Essay about Costco Case Study

1581 Words Oct 6th, 2010 7 Pages
Costco Case Study

Leadership and Management II


In this paper you will read about how Costco uses effective leaders within its company to empower their employees and create a working environment that is enjoyable. This paper will aim to answer three questions: 1.) How does the flexible leadership theory apply to Costco’s operations? 2.) What is the CEO’s role in all of this? 3.) Can this work in your organization? If not, why?

After reading the Costco Case Study found in Gary Yulk’s book entitled Leadership in Organizations (7th Ed.), positive thoughts about how leadership has emerged and a feeling of confidence became eminent. Leaders really can be effective leaders and run a very productive company as shown by Jim
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His response from his employees, were letters of support. They trust that he is doing the right thing for his employees and he shows it by visiting each store at least twice a year and remember most of manager’s names. He’s not just a CEO with a name, but he’s a CEO with a name and face that truly cares about his people.

One of the questions from above is what is the CEO’s role in all of this? From reading the case study and other supporting material, his role is that he is an effective leader who cares about his company and his employees. He does everything in his power to ensure that his employees are taken care of and that their well beings are in his thoughts. Not only are his employees important to him, he also demonstrates a compassion for his customers. He had to make a decision that would save the company money, but he kept the best interest of the employee in mind and worked out a compromise that will benefit him and his employees.

From what this case study says Jim Sinegal is a very good leader and an effective one at that. Nahavandi (2009) says that the common thread in all these examples of effectiveness is the focus on outcome. One way to take a broad view of effectiveness is to consider leaders effective when their group is successful in maintaining internal stability and external adaptability while achieving goals (2009). From the case study, Sinegal seems to have a level head on his shoulders. His

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