Introduction to Starbucks
In 1971, Starbucks was established in America as a coffee brand in the market. They produce the hand made coffee such as espresso and many hot/cold drink for consumers. They also provide some deserts for customers.Nowadays, they have over 21300 chains over the whole world. They promise consumers only use the top quality coffee beans and preparing the products. They are willing to pay the high expense on import raw material to make sure consumers’ health. Starbucks also provides friendly environment to the customers where they can sit and have chat with their family members and friends to reduce their stress of work. This is why Starbuck is so popular in 21 century.
Starbucks was first founded by Jerry Baldwin, Zev Siegel and Gordon Bowker as single store in Seattle’s Pike Place Market.
In 1982 Schultz joins the Starbucks team. While travelling Italy Schultz discover Italian coffee bars and he inspired them. In 1987 Schultz buy Starbucks company from the founders and started to expand the business throughout the US. In 1992 Starbucks company become famous among the public and customers started liking the taste of the coffee. In 1993 company opens its first roasting plant in Washington.
Our Products
- Starbucks offers a variety of different products that consumers enjoy in our stores, at home, and on the go.
- Coffee: Starbucks offer different premium coffees.
- Handcrafted Beverages: Starbucks offer teas coffee, cappuccino, different types of espressos caramel coffee on their stores which are freshly made.
- Coffee- and tea-brewing equipment, mugs and accessories, packaged goods and gifts.
- Fresh Food like pastries ,sandwiches and lunch boxes.
2. Objectives and mission of Starbucks
Mission – Starbucks mission is to maintain Starbucks as the pillar of the coffee in the world while maintaining their uncompromising principles as they grow.
Starbucks, mission is to inspire and nurture the human spirit-one person, one cup and one neighbourhood at a time. The company aims to meet this goal through the fulfilment of a culture that depends upon the personal growth of the company. The company growth depends upon the personal values. The goal of acceptance extends into the company’s diversity and accessibility policies.
Starbucks has developed a statement that includes development, new features ,high values and accountability as elements of the company’s value. The corporate mission statement defines company’s goal.
3.1 Organisational structure
Organisational structure is a method used to define a hierarchy within an organisation. It is designed to set up how an organisation works and assists an organisation to acquire its goals for the future growth.
Vertical organisational structure- it is that structure where employees have to depend on managers for command and there is full control of managers on employees to complete task.
Horizontal structure-as the vertical organisational structure, horizontal structure or flat structure has fewer levels of management in managers and employees. The system is decentralised in decision making, although each manager has skills to do their own task. As decision making is decentralised, management can bring change in the system by taking right decision.
Starbucks follow horizontal organisational structure where manager has the right to take decision and to have regular check on the employees although Starbucks give the equal rights to all the employee to take the decision. In Starbucks employee has the right to give feedback to the managers directly. Whereas managers can make speedy decisions.
3.2 Analyse organisational structure of Starbucks
Starbucks follows functional organisational structure and relatively flat where Starbucks company has divided the work into different operations of work according to the specialisation of the person as in which the person is qualified. For example: a barista in Starbucks is there to make coffee not for him to serve customers because he is specialised in his field.
3.3 Advantages and disadvantages of modern organisation
Functional structure:
Advantages- It is a steady and effective structure that stimulated specialisation in an organisation because there are controllable team members with comparable knowledge and this structure is managed by a skilled individual who can evaluate work presentation.
Good relationship with supplier/coffee bean Farmers-Starbucks maintain good relationship with the suppliers and farmers in order to get the best quality of coffee beans to give best quality in return to the customers. For the 40years Starbucks maintains a good relationship with the suppliers.
Controlled Product Quality – Starbucks control its product quality by using their resources and preparation of coffee in right way upon orders of the customers and by spending their working capital in best way they can in buying and storing coffee beans.
Disadvantages- Workers are not provided with the friendly environment as they cannot share their thoughts with one another worker that can possibly decline the flexibility and innovation among the workers.
Cost-the cost of coffee beans are very effective as they use to buy high quality coffee beans and in return customers get expensive coffee.
