S3 Group9 HRM Sonoco

7/31/2019 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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THE END

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S3 Group9 HRM Sonoco