Nike, Its Objectives and Responsibilities Essay Example

2011 to provide marginalized youth with greater access to sports. This year, we will help bring sports opportunities to a young girl in Somalia who grew up as a refugee in Kenya, to a young homeless man from Scotland who has a passion for football, and to children in New Orleans who are rebuilding their communities. We will provide Nike products, resurface old playing fields, fund community-based programs, and assist young people in building their own communities.

recognizes the consequences that arise from enhancing our understanding, conceptualization, and approach to corporate responsibility. We acknowledge the significance of corporate responsibility in utilizing the potential of our brand, the commitment of our workforce, and the extensive reach of our business to make a significant difference. Consequently, we have set ambitious business targets that integrate our corporate responsibility objectives into our long-term expansion and innovation strategies. This methodology ensures that we directly align these aspirations with our operational activities as we believe it is the most efficient means to accomplish them.

A Brief Overview of NIKE, Inc.'s Range of Brands
NIKE, Inc.

's wholly-owned subordinates - Cole Han, Converse Inc., Hurley International LLC, NIKE Golf, and Umbra Ltd. - are crucial in our goal to achieve $23 billion in revenue by the end of financial 2011. These subsidiaries contributed approximately $2.6 billion to NIKE, Inc.'s total revenue of $18.6 billion by the end of financial 2008. This indicated a growth rate of 16% compared to financial 2007.

NIKE, Inc. is focused on optimizing its portfolio to generate the highest returns. In line with this strategy, several significant changes occurred over the past year:

• On April 17, 2008, NIKE, Inc.

sold NIKE Bauer Hockey to Kohlberg & Company and Canadian businessman W. Graeme Roustan for $200 million.

Nike was recognized by the Ethisphere Institute as one of the "World's Most Ethical Companies" at the Forbes-Ethisphere joint conference.
This recognition was based on reviews of codes of ethics,
investments in innovative and sustainable practices and efforts to improve corporate citizenship.
You can read more here. Additionally,Nike secured third place in Corporate Responsibility Officers' list
of the top corporate citizens among U.S.-headquartered public companies in their ninth annual ranking called Corporate Responsibility Officers'
Best Corporate Citizens list for
the year 2008.

Nike's ranking has steadily increased over the years, moving from No. 31 in 2005 to No. 13 in 2006 and maintaining this position in the latest ranking by CRO Magazine. Furthermore, Innovest has acknowledged Nike as one of the top 100 Most Sustainable Companies globally.

Companies were assessed on their management of environmental, social, and governance risks and opportunities in comparison to their industry peers. Nike secured the top spot among sustainable stocks on the 2007 Sustainable Business list. Sustainable Business and KLD recognized Nike's leadership in the consumer products sector, stating that even though outsourcing manufacturing to subcontractors poses challenges, Nike is demonstrating that it can be

done. Nike's sustainability report provides a thorough examination of the company's operations and products.

It is transforming its merchandises by utilizing green design rules, rooting out waste and toxics, and be aftering for C neutrality by 2015. '' Read more.
Business
Nike Named for Apparel ; A ; Innovation on Fortune 's 2008 Most Admired Companies. For the 3rd back-to-back twelvemonth, Nike was ranked as the Most Admired Company in America in the Apparel industry, harmonizing to Fortune Magazine. Nike was 2nd behind Apple in Innovation in the overall rankings of more than 300 companies.

In addition to being a leader in innovation in the apparel industry, Nike also ranked first in social responsibility, climbing up from third place last year. Furthermore, Nike excelled in financial stability and long-term investment. Read more. Nike was ranked sixth on the list for its innovative consumer experiences such as Run Americas, the Nike Women's Marathon, Nike+ Supersonic, House of Hoops, and NikeiD Studios. The magazine highlighted Nike's "latest stroke of genius" which is its social networking platform.

From events to the Web to unique retail hubs, Nike is blurring the line between brand and experience. I.D. Magazine has recognized three Nike products in its 2007 Best Of Consumer Product category.

Nike's Revolutionary Support Sports Bra (described by the magazine as "a piece of dress worthy of the Title 9 coevals''), the Considered 2K5 shoe ("Green does n't hold to be ugly'') and Nike+ Air Zoom Moire ("as a contemplation of an active digital life style, this has no equal'') were selected. Read more.

Employer

Business Week - 2007 Nike placed # 55 on Business Week's 2007 Top 100 Topographic points to Establish A Career list.

Students gave us even higher Markss ranking us # 14 based on a study of 44,000 undergraduates. All 100 companies are featured online. Nike has been recognized three times by FORTUNE magazine on its "100 Best Companies To Work For'' list for employee benefits like paid sabbaticals, on-site child care, and a 50 per centum price reduction on company merchandises, every bit good as for corporate duty attempts in turn toing conditions in abroad contract mills.

Nike is ranked 21st on the one-year list of the 100 Best Companies to Work for in Oregon. They are also ranked #1 for employee benefits in the state. In 2007, Nike received recognition from the World Wildlife Fund for their leadership in addressing climate change. As a founding partner of the Climate Savers Program, Nike successfully achieved their goal of reducing CO2 emissions by 13% below 1998 levels by the end of 2005. The World Wildlife Fund praised Nike's efforts in reducing greenhouse gas emissions through various initiatives such as energy conservation projects, clean power investments, community energy efficiency projects, emission reduction activities with suppliers and subcontractors, and eliminating SF6 from footwear production. These actions demonstrate Nike's dedication to protecting the climate and recognizing its positive impact on business.
Furthermore, Nike has been acknowledged as one of the best workplaces for commuters for three consecutive years (2004-2006) due to their commuter benefits plan which has contributed significantly towards reducing traffic congestion and air pollution. In 2004, Nike was recognized as a finalist for the Business Enterprise Award at the United Nations Association of Australia World Environment Day Awards. This recognition was due to their Reuse-A-Shoe program, which contributes to sustainability

efforts.In 2003, Nike was ranked first on the "Companies in a Class all their Own" list by The Sustainable Industries Journal, primarily due to their use of organic cotton and Reuse-A-Shoe initiative. Nike's commitment to workplace diversity and equality has also been recognized. In 2007, they were named a top place to work for GLBT equality and acknowledged by the Human Rights Campaign Foundation as one of the 142 American companies supporting GLBT employees. For three consecutive years (2002-2004), Nike achieved a perfect rating of 100% on HRC's Corporate Equality Index for their workplace practices. They have received numerous awards for their leadership efforts and community contributions. In 2002, the National Congress of American Indians recognized Nike for its leadership efforts. On February 12, 2008, Nike's 5K for Kids series was awarded Youth Program Contributor of the Year by Running USA and YouthRunner.com. The USATF selected Nike Women's Marathon as the Charitable Race of the Year in 2006. Additionally, Nike received both the Hong Kong Caring Company Award in 2003 and 2004 and an award from the Hong Kong Council of Social Services for their Slam Dunk Basketball Challenge that supported Save the Children. Finally, in 2004, Portland Trailblazers honored Nike with the Heart of the Community Award.The text mentions that the organization has received recognition from several organizations including the National Head Start Association, Spirit of Portland Award, Oregon Commission for the Blind, Australian Prime Minister's Community Business Partnership award, Judges Encouragement Award for ARMTour Partnership, and Oregon Food Bank's Stone Soup Award in 2003. The discussion revolves around organizational design and its impact on six key elements: work specialization, departmentalization, chain of command,

span of control, centralization, and decentralization. It emphasizes that organizations are formed when individuals come together to achieve a common goal with the aim of efficiently utilizing resources such as human resources, tasks, and technology to create a productive work environment.

In order to achieve their goals, organizations must establish an organizational structure or design. On our website, we will explore this concept by discussing the elements of organizational structure and design, such as work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and common organizational designs.

WORK Specialization:
"Organizations and society can benefit from dividing tasks into narrower and repetitive tasks." Work specialization is the extent to which tasks in an organization are divided into separate jobs. Another term for this concept is division of labor, where activities are shared among different individuals. For instance, NIKE's production process involves 34 operations and around 170 workers contributing to the creation of one pair of shoes.

The concept of work specialization, as described in Adam Smith's 1776 book "The Wealth of Nations," can be traced back to his classical economic philosophy. Smith believed that organizations and society would benefit from dividing labor into narrow, repetitive tasks. He argued that this division increased productivity by allowing workers to focus on their specific skills, saving time by eliminating task switching, and promoting labor-saving innovations and machinery. Henry Ford later implemented this concept in his assembly line, assigning Ford workers to specific repetitive tasks. This allowed Ford to produce cars at a rate of one every 10 seconds. Today, work specialization is still considered a way to maximize worker efficiency by matching jobs with workers' skills and compensating them accordingly.

The

text highlights the advantages of work specialization, which include improving employee skills, reducing costs, simplifying employee training, and developing innovative equipment for mass production. However, it also mentions the disadvantages of work specialization such as boredom, fatigue, stress, decreased productivity, poor work quality, increased absenteeism, and higher turnover rates. The diagram on the following page illustrates a typical structure of this concept, where specialization leads to departmentalization. NIKE has a work specialization structure for footwear, apparel, equipment, and marketing/sales. The subheading emphasizes the example of the athletic footwear industry, which relies on labor-intensive production and requires innovation and quick design and production turnarounds for success.

NIKE has achieved success in a volatile market by adapting to change and utilizing outsourcing relationships in low labor-cost countries overseas. Currently, all of NIKE's production is done by subcontractors referred to as "production partners." According to NIKE's 2001 Annual Report, 40% of footwear production is in China, 31% in Indonesia, 13% in Vietnam, and 13% in Thailand. Only 5% of apparel production is in the US, with 28% in other countries (refer to chart below).

NIKE has three types of outsourcing relationships. Developed partners were initially located in Japan but are now in Taiwan and South Korea. They produce high-end or expensive statement shoes, typically in smaller batches of 10-25K pairs per day. Volume partners are large factories that produce standardized, lower-priced footwear with high production volumes of 70-85K pairs per day. They serve multiple companies (including NIKE's competitors like Reebok), and the relationship between NIKE and these partners is less loyal. Developing partners are mainly located in Thailand, Indonesia, and China. These locations offer NIKE low labor costs and act

as a safeguard against increasing labor costs in other factories or exchange rate risks.The mills that produce NIKE shoes are extremely loyal to the brand, and this is evident in the number of workers and parts involved.

In creating each pair of shoes despite the complexity of the process they strive to bring NIKE shoes to the market.

Category Product Teams, consisting of NIKE interior decorators, developers, and selling specializers with expertness in a specific athletics class, portion the duty for everything from initial market research to material choice and selling of an single NIKE shoe, a procedure that typically takes between 16 and 18 months. Once work undertakings have been defined, they must be grouped together in some manner through a procedure called Departmentalization. In other words Work specialisation leads to departmentalization.

Departmentalization:

The goal of departmentalization is to group different offices and occupations that were divided up through work specialisation so that common undertakings can be coordinated.

To achieve this goal, the Nike corporation can use five different types of departmentalization. However, this may be challenging due to the company's large size and international presence. It is important to carefully consider the advantages and disadvantages before implementing these approaches. One approach is Functional Departmentalization, which groups employees based on the specific tasks they perform. This method can be used by any organization but may need adjustments to align with the organization's objectives.

One advantage of functional departmentalization is improved efficiencies through grouping individuals with similar skills, accomplishments, and orientations. Another advantage is increased coordination within functional areas. Lastly, in-depth specialization allows for more precise operation of facilities. Despite these advantages, functional departmentalization also has its disadvantages.

One drawback is the

lack of communication between different departments, as the technology director may not understand accounting and the accounting director may not understand manufacturing. Another drawback is a limited perspective on organizational goals. A Plant Manager overseeing the functions of the Manager of Engineering, the Manager of Accounting, and the Manager of Manufacturing exemplifies this type of division. Jobs in Product Departmentalization are categorized by product line, with each major product area falling under the authority of a director who is responsible for all aspects of that product line. One advantage is that it allows for specialization in specific products and services. This is particularly important for Nike as athletes expect their sports shoes to perform differently from shoes in other sports.

Another advantage of directors being experts in their industry is that the company can also become closer to clients and understand their desires. However, there are two disadvantages to this approach - the duplication of maps and the limited positioning of organizational goals. For example, the Athletic Shoes Department may oversee multiple divisions such as Basketball Shoes, Baseball Shoes, Running Shoes, and Cross Training Shoes. Geographic Departmentalization is essential for Nike as it is a global multinational company.

