Keywords: starbucks performance management, starbucks management strategy
Starbucks is one of the world's most recognized Coffee Companies, which was founded in 1971 in Seattle, USA. The company has more than 200, 000 employees, with16, 000 stores in over 50 Countries. It isn't only one of the very most popular Coffee houses for consumers, but also for employees. The company provides low turnover and high employee satisfaction ( labor force. com ).
The Position of your Barista
Working as a Barista within Starbucks USA is an extremely important position on behalf of the company because they are seen to be "The Face of Starbucks" ( legend dollars. com).
The job includes lots of responsibilities like the following :
- Works in just a busy environment, whilst left over calm throughout the process
- Working to keep an eye on customer cues and needs
- Training new employees
- Provides high level of customer service
- Taking purchases and generating sales transactions thought the utilization of an till
- Provides drinks and food at the Starbucks standard to customers, with use of relevant substances as reported by the company
- Maintenance of the shop floor / kitchen environment
- Recommendation of products to customers
(star bucks. com)
The Role of Work Inspiration in Starbucks
Starbucks has a well known job determination strategy which has enabled the organization to be highlighted favorably following on out of this.
Maslow's Hierarchy
Abraham Maslow designed a hierarchy of needs (Fig 1. ) which contains five levels, although there are usually more needs beyond these, Maslow assumed the model defined the basic needs of an individual working within an organization.
( http://honolulu. hawaii. edu/intranet/committees/FacDevCom/guidebk/teachtip/maslow. htm).
The lowest level of the pyramid is Physiological needs, such as food, drinking water and pay and job security. These needs are basic, and are therefore expected by all employees, Starbucks fulfils this level effectively, by offering employees with breaks to be able to fulfill appetite needs, as well as a constant pay rate which is paid either as a salary for full- time employees, or hourly rates for part-time. Another benefit which Starbucks offers to employees is a discount on the goods which the company offers.
The next Level in Maslow's Hierarchy is Basic safety Needs, which includes employees working within a secure environment when it comes to health and protection. Starbucks offers it's employees a clean and safe environment to work in, this is shown through the organization meeting health and wellness and safety benchmarks. Starbucks goes further than this by supplying a number of health related benefits for employees. Included in these are medical insurance, oral and vision health care, mental health dependency, brief and permanent disability and life insurance coverage. (workforce. com).
The third level describes the Public Needs, such as devotion from employers, as well as a friendly rapport, admiration from colleagues as well as professionals. Starbucks employees are shown admiration through their job title as "lovers" rather than being labeled as employees by managerial staff. Another factor which highlights the esteem shown for employees is the integration of teamwork which is urged by the business. Teamwork permits employees to get to know each other, in order to boost their relationships with each other, and work to the best of their talents.
The next level shows the Esteem Needs, such as job status and campaign. Starbucks comes after this by allowing a advertising to Barista's who show remarkable performance within the business. Starbucks strives to aid individual workers to go up from Barista to Store manager positions, and from there onto an area Supervisor role. Although the position of the Barista is easy, Starbucks demonstrates they do not limit employees when it comes to capacities and promotion. (Starbucks. com)
The the surface of the Pyramid outlines Self- Actualization within a job role. This implies that skills have been perfected by the individual, plus they may have a sense of achievement within their job name. Starbucks employees are placed through an exercise system which sets them onto a good choice of career and allows them to satisfy a feeling of achievements. One company survey outlined the one of the most notable reasons for wanting to improve Starbucks was "to work in a place where I feel I have value. " (workforce. com)
Equity Theory
The Collateral theory originated by Adam in 1963, the theory is dependant on the concept that all employee will get a balance between the input with their work and the outcome they be prepared to receive from other employer.
In the situation of Starbucks employees expect their hard work to be traded in for similar treatment from higher degrees of personnel as well as colleagues.
In addition, there is certainly well-organized communication between professionals and employees in Starbucks. For example, managers organize the interviews and timetable of time-off and working hours to fulfill the requirements of employees. Furthermore for employees, they are encouraged to give suggestions and develop plans to achieve their goals. http://www. freeonlineresearchpapers. com/starbucks-case-study
In this way employees suggestions can result in a positive result if their recommendations are taken into consideration.
Herzberg's Theory
According to Herzberg's Theory, there are Motivators and Cleanliness factors. Motivators include Accomplishment, popularity and responsibility. If they are met, employees will be very satisfied so when they are not met, workers will never be satisfied.
