Professional Documents
Culture Documents
Report
On
“HR Management Practices at STARBUCKS”
(In partial fulfillment of Human Resources Management Subject under MBA program of GLS University)
Submitted by:
Faculty of Management
GLS University
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Table of Contents
PREFACE...................................................................................................................................................................... 3
ACKNOWLEDGEMENT.............................................................................................................................................4
Chapter 4: Conclusion.................................................................................................................................................28
Chapter 5 annexure.....................................................................................................................................................29
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PREFACE
The project has been submitted to fulfil the requirement of MBA program. Gathering knowledge from
practical aspect is greatly different from theoretical knowledge. This conceptual project explains the
contribution of human resource function particularly job analysis, recruitment, selection, training and
development, performance appraisal and composition in an organization. This project explains the
mechanism of the HR functions which are integrated with the HR strategy to achieve organizational goals.
Entirely this project highlights the basic understanding of each HR concept discussed in detail with the
example of Starbucks.
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ACKNOWLEDGEMENT
We would like to express our sincere gratitude to the GLS University – Faculty of Management for giving us
the opportunity to widen our thought process and horizons in the field of management. Our deepest thanks to
Prof. Anjali Panicker for her guidance, clearing the doubts and making the fundamentals clear. At last, we all
are in this field together sharing ideas and developing things for a better future. So, a big thanks to all our
colleagues and our friends for accompanying us.
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Chapter 1: Introduction to STARBUCKS
As an American multinational chain of coffee house Starbucks works since 1971. Its main
headquarter located in the Seattle, Washington US. Starbucks serves hot and cold drinks, micro
ground instant coffee which also known as VIA, whole-bean coffee, cafe latte, fresh juices,
Frappuccino beverages, espresso and coffee, Teagan, Boulogne pastries, different kind of snacks
according to the location of store due to having this much variety in menu Starbucks is expanding his
business speedily last year in September 2020, has had 32660 stores in 83 countries including 16023
license store and 16637 company operated store. United States, Canada and Latin America has 18354
stores among all.
The founders of the Starbucks were Jerry Baldwin, zed Sigel and Gordon bower at Seattle's pike
place market later on in 1980 they sold this company to Hayward Schultz who went on a business
trip to Milan Italy he decided to make coffee bean store which serves espresso based drinks
Schultz was chief executive from 1986 to 2000 it led to submissive expansion of franchisees, first in
Seattle the across the west coast of US. Despite an initial economic downturn with its expansion into
Midwestern United states and British Columbia, in early 1990s through a series of highly publicized
coffee war the company experienced revitalized prosperity with its entry in to California
Schultz was succeeded by Orin Smith who was running company from 5 years, Starbucks was
increasing sale by 5 million, and positioning as a large player in the market. Jinn Donald serve as a
chief executive from 2005 to 2008 Schultz returned as a CEO in 2007 to 2008 cause of financial
crisis and gave succeeding decade by expanding its offerings, reorienting itself around corporate
social responsibility and growing its market shares. Kevin Johnson took over from 2017 and continue
to serve as chief executive
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Many stores sell pre-packaged food items, pastries, hot and cold sandwiches, and drinkware
including mugs and tumblers. There are also several select "Starbucks Evenings" locations which
offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are
also sold at grocery stores in the United States and other countries. In 2010, the company began
its Starbucks Reserve program for single-origin coffees and high-end coffee shops. It planned to open
1,000 Reserve coffee shops by the end of 2017. [6] Starbucks operates six roasters with tasting rooms
and 43 coffee bars as part of the program. The latest roaster location opened
on Chicago's Magnificent Mile in November 2019, and is the world's largest Starbucks. The
company has received significant and sustained criticism about its business practices, corporate
affairs, and role in society. Conversely, its franchise has commanded substantial brand loyalty,
market share, and company value.
As on 19th march 2021, Starbucks is the largest coffeehouse company in the world, with 32,938 retail
locations as of the first quarter of 2021, followed distantly by coffee shop chains such as Dunkin
Donuts with about 10,000 restaurants, Tim Hortons with 4,300 outlets, and Costa Coffee with nearly
1,700 stores worldwide.
Number of stores available in the world. They have 349000 employees as on September 2020.
