• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Company history
 Company growth
 Management structure
 Conclusion
 Acknowledgement
 Advertising






Group Title: Teaching and Learning Paper Series - University of Florida. Food and Resource Economics Dept. ; TLP 01-1
Title: Publix Super Markets, Inc.
CITATION PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00053094/00001
 Material Information
Title: Publix Super Markets, Inc. an evaluation of the store management structure
Series Title: Teaching and learning paper series
Alternate Title: Evaluation of the store management structure
Physical Description: i, 18, 4 p. : charts ; 28 cm.
Language: English
Creator: Lynch, Kara
Wysocki, Allen F ( Allen Francis )
Fairchild, Gary F
University of Florida -- Food and Resource Economics Dept
Publisher: University of Florida, Institute of Food and Agricultural Sciences, Food and Resource Economics Dept.
Place of Publication: Gainesville Fla
Publication Date: 2001
 Subjects
Subject: Supermarkets -- Management   ( lcsh )
Self-service stores -- Statistics   ( lcsh )
Grocery trade -- Management   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
bibliography   ( marcgt )
statistics   ( marcgt )
non-fiction   ( marcgt )
 Notes
Bibliography: Includes bibliographical references (p. 18).
Statement of Responsibility: by Kara Lynch, Allen Wysocki and Gary Fairchild.
General Note: Cover title.
General Note: "May 2001"--Cover.
 Record Information
Bibliographic ID: UF00053094
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: George A. Smathers Libraries, University of Florida
Rights Management: All rights reserved, Board of Trustees of the University of Florida
Resource Identifier: aleph - 003415880
oclc - 47708718

Table of Contents
    Front Cover
        Front Cover
    Title Page
        Page i
    Company history
        Page 1
        Page 2
        Page 3
    Company growth
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
    Management structure
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
    Conclusion
        Page 16
        Page 17
    Acknowledgement
        Page 18
    Advertising
        Page 19
        Page 20
        Page 21
        Page 22
Full Text


TLP 01-1




TEACHING AND LEARNING PAPER SERIES


The goal of the Teaching and Learning paper Series is to improve, enhance, and enrich
the teaching and learning environment in te department, college, university, and
profession through the publication of papers on teaching philosophies and techniques,
curricular issues, and cas studies. Papers are circulated without formal review by the
Food and Resource Economics Department and thus the content is the sole
responsibility of the faculty author or co-athor.













UNIVERSITY OF

lFLORIDA
Iitute o Food and Agriculra Siences
Food ud Resorce Ecoeri Departeat
Gaimesvile, Florida 32611


PUBLIC SUPER MARKETS, INC.: AN EVALUATION OF
THE STORE MANAGEMENT STRUCTURE

by

Kar Lynch, Allen Wysocki and Gary Fairchild

Teaching and Learning Paper TLP 01-1 May 2001


-------









Publix Super Markets, Inc.:
An Evaluation of the Store Management Structure



by


Kara Lynch, Allen Wysocki, and Gary Fairchild*


Abstract: This paper describes and evaluates the Publix Premier Leadership structure
from the perspective of a Publix Supermarkets' associate. Company history, growth, and
management structure of Publix, the sixth largest grocery retailer in the U.S., is
presented.




Key Words: Publix, associates, grocery management, grocery retailing, consumers, and
grocery shopping.








* Kara Lynch is a Master of Agribusiness graduate student and Allen Wysocki and Gary
Fairchild are Assistant Professor and Professor respectively, in the Food and Resource
Economics Department, College of Agricultural and Life Sciences, Institute of Food and
Agricultural Sciences, University of Florida. Gainesville, Florida.




Opinions and perspectives expressed in this case may or may not represent the views of
others, particularly, Publix Supermarkets, Inc.









Publix Super Markets, Inc.:

An Evaluation of the Store Management Structure

Publix Super Markets, Inc. is a dominant regional supermarket that has doubled
its size in the last ten years. It is the plan of the company to continue this growth and
double its size again in the next five years. An important aspect of this expansion is the
development of qualified leaders. Publix has a policy of promoting only from within the
company. This makes the development of associates important because it builds the core
leaders for the company's future. This paper gives a brief history of and the basic
operations of the company. It evaluates the changes made in the management system and
how these changes have better prepared the company for the rapid growth in the future.


