Human Resource Management of Sonoco - Essay Example

?Assessment Feedback work Number or Reference Managing Human Resources Area HR Provisional Grade: E work Feedback A B C D E Fail F Fail 1. Content v 2. Analysis v 3. Application v 4. Written Communication a) Written English b) proper Harvard referencing v Brief specific overall comments on your work: Generally, discussions are red herrings and do no justice to the issue at stake. No clear structure, analysis and evaluation. Demonstrates limited knowledge and understanding of the relevant academic and practice contexts and implications. Flow and language inappropriate in places and presented to the minimum standard. In some cases, expresses vague familiarity with the issue at stake but shows limited evidence of addressing the question in full. Attempt could have been significantly improved if the introductory section had for example, focused on evaluating the changing HRM landscape by drawing upon debates about the distinction between personnel management & HRM, HRM-performance, SHRM, RBV, Hard & Soft HRM models and HRM best practices. Then proceed to use the relevant academic materials to provide a robust analysis/evaluation of the importance of at least three of these best HRM practices (e.g. recruitment & selection, employee training & development, PM (reward & appraisal) and link with employee/organisational behaviour tools (e.g. motivation, employee engagement, empowerment and commitment) in context and application from an HR specialist perspective. No sufficient basis to infer attempt has achieved module’s learning outcomes 1&2 through dialogue with and consideration of the key elements of seminar activities and tutorial/formative feedback. Revisit this task component considering the issues I have highlighted above in demonstrating levels of commitment required at a post-graduate level. Seek tutor support if necessary. Brief guidelines for improvement Date: Dec 2011 Introduction Human Resource Management does not limit itself to recruitment, benefits and offloading. Human Resource Management also includes being the change agent in the organization (Bach, 2005). It also includes ensuring that the skill level and the capability of the organization’s employee are responsive to the requirements and demands of the direction and strategic goals of the company (Ingham, 2007). The strategic value of the Human Resource Management Structure in the development and implementation of the organization’s goal cannot be gainsaid. Thus its involvement in any planning and roll out of strategies and initiatives is not only a must but mandatory (Little, 2011). Sonoco is a 100 year old organization that have survived wars and repeated economic crises. It is also a paternal organization that values relationship rather than performance. Sonoco will be examined in this thesis to assess how the value of human resource management will be applied. Background The growing role of Human Resource Management in organizations (Losey, Meisinger, & Ulrich, 2005) that enable it to play an important role in strategic initiatives cannot be made more apparent that in the case of Sonoco. For the better part of the last one hundred years Sonoco packaging company have successfully achieved uninterrupted growth coupled with impressive financial success. However, the past several global crises have also affected the primary customers of Sonoco that contributed to a drastic reduction in its fiscal performance. Despite these adverse economic situations Sonoco managed to grow through the acquisition of several other companies. In trying to survive several crisis that would include reduced local demands Sonoco also had to contend with the increasing visibility of off-shore competitors that severely undercuts its prices. To resolve these challenges Sonoco tried and failed to get the right talents that would give it a fresh perspective. Instead Sonoco experienced productivity issues. The unreliable market experienced during the case would have been as a result of poor production which is also a consequence of lack of proper management by the group managers and corresponding supervisors within the packaging department (Armstrong, 2008, p. 13). Some of the consequences of poor management experienced in the case study include but not limited to reduction in sales which negatively impacted the company creating a perception that the company is losing consumer interest in the global market (Heneman and Judith, 2006, p. 16). The situation is exacerbated by the declining morale that affected the quality of the company (Sparrow, 2009, p. 71). How will these changes impact on the Sonoco Strategy? An in depth analysis of the situation would reveal that most of the decisions made by Sonoco to survive the economic crisis have contributed to the difficulties it is now facing (Sparrow, 2009, p. 73). Redundant positions were created when several companies were acquired in an attempt to increase Sonoco’s customer base and its production capacity. The Human Resource Department was seen not as a partner but was a necessary expense. Due to the multi geographic location of Sonoco’s facilities, managers of each branch were given a free hand at managing the facility he is in charge with. This resulted to the inconsistent implementation of policies and salary distortions. The long history and tradition of the Sonoco of letting underperformers slide resulted to the steady increase in employee dissatisfaction and the disintegration of morale. Several attempts to arrest the declining situation such as cross functional and multi-dimensional projects or tasks were given to the leaders to resolve operational issues that will raise the company to a higher level (Dr. Kilia, 2005, p. 75, & Warne, 2005, p. 84). Through inclusion of the entire stakeholders in the decision making process especially the employees; it is likely that the company would gain from the strategy as the employees would recognize that their concern is necessary in the company’s strategic plan (Schein, 