Performance Appraisal and Employee Retention at NIKE Inc - Research Proposal Example

Name: Tutor: Course: Date: Executive Summary Robust knowledge of the merits ensues from effectiveness of employee diversity management. In order to exploit these benefits, efforts have been put to increase diversity in the corporate sector which has been on the pipeline for the last twenty years. On the contrary, with great efforts made, United States still experiences underrepresentation of minorities in senior-level managerial ranks in many organizations. These uninviting statistics in many cases are attributed to the organizational challenges experienced in attracting, promoting, and retaining diverse workforce. My focus in this study is on knowledge intensive firms especially NIKE Inc. The company has a diversity conscious strategy reinforced in the company guiding philosophy since it projects the power to inspire, influence, and on a daily basis challenge its employees. Their organizational strategy on diversity reflects the global strategy for human resources (HR) which aids in unleashing the potential in areas where business leaders are able to generate robust decisions to catalyze Nike’s business growth. Through observation and interviews with middle and senior level management of the organization reveals that its HR function supports and sustains growth goals. The objective of NIKE Inc is to generate value through leadership in every market since it has to operate and also express loyalty to its customers. The company should strive to create value by innovation, sharing knowledge, and best practice. This study will look into Knowledge management system as a appraisal tool to capture employee performance, productivity, skills and talents. These will be facilitated by the organization’s information technology department who will collect specific components of an employee's expertise and knowledge areas electronically. The method will develop online learning modules, feedback and overall judgment to the company. Employee retention and recruitment has come out as one of the fundamental challenges experienced by many employers currently. NIKE’s demographic trend of retaining aging population and workforce creates differences in lifestyle values across generations. Table of Contents Executive Summary 1 Part 2: Tool Creation, Visitation, and Analysis 6 Current diversity awareness analysis of NIKE Inc Company 8 Part 3: Training and Development 11 Part 4: Development of Performance Appraisal and Behavior Modification 16 Part 5- Employee Retention through Inclusion, Compensation, and Benefits 17 Works cited 19 Organizational Goals 22 Part 1: Research Diversity in the workforce continues to grow in leaps and bounds in many organizations globally, and specifically in the United States. The attention has been catalyzed by a globalized US economy. There is a trend fueling the growth of demographic diversity in the US population. Robust knowledge of the merits ensues from effectiveness of diversity management. In order to exploit these benefits, efforts have been put to increase diversity in the corporate sector which has been on the pipeline for the last twenty years. On the contrary, with great efforts made, United States still experiences underrepresentation of minorities in senior-level managerial ranks in many organizations. For instance, the CEOs of Fortune 500 companies have only four Hispanic, four black, and five Asian figureheads. This gives rise to an estimate of about 10% of corporate officers in Fortune 500 companies being the minorities. These uninviting statistics in many cases are attributed to the organizational challenges experienced in attracting, promoting, and retaining diverse workforce. My focus in this study is on knowledge intensive firms especially NIKE Inc. It will help assert the functions and domains of fundamental activities in the creation, acquisition, distribution, and packaging of knowledge. There are critical processes put in place to prohibit traditional barriers from hindering the racial minority progress in such environments from taking advantage of the diversity initiative. The study also presents a conceptual model (see Appendix I) and suggest salient characteristics into which workforce diversity initiatives ought to possess so as to be effective and underscore the process where such characteristics gives rise to increased representation of minorities and other significant measures of the effectiveness of diversity initiatives (Campbell & Lee 28). Through diversity initiatives, principal attributes of initiatives of the workforce diversity can ease the effectiveness of these initiatives. For diversity initiatives to attain and sustain success then there must be clear actions taken by the CEO to introduce such initiatives. The aforesaid diversity initiative attributes plays a role of moderation by letting the organization to attain intermediate outcomes. This comes in the structure of behavioral perspectives and norms that precede and mediate the effectiveness of such initiatives. It can be argued that achieving diversity initiatives to a sustained success requires that every element in this model adopt a symbiotic status. The definition of workforce diversity initiatives is pegged on the collection of activities implemented by NIKE Inc to increase the underrepresented minority presence (such as Asians, blacks, and Hispanics in this organization. The prevalence of workforce diversity initiatives in many organizations are attributable to challenges faced by organizations in attracting, retaining, and promoting underrepresented minorities. These challenges