Costco:AStudyofOrganizational

CommunicationBreakdown

PreparedFor
:
ProfessorAminahBarnesCannonProjectDirector

PreparedBy
:

KenzieMaynard
HeidiJames
KiannaMcManus
PatriceArmstrong

November11,2015

LetterofTransmittal

November11,2015

To
:ProfessorAminahBarnesCannonProjectDirector
WashingtonStateUniversityEnglish402

From
:KenzieMaynard,PatriceHartzell,
KiannaMcManus&HeidiJames

Subject
:CostcosCommunicationBreakdown

DearProfessorBarnesCannon,

AttachedistherecommendationfortherepurposedreportofKenzieMaynardsresearchproject,Costco:
CommunicationBreakdownregardingthecommunicationbreakdownbetweencorporateofficesand
warehouses.ThetasksassignedNovember1,2015wereusedtodesignatedifferentresearchareas,which
helpeddevelopaflyerthatwillimprovecommunicationthroughoutthecorporation.

Inthisreportyouwillfindseveralstepsthatanalyzethecommunicationbreakdownthatisbasedon
CostcosownCodeofEthics.Thesestepswillhelpanalyzetheorganizationandhopefullyimprove
employeeretentionratesandsatisfaction,decreasingtheamountofwasteandincreasingprofitlevels.

Ourmainfindingsshowthatthesegoalscanbeaccomplishedbyhavingweeklyinformationalmeetings,
monthlymanagementselfassessments,employeefeedbackoptions,standardcommunicationguidelines
andteambondingexercises.

Weappreciateyouropinionandlookforwardtoyourinputregardingthisreport.Ifyouhaveanyquestionsor
commentspleasecontact:

KenzieMaynardat
kenzie.maynard@wsu.edu
PatriceHartzellat
patrice.hartzell100@email.wsu.edu
KiannaMcManusat
kianna.mcmanus@wsu.edu
HeidiJamesat
hm331@wsu.edu

Thankyouforyourtimeandconsideration.

Team#3

TableofContents

ExecutiveSummary..3

Introduction....3

ResearchMethods...4

Results...............................46

Conclusions..6

Recommendations..6

References............................................................78

Appendix:Flyer................................................................................9

ExecutiveSummary

Therehasbeenalackofefficientcommunicationbetweencorporate,managers,andemployeesofCostco
Wholesale,provingthatnewmethodsofcommunicationmustbeaddressed.AlthoughCostcocurrently
utilizesseveralstepstocommunicate,thesemethodshavenotrelievedCostcoemployeesoftheirdesireto
enhancetheflowofinformationandcommunication.Toaddressthis,newcommunicationtechniqueshave
beenresearchedusingCostcosCodeofEthicsasaguide.Fromthisresearch,newwaysofcommunicating
efficientlyhavebeenincludedinthisreportaswellasrecommendationstoapplythesestepstothedaily
tasksofCostcostaff.AsawaytoreachalargerCostcoaudience,aflyer(SeeAppendix)hasbeencreated
toemphasizekeypiecesofinformationthathavebeengatheredtobesharedwithalldepartmentsin
warehousesandcorporate.

Introduction

WithinCostcowarehousesandcorporateoffices,thereisacommunicationbreakdownthatleadsto
loweringemployeeretentionrates/satisfaction,increasingamountsofwaste,anddecreasingprofitlevels.
Thoughtheorganizationasawholeoperatesmoreefficientlythanmost,itstillhasopportunitytoadvance
itspoliciesandprocedurestoenhanceitsabilitytomanageitsresources.

WithcommitmenttoadvancingcommunicationineachareaofCostcosCodeofEthics(obeythelaw,take
careofourmembers,takecareofouremployees,respectoursuppliersandrewardourshareholders),the
organizationwillbeabletoadvanceitsabilitytorewarditsshareholders(thefinalstandardinCostcosCode
ofEthics).Thisisonlyadvancedthroughthesuccessfulimplementationofincreasedcommunicationineach
ofthefirstfourstandardsforCostcosCodeofEthics:Thecommunicationbreakdownisseenthrougha
lackofclearandconsistentcommunicationbetweendepartments,management,warehouses,and
corporateoffices.AreasofCostcosstandardssuchastheabilitytosafelyfollowthelaw,carefor
consumers,takecareofemployees,andrespectingvendorsareallnegativelyimpactedbyinefficient
communicationefforts.EachofthesestandardsfromCostcosCodeofEthicsismeanttobecompletedwith
respectfulcommunicationfortheirfinalstandardtobemetaccordingly.

