The Hershey Company

Worldwide Educators

OR/5000

May 7, 2013

The Hershey Company
Introduction
The founder of the Hershey Company was Milton S. Hershey. He was raised in rural central Pennsylvania. Even though he lacked formal education and went nearly bankrupt by the time he was 30 years of age, Milton S. Hershey became one of the wealthiest men in the world. He started Lancaster Caramel Company in 1876, in Philadelphia, hiring about 1400 people, in his chocolate factory. By the time the year 1900 came in the picture Milton S. Hershey made 1 million dollars. This was the name before it was Hershey. Soon the Lancaster Caramel Company was shipping all over the U.S. and Europe. As time progressed on, Mr. Hershey opened a school for orphan boys called the Milton Hershey School; it has since opened its doors to girls as well. In 1918, Hershey transferred the bulk of his considerable wealth, including his ownership in the Hershey Chocolate Company and other enterprises, to the Hershey Trust to be held for the Hershey Industrial School. The Hershey’s Company many products to choose from such as Hershey’s milk chocolate bar, Reese’s peanut butter cups, Kit Kat wafer bars, Hershey’s Kisses, Jolly Ranchers, Ice Breakers, and many more. These products are only, to name a few. Hershey does not only offer sweets to eat also offer job opportunities, or if one would like to be an investor in the company.

Mission Statement Hershey’s considers their mission as an Undisputed Marketplace Leadership. • Top-tier value creation, driven by superior performance across the business system. • Organizational capabilities and passion that compete in the present and build for the future. • Commitment to enabling and encouraging balanced, healthy lives. • Portfolio of brands that: delights consumer across multiple segments, delivers superior growth and profitability to retailers, and is available everywhere. • Ability to transform consumer and customer desires to marketplace wins. (The Hershey Company, 2006)
Organizational Structure Hershey’s organizational structure is divided into three sections, which are the US Commercial Group whose primary responsibility is to continue its work in the US and capitalize on the snack market. Next is the International Commercial Group who is responsible for specific targets within the US and Asia. Last are Global Growth and Innovation Group who is responsible for improving production and sales within the global markets while strategically marketing for short-term and long-term profits but primarily to capitalize on all markets worldwide. (The Hershey Company, 2006)
Decision Making Strategies Hershey’s maintains a high level of ethics and conduct, which protects and enhances the corporation’s image. In the many years they have been in business the company continues to maintain a strong bond with its employees. Every employee is scheduled to take training that improves their work ethics and continued education. In addition to maintaining their employee relationships, Hershey attracts and embraces customers and consumers by providing superior customer service and top quality products that have survived the test of times.

