ARAB OPEN UNIVERSITY – FACULTY OF BUSINESS STUDIES T205A TMA CASE STUDY - SPRING 2016 Building a better workplace through motivation A Kellogg's case study Introduction People spend a considerable part of their lives at work, so it is not surprising that

ARAB OPEN UNIVERSITY – FACULTY OF BUSINESS STUDIES
T205A TMA CASE STUDY - SPRING 2016
Building a better workplace through motivation
A Kellogg's case study
Introduction
People spend a considerable part of their lives at work, so it is not surprising that they expect to be rewarded and satisfied with the job that they do.
Motivation is concerned with why people do things as well as what drives them to behave in a particular way. Understanding what motivates individuals is important in the workplace. Research suggests that motivated employees are happier at work. They get more satisfaction from their work, are absent less often, tend to be more loyal and work with more enthusiasm. This in turn encourages them to contribute more to the development of an organization.
This case study focuses on how Kellogg's motivates its people. It illustrates how the use of motivational techniques helps to develop the business as a 'great place to work'.
The Kellogg Company is the world’s leading producer of breakfast cereals. Its products are manufactured in 18 countries and sold in more than 180 countries. For more than 100 years, Kellogg's has been a leader in health and nutrition. It has done this by providing consumers with a wide variety of food products.
Within Kellogg's, there is a variety of functions and work roles. These include engineering operatives in the manufacturing section. Others work in finance, marketing, sales, information technology or human resources. Keeping everybody motivated no matter what their role is not easy. Kellogg's was recently placed in the top 100 of the Best Companies to Work For list in The Sunday Times.
Values and motivation

Kellogg's values and culture support its role as a good employer. Encouraging everyone to live by the K-Values throughout the whole business creates a culture of people that have ownership over their own projects and strive for continuous improvement and industry-leading results.
These values influence the behavior of individuals within the workplace, making Kellogg's a positive place to work. Employees are encouraged to speak positively about each other when apart, focusing on their strengths. This involves listening to others and accepting their right to their own views regarding the workplace.
This case study shows how Kellogg's is applying various motivation theories in order to create a 'great place to work' for its employees.
Motivation theories at work

