firms of endearment
The authors of the book Firms of Endearment (FoE) are calling present times as the “Age of Transcendence”. They suggest that today’s population wants more out of life than just material returns (p.xxxvii). People are looking towards self-realization and self-actualization more than ever. The authors build up enough evidence throughout the book to support on what they call the “stakeholder relationship management” (SRM) business model, that is based on Edward Freeman’s book (p.32). They clarify that this theory is not a moral code rather it is a sound business model that not just pays the employees well, but also makes good money for the investors and leaves the customers extremely satisfied.
Keeping in line with their stakeholder arguments, the authors believe that these FoEs make a conscious effort to connect with and take care of their employees. They understand that “good people working towards a common goal can accomplish anything they set out to do” (p.67). The authors’ contention about the FOEs behavior towards its employee is very much in line with Maslow’s Need Hierarchy Theory (p.207, KK). According to Maslow, motivation is a function of five basic needs. He placed these needs in the form of a hierarchy in which individual’s physiological formed the base of a hierarchy model with self actualization perched at the top. Other needs in are safety, love and self esteem. The theory suggests that once a need is satisfied, it activates the next higher need in the hierarchy (p.207, KK).
In one of the earlier discussions, the authors talk about how Wal-Mart is continually squeezing their employees to gain more profit (p.67). The authors also provide the example of Wegmans Food Markets which believes in taking care of employees. Wegmans not just pays an above average salary; they also offer affordable health insurance to their employees along with an attractive 401(k) retirement plan. They even allow employees to work towards their educational goals by
Keeping in line with their stakeholder arguments, the authors believe that these FoEs make a conscious effort to connect with and take care of their employees. They understand that “good people working towards a common goal can accomplish anything they set out to do” (p.67). The authors’ contention about the FOEs behavior towards its employee is very much in line with Maslow’s Need Hierarchy Theory (p.207, KK). According to Maslow, motivation is a function of five basic needs. He placed these needs in the form of a hierarchy in which individual’s physiological formed the base of a hierarchy model with self actualization perched at the top. Other needs in are safety, love and self esteem. The theory suggests that once a need is satisfied, it activates the next higher need in the hierarchy (p.207, KK).
In one of the earlier discussions, the authors talk about how Wal-Mart is continually squeezing their employees to gain more profit (p.67). The authors also provide the example of Wegmans Food Markets which believes in taking care of employees. Wegmans not just pays an above average salary; they also offer affordable health insurance to their employees along with an attractive 401(k) retirement plan. They even allow employees to work towards their educational goals by