In Starbucks, there are series of training modules. They coach and coach employees to improve their job skills and drive them on the right path of career. In addition, organizational culture of Starbucks emphasizes the value of individuals. Every employee will get respect and care and attention from their leaders. For example, their recommendations and requirements are acknowledged and respected by professionals. Each employee takes on an important part in working in the company and they hold the right of enhancing company guidelines and joining in working out a direction of Starbucks. http://www. freeonlineresearchpapers. com/starbucks-case-study
Hygiene needs include company insurance plan, relationship with boss, work conditions, and romance with peers. If these are met, workers will never be dissatisfied. , if they're not met, employees will be very dissatisfied. In Starbucks, the company aims to improve good romantic relationship between director and employees. For instance, the leaders of an retail shop treat the basic level workers as 'partners' instead of 'subordinate'. Furthermore teamwork is motivated in the business and it is used for eradicating different statuses distance. The staff count for every team is usually between three to six which helps to get acquainted with each other easily. By teamwork, it not only brief the distance of every co-workers but also achieve good performance easily and quickly. http://www. freeonlineresearchpapers. com/starbucks-case-study
Preferred Changes
Although Starbucks has been known because of its motivational impact amidst employees, the company is still lacks particular factors which may be good for the employees. There are a number of changes that can be made in Starbucks which could make the position of the Barista more appealing to employees. The next factors summarize aspects which have to be worked on by Starbucks.
One of the largest downfalls which Starbucks presently holds is the amount it compensates to the employees working in the Barista position. The purchase this particular position is around $8 plus tips, however this is not a good deal above America's national minimum income rate of $7. 25. ( FIND WEBSITE)
This is not really a sufficient amount for employees to make a living and individually support themselves. (Bryant Simon).
Another disadvantage which includes happened through the management of Starbucks, is the unreliability in relation to staff shifts and pay investigations. Many employees found their working time were modified on regular basis, which makes it difficult for these to predict when these were able to devote some time off. This led to the loss of hours for most Baristas, which also possessed a knock on influence on their work supports, such as health advantages. (socialistworker. org)
Baristas are also under a higher work pressure, stores are understaffed, employers perform high expectation of every individuals behaviour, appearance and workload. For instance they should treat the clients as "celebrities". Employees are also restricted in their specific looks, and must adhere to a demanding work even code.
There are a few health insurance and safety hazards which have also afflicted Baristas, for example backache and foot pains from standing for extended hours, a noisy environment which can have a long-term effect on hearing and also machines which have a tendency to spray hot milk.
Justification and Consequences of Preferred Changes
An upsurge in pay on the Barista position at Starbucks could result in a negative impact on the budget of the organisation, as there are a big number of stores, numerous employees whom will expect a rise in their pay. However there will be a positive change amongst the employees, as this increase their determination towards the job, as well as job satisfaction. Over time this will benefit Starbucks as it might cause lower personnel turnover. Starbucks is a sizable company therefore this will never be a difficult step to allow them to implement.
A change which could also be executed to increase workers efficiency is for managers to create a place timetable, which allocates each Barista in the branch to specific switch times and times. This will result in employees awareness of their availableness. Employees will be happier knowing when they are working, and the company will reap the benefits of less absences.
Some employees in the past also found these were not being paid as regularly as they should be. A remedy to this would be to have a normal payment system for all those employees to be paid at the same time. If for any reason a problem was to appear in the machine, then management should offer with the individual employee's circumstances straight away to avoid worker dissatisfaction. This will result in the worker to become more understanding of the problem of problems are to happen, and management will receive less pressure and problems from other personnel.
One way to the situation of high job pressure is to use job rotation. This will likely enable employees to truly have a more relaxed strategy when they will work with customers. It is also important that Starbucks employs more staff if workers are overworking, it is especially important to establish staff on the shop floor during peak times. This will result in workers being better in both their task and time, permitting the organisation to carry out customer support to the best of levels.
In order to permit employees to express their individualism it could be possible to provide employees a particular day, such as the weekend, where they could dress down, from the typical Starbucks uniform. This will also make consumers aware that Starbucks carries forward a more relaxed strategy on employees during the course of the weekend.
Health and Safety measures are a major must for any business, therefore Starbucks need to prioritise with these factors, and find alternatives. Regular breaks should be applied to renew employees who are located during the day. Small improved such as providing employees with earplugs and long gloves may possibly also help prevent long term destruction of any type. This can affect the organisation in many ways, as if an employee is to have problems with any damage small or long-term they might not exactly only leave their job, but many would want to take action against them for not implementing high level health and safety measures.
Implementation Plan
Although there are a variety of factors that may overcome the details defined above, Starbucks need to place into practice an implantation plan that can be used in the near future to stimulate employees. This course of action should include the idea to overcome the biggest potential problems employees are facing.
A strong implementation plan includes the next factors:
- Increase in purchase Baristas
- Set transfer help Baristas
- An increase in part-time employees during optimum times
- Grievance Procedure
Pay is one of the biggest factors which is affecting workers in the Barista position. Therefore a rise in pay will catch the attention of a higher quantity of employees to work more efficiently, and they will be more stimulated to work the time which they are established. However a potential resistor of this change is the fact employees in other positions may also expect a pay rise following on from this. A way to overcome this issue is to provide employees in higher positions some other group of benefits, such as a bonus offer or vouchers.
Shift work can be an important implementation as personnel will be given a set time and day in which they are anticipated to work. This will provide them with quality of their responsibilities, and also permit those to use their spare time effectively. A resistor if this issue is that new employees might not have the ability to work the same time as those whose position they can be taking over, this may affect the entire quality of the job. A way of overcoming this is for management to spend a bit of their time with new employees outlining the time, and specific obligations which they are anticipated to complete.
