Nike Term Paper

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Human Resource Management
Term Paper Assignment
Johnny OOI Chuen Seong [SID: 5310520015]

10

Table of Contents
1 2 Introduction ........................................................................................................................ 1 Company Background ....................................................................................................... 1 2.1 2.2 Human Resource Background ..................................................................................... 3 Human Resources Management .................................................................................. 5 HRM of Nike Inc. & Subsidiaries........................................................................ 5

2.2.1

2.2.1.1 Human resources management and the environment ....................................... 6 2.2.1.2 Acquiring human resources .............................................................................. 7 2.2.1.3 Deloping human resources ............................................................................... 7 2.2.1.4 Labor-management relations and promoting safety and health ....................... 7 2.2.2 HRM of Contracted Factories .............................................................................. 7

Human Resource Management
Term Paper Assignment

1 Introduction
This report is prepared in the intention to comply with the course requirement of Human Resource Management as part of the Master of Business Administration at Prince of Songkhla University. The report outlined the overview and background of a multinational or global company which specifically concentrate on the human resource management aspect of the company. The report will present the various strategies, strength, weakness and recommendation on the human resource management (HRM) in practice by the company at this moment. In the context of this report, the detail of related issues of Nike Inc. is reported. The reason that Nike Inc. was chosen as the subject for this report because of the criticism faced by Nike Inc. in regards to violation of labor laws by its contractor which evince the fiasco in Nike HRM strategies in managing its contractor. In spite of being a global leader in athletic footwear that dominated 31 % of global market sharei with total revenue of US$ 19.17 billionii (2009 Fiscal Year) and net income of US$ 1.49 billioniii. The report is intended to investigate the HRM strategies implemented by the company to manage its contractors in combating child labor, violation of minimum wages and overtime criticism. Furthermore, the information pertains to Nike Inc. internal HRM Strategies will also be included in this report.

2 Company Background
In January 1964, Bill Bowerman and Philip Knight established Blue Ribbon Sports with an initial investment of US$ 500 each which later became Nike Inc. in 1978. Nike Inc. is a major designer, manufacturer and supplier of athletic product which market three main product segments; this includes footwear, apparel and equipment. The products are manufactured in 46 countries around the world with approximately 600 contracted factories. In the whole supply change of Nike Inc. includes its supplier, shipper, retailers, and other business partners in its manufacturing, distribution and retailing of its product around the world, there is a total more than 1 million people involved in this supply changeiv. Nike Inc. markets its products under its own brand coupling with its highly renowned trademarks of the Swoosh logo and the slogan “Just Do It”. Moreover, the company also market products by its subsidiaries company which includes Cole Hann, Converse Inc., Hurley International LLC. and Umbro Ltd.. In 2009, the sales of Nike Inc. in United States market accommodate to 42% of its total sales figure and the remaining 58% was generated through international market (180 countries around the globe) which has 336 retail stores [John OOI Chuen Seong] | [SID:...
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