P5-14: Describe Howard Schultz’s leadership style.

Would his approach be appropriate in other

types of organizations ? Why or why not ? (Duyen)
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Hello everyone, I’m from team 8. I will talk about the Starbucks case. 
First of all, I will show you Howard Schultz’s leadership style.
Mr. Schultz's leadership style is a blend of democratic and transformational leadership because based on
the PM textbook, one general conclusion that surfaces from leadership research is that effective leaders
do not use a single style. However, they adjust their style to the situation.
In this situation, Schultz applied Leader-Member Exchange (LMX) Theory, Transformational Leadership
(TL), visionary leadership (VL) into Starbucks
Now, I will begin with the Leader-Member Exchange .
Based on PoM,  a recent LMX study found that leaders who establish a supportive relationship with key
subordinates, which leads to increases in employee performance. 
 Starbucks demonstrates the concern it has for the relationship with its partners through an attitude
survey that gives partners an opportunity to voice their opinions about their experiences.
Analyzing Starbucks workplace environment, it starts at the beginning of the HRM Process, they
ensure to retain competent and high performing employees.
Giữ nguyên slide
The next one, I will talk about Transformational Leadership
Based on PoM,  Transformational Leadership - stimulates and transforms followers to achieve
extraordinary outcomes.
 PoM, Starbucks offers to managers at all organizational levels additional training courses and
provides feedback to help managers improve their People skills. Because Schultz knows that
Starbucks success is heavily dependent on customers having a positive experience in its store, so
that is why the partners are the most important asset as any other organization 
Now, let’s move on to Visionary Leadership.
 I wanna say that the Visionary leadership is the most important. The visionary leadership can
look into the future which helps to build a competitive advantage that lasts for a long time. 
 His vision was for Starbucks to be a “third place” between home and work and that Americans
would pay $3-5 for a cup of coffee. Schultz used his charismatic personality and values to
develop a transformational work environment at Starbucks that built a coffee empire. 
 
Right now, I will analyse this question. I would like to discuss 2 sides of that problem. 
Firstly, Schultz's approach might not be effective or appropriate in other types of Organizations. It
depends on what kinds of organizations and environment. For example, SB has matrix organizational
structure, it is often used when the firm has to be highly responsive to a rapidly changing external
environment. 
 With organizations, in case they don't have purpose owning visionary leadership, making big
decisions is so risky
 Or they don't have a strategy that could motivate their employees -> the company might not be
successful.

Next slide: The belief that a certain style will be effective in other organizations is a belief that is not
always right, because leadership may not always be important. According to PM (2015), research has
shown that in some situations, any behaviors a leader exhibits are irrelevant. 
For instance, follower characteristics such as experience, training, professional orientation or need for
independence can neutralise the effect of leadership. These characteristics can replace the employee's
need for a leader's support or ability to create structure and reduce task ambiguity. Similarly, jobs that are
inherently unambiguous and routine, or that are intrinsically satisfying, may place fewer demands on the
leader. Finally, such organisational characteristics as explicit formalised goals, rigid rules and procedures,
or cohesive work groups can substitute for formal leadership.

On the other hand,  I will show you why Schultz's approach would be effective and appropriate in other
types of organizations. 
According to Indeed Editorial Team, the benefits that transformational and democratic leadership style
brings to Starbucks is to have the power to boost company morale and retention, many businesses want to
apply into their organizations.
 If other types of organizations have different fields and the same structure with Starbucks, they
can completely use Schultz's leadership styles. Google is a good example for this situation.
Google has a matrix structure. According to Gendi in 2018, Google leaders - Pichai and Page still
maintain this type of leadership excellently by empowering their employees, trusting and
supporting them in new projects,  helping their employees with career development, and making
the teams’ roles clear in the organisation.
 If other types of organizations have the differences in both fields and structure with Starbucks,
they can still use Schultz's leadership styles effectively. For instance, Apple has a hierarchical
organizational structure. Apple Inc's managers have always applied leadership style by
encouraging employees to think beyond imagination. This has enabled the organization to make
groundbreaking developments in their product and service attributes that beats the competition in
the industry.