Mid-Term Exam Questions
Mid-Term Exam Questions
Mid-Term Exam Questions
Question 2
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An increase in salary, bonuses, supplements, and other tangible rewards are known as extrinsic
motivators that come from outside the person. Obviously, what motivates people will vary based
on their situation and personal characteristics. Many people are motivated by intrinsic motivators
such as higher challenge, promotion, and self-satisfaction. Good income is relevant to Maslow’s
Hierarchy of Needs' physiological and safety portion on the bottom. Higher-order needs are
satisfied internally from the inside, whereas lower-order needs are mainly met externally by
rewards such as higher pay and complement (Maslow, 1954).
In addition, as Herzberg (1959) explained, according to two-factor theory, intrinsic factors such
as sense of accomplishment, cognition, self-efficacy, responsibility, progress, and growth also
appear to be related to job satisfaction. On the other hand, McClelland's theory of needs also
focuses on three other needs which trigger high performance and job satisfaction including need
for achievement, need for power, and need for affiliation (McClelland, 2010).
To this end, I hold that a good salary is not merely enough to maintain job satisfaction. Once the
most immediate needs for survival are met, the majority of people move to higher categories of
needs, and their expectations increase towards the intrinsic need.
Reference:
Langton, N., Robbins, S. P., & Judge, T. A. (2019). Organizational Behaviour Concepts,
Controversies, Applications (8th Canadian Edition). Pearson Education Canada.
McClelland, D. C. (2010). The Achieving Society. Martino Fine Books.
Maslow, A. H. (1954). Motivation And Personality (Best Motivational Books for Personal
Development (Design Your Life)). Prabhat Prakashan.
Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The Motivation to Work (2nd ed.). John
Wiley & Sons.
Question 3
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Trader Joe’s promotes entirely from within the organisation. This means that if you are a good,
dedicated worker, you can rise up within the company. Do you feel employees would be as
dedicated to the company if this were not the case? Would high pay be enough to keep
employees? What if the company only promoted from within but pay was not as good?
Job promotion is among higher hierarchical needs in Maslow's theory. The hierarchy of needs
depends on the individual and their place in Maslow's hierarchy of needs. If an employee’s basic
physiological and safety needs are not met, they may not be concerned about higher needs such
as being promoted. In general, however, promotional and growth opportunities are among the
inherent motivators. This can also be further explained by Victor Vroom's expectancy theory or
“effort-performance relationship,” implying that if an employee gives the maximum effort,
he/she has a chance to be promoted within the company (Purvis, 2015).
Nevertheless, internal promotion is always a great motivating strategy in all jobs. Advancement
potential is a major driver. Working in a company that promotes exclusively from within creates
a lighter level of dedication and prompts behaviours like organizational citizenship behaviour.
To this end, I do not hold that high salaries are enough to keep employees satisfied. Without a
chance for advancement and increased responsibilities, the employees can be bored and
dissatisfied. On the other hand, if the company only promotes from within, but the payout is not
satisfactory, there will be less incentive, but as long as a salary increase accompanies the
promotion, it can result in motivation and better performance.
Reference:
Langton, N., Robbins, S. P., & Judge, T. A. (2019). Organizational Behaviour Concepts,
Controversies, Applications (8th Canadian Edition). Pearson Education Canada.
Purvis, R. L., Zagenczyk, T. J., & McCray, G. E. (2015). What’s in it for me? Using expectancy
theory and climate to explain stakeholder participation, its direction and intensity. International
Journal of Project Management, 33(1), 3–14.
https://doi.org/10.1016/j.ijproman.2014.03.003And
Question 4
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Question 5
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Should Fromm consider not going to further conferences of this sort? Why?
The fact that Forum is silent about his views in class shows that he understands the boundary
between public and private life. However, given the school board's frustration with Forum's
behavior, it is prudent for him to refrain from attending these meetings, especially if the board
decides to issue him a warning letter. The danger of going to such arrangements is that it can be
leaked into social networks and in the news, causing him and the school defamation and
scandals.
