Starbucks Organizational Culture

Behavioral Management Theory is the understanding and response of employee needs to enforce motivation. This theory guides management in a better understanding of the human aspect. It involves management to treat employees as important resources in the workforce. The goal is to raise productivity and to do this by motivating employees. Motivating employees can involve incentives like employee bonuses, promotions, and the collection and redeeming of points for rewards. As the management takes interest in employees, it makes them feel like an important part of the puzzle, and in turn motivates employees to work harder. Like in most cases, if the employees are satisfied and working conditions are good, productivity raises automatically. A theorist by the name of Mayo Hawthorne devised an experiment that allowed a group of telephone line workers to be separated and observed in a private room. The controlled group of employees increased greatly in productivity. This brought the human relations movement that involved management spending time, showing interest, and rewarding employees to increase productivity. Employees felt management was

Adopting a qualitative approach, this report provides an evaluation and critical analysis of the service process and service environment to evaluate the specialty coffee house chain, Starbucks Singapore. The report evaluates the purpose and value of the Starbucks servicescape design, a descriptive illustration of the service environment with a detailed and clear blue-printing of the service process

Organizational structure has been set up to facilitate all goal achievements. It is a way to motivate their employees and get them to work together. It also helps its employees to follow the organizations goals, and work together as a team. In order to do this, they need to have an organized structure to be able to run the company smoothly. A main foundation of every organization is to post their mission statement and goals everywhere so that their employees can see them. An organizational culture can consist of common shared beliefs and values that are established by the organization’s leader, and then communicated and reinforce through various methods, this helps shape employee perceptions, behaviors and understanding. Overall, organizational structure and culture can effect progress of many organizations in a positive and negative way.

* Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco

People in North American countries are privileged enough to be able to express their religions in public places such as a coffee shop. Some of them are ignorant enough to think that a coffee shop not putting Christmas decorations on a cup is war on Christianity.

“We are not in the coffee business, serving people. We are in the people business, serving coffee”, Howard Schultz’s philosophy has shaped and continues shape Starbucks, the world’s number one specialty coffee retailer with over 21,000 outlets in more than 65 countries nowadays (Starbucks, 2011). Starbucks was founded in 1971 and Howard Schultz joined Starbucks in 1982. In 1987, Howard acquired Starbucks and changed the name to Starbucks Corporation.

Douglas McGregor was a management professor at the MIT Sloan School of Management. He introduced a new motivational theory in his book ‘The Human Side of Enterprise’, stating that all workers were divided into two groups: Theory X and Theory Y. Theory X workers were lazy, irrational and unreliable, and were only motivated by money and threatened by punishment. Theory Y workers were able to seek and accept responsibilities and fulfil any goals given.

When reading the book The Goal written by Eliyahu Goldratt, there were many lessons that I learned in order to have a clear and concise understanding of a positive level of productivity in a company. To have a positive level of productivity there are may components that are taken into consideration. Understanding what it actually means to be productive and how to increase the level of productivity by knowing the actual goal of the company that is trying to be reached and the components that go into the process of being productive. There are many factors that contribute to the level of productivity and being able to identify these factors is the key ingredient to having a successful level of productivity.

The context change in form that Starbucks found itself competing with smaller chains that resembled its former pre-expansion model with competitors focusing in creating symbolic-expressive value and fast food restaurants that had started to offer specialty coffee with more aggressive advertisement at a lower cost. The competitive context changed for Starbucks because it’s focus in mass distribution channels and its retail footprint strategy stated its product within a standard performance product value; this affected the value perception of the product.

McGregor (1960a) assumed workers refer to Theory X are lazy, hate to work, responsibility aversion and more concern about lower levels of human needs rather than pursuing self-achievement. McGregor (1960a) suggests that managers should supervise and control the workers in order to adjust their behaviour and neutralise heir negative attitudes toward work, even punish and push them to achieve a minimal level of performance. Punishment is necessary because of the nature of inherently lazy. Managers would find encouraging them to perform better by reward maybe only valid in a short-term as lazy workers eventually submit adequate effort as they do not pursuit self-actualisation (McGregor 1960a). in a word, managers centralise the decision making power, set rules, SOPs and procedures to guide workers what they should process and monitor the process in order to safeguard the minimal requirement of performance is achieved

The Coffee Clubs first cafe opened in 1989, since then more and more stores have been opened worldwide. The Coffee Club has two different styles of stores those being either a small cafe or a restaurant. There are many stores scattered around New Zealand from Otago to Auckland with 55 outlets being in New Zealand and 350 plus worldwide.(Franchise New Zealand Limited, 2015) As an organisation their vision is to be a global leader in retail food, coffee and franchising. This means they want to lead by example to other companies in the same industry. Their mission is to provide good food, great service and excellent coffee and a welcoming meeting place with an inspiring contemporary lifestyle to its

Organizational culture has been described as shared values and beliefs that underline a company’s identity. A strong culture that encourages employees from the top to the bottom in adaptation and change can increase organizational performance by energizing and motivating employees, shape behaviors, unify personnel in the goals / objectives and align employee’s actions with the priorities of the company (Daft, R., 2013). Creating a constructive culture should be a manager’s top priority because the right culture will propel a company into a top performer in its industry.

The human relations perspective views the workplace as an intricate social network which a manager must control though increased participation from employees and open communication. Within this perspective employees are viewed as responsible, social, and self-motivated. These views support Douglas McGregor’s theory Y. Managers who follow theory Y believe employees generally enjoy work, are often self-motivated to complete tasks efficiently and to the best of their ability, and will actively seek responsibility. They also believe that people in general are smarter than previously realized and can exercise high levels of creativity and ingenuity. (Heyel, C. (Ed.). (1982). The Encycolpedia of Management . NY: Van Nostrand Reinhold Co.) McGregor compares this to managers who follow the X theory, who believe employees avoid responsibility, have little ambition, and are inherently lazy. They feel that people must be controlled and threatened in order to work to their best ability and are primarily motivated by monetary rewards. This is the view that managers held in previous perspectives. McGregor believed that a belief in a certain theory could end up being a self – fulfilling prophecy, meaning that if a manager believes their employees will act a certain way then they will. (Kinicki, A., & Williams, B. K. (2008). Chapter 2. In Management: A practical Introduction (pp. 46-49). NYC: McGraw Hill.) Mangers in this perspective use less micromanagement and move towards

time in which it took to answer the calls and also the levels of call

These days Starbucks owns more than 18,000 stores in 62 countries and is the premier roaster and retailer of exclusive coffee in the world. Back in 1971, when the first Starbucks opened, the company already had two intentions to give to people every single day till now: share specialty coffee with friends and help to make the world a little better.