An upsurge in employees during peak times will reduce the burden on the organisation, especially Baristas, as more help will be at hand during busy times. A potential problem to this area of the plan is that you will be charged Starbuck's more with time, money and other resources as they will need to teach new employees. However, it'll create a far more efficient end result with consumers, enabling staff to provide each individual at a faster rate, and enhance the quality of the service they have to offer. This could potentially lead to higher profits in the long term, as folks are likely to give back during peak times, instead of looking at how active the store is and shifting.
The last step of the implantation plan is to put into practice a grievance technique, which will enable employees to refer to management directly if they are having any personal, or commercial issues. This will likely enable employees to get support and understanding from other boss and increase the relationship between them.
STARBUCKS IN CHINA
Introduction-
Starbucks started concentrating on China in overdue 1990's and in 2005 after extending in major places, it also began to enter into the second-tier marketplaces.
Cultural Differences-
China is considered to be one of the world's biggest tea market, with around 200 million tea drinkers. One of the primary difference is people in China prefer tea over espresso whereas US has largely coffee drinkers so Starbucks is wanting to expand the tea market in China and have adopted a strategy to the upwardly mobile, young and considering consumer products especially the overseas products that have been not been available earlier. (http://www. oppapers. com/essays/starbuck-strategy-in-china/336773 )
One of the primary cultural difference in China would be that the employees in China have confidence in the concept of collectivist where higher value is placed on group assistance & specific modesty. IN THE US, the employees have confidence in individualism that is self-reliance. Self-promotion is extensively accepted & greater value is located on flexibility from externally compelled upon constraints.
The second difference would also be in their approach to social relationships. In China, employees are comfortable in a formal hierarchal environment where they understand their position & guidelines to behave using situations. In America, the environment is informal. They have confidence in equal communal positions where a social standing is given less importance.
Another important difference is time consciousness which is the productive utilisation of their time. In China, employees focus more on the past experiences & pay attention to long-term future goals. IN THE US, the employees are future focused.
Another point of difference can be tranquility. In US, people are willing to confront straight, discuss questionable issues and deliver criticism against one another. They prefer to go over issues and solve them by face to face communication. Whereas, in China employees avoid confrontation, questionable issues and do not prefer to handle each other directly.
Another difference can be related to process and relationship orientation. In US, people are activity oriented. These are assigned a specific task which they have to complete within the distinct time frame. This standards can help in classifying them as successful or inefficient. While in China people will be more inclined towards retaining romantic relationships. People consider building harmonious romantic relationship with one another is more important compared to the task fulfillment.
Howard Schultz, CEO of star bucks, has declared China to be their "number one concern" in conditions of development. Schultz and Starbucks aren't timid about their Chinese ambitions. Currently they have got about 11, 000 stores in 37 countries, including about 375 in China. By 2008 Starbucks desires to derive 20% of these revenue from Chinese language locations. Starbucks has a long-term goal of 30, 000 stores plus some 8, 000 in China. (ref : http://searchwarp. com/swa45663. htm )
MOTIVATIONAL FACTORS AFFECTING THEIR EMPLOYESS
Promotion and job-relatedness
The physical and environmental factors like promotion, job-relatedness and ethnic factors have been the main element motivating factors that majority of employees have been worried about as its has been associated with the earnings and living criteria. By getting a much better job position, employees would like better physical environment therefore perceiving an improved motivational learning since its straight beneficial to their job performance. One of the huge causes of job satisfaction is complimenting the employees on daily basis and by moving them an optimistic feedback. Even when its not genuine, will not really matter as it takes on an important role in motivational learning. (ref: Creators: K. B. Chuah, Kris M. Y. Legislations, year 2003)
Achievement motivation
Once the job goals and securities are fulfilled, the employees place their success goals to an increased level. They identify their job offers and career improvements as perceived accomplishment values. Such success is supported with sense of self applied- confirmation and self-enhancement, relating to communal cognitive theory. (ref: Authors: K. B. Chuah, Kris M. Y. Laws, year 2003)
Personal motivation
Self-willingness and feeling of satisfaction takes on an important role in motivating the employees as it not only concerns the employees about their basic needs, but also self-satisfying themselves and their spiritual needs. More employees acknowledge self-willingness as a part of motivational factor as it is an individual motive than as a feeling of satisfaction that might be achieved. (ref: Creators: K. B. Chuah, Kris M. Y. Legislation, year 2003)
Environmental elements
Apart from the involuntary and the primary factors that influence the employees mind, the exterior factors also leverages as environmental aspect. However, they are not as important as the personal factors but they still influence the motivational learning of the employee. The motivation can be in doing so achieved by changing people's brain through exterior reinforcements, e. g. , by giving rewards and recognitions. (ref: Creators: K. B. Chuah, Kris M. Y. Legislation, year 2003)
