How Joe Coulombe Used Ob to Make Trader Joe’s a Success Story

MARIA CHRISTY N. MAALAM

Subject: PA 221 – HUMAN BEHAVIOR IN ORGANIZATION

Semester: 2nd Semester, A.Y. 2015-2016

Day/Time: 5:30 – 8:30 PM

CASE 2: “HOW JOE COULOMBE USED OB TO MAKE TRADER JOE’S A SUCCESS STORY”

Organizations are composed of people. Organizations depend on people. In other words, there can be no organization without people. Organizations do what people do. An organization behaves the way its employees behave the way its managers direct it. The importance of people in organizations is immense because it is the people who does the work, who plan, design, implement, sustain and end and organization’s life.

Knowledge of OB is a great help to employees at all levels in the organization because it helps them to appreciate and understand the work situation and how should they behave to achieve their own goals. Knowledge of OB is most important to managers because they are the one who direct and supervise the activities of the employees.

Joe Coulombe faced the common challenge of finding ways to help his business compete against the growing 7-11 chain. He then decided to change his strategy. First in planning stage, a knowledge of OB can help improve the quality of decision making, increase the chances of success, and lessen the risks inherent in planning and decision making. During this stage, Coulombe established the organization’s strategy, by deciding to supply his customers with upscale specialty products, variety and brand of California wine, offered fine foods to complement and encourage wine sales.

Next, in organizing, OB offers many guidelines on how best to organize employees to make the most effective use of their personal skills and capabilities. Coulombe’s approach to organizing was to decentralize authority and empower salespeople to take responsibility for meeting customer needs. Employees were given autonomy to make their own decisions and provide personalized customer service letting them feel like an owner of a supermarket. He...