Free Essay

Theory Y and Whole Foods

In:

Submitted By KJACKLPN
Words 520
Pages 3
In 1960, Douglas McGregor wrote a book and formulated two contrasting assumptions about the importance of work attitudes and behaviors on performance. McGregor theorized that the way employers’ treat and value their employees would determine their actions and values, and drive how they performed on the job (Chertis & Mujtaba, 2014). Theory X was an outdated, pessimistic view and viewed all workers in a negative way. Theory Y, on the other hand, was a more modern, positive assumption. McGregor believed that a manager could accomplish more through others by viewing them as self-energized, committed, responsible and creative beings (Kreitner & Kinicki, p. 9).

McGregor’s Theory Y plays a role in the way that John Mackey, co-founder and co-CEO of Whole Food Markets runs his business. McGregor theorized that people would become committed to organizational objectives if they were rewarded for doing so. Mackey believes similarly. He believes that it is the manager’s job to seek out and hire the most appropriate person for the job. He believes that if you train them well that they will be happy in the workplace and will provide better customer service as a result. He believes that happy employees make for happy customers and happy customers make referrals to other people, which make happy investors (Kreitner & Kinicki, p. 30).

Mackey didn’t emulate McGregor’s Theory Y completely. He came up with his own philosophy and called it conscious capitalism (Chertis & Muitaba, 2014). His theory is based on purpose rather than profit (Sacks, 2009). Mackey believes it is important to factor in the needs of all that are involved with the business: employees, customers, shareholders, suppliers, the community and even the environment (Sacks, 2009). Mackey has implemented generous health and retirement benefits for his employees besides above average pay. Non-executive employees hold 96% of the stock, 5% of after-tax profits is donated to charity each year, and no executive can make more than 19 times the employee average (Sacks, 2009).
Theory Y and John Mackey’s management style go hand and hand. He values his employees and that drives how they perform on the job. He looks at the big picture and not just how to make a profit. Mackey takes pride in the fact that his company sells good things, promotes health and wellness, and treats its employees, shareholders, customers and suppliers good, and can spread goodness simply by thriving (Paumgarten, 2010). Mackey must be doing something to please his employees, because according to Fortune’s 100 Best Companies to Work for 2015, Whole Foods ranks number 55 on the list (Moskowitz, et al., 2015). References

Cheretis, D., & Mujtaba, B. G. (2014). Maximizing Long-Term Value and Conscious Capitalism at Whole Foods. SAM Advanced Management Journal (07497075), 79(3), 4-16.

Kreitner, R. & Kinicki, A. (2013). Organizational Behavior (10th ed.). New York: McGraw-Hill.

Moskowitz, M., Levering, R., Bartulski, E., Frauenheim, E., Gupta, S., Hackett, R., & Shanker, D. (2015). The 100 Best Companies to Work For. Fortune, 171(4), 140-154.

Paumgarten, N. (2010). FOOD FIGHTER. New Yorker, 85(43), 36-47.

Sacks, D. (2009) The Miracle Worker. Fast Company. (141), 82-89.

Similar Documents

Premium Essay

Whole Foods

...Whole Foods markets are the world’s leader in natural and organic foods with stores in North America and United Kingdom .Their mission is Whole Foods-Whole People- Whole Planet. Whole Food stands for searching for the highest quality and natural foods possible. Whole People mean that the people their hire are passionate about healthy food. Whole Planet means they are committed to helping take care of the world around us. McGregor’s Theory Y is one of the two theories contrasting assumptions about human nature. Theory X assumptions were negative and pessimistic; McGregor felt this was the typical behavior of how managers were perceived by employees. Theory Y was a modern and positive set of assumptions about people. McGregor believed that managers could accomplish more through others by viewing themselves as self-energized committed, responsible and creative beings (Kreitner & Kinicki, p9). McGregor’s Theory Y plays a very important role at Whole Foods. In the table on page 9 number 3 under the Theory Y column states that people generally become committed to organizational objectives if there are rewarded for doing so .John Mackey the CEO of Whole Foods states that they want their employees to be happy because happy employees make happy customers and happy customers will refer people to the place of business there for bringing more customers (Kreitner & Kinicki, p30). This case brings the profile of the 21st century manager to life by implementing many if not all of the items...

