3. Keeping in mind that an agency like LTSC would have limited funding and just a few
senior managers, suggest two additional developmental activities that are likely to be
most beneficial to the organization, and explain why you chose them.
HRM DVD Vol 3 Suggested Video with Discussion Questions and Possible Responses
Working for the Best: The Container Store (11:23)
Video Summary
The Container Store has no parallel in the retail industry. It pays its employees 50% to 100%
above the industry average, has a turnover rate 75% below industry average, and has the
happiest, most empowered employees in the industry.
Garrett Boone, Co-Founder and CEO explains the company’s philosophy throughout this video.
He explains that the operating philosophy of The Container Store can be captured in the
following maxim: “1 great person = 3 good people.” Their hiring practices actually reflect these
values. Their mission is not only to satisfy customers but to exceed their expectations. The
video exemplifies this by citing examples of employee kindness to customers well beyond what
is expected.
The video then traces the history of management theory beginning with Taylor and concluding
with Vroom’s expectancy theory model. The video provides examples from The Container Store
that support theoretical tenets across several models. For example, Theory Y and Theory Z
management principles apply to the belief in people to work effectively without close supervision
and to work in a team environment. Herzberg’s motivators and hygiene factors are exemplified
by the 100% cross-training goal for all employees at the company. Development is also a key
concern with Boone and his team: Drucker’s MBO could apply here.
The video concludes by suggesting that one management theory of motivation does not and
cannot fit all company models. The Container Store sees its business as “situational” requiring
flexibility in terms of customer response. Empowerment is the only answer. Several of the
values and practices of The Container Store clearly support a “situational” approach to
management and motivation–they draw from Maslow, McGregor, Drucker, Herzberg and Vroom.
Open communication is at the heart of the company’s culture–it is a privately held firm but
shares all information with employees including the financials. In a sense, the CEO sees
“communication” as being the #1 core value of The Container Store and as such is equivalent
with leadership.
Discussion Questions
1. How has the Container Store’s hiring practices helped to create their success?