SHRM - Case in Example 2a

8/11/2019 SHRM - Case in Example 2a

http://slidepdf.com/reader/full/shrm-case-in-example-2a 1/15

A Case Study



Whirlpool Whirlpool Corporation manufactures & markets a full

line of major appliances & related products, primarilyfor home use.

Operates in N. America, Europe, Latin America &

Asia. Headquartered in Benton Harbor, Michigan ,USA

Employs about 67,000 people.

Recorded revenues of $17,099 million during financial

year ending December 2009 (FY2009), a decrease of9.6% as compared with 2008 (FY2008)

The decrease in revenue was primarily due to lowerdemand for appliances.



Vision - Every Home… Everywhere…

with Pride, Passion and Performance

Our vision reinforces that every home is our domain, everycustomer and customer activity our opportunity. This

vision fuels the passion that we have for our customers,pushing us to provide innovative solutions to uniquely

meet their needs. Pride... in our work and for each other

Passion... for creating unmatched customer loyalty for ourbrands

Performance... that excites and rewards global investors

with superior returns

We bring this vision to life through the power of our uniqueglobal enterprise and our outstanding people... working

together... everywhere.



Mission

Everyone, Passionately Creating Loyal Customersfor Life

Our mission defines our focus and what we dodifferently to create value. We are a company of peoplecaptivated with creating loyal customers. From every job, across every contact, we will build unmatched

customer loyalty…one customer at a time



Values

Our values are constant and define the way that all Whirlpool Corporation employees are expected tobehave and conduct business everywhere in the world.

Respect — We must trust one another as individualsand value the capabilities and contributions of eachperson.

Integrity — We must conduct all aspects of business

honorably – ever mindful of the longtime WhirlpoolCorporation belief that there is no right way to do a wrong thing.



Cont.d Diversity and Inclusion — We must maintain the

broad diversity of Whirlpool people and ideas.Diversity honors differences, while inclusion allowseveryone to contribute. Together, we create value.

Teamwork — We must recognize that pride results in working together to unleash everyone’s potential,

achieving exceptional results. Spirit of Winning — We must promote a Whirlpool

culture that enables individuals and teams to reachand take pride in extraordinary results and further

inspire the "Spirit of Winning" in all of us.



Current Strategy : 2012-13

Brand Focused Value Creation - Build strong brandsand customer base….

World’s leading manufacturer and marketer of majorhome appliances

Annual Turn over of approximately 17 billion $ in2009



Whirlpool Corporation - 2006 April 25, 2006 ,Whirlpool Corporation net sales =

US$3.5 billion

Net earnings during that period = US$118 million

Analysts attributed this increase in earnings to thecompany's innovative products.



Whirlpool had come a long way from where it had

been in the late 1990’s .

According to analysts, this was a direct result of the

stagnation in its product line caused by very littleattention being paid to innovation

Top management conclusion by late 1999 was to cut

10% of its international workforce and initiaterestructuring process of its global operations.



HR Strategy used by “Whirlpool”

Dedicated efforts by “David R. Whitwam”, Chairmanand CEO of Whirlpool, in 2000.

Change in the company's corporate culture andembedded innovation as a core competency.

Mr. Whitwam’s organizational goal - Increase in sales

and customer loyalty within 2 years. HR strategy : Make “innovation” a “core competency”

at Whirlpool.



Steps to align the organizational goal with HR

In late 1999, HR department at Whirlpool started theinnovation initiative by inviting ideas from all theemployees.

25 best employees from the company's European armsent to the headquarter at Italy.

Their assignment - Brainstorm and come up with ideas

regarding new products & services.

Use of the "I-box" strategy.



RESULT Revenues from innovative products were almost

US$800 million in 2005 as compared to just US$10

million in 2001.

Share price also doubled up.

Between 2003 and 2005, Whirlpool's revenues hadgrown at an average of 9% per annum



As of April 2006, Whirlpool's innovation pipeline had568 projects under development of which 195 werebeing scaled up for commercial launch….

The company expected these new appliances to rake in

another US$ 3.3 billion in annual sales once they werelaunched ….



CONCLUSION

HR strategies when aligned with the businessgoals of the organization, at whirlpool, worked

as a turnaround strategy and changed the faceof the company completely.

Every organization can thus, rely on the HRstrategies partially, if not completely & create

the “magic of success”.



“I f a man does only what is

required of him, he is a slave ,

If a man does more than is

required of him, he is a free man”

– A Chinese proverb

SHRM - Case in Example 2a

Documents