Communication 317-01
Dr. Michael Smith
2 March 2001
Each day countless disgruntled employees stand in front of a copier and dream about their ideal job. As the copies continue to roll out, they wonder what kind of place would appreciate them, care about them on a personal level and make them feel like an integral part of the operation. The irony present in this scenario is that just such an employment opportunity exists at perhaps the most recognizable chain of photocopy stores in the world, Kinkos, recently named one of the top 100 workplaces in the United States by Fortune magazine.
According to both Fortune and Kinkos employees, two major factors contributing to worker satisfaction with the organization are benefits and an open style of communication. These components make the workplace an agreeable atmosphere because they demonstrate a tangible appreciation for the employee’s efforts and let him/her be included in the decision making process. In order to comprehend why these elements are crucial in making Kinkos a good workplace, it is necessary to examine broader concerns. First, a description of the company and its goals is necessary in order to understand what the company does and to see how its treatment of employees fits into its overall mission. Next, employee relations must be considered in light of the Human Resources Model of organizational development in order to analyze the relationship between Kinkos and its employees.
Company
Description
In September 1970, a recent college graduate opened his first photocopy shop in Isla Vista, California, home to the University of California at Santa Barbara. He called it Kinko’s after the nickname given to him by college friends because of his curly, reddish hair (www.kinkos.com). This first store was located in the corner of a building that housed a taco stand and featured a single copier, offset press, film processing and a small selection of school supplies. 30 years later, Kinko's has expanded to over 900 branches in the United States, Canada, the Netherlands, Japan, South Korea, Australia, the United Arab Emirates, China and Great Britain (www.kinkos.com).
Kinko’s also offers a
multitude of services. All local stores sell every imaginable variety of
stationery as well as copying and binding in color or black and white. Kinkos
prides itself on the fact that every store has the ability to print or create
any document the customer desires in a timely fashion. They also have the
capability to set up video and teleconferencing equipment for rental and a
notary public is on duty every day at every location. As part of an ongoing
commitment to improve environmental performance, the organization has
implemented successful programs in most locations to recycle paper, reduce
energy demand, become more material-efficient and maintain a healthy workplace
for customers and workers (www.kinkos.com).
Besides experiencing tremendous physical growth since 1970, Kinko’s has also shown financial strength. The company reported an 18% earnings increase during fiscal year 2000 that was part of a 5-year trend of upward economic growth for the organization (www.kinkos.com). The photocopy monolith is supported by a workforce of 25,000 and enjoys an annual employee retention rate of 98.3% (www.kinkos.com).
This phenomenal level of employee satisfaction can be attributed to its corporate philosophy of balancing love, work and play. In order to embody this principle, Kinko’s offers its employees tangible benefits and an intangible atmosphere of self-worth. Kinko’s offers its workers full medical benefits, a 401 (k) retirement plan, scholarships, tuition assistance, store discounts, free legal advice and paid time off for illness, vacation, bereavement, holidays, jury duty and military service (www.kinkos.com).
In order to create an atmosphere of self-worth and the importance of personal contribution, the organization employs a number of tactics. Employees are never referred to as subordinates, everyone is a co-worker. According to the company’s mission
statement, “Our co-workers are the foundation of our success” (www.kinkos.com).
caring and motivated people. According to the
company mission statement, “Kinko's provides a strong company culture and
philosophy, created by co-workers, which focuses on mutual growth and
prosperity, open communications, mutual respect, concern for our environment
and community and living balanced lives” (www.kinkos.com).
It is important to note that co-workers are the ones who create the company culture and philosophy. This statement implies that employees hold a part in the decision-making process and that their input is both valued and appreciated. In order to gain a better understanding of what makes Kinko’s a good workplace, it is necessary to examine its relationship with its employees in light of the Human Resources Development Model.
Concept Description
The Human Resources Development Model was a radical departure from classical and scientific management theories. It pointed out that, “Motivation is not merely or social but also tied to one’s sense of self-worth or self-actualization” (Daniels, et al., 32). This model can be better understood through an examination of Maslow’s Need Hierarchy, McGregor’s Theory X and Theory Y and Likert’s Four Systems.
Maslow’s Need Hierarchy—Maslow claimed that motivational needs could be categorized into five categories: physiological, safety, social, esteem, and self-actualization. According to Maslow, any need at any given level must be fulfilled before moving on to a need at a higher level. For example, unless a human has shelter and food, he/she will not be motivated to seek out status or affection. Once the need is satisfied, a person will cease one form of behavior and adopt another according to the need he/she wishes to fulfill next. The one exception Maslow discovered deals with the need for self-actualization. He described it as a growth need. The process of fulfilling the need leads a person to seek further self-actualization as he/she realizes new talents and abilities and strives to find new ones. It is the one need based behavior that remains constant in humans and the only one that will lead to a true sense of success and self-worth (Daniels, et al., 32-33).
