whirlpool case study answers hrm

Employee Retention: A Case Study of Whirlpool Corporation

Learning how to retain employees is a top concern for today’s CEOs and HR professionals … and for good reason. It’s something that keeps good leaders up at night:

Are my employees happy?

Will my top performers stay?

What more could I be doing to keep them?

Employee retention is critical to the long-term health and success of your business and is a big issue in many organizations. Take Whirlpool Corporation for instance, the company had a huge retention problem as they were losing existing talent just as fast as they were hiring new ones. Clearly something needed to be done to engage and retain talent.

Let’s take a look at how Whirlpool Corporation handled the situation.

Introduction:

Whirlpool Corporation is an American multinational manufacturer and marketer of home appliances.

The Challenge:

Whirlpool had an employee retention problem. While they had made efforts to attract and hire new talent, they were losing existing talent at the same, if not a faster, rate.

What the Organization did:

To address this issue, Whirlpool developed a retention risk assessment toolkit to assess the impact on the company if an employee should leave. The toolkit was to help Whirlpool assess the impact the company would face should an employee leave as well as help the company understand the likelihood that an employee will leave and create action plans to prevent this regrettable loss.

Managers were asked to answer each of the following yes or no questions:

• If this employee left Whirlpool, in the current business environment would we sustain a significant revenue loss or increased risk?
• If this employee left Whirlpool, would we lose significant intellectual capital?
• Is this employee in a critical role or on a Succession Plan for a critical role?
• Is there a weak or non-existent contingency plan for if this role were vacant?
• Would this role be difficult to fill both internally and externally?

The risk retention assessment included 25 yes or no questions managers were asked to answer about their employees and their relationship to those employees.

Whirlpool quickly discovered that many managers had difficulty answering a significant number of questions about their employees. Understanding the importance of the manager/employee relationship to retaining talent, Whirlpool created a template for stay interviews as a way to help managers answer those questions, and to create dialogue between managers and employees.

After the first round of interviews was completed, both managers and employees were given a survey about the process. The two major findings from that survey were:

•        Managers assessed their relationship with their employees as being stronger than the employees’ assessment.
•        There were some engagement factors that were specifically called out by employees as important to them that were missed by managers. They were: feeling valued, meaningful work, recognition, reward and working with great people.

As time goes by, Whirlpool is seeing that communication between employees and managers that are involved in the pilot is getting better and employees are saying that these conversations are getting easier to have. Through building stronger relationships with their managers, these employees have also commented that opportunities for professional growth have been presented to them that may not have been in the past.

Things to note

The first rounds of stay interviews were awkward conversations for many of the managers and employees. For example, there were several instances in which a manager thought he or she knew an employee well, but really didn’t. It is important to understand the current relationship between a manager and their employees before moving forward with the process. It is not going to be a productive process if the relationship is severely broken.

Written by Genevieve Craig

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Hacking the Case Interview

Have an upcoming Human Resources case interview and don’t know how to prepare? Don’t worry because we have you covered!

In this article, we’ll cover:

• What is a Human Resources case interview?
• How to solve any Human Resources case interview
• Essential Human Resources case interview frameworks
• Human Resources case interview example

If you’re looking for a step-by-step shortcut to learn case interviews quickly, enroll in our case interview course . These insider strategies from a former Bain interviewer helped 30,000+ land consulting offers while saving hundreds of hours of prep time.

What is a Human Resources Case Interview?

A Human Resources case interview is a type of interview used in the hiring process for HR consulting-related roles, where candidates are presented with hypothetical or real-world HR scenarios and are asked to analyze, solve, and provide recommendations for the given situations.

The purpose of a HR case interview is to assess the candidate's problem-solving skills, analytical thinking, HR knowledge, and ability to apply HR principles in practical situations.

During a HR case interview, candidates are typically given a description of a specific HR challenge, issue, or scenario.

They are then expected to discuss their thought process, ask clarifying questions, identify the underlying problems, propose possible solutions, and explain the rationale behind their recommendations.

The interviewers are looking for candidates who can demonstrate their ability to think critically, understand the complexities of HR issues, and offer strategic and practical solutions.

The scenarios presented in HR case interviews can cover a wide range of topics within the HR field, including:

• Talent Acquisition and Recruitment : Candidates might be asked to devise a strategy for attracting and selecting the best candidates for a specific position or organization
• Employee Development and Training : The interview scenario could involve designing a training program to improve employee skills and performance
• Performance Management : Candidates might need to address issues related to employee performance evaluation, feedback, and improvement
• Compensation and Benefits : Scenarios may revolve around designing competitive compensation packages or benefits programs
• Diversity and Inclusion : Candidates could be asked to develop initiatives to promote diversity and inclusion within the workplace
• Employee Relations and Conflict Resolution : The case might involve managing interpersonal conflicts or addressing employee grievances
• Organizational Change and Restructuring : Candidates could be presented with scenarios related to managing organizational changes, such as mergers, acquisitions, or restructurings
• HR Strategy and Planning : The case could require candidates to develop long-term HR strategies aligned with the organization's goals

The key to performing well in a HR case interview is to demonstrate a structured approach to problem-solving, a solid understanding of HR principles and best practices, clear communication skills, and the ability to think strategically.

Candidates should break down the problem, consider multiple perspectives, and provide practical and actionable recommendations.

It's important to note that the format and structure of HR case interviews can vary between companies. Some companies might provide candidates with written case materials to review in advance, while others might present the case during the interview itself.

As with any interview, thorough preparation, practice, and research on the company's HR practices and industry trends are essential for success in a HR case interview.

How to Solve a Human Resources Case Interview

There are seven steps to solve a Human Resources case interview.

1. Understand the case

Understanding the case scenario is the foundation of effective problem-solving. Read or listen to the scenario carefully, absorbing the context, key stakeholders, and central issues. 

For example, if the case presents a situation involving declining employee morale and engagement, you'd want to grasp the factors contributing to this decline and the potential consequences for the organization.

2. Ask clarifying questions

Asking thoughtful clarifying questions demonstrates your ability to extract crucial details and gain a comprehensive understanding of the situation. 

For instance, if the case revolves around a sudden increase in turnover, you might inquire about specific departments or roles affected, reasons employees cite for leaving, and any recent organizational changes that could be relevant.

3. Develop a structured approach

Structuring your analysis provides a roadmap for addressing the case logically. A structured framework ensures you cover all necessary aspects and maintains a clear flow of your analysis.

The next section of this article covers essential frameworks you should be familiar with in detail.

4. Gather information 

After understanding the case and asking clarifying questions, use the information you've gathered to delve deeper into the issues. Collect data from the case materials and consider applying relevant HR concepts.

For instance, if the case involves a performance issue among a certain team, you'd want to assess the team dynamics, individual competencies, and possible external factors influencing performance.

5. Propose solutions

Based on your analysis, propose concrete and actionable solutions for each identified issue. These solutions should align with HR best practices and the organization's values. 

If the case highlights a challenge related to attracting top talent, your solutions could range from improving employer branding to enhancing the interview process to increase candidate quality.

6. Evaluate trade-offs

Weighing the pros and cons of each solution demonstrates your critical thinking. Discuss the potential benefits, drawbacks, and implications of implementing your proposed solutions. This showcases your ability to consider multiple perspectives. 

