W1 Assignment "Sysco Case Study”
Developing Human Resources
Sysco Case Study
Read the following case study:
HR Contributes at SYSCO
Many people in the United States are not familiar with SYSCO, but they see its results because
SYSCO is the largest food services and distribution company with almost $24 billion in annual
sales. SYSCO supplies food products to customers in restaurants, hotels, supermarkets, hospitals,
and other companies. In a firm the size of SYSCO with more than 40,000 employees, HR
management is making significant contributions to organizational success. As an indication of
this success, SYSCO received the Optimas award for general HR Excellence from Workforce
Magazine.
Beginning several years ago, the need to revitalize HR activities was recognized by both
executives and senior HR staff members. At the time, the SYSCO operating regions had
administered many of their own HR practices. To bring change to HR corporate-wide, while
preserving the entrepreneurial independence of the regions, a “market-driven” HR approach was
developed. In this approach, corporate HR identified ways it could assist regional operations, and
then developed programs and services that met regional needs.
However, unlike in many other corporations where corporate HR programs would be
“mandated” to operating units, SYSCO took a different approach. Key to market-driven HR is
that managers in the regional operations must be convinced to “buy” the corporate HR services.
For example, if a supervisory training program is developed by corporate HR, regional managers
decide if they want to use the program for supervisory training in their regions.
Another part of creating HR as market driven was the establishment by corporate HR of a Virtual
Resource Center (VRC) to provide services to managers and employees. A key aspect of the
VRC is use of HR technology to gather extensive data on HR activities and provide that data to
operating managers. One source of data is workplace climate surveys of employees. Using the
survey data, HR developed initiatives to increase safety, which reduced workers’ compensation
claims by 30%, resulting in savings of $10 million per year.
Another problem that SYSCO had was high turnover rates of night shift warehouse workers.
Recruiting these workers has been a constant challenge for SYSCO and other distribution firms.
By implementing a variety of programs and services, based on employee and managerial input
from surveys, the retention rate for these warehouse employees has been increased by 20%,
resulting in savings of $15 million per year. These savings are due to reduced time and money
spent recruiting, selecting, and training new employees. Also, employees with more experience
are more productive and more knowledgeable about SYSCO operations and products.
Another area where HR has contributed is with truck and delivery drivers. Data gathered through
the VRC has been used to revise base pay and incentive programs, increase driver retention rates,
and improve driver safety records. Additionally, customer satisfaction rates increased and
delivery expenses declined.
All of these changes illustrate that HR efforts at SYSCO have been paying off for the company,
managers, and employees. But as the value of HR efforts is recognized by more managers, HR’s
role at SYSCO is likely to continue growing and changing.
Write a paper to answer the following questions:
1. How does the market-driven approach illustrate that HR has strategic, operational, and
administrative roles at SYSCO?
2. What types of HR changes could have affected reductions in workers’ compensation
expenses, employee turnover, and increases in customer satisfaction?
The requirements below must be met for your paper to be accepted and graded:
Write between 750 – 1,250 words (approximately 3 – 5 pages) using Microsoft Word in
APA style, see example below.
Use font size 12 and 1” margins.
Include cover page and reference page.
At least 80% of your paper must be original content/writing.
No more than 20% of your content/information may come from references.
Use at least three references from outside the course material, one reference must be from
EBSCOhost. Text book, lectures, and other materials in the course may be used, but are
not counted toward the three reference requirement.
Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in
the paper and list on a reference page in APA style.
References must come from sources such as, scholarly journals found in EBSCOhost, CNN,
online newspapers such as, The Wall Street Journal, government websites, etc. Sources such as,
Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.
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