Chapter 6.1 Discussion: CHAPTER 6.4 The Whole Truth

Chapter 6.
1 Discussion
Chapter 6.2
5 Q’s asked
Chapter 6.3
SITUATIONAL EXERCISE: Think Like A Manager
INSTRUCTION: As a manager how will you handle below situations: Give three recommendations per item and discuss on why you recommended it
(not less than 100-words per recommendation).
1. You are a manager in an assembly line and you have a new subordinate who has constantly been exceeding his daily quota. Because of
his performance you have made his employment status as permanent. But, in the past three months after getting his change-in-employment
status his performance is only average and you know he can do more than what he is contributing right now. What will you do?
2. You are managing a group of accountants and you have noticed that one of your staff is either late or absent twice a week for the last
three-weeks. This staff used to be a perfect attendance awardee before she got married. What will you do?
3. In one of your industry benchmarking overseas you saw a machine that can be used in your production process that could possibly double
your production run. But, six-months after buying and installing the machine you have not seen any improvement in your output. The worst part is
your output dipped by 10% when you applied the new technology. What will you do?
4. You are handling a team of Auditors and you have noticed that every-time that you are not around nothing gets done. What will you do?
5. A co-worker is complaining to you about being upset after learning that another co-worker is being paid more despite the complaining co-
worker being at the company a year longer. What will you do?
CHAPTER 6.4 The Whole Truth

Whole Foods Market (WFM) started out in 1980 as one store with 19 employees in Austin, Texas. Today, with 370 stores and 54,000 employees in
North America and Great Britain, it's the leading natural and organic foods supermarket (and ninth-largest food and drug chain in the United States).
Along the way, it has also gained a considerable reputation as a socially responsible company and a good place to work. WFM's motto is “Whole
Foods, Whole People, Whole Planet,” and its guiding “core value,” according to co-CEO Walter Robb, is “customers first, then team members,
balanced with what's good for other stakeholders…. If I put our mission in simple terms,” Robb continues, “it would be, No. 1, to change the way the
world eats and, No. 2, to create a workplace based on love and respect.”
WFM made Fortune magazine's very first list of the “100 Best Companies to Work For” in 1998 and has routinely appeared on the list ever since.
Observers have acknowledged the company's growth (which means more jobs), salary-cap limits (the top earner gets no more than 19 times the
average full-time salary), and generous health plan. The structure of the company's current health care program, which revolves around high
deductibles and so-called health savings accounts (HSAs), was first proposed in 2003. Under such a plan, an employee (a “team member,” in WFM
parlance) pays a deductible before his or her expenses are covered.
Meanwhile, the employer funds a special account (an HSA) for each employee, who can spend the money to cover health-related expenditures. The
previous WFM plan had covered 100 percent of all expenses, and when some employees complained about the proposed change, the company
decided to put it to a vote. Nearly 90 percent of the workforce went to the polls, with 77 percent voting for the new plan. In 2006, employees voted to
retain the plan, which now carries a deductible of around $1,300; HSAs may go as high as $1,800 (and accrue for future use). The company pays 100
percent of the premiums for eligible employees (about 89 percent of the workforce).
High-deductible plans save money for the employer (the higher the deductible, the lower the premium), and more importantly—at least according to
founder and co-CEO John Mackey—they also make employees more responsible consumers. When the first $1,300 of their medical expenses comes
out of their own pockets (or their own HSAs), he argues, people “start asking how much things cost. Or they get a bill and say, ‘Wow, that's expensive.’
They begin to ask questions. They may not want to go to the emergency room if they wake up with a hangnail in the middle of the night. They may
schedule an appointment now.”
Questions (not less than 100-words per item):

1. How important would benefits like those offered by Whole Foods be to you if you were working there to put yourself through school or to
collect a paycheck while looking for a position in your chosen field?
2. What negative elements do you see in Whole Foods approach to pay and benefits?
3. Why don't more companies use the approach to employee health care pioneered by Whole Foods?

Chapter 6.5 Video
Flight 001
Until the late 1990s, Brad John and John Sencion worked in different areas of New York's fashion industry. Both traveled often
between the United States, Europe, and Japan for work. No matter how many times they began a trip, they spent the days and
hours racing all over town picking up last-minute essentials. By the time they got to the airport, they were sweaty, stressed, and
miserable—not exactly the glamorous existence they envisioned when they got into the fashion industry.
Then, during a flight from New York to Paris in 1998, the weary travelers came up with an idea for a one-stop travel shop targeted at
fashion-forward globetrotters like themselves. They called it Flight 001 and began selling guidebooks, cosmetics, laptop bags,
luggage, electronic gadgets, passport covers, and other consumer products. Flight 001 is now hailed as one of the most exciting
businesses in the industry. In addition to selling useful travel merchandise, the New York-based retailer offers a unique shopping
experience: Flight 001 stores are shaped like airplane fuselages tricked out with retro airport décor and accessories. In the years to
come, the founders expect to be in every major city in the United States, Europe, and Asia.
But as the company embarks on a new five-year plan, the stretch goal of opening as many as thirty new stores in the United States
and overseas is beginning to hit turbulence. Co-founder Brad John is determined to make Flight 001 the international authority on
travel, but ambitious plans will require changes to the company's staffing, merchandising, and financial planning. With all the talk
about expansion and new product lines, it will be increasingly important that Flight 001 not become distracted from what makes it
special in the first place: location, design, and an impeccable product line.
Questions (not less than 100-words per item):

1. Can you describe Brad's motivation in terms of the goal-setting theory of motivation?
2. How does Emily see her job from the standpoint of motivating Flight 001 employees? What motivates her?
3. What are the roles of performance management and individual rewards in a start-up company like Flight 001?

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