P&G Onboarding Welcome!

Report
Procter & Gamble
HR System Overview
Agenda
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Procter & Gamble Company
HR Systems Overview
HR Systems
Issues we’re facing
Q&A
Procter & Gamble Company
Overview
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Established in Cincinnati, Ohio, US in 1837
A global leader in consumer goods
100,000 employees worldwide
Operations in 80+ countries
Products sold in 160+ countries
Procter & Gamble Korea Overview
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1989, Entered Korea via Joint venture
(P&G-STC)
1992, Established P&G Korea
1992, 100% ownership
1994, Chonan plant start-up
1998, Acquired Ssangyong Paper Co.
2004, Integrated Wella Korea
2005, Acquired Gillette
Procter & Gamble Korea Overview
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500 employees
General Office in Seoul
Plant in Chonan
Acquired Gillette
Brands -- Pantene, Vidal Sassoon, Head &
Shoulder, Whisper, Cutie, Febreze, Pringles,
SKII, Ivory, Joy, Crest, Wella, IAMS
Procter & Gamble HR System Overview
• A holistic system approach
• A strong linkage to P&G business model
• A strong Corporate culture
– Corporate Purpose, Values, Principles
– Business Conduct Policy
• 169 years of trial and error
Procter & Gamble HR System Overview
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Home-grown management
Early responsibility
Manager manages employee.
Line organization responsible for organization
development
• HR develops and owns the systems. Line
organization executes the systems.
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Business Need Analysis
• Key factors in design and implementation
– Business success (short term and long term)
– Balance between business and organization
– Productivity
– Company's needs and wants from employees
– Employee's needs and wants from Company
• Determine the type of people, skills, and experience
we need for the business to be successful
• Determine the type of organization and its culture
we want to build
Recruit the Finest People
Business
Direction
Work Plan for the year
ahead
Reward & Recognition
1:1 Relationship
Review of Results
Business Results
Coaching
Feedback
Personal Development
Plan
Career Interests
Retain the Finest People
Career
Planning
Development Program
Performance
Management
HR Model
Dimensions of HR’s Role:
The Four Quadrant Model
Multiple Roles of HR:
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The roles are not separate and unrelated
All 4 roles can come into play while doing HR
work
One or more of the roles may dominate
depending on the nature of the work
Every HR practitioner can & often does play all
4 roles
Change Agent
Strategic Partner
Employee Champion
Administrative Expert
HR Role - 4 Quadrant M odel
STRATEGIC FOCUS
Change Agent
Business Partner
Understanding of our Business
Personal Credibility & Influences
Strategy & Action Planning
OGSM Review Process
Team Action Planning
Organization and Team Effectiveness
PROCESSES
Driving Change and Managing Transformation
Ability to Create & Manage Culture
Team Design and Job Transition Process
Diversity Strategy/Goals – Managing Inclusion
Team On-Boarding Process
Training Plans – Build Capability
PEOPLE
CULTURE
PVP-Culture
PVP
CORE
Administrative Expert
Employee Champion
Management of HR Practices/
‘Deliver HR’
W&DP Process, Rating Process,
Staffing, QPR, GCSDS,
Succession Planning
Management of HR Practices/
‘Deliver HR’
Employee Relations
Relocation
ESC (not benefits experts but a liaison
between the employee and ESC if needed)
OPERATIONAL FOCUS
P&G Core Value
Purpose, Values and Principles
Visionary, Successful Companies that Stand the Test of Time*
Preserve
Core Values
Core Purpose
Change
Cultural & Operating
Practices
Specific Goals &
Strategies
* from Built To Last, by James C. Collins
and Jerry I. Porras
Visionary, Successful Companies that Stand the Test of Time*
• 1812 Citicorp
• 1903 Ford
• 1837 Procter & Gamble
• 1911 IBM
• 1847 Philip Morris
• 1915 Boeing
• 1850 American Express
• 1923 Walt Disney
• 1886 Johnson & Johnson
• 1927 Marriott
• 1891 Merck
• 1928 Motorola
• 1892 General Electric
• 1938 Hewlett-Packard
• 1901 Nordstrom
• 1945 Sony
• 1902 3M
• 1945 Wal-Mart
* from Built To Last,
by James C. Collins and Jerry I. Porras
Our PVP
William Procter and James Gamble’s most significant contribution was
not hog fat soap, lamp oils or candles, for these would eventually
become obsolete; their primary contribution was something that can
never become obsolete: a highly adaptable organization with a
‘spiritual inheritance’ of deeply ingrained core values transferred to
generation after generation of P&G people."
