Institute of Management Studies

Human Resource Management

Assignment
Topic- The HR Policies and Strategy of Procter &
Gamble(P&G).

MBA(FT)2nd sem

Submitted to: Submitted By:

Prof. C.S. Katju Yukta Sengar
Roll no.-72135
DX1801022
Date: 21June,2022
 Procter & Gamble

 The Procter & Gamble Company (P&G) is an American multinational consumer goods
corporation headquartered in Cincinnati, Ohio.

 P&G founded in 1837 by William Procter and James Gamble.

 It specializes in a wide range of personal health/consumer health, and personal care

and hygiene products; these products are organized into several segments including
beauty; grooming; health care; fabric & home care; and baby, feminine, & family
care. Before the sale of Pringles to Kellogg's, its product portfolio also included food,
snacks, and beverages.

 P & G always had the thrust of innovation although the innovative intensity varied
from time to time.
 RIGHTS AND POLICIES

Employee Rights Policy

At P&G, we strive to promote a work environment of confidence and trust. An important

part of commitment to employees is our Employee Rights Policy which upholds our PVPs
and respects International Labor Standards.
Our employees hold themselves and one another accountable for operating with trust and
integrity, for stepping up as leaders and owners of the business, and for competing
honorably with a passion to win. P&G is committed to creating a work environment that
fosters open communication and supports employees in reporting potential violations.
Retaliation of any kind is inconsistent with our Values of Integrity and Trust and simply will
not be tolerated.

Parental Leave Policy

In 2016, we announced improvements in our US parental leave benefits for moms and dads,
including up to a year off work during a child's first year through a combination of paid and
unpaid leave time. In 2017, we expanded benefits across the globe, adding enhanced
maternity, adoption, and paternity leave benefits in more than 25 countries.

Flexible Work Policy

P&G employees have the flexibility to work from home, and an increasing number of
employees are enjoying the benefits as and when they need to. This helps balance both
business and personal life.

Recruiting
Occasionally, P&G does employ recruiting or placement agencies to help us identify
candidates for specific employment within P&G. If you’re contacted by a legitimate
recruiting or placement agency, there should be no charge to you, the job-seeker.
 STRATEGY OF P&G

Product strategy
P & G adopted to produce and sell a minimum of $50 billion of
sustainable innovative products.

Operational strategy
Here, it undertook an environmental sustainability program
throughout its operations to lessen 20% of CO2 emissions, water,
and energy utilization and waste removal from corporate factories.

Social responsibility strategy

The company decided to advance children’s lives through the
prevention of 160 million days of diseases while protecting 20000
lives with the supply of clean water.

Employee strategy
P & G remained highly enthusiastic for training and motivating
innovative workforces involved in sustainability practices over their
daily tasks. Sourcing of mid-career hire was also a common strategy
of this company.
Shareholder strategy
It involved the utilization of renewable resources in production and
other sustainable measures for the corporate investors.
In 2009, P & G updated its growth strategy by enlarging concern on
innovation for manufacturing, satisfying the known- served and
underserved customers and establishing global leadership as a high
margin growth and entity .

Current Situation

P & G implements the overarching growth strategy as “Touching and

improving lives of more consumers, in more parts of the world, more
completely”. Such a single strategy is the strengthened, modified, or
restructured form of most of its previous strategic moves. Such as-

Organizational structure

The updated structure of P & G acts as a means of corporate

growth. It is designed by considering both global and local
visions of the company .
 Under GBU’s strategy, it pays attention to global customers,
competitors, and brands that act as the media of intended
innovation, profitability, and return on investment.
Under MDOs (Market Development Organization), it focuses on
understanding customers and retailers at each operating arena
through the cooperation of innovative flows from GBUs into a
nationwide venture plan.
Under the GBS strategy, the company concentrates on using its
efficient and skilled HR for delivering their best performances
to maintain scale economies as a major way to gain
competitive advantage.

