Whole Foods Market's Unique Work Culture and Practices
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Case Details: |
Price: |
Case Code |
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HROB086 |
For delivery in electronic format: Rs. 500; For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling ChargesThemes
Organization Culture
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Case Length |
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23 Pages |
Period |
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1978 -2006 |
Organization |
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Whole Foods
Market |
Pub Date |
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2006 |
Teaching Note |
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Available |
Countries |
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USA |
Industry |
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Retail |
Abstract:
Whole Foods Market was the biggest organic and natural foods retailer in the
world. The company was well known for its team-based operations and
employee-oriented work culture, which were thought to be the main drivers of its
growth and profitability in an industry that was characterized by negligible
growth rates and declining profits.
The work culture at WFM was centered on the company's grassroots level
management, which helped it eliminate bureaucracy. A high amount of
decentralization also allowed the company to tailor its operations to meet the
requirements of local communities.
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An example of the degree of decentralization
at WFM was the 'hiring vote', which empowered existing team
members to choose the new recruits to their teams. WFM was also
known for disclosing vast amounts of critical financial
information to employees at all levels, and for encouraging team
members and leaders to take decisions at the team level based on
this information.
WFM also disclosed the annual salaries of all its employees in
its 'salary book', which was made available at all its
locations. Additionally, the company had a salary cap, which
restricted CEO John Mackey's pay to 14 times the average annual
salary of all full time employees. These measures were thought
to have played an important role in creating a culture of trust
and openness at the company. Competitiveness was also promoted
at WFM, and the company had a metrics-based culture, which
encouraged teams to benchmark their performance against that of
others within the system, leading to a culture of 'excellence'.
This case examines the main elements of WFM's work culture, and
analyzes how they helped create a culture that became a source
of competitive advantage for the company. The case also
discusses Mackey's leadership style, and how it influenced the
culture of WFM. It concludes with an analysis of WFM's stand on
unions and the company's prospects and challenges in the future.
Issues:
» To understand the role of culture as a source of competitive advantage for
companies.
» To study the effect of leadership on culture, especially when the leader also
happens to be the founder of the company.
» To examine the importance of teams in a retail setup, and to analyze their
role and importance in a company with a decentralized and democratic cultural
system.
» To understand the importance of transparency and openness in creating a 'high
trust' organization.
» To study how internal competition can contribute towards creating a 'culture
of excellence'.
» To study the issues of unionization in large retail organizations, and the
ethical dimensions of discouraging unions
Contents:
1)
Whole Foods Walks the Talk
2)
Background
3) Culture and
Practices
4) Grassroots
Management
5) Transparency
6) A Metrics-Based
Culture
7) Competitiveness
and Gainsharing
8) Mackey's
Influence on WFM's Culture
9) The Criticism
10) Conclusion
11) ExhibitsKey Words:
Whole Foods Market, John Mackey, Organic food, Certified
organic, Work culture, Transparency, Team based operations,
Hiring vote, Empowerment , Autonomy, Metric-based culture,
Gainsharing , Consensus decisions, Consultative decisions,
Salary cap, Democratic culture, Trade unions
WHOLE FOODS WALKS THE TALK >>
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