Nike Inc.'s Culture and Staffing Approaches | Free Essay Example

Nike Inc.’s Culture and Staffing Approaches

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Topic: Business & Economics
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Introduction

Organizations in their undertakings consider numerous aspects of their operations in a bid to grasp their goals and objectives successfully. Both internal and external factors play central roles in determining the extent to which a given company operates effectively. In this respect, aspects such as the organizational culture have significant implications on the perceptions of not only the workers but also the clients by satisfying their needs and services. The personality of the employees similarly influences the performance of the organization since their attitudes and behaviors towards the execution of tasks and relationships affect the extent to which the organization fulfills the expectations of the key stakeholders (Martin 2010).

Nike Inc. is one of the reputed multinational corporations that concentrate on products and services affiliated to footwear, equipment, apparel, and accessories. In this regard, the global presence of the corporation triggers an analysis of the key factors that are accountable for its success in the competitive global market. Thus, aspects like the satisfaction of employees and clients, management approaches, and challenges facing the organization require analysis for evaluation of the multinational corporation. Accordingly, this paper seeks to carry out a description of Nike Inc., its cultural analysis, the organization’s approach to staffing, and/or how it influences the performance of the organization. Further, identification of the challenges that implicate on human resource management will be considered before considering the application of the company’s approach to different types of corporations.

Description of the Organisation

In 1964, Phil Knight and Bill Bowerman founded Blue Ribbon Sports that acted as the mother company that gave rise to Nike Inc. on May 30, 1971. Headquartered in Oregon, U.S.A, Nike Inc. is an international organization that centers its nature of operations in designing, developing, manufacture, and global sales and marketing of footwear, clothing, equipment, accessories, and related services (Nike Inc. 2016a). The company’s trademark, “Just Do It” and the “swoosh” logo have been identified as key aspects that improve the company’s image. The products of the company have been associated with quality thereby preferred by customers in different regions of the globe. Specifically, Nike Inc. boasts as one of the largest and leading developers and suppliers of apparel and sportswear in the world.

A workforce of at least 44,000 individuals located globally facilitates the development, designing, and manufacture of the wide range of products classifying Nike Inc. as a key manufacturer of sports equipment. The corporation’s engagement in marketing and sales in the various global markets has earned it the driving seat in the sportswear and apparel industry with a value of $19 billion in 2014 (Nike Inc. 2016b). In an aim to satisfy the needs of its consumers, the company endeavors in the marketing of the brand through other platforms like Nike Pro, Nike Golf, Nike+, Air Jordan, Air Force 1, Nike Blazers, Nike Skateboarding, and Air Max. Besides the manufacture of sportswear, Nike Inc. utilizes the Niketown retail stores to boost its sales.

Nike Inc. Culture Analysis

Nike Inc. has continually developed a corporate culture that seeks to bolster team spirit and employee loyalty. In so doing, the company cultivates a culture of invention among its employees who purpose for the development of services, products, and experiences that fulfill the needs of today’s athletes in a manner that also develop solutions for the problems that could challenge the future generation (Nike Inc. 2016a). In this concern, Nike Inc. upholds the value of teamwork and diligence in a bid to satisfy the needs of the market through sustainable means.

Therefore, the corporate culture shows concern not only regarding the commitment of its workforce but also the satisfaction of its customers, especially in the sports sector. The company’s mission that upholds availing motivation and modernism to each team member in the world underscores the essence of innovation in the organization that has secured a global reputation as one of the major suppliers of clothing and sportswear (Nike Inc. 2016a).

The presence of the red swoosh logo in almost every corner of the organization’s premises as seen in the coffee shops, walls and screen savers underscore the essence of the trademark “Just Do It” that is, in the right way. Further, the main offices at Beaverton, Oregon underline the essence of embracing cultural diversity in an organization that values employees and customers from different cultural backgrounds. In so doing, the organization fosters an organizational culture that seeks to fulfill the expectations of culturally varied individuals that have a strong influence on the organization’s performance.