Company History
Background
George W. Jenkins founded Publix in 1930 in Winterhaven, Florida. During the
Depression, George Jenkins quit his secure job from Piggly-Wiggly to begin his own
grocery store. He took his experiences from the grocery business and improved upon
them. The first store set a standard for cleanliness and order. George Jenkins founded
the company with the idea that customers come first; the policy of the company was to
please the customer.
In 1940, Publix opened its first supermarket. This supermarket included air
conditioning, fluorescent lighting, electric eye doors, frozen food cases, and piped-in
music. This store also included donut and floral departments. The success of this store
prompted Jenkins to buy a chain of 19 stores from All-American, a central Florida
grocery chain. By the end of the forties, these stores were undergoing remodeling to
uphold the image upon which Publix was founded. During the fifties, Publix was closing
old stores and replacing them with new stores to better meet the Publix cleanliness
standards.
The first in-store delicatessens were introduced during the sixties. In 1973, the
company opened its bakery plant and produce distribution center in Lakeland, FL. In the
eighties, Publix made many technological advances. Checkout scanning became a









company-wide process. The Presto! ATM network was also introduced. In 2001, the
company plans to launch three online grocery delivery services. These services are to be
located in West Palm Beach, Lake Mary, and Alpharetta, GA. These changes were made
to make the shopping experience more pleasurable for the shopper.


Philosophy
The Publix Guarantee states, "We will never knowingly disappoint you. If for
any reason your purchase does not give you complete satisfaction, the full purchase price
will be cheerfully refunded immediately upon request." In Publix's 71-year history, their
success has been credited to the quality of customer service provided. This policy helped
Publix to be recognized for its dedication to superior-quality customer service by an
American Customer Service Index published by Fortune magazine.
Publix was founded on the basis of superior customer service. George Jenkins
believed that by providing excellent customer service, his business would thrive. The
company has a strong reputation for this service. The company strives to maintain this
reputation because when a customer leaves satisfied with the service, the company gains
a repeat sale.


Store Structure
Current store prototypes range from 27,000 to 60,000 square feet. The stores are
often located in strip shopping centers.' This is to provide a one-stop grocery shopping
convenience for the customer. Store location and its accessibility are important. The
availability of real estate is a deciding factor in determining store locations. Other factors
include locations of competitor's stores, locations of other Publix stores, demographics,
and area populations. Demographics determine the size of the store and the departments
located in each store. Each store has its own layout and organization. Each store is
designed for the neighborhood to which it caters. This means that each store is
geographically targeted for its consumers.
The store is divided into as many as eight departments. These departments are
bakery, common area, delicatessen, grocery, meat, pharmacy, photo, and produce. The
common area is defined by the checkout lines and cash accountability. Seafood is a sub-









department of the meat department and floral is a sub-department of the produce
department. The grocery department is divided into both dry and perishable sections.
Each department is assigned a manager and, when necessary, an assistant
manager. These managers oversee their departments, products, and the associates
associated with those departments. Associates are assigned a single job classification.
This classification is dependant on where the employees' primary duties are performed.
Many associates perform work in more than one job class.
With continuous improvement, Publix grows and evolves. As the company
grows, these jobs also grow and evolve. Changes in store design, the addition of new
departments, and changes in technology and market demands all contribute to the
changes in job specification. Publix's main focus is on total store operations. This
includes customer satisfaction, performance results, and associate development.


Continuous Quality Improvement
Continuous quality improvement is an important aspect of the success of Publix
Super Markets, Inc. Improvement allows for the provision of better value and the
intolerance of waste. Types of waste include time, capital (supplies, money, product),
and opportunities. The main objectives of basic improvement are to identify what needs
to be improved, understanding the current process, designing the improvement, and
analyzing the effort of the improvement. Two forms of improvement processes exist at
Publix. These are QIP (Quality Improvement Process) and WIN (Work Improvement
Now.)
Quality Improvement Process is Publix's chosen method for teams to use to make
improvements and eliminate waste. The QIP is designed to meet the objectives of basic
improvement, to encourage teamwork, and to facilitate planning. The QIP is best applied
to processes that cross functional or departmental boundaries, or to those in which a
variety of options need to be considered when developing an improvement. An example
of a QIP is the prescription pick-up process. Before the QIP, prescriptions could only be
picked up and purchased at the pharmacy. This was an inconvenience to shoppers
because groceries and prescriptions had to be purchased separately. A QIP was
developed to change this procedure. Now prescriptions can be paid for with groceries. It









is the bagger's responsibility to pick-up the prescriptions from the pharmacy after it is
purchased through the checkout line. Because this procedure involved more than one
department, it is considered a QIP. There are six main steps in QIP. These are
preparation, work-study, improvement design, effect analysis, debriefing, and
information sharing.
Work Improvement Now is the process for individuals to make improvements. It
is used to make incremental improvements in individual work. The WIN is used to
identify what needs to be improved, to study the current situation, and then to make and
verify the improvement. An example of a WIN project involved time-off requests.
Before the improvement, office associates handled requests. Associates gave office
employees time-off requests. It was the office associates responsibility to relay the note
to the manager. Many notes were lost or misplaced due to the lack of organization with
this system. A WIN project was developed to place a box for the notes in the associates
break room. This provided a structured system for the requests. This improved the work
environment because requests are no longer misplaced.


