...Employee Motivation According to Starbucks Abstract It is paramount for organizations to motivate their employees. This is especially true for companies that heavily rely on its front-end employees in offering its brand and service to its patrons that, in turn, shape the public image of these companies. Starbucks can motivate its employees by increasing the salaries or wages of its rank-and-file, by providing financial incentives, and by engaging employees in one-on-one consultations in order to obtain the treatment that befits their expectations. Although there are other factors that may be considered, the aforementioned three are the fundamental ingredients in motivating the employees of Starbucks. Employee Motivation According to Starbucks Employees, especially those at the frontline regularly dealing with potential and actual clients, provide the apparent public image of any company (Kovach, 2011). Thus, the poor performance of frontline employees will easily reflect on the public perception of the quality of service that the company offers. Good performance, on the other hand, translates to good corporate image. For this reason, there is a need for organizations to ensure that their employees are performing according to quality standards in the industry. While top-level management may institute policies that will require employees to strictly follow not only internal standard operating procedures but also industry standards, motivating them to actually perform well...
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...and acts upon those values and beliefs openly and candidly. An authentic leader is selfless, listens well and is honest. (2011) This leadership style describes that of Starbucks CEO, Howard Schultz. Mr. Howard Schultz demonstrates ethical behavior and articulates value filled words within the organization and with its customers and suppliers. As a result of the tone in communication from Mr. Schultz employees perceive that they are important to the success of the organization and are also open in communicating. The idea of enlightened self-interest which is a main theme of Starbucks is exhibited to employees through the company’s dealings with its customers and suppliers. “Enlightened self-interest” entails that the company is still aware of its purpose of making profits, but it does so in a way that the other party wins too. (2008) Communication is very positive, inspiring and uplifting. Employees have a sense of meaning and are motivated to perform effectively. Maintaining effective communication, Starbucks uses a model of communication used generally by smaller group networks, all channel communication. All channel communication allows employees to communicate actively with each other, making all members free to contribute (Robbins, 2005). How would different leadership styles affect communication at Starbucks? First, a charismatic leader would affect communication at star bucks in that a charismatic leader will only exhited behavior that algin with his own goals and interests...
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...Organizational Commitment and Communication Starbucks uses organizational communication to share important information and messages. The company operates at the international level in coffee supply and coffeehouse chain (Starbucks Coffee Company, 2012). Organizational communication at Starbucks is well developed. Leadership plays an important role with in Starbucks in terms of organizational communication. Leadership helps establish the effectiveness of communication with in the company to help increase growth and success. Starbucks cannot adopt to the different leadership style because of the impact of the working environment and the performances of their employees. If Starbucks were to use autocratic leadership the directions would be given to the associates, where they would be expected to follow the directions. Autocratic leadership suggests a one-way communication process in the company. Therefore, management would keep their authority and have control over the decision-making. Starbucks believes in improving the quality of their business but by using an autocratic leadership style they will loose their group communication and also the success of their long-term goals. If Starbucks were to have a charismatic leader then the managers will be able to influence the employees. The employee’s that receives the motivation will put in greater effort to achieve Starbucks goals, mission, and vision. Charismatic leader can motivate their employees and convince them to get the...
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...CHAPTER I INTRODUCTION Starbucks Reward Program has found a new way to connect with other customers such as creating an internet site where they can gather information about their rewards and points. Therefore; we will conduct more research about the rewards program that they have, and what will be the good benefits of it for their customers. We will show the kinds of rewards they have and its backgrounds. Thus, this can be a preference for the other Starbucks Patronisers if they still don’t know what other reward programs they can have and what will be the advantages and disadvantages of it. However, these rewards have some misfires that you will know. This study will only occur from August to October 2014. We will only gather first information from the questionnaires and interviews that we will conduct to provide the most accurate information and to prevent false information. Background of the Study Starbucks Reward Program encourages their customers to buy their products because of rewards. Reward programs of Starbucks were created to test the loyalty of their customers. There have been changes about their rewards to test the loyalty of the few. Starbucks Rewards Program also has the capability of giving their customers satisfaction by giving them back the gratitude for buying their products. The purpose of the study is to identify the credibility of the reward program of Starbucks Coffee. Rewards Program of Starbucks also allows customers to access or to track their...
