Essay, 23 pages (6000 words)

Nike, its objectives and responsibilities essay


  • Contemporary


When Nike co-founder Bill Bowerman made this observation many old ages ago, he was specifying how he viewed the eternal possibilities for human potency in athleticss. He set the tone and way for a immature company called Nike, and today those same words inspire a new coevals of Nike employees.

A Nike end is toA carry on his bequest of advanced thought, whetherA to develop merchandises that help jocks of every degree of ability reach their possible, or to make concern chances that set Nike apart from the competition and supply value for our stockholders.

It started with a handshaking between two airy Oregonians – Bower adult male and his University of Oregon smuggler Phil Knight. They and the people they hired evolved and grew the company that became Nike from a US-based footwear distributer to a planetary seller of athletic footwear, dress and equipment that is unrivaled in the world. A

Along the manner, Nike has established a strong Brand Portfolio with several wholly-owned subordinates including Cole Haan, Converse Inc. , Hurley International LLC, NIKE Golf, and Umbro Ltd.

Nike universe central office is located near Beaverton, Oregon, a suburb of Portland. today the company operate in more than 160 states around the Earth. Through its providers, shippers, retail merchants and other service suppliers, Nike straight or indirectly employ about one million people.

That includes more than 30, 000 Nike employees across six continents, each of whom make their ain part to carry through our mission statement: to convey inspiration and invention to every athlete* in the universe.


Nike believe in the power of athletics to unleash potency. That ‘ s why Nike will put a lower limit of $ 315 million in grants, merchandise contributions and in-kind support through 2011 to give excluded youth greater entree to feature.

This twelvemonth, we ‘ ll assist convey athletics to a Somalian miss turning up as a refugee in Kenya, to a immature homeless adult male from Scotland with a passion for football, and to childs in New Orleans who are reconstructing their communities. We ‘ ll supply Nike merchandise, resurface old playing Fieldss, fund community-based plans and assist immature people create their ain communities.

These impacts come as we ‘ ve evolved how we frame, define and attack corporate duty. We see corporate duty as an built-in portion of how we can utilize the power of our trade name, the energy and passion of our people, and the graduated table of our concern to make meaningful alteration. So we ‘ ve set aggressive concern marks that embed our corporate duty ends into the company ‘ s long-run growing and invention schemes because the company believe there ‘ s no better manner to accomplish them than to bind them straight to our concern.

Overview: NIKE, Inc. ‘ s Brand Portfolio

NIKE, Inc. ‘ s wholly-owned subordinates – Cole Han, Converse Inc. , Hurley International LLC, NIKE Golf, and Umbra Ltd. – drama a important function in our program to turn to $ 23 billion in gross by the terminal of financial 2011. At the terminal of financial 2008, NIKE, Inc. ‘ s subordinates contributed about $ 2. 6 billion of the company ‘ s $ 18. 6 billion in gross, a 16 per centum betterment over financial 2007. As portion of our growing scheme, NIKE, Inc. continues to optimise its portfolio, guaranting that we invest in chances that will bring forth the highest possible returns. Adhering to this scheme, several of import alterations took topographic point over the past twelvemonth:

April 17, 2008 – NIKE, Inc. completed the sale of NIKE Bauer Hockey to Kohlberg & A ; Company and Canadian man of affairs W. Graeme Roust an for $ 200 million.

March 3, 2008 – Nike completed the acquisition of Umbro Ltd. which Umbro stockholders accepted on January 31, 2008 for about $ 565 million.

November 15, 2007 – Nike announced it reached a unequivocal understanding to sell its Starter trade name, the chief concern of the Exeter Brands Group, to Iconic Brand Group, Inc. for $ 60 million in hard currency. The dealing was completed in December 2007.

Awards & A ; Recognition

Aiming to take, in every manner.