Words: 555 - Pages: 3

Free Essay

Organizational Behavior at Whole Foods

...Organizational Behavior at Whole Foods Introduction This paper will discuss the organizational behavior concepts that relate to Whole Foods. These concepts include Theory X and Theory Y, human and social capital, the profile of the 21st century manger, Carroll’s Global Corporate Social Responsibility Pyramid and the seven moral principles. Whole Foods Market is a supermarket chain that functions through several completely maintained divisions. The supermarkets are located in the US, Canada and the UK. It is headquartered in Austin, Texas and employed about 72,700 people as of September 30, 2012, of whom 16,400 were part-time employees and 3,200 were seasonal employees (“Company Profile”, 2013). McGregor’s Theory Y Role at Whole Foods In 1960, Douglas McGregor wrote The Human Side of Enterprise, which framed two sets of molds about human nature. The first one is Theory X is unenthusiastic and negative. It assumptions people don’t like working and must be forced to do their work, avoid responsibility and have little motivation. As Kopelman and et al. (2012) stated “the manager who holds Theory X beliefs may unwittingly engineer a low level of employee motivation and (ironically) lament to a colleague that you can't get good workers nowadays” (pg. 451). Theory Y is the counterpart. In this Theory, mangers assume employees can be self-motivated, committed, responsible and creative workers. Whole Foods hires people that are well-trained who flourish in their workplace...

Words: 1293 - Pages: 6

Premium Essay

Belief and Support of Human Capital: Case Study Analysis of Whole Foods

...2013 Belief and Support of Human Capital: Case Study Analysis of Whole Foods What role, if any, does McGregor’s Theory Y play at Whole Foods? Explain? The primary focus of this case study analysis shall be to examine the methods of Whole Food’s distinctive approach and development to the implementation of creative management strategies and how they can continue to successfully help them to maintain growth in their company. The underscoring premise of McGregor’s Theory Y primarily rest on the assumption that that the role of management is develop the potential of their employees and help them to realize their potential to meet the common goals of their organization (Steward, 2010). With this underlining thought in mind McGregor’s Y Theory plays an intricate and crucial role at Whole Foods. According to our textbook, Organizational Behavior, by Robert Kreitner and Angelo Kinicki, and the company’s primary mission directives, Whole Foods goal is for upper management to share the responsibility with their frontline managers in the development of a successful work environment (Kreitner & Kinicki, 2013, p. 30). Whole foods promotes their employee teams to be self-directed and take initiative and responsibility for operating together for the benefit of their entire business organization. To this end John Mackey, Cofounder and Co-CEO of Whole Foods Market promotes through the application of McGregor’s Theory Y the happiness and growth of all employees within their organization...

Words: 1242 - Pages: 5

Premium Essay

Whole Foods

...Whole foods wants to hire leaders who are conscious leaders (Core Values). They want to be there to serve the company, other employees, and themselves. This seems to be what McGregor's Theory Y is all about. The text says that theory y employees are committed, energized, and responsible(Kreitner& Kinicki,2013). They also want to serve the organization as well as the organizations purpose. Happy employees results in happy customers. At Whole Foods, I am sure that need creative management so that employees do not become unhappy or feels “stuck” at work. If employees feel as if they are part of a company, they are more likely to be happy. John Mackey’s follows McGregor’s theory y concept because his employees are happy and provide top notch customer service. Theory y managers are easier to teach than theory x managers. Whole Foods prides itself in employee training and keeping them up to date on current issues and technologies that better the company. Whole Foods builds human and social capital in several different ways. Like most companies, they hire and train their employees to be knowledgeable in a specific product or service area. Team members then work directly with team leaders to make decisions regarding their specific area as well as contributing to store decisions as well (Core Values). When it comes to social capital, Whole Foods focuses on sustainable agriculture. It is emphasized to the point that whole foods launched a loan program to help local independent producers...

