Free Case Study Regarding HR Intervention Case
What are Sonoco’ s strengths within terms of the culture and individuals? Any weaknesses?
Sonoco’ s main strengths are proven in the people plus culture aspects. Sonoco’ s working atmosphere is tributary in order to work. The functioning environment of Sonoco is referred to as collaborative, friendly, and group oriented. Among the workers delineates, Sonoco will not “ search for that single superhero” (Thomas, Groysberg plus Reavis 3), which usually further emphasizing the particular collaborative nature from the working environment. Actually the historical efficiency of Sonoco could be attributed to the particular good working environment. In addition, the particular employees of Sonoco have helped this successfully grow plus uphold competition in the core business, along with those of the subsidiaries. This performance of Sonoco’ s i9000 career management technique is demonstrated simply by the company’ s i9000 ability to keep its employees for a long time, insofar that other people have spent their particular entire career living in Sonoco. Because of this, Sonoco is improved situated in terms associated with competition. Besides, the particular culture of Sonoco puts a diploma of focus on function ethics, which is utilized as a guidebook for the workers to execute their particular mundane tasks inside the company. A single employee attests in order to the ethical business culture by proclaiming “ Sonoco is really a group of common people doing incredible things” (p. 3). Compounding these ethnic and people strong points of Sonoco, the particular success Sonoco provides relished in the particular past was unavoidable.
Nevertheless , the particular people and lifestyle aspects of Sonoco also provide its reasonable share of weak points. First, the performance management strategy of Sonoco failed terribly; that is, if it ever existed. Consequentially, evaluations did not accurately reflect the performance of employees insofar that the grounds on which employees were laid off were unjustifiable. In fact, scores of talented and experienced employees were given up at the expense of the sustainability of the company. Moreover, Sonoco lacked a rewarding management policy as well. Given that the company’ s system was highly mechanical and structured, the performance of employees was obscured and therefore hampering the tasks of appointing new managers. Another weakness of the culture is the excessive dependency on the talent of the general managers tasked with talent management. The company’ s structure puts much emphasis on the objectives and strategies set by the general managers instead of regarding talent as a general corporate resource. The drawback with such corporate structure would be that the defined objectives are a mere reflection of the personal interests of the general managers and never those of the employees or the profit of the company.
What are your suggestions for changing/improving the HR structure in the company? And how would you sustain the changes proposed?
In light of the two options that Cindy Hartley, the senior vice president of HR at Sonoco, the hybrid organizational model would be a sound recommendation on improving the HR structure of Sonoco. The divisions would be able to have a direct involvement with personnel programs, succession planning, staffing, compensation, and benefits with hybrid organization. Whereas the Corporate would handle the HR planning, strategy development, and implementation tasks, the staff would take care of the divisional level issues, perform consulting services, and assist in rolling out initiatives. As a matter of fact, the new divisional HR managers would provide a connection between corporate HR functions and the Sonoco’ s business (Cummings and Worley 321). In any case, the hybrid organizational model will also foster the flexibility in the structure of the company in the sense that environmental changes would be responded to with immediacy. The hybrid structure’ s projected cost saving would amount to $2. 7 million, which is close to the CEO’ s directive on cost cutting of $2. 8 million to boot.
Additionally , the hybrid organizational structure is ideal for Sonoco given the size of the company. Large and complex companies that utilize advanced technology and operate in dynamic environments have a great deal to gain from a hybrid organizational structure. In the case of Sonoco, the hybrid structure perfectly aligns the company’ s flexibility strategy to meet the ever-changing demands of the consumers and the industry, in general. Also, the hybrid structure places the right people with the right competence in the right positions within the company with intent to exhaustively tap on their talents. The degree of accountability among the managers in under the hybrid structure will be enhanced since the outcomes of different tasks are evaluated with respect to the individual managers assigned to the tasks. In addition, the presence of the different consumer and industry reps underneath the hybrid organizational structure will imply that this decision-making process is going to be not only efficient but also dynamic. Without a doubt, the hybrid business structure is the way to go to ensure the success of Sonoco.
Even so, strategies to sustain hybrid organization structure have to be formulated. First, the right systems have to be put in place so as to get the right people in place beside reducing waste, increasing employee satisfaction, decreasing turnover, reducing waste and improving productivity. Consequentially, appropriate systems will bring about an improvement in profits on an ongoing foundation and hence ensuring the sustainability of the hybrid organizational system. Besides, the consolidation of administrative tasks, where viable, would also make sure that the hybrid organizational structure has achieved the cost saving target of Sonoco due to the economies of scale that accumulate from the consolidation and hence the sustainability of the hybrid structure is ensured. The availing of resources will certainly also play a major role in sustaining the hybrid structure and with the consolidation of various functions in the system; the duplication of resources will be avoided. The managers should also be supported because they are critical to ensuring the sustainability of the new organizational structure.
Cummings, Thomas & Worley, Christopher. Business development & Switch (9th Ed. ).
Mason, OH YEA: South-Western Cengage Learning, 2008. Print
Thomas, David, Groysberg, Boris & Reavis, Cate. “ Sonoco Products Company (A): Building
a World-Class HR Organization”. Harvard Business School Review, 2005. Print.