Scribd
Upload
15K views3 pages

Principles of Management Followed by Nike

Nike follows several of Henry Fayol's principles of management, including division of work, unity of command, and remuneration. They have a divisional structure organized by product and functional departments. Employees only report to one superior to avoid conflicts. Nike motivates employees through competitive benefits and rewards based on individual efforts. They strive for equity and treat all employees with respect in a comfortable work environment.

Uploaded by

Istiaque Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
15K views3 pages

Principles of Management Followed by Nike

Nike follows several of Henry Fayol's principles of management, including division of work, unity of command, and remuneration. They have a divisional structure organized by product and functional departments. Employees only report to one superior to avoid conflicts. Nike motivates employees through competitive benefits and rewards based on individual efforts. They strive for equity and treat all employees with respect in a comfortable work environment.

Uploaded by

Istiaque Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Principles of Management followed by Nike

There are 14 principles of management proposed by Henry Foyle. From all these, we’ll
be discussing 5 major principles that are followed by Nike.

1. Division of Work: Henri believed that segregating work in the workforce amongst
the worker will enhance the quality of the product. Similarly, he also concluded that the
division of work improves the productivity, efficiency, accuracy and speed of the
workers. This principle is appropriate for both the managerial as well as a technical
work level.
Nike follows a divisional structure on the product basis. This is to make sure that the
development and innovation keep happening in all products that Nike manufactures.

Moreover, there are functional departments under the Global corporate leadership, and
there is also a team structure in the organization. The global corporate leadership at
Nike which involves corporate leaders makes sure to implement policies throughout the
company that is, in all divisions.

Under this leadership comes a functional structure that divides finance, global human
resources, product & merchandising, administration & legal, global sports marketing,
and operations departments.

2. Unity of command: This means an employee should have only one boss and follow
his command. If an employee has to follow more than one boss, there begins a conflict
of interest and can create confusion.

Nike also has a chain of command in their product structure. Nike learned to adjust its
chain of command in a hard way. Employees have to report only one superior leader.
During its expanding, Nike found a niche in high athletic shoes, applying European
designs made in less-expensive factories. The company grew rapidly, but it became
impossible for executives to play the same role. Despite healthy profits, the company
became blind to changes in the market. Nike responded by decentralizing authority and
varying its product line.

3. Remuneration-

This plays an important role in motivating the workers of a company. Remuneration can
be monetary or non-monetary. However, it should be according to an individual’s efforts
they have made.

Nike company is very good at developing a strong organizational culture. Though


employees need to work for long time they still enjoy working at Nike
because it offers a comfortable environment for employees. To motivate

employees to work hard Nike has set up the benefits program which provides

employees with the opportunity to stay fit, ensure the wellness of their families,

and create a positive working environment. That is why every branch provides for

variable health coverage, fitness center memberships, time off, retirement

savings, and more.

The benefits in NIKE:

1. Health insurance

2. Life & Accident insurance

3. Disability insurance

4. Retirement Savings Plan with a company contribution

5. Employee Stock Purchase Plan (15% discount)

6. Paid vacations and holidays

7. Paid sabbaticals

8. Product discounts

9. Onsite fitness center/fitness discounts

10.Transportation allowance/discount

11.Tuition assistance

4. Equity

All employees should be treated equally and respectfully. It’s the responsibility of a
manager that no employees face discrimination.

Nike is more than just a place to work, it’s a comfortable and stimulating

environment filled with full-service facilities designed to help you perform better.

From leading-edge sports research labs and footwear and apparel design facilities

to highly-touted childcare and pre-school centers, Nike campus life reflects the

company’s value and interest in its employee’s career growth and balance of
work and family. They make employees feeling like they are working in the big

family so that employees can work hard at their job. In addition, the campus also

features a fully equipped gym, a running track, basketball and tennis courts, and

a football field, where employees can use this kinds of equipment to relax

themselves or cultivate their hobbies.

You might also like