Company Growth
Grocery Industry
According to the Food Marketing Institute, a supermarket is defined as a full-line,
self-service grocery store with annual sales of $2 million or more. The market trend is for
consolidation. There are fewer, bigger companies in the supermarket industry. Sixty-
three percent of all supermarkets are part of a chain. There are over 30,700 supermarkets
in the United States with sales exceeding $346.1 billion. Supermarkets account for 77
percent of grocery sales. The top five drivers for shopper satisfaction in the supermarket
industry are customer service, price/cost savings, store facilities, product quality, and
product variety/choice. According to consumers, the top seven important supermarket
features include high quality fruits and vegetables; clean, neat store; accurate shelf tags;
courteous, friendly employees; convenient location; low prices; and private label/store
brands.
Publix Supermarkets, Inc. is engaged in a highly competitive industry. Industry
wide, supermarket net profit is approximately one cent per dollar grossed. The industry









relies on high volume turnover. Low markup to stimulate high volume is the
fundamental principle of profit in the supermarket. Competition is primarily based on
price, quality, convenience and product mix. Publix's top competitors in the industry are
Winn-Dixie, Albertson's, and Kroger. Independent stores and mass merchandisers are
also competitors. Exhibit 1 gives a brief summary of the top 12 US food retailers.


Exhibit 1 Top 12 US Food Retailers, by 1998 Grocery Sales

Retailer Sales Number of Stores
The Kroger Co. $45,481,000,000 3,062
Albertson's, Inc. $36,772,000,000 1,647
Safeway Inc. $28,859,900,000 1,493
Ahold USA, Inc. $21,300,000,000 1,033
Costco Companies, Inc. $17,571,859,840 302
Winn-Dixie Stores, Inc. $13,617,485,000 1,180
Wal-Mart Supercenters $12,800,000,000 564
Publix Super Markets, Inc. $12,100,000,000 586
Delhaize America $10,878,684,265 1,276
Great Atlantic and Pacific Tea Co. $10,179,358,000 796
Sam's Club $9,152,400,000 456
H.E. Butt Grocery Co. $7,500,000,000 267

Source: Business Guides, Inc.


Exhibit 2 shows the changes in supermarkets stock prices. These changes are
greatly influenced by the companies' strategies to meet consumer demands and the
industry trends. Publix stock has been on a continuous increase with a slight decrease
occurring in the third quarter of 1999. This decrease in price was regained by the second
quarter in 2000. Safeway's stock has similar performance to Publix's, but Safeway
experienced a longer decrease in prices. This decrease in prices also occurred in 1999,
but Safeway has yet to have regained its price to its prior peak price. This shows that
these supermarket chains have become the dominant food retailer in their areas. The









resilience of Publix illustrates the company's financial stability and growth potential for
the future.


Exhibit 2 Industry Stock Prices, in dollars

Publix Albertson's Delhaize Kroger Safeway Winn-Dixie
09/30/1997 23.25 34.88 24.99 15.09 27.19 35.44
12/31/1997 30.75 47.25 25.29 18.83 31.63 43.69
03/31/1998 34.75 52.75 32.10 23.09 37.00 46.38
06/30/1998 38.25 51.81 31.89 21.44 40.69 51.00
09/30/1998 41.00 54.13 31.89 25.00 46.13 37.19
12/31/1998 46.50 63.69 31.89 30.25 60.94 44.88
03/31/1999 46.50 54.44 27.61 29.94 51.31 37.38
06/30/1999 46.50 51.56 35.63 27.94 49.50 36.94
09/30/1999 44.50 39.56 21.63 22.06 38.06 29.69
12/31/1999 45.00 32.25 20.31 18.88 35.75 23.94
03/31/2000 45.50 30.88 18.00 17.56 45.25 19.44
06/30/2000 46.50 33.22 17.69 22.06 45.09 14.31
09/29/2000 46.50 21.00 17.44 22.56 46.69 14.38
Net Change 23.25 (13.88) (7.55) 7.47 19.50 (21.07)
('97-'00)

Source: Publix Super Markets, Inc.


