Sonoco Products Company

Team Members: 1. Amrita Nenvani FT13106 2. Chandrakant Raghunathan FT13119 3. Gowtham Bandi FT13131 4. Maitreyee Apte FT13143 5. Puneet Rastogi FT13157 6. Shivani Narang FT13169 7. Swati Sharma FT13181 8. Vinay Alexander FT13194

Problem Statement
To re-organize the HR structure for efficient functioning of the organization so as to meet changing market needs and maintain companys competence

Changing Packaging Industry

Traditionally used packaging materials (metal and glass) were being replaced by durable and cost-effective materials Marketing strategies started focusing more on innovative packaging High flexibility expected from packaging companies Manufacturers sought out packaging companies who provided a one-stop-shop solution

Sonoco - The Company

Strengths
Employee loyalty Ethical, family-friendly culture with team spirit

Weakness
Highly decentralized HR function Talent management in hands of GM and HR managers Underperformers overlooked Steps not taken to develop plans for fulfilling employee career aspirations Gap in Leadership Development Incentive plans not fully aligned with new company strategies

Objectives for Change

To increase GMs accountability for talent management To distribute HR talent and support more evenly across companys division and make HRs processes and systems consistent To optimize HRs ability to contribute to GMs businesses as a strategic partner

 Alternative 1 Centralized model

Less cost of driving administrative and process improvements Cost saving are $3.1 mn Not aligned directly with businesses needs and interests Will be treated more as Call Center in future as no direct link between HR and divisions.

Alternative 2 Hybrid model

Each division involved in key areas such as staffing, succession planning, compensation and benefits etc Divisional HR function strategic link Flexibility as per market requirements can be maintained Cost saving are $2.7 mn Will keep Higher management involved in divisional activities through divisional HRs

Conclusion
Considering the long term goals of sustainability, Sonoco should adopt Hybrid model.
It will broaden HR functions to act as key player in making strategic decisions. It will help in identifying the right people for right business and bring more flexibility in the organization. Initially it might seem expensive but over the period hybrid structure will lead to more productivity, increase employee satisfaction and finally increased profits. It will also solve one of the major concern of Sonoco i.e. defined roles for Corporate and division HR. Corporate will deal with organization HR practices where as division HR will work on short term needs of division with corporate guidance if required.

Also, the firm should introduce incentives aligned with the company strategies to continuously motivate the employees towards achieving company goals.