Words: 1204 - Pages: 5

Free Essay

Whole Foods Case Study

...Whole Foods has been able to utilize the positive assumptions about a person’s work ethic to their advantage. McGregor’s Theory Y tells us that "Managers could accomplish more through others by viewing them as self-energized, committed, responsible, and creative beings.” (Kreitner and Kinicki, 9) By implementing a workplace that is built within the values of Theory Y Whole Foods motivates, engages and empowers their employees, creating a more positive workplace, and happier employees. Whole Foods builds its human capital by taking the time to select people who they feel will be a "good fit" for the company as a whole, and looks beyond ability and skill to do so. Social Capital is developed by creating a workplace that encourages happy employees. John Mackey has been quoted as saying “when people are really happy with their jobs, they provide much higher degrees of service to the customers. Happy team members result in happy customers”. This results in a positive chain reaction that leads to more business, more money. (Kreitner & Kinicki, 2013, p. 30) The profile of a 21st century manager can be seen throughout the Whole Foods organization. Managers are seen less as people who give orders and more of team members, coaches and advocates. They understand that in their industry their primary resource is their human capital, and work to keep this resources preforming at its best by investing in quality training and going to great lengths to make sure that their employees are happy...

Words: 546 - Pages: 3

Premium Essay

Mcgregor's Theory Y

...Discussion Questions: Chapter 1: 1) What role, if any, does McGregor’s Theory Y play at Whole Foods? Explain. By definition, Theory Y adopts the notion of happy employees, whom are creative, self motivated, and relish operating with grander responsibilities than the norm. Which is why I would consider the role of Whole Foods to fall in the second theory of McGregor’s theory Y. Mainly due in part to what Mackey said himself, “I Think business enterprises are like any other communities. They can aspire to the highest values that have inspired humans throughout time. You can use different value models.” Meaning, employees take responsibility, are self motivated, can operate with little to know direction, and view the notion of work as a natural part of life, and have the ability to creatively solve problems. 2) How does Whole Foods build human and social capital? According to Mackey, it is stated that he understood the hiring process, and how quintessential it is for a company to ensure they are hiring the right people for the job. It has been proven many times over, how by hiring suitable employees, the level of enjoyment in their job performance goes up, and thus their view of where they stand with the company equally rises as well. Hence, why they would prove to be an outstanding investment to the company. Furthermore, by ensuring a comfortable work environment for all, the social aspect comes natural. 3) How does this case bring the profile of the 21st Century...

Words: 657 - Pages: 3

Premium Essay

Core Values and Strategy

...Core Values and Strategy, Organizational Behavior and John Mackey CEO at Whole Foods Market 2013 A Case Study J H W State College This paper was prepared for Organizational Behavior September Semester, taught By Professor Core Values and Strategy, Organizational Behavior and John Mackey CEO at Whole Foods Market 2013 Introduction This case study research investigation will evaluate the organizational behavior theories and John Mackey’s Management concepts of Core Values and Strategy “Conscious Capitalism” approach at Whole Foods Market. The five organizational behavior theories that were chosen for this study are; Theory X/Y , human and social capital, the profile of the 21st century manager, Carroll’s Global Corporate Social Responsibility Pyramid, and the seven moral principles. Whole Foods Market was founded in Austin, Texas, by four businesspeople that decided the natural foods industry was ready for a supermarket. The original Whole Foods Market opened in 1980 with a staff of only 19 people and became an overnight success. Most of the success was attribute to the quality standards, a devotion to community and environmental responsiveness, a healthy growth model and highly-regarded employment practices. What Role Does McGregor’s Theory Y Play at Whole Foods? Theory Y believes employees are proficient in setting goals on their own; they can do it with little to no guidance from others. They are responsible, willing to take on new...

