Trader Joe's Management Style

This case study will examine the key management practices that make Trader Joe’s successful. Sound management practices have been a catalyst for the long-term financial success of Trader Joe’s. The literature review examines Trader Joe’s approach to management practices. The research will analyze the: employee job satisfaction, management practices, importance of human capital, and contingency planning.
Trader Joe’s has taken various strategic steps over the years to ensure employee satisfaction. These steps to encourage employee satisfaction include, but not limited to employee empowerment, training employees on products, and encouragement of promotion from within.
Employees are encouraged to take time to share their knowledge with customers

(Schermerhorn, 2012) defines Contingency thinking, “Recognizes that management practices must be tailored to fit the exact nature of each situation” (p.6). The research suggests that Trader Joe’s management is very formulaic in their approaches from defining and maintaining company culture to site location and advertising methods. Daft, R. L. (2015) States, The idea behind contingency theories is that leaders can analyze their behavior to improve leadership effectiveness” (p.17).
A strong upward and downward communication chain underscores the management and organizational style adopted by Trader Joe's. This means fostering a belief that the store group operates as a team and that individual opinions are valued, rather than an environment where people speak out and are either not heard or have their opinions suppressed (Workforce, 2005). (Schermerhorn, 2012) The company applies its pursuit of value to every facet of its operations” (p.W-99).
In this paper some of the sound management practices that Trader Joe’s utilizes in the daily operations have been highlighted. Through the effective application of these management practices, Trader Joe’s has morphed into the great company that it is