Herman Miller.
Herman Miller: Role Model in Employee and Environmental Relations
Case Summary and Questions for debate
The company had been a model for almost 70 years until the 1990's
EMPLOYEE RELATIONS
Used as example of superb employee relations in business text books like o A Passion for Excellence o The 100 Best Companies to Work For in America
Interesting point of how the founder named the company after his father-in-law, giving honor to him who supported the business both in financial start-up and via family
The DuPree family maintained a paternalistic relationship with their employees
DuPree family brought their devout, faith influenced values to the company in various ways: o Kind, gentle tones with employee communications o Profit sharing and employee incentive programs (before they were popular) o Participative management methods o Silver parachutes for those who might lose their jobs o Considered the employees as vice presidents o Salary of top executives were not more that 20 times the average wage of the line worker o Evaluations given to and by employees every six months
Results and evidence of Excellent Employee Relations include o Loyal workforce o Development and movement from within the company o Gifted design teams o Commitment to doing what was right (rather than what was best)
ENVIRONMENTAL RELATIONS
Stopped using two species of trees for their rosewood signature piece "Eames chair" when it was discovered they came from vunerable rain forests
90% cut in trash hauled to landfills
Built $11 million waste-to-energy heating and cooling plant resulting in $750,000 annual savings in fuel and landfill costs
Ceased use of Styrofoam cups and distributed 5,000 mugs to compensate o on spaceship earth there are no passengers . . only crew'
Exceeded Clean Air Act requirement with ethically correct' machines built to incinerate 98% of the toxic solvents from the staining of wood
Herman Miller Case
Case Summary and Questions for debate
The company had been a model for almost 70 years until the 1990's
EMPLOYEE RELATIONS
Used as example of superb employee relations in business text books like o A Passion for Excellence o The 100 Best Companies to Work For in America
Interesting point of how the founder named the company after his father-in-law, giving honor to him who supported the business both in financial start-up and via family
The DuPree family maintained a paternalistic relationship with their employees
DuPree family brought their devout, faith influenced values to the company in various ways: o Kind, gentle tones with employee communications o Profit sharing and employee incentive programs (before they were popular) o Participative management methods o Silver parachutes for those who might lose their jobs o Considered the employees as vice presidents o Salary of top executives were not more that 20 times the average wage of the line worker o Evaluations given to and by employees every six months
Results and evidence of Excellent Employee Relations include o Loyal workforce o Development and movement from within the company o Gifted design teams o Commitment to doing what was right (rather than what was best)
ENVIRONMENTAL RELATIONS
Stopped using two species of trees for their rosewood signature piece "Eames chair" when it was discovered they came from vunerable rain forests
90% cut in trash hauled to landfills
Built $11 million waste-to-energy heating and cooling plant resulting in $750,000 annual savings in fuel and landfill costs
Ceased use of Styrofoam cups and distributed 5,000 mugs to compensate o on spaceship earth there are no passengers . . only crew'
Exceeded Clean Air Act requirement with ethically correct' machines built to incinerate 98% of the toxic solvents from the staining of wood
Herman Miller Case