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HRM in Practice FY08/09

Since Nike developed Human Resources Management (HRM) training to strengthen contract manufacturers' HRM systems and support lean manufacturing implementation, two waves of factories have taken part: eight factories in Vietnam in November 2008 and eight factories in Southern China in March 2009.

Prior to participating in the workshop, each factory completed an employee satisfaction survey to better understand the top issues facing workers and to measure mutual trust and respect in the factory.

Factories brought survey results along to the two-week training so they could apply their workers' insights to creation of action plans and HRM best practices. Each factory developed action plans to address core HRM areas, including supervisory skills, incentive structures, employee turnover and employee satisfaction.

Following the training, factories have begun implementing their specific action plans with six-month deliverables.

One factory set specific goals for reducing the number of workers reporting dissatisfaction with the behavior and attitude of their direct supervisor from 15 percent to 5 percent. The factory identified targeted training for supervisors including management, trust and respect, leadership, company policies and grievance systems, tying training completion directly to key performance indicators tracked within the factory.

Another has set plans to increase the technical skill level among workers on the shop floor. Rather than focus only on building workers' technical skills, the plan requires supervisors to understand the importance of these skills among workers, which often had been overlooked. Plans also include reassessing skill levels, sharing with leadership and using findings to increase and improve training.

For both factories - and all those participating in the training - each step in the process had clear goals, responsibilities, timelines and methods for tracking progress.

Factories reported positive results. Statements from factories participating in the training include:

  • "The HRM workshop was able to highlight the importance of having a strong HR system."
  • "Human resources is one of the most important assets of the company as a foundation of lean."
  • "We now share best practice at our weekly meetings and include CR and HR."
  • "I am confident that our goals will be achieved within the year."
  • "HRM has helped us to have a better understanding of how strong HR supports lean. If HR is strong, we'll use effective processes to recruit the right people and develop them with a foreseeable career path. Skilled employees will stay with us longer. This means our turnover rate will be reduced and our recruiting efforts and training investment are not wasted."
  • "The HRM tools we received are helping us follow our projects closely, followed up by responsible persons within specified timelines, giving a greater chance to realize measurable improvements."
  • "HRM created a community where each factory set off the boundary of its own experience and knowledge. In return, each factory received many good practices - a great return on investment."

Factories are not alone in this process. Factories are supported by the HRM Learning Community established in the training. The Learning Community brings together factories that shared the training and continue to share lessons learned and best practices meeting bimonthly.

The real measure of success will be the HRM training's ability to drive systemic and lasting improvement in working conditions. Nike is working closely with contract factories in their implementation of action plans and ongoing efforts to monitor workers' experience.

HRM Training Program

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