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| Case Details: | Price: |  
						| Case Code | : | HROB086 | For delivery in electronic format: Rs. 500; For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges
 ThemesOrganization Culture |  
						| Case Length | : | 23 Pages |  
						| Period | : | 1978 -2006 |  
						| Organization | : | Whole Foods 
						Market |  
						| Pub Date | : | 2006 |  
						| Teaching Note | : | Available |  
						| Countries | : | USA |  
						| Industry | : | 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.
 |  |  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) Exhibits
 Key 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 >> |  |