Organisational Culture and Behaviour of Nike - Case Study Example

Organisational Behaviour

Beyond a reasonable doubt, it is safe to claim that Nike is one of the most popular companies in the world with an effective managerial approach. Apart from this, it is worth mentioning that the company pays a notable attention to choosing the most appropriate corporate as well as business strategies to improve its overall performance, the quality of working conditions, meeting employees needs. In spite of all those above-mentioned, it needs to be pointed that Nike Inc. also faces a number of challenges, which have to be properly addressed. Therefore, the main objective of this paper is to briefly describe the company, evaluate its organisational culture, managerial approaches and define the main problems and key challenges it faces regarding the management of human resources.

Description of the organisation

To start with, Nike Inc. is “an American multinational corporation, the main field of occupation of which is designing, developing, as well as manufacturing the footwear, sports apparel, equipment, as well as accessories” (Newell, 2015). The main office of the brand is located in Oregon, Portland metropolitan area. To be more definite, Nike Inc. not just a well-known company, it is one of the largest world’s suppliers of athletic shoes and sports apparel. Apart from this, it Nike Inc. employs more that 45,000 people worldwide. Based on this information, it is safe to claim that in order to aspire and motivate such quantity of the employees, the company is constantly working on improving its organisational culture and managerial approach to Human Resources.

Talking with regard to the product line of Nike Inc, it needs to be mentioned that it includes such products as running, basketball, cross-training, outdoor activities, tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic, auto racing, other athletic and recreational uses products.

Organisational Culture of Nike

Talking with regard to the organisational culture of Nike Inc., it needs to be pointed out that the brand has clear mission and vision statements, and is trying to do everything to improve its leadership style. For instance, according to the corporate website of Nike Inc., the main vision statement of the organisation is “to foster a culture of invention. The company creates products, services, and experiences for today’s athlete while solving problems for the next generations” (NA, 2016). In its turn, the mission statement of Nike Inc. is defined as to “bring the inspiration and innovation approaches to every athlete in the world” (NA, 2016). Interestingly, the company defines an athlete as every individual who has a body so its mission statement is relevant to practically every person in the whole world. The others fact, which is worth to be mentioned regarding the corporate culture of the American brand lies in the fact that it is directed in “creating a strong sense of purpose and motivation among the employees which is responsible for its excellence and progress” (Locke, 2007).

In addition to all those above-mentioned, to build and maintain a strong corporate culture, Nike Inc. “is intensely aware of its own history and story, and works to keep employee conscious of it” (Nisen, 2013). One of the key elements of Nike’s corporate culture is the attitude of secrecy and exclusivity around the projects. The company uses such an attitude prominently in its marketing as well as the public image as well (Nisen, 2013).

The major personality traits relevant to Nike

In order to improve the organisational behaviour of the employees and the overall performance of the company, Nike pays a lot of attention to the leadership style within the organisation. To be more specific, Nike’s “top management’s leadership style can be characterised by the team management approach” (Locke & Romis, 2007). Therefore, this particular leadership style leads to relationships of trust and respect. It is worth mentioning, to properly treat each employee within the organisation, Nike Inc. has developed a corporate culture rich with employee loyalty and team spirit. In addition to this, the company emphasises two major principles how it players (workers) should work. Those above-mentioned tenets include honesty and competition. Interestingly, by means of encouraging the competition company implies “to compete with yourself, not your colleagues” (NA, 2016).

Also, to properly treat the employees and increase their loyalty, Nike Inc. has a few labour initiatives, which positively affect its overall organisational culture. Apart from this, the company pay a lot of attention to its job design process. To be more definite, “Job design at Nike is very much hand in hand with the recruitment and selection processes” (Nike report, 2011). This means that Nike employs those applicants that best fit the job description. The explanation of this lies in the fact that such an approach provides Nike Inc. with an opportunity to decrease employees’ dissatisfaction and a low turnover rate.

The other thing, which is worth mentioning in terms of Nike’s HR department lies in the fact that the company “has many positions that are crucial and they must all be designed correctly according to the employees assets and deficits, they must all be able to follow the policies of the company” (Locke, 2007). In addition to those above-mentioned, to improve its recruitment and selection processes, Nike Inc. “has updated their technology by using the Lumesse Talent Link, a team of 11 recruiters in China and over 15 agencies will work with an automated, SAS-based recruitment system to better screen, select and manage a large volume of applications through a highly standardized recruitment workflow” (Debora, 2002).

Organisational approach to encourage the employees

In spite of the fact that Nike Inc. is one of the most desirable places to work in, the company does not underestimate the opportunity to encourage its employees to contribute to the organisational performance. To be more specific, the brand’s motto ‘just do it’ “applies to employees’ meditation as well” (Debora, 2002). For instance, “the company is one of many big businesses incorporating meditation practice into their workplace” (Debora, 2002). Therefore, all the employees of the international giant have access to a number of relaxation rooms, which they use to take a nap or just take a rest. As a result of such an approach, the employees feel that the company is taking care of them and trying to do everything possible to improve the working conditions. Hence, it encourages workers and motivates them to perform better.

