Hershey needs a clear aims and objectives that will determine the nature of inputs, the

series of activities to achieve outputs and the realization of organizational goals. Feedback
about the performance of the system and the effects of its operation on the environment
are measured in terms of achieving the aims and objectives.

 Attention must be given to the design of the suitable measure

 The common elements of management-clarification of objectives, planning, organizing,

directing, and control-apply to a greater or lesser extent in all cases.

 Essential financial, legal, human resources and administrative functions must be carried in
the organization.

These common features make possible the application of general principles of management
and organizational behaviour of those people that comprises the organization. While
general principles and prescription s apply in Hershey, differences in the input-conversion-
output process and in the series of activities involved in this process. The nature of inputs,
the throughputs and the form of the output will emphasize characteristic features of a
particular organization. These features highlight alternative forms of structure,
management, methods of operation and behaviour of people employed by or working in
different types of organization

Whatever the type of clarification of Hershey has, the transformation or conversion

activities may themselves be viewed as separate organizational sub-systems with their own
input-conversion-output process interrelated to, and interacting with, the sub-systems.

The interrelationship and interdependence of the different parts of the system raise the
question of the identification of this sub-system. What are the boundaries that distinguish
one sub-system from other sub-systems and from the system as a whole?

In Hershey, these sub-system are identified and the task management to coordinate the
sub-system and to ensure that the activities of the organization as a whole. In practice the
boundaries are drawn at the discretion of the sub-system are identified, therefore, in a
number of ways, although there is a degree of similarity among the alternative models.

However, these sub-systems are identified; it is a task of Hershey management to

coordinate the sub-systems and to ensure that the activities of the organization as a whole
are directed towards the accomplishment of its goals and objectives. Hershey therefore has
five main interrelated sub-systems as a basis for the analysis of work organization.

1. Task- the goals and objectives of Hershey: the nature of inputs and outputs, and the work
activities to be carried out in the transformation or conversion process;
2. Technology- the manner in which the tasks of the organization are carried out and the
nature of work performance : the materials, systems and procedures, and equipment used
in the transformation or conversion process;

3. Structure- patterns of organization, lines of authority, formal relationships and channels of

communication among members; the division of work and coordination of tasks by which
series of activities is carried out;

4. People- the nature of the members undertaking the series of activities: for example their
attitudes, skills and attributes; needs and expectations; interpersonal relations and patterns
of behavior; group functioning and behavior, informal organization and styles of leadership;

5. Management – coordination of task, technology, structure and people, and policies and
procedures for the execution of work: corporate strategy, direction of the activities of the
organization as a whole and its interactions with the external environment.

The study of Hershey as open systems serves to indicate both the common features and the
main distinguishing features between different types of organizations. It provides a useful
framework for the comparative study of organization. The system view of organizations
enables Hershey manager to view their own organization in perspective and to compare it in
meaningful terms with other types of competitive organizations. Managers cannot afford to
take narrow, blinkered view; they need to adopt a broader view and recognize
interrelationships between various activities and the effects that their actions and decisions
have on other activities. The Hershey’s framework of five main interrelated sub-systems is
task, technology, structure. People, and management-provides a useful basis for the
analysis of organizational performance, and effectiveness. Attention should be focused on
the total work organization and the interrelationships between the ranges of variables
which affect organizational performance (Padilla, J, 2010).

The analysis of organizational effectiveness requires an understanding of relationships

within the organization’s structure, the interrelated sub-systems and the nature of its
external environment. Irrespective of the identification of sub-systems, the nature and scale
of the series of activities involved in converting inputs to outputs will differ from one
organization to another in terms of interrelationship between technology, structure,
methods of operation and the nature of environmental influences. Contingency models of
organization highlight Hershey’s interrelationship and provide a further possible means of
differentiation between alternative forms of organization and management (Mann, S, 2003).

