Download - Whirlpool CaseStudy

7/31/2019 Whirlpool CaseStudy

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Innovationm atWhirlpool: Creating

a New CompetencySUBMITTED BY

NITHIN

PRERANA

RAHUL JAISWAL

UJWAL


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WHAT IS SHRM?

Strategic human resource managementhas been defined as the linking of

human resources with strategic goalsand objectives in order to improve

business performance and developinnovative organizational culture that

foster innovation and flexibility.


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OBJECTIVE:

This case is about the organization

development (OD) initiatives undertaken at

Whirlpool Corporation (Whirlpool) to create anew core competency in the form of building

an innovation culture within the organization.


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Introduction:

The Whirlpool Co

rporation is an American multinational manufacturer

of major home appliances headquartered in Benton Charter Township,

United States.

In 1911, Three brothers-Frederick , Louis and Emory Upton- set up a

company, Upton Machine Corporation at St. Josephs , Michigan , USA.

In 1929, Upton Merged with Nineteen Hundred Corp of New York ,

USA began entering global markets, and sold its washers in Europe and

Asia.

In 1950, Nineteen Hundred Corp officially changed its name to

Whirlpool.


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April 25, 2006 ,Whirlpool Corporation net

sales = US$3.5 billion

Net earnings during that period = US$118million

Analysts attributed this increase to the

company's innovative products.


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Whirlpool had come a long way fromwhere it had been in the late 1990s .

According to analysts, this was a directresult of the stagnation in its product linecaused by very little attention being paid to

innovation.


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HR Strategy used by Whirlpool

Efforts by David R. Whitwam, chairman

and CEO of Whirlpool, in 2000.

change in the company's corporate cultureand embed innovation as a core

competency.


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Mr.Whitwam's organizational goal - Increase

sales and customer loyalty within 2 years.

HR strategy : to make innovation a core

competency at Whirlpool.


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Steps taken to align the organizationalgoal with human resource:

In late 1999, HR dept started the innovation

initiative by inviting ideas from all the

employees.

25 best employees from the company's

European arm sent to the headquarter at Italy.


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Their assignment - brainstorm and come out

with ideas regarding new products or services.

I-box" strategy.


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RESULT

Revenues from innovative products were almost

US$800 million in 2005 as compared to just

US$10 million in 2001.

The share price had also doubled.

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


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As of April 2006, Whirlpool's innovation

pipeline had 568 projects under development of

which 195 were being scaled up for commercial

launch.

The company expected these new appliances to

rake in another US$ 3.3 billion in annual sales

once they were launched


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CONCLUSION

HR strategies when aligned with the business

goals of the organization, at whirlpool, worked

as a turnaround strategy and changed the face ofthe company completely.

Every organization can thus, rely on the HR

strategies partially, if not completely, and create

the magic of success.


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Thank You.