Furthermore, Nike Inc. regards its employees as “players” thereby emphasize the significance of team spirit in attaining the organization’s goals. Similarly, supervisors are liked to “coaches” that guide the teams towards the realization of success. In a bid of constantly providing solutions to the organization’s challenges, it considered meetings as “hurdles” that ought to be overcome in order to reach the finish line in the highly competitive market (Nike Inc. 2016b). Additionally, the ‘Just Do It’ mantra ensures that the organization not only focuses on product advertisement but also the creation of an image that is appealing to both the clients and the employees.

Moreover, Nike Inc. promotes a culture that encourages sporting activities thereby influencing the lifestyle of the workers. Additionally, the company circulates emails to its employees concerning the accomplishments of the athletes that it sponsors. Besides, the organization upholds two principles that emphasize integrity and competition. It encourages an individual to compete with himself or herself, rather than his or her social group. In this case, Nike Inc. seeks the harmonious coexistence of its workers in a way that enhances their performance.

The Personality Development Approach at Nike

The operations of Nike Inc. involve the inputs of employees who have different personalities that require harmonization in order to attain synergy in the team effort. Personality entails the attributes that make an individual appear unique from the rest. Similarly, the clients also have diverse personalities that could influence their perceptions regarding the organization’s image. Thus, Nike Inc. has devised several strategies that seek to cultivate personalities that uphold the organization’s culture in a bid to attain its goals and objectives. The initiatives devised to consider the essential factors like the environment, employees, and a culture that shapes up the behavior of the workers and clients.

In this concern, the Social Cognitive Theory as one of the personality theories would gain relevance in facilitating the understanding of approaches embraced by the organization. The theory upholds that the environment, individuals, and behavior influence each other resulting in the development of a given personality (Chew & Sharma 2005). Thus, observation learning takes place as an individual observes the undertakings of another persona and the reinforcements that emanate from such actions.

Through the evolving approach, Nike Inc. endeavors in building the capacity of its workforce with the expectation that the skills acquired will be shared and transmitted among the workers in the design, manufacture, and sales, and marketing of the various products and services. Since 1992, Nike Inc. has upheld a Code of Conduct that it expects the workers to embrace in a bid to advocate for ethical working practices (Nike Inc. 2016c). In so doing, the approach integrates the concepts of the Social Cognitive Theory since the environment influenced the people to act ethically.

In a bid to underscore the essence of the established Code of Conduct, the organization has intensified its monitoring section to ensure that the personalities of the key stakeholders comply with the competencies valued by the organization. Further, the establishment of worker surveys and career workshops aims at fostering unceasing learning communities within and outside the organization (Nike Inc. 2016d). Therefore, the social cognitive theory gains relevance since the environment at Nike Inc. favors the development of desired personalities concerning the observational learning, reinforcement mechanisms, self-efficacy, and emotional coping responses to the needs of clients and workers (Wilson 2011).

The Contribution of the Approach to the Performance of Nike

The approaches embraced by Nike Inc. in cultivating personalities that embrace the organizations’ values cannot be underestimated since they have recorded several positive implications on its performance (Knudsen 2013). Particularly, integrating the concepts of the Social Cognitive Theory to instill the values that support an organization’s culture through observational learning has resulted in positive outcomes. In this case, the “players” at Nike Inc. share a common interest that guides them towards the realization of pre-determined ends.

Additionally, expecting all the workers to uphold the stipulations of the established Code of Conduct ensures that they execute their tasks with integrity thereby improving the quality of the output. For this reason, the principle of initially upholding honesty before competing with oneself gains essence since the structures in the organization support the strategy. In 2012, the company amassed revenues of at least $24.1 billion thereby depicting the positive impacts of the approaches geared towards creating personalities that support the organization’s mission.

