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TO OUR SHAREHOLDERS
OUR COMPANYHUMAN RESOURCE
FINANCIAL REVIEW MANAGEMENT
GROUP MANAGEMENT REPORT-
GROUP MANAGEMENT REPORT- CONSOLIDATED FINANCIAL
STATEMENTS
ADDITIONAL INFORMATION
RESEARCH
JURY RESEARCH REPORT REPORT

HUMAN RESOURCE MANAGEMENT

JURY RESEARCH REPORT

Recruitment And Selection - Performance Management System - Training and Development

Emerging HR Trend Adopted

SUBMITTED TO

PROF. RAJANI JAIN

RESEARCH BY

N SAHITHI
ISHITA KHANNA
HARSHINI
RAISH ALAM

1 DFT SEMESTER 6
NATIONAL INSTITUTE OF FASHION TECHNOLOGY
 STATEMENTS FINANCIAL REVIEW OUR COMPANY
ADDITIONAL INFORMATION
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HUMAN RESOURCE
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MANAGEMENT
GROUP MANAGEMENT REPORT - CONSOLIDATED FINANCIAL
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GROUP MANAGEMENT REPORT -
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TO OUR SHAREHOLDERS
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RESEARCH REPORT

ADIDAS
ABOUT THE COMPANY

Adidas AG stylized as adidas since 1949 is a German multinational firm that designs
and manufactures shoes, clothes, and accessories. It was founded and is based in
Herzogenaurach, Bavaria. It is Europe's largest sportswear producer and the world's
second largest after Nike. It is the parent company for the Adidas Group, which includes
an 8.33 percent investment in Bayern München football club and Runtastic, an Austrian
fitness technology business. Adidas reported €21.915 billion in revenue in 2018.

Adolf Dassler founded the company in his mother's home in 1924, and his older brother
Rudolf joined him under the name Gebrüder Dassler Schuhfabrik ("Dassler Brothers
Shoe Factory"). Dassler was involved in the invention of spiked running shoes for a
variety of sports. He switched from a prior type of heavy metal spikes to canvas and
rubber to improve the quality of spiked athletic footwear. Dassler persuaded American
sprinter Jesse Owens to compete in the 1936 Summer Olympics with his handcrafted
spikes. Following a breakup in the brothers' partnership in 1949, Adolf founded Adidas
and Rudolf founded Puma, which became Adidas' business adversary.

Adidas' identification mark, which has been employed as a marketing tool on the
company's clothing and shoe designs. The insignia, which Adidas purchased for €1,600

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and two bottles of whiskey from Finnish sports company Karhu Sports in 1952, became
so popular that Dassler dubbed Adidas "The three stripes company."

BRAND IDENTITY

Our purpose: Through sport, we have the power to change lives

We will always strive to expand the limits of human possibilities, to include and unite
people in sport and to
create a more sustainable world.

Our mission: To be the best sports brand in the world

We are the best when we are the credible, inclusive, and sustainable leader with a first
or second position
regarding market share in each strategic category in the long term.

Our attitude: Impossible is nothing

We are rebellious optimists driven by action, with a desire to shape a better future
together. We see the
world of sport and culture with possibility where others only see the impossible.

New strategy ‘Own the Game’ for the period until 2025
‘Own the Game’ is our strategy that guides us through to 2025 – a plan rooted in
sport. Sport is adidas’ past, present and future. ‘Own the Game’ puts the consumer at
the heart of everything we do and is brought to life by our people. Our strategic focus is
on increasing brand credibility, elevating the experience for our consumer and pushing
the boundaries in sustainability. The execution of our strategy is enabled by a mindset

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of innovation across all dimensions of our business as well as our digital transformation.
We own the game and will drive significant growth.

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Recruitment And Selection Process At

Employees must go through an

extensive hiring process before
joining the Adidas group. Hiring
is important in Human resource.
Given the complexity of Adidas
and its operations, there is not
much chance for error when
hiring, and candidates must be a
good fit and possess the
necessary abilities. Adidas
created hiring guidelines that
received the 2012 candidate
experience awards for having a
better grasp of the candidates.