For example, when addressing an employee retention problem, you'd need to assess the costs of implementing retention programs versus the costs of continued turnover.

7. Develop a recommendation

Culminate your analysis by crafting a well-founded recommendation that considers the organization's goals, HR best practices, and the context of the case. Your recommendation should offer a clear path forward. 

If the case centers on improving diversity and inclusion, your recommendation might encompass strategies such as unconscious bias training, diverse recruitment initiatives, and mentoring programs.

In addition to Human Resources case interviews, we also have additional step-by-step guides to: market entry case interviews , growth strategy case interviews , M&A case interviews , pricing case interviews , operations case interviews , and marketing case interviews .

Essential Human Resources Case Interview Frameworks

There are a few Human Resources case interview frameworks you should be familiar with. These are helpful ways of organizing your thoughts and ideas into a structured and systematic approach.

However, we do not recommend using these frameworks word-for-word. You should demonstrate to the interviewer that you can think critically for yourself instead of relying on memorized frameworks.

You should instead be creating your own unique and tailored framework for each Human Resources case interview scenario.

Therefore, your framework may include parts and pieces of the frameworks below, but you should not just copy them.

The PPT Framework

The PPT framework stands for People, Processes, and Technologies, and it's a valuable approach for analyzing and solving Human Resources (HR) challenges in case interviews. This framework focuses on three key dimensions that are often interconnected in HR scenarios. Let's delve into each component:

In this dimension, you'll consider the human aspects of the HR challenge presented in the case. This involves assessing how employees, managers, and stakeholders are affected by the issue and how they contribute to potential solutions.

Some points to address include:

• Employee Engagement and Morale : Examine how the challenge impacts employee satisfaction and motivation
• Leadership and Management : Evaluate how managers' actions and behaviors contribute to or alleviate the challenge
• Communication and Collaboration : Analyze how effective communication and collaboration among employees can influence the situation
• Training and Development : Consider how training and development initiatives can address skill gaps related to the challenge
• Organizational Culture : Explore how the existing culture supports or hinders the resolution of the challenge

2. Processes

This dimension focuses on HR processes, policies, and practices that are relevant to the case. You'll assess how these existing processes might contribute to the challenge and propose adjustments or new processes to address it.

Some aspects to consider are:

• Recruitment and Onboarding : Evaluate how the recruitment process might be impacting the issue and suggest improvements
• Performance Management : Examine how performance evaluation and feedback processes relate to the challenge
• Employee Development : Analyze training, mentoring, and career advancement processes as they pertain to the issue
• Compensation and Benefits : Consider whether compensation structures contribute to or mitigate the challenge
• Conflict Resolution : Address how existing conflict resolution processes can be used to address any interpersonal challenges

3. Technologies

This dimension focuses on the technological tools and systems that can support HR processes and solutions. Modern technologies can greatly impact HR practices and provide innovative ways to solve challenges.

Consider the following:

• HR Information Systems (HRIS) : Explore how HRIS can streamline processes and provide data for decision-making
• Performance Tracking Tools : Assess how tools for monitoring employee performance can aid in addressing the challenge
• Learning Management Systems (LMS) : Examine how an LMS could be used for training and development initiatives
• Recruitment Platforms : Analyze how technology can optimize recruitment efforts and attract suitable candidates
• Employee Feedback Platforms : Consider tools that facilitate employee feedback and engagement measurement

The PESTEL Framework

The PESTEL framework is a strategic analysis tool that helps examine various external factors affecting a business or organization. It stands for Political, Economic, Social, Technological, Environmental, and Legal factors.

When applied to Human Resources (HR) case interviews, the PESTEL framework allows you to consider the broader context that impacts HR challenges and solutions.

Here's how you can use each dimension of the framework in the context of HR cases:

1. Political Factors

Political factors encompass the impact of government policies, regulations, and political stability on HR challenges. In the context of HR case interviews, consider how political factors influence:

• Labor Laws and Regulations: Analyze how labor laws and regulations affect HR practices, such as employment contracts, working hours, and employee rights.
• Immigration Policies: Examine how immigration policies impact talent acquisition and workforce diversity.
• Health and Safety Regulations: Consider how workplace safety regulations influence HR strategies for employee well-being.

2. Economic Factors

Economic factors relate to the broader economic environment, including inflation, economic growth, and market conditions. In HR case interviews, consider how economic factors affect:

• Labor Market Conditions : Evaluate how economic cycles impact talent availability, hiring, and compensation negotiations
• Compensation and Benefits : Examine how economic conditions influence decisions about employee compensation and benefits packages
• Budget Constraints : Analyze how economic fluctuations can affect HR budgets for training, development, and recruitment

3. Social Factors

Social factors encompass cultural trends, demographic shifts, and societal attitudes that impact HR challenges. In HR case interviews, think about how social factors influence:

• Diversity and Inclusion : Consider how societal attitudes towards diversity impact HR initiatives for inclusion and representation
• Work-Life Balance : Examine how changing societal expectations affect employee preferences for work-life balance and flexible arrangements
• Generational Differences : Analyze how different generations' values and expectations influence HR strategies for employee engagement and motivation

4. Technological Factors

Technological factors refer to advancements that impact HR practices and solutions. In HR case interviews, consider how technological factors influence:

• HR Information Systems (HRIS) : Examine how technology can enhance HR processes, such as data management, recruitment, and performance evaluation
• Remote Work Technology : Analyze how technology enables remote work and its implications for HR policies and practices
• Learning Platforms : Consider how technology supports employee learning and development through online training platforms

5. Environmental Factors

Environmental factors pertain to sustainability, ecological concerns, and corporate social responsibility. In HR case interviews, consider how environmental factors influence:

• Sustainability Initiatives : Examine how an organization's commitment to environmental sustainability impacts HR strategies, such as commuting policies and eco-friendly practices
• Employee Well-being : Analyze how a healthy and sustainable work environment contributes to employee well-being and job satisfaction

6. Legal Factors

Legal factors encompass laws and regulations that affect HR practices and employment relationships. In HR case interviews, consider how legal factors influence:

• Employment Contracts : Examine how legal requirements for employment contracts and agreements shape HR policies
• Discrimination and Harassment Laws : Analyze how legal regulations on discrimination and harassment impact HR initiatives for diversity and inclusion
• Data Privacy Regulations : Consider how data privacy laws influence the collection and management of employee data

Human Resources Case Interview Examples

Example #1 : A company's employee engagement has been declining. Develop an HR strategy to address this issue.

To solve this case, you would start by understanding the current engagement levels, analyzing potential causes, and identifying specific areas for improvement. Then, propose initiatives that focus on aspects like recognition programs, career development opportunities, and fostering a positive work culture. Consider how each initiative aligns with the organization's values and goals, and provide an implementation plan detailing roles, timelines, and metrics for success.

Example #2 : A retail company is experiencing high turnover rates among its sales team. How would you address this issue?

Begin by assessing the reasons behind the turnover, considering factors such as compensation, work environment, and career growth. Propose solutions such as conducting exit interviews to gather feedback, adjusting compensation packages, implementing mentorship programs, and providing clear paths for career advancement. Highlight the importance of retaining talented employees and outline the steps needed to execute your recommendations.

