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Problems Starbucks is facing
Issues of Starbucks
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P 5-4 What individual behavior issues might arise in managing these types of people? What work team issues might arise?
According to the case, the ideal Starbucks employee is adaptable, self-motivated, passionate, and a creative team player. Those are all things that Starbucks values in their employees, but issues could still arise even if they find the right employee. As it was stated in the case, Starbucks went through a tough time financially. Not only does this impact the company profits, but it can have a direct effect on employee motivation as well. The employee that was passionate during good times, may have little motivation during bad times. As a manager, this could present a challenge because that attitude could carry over and start
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An employee could basically say it is their way or no way. This could create tension within the team, and Starbucks could lose the unique culture they value greatly. One way for the manager to promote a better culture despite these individuals unwillingness would be to force collaboration. We discussed collaboration in chapter one, and it has proven to be very effective in employee work situations. Collaboration is key for both companies and individual stores to be successful. A manager must help employees understand that collaboration is vital, and communicate that clearly to the employees. Another way a manager could provide a solution to employees unwilling to adapt to one another is having proper organizational structure. Furthermore, like we discussed in chapter 10, a key to success is understanding where employees will succeed, and communicating and achieving goals …show more content…
If problems do occur, the structure may need a slight change in order to prevent those problems from occurring again in the future. Design thinking and strong decision- making skills can help mitigate any behavioral problems that employees might display. For example, after a problem has been thoroughly analyzed, Starbucks may make the decision to redesign their structure to a more decentralized concept. This would give store managers more control over store policies, as well as having more say about what is, and what is not acceptable behavior for a Starbucks employee. Having a more decentralized structure would give managers the authority to strictly enforce their policies and potentially use tactics of negative reinforcement to correct any behavioral
Each organization big or small has its own values, ways of doing things and assumption that it operates in. The principles and ethics that exist in each of these companies are the baseline through which the company operates its affairs. This is what can be called as that organization’s culture. The culture in existence has an impact on the productivity, effectiveness and efficiency (Keyton, 2011). The basis of setting the most appropriate culture of a company is not only to move or increase the profitability but also to make the stakeholders happy and satisfied. One aspect of that is the employee or the human resource the firm who put their expertise in the firm and add a bit of creativity and innovativeness to move the products. Chick-Fil-A operates in a competitive industry thus it requires all the stakeholders.
Under corporate governance, the Board of Directors has majority power. After shareholders elect the Board, said Board selects the CEO who is responsible for managing the business. The key problem with Chipotle’s central and formal governance is that their strategy does not encourage innovation or employee moral. Instead, the Board of Directors decides what they feel Chipotle’s franchisees should implement, and tells managers to relay their decisions to in-store employees. Therefore, corporate representatives strive to improve in-store quality through strict supervision of each franchisee. They make decisions regarding all processes from the preparation of the product, customer service, and marketing strategies, which are enforced at each location. This system is slow and decreases efficiency. Since store employees are kept out of the immediate circle, it is difficult for them to have confidence in Chipotle’s operations, resulting in low employee empowerment. Two solutions to consider include bridging gaps between hierarchical levels and making the company more decentralized. Chipotle can implement a few liaisons (brokers and structural holes) to make sure that all professional networks within corporate and store levels are communicating effectively and working as a
An inadequately motivated employee can be very costly to the organization. Where the quality and quantity of work produced by the employee is just enough not to be fired. Job satisfaction and commitment is lacking and the employee is not motivated to work. This performance can drastically affect the bottom line of the organization whether it be financial gain or otherwise. With the changing nature of work, organizations today tend to be much flatter and slimmer than they were 20 years ago (McGreevy Malcolm, 2003). To manage and adapt to the changes the organization must have committed employees to be able to not only cope but to excel and succeed.
“This one will live. This one will live,” I told myself persistently as nothing more than lifeless children were being given to me. With every death, my passion for children grew a bit greater until before I knew it, that passion grew into an obsession. After ten sorrow-filled, stillborn children, it occured to me that the passionate attitude I give to everything I care about influences my behaviors both positively and negatively. For instance, I am aware that other women view me as easy when it comes to romantic relationships. After awhile, I learned how to ignore them because they don’t know that it is my desire to love and care, not a lack of
The success of Starbucks is partly due to Smith’s strong emphasis on relationships between management and lower ranked employees (also called partners). Similar to JetBlue’s CEO David Neeleman, Smith believes that a good relationship between management and employees will translate into a good relationship between the employees and the customers. In the past, both CEOs have been known to practice a ‘hands-on’ approach by stepping onto the ‘front lines’ of the business. Every quarter, Smith spends at least a couple of days behind the counter as part of their ‘Adopt a Store’ program for the senior executives. ...