ThemainsourcesofresearchcompletedbyKenzieandconsistedofanalyzingincidentreportsthat
originatedfromproductmishandling,incorrectfillings,orothertangibleevidenceofsafetyorlawful
regulationspotentialbeingviolated.Thesefindingswerethencomparedtosurveysmeasuringemployee
attitudesandbehaviors.Heidiresearchedbestpracticesforworkplacecommunicationflyersand
distribution/locations.KiannagatheredinformationalandattentiongrabbingimagesandPatriceoutlinedthe
flyer.

ThereportincludesarecommendationoffiveaspectsofstrategicsystemthatCostcoshouldconsider
adaptingtomeettheirstandardsintheCodeofEthics.

Themostsignificantfindingsweretheneedtoimplementcommunicationstandards.Withthefiveaspectsof
astrategicsystemimplemented,weeklyinformationalmeetings,monthlymanagementselfassessments,
employeefeedbackoptions,standardcommunicationguidelinesandteambondingexercises,better
communicationgoalswillbemetandimproveemployeeretentionratesandsatisfaction,decreasethe
amountofwasteandincreaseprofitlevels.

ResearchMethod

TheprimaryaudienceistheCostcoCorporation,withanemphasisonthecorporatelevelmanagement.In
orderforthisproblemtobeaddressedadequately,themanagementteammustbeinvolvedanddedicated.
TheresearchforthisprojectwasacontinuationofKenzieMaynardspreliminaryresearchstatement,
researchproposal,recommendationmemo,pitchpresentation,googledocuments
(
https://www.google.com/accounts/Logout?service=wise&continue=https://docs.google.com
)andchapter18
ofTechnicalCommunicationWashingtonStateUniversityEdition.Theprocesstakentocompletethe
projectstartedwiththereportandflyerbeingsplitintotasksforeachmember.Usinggoogledocumentswe
wereabletocollaborateinrealtimeandputthedifferentcompletedtaskstogether.
Literaturewasreviewedinmanydifferentareas,whichincludeworkplacecollaborationstatistics,workplace
communicationtrends,visualcommunication,safetysystemcommunication,customersatisfactionresearch,
employeesatisfaction,vendorrelationshipmanagementstudiesandimpactoforganizationalcommunication
onconsumersatisfaction.Theresearchofbestworkplacecommunicationpracticesandflyerplacementwas
completedbyasurveyof25individualsaskingtheirpreferedmethodofnotification.

Results

Theresearchconducted,resultedinconclusionsapplicabletothefourcoreconceptsoftheCostcoCodeof
Ethics.Themainfocuswasontheemphasisoninternalcommunicationtechniques.Thefirstliterature
reviewedconcludedthat97%ofemployeesandexecutivesbelievelackofalignmentwithinateamimpacts
theoutcomeofataskorproject(Woolf,2014),andthat90%ofemployeeswhorespondedinasurvey
believethatdecisionmakersshouldseekotheropinionsbeforemakingafinaldecision(Woolf,2014)
however,40%oftheseemployeesbelievethatdecisionmakersconsistentlyfailedtoseekanotheropinion
(Woolf,2014).Furthermore,lessthanhalfofthesurveyrespondentsbelievedthattheirorganizations
managementtruthfullyandeffectively(Woolf,2014)communicatedworkplaceissues.Theseresultsclearly
demonstratethecommonalityofworkplacecommunicationbreakdown.

