FUNDAMENTAL OF MANAGEMENT
MGT 162
GROUP ASSIGNMENT
NIKE ENTERPRISE
FACULTY OF BUSINESS AND MANAGEMENT
DIPLOMA IN BANKING
BA1191G
PREPARED FOR
MADAM SYAKIRAH BINTI AHMAD
PREPARED BY:
STUDENT NAME
MUHAMMAD AIMAN ZIKRI BIN MAHATHIR
WAN NUR AQILAH IWANI BT WAN ISMAIL
MIZA FIRZANAH BT MAD LIZA
UMI KASMALINI BT ROSLAN
NUR SAFIYYAH BT JASMANI
AISYAH HAZIRAH BT MUHAMMAD FADHIL
SUBMISSION DATE:
STUDENT ID
2022644326
2022839312
2022829736
2022820142
2022872662
2022802068
TABLE OF CONTENTS
PARTICULAR
INTRODUCTION
PLANNING
ORGANIZING
LOCUS OF DECISION MAKING
MOTIVATION
LEADING
CONTROLLING
CONCLUSIONS
REFERENCES
APPENDICES
PAGE
ACKNOWLEDGED
INTRODUCTION
PLANNING
ORGANIZING
-Organizing is the establishment of effective authority relationships among selected work,persons
and work places in order for the group to work together efficiently. Once the organisation’s mission
and goals are clear, the work necessary to achieve those goals must be divided up in the most
productive way possible that is by division of work. Nike Inc’c organizational structure shows its
proficiency and maximum of commerce in its operations . The corporate structure highlights the
need to address contrasts among regional markets.This contrast associated with region-specific
demands of target clients, such as sports clothing based on sports reputation and climate.
i
)Types
of
departmentalization
:
-Nike has a geographic divisional organizational structure. In this system, a company or a part of
it is organized around the places where operations are located. This structure is based on
company’s needs in its global organization. Nike Corporation is known worldwide as “ to bring
inspiration and innovation to every athlete in the world”. Due to the wide scale of businesses Nike
has developed a strong and effective organizational structure that ensures continuous innovation
and improvement. The following are the characteristics of Nike’s organizational structure:
1) Global Corporate leadership
-This involves corporate managers. Through this feature,decisions are easily implemented
throughout the company.
2) Semi-Autonomous Geographic Divisions
-The company’s operations are divided into segments based on regional markets. The regional
sport shoes,apparel and equipment markets are optimized by each regional division managers.
Nike’s regional divisions are :

