Costco Motivation Essay

647 Words2 Pages
bulb-icon

Recommended: Importance of motivation in organizations

There are two main types of motivation when people work for an organization: intrinsic and extrinsic. From those two, various types of motivation can be derived ranging from achievement and competence motivation to fear motivation. Costco utilizes various motivational techniques and we can analyze them from the traditional, human relations, and human resource approach to determine how Costco is different from most retail store of similar size. From the Human Relations approach, Costco has a low turn-over rate even with the use of part-time workers, the insurance enrollment period is lower than that of other retail stores, and the portion of health care premium paid by the company is over 92% From the traditional view, Costco has a higher wage on average, well above that of minimum wage by at least 40%. From the human resources perspective, Costco chooses most of its management position from its internal workforce. …show more content…

This is a type of extrinsic motivation. Their desire to perform are influenced by an outside source such as higher wages and rewards. It is one of the company’s policy to provide higher than average wages and have a retirement plan for all its employees. Workers start at $1 higher than the minimum wage, usually ranging from $8~9 an hour, and after 3-4 years they can earn up to $14 an

Show More
Related

  • Motivation At Dick's Sporting Goods

    607 Words  | 2 Pages

    through the corporate ladder is a great way to motivate employees, overworking might not be the best method, as it can cause burnout and unmotivated employees. Providing low pay and/or incentives to employees is also, in my opinion, not the best way to influence motivational employees who will put forth hard work, and be loyal to the company.

    Read More

  • A Comparison Between Whole Foods And Costco

    1165 Words  | 3 Pages

    “Culture is not the most important thing. It’s the only thing.” (Gabler, The Magic in the Warehouse, 2016). It has been said that “Costco acts more like a cheerful cult than a hard-driving business.” (Gabler, The Magic in the Warehouse, 2016). Costco hasn’t wavered from their founder’s strategy of promoting within; over 98% of their management started their careers with Costco. This strategy clearly works; the environment is one of family not just coworkers. They are loyal to the brand and motivated to work hard and climb the corporate ladder. Costco sees this as ensuring the future of their values which in turn ensures their

    Read More

  • Assignment: The Costco Craze (10 Points)

    885 Words  | 2 Pages

    1. Costco claims to break all the rules in retailing yet continues to be one of the most successful companies in the supermarket industry. In the context of the four P’s, select four unique Costco tactics identified in the video and explain how each of them help drive Costco’s success in the market (5 points).

    Read More

  • Costco Value Chain Analysis

    1169 Words  | 3 Pages

    In business, the mantra that success comes to those who can recover from setbacks is widespread all over the world. One of the organizations that poignantly illustrate this element is Costco. Costco is a warehouse firm that was founded in 1976 in San Diego. Although many people may envy the company as its owners enjoy huge success in the warehouse and retail industry, what the majority of individuals do not know is that in the first year of operations, Costco lost $750, 000, but after 3 years, the company had $1miilion in profit, 900 employees, and 200000 members. This shows that in business, the strategy can be the difference between success and failure. This essay describes how Costco has undergone evolutionary changes from its inception

    Read More

  • The Importance Of Motivation At USAA

    1042 Words  | 3 Pages

    When employees were asked, what factors could be changed at USAA to help maintain employee motivation levels, a couple of them answered with, “higher wages” and “more money”. This response corroborates other studies regarding pay which state surveys will more likely under emphasize the importance of pay relative to other motivational factors. (Rynes, Gerhart & Minette, 2004). “Financial incentives had by far the largest effect on productivity of all interventions. For example, pay was four times more effective than interventions designed to make work more interesting.” (Rynes, 2004). One reason for this phenomenon is social desirable responding. It should be noted, that although pay may be under reported, the results indicate other factors are also important for employee

    Read More

  • Job Redesign And Workplace Rewards Assessment

    1506 Words  | 4 Pages

    Intrinsic and extrinsic types of motivation have been widely studied and the understanding of each has led to great changes in how organizations run their businesses. It is clear that hourly employees have many great extrinsic motivators but lack intrinsic motivation in their job assignments which is a characteristic of our work culture. Changing the culture is one of the keys to improving motivation at that level of the organization because the best motivation occurs when employees perform because they want to and not because they are being made to do so.

