CASE- STUDY (Kelloggs)

Motivation is the term used to describe processes both instinctive (semi-conscious-hunger, sleep, sex etc.)
and rational (conscious- Recognition, achievement and self fulfilment), by which people seek to satisfy the
basic drives, perceived needs and personal goals, which trigger (motivational factors) human behavior.
(Cole, 2000) There are several theories that help us understand how Kellogg's motivate its employees. The
two factor Theory helps us categorize Kellogg's employees taking into consideration both intrinsic and
extrinsic factors. The two-factor theory relies on two distinct, key factors; one being job satisfaction and
the other, job dissatisfaction. Kellogg's employees can be further classified into motivators and hygiene
based on certain characteristics. Motivators' job content, responsibility, are associated with the need for
growth and Maslow's self-actualization. Intrinsic
factors such as recognition, the need for autonomy,
job security, financial rewards, promos and
advancements, the need to find work interesting and
challenging, the need for a sense of satisfaction and
sense of achievement at the workplace, sense of
responsibility, growth and personal repertoire of
knowledge and skills ultimately contribute to self-
actualization. Environmental factors (Extrinsic factors) such as supervision, corporate politics, corporate
policy, salaries and working conditions do not lead to a motivated work force. Hygiene factors such as
these do not cause demotivation but may act as dissatisfiers. When applied to Kellogg's, the two factor
theory is most evident as follows. Corn flex flexible benefits programme allows employees to choose those
benefits that suit them childcare vouchers, cash alternatives to company cars and discounted life
assurance schemes. This helps to empower the workforce a visible hygiene factor. W K Kellogg Values
Awards programme is a clear motivating factor observable in Kelloggs. Frederick Taylor believed that
monetary reward was an important motivating factor. However, theory argues that this is an ineffective
motivating factor as it works better as a hygiene factor. The ways and means by which Kelloggs motivates
its employees can be further analyzed using Theory X and Y. Douglas McGregor's Theory X and Y is an early
theory of motivation that describes Kellogg's style of motivation, describing contrasting sets of
assumptions made by the management about their employees at work. Theory X implies that employees
are lazy, do not wish to take responsibility, have little desire for work and want to be directed, coerced
and controlled. Principal feature being that it Encourages the carrot stick approach. Theory Y implies that
people do not inherently dislike work, exercised creativity, sought responsibility and were cable of self-
direction and self-control when committed to objectives. Encourages the autonomy of self-actualization
at work. (Cole, 2000) In the case of Kellogg's, the WK Kellogg Values Awards programme provides special
recognition for what employees do and rewards them for how they perform. This suggests that, the
company is Theory Y based as it displays an array of traits such as assuming that employees are capable
of self-direction and self-control when committed to objectives.

Wright's studies recommend to link leadership style with high performance and subordinate satisfaction
found little evidence of a single style of leadership. Consequently, no one style seemed to emerge as the
most appropriate in all situations (Wright, 1996). In the case of Kellogg's, one such style of leadership
present is Democratic leadership. Democratic Leadership is Considered to as a median style exhibiting
factors such as maintaining necessary organization performance through balancing the need to get work
whilst maintaining interpersonal relationships at a satisfactory level. (senior & Flemming, 2006) Presence

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of more concentration paired with moderate rather than high performance. Moreover, the ability to act
as a coach, thereby ensuring that each team member reaches their full potential is a key factor evident in
team leadership. (Landrum, N.E, et al., 2000) This is currently one of the most sought after, cutting edge
leadership styles that are clearly evident at Kellogg's. Provisions made for personal development planning,
secondments and study leave as part of staff development energizes staff ensuring their fullest
commitment and continuous improvement. This in turn leads to industry-leading results. In the case of
Laura Bryant, who gained seven-year work experience at Kellogg's (2002- 2009) achieved her career
aspirations; thereby reaching her fullest potential, with necessary support, coaching and overall direction
from her manager, who displays typical democratic behavioral style of leadership. This style of leadership
exercises non-dictatorial & decentralized power, Power split between leader & staff and a high level of
interaction between staff & leaders as seen at Kellogg's encouraged two-way dialogue between leaders
and employees through its communication programs, it's open-plan lobby area with coffee bar, favoring
an informal setting for both briefings and presentations. Given the style in which Kellogg's functions, it is
clear that a democratic style of leadership is most suited to the organization.