"윌리엄 프락터와 제임스 갬블의 가장 위대한 공헌은 비누, 램프오일,
양초가 아니었다. 왜냐하면 이것들은 결국에는 역사 속으로 사라져 버
린 것들이기 때문이다. 그들의 가장 중요한 공헌은 결코 사라 질 수 없
는 그 무언가 이다. 그것은 수 세대 동안 P&G 사람들에게 전해진 것으
로 깊게 각인된 핵심가치라는 정신적 유산을 가진 매우 적응성이 뛰어
난 조직이었다.”
James C. Collins and Jerry I. Porras, authors of
Built to Last – Successful Habits of Visionary Companies, 1995
Corporate Purpose, Value and
Principles
• Purpose, Values and Principles represent the
Corporate Culture.
– PURPOSE states the most fundamental reason
why the organization exists.
– VALUES are the core concepts that define the
character of the Company and its people
– PRINCIPLES are the guidance by which choices,
decisions, and behaviors are determined.
Purpose, Values and Principles
• Purpose
– We will provide branded products
and services of superior quality and
value that improve the lives of the
world’s consumers
• Values: P&G People
– We attract and recruit the finest
people in the world.
– We build our organization from
within, promoting and rewarding
people without regard to any
difference unrelated to
performance.
– We act on conviction our people
will always be the most important
asset.
Purpose, Values and Principles
• Principles
– We show respect for all
individuals
– The interests of the Company
and the individual are
inseparable
– We are strategically focused on
the work
– Innovation is the cornerstone of
our success
– We are externally focused
– We value personal mastery
– We seek to be the best
– Mutual interdependency is a way
of life
Purpose, Values and
Principles
• Principles
• We show respect for all
individuals
• We believe that all individuals
can and want to contribute to
their fullest potential.
• We value differences.
• We inspire and enable people
to achieve high expectations,
standards, and challenging
goals.
• We are honest with people
about their performance.
How PVP works in P&G
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Business Conduct Policy
Regular Training and Compliance report
Actual Case Studies
Performance measure for leaders
Hot Line
And many more
Promotion from Within
Promotion from within
• Unique HR practice of P&G
• Fundamental to retain our corporate core values
• Reason we need to focus on selection process and
employee development
– Hire future leaders
– Hire at entry levels only
– Maintain healthy turnovers for continuous supply of new
talents
A Culture to Support Development
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Long history of developing people
Leaders take ownership in developing people and
coaching others
Willingness to release people for developmental
opportunities
Organization and people development are key
measures in performance assessment
Business decisions frequently combined with
talent/staffing discussions
Build from within requires continual learning and
development
We Build Our Organization from Within
Why?
• Value deep knowledge
• Rooted in learning the business from
the ground up
• Organizational focus is on growing
talent vs. searching for talent
• Internally developed talent produces
better business results
90% success rate at executive
level vs. 50% industrial average
industry
How?
• Hire only at entry level
(exceptions = doctors, lawyers, etc.)
• Field The Best Team in Acquisitions
• Search for talent locally, regionally then
worldwide
• Combine and leverage On-the Job Posting
and Assignment Planning
• Develop for greater responsibility
Developing Talent : P&G’s Promise
The Right People in the Right Jobs at the Right Time
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At P&G, we:
1.Hire the best of the best everywhere
2.Identify high potentials early in their career
3.Fill strategic jobs with high potential, high
performers
4.Develop our leaders through planned experiences
5.Develop a diverse mix of future leaders
6.Help match individuals’ passion to business
opportunities
7.Empower our people to succeed
8.Protect and grow the business through sound
succession planning
Job family
Group of Jobs categorized by different career objectives and competencies.