Featured Award

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Nike Named to FORTUNE ‘ s 2008 “ 100 Best Companies To Work For ” List

Nike has been recognized three times ( 2006, 2007, 2008 ) by FORTUNE magazine on its “ 100 Best Companies To Work For ” list. A

Ethical motives:

Nike Named One of the “ World ‘ s Most Ethical Companies ”

The Ethisphere Institute named Nike to its second-annual “ World ‘ s Most Ethical Companies ” list at the Forbes, Ethisphere joint-conference. Ethisphere analysts reviewed codifications of moralss, investings in advanced and sustainable patterns, and activities to better corporate citizenship. Read more.

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Nike Named No. 3 on 100 Best Corporate Citizens List for 2nd Year Runing

Nike was ranked figure three in Corporate Responsibility Officers 100 Best Corporate Citizens 2008 list, the 9th one-year ranking of top corporate citizens among U. S.-headquartered public companies. Nike earned the same ranking last twelvemonth and rose from No. 13 in 2006 and No. 31 in 2005. The list is published by CRO Magazine.

Read more.

Nike Named as One of 100 Most Sustainable Corporations in the World

Innovest identified 100 Most Sustainable Companies in the Earth and Nike made the list. Companies were evaluated based on how efficaciously they manage environmental, societal and governance hazards and chances, relative to their industry equal. Read more.

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Nike Named One of the World ‘ s Top Sustainable Stocks

Nike claimed the lone topographic point in our industry for the 2007 Sustainable Business list of the World ‘ s Top Sustainable Stocks.

In their release from July 18th, Sustainable Business and KLD called out Nike ‘ s leading in the consumer merchandises country, stating: “ It ‘ s non easy to ‘ just make it ‘ when your fabrication is outsourced to subcontractors, but Nike is demoing it ‘ s possible. Its really impressive sustainability study drills down to the finest inside informations of the company ‘ s operations and merchandises. It is transforming its merchandises by utilizing green design rules, rooting out waste and toxics, and be aftering for C neutrality by 2015. ” Read more.


Nike Named for Apparel & A ; Innovation on Fortune ‘ s 2008 Most Admired Companies

For the 3rd back-to-back twelvemonth, Nike was ranked as the Most Admired Company in America in the Apparel industry, harmonizing to Fortune Magazine. Nike was 2nd behind Apple in Innovation in the overall rankings of more than 300 companies.

In add-on to puting foremost in invention in Apparel, Nike besides topped the industry in societal duty – up from third a twelvemonth ago – every bit good as fiscal soundness and long-run investing. Read more.

Nike Named to Fast Company ‘ s “ Fast 50 ” Most Advanced Companies List

Nike was called out 6th on the list for its advanced consumer experiences like Run Americas, the Nike Women ‘ s Marathon, Nike+ Supersonic, House of Hoops and NikeiD Studios. The magazine said Nike ‘ s “ latest masterstroke is societal networking. From events to the Web to unique retail hubs, Nike is film overing the line beween trade name and experience. “ A Read more.

I. D. Magazine 2007 Best Of Consumer Products – 2007 Three Nike merchandises have been recognized by I. D. magazine in its 2007 Best Of Consumer Product class. Nike ‘ s Revolutionary Support Sports Bra ( described by the magazine as “ a piece of dress worthy of the Title 9 coevals ” ) , the Considered 2K5 shoe ( “ Green does n’t hold to be ugly ” ) and Nike+ Air Zoom Moire ( “ as a contemplation of an active digital life style, this has no equal ” ) were selected. Read more.


Business Week – 2007 Nike placed # 55 on Business Week ‘ s 2007 Top 100 Topographic points to Establish A Career list. Students gave us even higher Markss ranking us # 14 based on a study of 44, 000 undergraduates. All 100 companies are featured online.

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FORTUNE Magazine – 2006, 2007 & A ; 2008

Nike has been recognized three times by FORTUNE magazine on its “ 100 Best Companies To Work For ” list for employee benefits like paid sabbaticals, on-site child care, and a 50 per centum price reduction on company merchandises, every bit good as for corporate duty attempts in turn toing conditions in abroad contract mills.

