Managing people in Organization

Managing People in Organization

Introduction

Procter & Gamble entered the Middle East market in the year 1956 by beginning making Saudi Arabia as headquarter. The company operated in Saudi Arabian market as a joint venture with Modern Industries Company (MIC) and Modern Product Company (MPC). The company has successfully established plants and conducted business in the cities of Jeddah and Dammam (P&G Saudi Arabia, 2013, pp. nd). In order to effectively run the company in Saudi Arabia, P&G has focused on the most important asset of the company, the human resources. This academic report discusses the approach used by the company to manage its staff and further analyzes one particular aspect of people management implemented by the company, along with the reasons and consequences.

Discussion

Procter & Gamble has developed an effective and well managed human resource to benefit the business of company. It has developed policies like Purpose, Value and Principle (PVP) which guides about the purpose, core values and principles of P&G. It has developed a company policy statement which guides employees and other stakeholders in abiding to the PVP on issues like personal behavior on the workplace. It has also introduced an operating policy which briefs about the administrative procedures and policies for internal controls. The worldwide business conduct standards define the standard of individual behavior expected from each and every employee (P&G, 2013, pp. 4). The global policies and some local operating procedure manuals actually determine the approach of P&G towards its human resource in Saudi Arabia.

Human Resource Management Approach

The effective management of human resource is the most important component for the success of an organization (Jackson et. Al, 2003, pp. 287). Thus, in order to maintain and motivate the workforce, companies implement diverse approaches of human resource management. These approaches have been developed by theorists, practitioners and experts who have studied or work in this field for a number of years. These approaches define the goals and dynamics of an organization and the impact of the approach taken on the performance of employees.

The most common and prominent human resource approach researched is the hard versus soft approach. These approaches are completely opposite to each other in terms of objectives, focus and the key features.

The hard approach of human resource describes the workforce in terms of business. They are understood as a strategic business planning element just like machinery and buildings. This approach focuses on the transactional and some traditional categories of the human resource management activities only (Noe et. Al, 2006, pp. 83). The traditional activities of human resource include recruitment and selection, performance management and compensation if required. The transactional activities include Record keeping and employee services. It has been observed the time horizon for such an approach is on short term changes in employment. The organizational structure which suits the hard approach is taller or hierarchical structure. These organizations usually do not want the employees to become powerful and decision maker. Autocratic leadership style is typically followed in these organizations where the executive ...