost step is to analyze the company’s objectives regarding its business.

b) The clear-cut idea on the current availability of the resources.

c) Planning to fulfill the demands of the company in the future.

d) Estimating the gaps between the present and future positions of an organization and formulating plans
to fill the gaps.

e) Implementation of plans

f) Guiding the employees in their work, monitoring them and giving feedback on a daily basis to improve
the Productivity.

Comparative study of recruitment and selection process in Nike and

Adidas

Nike Adidas

a)Nike hunts the for the employees who a) Adidas looks for the people who are
are self-starters with optimistic attitude really confident and clear about their work
culture.
 b)Nike search for the employees from b) Adidas picks up and recruits the people
various job application insights along with only through their specific career links.
social platforms They never go for social platforms like
facebook or twitter.

c) They give priority to the candidates who c) According to Adidas, a jobseeker should
present themselves smartly in online be aware of privacy of his/her data.

d) Nike expects people to follow d) They allow people to have casual dress
professional dress code. code.

e)They expect the candidates to ask e) Adidas expects the candidates to know
several questions regarding the business about their branded products under sales
culture during the interviewing process and not to be confused with other brands.

f) They never expect the candidates to f) They ask for prior knowledge of
have knowledge regarding sportswear. candidates in sports.

Justification of active recruitments in Nike and Adidas

Both Nike and Adidas are well-grown organizations in marketing and sales. The owners of
the organization can taste the sweetness of fruits as an outcome of their hard work from the
employees. Adidas and Nike conduct active recruitment drives at the end of every year to fill
its job vacancies across worldwide. The recruitment teams fly over various universities and
pick up the people from different background, education, thoughts, and ideas creating diversity
in work culture.
They conduct world conferences, events, debates, seminars, trade shows as part of their
recruitment. They seek for the people who are self-motivators and must have a great attitude
to learn. They want people who have enough stuff about their business culture and work ethics
so that they could efficiently train them. In this way, we can conclude that both the
organizations do the active recruitments.
Task 3
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Motivational theory and rewards

In Nike, workers are encouraged and motivated by their leaders. Motivational theories are
coined by earlier authors and researchers on analyzing the workforce in several organizations.
In Nike, people follow the Hezerberg’s motivational and hygienic factors. They firmly believe in
Maslow’s hierarchy of needs like job safety, self -respect, payment, work relationship where
motivational factors play a vital role.
Nike motivates its employees through motivations by giving them positive feedback,
encouraging them to work hard to find themselves a position in their company. And
subsequently, Nike employees set their minds to sacrifice anything for a job and give their full
efforts to finish their tasks within deadlines. The trainers continuously assist them in every
aspect and offer them rewards and recognition on each step they move forward. One can say
that motivational theories followed in a company directly influence the work nature of an
employee. Motivation in a sense, appreciation of one employee, may not affect the other, and
everyone must be treated in an equal and friendly manner. Naturally, motivation creates an
eternal spirit in the heart of workers and make them as right professionals to deserve the
proper recognition and rewards.
Factors that determine pay
Every employee serves their company to earn for their livelihood. Salary is the critical factor
which attracts the workers. In Nike, the annual salary package varies from one employee to
the other depending upon their respective positions.
Elements that influence pay are:
*Interview evaluation
*Experience and education
*Promotions
*Incentives and appraisals
*Salary hike based on involvement and hard work
*Deduction in pay based on some leaves are taken.
*Different designations have a different salary range
Effectiveness of reward systems
The main aim of the implementation of reward systems is to improve the performance skills
of employees to give the desired output. Rewards may be in the form of promotions, holiday
trips, gifts for achieving target sales, recognition and so on. In Nike, rewards helps in
establishing a productive workforce. Motivations are the key factors pitching employees to
higher designations with rewards and appraisals. In spite of upcoming work pressures, awards
and recognition help the employees to withstand and overcome it.
How reward systems ensure a competent workforce in Nike?
*Make the employees show full potential towards their job.
*Responsible in promoting employees to higher designations by their managers.
*Increase in overall sales of the product.
*Motivations are causes of an employee’s success.
*Motivations done in a sense that one must not be degraded by the others thus
maintaining equality in work culture.
Methods used in Nike to monitor employee performance
Employees working in an organization are evaluated through various methodologies.
They include:
*Assessing their performance on a daily basis by giving them positive and negative
feedbacks.
*Generating quality reports using graphic rating scales with rating out of 5 or out of
10.
*Using a 360-degree feedback report which depicts the overall performance of an
employee.
*Check whether they can meet the company’s targets.
*Separation of performers and non-performers in an organization.
*The top managers continuously monitor the employees to check whether their
business is an incorrect line of the track.

*Watching the employees continuously whether they are dedicated to the task or busy
with their phone calls or chat.
*A mandatory report is generated for every employee under their performance, salary
hikes, number of leaves taken, working hours which creates an overall image of the conduct of
an employee.
*Block to access for various social websites like facebook, WhatsApp or Twitter in
working systems during working or training periods.
Task 4
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Causes for the cessation of employment
The HRM team has the rights to both recruit and terminate the employees. Cessation can
cause to an employee due to his lack of production and performance.
Cessation of Employment is because of the following reasons:
*Lack of knowledge in business products on the work.
*In cooperating with the co-workers.
*Dishonesty and breaking the company rules.
*Failure in the submission of daily reports.
*Taking leaves without necessity when serious projects are assigned to them.
*Following improper dress code and indulging in activities which found to be a sort of
misbehavior within the working campus
*Misbehavior and disrespect showed towards the business clients.
*Following the working standards and freelancing it for some other organization.
Employment exit procedures
When an employee moves out of an organization, he/she has an opportunity to explain the
reason for quitting the job with a proper resignation letter.
In Nike, following employment exit procedures are undertaken. They include:
*An employer must explain why he/she is quitting the job either through a face to face
meeting with the manager or through email.
*Both in Nike and Adidas, a notice period is set where the employees had to serve the
company before they leave.
*If an employee works in Nike or Adidas for more than one year, he/she would get an
experience certificate where he/she is pushed to higher positions with salary hike when
transferred to other multinational organizations.
Impact of the legal and regulatory framework on employment
cessation arrangements
An employee can be kicked out of the company if he breaks the rules under the legal
and regulatory framework.
Various legislative laws are implemented under the legal and regulatory framework. If an
employee violates these laws, he will be kicked out of the company. Violations include breaking
company rules, misbehavior with the customers, sexual harassment and so on.