The author Tracy Mullen states exactly what all ownerships, supervisors and managers spend time thinking about when it comes to their employee’s, how do we increase morale and productivity? Owning, running and even managing a productive organization is not an easy task to say the least. However to have a productive organization you must have productive employee’s and management staff. Organizational success it is required to implement managerial functions appropriately. How a company is structured can lead to overly productive employees or it can lead to employees whom are ineffective and not trust worthy of your organization. Companies are spending millions of dollars on researching how to hire, train and maintain great employee’s, the flip …show more content…
(Mullen, 2005). Costco preaches to their employee’s how important they are to the extent it is referenced in the code of conduct. Costco has always promoted from within their organization, they have executives and managers who started as stockers. (Costco, 2012). A company that can motivate their employee’s to continue their training and development while moving up the ladder demonstrates that Costco is being managed by individuals whom are displaying excellent leadership skills. Leadership qualities encompass effective communication systems, this helps employees meet objectives (Kapur, 2016). Solid quality leadership will deliver quality production results with better than average morale. A company that can minimize employee turnover, which in turn keeps training and development for basic operating procedures to a minimum, which allows for employee’s to improve, hone and become effective in their production process. This in turns allow for the managers to be more effective in their responsibilities. The article refers to the fact that retailers know that keeping turnover low will reduce overhead costs in the long run. It will become more beneficial if all companies looked at their employee’s like Costco as the company’s most important asset (Costco,
David Dillon has been CEO of the Kroger Co. since 2003 and is the 10th CEO in Kroger’s 130-year history. Joseph B. Hall held the CEO position from 1946 until 1964. Hall started with Kroger as a real estate manager in 1931 and later moved onto merchandising. His accomplishments as CEO was taking Kroger from a collection of 1,430 small, of mom-and-pop style corner stores into a unified chain, introducing advances in private label, product manufacturing and the company’s distinctive blue-and-white logo. Like todays manager, Hall was concerned with developing a close relationship with Kroger’s shoppers. Halls approach to gain the knowledge needed was that he and his fellow executives would actually visit shoppers in their homes to discuss their needs and concerns as part of a program known as “Kroger Calls”. Today Kroger’s CEO can simply utilize data and purchase history stored on a customer’s loyalty card to tailor their marketing strategy (Kroger CEOs, Past and Present, 2012). Halls creation of a modern day supermarket company nearly quadrupled sales to $2.3 billion.
Costco’s business strategy is different from their competitor’s in the wholesale retail industry because their purpose is to keep overhead down and pass the savings to their customers. They do this by choosing not to advertise, sell fewer brands and having an innovative approach by having their own manufacturing facilities for a variety of merchandise. Costco does not market their warehouses and their marketing is through word of mouth from current customers who also must have a membership to shop at Costco. When compared to Walmart Costco sells four brands of toothpaste and Walmart sells sixty brands of toothpaste. Costco can buy more for less from the manufacturer of the four brands of toothpaste and pass the savings on to their customers. Costco’s strategy is to sale a limited number of items because this strategy according to (Lutz, 2013) “increases sales volume and helps drive discounts.” Because of Costco’s profitability in the retail market they have managed to continue to be profitable even in an oppressed economy. Costco’s focus is on high-end customers indicated by some of the brands they carry such as Coach Handbags. Costco offers three different levels of membership and is only open to customers who have a membership. Costco’s philosophy is they do not advertise or markup items more than 15% in order to save their customer’s money. These practices lowers the overhead costs and continues passing the savings to the customer. Costco is an international company and has (Costco Wholesale Corporation, n.d.) “462 locations in 43 U.S. States & Puerto Rico; 87 locations in nine Canadian provinces; 25 locations in the United Kingdom; 10 locations in Taiwan; 9...
“Culture is not the most important thing. It’s the only thing.” (Gabler, The Magic in the Warehouse, 2016). It has been said that “Costco acts more like a cheerful cult than a hard-driving business.” (Gabler, The Magic in the Warehouse, 2016). Costco hasn’t wavered from their founder’s strategy of promoting within; over 98% of their management started their careers with Costco. This strategy clearly works; the environment is one of family not just coworkers. They are loyal to the brand and motivated to work hard and climb the corporate ladder. Costco sees this as ensuring the future of their values which in turn ensures their
There are two main types of motivation when people work for an organization: intrinsic and extrinsic. From those two, various types of motivation can be derived ranging from achievement and competence motivation to fear motivation. Costco utilizes various motivational techniques and we can analyze them from the traditional, human relations, and human resource approach to determine how Costco is different from most retail store of similar size. From the Human Relations approach, Costco has a low turn-over rate even with the use of part-time workers, the insurance enrollment period is lower than that of other retail stores, and the portion of health care premium paid by the company is over 92% From the traditional view, Costco has a higher wage on average, well above that of minimum wage by at least 40%. From the human resources perspective, Costco chooses most of its management position from its internal workforce.
