INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

CASE STUDY TOPIC-

Presented By-

ANANT SIROHI (15810003)

HR Contributes at SYSCO

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Table of Content

• About SYSCO• Case Description• SWOT Analysis• ASTD Model• Questions• HR Roles• Measures for Employee Retention• Conclusion

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About SYSCO

• SYSCO is the largest food services and distribution company in United States.

• SYSCO supplies food products in restaurants, hotels, supermarkets, hospitals and other companies.

• It has more than 40,000 employees.• SYSCO received Optimas award for general HR excellence

from Workforce Magazine.

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Case Description

• Earlier SYSCO operating regions have administered their own HR practices.

• As a result, a “Market-Driven” HR approach was developed.• In this approach, corporate HR identified ways to assist

regional operations and then develop programs and services to meet their regional needs.

• The approach was also different because the HR programs were not mandated on the operating units, instead the managers were convinced to “buy” the corporate HR services.

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Case Description

• Corporate HR also developed VRC to provide services to managers and employees.

• VRC uses HR technology to gather data of HR activities and provide it to the operating managers.

• Using this data, HR developed initiatives to increase safety and thereby reducing compensation claims by 30% and saving $10 million per year.

• They also increased the retention rate of night shift warehouse workers by 20% and saved $15 million per year.

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Case Description

• SYSCO’s HR also revised the basic pay and incentives programs for truck and delivery drivers.

• This helped in increasing retention rate and improve driver safety records.

• In return, customer satisfaction rates increased and delivery expenses declined.

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SWOT Analysis (Strength)

• Highly recognized company in the market with 170 distribution centers.

• Strong supply chain network with focus on lower cost and increased performance.

• A total workforce of 40,000 employees.• Customer base of around 400,000.• The company has around 10,000 trucks.

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SWOT Analysis (Weakness)

• Lack of international presence.• High cost to company in terms of pension benefits and other

claims by the employees.• Decrease in sales in US market.• Lack of backward integration which cost high during supplier

related issues.

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SWOT Analysis (Opportunities)

• Penetration in high return rate and growth markets like Asia and Europe.

• Strategic Acquisitions.• Offer organic and fresh products to existing and potential

customers.

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SWOT Analysis (Threats)

• Changing government regulations.• Cost of doing business in terms of labor wage rates.• Competition offered by other companies in the market in

term of low cost and better operations.

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ASTD Model

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Questions

1. How does the market driven approach illustrate that HR has strategic, operational and administrative roles at SYSCO?

2. Discuss what type of HR changes could have affected reductions in worker’s compensation expenses, employee turnover and increase in customer satisfaction.

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Strategic Roles- Long Term

• They are applied organization wide or globally.• Assess workforce trends and issues.• Engaging in community workforce development planning.• Assist organization’s restructuring and downsizing.• Advising on mergers and acquisitions.• Planning compensation strategies.

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Operational Roles- Intermediate Term

• Managing compensation programs.• Recruiting and selecting for current opening.• Conducting safety training.• Resolving employees complaints.• Representing employee concerns.

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Administrative Roles- Short Term

• Administering employees benefits.• Conducting new employee orientation.• Interpreting HR policies and procedures.• Preparing equal employment reports.

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Measures for Employee Retention

• Coordinates heath and safety programs.• Develops safety reporting system.• Provide expertise for accident prevention.• Provide proper canteen, crèches, restrooms and washing

facilities.• Housing, education and recreational facilities.• Transportation facilities.

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Conclusion

• SYSCO’s HR department played strategic roles in revising compensation plans for employees and in acquisition of various companies.

• They are successful in increasing the employee retention rate.

• The increase in the safety measures at various operating units also helped them in reducing the compensation claims.

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THANK YOU!!