Case Study Ch 1

Topics: John Mackey, Discrimination, Capital Pages: 5 (1542 words) Published: May 2, 2013
Organizational Behavior
Module 1 – Written Assignment
OB in Action Case Study
In the case study about Whole Foods Markets, it talks about their core principles explained by their Cofounder and Co-CEO, John Mackey. He also explains what capitalism is and how it flourished. The basic principles that helped capitalism flourished is, property rights. People have the ability to trade their property to whomever they want. Another principle of capitalism is the rule of law. Laws and regulations should be well understood so that you can factor them into your business decisions. Business should also be conscious of their higher purpose and not just worried about maximizing their profits and shareholder value. Their second core principle explains that you have to recognize the stakeholder model. Customers, employees, investors, suppliers, larger communities and the environment are all interdependent. You should operate your business in a way that it’s not a zero-sum game. The third principle is about conscious leadership. Leadership should identify their accomplishment by the accomplishments of the organization and they’re trying to serve the organization and its purpose. Their fourth and final principle ties in all their other principles. Having conscious leadership will help create conscious employees that will help the organization fulfill its higher purpose.

He also explains that Whole Foods core principles and where they come from. He believes that the business enterprises are like any other community. He believes that they can aspire to the highest values that inspire humans. He also goes on to say that Whole Foods’ highest purpose is a historic one that animates him and what animates the company, “try to change and improve our world”.

John Mackey continues to talk about the second principle of conscious capitalism and Whole Foods’ purpose. It seems to be human nature to assume that if one side is winning another has to be losing but that doesn’t always have to be the case. He give an example of management makes sure that they hire good people that they are well trained, and they flourish in the workplace. He has found that happy team members results in happy customers. When customers are happy they do more business and become advocates for the company. That means investors are happy and it’s a win-win strategy. You can also expand this to your suppliers and the communities where you do business. 1) What role, if any, does McGregor’s Theory Y play at Whole Foods? Explain. I think McGregor’s Theory Y plays a big role at Whole Foods. They believe that if their employees are happy, you can see it in their work and that would equal to happy customers and also getting their employees committed to the company. 2) How does Whole Foods build human and social capital?

Human capital is the productive potential of an individual’s knowledge and actions. Whole Foods builds human capital by believing that all their employees have great potential to excel. So they invest in their employees training and how they are being managed. Social capital is productive potential resulting from strong relationships, goodwill, trust, and cooperative effort. The way they build on social capital is by conscious leadership, where leaders identify their own accomplishments by their employee’s accomplishments. 3) How does this case bring the profile of the 21st century manager to life? Explain. In today’s business, employees are not being looked at internal customers and that is how Whole Foods look at their employees. The leaders are also part of the team and don’t just give commands. They also want feedback. They believe that happy employees make a happy customer which in turn brings back business, a win-win relationship. 4) Where would you locate Whole Foods on Carroll’s global corporate social responsibility pyramid in figure 1-3? Explain. I would place Whole Foods at the top of Carroll’s global corporate social responsibility...
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