Kellogg's uses monetary rewards to motivate many employees, which includes the opportunity to buy and sell their holiday days. Some tasks are broken down into components or specialist jobs through the division of labor. This especially applies to production processes within large companies like Kellogg's. These rewards can help to increase productivity and profitability. The danger with this is that individuals are simply focused on output to get rewards so quality might suffer as a result of employees rushing to do the job.
At Kellogg's, the management tries to respond to the various needs of individuals. This provides positive effects for each employee and the organization. For example:
Kellogg's offers competitive salaries. This gives people the means to acquire the basic needs for living. The Kellogg's Cornflex flexible benefits programme allows employees to choose those benefits that suit them. This includes childcare vouchers, cash alternatives to company cars and discounted life assurance schemes. These savings and competitive salaries help workers' pay go further and so motivate them to be loyal to the company.
Kellogg's values the safety of all employees. The company is committed to providing a safe and healthy work environment to prevent accidents. Employees are however accountable - that means they have to take responsibility for observing the health and safety rules and practices. Kellogg's also offers employees a range of working patterns. Some may want to work part-time, others may want career breaks or undertake homeworking. This helps employees to choose the best option for a healthy work-life balance.
Kellogg’s operates weekly group 'huddles'. These provide informal opportunities for employees to receive and request information on any part of the business, including sales data and company products. This helps strengthen teams and enhances workers' sense of belonging. Having an open approach to communication keeps everybody focused on the company’s aims helps individuals contribute to the company's K-Values. They include values such as being positive, seeing the best in people and recognizing diversity. Kellogg's positively recognizes and rewards staff achievements.
Kellogg's provides employees with the opportunity to take on challenging and stimulating responsibilities. For example, the business provides the opportunity for individuals to take ownership of projects. This enables them to develop and improve.
Laura Bryant joined Kellogg's straight after university in 2002. She joined the Field Sales team initially. This involved visiting five to ten supermarkets a day to develop relationships at a local level. After two years her hard work was rewarded and she was promoted to Customer Marketing Manager at Head Office. This helped to raise her profile as she wanted to move into marketing. With support from her manager, Laura made the transition from Sales to Marketing as Assistant Brand Manager on Rice Krispies and Frosties. In 2009 she was promoted again to manage the marketing plan for Special K and she is now Brand Manager for Kellogg's Cornflakes.
Kellogg’s management also believes that taking an interest in and caring for employees can have a positive effect on employee motivation and organizational productivity. Therefore, working in teams can best motivate employees. Managers at Kellogg’s communicate and consult with employees and take an interest in their views and wellbeing.
Kellogg's keeps a two-way dialogue with employees through its communication programs. This helps to empower the workforce. For example, its open-plan lobby area with coffee bar accommodates as many as 200 people. It provides an informal venue for briefings and presentations. The WK Kellogg Values Awards program provides special recognition for what employees do and rewards them for how they perform.
‘Here at Kellogg's listening is a central premise of the way we work. We believe that our employees have some of the best ideas and that a successful company is one that listens to the grass roots feedback and acts on it. Any employee can raise an issue or a suggestion via their representative who will raise it at one of their monthly meetings.’ (Sue Platt, HR Director)
Generating ideas
The Kellogg's suggestion box scheme helps to generate ideas and improve productivity. Kellogg's has an initiative called 'Snap, Crackle and Save’ - an employee suggestion scheme to save costs within the supply chain. Hundreds of ideas have been put forward over the last couple of years. One idea suggested that the same thickness of cardboard could be used for packaging in all manufacturing plants in Europe. This saved around £250,000 per year.
Kellogg's also shows its commitment to making its business a great place to work. It provides personal development planning for employees which includes provisions such as study leave as part of staff development. This reinforces staff commitment and their sense of being treated well.
Kellogg’s management is aware that some elements in the workplace could make employees unhappy, such as excessive company bureaucracy or an autocratic working environment. In addition, other aspects can give individuals job satisfaction. These include, for example, the level of responsibility of the job, promotion or recognition for effort and performance. Management needs to minimize the factors that cause unhappiness, and increase the factors that can make employees more satisfied.
To this end, Kellogg's has developed a number of initiatives and programs. These are designed to ensure that Kellogg’s is perceived as a good place to work and a desirable employer of choice. For example, Kellogg's has a 'Fit for Life' program offering employees access to fitness centers, free health checks and annual fitness assessments by healthcare specialists every spring.
It also provides a 'summer hours' program from May to September so if employees have worked a full week's hours by noon on a Friday, they can finish work at that point. This means employees can adjust their working hours to balance their work against family or lifestyle commitments.
Awareness of motivating factors helps Kellogg's to build a business that delivers consistently strong results. Other initiatives within the organization include:
• flextime, home working, part-time working and job sharing
• career breaks, parental leave, time off for dependents and maternity and paternity leave
• On-site gyms or subsidized access to local facilities.
Claire Duckworth works in the Consumer Insight team at Kellogg's. She takes part in Latin American ballroom dancing competitively with her partner. They are ranked 7th in England in the over-35 category. Flexible working at Kellogg's enables her to travel to events and provides her with the opportunity to pursue her hobby at a serious level. This opportunity to adjust her working life to accommodate her personal ambitions makes Claire feel respected and supported.
Motivators within the Kellogg's company reflect the different personal aspirations of staff. The working environment provides the opportunity to move forward and take on responsibilities. There is clear recognition and reward for performance.
For example, the Kellogg's sales team meets every Friday morning to share success stories of the week. Once a month it recognizes individuals that have worked above and beyond the K-Values. Winners receive a range of awards ranging from cash prizes, vouchers or holiday entitlements.

Conclusion

This case study illustrates the range of different motivation measures in practice at Kellogg's. It demonstrates that highly motivated employees can improve efficiency, output and quality for a business.
Motivating staff helps to make them more committed to the workplace. By understanding the effects of different motivation techniques, Kellogg's is able to make work a more exciting and interesting experience for employees whilst creating a more productive, profitable and competitive business.