Reference no: EM132298257

Putting the Focus on People at the Fruit Guys People are as important as profits to Chris Mittelstaedt, founder and CEO of the Fruit Guys. Remembering the downside of some earlier on-the-job experiences, such as not being asked to help solve problems, Mittelstaedt resolved to make employee empowerment and collaborative teamwork top priorities when he started his own business. Today, his Fruit Guys business rings up $30.5 million in annual sales and employs dozens of people in the San Francisco area and beyond. Mittelstaedt’s path to entrepreneurial success grew out of a need to make a change in his professional life when his wife was expecting their first child. He was unhappy at a temporary job and thinking about possible ideas for a new business of his own. In speaking with friends and family, Mittelstaedt realized that many office workers who snack on junk food might prefer something healthier if it was conveniently at hand. This led to the concept of selling weekly deliveries of fresh, ripe fruit to companies so their employees would have healthy snacks at work. Mittelstaedt named his new company the Fruit Guys and began making the rounds of corporate headquarters to sign up customers. He also connected with local growers who could provide a steady supply of apples, oranges, and other fruits in season. As the business grew, Mittelstaedt had to hire employees to sort, package, and deliver fruits to his expanding customer base, as well as hiring employees to handle billing, human resources, and other functions. This is where his background working for other firms came into play: As the head of a small business, he wanted to motivate his employees the way he wished his managers had motivated him, by treating them fairly, showing respect for their capabilities as individuals and team members, and inviting their input as valued members of the organization. “People like to be part of something bigger than themselves,” he says. The same is true for suppliers, which is why he pays growers fair prices and offers support to help them profit from what they produce. Although the company has had its ups and downs over the years, Mittelstaedt has remained true to his principles of building positive relationships with customers, employees, and suppliers. Rather than setting one employee against each other in a race for advancement, the entrepreneur looks for win–win ways to develop the talents of everyone on the team. He emphasizes each employee’s vital role in the company’s overall success, expecting them to reach out to colleagues for coordination purposes as well as to take responsibility for completing their assigned tasks. Recognizing that employees have their own goals and dreams, Mittelstaedt encourages everyone to make the most of opportunities for participation, learning, communication, and expanded responsibilities at the Fruit Guys. These days, Mittelstaedt’s company has a healthy roster of regular customers that includes high-tech firms, law firms, accounting firms, manufacturers, and even public schools. But no matter how big the Fruit Guys gets, the founder is determined to maintain the healthy corporate culture that shows respect for the individual, fosters involvement, and fuels committed teamwork.

1. When Chris Mittelstaedt says, “People like to be part of something bigger than themselves,” what are the implications for employee motivation?

2. Why would an accounting firm spend money week after week for deliveries of fresh fruit for its employees? Explain your answer in terms of the motivation concepts in this chapter.

3. What other techniques would you suggest Mittelstaedt use to motivate his employees, and why?