    Read More

  • Harrah's Entertainment Case Analysis

    861 Words  | 2 Pages

    Many of Harrah’s employees deemed the goals set by Winn’s current incentive program to be unrealistic; on the other hand, others felt a sense of entitlement for bonuses. Therefore, Winn’s job is to provide a recommendation to Gary Loveman, on how to motivate and get employees energized. In order to motivate the employees, Winn had implemented an incentive pay plan to rewards Harrah’s employees in all of its properties for improving customer service. The company’s purpose for incentive program was to implant a competitive mindset in its employees as well as to show the employees that they are core of the...

    Read More

  • Abolishing Poverty in The United States

    587 Words  | 2 Pages

    people to work overtime or even two jobs in order to make more than the people

    Read More

  • How Does Costco Compensate Their Employees Too Well

    237 Words  | 1 Pages

    With how low Costco's prices are, there is always speculation to whether Costco compensate their employees too well. Costco’s management team firmly believe that their high compensation of employees is one of their competitive advantages of their company; ultimately, it makes sense that it is high. The Costco team consists of 117,000 full-time employees and 88,000 part-time employees who love their company and are constantly promoting it to everyone that they meet because they are pleased with the company in general and their compensation. The company believes that its employees should have the right to receive good wages and good careers. This results in high retention and a low turnover rate. This kind of practice has resulted in a very low

    Read More

  • Analyzing Costco's Corporate Strategy

    1423 Words  | 3 Pages

    Most major retailers maintain the mentality of low prices along with low wages and minimal benefits to employees. Costco follows a different business model of paying employees more and treating them better attempting to make them more satisfied ergo, providing better customers service. Founder James Sinegal believed

    Read More

  • Environmental Factors Affecting Costco

    785 Words  | 2 Pages

    Costco being a wholesale company they needed a large number of employees to meet the demand of the customers. With the placement of their locations in high populated areas made it easy for Costco to find suitable employees to work in the stores. The number of employees needed to operate was so large that it increased the stores productivity which helped to grow and succeed in the market of wholesale.

    Read More

  • Nordstrom Case Analysis

    777 Words  | 2 Pages

    The Nordstrom department store empire has been one of the leading companies in the fashion market. They generated over 2.5 billion dollars in sales last year, yet they are facing several internal problems. While Nordstrom strives to have the best customer service in the industry, living by the “Nordstrom way” has caused some hardships on the companies’ employees. An in-depth analysis of the sales position at Nordstrom using the job characteristic model reveals that the job design may moderately increase employees intrinsic motivation, but it is lacking in several areas.

    Read More

  • Sears Case Study

    1043 Words  | 3 Pages

    First, in relation to the organization’s most important asset, people, Sears has failed to recognize the distinctive competences that lie in the skills and abilities of their own employees. Sears once was a very successful organization in relation to how they treat their employees. Sears was one of the pioneers of measuring employee engagement in the retail industry by creating a set of measures known as Total Performance Indicators. People who enjoy going to work every day, as a result of a high-performing company culture, increases their productivity, giving them a higher return on salary. This model of employee engagement worked very well for Sears in the past, however, in recent years, Sears has strayed away from this core competency.

    Read More

  • Motivation Analysis Of Wal-Mart

    1227 Words  | 3 Pages

    The organization I chose is Wal-Mart. Wal-Mart is a department store chain known for providing consumers with goods at extremely low prices they offer customers abroad range of goods. Wal-Mart offers an array of services like the money center, pharmacy, photo services, etc. One of their newer services I found interesting is grocery pickup I think this service is very convenient for a busy person. You can go online order your groceries and then pickup at the store. Their customer or client base ranges all over the place however, they tend to have more female shoppers than males when examining the primary household shopper ratio. Walmart's 150+ distribution centers are hubs of activity for their business. Their distribution operation is one

    Read More

  • Is Money Really an Effective Motivator?

    1057 Words  | 3 Pages

    Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.

    Read More

More about Costco Motivation Essay

Open Document