Whole Foods Human Capital Analysis

According to Mayo(2000) focuses on a definition of human capital and defines it as: “ a capability, knowledge, skill, experience, and networking with the ability to achieve results and the potential for growth; individual motivation in the form of aspirations, ambition, drives, work motivations and productivity; work group effectiveness in the form of supportiveness, mutual respect sharing and value; leadership in the form of clarity of vision and ability to communicate that vision; organizational climate in the form of culture particularly the freedom to innovate, openness, flexibility and respect for the individual.” in (Thomes N. Garavan, Michael Morley, Patrick Gunnigle, Eammon Collins 2001 p.50).Relatively in an easier way to understand “human capital is the collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce.” (Ghee Soon Lim, Rebert L Mathis and John H. Jackson 2009 p.12)

Human capital refers employee’s knowledge, personal characteristics which include behaviour and creativity. Motivation does not increase the human skill but it can increase the ability of a worker by using his or her full knowledge with maximum interest or attention on job. In Amazon motivation will increase the ability of their working power (Storberg, 2013).

In order to understand how Whole Foods builds human and social capital, it is important to understand what human and social capital is. Human capital is the “knowledge, information, skills, and health of individuals’” (Wright & McMahan, 2011, pg. 2). However, social capital is somewhat thought of in the idea of location (Paldam, 2000, pg. 3). In my opinion, Whole Foods is able to build both human and social capital because they use their employees in a way that everyone has their own part to play within the organization. This will ensure that goals are met each and every day.

Whole Foods is a company that has the philosophy that takes the social and human capital to build themselves into a successful business. They take care of their employees and keep them engaged to keep them happy, which in return they produce higher quality work. If they are keeping customers satisfied, then it keeps investors happy because business will succeed which will create higher returns on their investments. A large study done on hotel employees in Turkey showed that there was a strong correlation between organizational trust and job satisfaction (GÜÇER & DEMIRDAG, 2017). This idea is very relevant and studies can be done in almost every occupation and should yield similar results.

This is a needs assessment performed on the WholeFoods Company. I consulted with the district human resources manager, who put me into contact with their training and development specialist. I also read the company online literature, especially that regarding the mission and values of the organization. This is integral to the organizational analysis section of the needs assessment, as suggested in Chapter 3. On the website, the WholeFoods company claims as one of their core values to "support team member excellence and happiness" with several elements. Those elements include "empowering work environments, self responsibility, self-directed teams, open and timely information, incremental progress, and shared fate." In addition to the research on the company website, I interviewed the training and development specialist as part of the needs assessment, organizational analysis section. The specialist told me that training and development were a core concern for the company because it helps them to motivate and manage employees. Most training happens in the store, and there is department-specific training.

Human capital includes the individual capacities, learning, abilities, and experience of the organization's representatives and administrators. This information is pertinent to the job needing to be done, and in addition the ability to add to this store of learning, aptitudes, and experience through learning. Human capital is the establishment of scholarly capital. Scholarly capital is created through pulling in, creating, and holding human capital.

Fortune 500, 2012 ranks Whole Foods Market as the 264th best company in the United States, and Fortune 100, 2012 ranks Whole Foods as the 32nd best company to work for. Whole Foods Market is a global leader in the natural and organic foods. The company operates within the natural and organic segment, which include seafood, meat, poultry, bakery and grocery. The company also prepares specialty food such as wine, coffee, vitamins, nutritional supplement and body care. Whole Foods Market also produces educational products such as books, and other products such as pet products, floral, and household products. In September 2010, the company has 299 stores in the United States, Canada and the UK. The rapid growth of Whole Foods Market has been attributed to the selective products that the company offers and its dedication to the quality standard. The company was formed in 1980 and completed its public offering in 1992. The Whole Foods Market is dedicated to promote wellbeing of all people by supplying high quality and wholesome food. Whole Food's mission statement is to "promote vitality and well-being for all individuals by offering the highest quality, least processed, most flavorful natural and naturally preserved foods available."( Meador 2010, P 1). Whole Food strategy is to open large new stores measured 50,000 square feet or larger. The company also dedicates in acquiring small chain

The value of human capital may be hard to measure, yet possessing the right people working together can help an organization meet its vision and goals.

What role, if any, does McGregor’s Theory Y play at Whole Foods? Explain? The primary focus of this case study analysis shall be to examine the methods of Whole Food’s distinctive approach and development to the implementation of creative management strategies and how they can continue to successfully help them to maintain growth in their company. The underscoring premise of McGregor’s Theory Y primarily rest on the assumption that that the role of management is develop the potential of their employees and help them to realize their potential to meet the common goals of their

Ollman, 1976). Pakulski and Waters argued that social is dead, due to changes in economic and social structures along with adaptions in social identity and belonging (1996). Although there has been changes and transformations to social class over time, for example Bourdieu’s three forms of capital. He states there is economic capital, cultural capital and finally social capital (1986). Bourdieu built

Human capital plays a considerable role in the economic environments. It is not cash, assets, but it is people, which are the critical differentiators of a business enterprise (Fiz-enz, 2000). It is an organisation’s possess individual tacit knowledge (Nelson and Winter, 1982). There are four factors involved by human capital: genetic inheritance, education, experience and attitudes about life and business (Hudson, 1993). All of these factors are intangible and can be invaluable. Human Capital is a source of innovation and strategic renewal, such as improving personal skills, re-engineering new process or just daydreaming at the office (Hudson, 1993). According to Figure 1 (Bontis, 1998), Human Capital is about the intellect of human. It is an internal control and development

Baron, A. & Armstrong, M. (2007). Human capital management: achieving added value through people. London: Kogan Page.

Human resources and human capital are different. Human resources management is the function by which the human capital is guided and directed. As previously stated, human capital is made up of the knowledge and skills that people possess. When a company hires an employee they are essentially “leasing” the talent that the individual owns. The company does not own the employee, their skills or abilities. Human capital emphasizes valuing people that work for the companies as assets; employees that add to the value of the organization, and when efficiently managed contributes to the overall success of the company in terms of employee productivity and contribution. The role of human resources in valuing human capital is mainly to figure out ways to attract and recruit the best people, find ways to make them better at what they do and bring the best out of them.

Human Resource is the Human Capital. Human Resource Management is the process of maximum use of the available human resource in order to achieve the goal of the organization.Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true, regardless of the type of organization-government, business, education, health, recreation, or social action.

Performance management is a discipline that aims at promoting organizational performance by managing the human capital of an organization. The know-how, skills and capabilities that inherent and used by workers in an organization are referred to as human capital. Human capital is an integral asset of any business, company or organization and many of them have concentrated their investments of human capital. Why are organizations interested in the development management and promotion of human capital? Is human capital becoming more and more relevant to organizations? Studies have indicated that there is a huge overt and covert influence of human capital on the performance of any organization and business and there has been intensive research on human capital as a factor in business and organizational performance. This is why organizations are increasingly empowering their human resource departments which deal with the human capital. It has been proved by various studies that any practice that promotes or enhances human capital influences organizational performance directly by molding organizational behavior and attitudes. Human capital also creates structural and operational focal points that improve efficiency. According to most business executives, people are the most integral assets in any organization because they are the