constitute limited pool of talent for minorities who are underrepresented. In addition, there are unchecked biases in hiring practices and processes that curtails the efforts of underrepresented minorities from entering into the organization. Furthermore, scanty career resources limit the underrepresented minority progression once in the firm. Part 2: Tool Creation, Visitation, and Analysis On a visit to NIKE Inc offices in Beaverton, Oregon in May 2013, it was established that the company sits on a 200-acre farm with over 2300 employees. The company has a diversity conscious strategy reinforced in the company guiding philosophy since it projects the power to inspire, influence, and on a daily basis challenge its employees. Their organizational strategy on diversity reflects the global strategy for human resources (HR) which aids in unleashing the potential in areas where business leaders are able to generate robust decisions to catalyze Nike’s business growth. Through observation and interviews with middle and senior level management of the organization reveals that its HR function supports and sustains growth goals. They treat diverse employees as partners in global leadership so as to ensure evolution of an organization that ensures operational and functional excellence, supports all of its brands, and lays out the plan the cost and size of its global workforce. By the end of 2011, Nike had employed over 38,000 people spanning six continents. It anticipates an increase of about 5,000 employees and 15 percent when compared to the year 2010. It was found that employees of this organization are actively involved in shaping its journey towards sustainability. In 2005 alone, the company employees engaged in an effort focusing on what ideally the outlook, roles and the future of Nike should be depicted. During the study, diverse employees were challenged employees through brainstorming sessions and group exercises to describe how the future look like and how they would integrate as a diverse workforce. The study involved bringing in external voices and performing a scenario planning of diversity consciousness. The study also created a process that brought out a set of scenarios in a shared ownership that points to single conclusion. This implies that the modalities of doing business at the time may not serve them in a future globe. It was learned that the diversity in employees provided great insights during the exercise. It helps to mold the business approach towards sustainability and enhancing diversity of employees in their roles, functions and delivery (Borman 43). The diversity of employees in NIKE Inc has helped in addressing change since the nature of Nike’s business is pegged on change. Today’s consumers are continuously evolving in what they anticipate, and it is common knowledge that companywide employees at all levels and diversity makes not only quick, but wise decisions that are fundamental for its success. Enhancing the capabilities employee diversity was well brought out through probing the right questions, evaluating learning opportunities, and constant business needs re-thinking. The figure 1 below shows employee diversity in the US economy and their contributions to the inclusion and retention strategies Source: US Employment Bureau The numbers above help to reflect the profile of US work force, where the work entails focus on diversity and greater priority on developing an inclusive culture that leverages on the mentioned diversity. It should generate a wealth of experience and talent across the organization. Current diversity awareness analysis of NIKE Inc Company NIKE Inc has a strong commitment to diversity going past its stakeholders to the work and treatment employee base. The U.S. Supplier Diversity Program is meant to strengthen The U.S. of workforce especially from women, disabled and minority groups and sexually oriented minorities. To enhance employee diversity, NIKE, Inc. teams with many other organizations in national and regional contexts to ensure employment and protection of minorities. These constitute the Women's Business Enterprise National Council, the Oregon Association of Minority Entrepreneurs, the National Minority Supplier Development Council. They assist in expansion of minority and woman employment in this state. This program gives NIKE, Inc. a great visibility to women and minority employees to offer their services at competitive prices, and a chance to grow their personal plans (PACT Training Resource Guide). From the study and data obtained, it can be seen and expected that a significant progress in this area of employee diversity. In order to point out the power of minorities and women in productivity, an assessment of the share of financial and business impact on NIKE Inc was carried out (Corley 54). The amount of addressable spend was evaluated on indirect and direct employment. The Human Resource (HR) department is able to directly influence worker productivity by balancing the proportion of employees on diversity inclusion program. It is known that NIKE, Inc. spends approximately $37 million annually in the U.S. on remuneration while $1.4 billion is taken as addressable spend. The US employee diversity program strongly promotes its employees in a subcontract process specific to women and minorities. Consequently, this program has seen an estimated $17.5 million for a sum of $88 million in diversity programs. The period starting 2007 saw Human Rights Campaign name NIKE, Inc. as the top company for minority workers. The Fulfillment Corporation of America nominated it as Diversity Supplier of the Year to which it has been rated