Example #3 : A tech company wants to enhance diversity and inclusion in its workforce. Develop strategies to achieve this goal.

Start by understanding the company's current demographics and analyzing potential barriers to diversity. Propose initiatives such as unconscious bias training for hiring managers, targeted recruitment efforts to attract underrepresented groups, and affinity groups to foster a sense of belonging. Emphasize the value of diversity in driving innovation and ensuring a representative workforce, and provide methods to measure the impact of your strategies.

Example #4 : An organization's performance management process is outdated. How would you redesign it?

Begin by evaluating the existing performance management process and identifying its weaknesses. Propose solutions such as implementing continuous feedback mechanisms, setting clear performance goals aligned with company objectives, and utilizing technology for real-time performance tracking. Emphasize the importance of employee development and aligning individual goals with overall organizational success.

Example #5 : A multinational company wants to create a leadership development program. How would you design and implement it?

Start by identifying the leadership skills and competencies required for the company's future success. Develop a comprehensive program that includes leadership training workshops, mentorship opportunities, and experiential learning projects. Consider how to measure the program's effectiveness and tailor the content to different leadership levels within the organization.

Example #6 : A company wants to establish a remote work policy post-pandemic. How would you design and implement this policy?

Begin by analyzing the organization's needs, considering roles suitable for remote work, and potential challenges. Develop a policy that outlines expectations, communication protocols, performance measurement methods, and technology requirements. Address concerns about productivity and collaboration and provide guidelines for maintaining work-life balance while working remotely.

Example #7 : Two companies are merging, leading to cultural clashes and resistance among employees. How would you manage this change?

Begin by understanding the unique cultures of both companies and identifying areas of alignment and divergence. Develop a change management plan that includes clear communication, involving key stakeholders in decision-making, and addressing concerns through town hall meetings and Q&A sessions. Emphasize the benefits of the merger and outline how employees' roles and responsibilities will be impacted positively.

For more practice, check out our article on 23 MBA consulting casebooks with 700+ free practice cases .

Recommended HR Case Interview Resources

Here are the resources we recommend to learn the most robust, effective case interview strategies in the least time-consuming way:

• Comprehensive Case Interview Course (our #1 recommendation): The only resource you need. Whether you have no business background, rusty math skills, or are short on time, this step-by-step course will transform you into a top 1% caser that lands multiple consulting offers.
• Hacking the Case Interview Book   (available on Amazon): Perfect for beginners that are short on time. Transform yourself from a stressed-out case interview newbie to a confident intermediate in under a week. Some readers finish this book in a day and can already tackle tough cases.
• The Ultimate Case Interview Workbook (available on Amazon): Perfect for intermediates struggling with frameworks, case math, or generating business insights. No need to find a case partner – these drills, practice problems, and full-length cases can all be done by yourself.
• Case Interview Coaching : Personalized, one-on-one coaching with former consulting interviewers
• Behavioral & Fit Interview Course : Be prepared for 98% of behavioral and fit questions in just a few hours. We'll teach you exactly how to draft answers that will impress your interviewer
• Resume Review & Editing : Transform your resume into one that will get you multiple interviews

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HRM Case Studies With Solutions

Let’s study Human Resource Management Case Studies with solutions. HRM Case studies play a vital role in management education especially in subjects like Human Resource Management (HRM), Personnel Management, PAAP and related subjects.

It gives a clear picture of the concepts when you practise them through case studies. Here we have given some live HRM case studies that are short, useful & interesting. This will allow you to think beyond the theoretical part and make you capable to apply the concepts in real-time situations.

Table of Contents

We are also providing solutions which are free of cost. We welcome your feedback about these HRM case studies.

Below are short and simple Case Studies on HRM with Solutions, Questions, and Answers.

HRM Case Study 1

Harsha and Franklin both of them are postgraduates in management under different streams from the same B-School. Both of them are close to each other from the college days itself and the same friendship is continuing in the organization too as they are placed in the same company, Hy-tech technology solutions. Harsha placed in the HR department as employee counsellor and Franklin in the finance department as a key finance executive. As per the grade is concerned both are at the same level but when responsibility is concerned Franklin is holding more responsibility being in core finance.

By nature, Harsha is friendly in nature and ready to help the needy. Franklin is silent in nature ready to help if approached personally and always a bit egoistic in nature. They have successfully completed 4 years in the organization. And management is very much satisfied with both of them as they are equally talented and constant performers.

Harsha felt that now a day’s Franklin is not like as he uses to be in the past. She noticed some behavioural changes with him. During general conversations, she feels that Franklin is taunting her that she is famous among the employees in the organization, on the other hand, he is not even recognized by fellow employees.

One morning Mr. Mehta General Manager Hy-tech technology solutions shocked while going through the mail received from Franklin about his resignation. Mr. Mehta called Harsha immediately and discussed the same as she is close to Franklin. By hearing the news Harsha got stunned and said that she does not know this before she also revealed here current experience with him. Mr. Mehta who does not want to lose both of them promised her that he will handle this and he won’t allow Franklin to resign.

In the afternoon Mr. Metha took Franklin to Canteen to make him comfortable after some general discussion he starts on the issue. Franklin, after some hesitation, opened his thinking in front of Mr. Mehta. The problem of Franklin is

1) when he comes alone to canteen the people from others don’t even recognize him but if he accompanied by Harsha he gets well treated by others.

2) one day Both of them entered the company together the security in the gate wished them but the next day when he came alone the same security did not do so.

3) Even in meetings held in the office, the points raised by Harsha will get more value so many times he keeps silent in the meeting.

It happens to Franklin that he has to face such degradation in each day of work which totally disturbs him. Franklin also questioned that ” Harsha and myself have the same qualification, from the same institute, passed out in the same year both with first class. We have the same number of experiences in this organization. Moreover, the responsibilities with me are more valuable than those of Harsha. After all these things if I am been ignored or unrecognized by the fellow employees my ego does not allow me to continue here”.

By listening to this statement Mr.Metha felt that it is not going to be very difficult to stop his resignation. Mr. Mehta explained Franklin the reasons for such partial behaviour of the employees. After listening to Mr. Mehta Franklin said sorry for his reaction and ready to take back his resignation. And he called Harsha and spoke with like before.

Questions for HRM Case Studies: Case Study 1

Find the reason that Mr. Mehta would have given to Franklin.

Solution for HRM Case Study 1

Mr. Mehta listening to this case understood the situation and realized the reason behind the partial response given by the employees towards Franklin and Harsha. As Franklin said both Harsha and Franklin are passed out from the same college in the same year. Both of them joined the company together both have the same experience. Even in performance-wise, both stands in the same level i.e. both are constant performers and good performers.

Franklin analyzed all the above-said similarities between him and Harsha. He also stated that he holds more responsibility than that of Harsha. One thing Franklin did not notice or analyzed is the job profile of Harsha. It is true that Franklin holds more responsibility than that of Harsha but when it comes to direct interaction with employees Harsha wins the employees’ attention in this aspect. Harsha being a counsellor in HR she faces the employees every day. She developed good rapport among the employees due to her friendly nature. She is always remembered by the employees whenever they face any problem as she gives good counselling and most of the time she suggests the best solutions for such issues.

