Whole Food's Productivity And Profit

Whole Food goes by a management philosophy called conscious capitalism meaning "the ethical treatment of customers, employees, and the environment is the main mission and basis for organizational culture (Cheretis& Mujtaba 2014,p.7)." This is a management philosophy that was created by the CEO of Whole Foods, John Mackey. The philosophy was made to empower people, which is the customer, employer and investors. The three aspects will improve socialism as a whole. It's a win-win for the entire system and he value that is shown to employees in this system ignites enthusiasm to work. It’s just a trickle-down effect for the customer to feel valued and profit begins for the shareholder. People is what makes a successful business and Mackey shows

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

He believes that in a conscious business, you can have an expanding pie and potentially everyone can get larger pieces. Basically, the idea is to create value for everyone. This concept seems to be the comprehensive culture of the organization and is infused within everything they do. The employees are referred to as team members to incorporate their inclusion in this philosophy. On a daily basis, they are empowered and encouraged to take opportunities to practice servant leadership towards satisfying their customers. For long term benefits, the also are offered opportunities to develop job specific skills to grow within the organization. Furthermore, team members are encouraged to participate in community outreach efforts as well. The culture of Whole Foods Market is positively affecting the team members in the organization through training, example, and involvement to become servant leaders as

Whole Foods consistently 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 which 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).

Mackey believes “making high profits is the means to the end of fulfilling Whole Foods’ core business mission” (Rae & Wong, 2012, p. 152). Mackey says Whole Foods wants to better the world through quality products, but understands this is only possible if Whole Foods is a highly profitable corporation. This is such a reputable view of corporate responsibility and only heightens my respect for the Whole Foods corporation as well as John Mackey. The world needs more corporations such as Whole Foods in rode to be a better-rounded, sustainable world.

Barbara Farfan (n.d.) explains that, “Whole Foods Core Values define how Whole Foods leaders and employees interact with their products, customers, employee team, shareholders, communities, suppliers, and align everyone behind the mission of improving health in general.” For example, Whole Foods believes in satisfying their consumers by selling the highest quality of natural and organic products obtainable. The company strives to maintain the highest standards of quality, not only in the products they offer but in supporting excellence in the development their employees, communities, and the environment. Whole Foods direct core values as listed on the company website (2015 Whole Foods Market IP. L.P.), also

Whole Food launched it’s Whole Trade Guarantee in April 2007, it was an initiative emphasizing the social responsibility and equitable compensation for producers from the developing world. Whole Foods justifies the its program as a commitment to benefiting to all stakeholders. The program reduced immediate profitability by paying foreign workers better wages, the investment improves relationships, improves the company’s reputation, and serves as a great example of the Whole Foods’ commitment to social responsibility.

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).

The factors that would appeal to working at Whole Foods are that they values employees. When a company give employees the resources they need to be successful, this goes a long way with the employee. The employee feels empowered, will be loyal the company, and to management. Employees will go out of their way for the company if management makes them feel valued and appreciated (Kainkan, (2015. Knowing that management ways you to be successful makes the employee want to do everything they can to do exceptional quality work for the customers and are committed to achieving the company’s goal. This dedication is directly benefited by profits for the company.

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

Given the statements from John Mackey, it is his vision to create a positive working environment and Theory Y plays somewhat of a role at Whole Foods. Although Whole Foods wants to

This company gives their employees much respect and rewards them for their knowledge and skills. Whole Foods knows the investment in quality training and making sure their employees are happy in their working environment means more business and profits. Whole

Whole Foods build human and social capital by putting value in training their staff and properly training management, moreover, they understand the snowball effect that management has on the company as a whole. Human capital is fertile probabilities in people (Kinicki & Kreitner, (2013). Whole Foods comprehends that effectively educating the workers to do an outstanding job at assisting customers with purchases can help build the company, and that builds human capital by optimizing the potential in that worker via training.

The co-founder and CEO John Mackey, believes the most important role he plays in the organization is “being seen.” He visits each store and talks with the team members and customers while communicating the mission of the company (Mackey, 2010). He believes walking and talking the mission, which emphases the tune of the organization. Therefore, without this leadership direction the company would not be successful in fostering teamwork. The strategy Whole Foods uses is a combination of democracy and discipline (Fishman, n.d.). They foster a sense of community while staying committed to productivity (Fishman, n.d.).