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HRMN 395 Assignment 3 Plan to Change the Organization

Plan to Change the Organization

Proctor and Gamble (P & G) Total Rewards Program


The dedication of people working at P and G in bettering the lives of people around the world is unparalleled. These people work so hard. They participate in product innovation, develop strategies that drive sales, and ensure that the company meets its sales targets. As a result of this dedication, these people should be adequately rewarded. Remuneration is not just about the salaries that people earn while working at the organization but also about the benefits they receive while at the organization. These benefits include the total rewards program. A total rewards program is an organizational-based procedure involved in the provision of monetary, benefitting, and the developing rewards to the company employees as a way of encouraging them to increase their performance. This system is designed not only to help the organizational human resources live a better life but also to assist them in personal growth, personal endowment, and career progression. The total rewards program ensures competitiveness is upheld in every task that an employee participates in. The program is also designed to ensure that the employees perform well and achieve high results in specific tasks assigned to them.

Purpose of the Paper

The primary purpose of this paper is to come up with the total rewards program that has been employed by Proctor and Gamble and analyze its effectiveness. If it is useful, employees will see that the organization has recognized their contribution to being integral to the success of the organization. The program provides evidence that the company values its workforce. It reveals that company management appreciates what the workers do daily. The goals of the organization will also be described, including its challenges. Description and the Recommendation of the total rewards strategies, plus the likely risks that will occur if the company does not implement the strategies will be discussed in the paper.

Organizational Description

P and G is a well-known company that has many valuable brands. These are Oral-B, which is well known for the production of oral health products, including toothpaste and toothbrushes. Tide brand is the market leader in the manufacture of laundry products (LMC, 2020). Gillette brand is famous for the production of men shaving kits and razors and many other brands. From these brands, it is evident that the company has powerful capabilities because it is a market leader in its business (, 2020).

Key goals, values, competencies, and challenges of the organization

When the company was formed, the founders had goals of investing in research, innovation, and meeting consumer needs. Over the years, the investment in innovation and products for the future has made the company stand out. The company has a new goal of increasing the product range that is environmentally responsive and sustainable for the future. The company has an innovative plan to ensure that petroleum will no longer be the main ingredient in production activities (Kalogeropoulos, 2018). Passion and merit are key competencies (Luca, 2016). The company values excellent customer service as one of the most critical factors in sustaining the organization's revenue. Values include commitment, trust, integrity, and passion for winning and closing deals. Some of its challenges that have affected the company in recent years include the real competition in its baby products division, contraction of the economy, and inflation in some markets in third world countries such as Nigeria and Egypt (Kalogeropoulos, 2018). The company also experienced challenges in the shipping and distribution to South American countries such as Brazil. Some other problems included penetration in markets in Asia, particularly Saudi Arabia, because of a sharp decline in the nation's economy (Kalogeropoulos, 2018).

Total rewards philosophy of Proctor and Gamble

Proctor and Gamble believe that for the employees to contribute to the enterprise's success positively and change the lives of the workers, they need to be well taken off, and their value needs to be appreciated (Bradley, 2005). They should live better lives and have the ability to take care of their families. The total rewards program of Proctor and Gamble has three categories of offerings. The categories of offerings are routinely known as the employee value propositions: They include:

Direct financial benefits

With the direct financial benefits, the employees receive the following; base salary, which is also the net salary after the deductions (Bradley, 2005). The employees also receive incentives. Examples of incentives in this category are the employee share ownership plans and bonuses for work well done. Ownership, cash processes, and premium pay also form part of the organization's direct employee benefits. Employees also receive discounts for using some of the company products.

Indirect Financial Benefits

These include non-cash benefits such as free lunches, gym services, and medical insurance cover in the recognized hospitals (Bradley, 2005). Others include the training that is offered to the employees regularly. Others include an opportunity for the employees to socialize through events and maintaining a work-life balance.


The P and G organization does not like its employees to stay in a job position for long. The company has an elaborative training program where some of its top brains are sent to higher learning institutions to advance their knowledge. They carry out studies in the programs which are in their areas of interest. The company has a merit-based promotional structure where the outstanding workers are promoted to the next level after a performance review. Career benefits ensure that there is personal growth in the employees, and it is one of the ways that the company uses to retain some of its top-performing staff members. By retaining the top-performing workers' skills, it is not only the organization that benefits from the services of stable employees. The workers also benefit through an assurance of job security and increased opportunities for job exploration. The organization encourages vertical growth where employees can change their positions and work in different departments.

Segmentation of the Workforce

In the generational based segmentation, there are the traditionalists who most of them have already exited the work scene due to retirement. These receive benefits in retirement. The majority of the baby boomers are approaching the retirement age, and they offer training to the other generation. Generation X is goal-oriented, and the desire to perform at the top level so that they can be promoted to the next level. Baby boomers like job security and they may not be so innovative (Tarique, 2014). The organization has an intensive training opportunity for the generation of z employees. These are kids born after 2000, and most of them are entering the workforce as new graduates. On motivation, the company should focus on generation y. These are people born between the 1980s and in the 1990s. Managers should design innovative work schedules, and they should provide a fulfilling work environment. Within these people, income levels are no longer the top motivating factor for superior performance.

