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Under Armour

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Zach Feuer

on 4 December 2012

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Transcript of Under Armour

Under Armour Kevin Plank Company Structure Selection
Motivation Career Development Our Process Selection Theories How does Under Armour train its employees?
UA 101
Learn History
Warehouse Training
Meet Kevin Plank How does Under Armour choose the best fit job for each employee?
Lateral movement within the organization
Easy to move from job to job
Facilitates exposure to many different aspects of the company How do employees move up the ladder?
Upper-level positions achieved by promotion from entry-level positions.
Managerial positions accessible after 5-7 years Team Communication is key to creating a positive and successful work environment. Information Sharing: Under Armour wants to select employees who bring different knowledge and perspectives to the table (asymmetric information) Group Meetings Great motivation leads to...
Lower employee turnover
Higher customer loyalty
Higher productivity
Higher profitability Communication Founder & CEO of UA
Alumnus of UMD
Team Captain of UMD Football Team (1995)
#3 America's Most Powerful CEOs under 40(Forbes)
Net Worth= $1.35 Billion Financial

Bonuses tied to revenue
Revenue goals categorized: low/target/high
All bonuses tied to one another
Team Mentality Very selective
Diverse backgrounds
Proficiency in social media -Once per week, usually on Sundays
-Lasted approximately one hour
-Meetings held at various locations -Set agenda each week
-Set tasks for each person for the week
-Discussed upcoming due dates
-Took minutes, rotated scribe duty Focus on young people
Most employees are under 30
Prefer to hire from internship program
Recruits Rookies Full-time Career Development Theories CEO
(Kevin Plank) OB Consulting -
Under Armour Board of Directors (10) -Relied heavily on e-mail and Google Docs
-Daily communication
-Set meeting time & location at least one day in advance
-Everyone contributed By Chelsea Donenfeld, Amina El Abed, Phillip Briggs, Nathan Cuklanz, Bryan Galey, & Zach Feuer Roles CFO COO Business Development Workplace Environment

"Up or Out"
Progressive funneling
Performance reviews
Retains only top talent
Must prove worth Apparel Footwear U.S. Sales Retail Brand E-Commerce Human Resources -No predetermined roles
-Some members stepped up to more of a leadership role than others at certain times External vs. Internal Motivation Internal External 1996 2000-2003 1997-1999 Employee Empowerment

All employees (even interns) given huge amounts of responsibility
Relatively small business, so each employee has greater influence on performance of the company
Employee's effort is directly tied to individual performance and performance of entire company Kevin Planks develops the micro-fiber T Shirt and founds Under Armour. UA develops a line of "performance apparel" specifically designed to match different needs.
UA's Take-off through providing apparel for Warner Bros. Movies
UA outfitted numerous National Sports teams in various fields Who gets hired? Named Apparel Supplier of the year 2001 and received Victor Award for the best New Product Launch.
First television commercial: We must protect this house !(2003) Today 5400 employees
75% Market share of Athletic Apparel What does UA look for? Motivation:
“Set of forces that initiates, directs and makes
people persist in their efforts to accomplish a goal” Motivation Theories "Humble and Hungry" SMART Goal Principles:
1. Specific
2. Measurable
3. Attainable
4. Relevant
5. Time-Bound Goal Setting Theory:
Purposeful goals motivate
and direct actions Company Values Company History Key Goals
•High quality products
• Low production costs
• Successful advertising
• Brand recognition
•Reasonably priced items
•Well-trained employees
•Known for customer service Under Armour's Mission
culture that fosters success. It is adaptable, promotes employee involvement,
includes a clear vision, and is consistent.” Four Pillars of Greatness
1. Build a great product
2. Tell a great story
3. Provide great service
4. Build a great team Specialization:
The degree to which tasks
are subdivided into separate jobs
(Increases efficiency) Under Armour utilizes Transformational Leadership to develop its employees:
Individualized Consideration:
1. Understand others’ unique skills,
capabilities, and developmental needs
2. Make each person feel valued to
develop higher levels of his/her potential Examples:
Annual Evaluations Hygiene Factors:
Factors that are extrinsic to the job; prevent job dissatisfaction but do not directly promote effort *Lower level needs*
1. Company Policy
2. Supervision
3. Salary
4. Work Condition
5. Relationships
6. Job Security Motivators:
Intrinsic to the job; directly promote satisfaction & performance
*Higher level needs*
1. Achievement
2. Recognition
3. Work Itself
4. Responsibility
5. Advancement
6. Growth Herzberg’s Two-Factor Theory:
Two factors, which perform very different motivational functions. Key Determinants of Motivation:
Rewards and punishments

Rewards should:
1. Be contingent on performance
2. Make high performers look forward to being rewarded again in the future Strengths Weaknesses Innovative culture
Financial stability
Management style
Brand Loyalty
Efficient R&D team
Competitive advantage No effective marketing strategy
Small international presence
Relies on limited distributors
Expensive products
Cannot patent products ("can't patent polyester") Company's Strengths and Weaknesses Sources: Lindsay Dhujadi, Intern Kevin Wright, College Recruiting Coordinator Shawn Flynn, Director Partnership Activation Nelson, Debra L., and James C. Quick. Organizational Behavior: Foundations, Realities, and Challenges. Mason, OH: Thomson/South-Western, 2003. Print. "UABiz.com - Under Armour, Inc. - Brand Mission." UABiz.com - Under Armour, Inc. - Brand Mission. N.p., n.d. Web. 03 Dec. 2012. <http://www.uabiz.com/company/mission.cfm>.
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