Oregon Business Magazine – 2005

Nike ranked 21st on the one-year list of 100 Best Companies to Work for in Oregon ; among all employers, Nike ranked # 1 for employee benefits in Oregon.

Corporate societal Responsibilty

Nike Recognized for its Leadership in Climate Change Solutions by World Wildlife Fund- 2007 As a founding spouse of the Climate Savers Program, Nike attained its company-wide mark, accomplishing one-year CO2 emanations decreases 13 per centum below 1998 degrees by the terminal of 2005. WWF noted our attempts to cut down nursery gas emanations by prosecuting energy preservation undertakings, buying clean power from renewable beginnings, puting in community energy efficiency undertakings, widening decrease activities to providers and subcontractors, and extinguishing SF6 from footwear, and showing that clime protection is good concern. Learn more

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Best Workplaces for Commuters- 2004, 2005, 2006

Recognized for commuter benefits plan and its significance on cut downing traffic and air pollution

United Nations Association of Australia World Environment Day Awards – 2004

Finalist for Business Enterprise Award for Nike Australia Reuse-A-Shoe

Sustainable Industries Journal – 2003

Nike ranked # 1 in the “ Companies in a Class all their Own ” list for usage of organic cotton and Reuse-A-Shoe run


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Nike a 2007 best topographic point to work for GLBT equality – 2007

Nike was one of 142 American companies cited as a 2007 best topographic point to work for homosexual, sapphic, bisexual and transgender ( GLBT ) employees by the Human Rights Campaign Foundation. Read their imperativeness release.

Human Rights Campaign – 2002, 2003, 2004

Nike scored 100 % on HRC ‘ s Corporate Equality Index for workplace patterns

National Congress of American Indians Leadership Awards – 2002


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Nike 5K for Kids Recognized As Youth Program of the Year

On February 12, 2008, Runing USA and YouthRunner. com named the Nike 5K for Kids Series the Youth Program Contributor of the Year. Learn More

USATF Names Nike Women ‘ s Marathon Charitable Race of the Year for 2006

Hong Kong Caring Company Award – 2003, 2004

Awarded by The Hong Kong Council of Social Services for Nike ‘ s Slam Dunk Basketball Challenge back uping Save the Children

Portland Trailblazers’Heart of the Community Award – 2004

National Head Start Association Award – April 2004

Honored for committedness to Head Start and support of early childhood instruction

Spirit of Portland Award – December 2003

Oregon Commission for the Blind ‘ s Private Sector Employer of the Year – December 2003

Australian Prime Minister ‘ s Community Business Partnership – 2003

Awarded “ Judges Encouragement Award ” for Nike ‘ s ARMTour Partnership

Oregon Food Bank – 2003

Received “ Stone Soup ” Award for voluntary fiting plan, nutrient contributions and support of Arnie Gardner, who serves on the OFB board

Organizational Structure:

The formal agreement of occupations within an organisation.


When Directors develop or change the organisational construction, they are engaged in organisational design. A procedure affecting determinations about six cardinal elements:







Organizations are formed when a group of persons unite to carry through a specific end. They are responsible for making a work environment that best utilizes resources such as people, undertakings and engineering. But, in order to run into this aim, they will necessitate to make an organisational construction or design. In our web site, we will research this construct farther by depicting the elements of organisational construction and design which include work specialisation, departmentalization, concatenation of bid, span of control, centralisation and decentalisation and common organisational designs.

