Assignment of Human Resource Management

On

Human Resource Policies

(Company: Nike)

Submitted to Lovely Professional University

Submitted To: Submitted by:

MBA 1st Sem

LOVELY PROFESSIONAL UNIVERSITY

2008-10
About Nike

Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the
United States. The company is headquartered in the Portland metropolitan area of
Oregon, near Beaverton. It is the world's leading supplier of athletic shoes and apparel
and a major manufacturer of sports equipment with revenue in excess of $18.6 billion
USD in its fiscal year 2008 (ending May 31, 2008). As of 2008, it employed more than
30,000 people worldwide. Nike and Precision Cast parts are the only Fortune 500
companies headquartered in the state of Oregon, according to The Oregonian.

The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bower
man and Philip Knight, and officially became Nike, Inc. in 1978. The company takes its
name from Nike. Nike markets its products under its own brand as well as Nike Golf,
Nike Pro, Nike+, Air Jordan, Nike Skateboarding and subsidiaries including Cole Haan,
Hurley International, Umbro and Converse. Nike also owned Bauer Hockey (later
renamed Nike Bauer) between 1995 and 2008.In addition to manufacturing sportswear
and equipment, the company operates retail stores under the Niketown name. Nike
sponsors many high profile athletes and sports teams around the world, with the highly
recognized trademarks of "Just do it" and the Swoosh logo.

Nike's world headquarters are surrounded by the city of Beaverton, Oregon but are
technically within unincorporated Washington County.Nike produces a wide range of
sports equipment. Their first products were track running shoes. They currently also
make shoes, jerseys, shorts, baselayers etc. for a wide range of sports including track &
field, baseball, ice hockey, tennis, Association football, lacrosse, basketball and cricket.
The most recent additions to their line are the Nike 6.0 and Nike SB shoes, designed for
skateboarding. Nike has recently introduced cricket shoes, called Air Zoom Yorker,
designed to be 30% lighter than their competitors.In 2008, Nike introduced the Air
Jordan XX3, a high performance basketball shoe designed with the environment in mind.

Nike sells an assortment of products, including shoes and apparel for sports activities like
association football basketball, running, combat sports, tennis, American football,
athletics, golf and cross training for men, women, and children. Nike also sells shoes for
outdoor activities such as tennis, golf, skateboarding, association football, baseball,
American football, cycling, volleyball, wrestling, cheerleading, aquatic activities, auto
racing and other athletic and recreational uses. Nike is well known and popular in youth
culture, chav culture and hip hop culture as they supply urban fashion clothing.

Nike recently teamed up with Apple Inc. to produce the Nike+ product which monitors a
runner's performance via a radio device in the shoe which links to the iPod nano. While
the product generates useful statistics, it has been criticized by researchers who were able
to identify users' RFID devices from 60 feet (18 m) away using small, concealable
intelligence motes in a wireless sensor network.In 2004, they launched the SPARQ
Training Program/Division. It is currently the premier training program in the U.S
Value of Human Resource Policies

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.

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 business

* Bring knowledge, skills and experience to your business which are intangible but are
also priceless
* Create customer satisfaction

Talented employees guarantee competitive success, and competitive success secures a

growth in profits.Whilst these principles apply to all businesses, it is essential that each
business identifies its own specific HR measures to monitor the impact of employees -
and indeed, employee policies.

What a Good HR Policy do’s

* 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
Employees are a significant part of your competitive advantage - they can make or break
your business in the way that they interact with your customers, consumers and the
general public.Employees are also your business' reputation

Some of the Components of A Common HR Policy

Attendance Employment of Relatives

Sexual Harassment Performance Correction
Religious Holidays Personal Days
Vacation Time Jury Duty
Recognition Policy Drug Free Workplace
Harassment Free Workplace Conflict of Interest

Family and Illness Leave Staff Development

Harassment AIDS or HIV Harassment
Attendance Leave of Absence Without Pay
Workplace Violence Computer Use Policy
Bilingual Customer Service Personal Relationships
Drugs and Alcohol Supplementary Salary Leave Plan