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...Introduction Human resource management is a field that is concerned with issues that relate to employees. The employees are the main resource for the company as they determine the success or failure of the company. The needs and expectations of these employees should be taken with a lot of concerns in the long run. Human resource management is a process of managing people in the best way so that they can contribute towards attaining the goals of the company. This is meant to manage people in the best way possible and also award them well with an aim of motivating them to be more productive. Task 1 Some people claim that there no differences between personnel management and human resource management. Both of them are important management sectors that work together for the growth of the organization, by managing and serving their employees. It was found that, nowadays, HRM has a broader scope than personnel management. Personnel management involves planning for a short time period while human resource management is concerned with long term planning. 1. Personnel management deals with employees, their payroll and employment laws. On the other hand, Human Resources Management deals with the management of the work force, and contributes to an organization’s success. 2. HRM basically deals with developing personnel management skills. It is Human Resources Management that develops a team of employees for an organization. 3. While Personnel management is external for the locus of...
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...best option to support this plan. Based on the generic benchmarking for issues facing Riordan the following companies have been identified as having some of the same issues: Graybar for team compensation strategies, BHP Copper for gainshairing, American Standard and United Parcel Service for work life policies, Transtec Group and LeasePlan USA for pay-for-performance plans, and Starbucks for part-time employee benefits. Based on the findings this paper presents some best practices to be used based on other companies. Key Course Concept The following companies were benchmarked against issues facing Riordan. These companies are Graybar Electric Company, BHP Copper, American Standard, United Parcel Service, Transtec Group, Starbucks, LeasePlan USA and Verizon Communications. Riordan was benchmarked again Graybar in regards to team compensation strategy. Teams have become a popular way to organize business because they offer companies the flexibility they need to meet the demands of the ever changing business environment (Zobal, 1998). This process should be slow. Riordan had a compensation plan focused only on team performance without considering the growth in employee benefits. The concept that was benchmarked with American Standard and United Parcel Service was work life policies. Work/Life Focus are programs that help employees better integrate their work and life responsibilities include time away from work, access to services to meet specific needs, and flexible work arrangements...
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...different type given the stage of the project. * The first stage began with the use of exploratory research, which is useful when researchers lack a clear idea of the problems they will meet during the study (Cooper & Schindler, 2014). This stage began with early secondary research of the market and indicated that such a product did not exist in the credit services industry. Starbucks went on to explore possible partners by approaching major card service companies. It conducted interviews with bank executives, visited call centers; even listened in on phone calls to learn how each resolved customer credit card problems. Through exploration researchers develop concepts more clearly, establish priorities, develop operational definitions, and improve the final research design. * After Starbuck identified their perfect partners, stage two was conducting focus groups. They tested the idea of a dual functionality card with four focus groups, using the services of an independent moderator. The focus groups involved two major groups of Starbucks customers who owned a credit card: those who used the Starbucks Card and those who did not. The data obtained from the focus groups proved to be extremely helpful. In exploratory research, the qualitative data that focus groups produce may be used for enriching all levels of research questions and hypotheses and comparing the effectiveness of design options (Cooper & Schindler, 2014). This was definitely true for this case. “The focus groups...
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...Company Overview Starbucks has grown from a single store in Seattle, Washington in 1971, to a corporation operating 19,767 stores in over sixty-three countries. CEO Howard Schultz is committed to continued expansion while retaining Starbucks’ reputation of having the best coffee in the world. In 1990 Starbuck’s senior executive team created their mission statement and principals, which would incorporate Schultz’s principles. In their mission their final statement proclaimed “people first and profits last” with the number one guiding principal of Starbucks was to “provide a great work environment and treat each other with respect and dignity.” (Ferrell, Fraedrich & Ferrell pg. 325, 2012) Starbucks Mission Statement is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. (Starbucks.com) Positions In our Compensation System Proposal for Starbucks, we will analyze and define positions in the organization. These positions are Barista, Shift Supervisor, Assistant Store Manager, Store Manager, District Manager and Regional Director. We provide a general overview of these positions to the reader in order to facilitate a better grasp and idea of what these critical roles and job functions are in the Starbucks organization. The Barista is considered to be the face of Starbucks, and as such, they are an important part of the customer’s day. The Barista is an expert in handcrafting deliciously perfect beverages. Barista’s are the connection...
