Scribd Logo
Upload

Welcome to Scribd!

  • 137 views

    HRM Heinz

    Uploaded by

    Akshay Tyagi
    Kraft Heinz is a large food and beverage company formed in 2015 by the merger of Kraft and Heinz. The company employs 38,000 people globally and has over 20 brands. Kraft Heinz's HR value chain includes recruitment, performance reviews, compensation and bonuses tied to targets, and employee relations. Initially, the merger led to employee dissatisfaction due to lack of communication and cultural changes, resulting in high attrition. However, the company is now focusing on improved communication, engagement, and examining the employee experience to boost ratings and approval of leadership.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    HRM Heinz

    Uploaded by

    Akshay Tyagi
    137 views14 pages
    Kraft Heinz is a large food and beverage company formed in 2015 by the merger of Kraft and Heinz. The company employs 38,000 people globally and has over 20 brands. Kraft Heinz's HR value chain includes recruitment, performance reviews, compensation and bonuses tied to targets, and employee relations. Initially, the merger led to employee dissatisfaction due to lack of communication and cultural changes, resulting in high attrition. However, the company is now focusing on improved communication, engagement, and examining the employee experience to boost ratings and approval of leadership.

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Kraft Heinz is a large food and beverage company formed in 2015 by the merger of Kraft and Heinz. The company employs 38,000 people globally and has over 20 brands. Kraft Heinz's HR value chain includes recruitment, performance reviews, compensation and bonuses tied to targets, and employee relations. Initially, the merger led to employee dissatisfaction due to lack of communication and cultural changes, resulting in high attrition. However, the company is now focusing on improved communication, engagement, and examining the employee experience to boost ratings and approval of leadership.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    137 views14 pages

    HRM Heinz

    Uploaded by

    Akshay Tyagi
    Kraft Heinz is a large food and beverage company formed in 2015 by the merger of Kraft and Heinz. The company employs 38,000 people globally and has over 20 brands. Kraft Heinz's HR value chain includes recruitment, performance reviews, compensation and bonuses tied to targets, and employee relations. Initially, the merger led to employee dissatisfaction due to lack of communication and cultural changes, resulting in high attrition. However, the company is now focusing on improved communication, engagement, and examining the employee experience to boost ratings and approval of leadership.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 14

    HR Value Chain of Kraft

    Heinz
    Submitted by:
    Akshay Tyagi PGP/05/054
    Ayush Khatri PGP/05/062
    Rahul Sehgal PGP/05/084
    Seewant Kushal PGP/05/092
    Shubham Shrivastava PGP/05/093
    About Kraft Heinz

    ▪ Formed in 2015 by merger of Heinz with Kraft backed by


    Berkshire Hathaway and Brazilian private equity firm 3G.
    ▪ Headquartered in Chicago, USA and employs 38,000
    employees.
    ▪ World’s 5th largest food and beverage company and 3rd
    largest in USA.
    ▪ Has a net income of $1.94 billion in 2019 and has over 20
    global brands like Oscar Mayer, Ore Ida, Jell-O to name a
    few.
    2
    Mission & Vision Of Kraft Heinz

    ▪ Kraft Heinz’s mission statement is “to be the BEST food company


    in the world.”
    ▪ The statement has these 2 points
    a) Be the best
    b) Growing a better world
    ▪ Although Kraft Heinz does not have a published vision statement,
    the operations of the company indicate that it strives to set a
    course in making Kraft Heinz the premier food and Beverage
    Company.
    ▪ Kraft Heinz’s core values comprise “customer first, innovation,
    3
    integrity, ownership, quality.”
    HR Value Chain

    Performan Employee
    ce Relations
    Appraisal
    HR Compensati
    Planning on &
    Reward
    Managemen
    t 4
    HR Planning

    ▪ Recruitment & Selection is done through multiple online


    platforms.
    ▪ During recruitment various new techniques like Pymetrics
    :The Game-Based AI Recruitment Platform is used.
    ▪ Downsizing was done after the merger in which 7 plants were
    shut down to eliminate excess capacity and reduce operational
    redundancies.

    5
    Performance Appraisal
    ▪ Performance appraisal process for both salaried as well as
    hourly employees.
    ▪ For hourly employees, they have a plant wide meeting to
    discuss last year’s performance and roll out goals for next
    year. Bonuses are received according to the performance
    of the plant.
    ▪ For salaried employees, they receive bonuses based on
    plant and company performance and also through PDR
    (Planning, Development & Review).
    6
    Compensation & Reward Management

    ▪ Total Cash Compensation is comprised of yearly Base Pay


    and Bonuses.
    ▪ Bonuses are highly tied to the annual targets.
    ▪ Led to wrongful recording of financial statements in 2016
    and 2017.

    7
    Employee Relations – Problems

    ▪ Ambiguity during the merger led to employee dissatisfaction


    as there was no communication from the higher ups in the
    organization.
    ▪ Cultural Changes were a big concern.
    ▪ No work life balance.
    ▪ Kraft Heinz fell victim to a corporate profit mentality.
    ▪ Led to a high attrition rate of 20%.

    8
    Employee Relations – Problems

    ▪ Had a 2.4 rating on Glassdoor and only 28% of the employees


    approved of the CEO.
    ▪ Was listed on the worst companies to work for in 2018 by USA
    Today.

    9
    Employee Relations – Change Being Done

    ▪ The company feels so strongly about putting an emphasis


    on its people, rather than processes, that it launched a 2019
    global initiative about it. “The goal is to examine 12
    different pillars of the employee experience (onboarding,
    career development, life events, technology, etc.).
    ▪ Now, they have a quarterly performance appraisal cycle as
    part of our Management by Objectives (MBO) program.
    ▪  Kraft Heinz keeps tabs on employee feelings by going
    directly to the source.
    10
    Employee Relations – Change Being Done

    ▪ Constant Communication and Engagement.


    ▪ Company now has improved its Glassdoor rating to 3.2 and
    75% employees approve of the CEO.
    ▪ 55% of people would recommend it to a friend.

    11
    References
    ▪ https://trainingmag.com/trgmag-article/putting-h-back-hr/
    ▪ https://www.cnbc.com/2019/05/07/misconduct-at-kraft-hein
    z-puts-spotlight-on-pressure-to-meet-targets.html
    ▪ https://hbr.org/2019/09/the-missing-ingredient-in-kraft-hein
    zs-restructuring
    ▪ https://reallyright.com/2019/03/29/kraft-heinz-co-is-melting
    -down/
    ▪ https://www.forbes.com/sites/johnkotter/2018/04/19/kraft-h
    einzs-culture-crisis/#6b20ce26250d

    12
    References
    ▪ https://www.usatoday.com/story/money/business/2018/06/1
    5/worst-companies-to-work-for-employee-reviews/3581217
    1/
    ▪ https://fortune.com/longform/hr-technology-ai-hiring-recruit
    ment/
    ▪ https://mission-statement.com/kraft-heinz/
    ▪ https://www.kraftheinzcompany.com/

    13
    Thanks!

    14

    You might also like