Bus 325 – Ordering a Human Resource Package
Becca SchertingBus. 325Dr. Johnson20 May 2016Ordering a Human Resource PackageSonoco Products Company faced multiple challenges regarding products, structure, and human resources. These challenges led to the revision of the corporate strategy of Sonoco Products Companies. This revision was necessary in order for the company to compete and continue its growth in the packing industry. Harris DeLoach, CEO of Sonoco Products, instructed Cindy Hartley, Senior VP Human Resources to come up with two potential new HR structures that would reduce HR’s cost by 20%, or $2.8 million. Cindy Hartley arrived to Sonoco to help transform Sonoco’s HR organization. She began working on a plan to devise a new HR organization. The organizational goal was for it to cost less and support specific business objectives. The first business objective was to create a corporate wide consistency on how HR systems and process are implemented and used. Second, an increase in the level of accountability needed to be placed on general managers in the business for developing, retaining, and replacing talent. Third the company needed to provide customized, strategic support to the business. This case analysis explores the steps the vice-president of human resources takes in revamping an HR function that was non-cooperative and, at times, competitive and introducing the company to the notion of HR as a strategic business partner. It studies changes made to the companys compensation, performance management, and succession planning processes. We will evaluate the alternatives and recommendations for course of action for Hartley to meet her financial goals and HR goals. Sonoco must change its business model to allow top-line growth and to reduce its overall cost structure.
Sonoco Products Company began in 1899 in Hartsville, South Carolina. This global packaging company’s original name was Southern Novelty Company and was founded by Major James Coker. The paper cone was the original Sonoco product, although they did not invent it. Sonoco engineered and designed the manufacturing process used to produce the cones. This engineering gave Sonoco a competitive advantage. This competitive advantage made Sonoco the leading producer of cones in the United States. The introduction of the tin can led to a surge in the packaging business. Later the use of plastic also improved the packaging industry. By 2000, Sonoco was one of the largest packaging companies in the world. Over time, Sonoco began to diversify is product line, including cardboard, aluminum cans, plastic and flexible packaging. It began to grow with new operations around the world and it became extremely profitable. Just as in anything, when something grows and gets better, the world too grows and gets better. The packaging industry experienced a great economic growth during the early 2000s. Sonoco’s position began to change during this time.