Case 1: The Case of Trader Joe’s (Questions 1, 2 and 3)
People in Hawaiian T-shirts. Delicious fresh fruits and vegetables. A place where parking is tight
and aisles are tiny. A place where you will be unable to find half the things on your list but will
go home satisfied. We are, of course, talking about Trader Joe’s (a privately held company), a
unique grocery store headquartered in California and located in 22 states. By selling store-brand
and gourmet foods at affordable prices, this chain created a special niche for itself. Yet the
helpful employees who stock the shelves and answer questions are definitely key to what makes
this store unique and helps it achieve twice the sales of traditional supermarkets.
Shopping here is fun and chatting with employees is a routine part of this experience. Employees
are upbeat and friendly to each other and to customers. If you look lost, there is the definite offer
of help. But somehow the friendliness does not seem scripted. Instead, if they see you shopping
for big trays of cheese, they might casually inquire if you are having a party and then point to
other selections. If they see you chasing your toddler, they are quick to tie a balloon to his wrist.
When you ask them if they have any cumin, they get down on their knees to check the back of
the aisle, with the attitude of helping a guest that is visiting their home. How does a company
make sure its employees look like they enjoy being there to help others?
One of the keys to this puzzle is pay. Trader Joe’s sells cheap organic food, but they are not
“cheap” when it comes to paying their employees. Employees, including part-timers, are among
the best paid in the retail industry. Full-time employees earn an average of $40,150 in their first
year and also earn average annual bonuses of $950 with $6,300 in retirement contributions. Store
managers’ average compensation is $132,000. With these generous benefits and above-market
wages and salaries, the company has no difficulty attracting qualified candidates.
But money only partially explains what energizes Trader Joe’s employees. They work with
people who are friendly and upbeat. The environment is collaborative, so that people fill in for
each other and managers pick up the slack when the need arises, including tasks like sweeping
the floors. Plus, the company promotes solely from within, making Trader Joe’s one of few
places in the retail industry where employees can satisfy their career aspirations. Employees are
evaluated every 3 months and receive feedback about their performance.
Employees are also given autonomy on the job. They can open a product to have the customers
try it and can be honest about their feelings toward different products. They receive onand off-
the-job training and are intimately familiar with the products, which enables them to come up
with ideas that are taken seriously by upper management. In short, employees love what they do,
work with nice people who treat each other well, and are respected by the company. When
employees are treated well, it is no wonder they treat their customers well daily (Lewis, 2005;
McGregor et al., 2004; Speizer, 2004).
Speizer, I. (2004). Shopper's special. Workforce Management, 83(9), 51-54. Retrieved from
https://search-proquest-com.ezproxy.myucwest.ca/trade-journals/shoppers-
special/docview/219782918/se-2?accountid=31524
He further strategized to provide super market services along with excellent customer
program. Through this model, he encouraged his employees to be proactive and customer
oriented.
Founded by Joe Coulombe in 1967, Trader’s Joe started as a chain of convenience stores.
However, the business soon faced difficulties competing with strong incumbents such as 7 –
Eleven Inc. offering a wider selection of inventories at lower prices. Accordingly, Coulombe
decided to transformed the store to a more novel design for adventurous beverage and
gourmet food customers. This strategy helped him to find a new niche in the supermarket
industry. (Jones, 2010).
Joe Coulombe’s approach to organizational design was a decentralized structure which was
guided by strong values and ethics. (Jones, 2010) He created a dynamic and flat (horizontal)
style organization with a low levels of hierarchy or supervisory control (Brown et al., 2011;
Galbraith, 1974). This approach involves delegating authority to employees and salespeople so
that they could make decisions without necessarily consulting their superiors. The employees
were not obligated to follow strict operating rules and a low degree of formalization. The
outcome is a dynamic organizational structure that comprises of an informal system of roles
and reporting relationships that ensure coordination and motivation of members in their efforts
to attain organizational goals (Lewis, 2005). The business’s organizational structure guides how
resources can be best utilized to create goods and services.
