Disney Corporation and its approach Essay Paper

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Disney Corporation and its approach to motivation. The Walt Disney Corporation was founded in 1923 as Walt Disney Studios. They produced animated and live action films at the company, and grew after the stunning success of Snow White and the Seven Dwarves in 1939. Today, Disney has branched out into theme parks, merchandise, film studios, and television networks. They are a huge, worldwide corporation that offers a wide variety of goods and services, and they have a long history of business success.

Their finances are extremely healthy at the Disney Corporation. Their 2009 earnings, (all earnings are in millions), were $36,149, 2008 were $37,843, 2007 were $35,510, 2006 were $33,747, and 2005 were $31, 374 (Selected Financial Data, 2010, p. 28). They rose in every year except 2009, even rising in 2008 when the first affects of the current recession took effect. It is the 60th largest company in the top 500 rankings, and it is well diversified in many different media areas. Disney employs hundreds of thousands of people in its many divisions, and for many, it is an extremely rewarding and positive experience.

One of the motivational items Disney has over its employees is the Disney name. Just about everyone knows about the “Magic Kingdom” the characters, the rides, the excitement, and the enjoyment. Working in one of Disney’s theme parks captures all those things. In fact, theme park workers are known as “cast members,” and potential employees are referred to as “Disney employment clients” (Scott, 2005, p. 6). They have a complex employment system because they manage so many operations with very different job duties, from film production to entertainment, creative processes, media and journalism, and even sports. Those employees who work in the parks represent the original Disney core values of employment. They follow strict guidelines as to how they interact with guests and they must meet high personal standards. A news analyst writes, “The system is old and paternalistic, lacking modern employee involvement facilities, and depending on substantial pay differentials for length of service and management selected career development” (Scott, 2005, p. 13). A majority of the park cast members are part-time workers, and there is a great interest in working for Disney. For many cast members, it is their “dream job,” so working there is motivational in itself. Disney’s corporate Code of Business Standards stresses that the guests come first in the Disney equation. They note, “It is the responsibility of all Cast Members and employees who come in contact with our guests and customers to be courteous, to be knowledgeable about our products and services, and to help our guests and customers enjoy the highest quality experience we can provide” (Code of Business, 2010). The Code also has provisions regarding the ethical treatment of all the employees, diversity, and teamwork and communications.

Motivation for the employees is generally in the form of benefits and Disney “magic.” Full-time employees can get health benefits, educational reimbursements, free park passes, product discounts, and service awards. They can participate in a variety of programs from credit unions to service awards, contests, and other programs. There are employee stores in many locations, and childcare facilities in California and Orlando. Because of the allure of Disney, some experts call this capturing the “heart” of the employee. They buy in to the company’s belief system and represent it totally, because the entire corporate ideals mesh with their own.

Another motivational technique is an extensive training environment for all employees. They offer an Executive Development Program called “Disney Dimensions,” and a program called “Disney Way” that introduces the many diversified companies to management and above, and it offers training in professional and management development. Employees also participate in programs on ethics, integrity, and diversity. Most inspirational is the e-learning program, that will allow employees anywhere in the world to continue their education online.

Motivation at Disney is mostly about the job the cast members are doing and how they interact with the guests. As the news analyst wrote, while Disney is trendsetting in many areas, in their employment practices, they are rather outdated. For example, employees follow strict guidelines for how they interact with guests, and they are not allowed to deviate from these rules. In the best corporations, motivation includes empowerment for the employees to make their own informed decisions to deal with situations effectively. Disney’s policies, at least for cast members, are far more restrictive, and that can be damaging at best. It seems that the Disney “magic” is also what attracts many employees and keeps them there. Disney is still a magical world, whether it is in the parks or its many divisions, and that has to attract a wide variety of employees.

The best practice Disney has going for it is its brand name, universal recognition, and the desire of many people to work there. Because of this, they do not have to engage in as many motivational activities, at least lower on the employment ladder. Compensation, stock options, and management contracts are motivational at the higher levels in the company, and then there is the prestige of working under the Disney umbrella. For the seasonal and part-time workers, it seems about all the motivation they get are some rewards, recognition, and pay. To retain a more qualified workforce, especially in the parks, Disney should develop more motivational programs for their employees, and pass on at least some benefits to the part-time employees. Motivational techniques such as empowerment and more freedom would help, as well. The Disney model may have worked in 1955 with Disneyland opened, but today, new motivational techniques would bring in a higher quality workforce that could give Disney a much-needed facelift.

References

Editors. (2010). Selected financial data. Retrieved 13 March 2010 from the Disney Corporation Web site: http://amedia.disney.go.com/investorrelations/annual_reports/WDC-10kwrap-2009.pdf.

Editors. (2010). Standards of business conduct. Retrieved 13 March 2010 from the Disney Corporation Web site: http://corporate.disney.go.com/corporate/conduct_standards2.html.

Scott, R. (2005). Disney corporation report. Retrieved 13 March 2010 from the Docstoc.com Web site: http://www.docstoc.com/docs/893995/Disney-and-News-Corporation-Report.

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