Workplace democracy at Google, eBay, Starbucks, Nike, and JetBlue

Workplace Democracy

The issue of workplace democracy has long been a topic of debate. Some companies have developed a corporate structure with the concept of workplace democracy as its nucleus. The purpose of this discussion is to describe what workplace democracy is and how organizations effectively foster a climate of workplace democracy. The Organizations that will be assessed include Google, Jet Blue, Nike, Starbucks and eBay. Let us begin our discussion by defining workplace democracy and the purpose it plays in the development of a successful company.

Workplace Democracy

There are many different definitions of the subject at hand, according to Holtzhausen (2002) Workplace democracy is defined as system of governance which truly values individual goals and feelings (e.g., equitable remuneration, the pursuit of enriching work and the right to express oneself) as well as typically organization objectives (e.g., effectiveness and efficiency, reflectively conceived), which actively fosters the comnnection between those two sets of concerns by encouraging individual contributions to important organizational choices, and which allows for the ongoing modification of the organizations activities and policies by the group (Holtzhausen 2002, pg 32).

The article also asserts that workplace democracy serves as a necessary agent in challenging economic times. According to the author workplace democracy is necessary because it creates cohesion for an organization in times that are uncertain (Holtzhausen 2002). In addition, many supporters of workplace democracy view it as the only viable alternative to the types of authoritarian practices that were prevalent in the past (Holtzhausen 2002).

The author explains that there are for different dimensions of workplace democracy which include organizational level, degree of control, range of issues, and company ownership (Holtzhausen 2002). The organizational level dimension of workplace democracy involves where the actual participation takes place (ie individual, work group or industry level). The degree of control involves a consultative position in which workers present management with ideas and opinions (Holtzhausen 2002). The range of issues dimension of workplace democracy refers to whether the issues in the workplace are restricted to the immediate task environment or extended to macro organizational decisions as it relates to wages and personnel (Holtzhausen 2002). Finally, the company ownership dimension of workplace democracy involves such issues as stock ownership plans.

The author goes on to assert that workplace democracy necessitates good and fluid communication (Holtzhausen 2002). The article asserts that the amount of communication in the workplace is a sign of the extent of democracy in that workplace (Holtzhausen 2002).

According to the author "Communication in its democratic form is productive rather than reproductive (Holtzhausen 2002)."

Holtzhausen 2002 also asserts that workplace democracy improves information flow at all levels of an organization. In addition, workplace democracy improves employee satisfaction. The author points out that workplace democracy is also beneficial because it improves that organization's ability to change and adapt quickly and thus remain competitive. Now that we understand more about workplace democracy let us discuss workplace democracy at Google, Ebay, Starbucks, Nike and Jetblue.

EBay

Like Google, EBay has been able to thrive with an innovative business design. EBay serves as the world largest online auction site. The company was founded in September of 1995 and describes itself as "The World's Online Marketplace® for the sale of goods and services by a diverse community of individuals and small businesses. Today, the eBay community includes more than a hundred million registered members from around the world. People spend more time on eBay than any other online site, making it the most popular shopping destination on the Internet (Company Overview)."

The site sells everything from apparel to rare artwork. Ebay has mastered the art of allowing merchants to make a full time living through ebay. Ebay is unique in its design because the merchants are not employees of Ebay but the company benefits from fees associated with listings, sells and stores that the merchants own.

Because of the unique nature of Ebay's business strategy workplace democracy take on a new form. However. Ebay does offer some benefits that are similar to that of other companies. These benefits include "health coverage -- including dental and vision, tuition reimbursement and paid vacation -- we offer a generous 401(k) plan with company match, stock options with four years vesting, a discounted stock purchase plan, and bonuses based upon team performance (Full Spectrum of benefits 2005)."

Although Ebay is an extremely successful company it has been plagued with scandal. One such scandal took place among German Ebay employees who felt that there rights were being violated through the use of a technology known as Blue Pumpkin. Blue Pumpkin is activity manager software is a multi-channel adherence solution that collects data on how employees are actually spending their time throughout the day, tracking activity across all contact channels, including the phone, e-mail, chat, voice-over-IP, as well as research, training, and administrative tasks. The centralized tracking and reporting enables managers to immediately see any discrepancies between schedules and actual activity, and can quickly make necessary adjustments including authorizing adherence exceptions (ePay - troubles at eBay 2004)."