1968, p. 28, & Stewart, 1991, p. 61). The exercise is meant to boost morale that would increase productivity while maintaining low cost. A reduction in production expense with increased productivity is a sign of profit to the company (Purcell and wright, 2007, p. 22, &Ehnert, 2009, p.105). The Cindy Hartley’s objectives for change at Sonoco Reviewing the proposed solution of Cindy Hartley wherein she came up with strategies to control fixed costs and reduce expenditure which worked well for a time. However, the strategy later experienced a lot of challenges due to then variation in the value of US dollar and other economic factors like decline in trade with Asia due to financial crisis. However, Cindy perceived a lot more productive measures after a hint from the new CEO, DeLoach’s (Revans, 1982, p. 42, & Temple, 2001, p. 38). Despite the short stay at the company, five years was enough for Cindy Hartley to come up with new policies to positively impact management performance to enhance production. A lot of emphasis was also made on compensation and succession plans so that the company would retain quality employees with required and relevant skills that would enhance productivity within the company (Storey, 2007, p. 21). To control production cost Cindy suggested that employee performance could be best done through the departmental group managers who are fully responsible for the operations within their respective production areas (Revans, 1982, p. 39, & Temple, 2001, p. 42). Secondly, Cindy suggested that the human resource support and talent across the company divisions would be integrated to form one Human resource centre. This is a system that would control all the human resource programs to enhance conformity in all the branches of the company (Heneman and Judith, 2006, p. 37). Fulfilling a concern raised by the New CEO “Deloach” that stated that ‘having the best strategy is an idea and implementing it by people is another duty.’ Is for the employees to recommend and be responsible on implementing their own idea that makes sense. The Vice president reiterated that it was within the jurisdiction of the task force members to make the final verdict on the best strategy to adopt in order to move the company forward (Storey, 2007, p. 27). The success of the human resource changes at Sonoco There were some concern and even resistance amongst the senior managers against the changes that is being implemented across the organization (Davis, 1967, p. 18, & Koch, 2006, p. 126) however it would seem that there was some kind of improvement in the company production through the full participation of the human resources department in the company. Credit should also be give to the full involvement of the employees in the strategic plan. It created an all inclusive strategic plan that recognized the voices of all stakeholders in the production and packaging company branches (Storey, 2007, p. 55). Acknowledging the stakeholders is one of the best ways to achieve the company objectives. This creates a closer relationship with the employees and other staff members hence being able to obtain some information that would reverse the organization’s production trend with improved product quality and quantity as the workers embrace the rapport between them and the staff (Kearns, 2009, p. 194). Recognizing the importance of including the employees and managers in the restructuring of the organizational strategic objectives and human resources the company embarked on processes that would constantly increase and motivate employees. Awarding the best achievers in the production process and promoting them with respect to their dedication and commitment to the production and packaging requirements. The progress could be achieved through performance improvement and accountability; and awarding the departments that produced both quality and quantity products at low costs reducing the costs (Condrey, 2010, p.49). The changes are likely to create more opportunities both within the national and international markets due to better quality and drastic changes that improves the whole company human resources strategy prompting every member of staff to be accountable for their work. To some of the members who do not work towards the progress of the company, they would have no option other fulfilling then requirements stipulated in the new HR strategy for the company to retain their positions within the company (Moody, 1997, p.63). Being that the process of change implemented in the new HR strategy would impact on all the stakeholders including the human resource department, it is adept to have a perception that the sequence adopted would create more opportunities for the company (Storey, 2007, p. 48). Considering all of the above the company was able to arrest the downward trend in production. Once the situation is taken care of the company would be able to venture in more production lines (Kirkbride, 1994, p. 102). Sonoco company having been operational for over 100 years with branches in about 33 countries; it is likely that the company is still aiming at increasing and expanding the branches as they capture a wider market in the global market (Knoster and Thousand, 2000, p. 167). With the anticipated improvement, it would be better to have a centralized control tower so that all the administrative functions are carried out through a centralized office. The involvement of advanced technology and the internet , there are other lucrative options like engaging in cloud computing so that the company operates from a central office that every business person would only require the link to access the site and engage in business without physically travelling to the offices (Storey, 2007, p. 55). Centralized HR strategy and management is an example of management system whereby all the HR services within the company are managed from one place regardless of the number of branches available and their location within the global market (Storey, 2007, p. 55). Through centralized office there would