Literatureanalysisandfurtherresearchwasconductedtobetteraddresstheseorganizational
communicationissues.Focusingonthecurrentsuccessfulcommunicationtrendsforofficecommunication,
literatureanalysisresultedinfourprimarytrends.Thetrendsthatdemandedthemostattentionwere:1.The
useofmultipledevices,2.TheDemandforinstantcommunication,3.Thefalloffacetofacemeetings,and
4.Thewideradoptionofinternalcommunicationtools(Alcala,2015).Fromthistrendanalysis,itwas
concludedthat97%ofthosesurveyedsaidtheybelievedcommunicationsimpacttasksdaily(Alcala,
2015)andthat93%ofworkersprioritizenewsolutionsoverinpersonmeetings(Alcala,2015).With48%
ofworkersmotivatedtocommunicatethroughemailwithintheworkplace,theflyershouldbedistributed
throughemailaswellasplacedamongpublicofficespaces(Alcala,2015).Thisresearchalsoconfirmedthe
importanceofconsistency.With44%ofthosesurveyedwantingthewideradoptionofinternal
communicationtools(Alcala,2015)itisclearthatthereisastrongdesireforclear,concise,andconsistent
communicationacrossanorganizationasawhole.

EmployeeandVendorsatisfactionsurveyandfocusgroupresultswouldgenerateconclusivequalitative
data.Employeesatisfactionisdirectlyrelatabletothewaythatanorganizationcommunicateswithits

employees.Tofurtheranalyzethis,thereweresevenquestionscollectedanddesignedtocollectqualitative
dataforadeeperunderstandingofemployeerelationsandcommunication(Mochari,2015).
1.

Nameoneprocessthat,wereiteliminated,wouldmakeyoumoreproductive.
2.

Howtransparentismanagement?Explain.
3.

Pleaseratethequalityofbenefitsprovided.
4.

Pleaselistsomefactorsthatcouldhelpyoucontributebettertoyourworklife.
5.

Canyouhighlightanyrecentrecognitionandacknowledgementthatyouhavereceivedthatincreased
yourcommitmentandloyalty?
6.

Howwouldyouassessyourinternalopportunitieswithintheorganizationtogrowandadvance?
7.

Howconfidentareyouintheleadershipofthisorganization?Why?
Theresultsfromthismethodologywouldindicateagreaterneedforinternalcommunicationpractices(as
seenbytheresultsofprevioussurveys).Vendorsatisfactionisanotheraspectthatishighlyaffectedby
internalcommunication.VendorPerformanceManagementistheformalprocessofmanagingsupplier
relationships,measuringperformance,anddrivingcontinuousimprovementwithacompanysstrategic
suppliers(SurveyAnalytics,2015).Thisprocessisdirectlyimpactedbythelevelofinternalcommunication
involvedwithintheoverallprocesses.Equallysamplingbothoutsidevendorsandinternalstaffwouldallow
theorganizationtoassessthecommunicationfrombothperspectives,whichisbeneficialtobothparties.
Thiswasdonetobetterassesscommunicationeffectivenessandbettermanagetherelationships.
Understandingbothperspectivesleadstocontinuedsuccessinbusinessrelationships,andallowsformore
effectivecommunication.Theresultswouldonceagainindicateaneedforstrongerinternalcommunication
toolsforincreasedconsistencyandsatisfactionresults.

Consumersatisfactionisanessentialaspecttomeasureintermsoforganizationalcommunicationwithinthe
workplace.Randomizedsurveyresultshaveproventhatcontinuouscommunicationwithcustomerscan
improvethecustomerhighlightedweaknesses:accuracyandeaseofunderstandingoftheissues,response
timeandovercomingonlongperiods,theblurofthecontracts(Eftimie&Moldovan,2015).Thisexplains
theanticipatedresultsfromtheresearchstudythatthereisadirectcorrelationbetweenacorporations
abilitytocommunicateandtheconsumerssatisfactionlevelintermsdefinedbytheconsumersvalues.
Itemsvaluedbytheconsumerssuchastheproductsoffered,thestaffandservice,thecompanyoverall,and
thepricesofferedarealltakenintoconsiderationbytheconsumerandmeasuredagainstthestated
importanceofeachitemforstatisticalmeasurementoftheoverallsatisfactionanalysis(Hague&Hague,
2015).Theseopinionsrepresenttheabilityofmanagementandemployeestoadequatelycommunicatewith
theconsumersabouttheirneeds,andtocommunicateasolutiontomeetingtheirneedsandsolvingtheir
problems.Researchhasshownthattheabilityofacorporationtomeettheneedsmostvaluedbythe
consumerthroughincreasedcommunicationsignificantlyincreasecustomersatisfactionandthebrands
reputation.

