The Whole Foods Culture Is Premised On Decentralized Teamwork

Every retail location carries a variety of products that distinguishes it from other stores in the same chain. Not surprisingly, it is difficult to achieve economies of scale. Supply Chain Mackey describes his consumers as being “part of a cult”. Whole Foods believes that the company’s emphasis on perishables and locally-sourced produce differentiates their stores from run-of-the-mill supermarkets and attracts loyal and devoted customers. However, “fresh produce” is one of the most challenging product categories to operate due to limited product shelf life and high cost of spoilage. Whole Foods has tried to circumvent most of the problems inherent in supplying fresh produce to its stores by sourcing locally and having short and flexible supply chains. In the case of fruits and vegetables, Whole Foods has buying relationships with local farmers who supply the store with seasonal produce. Thus, if one farmer is unable to produce a sufficient amount of yellow corn or heirloom tomatoes, the shortfall can be made up by another farmer. Although challenging to perfect, these short supply chains are agile and difficult for other big retailers to duplicate.

promotes pride in team members. All employees have access to most of Whole Food’s financial

Average wage is $18.89, which is significantly higher than the retail store national average. Workers always earn a 20% discount from store items, with a potential of a 30% discount given that their cholesterol, blood pressure, and body-mass-index (BMI) are within a healthy range. Whole Foods provides their workers with a company website where they can monitor their eating patterns. Employees are able to access wages of anyone working for the corporation, from hourly workers to CEO’s. Voices are not left unheard as Whole Food’s encourages workers to present ideas, hence they have became known for taking the good ones. Their bestselling bread recipe came from a worker in Santa Fe, and their model of a bicycle delivery was written by a cyclist from Austin, Texas. Employee “perks” include language classes, massage therapy, and yoga. They have created alluring and joyful environments which reflect their intentions. The motto goes: “We celebrate success and see failures as opportunities for growth.” Thus, the company progresses through using the judgement and imagination of their workers.

Whole Foods is a great example of democratic approach to store operation. In this organizational environment all team members have the ability to insert their input in decision making that affects their product/service area in addition to having input in store matters as well. Whole Foods has a stringent screening process potential employees are put through to ensure that the applicant is a good fit for the organization. Once an applicant is hired, they are assigned to a team and team leader, who then train the new team member to be knowledgeable on the product/service they are assigned to. Additionally, they are also trained on providing friendly customer service. Due to Whole Foods approach to using workplace democracy, it has created a positive

This tactic helps those parents whose children that may not enjoy their weekly trips to the grocery store. The children now have a fun experience to associate with mommy or daddy grocery store trip. Mini shopping carts are also available for the children to get them involved in the shopping process (Bond, 2012). Another way Trader Joe’s motivates its employees is by providing higher pay and excellent benefits. Their employees make more than the average cashier or manager of any of its competitors (Speizer, 2004). Generous compensation and benefits can help boost employee morale. When employees feel like they are valued and compensated for the work they do they tend to be more loyal. This is better known as an extrinsic reward. These types of rewards lead to employees feeling positively valued (Schermerhorn et al., 2012). Lastly, Trader Joe’s motivates its employees by promoting from within. All managers at some point have been cashiers or floor salespersons. Therefore, Trader Joe’s has created the Trader Joe’s University so employees are able to receive the proper training so they are able to efficiently operate a store one day (Schermerhorn et al., 2012). By promoting from within, employees have advancement opportunities to look forward to.

One of the most successful companies of recent memory is Whole Foods, the all-organic grocery store that caters to customers who are concerned about the 'sourcing' of their foods. A cornerstone of Whole Foods' success is its use of team leadership to enable the organization to fulfill its functions and mission. This paper will evaluate how Whole Foods uses teams to advance its interests and create a positive corporate culture.

For example, AFLAC would award its employees who present themselves within the community or volunteer for many charities, with the Volunteer of the Month award. This award can build the morale of the employee and keep them engaged. In the end not only are employees being recognized for their philanthropic work, but also it allows AFLAC to gain rapport due to its continuous efforts in the community. Secondly, AFLAC utilizes sound performance and incentive as an enhancement tool in order to promote and develop employees for the next level within the organization and keep pace with the company’s overall goals and strategies. “Approximately 90 percent of employees were attracted to and remain at Aflac because of company reputation. Employees are happy with the profit-sharing bonus, with 81 percent of employees saying they believe it is better than that of other companies” (p.7). This strategy is a marketing tool that allows AFLACs employees to see endless opportunity, which has allowed AFLAC to retain over 91 percent of it,

