...One of the critical components of an organization is its performance management system. A performance management system is important to organizations of any size because it is the process that identify and implement ways to increase output in a strategic manner. Highly effective performance management systems not only help organizations grow, they employ systematic and supportive methods that allow all facets of the organization to perform at optimal levels. As companies grow and change, they often find it necessary to redesign and improve practices, policies, and/or procedures that result in the optimal functioning of the organization. One of the organizations that found it necessary to redesign its performance management system is the Hershey Company. Faced with an aging workforce of baby boomers and many new hires of millennial workers (the generation of workers in their twenties), the Hershey Company redesigned its performance management system in order to appeal to its diverse workforce. The redesigned system resulted in two major components. The first component included the company allowing goals to be set and tracked by employees. The second component of the redesigned performance management system included the component that the company was not just driven by outcomes measures, but also whether or not the outcomes were achieved with values aligned to the company. Given the challenges of dealing with organizational change from seasoned employees along with...
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...There are many trends in this chapter that impact Hershey's the most, one of them is an aging workforce. The BLS has projected that from 2008 to 2018, the total U.S. civilian labor force will grow from 154 million to 167 million workers (Noel, 2011). The older generation wants to work, and many say they plan a working retirement. This economy has been troubling at times which forces the baby boomers to stay in the workforce past their retirement times. This trends impacts the baby boomer workers with the new millennial workers for companies.. The increasing use of computers to do routine task has shifted the kinds of skills needed for employees in the U.S. economy (Noel, 2011). Such qualities as physical strength and mastery of a particular piece of machinery are no longer important in many jobs (Noel, 2011). Hershey’s has setup a mentoring program for their closer to retirement workers and their newer workers we described above as millennial workers, this strategy retains company information within the newer employees so the company basically does not lose a step. The trends listed above I believe will impact Hershey's the most. As more and more of the workforce reaches retirement age, some companies have set up mentoring programs between older and younger workers so that knowledge is not lost but passed on (Noel, 2011). Mentoring could affect the Hershey’s culture in a positive way, and through mentoring it will provide a transition of senior workers knowledge and understanding...
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...Assignment 1: Hershey’s Sweet Mission Rose-Marie Waters Dr. Robert Waldo Human Resource Management Foundations – HRM 500 Week 3: April 22 – April 28, 2013 Recommend the redesign of Hershey’s performance management system to appeal to the diverse groups that it employs. Hershey has redesigned its performance management system to appeal to their diverse group of employees, specifically the “millennials”, by implementing a “bottom up” style of performance management. Millennial generation employees are defined by their birthdate. A millennial refers to someone who was born after 1980. Currently, this group comprises one-third of the American workforce and will soon become the majority as they come of age. Millennials have expressed a desire to pursue work that is personally meaningful; they resist corporate hierarchy, are eager for challenge, desire autonomy, and are accustomed to getting work done in a variety of environments. When corporations like Hershey understand what motivates employees, like the millennials, they are better able to set mutual expectations for success. This is what Hershey has embraced with the bottom up performance management system. This bottom up approach allows employees to set their own goals and track progress on projects throughout the year. (Noe 2011, pg. 56) In order for the bottom up system to be effective the employee must understand the company’s goals and the strategy for achieving those goals. Employees must also understand what...
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...Assignment 1: Hershey’s Sweet Mission LaToiya Beidleman Dr. Bobby Barrett HRM 500 January 27, 2013 Assignment 1: Hershey’s Sweet Mission Hershey Chocolate Company is the largest chocolate supplier in North America. Since 1894 its rich history, Hershey has created various products that has provided the company the ability to meet and exceed the desires and needs of stakeholders-consumers, employees and business partners. Hershey’s mission statement has been quite simple and straight forward, “Bringing sweet moments of Hershey happiness to the world every day.”(Noe/Hollenbeck/Gerhart/Wright) This paper will discuss the redesign of Hershey’s performance management system to appeal to the diverse groups, analyze how you would interpret the values that Hershey embraces, the trends that may impact Hershey the most, and what the effects that mentoring could have on integrating values into the Hershey culture. The redesign of Hershey’s performance management system Hershey’s four identified values demonstrate that the organization has a plan of action in place in order to meet and exceed the expectations of the employees. It is imperative for any organization, but more importantly those that are large corporations to have a standard guideline of what employees should expect. Hershey’s new redesign plan is set to appeal towards the younger generation. Although this appears like a great idea, how does this assist in appealing to the more tenured crowd? I would recommend Hershey...
