Human Resources in Sonoco - Essay Example

The option of becoming a hybrid organization brings the difficulty of implementing change across the company considering that Sonoco is a highly diversified organization.

            The more optimal option is to create a third option whereby the advantages of both options are adapted while their shortcomings are addressed forming an incorporated approach.  Some functions of the organization that directly affects the division will be handled by the division such as staffing and succession planning.  The divisions are in a better position to know their staffing needs since they are the ones directly involved in the operation of the business units.  Succession planning that includes promotion, leadership, and project of future staffing needs must also be delegated to the division.  Operational functions which are unique to each business unit such as coaching, feedback, and personnel development are also delegated to the division making each division dynamic and could easily respond to the realities of their environment.  This quick responsiveness to change also adds value to the organization.

            Other HR functions should be retained with the central organization such as compensation and benefits and personnel program.  This will address the issue of competition that the decentralized structure of the organization has wrought on the company by ensuring that the arbitrary determination of employee contribution to the company is removed.  This will not only bring the cost down as the administrative expenses are cut down by scaling the system used for compensation, but it also adds value to the organization in terms of savings and consistency and responsiveness of functions that were acquiesced to the divisions. Centralization of personnel programs also ensures that company values are aligned with the organization.  This is complemented by the centralization of a performance management system where the metrics used are reflective of the organization’s values and objectives while removing the arbitrary determination of contribution. 

            The organizational structure must also be simplified and where the responsibilities are delineated and along with it are its corresponding accountabilities.  Structural setup that is redundant such as having two key divisional HR directors and having a separate division for labor attorney should also be avoided to reduce function cost.  It would also prevent confusion as well as the competition that the former decentralized structure has wrought on the company.