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...a major role in the success of an organization (Robbins & Judge, 2011). Using Starbucks as an example, its success will be analyzed by way of the affect that leadership, power, motivation, and commitment have. Effect of Leadership Styles on Group Communication Leaders have two roles in business: vision and implementation. As the visionary, leaders define the direction. They communicate the mission, values and beliefs the organization aspires to for its people. Once people understand the direction in which the company is going, a leader must also take on the task of implementation. Different leadership styles will affect group communication in different ways. The most common leadership styles today include charismatic, transformational, transactional, and authentic. Charismatic leaders have a vision and can articulate its importance to others, are willing to take on high personal risk, are sensitive to the needs of others, and behave unconventionally. Transformational leaders have an idealized influence, offer inspirational motivation, provide intellectual stimulation, and give individualized consideration. Transactional leaders reward for effort, actively or passively manage by exception, and may abdicate responsibilities. Authentic leaders share information openly, enjoy open communication, and behave in accordance with their own values and ideals (Robbins & Judge, 2011). Starbucks clearly has transformational leaders – “Leaders who inspire followers to transcend...
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...The Future of Starbucks An Analysis by Team Macchiato: Zack Higbee Chen Yee Liaw Calvin Ting Kevin Tjho Michelle Ton 1 Executive Summary Starbucks Corporation has arguably been the most successful coffee chain in the past few decades, using their aggressive expansion strategies to push out much of its competition. Through its expansion, Starbucks has focused on creating a dense network of stores all around America, while also opening up new locations all around the world. By leading the retail coffee market, Starbucks is able to sell its coffee for a premium price and increase their profitability. Its success can be seen in the gradual rise of its stock prices from 1992 – 2007, reaching almost 6000% of their initial public offering 1 . Yet, in the recent year, the market has shown Starbucks to be in constant decline, as their stock has dropped about $15/share, a value they have been above since 2004. Also, looking at Starbucks’ SEC filings, we can see that its comparable store sales have decreased significantly in US markets since 2004. This has prompted Team Macchiato to evaluate Starbucks’ current strategies in addition to the retail coffee market as a whole. To evaluate the problem, one of the biggest questions to consider is to what extent is the “designer coffee” market just a fad. In other words, will the allure of gourmet Starbucks coffee be maintained or will more appealing options threaten the success of Starbucks’ primary product...
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...The Future of Starbucks An Analysis by Team Macchiato: Zack Higbee Chen Yee Liaw Calvin Ting Kevin Tjho Michelle Ton 1 Executive Summary Starbucks Corporation has arguably been the most successful coffee chain in the past few decades, using their aggressive expansion strategies to push out much of its competition. Through its expansion, Starbucks has focused on creating a dense network of stores all around America, while also opening up new locations all around the world. By leading the retail coffee market, Starbucks is able to sell its coffee for a premium price and increase their profitability. Its success can be seen in the gradual rise of its stock prices from 1992 – 2007, reaching almost 6000% of their initial public offering 1 . Yet, in the recent year, the market has shown Starbucks to be in constant decline, as their stock has dropped about $15/share, a value they have been above since 2004. Also, looking at Starbucks’ SEC filings, we can see that its comparable store sales have decreased significantly in US markets since 2004. This has prompted Team Macchiato to evaluate Starbucks’ current strategies in addition to the retail coffee market as a whole. To evaluate the problem, one of the biggest questions to consider is to what extent is the “designer coffee” market just a fad. In other words, will the allure of gourmet Starbucks coffee be maintained or will more appealing options threaten the success of Starbucks’ primary product...