Further, the leadership style practiced at Nike Inc. demonstrates support for teamwork. The learning processes facilitated by regular workshops and employee surveys enhance continued personality and professional development thereby equipping the employees with the essential skills required for innovative operations. Consequently, clients have reported satisfaction with the products and services offered by Nike Inc.

HR Challenges at Nike

Over the years, Nike Inc. has faced several challenges in its human resources management. The areas that have encountered hurdles include noncompliance with the requisite standards regarding factory working conditions, health and safety, and the environment. Additionally, issues about labor rights, protections, and freedoms have affected the workers’ quality of life (Knudsen 2013).

The issue of fair remuneration of the workers in different factories has raised concern thereby undermining the motivation of the workforce. The issue has been attributed to the varying economic factors that affect aspects like inflation rates that in-turn influence the worker’s quality of life. Further, the problem of excessive overtime has subjected the human resource management of the contract factories to pressure since it disregards the stipulations of the labor laws. In this case, Nike Inc. has faced allegations of economically exploiting its employees thereby tarnishing its image. Additionally, some countries weaken the practice of free association. With concern to health and safety, some workers have been victims of hazardous events in the manufacturing plants owing to risks associated with electrical and chemical processes of production (Sutherland 2012).

To solve the HRM challenges, I would consider several approaches that ensure compliance with the required standards. I would prioritize the essence of conducting regular audits of the different contract factories to ensure that the operations safeguard healthy working conditions regarding wages, health and safety, and association. Auditing would enhance the identification of loopholes existing in the contract factories. Additionally, I would consider training the factory managers to enhance their skills regarding the management of human resources. The move would foster the managements’ adherence to the expected standards.

Adoption of Nike Inc. Approach in another Organisation

The strategies adopted by Nike Inc. could result in improved effectiveness of an organization in a different or similar industry. In this case, a company in the insurance industry could integrate the approaches executed by Nike Inc. to bolster its performance. Embracing a culture of team spirit and innovation would trigger collective and creative efforts that heighten the sales and marketing aspects of the insurance products and services. Further, adopting the continued learning processes facilitated by training, workshops and surveys would ensure that the organization equips its human resources with the relevant skills required to execute key tasks (Cummins et al. 2010). Moreover, this would ensure that the rights, freedoms, and protections of workers are upheld in thereby bolstering the performance of the organization’s labor force.

Conclusion

The organizational culture at Nike Inc. fostered by aspects like teamwork, and impactful mantra and innovation has been instrumental in influencing the impressive performance of the company since 1964. Focus on the development of personalities that support the organizations’ objectives and goals has significantly improved the perceptions of its employees and clients with regards to the integration of frameworks like the Social Cognitive Theory. However, challenges linked to labor rights, freedom, and protections undermine the performance of its human resource. The application of the organizations’ approaches would also bear desirable outcomes in the insurance industry.

References

Chew, I & Sharma, B 2005, ‘The effects of culture and HRM practices on firm performance: Empirical evidence from Singapore’, International Journal of Manpower, vol. 26, no. 6, pp.560-581.

Cummins, J, Weiss, M, Xie, X & Zi, H 2010, ‘Economies of scope in financial services: A DEA efficiency analysis of the US insurance industry’, Journal of Banking & Finance, vol. 34, no. 7, pp.1525-1539.

Knudsen, J 2013, ‘The Growth of Private Regulation of Labour Standards in Global Supply Chains: Mission Impossible for Western Small-and Medium-Sized Firms?’, Journal of business ethics, vol. 117, no. 2, pp.387-398.

Martin, J 2010, Key concepts in human resource management, SAGE, Los Angeles, LA.

Nike Inc. 2016a, Labour, Web.

Nike Inc. 2016b, Why Labour?, Web.

Nike Inc. 2016c, Workers and Factories, Web.

Nike Inc. 2016d, Strategy, Web.

Sutherland, A 2012, Nike, Wayland, London.

Wilson, R 2011, Fashion industry, Closer Look: Global Industries Rosen Central, New York, NY.