clearly states the goals of satisfying and delighting customers and of team-member happiness and excellence (Whole Foods. 2013). Building healthy relationships with team members, getting rid of the "us versus them" management mentality, and a deep-seated belief in employee participation are also highlighted. The core values regarding working at Whole Foods include the following (Whole Foods, 2013): Self-directed teams that meet to solve problems and appreciate members • Increased communication through open-book management and "no secrets" management that allow employees access to financial data, salary and raise information, and so forth Profit-and gain-sharing to provide team members incentives to perform and build the team through shared fate (nonexecutive employees hold 94 percent of the company's stock options); a salary cap that limits the salary of any team member to times the average total compensation of all full-time team members • Employee happiness through fun and friendship at work with liberal dress codes, ability to do volunteer work on company time, full health benefits, and emphasis on taking responsibility for successes and failures and celebration and encouragement of employees . Continuous learning for employees about the products they sell and the job they do • Promotion from within to appreciate and encourage employee talent and development and a strong equal opportunity policy Although the positive work culture, fun, and friendship are key to the company's ongoing success, competition and focus on performance are not lost. Because individual raises are tied to their team's performance, team members want good workers on their team. Mackey, who wants his company to be based on love rather than fear, is also clearly in charge and in the forefront representing his company in the community. As he battles the animal rights groups that continue to criticize Whole Foods for being hypocritical and counterculture groups that accuse him of having become too corporate, or defending against the antiunion charges leveled at the company. Mackey responds, "We're in the business of selling whole foods, not holy foods". The corporate side of the CEO became clearly evident when he had to apologize for having assumed an online alias "Rahobdeb" (an anagram of his wife's name) to bash his competitor Wild Oats Markets for years. Questions 1. what are the leadership traits and skills of John Mackey? 2. What are the leadership style of John Mackey 3. How does John Mackey use delegation in the operation of Whole Foods? 4. What makes the teams at Whole Foods effective?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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can you please answer this case study ?

clearly states the goals of satisfying and delighting customers and of team-member happiness
and excellence (Whole Foods. 2013). Building healthy relationships with team members,
getting rid of the "us versus them" management mentality, and a deep-seated belief in
employee participation are also highlighted. The core values regarding working at Whole
Foods include the following (Whole Foods, 2013):
• Self-directed teams that meet to solve problems and appreciate members
• Increased communication through open-book management and "no secrets" management
that allow employees access to financial data, salary and raise information, and so forth
• Profit- and gain-sharing to provide team members incentives to perform and build the team
through shared fate (nonexecutive employees hold 94 percent of the company's stock
options); a salary cap that limits the salary of any team member to times the average total
compensation of all full-time team members
• Employee happiness through fun and friendship at work with liberal dress codes, ability to
do volunteer work on company time, full health benefits, and emphasis on taking
responsibility for successes and failures and celebration and encouragement of employees
. Continuous learning for employees about the products they sell and the job they do
• Promotion from within to appreciate and encourage employee talent and development and
a strong equal opportunity policy
Although the positive work culture, fun, and friendship are key to the company's ongoing
success, competition and focus on performance are not lost. Because individual raises are tied
to their team's performance, team members want good workers on their team. Mackey, who
wants his company to be based on love rather than fear, is also clearly in charge and in the
forefront representing his company in the community.
As he battles the animal rights groups that continue to criticize Whole Foods for being
hypocritical and counterculture groups that accuse him of having become too corporate, or
defending against the antiunion charges leveled at the company. Mackey responds, "We're
in the business of selling whole foods, not holy foods".
The corporate side of the CEO became clearly evident when he had to apologize for having
assumed an online alias "Rahobdeb" (an anagram of his wife's name) to bash his competitor
Wild Oats Markets for years.
Questions
1. what are the leadership traits and skills of John Mackey?
2. What are the leadership style of John Mackey
3. How does John Mackey use delegation in the operation of Whole Foods?
4. What makes the teams at Whole Foods effective?
Transcribed Image Text:clearly states the goals of satisfying and delighting customers and of team-member happiness and excellence (Whole Foods. 2013). Building healthy relationships with team members, getting rid of the "us versus them" management mentality, and a deep-seated belief in employee participation are also highlighted. The core values regarding working at Whole Foods include the following (Whole Foods, 2013): • Self-directed teams that meet to solve problems and appreciate members • Increased communication through open-book management and "no secrets" management that allow employees access to financial data, salary and raise information, and so forth • Profit- and gain-sharing to provide team members incentives to perform and build the team through shared fate (nonexecutive employees hold 94 percent of the company's stock options); a salary cap that limits the salary of any team member to times the average total compensation of all full-time team members • Employee happiness through fun and friendship at work with liberal dress codes, ability to do volunteer work on company time, full health benefits, and emphasis on taking responsibility for successes and failures and celebration and encouragement of employees . Continuous learning for employees about the products they sell and the job they do • Promotion from within to appreciate and encourage employee talent and development and a strong equal opportunity policy Although the positive work culture, fun, and friendship are key to the company's ongoing success, competition and focus on performance are not lost. Because individual raises are tied to their team's performance, team members want good workers on their team. Mackey, who wants his company to be based on love rather than fear, is also clearly in charge and in the forefront representing his company in the community. As he battles the animal rights groups that continue to criticize Whole Foods for being hypocritical and counterculture groups that accuse him of having become too corporate, or defending against the antiunion charges leveled at the company. Mackey responds, "We're in the business of selling whole foods, not holy foods". The corporate side of the CEO became clearly evident when he had to apologize for having assumed an online alias "Rahobdeb" (an anagram of his wife's name) to bash his competitor Wild Oats Markets for years. Questions 1. what are the leadership traits and skills of John Mackey? 2. What are the leadership style of John Mackey 3. How does John Mackey use delegation in the operation of Whole Foods? 4. What makes the teams at Whole Foods effective?