Franklin though holding a key position in finance his profile does not allow him to interact with the employees. Though he has a helping tendency he does only when someone approached him personally. As the employees of other departments do not have any relation with him they never approach him for help. Mr. Mehta having a good experience understood these things when Franklin explained his problems one by one. Later he relates each situation, explained by Franklin with the above said reasons and made Franklin understood the reality.

Mr. Mehta said that the security in the gate or the employees in the canteen who recognized Harsha and not Franklin would have interacted with her during counselling or approached her for any issues. And as usual, she would have counselled well or solved the issues of them that is the reason why they treat her and wish her whenever where ever they meet her. When it comes to the case of Franklin they would have hardly met him or interacted with him.

When it comes to the point that even in-office meetings Harsha, points are valued so Franklin keeps mum. For this, Mr. Mehta replied that the points put forward by her would be related to employees or from the employees’ point of view which actually the management wants to know so they give value to her points. And as quoted Fraklin after, one or two such incidents keep silent in the meeting. He never made an attempt to raise some suggestions so management does not have any option to listen to that suggestion.

After listening to all the explanations given by Mr. Mehta Franklin realized his mistake and felt proud of the Rapport developed by Harsha among the employees. He said to Mr. Mehta that he will take back his resignation. And rushed to Harsha to make an apology and to meet her as a friend as like his college days.

HRM Case Studies Part 2:

HRM Case Study 2

Watson Public Ltd Company is well known for its welfare activities and employee-oriented schemes in the manufacturing industry for more than ten decades. The company employs more than 800 workers and 150 administrative staff and 80 management-level employees. The Top-level management views all the employees at the same level. This can be clearly understood by seeing the uniform of the company which is the Same for all starting from MD to floor level workers. The company has 2 different cafeterias at different places one near the plant for workers and others near the Administration building. Though the place is different the amenities, infrastructure and the food provided are of the same quality. In short, the company stands by the rule of Employee Equality.

The company has one registered trade union. The relationship between the union and the management is very cordial. The company has not lost a single man day due to strike. The company is not a paymaster in that industry. The compensation policy of that company, when compared to other similar companies, is very less still the employees don’t have many grievances due to the other benefits provided by the company. But the company is facing a countable number of problems in supplying the materials in the recent past days. Problems like quality issues, mismatch in packing materials (placing material A in the box of material B) incorrect labelling of material, not dispatching the material on time, etc…

The management views the case as there are loopholes in the system of various departments and hand over the responsibility to the HR department to solve the issue. When the HR manager goes through the issues he realized that the issues are not relating to the system but it relates to the employees. When investigated he come to know that the reason behind the casual approach by employees in work is

• The company hired new employees for a higher-level post without considering the potential internal candidates.
• The newly hired employees are placed with higher packages than that of existing employees in the same cadre.
• Narrate the case with a suitable title for the case. Justify your title.

Solution for HRM Case Case Study 2

Employee Equality is not the need for every hour. In the above-said case, Watson Ltd had provided all facilities to employees at each grade in an equal manner. But still, the employees started creating certain issues like materials are meeting the quality supply schedule is not met etc. And the HR manager said that the policy of hiring new employees for the higher post without considering old potential employees is the major problem.

“Employee recognition VS Employee equality ”. As the HR manager states that employees are not been recognized for the potential rather the company has gone for new recruitment. Because of which the company faces problems.

• The points rose by the HR manager as the reason for the latest issues in the organization is justifiable or not. Support your answer with Human resource related concepts.

Yes, the points raised by the HR manager is justifiable because “Human beings are social Animals as popularly” said by many Human resources Scholars. So human minds demand social recognition, self-respect, consideration, etc for their work and performance.

In the above-said case, even the company provides and stands by the concept of employee equality when it fails to recognize the potential talents of existing employee they felt dissatisfaction towards the organization and they showed in the way of quality issues and slow down production.

Related HR concept.

Slow down Production:

The concept of slow down production is a type of employee’s strike. The Industrial Relations sates that when the employee wants to show their dissatisfaction to the management but don’t want to go for strike they follow slow down strike. The impact of which will be understood after a particular time period.

Employee Recognition:

Human beings can be easily motivated by Rewards and recognition than that of money. In this case, also the employee is not satisfied even after all facilities just because of the reason that they are not recognized.

Hawthrone Experiment:

In the four types of test conducted by Elton Mayo, the remarkable hike in production is recognized in the stage when they consulted the employees for the management decisions regarding them. The same thing was missing in Watson Ltd. Before the new hires if the management consulted the employees both management and employees would have avoided this issue

Hygiene Factor:

The theory of hygiene factors states that there are certain factors related to employees the presence of which will not create a major impact but the absence of such things will lead to a de motivation to the employees. Employee Recognition is one such factor when the management fails to do so it will Detroit the employees to a great extent.

• Help the organization to come out from this critical issue. If you are in the role of HR manager what will be your immediate step to solve this case.

If I was in the post of the HR manager I will try to discuss the issue and ask for the reason from the management for new recruiting rather than considering available potential talents. I will personally analyse the reasons provided by management and if acceptable I will discuss the same with the employees. Everything is possible with a discussion. So I will discuss and convince the employee that this won’t happen again in the organization. I will also initiate the collective bargaining process for reasonable salary hike for the existing employees.

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• September 26, 2022

Best HR Case Studies

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HR as a function has undeniable importance from a business management perspective. With the advancement in technology, 2022 saw a huge technological shift in this aspect of business management as well. Apart from digitizing all other business aspects, organizations have begun to incorporate technology and data into HR practices as well.

HR Analytics Case Studies with Business Impact and its benefits are listed below:

An american mnc reduces attrition using people analytics and forecasting.

Case: This American MNC is a client of PeopleStrong and is suffering from a high turnover of employees at five locations. The company intended to install analytics in order to evaluate the main drivers of attrition and do forecasting for their occurrence at different business locations.

Solution: An integrated tool for workforce analytics was created and implemented. This tool could capture attrition results and their drivers and do a forecasting based on trends.

Also Read:  Executive Development Program In Human Resource Management From XLRI Jamshedpur

Result: The forecasting report predicted that 500 of the 5000 employees were going to quit in the next 6 months. Better employee retention policies were designed which included rewards and incentives apart from better people strategies. Even though 250 people still left, the figure was 50% lower than the prediction.

Under Armour digitized employee recruitment and enhanced employee experience

Case: Under Armour, an American organization dealing with the manufacture of sports and casual apparel and footwear, is a global company. With more than 130 global outlets and 8500 employees, their ATS system received more than 30,000 resumes in a month. Thus, hiring was a cumbersome process for them as well as candidates applying for a job.

Solution: They engaged in a digital recruitment system called Hirevue. With Hirevue, managers could create interviews with candidates with the help of pre-recorded questions. This screening process helped managers call in only employees who met their requirements for webcam or mobile recorded interviews.

Result: Managers could now hire new employees much more quickly. There was a 35% reduction in time in the overall interview to the hiring process. Talent quality also improved.

These above case studies show the emerging trend of incorporating analytics in the HR function of business management . This can also be seen to have positive results in the recruitment and retention processes. 

Human resource management is quite a recent term. Employees are treated with a lot of respect and regard nowadays compared to earlier. There were times when workers were considered to be expendable and they had few rights. Working conditions were miserable and people had no say in how organizations are operated or in the way they were treated. The industrial revolution is what brought changes. Companies started realizing that keeping employees loyal was essential for running businesses smoothly.  