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...How to build a strong employer brand? In the competitive business world, companies strive to protect their most precious asset, talent. Talent shortage is a major challenge across industries where employees with suitable technical competencies and qualities are difficult to obtain and retain in the competitive employment market. In addition, as Baby Boomers who possess substantial valuable experience for the companies retire, Generation Y became increasingly vital in the company’s workforce; study has shown that 1 in 5 worker will be above 55 years of age by 2021 compared with 1 in 7 in the year 2005. Companies not only struggle to replace the positions of the retired workforce with younger candidates with similar capabilities, they also realize that the two generations have different workplace expectations and values. Candidates are looking beyond the basic wage and benefits; factors such as career prospect, reputation, international mobility and company values also play a significant role in candidate decisions. Therefore companies need to adjust their conventional hiring method to position themselves strategically in order to capture the awareness and commitment of the top candidates. In order to attract and retain young talents, companies need to differentiate themselves from their competitors with their employer brand. Unlike product brand names that can be managed with marketing to manipulate consumer perception, employer brand needs to be cultivated through time...
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...Communication Organizational communication is a process of using messages and social interactions to create, sustain, and manage meanings within a particular context (Poole, 2008). It is a method of not only sharing a message but also information. At Starbucks organizational communication is a fully developed and practiced concept. Leadership Style Leadership style found in an organization with regard to communication plays an important role. The leadership style of Starbucks helps in the determination of how effective the communication being given will be. The leadership style chosen for Starbucks can affect the environment of the business as well as how well the employees produce. Discussed below is the effect leadership style has on organizational communication for Starbucks. Autocratic: this leadership style is one where the leaders “assume positions of intellectual and behavioral superiority in groups. They make the decisions, give the orders, and generally control all activities” (Robbins & Judge, 2011). This leadership style will affect Starbucks in a broader manner. This company is one that works towards improvement and quality through innovation and improvement. The autocratic leadership style would cause communication gaps that Starbucks would need to address as well as affect the organizations ability to reach the goals it has. Democratic: democratic leaders “have more faith in the group than authoritarian leaders do and consequently try to involve members in making decisions”...
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...STARBUCKS CORPORATION: SERVING MORE THAN COFFEE Wake up and smell the coffee—Starbucks is everywhere! As the world’s No. 1 specialty coffee retailer, Starbucks serves more than 25 million customers in its stores every week. The concept of Starbucks goes far beyond being a coffeehouse or coffee brand. It represents the dream of its founder, Howard Schultz, who wanted to take the experience of an Italian—specifically, Milan— espresso bar to every corner of every city block in the world. So what is the Starbucks experience? According to the company: You get more than the finest coffee when you visit Starbucks. You get great people, first-rate music, a comfortable and upbeat meeting place, and sound advice on brewing excellent coffee at home. At home you’re part of a family. At work you’re part of a company. And somewhere in between there’s a place where you can sit back and be yourself. That’s what a Starbucks store is to many of its customers—a kind of “third place” where they can escape, reflect, read, chat, or listen. But there is more; Starbucks has embraced corporate social responsibility like few other companies. A recent Starbucks Corporate Social Responsibility Annual Report described the company’s views on social responsibility: Starbucks defines corporate social responsibility as conducting our business in ways that produce social, environmental, and economic benefits to the communities in which we operate. In the end, it means being responsible...
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...America especial in America with 11,962 stores which kept increasing from 2011 (Statista , 2014). Starbucks is proving that it is a master of using model marketing, specifically in term of consumer behavior, and to establish their position in customer mind. Since the first coffee shop of Starbucks was settled down in Seattle, America in 1971 by English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. It had been 43 years which is a long time to create a brand loyalty, a brand awareness, brand image for Starbucks which becomes a national brand, “In fiscal 2013, Starbucks had more than 3 billion customer visits to our more than 19,000 stores in 62 countries” (Starbucks, 2013). The truth about Starbucks have paid a lot of money to do research on international consumer behavior are paid off with a thousand of franchise stores have been spread out the world. In business perspective, Starbucks can be called a master of Marketing, and why that term is made up for Starbucks. In this project, our group would like to figure out the best marketing strategy of Starbucks based on the consumer behavior aspect which are in store environment element, product line extension, image of company, customer service, staffs’ communication way, using customers’ ego such as environment friendly, and sponsorship for local community. Store Environment When consumer think about Starbucks, the first mage which comes to consumers’ mind is the fresh coffee smell mix with the fresh...
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