Module 1 Case Study

Contents
What role, if any, does McGregor s Theory Y play at Patagonia? .............................................................. 1 How does Patagonia build human and social capital? .............................................................................. 1 How does this case bring the profile of the 21st-century manager to life? ............................................... 2 Which of the seven moral principles in Table 1-5 appear to be in force at Patagonia? .............................. 3 What appeals to you (or does not appeal to you) about working at Patagonia? ....................................... 4 Bibliography ............................................................................................................................................ 4

What role, if any, does McGregor s Theory Y play at Patagonia?

In McGregor s Theory Y, management assumes that employees are ambitious and self-motivated and capable of exercising self-control (Kreitner & Kinicki, 2010). Management believes that employees enjoy their work duties. In other words, according to Professor Michael J. Papa of Central Michigan University, these employees find work to be as natural as play (Papa, Singhal, & Papa, 2005). Patagonia encourages this through promoting a work environment that empowers employees to exercise their creativity and self-direct their ambitions.

How does Patagonia build human and social capital?

Patagonia pays the salaries of employees for up to two months who wish to pursue working for environmental causes (Kreitner & Kinicki, 2010). While this no doubt encourages employee loyalty, it

does not directly contribute to Patagonia s business success. Conversely, Patagonia also reimburses half the tuition costs of employees who choose to return to school; while not as good a benefit as other companies (for example, Yahoo! pays 100% of tuition and course materials (Lindstrom, 2010)) it is a very good benefit considering Patagonia s size. It also encourages employee loyalty, and even better, helps employees to become more effective contributors to the company s success.

How does this case bring the profile of the 21st-century manager to life?
The founder of Patagonia, Yvon Chouinard, exemplifies many of the characteristics shown in the Evolution of the 21st-Century Manager. Most importantly, he appears to be a facilitator, team member, teacher, advocate, sponsor, and coach to his employees:

Future Management at Patagonia

Characteristic Primary role

Past Managers Order giver, privileged elite, manipulator, controller Periodic learning, narrow specialist Time, effort, rank Monocultural, monolingual Formal authority Potential problem Vertical Limited input for individual decisions Afterthought Competitive (win lose) Hoard and restrict access

Future Managers Facilitator, team member, teacher, advocate, sponsor, coach Continuous life-long learning, generalist with multiple specialties Skills, results Multicultural, multilingual Knowledge (technical and interpersonal) Primary resource; human capital Multidirectional Broad-based input for joint decisions Forethought Cooperative (win win) Share and broaden access for greater transparency


Learning and knowledge Compensation criteria Cultural orientation Primary source of influence View of people Primary communication pattern Decision-making style Ethical considerations Nature of interpersonal relationships Handling of power and key information

         

Approach to change Resist Table courtesy of Organizational Behavior (Kreitner & Kinicki, 2010).

Facilitate

Which of the seven moral principles appear to be in force at Patagonia?

From the description of Patagonia and their business operations, it would appear that the following principles from the Magnificent Seven are in use within the company: 1. Dignity of human life: The lives of people are to be respected. Human beings, by the fact of their existence, have value and dignity. We may not act in ways that directly intend to harm or kill an innocent person. Human beings have a right to live; we have an obligation to respect that right to life. Human life is to be preserved and treated as sacred. 2. Autonomy: All persons are intrinsically valuable and have the right to self-determination. We should act in ways that demonstrate each person s worth, dignity, and right to free choice. We have a right to act in ways that assert our own worth and legitimate needs. We should not use others as mere things or only as means to an end. Each person has an equal right to basic human liberty, compatible with a similar liberty for others. 3. Honesty: The truth should be told to those who have a right to know it. Honesty is also known as integrity, truth telling, and honor. One should speak and act so as to reflect the reality of the situation. Speaking and acting should mirror the way things really are. There are times when others have the right to hear the truth from us; there are times when they do not. 4. Loyalty: Promises, contracts, and commitments should be honored. Loyalty includes fidelity, promise keeping, keeping the public trust, good citizenship, excellence in quality of work, reliability, commitment, and honoring just laws, rules, and policies. 5. Fairness: People should be treated justly. One has the right to be treated fairly, impartially, and equitably. One has the obligation to treat others fairly and justly. All have the right to the

necessities of life especially those in deep need and the helpless. Justice includes equal, impartial, unbiased treatment. Fairness tolerates diversity and accepts differences in people and their ideas. 6. Humaneness: There are two parts: (1) Our actions ought to accomplish good, and (2) we should avoid doing evil. We should do good to others and to ourselves. We should have concern for the well-being of others; usually, we show this concern in the form of compassion, giving, kindness, serving, and caring. 7. The common good: Actions should accomplish the greatest good for the greatest number of people. One should act and speak in ways that benefit the welfare of the largest number of people, while trying to protect the rights of individuals (Kreitner & Kinicki, 2010).

What appeals to you (or does not appeal to you) about working at Patagonia?
While the work environment at Patagonia sounds idyllic, it does appear to be a kind of monoculture wherein if you are not of the correct temperament, lack the correct political interests (i.e., green activism), or lack the correct sports interests (i.e., surfing) then you would undoubtedly find yourself shunned and derogated. It would no doubt be like a person who is naturally taciturn and pessimistic going to work at Zappos, where according to one manager some [employees] are terrified to state their true feelings due to being targeted as anti-Zappos culture (Anonymous, 2010). I m sure there are employees at Patagonia who hold similar fears.

Bibliography
Anonymous. (2010, October 4). Zappos.com Reviews. Retrieved November 10, 2011, from Glassdoor.com: http://www.glassdoor.com/Reviews/Zappos-com-Reviews-E19906.htm Kreitner, R., & Kinicki, A. (2010). Organizational Behavior, Kindle Edition. New York: McGraw-Hill.

Lindstrom, N. (2010, December). Experiences of a Yahoo! Employee. (N. Lindstrom, Interviewer) Papa, M. J., Singhal, A., & Papa, W. H. (2005). Organizing for Social Change: A Dialectic Journey of Theory and Praxis. Thousand Oaks: Sage Publications.