Nike Organisation Analysis - Assignment Example

The Organisation (organisations and behaviour, managing activities to achieve results) Introduction Any organized human activity, which is done in-group, will be most times constituted into structure called organization. So, Organization is a ‘structure’ with a ‘collage’ of individuals doing their allocated work under the supervision of a leader, for the benefit of the organization as well as them. This team of individuals like the five different fingers in one’s hand will be different from one another having different characters, attitudes, education, background etc, etc…and the unison of these different humans under a single organization to reach a target is, and will always be a difficult proposition. As these different humans could only create a different working culture, the success rate will be minimal. If a common working culture, if correctly said, the perfect, feasible and winnable working culture is ‘operationalised’, through out the organization, the organization will be a success story. The script for this success story can only be scripted through effective strategies. So, this paper will focus on the organization of Nike and my role in actualizing an organizational culture at its U.K. operations. That is, I as the Personnel officer working in Nike’s London office have prepared a three section report to achieve the aim of incorporating diversity in a more effective manner than it is being achieved now. So, this paper will analyse how this aim and objective of incorporating diversity, may affect the structure and culture of Nike. The paper will also analyze the relationship between Nike’s structure and the effects on business performance, comparing with other organizations. The paper will also discuss the inter-relationships between the different processes and finally the factors which influence individual behaviour at work in Nike 1.1. Aims and objectives of Nike Workers only form the crucial ‘cog’ in the running of the organization. Only if these crucial workers are recruited or staffed optimally through an effective recruitment process, the organization can achieve optimum success. But, for the organizations particularly multinational companies, recruiting the apt workers is not the end of the task. Their aim and objective will be to recruit employees from diverse backgrounds in their home operations and importantly in their foreign operations. That is, it is necessary that the management must ensure a constant availability of sufficient number of efficient employees importantly from diverse backgrounds, for the efficient functioning of the organization and also to fulfil ethics. This is what Nike is trying to achieve through its Diversity program. In this changing world particularly in a diverse country like U.K., it is necessary for Nike to recruit not only apt and qualified employees, but also recruit employees from different or diverse backgrounds. That is, Nike should have a diversified workforce to develop economically and also ethically, especially in relation to Corporate Social Responsibility (CSR). This aim and objective of Nike can be achieved further if the currently followed diversity program is optimized in more effective fashion. 1.2 Relationship between Nikes aims, structure and culture and the effects on business performance The main aim and objective of Nike is to actualize a strong and diversified workforce. Currently, Nike is co-operating with six employee networks, which were established by Nike themselves, to incorporate diversity. The six Nike networks each containing a minority group are Networks for people of African origin, Asia Pacific, Disabled Employees & Friends, Gay, Lesbian, Bisexual, Transgender, etc. These networks consisting of the main minority segments of the population, are liaising with the recruiting officers of Nike to give employment to maximally diverse people. The first suggestion that can be carried out by the Nike’s management to further optimize its diversity program is to enlarge or increase its current number of networks, so to include more disadvantaged but qualified people. Networks specifically for minority groups from Third world countries could be a feasible option because crime rate among these groups of people are in the high ranges in U.K., and so if they are provided employment and livelihood by Nike it is like achieving two objectives in one go – minimizing crime and importantly incorporating diversity. This way Nike can further optimize its various activities. For example, in our European headquarters at London we currently employ over 70 different nationalities…Nike also works closely with Stonewall, Britain’s leading gay equality organization, and other members of the program, to improve the working environment for our lesbian, gay and bisexual employees (nikebiz.com). Even among those groups, only qualified and attitudinally optimal employees should be recruited. By these measures, Nike can recruit qualified or equipped persons from groups or networks into their organization, and thereby bring in the diverse element. That is, with this Diversity program, Nike can recruit some of the brightest and talented individuals from the groups or sections of population, who are not given adequate opportunities due to their allegiance to particular group and its way of living. Importantly, Nike can also bring in many dynamic people from different backgrounds, who can enrich the creativity and innovation part of their business. Apart from these employee centric outcomes, Nike can surely further optimize its already developed positive image about the company in the minds of the customers, all over the world. This positive image will bring in many benefits to Nike like elevating its brand image, easier identification of Nike’s products particularly among the ‘minority’ groups (who will be happy with Nike for recruiting one of their kind or group members). “Diversity heightens the stature and belief in the brand and within our culturally diverse consumer base. “ (nike.com). So, Nike can further develop this diversity program in its U.K. operations to actualize the issue of recruiting talented group of workers from diverse population and thereby improving its image. This recruitment process will surely take care of the organization’s interior as well as the exterior environment, thereby helping it to achieve greater success. Nike through its diversity based recruitment process hopes to achieve an optimal business performance, both economically and ethically. That is, employees recruited through this diversity program will perform optimally in the interior environment increasing Nike’s productivity and profits. At the same time, their recruitment will surely improve the organization’s image externally from the perspective of customers and other market forces. 