Store Operations
Publix is the largest employee-owned supermarket chain in the United States.
Current and former employees own 85 percent of the company, with the remaining 15
percent owned by the founders of the company.
Publix currently operates 648 supermarkets in four states. These states are
Georgia, Alabama, South Carolina, and Florida. Publix initially expanded throughout
central Florida, but in 1991 the company moved into Savannah, Georgia. This move later
expanded into South Carolina during 1993 and Alabama during 1996. The majority of









the stores are still located in Florida. Exhibit 3 provides a breakdown of store locations
by states.


Exhibit 3 Store Distribution, as of March 2001

Total 648
Florida 508
Georgia 113
Alabama 4
South Carolina 23

Source: www.Publix.com


Financial Overview
Publix is the sixth-largest volume supermarket in the United States. The 2000
retail sales reached $14.6 billion (exhibit 4). This is an 11.5 percent increase from 1999's
sales of $13.1 billion. Net earnings for the year 2000 increased 14.7 percent to $530.4
million. Publix stock is not publicly traded and is evaluated quarterly by an independent


Exhibit 4 Three year financial history, amounts in million

2000 1999 1998
Revenue 14,600 13,100 12,100
Gross Profit 3,294.2 2,935.7
Gross Profit Margin 25.2% 24.3%
Net Profit Margin 3.5% 3.1%


Short Term Debt 0.0 0.0 0.0
Long Term Debt 0.0 0.0 0.0
Stock Price 48.25 45.00 46.50


Source: Hoover's Online and Publix Quarterly Report










appraiser based on both company and industry standards. Earnings per share increased to
$2.52 in 2000 with stock values at $48.25 per share. The company consistently has a
higher profit margin than its competitors.
Publix is a financially stable company. The company finances all operations with

retained earnings, thus eliminating the need for short-term borrowing. Growth within
Publix is dependent upon its stocks and returns. The company's corporate offices,
distribution facilities, and manufacturing plants are owned with no outstanding debt.
Exhibit 4 diagrams a three-year financial overview for Publix Supermarkets, Inc.


Expansion Opportunities
Over the last 15 years, the company has more than doubled its size. In 1985,

Publix had 287 stores. Today there are 648 stores (exhibit 5). Store growth was steadily
climbing from 1985 until 1994 when 45 new stores were opened in that year alone.


Exhibit 5 Growth rate of Publix Super Markets, Inc.




600


4oo



zI
2 400




200


100



1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year

Source: Media Relations, Publix Super Markets









Rapid expansion occurred for the next six years. Store growth peaked in 1999 with 55
new stores opening. Planned growth for Publix over the next five years totals half of
what the company accomplished in the past 70 years. This translates into over 320 new
stores planned to open in the next five years. Exhibit 5 is a time line illustrating the
growth rate for the total number of stores in operation.


Policy of Promotion from Within
Publix has a policy of promotion from within. This means that associates have
the first opportunity to move into vacant positions. Associates who began their careers
with Publix at entry-level positions fill all management positions. This policy allows all
employees in the company a fair opportunity for promotion. The company believes in
"passing it on". Co-workers pass on their knowledge, experience, and passion at every
level within the company. This policy limits the potential candidates from which to pool
and select. This policy also compromises the educational level of management positions.
The company has difficulty retaining employees with higher educations and Publix does
not outsource for retail management positions. This increases opportunities for current
employees, but it limits candidates.


Discrimination Lawsuit
In July 1995, twelve women and the Equal Employment Opportunity Council,
EEOC, brought a class action sex discrimination suit against Publix Supermarkets, Inc.
This suit, affecting more than 100,000 women, is the largest sex discrimination suit in US
history.
Statistics were not favorable to Publix. At the time of this case, women held 40
percent of management positions in supermarkets, but within Publix, women held only 21
percent of these positions. Women held 12 percent of stock clerk positions at Publix;
these are the only positions that led to store management. The majority of Publix's
female managers were positioned in the deli. No forward advancement was possible
from the position of deli manager. Statistics also showed men earned 35 percent more
than females at Publix in 1994.









Publix denies that it discriminates. The company argued that female employees
chose not to take career-track jobs due to the long hours. Publix also claims that men are
15 times more likely to have stock-type experience prior to being employed with Publix,
thus justifying the pay differences.
On January 24, 1997, Publix agreed to pay $81.5 million to settle the lawsuit and
allow the EEOC to monitor hiring and promotions for up to seven years. Publix states
that the company settled out of court in order to focus on its business and to avoid
lengthy litigation. To date, the EEOC has not addressed any other sex discrimination
issues with Publix.