Caring For Employees During The Industrial Revolution

Courses for human resources certification online teach that before the industrial revolution there were hardly any large industries and a need for managing workers was not felt. Working conditions were dangerous for them and pay was hardly commensurate with what work they did. In the late 1900s, companies like the UK-based Cadbury and Jacob from Ireland appointed welfare officers. These firms introduced a system of payment during sick leaves and cheap housing for employees.

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It was F W Taylor during the early twentieth century who introduced a system for managing staff. He believed that people could be trained to become experts in certain jobs. The famous carmaker Ford adopted his methods. Tools in manpower management like job analysis, employee selection procedures, and training methods were introduced during this period. Certain fast food organizations also adopted Taylor’s theories. His mistake was that he did not think people can get bored with doing the same job.

Employee Management During The World Wars

Two events that changed many things for us are the first and second world wars. Employee unions had been formed during the first world war. As men went to fight wars, women came to be seen more in workplaces. In your HR training certification by IIM Raipur , you will learn how companies had to think about managing workers and form new rules. Recruitment, dismissal, bonus, and absence from work came under the scope of manpower management.

Researchers like Elton May opined that factors like motivation, job satisfaction, leadership skills, and group dynamics could influence performance. The improvement in the economy after the war saw many firms adopting a more flexible approach to staff members. Big companies used employee benefits to lure and retain people. Personnel and welfare work was in full swing during the second world war, but it was done in a bureaucratic style as government-run firms influenced law-making.

The Post-War Scenario

The 60s were not good times for industrial relations as it was found that none of the entities involved in negotiation had skills to discuss issues of employees. As the decade came to an end, employment opportunities improved, and along with this, people management techniques began to be used. When you study human resources certification online courses you will know that terms like motivation, organizational behavior, and management training were heard more commonly.

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In the seventies, much was talked about rewarding employees. The next two decades saw economies sliding and companies becoming less profitable. But it was also then that many organizations realized the importance of retaining people. They began looking at workers as an asset that must be taken care of if the firm wants to have an edge over competitors. Humans started to be regarded as resources that need to be effectively managed. Human Resource Management was born.

The Nineties To Now

It is no more only personnel management and administrative tasks for workforce heads. The HR training certification by IIM Raipur will tell you that it is more about employee engagement and development that people managers are tasked with now. Human resource departments are strengthening the culture in an organization and finding people who can fit that environment. They are also tasked with ensuring that every employee gets an opportunity to use his or her talents for the benefit of their companies.

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HR managers are more focused on workers than on processes. This department is also gaining more importance as management’s realize a need to attract and retain the best talents available in the market. HR leaders find themselves among the C-suite as their role in getting the best out of employees is increasing. They must understand the needs of a more diverse, multicultural, and multigenerational workforce and ensure to fulfill them. Retention of good hands has assumed much importance nowadays.

The Future Of HR Management

  The human resources certification online courses will teach that it is not just enough to employ and retain people, but they must also be trained and developed. The speed at which new technologies emerge, there is a need to keep employees abreast of modern developments. HR managers must continuously update themselves with modern technology and arrange training programs to empower workers with new skills. The journey of staff members in an enterprise will be that of continuous learning.

Acquiring best talents and retaining them will remain the focus of any progressive organization. People managers will have to find innovative means to attract those who are equipped with the latest skills required for a job. Engaging with prospective employees through social media platforms will be practiced by more HR heads. There will be increased use of automation for screening resumes and conducting initial interviews. This will speed up the process and reduce costs.

HR departments will be trying innovative methods to improve employee experience in the company. They will find out the requirements of the new breed of recruits. Learning opportunities will be improved. Promotions and salary hikes will no longer be based on experience or seniority. New procedures for evaluating employees will be used. Getting HR training certification by IIM Raipur will teach new methods that are used by global enterprises for appraisal and rewarding.

Looking at the evolution of human resource management can show you that there has been a shift from looking at employees as only a means to achieve company objectives, treating them as individuals, and satisfying their needs. There is a realization that it is equally important to ensure that their goals are achieved and these objectives are in line with that of the organization. HR departments will play a more important role as retaining good talent becomes crucial. Combining the human force with machines and using that synergy will be highly important in the future.

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How Whirlpool Spun The Home Appliance Market

Table of contents.

Look around your house; you will surely find a device or two from Whirlpool, be it a washing machine, a food factory, or a fridge.

An American multinational corporation that manufactures and markets premium quality home appliances, Whirlpool has a long and illustrious history of over 100 years, redefining lifestyles, one innovative home appliance at a time.

Here are a few statistics from 2020 that highlight the scale at which Whirlpool operates:

• Annual sales of $19 billion
• Employs a diverse workforce of 78,000 people
• Invested $0.9 billion in capital expenditure and R&D
• Manufactures products across 13 countries
• Achieved an impressive 10.9% return on invested capital
• Reached No. 7 spot on Newsweek’s 2021 list of America’s most responsible companies

Whirlpool started as a family venture that steadily grew into one of the most innovative and respected businesses worldwide. It went from being a family of two to having over 78,000 employees across the world. Yes, that’s right! 

Let’s take a closer look at the company’s impressive growth journey…

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It All Starts With An Idea

Whirlpool’s history can be traced back to 1911 when Louis and Emory Upton founded the Upton Machine Company - the original predecessor to the present-day Whirlpool Corp. Louis Upton’s imaginative and enterprising nature was the main reason behind the company’s establishment and early success in acquiring customers.

The Man Behind The Business

While still in high school, Louis Upton was forced to take up a job to support his family when his father died in a streetcar accident. He started off by becoming an insurance salesman. His job led him to cross paths with W.S. Klein, the secretary-treasurer of the Commonwealth Edison company. Although Louis failed to sell him insurance, he received a job offer instead.

The job at Commonwealth Edison introduced Louis to the rapidly developing field of electricity. It was here that Louis Upton also conceived the idea of making an electric washing machine.

An Unexpected Opportunity

While working at Edison, Louis was approached by E.C. Williams, a hardware merchant who wanted to set up a company to manufacture home washers. Upton was intrigued by the idea and offered his savings, $500, to Williams as capital for the company.

However, the venture failed utterly, and Williams’ business went bankrupt. Feeling responsible for Louis’ loss, Williams offered him a choice to take a patent as recompense.

Louis chose the patent for a manual washer that became the key for the founding of the company. He wanted to attach an electric motor to this design in light of his goal of manufacturing an electric washing machine.

The patent offered Louis the unexpected opportunity to realize his dreams, and he intended to make the most of it.

The Electric Washer Is Developed

After getting the patent, Louis approached his uncle Emory Upton, a mechanic, to consult him over the feasibility of his idea of attaching an electric motor to the design. Emory himself set about devising a transmission for the project.

Louis Upton approached the Federal Electric Company - one of commonwealth Edison’s divisions - with the new machine and convinced them to order a hundred washers for the retail market. He set up shop in Benton Harbor to fulfill the order. There, his brother, Frederick, also joined him to help build the electric washers.

Initial Challenges

After fulfilling its first order and successfully dealing with a few complaints regarding a fault in the gear transmission of the machines, the Upton Machine Company had successfully procured Federal Electric as a customer.