1. WORK Specialization:

“ Organizations and society would derive from the division of labour, from the dislocation of occupations into narrow and insistent undertaking. ”

Work specialisation is best described as the grade to which undertakings in an organisation are divided into separate occupations. Another term for this would be division of labour, were division of labour peers portion of an activity. For illustration, NIKE ‘ s production of one brace of places peers 34 operations, with approximative 170 workers involved. Work Specialization can be traced back to the Hagiographas of Adam Smith in 1776, in his classical economic sciences philosophy, The Wealth of Nations, in which he claimed organisations and society would derive from the division of labour, from the dislocation of occupations into narrow and insistent undertakings. Smith concluded that division of labour increased productiveness by increasing each worker ‘ s accomplishments, salvaging clip lost in altering undertakings, and by making laboursaving innovations and machinery. Later in the 20th century Henry Ford reinforced this thought by utilizing this construct in an assembly line, where Ford workers were assigned a particular, insistent undertaking. Ford was able to bring forth autos at the rate of one per every 10 seconds.

Today work specialisation is still seen as a manner to do the most efficient usage of workers ‘ accomplishments, since workers are placed in occupations harmonizing to their accomplishments, and they are paid consequently. Other advantages are for illustration: the betterment of employee ‘ s accomplishments at executing undertakings, less dearly-won, easier, and more efficient employee preparation ( like the train-the-trainer theoretical account ) , and innovation for advanced equipment for mass production. Work specialisation is up to a certain point a beginning of limitless productiveness. Disadvantages include: ennui. Fatigue, emphasis, lowered productiveness, hapless quality of work, increased absenteeism, and higher occupation turnover. The diagram on the undermentioned page illustrates a generic construction of this component

Note that specialisation leads to departmentalization. NIKE ‘ s work specialisation construction design is as follows:

aˆ? Footwear.

aˆ? Apparel.

aˆ? Equipment.

aˆ? Marketing/ gross revenues.

SUB Catching:

For illustration, looking at the athletic footwear industry, a market were production of places remains inherently labour-intensive, and success means invention and rapid turn-around of design and production. NIKE has succeeded by staying flexible in a volatile market by utilizing farm outing relationships overseas in low labor-cost states. Today, subcontractors, or “ production spouses ” make 100 % of NIKE ‘ s production. Harmonizing to NIKE, 2001 Annual Report all footwear production was done outside U. S. As follows:

aˆ? 40 % China.

aˆ? 31 % Indonesia.

aˆ? 13 % Vietnam.

aˆ? 13 % Thailand.

aˆ? Apparel production: merely 5 % in the U. S. , and 28 % in other states. *See following chart.

NIKE has three types of farm outing relationships:

aˆ? Developed spouses: These production partnerships were foremost in Japan, but are now in Taiwan and South Korea. These spouses produce the “ upper echelon ” of places, or expensive “ statement ” places, typically in smaller batches ( 10-25K braces a twenty-four hours ) .

aˆ? Volume spouses: These are big mills bring forthing big batches of standardised, lower-priced footwear ( 70-85K braces a twenty-four hours ) . Production is routinized and serves multiple ( frequently more than 10 ) companies, other than NIKE ( e. g. , Reebok ) , relationships between NIKE and these companies are less loyal.

aˆ? Developing spouses: These mills are located largely in Thailand, Indonesia, and China. These locations offer NIKE really low labour costs and a “ hedge ” against lifting labour costs in other mills or exchange rate hazard. These mills are more loyal to NIKE.

The mean NIKE shoe features 34 parts with about 170 workers involved in the devising of a individual brace of NIKE places. But that does n’t stop the complexness of the full procedure of conveying a NIKE shoe to the market. Category Product Teams, dwelling of NIKE interior decorators, developers, and selling specializers with expertness in a specific athletics class, portion the duty for everything from initial market research to material choice and selling of an single NIKE shoe, a procedure that typically takes between 16 and 18 months. Once work undertakings have been defined, they must be grouped together in some manner through a procedure called Departmentalization. In other words Work specialisation leads to departmentalization.


The end of departmentalization is to group different offices and occupations that were divided up through work specialisation so that common undertakings can be coordinated. This can be accomplished by utilizing the five following departmentalization. This could go hard for the Nike corporation because its immense company size and because of the fact that it has international offices. The advantages and disadvantages should be weighed before they are applied.

