1. Human Resources Manager
Procter & Gamble
HR Systems & Practice
July 23, 2003
D.E. Song
Human Resources Manager
Procter & Gamble Korea

2. Agenda Procter & Gamble Company HR Systems Overview HR Systems
HR Organization
HR Capability
Q&A / Discussion

3. Procter & Gamble Company
Established in Cincinnati, Ohio, US in 1837
A global leader in consumer goods
$40+ billion sales
100,000 employees worldwide
Operations in 80+ countries
Products sold in 160+ countries

4. Procter & Gamble Company
Procter & Gamble stands for
brands
marketing
innovative products
progressive HR practices
ethical conduct of business
high performance organization
and more

5. Procter & Gamble in Korea
Joint venture (P&G-STC) in 1989
Local manufacturing in 1989
100% ownership in 1992
Chonan plant start-up in 1994
SsangYong Paper Company acquired in 1998

6. Procter & Gamble in Korea
$530 million sales
900 employees
General Office in Seoul
Plants in Chochiwon, Chonan, and Osan
Brands -- Pantene, Vidal Sassoon, Whisper, Cutie, Codi, Izzi, Charmin, Febreze, Pringles, SKII, Ivory, Joy, Crest, etc.

7. P&G HR Systems Overview
A holistic system approach
A strong linkage to P&G business model
A strong Corporate culture
Corporate Purpose, Values, Principles
Business Conduct Policy
165+ years of trial and error

8. Corporate Purpose, Values & Principles
Purpose, Values and Principles represent the Corporate Culture.
PURPOSE states the most fundamental reason why the organization exists.
VALUES are the core concepts that define the character of the Company and its people
PRINCIPLES are the guidance by which choices, decisions, and behaviors are determined.

9. Purpose, Values and Principles
We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers
Principles
We show respect for all individuals
The interests of the Company and the individual are inseparable
We are strategically focused on the work
Innovation is the cornerstone of our success
We are externally focused
We value personal mastery
We seek to be the best
Mutual interdependency is a way of life

10. Purpose, Values and Principles
Values: P&G People
We attract and recruit the finest people in the world.
We build our organization from within, promoting and rewarding people without regard to any difference unrelated to performance.
We act on conviction our people will always be the most important asset.

11. Purpose, Values and Principles
We show respect for all individuals
The interests of the Company and the individual are inseparable
We are strategically focused on the work
Innovation is the cornerstone of our success
We are externally focused
We value personal mastery
We seek to be the best
Mutual interdependency is a way of life

12. Purpose, Values and Principles
We show respect for all individuals
We believe that all individuals can and want to contribute to their fullest potential.
We value differences.
We inspire and enable people to achieve high expectations, standards, and challenging goals.
We are honest with people about their performance.

13. P&G HR Systems Overview
Organization Performance Model
"All organizations are perfectly designed
to get the results they get."
Business
Results
Business
Situation
Structure
Reward
Business
Strategy
Culture
Decision
Making
Task
People
Information

14. P&G HR Systems Overview: Key Features
Home-grown management
Early responsibility
Manager manages employee.
Line organization responsible for organization development
HR develops and owns the systems. Line organization executes the systems. .

15. Business Need Analysis
Key factors in design and implementation
Business success (short term and long term)
Balance between business and organization
Productivity
Company's needs and wants from employees
Employee's needs and wants from Company
Determine the type of people, skills, and experience we need for the business to be successful
Determine the type of organization and its culture we want to build

16. Recruiting: Selection Criteria
Success Actions for Winning (factors of effective performance at P&G)
Selection criteria and screening tools are founded upon successful employee profile and verified throughout the world
Global Screening Tools
PST
MAF
Interviews

17. Success Actions for Winning
Leadership
Capacity
Risk-taking
Innovation
Solutions
Collaboration
Mastery

18. Training Onboarding e-Learning Corporate College Functional College
On the Job Training

19. Training: Korea HR Rapid Learn HR Net HR Onboarding HR Team Space
Corporate College
OJT
Job Rotation
HR College

20. Corporate Training
Classroom Training: New Hire College, People Development College (1, 2, 3), Time management, Memo writing, People and communication skill, Team effectiveness, Workout, Work process change, Improving your personal leadership, etc., etc.
Rapid Learn (on-line computer based training) .

