Control Mechanisms of Starbucks Essay

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Control Mechanisms of Starbucks
December 10, 2012

Control Mechanisms of Starbucks
Starbucks Coffee Company™ first opened in 1971 in Seattle’s historic pike place market neighborhood (Starbucks Coffee Company, 2012, p1). Their mission is “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (Starbucks Coffee Company, 2012, p1). Identifying four control mechanisms, comparing the effectiveness of them, the reaction to the use of these controls, and how they affect the functions of management at a company like Starbucks, it is easy to see why they are so successful.
Identify Four Types of Control Mechanisms
Four types of control mechanisms Starbucks uses are bureaucratic,
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Starbucks wants each and every employee to feel that Starbucks is the best place to work. This is done through the belief that Starbucks should listen to the opinions of their employees, and value them (Starbucks Coffee Company, 2007). Beginning in 2007, Starbucks completed a study on international store employees to determine a pay scale. The success of Starbucks is “shared through incentive and benefit programs” (Starbucks Coffee Company, 2007) for employees, based on the company’s philosophy. This is an example of how Starbucks uses financial control mechanism to motivate their employees.
Positive and Negative Reactions to Controls
Each control mechanism has its benefits and designed with a purpose to help enhance the effectiveness of management and the success of the company. With each method comes a reaction from employees either positive or negative. The control mechanism have been designed to fit a specific type of business model and as stated earlier, Starbucks has adopted each one and applied to help them become successful. One of the best functions is the bureaucratic function. This allows management to set standards, measure performance, compare performance against the standards and look for deviations, and finally taking corrective actions to fix the errors (Bateman & Snell, 2009, p576). The pro is that this Control Cycle allows management to find errors or omissions and help correct them so that employees may achieve

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