Mission
Our mission is to inspire and nurture the human spirit of one person, one cup and one neighbourhood
at a time. Growing greener stores that are more renewable energy and greener cups that are 100%
recyclable cup.
Vision
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Chapter 2: Introduction to Coffee Industry
Coffee is the most popular and consumed brewed drink prepared from roasted coffee beans, the seed
from certain coffee species. Further, the coffee market is segmented by product type, distribution
channel, and geography. On the basis of product type, the coffee market is segmented under whole-
bean, ground coffee, instant coffee, and coffee pods capsules. Based on the distribution channel, the
market is segmented under the channels of on-trade and off-trade. The off-trade channels will include
supermarkets/ hypermarkets, convenience stores, specialist retailers, and other channels. By
geography, the market covers the major countries in North America, Europe, Asia-Pacific, South
America, and Middle East & Africa.
The global coffee market was valued at USD 102.02 billion in 2020, and it is projected to reach a
CAGR of 4.28% during the forecast period of 2021-2026.
The main coffee importing and consuming markets in Europe, North America, and Asia.
The coffee shop industry in the U.S. includes 20,000 stores with combined annual revenue of about
$11 billion. Major companies include Starbucks, Dunkin’ Donuts, Caribou, Coffee Bean and Tea
Leaf, and Dietrich (Gloria Jean’s). The industry is highly concentrated at the top and fragmented at
the bottom: the top 50 companies have over 70 percent of industry sales.
Coffee industry has 20,000 stores with annual revenue of - $11 billion
Highly concentrated at top and fragmented at bottom Starbuck’s 75% of sales Major companies:
Starbucks, Caribou Coffee, Coffee Bean and Tea Leaf, Dietrich (Gloria Jean’s), Pet’s coffee.
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Competitors can also be found in other industries like convenience stores, gas stations, quick service,
fast food restaurants, gourmet food shops, donut shops, filter / specialty coffee machines for home
use. e.g. Dunkin’ Donuts and McDonalds.
Today more than 7 million tons of green coffee equivalents are consumed yearly: 26% in the
producing countries and 74% in the importing non-producing ones. In the 2000s average
consumption per head has reached 4.6 kilograms in the Western markets and a mere 0.7 kilograms in
coffee producing countries.1 The European Union (15) with 42% of world consumption is the
biggest block, then follow the United States and Japan with respectively 24 and 9%.
Competition through special offers (new tastes), outstanding service/ environment (internet, music,
comfortable seating areas, short waiting queues), loyalty programs (bonus cards ensuring frequency
of visits) and for premium locations
Starbucks, the world’s number one coffee retailer, has over 13,000 coffee shops in more than 35
countries. The outlets offer coffee drinks, food items, beans, coffee accessories and teas. Starbucks
owns about 17,500 of its shops, which are located in about 10 countries (mostly in the U.S.) while
licensees and franchisees operate the remaining outlets. Starbucks does 78% of its store volume in
beverages, with 12% in food, and 5% in whole beans. The company does not compete on price but
rather on the complete experience customers get while visiting the coffee shop. Embracing its value
beyond extraordinary coffee, Starbucks tries to make a business out of human connections, and
celebration of diversity and culture.
Also, the coffee market has a developing purchaser base of individuals hoping to change from
caffeinated Soluble or Instant Coffee to espresso refreshments with an end goal to get over the
unhealthy and sugar content in conventional caffeinated drinks. All these factors are anticipated to
infuse growth in the market for Coffee during the forecast period of 2021-2026.
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Chapter 3: HR Processes/ Policies followed by the company
A job analysis, according to the definition, is "a comprehensive method used to describe the roles, duties,
responsibilities, and working conditions associated with a job, as well as the experience, talents, abilities,
and other characteristics needed to perform the job." Job analysis also gives an overview of the physical,
emotional & related human qualities required to execute the job successfully.
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Job analysis in human resource management
Job analysis is the procedure through which you determine the duties and nature of the jobs and the kinds of
people who should be hired for their goal. It provides to write job descriptions and job specifications, which
are utilized in recruitment and selection, compensation, performance appraisal, and training.
