The Starbucks corporation is a multinational business and is the world’s leading marketer and retailer of coffee. Averagely, the organization has more than eighty-three markets internationally (City, 2021). The Starbucks’ channel advancement markets sell tea, packaged coffee, and ready-to-use drinks to consumers outside its licensed shops. The company is also involved in the sale of products under different brands such as Ethos and Evolution Fresh. The firm geographically operates in various segments such as Canada, China, Africa, and Europe (Azriuddin et al., 2020). This report aims to give background knowledge on Starbucks enterprise, critically examine the benefits of HRM, and illustrate how the human resource department assists the company in overcoming its challenges.
The organization utilizes its human resources policies and practices as an initiative to acquire a competitive edge and move the firm’s overall success. Starbucks views its workers as an essential part of its outlook towards serving the community; its employees are vital for its development, aiding the enterprise to advance and thrive (Xu, 2020). The company embraces diversity and provides comprehensive health benefits to its workers, such as vision and medical care, stock options, retirement plans, and holidays. The firm keeps its workers and associates well informed through open communication and events like open forums to answer challenging questions and mitigate concerns.
The organization recruits skilled candidates with an aptitude for customer experience and social consciousness. In addition, Starbucks is globally known for its ethical purchasing of coffee from farmers worldwide and prominent for its community engagement through volunteer work in the regions where its stores are situated (Lee, 2021). At the firm, people are considered as the most essential resources for better and improved performance. In promoting the corporation’s competitiveness, its readiness to listen to inputs from its workers enable emergent policies to originate directly from the markets by responding to the actual mix of consumer desires.
The Existing HRM Practices of Starbucks
Starbucks has put several practices and schemes with a specific focus on helping its employees overcome business issues or challenges they face while executing their duties. Some of the initiatives include training programs to equip workers with a deep understanding of the organizational values and how to foster them amongst their end-users (Kumaresan, 2019). The laborers learn honest communication skills to optimally interact with clients to establish an enabling working condition that the corporation aims to promote. Furthermore, the workers are made aware of the firm’s history and study how to carry out coffee preparation and apply a cash register.
Moreover, the company has strengthened the existing human resource management (HRM) practices to the extent that employees have better connections with their supervisors and feel attached to the organization. The business has acquired recognition and admiration by serving as a pioneer in providing the same benefits to casual laborers as offered to permanent workers, such as alternative medical treatment plans, among other benefits (Turker, 2018). The gifts help to reduce employee turnover but increase worker retention and motivation for optimal production and sales operations performance. In general, employees who feel valued, appreciated and their opinions account at work put an extra effort into their duties, thus rapid company performance and growth. It is due to understanding this fact that Starbucks performs exceptionally compared to its rivals.
The hiring process is a pivotal policy for Starbucks to realize its goals of scouting for the right personnel to execute its business strategy and mission. Its recruitment interventions entail strategic HRM planning and using digital platforms to target its hiring audience through the Starbucks’ career website (Alwaleed, 2019). Once employed, retaining valuable employees means evaluating performance frequently, inspiring success, and tackling the necessary actions to maintain them within the company. The organization has contracted tutors and advisers, streamlining the communication channels and technological tools that allow better associations among workers (Farr, 2017). Therefore, its continued performance arguably is because of its effective administration of human resources, with all the endeavors that Starbucks undergo to develop, hire, and sustain employees.
Starbucks company is a prime example of a business that plays an integral part in creating a meaningful work-life balance. Generally, it is challenging, especially for those individuals who feel overworked and find it hard to match the demands of their occupation with the rest of their lives (Xue, 2016). To help alleviate job burnout, it is advisable for individuals, regardless of their workstation, to embrace tactics such as exercises, avoiding activities that deplete energy and time, seeking relaxation measures, and establishing downtime into an individual’s schedule (Clark, 2021). Furthermore, in 2008, following a full-day training event, the corporation closed most of its stores. The occasion aimed to coach its employees on the product expertise and production of high-quality coffee.
Despite tough times and store closures, the firm has remained a highly regarded organization to work for in the world. On the other hand, when it has experienced moments of accelerated growth, Starbucks made hasty resolutions and clustered new outlets with stocks without losing focus on coffee (Tikson, 2018). Human resource management should act as an internal adviser and be considered professional, efficient, and open-minded. It must seek the avenues to make positive reforms to rewards, compensation, and recognition schemes and offer its employees advancement and training opportunities in the manner Starbucks has done it in recent times (Nguyen, 2020). Upper management in Starbucks needs to keep their efforts in simple and transformational leadership affairs instead of falling into a more transactional tone characterized by too much emphasis on disciplinary measures, compliance, and record-keeping. Such efforts include scanning the macro and micro environments, addressing the strategic business opportunities and people concerns, then developing creative and catered human resource management (HRM) strategies.
Alwaleed, N., et al. (2019) ‘A case study on Starbucks’, Journal of the Community Development in Asia (JCDA), 2(2). Web.
Azriuddin, M., et al. (2020) ‘Becoming an international brand: A case study of Starbucks’, Journal of the Community Development in Asia (JCDA), 3(1), pp.33-43.
City, Q., 2021. STARBUCKS CORPORATION.
Clark, M.L., 2021. Viewing Starbucks Through the Four Frames.
Farr, S., 2017. Starbucks: The Early Years.
Kumaresan, Renuga., 2019. “The Effects of Macroeconomics Factors towards the Starbucks Corporation.”
Lee, C., et al. (2021) ‘Recruitment and Selection process in Starbucks.’
Nguyen, C., 2020. Sustainability marketing concept: Case Starbucks.
Tikson, S.D.S., 2018. Human Resource Policies and Work Culture: A Case of Starbucks. JBMI (Jurnal Bisnis, Manajemen, dan Informatika), 15(1), pp.1-12.
Turker, D., 2018. Social Responsibility and Human Resource Management. In Managing Social Responsibility (pp. 131-144). Springer, Cham.
Xu, D., 2020 ‘Cross-cultural Human Resource Management Research by the Case of Starbucks (China)’, Academic Journal of Humanities & Social Sciences, 3(9).
Xue, C.T.S., 2016 ‘An Examination on Human Resource Management in Aligning to The Organizational Strategy’, International Journal of Management, 11(5).