Starbucks Corporation Organizational Behaviour

7/25/2019 Starbucks Corporation Organizational Behaviour

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Organizational Behavior Paper

Starbucks Corporation

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Organizational Behavior Paper

Starbucks Corporation

Starbucks Corporation, named after the first mate in Herman Melvilles Moby Dick, averages

more than $3 million customer visits each !eek, has stores in over 3" countries and has loyal

patrons !ho typically return # times a month %Michelli, &''"() *ot bad for a coffee shop

founded in #+"# in Seattles ike lace Market) Starbucks stores can be found in urban and

suburban areas, across this country as !ell as in -urope, .atin /merica, the Middle -ast and the

acific 0im) /ccording to Michelli %&''"(, Starbucks is more than 1ust a story 2 its culture,

brand and product ecellence continues to !in glo!ing accolades) 4n &''", Starbucks !as

recogni5ed by 6ortune as one of /mericas best companies to !ork for %6ortune, &''()

4n the early #++'s, Starbucks senior eecutive team, lead by Ho!ard Schult5, and its partners

%Starbucks7speak for employees( contributed to defining and shaping the companys core values,

principles and culture !hen they penned the companys mission statement laying out the guiding

principles behind the company) Starbucks %&''( mission is to establish itself as the premier

purveyor of the finest coffee in the !orld !hile maintaining uncompromising principles as they

gro!) 4n order to achieve this, Starbucks includes si guiding principles that helps measure the

appropriateness of their decisions) 8he si principles are %#( provide a great !ork environment

and treat each other !ith respect and dignity9 %&( embrace diversity as an essential component in

the !ay they do business9 %3( apply the highest standards of ecellence to the purchasing,

roasting and fresh delivery of coffee9 %:( develop enthusiastically satisfied customers all of the

time9 %( contribute positively to the communities and environment and %;( recogni5e that

profitability is essential to future success)

8he first principle in Starbucks mission statement is to provide a great !ork environment and

treat each other !ith respect and dignity) Starbucks leadership is committed to their mission

statement and guiding principles because they have established internal checks to make sure that

leaders are living the companys espoused values %Michelli, &''"() 8!o of Starbucks internal

checks are the Mission 0evie! Committee and artner


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!hich are conducted every #7&: months seek anonymous feedback from partners around the

globe)

Ho!ard Schult5s vision had little to do !ith making great coffee and everything to do !ith

partners receiving and offering eceptional customer service) Starbucks main competitive

strategy is its communication !ith its partners and customers) 6or eample, partners are given

etensive training in product kno!ledge, guiding principles of success, personal empo!erment,

and the importance of creating !arm customer eperiences) Starbucks consistently spends more

on training than it does on advertising and it pays huge dividends for Starbucks in retaining

employees, maintaining connections !ith current customers, and bringing ne! customers into its

stores %Michelli, &''"()

=im /lling, president of Starbucks >)S) ?usiness, notes the accomplishments of Starbucks

leadership are not the result of magic, @its 1ust !ho !e are)A Maybe there is something magical

about founding a business that aspires to enrich human spirit %Michelli, &''"() Starbucks claims

to live every day by their mission statement and principles) /ccording to Michelli %&''"(, the

Starbucks -perience has t!o very distinct levels in the companyB its uniue corporate culture

and its passing do!n of these values to its partners) 4n its corporate culture, Starbucks

management creates a culture for employees in !hich empo!erment, entrepreneurship, uality

and service define the values of the firm) 4n passing do!n these values, the partners create a

uniue and personal eperience for customers) 8he Starbucks -perience reflects doctrines that

are simple, results7oriented and very po!erful %Michelli, &''"() 8hey are Make 4t our E!n,

-verything Matters, Surprise and Delight, -mbrace 0esistance and .eave our Mark) Michelli

%&''"( stated, @4n the spirit of Starbucks, these principles encourage us to listen and respond !ith

a greater a!areness of opportunity) 8hey remind us that !e are responsible for unleashing

passion that ripples out!ard from behind the scenes, through the customer eperience, and

ultimately into our communitiesA %p) #"() 8hrough Starbucks mission, guiding principles and

their doctrines the organi5ation avoids misalignment bet!een its values)

8he responsibility for keeping an organi5ation informed falls suarely on the shoulders of the

companys leadership) Communication from leaders to partners, partners to customers and

partners to suppliers must be modeled, nurtured and practiced consistently) Starbucks is so

committed to this principle that they have open lines of communication bet!een the main


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headuarters and its partners) /ccording to Fallo %&''(, @Schult5s vision !as not to build a

coffee shop, but instead to build a company that treats people !ith dignity and respectA) During

an intervie! last year !ith C*?Cs Donnie Deutsch, Ho!ard Schult5 said, @!ere in the people

business) 4ts all human connection)A Fallo goes on to say, @!hat !e can learn from Schult5 is

that respect for employees !ill translate into better customer service, !hich ultimately leads to a

stronger bottom lineA)