The unique business model provides autonomy for employees to make decisions and provide
services. The benefit of this type of organization design is that it allows better coordination and
less control. Moreover, this approach makes employees to take the lead as if they owned the
business and be willing to engage in behaviors beyond citizenship (Langton et al., 2019; Ehrhart et al.,
2004). This model enabled the business to accomplish its goals in an effective way by bringing
employees from different teams together. It is also adaptable to the uncertain and frequently
changing business environment. Thus, sales and marketing decisions can be made on time to
suit changing market factors. Additionally, it allowed for maximum use of resources as
specialized employees could focus on the task at hand.
2. What specific decisions did he make to create Trader Joes' organizational structure and
culture?
To develop a healthy culture in his organization, Coulombe made several decisions. The first
decision was to provide good quality consumer services at his stores. To achieve this goal, he
provided his employees with autonomy to make decisions and provide personalized customer
service across stores (Jones, 2010, p.26).
To this end, Coulombe’s strategy to create a customer-responsive culture was to encourage his
employees by decentralizing power and empowering salespeople as well as offering them
generous benefits and above-market wages and salaries. Many organizations failed because
their employees failed to please customers. Dissatisfied employees lead to poor customer
service and lower business profits (Karpen, 2015).
He also designed the stores in a model of Hawaiin store where the employees where given
Hawaiin shirts to wear and they called their store managers as captain. Customers are given
with the samples of food and drinks which helped in having a better understanding of the
product and let them interact with each other.
Coulombe created a fun business environment, with a Hawaiian and nautical style to his stores
and allowed employees authority to make decisions in order to provide personalize customer
service. He recognized the importance of treating employees fairly and equitably. As a result,
the organizational culture and structure helped employees feel valued. Employees worked hard
to ensure that customers felt valued. Joe rewarded good customer service and hard work by
promoting from within and fair salaries.
The salary paid in the store was amazing compared to other store chains at that time. The store
managers were given rewards and bonuses for their performances. All the salesperson are
made aware that the chain will be expanding in the future so that they all receive the
Coulombe’s policy of promotion was another one of the reasons that the design was
successful. He created a policy of promoting employees from within the organization and
3. How Trader Joe’s is performing today? What new problems of organizing has it been facing
as it has grown?
As Trader Joe’s expanded its operations, it is performing exceptionally today. It has
developed into a trusted brand and the customers are satisfied with its products. Its key to
success includes, low prices, promoting a fun and friendly atmosphere, and excellent customer
service. Moreover eighty percent of Trader Joe’s products are privately labelled (McKinnon,
2020).
Redman (2019) indicated that Trader Joe's ranked as the top five grocery retailers in
dunnhumby’s second annual Retailer Preference Index (RPI). He also mentioned that
In a survey of 7,000 U.S. households, the RPI examined the 56 largest retailers in the
$700 billion U.S. grocery market to determine which have the strongest combination of
consumer emotional sentiment and financial performance. This year’s results, released
Wednesday, had Trader Joe’s in the No. 1 spot on the index for the second year.
(Redman, 2019)
Trader Joe's was also ranked the second highest preferred U.S. grocery retailer in the
third annual Retailer Preference Index (RPI) of dunnhumby’s 2020 . (H-E-B Dethrones Trader
Joe’s as Top U.S. Grocery Retailer in the 2020 Dunnhumby Retailer Preference Index, 2020).
(Abraham, 2005). While Trader Joe’s has experienced tremendous growth, however, the
business has to deal with increased competition in the food market (Kowitt, 2010). A number of
groups have demanded that Trader Joe’s has to present proof that its products are GMO free
(Bain, 2014; What Is Trader Joe’s Hiding?, 2013). Moreover, some consumers criticize Trader
Joe’s for over-packaging its products which is not environmentally friendly (MacEachern, 2009).
Today, consumers are more concerned about corporate social responsibility than their
products. A company is social responsibility when it is concerned about individuals, society, and
friendly material, Trader Joe has to present more awareness about changing consumer
preferences.
