Procter and Gamble (P&G) is a business idea developed by William Procter and James Gamble. The company was established in the year 1837. Initially the company, engaged in making candles and soaps. However, later the company started producing consumer goods such as beauty care, health care, baby products, food and beverages etc. The company suffered with several organizational and cultural issues between 1999 and 2000. The case study on P&G, suggests that the period of 1999 and 2000 has been headed by two different CEOs i.e. Durk Jager and Alan Lafley. Both of them managed the company in their own style and presented a good example of leadership skills. Therefore, the aim objective of this report is to highlight the challenges faced by P&G. The organizational challenges under this report will be evaluated on the basis of strategic development, HR practices and leadership styles under the two different CEOs. Although, each of the CEOs had there own individual personality, management style, leadership style and functioning but both of them evidently contributed towards the success of P&G. Additionally, strategic recommendations will be provided in the form of 5 year strategic plan which will be helpful in improving the HR performance, organizational culture and the overall financial performance of the organization. Introduction:
This report is solely positioned on the assessment of the organizational issues. These issues are present in Procter and Gamble under the leadership of two different individuals, Durk Jager who headed the organization in July 1999 and under the regime of Alan Lafley who ruled in June 2000. Both the styles of leadership and actions taken will be critically evaluated with reference to strategic development, leadership skills and HR practices. During mid- late 1990s, Durk Jager launched the organizational restructuring exercise, which included refurbishment of P&G's organizational culture, retrenchment of employees along with reduction in hierarchies.
Strategic development basically involves the changes and plans that were initiated within the organization by each of the leaders separately. Further, this report will be evaluating the consequences of these changes on the performance of the company. Secondly, Leadership styles will be explained on the basis of leading methods of both the CEOs and these methods will be analyzed using the transactional and transformational theories of leadership. Additionally, this report will analyze how employees overall performs due to different leadership styles. Thirdly, HR operations will determine the practices and rules that supervise personnel management, organizational behavior and employee relations. However, all these activities will be seen under both leader's authority. Finally, this report will demonstrate behavioral aspects of employees and their individual needs. In the last, the report will consist of strategic recommendations in regards to all the issues described. This will be carried out through a SWOT analysis on the existing HR rules and policies. Moreover, the plan in the report will address both best-fit and best practice concepts. Strategic Development:
Durk Jager Vs Lafley:
It may be defined as strategy that is adopted by the business to grow its business (CIPD 2012). However, Durk Jager at his time of presidency introduced various changes. He used Information Technology (IT) as catalyst for change, his vision was to influence innovative approach. According to Jager, the only way to increase the growth, sale , volume and earning is to remain constant throughout. Along with these changes, reorganization of company's corporate structure was done; P&G increased its business unit from four to five under Jager's supervision. Jager believed that his step would help to speed up decision-making power within the organization and additionally it helps in eradicating bureaucracy (Bryson 1988). The strategic development has...
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