Question

Case 9 The Container Store’s Secret to Success: Employee Satisfaction.

3. Do you believe Tindell’s statement that highly satisfied employees will lead to highly satisfied customers and shareholders?

Answer 1

The statement that highly satisfied employees will lead to highly satisfied customers and shareholders is mostly true in the Container Stores’ context, but need not be true in all contexts. Herzberg’s two factor theory suggests that hygiene factors such as good pay, better welfare schemes, job security, paid insurance, vacations, employee engagements, etc. promote employee satisfactions. The motivating factors (called motivators) include, recognition for one’s achievement, challenging work, critical responsibilities, involvement in decision making, etc. promotes extra work from the employees. The co-founder and CEO Tindell is aware that only 25 percent of the job can be extracted from an employee through good pay, working conditions, etc. the balance seventy five percent commitment has to be gained by motivating the employees to perform higher. Probably, the CEO is including hygiene factors and motivators together as the employee satisfaction level and it is a perfect combination to be highly motivated and more cheerful. Motivated and cheerful employees are prepared and show readiness to serve the customers, through which higher profits can be gained. Higher profits lead to smiles in shareholders.