Download - S3 Group9 HRM Sonoco
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Building a World-Class HR
Organization
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To suggest which model to use out of thetwo alternatives for restructuring the HR
function such that :
It cuts cost
of HRfunction
Only the
best flexiblesurvive
The rightpeople are
in the rightposition
BestembodiesSonocos
time ordered
principle that people
buildbusinesses
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To evaluate Sonotos current situation, we evaluated its degree of fit or alignment
among all the seven Ss.
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Structure -
Highly decentralized and non-uniform HR before
HR has no strategic role in the organization
Centralized HR Administration aligned to the company goals
Strategy -
Adaptive to end customer needs
Solution-orientation strategy than a mere physical goods
manufacturing
Key Account Management
Reach to changes in environment and minimize potential
damage
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Systems Society is becoming technological andsystems driven.
Prior to Hartley,
Divisions with separate systems and no uniformity in HRpractices
Benefits and compensation not used to drive performance
but as entitlement
No succession planningAfter Hartley was hired,
Advisory HR council from all divisions and corporate
Performance was measured and linked to pay
Annual succession planning
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Skills -
Skills refer to what a company and its personnel do best.
Sonocos core strengths are its market share, brand
value, diversity in products, adaptability and culturePerformance management system and the compensation
system based on the measured performance are the
initiatives to develop skills
Six core competencies: excellence, communication,teamwork, technical/professional skills and knowledge,
strategic integration, and coaching/mentoring
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Staff -
Reluctance to hold underperformers accountable
New focus on succession planning
Global diverse workforce
Style
Management style is not very participative
Leadership is not completely effective as managers arereluctant to take unpopular decisions
Teams preferred over individual performers
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Shared Values -
Collaborative and team-oriented
Company loyal employeesEthical and paternalistic
Diminished sense of responsibility
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Centralized Model
Most HR serviceswould be handled by
four centers of
expertise.
Divisions to be served
by a pared-down field
staff
AdvantagesDecrease in cost of
driving administrative
and other process
improvements.
Disadvantages
Restricted
opportunities to align
directl with individual
Source : HBS Sonoto case , Exhibit 4
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Hybrid Structure
Divisions will havedirect involvement instaffing, successionplanning, personnelprograms,compensation and
benefits. Advantages Left
intact a divisional HRpresence on whichGMs could rely.
Disadvantages
Concernwhetherchangescould beeasily drivenacross thecompanywith this newstructure.
Ownershipof Functions
Whichwould be
owned bycorporateand whichwould b the
Source : HBS Sonoto case , Exhibit 4
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Based on alternatives available ourrecommendation would be to go for a
Hybrid Structure because of the followingreasons
Survival of the Flexible This structurewould be more aligned to the flexible
strategy of the organization and it would
be more equipped to cater to the dynamic
environment. Mirroring of HR Organization with that of
Companys Organization HR will be
organized into two sectors Consumer &
Industrial.
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Appropriate systems in place to get the right people in placeEx Presence of field HR reps, who can provide proactivebusiness-related support, including talent management,succession planning and formal coaching.
People build businesses By having the right people withthe right skills in such a way that they are most beneficial tothe organization, Sonocos time-honored principle that peoplebuild businesses is also being retained.
Financial Target As people will get the right development andattention required, their performance will go up and in the longrun organizations financial target will be met.
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