Procter and Gamble (P&G) is a business idea developed by William Procter and James Gamble. The company was established in the year 1837. Initially the company, engaged in making candles and soaps. However, later the company started producing consumer goods such as beauty care, health care, baby products, food and beverages etc. The company suffered with several organizational and cultural issues between 1999 and 2000. The case study on P&G, suggests that the period of 1999 and 2000 has been headed by two different CEOs i.e. Durk Jager and Alan Lafley. Both of them managed the company in their own style and presented a good example of leadership skills.
Therefore, the aim objective of this report is to highlight the challenges faced by P&G. The organizational challenges under this report will be evaluated on the basis of strategic development, HR practices and leadership styles under the two different CEOs. Although, each of the CEOs had there own individual personality, management style, leadership style and functioning but both of them evidently contributed towards the success of P&G. Additionally, strategic recommendations will be provided in the form of 5 year strategic plan which will be helpful in improving the HR performance, organizational culture and the overall financial performance of the organization.
Introduction:
This report is solely positioned on the assessment of the organizational issues. These issues are present in Procter and Gamble under the leadership of two different individuals, Durk Jager who headed the organization in July 1999 and under the regime of Alan Lafley who ruled in June 2000. Both the styles of leadership and actions taken will be critically evaluated with reference to strategic development, leadership skills and HR practices. During mid- late 1990s, Durk Jager launched the organizational restructuring exercise, which included refurbishment of P&G 's organizational culture, retrenchment of employees
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