An Introduction To The Manufacturing Industry Commerce Essay

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Four billion times a day, P&G brands touch the lives of people around the world. They have one of the largest and strongest portfolios of trusted, quality, leadership brands. At P&G, the people who develop and build these brands are the foundation of their success.

Established in 1837, Today, P&G markets almost 300 products to more than five billion consumers in 140 countries, Pakistan being one of them. Procter & Gamble started its operations in Pakistan in 1991 with the goal of becoming the finest Global Local Consumer Goods Company operating in Pakistan. Since the inception of P&G Pakistan, they have always seen committed to business growth, consumer satisfaction and community development and it's all due to their committed base of employees, customers, vendors, stakeholders, and above all, consumers, that today they are one of the most thriving operations in Pakistan.

Procter & Gamble started its operations in the country in 1991, marketing a range of consumer goods products including 13 brands comprising shampoos, detergents, soaps, baby care, feminine protection, and Vicks and snacks products. The company, which serves over 5 billion consumers in 140 countries worldwide and markets more than 250 brands, produces bar soaps and repacks bulk shampoos and Pampers brand of diapers into sachets and smaller packs respectively at its Hub plant near Karachi.

Almost all the products marketed by P&G here in Pakistan have been successful to become a household name: Head & Shoulder and Pantene shampoo, Ariel detergent, Pampers diapers, Flex hair conditioner, Vicks menthol drops and Vapored, Always feminine protection napkins, Oil of Ole, Clairol skin care, Safeguard and Camay bar soaps. P&G's stress on Research and Development has helped them develop products which enjoy inherent edge over their competitors.

Pakistan's manufacturing sector accounts for about 25% of GDP. Cotton textile production and apparel manufacturing are Pakistan's largest industries, accounting for about 51.4% of total exports. Other major industries include food processing, beverages, construction materials, clothing, and paper products. Manufacturing sector growth has slowed in the last 2 years due to energy shortages and capacity constraints. However, the sector is forecast to grow 5.5% for FY 2010. Despite government efforts to privatize large-scale parasternal units, the public sector continues to account for a significant proportion of industry. The government seeks to diversify the country's industrial base and bolster export industries. Net foreign investment in Pakistani industries is only 0.5% of GDP. Pakistan's search for additional foreign direct investment has been hampered by concerns about the security situation, domestic and regional political uncertainties, and questions about judicial transparency.



In P&G the whole HRM process is followed and they have all the sub departments of HR like Recruitment, Selection, Orientation, HRD (Human Resource Development), Performance Management, Compensation & Benefits. They have very flexible and friendly environment, with no discrimination over designation and position, they have no formality over calling.


Workforce planning is one of the important activities in their business as Mr. Sheraz told us that it starts with analysis of the strategic position of the business. The result of this analysis is then used for the forecast of the required demand for employees by the company and how they are likely to be supplied. The final stage involves the creation and implementation of a human resources plan which aims to deliver the right number of people at right place in the business.

Their staff has been well informed about safety and health issues in the workplace. Risks to employee's health and safety from work activities are properly controlled, whereas they also organize health and safety programs.

P &G has a very good and comfortable work environment. To keep their employee motivated and dedicated and they provide several job incentives and recreational opportunities to its employees as well. They have flexible working hours i.e. 8 hours a day with no restrictions over time limitation like you have to be present 8 hours at the workplace whether you come early in the morning or go late at night. Their lunch break timings are from 12:30-2:30 and they provide a wide variety of delicious meal for their employees within the premises of organization.


They do a proper job analysis before recruitment and it is done by observation, individual interview and structured questionnaire methods which ultimately give the solution to job description, job evaluation and job specification.


The P&G Human resource process is done in a formal way which includes following steps:


P & G accumulate the pool of required candidates through two ways internally as well as externally. 80% of the recruitment is done through the fresh management trainees and 20% is done by on-line sources. As told by Mr. Sheraz their recruiting efforts target universities all over Pakistan and are aimed at bringing in people with different leadership and thinking styles. Today, their organization draws from more than 30 schools and universities.


P&G consider external sourcing important in searching a job candidate. The idea behind external sourcing is to bring new blood in organization further an employee with new innovative skill and ideas can help organization to achieve its goal. As far as online sources are concerned the jobs at P&G can be searched at

P&G do external recruitment by going to the universities campuses only and they do not use advertising for the purpose of recruitment. Their whole recruitment procedure is done on-line on their website. They hire the new freshly graduates mostly as a management trainee after they complete their internships successfully, they hire the capable candidates from those trainees and they develop them according to their culture and environment. They do not prefer experienced people as its quiet difficult to train them and adjust them in the company's culture.


P&G uses online assessments to measure skills and accomplishments that generally do not emerge from interviews. These assessments are critical as they help determine if it is equally beneficial for you to continue through the hiring process.


