BTEC HND IN BUSINESS (FINANCE

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UNIT TITLE
ASSIGNMENT TITLE
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NAME OF ASSESSOR
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Nguyễn Việt Phong
F05-173
Organisations and Behaviour
Starbucks
2 of 2 (individual report)
Mr. John Andre
9th Jar 2013

I, __________________________ hereby confirm that this assignment is my own work and not
copied or plagiarized from any source. I have referenced the sources from which information is
obtained by me for this assignment.

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OB Assignment 2 Oct 2012

Date:

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Unit Outcomes
Outcome

Evidence for the
criteria

Feedback

Assessor’s decision
First
attempt

Understand
ways of using
motivational
theories in
organisations

discuss the impact
that different
leadership styles may
have on motivation in
organisations in
periods of change

3.1

compare the
application of different
motivational theories
within the workplace

3.2

evaluate the
usefulness of a
motivation theory for
managers

3.3

explain the nature of
groups and group
behaviour within
organisations

4.1

discuss factors that
may promote or
inhibit the
development of
effective teamwork in
organisations

4.2

evaluate the impact of
technology on team
functioning within a
given organisation

4.3

Internal
Verification

Rework

LO3

Understand
mechanisms
for
developing
effective
teamwork in
organisations
LO4

Merit grades awarded

M1

M2

M3

Distinction grades awarded

D1

D2

D3

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Evidence for the
criteria

Outcome

Feedback

Internal
Verification

Assessor’s decision
First
attempt

Rework

Assignment
( ) Well-structured; Reference is done properly / should be done (if any)
Overall, you‟ve

Areas for improvement:

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OB Assignment 2 Oct 2012

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Organization and Behaviour Report

Prepared for: Mr. John Andre
Prepared by: Nguyễn Việt Phong
ID: F05-173
Number of words: 3029

Course: Organisations and Behaviour
Banking Academy, Hanoi
BTEC HND in Business
Submit date: 9th Jar, 2013
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Contents
Introduction ................................................................................................................................ 6
3.1 Discuss the impact that different leadership styles may have on motivation in
organisations in periods of change ............................................................................................. 7
3.1.1 Periods of change in case of Starbuck ........................................................................... 7
3.1.2 Leadership style of Howard Schultz .............................................................................. 7
3.1.3 Howard Schultz’s leadership style impacted the motivation of workers ...................... 8
3.2. Compare the application of different motivation theories within the workplace ............... 8
Maslow's theory ...................................................................................................................... 8
Herzberg's two-factor theory .................................................................................................. 9
4.1.1 Nature of groups .......................................................................................................... 10
4.1.2 Group behavior ............................................................................................................ 11
4.2. Discuss factors that may promote or inhibit the development of effective teamwork in
organizations ............................................................................................................................ 11
4.3. Evaluate the impact of technology on team functioning within a given organization...... 12
4.3.1 The impact of Technologies on team functioning ....................................................... 13
Conclusion ............................................................................................................................... 14
References ................................................................................................................................ 15

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Introduction
With the purpose of learning about Organization and Behavior, I have
conducted some researches in this assignment in order to show my understanding
about the module. This report is to write a report to show impact that different
leadership styles may have on motivation in organizations in periods of change in
Starbuck. Also it gives an overview about the usefulness of a motivation theory for
managers.
Furthermore, this report also identifies and assesses the ability of leaders and
mangers in two companies. The scope of this report includes:

Discuss the impact that different leadership styles may have on motivation in
organizations in periods of change.

Compare the application of different motivational theories within the
workplace.

Evaluate the usefulness of a motivation theory for managers.

Explain the nature of groups and group behavior within organizations.

Discuss factors that may promote or inhibit the development of effective
teamwork in organization.