Functional Departmentalization groups occupations by the maps that they perform. All types of organisations can utilize this attack although maps may alter to reflect the organisation ‘ s aims. One advantage improved efficiencies from seting together similar fortes and people with common accomplishments, and orientations. Another advantage is that there is a batch of coordination within functional countries. The concluding advantage is in-dept specialisation allows for more precise working of installations.

Functional Departmentalization besides has disadvantages. One disadvantage is that there is hapless communicating across functional countries because the technology director may non understand accounting, and the accounting director may non understand fabrication. Another disadvantage is a limited position of organisational ends.

A good illustration of this type of division is a Plant Manager supervising the maps of the Manager of Engineering, the Manager of Accounting, and the Manager of Manufacturing.

Product Departmentalization occupations are grouped by merchandise line in which each major merchandise country is placed under the authorization of a director whom is responsible for all facets of the merchandise line.

One advantage is that it allows specialisation in peculiar merchandises and services. This is peculiarly of import to Nike because jocks expect their athletics places to execute otherwise than places of other athleticss. Another advantage is that directors can go experts in their industry. The company besides comes closer to clients and their desires.

Two disadvantages are duplicate of maps and limited position of organisational ends.

An illustration of this division would be the Athletic Shoes Departments supervising the maps of the Basketball Shoes division, the Baseball Shoes division, the Running Shoes, and the Cross Training Shoes division.

Geographic Departmentalization groups occupations on the footing of district or geographics. This is a entire necessity for Nike because it is a planetary transnational company.

The advantages are that Nike can be more effectual and efficient in handling of specific regional issues that arise and can break function the demands of alone geographic markets. One disadvantage is duplicate of maps is ineluctable because all the directors do the same occupation but in different countries. Another disadvantage is that these directors may experience isolated from other organisational countries because their expertness is needed most at their current country and make non go forth their country much.

It would be structured with the Vice President for Nike Co. Gross saless supervising each Gross saless Director for the United States of America, Asia, Europe, etc.

Procedure Departmentalization groups occupations on the footing of merchandise or client flow where work activities follow a natural processing flow of merchandises or even clients.

An advantage is a consequence of more efficient flow or work activities. A disadvantage is that is can merely be used with certain types of merchandises depending on its graduated table size.

The Plant Superintendent would work in concurrence with the directors of the Materials Department, Assembling Department, Finishing Department and the Inspection Department.

Customer Departmentalization groups occupations on the footing of common clients who have common demands or jobs that can outdo be met by holding specializers for each. This is really of import to Nike because they want to be the leader in invention to acquire to the client needs first.

An advantage is that client ‘ demands and jobs can be met by specializers.

A disadvantage is that there is duplicate of maps because all directors perform similar undertakings but for different history types. There is besides a limited position of organisational ends because directors are client focused.

The Director of Gross saless would work with the directors of Retail Histories, Sweeping Accounts, and Teams Accounts.

The concluding grouping is that of Cross-functional Teams. It is a current tendency that groups persons who are experts in assorted fortes and who work together to come up with new merchandises or better on bing 1s. It groups the top notch persons from separate sections of a company to cover every facet of peculiar merchandises gross revenues from specifying the mark market, to specifying the merchandise, to working with fabrication on a executable design.

Cross Functional Team of New Products groups athleticss specializer, shoe interior decorators, shoe applied scientists, jocks, Gross saless Manager and Marketing Directors


1. Definition: Chain of bid is the uninterrupted line of authorization that extends from the upper organisational degrees to the lowest degrees and clarifies who reports to whom.

2. Factors to see:

a. Authority: Who has the authorization to do determinations and who is expected to oversee which subsidiaries?

( 1 ) . Advisory authorization ( Line Authority ) : the outlook that line directors will confer with with staff directors before doing determinations.