Following the completion of the initial application, a 10 strives to contact the applicant
within two weeks with a decision on whether or not they will continue to be considered.
If a candidate is selected for further consideration, they will be contacted by a recruiter
and a hiring manager prior to in-person or Skype interviews. Adidas takes pride in its
extensive interview process, which includes second and third-round interviews and
ample preparation time for each. These hiring rules were developed by Adidas' chief
human resource office and are mandatory for all employees. Adidas is able to reduce
turnover and the associated expenses and delays by setting these high criteria and
investing time and money in the hiring process.

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STEPS FOR RECRUITMENT:

Once there is job vacancy found in the organization, the process of recruitment starts,
the job specification sheet is prepared and advertised among various platforms from
where the applicants reach out to the organizations and further which the selection and
hiring process starts.

The hiring process at Adidas includes the following Steps:

APPLICATION:
One of the most crucial aspects of any employment process, including Adidas', is
submitting a strong application. You could be one of the greatest candidates for a job,
but if they can't see your potential right away, you won't be invited to an interview. The
application to Adidas is crucial. Work experience, abilities, and professional
certifications are among them.

INTERVIEW WITH ADIDAS

Employers will contact you to schedule an interview if they like your resume and
application. Adidas frequently inquires about how one collaborates with others. They
can ask you to discuss a difficult issue with coworkers and how you handled it, as well
as how you worked with them and maintained respect and professionalism during the
conflict.

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PRE-EMPLOYMENT SCREENING
Once the application process and the
interview process, are done with next are the
pre recruitment assessments.
Adidas frequently requires candidates to take
one or more of the following tests:

● Entry-Level Tests
● Correctional Tests
● Dispatcher
● Promotional Tests
● Assessment Tools
● Personality/Job Fit

HIRING CHOICE
After gathering information from the many above procedures, the head of HR must now
make the final decision on whether to hire or fire a candidate. Because of the decision's
economic, behavioral, and social implications, the Line Manager must exercise caution
while making the final decision.
The HR Manager issues the Appointment Letter to the candidate after the Hiring
Decision has been made.

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Performance Management System

Companies use a Performance Management System, or PMS, to ensure that their

performance is determined by plans and designs rather than by chance or luck. It's a
method for a firm to involve employees in supporting and improving the company's
effectiveness by focusing and educating them on the objectives and goals of the
organization. Strategic choice and strategic analysis, management by key performance
indicators, corporate budgeting, and planning, and finally consolidated financial
reporting are the four functional blocks that make up the PMS idea.

Adidas provided a wide range of training and development opportunities. Adidas defines
the development efforts as well as the structure. It is to ensure that the company's
performance and management are constant. Apart from that, Adidas uses Performance
Evaluation and Planning (PEP) to oversee their performance. Every employee's
performance is measured against their company goals and job responsibilities, and they
are given feedback at least once a year.

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Adidas also has its own talent management system to discover people who will be the
company's next leaders. They find their most promising employees by preparing them to
take part in specific training sessions. Furthermore, Adidas has a succession
management system in place. This strategy is designed to maintain business continuity.
Senior management will debate the jobs and their successors. Adidas has their own
performance-based remuneration scheme to reward its staff. This is to provide rewards
and perks to employees who meet their targets.

"Performance should be recognized and rewarded," the Adidas company thinks

when it comes to staff motivation. They have long-term incentive plans with short-term
profit participation. Employees are evaluated in both corporate and individual
performance categories in the short-term bonus scheme. The complete value of long-
term dedication to company goals is represented by the top tier, long-term incentive
schemes for company leaders and Executive Board members. These tiers indicate the
company's performance measurement and subsequent compensation for that
performance. Adidas also offers a stock purchase plan for employees who have been
with the company for more than six months, with a 15% reduction on the share price, a
simple example of a reward for performance and loyalty.

#MYBEST is the global performance development approach at adidas and is a key

enabler of a high-performance culture.

The four elements of #MYBEST

 Encourage regular high-quality conversations between the employee and
the line manager,
 Provide a framework for regular upward and peer feedback exchange, and
 Ensure goals are set and reviewed quarterly.

A formal performance evaluation takes place twice a year, and development is the focus
of every monthly ‘Touch Base’ conversation. The voice of employees is critical in the
evolution of #MYBEST. The results confirmed the positive impact of the previous year’s
enhancements and were also used to inform decisions about interventions supporting
the full utilization of the #MYBEST approach. In 2020, Adidas ensured that the
organization has clarity regarding meaningful performance conversations while
navigating the constantly changing environment. Adidas also launched a series of
global virtual events to provide practical tips and company best practice examples to all
employees on impactful feedback and development conversations.