Affirmative Action
Staff Evaluation
Termination of Employment
Work Schedules
Drugs
Dispute Resolution
Staff Development
Leaves of Absence
Sexual Harassment
Holidays
Risk Management
Classification of Jobs
Nepotism
Discipline of Staff
Out of Scope Compensation Plan

Professional Responsibility Nepotism

Management Compensation Plan Sexual Harassment
Dispute Resolution Movement from Bargaining Unit to
Conflict of Interest Management
Drug Free Workplace Pay Adjustments
Computer Usage Temporary Positions
Recruitment
Existing Nike employees can view job openings on the internal web and apply direct to
the SSC resourcing center 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 resourcin 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. At the same
time the recruiter will search the“future interest” database for already registered potential
candiates with the job profile details and interviews are scheduled The system
then matches candid held in the active recruiter files. A shortlist is produced from the
system, sent to the line manager The introduction of ActiveRecruiter 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 organisations such as Monsterboard to provide further job postings
opportunities to attract candidates to Nike More conventional resourcing processes are
also used including newspaper advertising and Search organisations for more senior
positions

SELECTION PROCESS

The selection process should be:

•Transparent

•Timely and cost effective

•Equitable

•Free from conflict of interest

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.

Compensation

Nike Salary & Compensation include information about base salary, signing and year-end
bonuses, stock options, vacation time, and other special perks and reimbursements that
make up total compensation at Nike.Depending on who's crunching the latest numbers,
studies suggest that America's most elite corporate executives earn as much as 200 times
more money than their company's median workers. Yet in the idyllic, sedate setting of
Portland's suburbs, all signs hint that when it comes to salary and bonuses, Nike Inc. runs
a comparatively frugal operation.

Nike refers to its executive compensation game plan as "conservative...compared to

salary levels for equivalent executive positions at other global consumer product
companies." Highly qualified executives are instead retained by what the company calls
the "incentive components" of payday. stock performance awards and savings plan
contributions help boost the Nike executives pay by another $70,000 to $700,000 each
year. Another benefit of the humble pay scale is a public relations shield for Nike, which
is still frequently attacked for its overseas labor practices--where Indonesian workers
contracted to make Nike shoes start out making $2 to $3 per day.

Countless stock incentive plans, compensation packages and back-boardroom perks make
comparisons with other companies difficult. But if anything, the salary and bonus listings
are a symbolic place to start.
Figures showing Pay Scale at Various Nike’s Offices

Health and Safety

Nike ‘s health and safety guidelines, including those applying to employee residential
facilities, where applicable are with given factory/vendor health and safety standards.
Proper Ventilation and Facitlies at Production area is given so as they may not get any
sort of problem. Every type of measures are being taken when any mishappening is there
or fire is broke out. Health related conditions like providing some what extra facilties to
old employees and women who are conceving and women with very small babies etc.So
in Nike each and every step is taken to make the conditions very much applicable to
normal ones so that employees can adjust accordingly.

Problem of Diversity of Employees

Mission: To increase awareness and continue to educate Nike employees about the
Native American culture

Nike Employee Networks are designed to help Nike move toward greater diversity. In the
U.S., six employee networks focus attention on important communities within Nike. The
intended role of each network is to foster professional development, enhance work
performance, identify mentors, assist in recruiting diverse professionals, develop
increased community interaction, and encourage improved teamwork and interaction
within and across work groups
Through educational opportunities, seminars, speakers and community involvement,
NAEN continues to increase awareness of Native American values and culture at Nike.
By sponsoring sporting events and various youth programs, the group creates visible
community support and inspiration for Native cultures. With their help, the North
American Native American community will understand Nike is an employer of choice.

For Disabled Employees

Mission: To enrich Nike and our community by promoting the inclusion of people
impacted by disabilities and fostering an environment that realizes everyone's full
potential.

It's not about our limitations; it's about what each of us can contribute. The disabled
Employees and Friends Network enhances our company-wide awareness of the
contributions and potential of people with disabilities. The group provides information,
resources, and education to all Nike employees through a wide variety of partnerships
and outreach activities. They also work to promote opportunities for all employees to
contribute as volunteers, support Nike's global diversity and inclusion initiatives, and
support managers in developing and promoting a diverse, highly effective
workforce.Nike created the Casey Martin award in 2001 to celebrate athletes with
disabilities.

