Text: Better Business



Video Title: Patagonia: Human Resource Management

Length: 8:05

Classroom Application: Instructors may find this video relevant for discussing the importance of company culture and the role culture plays in motivating employees to do their jobs well. The employees at Patagonia are valued as people beyond the specific tasks they have been hired to complete. They are given respect and personal responsibility for the jobs assigned to them. As a result, the employees are motivated to work hard, and they gain a personal satisfaction from their positions at Patagonia.

This video also demonstrates the importance of developing a company mission that goes beyond the creation of a specific product or earning a profit. The mission at Patagonia is to build the best product possible, cause no unnecessary environmental harm, and inspire solutions to the environmental crisis. This mission resonates with all employees at Patagonia and is evidenced by their actions.

Synopsis

The mission at Patagonia is not specifically related to the apparel the company produces; instead, the mission is to build the best product possible, cause no unnecessary environmental harm, and inspire solutions to the environmental crisis. The benefits to employees working for Patagonia are unprecedented. Although the pay is slightly below the industry average, employees are given time off from work to try out the wetsuits the company produces, and employees are encouraged to put the needs of their families first. Workers are permitted to work flexible hours to accommodate this company value. Employees are also offered a period of 60 days in which they can work for a non-profit environmental organization and still receive their full paycheck. Much thought is put into the hiring of new employees at Patagonia, and ambitious, mission-driven people, with whom the core values of Patagonia resonate, are selected to fill open positions within this unique company.

Discussion Questions

1. How does the mission of Patagonia differ from other companies in their industry?

The mission of Patagonia is to build the best product possible, cause no unnecessary environmental harm, and inspire solutions to the environmental crisis. This is a mission statement that resonates with employees and gives them personal satisfaction, as they work together with other company employees to achieve this goal. This differs from the mission statement of many other companies in the industry that might refer only to a particular product or financial goals.

2. Patagonia has often been selected as one of the country’s best places to work. What benefits do employees receive that has earned the company this honor?

Employees are given time off to surf and test the wetsuits this company produces. They are also allowed to work flexible hours, putting the needs of their families first. There is an on-site daycare center for the children of Patagonia’s employees. Also, employees are given the option to work for a non-profit environmental organization, while continuing to receive pay for 60 days, allowing them to pursue their own personal passions.

3. What characteristics could be used to describe a candidate likely to be hired by Patagonia?

Patagonia looks for individuals who share the core values of the company. They must care about the environment and be willing to do their part to ensure no unnecessary harm is caused by the actions of the company. Patagonia also looks for mission-driven individuals, who are motivated by personal accomplishments rather than raises or new titles. Employees must also be self-motivated and responsible, allowing them to take personal responsibility for the tasks assigned to them.

Quiz

1. Which choice BEST describes the mission of Patagonia?

a. to create a great product

b. to take care of their employees

c. to resolve environmental issues

d. all of the above

Answer: d

Explanation: Patagonia is concerned with creating a great product, creating a pleasant environment for their employees, and resolving the environmental crisis. The company does not focus on just one of these goals but rather strives to achieve all three simultaneously.

2. Which describes the main purpose of the on-site daycare center at Patagonia?

a. to allow employees to work longer hours

b. to enhance the parent/child relationship between employees and their families

c. to decrease the length of maternity/paternity leave

d. to reduce the number of days employees miss work due to childcare conflicts

Answer: b

Explanation: Family comes first for the employees of Patagonia. This is supported by an on-site daycare center that cares for about 75 children. The center was established in 1984 as a way of enhancing the parent/child relationships within employees’ families. The children are able to see their parents at work, and the children’s presence at the company serves as a reminder of the overall mission of this business.

3. Which characteristic BEST describes an individual likely to be hired by Patagonia?

a. purpose-driven

b. dedicated to climbing the corporate ladder

c. motivated by external goals

d. rigid

Answer: a

Explanation: Employees of Patagonia are mission- and purpose-driven. They are motivated by internal personal goals rather than external goals, such as climbing the corporate ladder. They are also flexible and independent workers.

4. Which BEST describes the interview process used by Patagonia?

a. a one-to-one conversation with the owner of the company

b. a series of rigid exams designed to test the knowledge base of potential employees

c. a single group interview in which candidates are asked a specific list of questions

d. a series of group conversations from which members of the human resource team begin to know potential employees

Answer: d

Explanation: The human resource department describes their hiring process as a series of group conversations designed to get to know potential employees as a person beyond their job qualifications. The goal is to not hire anyone with whom they would not like to have dinner, as employees at Patagonia are encouraged to be entirely themselves while at work. It is important to select employees with whom the core values of the company will resonate.

5. What is the main purpose of Patagonia giving employees 60 days pay to work for a non-profit group?

a. Other employees are able to train in the positions formerly held by the absent employees.

b. It is a method of fulfilling the company’s mission to inspire solutions to the environmental crisis.

c. The company is able to take a large tax deduction for this service.

d. The company goes through cycles in which there is less business, making fewer employees necessary, and this practice allows them to avoid temporary layoffs.

Answer: b

Explanation: A significant part of Patagonia’s mission is to inspire solutions to the environmental crisis. Rather than simply making a donation each year to an environmental organization, Patagonia chooses to give the passion and drive of their employees. This allows employees of Patagonia to pursue their own passions and find personal satisfaction in taking part in such an endeavor.

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