It is done through filling the vacant positions within the organization by the promotion of employees at different levels of hierarchy.


Selection process starts at the time of recruitment as they select the internees when they are doing campus recruitment, all the interviewing and screening procedures are done at this time. P& G management strictly avoids discrimination at time of selection. They provide equal opportunities to the applicants. They do not give importance to any specific university or personality traits. Rather they believe giving opportunity to everyone. Whoever fulfills the job requirements and is capable of getting the job, is hired. Their screening process includes:


In this step they are shared with the job description and the employees have to fill an application form which includes detailed information about the new employee. After that they are required to attempt an employment test which is of two types:

Reasoning Screen (Online):

Depending on your desired position you may be asked to complete the Reasoning Screen. The Reasoning Screen measures your cognitive ability. This is important because the nature of our work is complex and continually changing.

Reasoning Test (In Person):

Depending on your desired position you may be asked to complete our paper-and-pencil Reasoning Test.

The test is delivered on campus or as a part of your final interview. This test measures your reasoning skills using numerical, logic-based & figural reasoning type questions.


They do not need to do the background investigation as they know all the information of a fresh graduate trough university sources. As most employed people are internees so they know all the information about them. But in the case if someone is hired from outside the only thing required for background investigation is their ex-employment letter. They have an online system known as Success Drivers Assessment (Online) which assesses your background, experiences, interests, and work-related attitudes and measure your compatibility against P&G competencies for defining successful job performance.


The interviews are done by two methods:

Initial Interview:

These are the behavioral-based interviews to get to know about the applicant. What makes him tick? What have he accomplished so far? It also give opportunity to the candidate to find out all about P&G. P&G believed two-way communication starts from day one.

Final Interview:

In addition to behavioral-based interviews, P&G go into greater detail around the skills and capabilities of the candidate, taking place either on campus or on-site at P&G, which also give him opportunity to get a more in-depth understanding of P&G's

unique culture, values and endless opportunities.


At P&G the medical examination is done for the selected applicants in order to know that they are fit for the particular job or not.

After these all process they are hired as internees who are approximately equal to permanent job offering. As soon as their internships are completed successfully they are welcomed in the organization as management trainees to be trained and developed according to the company's requirements.


The orientation is done twice, firstly at the time of internship which is quiet formal, and secondly at the time of joining the organization which is informal.


Formal orientation is done after selecting the internees as their internship begins. All the internees are collectively given the familiarization and knowledge about the company policies, rules, mission, vision, and work unit and organizations culture. It is the responsibility of an HR manager to conduct the whole orientation program. In this program CEO also give his comments to encourage the new internees. P&G has two plants of production and they also get their internees to the plant sites.


It is done when internees join organization as an employee. At this level orientation is done individually because they join the organization at different times.


At P&G, developing skills in the workplace and nurturing talent are two of our highest priorities. Since people are our biggest strength, we continually invest in their development. People are part of the foundation on which we build and grow our business. As Mr. Sheraz told us that "our training is regarded as the best in the business, where employees rely on an extensive support network of professionals from across the organization. Additionally, training programs are tailored to individual needs as well as specific functions".

Training is given to everyone at every level and it is categorized in 3 groups:


EMPLOYEE TRAINING: It is considered as the most important aspect of organization's success. The training is mostly done on- the- job, not away from the workplace.

EMPLOYEE DEVELOPMENT: For the purpose of employee development they use the method of job rotation. The employee is rotated to all the sub departments of its related department in order to give him the knowledge of all the related departmental activities.


Organizational development is done by changing the rules and policies in a way it is beneficial for the employees as well as for the organization, these changes are made on timely basis as per requirement. They are using two methods for organizational development.

Survey feedback.

Team building.

By using the employee's suggestions and opinions through survey feedback & team building all the decisions are made, which motivates the employee and maintain a positive environment in the organization.


In P&G the career development of an employee is considered as important as training of employees. In order to retain and sustain employees, career development is done through giving trainings to the employees who give them more chances to grow in their respective fields, it also makes a positive impression of the organization and employee will remain loyal to its workplace. For this purpose they are also sent abroad and in case of long term training, families are also given chance to travel along.


P&G have a sub department of Performance Management which works under the HRM department. Performance of employees is evaluated on annual basis and it is done on 360o appraisal method i.e. all the people within the company who interact with a particular employee have to evaluate the performance of that employee. To begin the process, we and the employee will collaborate on the development of performance standards. We develop a performance plan that directs the employee's efforts toward achieving specific results, to support organizational growth as well as the employee's professional growth. Discuss goals and objectives throughout the year, providing a framework to ensure employees achieve results tough coaching and mutual feedback. At the end of the rating period, we appraise the employee's performance against existing standards, and establish new goals together for the next rating period. While evaluating an employee, following aspects of an employee's performance are took into consideration meeting the below set standard criterion on what basis evaluation is done.

Job Performance

Task behavior

Individual trait

In P&G the above criteria is used due to the reason that individual characteristics of all the employees are different so every employee cannot be evaluated on a single trait. However they give more importance to job performance but task behavior and individual traits are also considered for evaluation purpose.



Cash bonus, stock bonus, profit sharing are the three forms of compensations given to employees as they consider employees as their strategic partners. To decide the pay structure for employees a Committee is appointed in P&G, by the Board of Directors for the primary purposes of:

Overseeing overall Company compensation policies and their specific application to principal officers elected by the Board and to members of the Board.

Assisting the Board in the development and evaluation of principal officers.

The Committee has the following duties and responsibilities:

To approve compensation principles that applies generally to Company employees.

To make recommendations to the Board with respect to incentive compensation plans and equity based plans.

To monitor compensation trends and solicit independent advice where required.

To fulfill any disclosure, reporting, or other requirements imposed on or required of Compensation Committees of public companies by the Securities Exchange Commission, New York Stock Exchange or other applicable laws, rules and regulations, as the foregoing may be amended from time to time.

To approve any compensation-related action for principal officers of the Company elected by the Board.

To review and approve corporate goals and objectives relevant to the Chief Executive's compensation.

To evaluate the performance of the Chief Executive in light of the approved corporate goals and objectives.

To set the base salary and short-term incentive compensation of the Chief Executive based on the Committee's evaluation of competitive compensation practices and the Chief Executive's performance in achieving the corporate goals established for the position by the Committee.

To regularly review and evaluate the compensation program for Directors and, as

appropriate, recommend changes to the Board.

The average salary for PHYPERLINK ""&HYPERLINK ""G jobs is $67,000. Average P&G salaries can vary greatly due to company, location, industry, experience and benefits.


Indirect compensation of P&G includes leaves, medical facilities , awards and bonuses which are discussed as follows:

LEAVES: P&G employees are entitled for too many leaves which are designed to facilitate them in different situations. Following are leave entitlements for P&G employees.




MEDICAL FACILITIES: P&G has started giving Medical insurance and other facilities to their employees this year.

AWARDS: Long Service Award is given to senior most employees upon the length of their service which shows their loyalty to the Company.

BONUSES: Bonuses are given on the basis of outstanding performance. They are not restricted to top level management but the lower and middle level managers can also avail these bonuses on the basis of par excellence.


Through our visit at P&G and while making this assignments we have gathered some useful information about P&G which gave us the idea of their excellence and success throughout the world. The things which give them a competitive advantage includes the developing skills in the workplace and nurturing talent which are two of their highest priorities. Since people are considered as their biggest strength, they continually invest in their development. People are part of the foundation on which they build and grow their business. To avoid defining their diversity objectives too narrowly and limiting them to percentages and representations of certain groups, P&G has made tremendous recruiting efforts and has launched programs such as flexible work arrangements and the day-care center.

The Purpose, Values and Principles (PVP) are the building blocks of their culture. The Purpose unifies them in a shared vision, the Values codify their behaviors toward each other and their Principles articulate their beliefs about business. At P&G, it's about integrity and character. This is what sets P&G and P&G people apart. " We do what we say, and we say what we mean". Combined, these characteristics are their Success Drivers, the competencies that define how their people succeed in today's business environment.

Their corporate structure provides the framework that allows us to tap the benefits of a global organization with speed and efficiency. And their strong employee governance practices ensure that their operations are conducted with consistently high standards and integrity.

Their executive team reflects a purpose-driven group of diverse individuals with breadth and depth of experience across the company. Their unique "Build from within" approach ensures executive engagement and sets a clear course for growing leadership that is distinctly seen in P&G.


As P&G perform and observe all the ethical procedures of HRM so there are no recommendations needed but on the basis of our analysis and conclusion some negative points of P&G have come to light which can prove to be more effective towards success if avoided by taking some preventive measures, for this purpose following recommendations can be considered:

Employees with greater versatility should be recruited so that they are able to handle unexpected situations, and the expanded market situations facing the organization. As they only gave chances to freshly graduate who do not have that much experience and exploration to the business world.

As the compensation plan is solely dependent on the decisions of the committee made by the Board of Directors, the employee's suggestions should also be taken to ensure that the organization's values of integrity and equality are reflected in the compensation and reward systems.

The atmosphere of P&G is very friendly and open, which creates a trustworthy environment but for some reason or not there should be some sort of difference between a boss and its sub-ordinate, as in P&G there is no difference even in calling a boss or a sub-ordinate. There should not be some strict boundaries of discrimination but the environment should be molded in a way that it creates respect as well as friendliness and the workplace looks like a business work place.