Starbucks Corporation Human Resources Practices - Essay Example

Table of Contents Table of Contents 2 I.Introduction 3 II.Starbucks Organizational culture 4 Definition Overview 4 Culture 5 a)Values 5 b)Norms 6 c)Artifacts 6 III.Starbucks Rewards 7 Overview 7 a)Total Reward 7 b)Financial Rewards 8 c)Non-financial rewards 8 IV.Conclusion 8 I. Introduction Starbucks cooperation is an American multinational company, and it is responsible for offering beverages, and this includes coffee. The company began in 1971, as a coffee roaster (Simon, 2009). From 1987, to the year 2001, the company has expanded impressively, with approximately two stores, being opened per day. The first international market of the company was in Japan, where the company opened its branch in 1996 (Simon, 2009). The headquarters of the company is in Washington. The largest competitor of Starbucks is Costa Coffee. Starbucks has more than 21,000 stores in the world, and it operates in about 64 countries (Pahl, 2008). Majority of these stores are found in America, and the number is 12,218 stores. China is also a lucrative market for Starbucks, and the company has opened 1,330 stores. Starbucks offers products such as cold or hot beverage, coffee, pastries, snacks, etc (Pahl, 2008). This means that the company has diversified, and this is through the many services it offers. Initially, the main reason for the formation of Starbucks was to sale the coffee drink (Simon, 2009). This diversification strategy of Starbucks is also seen when the company decided to offer wines, beer and appetizers. The target markets of these products are people who want to relax in the evenings. Pahl (2008) explains that some of the products of Starbucks are found within a particular location, and this is mainly because it offers some services and products at specific seasons. These products have also been designed, to serve a specific market. Starbucks does not only sale its coffee, in its stores, but it also sales them at various retailing organizations, and grocery stores (Pahl, 2008). Through this strategy, it is the intention of Starbucks to reach a large market base. II. Starbucks Organizational culture Definition Overview Organizational culture is generally the unique combination of values, norms, morals, beliefs, and techniques or ways of behavior that characterizes the way individuals or large groups of individuals combine to have things done in an organization (Gurski, 2013). Schultz & Gordon (2011) explains that organizational culture is the norms and activities that people are able to engage with, within the organization. Through this definition, we are able to know that organizational culture is the internal environment of an organization, which regulates then manner which people within the organization are able to interact with one another, and other stakeholders of then organization (Michelli, 2007). Culture is very important in every company, for example Starbucks; this is because it lays a backbone of how individuals in the company are supposed to interact with each other. Additionally, a good organizational culture is bound to constitute a unique selling proposition (USP) of the company (Gurski, 2013). This would greatly help in boosting its sales more particularly for Starbucks because most of the commodities it’s store offer are being offered by other companies and competitors in the market, hence, with the Unique selling proposition (USP), Starbucks is bound to captivated its clients in its own unique way (Simon, 2009). With a unique selling proposition, Starbucks will manage to achieve a competitive advantage over its competitors (Simmons, 2005). This is because the clients and customers will be converted in advertisers, advertising Starbucks to their friends and relatives. Culture Organizational culture of a company is made up of values, norms, and artifacts. a) Values They are the core principles of a company’s culture. They constitute what is believed to be right in the company and what the people should work to achieve in the long run (Gurski, 2013). If the laws are efficient in dealing with criminals and crime, then there would be few incidence of crime within the country (Michelli, 2007). Laws that promote fair business practices, have the capability of influencing the values of Starbucks. For instance, the policy of the company is to promote equity and fairness, in terms of the payments, to its employees (Michelli, 2007). The intention of this policy or value is to be in line with the human rights act of 1963, which forbids discrimination based on gender, religion, or even race (Michelli, 2007). Starbucks values can be presented in tow broad categories, these include; customer satisfaction and employee satisfaction (Bussing-Burks, 2009). Customer satisfaction values include culture, welcoming, connection, kindness and respect. The employee satisfaction values include; involvement, welcoming, consideration, knowledge and genuineness. Looking at the above values, it can’t help but be noticed that some of them interplay and are found in both of the two major categories (Fellner, 2008). Additionally, there is a very close relationship between the two main categories of value; this is because, if the employee is satisfied, the services offered by them are bound to satisfy the consumer. b) Norms Norms provide tips on the appropriate way to behave in an organization. They are usually unwritten tips in an employee’s cognitive. They are usually transferred from on employee to another by either behavior or word of mouth (Fellner, 2008). This is a very effective tool, for it socializes new employees into how to appropriately behave in an organization as in our case Starbucks (Simmons, 2005). Drawing information from