Time-consuming- Preparing coffee in Starbucks is time consuming as they use to prepare coffee powder on the spot which dissatisfy customers as they have to wait for longer period.
Matrix structure:
Advantages- it is a well collaboration and problem-solving structure in which the characters are given to the workers according to their strength that improved the elasticity because teams can effort in various ventures.Employees considered themselves as business partner because their decisions do matter for the company.Benefits programs are offered to the employees.Standardised operation.
Disadvantages- this structure decreases quickness in decision making and conflict determination that forms a congestion in making choices, it increases the complication in the projects of an organisation. (uk essays, n.d.) (Magloff, n.d.)
The pressure to farmers- Because farmers are having contract with the farmers they cannnot supply their coffee beans to the other companies because they are not eligible to change the price of coffee beans because of the contract which they have signed with the Starbucks company.
Time of training- Training time is too less in the company they didn’t provide the proper training yo the employees in order to cope with the equipments.
4 Leadership
Transformational leadership-transformational leader creates a relationship between leaders and followers that helps followers reach their full potential and can transform both. Schultz principles of leadership and his way of running Starbucks presents him as transformational leader.
Starbuck management respect the cultural diversity in every country where Starbucks operate and encourage diversity of staffing in all their outlets. According to the Starbucks CEO, Schultz , he always believe that every place has its own importance and he designed his store accordingly.
Knowing employees and customers- The customers and employees are pillars of business for Schultz. Frappuccino was invented from the innovation of the employees and becomes an exclusive coffee variety at Starbucks. Schultz principles of leadership and his way of running Starbucks presents him as transformational leader.Intellectual stimulation- challenge status, encourage followers to be creative, explore new ways and new opportunities. Schultz listen to his employees believes they have ideas being worthy for the benefit of the company.
4.2 Effectiveness of leadership styles
From the above the organisation has an effective transformational leadership style. It is that leadership style in which the leader works with the team. Starbucks follow that rule where all the team members work together and they are given same and equal rights where they were offered to give their ideas and views to the CEO. It also enhance the motivation, morale through different variety of mechanisms.it also creates a relationship with the leader and followers that helps followers to reach their full potential and can transform both. Listen to the employees believes that they have ideas being worthy. By keeping lines of communication open. Instead of punishing or ignoring a worker for interviewing with NEW YORK TIMES about work schedules, her concerns were heard and resolved. Clear vision shown to followers. Able to help them experience same passion and motivation. Spreads Starbucks mission, vision, & values. Starbucks vision is to develop a company focused on treating people with dignity and respect.
4.3 Job satisfaction model of Starbucks
Job satisfaction has two main factors:
satisfaction/no satisfaction
Intrinsic factors-advancement, recognition, achievement, responsibility
Dissatisfaction/no dissatisfaction
Extrinsic factors-pay, working condition, company policy supervision.
Improving extrinsic factors does not guarantee job satisfaction, but it guarantees no dissatisfaction.
Extrinsic factors: ensuring no job dissatisfaction
Heightened sense of autonomy up to the lowest subordinate.
Spends more on training than advertisement.
Creativity of partners get utilized in the business.
5 Power and politics
Reward power which is increasing the salary and give high level job opportunity, if employees of Starbuck show good working performance. In other words, compliance through granting rewards. This is a positive way to motivate employees by their power.
Coercive power which is the CEO or middle managers scared the people and force employees to do the work; compliance through threatening. For example, the Starbuck managers use their own authority to force employees to work 10 hours for each weekday, employees have to follow them but they might not work effectively. The managers use coercive power is negative power to motivate employees to do the work.
Legitimate power which is the CEO or managers has authority to lead employees and give them the task to do, because they are at the high level position. Compliance through authority. Which is the managers’ legitimate position. For example, the person who is the manager of
Starbuck that he can use his power to give the task to employees. As well as he can use his power to ask employees to follow him. It is that power which is based on the organisational structure position. It is also known as positional power.it is an organisation derived from the position a person holds. For example: it is that power where junior worker has to reports to the managers after the completion of the work.
Legitimate power holds administrative position. These are the people in the departments of Human Resources and Accounting.