3. Ethics and Responsibility

Hershey commitment to social responsibility extends beyond their school to both their
products and supplier relationships. The company is actively involved in the International
Initiative Foundation, designed to eliminate child labor or forced labor such as World Cocoa
Foundation, which supports environmental projects that include nonchemical pest
management practices and which encourage sustainable farming practices to support
 ecosystems in the region. Hershey also closely monitors its supply relationships and
purchases palm oil from suppliers with membership in the Roundtable on Sustainable Oil
(www. hershey.marketonline.com).

Hershey role as an environmental steward is also evident that its plants use recycled water
that is later purified for various landscaping projects. Changes in product packaging have
resulted in lighter materials and less waste during the manufacturing process and Hershey
extensively recycles materials from their different factories in the world. Hershey monitors
greenhouse gas emission from operations and has installed energy efficient lighting in all of
their plants.

With revenue in excess of $8 billion, Hershey continues to produce chocolates and

confectionary products. Hershey has recently expanded its global presence via joint
ventures in China and India.

5. Measurement of HR effectiveness

The ultimate measures of HRM function of Hershey is the contribution it makes in meeting
the objectives of the business and to improved organizational performance. But
achievement in the area of HRM is difficult to measure and it is not easy to establish
satisfactory methods of assessment. There is also a more general problem of assessing
managerial work where the end-product results from the efforts of other people, Patton
(2005). Cost is obviously a consideration but should not be viewed in isolation. Not every
activity in Hershey can be identified clearly as making a contribution to profitability. Hershey
believed that a balance should be maintained between the more easily identified financial
costs of HRM function and the less readily apparent but very important long term benefits
such as morale and job satisfaction of staff as well as their attitudes, behavior and
performance. Over a period of time however, some quantified measure may serve to
provide management with an indication of effectiveness. Hershey includes staffing costs,
turnover, and stability indexes; internal promotions and staff development; errors in work;
levels of absenteeism and sickness; timekeeping; accidents at work; the number of
grievance hearing, dismissals, labor disputes, employment tribunal cases; complaints from
suppliers or customers.

Hershey’s one way to review the performance and potential of staff is through a formal
performance review system. An effective system offers a number of potential benefits to
both individual and the organization but there are number of important questions to be
addressed. Consideration must be given to the design and implementation of the system,
methods of appraisal, and the problem areas. Hershey emphasized that it is particularly
important that a formal system does not detract from manager’s responsibility for reviewing
performance on a day to day basis and that it should be seen as part of Performance
measures strategy.
 According to Slater, 2009, “Recognition that employees from the lifeblood of a company has
highlighted the strategic role that the human resources department should now play.”
Hershey believed that HR professionals have the opportunity to add value to business.
Greater attention is placed on issues such as how well a company executes its business plan,
employee well being, corporate culture and organizational structure. Although, the
customer is still king, Hershey realize that it is their employees who deliver the performance
of value to customers.

Hershey’s sound HRM policies help foster good employment relations. It is necessary to take
account of the institutions and parties involves, and their ideologies and motives. There are
two major and contrasting perspectives of work organizations, and the explanation and
outcomes of conflict-the unitary and the pluralistic perspectives. These contrasting views
influence the nature of employee relationships and the management of human resources.
Good management strategies are important for effective employment relations that are
founded on a combination of legal and behavioral dimension.

6. Conclusion and Recommendation:

Hershey success is based on the essential process of management is that proper attention
be given to the efficient use of resources, in particular human resource? In recent years
there has been increasing attention to a strategic approach to “human resource
management” and also to the idea of human capital. However, it is important to remember
that it is people who are the most important asset of any organization. Effective HRM
requires strategic integration of people management policies and successful
implementation if it is to impact on organizational performance.

Hershey success in the field of Human relationship stems from good HRM policies and
practices which should be based on underlying philosophies of managerial behavior and
employee relations. The range and scope of HRM activities are wide, and a shared
responsibility among top management, line managers, and supervisors and the HR manager.
As an element function, HRM is part of the generality of management and part of the
responsibility of all managers and supervisor. HRM has top operate at a strategic level and
in partnership with line managers.