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Human Resources Sonoco Products Company

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MGT 512 - Human Resources
Sonoco Products Company (A): Building a World-Class HR Organization (Abridged)

1.Which option would best suit a changing industry in which only the flexible survive?

Where innovation is significant, it is also vital to certify that employees entering into the firm are productive and adaptable with the approach of the company. Sonoco is part of an ever changing, fast paced, market where reacting to changes is not only necessary, but, is crucial to their future existence. A hybrid structure where divisions would have some direct involvement with planning, personnel programs, compensation, and benefits would be ideal. The key advantage to this particular structure is that it would leave a form of divisional Human Resource management in tact where general management would be provided with necessary information. Sonoco is a global organization. Companies that are global are usually very complex consisting of different divisions allowing for diversity of business cultures to coexist. A global company is worldwide and they operate in many countries, each with their own exclusive set of social customs. Employee learning essentials and the company’s product offerings may be fundamentally different from country to country. Therefore, one-size fits all solution does not fit global organizations due to their various learning demands. Training needs are customized to match divisional needs, local needs, as well as specific business requirements. A centralized system and a smaller decentralized system surrounding this entity will simply co-exist without any governance. As a result, problems will occur. The hybrid blend of a decentralized training organization with strong central roots is a worldwide corporations best option. The hybrid model shapes the direction where HR is heading. The hands-on business drives business value up as

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...For the exclusive use of S. AL OBAIDLI 9-405-009 REV: SEPTEMBER 22, 2005 DAVID THOMAS BORIS GROYSBERG CATE REAVIS Sonoco Products Company (A): Building a WorldClass HR Organization Your business is only going to be as good as the people you’ve got. You can have the best strategy in the world, but if you don’t have effective execution by people, it’s going to fail. — Harris DeLoach, Sonoco CEO In order to make progress, we had to somehow decide what things were going to be the same across the company and what things could be or needed to be different to support the businesses. There was a balance that we needed to figure out. — Cindy Hartley, Senior VP, Human Resources It was late August 2000. Cindy Hartley, senior vice president of human resources (HR) at Sonoco, a 100-year-old global provider of industrial and consumer packaging and related services, was meeting with five members of her reorganization task force comprising the heads of employee relations and organizational development, the company’s chief labor attorney, and two key divisional HR directors. Looking to cut costs across the company, the company’s newly appointed CEO had asked Hartley to come up with at least two potential new HR structures that would reduce the function’s costs by 20%, or $2.8 million. But there were other equally pressing reasons for the reorganization. Number one was to ensure top-level accountability for talent management and upgrading. The second reason was to provide...

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