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John Mackey, Cofounder and Co-CEO of Whole Market

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Mackey clearly took notes on McGregor’s theories on how and why people are the way they are at work. He took more to the Theory Y side: the moral and loyal view of people at work. Mackey feels that he and the company are viewed and based on the more heroic side of things, meaning that he aims to not only provide to the world his services and products but to also leave some type of impact. Mackey states that it is more important to value your conscious business versus maximizing on your profits and the shareholder values. Mackey also calls on the theory of conscious leadership: in this theory, “leaders identify their own flourishing with the flourishing of the organization” (Kreitner &Kinicki, pg. 30). Embedding this theory into your emloyees will bring more creativity and self-direction within the work environment.

How does Whole Foods build human and social capital?

Where would you locate Whole Foods on Carroll’s global corporate social responsibility pyramid in Figure 1-3? Explain

Which of the seven moral principles in Table 1-4 appear to be in force at Whole Foods? Explain.

What factors would be an appeal to working at Whole Foods

“The rule of law has to be applied equally to everyone… You also need to have conscious businesses—that is businesses that become conscious of their higher purpose, which is not just about maximizing profits and shareholder value.” “Third, you need what we call conscious leadership. You could also call it servant leadership. Leaders identify their own flourishing with the flourishing of the organization. They’re trying to serve the organization and its purpose. Fourth, you have to create a conscious culture—a culture that allows the organization to fulfill its higher purpose, implements the stakeholder model, and enables conscious leadership to flourish”.

“I think Whole Foods’ highest purpose is a heroic(changing and improving the world and standing up for what you believe is true and right and good): to try to change and improve our worls. That is what animates me personally. That is what animates the company. I resisted that purpose for a long time, by the way. I actually thought we were in some variant of service—that is was really about fulfilling the good. The team members consistently told me I was wrong, that we had a different purpose. It was this more heroic purpose. Outdated (Theory X) Assumptions Modern (Theory Y) Assumptions About People About People At Workat Work

1. Most people dislike work; 1. Work is a natural activity, like play or rest. They avoid it when they can.

2. People are capable of self-direction and self- 2. Most people must be coerced and control if they are committed to objectives. Threatened with punishment before

3. People generally become committed to They will work. People require close organizational objectives if they are rewarded Direction when they are working. For doing so.

3. Most people actually prefer to be

4. The typical employee can learn to accept and Directed. They tend to avoid seek responsibility. Responsibility and exhibit little ambition.

5. The typical member of the general population They are interested only in security. Has imagination, ingenuity, and creativity.

McGregor’s Theory Y (pg. 8- )
In 1960, Douglas McGregor wrote a book entitled The Human Side of Enterprise, which has become an important philosophical base for the modern view of people at work. Drawing on his experience as a management consultant, McGregor formulated two sharply contrasting sets of assumptions about human nature. His Theory X assumptions were pessimistic and negative and, according to McGregor’s interpretation, typical of how managers tradionally perceived employees. To help managers break with this negative tradition, McGregor formulated his Theory Y, a modern and positive set of assumptions about people. McGregor believed managers could accomplish more through others by viewing them as self-energized, committed, responsible, and creative beings.

Unfortunately, according to ongoing research on employee engagement, McGregor’s Theory Y is still a distant vision in the American workplace: Example: 2009 Gallup Employee Engagement Index reported: engaged employees work with passion and feel a profound conncetion to their company. They drive innovation and move the organization forward. Non-engaged employees have essentially “checked out.” They sleepwalk through workdays. They put in time but don’t approach their work with energy or passion. Actively disengaged employees aren’t just unhappy at work; they’re busy acting out their unhappiness. Every-day, these workers undermine what engaged co-workers accomplish.

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