High Performance Work System: The Container Store

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The Container Store was referred to as a Great Place to Work, a Best Retail Brand, and one of Fortune Magazine’s 100 Best Places to Work, (Noe, pg. 294), but does this make them a high performance organization? The Container Store’s CEO, Kip Tindell believes that the employees correlate with customers and if you keep the employees happy then the customers will be happy. He believes that if both are happy, they will have sales and profits, and then the shareholders will be happy too. It is mentioned that the Container Store hires talented salespeople. Their hiring process includes about eight interviews, containing a panel interview with group of co-workers. They are selective, hiring only 3% of applicants. They say they want one great employee …show more content…
271). The factors that can lead to a high-performing work system are the organization’s structure, job design such as tasks designed, people, reward systems, and information systems that allow organizations to share information widely. The main outcome of a high-performance work system is hitting the organization’s goals, which can include growth, productivity and high profits. While the Container Store seems to be a great place to work, provide training, enable empowerment, compensate well and select great people, there are many pieces missing to make them a high performance organization. Their training does not foster continuous learning, nor does it mention how it promotes knowledge sharing. It does not speak to a team based environment, but talks more about the individual employees and customer interface. Their organizational structure is not addressed for how the rest of the company, outside of salespeople, lead to their success and to the goal of profits. Their rewards system does not tie back to the end goal for the company. Therefore, employees may not be as incentivized to contribute at their top abilities with quality work. Ethics did not play a part in why they do what they do, or how the organization promotes ethical behavior. In …show more content…
HRM can contribute to high performance through designing jobs that incorporate teamwork and empowerment of the employees, and recruit and select employees who have the qualities necessary for teamwork, empowerment, and knowledge sharing (Noe, pg. 280). HR can also provide specific jobs training, create a learning organization, and assure that performance management is related to the organization’s goals. Correspondingly, they need to assure compensation is linked to performance. While making improvements they should focus on HRM as a whole instead of just two isolated practices. Then, HR Managers will need to analyze the effectiveness of HRM to ensure they are helping the company. To do so, they can utilize the customer-oriented approach, an HRM audit, or analyzing the effect of specific HRM programs or

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