Management Structure
"Bottleneck" Structure
The original management structure of Publix consisted of a store manager, an
assistant manager, one to three second assistant managers, depending on store needs, and
departmental managers for the deli, meat, produce, and bakery departments. Only stock
clerks, also known as grocery associates, were eligible to become second assistant
managers. In order to become a second assistant, the stock clerk was required to be a key
holder. The key holder was responsible for supervising other grocery associates during
non-business hours when managers were not working. Non-business hours include
overnight shifts and early morning shifts before the store opens. The stock clerk was
required to have experience in all sections of the grocery department, including dairy,
frozen, dry goods, hardware, and health and beauty sections, before being authorized to
be a key holder. Each store was able to have one or two key holders. The key holders
were the only individuals who could be promoted. Exhibit 6 diagrams the promotion
progression.
This is a slow system of development with a limited training capacity for potential
candidates. Promotions were based on performance evaluations, time with company, and
manager recommendations. Essentially no quantified measurement was used for
promotion purposes. This progression was a time-consuming process. It took over two
years for a stock clerk to become eligible for the key holder position. Because each store
could only have one to two key holders, it limited the supply of candidates eligible for









promotion. With the rapid growth of the company, this system presented a problem for
the company.


Exhibit 6 Management structure prior to 1997


Store Manager


Assistant Store Manager j

.......... III. .IIII...III.I...........
Second Assistant

SGrocery Key Holder

Grocery Associates


Source: Job Classification System, Publix Super Markets


Pros for this system include a knowledgeable staff and camaraderie. Cons include
a slow promotion system due to limited pool of potential employees, inconsistent basis
for promotion, and narrow promotion potential.


Publix Premier Leadership Structure
The current management structure is known as PPLS for Publix Premier
Leadership Structure. Under this structure, a store manager and an assistant store
manager head a store. Second assistant managers no longer exist; instead a manager who
is directly under the assistant manager heads each department. The roles of the
management team also changed. All opening and closing responsibilities along with the
daily accounting used to be the responsibility of the managers. PPLS created a new
structure that allows associates in positions leading to management to perform these
duties, thus allowing management more time for other responsibilities. This provides
managers more time for customers and associates and less time with the accounting
procedures.











The Publix Premier Leadership Structure, PPLS, established two new

departmental managers, common area and grocery. The grocery department is defined as

all the dry groceries, dairy, and frozen food, and all the associates within that department.

The common area is defined as all the cashiers, baggers, and office personnel. The

common area is the department with the highest proportion of payroll and expenses and it

has the responsibility to provide continuous premier customer service. These managers

assume full responsibility for the daily and weekly operations of these business areas and

for the associates who work there. This system allows the store manager and assistant

store manager to devote more time and energy to customers, associates, and total-store

needs (exhibit 7).



Exhibit 7 Publix Premier Leadership Structure


Store Manager


Assistant Store Manager
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~


...I................................
Grocery Manager


Assistant Grocery Manager


........................ I .......................
SGrocery Team Leader
GroceryAssociates --
Grocery Associates


SCommon Area Manager


....... ..... ... A ............. .. ..


Assistant CA Manager


............................ I ......... ............
Office Staff


Office Cashier


L Cashier


Bagger I Other CA Associates


Other Department Manager


..................................A..... ..


SAssistant Department Managers


Department Associates


Source: Job Classification System, Publix Super Markets



PPLS was implemented company-wide in 1997. The original concept of PPLS

grew from a QIP, a quality improvement project. The goal of this improvement project

was to ensure quality, waste-free administrative procedures and processes within the

common area and to support other administrative needs. When this new management


...................................................................


CIIX----IIIIIIFIII11111~111


CI~----~~~---~l-^~llI-~---~--------_--_-









process was implemented, the company did not know that it would come to prepare and
provide the company with qualified leaders. This new system expanded the candidates
for promotion opportunities. Exhibit 7 illustrates the new hierarchy of command and
promotion.
The original objective of the Publix Premier Leadership Structure was to ensure a
quality, waste-free administrative procedure and process within the department known as
the common area and to support its administrative needs. This provided the checkout
area and human resource management responsibilities a direct supervisor responsible
only for those duties. This area of the store holds the highest percentage of payroll; the
departmental managers assume the full responsibility of the operations within their
specified business areas. PPLS provides each operation of the store a direct chain of
command.


