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Starbucks corporation case study in motivation and teamwork answers

Norman Dias 2013 Starbucks Corporation: Case Study in Motivation HRM Human Recourse Management Starbucks Corporation, the most famous chain of retail coffee shops in the world, mainly benefits from roasting and selling special coffee beans, and other various kinds of coffee or tea drinks. It owns about 4000 branches in the whole world.

This case is about Motivation and team work. A question and answer session has done at the end to solve out the Starbucks case.

Article adapted from http: Case Study in Motivation Page 3 Because of rapid globalization over recent years, competition around the world becomes more intense, especially for the service industry with similar products. The most critical point for business to achieve success is not only the quality of products they supply, but the atmosphere of cooperating and the amount yielded from teamwork in retail sales.

Therefore, it turns out to be essential for companies to motivate, reward and train their employees to be the best quality personnel. Starbucks Corporation, the most famous chain of retail coffee shops starbucks corporation case study in motivation and teamwork answers the world, mainly benefits from roasting and selling special coffee beans, and other various kinds of coffee or tea drinks. Moreover, it has been one of the most rapid growing corporations in America as well.

The reasons why Starbucks is popular worldwide are not only the quality of coffee, but also its customer service and cosy environment. Starbucks establishes comfortable surroundings for people to socialize with a fair price, which attracts all ages of consumers to come into the stores. Besides, it is also noted for its employee satisfaction. Compared with them, the turnover rate of Starbucks is much lower than other industries on average.

Teamwork case study with answers

As a result, Starbucks is one of the optimal business models for strategies of employee motivation, customer satisfaction and cooperation of teamwork. The history of Starbucks: A sales representative, Howard Schultz, decided to be a part of Starbucks, as director of marketing and retail sales, after he realized the atmosphere and environment of the company. After the next two years, due to the successful strategy of Schultz, the original three owners of Starbucks decided to sell their corporation to Schultz.

He sought to pursue his dream to make everyone taste his coffee, so he focused on the rate of expanding. At that time, he though that the most efficient way to grow the amount of branches was to set up new stores in other places.

In I987, Starbucks had the first overseas store in Japan. In 2007, it was ranked as the 16th best. In the same year, Starbucks was also voted as one of the top ten UK workplaces by the Financial Times.

Motivation is a vital factor for business in the production process. Labourers are not machines, and Page 4 can not always do the same task with equal passion. The chief executive officer of Starbucks corporation, Howard Schultz, considers that the reason for success in Starbucks is not coffee but employees. He firmly believes that the spirit of Starbucks is employees and feels honoured about the value of Starbucks employees.

Starbucks offers an interactive structure that makes personnel throw themselves into their job. In order to narrow the gap between managers and employees, they also cowork with the basic level staff in the front line.

Due to this, they can maintain a good management system and create a much closer and more familiar atmosphere than other places.

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Not only do employees enjoy their job but customers are also affected by their enthusiasm. Starbucks has a wellorganized communication channel for employees. It places great importance on labour.

The partners have the right to figure out what is the best policy for them, and the directors show a respect for each suggestion. Starbucks even wants every employee to join in making and developing plans, then work together in achieving their goals. All employees, including informal personnel, are offered a great deal of welfare policies, for instance, commodities discounts for employees, medical insurance including health, vision and dental and vacations.

Moreover, the partners who work over 20 hours a week are entitled to benefits. Starbucks also thinks that debt financing is not the best choice, thus it chooses to allocate stock dividends to all employees with a free script issue. By this policy, the employees can get benefits from the dividends of the company. To Starbucks, the employees are the most important asset. Starbucks establishes a well developed system to keep good relationships between managers and employees.

Furthermore, they cowork in the first line to eliminate the distance between different statuses. Thirdly, the numbers of employees are usually from three to six. Such a small size helps staff get to know each other easily and deeply. Suggestions and complaints made by employees are treated of equal importance.

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In the same way, they have a right to participate in the process of revising company policies. In that case, each staff member thinks that they also play an important role in company operating, and they jointly work out the direction of Starbucks. All this gives employees respect and a sense of participation.

Starbucks contributes part of its profits to public service. As a consequence staff have an idea that what they do for Starbucks is for society as well. With regard to goals, Starbucks set a challenging and specific goal, and it allows all partners to decide the direction. Why is the size of team an important factor? What are the benefits to Starbucks of having small teams of staff in each branch? Explain three issues that need to be addressed in the planning process. Reviewing is an ongoing process.

Explain three things Starbucks can do continually to ensure goals are being accomplished. Briefly explain, in your own words, the three principles that Starbucks implement in motivating their employees. List four of these aspects. F ormal team is those groups which are given legitimacy by the organization. For example, at Page 6 the Starbucks Company, the formal group is the formal organizational structure of the company which involves the flat structure involving the board of directors, managers, and the staff.

This group consists of a manager and his subordinates, and both of them share a common specialty. On the other hand, Informal teams have no structure whatsoever and they do not focus on specialty. It is said that when people come together and start interacting with each other for a long time, they form informal team. Informal groups are said to affect the organizational structure.

The informal team is established in this company Starbucks to ensure that communication has been effective. Instead of using the various stages in order to reach those above, then these groups can be used to help solve those problems. For example, Starbucks uses the informal groups to address the matters which arise in this company.

It is through this group that the information is communicated to the rest of the workers. Thus formal and informal teams differ from each other in the following respects: The reasons and circumstances of origin of both formal and informal teams are quite different. The formal teams are created deliberately and consciously by the framers of the company.

On the other hand, informal teams arc created because of the operation of socio-psychological forces at the workplace, that is, people while working together develops certain liking and disliking for others for the type of interactions not provided officially. Since formal teams are deliberate creation, they are created for achieving the legitimate objectives of the company.

The informal teams are created by company members for their social and psychological satisfaction. Formal teams may be quite large in size. Sometimes formal teams are constituted to give representation to various interest groups in the company, and their size has to be kept large. However, the informal teams tend to be small in size so as to maintain the group cohesiveness which is essential for the starbucks corporation case study in motivation and teamwork answers teams to be attractive for the members concerned.

The members of formal team derive authority through the formal source that is through the process of delegation and reallocation. Thus authority flows from the higher lo lower levels. In the informal team, all members are equal; however, some may command more authority by virtue of their personal qualities.

Case in motivation and teamwork of Starbuck Essay

Thus, authority is commanded. People give authority to those persons who are likely to meet members' needs maximum. This is the way of emergence of informal leaders in the informal groups. Such people have maximum positive interactions in the groups.

The behavior of members in the formal team is governed by formal rules and regulations.

Starbucks Corporation: Case Study in Motivation and Teamwork

The rules are normally directed towards rationality and efficiency. In the informal team, the behavior of the members is governed by norms, belief, and values of the groups. The kind of behavior that is expected of a member is specified by these factors.

Communication is prescribed in the formal team. It is normally through chain of command to which people refer as formal channel of communication. All communications in the formal groups are expected to pass through that channel.

In these informal groups, the communications pass through informal channels. Any ideas and objections made by employees are treated of equal significance. So, the size of a team is clearly an important factor, because a large team is hard to manage and sometimes it could be biased to some individuals than others.

Also it is difficult to know well and deeply every members of a large team. Whereas, smaller teams experience better work-life quality and work outcomes. Smaller team also may experience less conflict, stronger communication, and more cohesion.

The benefits to Starbucks enjoying of having small teams of staff in each branch are: