Wegmans Case Essay Example

"there are fair reward systems based on broad and diverse contributions to organizational success" (Schneider, 1994, p. 18).

The management's goal is to establish a non-exploitative environment where employees feel comfortable trusting and expressing their concerns. It is believed that by fostering trust and treating employees well, the organization will also benefit in terms of improved customer treatment, resulting in advantages for both customers and the company (George, 2007, p. 5). Building trust is considered crucial for creating a positive organizational climate that benefits both employees and the organization. Similarly, Weakens aims to promote helpfulness and cooperation as norms to cultivate an organizational climate suitable for citizenship behavior (George, 2007, p. 5). The management strives to involve employees in decision-making processes to make them feel valued and included.

Management at Weakens emphasizes collaboration as a means to make employees feel comfortable asking for help when they need it. The company operates with a non-hierarchical organizational structure, empowering employees to make decisions related to their own work and suggest improvements as long as they align with Weakens' values (George, 2007, p. 7). This collaborative approach fosters a unified team at Weakens, where all employees work together towards common goals. By prioritizing mutual support, Weakens encourages a positive organizational climate that promotes citizenship behavior among its workforce.

Weakens' organizational climate for citizenship behavior is supported by its reward system. In describing the reward system, Weakens emphasizes the importance of enabling employees to be more productive (George, 2007, p. 8). In addition to providing rewards for going the extra mile and making suggestions for improvement, management at Weakens also offers generous benefits such as health insurance, scholarships,

academic funding, and continuous training to employees.

According to a study conducted by George Litton and Robert Stringer in 1968, it was found that specific leadership qualities exhibited by Tyler have a positive and stable influence on the organizational climate, affecting motivation and performance (Atkinson ; Brochette, 2009). One of Weakens' main leadership approaches is periodically acknowledging and rewarding employees for their achievements, ultimately driving them to sustain high levels of efficiency and productivity. Through the establishment of trust, promotion of collaboration, and provision of rewards, Weakens has successfully fostered an organizational climate conducive to encouraging citizenship behavior.

The organizational climate and culture at Weakens promote employee involvement and customer satisfaction, giving the company a competitive advantage. Weakens prioritizes human capital, recruiting and developing knowledgeable employees to offer a distinctive in-store experience. Management at Weakens also encourages employees to enhance customers' shopping experience.

As a result, employees frequently advise customers on food choices and provide tips on cooking and serving. Weakens found that lack of knowledge on how to prepare a more sophisticated and costly food item can deter customers from buying it. However, Weakens helps customers overcome this obstacle with their in-store experience. Customers can interact with knowledgeable employees who can answer their culinary questions and help them make informed choices.

Shopping at Weakens supermarkets is no longer a dull routine, as customers gain knowledge about their food choices. The unique in-store experience at Weakens sets it apart from other supermarkets in the industry, giving the company a valuable competitive edge. The expertise of Weakens' staff greatly contributes to this advantage. Ultimately, the in-store experience at Weakens adds tremendous value for consumers.

Weakens acknowledges

that its employees are its primary asset and strives to empower them to enhance the customers' shopping experiences. As a result, the in-store experience at Weakens is closely linked to the brand, leading the company to possess a large and devoted customer base. While Weakens is comparably small compared to retail giants like Walter, Kroger, and Cost, its loyal customer base and distinctive in-store experience allow it to remain competitive in the supermarket industry.

Weakens has consistently ranked among the top 30 North American food retailers for the past 5 years. The company's estimated sales have gradually increased each year, reaching 6.2 billion. This can be attributed to Weakens' ability to differentiate its in-store experience and invest in its human capital. Weakens' success and popularity are the direct result of their commitment to developing and retaining their employees, which is achieved through embracing values that resonate with them.

The priority at Weakens is the well-being, engagement, and work culture of its employees. This is reflected in the company's philosophy of "employees first, customers second" (George, 2007, p. 3). The importance of respect, fairness, honesty, and concern to people is emphasized by the late Robert Wigwam (Best Practices in Recruitment and Retention, 2007, p. 16). Management consistently upholds these standards to ensure the satisfaction of Weakens' 32,000 employees. Furthermore, Weakens encourages all employees to adopt and practice its set of five strong, simple values in both their work and personal lives.

The grocery store industry is known for its high turnover rates, but Weakens stands out with its impressive retention rates. According to George (2007, p. 5), full-time employees tend to stay with the company for

over ten years, while part-time employees usually stay for more than five years. In fact, approximately 20 percent of Weakens' workforce, which amounts to around 6,000 employees, have a decade or more of experience with the company. Moreover, Hollow (2006, p. 317) reports that over 800 employees have remained loyal to Weakens for 25 or more years.

When compared to other similarly sized grocery chains, Weakens boasts an attrition rate of only seven percent among full-time workers (George, 2007, p.2).

Weakens' success in developing and retaining human capital is credited to the programs and policies that reflect the company's five core values. These initiatives demonstrate the company's concern for its employees' well-being, which is evident through the generous benefits offered by Weakens. Compared to regular supermarkets where labor costs account for approximately 12 percent of sales, Weakens allocates a higher percentage of sales, ranging from 15 to 17 percent, towards labor costs (George, 2007, p. 9). Weakens justifies these increased costs based on its ability to surpass competitor retention rates.