For Black Employees and Friends

Nike's Black Employee & Friends Network (BEN) offers a strong support system for
black employees to facilitate a successful transition into Nike's corporate culture. The
network also builds human resources support for identifying and bringing to Nike
qualified black candidates. BEN offers resources to help incorporate the cultural nuances
of the black consumer market in Nike's global marketing strategies. Ultimately, the BEN
enhances cultural awareness for Nike and its black employees

Environment

It complies with applicable country environmental regulations; and that it has agreed in
writing to comply with NIKE's specific vendor/factory environmental policies and
procedures, which are based on the concept of continuous improvement in processes and
programs to reduce the impact on the environment.There is prohibition on the use of
chloro-flouro-carbons (CFCs), the release of which could contribute to the depletion of
the earth’s ozone layer.

Equal Opportunity

It does not discriminate in hiring, salary, benefits, advancement, termination or retirement

on the basis of gender, race, religion, age, sexual orientation or ethnic origin.Nodoubt the
process varies at each and every stage and we know there is some sort of differences and
partialness when it comes to giving incentives or hiring an employee but in Nike its not
like that and those which are existing in the organization are treat equal and are at same
level when it comes to giving opportunity.

Insurance

It compliance with all applicable local laws providing health insurance, life insurance and
worker’s compensation. As Nike is providing best to the employees of the organization it
checks that each and every employee and worker of the organization and their family
members are covered under the insurance because it covers their risk also and the
company’s risk who in future may have to pay for any unseen contingencies or any future
mishappenings.

Hours of Work

Hours of Work/Overtime certifies that it complies with legally mandated work hours;
uses overtime only when employees are fully compensated according to local law;
informs the employee at the time of hiring if mandatory overtime is a condition of
employment; and, on a regularly scheduled basis, provides one day off in seven, and
requires no more than 60 hours of work per week, or complies with local limits if they are
lower.

Benefits

Benefits certifies that it complies with all provisions for legally mandated benefits,
including but not limited to housing; meals; transportation and other allowances; health
care; child care; sick leave; emergency leave; pregnancy and menstrual leave; vacation,
religious, bereavement and holiday leave; and contributions for social security, life,
health, worker's compensation and other insurance.

Labour Practices

Forced Labor certifies that it does not use any forced labor - prison, indentured, bonded
or otherwise.Child Labor (Contractor) certifies it does not employ any person under the
minimum age established by local law, or the age at which compulsory schooling has
ended, whichever is greater, but in no case under the age of 14.

• 77% of the employees suffered from respiratory problems

• Thousands of females, mostly under the age of 25, worked 10. 5 hours a day, six days a
week for $10
• More than half of the workers dealing with chemicals did not wear protective
equipment, nor did they understand the nature of the hazards around them.

Most factory workers have little formal education, are poor and come from rural areas
where opportunities to earn a leaving are meager.
Organization Development

Nike is a well-established supplier of sports clothing and equipment. Nike has

successfully opened franchised chains of department stores all over the world. The Nike
stores provide the public with top quality apparel and equipment at “value for money”
prices. Management is responsible for day-to-day operation of the store and human
resources.

Life/Work Balance

Nike believes in making difference in people's lives has made it provide a variety of
benefits to help its employees achieve optimum work/life balance, including:

• Paid Time Off (PTO) - Accrues on a per-pay period basis. One may earn 18-28
days based on your completed years of service
• Holidays - Nine company-paid holidays
• Bereavement - Up to three paid days
• Jury Duty
• Military Leave – Nike pays its employees the difference between military pay
and their base compensation for up to one year. They also maintain medical,
dental, vision and life insurance benefits for one year
• Adoption Assistance – Nike reimburses up to $5,000 ($2,500 for part-time
associates) per adoption for eligible expenses
• Long-term Care
• Home/Auto Insurance
• Pet Care Discounts
• Flexible Work Schedules
• On-site Cafeterias
• Scholarships to trainees
• New Mother Rooms

BIBLIOGRAPHY
www.nike.biz
www.wikipedia.org/nike.com
www.hr-guide.com
www.hrarticles.com