An authentic leader is described as one that knows who he is, knows what he believes in and what he values 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. These goals and interest can be for the good of the company, but will in some way profit the charmatic leader personally. This type of leader would change communication at Starbucks in that it will no longer be communicated employees that they are part of the company and essential to the company’s success. For example, employees may no longer be able to receive the kind of benefits provided at Starbucks. Part-time employees receiving benefits may be a waste of money for a charismatic leader and may take away from the image he is trying to exhibit either positive or negative. Communication at Starbucks would move from behavior and words that promote ethics and enlightened self-interest for employees, customers and suppliers to behavior and words that is all about making the leader look good through high performance expectations that may be unattainable. Ethical communication would not be as important.
A transformational leader is one that inspired employees in an organization through his words and behavior. Transformational leaders have the ability to help their employees work through problems in new ways. They also inspire employees to achieve group goals. (2008 book).This type of leader would not affect the communication at Starbucks too much, because this type of leader communicates in a way that is concerned with success of the company and its employees. Communication at Starbucks would be different under a transformational leader only when it comes to the ethical aspect of communication. The culture of ethics and values at Starbucks would not be communicated throughout the organization as it is under the authentic leadership it now has. Instead of a philosophy of "enlightened self interest", the philsophy exhibited will be only to the advantage of the company and not so much its employees, customers and suppliers.
Last, a transactional leader that is only concerned with the following procedures and processes would drastically affect the communication at Starbucks. Employees would not have a sense of meaning that they now have. It will just be communicated that they follow procedure with no special benefits or recognition. Communication would be more formal and rigid under this type of leader. The openness of the communication that is now implemented would change to less channels of communication under a transactional leader. The communication structure will become a chain network instead of an all challel communication structure.
There are different sources of power found at Starbucks. First there is legitimate power. Starbuck’s like most company’s have legitamate power. Howard Shculz has legitimate power in the organization simply because of his poistion as CEO of the organization. Since he is the CEO, the one that make the business decisions, he has a profound influence over the business practices of Starbucks. Shcilz is responsible for setting the tone for the organization through his communication to lower management. He dictates what happens in the organization and communicates his values and beliefs that the organization as a whole must follow. Another type of power that exist at Starbucks is reward power. Many employees love working at starbucks because of its reward system. The benefits and rewards available at Starbucks are not available at many other organizations. This reward system not only is a positive for current employees but is also attracts new employees. Reward power affects group and organizational communication in that it demonstrates to employees that they are valuable to the organization. Rewards for employees is a way to improve organizational communication. Employees are more comfortable communicating with management and they also have a sense of satisfaction for being rewarded not only for high performance, but for just being a part of the company.
Given Starbuck’s strong ethical spiritual culture, the goal-setting theory would be effective to motivate employees. It is effective for an organization with the kind of culture that exists at Starbucks to have clearly set goals for the employees. Starbucks already has a leader that inspires them to be excellent employees. Giving them a goal to aspire to would work very well. Expectancy theory is another motivation theory that would be effective at Starbucks. At Starbucks employees would motivated by the possibility of rewards and benefits for high performance. The fact that part-time employees can expect to receive benefits after 90 days is excellent motivation for them to stay on and not be discouraged by part-time status at the company.
Marques, J. F. (2008). Spiritual performance from an organizational perspective: The starbucks way. Corporate Governance, 8(3), 248-257. doi:10.1108/14720700810879141