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...Hershey’s Sweet Mission Nekima M. Gilliam Dr. Linda Force HRM 500 November 3, 2012 Introduction The Hershey Chocolate Company is a leading provider of chocolate and other confectionary products. A few of the names of candies they produce are the Hershey Kiss, Almond Joy, Mounds, Peanut Butter Cups, Kit Kat, and other candies. Recommend the redesign of Hershey’s performance management system to appeal to the diverse groups that it employs. Hershey currently employs a diverse group of employees. Hershey’s current management system is effective and has helped in the success of the company’s revenue. The current management system relies on the baby boomers and the younger employees to train or be mentors for new employees. The new employees usually are in the early twenties and are eager to learn the details of their job. Although the current management system is working, the ever changing labor force brings about a large number of individuals whom are willing to work and able to work. Older people want to work as, so does this mean that Hershey will not considering an older person for employment with their company? Older people are willing and able to learn new technology (Noe, Hollenbeck, Gerhart, and Wright 2011). Despite myths to the contrary, worker performance and learning do not suffer as a result of aging (Noe, Hollenbeck, Gerhart, and Wright 2011). Performance management system should be designed to take into consideration what makes a job of...
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...Training with Strategy The Hershey Company, headquartered in Hershey, Pennsylvania is a leading North American manufacturer of chocolate and confectionary grocery goods. Hershey currently sits on the Fortune 500 and operates in over ninety countries. In 2014, Hershey's earnings exceeded 7.4 billion dollars. Although today, Hershey is an international manufacturing powerhouse, back in 1982 their future was not very optimistic; in fact, Hershey was on the verge of being sold. Hershey realized in order to increase their revenue and create a sustainable company, major changes needed to be made. Hershey focused their efforts on analyzing and fixing their distributor marketing strategy (which included its trade funding allocations). This case analyzes Hershey's trade funding strategy as (outlined by their senior leadership) and the steps they took to improve this program. A Proactive Hershey When senior executives at Hershey realized their current trade funding program did not best serve their distributor's needs, they immediately looked for opportunities to improve upon their business relationships, sales, and accountability held with them. By utilizing data from its external customers (including promotional funding allocations and customer satisfaction metrics) and taking internal feedback regarding sales and marketing practices into account, Hershey's senior executives chose to implement a new, proactive strategy designed to overhaul their current, sometimes ineffective sales...
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...Writing Assignment 1 Ashley King Dr. Barrett HRM 500 Management Foundations July 22, 2012 Introduction Working for any organization can be hard, but working for one of America’s favorite candy manufactures with such as long history such as Hershey can be challenging. According to ycharts.com as of 2010 The Hershey Company (HSY) is worth $5.67 billion. With a history that goes back to the late 1800’s it is safe to say that Hershey is doing something right. In the case titled Hershey’s Sweet Mission states that “the company defines its mission in terms of its relationship with all stakeholders.” They go on to list the important groups that help make up the success of their organization and more importantly the case focuses on the employees (Noe & Hollenbeck, 2011 p55).” “Aligned employees should share values (Noe & Hollenbeck, 2011 p55),” the employee’s of any company should want the same things and a good outcome, not only for themselves but for the company as well. Redesign of Performance Management In the case states “We are growing together by sharing knowledge and unwrapping human potential in an environment of mutual respect(Noe & Hollenbeck, 2011 p55).” This statement can be interpreted in different ways. This statement implies that they are growing and learning together, and it also implies how Hershey treats its employee’s in the process. This theory is something that doesn’t really need any revamping or redesigning. The statement implies that...