Thevisualcommunicationfromitemssuchasflyersaroundtheworkplacehaveimportantaspectsto
consideraswell.Internalvisualcommunicationrequirethattheinformationbeingconveyedisdonesoin
thesimplestformatpossible.Simplecommunicationthatisaccessibletoeveryonepromotesgreater
efficiency,whichiswhatfactoriesneedtoday(Greif,2015).Moreover,internalvisualcommunicationis
targetedtowardtheworkforceasawhole.Thistypeofcommunicationshouldthusbeplacedwhereitis
easilyaccessibleandeasilyunderstandabletoallpartiestargeted.Thisisimportantasthedistinctive
aspectofvisualcommunicationisthatitisintendedforagroup,andnotjustforanindividual.The
consequencesofthispointaresoimportantthatitdeservestobeemphasized(Greif,2015).Thisresearch
exemplifiestheimportanceofvisualcommunicationbeingcreatedinamannerwhichwouldresultinan
inclusiveinformationatmosphereforallthoseactivelyinvolvedwithintheworkplace.

Conclusion

BasedonourresearchrelatedtoorganizationalcommunicationbreakdownwithinthecompanyCostco
Wholesale,thereisasignificantneedformoreefficientcommunicationbetweenindividualsandthe
companyasawhole.Withlessthanhalfofsurveyrespondentsbelievingthattheirorganizations
managementtruthfullyandeffectivelycommunicateworkplaceissues,itislikelythatamajorityofCostco
employeesbelievethattheydonothavetheinformationthattheyneedtosucceedintheirposition,which
lowersemployeeretentionratesandsatisfactionwhiledecreasingprofitlevels.Vendorandcustomer
satisfactionisoftheutmostimportancewhenrunningabusiness,andwithemployeesnotalwaysbeing
awareofpoliciesandproceduresduetoalackofcommunication,thislevelofsatisfactioncandrastically
decrease.Withadirectcorrelationbetweenacorporationsabilitytocommunicateandaconsumers
satisfactionlevel,whentheneedsofaconsumeraremet,customersatisfactionandreputationofbrands
increase.Withasimpleformatofaflyer,thisformofvisualcommunicationpresentingourresearchand
methodsofimprovingworkplacecommunicationaswellasimagestograbtheattentionofouraudienceis
availabletoeveryone,whichisimportantforthesuccessofthisprojectbecauseitisintendedtobevalued
byagroupandnotaspecificindividual.

Recommendations

Astheresearchresultshaveindicated,thecommunicationbreakdownevidentwithinCostcoiscommon
amongstorganizations.Thisbreakdo
wncanbeaddressedinseveralfashionshowever,visual
communicationwasdeterminedtobethebestcourseofaction.Thiscourseofactionisprimarilytheeasiest
toutilizeandstandardizeacrossalargescalecommunicationsystem.Thevisualcommunication
recommendedistheuseofflyersinthewarehousesforinternalcommunicationuse.Theseflyerswillbe
standardized,belocatedinareaswitheaseofaccessbyallemployees(breakrooms),andoffersimpleand
straighttothepointcommunicationpracticessothatthisinformationiseasilyassimilated.

Withtheimplementationofthispractice,thereshouldbefollowupmeasurestogaugetheeffectivenessof
theflyerswithinthewarehouses.Followupsurveysandfocusgroupsofbothemployeesandmanagement
togatherqualitativedatawillallowtheprogramtomeasurethesystemseffectiveness.Furthermore,the
systemsthatareimplementedandobservedthroughtheflyercommunicationwillhaveagreaterimpacton
consumerandvendorsatisfaction,whichinturnwillleadtoincreasedprofits.Ameasurementinrelationto
profitandinternalcommunicationshouldyieldapositivecorrelation.

Thelackofcommitmentorfollowthroughthatmanywithinthemanagementteammayhaveforthissystem
mayresultinunsuccessfulimplementationandhaltpositiveresults.Toavoidthis,werecommendtaking
preventativemeasures,andofferingincentivesforincreasedcommunication.Incentiveswouldbebasedoff
thefollowupresearchresultsfromboththequalitativeandquantitativemeasurements.

