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.