Evaluate the impact of technology on team functioning within a given
organization.
To achieve the main goals of mentioned above, this report has gathered

information from many sources like the internet, books, as well as through the
newspapers and magazines

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3.1 Discuss the impact that different leadership styles may have on motivation in
organisations in periods of change
3.1.1 Periods of change in case of Starbuck
Starbucks Corporation, one of the famous chains of retail coffee in the world,
mainly benefits from the roasting and selling special coffee beans and other drinks
coffee or tea drinks today. According to Starbuck, it was started by three friends are
Jerry Baldwin, Zev Siegl, and Gordon Bowker, who knew each other in the University
of Seattle in 1971. Since from activities with only one store in Seattle, Washington,
they had work quite effectively and experiencing many different period of changes.
One of the most important periods of change of Starbuck is when the original three
owners of Starbucks decided to sell their corporation to Howard Schultz in 1987,
their previous director of marketing and retail. And from that, Schultz has been the
owned the Starbucks brand and keeps the CEO position of the company. By his
leadership style, Schultz has made Starbucks brand is becoming increasingly
popular with 20,366 stores in 61 countries over the world.

3.1.2 Leadership style of Howard Schultz
Howard Schultz has been known as a CEO has leadership styles is
“Democratic” and “Coaching”. Howard expressed the democratic by made a wellorganized communication channel for employees in Starbuck. For example, Howard
allowed managers plan the working hours per workers and arrange the schedule of
time off, according to their wants to meet their requirements. There are interviews
weekly to see what employees‟ need is. A special survey called „Partner View
Survey‟ is taken off approximate every two years. The managers can receive
feedbacks through the event to which part should be improved or what issue should
be paid more attention to. Moreover, the “partners” have the right to figure out what
is the best policy for them, and the directors show a respect for each suggestion.
Howard even wants every employee to join in making and developing plans, then
achieving their goals all together. In addition, he is focused on developing employees
for company and has positive impact on overall culture of Starbuck also shown the
Coaching in his style. Example, Schultz created many training programs for both
new and old employees of the company such as Well-roundedness, Precise
standards and Hands-on learning with very strict standards (gaebler.com,
2001). One of his positive impact on the overall culture of Starbucks is making
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provisions about the managers in Starbucks treat each workpeople equally and all of
the staffs are called „partners‟, even the supervisors of each branch are called it as
well. In order to narrow the gap between managers and employees, they also cowork with the basic level staffs in the front line (freeonlineresearchpapers.com,
2006).

3.1.3 Howard Schultz’s leadership style impacted the motivation of workers
With those leadership styles, Howard Schultz made for employees in the
Starbucks a strong motivation to complete their work. Starbuck‟s employees can feel
comfortable with works because they can choose times to do their work and even
have the right to propose to the leaders about the best policy for them. In addition, 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 dentil) and vacations. Moreover, the most positive effect is that
Schultz has created a work environment which is very friendly and democracy
between employees and managers in the company. Therefore, employees feel
respected and enjoy working at Starbucks. Evidence is from Fortune magazine;
Starbucks was ranked the 11th best company to work for in 2005 in the USA and
then risen up in 2006 to 29th.

3.2. Compare the application of different motivation theories within the workplace
At Starbucks, there are many theories used by leaders, but the most can be
clearly seen is the two theories of Maslow's hierarchy of needs and Herzberg's
two-factor theory.

Maslow's theory
Starbucks has met five levels of needs in Maslow's theory of motivation. In
that, the three lowest needs in turn are “Love/social needs, Safety needs and
Physiological needs”. Physiological needs are things which keep us alive such as
food, warmth, shelters, drink, etc; and safety needs are ones which give us security
and protection from threat. According to Starbucks.com, they provide to their
employees the Starbucks Total Pay package is called “Your Special Blend” to
ensure their employees can meet their physiological and safety needs. It include
Competitive pay , Insurance: medical, prescription drug, dental, vision, life, disability,
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Bonuses, Paid time off, Retirement savings plan, Equity in the form of Starbucks
stock and discounted stock purchase plan, etc. In addition, 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 dentil) and vacations. Actually, salary in Starbucks also helps its employees
to pay food, house, and drink. Love/social needs are for relationship, belonging, is
satisfied through connected programs. According to Starbucks, there are more than
50 partner clubs and networks that help their partners share interests and find
work/life balance. These include recreational athletic leagues, foreign language clubs
and parenting resources such as Thrive Wellness Program, Elite Athlete Assistance
Program, Internal recognition programs, Career sabbaticals, etc. In this way,
employees had been met their needs.