Referent power which is the Compliance through the use of charisma. Leader who inspire, encourage and motivate employees to work effectively. And leaders give the advice form their heart.
The Starbuck managers and CEO can use this nice way to provide suggestions and advice for employees from heart, it can motivate the employees effectively to work hard on their work. Sometimes, the Starbuck managers don’t say anything, but they through do something to affect employees.
Expect power which is Compliance through one’s knowledge, experience and information fro other old employees.
For example, the new employee of Starbuck just hired yesterday, the first day go to work might knew nothing or don’t know what he should to do. Then he could get and learn knowledge, information form other employees/managers who are already have the experience. In other words, the employees and managers who have the experience can share their knowledge with new persons.
Through this power can impact Starbuck employees can easily and quickly handle job in the short time.
Personal power it is that power where no formal position gives power to anyone. The group communication that happens based on these power sources is known to put friendly and open cooperation between employees. For example: personal power can be seen from the employees who take care of customers orders considered the face of the company since they provide customers the experience and atmosphere within the coffee houses. On the other hand, the experts are those who handle the shifts.
Politics:
Rational persuasion is one of the influence tactics, it means the manager makes the employees(someone) to agree with him and he confirms employees’ job.
The managers try to convince someone and facts goals.
The consultation tactics which is asking the employees’ opinion and make the decision together. Getting others to participate in planning, making decision and change.
The inspirational appeals, which is trying to build enthusiasm by appealing to other’ emotions, ideas or values.
The ingratiation which is the manager connects the employees and eyes to eyes. It is getting someone in a good mood prior to make a request. The employees take attention from boss. Being friendly, helpful and using praise, flatting or humour.
The personal appeals which is the friendship and loyalty, creating the relationship with employees.
k managers don’t say anything, but they through do something to affect employees.
Expect power which is Compliance through one’s knowledge, experience and information fro other old employees.
For example, the new employee of Starbuck just hired yesterday, the first day go to work might knew nothing or don’t know what he should to do. Then he could get and learn knowledge, information form other employees/managers who are already have the experience. In other words, the employees and managers who have the experience can share their knowledge with new persons.
Through this power can impact Starbuck employees can easily and quickly handle job in the short time.
Personal power it is that power where no formal position gives power to anyone. The group communication that happens based on these power sources is known to put friendly and open cooperation between employees. For example: personal power can be seen from the employees who take care of customers orders considered the face of the company since they provide customers the experience and atmosphere within the coffee houses. On the other hand, the experts are those who handle the shifts.
Politics:
Rational persuasion is one of the influence tactics, it means the manager makes the employees(someone) to agree with him and he confirms employees’ job.
The managers try to convince someone and facts goals.
The consultation tactics which is asking the employees’ opinion and make the decision together. Getting others to participate in planning, making decision and change.
The inspirational appeals, which is trying to build enthusiasm by appealing to other’ emotions, ideas or values.
The ingratiation which is the manager connects the employees and eyes to eyes. It is getting someone in a good mood prior to make a request. The employees take attention from boss. Being friendly, helpful and using praise, flattering or humour.
The personal appeals which is the friendship and loyalty, creating the relationship with employees.
The exchange tactics which is making explicit or implied promise and trading favours.
The coalition tactics which is helping each other, showing employees how to do that.
The pressure tactics which is demanding compliance or using intimidation or threat. The managers and CEO force employees if they don’t want to work.
The legitimating tactics which is the CEO or managers has authority to lead employees and give them the task to do, because they are at the high level position.
5.2
Starbuck through the legitimating tactic to lead employees. the person who is the manager of Starbuck that he can use his power to give the task to employees. As well as he can use his power to ask employees to follow him. Because the manager is at the high position level; he has the authority to ask employees to follow him.
Starbuck through referent power to motivate employees to work hard. They provide the free training for employees to make coffee. The manager also will give them some advice for heart to improve weakness. Sometimes, the Starbuck managers don’t say anything, but they through do something to affect employees. The manager encourages employees to learn more coffee knowledge and skills to service for customers.