Each Job Family has different system of Career Progression, Salary, Assignment etc.
A&T
: Admin and Operational
Job oriented with
expertise and experience
C5 : Expert
C4 : Senior
C3 : Entry (Univ.)
C2 : Entry (College)
C1 : Entry (High School)
Technician
:Technical Resources
Manager
: Manage the Business
and people
-Plant Operation
-R&D
The difference is based on the expectation on the job.
Recruiting Process
Talent Supply Process
• Owned by hiring function : Career system
• Focusing on a candidate’s behavior, result,
experience : past behavior is the best predictor of
future behavior
• Major selection criteria is a potential to be a group
manager (2 levels up)
Talent Supply Process
Enrollment
Planning
Recruiting
Needs
Campus or
Market ?
Pre-screening
•Experience
•Education
•Diversity needs
•Stability
•Etc.
Screening
Interview
English Test
(as needed)
•Success Drivers
•For reference use only
•Cutoff score applied
Physical
Exam.
Job Offer
Comprehensive
Interview
•Success Drivers
•At least 3 times
Problem
Solving Test
Management
Application
Form
•Strong or above
Hiring &
Onboarding
Success Drivers
 Set of competencies of
P&G
people, our most unmatchable
competitive strength
 Nine specific behaviors
organized under three basic
ideas that describe the
competitive advantage
created by P&G People.
 Fundamental of all HR
systems in P&G.
SD and people systems
Performance Evaluation
ED&PS
(Employee Development and Planning System)
Goal
Rating
W&DP
Develop &
Review
Develop People &
Business
Salary
Planning
Assignment
Planning
W&DP Process
Goal
Rating
Session
Overall
Performance
Assessment
Review of
Results
1:1 Relationships
On-going Coaching &
Feedback
Assignment Planning
- Work Plan For Year Ahead
- Career Interests
Personal Development Plan
-Strength
-Improvement Areas
Key Customer
Inputs
Quarterly Review
Spirit of W&DP
WANT
MUST
Preference
Responsibility
WIN-WIN!!
Capability
CAN
Key Customer Input
Broad-based Customer Feedback:
Purpose
Supplement managers understanding of you
r performance and contributions by getting
additional, specific and actionable feedback
Feedback
Request
Form
•Overall
Assessment
•Strength/Talents
•Opportunities
•Weaknesses /
Performance
Issues
Broad Base Feedback Process
- Employee will propose the key customer
- Manager will ask & collect inputs
Proposed Key Customer should meet followings;
- Who works with the employee closely
- 3~4 will be sufficient
- Consider diversity, multi-functional
Compensation & Benefit
P&G Compensation Principle
• Pay competitively
– With Selective Group of Companies
• Pay for performance
P&G Compensation System
Compensation Management : 2 processes
• Compensation Benchmarking
– Process: Establish competitive job value
– Product: Salary Ranges
• Salary Planning
– Process: Differentiate pay according to performance and
contribution
– Product: Individual Salary Plan
Salary Planning-Range Design
Growth is faster in the early years at level – Higher rate of learning and contribution;
Slower rate (closer to market growth) as skill and experience stabilize.
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Salary growth is based on performance, job level and time at level
Higher Pay for
Higher Performance
and Contribution
100%
50%
0%
1-Rated
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. . 2-Rated
3-Rated
Years at Level
Compensation System
Total Compensation
Total Compensation Elements
and Executive Compensation
Key Manager
Stock Options
Executive
Compensation
상위 10%만
수여
STAR – Short-Term
Achievement Reward
Benefits and
Alternate Salary Items
Salary
과장 이하
부장
이사 이상 간부급
Benefit Principle
We attract, retain and motivate employees by offering
a reasonable policies and plans packages.
