Organizational Behavior Module 1 – Written Assignment
OB in Action Case Study
The case study about Whole Foods Markets discusses their core principles, as explained by their Co-founder and Co-CEO, John Mackey. He also explains how capitalism flourished and the basic principles that helped it do so, such as property rights. People have the ability to trade their property with whomever they want. Another principle of capitalism is the rule of law; laws and regulations should be well understood so that you can factor them into your business decisions.
Businesses should also be conscious of their higher purpose and not just worried about maximizing profits and shareholder value. The second core principle is to recognize the stakeholder model, where customers, employees, investors, suppliers, larger communities and the environment are all interdependent. Operating a business in a way that is not a zero-sum game benefits everyone involved.
The third principle focuses on conscious leadership. Leaders should identify their accomplishments by those of the organization they serve and its purpose.
The fourth and final principle of Whole Foods ties in with all their other principles. Conscious leadership helps create conscious employees who, in turn, help the organization fulfill its higher purpose. John Mackey, the company’s co-founder, explains that Whole Foods’ core principles stem from his belief that business enterprises are like any other community and can aspire to the highest values that inspire humans. He also states that Whole Foods’ highest purpose is a historic one that animates him and the company: to try to change and improve our world.
John Mackey is discussing the second principle of conscious capitalism and Whole Foods’ purpose. It’s common for people to believe that if one side is succeeding, the other must be failing, but this isn’t always true. Mackey provides an example of how management can hire and train good employees who thrive in their work environment. He has discovered that content team members lead to satisfied customers, who then do more business and become advocates for the company. This results in happy investors, making it a win-win strategy.
You can also expand this to your suppliers and the communities where you do business.
Regarding McGregor’s Theory Y, I believe it plays a significant role at Whole Foods. The company believes that if their employees are happy, it reflects in their work and leads to satisfied customers. Additionally, they strive to foster employee commitment to the company.
Whole Foods builds human and social capital by valuing the productive potential of individuals’ knowledge and actions.
Whole Foods believes that all their employees have great potential to excel, and therefore invests in their training and management. They build human capital by recognizing the value of their employees. Additionally, they build social capital through conscious leadership, where leaders identify their own accomplishments through the accomplishments of their employees. This results in strong relationships, goodwill, trust, and cooperative effort.
This case brings the profile of the 21st century manager to life by highlighting the importance of investing in employees and building relationships based on trust and cooperation. A successful manager today is one who recognizes that human capital is essential to a company’s success and works towards developing it through continuous learning opportunities for employees. Additionally, a 21st-century manager understands that social capital is equally important for building strong teams and fostering collaboration among team members.
In today’s business, employees are often not viewed as internal customers. However, at Whole Foods, employees are considered just that. The leaders at Whole Foods are active members of the team and do not simply give orders; they also seek feedback from their employees. They believe that happy employees lead to happy customers, resulting in a mutually beneficial relationship for all parties involved.
Regarding Carroll’s global corporate social responsibility pyramid in figure 1-3, I would place Whole Foods at the top. This is because they prioritize social responsibility and ethical practices throughout their entire organization.
This is because they truly believe in their basic principles, not just having them to appease the public.
5) Which of the seven moral principles in Table 1-4 appear to be enforced at Whole Foods? Please explain.
I believe that Whole Foods enforces Autonomy, Loyalty, Fairness, Humaneness and The Common Good, and possibly the two others as well. This is due to their second basic principle which recognizes the stakeholder model; that everyone is interdependent including the environment, suppliers and communities.
6) What appeals (or does not appeal) to you about working at Whole Foods?
What appeals to me about working at Whole Foods is how they invest in their employees and encourage them to succeed. They also listen to their employees for suggestions on how to make things better.
In 2003, Mike Pitcher, the head of sales and marketing, met with representatives of LeasePlan’s top customers and was surprised that most of them were women. Among LeasePlan’s 450 employees, women outnumbered men but the majority of top managers were men at their subsidiary of Netherlands-based LeasePlan Corp. Despite this disparity, LeasePlan effectively manages diversity.
Due to a desire to change their corporate culture, LeasePlan began promoting more women and hiring consultants to revise the company’s pay plan and offer women career counseling. As a result of these efforts, three of the eight top executives are now women, up from one in seven just two years ago. Women employees have reported that LeasePlan is now a more supportive and collaborative employer. Mr. Pitcher, now the company’s chief executive, refers to this initiative as a strategic investment rather than simply the politically correct thing to do.
According to him, LeasePlan’s sustainable competitive advantage lies in their people. Sustained commitment from the top is necessary for these efforts. It is important to make it clear that this company is not just a passing trend and executives should be held accountable for supporting and promoting female subordinates, especially at smaller companies. In 2006, they hired Pathbuilders, Inc., an Atlanta-based human resources consultancy that focuses on women. They developed programs such as skills assessment, career guidance, and tips on communication and building a personal brand.
LeasePlan offers networking opportunities and panel discussions with female executives from other firms. Approximately 30 women participate in these programs each year. Maria Goldsholl, COO of Mom Corps – a staffing company that specializes in flexible employment for women – reports that these programs are improving job satisfaction and engagement among LeasePlan’s female employees. Since the introduction of these programs, the percentage of women who believe their management supports their career management efforts has increased from 35% in the 2006 survey to 47% the following year. Additionally, 71% of program participants agree with this sentiment.
The percentage of women who believe that they are awarded positions fairly has increased from 22% to 30%. The business case driving LeasePlan’s interest in managing diversity is the fact that their competitive advantage lies in their people, most of whom are women. As LeasePlan does not manufacture anything, it is crucial for them to ensure that their employees feel supported by the company. To maintain a competitive edge, LeasePlan recognizes the need to utilize and support female workers in advancing into higher positions within the organization.
Thanks to all of their efforts, employee satisfaction at LeasePlan has increased.
When comparing and contrasting the extent to which LeasePlan is using principles from affirmative action and managing diversity, it’s important to consider the rationale behind each approach. Affirmative action involves taking steps to ensure that historically marginalized groups, such as women or people of color, have equal access to job opportunities. This can include policies like setting quotas or actively recruiting from underrepresented groups.
In contrast, managing diversity focuses on creating a workplace culture that values and respects differences among employees. This can involve training programs for managers and employees on topics like unconscious bias or cultural awareness.
Both approaches have their benefits and drawbacks, but ultimately it’s up to each organization to determine which approach aligns best with their values and goals.
When Pitcher realized that there were more women in higher positions than men and the number of female employees was quite high, he believed that he had to do something to correct this imbalance.
Regarding LeasePlan’s efforts, it is worth discussing Alice Eagly and Linda Carli’s recommendations. In their book Through the Labyrinth,” they discuss how women should build their social capital network. Despite women achieving so much already, they are still behind men in business. Therefore, it is essential for companies like LeasePlan to make consistent efforts towards gender equality.
LeasePlan’s workshops for women aim to help them take the next step in their careers. It is believed that LeasePlan is using option one of R. Roosevelt Thomas Jr’s eight generic diversity options, which focuses on including more women at higher levels of the company. There is no evidence that they are denying, assimilating, suppressing, isolating or tolerating women at these levels.
In fact, LeasePlan is making efforts to increase the number of women in higher positions within the company.
As for recommendations to improve their diversity program, I suggest providing training for male employees on diversity. This will increase their awareness and understanding of different forms of diversity beyond just race.
