effective communication at P&G

Topics: Business process outsourcing, Outsourcing, Management Pages: 10 (1984 words) Published: March 20, 2014
Effective Communications
on P&G’s Restructuring
HR280 Summative Assignment – A Case Study
Mayra Maia Fiorini
University of Brighton Business School
Business Management with Finance
Group P - 11841746

Word Lenth 1650

January 2013

HR280 Summative Assignment 2013
Summary: ___________________________________________________________ 2 Figures Index ________________________________________________________ 2 Abbreviations ________________________________________________________ 3 Introduction _________________________________________________________ 4 P&G Restructuring Challenges _________________________________________ 5 Restructure Alternatives _____________________________________________ 5 Keeping GBS In-house __________________________________________________________ 5 Spin Off GBS as a Separate Entity ________________________________________________ 5 Outsourcing GBS Services to One or More Companies ______________________________ 5

P&G’s Full Disclosure Policy & Decrease in Motivation Due to Uncertainty __ 6

Effective Communications on Restructuring ______________________________ 7 Avoiding Uncertainty ________________________________________________ 7 Communication Mechanisms and Avoiding Noise _______________________ 8

Conclusion _________________________________________________________ 10 References_________________________________________________________ 11

Figures Index
Figure 1 - Communication Process (Source: Buchanan & Huczynski 2010, model) ___ 8 Figure 2 - Knowledge Pyramid (Source: Christopher & Tanwar 2012) ______________ 10


Mayra Maia Fiorini – Business Management with Finance

HR280 Summative Assignment 2013
P&G – Procter & Gamble
GBS – Global Business Services
BPO – Business Process Outsourcing
HP - Hewlett Packard
IPD – Institute of Personnel and Development
IAOP – International Association of Outsourcing Professionals


Mayra Maia Fiorini – Business Management with Finance

HR280 Summative Assignment 2013
This report’s objective is to study P&G’s restructuring alternatives and the communicative issues raised from it, presenting possible applications of effective communication theories to overcome those issues.

Harvard Business School’s article (Delong et al, 2005) will be used as case study to consider the events that followed P&G’s decision to restructure and to evaluate the effects of these decisions on its employees’ morale. Books and academic journals will be used as reference to support this report’s affirmation.

This assignment will work to prove that, regardless of its simplified, standardized, and systemic strategy used on its outsourcing GBS (IAOP, 2013), P&G could have had a more effective communication strategy communicating those changes to its employees.


Mayra Maia Fiorini – Business Management with Finance

HR280 Summative Assignment 2013
P&G Restructuring Challenges
Restructure Alternatives
Keeping GBS In-house
P&G decision to restructure arrived from understanding that GBS was highly specialized but not part of the company’s primary operations (Delong et al, 2005); therefore the company may not be able to provide appropriate capital investment in the division creating the possibility of it losing competitive advantage in innovation.

The choice of keeping GBS in-house would be the less disruptive option (Delong et al, 2005), but not necessarily the best option for the company and GBS.
Spin Off GBS as a Separate Entity
Outsourcing services are increasing in complexity; the industry is still establishing itself allowing it to be shaped by the most sophisticated suppliers and customers (Couto & Divakaran, 2009). For GBS to enter such competitive market could be difficult as P&G worried that, even though alone it carries market value, it was unknown if its expertise would be sufficient to compete with more experienced BPO businesses (Delong et al, 2005).

For GBS...

References: Adler, G. (2011) Management Communication. Harlow: Pearson
Bisel, R
Chang, Y. B. & Gurbaxani, V. (2012) ‘Information Technology Outsourcing,
Knowledge, Transfer, and Firm Productivity’, MIS Quarterly
Christopher, D. & Tanwar, A. (2012) ‘Knowledge Management in Outsourcing
Environment’, The IUP Journal of Knowledge Management
Cone, E. (2002) ‘Big Bang in the Back Office’, Baseline. August 2002, pp.18-19
Cornelissen, J
Couto, V. & Divakaran, A. (2009) ‘How to be an Outsourcing Virtuoso’, in M
Czinkota, M R Czinkota, A Ronkainen & M Kotabe (eds) Emerging Trends,
‘Procter & Gamble: Global Business Services’, Harvard Business School. July
12, 2005
Dutfield, M. & Eling, C. (1990) ‘Managing Change’, in The Communicating
Gibson, S. (2006) ‘HP Goes Distnce for P&G’, eWeek. March 20, 2006, pp.4952
Guang Qu, W., Pinsonneault, A
Holbeche, L. & Matthews, G. (2012) ‘Engagement in Tough Times’, in Engaged.
California Management Review. Vol.54, 3, pp.98-115
IAOP (2013) International Association of Outsourcing Professionals Honors
Procter & Gamble and Cisco for Global Excellence in Outsourcing [online]
http://www.iaop.org/Content/23/196/3358 [Accessed January 20, 2013]
IPD (1998) The IPD Guide on Outsourcing. Wiltshire: The Cromwell Press
Leipzig, J
NetworkWorld. April 21, 2003, pp.19-22
Muller, M
Saran, C. (2004) 'Procter & Gamble adds to HP outsourcing deal ', Computer
Shin, J., Taylor, M. S. & Seo, M. (2012) ‘Resources for Change’, Academy of
Management Journal
Thibodeau, P. (2010) ‘Outsourcing Deal Gives P&G Clout with HP Execs’,
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