In this chapter we talked about how hierarchical, command-and-control type of organizational structures are giving way to high performing work systems—systems characterized by egalitarianism, knowledge and information sharing, employee empowerment, and reward and performance linkages. Such a system pretty well sums up Whole Foods Market, the world's leading natural and organic foods grocer. Whole Foods started out in 1980 with one small store in Austin, Texas. Today it employs 54,000 employees in more than 300 stores in North America and the United Kingdom. And despite having higher product prices than most of its competitors, during the recession, following a downward dip, the company managed to emerge with higher sales and strong profits. How has Whole Foods done it? For one, as the company expanded, Whole Foods adopted many of the successful practices of the companies it bought—especially those of Boston-based Bread&Circus, renowned for its fresh produce, meat, and seafood. 'Whole Foods has been very smart about their expansion program, taking time to digest acquisitions before moving on to the next one," says Darrell Rigby, a retail consultant. Second, the company has stayed true to its vision. It works to ensure that all of its efforts and practices are externally and internally aligned with the following three principles: Whole Foods, Whole People, and Whole Planet. The "Whole Foods° principles relates to the company's mission to provide customers the highest quality, least processed, most flavorful and natural foods possible. "Whole planet" relates to the company's endeavors to protect the environment and nurture the communities in which it operates. For example, in addition to participating in a multitude of green initiatives, at least 5 percent of annual profits go to local charities. The company's 'whole people" principle is arguably a huge part of its success. Whole Foods' website points out that the grocer's employees are the company: Our success is dependent upon the collective energy and intelligence of all our Team Members. In addition to receiving fair wages and benefits, belief in the value of our work and finding fulfillment from our jobs is a key reason we are part of Whole Foods Market. The key word? Team. Whole Food isn't 'run" by executives and store managers but by in-store teams. Each team is responsible for one area of the store, such as baked goods, meat, poultry, and so forth, and is empowered to make product, pricing, and staffing decisions. This high degree of decentralization allows the stores to better tailor their offerings and services to meet the needs of the communities, which helps them be more competitive.

Questions

1. Why don't all companies treat their employees like Whole Foods does? Do you think they will in the future?

2. Mackey is one of the firm's founders. But is the company at a disadvantage once he retires, given Whole Foods' salary cap? And will the new CEO have to be voted "in"?

3. Can “eco-consciousness” effectively be incorporated into high-performance work systems?

Answer rating: 100% (QA)

1 The company WF believes that if they made their employees happy they will make the customers happy ... View the full answer