1. What role, if any, does McGregor’s Theory Y play at Patagonia? Explain.
First, McGregor’s Theory Y is a modern and positive set of assumptions about people. McGregor believed managers could accomplish more through others by viewing them as self-energized , committed, responsible, and creative beings(Kreitner and Kinicki,2010, pg.8). According to the passage, “Patagonia’s philosophy is the handiwork of Chouinard....He helped pioneer modern rock-climbing techniques in his youth and now prowls the globe in search of outdoor adventures and product ideas...or advocating radical changes in the way Americans do business.” I conclude that the founder’s ability to do new things and being committed to the business solely gives realm to McGregor’s Theory Y. It gives the employees hope and encouragement that the company will be long running. Another role of Theory Y, is its notion that work is as natural as play if the conditions are favorable (Wertheim, Edward,2004, pg.3). This can be found in the excerpt at, “It offers an on-site day-care center at its headquarters and full medical benefits...Chouinard himself urges people to hit the beach.” These two examples of Theory Y would make me want to work for this company.
2. How does Patagonia build human and social capital?
Patagonia builds both human and social capital in numerous ways, which is what gives it so much success. Human capital is the productive potential of one’s knowledge and actions where as social capital is the productive potential of strong, trusting, and cooperative relationships (Kreitner and Kinicki,2010, pg.14). Patagonia combines both social and human capital for the greater good. An example of human capital is in which there is a program that allows employees to take off up to two months at full pay and work for environmental groups. Another example is where the company pays 50% of an employee’s college expenses. Both of these examples show that the...