Capabilities and Competencies

Employees should be ready to be personally accountable for their actions while at the organization. Tact, innovation, and self-drive makes one successful at the institution (Proctor and Gamble, 2003). Knowledge level in the employees should be top-notch, and the employees should make their decisions based on the current data available to the employees. The current needs of the organization are not likely to undergo significant changes because the organization has total confidence in the capabilities of the workforce (Proctor and Gamble, 2003). Issues faced by the organization, especially the business challenges, can be resolved not by changing how it views the capabilities of its employees. It can be resolved by designing products and plans that are responsive to issues such as competition and economic shocks that appear in most parts of the world. The people in the organization do their best to build and maintain the trust of the employees. The company believes that there must be a convergence between the interests of the company and the individuals. Any areas of conflict are solved by the company's internal conflict resolution mechanisms.

Recommendation of the Changes to the Total Rewards Program

There should be an expansion of the assessment procedure of eligible recipients to receive the benefits that come from the total rewards program. Apart from rewarding the employees who directly improve the company's total sales, the firm should also reward the workers who exhibit the highest levels of ethics and integrity (Proctor and Gamble, 2003). The reward program primarily in the career benefits category should reflect the organization's current needs and the dynamic changes that the employees have regarding the work culture and ethic. The communication about the employees who have qualified to receive the benefits of salaries and bonuses need to be done in a clear, open, honest, and collaborative manner. Communication gives the criteria that the company followed to award some of the benefits to the employees and what needs to be changed to ensure a fair and equitable distribution of resources that employees require. Metrics that evaluate the success of the changes include the usage plan percentage i.e., the percentage of the employees who have actively taken up the reward strategies and are working hard to achieve some of the planned strategies. Others include compensation.

Justification for the Recommendation

Once the assessment procedure of the people who can receive the benefits is expansive, the organization employees will see the organization as having been more inclusive and accommodative of the needs of the employees. Fraud and corruption thrive in the absence of integrity and cause the organization to lose a lot of money if it is not handled well. If the organization starts rewarding the employees based on integrity, other workers will undergo a behavioral change, and they will ensure that their work is beyond reproach. Changing the communication procedure will reduce the disgruntlement cases among the employees, especially those not satisfied with the changes that the company has put in place. If the Proctor and Gamble firm can implement some of these changes, the company will be an attractive place for other qualified employees working for other organizations. This will give the company a competitive edge due to its highly talented and capable human resources.

Risks if the plan is not well implemented and opportunities

The plan will avail the skilled workforce to the organization. Highly motivated employees will be able to surmount any risks and challenges they face. The market share that the company has will increase. Some of the risks include: The Company faces the risk of being left out in the cold if it does not change the reward system of the employees because the needs of the workers are forever changing. Due to technological innovation, the world is more dynamic than it has ever been. The firm could face a higher turnover from the employees who are facing good prospects from other organizations. Replacing employees who have exited the organization is an expensive affair. Companies spent a lot of money on recruiting new workers.


The metrics are compensation percentage and usage by the plan. The other metric is the percentage of employee wages versus total spending. Usage by plan metric provides the actual number of workers who are interested in the total rewards program, and it a way of trying to incorporate feedback from these employees. This metric will help to get to know whether the plans of the organization are working. The compensation ratio will be used to determine the accuracy and impact of the employees' financial benefits. The total wages versus the total spend to determine what percentage of the budget has been allocated to salaries.


A total rewards program helps an organization keep workers motivated. Based on the budget it has, a company may develop different strategies to promote growth in the employees. Employee turnover is reduced, and the company can attract highly competent individuals. This program will work if all the people in the organization are involved. It is not a static plan. It can change based on the prevailing circumstances affecting the organization.


Bradley, G. (2005). Procter & Gamble’s Balanced Approach to Long-Term Incentives. Retrieved

25 July 2020, from

Kalogeropoulos, D. (2018). How Procter & Gamble Can Overcome Its Biggest Challenges | The

Motley Fool. Retrieved 25 July 2020, from

Luca, F. (2016). Successful Sustainability Strategy: Procter & Gamble Case. Business School

Lausanne. Retrieved from

LMC. (2020). Why P&G | Procter & Gamble. Retrieved 25 July 2020, from

Proctor and Gamble. (2003). P and G. Retrieved from

Tarique, I. (2014). Workforce Segmentation: Various Employee Groups | Forces Shaping the

Corporate Learning Function | InformIT. Retrieved 25 July 2020, from (2020). Tide Laundry Detergent. Retrieved 25 July 2020, from

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