Costco is a wholesale corporation in the United States that provides a wide selection of merchandise. James Sinegal and Jeffery Brotman founded the Corporation in September 1983 and currently the headquarters offices are operated in Issaquah, Washington in the United States. The first Costco warehouse was set up in Seattle and in 1993 it merged with Price Club to become PriceCostco and in 1997, the warehouse resumed to Costco as its identity (Coriolis Research Ltd 12). The Corporation operates as a membership club with intent to provide its members with affordable possible prices on quality and brand name merchandise. Currently, the CEO is Craig Jelinek, who oversees the operation of the corporation that is spread worldwide.
Jim Sinegal was one of the founders of Costco, who then later become a great long time CEO at the Corporation. Entrepreneurial, leadership and management responsibilities were first pumped into Sinegal when he was a college student at San Diego Community College (Coriolis Research Ltd 17). At the age of 18 years, while still at the college he took up a job Feb-Mart in 1954 specifically to unload mattresses. At Feb- Mat Company, he rose to become an executive vice president and helped start Price Club. At Price Club, he learnt the bulk selling warehouse techniques that he used with the help of his co-founder to open the first store in Seattle.
Motivation theories applied in Costco
One of the motivation theory applied in Costco is employee engagement approach. The leadership at Costco believes that engaged employees are committed employees and with committed employees, their performance is high. They engage their employees to the maximum regarding issues that entail Costco and this has resulted in dedicated employees to serve the warehouse efficiently. The second motivational theory used in Costco is the employee empowerment theory. Creating opportunities for personal growth and development is the desire that drives the Costco leadership when dealing with their staff and members. This has resulted in increased self-esteem among the employees, members of the warehouse and customers that frequent the premise.
Current issues of motivation in Costco’s daily operations
The current issues of motivation in Costco's daily activity include employee focus, giving back to society and community and commitment to quality. These motivational issues have become Costco’s daily undertaking, focusing more on employees to ensure they become productive and carry out their duties efficiently (Coriolis Research Ltd 21). The warehouse also takes a keen step when it comes to the provision of quality merchandise to its customers to ensure they retain them. Costco believes that society and the community are the key determinants of their success. They, therefore, strive to give back to the society and the community by offering quality merchandise at very low prices.
Impression about Costco’s leadership ability to motivate their current CEO Craig Jelinek
The discipline leadership ability at Costco impressed me most and should be a motivator to the firm's current CEO Craig Jelinek. Sinegal, when he was the CEO of the warehouse, ensured that no merchandise was more than 14% of the cost and this over the years ensured retention of the customers (Coriolis Research Ltd 23). The disciplined leadership ability combined with integrity has seen the warehouse gain trust from both customers and employees, and this is a motivator to the current CEO as he takes the mantle at the warehouse. Sinegal even after retiring had to spend a full year at the company to help in CEO transition at the headquarters.
Works Cited
Coriolis Research Ltd. Understanding Costco. N.p., 2004. Print
