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1 / 18 AIT-SOM │ November 15 th , 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol IHRM │The importance of T&D and its impact on employee performance in MNC‘s │ Lars Baier, Ariane Elverfeldt, Etienne Germain, Guillaume Laban, Christophe Ramamonjy-Ratrimo The importance of T&D and its impact on employee performance in MNCs ;a case study of P&G November 15 th , 2012 Asian Institute of Technology School of Management Lars Baier, Ariane Elverfeldt, Christophe Ramamonjy-Ratrimo, Jush Shresta, Aroonlod Udomphol

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Page 1: P&g grp prsntsn

1 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

│ Lars Baier, Ariane Elverfeldt, Etienne Germain, Guillaume Laban, Christophe Ramamonjy-Ratrimo

The importance of T&D and its impact on employee performance in

MNCs ;a case study of P&GNovember 15th, 2012

Asian Institute of TechnologySchool of Management

Lars Baier, Ariane Elverfeldt, Christophe Ramamonjy-Ratrimo, Jush Shresta, Aroonlod Udomphol

Page 2: P&g grp prsntsn

2 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Agenda

1 Why Procter & Gamble selection

2 Company Background

3 Local Operations

4 Training & Development

5 Conclusion

Page 3: P&g grp prsntsn

3 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Agenda

1 Why Procter & Gamble selection

2 Company Background

3 Local Operations

4 Training & Development

5 Conclusion

Page 4: P&g grp prsntsn

4 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Why are the Procter & Gamble Company a good example for International Human Resource Management?

#9 ranking on Fortune’s “Global Most Admired Companies”

#2 ranking on Fortune’s “Top Companies for Leaders” survey

#12 ranking on Bloomberg Businessweek’s list of “World’s Most Innovative Companies”

#13 ranking on the list of the Global 100 Most Sustainable Corporations in the World

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5 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Agenda

1 Why Procter & Gamble selection

2 Company Background

3 Local Operations

4 Training & Development

5 Conclusion

Page 6: P&g grp prsntsn

6 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Procter & Gamble are one of the biggest consumer foods companies in the world as well as a big employer.

Worldwide

Amount of Employees: 126,000

Worldwide in more then 75 countries

The portfolio have more then 50 different brands

4.6 Billion times a day customer consumers from the whole world are coming in contact with these brands

9/10 households have at least one product of P&G

P&G goal is to provide branded products and services of superior quality and high value that improve the lives of consumers

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7 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Procter & Gamble Company‘s history started in 1837 and is headquartered in downtown Cincinnati, Ohio, USA.

1837: Company founded by William Procter and James Gamble

1890: P&G was selling more than 30 different types of soap, including Ivory. The Company builds its first manufacturing facility outside the United States, in Canada

1988: The Company announces a joint venture to manufacture products in China. This is the Company’s first operation in the largest consumer market in the world

1993: For the first time in Company history, more than 50% of sales come from outside the U.S.

2005: P&G merged with The Gillette Company – following the acquisitions of Clairol and Wella earlier in the decade. With a portfolio of 22 billion-dollar brands and a market capitalization of nearly $200 billion

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8 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

The portfolio of the Procter & Gamble Company includes over 50 different brands which are mostly purchased all over the world.

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9 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Procter & Gamble increase Operations in Asia, Latin America and EMEA (in percentage of total amount).

42% 41% 39%

20% 20% 19%

15% 16% 18%

9% 9% 10%

14% 14% 14%

2010 2011 2012

EMEA

Latin Amrica

Asia

WesternEuropeNorth America

135 135

132

127

129

126

2007 2008 2009 2010 2011 2012

Total number of employee Foreign and Domestic Operations

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10 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Agenda

1 Why Procter & Gamble selection

2 Company Background

3 Local Operations

4 Training & Development

5 Conclusion

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11 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Procter & Gamble Thailand, Local operations: Key Facts.

Thailand

Established in Thailand: 1987

Employees: 900

Manufacturing plant: Wellgrow Industrial Estate

Managing Director: Khun Parinda Hasdarngkul

Over 95% of the products manufactured at the P&G plant are destined for export

Market a total of 19 brands

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12 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

P&G local operations focus on Innovation and local culture.

At P&G Thailand, they continually aim to recruit, reward, and advance local talents to be the leader of their business

P&G offers an 8 week paid internship over the summer holidays. they do not believe in giving you “basic job”. Their interns take on real projects that are vital to the growth of their business

Focuses on consumer understanding, innovation and investing in its people to drive future growth

ASEAN Marketing hub for Beauty and Fabric & Homecare and one of the largest manufacturing plants in Asia

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13 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Agenda

1 Why Procter & Gamble selection

2 Company Background

3 Local Operations

4 Training & Development

5 Conclusion

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14 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Procter & Gamble’s Training & Development

P&G invests heavily in Training and Developing its people in all facets of the business, including those employed at the plant in Bangkok, which is among the largest beauty care production sites in Asia

Conducts an average of 92 training programs per year for local employees

The growth and development of its people as being critical for sustainable growth

General Information

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15 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Case Success of Procter & Gamble

Process of Training and Development

of P&G

Selection

- Entry level 1 % of 400,000

- Personal Values match with organization culture and obviously Career Developing

- Target group is graduated students from successor in organization

- Line manager interview instead of HR

Continuously development

- Training Road Map center for each level and section

- Mentoring system -> sharing knowleadge

- CEO always visits training center.

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16 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

General Information

P&G Case Study – Build From Within

P&G’s Leadership Program and Proctoids

Training and Internal Reputation

Advantages and Success Factors for the program

Disadvantages

Leadership Program and Proctoids

P&G’s leadership program is called “Build From Within”.

Each of the top 50 jobs already has three replacement candidates lined up. (150)

A business school graduate is recruited at an entry level position (Proctoids).

They are then trained to work in different countries and businesses.

Discuss about business goals and their ideal next job.

Matching company goal and employee’s need countries

Training and Internal Reputation

Training center near to the CEO’s office for train entering new levels.

An executive’s willingness to train others ultimately determines who advances.

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17 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

P&G Case Study – Build From Within

+ Advantages and Success Factors Disadvantages

P&G rarely hires from outside, promoting talent from the inside

At P&G, less than 5% of hires come from the outside at a later stage

Maintaining a comprehensive database of its 138,000 employees. An employees’ performance (stars) are tracked carefully through monthly and annual talent reviews.

Loyalty

Lack of innovation

-

Procter & Gable Training and Development Program

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18 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Agenda

1 Why Procter & Gamble selection

2 Company Background

3 Local Operations

4 Training & Development

5 Conclusion

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19 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Conclusion

It motivate the employees for a better performance

Increased job satisfaction and moral among employees

Increased efficiencies processes, resulting in financial gain, enhanced company image, increased innovation in strategies and products

Teaching code of conduct and guidelines to employees (Harassment, Corrupcy etc.)

Transferring company’s culture and visions

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20 / 18AIT-SOM │ November 15th, 2012 │ L. Baier, A. Elverfeldt, C. Ramamonjy-Ratrimo, J. Shresta, A. Udomphol

IHRM │The importance of T&D and its impact on employee performance in MNC‘s

Thank you for your attention!

Asian Institute of TechnologySchool of Management

Lars Baier, Ariane Elverfeldt, Christophe Ramamonjy-Ratrimo, Jush Shresta, Aroonlod Udomphol