CASE APPLICATION #$3$

Passionate Pursuits

Topic: Motivating unique groups of workers, job design

t its headquarters in Ventura, California, Patagonia's office space feels more like a national park lodge than the main office of a $$600$ million retailer. ${?}^{84}$ It has a Douglas fir staircase and a portrait of Yosemite's El Capitan. The company's cafe serves organic food and drinks. There's an infant and toddler child$-$care room for employees' children. An easy one$-$block walk from the Pacific Ocean, employees' surfboards are lined up by the cafeteria, ready at a moment's notice to catch some waves. $($Current wave reports are noted on a whiteboard in the lobby.$)$

After surfing or jogging or biking, employees can freshen up in the showers found in the restrooms. And no one has a private office. If an employee doesn't want to be disturbed, he or she wears headphones. Visitors are evident by the business attire they wear. The company encourages celebrations to boost employee morale. For instance, at the Reno store, the "Fun Patrol" organizes parties throughout the year.

Patagonia has long been recognized as a great workplace for mothers. And it's also earned a reputation for loyal employees, something that many retailers struggle with. Its combined voluntary and involuntary turnover in its retail stores was around $25$ percent, while it was only $7$ percent at headquarters. $($The industry average for retail is around $44$ percent.$)$ Patagonia's CEO Rose Marcario says the company's culture, camaraderie, and way of doing business is very meaningful to employees and they know that their work activities are helping protect and preserve

the outdoors that they all love and enjoy. Managers are coached to define expectations, communicate deadlines, and then let employees figure out the best way to meet those.

Founded by Yvon Chouinard, an avid advocate of the natural environment, Patagonia's first and strongest passion is for the outdoors and the environment. And that attracts employees who are also passionate about those things. But Patagonia's executives do realize that they are first and foremost a business and, even though they're committed to doing the right thing, the company needs to remain profitable to be able to continue to do the things it's passionate about. But that hasn't seemed to be an issue since the recession in the early $1990$ s$,$ when the company had to make its only large$-$scale layoffs in its history.

Discussion Questions

$11-20$ What would it be like to work at Patagonia? $($Hint: Go to Patagonia's website and find the section on Careers.$)$ What's your assessment of the company's work environment?

$11-21$ Using what you've learned from studying the various motivation theories, what does Patagonia's situation tell you about employee motivation?

$11-22$ What do you think might be Patagonia's biggest challenge in keeping employees motivated?

$11-23$ In your assigned group, discuss this: If you were managing a team of Patagonia employees in the retail stores, how would you keep them motivated?