The manufacturing of the washers was financed by a $5,000 investment from Lowell Bassford, a retailing executive. Thus, the Upton Machine Company was formally established and was ready to start producing electric wringer washers. However, the relationship between Upton and Federal Electric came to a grinding halt after three years as the latter began manufacturing its own electric washers.

The loss of its customer was a major blow for the newly established company. Still, it managed to survive the harsh turn of events by diversifying and manufacturing toys, camping equipment, and automobile accessories.

The company finally experienced a breakthrough in 1916 when they managed to reach an agreement with Sears, Roebuck & Co. to produce two types of washers. Sears marketed the washers under the brand name “Allen.”

However, the company had learned from its previous experience with Federal Electric not to be over-reliant on a customer, which is why it began marketing a washer under its brand name as well.

The Merger With Nineteen Hundred

During the 1920s, the sales volume saw a rapid increase due to Sears’ expansion into retail and its selection of Upton as the sole supplier of washers.

Thus, Upton felt the need to increase its production capacity and enhance distribution efficiency. To do so, the company initiated a merger with Nineteen Hundred Washer Company of Binghamton, New York, in 1929. The company also changed its name to the Nineteen Hundred Corporation after the merger.

This new company was able to survive through the Great Depression while remaining relatively unaffected. It actually expanded and modernized its manufacturing facilities to cope with the increasing sales volume. It could very well be said that the company was thriving.

Key Takeaway 1: Every Challenge Is An Opportunity

Louis Upton encountered various challenges early on in his career. He invested in savings in E.C. Williams’ venture and it went bankrupt. However, upon receiving the patent as compensation for his loss, he embraced the opportunity to start his own business by developing an electric washer.

Rather than being disheartened by the previous failed venture, he wasted no time in approaching his uncle and setting his plans in motion. From there on, the company expanded its production capacity, partnering with large-scale customers and becoming a leading manufacturer in the industry!

The Business Takes Root

The company had now found its footing after an uncertain beginning. It was in a position to look towards expanding its business and establishing a presence in the industry.

Business During War Years

When World War II broke out, it resulted in the suspension of manufacturing all consumer products. Unfortunately for the Nineteen Hundred Corporation, this included washing machines. The company gave the production of military equipment precedence, and it received a contract for machining and assembling gun mounts.

Despite the drastic shift in the nature of products being manufactured, the company excelled at the new task. It was mass-producing military equipment such as propeller controls on an assembly line, even though they were usually custom-made. 

In 1942, Louis Upton was called to Washington and was appointed the Chief of the Consumer’s Durable Goods Division of the War Production Board. His task was to coordinate 19 industries into the war effort. He worked tirelessly during this time, with the company operating for 24 hours, six days of the week - sometimes even seven.

Throughout the duration of the war, the company’s 1,595 employees (620 of which were women) worked relentlessly to contribute to America's war effort.

Post War Years

Louis Upton demonstrated once again that he was a man with vision and foresight. While fully dedicated to contributing to the war effort, he was also thinking about what unique products he could offer the consumers once the war ended. Even during the war, he worked to develop a fully automatic spinner type washer that underwent as many as 25 major refinements and 50 working models.

Coincidentally, the company finished work on the washer just as the war was ending. Only a week after Japan surrendered, i.e., August 27, 1945, the company announced its new automatic washers: the Kenmore and Whirlpool. In 1947, Sears introduced the first automatic spinner type washer produced by the Nineteen Hundred Corporation, nicknamed “Jeep.”

Originally it was marketed under the "Kenmore" brand, but then after a year, it was reintroduced under the brand name “Whirlpool.”

Elisha Gray Takes Over

In 1949, at the annual meeting of the concern, Louis Upton announced his retirement and appointed Elisha Gray as his successor and Chief Executive Officer. He did, however, remain active in the firm, serving as Chairman of the Board.

Elisha was responsible for leading the company through the post-war era that ushered in increased consumer demand for labor-reducing appliances.

Therefore, the company introduced home laundry products, such as the wringer and automatic clothes washers, electric and automatic clothes dryers, and irons to capitalize on the demand.

In 1950, the company changed its name to Whirlpool Corporation as a move to propel brand awareness around the new automatic washer launched under Sears’ Kenmore brand. Elisha had noted the product’s popularity and devised a dual-distribution approach that would allow the company to build its brand name while retaining its partnership with Sears.

Enhancing Competitiveness And Market Share

By the mid-50s, it became evident that in order to increase its market share and to grow the company, Whirlpool needed to diversify its products. Its emphasis on laundry equipment was profitable, but it would not sustain the business for long in the industry, where the company was facing competition from more diversified firms.

Thus, Whirlpool merged with Seeger Refrigerator Company and introduced a refrigerator line. The company also introduced its own air conditioner and cooking range products that were previously being manufactured by Radio Corporation of America (RCA). It took on the name Whirlpool-Seeger Corporation and adopted RCA-Whirlpool as its brand name.

In 1955, the company was also listed on the New York Stock Exchange, contributing a great deal towards its growing popularity.

Key Takeaway 2: Explore Multiples Avenues For Growth

After the war, the company came back with the goal of expanding its business and pursued all possible options to help in its growth journey. Whirlpool did it all, whether it be diversifying through mergers and acquisitions, introducing unique new products into the market, or changing its name to consolidate its brand identity.

The company’s leadership recognized that the business needed to establish itself in the industry if it was to survive in the long run. Hence, even though its washing machine was thriving in the market, it added several new products to its portfolio and moved towards a complete electronic appliances brand.

Riding The Changing Tides

The 1960s saw an increase in consumerism that intensified the industry’s competitive aspect. The company had to try out new strategies during this time to maintain its edge in the market. In 1961, the company celebrated its 50th anniversary and reported $438 million in sales.

Catering To The Customers

The rise in consumerism saw businesses scrambling to put the needs of their customers above everything else. Whirlpool was no exception. The company recognized the significance of manufacturing better quality products and services for ensuring its survival in the market.

As a result, Whirlpool launched a continuing range of the latest products, such as the residential trash compactor - the first completely new major home appliance to hit the market in more than 30 years.

It also introduced new support services such as its toll-free, 24-hour Cool-Line service, through which customers could access information on issues pertaining to installation and repairs.

Going With The Flow

The 1960s also saw the demand for household gadgets and appliances dwindle, causing prices to fall. At the same time, the competition in the industry was also intensifying.

Therefore, the company deemed it necessary to implement certain changes to maintain its competitiveness in the market. It streamlined its production process and focused on decreasing manufacturing costs.

Moreover, it sought to consolidate its brand identity around the name “Whirlpool,” which had gained significant traction over time. In 1966, the company dropped the RCA name from its products, and “Whirlpool” became its flagship brand.

Diversifying Through Acquisitions

The company was not content with just broadening its range of appliances; it was determined to seek out various avenues of growth. Thus, it turned to acquisitions as a means for expansion. In 1966, the company ventured into the consumer electronics market by acquiring Warwick Electronics and its division, the Thomas Organ Company. Warwick Electronics was a major television producer for Sears.

However, the new line of business could not last for long, and Whirlpool decided to exit the television market in 1976. Japan’s Sanyo Electronic Co. bought its television operations; however, Whirlpool retained the Organ business for its electronic technology.