Herzberg's two-factor theory
With Herzberg‟s theory, motivating factors is need for personal growth.
They‟re

including:

Status,

advancement,

gaining

recognition,

being

given

responsibility, challenging work, achievement, and growth in the job, etc. According
to Starbucks, they tried to create jobs satisfaction and motivate an individual to
superior performance and effort by many ways. Starbucks contributes part of its
profits to public service; on the other hand, it also set a goal to improve and donate
to the society. As a consequence, the aim makes all staffs have an idea that what
they do for Starbucks is for the society as well. Management also encourages its
employees to give their ideas, opinions and suggestions to improve the
company's operations to better serve customers and make employees feel that
they are responsible in the company. They are also given opportunity to get
career advancement if they satisfy the requirements offered by Starbucks such as
working at least 12 months.

3.3 Evaluate the usefulness of a motivation theory for managers
Without motivation, individuals will become lazy and dependent.

By

motivating employees, leaders are able to inspire people to work, individually or in
groups in the ways such as to produce best results in order to exert high levels of
effort towards organizational goals or induce the people to act in a desired manner. If
individuals can be motivated, by one means or another, they will work more
efficiently or will produce a better quality of work.
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In Starbucks, Howard Schultz has used two motivation theories because not
all employees are motivated by the same thing and these theories helped him to
improve his employee‟s work performance, enhance responsibilities with their work,
attract more talent for company and ensure that his employees are doing better
quality of work and satisfied with their job. More than that, it also helps in Starbucks‟s
workers become more confident and able to contribute better ideas for company.
Therefore, motivating others is the most important of management tasks. In
other words, motivation is the key to performance improvement in workplace. For
Starbucks, the important thing is grasping and choosing the best appropriate
motivator factors to encourage extra performance from employees. It may comprise
good working environment, work relationships, job satisfaction ( by creating
challenges, interests, recognition, providing feedback, empowering, participating in
decision-making, increasing accountability, involvement, pay conditions), and nonmonetary rewards as well as incentives for employees.
Example, by using motivation theories, Starbucks has met their employee‟s
needs and received appreciation for the work environment from employees. Actually
Starbucks is in the top 100 best companies to work with No.73 (money.cnn.com,
2012) and in list of World‟s most ethical companies (ethisphere.com, 2012).

4.1 Explain the nature of groups and group behavior within organizations
4.1.1 Nature of groups
Group is defined as “several individuals, interacting and interdependent, who
have come together to achieve particular objectives”. In practice, groups are
everywhere in our society. It can be a basketball team, fellow - countrymen group,
fan groups, volunteer groups, or work groups at office, etc. When the people
interacting and working together, it helps individual and group goals can be easily
accomplished and fulfilled. For organisational environment, the work group is
establishing to become primary means in which managers can coordinate
individuals' behaviour in order to achieve organisational goals. However, working in
group is not a simple task and it is more complex when managers have a duty to
direct and coordinate interactions of groups within organisation. In other words, in an
organizational setting, groups are common entities and the study of groups as well
as group dynamics is an important area of study in organizational behavior.
In Starbucks, they are a huge group who have common interest and passion
for coffee beans and working for benefits of community are gathered to create a
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group. There are more than 50 partner clubs and networks that help our partners
share interests and find work/life balance. Those are informal group, which some
people with common interests gather to share their interests about café, sports,
music, life, etc. However, Starbucks has a lot of small shops all over the world, so
the store does not seem to have many connections. Each small shop is one formal
group. They work together, living together, towards one common goal. These
groups were created by the company to make a profit for them. Also, they have
some formal groups in their company such as: Advertising & Enterprise Sales,
Business Operations & Development, Finance, Human Resources.
4.1.2 Group behavior
In each groups, group behavior is affected by leadership and opinion of the
majority. In Starbucks, the nature of group and group behavior also affected by the
working culture and leadership styles. At Starbucks, not only managers make
decisions, but also the contribution from their employees. With his leadership style,
Schultz created for the employees a work environment of equality and fairness.
Manager in Starbucks also encourages their employees to give more ideas, opinions
and suggestions in group decisions. In a group, when all the members give their own
opinion, they will come together to choose a correct decision and implement it. This
makes the performance work groups become much more effective than the usual
group structure.