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Training And Development at Adidas

The management at Adidas believes that learning should be “light, desirable, and fun.”
There are more than 51,000 employees globally with an average age of 30 years
working in Adidas. For Adidas, workforce development and skills training have always
been the priority, and which for years spent its learning-specific budget and resources
on designing interesting, varied curricula to engage employees.

Several targeted development programs along with individualized development plans

are undertaken by Adidas to ready its employees for complex leadership roles. Adidas
uses apprenticeships and internships to complement its training and development

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programs. Through two to three years rotation programs, these apprenticeship

programs allow the fresh out of college students to have a chance to gain business
experience.

These programs include vocational training in retail, shoe technology and IT, as well as
integrated study programs in fields like digital commerce, finance, or international
business.
Adidas has also implemented the Functional Training Program (FTP) which is an 18
month program offering graduates with excellent performance and opportunity to start a
functional career at Adidas. Under this program they are offered to work on monthly
assignments. Adidas also has a succession management plan that regularly reviews to
ensure that individual development plans are in place to ready the successors for their
next steps.

Adidas has also outlined five principles of their organization that are general in a sense
but are also deeply interconnected with how they approach employee training and
development.
● Working is learning and learning is working
● A goal to provide an open social learning environment with collaboration and a
sense of connection
● Leadership is dependent on sharing, teaching, and learning
● Innovation is part of the daily work process for everyone in the organization
● The culture of Adidas is meant to be self-driven and focused on a dedication to
life-long learning. Every employee is responsible for his/her career and personal
development.

PURPOSE OF TRAINING AND DEVELOPMENT

1. To Create a pool of readily available and adequate replacements for personnel who
may wish to leave or move up in the organization.
2. Enhance the company’s ability to adopt and use advances in technology because of
a sufficiently knowledgeable staff.
3. Building a more efficient, effective, and highly motivated team, to enhance the
company’s competitive position and improve employee morale.
4. Ensuring adequate human resources for expansion into new programs.
5. There is also an advantage of increased productivity of the employees which in turn
returns in increased efficiency and financial gains.
6. Training and Development programs also decrease the need for supervision.

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7. Employees frequently develop a greater sense of self-worth, dignity, and well-being

as they become more valuable to the firm and to society. Generally, they will receive
a greater share of the material gains that result from their increased productivity.
These factors give them a sense of satisfaction through the achievement of personal
and company goals.

The training and development department at Adidas focuses on developing optimal

leadership and managerial skills in their employees. They ensure that their employees’
development should be in accordance with the brand’s goals and eventually with their
diverse skills, employees are able to execute diverse tasks. This will allow workers to
execute the delegated tasks successfully. Adidas believes that investing in
management development will allow employees to develop problem solving skills and
thus improve their capacity to deal with challenging situations at the workplace.

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Emerging HR Trends Adopted by

Adidas:
OWN THE GAME

Adidas has mentioned in its Annual Report 2021 about its 5-year HR strategy which is
aimed to positively influence the organization’s work culture and employee
performance. It has also introduced a new strategy ‘Own the Game’ for the growth of
the company and eventually a successful future of Adidas. Although this new strategy is
introduced to strengthen the credibility of the Adidas brand, to create a unique
consumer experience and to continue to expand the company’s activities in
sustainability, it also defines the new emerging HR activities incorporated by Adidas in
accordance with its 5-year HR strategy.

For a successful delivery of their 5-year strategy, Adidas plans to empower its people to
truly ‘OWN THE GAME’. The 5-year strategy is also known as People’s Strategy under
the Own the Game initiative. This People’s Strategy has 3 key pillars: Leadership,
Betterment and Performance supported by Diversity, Equity, and Inclusion.