To gloss over how individual people, influence organizational behavior would lead to a shallow understanding of how organizations work and behave (Fischer, 2006). This is another thing that I learned and that is how I motivate a person will determine the behavior of the people in my organization. To do these things effectively requires good work relations, teamwork, and employees who are motivated and cooperative (Kroeger, Thuesen, & Rutledge, 2002, p. 7). People have to be able to work together and motivate each other to complete the task that is given. We have hopefully made the case to you that you cannot fully understand organizational behavior until you understand the behaviors of individuals, and that to understand individual behavior you need to understand the role that personality traits play in individual behavior (Fischer, 2006). On a personal level I learned that I can grow in regards to in my listen skills (Pearson Education, 2015). As an ENFP, I am as to do well in executive roles. At their best they bring refreshing alternative style to top management and decision making (Kroeger, Thuesen, & Rutledge, 2002, p. 364). In particular, I have learned that the test will better help me be better employee or manger because I know what I need to work on to make myself better in leadership and
Starbucks recognizes its employees for much of its success. This is due mostly to maintenance of a great and proven work environment for all employees. The company does not have a formal organizational chart; sot employees are permitted by management to make decisions without a management referral. Moreover, management trust and stands behind the decision of the employees and it is this that allows for employees to thinks for themselves as a part of the business, so as to make them feel as a true asset and not as just another employee.
Business was good, but it was not without its problems. There was the political upheaval in the Middle East, followed by further tension after then CEO Howard Schultz commented on growing anti-Semitism in the region. Their integrity came under fire when certain Non-Governmental Organizations (NGO's) accused them of purchasing coffee beans under questionable social and economic conditions. These situations, together with difficult economic times globally, meant that Starbucks was likely going to take a hit somewhere. Eventually, they shut down their Israeli operations altogether.
It has its CEO at the top, then the board of directors, upper management, regional management, store managers, shift supervisors, clerk supervisors and finally the baristas themselves. The company overall is pretty tall but that is common for a large organization. I talked to my friends who work there and they said Starbucks has taught them they really only need to report to one boss, the customer. I think the chain of command is necessary for a huge company like Starbucks, but the typical employee would see the company as flat, having one manager and the customer being the ultimate entity that calls the shots. My friends work at the Starbucks in Hy-Vee so it is small compared to an actually Starbucks store, so I took this with a grain of salt. They do feel like they have a wide span of control in their every-day operations because it is usually just them two working together without anyone micromanaging them which gives them a lot of freedom. I think for a typical Starbucks they might not feel this way but overall, the vertical structures seem to be the right
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.
There are factors that can influence the tactical planning at Starbucks that can be to their benefit, or to their detriment. Globalizing Starbucks has made drastic changes in their human resource demands, financial requirements, and their marketing strategies. Pricing at Starbucks has been affected by the economy due to a raise in the price of green coffee beans used for espresso drinks, an...
Also, this paper will encompass a scenario when it would not make sense for Starbucks to diversify or expand into a foreign market and how the company will create a business environment conducive to ethical behavior will be assessed.
Starbucks intertwines and successfully uses three main organizational behavior concepts to increase the strength of the organization: organizational culture, organizational structure and motivation. The implementation of these concepts has definitely benefited the company, creating a monopoly in the United States as a coffee retailer and service company.
Individual psychology was discovered by Alfred Adler who named his theory as such to emphasize the holistic perspective.
One of the main problems that Starbucks is facing at the present time is the ability to maintain national competitive advantage (Monash South Africa, 2014). Due to their local demand conditions, Starbucks tries to satisfy all customers by trying “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks Corporation, 2014). Local demand conditons consist of a company trying satisfy needs of their closest customers and expanding their competitive advantage by upgrading their strategic management policies (Monash South Africa, 2014).