NIKE’S ORGANIZATIONAL CULTURE

BY: JEFF RODISEL

NIKE

▸ Founded in 1964 by Bill Bowerman and Phil Knight

▸ Headquarters located in Oregon

▸ Produces athletic footwear, apparel, sports equipment, and other sports and athletic products

▸ Currently worth over $90 billion

NIKE CONT.

▸ Nike currently is doing business with the following organizations

▸ NFL

▸ NBA

▸Multiple NCAA athletic teams

▸Multiple professional athletes

▸Own the Jordan Brand and Converse

WHAT IS EXPECTED OF EMPLOYEES

▸ Nike’s workers are given set instructions, rules, and regulations on how to do their jobs

▸ Expected to be creative and innovative

▸ Exceptional knowledge of sport, athletes, and what is needed by athletes to succeed in their field

- Nike Headquarters in Beaverton, Oregon

DEAL AND KENNEDY’S “STRONG CULTURES”

▸ According to the text, Deal and Kennedy argue that a business can succeed by creating a “strong culture”

▸ They then describe four key components of a strong culture:

▸ Values and Beliefs

▸ Heroes

▸ Rites and Rituals

▸ Cultural Network

VALUES AND BELIEFS

▸ Values and beliefs refers to what a company stands for and what values or qualities they are looking for in their employees

▸ Nike believes in equality and diversity in the workplace

▸ They also value innovation and creativity as they encourage their employees to think outside of the box

HEROES

▸ Heroes are the individuals who exemplify the organization’s values and personify what the company stands for

▸ Nike’s heroes include:

▸ Bill Bowerman and Phil Knight-

▸ Michael Jordan-

RITES AND RITUALS

▸ These are ceremonies through which an organization celebrates its values

▸ Nike strongly believes that their employees should be compensated or rewarded for performing well

▸ They do this through benefits and rewards such as providing the employee the opportunity to stay fit, ensure the wellness of their families, and create a positive working environment

CULTURAL NETWORK

▸ The cultural network refers to the communication system through which cultural values are instituted and reinforced

▸ Nike often uses content marketing videos to communicate with its employees to relay news or various other topics

▸ They are also able to communicate with their stakeholders through their website to inform them on the current standing of the organization

SYSTEM COMPONENTS

▸ If you look at an organization as a system, it is comprised of components which are the people and departments that make up the organization

▸ There are three components which characterize an organizational system:

▸ Hierarchical Ordering

▸ Interdependence

▸ Permeability

HIERARCHICAL ORDERING

▸ Hierarchical ordering refers to how the system’s components are organized in different systems and subsystems

▸ Nike also has systems and subsystems of employees who have authority over each other

▸ They are also apart of the supersystem of the sporting goods industry

INTERDEPENDENCE

▸ Interdependence implies that the functioning of one component of a system relies on other components of the system

▸ An organization can be compared to the human body in that all parts must work together to be successful

PERMEABILITY

▸ Permeable boundaries allow information and materials to flow in and out of different parts of an organization

▸ Each section of an organization must be able to communicate and pass information to one another easily to be as efficient as possible

▸ Nike strongly promotes permeability and wants their employees to work together and communicate with one another

DESCRIBING NIKE’S ORGANIZATIONAL CULTURE

▸Organizational culture is the combination of traditions, habits, values, and behavioral expectations among employees

▸ Nike wants their employees to be:

▸ Talented

▸ Diverse

▸ Inclusive

TALENT

▸ Nike believes that talent and innovation go hand in hand

▸ Use training programs to maintain employee talent

▸ The company also uses coaching and mentoring programs to help their employees grow and keep production at a high level

DIVERSE

▸ Diversity leads to a dynamic workforce that draws from a multitude of ethnic backgrounds

▸ It promotes:

▸ Creativity

▸ Innovation

▸ Brand Image

▸ Competitive Advantage

THE “SPEAK UP!” PROGRAM

▸ Nike’s Speak Up! program facilitates the sharing of ideas among workers, especially between those of different ethnicities

▸ Calls for employees and athletes to fight racism, not only at work but also in their everyday lives

INCLUSIVE

▸ Helps minimize barriers to employee performance allowing them to be the best workers possible and increase efficiency

▸ Encourages employees to be creative and build a strong community within the workplace

▸ Also minimizes problems amongst the workforce and supports streamlining athletic shoes, apparel and equipment design and production processes

QUESTIONS TO CONSIDER

▸ How will Nike be able to adapt to future changes and overcome upcoming companies such as Under Armor?

▸ Does Nike still have the appeal to sign the top athletes in sports?

▸ How does Nike’s organizational culture effect their relationships with their athletes?

WORKS CITED

‣ Miller, K. (2015). Organizational communication: Approaches and processes (7th ed.). Stamford, CT: Cengage Learning.

‣ Nisen, Max. "At Nike, Workers Quote The Company's Maxims Like The Ten Commandments." Business Insider. Business Insider, Inc, 15 Feb. 2013. Web. 13 Nov. 2016.

‣ Odell, Patricia. "Nike Uses Content Marketing Videos for Internal Communications - Chiefmarketer." Chiefmarketer. N.p., 30 Jan. 2015. Web. 13 Nov. 2016.

‣ Young, Justin. "Nike Inc. Organizational Culture Characteristics: An Analysis - Panmore Institute." Panmore Institute. N.p., 01 June 2016. Web. 13 Nov. 2016.