Herman Miller: Role Model in Employee and Environmental Relations
Case Summary and Questions for debate
• The company had been a model for almost 70 years – until the 1990’s
EMPLOYEE RELATIONS
• Used as example of superb employee relations in business text books like o A Passion for Excellence o The 100 Best Companies to Work For in America
• Interesting point of how the founder named the company after his father-in-law, giving honor to him who supported the business both in financial start-up and via family
• The DuPree family maintained a paternalistic relationship with their employees
• DuPree family brought their devout, faith influenced values to the company in various ways: o Kind, gentle tones with employee communications o Profit sharing and employee incentive programs (before they were popular) o Participative management methods o Silver parachutes for those who might lose their jobs o Considered the employees as vice presidents o Salary of top executives were not more that 20 times the average wage of the line worker o Evaluations given to and by employees every six months
• Results and evidence of Excellent Employee Relations include o Loyal workforce o Development and movement from within the company o Gifted design teams o Commitment to doing what was right (rather than what was best)
ENVIRONMENTAL RELATIONS
• Stopped using two species of trees for their rosewood signature piece “Eames chair” when it was discovered they came from vunerable rain forests
• 90% cut in trash hauled to landfills
• Built $11 million waste-to-energy heating and cooling plant resulting in $750,000 annual savings in fuel and landfill costs
• Ceased use of Styrofoam cups and distributed 5,000 mugs to compe...
... middle of paper ...
... – most organizations were still very structured by hierarchy
b. Profit sharing incentives – gotta love that!
c. Opportunities for advancement
d. Allowing employees to feel valued and part of team
e. Job security
5. Do these types of policies add to costs in an unacceptable level? – if these areas are benefiting the company enough, they can always find other efficient manners of cost-cutting and still producing quality! A few really good loyal workers with great benefits can get a lot more work done in less time than many who are out for themselves and really have not concern for the good of the company
6. Were competitors too lean and mean?
7. Was there a better way to handle the inevitable ‘letting go’ of some employees?
8. Were there alternatives? – there are almost always alternatives
a. Cutting costs in other areas?
b. Increasing advertising?
c. Expanding market?
Commonly associated with pay for employees, benefits is the second biggest obstacle for management. Like Volkswagen starts employees off at the basic pay the unions would achieve, a similar benefits program should be implemented (Greenhouse, 2014). The passing of the Affordable Health Care Act has made it possible for many citizens to receive coverage but it is basic at best. GMFC should create a plan based off of the Health Care Act and unionized plans and allow for extras to be added on. This allows for employees to pick the benefits package that works best for them.
The second part, “Why It Happened: Eighty-Five Years,” explains the origins of the firm and its founding and operating principles, and it sets the basics for why several deviations from these founding principles eventually led the firm astray.
In the nineteenth century, when I hear the word Captain of Industry the name Andrew Carnegie comes to mind. Rather than being a Robber Baron, I believe Carnegie deserves the title Captain of Industry for many reasons. One reason would be that he came from being a poor young boy in Scotland, to being one of the richest men in America years after he and his family immigrated to the United States of America. The next reason would be that he provided many of his workers high earnings of money as well as how he funded certain public places. The third reason for his title of a Captain of Industry is that he surrounded himself around the right people and worked very hard with his jobs, using very wise tactics to get his work done.
is a historical accident because during World War II employers could not raise wages; so,
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
...gree and believe that they could get real results if everyone would consistently apply the company’s principles. I have learned personally in the business world consistency means a lot, all employees should have the same consequences. By letting go employees, managers and executives shows that the rules apply to all levels. It will cause everyone involved to have more respect for the company even if they don’t agree with the decision.
Offering employee benefits is one way a company must competes in today’s marketplace to retain old employees and attracts new ones. These benefit packages may range from offering basic health insurance to additional discretionary and perk benefits such as vacation and retirement packages. Benefit packages are often a large portion of employee costs and Federal mandates require an employer to carry and offer certain benefits even if they offer nothing else. Federally required employee benefits make up approximately a quarter of the costs associated with employer offered benefit packages. Some of these mandated benefits include Social Security, Worker’s Compensation Insurance, and the Family Medical Leave Act.
Their close friend designed their well known logo. These men never thought of this small company to get large, they just thought of it as a small coffee shop. Out of all three men, Siegel was the only one that worked at it full time. The men depended on a man named Alfred Peet for their coffee beans but soon then started their own blends of coffee beans. Within a year of opening the first store, they were able to open a second store.
Many employees when looking for a job or deciding whether to stay with their current employment often considers the employee benefits the company offers.
We can see that piecework is a direct indicator of the employees output. In addition, the year end bonus is linked with the profit the company earns. The guaranteed employment provides employees the base line for their life, so they don’t have to be worried about getting fired or searching for other jobs, which makes them more concentrated on their jobs. From the combination of these three components, employees can have confidence to work and to understand that their performance will be measured properly.
Layoffs are one means by which an organization can reduce expenses with the intent of improving its bottom line. Despite being typically performed as a last resort, layoffs often have a negative impact on the remaining workforce. As a manager, there are numerous areas for concern in managing the workforce going forward. The human costs related to downsizing are “immense and far-reaching” with one of the most profound being survivor syndrome according to Hanson (2015, p. 187). Also known as survivor’s guilt, this condition relates to the emotions felt by those still employed and some of the effects include decreased motivation, moral, and job satisfaction, as well as an increased proclivity to search for other employment. This volunteer turnover being another grave concern for managers, and retention of the remaining workforce is usually dependent on their existing perception of the organization and its culture (Sitlington & Marshall, 2011). Also relayed by
The employees were having issues and company intermingling had proven to not change without an intervention unless the workers take things into their own hands. Acknowledgements to some valiant employees, where a union was discussed and the idea came to life (Featherstone, 2012).
from it both by being cost effective and efficient in the future. Once policy are set in stone and the employees are aware and have a thorough understanding there should be no excuse for any misleading policies.
that made the company one of the most recognized companies of the world. The dynamic
Peters, T. J. & Waterman, R. H. (1982). In Search of Excellence: Lessons from America’s Best-Run Companies. New York: Harper &