Job description:
A job description is a general statement of a jobs or position's purpose, roles, and responsibilities. A job
description is based on a thorough job analysis and usually summarizes the key details gathered from the job
analysis. It simply and concisely defines the key roles and duties of the work in order to promote the
systematic comparison of workers for assessment purposes. Job descriptions communicate what the job
entails in a simple and descriptive manner Furthermore, job descriptions assist in recruiting and maintaining
top talent by ensuring that an organization is well-organized, well-run, and fair. Job descriptions promote
responsibility also improving morale and the corporate image.
Job Specification:
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Job specifications usually provide a list of the personal qualities considered suitable for satisfactory
performance. Job specifications are often used in the selection and recruitment of employees and are
therefore not required for job evaluations. However, such personal characteristics, such as experience,
education, and aptitude, can appear in both the job description and the job definition.
Job Profiles
1) Barista
Ensure that you are adhering to food safety procedures at all times
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JOB DESCRIPTION Provides quality beverages, whole bean, and food products
consistently for all customers by adhering to all recipe and
presentation standards.
2) Store manager
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JOB DESCRIPTION Completes store operational requirements by scheduling and
assigning partners; following up on work results.
Manages stock levels and making key decisions about stock control
3) Assistant Manager
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FUNCTION AREAS Demand forecasting, analyzing data, supply chain & inventory
management,
JOB DESCRIPTION Develop, use and maintain the Demand Planning tool as the
primary forecasting system tool. (SAP)
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3.2 RECRUITMENT AND SELECTION PROCESS
Recruiting is the process of developing a pool of qualified job applicants. Starbucks recruitment
could be divided into two sections which are (i) Support Center and (ii) Retail. At our support center,
Starbucks market support center, career opportunities span a wide range of functions and
departments.
Departments include: Finance, Information Technology, Supply Chain, Marketing, PR, and Human
Resource. On the other hand, for the retailing, Store Managers and assistant Store Managers oversee
the day-to-day operations of each Starbucks location. Store management positions offer a great
career experience for professionals with previous experience in retail management, or for baristas
who desire increased responsibility.
Starbucks uses different types of internal recruitment sources. The following are
the most significant in the company.
1. Intranet:
The intranet method is whereby the management announces the vacancies on the company website
where the only the employees can access then the interested employees who are suitable for the job
apply.
2. Staff -Meetings:
Staff-meetings are held by the managers and staff and they discuss then and selected the most
suitable employee for the job internally.
3. Career Development:
Career Development is where the current staff is recommended by the supervisor hence is promoted
to a higher level in the company.
Starbucks uses different types of external recruitment sources. The following are the
most significant in the company.
1. Advertisement:
Starbucks usually put-up advertisement for job vacancies in different media including newspaper or
posters in their stores hence the interested candidates can apply for the job.
2. Internet:
People also have access to the Starbucks website in the World Wide Web whereby they can find the
job vacancies put up in the website.
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3. Word of Mouth:
The staff at Starbucks usually knows about the job vacancies at Starbucks beforehand therefore they
can inform their peers and friends about it by word of mouth.
Starbucks uses different types of social recruitment process. The following are the
most significant of the company.
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focused. Starbucks makes a valiant point to place the emphasis on the importance of who they hire,
rather than what they sell.
2. Assessment Test:
Starbucks usually conducts a personality-based assessment test for applicants to evaluate their
behavior. This is as a result of the company looking for employees with the best of character.
In the assessment test, applicants will be asked to provide answers to about 80-120 questions. The
tests come in various formats.
The assessors might ask you to describe the feeling people have in a specific situation.
Alternatively, you might be requested to rate your reaction to precise comments on the scale of one
to ten, making a statement whether you are in agreement with them or not.
Moreover, you must answer the provided questions with honesty and spontaneity. It is highly
recommended to make preparations towards the assessment to perform very well, since it’s an
opportunity to impress the employers.
3. Interview Process:
Applicants who successfully passed the personality test (screening process) will be called to be
participants in a phone interview.
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This type of interview is usually conducted with a Human Resources department member and takes
about 30 minutes to complete.
The phone interview is often conducted to serve as a screening process, and will include questions as
regard your salary expectations, availability, and former work experience.
If you succeed at the phone interview, you will be chosen and requested to come for an in-person
interview at one of the company’s head offices by the manager in charge of recruitment.
This interview is the last stage of the hiring process, and at the end of it, you will be assured of
getting a response from them.