References

7WorkplaceCollaborationStatisticsThatWillHaveYouKnockingDownCubicles
Sylvie
Woolf
,
August19,2014TalentAlignmentBlogbyClearCompany2014ClearCompany.Patent
Pending
http://blog.clearcompany.com/7workplacecollaborationstatisticsthatwillhaveyouknockingdown
cubicles

4TrendsinWorkplaceCommunication[Infographic]
Lori
Alcala
,January20,2015Social
Business:CMSWiRE2015SimplierMediaGroup,Inc.
http://www.cmswire.com/cms/socialbusiness/4trendsinworkplacecommunicationinfographic027
762.php

TheVisualFactory:BuildingParticipationThroughSharedInformation
Michel
Greif
2015
ProductivityPress(Portalnd,Oregon)OriginallyPublishedasLUsineSAffiche1989LesEditions
dOrganisation
https://books.google.com/books?hl=en&lr=&id=SpFk6FJdtXQC&oi=fnd&pg=PR13&dq=visual+work
place+communication+methods&ots=YMhUbheb6_&sig=ljQym5A8GUprNMicpD20VgcPbw#v=one
page&q=visual%20workplace%20communication%20methods&f=false
1. Achievingavisualfactoryrequiresfirstthatweachieveavisiblefactory:onethatrespects
andencouragesthewisdomandexperienceofallemployees,oneinwhichcontinual
discoursebetweendepartmentsisoccurring,andoneinwhichmanagementwalkabouts
arecommonplace(Hamilton,2015)Foreword(p.xvi)
2. Simplecommunicationthatisaccessibletoeveryonepromotesgreaterefficiency,whichis
whatfactoriesneedtoday(Greif,2015).TheVisualFactory:BuildingParticipation
ThroughSharedInformation:VisualCommunication(p.2)
3. Thedistinctiveaspectofvisualcommunicationisthatitisintendedforagroup,andnotjust
foranindividual.Theconsequencesofthispointaresoimportantthatitdeservestobe
emphasized(Greif,2015).TheVisualFactory:BuildingParticipationThroughShared
Information:VisualCommunication:CommunicationWithASharedPerspective(p.8)

TheSafetyScorecard:UsingMultipleMeasurestoJudgeSafety\r\nSystemEffectiveness
EHS
Today:Safety2015
Penton

http://ehstoday.com/safety/bestpractices/ehs_imp_34484

CustomerSatisfactionSurveys&Research:HowtoMeasureCSAT
:PaulHagueandNick
Hague

B2BInternational:BeyondKnowledge:ThoughtLeadership2015B2BInternational
https://www.b2binternational.com/publications/customersatisfactionsurvey/

SCORES

ANALYSIS

MeanScores810

MarketLeader.ExcellentSupplier

MeanScores78

Adequate.Butrequiresattention.

MeanScores60

Seriouscauseforconcern.Companywillalmost
certainlybelosingmarketshare.

7MeaningfulQuestionstoGaugeEmployeeHappiness
:TheSecretisnottoaskonceayearif
employeesarehappy,buttoassesstheirlikesanddislikesinafrequent,trustworthymannerwith
focusedquestionsIlan
Mochari
(SeniorWriter,Inc.)2015Inc.Published:April25,2014
http://www.inc.com/ilanmochari/improveemployeeretention.html

VendorPerformanceManagement
:QuestionPro:SurveyAnalytics2015
SurveyAnalytics

http://www.surveyanalytics.com/vendorperformancemanagement.html

TheCommunicationImpactontheCustomerSatisfactionLevelCaseStudy:
RecentResearchesin
BusinessAdministration,ProductDesignandMarketingMariana
Eftimie
,RamonaGeorgiana
Moldovan
(Bratosin)Eftimie:Economics,Marketing,andBusinessAdministrationDepartment:
PetroleumGasUniversityofPloiestiMoldovan:InternationalBusinessandEconomicsFaculty:The
BucharestAcademyofEconomicStudies
http://www.wseas.us/elibrary/conferences/2013/Chania/BAMPD/BAMPD04.pdf

Appendix:

RepurposedProjectFlyer
: