PADMASHREE DR. D.Y.

PATIL UNIVERSITY
DEPARTMENT OF BUSINESS MANAGEMENT

ASSIGNMENT ON

HR PRACTICES AT NIKE

SUBMITTED BY: IRAM USMANI (01049) SUBMITTED TO: PROF. SAPNA SURI

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
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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 than30,000 people worldwide. Nike and Precision Cast parts are the only Fortune 500companies headquartered in the state of Oregon, according to The Oregonian. The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman 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 (laterre named 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, conceal able 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
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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 dos * 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 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 resourcing 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 candidates 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 Active Recruiter 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 organizations such as Monster board to provide further job postings opportunities to attract candidates to Nike More conventional resourcing processes are also used including newspaper advertising and Search organizations 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.
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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 candidates 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. 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 Facilities 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 somewhat extra facilities to old employees and women who are conceiving 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
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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
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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 earths 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. No doubt 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 workers 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 companys 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. Labor 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.