Despite the mixed results of the acquisitions, Whirlpool reported sales worth $1 billion for the first time in company history in 1967.

Moreover, in 1969, Whirlpool acquired a 33% stake in John Inglis Co. Ltd. - a prominent manufacturer and marketer of home appliances - allowing the company to penetrate the Canadian market. The subsidiary remains Whirlpool’s Canadian stronghold to this day.

The Market Takes A Turn For The Worse

The new decade opened on a challenging note - consumerism was rising, the 1973 energy crisis was wreaking havoc, the housing industry was collapsing, and an economic recession was in swing. Such disastrous developments compounded the pressure on the appliance industry to pursue energy-efficient products and enhance the overall efficiency of the production processes.

Consequently, Whirlpool’s dealers and Sears liquidated their inventories, forcing Whirlpool to lay off one-third of its workforce to cope. Sears was still Whirlpool’s largest customer, and its actions had a significant impact on the latter’s operations.

Prospects Start Looking Up Once Again

By 1977, the major disturbances in the market were beginning to smooth over. The upward turn of prospects manifested in the rise of demand for household appliances.

Interestingly, the drivers behind the strong demand were mostly first-time customers from the post-war generation, households looking to replace old devices, and the military post exchanges with whom the company had entered into a buying agreement in 1967.

Whirlpool continued to grow during this period while being guided by its commitment to improving products for residential use. Some of its notable products from the time included the first automatic clothes washer with solid-state electronic controls and a line of microwave ovens.

Key Takeaway 3: Be Prepared For Change

This phase in the company’s history was marked by the drastic changes in market conditions and how they impacted the overall business during the two decades. The reason why Whirlpool was able to survive through this tumultuous business cycle was that it had laid the groundwork to face any situation.

It diversified its operations so that it was not overly dependent on one line of business which would have been extremely risky during such uncertain market conditions. Hence, despite all the challenges of changing markets and trends, Whirlpool continued to thrive.

Whirlpool Reaches New Heights

Despite an uncertain start to the decade, the company underwent remarkable growth during the 1980s that ensured its long-term rise.

Spark Takes The Reins

The 80s began with Platt’s retirement and appointment of Vice-chairman Jack D. Sparks as the new chairman and the CEO.

Spark shifted the company’s focus towards greater goals and brought worthwhile additions to the company through his sales and marketing strategies. These new goals helped the company maintain its edge in the domestic market, especially since the US market was getting more foreign competition.

Spark introduced the five-year plan to address trends in the market and placed the company on a major capital spending program to increase productivity. This change in focus helped the company bring a variety of home appliances under the lineage of Whirlpool Corp. Not just that, but it also introduced consumer durable goods in its product line.

Venturing Into The International Market

Sparks had come into office with an international agenda. He wanted to tap into the global market, for which the company underwent a series of important acquisitions. Whirlpool acquired the KitchenAid division of Hobart Corporation, Mastercraft Industries Corporation, and a cabinet manufacturer, St. Charles Manufacturing Company.

These purchases proved to be incredibly beneficial for Whirlpool in the long run as they helped the company gain international experience and broadened its perspectives. Spark also initiated the Whirlpool Trading company in 1984 to help Whirlpool grow internationally. It even resulted in a joint venture with N.V Philips, two years later, to manufacture and market household appliances overseas. The company focused attention on cabinet manufacturing during this time as well, with stock and custom cabinets being primarily distributed in the Southwestern and Western US.

The Transition To Whitman’s Time

In 1986, the company celebrated its 75th anniversary, with its sales reaching up to $4 billion. Moreover, the company acquired the Kitchen Aid brand - a business unit of Dart & Kraft - in an attempt to expand the company’s brand portfolio and meet a broader segment of consumer needs around styling, endurance, performance, and heritage. In 1987, Whirlpool was listed on the London Stock Exchange.

In 1987, David R. Whitman succeeded Jack Spark to take on the role of President and CEO of the company. He continued the company’s five-year global strategy. He also focused on increasing production and reducing costs by using new technology for appliance production. The company also delved into manufacturing and developing prototypes of appliances for use in U.S. space stations.

A Different Management Approach

Up until 1988, the company was working under a centralized structure, with the decision-making power in the senior management's hands. But in the year 1988, they reorganized the company’s activities into seven separate categories.

The categories were:

• Kitchen Aid
• Whirlpool appliance groups
• Whirlpool International
• Inglis Limited
• Whirlpool Finance Corporation
• and the company’s export group

The reorganization enabled Whirlpool to maximize its profits and reduce its costs to the minimum. This move also helped them optimize efficiency and market responsiveness.

Shortly afterward, Whirlpool tried to acquire Roper Corporation, another major manufacturer and supplier of appliances to Sears, but the attempt failed due to interruption from General Electric (GE). Subsequently, after a long controversial dispute, GE and Whirlpool forged a two-year agreement, in which the former was to supply appliance motors and gas and electric ranges to the latter.

Key Takeaway 4: Stay Open To Options

The 1980s were a time when Whirlpool was open to exploring its options in terms of what strategies it would pursue or how it would maximize its efficiency. The company underwent its first major restructuring in 1988, which showed that it was willing to take a new approach in order to improve its performance. The decade also marked the first time Whirlpool seriously ventured into the international market and established itself as a global business.

Growth Through Globalization

Whirlpool was rapidly expanding and branching its business out to international markets. Its progress in previous decades had firmly established it in the industry as a force to be reckoned with.

The subsequent years saw the company continue its upward climb despite the occasional hurdles along the way.

Reaping The Benefits Of Successful Strategies

Whirlpool had relentlessly pursued an internationalization strategy that had solidified its place as one of the most globally diversified companies in the world. By the early 1990s, the company was steadily expanding and leading the industry as the largest appliance manufacturer in the world. In 1992, Whirlpool’s revenues reached $7 billion.

By the latter half of 1994, its manufacturing facilities spanned across 11 countries while it marketed its products in over 120 nations.

Setting Sight On Greater Heights

Whirlpool recognized the need to branch out the business over potentially profitable regions across the world and consolidate its overseas operations to sustain expansion. Thus, in 1990, it formed “Whirlpool Overseas Corporation” - a subsidiary to conduct marketing and industrial activities beyond North America and Western Europe.

Moreover, the aim of establishing this organization was to conduct market research and enhance the company’s understanding of consumer needs internationally. In 1993, it was divided into three separate regional organizations: Whirlpool Europe, Whirlpool Asia, and Whirlpool Latin America.

By forming these separate organizations, the company could strategically tap into the target markets by addressing local lifestyles and consumer needs.

Whirlpool In Asia

While Whirlpool was enjoying remarkable gains from its success in the European market, it was still looking forward to accelerating growth by tapping into Asia.

Whirlpool Asia’s executive office in Tokyo was responsible for strategic development that led to the company’s rapid growth in the region. In 1994, it had sold 700,000 units in Asia and in 1995, it was expecting to sell 3 million.

The company was confident about sustaining its sales growth in Asia and continued to pursue its expansion strategy.

Whirlpool Enters India

In 1995, following its goal of tapping into profitable markets, Whirlpool made the move to acquire a controlling interest in Kelvinator India Ltd. - India’s largest manufacturers and marketers of refrigerators.

