In this paper, the researcher tries to create an important link between the prevailing events in Sonoco’s industry and its eventual moves in the midst of them most specifically from the point of view of its human resources…
It is evident from the study that to become globally competitive in its industry and ensuring the reduction of functions’ cost by 20% or significantly $2.8 million were the primary reasons of Sonoco’s new CEO Harris DeLoach in mandating Cindy Hartley, senior vice president of human resources (HR), to go for alternative restructuring of HR. This significantly is in line with the new CEO’s goal to control companywide cost to support a new business model that is expected to compete in the global setting and would ensure the top-line growth of the said company. It is in line with this that Hartley is faced with two alternative organisational structures for HR, the centralization and hybrid. In either of them, Sonoco’s CEO is concerned with the corresponding cost to be incurred. On the other hand, in either of them, Hartley would be more concerned on meeting three essential objectives in the HR such as the following (quoted from the case):
1. To increase GM’s accountability for talent management.
2. To distribute HR talent and support more evenly across the company’s divisions and make HR systems and process consistent.
3. To optimise HR’s ability to provide customized, strategic support to the GM’s businesses.
It is important to implement strategies to meet these objectives considering the fact that the packaging industry was facing major transformation due to evident tough competition. Key players were looking forward to look for their competitive advantage.
For instance, heavy manufacturing moved from the United States to countries like China and India where a substantially low labor cost could be possible. Moreover, many firms from the US started to invest outside the country. In addition, packaging companies essentially were able to draw on the full potential of emerging technologies and application of innovative tools. Most importantly, companies learned to appreciate the importance of reducing the initial-packaging-concept-to-market-delivery cycle just like in the case of Hershey which originally relied on hundreds of packaging suppliers but decided to reduce them into 20 by the end of 1990s. These were substantial reasons that Sonoco should consider to formulate effective strategies in order to stay in its business. As a result, Sonoco decided to consider being more attentive to the needs of the end consumer by the late 1990s and not only to the needs of Gillette, Kraft, Nestle and Procter and Gamble. These companies were actually also looking forward to the needs of their customers and what necessarily attracted them. Between 1998 and 2008, customers significantly viewed packaging as more influential than advertising. Thus, it was for this reason that Sonoco should potentially create a move to consider not only the needs of its primary customers but the end customer as a whole just to be able to create the right response in the ongoing trend in its entire market industry. In this paper, the proponent tries to create an important link between the prevailing events in Sonoco’s industry and its eventual moves in the midst of them most specifically from the point of view of its human resources. Diagnosis Unfortunately for Sonoco, talent was not viewed as a corporate resource. Furthermore, compensations were not viewed as costs in need of control or tools that can drive behavior. These are some of the problems faced by Sonoco as impacts of its contemporary organisational structures for HR. ...
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(Sonoco Products Company Essay Example | Topics and Well Written Essays - 2750 Words)
“Sonoco Products Company Essay Example | Topics and Well Written Essays - 2750 Words”, n.d. https://studentshare.net/management/4681-hr-case-study.
This paper provides an analysis of Sonoco Product Company: Building a World-Class Human Resource Organization. In this analysis, the challenges that face Sonoco Products Company to restructure its corporate strategy (for example, Human Resource, structure and products) are outlined.
Her aim was to work towards changing the HR system for effective performance in order to, achieve Sonoco’s business objectives. This paper presents an analysis of the Harvard Business School case study (Sonoco Products Company). The paper presents this analysis by outlining the challenges of Sonoco Products Company to improve its corporate strategy which includes products, context, and human resources in order, to compete with other companies and continue performing well in the dynamic global packaging industry as proposed and developed by Cindy Hartley (Mission statement - Sonoco, 2009).
The Sonoco Products Company has been undergoing several changes under the initiative of the Human Resource (HR) division. Much of these changes were targeted to mobilise improvement and development of existing HR practices and processes, particularly performance management, rewards, succession planning, and talent management.
The availability of cheap labor positively impacted on the company by then with the influence of international trade especially with the countries like China and India which are well known for their involvement in thriving businesses globally. However, there followed numerous issues that required a lot of concern especially fluctuation in productivity which lead to interrupted growth.
Despite the reduced demand because of the US industries’ reduced export, SONOCO still managed to increase its net income by reducing its expenses. Extreme pressure to restore shareholder confidence was brought about by the downward trend in sales with no reprieve in sight.
The paper tells that the period of 1990s rendered a huge shock to the company that happened to tumble its stock price in the share markets. Moreover along with tumbling stock prices the company also happened to face increased competition from the external group of competitors that in turn started reducing both its market shares and potential revenues.
This paper illustrates that Human Resource Management does not limit itself to recruitment, benefits and offloading. HRM also includes being the change agent in the organization. It also includes ensuring that the skill level and the capability of the organization’s employee are responsive to the requirements and demands of the direction and strategic goals of the company.
This impacted Sonoco’s sales. However, despite the reduced demand, Sonoco managed to remain afloat by reducing its operating expenses. Overtime, this strategy enabled Sonoco to increase its net income modestly. Conversely, the continuous slide in sales and the trending in every sales forecast have eroded share holder confidence.
The company is also said to have a leading position in more than 50 countries and operates in more than 180 countries across the globe. The companies main brand products include Kent, Dunhill, Pall Mall and Lucky Strike (Britannica Educational Publishing and Rogers 2011 p.177-198).