1. Leadership - Adidas grows their people to demonstrate leadership at all levels of

the organization, to empower and inspire others so that everyone realizes their
own potential in the company. Adidas believes that by taking ownership, showing
courage, and driving innovation, their people can own the game.
2. Betterment - Adidas is committed to build the strategic capabilities required to
execute the company’s strategy. They do so by creating an employee experience

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that attracts talent and provides relevant learning and career-building

opportunities to upskill and reskill for the future.
3. Performance - Adidas evolves their performance management philosophy to
clearly articulate the company's ambition to win, to play by the values, to embed
a strong feedback culture, and to recognize both outstanding individual and team
results.
4. Diversity, Equity, and Inclusion: Adidas is committed to provide an equal
starting line for all their people, ensuring that everyone has the same career
opportunities. One of their commitments is to increase the share of women in
management positions (Director level and above) globally to more than 40% by

2025.

Apart from this, Adidas has also come up with a new vision known as -
‘New Way of Learning’ for better training, learning and development of its
employees. This new vision requires the leaders to become actively involved in
learning, teaching, and sharing all their interactions with their team members. Under this
new program, there have been efforts to blend the learning with work. Christian Kuhna,
who developed the strategy of the “Adidas Group Learning Campus”, says, “This new
approach, acknowledges our belief that at least 80% of learning happens informally.” In
this process Adidas Group also planned to create a corporate university but, in the
process, realized that the term and vision of a “corporate university” was too narrow and
instead evolved their thinking to ensure learning was fun, engaging, and sustainable.
Adidas Group Learning Campus replaced classroom-only training programmed with
social and interactive online-learning offerings, which are open to everybody and
accessible 24/7. Under this new program, for the training of employees, there is a digital
learning platform that generates learning modules in the form of videos, PDF’s,
quizzes and also external sources like TED or YouTube videos, blogs etc. following the

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model of MOOC’s (Massive Open Online Courses) where the platform highlights
those which are either “most popular” or expert “recommended.”

References

 ADIDAS ANNUAL REPORT – 2021 https://report.adidas-group.com/2021/en/

 OFFICIAL WEBSITE https://www.adidas-group.com/en/

 https://notesmatic.com/hrm-organizational-culture-at-adida

 https://report.adidas-group.com/2019/en/group-management-report-our-
company/people-and-culture/people-strategy.html

 https://pdfcoffee.com/hr-report-adidas-pdf-free.html

 https://report.adidas-group.com/2020/en/group-management-report-our-
company/our-people/learning-and-performance.html

 https://www.scribd.com/document/500892475/BLACK-BOOK-PROJECT-ON-
PERFORMANCE-APPRAISAL-OF-ADIDAS-EMPLOYEES

 https://adamconte.wordpress.com/2016/09/28/performance-management-at-
adidas/

 https://www.assessmentcentrehq.com/adidas-test/

 https://www.recruiter.com/recruiting/video-interviewing-proves-successful-
recruitment-method-for-adidas/

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 https://www.hiring-process.com/adidas-america

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CONCLUSION

For a company like Adidas, that conducts dynamic market activities and competes with
other participants in the sportswear and accessories industry it is very important to
strengthen its HR department as it is directly related to employee wellbeing and
development and indirectly related to customer satisfaction. Adidas is investing in their
HR more than ever to gain a competitive advantage because skilled and professional
employees can be a source of sustainable competitive advantage. Adidas has made
several strategic changes to its business model during the recent years. However, to
make these changes successful and have a long-lasting impact the brand is focusing on
creating a people centered culture that recognizes the value of employees and helps
them achieve their career objectives. With their new strategies, Adidas Group promotes
innovation, performance, diversity and in a corporate culture of performance, passion,
integrity, and diversity, as they are convinced this is crucial to stimulate innovation, team
spirit and engagement.

Adidas is a top organization, especially in terms of human resource management. We

firmly believe that they are securing top employees, setting the bar high for training and
development, providing ample personal and professional resources, and strategically
setting and measuring goals for the short and long term.

Diversity and Inclusion: ADIDAS believes that having a diverse workforce and
people with diverse backgrounds and perspectives is essential to having an efficient
workforce. This is also critical to catering to the demand of a diverse consumer base in
various parts of the world. Hereford, Adidas allows no discrimination based on gender,
nationality, ethnic origin, religion, world view, disability, age, sexual orientation, or
identity. Employees from more than hundred nations are working at its headquarters
currently. To encourage diversity, inclusion and equity throughout the organization, the
brand has regular events like its Global Diversity Day. It has created certain groups to
strengthen diversity at its workplace as well as supports the International LGBTQ
community.

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