for three consecutive years by diversitybusiness.com. The America's leading organization for multicultural employment opportunities, bestowed NIKE Inc as the Corporation of the year according to the Oregon Association of Minority Entrepreneurs. The Northwest Minority Business Council awarded the organization with the Pioneer Award. This was listed in the 142 American companies touted as the best environment for women and minority groups by the Human Rights Campaign Foundation (HRCF). The figure below shows the NIKE Inc employee totals by ethnicity Source: US Employment Bureau Source: US Employment Bureau Part 3: Training and Development The objective of NIKE Inc is to generate value through leadership in every market since it has to operate and also express loyalty to its customers. The company should strive to create value by innovation, sharing knowledge, and best practice. It is important that is carries out its businesses depending on trust, enduring relationship, and perseverance. A training program should be established to produce highly skilled, motivated and disciplined workforce. In the hierarchical model, various levels of employees from shop floor to strategic level of management should have routine training and development to impart skills relevant to their roles and responsibilities (Cederblom 102). Since relationships between employer and employee is highly cordial. The NIKE Inc family should be healthy and increasing in strength on daily basis. With a workforce of about 2300 people the company can run a training program on various knowledge areas. The CEO and other senior level members can have three quarterly sessions on strategic planning, networking and diversification. The middle level managers should also have a four quarterly sessions on production, marketing and procurement (Cawley et al 67). The shop floor employees can be taught on a fortnight basis within the company on how to increase productivity and reduce on absenteeism, workplace injuries and accidents. More emphasis should be placed on training that takes full skills and talents of minority groups especially in 400 production employees in diverse capacities and levels. With about strong 50 sales personnel, NIKE should have a separate training of the direct sales representatives and other sales staff on how to increase the market share and boost sales figures of the organization. In the nutshell, the diversity and inclusiveness of the workforce should help in contribution and active involvement in achieving and establishing organizational goals (Cardy 56).  The global economic recession of 2009/2010 did not spare NIKE Inc. There was an immense drop in profits for this financial year prompting the Top management to appoint a team that evaluates the situation and recognize the issues associated. A general evaluation brought out the observations below. 1. Knowledge of diversity in employment as compared to the country’s standards but a disconnect in implementation is a limitation. 2. Increasing cases of employee turnover and absenteeism. 3. Customer complaints go unevaluated while action has not been taken to remedy the complaints cited by management to those on production floor. 4. Quality department observes that there are numerous production defects not considered and consequently a great waste to expensive raw materials. 5. The sales team are not up to the task of meeting targets set by the management. Staff Training and Development in the organization will be relevant in obtaining experienced and well-trained people who undertake activities on daily basis. Given that some potential or current job occupants do not meet the requirement, training is critical. In the present scenario it is the case (Karla 34). It is vital to develop skill levels on all the employees from shop floor to tactical levels so as to increase the adaptability and versatility of employees. In consideration of issues suggested by the research Team, it is crucial to foster employee development and training. The global space is rapidly changing hence employee training stands as an activity and a learning process that entails the knowledge acquisition, skill sharpening, development of concepts, reinforcement of rules, or a drive towards attitude change and behaviors to bolster the employee performance. The training to NIKE Inc employees will be an educational process where people learn new information, reinforce existing skills and knowledge and re-learn. Most significant is the provision of time and opportunity to think and take consideration of any new options important in improving their work effectiveness (Beatty et al 123). The purpose of training NIKE employees is to develop an impact that goes beyond the end training time. The attention is on developing specific action commitments and steps that directs people’s awareness on integrating their new gained skills and work ideals. Training to these employees can be provided as skill growth for individuals and groups. Trainings constitute learning of content and presentation as a way of improving workplace behaviors and enhancing skill development. Training and development will hone organizational activities to better individual performance and exploit successes of organizational group settings.   