What type of organization allows employees to take off during the day to go surfing? The answer

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What type of organization allows employees to take off during the day to go surfing? The answer is Patagonia. When founder Yvon Chouinard first developed the company, he was not interested in pursuing profits as the firm's main goal. Instead, he wanted to contribute toward improving the planet. New employees are hired based in large part on their passion for the firm's goals, and rather than being viewed as subordinates, employees at Patagonia are considered to be partners advancing environmental preservation. To create this work environment, Patagonia uses a flat organizational structure where employees have more freedom to make decisions and pursue objectives.

The inspiration for Patagonia started more than 60 years ago. In 1953, Yvon Chouinard developed a passion for rock climbing. His passions brought him west to the San Fernando Valley in California, where he became an expert at climbing and rappelling. Unfortunately, his passion was limited by a lack of appropriate climbing gear.

This led Chouinard to craft his own set of reusable iron pitons. Chouinard's invention spread by word of mouth, and demand for his gear reached an all-time high. In 1965, Chouinard decided to partner with Tom Frost to create Chouinard Equipment.

While designing tools for climbing, Chouinard realized the need for functional climbing clothing. He and his wife decided to sell clothing as a way of supporting the hardware business. In 1972, the clothing line experienced such demand and growth that it became its own business venture. They called this venture Patagonia. The name was intended to reflect the mysticism of far-off lands and adventurous places located not quite on the map. Consumers loved Patagonia's durable and brightly colored clothing.

From the beginning, Chouinard and his wife, Malinda, knew they wanted to sell items that would have a minimal impact on the environment. In 1985, the firm began donating 1 percent of its total sales to environmental organizations. The couple agreed that the company would produce only products of the highest quality and manufactured in the most responsible way. They selected the following mission statement for the company: "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis." Patagonia ensures its employees understand and support these values, using a mix of in-person training, video training, and online instruction to help employees learn about the company culture and increase their work skills.

Unlike many organizations, Patagonia does not want its products to wear out so that consumers will come back for more. It aims to provide durable products to allow customers the freedom of not repurchasing products from the company. While this might appear to limit sales, revenue at Patagonia has increased because consumers can trust Patagonia's products to last a long time. In fact, the firmwhich constantly remarks that it places the environment over profits-has embarked upon a "Buy Less" campaign, among other initiatives that seem like they might discourage revenue growth. However, revenue has more than doubled since 2008. Employee support for these environmental initiatives is important in making them a success...........

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1. What type of organizational structure does Patagonia use?
2. What role do employees have in the flat structure of Patagonia?
3. Why is Patagonia an employee-centered organization?

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Management Principles And Applications

ISBN: 9781942041719

4th Edition

Authors: Leonard Bierman, O.C Ferrell , Linda Ferrell

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