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Kraft Heinz Company Motivation Case Study
Organization's Summary
The Kraft Heinz Company, popularly known as Kraft Heinz, is a globally trusted producer of high-quality and nutritious foods such as pickles, ketchup, and vinegar. The company was formed in 2015 by a merger between Kraft Foods and Heinz (Kraft Heinz, 2022). As a result, it is co-headquartered in Pittsburgh and Chicago. The merger has made the company the fifth-largest food and beverage company worldwide. It is also ranked the third largest company in the United States. At the end of the 2021 fiscal year, the company recorded that it operates 79 processing and manufacturing facilities. It has approximately 5,550 packaging and ingredient suppliers (Kraft Heinz, 2022). Due to the increase in productivity, Kraft Heinz contracted about 210 external manufacturers to ensure they met the increasing demand for their products. The company also has a diverse workforce, with approximately 36,000 employees working in various parts of the world (Kraft Heinz, 2022).
Kraft Heinz challenges.
Even though the Kraft Heinz Company is a success, there needs to be more employee motivation. Firstly, it has the lowest employee satisfaction rate compared to other companies in the United States (Leah, 2019). The employees complain that there is prejudice when it comes to payment. Some claim they are assigned more work than their co-workers, who are compensated with high wages. Secondly, the organization's work environment is also uncomfortable for its employees. The reason is that Kraft Heinz focuses on cost saving. Thus they do not invest in improving the offices or purchasing new technologies, causing employees to lack motivation. Thirdly the company needs better leadership, and people must work as a team. The management only makes orders to the employees, but they need to listen to their challenges. Lastly, the Kraft Heinz Company is also short-staffed; hence, people work long hours, including weekends. As a result, the employees only have time to perform other life duties apart from work.
Potential Rationale
However, the lack of employee motivation in Kraft Heinz Company can be justified. After the two companies, Kraft Food Group and Heinz, merged in 2015, integrating the two companies became a significant challenge because of the difference in organizational culture (Raath, 2018). The leadership created after merging the companies focused more on cost-cutting than investments. When a company focuses on cost-cutting, there is no growth, as investments will not be made. It means that the employees can be laid off at any time when the business is underperforming, and resources will not be channeled toward completing the work environment comfortably. Therefore, merging the two organizations resulted in a lack of employee...…organization are good, employees become more loyal. Third, Kraft Heinz can reward its employees. The employees are complaining that they are subjected to working for long hours. If the organization can reward them by giving them bonuses for their efforts, they will likely do a good job. Fourth, Kraft Heinz can offer its employees flexible schedules. The employees should be allowed to work for specific hours and days. When the work schedules are flexible, employees will be motivated to work because they will have time to do other activities in life. Lastly, Kraft Heinz Company should ask its employees what they want. Instead of guessing what the employees might wish to do, the management should hold a meeting with them and ask them what they want. Therefore, Kraft Heinz can apply these solutions to implement change in the company.
Strategies to improve motivation.
Kraft Heinz Company can also improve motivation using two strategies: happiness and reward (LMA Staff, 2022). Happiness can be created by ensuring employees' needs are met and continuous improvement is made in the organization. Employee happiness comes from job satisfaction. Hence, the managers should determine if the employees are satisfied and, if not, find out the reasons causing job dissatisfaction. The reward strategy entails giving employees incentives or implementing reward programs in the organization. The strategy will improve…
References.
Kian, T. S., Yusoff, W. F. W., & Rajah, S. (2014). Job satisfaction and motivation: What are the differences among these two? European Journal of Business and Social Sciences, 3(2), 94-102.
Kraft Heinz. (2022). About Kraft Heinz. https://www.kraftheinzcompany.com/esg/about-company.html#:~:text=Kraft%20Heinz%20is%20co%2Dheadquartered,36%2C000%20employees%20around%20the%20world.
Leah, M. (2019). Kraft Heinz Failure and The Lessons of Cost Cutting. OMEGA ADVISORS https://omegazadvisors.com/2019/04/08/kraft-heinz-failure/
LMA staff. (2022). Motivate and Dominate – 5 Motivation Strategies to increase productivity. LMA https://leadershipmanagement.com.au/motivate-and-dominate-5-motivation-strategies-to-increase-productivity/
Raath, R. (2018). Kraft Heinz’s Culture Crisis. Forbes. https://www.forbes.com/sites/johnkotter/2018/04/19/kraft-heinzs-culture-crisis/
Square Staff (2020). 10 Scientifically Proven Ways to Motivate Employees. SQUARE https://squareup.com/gb/en/townsquare/how-to-motivate-your-employees
Vaughan, T. (2020). Top 3 Motivation Theories in Management. POPPULO https://www.poppulo.com/blog/theories-of-work-motivation#:~:text=So%20what%20are%20the%20main,Theory%2C%20and%20Herzberg's%20Motivation%20Theory.
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