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Kelloggs company introduction
Monetary rewards in the workplace
Kelloggs company introduction
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As any large corporation Kellogg has a variety of work functions and a large number of employees. Some of these jobs include engineering, marketing, sales, human resources, information technology, finance, and many other jobs. Kellogg is the world’s largest breakfast cereal company, producing cereal in 18 countries and selling to over 180 countries. In order to have a company of this quality to succeed for over 100 years there had to be values to keep the company on top. Kellogg mission is to provide a great place to work and they go to great lengths to provide this service. These values incorporated by Kellogg was used to influence the employee’s behavior on the job making it a positive to place to work. To keep up morale employees is encouraged …show more content…
Taylor’s theory shows that monetary rewards can increase productivity. Kellogg uses Taylor’s theory by motivating their employees with cash alternatives such as giving them the opportunity to buy and sell their holiday days. Another aspect of Kellogg as taken from Taylor’s theory is that breaks down jobs into specialist tasks throughout the company. Although using monetary gain as a motivational tool is very useful and productive it is not without its problems. If employees focus mainly on the possible monetary gain or awards then this may cause them to rush through their work resulting in poor quality. Kellogg is a company that’s known for encouraging creativity and use of imagination, using Taylor’s theory would not apply to this. Taylor 's view of monetary reward for quality output is not appropriate for the motivation when it comes to encouraging creativity (Business Case Studies, …show more content…
Hygiene factors are referred to as dissatisfiers and Herzberg’s motivators are called satisfiers. The hygiene factors are those things that make employees unhappy and the motivators are the things that make them happy. In Herzberg’s theory, it is believed that employers need to minimize hygiene factors and maximize motivators. Kellogg does an outstanding job applying this theory. Kellogg offers access to fitness centers, free employee health checks and fitness assessment done by professional healthcare specialist. For those that need better or flexible hours Kellogg provides several alternatives of work: Part-time employment, job sharing, career breaks, working from home, and other alternatives. To show how dedicated Kellogg are to their employees, Claire Duckworth, an employee of Kellogg, have benefited from their use of Herzberg’s theory. Claire competes in Latin American ballroom dancing, working for Kellogg enables her with flexible hours so that she can travel to different dance competitions. Claire is one of many successful and motivated employees of Kellogg (Business Case Studies,
The early days of Uris Hall’s dormitory kitchen were characterized by excellent food and a content, tight-knit staff. The employees’ feelings of satisfaction and utmost commitment to their jobs are best explained using Herzberg’s Motivator-Hygiene Model. This motivation theory relies on the assumption that satisfaction and dissatisfaction in the workplace are independent of each other, and a different set of factors is responsible for causing each emotion. One motivating factor is the employees’ sense of achievement in their work. The case stresses that the eleven women who worked in the kitchen felt a consistent sense of pride in their labor; they went to great lengths to ensure superior quality
John Harvey Kellogg wanted to cure “Americanitis”, which was the stomachache caused by the typical American breakfast. This breakfast consisted of sausage, fried ham, beefsteak, bacon, with whiskey and salt added on top. He decided to build a tiny health center that helped American improve their heath. In that center, he provided tips for healthy eating, and exercises. He did not allow fats, salt, or sugar in his clinic. In 1894, he took a trip to Denver, where he met an entrepreneur who invented a cereal made of shredded wheat. This inspired Kellogg to take this idea back home, and share with his brother, Will. Kellogg and his brother began to experiment, and created many cereals. They then met C.W. Post, and decided to collaborate and were eventually called themselves The Big Three. They invented 108 different brands of cereals. In the 1940s, they began adding a candy coating to the cereal. The Big Three controlled about 85% of the cereal market. The public’s enthusiasm for cereal grew drastically because women, who had children, had more time in the morning. Although convenience was the key to starting the day, the Big Three could not control the breakfast table without being finessed.
Taylorism is a system that was designed in the late 19th century, not only to maximise managerial control, but to also expand the levels of efficiency throughout workplaces. With this being said, productivity levels increased and fair wage distribution was the main result. However, with other, more recent theories and systems, such as Maslow and Herzburg’s theories, these helped to focus on the satisfaction and motivation of the workers rather than the concern of managerial control and empowerment. Fredrick W. Taylor ended up developing 4 main principles to help increase the work efficiency and productivity in workplaces; these will be discussed later on. Other theories relating to this include, Fayol, Follett, Management Science Theory as well as Organisational-Environmental Theory. All theories listed have an influence on the way businesses work effectively and put their skills to action. This essay will highlight how Taylorism was designed to maximise managerial control and increase productivity, furthermore, showing how more recent theories were developed to focus on empowering employees and to extend the use of organisational resources.
Kellogg’s 1997 current ratio and acid test ratio when compared to 1996 figures indicates a positive trend considering liquidity. When compared to their peers Kellogg’s is not as liquid. The change that effected current liabilities the most was a decrease in current maturities of long-term debt of $290,000,000. Notes payable also decreased in 1997 to $368,600,000 from $652,600,000 in 1996. The increase in net working capital is also due mainly to reductions in current maturities of long-term debt as well as notes payable. Kellogg’s net working capital which is negative, when compared to peers illustrates that they are very illiquid.