The benefits of Nike's regional approach are increased effectiveness and efficiency in addressing specific issues that arise in different geographic markets. However, a drawback is the duplication of tasks, as all directors perform the same job but in different countries. Additionally, these directors may feel isolated from other organizational countries as their expertise is most needed in their current location and they do not often leave. The organizational structure would involve the Vice President for Nike Co.

Sales supervision oversees

the performance of Sales Directors for various regions such as the United States of America, Asia, Europe, etc. The departmentalization process involves grouping jobs based on the flow of products or customers, with work activities aligning with natural processing flows. This approach has the advantage of enabling more efficient flow and work activities. However, it can only be applied to certain types of products, depending on their scale. In addition, the Plant Superintendent collaborates with the directors of the Materials Department, Assembling Department, Finishing Department, and Inspection Department.

Customer Departmentalization is when occupations are grouped based on common clients and their specific needs. Nike values this approach as they strive to be a leader in innovation and meet customer needs promptly. One advantage of this method is that specialists can effectively address customer demands and issues. However, a downside is that there may be duplication of tasks as all managers perform similar duties but for different types of customers' histories. Additionally, this approach can limit the organization's overall goals as managers are primarily focused on customers. For instance, the Director of Sales would collaborate with the directors of Retail Accounts, Wholesale Accounts, and Team Accounts.

The text discusses the concept of Cross-functional Teams and Chain of Command in organizations. Cross-functional Teams are composed of experts from different fields, working together to develop new products or enhance existing ones. These teams cover all aspects of product sales, from identifying the target market to product design and manufacturing. For example, a Cross Functional Team for New Products may include specialists in sports, shoe designers, engineers, athletes, Sales Managers, and Marketing Directors.

Chain of Command refers to the hierarchy of authority

within an organization. It is the continuous line of authority that extends from the top levels of the organization to the lowest levels, clarifying who reports to whom. Factors to consider in the Chain of Command include authority and responsibility. Authority refers to who has the power to make decisions and oversee subordinates. There are two types of authority: advisory authority (line authority) where line managers consult with staff managers before making decisions, and functional authority (staff authority) where staff managers have the authority to make decisions within their area of expertise.

Responsibility refers to the duty to perform assigned tasks. The principle is that you can delegate authority, but you cannot delegate responsibility. It is important for authority and responsibility to be aligned.

Chain of Command in ?ommon ?oncern: The traditional organizational chart shows the authority and responsibility at each level of management in a vertical organizational structure.

The belief in early times was that a person's position of authority and rights were the only source of influence, thus making directors all powerful. However, the contemporary perspective on authority and responsibility is different from the historical viewpoint. Today's organizations are more complex than ever before. The importance of staff is increasing, and management is becoming excessively dependent on technical specialists.

Traditional concatenation of bidding limits the growth of a company. Nike, however, adopted a unique approach to bidding. As it expanded, Nike discovered a profitable market in high-end sports footwear, utilizing cost-effective manufacturing facilities in Europe. The company experienced

rapid growth, but executives were no longer able to fulfill the same role.

Despite having healthy net incomes, Nike failed to recognize changes in the market and responded by decentralizing authority and altering its merchandise line, reflecting new trends in contemporary organizational design. This design emphasizes direct communication across unit and house boundaries, disregarding the traditional chain of command. One crucial aspect of management is control.

The director's span of control encompasses all the activities they undertake to ensure that actual results align with planned results. Effective managerial control is achieved when variables to be controlled can be defined by established standards, when information is available to measure these standards, and when disciplinary action can be taken if the variable deviates from the desired standard. Standards serve as benchmarks and must be clearly stated and logically related to objectives in order to be effective. They are used to compare future, current, or past actions and provide the basis for determining what type of information should be collected for valid comparisons. An example of the span of control as a management function is Nike Corporation's recent implementation of a new computer-assisted interviewing process to change the span of control in their hiring procedure.

Nike understands that the control map involves providing answers to three basic questions:

• What are the planned and expected consequences?
• How can the existing consequences be compared to planned consequences?
• What corrective action is appropriate and who should authorize it?

Nike executives recognized the need to improve the effectiveness of the questioning process by implementing a

new computer-assisted interviewing procedure. The computer-assisted interviewing by Nike has both advantages and disadvantages. One advantage is cost savings, while another advantage is a shorter hiring process.

