Introduction Starbucks, begun as a single store as a roaster and retailer of whole bean and ground coffee, tea and spices in 1971 in Seattle, Washington. As of 29th September 2013, Starbucks has grown to more than 19,000 stores in over 60 countries with approximately 200,000 employees worldwide and $14.9 billion in revenues in fiscal 2013 (Starbucks, 2013; Starbucks, 2014). Starbucks is dedicated to inspiring and nurturing the human spirit. Committed to serving the finest coffee, creating an exceptional customer experience, and being a great place to work. Starbucks call and treat their employees as partners and honored to be acknowledged for their efforts (Starbucks, 2012). Fortune magazine has published a list of the 100 best companies in the United States every year since 1998, Starbucks is rewarded this award ever since the first year, only except the year of 2001(Hinkin & Tracey, 2010; Starbucks, 2012). This essay will be divided into two parts. The first one part will critically analyse how the human resource management (HRM) contribute to the whole company from five different aspects: (a) the human resource model/approach, (b) the recruitment and selection process, (c) the rewards management system, (d) the performance management process and (e) the company’s employment philosophy and its impacts on staff motivation of Starbucks. The second part will give some recommendations to the board of directors under the hypothesis of Apple Inc. will merge with to ensure a successful takeover. 1 The Human Resource Management of Starbucks (a) The human resource model/approach The forms of HRM have been clarified by Storey (1989) into soft and hard ones. The Mic... ... middle of paper ... ...ve the qualities like adaptability, dependability and the ability to work in a team is seek by Starbucks. The company often stated the qualities that it looked for in employees upfront in its job postings, which in my point of view is an efficient method as it on one hand allowed prospective employees to self-select themselves to a certain extent, and on the other hand saved the firm time and money. Having selected the right kind of people, Starbucks invested in training them in the skills they would require to perform their jobs efficiently. Starbucks was one of the few retail companies to invest considerably in employee training and provide comprehensive training to all classes of employees, including part-timers. As a consequence, the cost of Starbucks’ recruitment and selection would be comparably high so finding the “right people” fast and accurate is crucial.
Starbucks is the world’s largest specialty coffee retailer, Starbucks has more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington. (Bramhall)
In addition to being best-known supplier of the finest coffee and promising only the highest quality products, Starbucks emphasizes firm values, provides guidelines to enhance employee self-esteem. This is to ensure continued customer satisfaction. Moreover, diversity has become a priority to providing an inviting environment to all consumers. Starbucks continues to abide by a strict, slow growth policy in which they set out to dominate a market before moving on to expand, thus history has shown this strategy to be successful for Starbucks, making them one the fastest growing companies nationwide.
In 2003, Starbucks was listed as one of the Fortune 500. Despite the ongoing recession, the company had managed a 31% increase in net revenues for the year. This was reasonable, considering they only spent about 1% of total sales on marketing. All of this, coupled with the fact that they were popular with customers and employees, was a sure recipe for success.
Founded in 1971 at Seattle’s Pike Place Market, Starbucks Coffee, Tea and Spices, as it was originally called, has been “brewing-up” its famous blends in over 43 countries, including the United States. Now called Starbucks Coffee Company, business isn’t just about the coffee and tea anymore. Starbucks has its own line of bottled water, handcrafted beverages, fresh food, entertainment, merchandise and a Starbucks Card. The company has received numerous awards for their outstanding business practices. Fortune Magazine has ranked them as one of “The Best 100 Companies to Work For” in 1998, 2000, 2002, and 2008 (Starbucks, 2008). The Starbucks Experience provides consumers and the general public a direct line a of business communication. From friendly baristas to press releases from CEO Howard Schultz, Starbucks keeps its “partners” informed.
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has being doing very well for last 11 years with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession. However recent research, conducted to Starbucks, have showed some concerns regarding company’s problem meeting customers’ expectations.
Human resource is the set of individuals who make up the employees in an organization. It is very important to have human resource in a company, without the help of human resource the business will not grow successfully. Every company has a human resource department, so does McDonald’s. The objective of human resource department in McDonald’s is “to satisfy the internal customers because they are the window to the external customers.” The activities that are held in the HR department are recruitment and selection, training and development, performance appraisal, employee benefits, incentives, medical cover, welfare amenities and health and safety. A restaurant’s manager need to displays managerial and leadership quality, a restaurant’s manager
Everything centers on the organizational culture within Starbucks. While being a customer service-based company and understanding that the customer satisfaction and loyalty are what will make the company profitable, Starbucks takes a different approach to customer service than other companies. By hiring employees that fit in the organizational culture (ICFAI, 2005) and treating their employees well (Lefevere, n.d.), Starbucks brings in and retains customers through their happy employees. The qualities that Starbucks hires for are "adaptability, dependability and the ability to work in a team" (ICFAI, 2005). The culture is supportive and laid back (Montana, 2005). Howard Shultz, Starbucks president and CEO, has the theory "that if you treat your employees well, they will treat your customers well" (Starbucks, 1997).
d. Employee selection and training are also elements of the strategy. Starbucks employed diverse people which reflected the community. Starbucks trained each employee to perform to their best capabilities.
It seems that HRM is so crucial to the organization, for what it does has nearly covered all aspects of the business – from strategic planning to the training and development, but unfortunately, its importance has not been accepted by everyone. As proposed by Morton, C, Newall, A. & Sparkes, J. (2001) there are three different views of HR function within the...
Human Resource Management is an essential part for any organization. Moreover, development of this department is the first step, the ground on which the future of the company depends. It is essential for every single business unit and especially for such international company as Coca Cola. It is people, not technology who create the company. Human Resource Management at Coca Cola Company has many advantages as well as disadvantage. It is the global company and it is impossible to create certain policies or procedures applicable in all divisions of the company, cultural and political differences need to be taken into account. Therefore, the focus of this paper will be on four tasks and duties of Human Resource Management (performance management, compensation, career development, succession planning) based on the United States procedures.
HRM comprises a set of policies designed to maximize organizational integration, Employee commitment, flexibility and quality of work. (Guest, 1987) as cited by (Armstrong, 2009) this statement entails that HRM function has policies to guide its activities, if these policies are well integrated with the strategy of the organization, it can enhance employee commitment and result in quality of work, as cited by (Armstrong, 2009) that the overall purpose of human resource management is to ensure that the organization is able to achieve success through people, however the function of HRM is affected by several other factors, this essay will look at three Internal and external environmental factors affecting HR Specialist.
In this assignment I intend to outline the development of Personnel Management (PM) and Human resource management (HRM). Briefly describing their development and the role they play in a work place today. I will then discuss the role HRM played in changing the approaches adopted by management to employment, before finally hypothesising about the future direction of HRM.
In this assignment I will be looking at the role played by the Personnel Management to Human Resource Management (HRM) for Sainsbury's and there historic developments. I will also be looking at how the existing HR function for Sainsbury's could be developed to work more effectively with the rest of the organisation.
There are several principles of human resources management which is used by big companies around the globe to increase their HRM business practice in their value chain activities of organizations. Business consultants note that modern human resource management is guided by several overriding principles. Perhaps the paramount principle is a simple recognition that human resources are the most important assets of an organization a business can’t be successful without effectively managing this resource. However, principle of human resources management could be defined by using eight HRM principles (Hendry, 2012).