Sonoco Products Company (A): Building a World-Class HR Organization
Abstract
This is an analysis of the Harvard Business School case study -- Sonoco Products Company (A): Building a World-Class HR Organization. This analysis outlines the challenges of Sonoco Products Company to revise its corporate strategy (i.e. products, structure, Human Resources, etc.) to remain competitive and continue its growth in the volatile, ever-changing global packaging industry. In 1995, Cindy Hartley, Senior VP, Human Resources, came to Sonoco and found the Human Resources (HR) function broken. She soon began working on a plan to rejuvenate HR and link HR processes to Sonoco’s business objectives. As Ms. Hartley was well on her way, Harris DeLoach became the newly appointed Chief Executive Officer (CEO) in 2000. Mr. DeLoach soon recognized concerns with HR as well as overall business strategy in light of the changes to the industry, Sonoco’s diminishing returns, etc. Consequently, he instructed Cindy Hartley, Senior VP, Human Resources to among other things devise two alternative HR structures that would reduce HR’s cost by 20%, or $2.8 million. Other pressing reasons for the request include the following: 1. Ensuring top-level accountability for talent management and upgrading. 2. Providing for a more even distribution of HR talent and support 3. Leading the way in supporting the company’s new growth strategy, which often meant working across division lines to market and sell “solutions” to a single large customer (Thomas, Groysberg, & Reavis, n.d., p. 1).
This case analysis utilizes the 7S Model of organizational alignment to perform the situational analysis, explore the issues and/or opportunities related to the company and the CEO’s request, evaluate the alternatives and recommendations for course of action for the Senior VP, Human Resources to meet its financial goals and HR meet goals.
Introduction
Sonoco Products Company,
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