Summary of the Case Study
The Container Store, an American store, holds their position for several years at the top of Fortune magazine’s ‘100 Best Companies to Work for’. The company was established in 1978 by Tindell and Garrett Bonne. The structure of the company stores were split into different sections like kitchen, laundry, office with their individual showcase. The company had a fundamental HR philosophy behind their ongoing success. Their philosophy was reflected in their activities and practice used which helped to develop an excellent organizational culture. The company provided huge effort and time to recruit and select employees by HR staffs. The firm spent enough time training its employee. They paid higher salary than other retail stores. The company was committed to provide excellent career opportunity for employees. The managers of the company used to keep constant communication with their employees, play as more team leader than supervisor. Sales at the firm have increased 20–25% each year. On HR measure, the employee turnover rate has averaged 15–25% yearly, compared to the 100% rate common in retail jobs. Obviously, the Container Store has the “right package” that enables its employees to be significant contributors to its success.
General overview of the Company
The Container Store: the original storage and Organization Store
The Container Store established by Kip Tindell (Tindell), Garrett Boone (Boone), and John Mullen in 1978 was a leading storage and organization products retailer in the US. The store offered a range of storage solutions for home and office needs that were aimed at optimizing the customer's space as well as time.
The structure of the company stores were split into different sections like kitchen, laundry, office with their individual showcase. The company has 37 stores across the US and it was awarded as “the best company to work for” for seven consecutive years by Fortune magazine. (Case Study) The company maintained a consistent 20-25% annual sales growth rate since its inception...
HRM philosophy: the Container Store
Company has a fundamental philosophy that to satisfy customer, employees must be satisfied at the first place. Someone needs to play as role model to show them how to take care of each other specially their customers. It means company understands job satisfaction of their employees. The main focus of Strategic Human Resource Management of the company is to link their employees with organization itself. The main strategy that is used here it to integrate organization’s main goal and with its worker.
Discuss how the culture of the Container Store is “made” by the HR activities and practice used.
Organizational culture is a pattern of shared values and beliefs that provides organizational members meaning and rules for behaviour. Creating a culture that values people highly enables some corporations to successfully attract and retain employees.
Container Store’s culture:
The Container Store had a culture among themselves and their employees which was made by HR activities and practice used. HR activities and practice plays an important role in organizational culture. Such strong activities and practice made organizational culture effective towards organizational overall strategy. Container Store was spending 18% of its revenue on staff expenditure. The Container Store had highly selective recruitment policy. The main recruitment policy was ‘hire for fit'. Container Store was not compromising with it recruitment procedure. Container Store was keeping position vacant for two months until they won't find someone suitable for the job as well as the company’s culture and values. The procedure involves couple of stages starts from telephonic screening, group interview and few more interview that last for about three hours. Container Store also preferred to recruit...
References: 1. Robert L. Mathis & Jhon H. Jackson, Human resource Management, Thompson Asia Private Ltd, Singapore, 10th ed., 2008.
2. Laurie J. Mullins, Management & organizational behavior, 9th ed., 2007.
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