Tom's of Manie

INTRODUCTION

Tom Chappell built a small but extremely profitable business. This was achieved by empowering and valuing his staff members, providing products for consumers of high quality made of natural ingredients, putting quality goods for consumers before profits, having a good moral and ethical responsibility to the community. As Tom Chappell merged into a partnership with a Global company he was faced with the challenge of maintaining his company’s values and principles whilst having to align his business with the larger global market.

This essay will identify and describe six relevant management frameworks, concepts and or theories and apply it to Tom’s of Maine “Doing Business means Doing Good,” I will discuss McGregor's theory Y concept which relates to the assumption that people are willing to work, people like responsibility, are self-directed. I will also discuss, among other management frameworks, organisational culture, which is a system of shared beliefs that focus on observable culture. I will then conclude by selecting and applying one of the management frameworks to support the proposition that Tom Chappell’s business ethics and practice can still remain successful within a larger global market.

THE UPSIDE DOWN PYRAMID

The upside down pyramid framework, endorsed by J. M Jacka, is opposite to a traditional Pyramid framework where the top manager’s are placed at the top of the Pyramid and employees are rated poorly and at the bottom. The upside down pyramid shows top managers and CEO’s are replaced at the top by customers and clients which reflect the company’s primary role as being customer focused.

Employees are rated just below customers, they are empowered and encouraged to make decisions to improve the company’s performance. Managers are at the bottom of the pyramid and their main role is to support its workers.

The upside pyramid is consistent with Tom’s of Maine’s approach where customers are ranked the most important. He strives to provide customers with the highest quality environmentally friendly products. He values his employees, which is reflected in the traditional benefits they receive such as life insurance, medical insurance and retirement benefits. His employees are paid an extra 4 weeks maternity/paternity leave. Their attire at work is casual, which provides comfort for staff, they also enjoy flexible working hours over the summer period. Tom also provides free healthy food and drink options to his employees to promote personal health.

THEORY Y

Douglas McGregor (Management A VMS Approach, at p42) believes managers need to embrace the concept of Theory Y to best achieve the desired results of greater productivity and profitability within the company.