Starbucks has successfully used conflict7resolution to gro! business and increase profitability)

Ene conflict involved the lack of paid leave for adoptive parents vs) natural parents %Michelli,

&''"() 4n a matter of a fe! !eeks, the issue made it to the Mission 0evie! Committee and

Starbucks leaders provided this parent7group !ith a t!o !eek benefit) 8his is one eample of

ho! Starbucks leaders resolved one issue that conflicted !ith one of their guiding principles)

Organizational Behaviors Perspectives

What makes the Starbucks become world wide company?

Corporate Cuture

Ene of the main things that dra! people to Starbucks is its culture) =ohn Moore %&'';( from

8ribal Gno!ledge stated,A eople do not go to Starbucks to ingest the daily caffeine dosage9 they

go in search of !armth provided not only by the beverage but also by the human store ambient as

!ellA) / strong culture demonstrates high agreement among members about !hat the

organi5ation stands for)

Managers strive to!ard making the coffee consumption unforgettable9 Starbucks covers the

personali5ation of services and products to each client) 4n Starbucks people are treated as

individuals, !ith specific !ishes and needs that must be uickly fulfilled by the company) 8his

philosophy demands that every single store adapts its marketing strategies and product mi to

please its o!n local customers)

Starbucks philosophy or culture shapes the Starbucks employee into a cohesive group of people

!ho all !ork together to accomplish Starbucks goal, !hich is to serve there customers as

individuals !ith specific needs)


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Starbucks has the clear mission statement to establish itself as the premier purveyor of the finest

coffee in the !orld !hile maintaining uncompromising principles as they gro!) 8hey also have

value and great principal to achive that mission) 8he si principles are %#( provide a great !ork

environment and treat each other !ith respect and dignity9 %&( embrace diversity as an essential

component in the !ay they do business9 %3( apply the highest standards of ecellence to the

purchasing, roasting and fresh delivery of coffee9 %:( develop enthusiastically satisfied customers

all of the time9 %( contribute positively to the communities and environment and %;( recogni5e

that profitability is essential to future success) 8hey have succeed to maintain their corporate

value, credo and principals so that their employees can !alk together !ith diversity to share the

same vision and mission)

Ene of the things Starbucks has tried to do over a long period is truly build a company that has a

conscience, that achieves a balance bet!een profitability and a level of benevolence) eople

sometimes miss that because the headline is so often the ubiuity of the company, the gro!th of

the company) Starbucks has also done many things that no other company has done before in the

!ay they have tried to build the business)

Communication and otivation

Communication is important for any successful organi5ation) 8here are four functions of

communication they are the follo!ingB control, motivation, emotional epression, and

information) Communication acts to control employees behavior in certain !ays)

Communication also helps motivation by giving employees detailed instructions on !hat needs

to be done) Communication is a release for employees to voice their frustrations through

emotional epression, and lastly giving employees information so, they can have the kno!ledge

to make decisions on their o!n9 this is important in communication !ithin an organi5ation)

Starbucks uses a form of do!n!ard communication to implement instruction and training of

their employees) 8he follo!ing is the detailed training program that baristas at Starbucks go

through before starting their ne! 1obsB

#) -very partner or barista hired for a retail 1ob in a Starbucks store received at least &: hours

training in the first t!o to four !eeks) 8he training included classes on coffee history, drink


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preparation, coffee kno!ledge %four hours(, customer service %four hours(, and retail skills, plus a

four7hour !orkshop called ?re!ing the erfect Cup)

&) ?aristas !ere trained in using the cash register, !eighing beans, opening the bag properly,

capturing the beans !ithout spilling them on the floor, holding the bag in a !ay that keeps air

from being trapped inside and affiing labels on the package eactly one7half inch over the

Starbucks logo)

3) ?everage preparation occupied even more training time, involving such activities as grinding

the beans, steaming milk, learning to pull perfect %#7 to &37second( shots of espresso,

memori5ing the recipes of all the different drinks, practicing making the different drinks and

learning ho! to make drinks to customer specifications)

:) 8here are sessions on ho! to clean the milk !and on the espresso machine, eplain the 4talian

drink names to customers, sell a $" home espresso machine, make eye contact !ith customers,

and take personal responsibility for the cleanliness of the coffee bins)

) -veryone is drilled in the Star Skills, three guidelines for on7the71ob interpersonal relationsB

%#( maintain and enhance self7esteem, %&( listen and ackno!ledge, and %3( ask for help)

