Whole Foods Case Study Questions

Organizational Behavior

Student’s name

Institutional Affiliation

Organizational Behavior

John Mackey is a transformational leader. He has managed to develop a one store grocery store into a multi-billion corporation, in an industry that is characterized by not so attractive profits. In doing so, he has merged with Clarksville Natural Groceries, and has also acquired other natural food chains. This has seen him employ more employees and also increased the number of stores in the country which has increased their profits. He has also ensured that his company works to provide high quality products, rather than cheap ones. Whole foods markets, under his leadership has also received numerous awards, in recognition of the employee friendly approach that the company uses. He only accepts $1 in salary per annum, donating the other amount to charitable courses. Considering this, it can be safely concluded that John Mackey is truly a transformational leader (Humphrey & Harbin, 2010).

Open communication is greatly used in Mackey’s company, and it has been of great help. Other companies can also adopt this method of communication since it has a lot of benefits. Open communication allows employees to freely share opinions, concerns and views in company matters. This makes the employees feel motivated as well as engaged in overall functions in the company. Employees tend to be motivated when they are involved in the running and decision making process. This makes them understand and appreciate any changes that are going through the business. If employees are not allowed to share their opinions, they will feel worried in the work place and their commitment as well as loyalty in the workplace will diminish. Open communication comes in handy especially if a business wants to hold on to talented employees. Open communication also enhances feedback in an organization. This aids in the growth and development of the business. This method of communication also makes the employees feel valued. This comes mostly so if the employers allow them to share their opinions and in return give honest views towards the same (Young, Dixon, Windridge & Heney, 2003).

As much as group decision making is generally advisable, whole food companies may make wrong decisions as a result of this decision making technique. In companies, there are people who like to be dominant in each and every place. As a result, these people will dominate in group meetings and also in decision making. This beats the sense of group decision in the first place. When decisions are made by a group, it is difficult for one person to assume responsibility if anything goes wrong. This undermines the company since for a solution to be found, responsibility should be fixed (Davis and Stocker, 1982).

To counter situations where the company may find itself in trouble over the wrong decisions, everybody in the team should be willing to assume responsibility should anything go wrong. Other people I the group should also be encouraged to participate actively in decision making to ensure that those people who want to dominate I all places do not do so when decision making is involved.

Whole Foods has embraced employee friendly means which ensure that they develop successful associate teams. This involves paying their employees more than other companies and also involving them in decision making. They also employ knowledgeable associates. They thus are a competitive advantage to the company since other grocery stores cannot afford the same (Humphrey & Harbin, 2010).

Unionization can occur due to several reasons. Lack of management can be a reason especially if present managers do not connect with the employees. Poor communication by the management may also lead to unionization so that they can use the union influence against their employer (Fiorito 2002).

References

Davis, J. H., Brandstätter, H., & Stocker-Kreichgauer, G. (Eds.). (1982). Group decision making (pp. 27-58). European Association of Experimental Social Psychology by Academic Press.

Fiorito, J. (2002). Human resource management practices and worker desires for union representation. The future of private sector unionism in the United States, 205-226.

Harbin, J. L., & Humphrey, P. (2010). Whole Foods Market, Inc. Journal of Case Research in Business and Economics, 2, 1.

Johnston, J. (2008). The citizen-consumer hybrid: ideological tensions and the case of Whole Foods Market. Theory and Society, 37(3), 229-270.

Young, B., Dixon-Woods, M., Windridge, K. C., & Heney, D. (2003). Managing communication with young people who have a potentially life threatening chronic illness: qualitative study of patients and parents. Bmj, 326(7384), 305.