Whole Foods Market has a purpose beyond profits, and even apurpose beyond selling gorgeous vegetables and great cheeses. Thechain of more than 300 health-food stores in the United States,Canada, and the United King-dom seeks to do no less than“contribute to the well-being of people and the planet.” Thismission shapes the selection of merchandise grown organically andsustainably, including fresh produce, meats and fish, and wholegrains, all attractively displayed. It also shapes the way thecompany treats its 70,000-plus employees. Management of employeesis based on key values: personal responsibility, valuing diversity,and commitment to the organization’s purpose. To sustain thiscombination of values, the company operates as a set of teams, withevery employee being a team member. A team may have between six anda hundred members, with the large teams divided into subteams. Theleader of each team in a store is a member of the store’sleadership team, and the head of each store leadership team is amember of a regional team. At the top of the Whole Foods hierarchyis an executive team. Each employee is responsible forparticipating in decisions related to his or her team’s work. Teammembers have a vote in which employees are part of the team andwhat benefits will be included in their compensation packages.
Team spirit and empowerment at Whole Foods has laid a strongfoundation for business success. Cofounder and CEO John Mackey saysliving out the store’s values creates a climate that freesemployees to innovate without fear, and the creative, fear-freeenvironment feels great to shoppers. It is one of a handful ofcompanies that has attained a spot on Fortune’s list of BestCompanies to Work For in every year the list has been compiled.Most recently, on the global Best Companies list, Whole Foods wasranked number one among food and drug stores. Consistent with thatranking, Whole Foods reports employee turnover of just 10 percentper year (the industry average is ten times that). And after yearupon year of strong growth, Whole Foods has become the world’slargest supermarket chain specializing in natural and organicfoods, with investors seeing far more room to grow in the future.To spur innovation and strengthen commitment, Whole Foods Marketempowers employees to participate in planning and decision makingwith their teams. Within a store, members of teams are involved indecisions concerning product selection and merchandising (the wayproducts are displayed to entice buyers) as well as efforts toimprove efficiency. They also contribute to decisions about hiringand compensation.
The company is widely known for team member involvement inhiring decisions, but employees support rather than control theentire hiring process. A human resource employee at each store orother facility screens job applications and selects candidates withthe necessary skills and concern for customer service. Candidateswho pass the initial screening may be interviewed by one or morestore leaders. (Applicants to lead teams generally interview with agroup.) Each employee hired then begins an orientation period,during which he or she has probationary status. After the newemployee has worked with the team for one to three months, the teammeets to decide whether to keep the person on the team, based onwhether he or she meets the job requirements, follows companypolicies and procedures, provides excellent customer service, andworks well with the team. Two-thirds must vote in favour of theemployee; otherwise, the person can try to join another team orwill have to leave the company. What unifies employees at WholeFoods Market is the sense of mission and shared values. Serving ona team fulfilling a mission gives each team member a sense ofpurpose, and the team monitors performance, making sure everyonecontributes. In addition, unlike many retailers, Whole Foodsschedules most of its employees for full-time work, which enablesthem to learn more about their jobs, build stronger teamrelationships, and develop a greater commitment to theorganization.
A challenge to cohesiveness, however, is one of the very valuesthe company espouses: appreciation of diversity. Whole Foodsstresses its commitment to hiring employees from many ethnicbackgrounds. Compared with other supermarkets, its dress codeoffers wide latitude for personal style. To counteractmisunderstandings that can occur when people come from differentbackgrounds and express themselves differently, the company expectsteam members to communicate frequently and respectfully and to showappreciation for what others contribute.
1) What advantages does teamwork offer to Whole Foods Market?
2) How does Whole Foods promote team cohesiveness? What else canit do?