;) 8hese rules are to be memori5edB milk must be steamed to at least #' degrees 6ahrenheit but

never more than #"' degrees9 every espresso shot not pulled !ithin &3 seconds must be tossed9

customers !ho order one pound of beans must be given eactly thatInot )++ pounds or #)#

pounds9 never let coffee sit in the pot more than &' minutes9 al!ays compensate dissatisfied

customers !ith a Starbucks coupon that entitles them to a free drink) %8hompson J Famble,

#++&(

8he training regime for Starbucks is detailed but is part of the many !ays that Starbucks has a

good communication !ith its employees) ?y having such detailed training it @Communicates

motivation by clarifying to the employees on !hat is to be done, ho! !ell they are doing, and

!hat can be done to improve performance if its Sub7parA %/ia College of >niversity of

hoeni, &''() Starbucks as an organi5ation has specific rules that the employees must follo!,

for instance never let the coffee pot stand for more than &' minutes, or do not heat the milk over

#"' degrees) ?y Starbucks doing this they are using a form of control to maintain employee


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behavior !ithin the business) 8his control is used to keep a peaceful !orking environment, so

instead of employees running to call the o!ner !ith their problems they go to the designated

manager, and follo! the chain of command)

Marty ?lalock %&''( stated that @Communication is the key to build trust, promote

understanding and empo!er and motivate othersA) Starbucks has used their good communication

skills to help empo!er, and motivate their employees) 8he employees have the po!er to give

free drink cards, so to make their customer happy9 the employee does not have to call for a

manager approval9 this does much for an organi5ation) Starbucks specific guidelines have

communicated !ith !hat Starbucks the organi5ation needs and !ants from their employees) 8he

message that Starbucks puts out there, has motivates their employees to fill the need that

Starbucks communicated in their training)

Conclusions

Starbucks has used Ergani5ational behavior concepts to their benefit to get to the peak of their

success) Starbucks as an organi5ation made :)# billion dollars in &''"9 Starbucks has reached

these numbers by opening stores all over the !orld, and by making smart decisions like

partnering !ith epsi, Graft foods, and Dryers ice cream) 8he internal !orking of the Starbucks

Ergani5ation have made lasting impressions on the customer by perfecting there organi5ational

culture) Starbucks has done this by striving to make their coffee consumption unforgettable for

their customers, and by setting standards that are uniue for their business) Starbucks is also so

successful because they are al!ays striving to re7ignite there emotional attachment !ith their

customers) .astly, Starbucks has used organi5ational behavior concepts like communication to

build trust, to promote understanding, to empo!er, and to motivate its employees to ensure an

unforgettable eperience)


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!e"erences

/ia College of >niversity of hoeni) %&''() erception and 4ndividual Decision Making)

0etrieved /ugust #", &'#', from /ia College, Keek 6ive reading, aLcess, MF8&:I

Ergani5ational ?ehavior)

?lalock, M) %&''() Khy Food Communication is Food ?usiness) 0etrieved /ugust #", &'#'

from httpB!!!)bus)!isc)eduupdate!inter'businessNcommunication)asp

6ortune) %&''() #'' ?est companies to !ork for) 0etrieved /ugust #", &'#', from

httpBmoney)cnn)commaga5inesfortunebestcompanies&''"snapshots#;)html)

Fallo, C) %&'', =anuary#'() ?ringing assion to Starbucks, 8ravelocity) ?usiness Keek Enline,

0etrieved /ugust #", &'#', from Master64.- remier database)

Hirsch, =) %&''() Ouestions and /ns!ers9 Khat Starbucks C-E has bre!ing9 Ho!ard Shult5

talks about ho! the coffeehouse chain is dealing !ith the recent economic 1olt) .os /ngeles

8imes) 0etrieved on /ugust #", &'#', from roOuest database)

Michelli, =)/) %&''"() 8he Starbucks -perience) *e! orkB McFra!7Hill)

Moore, =) %&'';() 8ribal Gno!ledgeB ?usiness Kisdom ?re!ed from the Frounds of Starbucks

Corporate Culture) Corporate 0eputation 0evie!, #'%3(, %) 0etrieved /ugust #", &'#',

from roOuest database)

Starbucks Corporation) %&'#'() 0etrieved /ugust #", &'#', from

httpB!!!)fundinguniverse)comcompany7historiesStarbucks7Corporation7Company7

History)html

Starbucks >nveils *e! Strategic 4nitiatives 8o 8ransform and 4nnovate the Customer

-perience) %&'#'() ?usiness dateline data base, retrieved /ugust #", &'#', from roOuest

database)

8hompson, /) J Famble, =) %#++&() Starbucks Corporation) 0etrieved /ugust #", &'#', from

httpB!!!)mhhe)combusinessmanagementthompson##ecasestarbucks7&)html

Starbucks Corporation Organizational Behaviour

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