A motivated work force is a group of employees, who in the presence of stimuli, ensure cooperation and
dedication to the work place, through manipulation of human behavior. This aims to harmonize
individuals' goals with those of the organization. This process is carried out by the management, by finding
out about employees needs and striving to meet them by means of fair pay, job enrichment programs etc.
Thus, creating a motivated workforce willing to associate themselves and their competence with the goals
of the organization. (Cole, 2000) When applied to Kelloggs', the importance of having a motivated
workforce is to make work a more exciting and interesting experience for employees whilst creating a
more productive, profitable and competitive business. It is believed that a motivated workforce is happier
at work, has more satisfaction, is absent less often and is more loyal and works with more enthusiasm,
thus contributing more to the development of an organization. Kellogg's being placed in the top 100 of
the Best Companies to Work For list in The Sunday Times can be directly linked with the presence of a
motivated workforce. The Kellogg's suggestion box scheme generates innovative ideas and in turn
improves productivity. The initiative, 'Snap, Crackle and Save' acts as contributory factor that reduces
production cost and thus increases sales. This is a clear instance that adds to Kellogg's efficiency and
effectiveness, output and quality of business. Furthermore, living by K-Values and creating a culture of
people that have ownership over their own projects and strive for continuous improvement made visible
at Kellogg's produces industry- leading results: Kellogg's has attained recognition as the world's leading
producer of breakfast cereals. Management at Kellogg's' believes that having a positive mindset leads up
to one's high self-esteem, driving him/her to achieve one's goals and career aspirations. This keeps one
focused and thereby directly affects the company's level of productivity and efficiency. Kellogg's creates
a culture of people who are encouraged to speak positively about each other when apart, focusing on
their strengths, having a positive effect on each other and thus the organization as a whole. In conclusion,
the importance of having a motivated workforce can be best described as made evident above, to create
a more productive, profitable and competitive business, whilst lowering training and recruitment costs
via a motivated workforce.

This includes satisfying both instinctive/semiconscious drives (hunger, Sleep, sex etc) and
rational/conscious, needs and aspirations (e.g.; recognition) Research has identified and produced varied
personality types based on behaviors patterns (Cole, 2000) Differences in attitudes are seen to be closely
associated with the employee's level of intelligence and personality traits. Values are the lasting benefits

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shared by people in an organization, a generalized way of behavior seen as preferable to alternate ways.
They are closely associated with personality characters such as conscientiousness, intelligence, childhood
and subsequent learning, life experiences and the influence of social groups. Values are said to be more
deep-seated than one's attitudes and opinions. (Cole, 2000) The term 'Attitude' best described as a
predisposition used to make certain views in specified instances related to people or scenarios. They
contribute to the development of personal opinions and at times prejudices and in certain instances may
contribute positively in terms of an employee's sense of judgement. (Cole, 2000) There are three principal
factors used to distinguish an individual: Physical factor (gender, age), Abilities (Intellectual, Physical and
Social) and Personality (Temperament) (Cole, 2000) Myer's and Brigg's Type Indicator (MBTI) is one such
measure of understanding individuals at work. MBTI is primarily built on four polar dimensions. The
resulting skeleton enables a total of sixteen varied types, each arranged on these four polar dimensions.
These concepts can be best described as follows. In the case of Kellogg's, Abraham Maslow's Hierarchy of
Needs can be best identified as follows Physiological needs Apart from basic needs for living as evident at
Kellogg's competitive salaries Corn flex flexible benefits programme allows employees to choose benefits
that suit each employee best. Among these benefits are childcare vouchers, cash alternatives to company
cars and Job security, Financial rewards, promos and prospect. Safety needs Kellogg's provides a healthy
work environment that prevents accidents. It is a company that takes responsibility for observing the
health and safety rules ensuring employee safety. Job security allowing part-time practice, career breaks
or varying on each employee's need the option of work from home. Social needs Inculcating the feeling
of belonging via weekly group 'huddles' where provision is made for informal Providing opportunities for
employees to receive and request information on any part of the business, including sales data open
approach to communication. Practice of positivity and seeing the best in people being widely encouraged.
Recognition of diverse staff achievements. Self Esteem stimulating responsibilities ownership of project
Need for more autonomy (power to make decisions about tasks to be achieved. Self-Actualization This is
the need to reach one's full potential, which is made evident in the case of Laura Bryant who achieved her
career aspirations; thereby reaching her fullest potential.

QUESTIONS

Q1. How does Kellogg's motivate its employees? Explain using motivational theories with examples?

Q2. What is the most suitable leadership style for Kellogg's? Explain relevant leadership style using
examples. Given the classification of leadership style, it is possible that there are differences in the effects
of using one style rather than another?

Q3. Discuss the importance of having a motivated workforce. Provide examples from the case study.

Q4. Using the understanding of individual at work, briefly describe the personality traits suitable for
employees working in Kellogg's. Processes by which people seek to satisfy their basic drives,
predispositions and behavior perceived needs, attitudes and personal goals which trigger human behavior
can be best described as Personality?