The Container Store
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 of 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 is exemplified by the 100% crosstraining
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
What examples from the video on The Container
Store support Maslow's motivational need for
self-actualization?
How is empowerment used in the video case?
How does Herzberg's theory of motivators and
hygiene factors relate to The Container Store?