JOHN MACKEY OF WHOLE FOODS
*1 am now 53 years old and I have reached a place in my life where I no longer want to work
for money..... Beginning January 1, 2007, my salary will be reduced to $1. and 1 will no longer
take any other cash compensation" (Mackey, 2007). The statement is part of a letter John
Mackey, the founder and CEO of Whole Foods, wrote to his employees when the sales were
below expectations and the stock prices dropped. Mackey says: "We're trying to do good.
And we're trying to make money. The more money we make, the better we can do." His
company and a highly unique management style are a model of innovation and customer
service around the world.
He considers his company and his over 50,000 employees to be his children, says he does
things for fun, and is considered by some to be a "right-wing hippy". His views, which he calls
conscious capitalism, see business as having a higher purpose; he states: "We're trying to do
good. And we're trying to make money. The more money we make, the better we can do".
Although he says that his views and those of his company do not always match, he believes
that: "We're changing the experience (of shopping) so that people enjoy it. With bright
facilities, wide aisles, rich colourful displays, expert employees, and lots of help and
information for customers, Whole Foods has changed the way many people shop for food.
John Mackey started the company in 1980 in Austin. Texas, with the first organic food store;
it now numbers more than 150 stores with earnings of nearly $3 billion and is making a move
to become a global company with the first store opening up in the United Kingdom. "Mackey
is hardly a manager at all...he's an anarchist" is how a former Whole Foods executive
describes the company president.
The CEO, who is now in his 50s, visits his stores in shorts and hiking boots and is equally as
passionate about egalitarianism and democracy in the workplace and the humane treatment
of animals as he is in his opposition to the new U.S. health-care plan (Mackey, 2009). He
interacts freely with employees and is eager to learn from them and from his customers.
Wendy Steinberg, who has worked at Whole Foods since 1992, describes him as an "observer
(Fishman, 2004: 76). A vegan, who changed his vegetarian diet to exclude all animal by-
products after working with a group devoted to improving living conditions for farm animals,
he still flies commercial airplanes, rents the cheapest cars, and is a shrewd and disciplined
businessman leading his company and employees to considerable success. Much of that
success is attributed to Whole Foods' team-based culture that empowers employees and
involves them in all aspects of decision making while demanding performance and customer
service. The basic decision-making power at Whole Foods rests with the teams that run each
department (e.g., bakery, produce, seafood) in each store.
The teams decide whom to hire, whether to retain members, what products to carry, how to
allocate raises, and so forth. All teams together also make strategic decisions, such as the type
of health insurance the company will offer. The National Leadership Team of the company
makes the overall decision based on majority vote. Mackey says, "I don't overrule the National
Leadership Team.... I've done it maybe once or twice in all these years". He admits making
some top-down decisions, but only when time to consult is not available. Whole Foods has a
"Declaration of Interdependence" that affirms the interdependence of all stakeholders and
Transcribed Image Text:JOHN MACKEY OF WHOLE FOODS *1 am now 53 years old and I have reached a place in my life where I no longer want to work for money..... Beginning January 1, 2007, my salary will be reduced to $1. and 1 will no longer take any other cash compensation" (Mackey, 2007). The statement is part of a letter John Mackey, the founder and CEO of Whole Foods, wrote to his employees when the sales were below expectations and the stock prices dropped. Mackey says: "We're trying to do good. And we're trying to make money. The more money we make, the better we can do." His company and a highly unique management style are a model of innovation and customer service around the world. He considers his company and his over 50,000 employees to be his children, says he does things for fun, and is considered by some to be a "right-wing hippy". His views, which he calls conscious capitalism, see business as having a higher purpose; he states: "We're trying to do good. And we're trying to make money. The more money we make, the better we can do". Although he says that his views and those of his company do not always match, he believes that: "We're changing the experience (of shopping) so that people enjoy it. With bright facilities, wide aisles, rich colourful displays, expert employees, and lots of help and information for customers, Whole Foods has changed the way many people shop for food. John Mackey started the company in 1980 in Austin. Texas, with the first organic food store; it now numbers more than 150 stores with earnings of nearly $3 billion and is making a move to become a global company with the first store opening up in the United Kingdom. "Mackey is hardly a manager at all...he's an anarchist" is how a former Whole Foods executive describes the company president. The CEO, who is now in his 50s, visits his stores in shorts and hiking boots and is equally as passionate about egalitarianism and democracy in the workplace and the humane treatment of animals as he is in his opposition to the new U.S. health-care plan (Mackey, 2009). He interacts freely with employees and is eager to learn from them and from his customers. Wendy Steinberg, who has worked at Whole Foods since 1992, describes him as an "observer (Fishman, 2004: 76). A vegan, who changed his vegetarian diet to exclude all animal by- products after working with a group devoted to improving living conditions for farm animals, he still flies commercial airplanes, rents the cheapest cars, and is a shrewd and disciplined businessman leading his company and employees to considerable success. Much of that success is attributed to Whole Foods' team-based culture that empowers employees and involves them in all aspects of decision making while demanding performance and customer service. The basic decision-making power at Whole Foods rests with the teams that run each department (e.g., bakery, produce, seafood) in each store. The teams decide whom to hire, whether to retain members, what products to carry, how to allocate raises, and so forth. All teams together also make strategic decisions, such as the type of health insurance the company will offer. The National Leadership Team of the company makes the overall decision based on majority vote. Mackey says, "I don't overrule the National Leadership Team.... I've done it maybe once or twice in all these years". He admits making some top-down decisions, but only when time to consult is not available. Whole Foods has a "Declaration of Interdependence" that affirms the interdependence of all stakeholders and
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