Objectives for Benefit Programs
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Tie to company’s business strategy
Take into account employee needs
Be competitive
Cost effective
Valued by the employee
Tie to Company’s Business Strategy
 Be able to attract and retain good people
 Share in company’s performance
 Be able to adapt to changing environment
– Demographics
– Government programs and legislation
– Competitive practice
 Provide affordable benefits
Meet Employee Needs
 Protect against potential loss of income
– Disability
– Death
 Maintain appropriate standard of living after retirement
 Offer opportunities for capital accumulation
 Protect against burdensome health care costs
 Recognize different employee needs (offer choice if
possible)
Meet Employee Needs
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Three pillars of provision
– Social security
– Company provided
– Employee provided
Offer Competitive Programs
 Our target is median in peer group
 Choice of peer group consistent with compensation
surveys
 Total compensation package to be competitive
Cost Effective
 Takes advantage of
– Economies of scale
– Favorable tax treatment
 Employee participation in cost
Valued by the Employee
 Regularly communicated to employees
 Employee must understand added value of benefit
programs
 Part of total compensation package
Employee Sensing
Stay in touch with employee’s emerging needs
External environment (change of regulations)
Career & Assignment System
Assignment Plan
Open Job Posting
W&DP
Career Development Principles
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Function based career management
Management and employee co-ownership
Individual initiatives to drive career
Fair and equitable treatment
System to provide “choice” to employees
Meet the needs of the company and the individual
Transparent 360 degree feedback
Individual Ownership
Assignment Planning
Intent:
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Place the right people on the right job
Utilize resources effectively
Develop a strategic flow of top talent
Proactive plan of assignments and succession planning
Key Drivers of Assignment Planning:
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Skill Matrix
Promotion Criteria
Development of Top Talent
Business Needs
Individual needs via career discussion
Open Job Posting
Intent:
 To place the best people in the job by leveraging the
talent of our people
 Provide “choice” to employees
 Build organization capability
Attention:
 2 years in current job is required to apply
 Pay & benefit may be affected when job changes involve
function or level change
 Exception for maternity leaves, long-term LOA, and dual
career couple moves
Training System
P&G’s Training and Development
Philosophy
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Promote from within
Train and develop future leaders
Employee owns their learning
Teaching is an essential part of leadership
Employees teach to learn
90% of learning happens through on the job
training/coaching
• The focus is bring the capability in-house vs. relying
on external
• Formal part of job progression
Training Programs
e-Learning
Onboarding
Corporate College
Functional College
On the Job Training
Training
• Corporate Training
– New Hire College, Success Drivers Training,
Time management, Memo writing, People
Supporting People, Maximizing Creative and
Logical Thinking, Improving your personal
leadership, Positive Power and Influence,
Basic Finance, Business Process, Effective
Presentation, People and Communication
Skills, Total Assessment Interview, Training of
Trainers, Management Training, etc.
– Rapid Learn (on-line computer based training)
Training
Functional Training
 Owned by each function
 Function on boarding
• 1-1 orientation
• Qualification project
 Function College
• Classroom/on-line training
• Self study
 On-the-job training
Learning Curve
5
Years
Group 1
8
Years
Performance
Group 2
Group 3
Time on the Job
Learning Curve
Talent Development System
Talent Review
• Selecting top 1% of our total employees to develop
them further by assigning them to a core, strategic and
challenging position
• Talent Review Meeting
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Twice a year
Add new talents and drop poor talents
Function  BU  Country  Region  Global
Performance driven selection process : Rating, W&DP,
360 degree feedback, etc.
– Check Diversity : Gender, Nationality, Race
Top Talent Development Program
• Objective : Identify top local talents early in their career and accel
erate their development by proactive assignment/career planning,
focused training, mentoring, and personal action planning.
