How Trader Joes Uses the Management Process to Develop Its Employees - Case Study Example

Trader Joe’s Case Study and Determine how Trader Joe’s uses the management process (planning,organizing, leading, and controlling) to develop its employees In terms of planning, Trader Joe’s displays effective strategies in the operation of the store through selling unique products at low costs in a customer-friendly environment. The grocery store applies a unique approach in obtaining its product in order to stand out among its competitors. This is achieved through obtaining its unusual foods from different parts of the world while labeling the products with appealing phrases. In addition, Trader Joe’s maintains a low stock of its products to improve customers’ decisions in making choices. The store also makes direct contracts with the products’ manufacturers. Their effective leadership structure has been illustrated through providing employment opportunities to individuals who possess ambitious and adventurous skills. Moreover, the grocery store provides a cool atmosphere for both its employees and customers. The store hires its managers from within hence; leadership management is maximized since the managers have experience in effectively managing the store. Trader Joe’s ensures that it boosts and maintains its employees by providing them with higher pay rates compared to employees’ pay rates of the competing stores. Trader Joe is able to control successfully real estate costs through purchasing small stores and avoiding prime locations due to high competition. The store also controls products’ costs by implementing the “one in, one out” policies, which ensures that low-profit products are replaced by high selling products. The store maintains a good customer relationship by listening and acting according to the customers’ preferences. For instance, they remove a product from the shelves when customers give negative reviews concerning the product. The store also maintains a good employee-customer relationship to ensure that it holds a firm grip on its loyal and new customers. For instance, customers can be directed to employees to get their views concerning a certain product. Employees are encouraged to taste the store’s products in order to provide honest reviews concerning the products. Customers are more likely to make choices when provided with a limited number of options compared to a wider variety of option. Trader Joe’s, take advantage of this psychological behavior by controlling the stock of its products; it holds about 2000 products in its store compared to 25,000 to 45,000 products in neighboring supermarkets. The scarcity strategy benefits both the store and its customers since the store is able to make double products sales compared to its competitors despite its size. Examine the approach Trader Joe’s uses to promote a positive work environment for its employees Determine at least three (3) ways in which Trader Joe’s is able to increase job satisfaction and performance. Trader Joe’s has devised various strategies to ensure that the store promotes a positive working environment and ensuring that its employees are satisfied with the working conditions. Firstly, the store shows appreciation to its employees by giving its employees a high pay rate compared to employees’ pay rates in the respective competing stores. In addition, the employees are awarded with extra benefits, which include medical covers, vision insurances, fully paid vacations, and a ten percent employee discount. In order for the grocery store to ensure that employees are competent and aware of their specific responsibilities and duties, employees are enlightened on the how the store’s system operates. Additionally, Trader Joe’s also provides information concerning the various products to its employees. Thus, employees have a vast amount of knowledge concerning the store’s products, which is an essential aspect in a business. According to Davis, Subrahmanian & Westerberg (2005), the growth of a company can be enhanced if the company’s employees possess relevant information concerning its products. Suggest two (2) ways that leaders can effectively manage relationships in general by using the four (4) EI competencies According to Cherniss (2001), emotional intelligence is highly linked with stronger relationships in different areas such as personal and scholastic areas. Employees who are unable to understand their personal emotions and triggers are incapable of learning how they can control their reactions (Ashkanasy, Zerbe & Härtel, 2002). The outlet managers can distribute self-awareness surveys in Trader Joe’s, which will assist the employees in identifying their thoughts, emotions, and concerns. Employees can thus develop good relationships with other working colleagues after learning on how to control their emotions. This strategy is also effective in sharpening the employees’ skills when interacting with customers. In addition, leaders in Trader’s Joe can implement coaching sessions at interval to its employees in order to identify the specific competencies that can be improved as well as identifying the strengths than can be leveraged. The coaching process will involve developing personalized goals for each employee in order to raise their self-awareness skills. This is an essential skill since employees who are able to control their emotions can establish good customer relations, which will enhance the overall productivity of Trader Joe’s. Recommended leadership practices Trader Joe’s can implement various leadership strategies, which will enhance the growth of the grocery store. Since employees are required to taste the different products in order to enhance good customer relations, the outlet managers can include the employees in the process of selecting the food products to be purchased. This can prove to be effective in reducing the inventory amount and offer cheaper prices of the products. Although employees are able to establish good customer relations, this strategy can be extremely helpful in boosting customer loyalty. The managers can also provide extra incentives to the employees such as plagues and awards, in order to enhance the positive attitude among the employees. Promotions are also are commended since they will motivate employees to put extra effort in enhancing customer relations. The outlet managers can also enable the customers to act through the employees. For instance, customers can give detailed suggestion and feedbacks to the workers, which may be helpful in introducing new products in the store. Constant training of both companies’ managers and employees is an effective leadership practice, which ensures that the working staff is updated on changing business management skills (Olson & Singer, 2004). Therefore, Trader Joe’s should conduct frequent training sessions for all its employees at regular intervals in order to gauge the competency levels of its entire staff. Employees at more likely, to show great respect to a leader who recognizes the company’s objectives and the value of its operations (Giuliani & Kurson, 2002). Therefore, the employee morale is likely to boost if Trader Joe’s implement this training approach. In conclusion, Trader Joe’s has proven to be a successful grocery store due to the store’s innovative leadership practices. The positive working attitude in the store has been the major cause of the store’s establishment in the competitive market. The store established both good employee and customer relationship through offering transparency operations where employees and customers can directly affect the store’s management practices. Although the store displays positive financial and management growth, it can boost it further through implementing new leadership practices such as training and engaging its employees further in the decision-making process of the store. References Cherniss, C. (2001). The Emotionally Intelligent Workplace: How to Select For, Measure, and Improve Emotional Intelligence in Individuals, Groups, and Organizations. San Francisco: Jossey-Bass. Davis, J., Subrahmanian, E., & Westerberg, A. (2005). Knowledge management (1st ed.). Heidelberg: Physica-Verlag Heidelberg. Ashkanasy, N., Zerbe, W., & Härtel, C. (2002). Managing emotions in the workplace (1st ed.). Armonk, N.Y.: M.E. Sharpe. Olson, C. A., & Singer, P. M. (2004). Winning with library leadership: Enhancing services with connection, contribution, and collaboration. Chicago: American Library Association. Giuliani, R., & Kurson, K. (2002). Leadership (1st ed.). New York: Hyperion. Read More