( 2 ) . Functional authorization ( Staff Authority ) : staff troughs ‘ authorization to do determinations and issues directives within their country of expertness

B. Duty: The duty to execute any assigned responsibilities.

aˆ? Typical rule: You can depute authorization, but you can ne’er depute duty.

aˆ? Authority should ever equal duty.

c. Unity of bid: The direction rule that each individual should describe to merely one director.

aˆ? A determination can be traced back from the subsidiaries who carry it out to the director who made it.

3. Chain of Command in common concern:

a. Traditional organisational chart indicates the authorization and duty at each direction degree under a perpendicular organisational construction.

B. Early direction believed that the authorization and rights inherent in one ‘ s formal place were the exclusive beginning of influence ; so, directors were all powerful. However, the modern-day position of authorization and duty differ from the historical position. The current organisations are more complex than of all time. Staff are going more of import And direction ‘ s dependance on proficient specializers is escalate alarmingly. Traditional concatenation of bid becomes the restraints of company ‘ s growing.

c. Nike learned to set its concatenation of bid in a difficult manner. During its expanding, Nike found a niche in high athletic places, using European designs made in less-expensive mills. The company grew quickly, but it became impossible for executives to play the same function. Despite healthy net incomes, the company became blind to alterations in the market. Nike responded by deconcentrating authorization and changing its merchandise line.

d. New tendency in modern-day organisational construction design makes concatenation of bid lose its importance. Nike ‘ s web construction enables direct communicating across unit and house boundaries, which ignores the concatenation of bid.


One of the most of import direction maps is control. The span of control in direction includes all the activities the director undertakes in trying to guarantee that existent consequences confirm to planned consequences. Managerial control is effectual when criterions can be established forth variables that are to be controlled, when information is available to mensurate the set up criterions, and when directors can take disciplinary action whenever the variable perverts from the coveted criterion. Standards are marks. To be effectual, criterions must be stated clearly and related logically to aims. Standards are the standards against which hereafter, current, or past actions are compared and therefore supply the footing for designation of what type information demands

To be collected in order to do valid comparings. The span of control as an organisational direction map can be best illustrated by utilizing Nike Corporation ‘ s recent debut of a new computer-assisted interviewing procedure to alter the span of control of the hiring procedure by direction.

Nike ‘ s direction understands that the control map involves implementing methods that provide replies to three basic inquiries: ( 1 ) what are the planned and expected consequences? ( 2 ) By what means can the existent consequences be compared to planned consequences? ( 3 ) What rectification action is appropriate from which authorized individual? Nike executives considered the demand to better the effectivity of the questioning procedure by implementing a new computer-assisted interviewing procedure.

The computer-assisted interviewing by Nike was found to hold advantages and disadvantages. One advantage is a cost advantage. Another advantage is shortening the hire rhythm. A 3rd advantage is cut downing employee turnover through engaging the right people for these occupations. A 4th advantage has been cited as leting the company to capture informations that can be used in subsequently engaging moving ridges or in the employee development processes. The chief issue for Nike ‘ s executives after utilizing this new method was – Does computer-assisted questioning better employee choice or impede it?

Choice is the procedure of taking persons who have relevant makings to make full bing or projected occupation gaps. The overall choice plan is the formal duty of the HR section. It is of import for all directors to understand the aims, policies, and patterns used for choice. Those responsible for doing choice determinations should hold accurate information upon to which to establish their determinations. Nike, like any big organisation, is traveling to be engaged in choice as a uninterrupted procedure because turnover in the retail industry. Vacancies are continuously go oning and being filled by appliers from inside and outside the organisation. The stairss of the choice procedure are clearly affected by the computer-assisted interviewing engineering employed by Nike.

For illustration, Nike late opened shop in Las Vegas, 6, 000 people responded to ads for workers needed to make full 250 client service representative places. Nike used synergistic voice response ( IVR ) engineering to do the first cut. Applicants had to reply eight inquiries over the telephone. Over 3, 500 appliers were screened out in this stage of choice. The most common ground for this showing was that they were non available when needed or did n’t hold any retail experience. The staying 2, 500 were given computer-assisted interviews at the shop followed by a personal interview.

