Motivation Case Study Kraft Heinz Company

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 motivation because of organizational culture changes.

Content Theories and Process Theories.

Content theories and process theories of motivation can be applied to determine practical solutions for the Kraft Heinz Company. The former theories focus on people's wants and need as the basis of their motivation, while the latter focuses on behavioral and psychological processes that people follow (Kian, Yusoff, & Rajah, 2014). One of the theories for determining the solutions is Maslow's Hierarchy of needs. The theory comprises a five-tier model: self-actualization, esteem, love and belonging, safety needs, and psychological needs. According to Maslow, these needs create international pressure among employees, thus influencing their behavior. Hence, when determining the solution for Kraft Heinz Company, the human resource should ensure that the psychological needs and safety needs which are the lowest in the hierarchy, have been met before upscaling to other needs. When the basic needs are met, employees are motivated. Another theory is Herzberg's Two Factors theory which focuses on job satisfaction and job dissatisfaction as the factors that impact employee motivation. Adam's Equity Theory states that organizations should strike a fair balance between employee input and output. For instance, an employee's skill level or hard work should be compensated with recognition, salary, and benefits. These three theories can be applied when determining the best solutions for Kraft Heinz Company.

Theories that can be applied to improve the situation.

To improve the situation at Kraft Heinz, the organization should apply Herzberg's Motivation Theory. The theory states that people have two categories of needs, namely motivators and hygiene (Vaughan, 2020). The former are factors that make people work harder, such as promotions, while the latter is related to a person's work environment. When this theory is applied to Kraft Heinz Company, the management can ensure that the work environment is comfortable by making the necessary investments, such as improving the condition of the offices. When the employees are working in a friendly environment, they get the required job satisfaction. Hence they become motivated. Another theory that Kraft Heinz Company can apply is Adam's Equity Theory. The theory reinforces the need to reward the employee input with output. The organization should use the theory to ensure no prejudice when rewarding the employees. The workers should be awarded based on their information to increase equality. Lastly, Kraft Heinz should apply Maslow's Hierarchy of Needs Theory to improve the situation. When the basic needs of employees are met, their behavior is likely to change. The theory will enable them to strengthen their relationship with employees and assure them of job security and better wages to acquire basic needs. As a result, the employees will be motivated, leading to an increase in productivity.

Solutions to lack of employee motivation.

Numerous solutions can be implemented to improve employee motivation in an organization. First, Kraft Heinz can make their organization a pleasant work area (Square Staff, 2020). It can invest in updating its work equipment and creating modern offices by purchasing interesting furniture pieces for offices. When the work environment is pleasant, employees enjoy doing their work. Second, Kraft Heinz management should be supportive. The managers should be respectfully honest and communicate clearly with the employees. When the leaders within an 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.