The same year, Whirlpool also acquired majority shares in TVS. In 1996, the company merged both these acquisitions to form Whirlpool India Ltd.

By doing so, the company succeeded in expanding its range of products in the region to include washing machines, refrigerators, microwave ovens, and air conditioners.

Restructuring To Enhance Growth

Although Whirlpool’s overseas operations were excelling, the company was also mindful of the subdued North American appliance market. It decided to tackle the problem by restructuring.

In 1994, it closed some plants in Canada and the U.S., leading to a reduction of 9% in its global workforce. The same year saw Whirlpool’s total revenues climb by more than 8%, and by 1995, profits were at an all-time high.

Ending The Millennium On A Strong Note

The company had experienced another great decade in terms of its overall performance. By 1997, Whirlpool was manufacturing in 13 countries across the globe and boasting a workforce numbering up to 61,370. It continued to expand by adding more products to its line-up and acquiring significant footholds in various regions worldwide.

During this period, the world was growing more aware of the need for technological advancement, and governments welcomed foreign investment coming into their countries - especially China and India.

Whirlpool chose to capitalize on this opportunity to reach out to those markets and establish strong footholds that would ensure the company’s long-term growth. In 1999, Whirlpool reported total revenues worth $10.5 billion - its highest yet. The company was geared to enter the new millennium with bright prospects of sustained growth.

Key Takeaway 5: Research & Planning To Penetrate New Markets

Whirlpool was immensely successful in expanding its business all over the world because it had strategically identified and tapped into essential markets. Its growth was guided by extensive research into local lifestyles and consumer needs which is why it was successful in not only penetrating these markets but maintaining its lead.

The company also focused its overseas expansion on specific regions, which it deemed especially profitable. Whirlpool’s foreign acquisitions were planned out such that they would provide the company with reliable footholds in the target markets.

Becoming The Whirlpool Of Today

Whirlpool entered the 21st Century with a commitment to enhance product innovation and invest in people and communities. The major developments of the new millennium helped the company pursue its goal of becoming the best kitchen and laundry company worldwide.

Investing In Innovation

In the year 2000, Whirlpool’s CEO, Dave Whitman, highlighted the need for investing in employee education and skill development; not only out of ethical responsibility but also for the sake of continuing a healthy growth trajectory.

The same year, he initiated a program to select 75 global employees to teach them innovation methodologies so that when they returned to their home regions, they would help pioneer unique solutions for a global consumer base.

Whitman was guided by his vision of ushering in a new age of innovation, one that would transform every job at Whirlpool.

His approach of pursuing embedded innovation yielded the successful Gladiator® GarageWorks line and resource-efficient Whirlpool® brand Duet® washers and dryers.

Embracing Social Responsibility

The company’s commitment to pursue growth while upholding its social responsibility can be gauged by the following significant developments, among many others:

• In 2002, Whirlpool Latin America launched a social program to teach women from limited-income backgrounds entrepreneurial skills and provide earning opportunities.
• In 2003, it became the world’s first appliance manufacturer to set a global greenhouse gas reduction target.

Weathering The Storm

In 2004, Jeff Fettig took over as chairman and CEO. 

He continued his predecessor’s successful strategy of embedded innovation and investing in energy-efficient products. Fettig was also instrumental in guiding the company through the global financial crisis of 2008. He undertook strategic measures, such as announcing the closure of certain plants to ensure that the company emerged out of the crisis on a firm footing.

Investing In Important Projects

In 2010, Whirlpool announced plans to invest $85 million to build a centralized North American headquarters in Benton Harbor, Michigan. The project marked the company’s commitment to staying true to its roots.

It also invested $30 million to build a new Refrigeration Tech Center, creating a total of 180 new jobs. Moreover, it made a $120 million investment to build a new LEED-certified manufacturing facility in Cleveland, Tennessee. The company made the huge investment to enhance the competitiveness of U.S. manufacturing.

Looking Ahead

In 2011, the company celebrated its 100th anniversary and unveiled an updated corporate logo. It reiterated its commitment to offer innovative solutions to improve life at home. 

The company also committed to the Catalyst CEO Champions For Change Pledge to increase Whirlpool’s female representation in executive and senior-level positions. 

In 2013, Whirlpool continued its global expansion through the strategic acquisition of 51% majority stakes in Hefei Royalstar Sanyo - a joint venture between a Japanese and Chinese firm. The acquisition worth $552 million provided the company with added leverage to establish itself in the Chinese appliance market. By the end of the decade, the company had posted record financial results.

Addressing Present-Day Problems

The onset of the Covid-19 pandemic stimulated the company’s aim for improving life at home as it completely transformed people’s home and work life.

It introduced new health and safety protocols for employees and extended financial support to its communities across the globe. The company even donated medical supplies and appliances to hospitals worldwide. 

Whirlpool also joined the fight against climate change by pleading to achieve its target of net zero emissions by 2030. Moreover, to help mitigate its impact on vulnerable communities, it also committed to building over 250 climate-resilient and energy-efficient houses through Habitat for Humanity.

Key Takeaway 6: Take Care Of Your Own

Whirlpool’s past few decades in business went beyond just maximizing profits; it also emphasized the need to empower and support its people and communities. It upheld the principles of social responsibility with integrity and was rewarded with not only a healthy and supportive work environment but also enhanced productivity and innovation.

The company demonstrated its awareness and commitment to addressing modern-day problems such as the pandemic, climate change, and female representation in companies. Thus, by empowering all its stakeholders, the company is primed for sustainable future growth.

Summary & Strategic Takeaways

After 110 years, Whirlpool has become a corporate entity whose growth and development actually benefits not only its employees and associated communities but the society at large.

The Whirlpool of today is much more than a manufacturer and marketer of household appliances. It is an industry leader in pursuing competitive growth without neglecting social responsibility.

Growth By The Numbers

Innovation is key.

Whirlpool operates within a highly technologically driven industry where innovation is essential for long-term survival. The company has always sought to introduce products developed from the latest technology. The electric washer, the first automatic spinner type washer, and the residential trash compactor are just a few notable examples from Whirlpool’s legacy of innovative product development.

Good Leadership Is At The Heart Of A Successful Business

Whirlpool has been in business for over 110 years now and it has only had 7 chairmen and CEOs. The values that were passed on by Louis Upton have been preserved by his successors. The company’s leadership has been its center of stability and has guided it through extremely harsh and tough times such as the Great Depression, the two World Wars, the global financial crisis of 2008, and finally, the pandemic. The responsibility for the company’s performance is also shared by all its employees across all levels of management. This is why the company has managed to deliver excellence over the years.

Always Put The Customer First

Whirlpool was able to attain such monumental growth because it always emphasized the needs of the customer above anything else. It devised numerous ways of facilitating its customers by providing services such as the Cool-Line. It also ensured that its product development was guided by the latest data on customer needs across various lifestyles and cultures. By doing so, it maintained its competitive edge by offering products that the customers needed.

Prioritize People - Profits Will Follow

Whirlpool never hesitated to invest in its people and communities because it recognized that these very people are the drivers of company profits. In this day and age, social responsibility and ethical practices can provide the business an extra boost as it shows the consumers that the company is not just obsessed with maximizing profits. By investing in people and communities, Whirlpool was able to differentiate itself from the competition and gain an edge in the market.

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