Were this computer-assisted interviewing procedure extinguishing possible really gifted people Nike could utilize as employees through faulty standards? Just because an applier does n’t hold retail experience may non interpret into a hapless applier for a client service representative place at a Nike retail shop. These single appliers may be really gifted, skilled, and perfect for these retail places but were cut off the list by the computer-assisted interview responses. In contrast, when a human director is testing through these applications, the other strengths of this applier ‘ s sketch may be distinguished, such as awards or particular accomplishments noted in the written

Resume. Of class, this takes more clip and more paperwork to test in this traditional mode compared to the computer-assisted interviewing procedure but this human director can separate more factors and qualities of each applier through her human consciousness compared to the computing machine engineering. The defective inquiry in my analysis is the one refering retail experience because many, possibly 100s, of possible highly-qualified, skilled persons were cut from the applicant list. This is called an chance cost. Person who would hold been really successful at these new Nike occupation places did n’t acquire a opportunity because they did n’t hold retail experience. The end of choice is to maximise “ hits ” which are accurate anticipations in choosing people who are successful on the occupation. Girls are inaccurate anticipations such as those made when cutting 3, 500 appliers in the computer-assisted interviewing procedure by inquiring about the individual ‘ s retail experience. Another type of hit is when cutting people right who would non hold been successful on the occupation. Another type of girl is when choosing a individual who fails on the occupation. The computer-assisted interviewing procedure used by Nike does n’t even cognize how many ‘ missed chances ‘ because of the fact that no homo was involved in testing the 3, 500 appliers. The eight inquiries via phone were the footing for automatic showing which included ‘ no ‘ responses to see in retailing or handiness when needed. The automatic showing procedure in the computer-assisted interviewing model used by Nike has this of import and important drawback, particularly if used for more of import occupation places, such as shop director or any direction place. If the inquiries used for the showing of the initial moving ridge of appliers are non framed in a manner to derive accurate informations on the appliers ‘ overall makings, so the full showing procedure is flawed and many lost chances for highly-skilled possible employees can be lost.

The built-in disadvantage of the computer-assisted interviewing procedure is the initial brush of a possible talented, highly-qualified applier for any company is naming up the toll-free figure and being asked a series of inquiries by the IVR engineering and if the right replies are provided, so this person is referred to the agreement of a face-to-face interview. The ‘ human ‘ component is wholly losing in this initial interview procedure. A extremely qualified, gifted pool of appliers may be ‘ turned off ‘ by this machine-like attack to happening appliers by the company even if he or she does reply the inquiries right. By non holding any human contact, or human individual to discourse strengths and makings, the applier may see looking to other chances by companies that still value ‘ human-to-human ‘ contact in occupation interviews.

Another control issue that the Nike executives have to see in the implementing for good of the computer-assisted interviewing procedure is the legal environment. The United States of America has legislated Torahs that mandate all employers, private or public, to follow rigorous legal guidelines in supplying equal employment chances to all appliers irrespective of gender, race, ethnicity, spiritual association, or national beginning. The Civil Rights Act of 1964, amended in 1991, is likely the strongest piece of statute law in respects to mandating all employers to supply equal employment chances. Does the computer-assisted interviewing procedure potentially go against this protection?

Nike has to better the human contact component in the computer-assisted interviewing procedure. The telephone interviews with IVR engineering can be a cost nest eggs step in footings of cutting down clip and money spent on worlds reexamining the sketchs of appliers, which in the instance for Las Vegas gaps, numbered over 3, 500 for 250 places. But, these telephone interviews of appliers have some major drawbacks for the existent unity of Nike ‘ s choice procedure for what they hope are successful, loyal, and hard-working employees. The whole procedure of the

Computer-assisted interview taking the applier into the occupation universe is detached, blunting, and uncomfortable for some people. Nike could better the human component in the procedure by holding phone calls answered by Nike representatives before the procedure begins.