Retail Selection Systems
Retail Selection Systems is the formal procedure for promotions under PPLS.
This system consists of two parts, both a registration and selection. The registration
allows for all associates to have an equal opportunity to be considered for promoted to
management. Registration, known within the company as ROI for registration of interest,
is a process used for all associates to express their interest for promotion into
management positions. The ROI process for management is available twice a year.
Selection is based on an evaluation of knowledge, skills, and ability. The selection
process involves three activities. Two Behaviorally Anchored Rating Scales (BARS),
one by the manager and one by the associate, evaluates work performance. A knowledge
test assesses procedures and responsibilities. A paper and pencil evaluation results in an
inventory of interpersonal skills. The evaluation contains scenarios and the associate
responds as to how to react to that situation. This is a consistent method used for
determining the most qualified candidate. The formal evaluation allows for an objective
system.
After satisfactory completion of the evaluation, formal interviews are performed.
A finalist list is created from the pool of candidates. This list provides the only potential









candidates for promotion until the next selection period begins. Each selection period is
approximately six months long.
There is also an ROI process for management-track positions. This process
allows associates to change departments or advance within their own department. These
management-track positions include office staff, grocery team leader, meat cutter, and
baker. This process does not require a test and it can be completed year round. This part
of the process exists in order to give everyone a fair opportunity for position that lead into
management. This process informs management of all associates who wish to advance
within the company. Promotion to these positions is based solely on work performance.

Advantages/Disadvantage
PPLS provides the department with the highest percentage of payroll a direct
supervisor responsible for only those employees. This system has resulted in increased
profits from lower payroll expenses. Payroll has been decreased due to the direct chain
of command provided by department-specific managers. Customer satisfaction has
increased due to increased customer service levels, decreased out-of-stocks, and
improved store conditions. Improved cash handling has been accomplished through
single-line accountability and simplified accounting procedures.
The store manager and assistant store manager are able to focus on store
operations and work with department managers to develop plans and improvements that
lead to profits. The store manager spends 40 percent less time in administrative functions
during the week. This system has resulted in less overtime requirements for managers.
PPLS allows for flexible career paths for department managers interested in store
management. Lateral movements are possible within management. All qualified
department managers have an equal opportunity to be promoted to assistant store
manager. The system allows for department interdependencies and total-store operations.
Total-store operations include customer satisfaction, performance results, and associate
development. This system has also expanded the career opportunities for women.
The greatest challenge for the company is the development of people, the building
of core leaders who will lead the company into the future. A structured program for
advancement has been created with the retail selection process. The retail selection









process is described in detail below. This process and new system of management
provides a wider selection pool of candidates from an already limited source. Recall that
the selection pool is limited due to the policy of promotion from within. The common
area can create many candidates at once. This is possible because each store has at least
five office staff associates. The grocery department can still prepare only one candidate
for management at a time. Each grocery department has a maximum of one team leader.
This creates an unequal opportunity that may lead to problems in the future with higher
promotions.
Pros of the PPLS include better communication, consistent promotion standards,
larger pool of candidates, focus on bottom line and efficiencies, recognition of customer
needs, and the potential for more trust in management due to the direct chain of
command.
Cons include lack of experience due to fast promotions and the lack of
educational requirements for managers. Managers are only department specific in
knowledge. A high school education is the only educational requirement for
management positions within the company. Many associates are promoted with a lack of
or limited business knowledge. This knowledge is learned and acquired through on-the-
job experience. This lowers the confidence of and respect given by associates to newly
promoted managers.
It is difficult for Publix to attract better-educated employees due to the promotion
policy. Every associate within the company begins at an entry-level position. These are
non-glorious positions such as baggers, cashiers, and stock clerks. The initial pay-off is
low in relation to other career options better-educated individuals have from which to
choose. The long-term returns of a management career are often far into the future and
difficult to attain. An education can substitute for the time with company in order to
create a fast track to management for college graduate, but it is unlikely that Publix will
change this system for promotion in order to attract better-educated associates. A change
in the system would upset the 70-year-old policy of promotion from within.









The Internship
I began my career with Publix Super Markets, Inc. when I was sixteen years old.
Little did I know that this part-time summer job would become my career. I was hired as
a cashier in a small store, approximately 30,000 square feet, in the spring of 1993. I
continued to work at Publix throughout high school and college. I have worked both the
line and customer service counter as a cashier. I have worked in a total of three stores
under both the old and the new management structures. I currently work in a store that is
over two times the size of my original store and averages $650,000 per week in business.
I now hold the title of Office Staff.
Qualifications for the Office Staff position include competency in front
office/customer service counter, courteous customer service, ability to read, write, and do
simple math problems, verbal ability, numerical aptitude, ability to interpret and
understand instructions and solve problems, and utilize interpersonal skills.
Responsibilities include working both independently and interacting with other associates
and customers.
Office Staff is a position leading to management. The Office Staff position is
defined to assist in the daily office responsibilities and provide accurate accounting of
daily receipts. My duties and responsibilities as office staff include daily bookkeeping
procedures including cash accountability, monitoring/supervising other associates,
ordering and stocking office supplies, payroll and schedule responsibilities, maintaining
the ATM, having direct control of the safe and maintaining security of the cash office,
job-class training, and assisting customers. Job-class training includes training
employees and verifying their knowledge of their job.