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...The Hershey Chocolate Company Table of Contents Board of Directors 1 Introduction 2 Report 3 Financial Report Card 9 Annual Report Board of Directors Pamela Arway- Senior Advisor to Chairman and CEO of American Express Robert Cavanaugh- Managing Director of DLJ Real Estate Capital Partners Charles Davis- CEO of Stone Point Capital, LLC James Nevels- Director of Tasty Baking Company Thomas Ridge- President and CEO of Ridge Global, LLC David Shedlarz- Vice President of Pfizer, Inc David West- President and CEO of The Hershey Company Leroy Zimmerman- Senior Counsel of Eckert, Seamans, Cherin, And Mellott, LLC The Hershey Company The Hershey Chocolate Company is one of the leading producers of chocolate and confectionary products. Hershey produces such chocolates as: the Hershey Kiss, Hershey Chocolate Bar, Mounds, Almond Joy, Reese’s Peanut Butter Cups, Kit Kat, and York Peppermint Patty. In this report we will give you the company’s mission, the description, the background and history, highlights of major news events, the SWOTS, their marketing strategy, their commitment to social responsibility, and the financial report card. Business 100 Project Amanda Milgim Ava Winckler Hossai Rahimpur Karen Montoya The Hershey Chocolate Company When you think of Hershey what is the first thing that comes to mind? Chocolate right? Right! Hershey is one of the largest and oldest producers...
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...competitive and so, the Hershey Company needs to continue to strengthen brand loyalty to stay competitive in a growing and changing global market. Hershey’s has increased the value proposition of chocolate and snacking in the minds of consumers by producing a variety of flavors and product choices that are marketed to targeted audiences in targeted segments through specific channels of communication. The company’s strategic focus on aligning marketing strategies with changing consumer preferences has led Hershey’s to expand their integrated marketing communications plan into social media channels and produce innovative new products for the health-conscious consumers. Rebecca Simmons MBA FP-6012 Assessment 5 | The Hershey Company An Integrated Global Marketing Case Study | AbstractThe confectionary industry is becoming intensely competitive and so, the Hershey Company needs to continue to strengthen brand loyalty to stay competitive in a growing and changing global market. Hershey’s has increased the value proposition of chocolate and snacking in the minds of consumers by producing a variety of flavors and product choices that are marketed to targeted audiences in targeted segments through specific channels of communication. The company’s strategic focus on aligning marketing strategies with changing consumer preferences has led Hershey’s to expand their integrated marketing communications plan into social media channels and produce innovative new products for the health-conscious...
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...national differences in the tastes, lifestyles and preferences of various goods and services and the different aspects a company has to take into consideration before one can think of entering into a different market world. Globalization is a way of spreading a company’s production or distribution activities worldwide (Yip G.S 2002). But doing just that is not enough in this ever changing world for tastes and preferences of products and services. Companies also need to globalize their activities in a different sense also like designing, producing and marketing their products and services by tailoring it to suit the needs of the local market. This strategy can be called ‘Multilocal strategy’. Hershey’s follows into the global category as it offers standardized products worldwide. Hershey’s head quarter is in Pennsylvania, their production activities are carried on in Pennsylvania, Mexico and Illinois. Their products are available at all major super markets and through its franchisees worldwide and the company also have exclusive distribution stores and specially designed online stores for its...
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... Goals and Product Description 41 Process Description 42 Life Cycle Stage 43 Place 43 Goals and Market Exposure 43 Channels Used 44 Supply Chain System 45 Promotion 46 Goals 46 Promotional Blend 47 Price 50 Goals 50 Value Proposition and Price Sensitivity 50 Pricing Strategy (Short Term/Long Term) 51 Breakeven Analysis 52 Implementation and Control 53 Timing and Implementation Activities 54 Sales Estimates (Forecast) 54 Forecast/Estimates 56 Scenario Analysis and Discussion 57 Sensitivity Analysis and Discussion 59 Comprehensive Financial Analysis 64 Conclusions 65 Appendix 67 Citations 75 Executive Summary The Hershey Company is known for bringing goodness to the world through its chocolate, sweets, mints and other great-tasting snacks. Our Company has mentioned this statement several...
