Delivery in day(s): 5
Diploma in Business
Unit Number and Title
Unit 21 Strategic Management of Human Resources
Starbucks is an American coffee company that has formed a chain of coffee houses all over the globe. The company was founded in Seattle, Washington in 1971 by Gordon Bowker, Jerry Baldwin and Zev Siegl. Currently is operating in 23,768 locations worldwide. Starbucks is a profit oriented company. It is famous for its hot and cold beverages along with other bakery products. This Strategic management of human resources assignment is focuses on the analysis of the internal and the external environment for the organization and the human resources management and policies of the company. The recruitment process is also explained here along with the barriers to implementation of any strategy in the company (Starbucks, 2016).
For analysis of the internal and external environment for the organization, three models are required to be analyzed. For internal environment, Porter’s five forces model and SWOT analysis model is used. For the external environment, PESTEL model is analyzed. Porter’s five forces model evaluates the competitive intensity and position of a business organization in a market. There are five competitive forces that determine what are the strengths and weaknesses of any company. The five forces are:
SWOT Analysis is a market analysis strategy that determines the future growth aspects in reference to the existing measures taken by the company. The acronym stands for:
PESTLE strategy analysis tool which is very helpful in realizing the impact of external factors on the growth and the success of the company. It is an extended version of Pest model. The acronym stands for:
Human Resources Management (HRM) can be described as the process of recruiting and hiring the best employees for the company and providing them with the facilities, training, handsome salary and with all the benefits they require to be a successful employee within the company. Another term, Strategic Human Resource Management has one additional feature to the human resource management that is it provides a goal or an objective to the employees that make their working efficient. (Boxall and Purcell, 2011)
There are a large number of concepts and models of human resource management that include a variety of human resource policies and procedures. For example balance score card model is used to measure the overall performance of an employee and accordingly a pay scale is decided. Another one is the recruitment model which involves the complete procedure of hiring the employees in an organization. The company demands full proof efficiency in work but in return it is the responsibility of the company to take care of the working environment inside the company. Some examples are explained below:
Balance Scorecard model is a performance management tool that is used extensively in various organizations. In Starbucks it is used for 360 degree assessment of an employee. The 360 degree assessment means the employee is analyzed on the basis of his/her relation with the seniors and the colleagues, with the customers etc. The main focus is on the organizational objective of the company. The assessment of an employee begins since the first day of the job. The criteria for the assessment depend on various aspects of the employee. For instance he/she can be analyzed on the basis of the relationship that he/she maintains with the company as well as the clients, the overall performance and the employee has certain expectations from the organization as well like a good pay scale, job satisfaction etc.
First Generation – The first generation design of a balanced scorecard consists of four perspective approaches that are
Second Generation– In this improved version, the criterion for analysis is based on the set of ‘strategic objectives’ plotted on a ‘strategy map’ (Geereddy, 2012). In this better design of the balanced scorecard, the managers choose a few strategic objectives in case of each of the four perspectives and after that describes the chain of cause and effect for these objectives and then draws a link between the dots and prepares the ‘strategic linkage model’. This modified version of the balanced scorecard provides more justified analysis and this is convenient to work with for the managers.
Third Generation – In late 1990s an improved version of second generation balanced score card evolved. There was a drawback in second generation in which plotting the casual links amongst a large number of strategic dots was an absolute abstract activity. In the second generation it was not allowed to make a change which was not a real time practice.
The hiring model explains the steps involved in the process of recruitment at Starbucks. The local managers act as the main recruiters in a particular area. Initially the interested applicants have to submit their CV with all their details and then the potential candidates are called for an interview process (Starbucks, 2014).The local managers are given the responsibility of recruitment because they best know the requirements of the local people and during the interview they would be the best to analyze the candidate’s characteristics and will be able to relate them to the nature of the customers of the local customer demographics. Simultaneously it is the responsibility of those managers to take care of the working environment, the safety of the employee that is to look after that the employee is being treated well and not facing any problems such as harassment issues etc.
