P&G human resource

1. PROCTER & GAMBLE

2. PROCTER & GAMBLE
GROUP NO – 8
Abhilash K
Anu Mathew
Athira Lal
Nidhish Thampi
Rosmin Thomas

3. Corporate Purpose, Value and
Principles
 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.

4. 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.

5. 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

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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

12. 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.

13. 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.

14. PV Morgan Model

15.  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)

16. 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.

17. 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.

18. HIRING PRINCIPLE

19. SUCCESS DRIVERS
Set 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.
PURPOSE
VALUES
PRINCIPLES

20. 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 Minds
2. The Power of People
3. The Power of Agility
Our Purpose, our Values, our Principles (PVP)

21. Our Purpose, our Values, our
Principles (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.

22. 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.

23. 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.

24. 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.

25. TALENT SOURCING
Recruiting Campus or Pre-screening
Planning Needs Market
Screening Reasoning Problem Management
Interview Tests Solving Test Application
Form
Job Offer On boarding

26. SELECTION PROCESS
1. 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.

27. 3 types of Assessment
a) 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.

28. Cont‟d
3) 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.

29. 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.

30. 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 year's plan versus the results
2. Areas for further growth and development
3. Near-term and long-term career interests
4. Development and training plan for the year ahead.

31. 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.

32. 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.

33. WORK LIFE AT P&G
1. 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

34. 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.

35. Cont‟d
 External Training and Continued Education
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. We will
reimburse 80% of tuition and qualifying fees (pre-
approval process) with a lifetime cap of $40,000
on Company reimbursed expenses.

36. 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.

37. Cont‟d
Corporate 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

38. 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.

39. 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.

40. 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

41. 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.

42. 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.

43. 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.

44. 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.

45. STRATEGY

46. 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.

47. 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.

48. 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

49. 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.

50. 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&G's new strategy, connect and develop, uses technology and
networks to seek out new ideas for future products.
 P&G hadn't changed their innovation model since the late 1980s.
 They moved from a centralized approach to a globally networked
internal model.
 Most of P&G's best innovations had come from connecting ideas
across internal businesses.
 External connections also could produce highly profitable innovations.

51.  P&G made it their goal to acquire 50 percent of their innovations
outside the company.
 The strategy wasn't 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.

52. P&G's 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 company's 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.

53. THANK YOU