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ORGAN Whole Foods Market Emphasizes Self-Managed Teams of namng.A 101 280ribal Whole Foods Markets Inc. is the largest organic and Each team is committed
ORGAN Whole Foods Market Emphasizes Self-Managed Teams of namng.A 101 280ribal Whole Foods Markets Inc. is the largest organic and Each team is committed to the company's mission, natural foods grocer in the United States, although as stated in these terms: "Whole Foods Market is pas- most grocery chains now have substantial organic food sionate about helping people to eat well, improve the sections. The grocery sections of Walmart and Target quality of their lives, and increase their lifespan." also compete directly with Whole Foods. Shortly after its opening in 1980, CEO John Mackey developed an organizational structure built on interlocking teams. Employees are referred to as "team members," and teams are the building block of the organization. Each Whole Foods store is organized around 8 to 10 teams for traditional departments such as produce, meats, and checkout. The size of teams ranges from 6 to 100, but the larger teams are divided into sub- my in teams. Each team is granted considerable autonomy such areas as ordering food and merchandise, pricing, and running promotions. Team leaders are also mem- bers of the store leadership team, and the store team leaders are members of the regional leadership team. The regional presidents also constitute a team. In August 2017, Amazon purchased Whole Foods to strengthen its presence in the grocery business, including home deliveries. Immediately, Amazon Echo and Dot devices were being sold in Whole Food stores. Prices on many food products were marked down sub- stantially in keeping with the Amazon strategy of low prices for consumers. For example, organic, responsi- bly farmed salmon was marked down 33 percent. QUESTIONS qua 1. If you have ever shopped at or visited a Whole Foods store, have you noticed whether the self- managed team structure has any impact on customer service? ob 2. Should management and leadership at Whole The self-directed teams at Whole Foods meet reg-Foods be concerned that their new owner, ularly to discuss and solve problems and show appre- ciation for each other's contributions. Every team plays a role in company improvement and innovation. Store leaders screen candidates and recommend them for a position on a specific team, but only the teams have the authority to approve candidates for a full-time position. Competition across teams is encouraged, with teams competing against different teams in their own store and against similar teams in different stores and regions. The competition metrics include sales growth and productivity. Amazon, sells many food products that are not natural or organic? Why or why not? 6506 Source: Original story based on facts and observations in the following sources: David Burkus, "Why Whole Foods Builds Its Entire Business on Teams," Forbes (www.forbes.com), June 8, 2016, pp. 1-2; Arturo Cuenllas, "Whole Foods Market Management Case Study: A Benchmark Model for Hospitality," Conscious Hospitality (www.Conscious-Hospitality.com), March 2014, pp. 2-4; Lauren Thomas, "Amazon Officially Owns Whole Foods; Here Are the Products That Are Getting Marked Down," CNBC, (www.cnbc .com), August 28, 2017, pp. 1-2. s nemelste
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