Starbucks’ culture and vision, there are particular norms meant to make sure its services and products as well the ways things run its thousands of stores across the globe satisfy both the customer and the clients (Pahl, 2008). For example, Starbucks is wholly dedicated to creating a working environment that values and respects people from all diversity, background, or culture. c) Artifacts Artifacts are usually the tangible and visible elements of a company and often, it is the only indication outsiders usually have of the culture of that particular organization or company (Fellner, 2008). For example, events organized by the company, stories about the company, and to some extent the office layout or layout of stores as in our case of Starbucks (Simmons, 2005). For example, Starbucks supports various thrive wellness programs, career sabbaticals, internal recognition programs, and elite athlete assistance programs. III. Starbucks Rewards Overview A reward is a means or strategy employed in ensuring competitive advantage of other companies and enhancing a company’s performance. It employs systems, alignment payment strategies, and payment processes in the company (Pham-Gia, 2009). According to scholars, reward types vary from company to company. Furthermore, the reward system that a company has initiated has to change, with occasions. This is because of the changing needs of customers, and employees of the organization. a) Total Reward This is a model used that combines both non-financial means of rewarding an employee and financial means of rewarding an employee. This makes sure that the needs and desires of the employee are met, hence motivating them (Gilbert, 2008). These rewards can include bonuses, trips, non-financial rewards such as presents and many more. For example, Starbucks offers various training programs on various fields, meant to empower their employees more. b) Financial Rewards Financial rewards generally include the all attempts by the company to keep its employees motivated using finance based techniques. These might include the use of salary increase, here, the salary of employees are increased with subsequent increase in production. It may also include bonuses given to employees (Simon, 2009). A bonus is an increment in an employee’s salary only for a specific p[ay date but not all pay dates. This gives employees the strength and vigor to want to work hard because if the company does well so will they benefit from bonuses (Bussing-Burks, 2009). c) Non-financial rewards Non-financial rewards given by a business to an employee can simply encompass the friendly and good working environment the employee is working in. According to Starbucks data, they offer training to their employees as well as thrive wellness programs that are meant to build their employees moral and keep them motivated (Bussing-Burks, 2009). IV. Conclusion Employees spend long working hours in companies and organizations working. To boost their productivity a good working environment needs to be created and this starts by mapping a perfect, friendly, and wholesome organizational culture (Fellner, 2008). Starbucks is a pioneer at this and this attributes to how well its stores located all over the globe are still doing well despite all those differences in culture and the many diversities. For example, drawn from its vision statement, Globalization and growth shall not by any instance dilute or affect the companies culture negatively, and Starbucks is wholly dedicated to the creation of a good working environment for all its workers, this is mainly achieved because of the respect and values that are encompassed in its culture. From the vision of the company, it is possible to denote that Starbucks values its organizational structure, and it is constantly improving it. This is with the intention of creating an organizational culture that can help the company achieve its objectives. The objective under consideration is profit maximization. Fellner (2008) explains that a bad organizational culture has the capability of making the company to fail in its objectives. This is because the company may get a negative brand image, which may in turn make customers to shun its services. Bussing-Burks (2009) therefore explain that a good organizational culture, is the key to the success of a company. Bibliography: Top of Form BUSSING-BURKS, M. (2009). Starbucks. Santa Barbara, Calif, Greenwood Press. Top of Form FELLNER, K. (2008). Wrestling with Starbucks conscience, capital, cappuccino. New Brunswick, NJ, Rutgers University Press. Bottom of Form Top of Form GILBERT, S. (2008). The story of Starbucks. Mankato, MN, Creative Education. Top of Form GURSKI, D. (2013). Customer experiences affect customer loyalty: an empirical investigation of the starbucks. [S.l.], Anchor Academic Publishin. Bottom of Form Bottom of Form Top of Form MICHELLI, J. A. (2007). The Starbucks experience: 5 principles for turning ordinary into extraordinary. Maidenhead, McGraw-Hill. Top of Form PAHL, N. (2008). The idea behind the Starbucks experience: the main elements of Starbucks strategic diamond. Munchen, GRIN Verlag. Bottom of Form Top of Form PHAM-GIA, K. (2009). Marketing strategy of Starbucks Coffe. München, GRIN Verlag GmbH. Bottom of Form Bottom of Form Bottom of Form Top of Form SCHULTZ, H., & GORDON, J. (2011). Onward: how Starbucks fought for its life without losing its soul. West Sussex [England], Wiley & Sons. Top of Form SIMON, B. (2009). Everything but the coffee learning about America from Starbucks. Berkeley, University of California Press. Top of Form SIMMONS, J. (2005). The Starbucks story how the brand changed the world. Singapore, Marshall Cavendish. Bottom of Form Bottom of Form Bottom of Form Read More