Motivational Strategies Motivation within any organization is a must for Hershey Corporation everyday presents a challenge to motivate its employee and future employee. Maintain a strong "people" orientation and demonstrate care for every employee is Hershey’s corporate philology. With that kind of atmosphere Hershey motivation strategies are as sweet as a box of chocolates. Hershey uses many different motivational tools to stimuli its employee starting with large benefit package consisting of the three major areas of employee interest. Hershey’s stock purchase plan is the number one interest; it is an easy way to buy Hershey stock. Participants can purchase HSY stock at the current market price through payroll deductions, and Hershey pays all fees on payroll purchases and quarterly dividend reinvestments. Contributions are invested monthly by Mellon Investor Services, on a post-tax basis. Participants also have online account access. Minimum payroll deduction is $10 per day, or $20 per month. Maximum annual payroll deduction is $25,000. The second interest is Hershey retirement account allows employees age 21 and older that have completed one year of service are automatically enrolled in the Hershey Retirement Account (HRA). Hershey deposits pay based credits on an annual basis into an interest-earning account for each employee (cash balance account). The amount of deposit is based on salary and years of service. The best part is that the HRA is funded entirely by the Company (employees do not contribute). It maintains the potential growth of the account and can grow over time into something big! Thirdly the 401k is the most attractive because, on the very first day of employment employees can begin investing on their first day of benefit eligibility in several funds professionally managed by American Express. The employees can contribute up to 50% of your pay if you are considered non-highly compensated or 15% of your pay if you are considered highly compensated (pre-tax or post-tax) and it is conveniently done through payroll deduction. This percentage can be changed at any time on the web or over the phone. Hershey's matches 75% of your first 2% contribution and 50% of your next 3% contribution. Hershey is no different from any other company when it comes to the daily pressures that are place on every employee to perform at there peak level for extended period. Where Hershey separated itself from other companies by providing an outlet for relieving stress and promoting good health by having a Hershey Foods Fitness Centers located in Hershey, PA allow employees, spouses, and retirees to improve their fitness levels through exercise and improve their overall lifestyles through health promotion and educational programs. The Fitness Centers house a wide array of fitness equipment for both cardiovascular and strength training workouts. Health education information is made available to all employees on a regular basis, and many programs are offered free of cost to all participants. Feeling relaxed and contented at work helps lower stress level Hershey allow its employee to dress casual because, employees do their best work when they are comfortable that is why everyday is business causal dress, not just Friday. Hershey location for its employee is a short commute because, who wants to spend hours each week stressed-out in bumper-to-bumper traffic? Most employees enjoy a 10-15 minute drive each way to work. Flexible work hours enable employees to arrive at and leave work during a specific window of time, depending on job responsibilities, allowing them to tend to other life priorities. By far the number one stress management tool is “free chocolate.” That is not the half of it. Just check out the candy bowls that seem to be sitting around every corner... they are filled with our products so you can take a sweet escape at work!
Analysis
What is the essence of Hershey’s approach to motivation? Hershey’s approach to motivation begins directly with its employees. Continued education and training have been bonded together to from “Diversity Awareness”. This training demonstrates the importance of being different and why it is important, which is the key to their success. Hershey provides several learning experiences, which allows each employee to become familiar with each others job scope. These are few activities: Inclusion Day, Lunch and Learn, Intranet and online Newsletter. The diversity training is customized and specific to each employee or group of employees. This is what Hershey has to say, “We believe diversity training is a lifelong experience rather than a “one-time fix.” Instead of a “one size fits all” approach, believe that employees at different levels of the organization need different tolls to be successful.” In addition to the lifelong learning experience, Hershey also offers work/life balance programs. These programs include: Flexible Work Hours, Part-time Employment and Job Sharing, Tele-working, Elder Care Referral Program, and Hershey Higher Education Gift Matching Program. (Hershey jobs, 2006)

How is the combination of techniques Hershey’s uses unique in any way? Hershey’s techniques in implementing the importance of lifelong learning are crucial to the success and productivity of the company. They have unique way of offering many programs which is geared to all employees. These programs provide networking within the company and are called “Employee Networks”, which are Sales Diversity Council, Women in Sales, Sales Minority Affinity Group, Corporate Diversity Council, Corporate Women’s Affinity Group, and New Employee Affinity Team. These programs where formed to improve the working relationship of their employees. (Hershey’s jobs, 2006)
Does Hershey’s motivational strategy serve as an attraction for new employees or do they improve employee retention? Hershey’s motivational strategy is an attraction for both new and permanent employees. They offer a wide variety of benefits, investment plans, savings, and they are known throughout the world as a top producer in confectionery chocolates. They have also won several awards, like “1000 Best-Managed Companies” and “#1 Best Place to Work in Information Technology.” Hershey’s has also been apart of everyone’s life in one way or another so who would not want to work for a company known through out World? Hershey’s best practices are included in their core values. These values are respected by all employees and are the key in their success: (1) Openness and candor, (2) Teamwork, (3) Integrity, (4) Personal leadership, (5) Accountability, (6) Passion for wining, (7) Inclusion, and (8) Learning and growing. Within in these eight core values, Hershey’s employees know that hard work and dedication is what makes this company successful and productive in all business aspects. Hershey’s says, “Great people building great brands.” (Hershey jobs, 2006) Hershey’s has proven to all that they have embraced the ever-changing needs of their customers and have jumped on the band wagon of technology, which has awarded them the title of the Nations #1 company in brand names.

References
Hershey’s. (2006) Hershey Foods Corp/Careers. Retrieved on May 1, 2013 from http://www.thehersheycompany.com/about/history.asp
The Hershey Company. (2006) Investor Relations. Retrieved on May 1, 2013 from http://www.thehersheycompany.com/ir/
Hershey’s. (2006) Hershey’s. Retrieved on May 2, 2013 from www.hersheys.com
Hershey’s. (2006). Heshey's Jobs. Retrieved on May 2, 2013 from https://www.hersheysjobs.com/Career/ControlPanel.aspx?ModuleCategoryID=2