• Full support from top management : developing people is one of
key performance measures to management level
• Performance Based Competition
• Strategic, Challenging assignment
– assess the procedure how to survive through the assignment
– Coaching, Mentoring
NEA LTDP System
• NEA (North East Asia) Local Talent Development
Program
• To develop weak area of NEA employees as a global
leader focusing on 4 critical skill area
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Leadership
Strategic Thinking
Global Communication Skill
Coaching Skill
• Group Manager Level
– Playing a Key role as a bridge between executives and
juniors (90% of our total population)
NEA LTDP System
• Accelerate Top Talents’ development and prepare
them as a future global leader
• 1 year program
• Methodology
– Personal Action Plan Development based on feedback
– Classroom training and case studies taught by GMs and
Directors
– Assignment and career planning reviewed by NEA Lead
ership Team
– Skill assessment & feedback (LAT, EPA)
– Leadership mentoring
Personal Action Plan Development
• Before the session starts, participants should submit
self-assessment and broad-based feedback
– Leadership Assessment Tool (LAT)
– English Proficiency Assessment (EPA)
• Develop personal improvement plan
Top Talent Training
• 1 year program : 9 sessions with Graduation case
study
• Classroom training in Japan with all participants
• Case Studies facilitated by General Managers and
Directors
• At the end of each session, the facilitators give
feedback on individual performance during the case
study
• Opportunity to Network with other top talents and top
management  another leaning enhancement
Assignment and Career Planning
• Review next 2 assignment plan including promotion
plan
• Review future potential (up to which level) to set
career plan
• Assess Top talents’ skill : Leadership, Strategic
Thinking, Global Communication Skill, Coaching Skill
• Assessment Center : Web based tool
– Individual and Line manager fill out the data
– Accessible anywhere in P&G
Assessment Center : Employee
• General : General personnel information of the person
(Downloaded from SAP HR)
• Career History
– Assignment History, Education, Expat Assignment
– Certifications (work Related Certifications input page)
– Training
Assessment Center : Employee
• Experience
• Organization/Geographic/Business’ Experiences
Assessment Center : Employee
• Interests
– Career Interest
– Mobility : Identify locations preferred or not preferred
• Skills
– Language Skill
– Technical Skill by function
• Results
– Attach most recent W&DP and other documents, which
shows business result.
Assessment Center : Manager
• Career Plan
– Estimated future potential
– Estimated year ready
– Next promotion plan
• Assignment Plan : next 2 assignment plan
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Assignment name
Promotion Status
Starting Date
Location
Assessment Center : Manager
• Development area
– Identify Top 3 development area and set improvement
plan
• Succession Plan
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General information of successor
Priority of Candidate (1 to 4)
Candidate Type : Planned, Emergency, Diversity, Local
Estimated succession timing
Rating for past 3 years
Leadership Mentoring
• Mentor : a relationship between a junior and senior
colleague that is viewed by the junior as positively
contributing to his/her development.
– 2 level up manager from any function
– Any kind of topic
– Share personal experiences
• Sponsor : Technical support
– support quality job delivery
– Function Head in most cases
• Secret for success? Promotion from within!
Employee Communication Process
• To selected employees : communicate through one to
one discussion.
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The intent of the program
Why he/she is selected
The contents of NEA Leadership Development Program
Implications for his/her selection
Your expectations
Establish clear expectation that this is not a guarantee
for promotion
Employee Communication Process
• To other employees : no proactive communication to
other employees but provide perspectives when asked.
– This is a going program and they may have opportunity
to enroll next year.
– This is not the program for everyone. It takes
management recommendation to enroll.
– Strong performance and future potential are two key
criteria for nomination.
– Other programs are available via Corporate Training
Program. Everyone can take advantage of similar
program.
– When asked why a certain manager was not selected,
be transparent about what it takes for the manager to be
nominated (candid feedback)
Top Talent Reward System
• No special incentive or allowance for Top Talents
• Pay for performance  better reward to top talents
• Salary growth is based on performance, job level and
time at level
• 50% of salary gap between top performer and poor
performer
Issues We’re Facing
Issues we’re facing
• Gillette Integration
– Successful business integration through successful
cultural integration
• Promotion from within
– Take time to develop leaders from bottom
– Should plan fastest track in career for leaders and
maintain continuously
– Hard to find a right replace in case of sudden leave of
talent : Succession plan implements this issue but
difficult to back up 100% capability in a short period
Closing
• Managements’ full commitment and support is critical
(culture promoting people who grow capability of
others)
• P&G’s talent development system is based on P&G’s
Promote from Within principle
• May not be applicable to other companies
• Key to success is finding the objective and essence of
a company and what would be the best fit to the
company

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