Here are some Starbucks interview questions that might be asked:
I. Tell me a little bit about yourself and the history of your previous work.
II. How long can you work in terms of hours?
III. How can you handle a customer that’s upset?
Ensure to prepare immensely for this interview, since your employment depends on it, and don’t
spend too much time answering a question, just say the necessary things.
4. Starbucks Orientation:
Newly employed workers at Starbucks normally participate in an orientation process conducted by
the recruitment team.
It is a learning process that educates you about your role at Starbucks and the culture and history of
the company.
For baristas, the orientation process might be quite intense, since it involves a hands-on learning
process. However, the store manager will be available to facilitate the process.
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objective of meeting the present need of an employee. In development, initiative is taken by the
individual with the objective to meet the future need of an employee.
What type of training is given to what category of employees?
There are so many types of training are given in Starbucks. But some of them are most relevant to
Starbucks. Here are some of them following:
i. The Barista Basics Training Program provides the initial training for a newly hired barista on
essential skills and knowledge required to the barista role at Starbucks Coffee Company. Through the
use of simple and intuitive tools, skills are taught through one-to-one delivery and on-the-job
training. It is a highly effective learning experience for a new barista that quickly enhances
confidence and competence in delivering customer service.
ii. The Shift Supervisor Training Program focuses on the basics of people management; training new
partners, supervisory skills, floor supervision, cash controller responsibilities, ensuring the delivery
of the Starbucks Experience and more. This program includes training on a shift supervisor’s
responsibilities for running a shift and on additional responsibilities for supporting the store manager
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in running an effective store. The program uses a combined delivery method of classroom and in-
store training.
iv. The District Manager Program is a foundational training program that prepares a new district
manager to be successful in their role. This foundational training is delivered over a fifteen-week
period. It combines paper and online training modules, in-store skill practice and one-to-one delivery.
1. BARISTA
Responsibilities and essential job functions include to the following:
Acts with integrity, honesty, and knowledge that promote the culture and values of TATA
Starbucks.
Anticipates customer and store needs by constantly evaluating environment and customers for
cues.
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Maintains a calm demeanor during periods of high volume or unusual events to keep store
operating to standard and to set a positive example for the shift team.
Develops enthusiastically satisfied customers all of the time.
Welcomes and connects with every customer.
Discover customer needs and appropriately suggests product with every customer to enhance
service and meet sales goals.
Responds to customer needs and says thank you to every customer.
Demonstrates the "Just Say Yes" behavior by taking care of customer needs.
Delivers legendary customer service to all customers by acting with a “customer comes-first”
attitude.
Assists with new partner training by positively reinforcing successful performance and giving
respectful and encouraging coaching as needed.
Contributes to a positive team environment by recognizing changes in partner behaviors that
might signal potential problems or changes in partner morale and performance and
communicating the changes to the immediate supervisor/store manager.
Follows TATA Starbucks operational policies and procedures, including those for cash handling
and safety and security, to ensure the safety of all partners during each shift.
Maintains a clean and organized workspace so that partners can locate resources and product as
needed.
Maintains regular and consistent attendance and punctuality.
Provides quality beverages, whole bean, and food products consistently for all customers by
adhering to all recipe and presentation standards.
Follows health, safety and sanitation guidelines for all products. Recognizes and reinforces
individual and team accomplishments by using existing organizational methods.
Protects employees and customers by providing a safe and clean store environment.
Follows store policy and procedures for operational flow at each station.
2. STORE MANAGER
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Maintains and models a calm demeanor during periods of high volume or unusual events.
Continues to keep store operating to standard and sets a positive example for the shift team
Exhibits a willingness and desire to share coffee knowledge and stories with others
Displays a ‘customer first’ attitude by training and holding partners accountable for delivering
legendary customer service.
Solicits feedback from the customers
Supervisory Responsibilities:
Interviewing & training partners, planning, assigning and directing work.
Regular interaction/ review with the team.
Encourage team to take independent decisions.
Conduct goal setting
Developing strategic and operational plans for the work group, managing execution and
measuring results.
Review performance to achieve organizational goals.
Gather & evaluate employee’s performance.
Appraising performance
Addressing complaints and resolving problems.