21. Functional Training Function onboarding 1-1 orientation
Qualification project
Function College
Classroom/on-line training
Self study
On-the-job training

22. Functional Training (HR College)
Acquisitions & joint ventures
Plans and benefits
Budget administration & financial responsibility
Building services
Communication (publications)
Compensation
Direction setting
Diversity
Employee data (CHRIS/Other Systems)
Employee development
Employee relations
High performance organization

23. Functional Training (HR College)
Industrial hygiene & safety
Labor relations
Medical
Organization assessment & design
Organization staffing
Organization transition
Policy management
Recruiting
Relocation
Security
Training (Formal)
Work Process Change

24. Learning Curve Performance Time on the Job 5 Years 8 Years Group 1

25. Learning Curve

26. Development Early responsibility Performance appraisal and feedback
Performance management process
Assignment planning
Overseas assignment
Succession planning (key positions only)
Talent development process (Fast Track)

27. Reward Pay competitively in the market Salary Benefits Stock Options
STAR bonus
Pay for individual performance
Relative rating ( )
Pay and promotion

28. Retention Regretted versus non-regretted
Retention (or turnover) analysis
Turnover analysis (exit interviews, exit questionnaire)
Employee Opinion Trend Survey
Organization Culture Survey
Organization Health Assessment

29. Retention Retention tools (Individual) Competitive compensation
Personal development opportunities
Longer term career growth
Coaching & counseling (Manager, sponsor, mentor, Human Resources)
Employee Assistance Program
Hot Line
Retention tools (Organizational)
Corporate culture
Work environment

30. Outplacement Needs for outplacement
Restructuring (plant closure, consolidation, outsourcing, productivity improvement, etc.)
Performance management
Outplacement system
Career counseling
Job search
Career Transition Center

31. Employee Relations & Policy
Role of Manager
Manager manages employees.
HR provides systems and resources.
Minimal third party interventions
Manage each employee as a respected individual
1-1 relationship between manager and employee
Principle based operation
Principles versus rules

32. Recruit the Finest People
Work Plan for the year ahead
Business Direction
Reward & Recognition
1:1 Relationship
Coaching
Feedback
Personal Development Plan
Review of Results
Career Planning
Development Program
Business Results
Career Interests
Performance Management
Retain the Finest People

33. HR Organization Model

34. HR Organizations Organization Capability Development
Recruit, Training, Development, Employee Relations, Policy, Organization Effectiveness
Employee Service
Compensation, Benefits, Payroll, Relocation, Employee Data
Work Place Service
Facility, Fixed Assets, Security
Plant HR

35. HR Career Model People Supply & Growth Account Manager People Support
Must have worked
outside home region;
must have worked in
at least 2 Bus. Units
Must have had T&B
assignments in other
functions; must have
had min. ONE assign-
ment outside home
country HR
Leaders
1 - 2 assignments
years in Co.
Levels 4 and 5 BU HR
Mgr.
Global
/ BU
Specialist
1 - 2 assignments
years in Co.
Levels 3 and 4
Site/Plant/
Org. Unit
HR/SPOC
Specialist for
a Business
Unit
People
Supply &
Growth
3 - 4 assignments
in first years
Levels 1 - 3
Account
Manager
People
Support

36. Summary
All organizations are perfectly designed to get the results they get.
The way you design HR systems determines the way you run the business.
HR systems build and reinforce the organization’s culture by translating its Values and Principles into action.
The culture or the way you operate determines the results.
HR builds the business by building organization capability.

37. Q&A
Discussion