1.3 Compare and contrast different organisational structures and cultures There are also many organizations that have incorporated diversity programs in their recruiting process and thereby making efforts to have diversified workforce. So, this part of the report will compare and contrast Nike’s fledging diversity program with similar programs in different organizations. While comparing and contrasting, I will specify five strategies, which are being used by other companies and how those five strategies can also be utilized by Nike to further develop and optimize its diversity program. Verizon as part of its comprehensive diversity strategy puts the onus on its directors to recruit employees from diverse backgrounds. Also, to optimize the directors’ performance in relation to its diversity program, Verizon financially rewards them. That is, “directors are held accountable for promoting diversity, since a certain percentage of their bonuses are tied directly to the hiring of women and minorities and the procurement of minority contracts” (Lee). So, my first recommendations for the Nike’s management is, the directors or the managers should be asked to recruit or apportion employees from diverse background. This strategy is providing positive results to Verizon and its employees. So, if the directors or managers in Nike are involved in the diversity programs as part their work schedule and also as the criteria for financial rewards, it will surely work out very well improving Nike’s economical position and also its ethical position. The other strategy followed in Verizon which can be employed in Nike is the requirement on the part of the company executives, to mentor two people from diverse background. “Company executives are also required to mentor two people, one of whom must be a minority or woman” (Lee). This strategy can also be implemented inside Nike to optimize its diversity program further. As this strategy is improving the employees from the diverse group, those employees will become more productive with constant mentoring. Then, importantly it will also strengthen the purpose of the diversity programs. Verizon also conducts managers workshop for the managers and other executives regarding cultural awareness, so that that they understand the need of diversity programs fully. “There is a managers workshop that identifies leaders and puts them through cultural-awareness and managerial training, and Verizon has 23 diversity councils for its different lines of business” (Lee). Nike can also incorporate this strategy as part of its diversity programs. Because only if the managers and other executives are made culturally aware, they can treat the employees recruited ethically Southwest Airlines to promote diversity includes its supply network as part of its diversity program. Nike can also implement this strategy in its operations outside London, so that there are suppliers from diverse backgrounds particularly disabled suppliers. Even though Nike has a diversity programs in its supply network, it does not give extra focus to the disabled. So, Nike by following Southwest Airlines can integrate disabled persons as part of their supply network. Thereby, the company can help them to attain their livelihood by staying in their own place. British Petroleum or Beyond Petroleum or bp develops its diversity programs by recruiting more employees from the countries in which it operates. “We are particularly focused on building and developing our local capacity in the markets where we already operate.” (bp.com). The outcome of this strategy is that, apart from developing its image in those countries, it also gives it cheap labour. Nike can also include this aspect in its diversity programs because Nike is also a global company, operating in close 50 countries. If more employees are recruited as in the case with bp, Nike can also get cheap labour and importantly a positive brand image in those countries, helping it to develop both ethically and economically 2.1 Inter-relationships between the different processes and functions of an organisation With great brand name, logo and quality products, Nike was able to entice maximum customers, reaching the status of numero uno. As it has already established this strong brand image, Nike’s economic position will only accentuate in the future, if it strictly follows all the measure that are mentioned above in the report. That is, unless product’s quality deteriorates to abnormally low levels, the brand and the market share of Nike will not get affected in a negative way. So, the indicator which can forecast a positive and favourable future or a negative and bleak future in the aspect of economic growth is the quality of the products. That is, to actualize a positive and favourable future, the objective of providing good quality products has to be incorporated into the strategic planning of Nike, even while incorporating the diversity program. For that, there should be effective and optimal inter-relationship between the different processes and functions inside Nike. But, this quality aspect can be compromised by Nike, if it follows or introduces outsourcing as part of its macroeconomic environment. Outsourcing a part of the work or even a major portion of the work to different countries particularly Third World countries has become a common practice for most western companies including Nike’s U.K. division. Although, quality aspect can be compromised in these outsourcing options, it is not the case all the time, because if a optimum quality standards equivalent of home operations are followed, the outsourcing arm of an organization can also be expected to produce quality products. The sneaker industry is more labour intensive as compared to other industries. As a result, the players in the industry have adopted high degrees of outsourcing in trying to increase their profit margins within a backdrop of intensifying competition. Along with quality, this outsourcing option most importantly will provide productivity at the lowest rates possible. Because of theses advantages, I recommend that Nike can also follow this aspect beneficially. That is, by having an outsourcing arm and making it to follow stringent quality aspects, Nike can cut costs and importantly can incorporate the diversity program more optimally. As Nike is duty bound to absorb local talent in the outsourced countries, the outsourcing option is also optimizing its diversity program. 2.2 Output of the activities and methodologies that map the key business processes to the organisations objectives and functions The output of the activities that are mentioned in this report and the related methodologies can be evaluated by focusing on the certain long term objectives that can be achieved through the Nike’s diversity program. The first output or objective of its program should be to continuously test the potential of the employees, recruited through the Diversity program. That is, the main doubt that may arise regarding this program is whether these employees are recruited based on skill, knowledge, etc. Even though Nike’s recruiting team will only recruit diverse employees who are qualified, my suggestion is, they have to be tested continuously or at regular intervals on whether they are fulfilling their job requirements as a long-term objective. The next long term output or objective should be to analyze, all the direct and indirect benefits, Nike could get because of this program in the long-run - both image wise and profit wise. The final long term objective that can be created by Nike is, to optimize its outsourcing operations or outside operations. So, these objectives only form the three main aspects of Nike’s functioning and can be monitored in the long-run. 3. Analyse the factors which influence individual behaviour at work Nike through the diversity programs can bring in many dynamic people from different backgrounds, who can enrich the creativity and innovation part of their business. Importantly, as they will feel recognized, they will show creativity and hard work in a more optimal way. That is, people from minority and isolated groups will mostly feel secluded and despondent because of lack of opportunities, due to their lineage and leanings. So, when Nike recruits them, they will feel blessed and recognized. Thus, they will treat other employees or stakeholders favourably. Reference: bp.com. Diversity and inclusion. Retrieved April 23, 2008 from http://www.bp.com/subsection.do?categoryId=9015673&contentId=7028171 Lee, S. Inside Verizon: How Diversity Survived the Merger. Retrieved April 23, 2008 from http://www.adiversity.com/magazine/article.asp?ID=22005583 nike.com. Diversity. Retrieved April 22, 2008 from http://nikebiz.com/company_overview/diversity/learn_more.html Read More