Running Head: CASE STUDY PAPER 1
Case Study Paper
CASE STUDY PAPER 2
Case Study Paper
From the beginning L.L. Bean has focused its attention on employee satisfaction. The
idea behind paying employees is to give them the desire, sustainability and incentive to do their
work to the best of their ability, and to go above and beyond what they are paid to do (Noe, 2003,
p. 499). L.L. Bean’s philosophy is that “the employees’ passion for the company and its products
will translate to the customer” (Reed, 2009, p. 10). By creating an atmosphere of job
satisfaction, the quality of the work is increased, and the company has greater overall employee
retention.
Enhancing Total Compensation
At L.L. Bean, employees are rewarded with monetary compensation as well as
nonmonetary rewards such as the use of company products, development opportunities, greater
recognition, and more contented coworker relationships (Noe, 2003, p. 458). The company also
works hard to increase their overall value, which in turn benefits the employees. They have
introduced new projects and services, made their organizations more efficient, and established
new markets and met higher market demands (Andries & Czarnitzki, 2014).
Internal and External Strengths and Weaknesses and Total Rewards
Upon a comprehensive review, the company found its strength in its core business model,
the catalog sales, which provided excellent growth and profit. But they found that in order to
compensate for their retail weakness, they needed to expand their retail stores and internet sales.
This increased their overall market share and allowed them to expand to the global marketplace,
by opening operations in Japan. By increasing the bottom line of the company, they increased
the total rewards for all stakeholders. Every employee benefited through this total rewards
CASE STUDY PAPER 3
perspective. For example, in 2007, L.L. Bean reported record net sales of $1.54 billion and its
Board of Directors approved a 7.5% of annual pay cash reward to all eligible employees (Reed,
2009, p. 11). This total employee payout was estimated to be approximately $25.5 million. This
type of payout shows the level of belief the company holds in keeping their employees happy.
They understand that happy employees create happy customers by boosting productivity,
working more efficiently, and delivering goods and services in a timely manner (Gulyani &
Sharma, 2018).
Traditional and Non-Traditional Rewards
“Total rewards” became the core business practice at L.L. Bean. Critical to
accomplishing their organizational goals, they kept with the tradition of compensating their
employees when the company did well. This was a practice the founder himself strongly
believed in. Not only did they offer bonuses based on individual performance, as well as the
company’s, but also other traditional benefits such as cafeteria-style healthcare giving them more
options. Moreover they also offered many non-traditional benefits, including on-site fitness
programs, store shopping discounts, and the added bonus of using canoes, tents, and other
company-owned outdoor equipment for personal use (Reed, 2009, p. 10). “As far as Bean was
concerned, the company had an obligation to stakeholders, and it began with employee
satisfaction” (Reed, 2009, p. 10).
Aligning Benefits and Corporate Values
Harrison and Bazzy (2017) describe organizational culture as the beliefs and shared
values that result in a behavioral component (Harrison & Bazzy, 2017). Leon Gorman, the
grandson of Leon Leonwood Bean, who assumed presidency of the company in 1960, sent a
clear message defining the company’s values and stakeholders. According to Gorman, the
CASE STUDY PAPER 4
stakeholders included not only the employees and vendors, but also the employees, the
community and the natural environment. Social responsibility became a strong focus, driving
the business to leave an imprint on the environment and contribute to creating a greater quality of
life for all employees and the communities affected by their operations. They divided their
social responsibility to focus on four main areas: the environment, paper procurement, labor
rights, and charitable giving (Reed, 2009, pp. 8-9). Ultimately the corporate values defined at
L.L. Bean benefited not only the company and its employees, but the community at large.
Recommendations
Although L.L. Bean has shown a success in their organizational goals and values and
how they have benefited their employees and community, there are still areas in which they
could improve. Phillips and Phillips (2016) suggest Human Resource leaders can add additional
value by staying on top of innovation and technology, continuing to support the environment,
and confronting globalization. In the case of L.L. Bean, continuing the original founder’s simple
intentions that focused on Maine and the great outdoors, improving job satisfaction and
employee care, and using both traditional and nontraditional rewards, will continue to define the
company as a leader in their industry.
CASE STUDY PAPER 5
References
Andries, P., & Czarnitzki, D. (2014). Small firm innovation performance and employee
involvement. Small Business Economics, 21-38. Retrieved from https://search-proquest-
com.ezproxy.liberty.edu/docview/1520616293?pq-origsite=summon
Gulyani, G., & Sharma, T. (2018). Total rewards components and work happiness in new
ventures. Evidence-based HRM, 255-271. Retrieved from https://www-emerald-
com.ezproxy.liberty.edu/insight/content/doi/10.1108/EBHRM-12-2017-0063/full/html
Harrison, T., & Bazzy, J. D. (2017). Aligning organizational culture and strategic human resource
management. Journal of Management Development, 1260-1269. Retrieved from
https://www-emerald-com.ezproxy.liberty.edu/insight/content/doi/10.1108/JMD-12-2016-
0335/full/html
Noe, R. A. (2003). Human resource management: Gaining a competitive advantage. Boston:
McGraw-Hill/Irwin.
Phillips, J., & Phillips, P. (2016). How HR can have an impact in non-traditional areas. Strategic
HR Review, 5-13. Retrieved from https://www-emerald-
com.ezproxy.liberty.edu/insight/content/doi/10.1108/SHR-11-2015-0092/full/html
Reed, S. S. (2009). Benefits and Business at Aflac and L.L. Bean . In S. S. Reed, Society for
Human Resource Management (pp. 1-13). Alexandria: Society for Human Resource
Management.
Powered by TCPDF (www.tcpdf.org)
