Download Chapter 12 Video Case Teaching Note

Chapter 12 Video Case Teaching Note
Patagonia
Teaching Objective: To observe a set of human resources policies and practices that are
successful in achieving exceptionally high levels of employee motivation, job
satisfaction, and organizational commitment.
Video Summary: Patagonia is a unique company that encourages its employees to focus
on environmentalism and other social issues about which they are passionate. The
employees love their jobs and are devoted to their employer. The company never has to
recruit, since it receives about 900 applications for every new hire. This video explores
Patagonia’s dedication to quality products and the environment and its human resources
policies, such “Let My People Surf,” internships outside the company, and benefits like
the corporate childcare center, all of which have led to unusually high levels of employee
commitment and customer satisfaction.
Questions:
1. What core values are important at Patagonia? How do these core values play an
important role in recruiting and retaining top employees?
Patagonia’s organizational culture comes from its commitment to the environment,
family, and other social issues. The company’s founder and managers believe that in the
course of making quality products, the earth comes first and profits are secondary. The
company is inundated with résumés from people who share its values, thus there is no
need to spend many resources on recruiting. Because employees come to work each day
with the attitude that they are making a difference, turnover is extremely low.
2. Why is Patagonia ranked annually as one of the best companies for which to
work?
Patagonia has created a workplace that helps employees balance the demands of the job,
family responsibilities, and their commitment to environmental causes. Workers get
generous benefits, including onsite childcare at headquarters. They are given the
flexibility to set their own schedules and are expected to go outside and play—using
Patagonia products, of course. They also get the opportunity to intern for an
environmental group for two months while remaining on the company payroll and to
serve on grant committees awarding company-donated funds to environmental activists at
the grass-roots level.
3. Why are people a critical component of Patagonia’s success? How do employees
help the firm gain a competitive advantage?
Patagonia’s success was built on its ability to serve an unmet market need by delivering
high quality, innovative products while reflecting the core values of its management,
employees, and customers. The employees’ talent, hard work, commitment, and
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dedication enhance Patagonia’s efficiency, quality, innovation, and responsiveness to
customers—the four building blocks of competitive advantage. The employees
continually demonstrate Patagonia’s values, which resonate with customers and build
strong loyalty.
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