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Starbucks Organizational Behaviour

Keywords: organizational behaviour starbucks, starbucks culture

Starbucks is the most significant coffee chain on the globe. Right from the start, Starbucks set out to be a different kind of company. One which not only celebrated espresso and the rich traditions, but that also helped bring a sense of interconnection. Their quest is to inspire and nurture the human being spirit - one individual, one cup, and one area at a time (Kembell, 2002).

Starbucks as a brand attempts to provide their customers with not only exotic tasting caffeine but with a distinctive atmosphere which invites people to come and relax and enjoy their caffeine experience. It really is this unique quality of service that the brand 'Starbucks' is well known throughout the world for and this is what places them aside from their myriad quantity of competitors round the world (Kembell, 2002).

Organizational composition and culture of Starbucks

Organizational framework has a number of definitions. An organizational structure can be best defined as a system of hierarchy that is produced by the management of a business in order to over see all the businesses mixed up in business of the organization (Child, 1972). An organizational framework of a company is usually depicted within an organizational graph. Organizational structure is determined predicated on many factors such as size, environment, technology etc. Relating to (Thompson, 1966), the organizational composition is the principal means by which it models certain restrictions and boundaries for efficient performance by its associates, by delimiting responsibilities and control over the available resources. The below fig 1, gives the organizational chart of Starbucks. This represents the prevailing organizational structure that is being used at Starbucks.

Organizational culture is the sum total of all beliefs, rules, techniques, work ethics that may be found among the employees of a business. Starbucks brand is its product, people and it's really in store atmosphere. It provides a top notch espresso experience that enriches the life span of young, discerning and curious adults. Participation and personal connections is key to the Starbucks experience. Starbucks strives to be traditional and are a symbol of something through excited and devoted employees. It encourages treating people with admiration and dignity. Each one of these can be grouped under the culture of Starbucks. It's the essence of Starbucks (Alvesson, 1993).

Relationship between culture and structure

In the case of Starbucks, one of the most important goal is to offer an experience that is unique and one which can continually be recognized with the brand. Therefore in order to do this, the management at Starbucks developed and fostered an organizational culture that mimics the sort of experience that they want their customers to obtain in their stores. In order to achieve this, one of the philosophies followed by the founder of Starbucks was "To treat people like family, and they will be loyal and give their all". This is the philosophy adopted within the business too (Morris, 1994). This way employee's are determined in all honesty, work hard and also to enjoy dealing with Starbucks. The organizational structure too is developed keeping the guiding key points in mind. Employees are encouraged to express their frank opinions and talk more with the management. Therefore the workers have a very high satisfaction rate and a solid culture and bond is formed on the list of employees who have been extremely devoted and proud to work because of this brand. Their satisfaction came from employed by a very obvious and successful company that attempted to act relative to the prices they shared. The organizational framework is also clear and it is implemented in a way that all areas of the business functions are overseen. Therefore by making certain the structure and culture of the business are in sync with each other, maximum productivity can be obtained from the employees which escalates the performance and also brand image and success for the business (Chow, 1991).

Suitability of the organizational structure

The organizational structure at Starbucks originated in that manner so as to ensure proper attention is given to all departments also to ensure a good and effective division of all the responsibilities and duties. Therefore all the top departments like human resources, financing etc has been given enough stake in the overall structure. In addition to this the sub departments that are a part of the structure are also vital to the business enterprise operations.

Fig 2, symbolizes a typical structure that would be accompanied by any business (Reimann, 1974). It really is evidently clear that Starbucks too follows an organizational structure that is similar to these fig. The majority of the key departments come directly under the control of the managing director or CEO. Each department has its various sub departments. One area where Starbucks can improve their organizational framework is in the international retail division. Marketing should be a part of this section to like the structure carried out for UNITED STATES retail department. This can ensure sufficient resources to international marketing too.

Key psychological description of individual action at the job in terms of:

Personality: Personality is the fact of one's identity and attitude and habit at a work place. A person using a good personality can be carefully assumed to be a good employee in conditions of his/her frame of mind and work ethic. Personality performs an important role at work primarily because it is dependant on ones personality that other employees tend to connect to the individual. A person exhibiting a friendly and available personality will have no trouble mingling with several office collogues. Furthermore, people will also feel assured of getting close to such a person. It is therefore important for individuals at management positions to exhibit a good personality. An excellent personality will also go quite a distance in distinguishing a person from the others in the office.

Perception: Perception in the context of a work environment refers to the manner when a person is regarded by others or the manner where one's words are construed by others. Notion too is important in an work place as a lot of things can be mis comprehended based on conception alone. i. e. , it's important to ensure that the work done or what we should say, is clear and easy to comprehend since, unless it can be identified by others, there is no value to your work. Perception at work place also creates our image among our co staff. Having a bad conception of oneself will result in that person earning a poor image and reputation among his/her fellow workers.

Self and Self-image: Self applied image refers to the projection of one's inner self-assurance and other qualities combined with the persons own belief of their own do it yourself. Self image varieties a very important part of ones personality. These are inter-connected and straight proportional to each other. If a person doesn't have a positive home image then see your face would also not have a good personality and vice versa. Self applied image is a blend of ones interior confidence and perception. Getting a positive do it yourself image is absolutely vital in any work environment. This is also true if a person is in a management or supervisory position because other people will look towards them for information. Having a low or negative home image will be perceived by others to be doubtful rather than confidant. Hence, people won't act in response properly or may question such a person. Developing a positive self applied image may take time, however it is important if one wants to go up through the rates.