A third advantage of this method is that it can reduce employee turnover by effectively hiring the right people for the job. Additionally, a fourth advantage is the ability to gather data that can be used in future hiring waves or employee development processes. However, Nike's executives were concerned about whether computer-assisted interviewing actually improves or hinders employee selection. Selection refers to the process of choosing individuals with relevant qualifications to fill existing or projected job vacancies. The overall selection process is the responsibility of the HR department, and it is important for all managers to understand the objectives, policies, and practices used in this process. Those tasked with making selection decisions should have accurate information on which to base their decisions.

Nike, similar to other large organizations, undergoes a continuous process of engagement due to high staff turnover in the retail industry. Vacancies occur frequently and are filled by both internal and external applicants. The selection process at Nike is greatly influenced by the use of computer-assisted interviewing technology. For instance, when Nike recently established a store in Las Vegas, they advertised for 250 customer service representative positions and received an overwhelming response of 6,000 applicants.

Nike utilized IVR technology for the initial screening process. Candidates were required to answer eight questions over the phone. In this stage, more than 3,500 applicants were eliminated. The most common reason for elimination was their unavailability or lack of retail experience. The remaining 2,500 candidates underwent computer-assisted interviews at the store, followed

by a personal interview. It is worth considering whether this computer-assisted interviewing process could potentially overlook highly talented individuals who could be valuable employees for Nike due to flawed criteria. Just because an applicant lacks retail experience does not necessarily mean they would be unsuitable for a customer service representative position at a Nike retail store.

These applicants who possess great talent, skills, and suitability for retail positions were excluded from consideration due to their responses in computer-assisted interviews. However, when a human manager evaluates these applications, additional strengths of the applicant's profile can be identified, such as awards or notable achievements mentioned in the written resume. Of course, this traditional method of evaluation requires more time and paperwork compared to the computer-assisted interviewing process. Nonetheless, a human manager can discern more factors and qualities of each applicant through their human consciousness, unlike machine technology. The flaw in my analysis lies in the question related to retail experience, as many highly-qualified individuals were eliminated from the applicant pool. This is known as an opportunity cost – individuals who could have excelled in these new Nike job positions missed out because they lacked retail experience.

The goal is to maximize "hits," which are accurate anticipations in selecting successful job candidates. Girls are inaccurate anticipations that occur when 3,500 applicants are cut during the computer-assisted interviewing process based on inquiries about their retail experience. Other types of hits occur when people who would not have been successful on the job are excluded. Another type of girl occurs when a person who fails on the job is selected. Nike's computer-assisted interviewing process does not even know how many "missed chances"

there were because no human was involved in testing the 3,500 applicants. The basis for automatic screening was eight phone questions, which included "no" responses regarding experience in retailing or availability as needed.

The computer-assisted interviewing model used by Nike has a significant drawback. This is especially true when it is used for important job positions, such as store manager or any management position. If the questions used to screen applicants in the first round do not accurately gather information about their qualifications, then the entire screening process is flawed. This could result in the loss of highly skilled potential employees. The disadvantage of the computer-assisted interviewing process is that a potentially talented and highly qualified applicant for any company is only determined through a toll-free number and a series of questions asked by an IVR technology. If the right answers are given, then the applicant is referred for a face-to-face interview. This initial interview process completely lacks the human element. Even if an applicant does answer the questions correctly, this machine-like approach to finding applicants may discourage a highly qualified and talented pool of applicants.

Without having any human contact or person to discuss qualifications and skills, the applicant may want to consider exploring other opportunities with companies that still value direct interpersonal communication during job interviews. Another important aspect that Nike executives need to consider when implementing the computer-assisted interviewing process is the legal environment. In the United States, there are laws that require all employers, whether private or public, to adhere to strict legal guidelines in providing equal employment opportunities to all applicants regardless of their gender, race, ethnicity, religious affiliation, or national origin.

The Civil Rights Act of 1964, which was amended in 1991, is likely the most stringent piece of legislation regarding the requirement for all employers to offer equal employment opportunities.

Could the computer-assisted interviewing procedure potentially undermine this protection? Nike needs to improve the human contact aspect of the computer-assisted interviewing process.