Explain the success of Costco in terms of the three performance determinants in flexible leadership theory (efficiency, adaptation, and human capital). Explain how Costco can provide higher...

1. Costco’s performance should be measured on the basis of the success of the organization and long term competitiveness. Costco has cost-effectively adopted a flexible leadership model. They aim to maximize customer satisfaction without jeopardizing the quality of the products while working towards the goal of the organization. Flexibility leadership allows one to be highly adaptive towards the changes that drive business. Costco has always tried to adapt themselves as per the customer needs. They are quick in identifying customer needs and adapting to it. Costco as an organization focuses on keeping the employees happy. The employees of Costco get a 40% higher wage than their competitors in the industry. Approximately 82% of the employees have health insurance coverage and 91% are covered under the retirement plan (Page, V. (2019, November 18)). Only when the employees are happy, they can keep customers happy. For example, when a customer needs assistance in finding a product in the store, so instead of giving them the directions employee should show them the product. These small efforts also make a big impact on the organization’s performance. They focus on lowering distribution costs and prices to increase processing and efficiency. Due to the flexible leadership, the organization sees a very low turnover rate of 6% per year and the cost from turnover is also 40% lower than competitors in the...