At Weakens, both full-time and part-time employees receive medical and life insurance, a 401 k plan, paid vacations, and profit sharing eligibility after one year of employment (George, 2007, p. 8). Additionally, Weakens shows its commitment to employee education through the Weakens Employee Scholarship Program. Full-time employees can get up to $2,200 per year for four years, while part-time employees who meet the minimum work hours requirement and maintain a high academic standard and good work record can receive up to $1,500 per year (George, 2007, p. 8).

George (2007, p. 8) states that Weakens has given over $59 million in financial aid to more than

19,000 employees. Despite graduating, many of these employees continue working at Weakens. In the early sass's, Weakens became one of the country's leading private companies offering childcare services for its employees, demonstrating their dedication to employee and family well-being (George, 2007, p. 4). By investing significantly in employee training, Weakens upholds high workplace standards and promotes long-term employee retention.

Every time a new Weakens supermarket opens, the company invests in training new employees, such as when they spent over $5 million on training alone for the new store in Dulles, Virginia (Hollow, 2006, p. 316). In addition, Weakens frequently sends employees on training excursions around the world to enhance their knowledge of the food they sell (George, 2007, p. 6). This significant commitment to employee training sets Weakens apart from other supermarkets, as it not only motivates employees but also equips them with the necessary tools for success in the workplace.

The Weakens company implemented the Work Scholarship Connection (WAS) program to support local teenagers at risk of leaving high school. These students are provided with mentorship and flexible work schedules, allowing them to balance their schoolwork. By maintaining their jobs and completing high school, these students earn a $5,000 college scholarship. Since 1986, WAS has helped around 17,500 teenagers with over $54 million in college tuition assistance (George, 2007, p. ). Among WAS participants, 80 percent successfully graduate from high school and 80 percent of those continue to pursue higher education (George, 2007, p. 8). The effectiveness of Weakens' program is evident as 75 percent of the current managers began working for the company between the ages of 15 and 16 (Best Practices in

Recruitment and Retention, 2007, p. 16). A key factor contributing to Weakens' employee retention success is its commitment to empowerment and respect.

Weakens encourages a "non-hierarchical" setup that empowers employees to make decisions in line with Weakens' values, aiming to enhance individual customer satisfaction (George, 2007, p. 7). Additionally, Weakens' management cultivates an innovative culture by urging employees to propose ideas for new products and store improvements. In recognition of their commitment to innovation and customer service, managers frequently arrange employee appreciation days (Best Practices in Recruitment and Retention, p. 17).

The Continued Success at Weakens Weakens continues to be one of the leading grocery stores in America since the publication of the case in 2007. This achievement is attributed to Weakens' focus on the five-value system and the creation of an employee-friendly environment. The numerous awards received by Weakens in the years following 2007 demonstrate its remarkable success. For eight consecutive years, the grocery store has been ranked within the top five on Fortune's 100 Best Companies to Work list, and it held the fourth position in 2012 ("Cnn Money," 2012).

According to the "Customer Service Champs" rankings, Weakens is recognized as one of the top businesses. Supermarket news reported that as of 2012, Weakens holds the 29th position among top retailers and wholesalers ("Customer service champs 2010"). The company is continuously expanding its presence in the northeast region. In 2007, there were 71 Weakens locations, which has now grown to approximately 80 stores. The owners of Weakens have set a target of opening three new stores per year to maintain their commitment to providing excellent customer service.

The owners of Weakens believe that

opening stores too quickly would reduce the quality of their product. This mentality stems from the fact that Weakens has closed nine stores in the past few years due to expanding in the wrong areas. A significant business move for Weakens occurred in 2008, when they made the decision to no longer sell tobacco products in their stores. Concurrently, they introduced a smoking cessation program for their employees, resulting in over 2,000 employees enrolling since its introduction in 2009.

The American Lung Association of New York State has recognized Weakens with the "Lung Champion Award" for its program. Weakens' dedication to excellence and prioritizing employees has proven to be a successful business system, prompting the question of whether other companies can replicate their model. While it is theoretically possible for other companies to adopt Weakens' culture of motivation and employee engagement, achieving the same level of success would take significant time.

The reason Weakens' culture is difficult to replicate is that it has taken decades for it to reach its current state. Another company attempting to create a similar culture would need to invest time in eliminating its own existing culture as well. Only by remaining dedicated to the cause for the long term can another company successfully adopt Weakens' culture. Another challenge in duplicating Weakens' culture is that it is privately owned.

Weakens has the advantage of focusing on long-term goals rather than short-term ones like publicly traded companies. This is significant because when Weakens opens a new store, it invests a significant amount of money in training its new employees. Many other companies either cannot afford this training or fail to recognize

its importance in creating a positive company culture. These reasons are why other stores have been unable to replicate the unique culture that Weakens has established.

Works Cited Atkinson, T. & Brochette, H. (2009).