Starbucks is a very large scale organization and is a well known company all over the world. It is famous for its unique nature and the quality of products. A large number of employees are contributing their efforts towards the growth and success of Starbucks. The organization supports diversity and inclusion that is a great advantage for its future growth. Additionally, the company provides all the possible perks and benefits to the employees. The major attraction for any candidate to become an employee in Starbucks is the Starbucks College Achievement Plan according to which all the eligible partners that are the people who are working 20 hours or more in a week; from US can complete the bachelor’s degree with full tuition reimbursement for every year of the degree in college Arizona State University’s top rated degree programs that are offered online (Starbucks, 2016). Moreover the eligible partners are offered with a wide range of benefits, perks and assistance. The working culture as well as the customer and employee support provided by the company is remarkably nice but implementing innovative ideas for the betterment of the company and making changes accordingly is always a good option. The new approaches that can be adopted by Starbucks to attract more and more employees to work for the organization can be:
If the company is able to supplement these factors then this will be an ideal growth for the company but implementing is not an easy task to do. There a lot of hurdles in the pathway of implementing these facilities and perks for the employees. Some of the barriers to implementation of these human resource policies are mentioned below:
Starbucks is a well known brand in today’s business market. The company produces hot and cold beverages along with some bakery products. The company is very efficient in its services and the products provided by the company are of a very reliable quality. Over the years, company has faced a lot of ups and downs but the performance of the company has always been consistent. The balanced scorecard model contributes in the proper analysis and helps in the overall growth of the company. The hiring process of the company ensures that the best candidates are employed in order to handle the customer needs in a proper way and make them satisfied. The company takes full responsibility of the employees and provides them with variety of perks and benefits on the basis of their performance in the organization. The focus of the company is to create a healthy work environment for the employees as well as to provide them full assistance regarding their families. The company also rewards employees for their performance in the company. Starbucks has proved itself to be a good choice for a candidate with high aspirations and managerial skills.(Michelli, 2006)
Starbucks is functioning at its best in the current scenario but a bunch of recommendations can still be put on. An employee can be provided with increment in his salary if the performance is appreciable. Moreover funding in travel assistance can be provided that is cabs can be provided to the employees that can help them to go from home to work and then back. Special discounts can be given to the employees because they are a part of Starbucks. Regarding the gun policy, it can be removed so as to increase the number of customers. The unique and new products can be introduced so as to attract more number of customers. Moreover some events can be organized on special occasions that will attract the people from various age groups and diverse backgrounds (Starbucks, 2016). Various competitions can also be organized.
July, 2014 "Starbucks Company Profile" (PDF) (PDF). Starbucks Coffee Company.
Starbucks, 2016 (online) available at http://www.starbucks.com/careers/working-at-starbucks last accessed on 6/11/2016
Starbucks,2016 ‘College Achievement Plan’ (Online) available at http://www.starbucks.com/responsibility/community/college-plan last accessed on 6/11/2016
SWOT analysis (online) available at http://pestleanalysis.com/swot-analysis-of-starbucks/ last accessed on 2/11/2016.
PESTLE analysis (online) available at http://pestleanalysis.com/pestle-analysis-of-starbucks/ last accessed on 2/11/2016.
Geereddy, N. (2012). Strategic Analysis of Starbucks Corporation. P. 87-99
"STARBUCKS CORP 2013 Q1 Quarterly Report Form (10-Q)" (XBRL). United States Securities and Exchange Commission. January 28, 2014 P.5-8
Starbucks, 2016 (online) available at http://www.starbucks.com/responsibility/community/diversity-and-inclusion last accessed on 7/11/2016
Jianfei, X., 2014. Analysis of Starbucks Employees Operating Philosophy. International Journal of Business and Social Science, 5(6).
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
2016 ‘Benefits’ (Online) available at http://www.aol.com/article/2016/03/02/company-of-the-week-5-killer-perks-of-working-at-starbucks/21321716/ last accessed on 7/11/2016
Michelli, J.A., 2006. Starbucks experience. Tata McGraw-Hill Education.
Bey, N., Hauschild, M.Z. and McAloone, T.C., 2013. Drivers and barriers for implementation of environmental strategies in manufacturing companies. CIRP Annals-Manufacturing Technology, 62(1), pp.43-46.