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Sonoco Products Company: Building a World-Class HR Organization

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Sonoco Products Company: Building a World-Class HR Organization
Case Study Analysis

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,



References: Byars, L. L., & Rue, L. W. (2008). Human Resource Management (Ninth ed.). Boston, MA: McGraw-Hill. Cummings, T. G., & Worley, C. G. (2008). Organization Development & Change (9th ed.). Mason, OH: South-Western Cengage Learning. International Directory of Company Histories, Vol. 8 St. James Press. (1994). Sonoco Products Company. Retrieved February 1, 2009, from http://www.fundinguniverse.com/company-histories/Sonoco-Products-Company-Company Kotelnikov, V. (2001). 7-S Model A Managerial Tool for Analyzing and Improving Organizations. In Corporate Leader Business Architect. Retrieved February 12, 2009, from http://www.1000ventures.combusiness_guide/mgmt_inex_7s.html Levitt, T. (n.d.). What Business are you in?: Classic Advice from Theodore Levitt. In Harvard Business Review. Retrieved January 17, 2009, from http://harvardbusinessonline.hbsp.harvard.edu/hbsp/hbr/articles/article.jsp?articleID=R0610J&ml_action=get-article&print=true Mission statement - Sonoco. (2009). Retrieved February 1, 2009, from http://www.sonoco.com/sonoco/Home/About+Us/cor_mission_statement.htm Robbins, S. P., & Judge, T. A. (2008). Essentials of Organizational Behavior (Ninth ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Sharma, S. (n.d.). Organizational Development-A Basic Research Report. In Organizational Development-A Basic Research Report. Retrieved January 16, 2009, from http://www.bpoindia.org/research/organizational-development-research-report.shtml Sonoco Products Company (SON). (n.d.). In Wikinvest.com. Retrieved February 1, 2009, from http://www.wikinvest.com/stock/Sonoco_Products_Company_(SON) Strategy for Growth. (n.d.). In 2000 Annual Report. Retrieved February 1, 2009. Taylor, B. (2005, June). Long-range vision: started more than 100 years ago, Sonoco has risen to packaging and recycling prominence in the Southeast. In Manufacturing Industry. Retrieved February 1, 2009. Thomas, D., Groysberg, B., & Reavis, C. (n.d.). Sonoco Products Company (A): Building a World-Class HR Organization [Review of Harvard Business School]. 1-25. Werner, J. M. (2006). Human Resource Development (4th ed.). Mason, OH: Thomson South-Western.

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