4.2. Discuss factors that may promote or inhibit the development of effective teamwork
in organizations
Similar to individual behavior, groups also behave in different way. In order to
help the Starbucks leaders manage and promote (as well as avoid the inhibition) the
development of effective team work in the organization, some of the factors should
be evaluated. According to Shanahan (2001), following are two factors that may
promote of inhibit the development of effective teamwork in Starbucks.
The first factor is “Training and experience in own job” which is an
important factor which promote the development of effective teamwork. This factor
means the training and experience that individuals have before joining teamwork. If
each team member has equal experience and ability, teamwork will be more
efficiently. In contrast with the group with poorly members, members of this group
will become a burden, they can rely on the group or putting false ideas, making
teamwork not achieve the results expected. So, in Starbucks, experience and
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training process has always been important. According to Starbucks, managers
receive at least 80 hours of training and a baristas receives 40 hours of training
before being allowed to make coffee. Each store of Starbucks is a group and has
teamwork, employees have good experience and training will give customers better
service and attract more new customers.
Second factor is “Workload and stress” which is an important factor which
inhibit the development of effective teamwork. This factor means the amount of
work that each member of the group must do .If the workload exceeds the capacity
of an individual; they will be stressful and reduce the effectiveness of teamwork.
Example, with Starbucks, they are a chain of retail stores very well-known and
popular. Therefore, there are a lot of customers to serve every day. But if there
encountered workload really large, the staff of the retailer will have to work too hard,
they will be stress. This time, the group conflict may arise, the team members can
become personalized, and one of them will rely for the group or leave the group. This
seriously affects teamwork and group performance. So, in a group, the distribution of
workload and how to makes employees to avoid stress is really important.

4.3. Evaluate the impact of technology on team functioning within a given organization.
Today, technology is an indispensable, and it has a lot of impact on the
activities of groups and organizations. Technology consists of many different types,
but today, technology has the most impact to the team functions in an organization is
Information and Communication Technologies (ICT). ICT have many modes of
information exchange and communication. In order to enhance effective work teams,
improve decision-making process, develop networks connection, adapt with
complexity of changes, and reduce costs of running business as well as travel,
Starbucks should adopt and implement information and communication technologies
in their business. Understanding how ICTs is used and what is the impact of ICTs on
team functioning that can assist the Starbucks leaders and their work teams in
choosing appropriate ICTs and formulating future plans to apply ICTs in workplace.
Example:
 Face-to-face meetings/ conversation: using Yahoo, Skype…
 Electronic email: using Gmail, Microsoft Outlook, Hot mail…
 Social media: using Facebook, YouTube, and LinkedIn…

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4.3.1 The impact of Technologies on team functioning
Because of the convenience of it, the technology has many good impact for
group functioning. There is in fact that our assignment‟s group members do not
always work together at the same time and same place. Due to job conditions and
requirements of task, they have to move as well as the demand of information
exchange and communication between team members becomes more important
than ever. Geographical factors and technologies make the information exchange
and communication tasks become extremely difficult. When we conducted the
researches for the group assignment, thanks to the technology, we can
communicate with others easily using Skype, Yahoo Messenger, or Facebook.
Moreover, we can do the exercises together but not necessary to show all the time.
Once done our parts, we can send the results to the captain via e-mail, such as
Gmail, Hotmail, etc. Addition, by using technology to complete the work, it will help
members save time and costs, especially health care. Our technology also provides
a variety of information to learn about the Internet and we can take advantage of the
resources to make our work more effective.
However, using the technology still has some negative affect teamwork and
team performance. Work indirectly through the internet reduces the time direct
communication between each member, people become too dependent on the
internet and it would inhibit the effective work. Nowadays, the modern computer
technology can allow us to do many things at the same time on the computer, so it is
really difficult to control the other members of the team to focus on work instead of
playing games or surfing the webs. Moreover, modern technology has a lot of
weaknesses, such as when the power is failure; you cannot work and has the risk of
data loss or disclose important documents.