Words: 1505 - Pages: 7

Free Essay

Mcgregor’s Theory Y

...QUESTIONS FOR DISCUSSION 1. What role, if any, does McGregor’s Theory Y play at Whole Foods? Explain. El rol esencial que debe realizar es saber cómo satisfacer al cliente mediante su equipo de empleados para de esa manera atenderlos de una manera tratable. 2. How does Whole Foods build human and social capital? De la manera que da incentivos a fomentar una mejor propuesta para buscar el cambio a través del desempeño laboral. Y respecto al capital social se tiene visiones y logros compartidos. 3. How does this case bring the profile of the 21 st-century manager (table 1-3) to life? Explain. En la actualidad en que vivimos, el jefe del siglo 21 ya no es una persona controlador o dominante como era antes, se puede decir que ahora el jefe estimula la participación de su trabajador como haciéndole reconocimientos por su buen rendimiento laboral. 4. Where would you locate Whole foods on Carroll’s global corporate social responsibility pyramid in Figure 1-3? Explain Un ejemplo de responsabilidad filantrópica es Wong, el grupo Cencosud, el cual aplica este tipo de responsabilidad con sus empleados, ellos generan más ganancias que pérdidas gracias a que aplican lo mismo que Mackey. 5. Which of the seven moral principles in table 1-4 appear to be in force at Whole foods? Explain. El cuarto principio moral es el más indicado donde dice: Lealtad: Promesas, contratos y compromisos deben ser honrados. La lealtad incluye la fidelidad,...

Words: 540 - Pages: 3

Premium Essay

Concumer Groups

...in an effort to hold businesses accountable for meeting social and environmental standards.” For the purpose of this project this author has selected to conduct further research on the Generation Y consumer group. Generation Y is also known as Millennials and they are the generational cohort that follows Generation X and have birth years ranging from the early 1980’s to early 2000’s. According to Strauss and Howe (2000), they note “that each generation has common characteristics that give it a specific character, with four basic generational archetypes, repeating in a cycle. According to their theory, they predicted Millennials will become more like the "civic-minded" G.I. generation with a strong sense of community both local and global.” This general trait postulates that this consumer group is one of the most influential and the impacts of their reach can be seen in the dramatic shift to more social media such as Facebook, Twitter and LinkedIn, as this group detached from institutions and more involved in network of friends or colleagues. This group represents nearly 80 million and is ethnically diverse. This group also has the highest level of education compared to any other group. In understanding the demographics of this consumer group, it must be noted that Generation Y or Millenials were the first to be raised with computers and in their homes, enjoyed cable television...

Words: 1162 - Pages: 5

Premium Essay

Mutiny on the Bounty

...for transplanting in the West Indies for the purpose of producing food for the slaves owned by the English nobility. There where multiple reasons for the mutiny, however the main cause was the leadership style of Captain Bligh. He was viewed as a tyrant on the ship, acting more of a dictator than a leader. The second-in-command, Fletcher Christian had a participative or facilitator type leadership style that caused conflict. The different styles often caused strife among the two men, ultimately leading to the munity. (The Bounty 1984) This paper discusses the comparison and contract of Captain Bligh and Fletcher Christian leadership styles. The Leaders The two main characters of the voyage are Captain Bligh and his second –in-command, Fletcher Christian. The trip to the Tahiti was one of difficulty in regards to overcrowding, lack of food or water; also what the crew considers the tranny of Captain Bligh. The stay on the island was beneficial to the crew as they enjoyed the tropics and became friendly with the natives, especially with the women. Upon the announcement of the ship’s departure for the travel to the West Indies the crew realized the conditions would be the same or worse on the trip. They did not want to leave the comforts of the Tahiti. (The Bounty, 1984) The crew’s fears became true with the overcrowding and Captain Bligh accusations and punishment due to the alleged stealing of food. The continued deterioration of conditions...

Words: 1179 - Pages: 5

Premium Essay

Foods Inc.

...Whole Foods is a large international organization with thousands of employees. In the case study, the co-CEO John Mackey explained that the purpose of the organization was a heroic one. He explained that its highest purpose was “try and change and improve the world.” In order to accomplish that goal, he and the team members need to work in coordination to accomplish that goal. So McGregor's Theory Y in Organizational Behavior is prevalent in the way they do business. Management at whole foods is really just the mechanism to help find and bring people into the organization that assist the organization in achieving this goal. He recognizes that employees that are engaged, have the ability to make decisions and are able to do so effectively, and ultimately translates into conscientious customer service are ultimately more happy. When the staff is happy, their level of service is better, and then customers are happy, which equates to more revenue, and more profits (presumably) and in turn results in happy shareholders. It is a perpetuating evolution in business. True efficacy of this theory would dictate that the management team has the versatility to hire in the way they want, and to leverage resources that give them the greatest opportunity to achieve the goal of finding the right people but that subject was not broached in the case study. Whole Foods recognizes that the success of their organization and its ability to achieve profitability and shareholder value is...