Apart from this, “Nike Corporation global strategy for human resources (HR) is designed to help unleash the potential across every area of their business by enabling leaders to great decisions that, in its turn, contribute to Nike’s growth” (Newell, 2015). Therefore, Nike’s HR function is developed to ensure operational as well as functional excellence, and plan the size and cost of their global workforce. Talking with regard to particular positions, it needs to be pointed out that managers within the company are treated as “the role models who inspire their teams, live the passion of Nike Corporation and promote creative environments for best thinking and work” (Newell, 2015). Therefore, based on the above-mentioned information, it is safe to claim that Nike pays a lot of attention to the commitment to the workforce, which includes “enabling managers and leaders to be levers for accelerating the rapid growth of the company” (Debora, 2002). Apart from this, Nike constantly invests in the training as well as development opportunities for all the managers and leaders within the organisation. This particular approach helps to properly treat the employees and contribute to developing employees’ talent, energy, personal skills and abilities, etc.

Also, to encourage employees to do their best and increase their performance, “Nike celebrates and rewards successful employees results by means of excellent benefits and rewards” (Locke & Romis, 2013). To be more specific, the company has a properly developed competitive total compensation plan, which in its turn includes benefits and advantages that provide all the employees, despite their position with the opportunity to stay fit, “ensure the wellness of their families and create a positive working environment” (Nike Annual Report, 2013)

The other thing, which is worth to be mentioned within a framework of this paper lies in the fact, that despite the fact that Nile Inc. is a multinational corporation with a number of different geographical locations, “each of them provides for variable health coverage, fitness center memberships, time off, retirement savings and more” (Nike report, 2011). Those above-mentioned range of benefits includes “health insurance, life and accident insurance, retirement savings plan with a company contribution, employee stock purchase plan (15 percent discount), paid vacation and holidays, paid sabbaticals, product discounts, onsite fitness center/fitness discounts, transportation allowance/discount, tuition assistance” (Nike report, 2011).

The Key Challenges Nike faces in regard to the management of HR

As it has already been mentioned in the previous paragraphs of this paper, Nike Inc. is one of the most popular as well as desirable places to work in. In spite of this, it also faces some challenges regarding the management of its Human Resources.

To start with, the company has some international labour problems. To be more specific, “for a long time Nike has been known for its habit of sourcing the products in factories/countries with the low wages, poor working conditions and human rights problems were rampant” (Debora, 2002). As a result of such policies and strategy, the firm is currently facing serious issues “involving underpaid workers in Indonesia, child labour in Cambodia and Pakistan, as well as poor working conditions in China and Vietnam” (Locke & Romis, 2002).

The other type of international problems of Nike is the issue of wages. It is worth mentioning that “labours in developing countries are generally paid very small wages that are mostly smaller than the workers effort and final prices of the good they produced” (Debora, 2002). Therefore, in spite of the worker protection legislation, developing countries have a high level of corruption, which makes all the laws essentially useless.

Apart from wage issue, Nike Inc. is widely criticised by international organisations for its child labour involvement. To be more definite, “Nike’s involvement towards child labour in Pakistan during 1990, which was implemented clearly to reduce the cost of labour has happened to be immensely damaging for the brand image” (Boggan, 2001). As a result of such an objective to minimise the cost and earn the highest amounts of profit, a lot of people nowadays consider that Nike Inc. hesitates the international labour laws. Therefore, the image of the brand in developing countries is considerably weaker in comparison with the developed countries.

To face these challenges, Nike should pay more attention to its code of ethics and emphasise its important for the business. Therefore, the company should implement such principles of conducting the business as managing the practices that respect the rights of all employees, minimizing the impact on the environment, providing safe as well as healthy workplace for all the employees despite their location, promoting the health and well-being of its employees. Apart from this, the company should start paying more attention to social responsibility. Such approach will significantly improve the image of the brand or will attract the attention of new investors.

Current position of the company

Talking about the current position of the company, it is worth mentioning the Nike is one of the most popular and influential international corporations. Interestingly, despite the fact that the company was accused of using a child labour to reduce the cost of the manufacturing process of its products, nowadays it is well known for its clear and socially responsible approach to the way of conducting a business. According to the official website of Nike Inc., “sustainable innovation is a catalyst for revolutionizing the way we do business and an opportunity that has been integrated across our business in policies, processes and products” (NA, 2016).

Apart from all those above-mentioned, the organisation also pays a notable attention to its performance management. To stay competitive on the market, Nike Inc. has developed special approach to its performance management, which include “coaching to inspire individuals and teams, acquiring managing and development talent, special rewards and benefits, health and safety” (Debora, 2002). Therefore, based on the analysed information, it is safe to claim that company has a strong position within its industry. In spite of the increasing competition, it is still one of the most desirable places to work in. Therefore, it is reasonable for the company to continue using its corporate as well as business strategies and constantly improve its HRM techniques.