5.3
Starbuck can improve their management by giving more job opportunities for low level employees and increasing salary.
The main purpose for employees work in Starbuck which is they want to earn the money to improve their life quality and pay bills. The company also need to care employees feeling, Starbuck company should provide an equal wage and treatment for employees. Then employees will feel satisfied and more confident to service for consumers. company can offer more free training for employees to learn coffee knowledge and provide more job opportunities for employees who work well. Through this method can motivate employees work effectively.
Participative management-it is the process of involving employees at all levels of decision making process. Means to influence others by making decisions.
Starbucks can improve participative management in employees through the following –
By providing higher status to the employees- all the employees are given chance to show their capabilities in the process of taking decisions in the organisation. This improves the employee satisfaction level.
Brings employees and management closer-participative management facilitate meaningful communication and ensures employee relationship. Starbucks should treat their employees in same way which inbuilt and improves employee and manager relationship.
6 Recruitment process & selection techniques of Starbucks
recruitment is a process used by an organisation to attract the find a suitable candidate for a job position. There are two sources of recruitment: internal and external sources.
In Starbucks, the employees’ recruitment is done by both sources. Firstly, the HR Management provide promotion and transfer to the highest post from inside the organisation’s employees like they check the employee record about how the employee promote the company by giving more information of Starbuck to friends. Secondly, whenever a candidate applies for job the HR Management check the referent employee name to select the candidate.
In external method, the HR Department makes a job description and then post it on company’s website as well as on other websites like seek, trade me.
6.2 Suggestions
As an HR analyst, Starbucks recruitment should choose more experienced candidates with good knowledge of coffee, who have done the course of barista and customer relationships because the company focus is the customers. Also physical characteristics are considerable, because is necessary to be fast to serve and attend customers.
Experienced candidates can help the organisations with shared vision experience. (foe example: good solutions for any complaints) it can helps with excellent new ideas that could be helpful to increase the development.
Training methods could be better. If Starbucks had a guide book for new employees with the methods to cope with the techniques or how to operate the equipment how to manage with them and be use to it.
7.1 Purpose of performance appraisals
Starbucks provide their customers with attractive and different variety of coffees, as well as provide their workers, a cooperative environment and proper attention, to satisfy themselves.
They give 24 hours of seminars, an option to select the zones such as trade skills or customer service, to the new entities.
7.2 Appraisal methods and processes
- Starbucks use the customer comment card to determine the work activities of their workers. For instance, if an employee gets more than half out of hundred on their consumer comment card, then they receive extras from the leaders.
- Starbucks provide their workers with budget, after every 30 days, which is a board of what amount of money made by the workers, in their work periods. For instance, if the employees are completed with their goal, then the manager cannot cut the money from their payments and if they get more than their goal, they will provide with bonuses.
- Starbucks trained their workers for 360- degree feedback, which is given by the different level of managers to one another to influence them to work effectively, that will prove to be beneficial for themselves to get rewards on their better performance.
7.3
Starbucks must check the last year performance of their workers and if they are good at the work, then provides them with new targets and if they are unable to complete their previous goals, then encourage them to work hard on their duties and provide special training if required. (The KPI Institute, n.d.) (Starbucks-performance-appraisal, n.d.) (University of Minnesota Libraries Publishing, n.d.)
In Starbucks, for effective management is important for each store manager should do the evaluation of the employees in topics:
- Time management (punctuality and time efficient)
- dress code
- hygiene
- behaviour with customers
8 Job description
Job title: barista
A barista is someone who greets customers, he also have to take orders and have to create quality coffee and make the environment friendly.
His job is also to manage the store and store belongings.
Job duties of Starbucks barista
- Promoting Starbucks values
- Provides customer satisfaction
- Able to give their best in under pressure conditions.
- Maintaining good planning skills
- Should arrive on time on shifts
- Able to work flexible hours or will be available on call
- Should be multi tasker and able to do different roles
- Prepare food products and handles cash very well
- Skills and experience for barista
- Good communication skills
- Work under pressure conditions
- Satisfy customers
- Have done certification in course of barista
- Have experience of one or two years
- Motivational skills