Nike Hrm Issues and Solutions

NIKE Inc. main headquarters are located in Beaverton, Oregon. Mark Parker leads the executive team of NIKE Inc. NIKE website says that, “Parker joined NIKE as one of our first footwear designers back in 1979, and he’s been at the center of NIKE innovation ever

Nike Inc. was established in 1972, from Blue Ribbon Sports Company that was formed earlier in 1964, by Bill Bowerman and Philip Knight. The company first specialized in athletic footwear until in 1979, when it introduced the apparel line. The equipment division was later introduced in 1996. The company grew spontaneously to become the world's largest supplier of all sportswear, equipment, and apparel. The level of its infrastructure could only be compared to that of Adidas, which has been its main competitor over the decades. Currently, Mark

Compensation systems can take on many forms, all of which have positives and negatives related to it. However, certain components are noted to be determinants of solid compensation plans. One agreement of a solid compensation system is the use of incentives. “Clearly a successful companies set objectives that will provide incentives to increase profitability” (Needles & Powers, 2011). Incentive bonuses should be measures that the company finds important to long-term growth. According to Needles & Powers (2011) the most successful companies long term focused on profitability measures. For large for-profit firms, compensation programs should offer stock options. The interweaving between the market value of a company’s stock and company’s performance both motivate and increase compensation to employees As the market value of the stock goes up, the difference between the option price and the market price grows, which increases the amount of compensation” (Needles & Powers, 2011). Conclusively, a compensation plan should serve all stakeholders, be simple, group employees properly, reflect company culture and values, and be flexible (Davis & Hardy, 1999; The Basics of a Compensation Program).

Since the 1990s, Nike has been embroiled in controversy over its use of sweatshops. Including numerous media reports of workers earning very little an hour (14 cents per hour), and even workers abused by sub-contractor (Allarey, 2015). Incidents such as these are ingrained in Nike’s history and not quickly forgotten. However, as CEO I would like to attempt to correct wrongs.

NIKE Inc., known for its athletic shoes, apparel, and it wide variety of sporting goods is located in the state of Oregon. NIKE Inc. previously known as Blue Ribbon Sports was originated in 1964 with the idea of importing shoes from Japan and sells them locally. Once successful, the founders, Bill Bowerman and Phil Knight, decided to market their own brand of athletic shoes. As a result, NIKE Inc. was established. From there, NIKE Inc. has a long history of success in producing quality, durable athletic merchandise that focuses on the athlete. In

The right compensation program will depend on the organization’s business strategy and goals. To achieve these, an organization must recruit and select the best possible employees. To attract such employees, there must be an attractive compensation plan. Competitors will be offering different payment options, this may be based on pay rate or special perks, and a company’s stock options. Organizations must be aggressive yet reasonable to compete with competitors. Retaining and encouraging employees to perform at their best may be achieved through an immediate incentive award

One major key component that allowed Nike to get to the elite status they are today would have to be the expectations they have for their employees. In their code of ethics book they clearly state on the fifth page that “every employee must reflect standards of honesty, loyalty, trustworthiness, fairness, concern for others and accountability” (NIKE Code of Ethics). These expectations of their employees shows how much Nike values its company, and it ensures every employee knows what is expected of them. None of these expectations has hindered Nike’s ability to get employees. Most, if not all, of Nike’s employees claim there’s a great work environment at Nike, which all starts with the expectations they put on them in the beginning.

Nike does not own any of the factories that produce its products in Asia, and subsequently they do not directly employ the workers or management. They contract out work to factories that make all of the products and run all of the factories. They have a massive amount of leverage when

As a company, Nike is extremely profitable; it is the biggest shoe company and has become the fourth biggest industry leader. Nike can easily afford to increase wages of people that do labor work for the company without even the slightest loss but unfortunately chooses not to. According to the SEC, “In 2007, Nike’s advertising budget was $678 million. Realistically, Nike could pay all its individual workers enough to feed and clothe themselves and their families if it would just devote 1% of its advertising budget to workers' salaries each year!” (A background on…) In Nike’s Code of conduct, they state that in the area of human rights and in the communities in which they do their business, they want to do everything required of them as well as what is generally expected of a leader and thus by magnifying on the wrongs an industry leader commits, changes in the entire industry is expected.

By joining a task force that helps promote fair labor practices, Nike is taking responsibility for its actions and showing the global market that is does take an interest in those working in the factory. This helps to alleviate any hesitation consumers may have with purchasing products made by Nike.

To combat these accusations, Nike instituted a code of conduct to prevent factory owners from forcing overtime, paying low wages, and being abusive. “Critics have charged that Nike’s Code of Conduct is minimalist and not fully enforced, claiming that posting the Code in factories where most employees are functionally illiterate and/or do not possess the power to insist on its implementation is simply window dressing” (MIT). Sweatshop workers feel they cannot rise up at risk of being fired. Managers may feel they cannot enforce some of the regulations because of deadlines and limited amounts of money. As the accusations grew, Nike established a department that oversaw the lives of the workers in their subcontracted factories. (BUSINESS) In 1997, a subcontractor of Nike in Vietnam forced 56 women to run outside until twelve of the women collapsed. These women were punished for wearing improper footwear to work. (Vietnam) Nike claims they were horrified that this happened. Some may argue that Nike could be more horrified that this report had surfaced. To assuage the demand for action, Nike created the Fair Labor Association (FLA), which has its own code of conduct to help regulate the condition in

If Nike would use all its power to try to give better work conditions and wages and in the end the companies donʼt live up to that, Nike should not be held that responsible although I would strongly suggest to end the contract.

Although Nike may be technically removed from responsibility in some areas, it clearly has the obligation to be certain that exploitation by subcontractors do not occur. Certainly the pay and working conditions that the workers of subcontractors receive is due in large part to the contract that has been negotiated by Nike. If Nike had chosen to make improved working conditions a part of the arrangement, them those benefits may have been passed on to the workers. Still, Nike is a publicly owned firm whose goal is to improve the wealth of its shareholders. The workers in these Asian countries were happy, even eager, to accept the conditions that were provided as a manufacturer of Nike. The reason is that those wages were probably equal or superior to wages available from other sources. If Nike were to leave the country because of the pressures placed upon it, the workers would undoubtedly suffer greatly.

They should be responsible for the legal, social and philanthropic aspects of its subcontracted factories. They are not paying their employees the legal minimum wage, caring about the working conditions and welfare of these employees and just not taking into consideration the well-being of others. Ten years ago, the company had been subjected to negative press, lawsuits, and demonstrations on college campuses alleging that the firm’s overseas contractors’ subject employees to work in inhumane conditions for low wages. With the introduction of the fair labour association and worker rights consortium, Nike is slowly trying to improve the working conditions on subcontracted factories and hopefully in 10 years, they would be able to re-establish themselves as a morally acceptable company.

NIKE, Inc. is a multinational corporation, found in 1965 as Blue Ribbon Sports by Bill Bowerman and Phil Knight. It is headquartered at Beaverton, Oregon, US. Nike works to design, develop, manufacture, market and sell apparel, footwear, equipment, accessories and services. BRS was renamed Nike in 1971.