Based on research so far in this essay, it seems that the whole reason behind Frederick Taylor’s theory is that he tends to aim for making the most of his employees, to work to their highest standards for a successful company. When we look at the Ryanair case study on Management, D. Boddy pg 23 we can see that one of the key points is that the staff must turn an aircraft round between the flights in a matter of 25 minutes, which has a positive effect on increasing revenue. However, this leaves the employees under pressure, but this also tells us that the Ryanair organisation makes the most out of their employees, just like Frederick Taylor’s theory. Getting these tasks completed by the employees is all in the manager’s responsibility, Ryanair regulates their staff so that the managers are held responsible for providing the strategies for the employees as mentioned in the case study on Management, D. Boddy pg 23.
The K Values™ that are practiced company wide from high management, to factory labor workers, are the manual for Kellogg’s business practices. These core values include integrity, accountability, passion, humility, simplicity, and results. The first value, integrity, refers to a strong commitment to ethics, having respect for diversity, and speaking positively of coworkers even when they are not around. Accountability puts an end to people diverting blame. If people are accountable for their actions, results become the primary focus. Passion is one of the values, and is practiced by employees having pride in their brand, as well as passion to continually improve and innovate. Humility is a very important value in that it stresses the importance of admitting to mist...
The purpose of this project is to show how financially stable the Kraft Foods Group is and demonstrates what its strengths and weaknesses are. The reader can expect to find out what Kraft Food Group is and about their financial history for the last five years. This business participates in the consumer packaged food and beverage industry. The markets that Kraft Food Group sell to are the United States and Canada. Some brands that are included in this company are Kraft, Maxwell House, Oscar Mayer, Planers, Kool-Aid, Velveeta, Capri Sun, and Philadelphia to name just a few. This company was started in 1903 by James Lewis Kraft. Mr. Kraft used a wagon and horse and started selling cheese to businesses in Chicago, Illinois. In 1909,
A number of motivational theories explain how rewards affect the behavior of individuals and teams. Performance related pay can have a motivational effect. Employees are motivated to increase prod...
Success of the plan In Kraft’s Food Corporation the planning analyst and the other business departments work together in close communication. This aids in the development of a system that allows business activities to align with the corporate goals and targets. The company is also building its performance around successful people by assuring that the plan is tied with the system that involves the use of practically tested strategies. Shared decisions of all the departments including finance and production departments help adding value to the business by improving its competitive place in the market.
...r investigate what sort of rewards or fringes would their employee’s desire compared to the old method of monetary incentives for the beneficial for the company”.
As with any theory, the motivator-hygiene theory has its share of criticisms. Among them is the lack of consideration for individual differences. Herzberg’s theory only takes into account internal organizational factors and does not consider personal attitudes and beliefs of one’s work. Moreover, the two-factor theory assumes that high job satisfaction equates to performance at work. This, however, does not hold true in many situations.(insert example) A highly satisfied, content, and happy worker is not necessarily the hardest worker in an organization.
Of the numerous speculations of work motivation, Herzberg's (1998) motivator hygiene theory has been a standout amongst the most persuasive in late decades. Essentially, the hypothesis isolates propelling variables into two classifications: Motivator factors, which have a remark with the work itself, and Hygiene factors, which have a remark with the encompassing
Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.
Motivation is an important function in organizations to motivate their employees for their ability to perform well, improving their skills, increasing productivity, job satisfaction and employee extension. Employees also are not a machines that we could just program their task in their brain and they will do it automatically, they require motivation to actually do their job properly. And so, after discussing the process models of the Maslow’s “Hierarchy of needs”, Douglas McGregor theory X and Y, and also the Herzberg’s “two factor motivation hygiene theory.” understanding the ways of motivating people, the human nature, and the substance of nature. I believe that the true motivation can only come from within and also managers can actually motivate all of their employees.
The fast food restaurant Burger King uses Scientific Management by following a ‘one best way’ method of doing tasks, implemented by Taylor as an advanced form of standardised production. This includes scientifically hiring, training and developing each employee, encouraging a ‘work-for-reward’ based mind-set, and dividing workload between managers and workers fairly with regards to specific roles. This provides a stable working environment where workers work harder under better working conditions. Burger King shows evidence of a modern organisations that can reflect the scientific management principles; as Burger King consists of a system that offers rewards to employees for meeting the objective goals. Taylor stated that if workers are given no incentives despite putting in more effort, workers will be discouraged to work. Burger King uses a competitive wage and promotion programme where hard work is recognised and rewarded. Regular monitoring of performance and pushing for improvement avoids ‘under working’. Therefore, creating supervisors and leaders ensure discipline and makes a business perform well. The challenges that encouraged Taylor’s time and motion studies is still present within organisations today. However, management has developed new ways of encouraging output. In today’s business organisations employers are more concerned with ‘performance’ rather than