Management Philosophy at The Container Store In 1978, three men launched The Container Store in a 1600 sq. ft. facility in Dallas, Texas. The store was designed to provide containers to help people organize their lives both at home and work. The Container Store's vibrant brand consists of 10,000 products with 50 stores across the country and $650 million in annual sales. For 12 consecutive years, The Container Store has been rated by Fortune magazine as one of the top 100 companies to work for. A motivational environment that puts employees first, customers second, and shareholders third, has helped the company achieve profitability and success. The Container Store management philosophy is: If employees are happy and taken care of, they will treat the customers in the same fashion. The secret to success, according to company CEO Kip Tindell, is our outstanding customer service. The Container Store achieves this core principle through employee teamwork. The management structure is transparent and flat, not hierarchical like many firms. Additionally, the company provides significantly more employee training than the industry norm. The company emphasizes its seven core principles with the focus on building relationships with its customers. According to Tindell, The Container Store cannot compete with Walmart on volume, but it beats them in relationship building. Employees are dedicated, motivated, and happy at work. In fact, The Container Store emphasizes the importance of employees having fun at work. According to employees, there are not only strong relationships and support among employees in each store, but also strong and open communication channels throughout the organization. Continuous improvement and shared responsibility are essential elements in building relationships with employees. Employees perform a wide range of tasks in each store, demonstrating the lack of silos in the company. The video briefly examines each of the major motivational theories beginning with scientific management and Fredrick Winslow Taylor. Elton Mayo's famous Hawthorne Studies in 1937 are also discussed, along with Maslow's Hierarchy of Needs, Herzberg's motivator factors, McGregor's Theory X and Y, and Ouchi's Theory Z. With each perspective, The Container Store approach illustrates key features of each of the motivational theories, emphasizing that happy employees result in employees providing outstanding customer service.

• published: 12 Sep 2013
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