Trader Joe’s has great workforce management practices and its employees enjoy what they do. They have cheerful attitudes and are more than willing to assist customers with anything in the store. Trader Joe’s employees are engaged in conversation with the customers that shop in the store and make the customers aware of any new or exciting products from them to try. The positive behavior of these employees is due to the compensation and benefits each employee receives, which is far more competitive than other grocery food stores. Trader Joe’s has also created an environment where employees feel valued and know their opinions matter to the growth of the

THE ORGANIZATIONAL BEHAVIOR OF FOOD RETAILER TRADER JOE’S IS UNIQUE IN MANY WAYS. FROM OWNER, JOE COULOMBE, TO A STORE CLERK, THEY ALL HAVE THE SAME VISION IN MIND- TO SET THEMSELVES APART FROM THE REST. NOT FALLING INTO STEREOTYPICAL FOOD CHAINS, TRADER JOE’S DOES BUSINESS THEIR WAY. THIS MAKES THEM PERFECT AT BEING THEM. FROM INTERVIEW QUESTIONS TO JOB DESIGN, THEY ARE NOT YOUR STANDARD FOOD MARKET. THE SOCIAL CAPITAL IN WHICH MANAGEMENT IS CHOSEN, TO THE STORE’S ATMOSPHERE AND POSITIVE REINFORCEMENT FOR ALL EMPLOYEES ARE HAVE A PROVEN TRACK RECORD OF SUCCESS. ADDED WITH IMPECCABLE CUSTOMER SERVICE, THE ORGANIZATIONAL BEHAVIOR OF

Which of the 4 perspectives of organizational effectiveness do you think that Whole Foods reflects in how it operates?

Whole Foods definitely uses human capital as a competitive advantage in multiple aspects of the company business model. Whole Foods built the foundation of their business model around quality, empowered employees. These employees are the key to the unique experience that defines the company and the source of their primary competitive advantage in the marketplace. This competitive advantage is framed around the concepts of human capital value, human capital rareness, and human capital imitability (Hitt, Miller & Colella, 2015). Whole Foods human capital value is represented by knowledgeable, capable employees empowered to champion the overall strategy of the company and make decisions at the lowest level to ensure a great product and customer experience (Hitt, Miller & Colella, 2015). Human capital rareness is demonstrated by the emphasis placed on sourcing, interviewing, and hiring practices. This ensures Whole Foods hires the unique employee that will champion the quality of their product line as well as the front-line face of the company to customers. Regarding human capital imitability, Whole Foods overall human capital focus and packaging makes a formidable task for competitors to replicate. From the overall compensation package, degree of employee input and interaction, benefits structure, bonus program, and overall company environment, Whole Foods ensures that sourcing and retention of employees provides a definite advantage (Hitt, Miller & Colella, 2015).

Teamwork is important factor, because without social capital an employee will not become a benefit to the company. Whole Foods offer human capital because of the shared knowledge due to training and other qualifications that begin with the hiring process (Kreitner & Kinicki, 2013). Managers that are selected with potential value to operate very functional is a quality that Whole Foods possess. These are all valuable factors when considering employment at Whole Foods. Overall Whole Foods offer that level of employee satisfaction that is very motivating and compelling to be a part

Whole Foods Market has expanded by a mixture of opening its own new stores and acquiring already existing stores. Today WFM does not follow this strategy, instead their motivation is to open its own large stores. This is due to noticeable sales differences in larger stores as opposed to smaller stores. WFM locates these newer stores in upscale areas of urban metropolitan centers and high-traffic shopping locations. Not all WFMs are isolated structures; some are located in strip malls. WFM offers a larger selection of natural and organic foods than any other grocery store. WFMs marketing expenditure is extremely small. They spend a measly 0.5% of their revenues on advertising. Their chief marketing strategy relies on word-of-mouth. WFM strives to meet or exceed customer expectations. This is so customers receive competent, knowledgeable, and friendly service and become advocates of WFM. The employees here have a decentralized team approach for store operations. This is so some personnel, merchandising, and operating

Fraser Foods has divided teams to raise the morale of employees through various activities that keep them away from boredom and repetitive work and have made the company share profits with its employees so that they have a motive to achieve their goals.

Trader Joe’s operates over 340 stores in 9 states were they “buy direct from suppliers whenever possible, bargain hard to get the best prices and then pass the savings on to the customer” (Trader Joe’s, 2013, para. 4). Whole Food’s Market is the “world’s leader in natural and organic foods, with more than 360 stores in North America and the United Kingdom” (Whole Food, 2013, para 2). Trader Joe’s and Whole Food’s Market have managed to take original ideas and spread them throughout the nation to many different customers. Although they differ not only in the technique in which they decide to bring products to their customers but also in term of inventory management and supply chain organization. These two companies have become so successful in my opinion, not by what they differ in but what they have most in common, which is their commitment to their loyal customers, employees and undeniable quality in their products they sell. Through their loyalty to their customers and employees in addition to their irreplaceable value