Chapter 10: Motivating Employees and Building Self Managed Teams VIDEO: Working for the Best: The Container Store Time: 11 minutes Learning Objectives 1. To understand the contribution that a highly motivated work force makes to exceptional organizational performance. 2. To see the practical application of Maslow’s Hierarchy of Needs, Theory Y, and Herzberg’s Theory by managers to successfully motivate their employees. 3. To see examples of open communication in an organization and understand its importance to the motivation of employees. Key People and Companies Garrett Boone, co-founder and Chairman of the Board and Kip Tindell, co-founder and CEO Overview This video features The Container Store, a national retailer headquartered in Dallas, Texas that was voted the best company to work for in America twice and was runner-up two other times. The company’s two co-founders discuss the management philosophy, human resources strategy, and motivational techniques that have contributed to their company’s phenomenal success. Emphasis is placed upon the importance of strong organizational culture, empowerment of employees, open communication, cross training, and a commitment to exceptional customer service. The video also provides a brief explanation of the majority of motivational theories discussed in the chapter and cites examples illustrating their practical application by The Container Store’s managers. The benefits of a highly motivated workforce have included an exceptionally low turnover rate and promotion of many part-timers attempting to reach their full potential to full time positions. The video closes by emphasizing that good managers do not rely upon a single motivational theory. Rather, they tailor the motivational efforts used to the needs of their employees and their workplace. 29 Preparing Students Before the Video Encourage students to recall a situation during which they work hard to accomplish a task or reach a goal, and then ask them to identify the factors that motivated them to do so. Similarly, encourage students to recall a situation in which they felt frustrated by their work environment and ask what factors contributed to those feelings. Ask students if they think managers should rely primarily upon money as a motivator, and encourage them to explain their response. Also, ask students why they think that managers and others in positions of authority are often reluctant to communicate openly. Major Issues in the Case The Container Store’s strong organizational performance can, in part, be attributed to its highly motivated work force. The management strategies that foster the development and retention of such a high achieving work force are examined. The organization’s leaders do not rely upon a single motivational theory. Rather, elements from several theorists, including Maslow, Herzberg, and MacGregor, are effectively combined to build and maintain a strong corporate culture that rests upon hiring and empowering exceptional employees. Other Discussion Questions and Answers: 1. Consider the Container Store’s human resources strategy. Why is it so important to top management that the company they only hire “great people”? The Container Store is very selective and hires only those applicants that they consider to be the ‘best’. This selective hiring strategy allows the company to amass a group of employees possessing personal values and characteristics consistent with its corporate culture. A close fit between individual and corporate values helps to ensure that employees will feel comfortable at the company, embrace its practices and policies, and remain with the company for a long period of time. 2. Why are turnover rates lower at the Container Store than at other comparable retail establishments? The Container Store works very hard to meet the various needs of its employees, as defined by Maslow’s Hierarchy of Needs. According to Maslow, each of us has the need to self-actualize. The majority of employees seize the opportunity provided by the company to fulfill their greatest potential by remaining with the company for the long term and working their way up the corporate ladder. 3. Why has the Container Store been able to provide a level of customer service that exceeds that of most other retailers? 30 Exceptional customer service is one of the company’s key goals. Open communication between top managers and employees helps both to fully understand that goal and work together to achieve it. At the Container Store, the concept of open communication extends downward to the team level, where peers are encouraged to share their knowledge with each other, regardless of position. This allows team members to be as responsive as possible to customer needs. 31