The Challenge Case “Autonomy at Hy-Vee Supermarkets” and its related Challenge Case Summary were written to help you understand the management concepts contained in this chapter. Answer the following discussion questions about the Challenge Case to better understand how responsibility, authority, and delegation concepts can be applied in a company such as Hy-Vee Supermarkets.

Data from The Challenge Case “Autonomy at Hy-Vee Supermarkets”

Hy-Vee Supermarkets have been around since 1930, serving eight midwestern states. Constantly being challenged by giants such as Wal-Mart as well as small, regional chains, the company has consistently grown and has nearly $10 billion in annual sales. But what keeps a nearly 90-year-old company thriving? “People are allowed to share in the success of the company,” says Ron Taylor, the chain’s senior vice president of corporate procurement and logistics. “Not only economically,” he says, “but in having knowledge about how the company runs.” Taylor is referring to the degree of autonomy experienced by store managers and the authority they have to ensure that their store is successful. According to Taylor, the store managers are essentially the CEOs of their respective stores. Not only do they handle all the hiring of staff, but they can even change the pricing and marketing from what is produced at the corporate office. Typically, retailers are required to follow a planogram (a pictorial description of how products should appear on the store shelves) created by the company’s headquarters. But at Hy Vee, store managers can elect to change the planogram to better suit the local customers. This may also result in changes to the prices as well as instore promotions. 

Store managers can also choose to stock products that are localized. “We do a lot with local vendors,” Taylor states. “Stores are given freedom to bring in their local items. If you go to Kansas City, for example, you’ll see an entirely different mix of product than you’ll see in [another] store.” This means that store managers are working closely with vendors in the store’s hometown—featuring hometown products in addition to national brands. Employees, including store managers, having the ability to make their own decisions is known as autonomy. Hy-Vee’s store managers have the autonomy to determine what products are on their store shelves, how to price those products effectively, and what marketing approaches work best with their particular customers. That autonomy has been delegated to them from the corporate office.

1. Discuss the roles of responsibility, authority, and accountability among store managers at Hy-Vee Supermarkets.

2. What are the drawbacks to delegating so much authority to Hy-Vee store managers?

3. What are the advantages to delegating authority to Hy-Vee store managers?