What is Centralization? Centralization occurs when an organisation ‘ s determinations are chiefly made by a little group of persons at the top of its organisation while it delegates small or no authorization to the lower degrees of its organisation.

A centralised organisation can be described harmonizing to German sociologist, Max Weber as a bureaucratism. Marriott, for illustration, is a extremely centralised organisation. It gives its decision- devising authorization to upper direction for its day-to-day operations of 10 hotels from one chief office.

What is Decentralization? Decentralization occurs when an organisation distributes decision-making authorization throughout its organisation. A decentralised organisation can be described as being loose in construction and a accelerator for unfastened lines of communications throughout the organisation which consequences in an increased flow of information.

Nike is an illustration of a decentralized organisation. It conducts its concern “ through its level organisational construction which enables them to set “ the bulk of ownership into [ their ] employees ‘ custodies, both as directors and persons ”

6. Formalization:

The three common traditional organisational design types are: Simple Structure, Functional Structure, and Divisional construction.

The five modern-day organisational design types are: Team-Based Structures, Matrix and Project Structures, Autonomous Internal Units, The Boundaryless Organization, and The Learning Organization.

Try and conjecture which design Nike uses for their operations without looking in front.


Most companies start out with a Simple Structure. In little concerns where the proprietor tends to be the director every bit good you will happen a Simple construction. As the concern grows this type of construction becomes weak because the trust on the owner/manager is hazardous. Too many turning undertakings and complexnesss spawn the demand for the concern to engage more personal and alter the construction of operations to either a Functional or Divisional Structure.

Nike, doing over 10. 7 billion dollars in gross made a determination similar to this a long clip ago.

Deciding on a Functional Structure would bring forth a departmentalization of the full organisation. Related occupational fortes would be grouped together with maps of Operations, Finance, Marketing, Research and Development, and Human Resources. Deciding on a Divisional Structure would bring forth an organisation with a parent company made up of separate units. Each of these units or divisions would move on their ain to a limited grade with a director holding strategic control over their unit.

Nike bought Converse to the melody of $ 305 Million dollars after Converse filed for bankruptcy in January 2001 ( Nike ) . Be it a Division of Nike that orchestrated the trade or was a section from a Functional Structure responsible?


While the Traditional designs tend to be more bureaucratic and hierarchal Contemporary designs tend to be more flexible in nature. These constructions meet the demands of progressively dynamic and complex concern environments.

Have you decided if Nike is traveling to be Traditional or Contemporary? Let ‘ s see. Deciding on a Team-Based Structure would make an organisation where each map is the merchandise of a squad. Within the squad there is non a designated director and although public presentation is rated by regional supervisors the work is performed in a flexible mode. Teams are free to plan the work how they see fit. If a company ‘ s operations were performed by a Matrix and Project Structure so specializers from different functional sections would work undertakings being led by a undertaking director. This Structure creates a double concatenation of bid and violates traditional constructions. An advanced signifier of this construction would be the Undertaking Structure where employees are allocated to undertakings harmonizing to accomplishment and when the undertaking is completed they do non return to a

Formal section. Autonomous Internal Units are similar to the Divisional construction with the exclusion of centralised control. A Boundary lupus erythematosus Organization has no predefined construction or bounds in flexibleness. Activities are organized harmonizing to the work procedure, confederations are made with providers, and value-chain direction is utilized. The concluding coeval construction to take from is the Learning Organization. This organisation does non hold a specific organisational construction ; nevertheless, the construction is uniformly implied. A Learning Organization can accommodate to alter through acquisition and applied cognition. Solving work related issues falls on the caput of every employee, non merely the director.

If you guessed that Nike ‘ s design was a Matrix Structure so you have the right reply.

Nike Shoe Company coordinates the activities of providers, shoe makers, transporters, sellers and Sellerss, without straight commanding any of those operations ( Restructuring ) .

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