The training proposed for this study will involve activities to enhance training, education and development. It will build a team of highly efficient and effective employees. Constant training of these employees means that they will be well motivated and develop great self-esteem and confidence. Training at individual level to be thrice a week so as to: 1. Raise awareness of one’s beliefs regarding others and oneself. Bring attention to assumptions, beliefs, consequences and employee behaviors 2. Tackle unconscious and conscious bias 3. Evaluate behavioral trends and their outcomes 4. Grow skills in relationships management within the changing customer base and workforce Training at a group level to be carried out monthly: 1. Develop the understanding of the diversity on human dynamics influence that includes non-verbal and verbal communication 2. Point out to behavior patterns and different beliefs concerning work-life balance, time management, conflict resolution, work ethics, and group co-existence against personal contribution 3. Debate on issues surrounding racial loyalty, ethnic or religious group affiliation, and the work group versus the family 4. Utilize skills on conflict resolution to lower diversity-related differences 5. The organizational level of training should be done twice in every quarter to: 6. Provide an inclusive definition of diversity in the workforce that extends employee understanding outside gender and race while removing notion of non-diverse against diverse persons 7. Resolve the imperativeness of diversity of the workforce in business 8. Link specific business objectives and goals to diversity of the workforce 9. Raise the understanding of the workforce diversity relationship and performance management, quality improvement, customer service, marketing, and other areas of business 10. Reinforces and reviews principles of the organizational, review policies and optimize on practices that exploits the assets of the changing workforce 11. Resolve retention and recruitment challenges 12. Resolve promotional and developmental opportunities seen the discourse dynamic workforce Regarding external levels, training: 1. Give a skeletal historical outlook to serve as a training context 2. Cite distinctiveness of workforce diversity, affirmative action, managing diversity, and EEO laws 3. Resolve the diverse workforce relationships and dynamic customer base 4. Evaluate best practices drawn from other organizations Part 4: Development of Performance Appraisal and Behavior Modification This study will look into Knowledge management system as an appraisal tool to capture employee performance, productivity, skills and talents. It will also assess the personal development plans as well as continuous professional development. These will be facilitated by the organization’s information technology department who will collect specific components of an employee's expertise and knowledge areas electronically. The method will develop online learning modules, feedback and overall judgment to the company. The method of appraisal and results will influence the company’s quest to modify individual behavior of its employees through negative and positive reinforcement. The study will examine how employees view their performance with regard to rewards so as to develop strategy for increasing performance behavior (see Appendix II). Knowledge management as an appraisal tool will be used to collect employee's specialized knowledge and redistribute, organize, and share with the organization. This aspect of knowledge management constitutes company employee in specific knowledge areas like computer systems. The employee demanded to write a presentation or training manual on certain computer system which can be later distributed to the organization where others can also benefit from the knowledge. From a traditional perspective, behavior modification came as a collection of behavioral change techniques introduced in psychology to decrease or increase the frequency of behaviors. Behavioral modification is the analysis of triggers of some rewards and behaviors experimented on animals. It also includes the alteration of the behavior of an individual by way of negative and positive reinforcement. The NIKE Inc employees will be studied to evaluate how they perceive their performance with regard to rewards. The method of workplace behavioral modification is keen on identifying the frequency of some performance related behaviors. It also establishes what triggered or started that specific behavior. Upon identification of this behavior, the middle level or strategic level manager can establish if they intend to create a different trigger keen on improving employee's performance. The management team may also wish to sustain the present performance through appraisal and rewards. Behavioral modification determines how to best create employee performance to align the organization in the sense desired by the management (see Appendix III). Knowledge management provides sufficient skills and training to employees for them to feel valuable to the organization. Through training employees and improving their knowledge, skills, and behavioral approaches to work, an organization can evolve and improve. Part 5- Employee Retention through Inclusion, Compensation, and Benefits Employee retention and recruitment has come out as one of the fundamental challenges experienced by many employers currently. NIKE Inc as an organization cognizant of employee diversity needs to develop and execute effective human resource ideal to recruit, select and retain employees needed in the current competitive global marketplace. Though there are labor challenges globally, the jurisdictions of NIKE Inc should overcome labor market challenges. Its demographic trend of retaining aging population and workforce creates differences in lifestyle values across generations. There are obvious contributing factors to seasonality of the workforce but compensation or remuneration should be pegged on skills, talent