North America

Western Europe

Central & Eastern Europe

China

Japan

Emerging markets
3) Global Divisions for Converse and Brand Licensing
-Nike has two global divisions which are : one for the Converse brand and another for brand
licensing .One global division is responsible for managing the worldwide operation of Converse,
which another footwear brand and subsidiary of Nike Inc. Another global division is responsible
for licensing the Nike brand. This offers control brand licensing and the operation of Converse.
However, there are advantages and disadvantages in this Nike Inc.’s departmentalization structure.
The advantages are it offers better services at low cost. Secondly, it places responsibility for profits
at lower level and offers better face to face communication with local interests which will support
growth and stability. The disadvantages of this structure that it requires more staff with general
manager abilities and the limited approach in managing the operations of Converse.
ii) Nike Inc.’s Organizational Chart
LOCUS OF DECISION MAKING
Program decision & non-program decision
Programmed decision making is structured and happens with some frequency such as arranging
weekly work schedules for your employees. On the other hand, non-programmed decision
making is unstructured, recurs less often and can recur in response to unpredictable events such
as COVID-19.
Nike Inc involves various of steps in making decision which is crucial for big time company. The
process in decision making were thoroughly planned out by individuals and groups to lead
successes of the company. As for Nike Inc, they emphasize both program decision and nonprogram decision in decision making. For programmed decision, Nike Inc were based on business
rules and procedures that have been established. For example, the operation manager will
analyze the current workflows, modernize the processes and technologies, train the staffs,
continuous production quality improvement and performance support to increase the
production line efficiency. As for the workers, they will be working based on Standard Operation
Procedure (SOP) that had been set by the top management to improve efficiency and compliance
with quality standards, as well as standardizing processes. The programmed decision helps to
increase the product quality and quantity in production line such as apparel, shoes, and sports
equipment. Besides that, the programmed decision in Nike Inc is by reordering the materials from
unchanged suppliers such as Polyester, Rubber, Eva Foam, Cotton, Synthetic Leather, and Leather
in order producing their product.
Wednesday February 20th, 2019, Nike Inc faced a huge crisis due to bizarre “shoe malfunction”
caused Zion Williamson, a star basketball player at Duke University, needed to leave his game in
injury. The company's stock closed down 89 cents at $83.95 on Thursday, for a $1.1 billion drop
in market value. Nike Inc state this as unusual problem and demand a high degree of executive
judgement and deliberation. The steps Nike Inc took part in non-programmed decision making is
by using brainstorming method. The positive aspect of this method is that it values the opinions
of all members and the final decision obtained by consensus. Nike Inc, they acknowledged the
problem and apologized for the incident occurred. Then, they identify and diagnose the problem
that caused shoe malfunction followed with generating ideas and one for refining idea. With a
lot of ideas generated, the employees can have a better visual about the company’s vision and
improves the critical thinking and problem-solving skills as an individual and team to carry out
the company targets. As a result, Nike improved the quality of their product and carried out
7.59% increase in revenues on 2022 ($39,117) compared with 2019 ($46,710).
MOTIVATION
Based on research, motivation derived from the word ‘motive’ which means needs,
desires, wants, or drives within the individuals. Motivation also can be seen as a set
of forces that causes people to behave in certain ways. This is a psychological
process that gives purpose and direction to behavior. NIKE ENTERPRISE has been
involved in Maslow’s Hierarchy of Need theory to motivate their employees and
staff. This theory is the motivational theory in psychology which states that five
categories of human needs dictate an individual’s behavior. The five basic needs
such as physiological needs, security, or safety needs, belonging or social needs,
self-esteem needs, and self-actualization.
 Physiological Needs.
In the hierarchy, Physiological Needs are at the bottom, meaning the most basic
needs necessary for employees must access vital services and opportunities at work
for them to feel their basic needs are being met. For example, the company needs
to access essential facilities, a comfortable working environment, a regular monthly
salary, and adequate wages. In NIKE ENTERPRISE, we provide break time for all our
staff and employees, so they can rest and eat during break time. Plus, we pay a
monthly salary on time to each employee and staff for their excellent w
 Security or Safety Needs
These needs are at the second level of needs. These needs deal with physical and
psychological safety from external and internal threats. NIKE ENTERPRISE takes this
matter seriously by hiring a security guard and accessing extremely strict checks in
our company. Furthermore, we installed a closed-circuit television at every building
for the safety of workers and to prevent theft. We also provide insurance for our
workers and the policy of insurance will cover accidents during work. We are also
aware that even at work it is also important for every worker to feel that their
physical safety is valued and prioritized. Moreover, these needs include formal
employment contracts and benefits such as a pension scheme and sick pay.
 Belongingness or Social Needs
Belongingness means social acceptance issues such as friendship or cooperation on
the job. Social interaction between employees and staff is important to form a
strengthened bond as a team and workgroup. NIKE ENTERPRISE always organized
an event for all the employees for them to get to know each other in every
department. For example, we organized a company dinner at least once every
month, celebrating every religion celebration to respect and show appreciation for
the work hard of every employee such as Hari Raya, Chinese New Year and
Deepavali. This will further strengthen the unity between them. When the
employees feel like they belong and fit in at the workplace, it is easier to feel
motivated and to work hard to achieve satisfactory results.
 Self-Esteem Needs
Self-esteem level showed required respect for others and praise is important. It is
also referred to as a growth requirement. At the workplace, it is important to feel
that every employee is growing, advancing, and achieving results. When an
employee has confidence and abilities in themselves and receives positive feedback
and encouragement, they are more likely to succeed. There are several examples
of growth needs including job titles, prestige, status, appreciation, and recognition.
Every month, NIKE ENTERPRISE will reward the best employee based on their work
performance and the sales they make. Plus, they will be promoted if their work is
encouraging and raising the name of the company. This will make all the employees
motivated to do the job well. A bonus also is provided by the company if the
employee manages to achieve the goals of the company.
 Self-Actualization Needs
The final level of Maslow’s hierarchy of needs is self-actualization, which translates
to maximizing an individual’s potential at work. Every employee wants to feel they
are doing the best they can in their position, which helps them feel motivated to
continue their career path and success. The company will realize employees'
potential for continued growth and individual improvement. In the company,
managers will let the employees participate in decision-making departments as
they will learn new things. In NIKE ENTERPRISE, the manager will challenge the
employee to increase sales of the company by using their own creativity. To feel
self-actualized, the employee should feel challenged but not too overwhelmed or
overloaded. Through personal development plans, training, and mentoring by
supervisors, the promotion opportunity enables staff to be the best they can be.
Therefore, the potential of a unique employee will be known by Human Recourses
(HR) also the manager and ensure they have the expertise to fill future vacancies.
APPENDICES
Nike Inc. Official store
Nike shoes product: Nike Air Max
Nike clothing products: men’s T-shirt , Nike hoodie
Nike bag products: Nike bagpack , Nike crossbody bag