Motivation at The Container Store There are many motivation theories. Part of what makes a given manager a high performer is his or her ability to motivate workers. The more managers understand about motivation, the better they are at choosing the appropriate motivational technique for given circumstances. The Container Store recognizes this and uses many types of motivational techniques. Because they are so successful at motivating employees, turnover at the Container Store is 11 percent in an industry which regularly sees 100% or greater turnover. How well can you identify the motivational theories that underlie the Container Store’s efforts? Kip Tindell and Garrett Boone founded The Container Store in Dallas, Texas, in 1978, and Tindell currently serves as CEO and chairman (Boone is chairman emeritus). When they opened their first store, they were out on the floor, trying to sell customers their storage and organization products that would economize on space and time and make purchasers’ lives a little less complicated. The Container Store has grown to include 79 stores in U.S. markets from coast to coast; whereas the original store in Dallas had only 1,600 square feet, the stores today average around 25,000 square feet. The phenomenal growth in the size of the stores has been matched by impressive growth rates in sales and profits. Managers at The Container Store are often found on the shop floor, tidying shelves and helping customers carry out their purchases. And that, perhaps, is an important clue to the secret of their success. The Container Store has been consistently ranked among Fortunemagazine’s “100 Best Companies to Work For” for 17 years running. In 2016 The Container Store was 14th on this list. Early on, Tindell and Boone recognized that people are The Container Store’s most valuable asset and that after hiring great people, one of the most important managerial tasks is motivating them. One would think motivating employees might be especially challenging in the retail industry, which has an average annual turnover rate of 100 percent or more. At The Container Store, however, annual voluntary turnover is less than 10 percent, a testament to Tindell’s and other managers’ ability to motivate. Tindell and Boone have long recognized the importance of rewarding employees for a job well done with highly valent outcomes. For example, the average annual pay for salespeople is around $48,000, which is significantly higher than retail averages; and employees receive merit pay increases for superior sales performance. To encourage high individual performance as well as teamwork and cooperation, both individual and team-based rewards are given at The Container Store. Some high-performing salespeople earn more than their store managers, which suits the store managers fine, as long as equitable procedures are used and rewards are distributed fairly. Professional development is another valent outcome employees obtain from working at The Container Store. Full-time salespeople receive over 240 hours of training their first year, and all employees have ongoing opportunities for additional training and development. Employees also have flexible work options and flexible benefits; medical, dental, and 401(k) retirement plans; job security; a casual dress code; and access to a variety of wellness programs ranging from yoga classes and chair massages to a personalized web-based nutrition and exercise planner. Another valent outcome is the opportunity to work with other highly motivated individuals in an environment that exudes enthusiasm and excitement. Not only are The Container Store’s employees motivated, but they also look forward to going to work and feel as if their coworkers and managers are part of their family. Employees feel pride in what they do—helping customers organize their lives, save space and time, and have a better sense of well-being. Hence, they not only personally benefit from high performance by receiving highly valent outcomes but also feel good about the products they sell and the help they give customers. Tindell and other managers at The Container Store evidently have never lost sight of the importance of motivation for both organizations and their members.
1. The case states that “some high-performing salespeople earn more than their store managers.” Most people who earned less than those working under them would probably feel this represents ________ inequity.
A. valence
B. informational
C. overpayment
D. self-actualization
E. underpayment
2. At The Container Store, some high-performing salespeople earn more than their store managers. However, the case points out that this is okay with the managers because the managers feel ________ justice has been satisfied.
A. procedural
B. organizational
C. self-actualization
D. informational
E. expectancy
3. The case suggests that one reason for the success of The Container Store is that it offers ________ rewards—rewards that are desired by the workers, as motivators.
A. instrumental
B. emotional
C. expectant
D. equitable
E. valent
4. The Container Store pays wages that are well above the average for the industry. When a company offers employees pay that enables them to have a home and food and the other basic necessities of life, it is fulfilling Maslow’s _____ need.
A. existence
B. belongingness
C. equity
D. physiological
E. love
5. At The Container Store, employees and managers enjoy and look forward to coming to work. They feel that their coworkers and managers are part of their family. The Container Store enables workers to fulfill Maslow’s ________ need, the need for social interaction and friendship.
A. belongingness
B. esteem
C. expectancy
D. self-actualization
E. physiological
6. The Container Store offers a great deal in the way of professional development, opportunities to enhance one's knowledge and skills and to increase one’s potential. This means The Container Store helps workers fulfill their ________ need.
A. hazard
B. education
C. belongingness
D. self-actualization
E. esteem
7. The Container Store has been in business for almost 40 years. Employees can look back at its history and see that The Container Store has consistently rewarded high performance. Employees therefore have high ________ beliefs, according to expectancy theory.
A. expectancy
B. equity
C. instrumentality
D. valence
E. actualization