McGregor’s Theory X and Theory Y—Management theorists such as Douglas McGregor recognized great value in Maslow’s work. “If organizational goals and individual needs could be integrated. . . people would acquire self-actualization through work and motivation would be self sustaining” (Daniels, et al., 33). McGregor theorized that the key to combining self-actualization and the workplace lies in managerial trust of subordinates. He developed two sets of assumptions that affect managers’ trust of subordinates, Theory X and Theory Y (Daniels, et al., 33).
In Theory X, managers believe that employees dislike work and will attempt to avoid it. Employees do not like responsibility and want someone else to make all of their decisions for them. If managers want to achieve organizational goals, they must rely on threatening tactics. Belief in Theory X leads to mistrust and a stiflingly restrictive workplace atmosphere (Daniels, et al., 33).
In Theory Y, employees want to work. It is a natural desire to be productive. Employees are creative and have the ability to solve complex problems. Under the proper circumstances, employees will seek out responsibility and work toward achieving organizational goals to which they are committed. Belief in Theory Y leads to a climate of trust that is necessary for human resource development (Daniels, et al., 33). In order for human resource development to take place, open communication must not only take place between employee and manager, but also throughout the entire organization. Rensis Likert discussed the importance of such organizational communication in his four systems.
Likert's Four Systems--Likert developed four types of management systems: exploitative-authoritative (system 1); benevolent-authoritative (system 2); consultative (system 3); and participative (system 4). Likert's work is similar to that of McGregor. System 1 corresponds with Tehory X and system 4 corresponds with Theory Y. Systems 2 and 3 are located in the middle. Likert concluded that organizations with system 4 characteristics were more successful than organizations based on the other systems (Daniels, et al., 34). Because system 4 is the most beneficial to an organization, it is the only one that will be discussed in detail here.
In system 4, communication between superiors and subordinates is open and extensive. The decision making process is highly decentralized and is achieved through group discussion at all levels of the organization. Information flows freely in the organization both horizontally and vertically in all directions. Control processes are also decentralized. Motivated employees seek and receive feedback in order to exercise self-control over their actions (Daniels, et al., 34-35). When such a system is effectively put in place, there is a high degree of potential rewards for both the employee and the organization.
Concept Application
Kinko's is a great workplace because it has effectively implemented an organizational system that satisfies all three theories in the Human Resources Development Model. The organization helps fulfill the deficiency needs described by Maslow so that its employees may pursue self-actualization in the workplace. It also subscribes to McGregor's Theory Y, believing that employees want to work and that they have the abililty to accept responsibility and solve complex problems on their own. Lastly, Kinko's employs Likert's system 4, which allows employees to exert a high degree of influence over both their own actions and organizational decision-making.
Kinko's employs certain tactics and strategies in order to satisfy the theories present in the Human Resources Development Model. In order to help its employees fulfill the physiological and deficiency needs described by Maslow, Kinko's provides full medical benefits, paid vacation and sick time, a 401(K) retirement plan, educational assistance programs and free legal advice. Employees, therefore, are free to pursue the growth need of self-actualization and they discover self-worth at the workplace through personal growth.
A sense of trust between employees and management exists at Kinko's because the organization subscribes to McGregor's Theory Y. Management encourages employees to use their talents. According to the organization's mission statement, "We consider all co-workers part of the Kinko's family. We trust and care for each other, and treat everyone with respect" (www.kinkos.com). Kinko's believes in its employees and treats them like a valuable facet of the organization that has a vested interest in the company's progress.
Lastly, Kinko's is a great workplace because it actively employs Likert's system 4. Open communication is encouraged at all levels. "Our co-workers are the foundation of our success. We openly communicate our accomplishments and mistakes so we can learn from each other" (www.kinkos.com). The fact that information and communication flows freely throughout the organization, allows employs to take a participatory role in management. Kinko's states that its employees create the organizational culture and philosophy. By trusting its employees and allowing them to take a greater degree of control of their responsibilities and actions, Kinko's has created a workplace that is mutually beneficial to the employer and the employee.
Conclusions
Classical management theorists believed that people disliked work and that they needed to be controlled while they were there in order for organizational goals to be achieved. Kinko's has created a great workplace based on the idea that employees want to be more productive and that they can control themselves in the pursuit of organizational goals. This organization's effective use of the Human Resources Development Model proves that there is little room for classical management in today's progressive business environment.
Good pay and a benefits package are an important starting point for creating a great workplace. According to a Gallup study, great workplaces possess four qualities: employee retention, customer satisfaction, productivity and profitability (www.gallup.com). Kinko's possesses all of these qualities because of its workplace philosophy. A high employee retention rate stems from generous compensation and the engenderment of an atmosphere of trust on the part of Kinko's. Customer satisfaction, productivity and profitability are a result of free flowing communication and motivated employees who are prepared to accept responsibility and take control of it in the pursuit of organizational goals and self-actualization in the workplace.
Works Cited
Daniels, Tom D., Spiker, Barry K., & Papa, Michael J. (1997). Perspectives on Organizational Communication (4th ed). Boston: McGraw Hill.