Resources

The company possesses a highly Intellectual team human

resources as per the annual report of the company, the
research and development team (which has enriched with
scientists, chemists, and so on) of P&G are responsible for the
technical improvement of such a wide range of product line of
the company.
Theglobal giant affords a high brand value, which tends to
expand continuously in the future, particularly in far western
and emerging markets by continuous improvement of its
recognition; this reputation is the outcome of consumer
preferences on quality, trust, and ethical factors in its
practices .
Capabilities

It has a highly efficient perception of the market that

concentrates merely on customers as a market-oriented
business, which wants to stimulate compassion that
sequentially heads towards enormous innovations compelling
growth.
It successfully touches the hearts of billions of people and
enhance lives by motivating peak-performance – this, according
to P&G, is its core capability. To boost growth the business tries
to enhance communication by operating as one company; to
do this, P&G highlights on specific segments, brands, nations,
and purposes decisively and considers that each has exclusive
values to add; also, it can run at economies of scale by
apportioning resources more purposefully and competently
than any competitors.

Serving more customers

At present, P & G is focusing on serving more customers by

implementing continuous innovation and expansion of the
brand portfolio through upper, vertical, or downward value
integration.
More global expansion

P & G is serving its multiple products in about 300 countries by

undergoing continuous product improvement, adjustment, or
simple introduction. As a global expansion strategy, the
company is targeting developing markets for generating more
sales by creating brand affordability, consciousness, and
convenience .

Branding strategy

Regarding the global branding strategy, P&G utilizes various

options as a line extension, brand extension, or multi- branding.
For this purpose, some sub-strategies are also undertaken, like-
scale economies and costs minimization in the production of
new or modified products

Innovation
Innovation is the first and foremost strategic bone for P & G
forever. Currently, it has invested about $2 billion, which is
almost 50% above than its closest national and international
rivals.
The innovation wing of the company is associated with a core
corporate structure and acts as a strategic path of achieving
 goals. Apart from these, it has been practicing innovation for
the development of its various brands,

a) Horizontal and vertical expansion of male grooming brands.

b) Introduction of second wave in toothpaste or oral care brand.
c) Coverage of Western Europe by Pampers Dry Max.
d) Ingredient variation in Pantene.
e) Aggressive move for combining goods innovation and global
expansion tasks of Ambi Pur with Febreze contract.

Investment

The investment strategy is closely linked with higher growth in

terms, which is fuelled by attaining economies of scale in
production and improved production capability of P & G.
As it is highly disciplined in cost-cutting and cash
management,this trend has become a strategic orientation
today under which the company simplifies the routine tasks for
enhancing productivity
Digitization is another component of the productivity strategy
of P & G. At this point, the company standardizes, coordinates,
and automates procedures as well as information for
developing real-time functional and decision- making
situations.
 Strategic Direction for the future

 Reformation of the Pricing Strategy

 Although the company possesses extensive knowledge to run

business in the domestic and global market as a foremost
competitor, but it can lose its wonderful market position because
of advanced rivalry and price war from the UK companies.
Consequently, reformatting pricing policy is one of the most
indispensable measures to maintain its position in the competitive
market while the competitors set price considering consumers’
buying capacity.
 Competition
The competitors present in the market, such as Unilever has a low
price pattern to capture a high share of the market; therefore,
P&G should hit the market by restructuring its pricing policy.

 Develop an IMC campaign

 Create brand image

P&G has already established the company as a market leader in
the global consumer product markets, but it has to face hard
competition with other companies like Unilever. Therefore, the
top management should consider direction one to develop a
brand image within a very short timeframe
 Aligns with mission
As the main vision of the company is to provide superior quality,
this strategy help to aware people regarding the product line
 Competition
 Since the consumer product market is highly competitive, this
direction would open a new door to compete with large
competitors
 Differentiates and helps to create a unique experience
Kotler and Armstrong suggested that this strategy increases
perceived differentiation. IMC would meet these criteria and help
P&G to create a unique experience.
 Creating a loyal customer base
As Unilever and other competitors offer similar products at a
lower price, then it would be difficult to create a loyal customer
base but IMC would help to develop public awareness regarding
consumer products and influence customer’s mind 3
 Financial risk
Implementation of this strategy may require large fund but the
risk is minimal due to the prospect of IMC campaign

 Joint Venture and Acquisition strategy

 P&G can attain competitive advantages by joint venturing with

other competitors or retailers in the market to allocate their
competencies and expand the business more proficiently across
the world.