be uniformity as the various countries and representatives would obtain information in regard to the products and services from the same source reducing conflicting information that would compromise the company management strategies (Armstrong, 2008, p. 24). In addition, this would reduce the cost incurred in setting up other HR and other administrative offices in other countries which directly impact on production through reduction in cost of production hence maximizing on profits (Storey, 2007, p. 55). Pros of centralized HR structure in Sonoco Company A centralized Human Resource structure would mean consistent policy and its implementation. It will also ensure that any decision that is considered adverse to individual employees have been rendered with tact thereby giving the impression that it was a decision carried out with justice and fairness in mind. A centralized Human Resource structure would also provide for individual facilities to capitalize on the learning of the other facilities. A centralize Human Resource structure will also make available talents that have been honed from the other facilities. This will ensure that the quality of the talents occupying management positions are trained and exposed at a level where the whole picture is viewed rather than the local situation. The direction and actions of each facility will not be focused on the local situation but in conjunction with the overall strategic direction of the whole Sonoco. Constrains A constraint of a centralized system that is worth noting is its propensity to sacrifice the concerns of the smaller facility over that of the entire company. This would result to the loss of talent that could have been of value if considered at a national level. Ideas that would normally wind its way up to the attention of top management from the corporate level will get lost because of red tape (Kirkbride, 1994, p. 110). Hybrid HR management structure This is a kind of management structure where the company embraces both centralized and decentralize HR management where applicable (Gunter, 2006, p. 15, & Kendrick and Vershinina, 2010, p. 203). Depending on the kind of production the company management should be able to decide on which kind of organization and human resource strategy to adopt in order to achieve the company’s strategic and HR objectives. Having branches in different parts of the global market, Sonoco company would not opt for this kind of HR strategy as it would create un even and non confirmative products and resources within the market compromising on product quality and quantity which would lower the performance of the company in the global market (Armstrong, 2008, p. 24). The pros of hybrid HR management strategy would only influence a few countries/ markets while constrains of deploying this kind of strategy outweighs the pros. Other than that, the impacts of the hybrid strategy would derail the company financial capability compromising on product quality (Fitz- Enz, 2010, p. 23). This is because the branches that are situated in resource challenged markets and production environment would blame the other branches situated in places with better markets and other opportunities (Davis, 1967, p. 11, & Koch, 2006, p. 130). The blame game would be the actual information and the poor market which negatively impacts on employee morale taking advantage of the poor working conditions of numerous issues that negative it is adept for the Sonoco Company to adopt a centralized HR strategy do that the whole company would be managed from a central office (Condrey, 2010, p. 63). Sustainability of the HR strategic changes In every organization or company, it is perceived that any positive idea that would lead to progress of the organization should not only be adopted but maintained in order to achieve the goals and objectives of the company (Bondarouk, 2011, p. 147 and Jackson et. al., 2007, p. 183). The same case applies to the Sonoco Company where numerous changes are to be implemented with an aim of improving the company performance within both the national and global market (Newstrom and Davis, 1993, p. 19). In order to accomplish the strategic obligations of the company, Cindy Hartley should not sit back and watch the performance of the company. Instead the vice president should form a committee to examine the accomplishment of the strategic HR laws aimed at improving performance and product quality among other managerial chores within the company. The team should aim at maneuvering over the area under which the strategy is to be implemented to affirm the actual performance. This would enhance the company managerial functionalities creating more opportunities to the upcoming entrepreneurs in different business fields (Fitz- Enz, 2010, p. 32). The perceived changes within the company could only be realized when there are individuals responsible for the production and packaging so that the company would gain the lost reputation in regard to product quality. The Vice president should consider the progress made so far before embarking on new strategies that would require more time and resources (Kearns, 2009, p. 104). The HR should organize performance through three levels of existence i.e the cognitive domain where the employees should think, feel and act, hence effective and action domain should be key in implementing the changes within the HR accordance with the regulations that should not be bias in line with socio-cultural factors to enable accomplishment and accountability in a free and fare manner where every stakeholders bares his/ her own issues. References 1. Armstrong, Michael. (2008). 4th Edi. Strategic Human Resource Management: A Guide to Action, New York: Kogan. 2. Bondarouk, T., Ruel, H., J. C. Looise. (2011). Electronic HRM in Theory and Practice. New York- USA: Emerald Group Publishing. 3. Condrey, E., Stephen. (2010). 3rd edi. Handbook of Human Resource Management in Government. Washington- USA: John Wiley & Sons. 4. 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