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...Hershey's Mission Assignment 1 Hershey’s Sweet Mission Jay Jenks Professor Jesse Garcia Human Resource Management HRM 500 25 October 2012 Strayer University Washington DC Recommend the redesign of Hershey’s performance management system to appeal to the diverse groups that it employs. First of all, any performance management system redesign must recognize that all employees are motivated differently by different things, but many can be affected by certain concepts. So it is imperative to know what motivates the majority of your employees. The redesign of Hershey’s performance management system to appeal to the diverse groups that it employs will need to involve management as well as the employees to make the effort successful. I feel that Hershey currently has a very good diversity program. Hershey has redesigned its performance management system appealing to the younger generations who show an eagerness for challenge, and results. Therefore I would employ a system that is in line with Hershey’s core values, and we can start by educating the workforce through training and the utilization of seminars, team huddles, and mentoring sessions and also, by soliciting feedback from the workforce in order to give employees a feeling of inclusion (Hershey Company 2012). The employees should be clear about the organization’s mission and be rewarded for doing what their job description entails. Also, human resource management will train other employees...
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...Comparative Industry Analysis………………………………………….19 Direct Competitor Analysis……………………………….…………19 Market Capitalization……………………………………………….19 Price per Earnings…………………………………………………..20 Revenue Growth…...………………………………………………...20 Competitor Stock Graph Comparison……………………………….20 Profit Margin………………………………………………………..21 Cash Flow to Sales…………………………………………………..22 Investment Analysis…………………………………………………...23-25 DCF Analysis…………………………………………………….23-24 Buy-Hold-Sell Decision……………………………………………...25 Bibliography………………………………………………………………..26 Introduction Introduction Hershey’s Story The Hershey Company began in 1894, just a subsidiary of Milton Hershey’s Lancaster, Pennsylvania caramel company. But it came to pass that Milton Hershey the realized his future in the candy business lay in chocolate, not in caramels. By 1895, Hershey was producing 114 different confectionaries in all sorts of shapes and sizes. At the time, chocolate was touted as a source of quick energy supply for athletes, in addition to being a cure for a...
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...Assignment 1 Hershey’s Sweet Mission Jay Jenks Professor Jesse Garcia Human Resource Management HRM 500 25 October 2012 Strayer University Washington DC Recommend the redesign of Hershey’s performance management system to appeal to the diverse groups that it employs. First of all, any performance management system redesign must recognize that all employees are motivated differently by different things, but many can be affected by certain concepts. So it is imperative to know what motivates the majority of your employees. The redesign of Hershey’s performance management system to appeal to the diverse groups that it employs will need to involve management as well as the employees to make the effort successful. I feel that Hershey currently has a very good diversity program. Hershey has redesigned its performance management system appealing to the younger generations who show an eagerness for challenge, and results. Therefore I would employ a system that is in line with Hershey’s core values, and we can start by educating the workforce through training and the utilization of seminars, team huddles, and mentoring sessions and also, by soliciting feedback from the workforce in order to give employees a feeling of inclusion (Hershey Company 2012). The employees should be clear about the organization’s mission and be rewarded for doing what their job description entails. Also, human resource management will train other employees on the proper etiquette of...
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...The Hershey Company Hershey’s customer base consists of wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, department stores and natural food stores. The company has made significant changes over the past decade to strengthen its relationships with these customers. Primarily, the company has worked on improving its customer relationship management (CRM) which “enables companies to provide excellent real-time customer service through the effective use of individual account information.” (Kotler & Keller, 2009). In 1999 Hershey put in place a $112 million enterprise resource planning (ERP) and CRM system. The new technology was meant to bring the company’s business practices up to date and provide across-the-board automation that would span the process from order-taking to truck-loading. Unfortunately, due to initial problems in getting customer orders into the new system and transmitting the correct details of those orders to warehouse for shipping, Hershey got behind on their delivery and consequently lost over $100 million (Turk & Bligh, 2004). In an effort to repair damaged customer relationships stemming from the serious failures the year before, in 2000 Hershey implemented a new strategy that focused on fulfillment speed and agility. The company understood better than ever its key U.S. customers’ needs: efficient, customer-driven processes...
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