Lastly, during the pandemics, Trader Joe’s failed to offer on-line or curbside grocery pick
up options for its customers and as such, it incurred significant reduction in monthly visits year
over year (Strailey, 2020). To maintain its competitive advantage, Trader Joe’s should consider
How much of Trader Joe’s success can be attributed to the fact that most larger chain grocery
stores do not sell the type of food available at Trader Joe’s?
Trader Joe sells fewer items than other large chains, but has a good competitive advantage
by creating a niche and selling store-bought food and great food at affordable prices. According to
McKinnon (2020), some of the keys to Trader Joe's strategy to success include offering the best in-
According to McKinnon (2020), some of the keys to Trader Joe's strategy to success include
offering the best in-class products, as well as private-branded and products with limited availability.
This provides an economic scale, and he sells similar similar goods cheaper than others, which have
to maintain many types, so he keeps a smaller volume of different types. This also facilitates
economic scale, and selling the same goods cheaper than other goods.
This approach can be attributed in part to their success. However, a significant contributor to
their success is their positive work environment and superb customer service experience, which has
Citations
McKinnon, T. (2020, October 19). Trader Joe’s Strategy: 12 Keys to its Success. Indigo9 Digital
Inc. https://www.indigo9digital.com/blog/traderjoesstrategy#:%7E:text=Today%2C
%20approximately%2080%25%20of%20Trader,and%20goes%20directly%20to
%20suppliers
increases in pay, bonuses, complements and other tangible rewards are known as extrinsic
motivators that come from outside the person. Obviously, people's motivations will be
different based on the situation and their personal traits. Many people are also motivated by
Increases in salaries, bonuses, supplements and other tangible rewards are known as external
incentives that come from outside the person. Obviously, people's motivations will vary based
on their situation and personal characteristics. Many people are also motivated by inherent
motivations such as self-interest, challenge, and self-satisfaction. Income from the physiological
part of Maslow's hierarchy of needs is low. Higher-level needs are met internally, while lower-
level needs are met mainly externally (with rewards such as payment, union contract, and
tenure).
Brown, B., & Anthony, S. D. (2011). How P&G Tripled Its Innovation Success Rate. Harvard
Business Review, 89(6), 64-72.
Ehrhart, M. G., & Naumann, S. E. (2004). Organizational Citizenship Behavior in Work Groups:
A Group Norms Approach. Journal of Applied Psychology 89(6), 960–974.
Galbraith, J. (1974). Organization Design: An Information Processing View. Interfaces, 4(3), 28-36.
Retrieved February 13, 2021, from http://www.jstor.org.ezproxy.myucwest.ca/stable/25059090
H-E-B Dethrones Trader Joe’s as Top U.S. Grocery Retailer in the 2020 dunnhumby Retailer
Preference Index. (2020, January 8). Businesswire.
https://www.businesswire.com/news/home/20200108005201/en/H-E-B-Dethrones-
Trader-Joe%E2%80%99s-as-Top-U.S.-Grocery-Retailer-in-the-2020-dunnhumby-Retailer-
Preference-Index
Mallinger, M. (2017, October 29). The Trader Joe's Experience. Graziadio Business Review |
Graziadio School of Business and Management | Pepperdine University.
https://gbr.pepperdine.edu/2010/08/the-trader-joes-experience/
Redman, R. (2019, January 9). Trader Joe’s takes top spot on grocery retailer ranking.
Supermarket News. https://www.supermarketnews.com/consumer-trends/trader-joe-s-
takes-top-spot-grocery-retailer-ranking
Strailey, J. (2020, September 17). Has Trader Joe’s Proven It Doesn’t Need Digital? Winsight
Grocery Business. https://www.winsightgrocerybusiness.com/retailers/has-trader-joes-
proven-it-doesnt-need-digital
What Is Trader Joe’s Hiding? (2013, December 22). Food Babe. https://foodbabe.com/what-is-
trader-joes-hiding/
Allaway, A. W., Huddleston, P., Whipple, J., & Ellinger, A. E. (2011). Customer-based brand
equity, equity drivers, and customer loyalty in the supermarket industry. Journal of
Product & Brand Management, 20(3), 190-204.