Conclusion
There are advantages and disadvantages to both structures of the management
system. Each system of management worked while it was implemented. Changes in the
company and demands of the industry have forced the changes in the management
structure.
There is also an obvious correlation between the development of the
departments/PPLS and the sex discrimination lawsuit. Common Area Managers advance









from the position of Office Staff. This position was formerly known as a bookkeeper.
Primarily women held the position of bookkeeper. The position of Common Area
Manager provides a quick fix to the statistical discrepancies associated with gender.
There is also a correlation between the company expansion and the change in promotion
progression. PPLS provides a wider training program for management candidates.
The company needs to carefully and continually assess the process of rebuilding
the structure of the company. The challenge for Publix is to determine if the new PPLS
system is the best option for the company or whether this corporate strategy is only
valuable as a way to provide a quick fix to gender discrimination. Potential problems that
may arise include too many qualified people for advancement thus making advancement
from department manager to assistant store manager difficult, inconsistent standards for
promotion up to Assistant Store Manager, and increased reliance on associates for
accounting procedures.
Like the company, the management structure is an evolving process. Both
internal and external demands will require changes in the Publix Premier Leadership
Structure. The company still faces the threat of a lack of qualified candidates due to its
rapid expansion. When observing external factors, Publix's competitors hire college
graduates for management positions. The future may force Publix to abandon old
policies in order to compete with its competition and to obtain qualified leaders. The
company may find that a compromise between the bottleneck structure and PPLS is a
better option for the company.









Acknowledgements
The following sources and individuals contributed to this paper:
"Directory of Supermarket, Grocery & Convenience Store Chains '00." Business
Guides. Inc.

Harris, Nicole. "Publix: Revolt at the Deli Counter." Business Week, 1996.

Holewa, Lisa. "Publix Super Markets Settles Sex Discrimination Suit for $81.5 Million."
The Detroit News, 1997.

Progressive Grocer's 1999 Marketing Guidebook and Competitive Edge, May 1999.

Publix Super Markets, Inc. Corporate Offices- Educational Development Department,
Media Relations, and Clayton Hollis

Sandy Baldwin, Assistant Store Manager
Chuck Brabham, Assistant Store Manager
Andrea Duncan, Assistant Common Area Manager
Kenny Hunt, Grocery Manager
Ken Walters, Store Manager
Todd Williams, Common Area Manager

www.publix.com
www.fmi.org
www.supermarketguru.com











TEACHING AND LEARNING PAPER SERIES
FOOD AND RESOURCE ECONOMICS DEPARTMENT


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An Introduction to the Teaching and Learning Paper
Series

Engaging Learners In Economic and Management
Education: A Challenge To Our Profession

Perspectives On Precision Agriculture: A Case
Study of the mPower3 Company



Perspectives In Human Resource Management: A
Case Study of An Incentive Program At Tyson
Foods, Inc., Jacksonville, Florida


Opportunities and Challenges in Satellite Campus
Agribusiness Management Education

Florida's Natural Growers: A Decision Case


Russell Provisions, Distributor of Boar's Head
Deli Meat and Cheese: A Decision Case

TRACER: A New Market Challenge: A Case
Study of a Marketing Plan for Dow Agro Sciences



Management and Advancement In A Theme-Based
Restaurant: A Case Study of the Ale House



Procedures For Peer Evaluation of Teaching In the
Food and Resource Economics Department


A Beginner's Guide To Understanding Mutual
Funds

Perspective On Internet Marketing: A Case Study of
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Title


Gary F. Fairchild


Gary F. Fairchild


Aaron Troyer
Gary Fairchild
Richard Weldon
P.J. van Blokland

Pavan Her
Allen Wysocki
Gary Fairchild
Patrick J. Byrne

Ferdinand F. Wirth
Suzanne D. Thornsbury

Benjamin Brown
Alien Wysocki

Meagan Langford
Allen Wysocki

Cara Martin
Patrick Byme
Richard Weldon
Ken Buhr

Norman S. Baer
P.J. van Blokland
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Gary F. Fairchild
John E. Reynolds
Tracy S. Hoover

Eric Gameff
P.J. van Blokland

Ronald Pearl
Gary F. Fairchild
Timothy G. Taylor


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1999

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1999

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2000


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2000


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Strategic Analysis ofa Small Firm Competing in the
European Mango Market


A Strategic Business Analysis of Pike Family
Nurseries



Using Business Simulations and Issue Debates to
Facilitate Synthesis in Agribusiness Capstone
Courses

Life Long Learning For the 21st Century Food
System-Will Colleges of Agriculture Respond?

