Driving Innovation Through HRM

Submitted by:
Anshul Yadav
Ekta Soni
Papiha Sahu
Varun Singh

P & G : HR Practices and Innovation

The HR function at P&G is not traditional support function but a strategic function. HR
here is a change and development agent and not the Police of the organization.

Open Innovation (Major policies and practices)

This is the major policy of P&G that has led its innovation successively to a second
decade. Aiming to speed and simplify external innovation connections, P&Gs Connect +
Develop program even has a website (pgconnectdevelop.com), linking innovators directly
to top Company needs, and P&G business leaders directly to external innovation
submissions. It has also teamed up with third party matchmakers Innocentive.
The company has the policy of crowd sourcing where it asks its customers regarding
their requirements and expectations.
Google and P&G even swap employees to do idea networking, sharing of ideas and not
just resource to tap outside experts.

RECRUITMENT AND SELECTION

Entry level 1 % of 400,000
Global Adaptive Reasoning Test, a cognitive assessment used by the
company at the start of the hiring process (Impact Award by SHRM)
Line manager interview instead of HR
At P&G, less than 5% of hires come from the outside at a later stage
Major external recruitment from earlier interns from collaborated
universities
Hirings from Career Bridge, a paid internship, thus recruiting
professional level immigrants leading to more workforce diversity
(2008 IS Awards, Canada)

Compensation
At P&G the HR is just a facilitator and the salaries and compensation is under
purchase department. P&G however pays salaries above average salary of the
industry. HR however, does formulate policies for the same.
P&G implements a stock and incentive compensation plan that allows rewards in
form of common stock as well as monetary.

Training and development

Training road map centre for each level and section
Build from within leadership program
Employees trained to work in different countries and businesses
Discussions about business goals and next ideal job
Leadership programme linked to advancements

External Relations

P&G has multiple partnerships with universities like Leeds and other organizations like Circle Up to remain innovative
on the go. It also has teamed up with Oak Ridge National Laboratory to help solve some of their companies innovation
challenges.

Employee taskforces with HR as just a facilitator (They have both the budget and the empowerment to take decisions
which ensures successful completion of the project.

Thus P&G strives to create an innovation culture within and outside the organization.

Implementation in other companies

P&G focusses highly on open innovation, few factors of which are quite
implementable in other organizations. Sourcing ideas from the customer is a
great way of incorporating customer feedback and generating customer
involvement. The trademark licensing to products that are good fit with
established brand equity. This can and should be implemented by different
organizations to continually remain innovative.

Building capabilities from within and training employees for a diverse array
of roles and responsibilities helps build cross functional teams thus solving
the issue of excessive dependency on a single employee. However, this can
be done only in case of such diverse organizations.

The recruitment policy however is not imitable for several organizations,

pertaining to high attrition rates and fast expansions.