Bain, C., & Dandachi, T. (2014). Governing GMOs: The (Counter) Movement for Mandatory and
Voluntary Non-GMO Labels. Sustainability, 6(12), 9456-9476.
Kowitt, B. (2010). Inside the secret world of Trader Joe’s. CNN Money.
Case 2: You Can't Do That (Questions 4 and 5)
Paul Fromm is a high school teacher employed in one of the most ethnically diverse school
districts in Canada. He is an excellent teacher and receives high ratings from his students.
During weekends and summer holidays, when he is not working, he participates in conferences
held by white supremacists and anti-Semitic groups. For instance, he attended a conference at
which swastikas were waving, and individuals gave Nazi salutes. Fromm also attended a
celebration of Adolf Hitler's birthday.
Though it is known that Fromm attends these conferences, he has never expressed racist views in
the classroom or discriminated against any student. "I am here to teach English, not to make a
political statement. This is my job, that's what I do. And I do it very well," he says.
The school board and some of the teachers are upset with Fromm's behaviour. They feel that
what he does, even though outside of work time, is not consistent with the school board's values
of encouraging multicultural diversity. Some suggest he should be fired.
Questions
This is a very sensitive issue and relates to topics such as diversity and justice in the workplace,
as well as human rights and freedoms. Before offering a viable solution or deciding what actions
is required to address this, we need to be aware of Canadian Human Rights Law and school
board discriminatory regulations. These laws endeavour to prohibit discrimination and
organized hate against minorities and communities based on their race, religious beliefs,
gender identity and gender expression.
However, these laws do not penalize people merely for what they believe or what they do in
their private lives, so long as they don’t violate the law. Equity in a workplace means
everyone receives fair treatment. However, as a teacher, Fromm has never expressed racist
views in the classroom or discriminated against any student. And as such, he cannot be
penalized merely because of his wrong views.
However, beyond the legal implication of Fromm’s neo-Nazi affiliations and its relevance to his
career is its ethical connotation. Canada is a cultures mosaic of diverse ethnicities,
religions and personal beliefs. Today, racial or religious supremacy is widely condemned in
our diverse society and is denounced by the majority of the people. In addition, this issue can
somehow leak into the headlines of newspapers and social media and damage the reputation
of the school. In this case, the school board can issue a warning letter to Fromm stating that
engaging in such activities may affect the public image of the school and ask him to cut ties with
neo-Nazi groups.
Fromm’s case reminds me of President Trump who defended neo-Nazis protesters, saying they
included “some very fine people,” after the riot in central Virginia, which ended in the death of
a woman and injuries to dozens of others (Gray, 2017).
As Elia (2017) pointed out that Richard Spencer, the de facto leader of the “alt-right”
white supremacist movement in the US, lucidly articulated that
You could say that I am a white Zionist – in the sense that I care about my
people, I want us to have a secure homeland for us and ourselves. Just like you
want a secure homeland in Israel. (Elia, 2017)
2. Should Fromm consider not going to further conferences of this sort?
Because the school board is upset about this behavior, it may be worthwhile to refrain from
attending these meetings, especially if a board issues a warning letter to him. The danger of
going to such meetings is that this issue can be revealed on social networks and in the news,
causing him and the school defamation and scandals. On the other hand, the fact that he is silent
about his views in class shows that he understands that there is a boundary between public and
private life.
Gray, R. (2017, August 16). Trump Defends White-Nationalist Protesters: 'Some Very Fine People
on Both Sides' The Atlantic.
https://www.theatlantic.com/politics/archive/2017/08/trump-defends-white-
nationalist-protesters-some-very-fine-people-on-both-sides/537012/
Levy, G. (2016, November 21). Suddenly it’s okay to be pro-Israel and anti-Semitic. Haaretz.Com.
https://www.haaretz.com/opinion/.premium-suddenly-its-okay-to-be-pro-israel-and-
anti-semitic-1.5463670
Elia, N. (2017, August 24). Birds of a feather: White supremacy and Zionism. Middle East Eye.
https://www.middleeasteye.net/opinion/birds-feather-white-supremacy-and-zionism