and level of education. Differences in pay should not be exhibited in terms of race, religion and other affiliations. The diversity inclusion and labor harmony is vested on an organizations policy of equal opportunity. Moreover, the long-term impacts of inclusion will be increased market share and improved quality of life for all employees (Arvey & Murphy 36). Reputation is key and bound to be a major player in this technologically advanced and globalized age. The labor market is rapidly expanding the industry sectors and other structural changes. Ensuring inclusion during recruitment goes a long way in screening, attracting, and selecting qualified personnel for all portfolios in the organization. The costs linked to employee turnover are numerous like loss of customers, business and waned morale. It will be difficult to recover the initial costs of screening, interviewing, verifying references and credentials, training and hiring of a new employee. The indirect and direct costs connected to employee turnover ranges from 70 and 200% of salary. The research merits the diversity inclusion in recruitment, compensation and retention through enticing employees with benefits and rewards. This will be enhanced through a Labor Market Framework document. The outlook of the study prefers a labor force that meets sectoral changes, prospective economic trends and prepares for projects likely to show significant outcomes on current programs and resources. Works cited Arvey, Reeds, & Murphy, Kraus. Performance evaluation in work settings. Annual Review of Psychology, 49, 141-168.2004. Print. Beatty, Richard, Baird, Larry, Schneier, Eddy & Shaw, Darew. Performance, Measurement, Management, and Appraisal Sourcebook. Amherst, MA: Human Resource Development Press.2004. Print. Borman, Walter. Job behavior, performance, and effectiveness. In M. D. Dunnette & L. M. Hough (Eds.), Handbook of industrial and organizational psychology(vol. 2) (pp. 271-326). Pal Alto, CA: Consulting Psychologists Press.2001. Print. Campbell, Don & Lee, Curtis. Self-appraisal in performance evaluation: Development versus evaluation. Academy of Management Review, 13, 302-314.2008. Print. Cardy, Roy. Performance management: Concepts, skills, and exercises. Armonk, NY: M. E. Sharpe, Inc.2003. Print. Cawley, Bans, Keeping, Lesley, Mars & Levy, Peter. Participation in the performance appraisal process and employee reactions: A meta-analytic review of field investigations. Journal of Applied Psychology, 83, 615-633.2008. Print. Cederblom, Daniel. The performance appraisal interview: A review, implications, and suggestions. Academy of Management Review, 7, 219-227.2002. Print. Fisher, Seagal. The manager’s pocket guide to performance management. Amherst, MA: HRD Press.2001. Print. Karla, Thorpe. Conference Board of Canada: Harnessing the Power: Recruiting, Engaging, and Retaining Mature Workers (pg. 1). 2006. Print. Judy Corley, Judy Lace. Labor Market Initiative for the Yukon Prepared for: Whitehorse Chamber of Commerce. Corley Consulting Inc. 2005.Print PACT Training Resource Guide. Designing Effective Workforce Diversity Training Programs. PACT training. 2006. Print. Appendices Appendix I Conceptual model on the Effectiveness of Workforce Diversity Initiatives Appendix II: Training and development Organizational Goals a) Be trained to define and appreciate diversity and other associated terms. b) Be trained the merits and complications of workplace diversity. c) Be trained on self-awareness assessment of diversity. d) Be trained on the laws that safeguard against diversity discrimination. e) Be trained to execute the four diversity cornerstones. f) Be trained to establish and promote personal differences. g) Be trained to recognize biases and stereotypes. h) Be trained to face negativity and subdue diversity obstacles. The interview schedule prepared was intended to discuss the need for diversity training in NIKE Inc organization, and it was helpful in addressing the following questions: 1) Kindly provide the demographics of NIKE’s client/ customers base? 2) Provide the number of languages spoken by your employees and customers/clients? 3) Give the number of countries in which the organization operates? 4) Provide the amount in costs of employee turnover in the company? 5) Give the amount spend by company yearly on recruitment? 6) To what extend has harassment/ discrimination suits cost the company in the past year? 7) How seldom does inter-group differ? 8) State if there is a prevalence of high turnover level among some employee groups? 9) Assess if there are benefits and policies enticing to prospective diverse recruits? 10) State if the company is losing top talent just because employees do not feel valued, heard or included? Appendix III Behavioral Expectations Effective performance management systems give behavioral standards that evaluate what is anticipated by of employees in major competency portfolios. In the course of performance planning process, managers have to discuss and review behavioral standards with employees. It is significant for managers to ensure employees comprehend how the standards of behavior relate to their explicit jobs. Results Expectations The goals or results to be attained by employees need to be associated to the company’s goals and strategy. The employee’s needs in development should consider the goal setting process. Development goals targeted will improve present job performance or develops career growth. The goals of NIKE Inc employees should be tied to; Q: Finish project “A” within “B.” Q: Increase sales volume by 10%. Q: Mentor successfully employee “A” to hone skill “B.” Read More