Founded in 1966 by Richard Schulze, electronics retailer Best Buy experienced phenomenal growth and success for the next 40 years, eventually earning revenues of $50 billion annually, enough to make it one of the top 50 or so largest companies in the United States. The growth of Best Buy was due in part to some very innovative practices. For example, the company created Geek Squad, technicians who are available online, by phone, and in-home, to handle questions, equipment setup, and repairs for customers. As another example, the company established a recycling program, with a goal of collecting 409 pounds of used electronics and appliances from consumers each minute the stores are open. The company’s innovative practices haven’t just focused on retailing and social responsibility, however. In fact, one of Best Buy’s most publicized innovations centers on a practice it developed in 2005 to manage the stress of the approximately 4,000 employees who worked at the corporate headquarters in Richfield, Minnesota.

The name of this practice is called the “Results Only Work Environment,” or ROWE. The practice places complete responsibility for work on the employee who’s assigned to do the work, and so rather than having to spend regular hours at the office, employees can come and go as they please without asking for permission. Job performance is evaluated solely on the basis of whether the necessary results are achieved by employees, not whether they’ve put in “face-time” at the office. The theory is that ROWE gives employees a sense of control over their lives, they’re able to work where and when they’re most productive and least distracted, they’re able to effectively balance work and family demands, and they can avoid having to deal with hassles like commuting and office politics. Although ROWE has been associated with increases in productivity and commitment, the program has some potential drawbacks. Perhaps most obvious, ROWE discourages collaboration and team problem solving. The practice may also decrease employees’ sense of urgency regarding problems faced by the work unit or organization. Finally, there’s the possibility that some employees will simply take advantage of the system—putting forth far less effort than they should.

With these drawbacks in mind, together with the fact that Best Buy has experienced significant problems recently with regard to sales, revenues, and profitability, it should perhaps not be surprising to learn that ROWE has been terminated. Company spokesperson Matt Furman explained the turn of events by noting, “it’s all hands on deck at Best Buy and that means having employees at the office as much as possible to collaborate and connect on ways to improve our business.” CEO Hubert Joly’s attempt to turn around Best Buy has involved both cost savings and fundamental changes in the way it does business, and this transformation has created significant challenges for company employees. Joly feels that ROWE is flawed and that best way to get the type of effort necessary to meet these challenges is for employees to be at work and feel “disposable rather than indispensable.”

What do the comments of the Best Buy CEO and company spokesperson reveal about their beliefs regarding employee stress and the effect it has on employee and organizational outcomes? In what ways are their beliefs justified and unjustified?

Answer rating: 100% (QA)

RSs BB used to follow ROWE Results only work environment wherein the employees are given the choice ... View the full answer