For example, Starbucks has also used technologies very effective, like in
Social Media to attract customers. According to “smallbusiness.chron.com”
Starbucks was able to use social technology to its advantage and bring customers
back to its stores by giving them an online space to submit ideas and provide
feedback on the brand and their experience with it or Starbucks launched a
nationwide mobile payment app in early 2011. The app is available for iPhone,
Android and Blackberry, and, according to a June 2011 article on "Mashable," it can
be used at 9,000 Starbucks locations (Amy Adkins, 2010).
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Conclusion
In today's development environment of globalization and dynamic, whether working
in any industries, human is always the most important force that spells the success of any
workplace in the world. However, motivation is the key to getting work done. Importance of
motivation in a workplace helps the workers fully charge up their energy, focus their
attention on work a lot better than ever and give outcomes that are more excellence. For
leaders should know the art of motivating employees working under them and inspire a team
work hard to get what they expect out of human resource in the organization.
This part of the report was succeeded to some extent in my opinion. However, the rest
of the assignment has some limitations due to lack of expertise in doing research. In the next
assignment, I will put more effort in order to complete the working methods to improve the
quality of the outcomes.

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References
1. Fortune's 100 Best Companies to Work For 2011 (2011) Starbucks ranked No. 98. [online]
Available at: http://money.cnn.com/magazines/fortune/bestcompanies/2011/snapshots/98.html
[Accessed: 9 Jan 2013].
2. Fortune's 100 Best Companies to Work For 2011 (2012) Starbucks ranked No. 73. [online]
Available at: http://money.cnn.com/magazines/fortune/best-companies/2012/snapshots/73.html
[Accessed: 9 Jan 2013].
3. Gaebler.com (2001) Starbucks Training Program - Training Workers. [online] Available at:
http://www.gaebler.com/Starbucks-Training-Program.htm [Accessed: 9 Jan 2013].
4. Goodman, P. (2012) 'Something Is Wrong': Starbucks CEO Says Calls For National Job Creation
Effort. [online] Available at: http://www.huffingtonpost.com/2012/06/29/starbucks-ceo-issuesopen_n_1632674.html [Accessed: 9 Jan 2013].
5. Home.workforce.com (1996) Workforce Management : Login. [online] Available at:
https://home.workforce.com/clickshare/authenticateUserSubscription.do?CSProduct=workforce&
CSAuthReq=1:373487066173396:AID:AA96BB090A7A67F9C6258A001E3C109B&AID=2003
1003/NEWS02/310039973&title=Starbucks%20is%20Pleasing%20Employees%20and%20Pourin
g%20Profits&CSTargetURL=http://www.workforce.com/article/20031003/NEWS02/310039973/
starbucks-is-pleasing-employees-and-pouring-profits [Accessed: 9 Jan 2013].
6. Mail Online (2012) Not exactly the best advert: CEO of Starbucks says 'best cup of coffee known
to mankind' is made at home with a simple French press. [online] Available at:
http://www.dailymail.co.uk/news/article-2130468/CEO-Starbucks-says-best-cup-coffee-knownmankind-home-simple-French-press.html [Accessed: 9 Jan 2013].
7. Small Business - Chron.com (2010) Starbucks & Its Use of Technology. [online] Available at:
http://smallbusiness.chron.com/starbucks-its-use-technology-28272.html [Accessed: 9 Jan 2013].
8. Starbucks Coffee Company (2011) Working at Starbucks. [online] Available at:
http://www.starbucks.com/career-center/working-at-starbucks [Accessed: 9 Jan 2013].

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