1. A quick peek at ‘Modernist organization theory’ approach which the company did not take.

 The notion of the ‘ordered world’, the notion that chaos and disorder can be managed through
human will and intent. In organization theory, this suggests the development of systems,
bureaucracies and approaches to management that enables the creation of order in an
environment that is fundamentally disordered.
 A core feature of modernist organization theory is interest in the form of organization – the
bureaucracy – and how bureaucracy is located in society.
 Bureaucratic organization became the dominant form of design in many societies during the
twentieth century with its predominant modernist premise that its form fits the function of
effective and efficient organization.

How Joe Coulombe made Trader Joe’s take ‘Neo-modernist organization theory’ approach?

 Neomodernism represents the development of organization theory that is concerned with

putting people at the centre of the organization.
 In neomodernism, there is the development of interest in the ways that the values and beliefs of
people shape and are shaped by their experience of organizational life, leading to an interest in
organization culture, to the ways in which organizations ‘need’ to be designed around people
and to understanding processes of change.
 Joe Coulombe’s approach to organizing was to decentralize authority and empower salespeople
to take responsibility for meeting customer needs. Rather than instructing employees to follow
strict operating rules and to get the approval of their supervisor before making customer
specific decisions and provide personalized customer service. Coulombe’s approach led
employees to feel they “owned” their supermarkets, and he worked to develop a culture based
on values and norms about providing excellent customer service and developing personalized
relationships with customers.
2. Specific decisions to create Trader Joe’s organizational structure and culture.
 He set the theme behind the design of his stores; the feeling of a Hawaiian resort where
employees wear loud Hawaiian shirts, store managers are called captains, and store décor uses
lots of wood and contains tiki huts, where employees provide them.
 Created a policy of promotion from within the company so that the highest performing sales
people could rise to become the store captains and beyond in the organization.
 Decision that fulltime employees should earn at least the median household income for their
communities, which averaged $7000 a year in the 1960s and is $48000 today- an astonishingly
high amount compared to the pay of employees of regular supermarkets.
 Store captains, who are vital in helping create and reinforce Trader’s Joe store culture, are
rewarded with salaries and bonuses that can exceed $100000 a year.
 Created a possibility of promotion opportunities of getting such salaries and rewards to the
salespeople as the chain expands to new locations.
3. Trader Joe’s performance today.
 On April 23, the California-based chain quietly created its own YouTube channel so folks
nationwide could enjoy all things Trader's, all the time. As of Friday, the company had just over
1,700 subscribers.
 Consumers have voted Trader Joe’s the top U.S. grocery chain in America for the second year in
a row, according to Dunnhumby’s annual Retailer Preference Index. That’s in part because
Trader Joe’s stresses great customer service. (Did you know that you can ask an associate to try
any of the products in-store? You can!)
 The chain offers lots of bargains as well as quirky products you don’t see anywhere else, which
helps it stand out from the crowd. But it’s often those specialty items, as well as certain other
staples, that can end up costing you, according to frugal shopping expert Lauren Greutman.
“They do such a great job marketing and packaging and making everything look pretty, so we
spend a lot of extra money,” she says. Save your cash on these products that are not worth
buying at Trader Joe’s.
 The chain ranked low on Greenpeace’s sustainable seafood report card. The packaging is
excessive, with even the produce sealed in plastic. The business model forces consumers to buy
in quantities large enough to encourage waste. And most of Trader Joe’s products are made on
equipment shared with everything you might be allergic to (dairy, nuts) or philosophically
opposed to eating (dairy, meat).
—Cameron Scott, San Francisco Chronicle, 2013
 The retailer has been characterized as “notoriously secretive” and has been criticized for a lack
of transparency by management about the sources of products such as organic milk.
 In September 2013, in response to the implementation of the Affordable Care Act (ACA), Trader
Joe's explained that it would require part-time employees to work an average of 30 hours per
week to qualify for medical insurance (with free coverage for basic dental and vision care still
available for all Crew Members who work an average of 15 hours or more per week). Part-time
employees not qualifying would now be eligible for plans available under the ACA (but available
only to those whose employers do not offer them an insurance plan). Those working full-time
were unaffected.
 In June 2017, Trader Joe's launched the “puff dog”, a roll of spiced sausage meat wrapped in
puff pastry, which it claimed to have invented. Social media and British and Commonwealth
media pointed out that the sausage roll was a traditional British savory snack, where bakery-
chain Greggs sells around 2.5 million sausage rolls per week.
 Trader Joe's is taking more steps to reduce plastic waste, reports SF Gate. The company was
facing mounting criticism for an "overuse of packaging," particularly in its produce section.
The retailer is listening to customers' feedback on the issue and stopped offering single-use
plastic carryout bags in stores nationwide. Additionally, Trader Joe's replaced plastic produce
bags with biodegradable and compostable options.Other changes at Trader Joe's include selling
more produce as loose items, eliminating plastic sleeves on greeting cards by replacing them
 with compostable material, and changing plastic wrappers for flower bouquets to a renewable
material.
 Taking the case of Thomas Nagle, an employee at a Trader Joe’s in Manhattan, who last week
filed a complaint with the National Labor Relations Board, a government agency in charge of
enforcing US labor law. Nagle alleges he was fired for having a bad attitude, according to the
New York Times, and repeatedly reprimanded by managers who found his smile and demeanor
to be insufficiently “genuine.” He also described pressure tactics by his less-than-cheery Trader
Joe’s managers, who used the store’s loudspeaker, for instance, to chastise workers for talking
to each other while working. Forcing employees to act happy only makes them more miserable.
The practice of mandating positive attitudes is becoming more common but resulting confusion
can end up making employees more fearful than cheerful. Research has shown that forcing
workers to put on a happy face is bad for the bottom line.
 And some flaws from the costumers behalf at the stores:
 Abusing the store's sampling policy
 Acting impatient when it comes to finding products
 Leaving frozen items all over the store
 Discarding trash throughout the store
 Making snarky comments
 Crumpling and tossing away receipts at the register
 Forgetting that crew members are people