Case Analysis: a Passion for the Planet

1. What role, if any, does McGregor’s Theory Y play at Patagonia? Explain. McGregor’s Theory Y plays a big role at Patagoina because of the beliefs and values Chouinard devoted to his company. According to Theory Y, by giving people incentives in the workplace, they become more committed to their job. Chouinard does a great job at rewarding his workers which include: covering half of college cost, bonuses, and two months off with full pay.

Giving the people these opportunities to reap the benefits of rewards, allows for company growth, a sense of camaraderie between everyone, and being proud to work for the company. 2. How does Patagonia build human and social capital? Patagonia builds human and social capital by having 39 stores in seven countries which allows for more growth in the company and providing jobs for the community. By providing a college education for its workers, it gives them the knowledge and skills needed to better their performance and move up in the company.Also Patagonia provides a day-care center to all its employees. This puts less weight on the employee because they don’t have to worry about finding a sitter; the comfort of knowing they’re in the same building gives them the opportunity to be more productive in the workplace.

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All these benefits and expansion of Patagonia builds strong and trusting relationships with not only the company but with Chouinard. 3. How does this case bring the profile of the 21st-century manager (Table 1-4) to life? Explain.Patagonia is definitely conforming to the standards of the “21st –Century Managers” by thinking outside of the box and having a balance in employee incentives, multicultural orientation, and direction. If Patagonia keeps up with the way in which they run their business, the company will just continue to grow positively and the strength of this company would make it extremely hard for it to possibly go out of business.

Patagonia is already on the right track to success by expanding globally in seven countries. At this rate they will be influential, powerful, and unstoppable.