A Beginner's Guide To Speculating and Hedging
The Dow Contract

Designing Agribusiness Capstone Courses:
Objectives and Strategies




A Beginner's Guide To Understanding Risk and
Portfolio Diversification



Incorporation of Peer Learning In An Agricultural
Curriculum

Observations of the Sentricon Termite Colony
Elimination System and Florida Pest Control and
Chemical Co.

Country Catfish Company: A Decision Case



Overview and Swot Analysis of Ocean Spray
Cranberries, Inc. -Citrus Division



The Grocery Industry Faces Change


Raquel Guzman
Gary F. Fairchild
Alien F. Wysocki

Gerado Sol
Gary F. Fairchild
Alien Wysocki
Karl Kepner

Gary F. Fairchild
Timothy G. Taylor


Lois Schertz Willet


Blake Glass
P. J. van Blokland

Charles R. Hall
Gary F. Fairchild
Timothy G. Taylor
Kerry Litzenberg
Gregory A. Baker

Blake Glass
P.J. van Blokland
Gary Fairchild
Tim Taylor

Sandra B. Wilson
Suzanne D. Thomsbury

Melissa A. Diaz
Allen F. Wysocki
Gary F. Fairchild

Megan Langford
Allen Wyscoki
Gary Fairchild

Jacob W. Searcy
Gary F. Fairchild
Timothy G. Taylor
Ronald H. Schmidt

Russell Gravlee
Allen Wysocki
Gary Fairchild


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TLP-00-29


A Case Study of American Cyanamid
Company and Exotic-Invasive Weed Control


Catfish Farming and Processing: The Lifeblood of
Western Alabama's Agricultural Economy


Perspective On Crop Estimation: A Case Study of
Tropicana Products, Inc.


U.S.-China Trade Issues and Agreements Affecting
Agriculture

Observations On A Scrap Recycling Firm and
Comparisons Between Short-Run and Long-Run
Financial Performance Measures

Cost/Benefit Analysis of Temik in Citrus In The
Indian River Area of Southeastern Florida


Strategic Analysis of A U.S. Chicken Company
Competing In Global Markets


Perspectives In Land Valuation: A Case Study On
Citrus Land Valuation For Prudential Agricultural
Investments


640-Acre Agricultural Property Appraisal In Central
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200-Acre Agricultura Property Appraisal In
Western Alabama

Mechanical Harvesting Cost of a North Florida
Blueberry Producer


Heading Toward the Frictionless Marketplace?


Eric Bonnett
Timothy Taylor
Gary Fairchild

Megan Langford
Allen Wysocki
Gary Fairchild

Xavier A. Abufele
Gary F. Fairchild
Timothy G. Taylor

Emesto Baron
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Matt Janes
Gary F. Fairchild


Lindsey A Blakeley
Richard N. Weldon
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Emesto Baron
Timothy G. Taylor
Gary F. Fairchild

Lauren Justesen
John E. Reynolds
Timothy Taylor
Robert Degner

Lauren Justesen
John E. Reynolds

Megan Langford
John E. Reynolds

Barry Starnes
Alien Wysocki
P.J. van Blokland


Michelle Walter December
Alien Wysocki 2000
Richard Weldon
Dori Comer


December
2000


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2000


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2000


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2000

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2000


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2000


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2000


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2000



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2000

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2000


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The Plum Pox Virus In Pennsylvania



We're Chicken: Tyson Summer Internship
Experience


Rock Springs 4-H Center: Asummer FRED
Internship


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TLP-00-36


The Marketing of A Lesser-Known Florida Fruit:
The Case of Guava At A Florida Packer/Shipper


The Florida Citrus Industry and PROWL 3.3 EC



Tyson Foods, Inc.: A Summer MAB Internship


Jennifer Welshans
Allen Wysocki
Karl W. Kepner

Kevin Walker
Allen Wysocki
Karl Kepner

Tori Hersey
Allen Wysocki

Steven Southwell
Richard Weldon
Allen Wysocki

William M. Gibbs
Allen Wysocki
Michael T. Olexa

Brett Cooper
Allen Wysocki
P.J. van Blokland

Keri Perocchi
Allen Wysocki
Karl Kepner


Launching ASN


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2000


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