Key Issues: At the end of 2012, Costco was a successful business; however, there are some issues that they would need to deal with. These issues mainly arise from their previous successful ventures as a warehouse wholesale company. The first issue is that Costco has competitors that can actually be and are a threat to their success. Competition allows a company to improve itself and prove its prowess to its customers. However, when a competitor is able to provide the service at a much reduced cost, problems will arise.
The second thing that Costco needs to know how to pay employees so that they are satisfied with their salary. Costco will want to check on the employees. Costco will have to develop a disciplinary system, if employees get mistaken. Costco encourages employees or employers to become friendlier. They engage with customers fairly, so that they will be satisfied with Costco’s services. If the employees’ attitudes are not good, customers will avoid ...
Being a stocker for Costco Wholesale is a straightforward job. The stocker comes in each morning and presented with the day 's’ tasks. The stocker is monitored throughout the day by the department manager to make sure all tasks are being met in a timely manner. Costco Wholesale works less like a business and more like a well tuned machine. If one cog in a machine is faulty or rusty then the whole system will run inefficiently. Managers need to work with subordinates to further improve productivity. To avoid ineffective managers, managerial candidates should be democratically elected by future subordinates.
Without understand the negative impacts of turnover, a company may be placing itself in a position that will ultimately lead to their demise. We are going to solve our problems and set our company on the path to success, a success that is not only reflected in our bottom line but also our employees’ morale.
There are various ways to increase the productivity of workers in the workplace. Through motivation, rewards and punishment, etc. However, none of those approach will success without the cooperation from the employees. In order to improve the company, manager must be able to allocate their employees to respected field. Professionalism can be achieved with the certain amount of time and dedication. Management cannot ignore the importance of low employees’ turnover. This report will show several benefit from having loyal employees in the company.
Employees perform productive behaviors by engaging in behavior that contributes positively to organizational goals and objectives (Britt & Jex, 2008, para 2). Organizations intend for employees to adapt to behaviors that will positively increase the functioning of the agency. This is done through proper training and efficient skills to complete significant roles. Positive long-term effects result from productive employee behaviors. Employees who contribute to the organization help ease financial burdens and strengthen job performances. The goal for most organizations is to have numerous employees perform duties that require little or no excess supervision. New employees train to self-sustain in an organization through strong leadership and staff recognition. The act of being productive relates with performance and a person’s effectiveness on-the-job. Workers achieving a great deal in a short amount of time are known as efficient workers. ...
It is a well-established reality that organisations in the world today can no longer survive without focusing on their employees. If they have to be at the competitive edge, they have to invest in human resources, and placing their employees on top priority. This notion has led to the strategies that, most organisations are pursuing through employee management. To achieve the optimum performance of employees, organisations must motivate their employees, and engage them in activities that will benefit and help employees in achieving their predetermined goals and objectives. In order to achieve this, it is imperative for managers to set in motion work conditions that will help employees to achieve satisfaction of their job, low turnover and absenteeism rate and promote the environment that promotes the organizational commitments and organizational citizenship behavior.
Different companies and departments of those companies have very different approaches to motivate their workers to being the best they can. For example, I worked for three years at a food Store called Wegmans when I was younger. I worked as a cashier which was interesting to say the least. Managers were always trying to motivate the cashiers to go that much faster, be that much friendlier, and to be more efficient at every opportunity. They took many different approaches to find what would motivate each cashier, which was a difficult task considering how young each cashier was, the large number of us their were, and how different each employee was from the other.
The fact is employee productivity can make or break a firm, and a firm staffed with underperforming employees will inevitably fail regardless of the amount invested into business development. Many firms that do recognize the importance of employee productivity often invest in improving the corporate culture, but overlook investing in the right tools that result in increased productivity.
Leadership is one of the most important facets in organizations. In most cases, leaders act with respect to organizational culture as well as the codes of conduct that determine the manner in which leaders relate with subordinates. Leadership entails the use of effective communication skills to get activities done in the workplace and to ensure that employees shelve their individual interests for the sake of their organizations’ shared targets. It is the role of leaders to ensure that consumers attain high quality products and services by making certain that members of their firms’ workforce are fully motivated to work effectively and utilize resources in an efficient manner (Bass, 22). With the increasingly sophisticated nature of the corporate world, leadership should not be based solely on the desire to control and coordinate affairs within the workplace, but leaders should also exhibit positive examples and continually monitor the changing trends in corporate governance to initiate the most relevant guidelines. Competitiveness can only be attained when leaders are in a position to set the right standards in their firms and coordinate affairs appropriately by understanding consumer and employee needs.
The goal of nearly every company or organization is to motivate those involved towards a unified vision and or goal. When an organization is able to identify the major individual variables that influence work behavior, they can offer an atmosphere that is healthy. Typically, all organizations experience the direct relationship between job satisfaction, and performance. In an effort to maximize the performance of staff within a system it is important to develop an optimal interpersonal chemistry. In order to be most effective, leaders in an organization must have a clear understanding of their employees,