Words: 1037 - Pages: 5

Free Essay

Business

...they believe that “if you look after your staff they will look after your customers.” Introduction Introduction Marriott is the 71st best place to work in the world this is mainly because of the massive discount and free facility use given to staff. For example staff are given a campus card witch they can use in all Marriot hotels anywhere in the world witch will give them 25% off of food and beverages, 10% off of accommodation and free use of the gym and luxury lounges. Staff are also entitle to 50% off of the five most local hotels to where they live and work. Marriott is the 71st best place to work in the world this is mainly because of the massive discount and free facility use given to staff. For example staff are given a campus card witch they can use in all Marriot hotels anywhere in the world witch will give them 25% off of food and beverages, 10% off of accommodation and free use of the gym and luxury lounges. Staff are also entitle to 50% off of the five most local hotels to where they live and work. What Other Motivation Techniques Do They Use? Bill Marriott Jr’s theory of looking after his staff seems to be working as while searching on the internet I have not found anything but good news about their motivation but I found a few things they could improve around the...

Words: 2456 - Pages: 10

Premium Essay

Motivation

...Final Report MGT321 (Organizational Behavior) Section: 10 Chapter: 06 Motivation Concepts Prepared By: Prepared For: 1. Nusrat Sababa Shamma ID: 083425030 Md Mujibul Hoque ………………………………. 2. Nazratun Sururan Shahrin ID: 0910029030 Faculty of ………………………………. School of Business 3. Jesmin Jerin ID: 0910036030 ………………………………. 4. Badrun Nahar ID: 0910150030 ……………………………….. Students of School of Business North South University August 8th, 2010 Md. Mujibul Hoque (MJB) Faculty: School of Business North South University Subject: Submission of a report. Dear Sir, With due regards and respect we state that we are very thankful to you as you assigned us this report on ‘‘Motivation Concepts”. It is a great opportunity for us to acquire theoretical and practical knowledge about motivation concepts of the garments sector of Bangladesh. We have tried our best to gather what we believe to be the most complete information available. Your kind acceptance and any type of appreciation would surely inspire us. We would always be available and ready to explain further any of the context of the whenever asked. Sincerely yours, Nusrat Sababa Shamma ...

Words: 6378 - Pages: 26

Premium Essay

Marshall Plant

...and the refinery. Marshall’s plant is a computerized state-of-art plant and most of the work needs to just be monitoring, maintenance, cleanup, and troubleshooting. The wet mill and refinery has about seventy five worker for each 12 hour shift. There are also about thirty employees who work in the office. It states that about 2 years ago Marshall instituted a team management system to enhance productivity in the plant and improve worker morale. They made them have two different types of teams; first teams came on a weekly basis and talked about how improving the plants work process in their own portion of the plant. Within the second team was the “Marshall team” who met on a monthly basis to talk about crisis and decisions of the whole plant. Each team member on the work team elected a member to join the marshal team to put their input into the higher hands. Management started to be concerned about the people who did not participate in the tram program. There were three kinds of employee not taking part of the team meetings. Ones who said there are too many meeting and had too much busy work, the second group who they have to deal with so much of their own work situations, third group who stated no matter what they said they do not believe it was going to get listened too. The problem of the Marshall’s is that they had one person in the team who never got heard and the management just listens but still did what they want. Marshall wants the team management to actually...

Words: 1726 - Pages: 7

Premium Essay

Effects Of Leadership Theories

...for a manager to understand the basic needs of employees, peers and his or her superiors. In this essay, I would like to introduce a variety of motivational theories, and to analyze the relationship between them and the management of motivation based on market research. In addition, this essay will also explain the effects of leadership styles on motivation. Motivational theories in business There are a series of motivation theories, which are helpful for a manager to manage the business. As if a manager knows different needs of subordinates,...

Words: 1663 - Pages: 7