Case Review for Organizational Theory - Free Paper Example

Introduction

Costco is a wholesale membership club that delivers quality services and products at lower prices to customers. The organization has several locations that provide a variety of alternative merchandise and membership services through its website. The organization founded its first branch or store in 1976 under a different name, Price Club. Later, management opened a Costco warehouse in Seattle. Price Club and Costco merged in 1993 and decided to retain the name Costco. It was not until 1997 that it was changed to Costco Wholesale Corporation.

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Culture of Costco and its Contribution to Success

The culture of Costco contributes a lot to its success. Some of the organizational cultures that have kept the company on edge include a common goal for excellence, teamwork, positive attitudes, service orientation, fast pace, and high energy. The entire stakeholders share the common goal of excellence. The organizational high top-notch workers emphasize performance excellence. The firm works by the narrative that good enough is never enough. Therefore, this element of organizational culture pushes the workers to attain quality services to satisfy the consumers. Most importantly, focusing on excellence results in the employee's personal and career development.

High energy and fast pace are other organizational cultures practiced at Costco. Through efficiency, high energy, and pace, optimal productivity is maintained. The customers are satisfied based on the efficiency and high speed of the services. Costco has a culture of teamwork where the performances increased through the help of the synergy of teams. Through teamwork, workers become flexible, which enables the organization to handle the variations in consumer preferences.

The culture of a positive attitude is highly recognized at Costco. This involves friendliness, which attracts the customers to the store. More so, the employee’s morale is also improved. Service orientation is another element of culture at Costco practiced by aligning employees to quality service.

Motivating Employees

The employees at Costco are highly considered and motivated. Costco keeps the workers motivated through a high salary, among other benefits. The company works with the narrative that happy employees result in a happy community, including customers. Furthermore, I would like to work for Costco since it offers its workers a gym and healthcare membership. The workers not only become healthy and satisfied but their families who depend on them as well. This action increases loyalty and reduces the rate of turnover of employees. Some of the organization's healthcare benefits include dental, substance abuse and mental health, vision and hearing, and medical health coverage. Only a few organizations offer a wide range of healthcare benefits like Costco; therefore, I would gladly work with the organization. Apart from healthcare, other benefits offered include life insurance, accident, death and dismemberment insurance, disability insurance, and long-term care insurance.

Furthermore, a 401(K) plan, basic Money management data, and a stock purchase plan are offered. To make the deal more attractive, the organization offers a platform to make workers healthier through personal wellness activities. The firm also has reimbursement accounts to enable their worker to pay out-of-pocket medical expenses, pretax commuter expenses, and child or even eldercare expenses. Therefore, discussed above are factors that make the company more attractive and experience a low employee turnover rate.

Addressing Environmental Issues

At some point, the organization was found improperly disposing of the waste products, and the California district attorney offered to investigate the case. The searches in the stores confirmed the suspicion. The organization illegally decomposed hazardous waste material such as pharmaceuticals, tire repair items, and in-house cleaning products. The waste management system was poor such that they settled on decomposing them in the nearby landfills. The company’s environmentally harmful activities can easily get into water and air, resulting in harm to animals, plants, and even human beings.

Costco is carrying out various strategies to reduce the environmental impact of future generational sustainability. The organization should try to avoid the use of traditional plastics that are not environmentally friendly. The issue can be remedied by investing more in Natralock materials that reduce packaging fees, are safe, and increase production speed. The organization should also maintain its carbon footprint. The energy management system, including water and electricity, should be improved. Also, the packaging design systems should be environmentally friendly and safe. More importantly, the organization should improve the waste stream and the recycling management system.

Social Responsibility

Costco generates profit for certain shareholders; it has the legal liability where it must be responsible for the environment, community, workers, and consumers. Costco takes part in several initiatives as far as social responsibility is concerned. The first social responsibility conducted by the company is paying the workers more compared to other companies. It practices corporate social responsibility by delivering new policies that enhance the services and address the stakeholder’s interests. Costco has a social responsibility to offer customers high-quality products at a lower price since they participate in its revenue and sales. Other services offered to customers include balancing service, frame adjustment services, free tire mounting, and vision screening. As a member, the consumer can buy house and vision insurance auto, and healthcare.

In addition to achieving the interests of all stakeholders, the company makes multiple contributions to the community. The organization supports community and family development while focusing on environmental protection. The organization’s charitable contribution gives out donations. This is implemented through grants that support education, human service, and children.