Attitude: Attitude signifies an individual's degree of like or dislike for something. In the work environment, a persons attitude tells a lot more of these and their personality and personality. Attitude also performs a large role in a folks ability to accomplish a job. Getting a positive attitude can help one to take any process also to work frankly towards resolving the job. Having a poor attitude will discourage and de-motivate a person. In addition to this, a bad attitude will also affect others around a person. They could feel uncomfortable working with a person using a poor attitude or the concerned person may be designated and rejected among an organization. A poor attitude among managers will also lead to ineffective communication between the management and the personnel.

I was working at Starbucks as a obligation/shift manager. In my time as an employee at Starbucks, I would evaluate myself as being a person with a good attitude and a strong personality. Being truly a duty director, means that iu was responsible for assigning the various shifts and duties among the personnel. I had developed to tae a number of factors under consideration. I always maintained a open frame of mind and an agreeable personality which allowed people to come and speak to me. This helped me to have a dynamic interst in their issues and I could do my work better because of the increase communication between the personnel and myself. All this resulted in higher productivity levels among the list of personnel and higher job satisfaction for all of us. The relationship between the personnel is important as a fairly easy and communicative atmosphere helped maintain an optimistic relationship.

Choose two different market leaders you been employed by for and separate between their varieties of authority. Explain how effective each style was. (P7).

Discuss three different work situations when a different design of leadership may very well be most reliable. (P4).

I was working as a duty/shift manager at an area Starbucks retail look for a period of 2 years where I reported to two different supervisors (HR professionals). I experienced different varieties of authority under both of them. The styles can be categorized as Laissez-Faire command and Participative command style.

Under a Laissez faire style, the supervisor rarely used to be concerned about us subordinates. He used to leave us to do all the task and not bother to supervise us. Practically no assistance of any kind was given and we'd to make our very own decisions when it came up to business functions. This style led to pearly defined jobs and also discouraged us and de-motivated us.

Whereas, the next administrator, who used a participative leadership style. This style was more effective since, the supervisor would require the employees in the decision making process. Although the ultimate decision was created by him, the employee's viewpoints and various inputs are taken into account. Under this form of control, the employee's efforts increased in comparison with their contributions under a laissez faire style.

According to Kurt Lewin, there are three different sorts of management styles (Kurt Lewin, 1999). They can be:

  • Authoritarian Command (Autocratic)
  • Participative Leadership (Democratic)
  • Delegative (Laissez-Faire) Leadership

In the situation of your authoritarian leadership, this form of leadership is most effective to those cases which have hardly any time for group decision making or discussions or when the first choice is the most experienced & most educated of the group. It is best used in situations where creative imagination is not required and where output is important than any factor. Example of a situation where such a control style is most reliable is regarding construction business.

A participative command style is most effective in virtually any office established business environment which has numerous departments and sunlight departments and one that is more service focused like a retail store. The reason why the retail business could be a scenario wherein the participative leadership style is most reliable is because such a business requires creativity. This kind of style fosters loyalty and induces employees to execute better.

A laissez faire management style would be most reliable in situations in which there are experienced personnel working in a bunch. The reason behind it is because in their kind of command style, the first choice does not give any proper inputs nor do they give any guidance. It is therefore essential that the sub ordinates know their job well and their obligations and responsibilities as well.

For the purpose of undertaking the interviews, employees from two organizations were considered- Starbucks and Markings and Spencer.

Organizational theory or Management theory can be an amalgam of all culture, social composition, physical composition and technology that has been used by an organization to carry out its business (Hatch, 1997).

While interviewing the management and the personnel at Starbucks, it became clear that the organizational theory that they implemented is towards delivering their customers with a distinctive experience. Almost all their structure and culture were tuned towards attaining this goal. The organizational composition followed an open and participative command style and management style. That is reflected on the way the employees work and their attitude is more wide open and communicative which is then passed on to their connection towards their customers. Even their organizational culture is tuned to provide the best service always. Therefore the management theory becoming used by Starbucks seems to be quite good and does not show any relative weakness aside from the fact that they are trying to develop too quickly. Due to rapid extension, the organizational framework and culture are not being designed properly which results lower service quality compared to their best.

In the truth of Markings and Spencer's, the research from the interviews of the management and the staff implies that the organizational theory that is used here's more authoritative and profit focused. The organizational framework seems to be concentrated entirely on the marketing aspects and the earnings generation from other products. The work culture too seems to be fairly rigid. Employees are not given absolute freedom to take part in the decision making process. More often than not, the decisions are considered by the upper management itself.

There are certain organizations that are recognized for their organizational theories that they use. Yahoo is globally renowned for its management theory. At Yahoo, organizational culture is given primary importance. Google cultivates culture principles of 'coolness, playful and self-starter. In addition to this, Yahoo allows its personnel to pursue their own projects for some time. This allows a sense of freedom regarding the way the employees will set up their work and achieve their goals. Furthermore Google's organizational structure is also unique for the reason that they don't have any traditional hierarchy established composition (Schnell, 2007). All people are absolutely free to approach any one and ask for help. Guidance and advises receive freely around the task environment. The employees are free to write or address even the CEO immediately. Thus this type of management theory allows employees to be creative and become more productive and can also lead to higher job satisfaction and increased staff commitment (Sherman, 2005).

Therefore there are a lot of things that Starbucks and Marks and Spencer's can study from Goggles management theory.

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