Although this technology was touted as a way to improve customer service, many employees believed that it demonstrated that top level employees were distrustful of lower level employees. In the end the technology was still implemented, however there is anomousity that exist at the company as a result.

In spite of this scandal and others the company has been able to foster some aspects of workplace democracy through the development of community standards and teamwork. The company attempts to ensure that workers feel that they are members of the ebay family and their suggestions are heard and changes are implemented as a result. However, it appears that in some ways workplace democracy at Ebay has been more difficult as the company has expanded quickly and drastically.

Starbucks

Starbucks is a name that has become synonymous with coffee. Indeed this company began in Seattle, Washington and has grown to a worldwide corporation and the largest coffee franchise in the world. Starbucks has long been recognized for the way that it treats employees. In particular the company's ability to provide health benefits to fulltime as well as part time employees was and still is almost unheard of in the food service industry.

Workplace democracy can be seen at every level of the organization. The company encourages participation and is able to accomplish participation through specific actions. These actions can be seen in the orientation of new employees. During orientation not only are new employees taught how to make Starbuck's drinks and various other regulations but they are also taught that Starbucks ability to operate is dependent upon teamwork and cooperation. In fact, Starbucks' employees are referred to as partners. The company's website reports that their ability to accomplish what we set out to do is based primarily on the people we hire - we call each other "partners." We are always focused on our people. We provide opportunities to develop your skills, further your career, and achieve your goals. At Starbucks, you'll find a commitment to excellence among our partners; an emphasis on respect in how we treat our customers and each other; and a dedication to social responsibility.We look for people who are adaptable, self-motivated, passionate, creative team players (Career Center)."

The company is able to implement workplace democracy through a benefits package that is designed to meet the needs of each employee (The Starbucks Experience, 2005). This benefits package is referred to as "Your Special Blend" and it allows the employees to participate in deciding the types of benefits that they will receive. This benefits packages includes Healthcare benefits (Medical, Prescription drugs, vision and dental, Management bonus plan, adoption assistance plan; referral programs; domestic partner benefits, retirement plan; discount on Starbucks products and all employees receive a pound of coffee each week (The Starbucks Experience, 2005).

The company is also dedicated to employee advancement and offers education and training programs (The Starbucks Experience, 2005). These programs cover such topics as Business Communication, and learning to lead. These programs serve the purpose of building the confidence of workers and improving the overall workplace environment, thus ensuring that the goals of the company are met (The Starbucks Experience, 2005).

The implementation of workplace democracy into the overall strategy of the company means that Starbucks values diversity and the opinions of the partners. The company asserts that At Starbucks, diversity is an essential component of the way we do business. We believe so strongly in embracing diversity that it is the second guiding principle in our Mission Statement. We strive to create a diverse workplace in which every partner's voice is heard and in which all our partners will succeed while learning from one another. We believe that building understanding, respect, and appreciation for different people contributes to our growth and to the growth of our partners (The Starbucks Experience, 2005).

Overall Starbucks strategy of insuring that its "partners" are satisfied with their careers and with the benefits available to them allows the company to foster a climate of workplace democracy. In other words because employees are valued and viewed as vital to the success of the company, they are willing work hard to meet organizational goals and the goals of the individual stores. In addition, they feel free and encouraged to share their opinions. They also have the confidence to know that their opinions will be heard and change will come as a result. Building this type of confidence in its "partners" has allowed Starbucks to become the large and successful company it is today.

Nike

Nike has long been a leader in the world of sports apparel. According to the company's website it is headquarted in Beaverton, Oregon. The Pacific Northwest is also where Nike began and it now has offices in countries around the world. The company currently employs 23,000 people. The company's employees are significant to Nike's mission of "bringing inspiration and innovation to every athlete in the world (About Nike)."

Workplace democracy is a vital part of bringing this mission into fruition. Along with benefits such as healthcare, life insurance and retirement plans, Nike has stringent codes of conduct to which employees must adhere. These codes of conduct put boundaries in place and allow employees the freedom of reporting when these regulations are broken. These codes of conduct came as a direct result that Nike dealt with in the past concerning Child and sweatshop labor conditions at factories abroad. Under the new codes of conduct employees have an obligation as a part of the Nike team to report violations. This ensures that Nike can go forward with the goals that it has of inspiring athletes through the company's apparel and footwear line.

In addition, workplace democracy is fostered through an ongoing commitment to the community and community service projects. Actually community service and charitable contributions are so important to Nike and its employees that Nike employees are active in the community. In addition, Nike asserts that They would likely be active regardless of where they worked. Many were active long before they began working for Nike - in some cases, it's why we hired them - and we've generally been very lucky to have so many giving people working for us. But we also take many steps to encourage our employees to be involved in the world around them...If a U.S. based employee contributes to a qualified non-profit organization, we match the contribution, dollar-for-dollar, up to $5,000 per employee per year. When a U.S. based employee volunteers for a qualified non-profit organization, we donate $10 for every qualifying hour of volunteer work. (In fiscal year 2005, Nike's matching contributions totaled more than $2.8 million in the U.S.)...In Europe, employee activism is encouraged through our Sport4ACause Fund. When employees engage in charitable sporting events, Nike matches the funds they raise. In the UK, our "EXTRA TIME" program gives employees six days per year for volunteer activities (Employee Involvement).

Indeed Nike has long been able to employ a strategy of workplace democracy through benefit plans and community responsibility. Nike's strategy of workplace democracy encompasses the idea that employees that serve the community will also be effective in serving the needs of the company. There is a premise that serving the community empowers the company to better serve the needs of consumers. Thus employees that participate in community service have a better understanding of the needs of the consumers which can be translated into new and innovative products.

Jetblue

At a time when many Airline carries are scrambling to stay afloat, Jetblue has been able to maintain stability as a low cost provider of air transportation. Indeed a significant factor in their ability to do so is the workplace environment that the company has created. Employment at Jetblue is based on five principles including Integrity, safety, caring, fun and passion (Culture).

The company understands that workplace democracy encompasses not only fluid communication at all levels but benefits that make employees secure in the present and in the future. Current benefits include medical, dental and vision insurance. Full time crewmembers receive medical insurance that allows them to see any doctor that they desire and they do not need a referral to see a specialist. In addition the part-time crewmembers are granted a traditional indemnity medical plan. The dental insurance is provided to all crewmembers and includes orthodontic services. The vision insurance is voluntary and allows for an exam and lenses every 12 months.

Jetblue also has group legal, which allows those who participate access to lawyers that can assists them with various legal matters including bankruptcy, living trusts and wills, estate planning and purchase.

Sale or refinancing of your home. In addition, other benefits offered by Jetblue include flexible spending, life insurance, disability insurance, home and automobile insurance, paid time off and discount programs.

For long-term security the company offers benefits such as a 401 (k) investment plan. Under this plan Jetblue matches the first 3% that an employee saves dollar for dollar. In addition, the company has Profit-Sharing and stock purchase plans. The company asserts that JetBlue crewmembers share in our success when we make a profit for the year.

Any profit sharing contributions are made once a year and are fully vested as soon as they go into your account. The profit sharing contribution for 2003 was a big 17% of pay...the Crewmember Stock Purchase Plan. The plan allows crewmembers to buy shares of company stock through payroll deduction every six months at 15% off the fair market value (Benefits 2005).

Indeed profit sharing is one of the main avenues that the company uses to foster workplace democracy. Profit sharing gives crewmembers an incentive to work hard because the profits that are made also impact the workers financially. Therefore the employees have the incentive to voice their opinions and top managers are obligated to listen.

Jetblue has been able to foster a climate of workplace democracy with their unorthodox approach to business and employee interaction. The unorthodox approach to businesses is seen in the manner in which the company has been able to charge customers considerably less for flights while offering them amenities such as leather seats, satellite television and headphones. Such changes force the company to interact with employees in a manner that is different from the more expensive carriers because the company depends on employees to ensure successful flights and keep consumers happy. According to Anderson (2004)

It really comes down to listening to our crew members. "We want to keep the small company feel," Barravecchio says. "We want to be high-touch and high-tech and take the mystery out of benefits...Last year, surveyed workers said they didn't have enough health care providers in Burlington, Vt., that were part of the company's PPO network. Even though JetBlue's existing PPO provider was available to 98% of employees, the company added another PPO plan to fill the gap in Burlington, Barravecchio notes "It was a good exercise for us because as we expand to other locations, we will have to deal with network issues more," he observes. "We are looking for scalability in our benefits (Anderson 2004)."

Conclusion

The unique thread that ties these companies together is innovation and the development of totally new business structures that require participatory actions from employees. These companies have been able to foster a climate of workplace democracy through communication, listening to employee needs and developing benefit plans that satisfy these needs.