Coaching, counselling, and disciplining
Ensures partners adhere to legal and operational compliance requirements
Drives coffee conversations within the team and creates a culture of coffee appreciation
Achieves financial objectives based on the annual budget; scheduling expenditures; analysing
variances; initiating corrective actions
Manage store revenue, including cash handling, deposit reconciliation and delivery of deposits to
bank
Ensures availability of merchandise and services by approving contracts; maintaining inventories
Maintains the stability and reputation of the store by complying with legal requirements
Analyses sales figures and forecasting future sales volumes to maximize profits
Manages and motivates the team to increase sales and ensure efficiency
Manages stock levels and making key decisions about stock control
Ensures standards for quality, customer service and health and safety are met
Makes timely yet thoughtful decisions even when information is incomplete; considers multiple
options/alternatives before committing to a course of action.
Maintains awareness of market trends in the retail industry, understanding forthcoming customer
initiatives and monitoring what local competitors are doing.
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Conducts regular store meetings. Accountable to improve and increase store performance for the
growth of the organization.
At Starbucks, they use something called the customer comment card as a way to measure the job
performance of their employees. Customer comment card is a survey questions answered by Starbucks
customers about their thoughts on both Starbucks employees and services, and the products. This is a
good way to measure the employees’ job performance because it is a very objective way. Generally,
customers don’t know the employees personally. So, when customers share their thoughts about the
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employees, who the employee is will not matter to their opinion about the job performance. In many
Starbucks in Jakarta, managers usually provide bonuses to employees that have scored great—more than
70 out of 100 in the customer comment card. Managers and retail employees (baristas and cashiers) are
also measuring each other’s performances simply by doing an observation of how their workmates are
doing at work.
B. PROMOTION:
Starbuck has a leadership development program that will help identify existing talent within the
company. Starbucks is always trying to promote within and will continue to offer pay raises and job
advancements for employees who are motivated and want to move up in the company.
C. RAISES:
Raises are based on the Employees performance or increased responsibilities. Starbucks will review
Employee’s performance every 6 months. Employee performance raises range from twenty-five
cents to one-dollar an hour. The job duties and responsibilities raise can vary and is at the discretion
of Store Manager. However, those raises are still guided by a pay system corporate has put in place.
Store managers are given the authority but must stay within the limits and are not to exceed the
amount.
From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee
but also connection. Starbucks call their employees partners because they are all partners in shared success.
Starbucks make sure everything they do is through the lens of humanity—from their commitment to the
highest-quality coffee in the world, to the way we engage with their customers and communities to do
business responsibly. Starbuck’s are committed to upholding a culture where diversity is valued, respected
and celebrated. Starbucks’s endeavor is to create a culture of belongingness where our partners feel being
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part of something bigger and see our mission & values coming to life through every cup, every conversation
and every day.
At the heart of their business, they seek to inspire and nurture the human spirit - understanding that each
person brings a distinct life experience to the table. One of their core values is creating a culture of
warmth and belonging and they do so by embracing diversity in all its forms be it based on people’s
thinking patterns, gender, work experiences, lifestyles, education through their policies and processes
that does not differentiate amongst any of the diverse individuals they choose to work with.
Starbucks are devoted to supporting, engaging and investing in the development of their partners. Their
people are one of our most valuable assets and they provide learning opportunities to develop skills,
further careers and help partners achieve their personal and professional goals. As a partner (employee)
who is curious, collaborative and a continuous learner, have limitless opportunities to make an impact
and thrive, all while becoming their personal best and being recognized for it. Partners have various
platform to learn and build their skills on the job, related to coffee and develop behavioral competencies
like working with the team, customer service etc. One of the major learning tools provided to the all the
partners in the organization is the Starbucks Global Academy which is an online learning platform
developed by Starbucks in partnership with Arizona State University (ASU), only for Starbucks Partners.
All partners across the organization enjoys two week offs in a week. Starbucks are the first QSR in India
to have implemented a 5 day work week for all Store partners. Tata Starbucks offers Flexible
Employment opportunities to students, working mothers, homemakers belonging to varied backgrounds.
The company also encourages the change in employment terms – converting from Part Time to Full
Time or vice versa, depending on the requirements of their partners to balance their personal and
professional commitments at different life stages. To further support women partners balance personal
and professional commitments, Starbucks have a clearly defined limits on shift timings for women.
Parental Leave
Eligible partners welcoming a new child may receive time off and pay replacement through parental
leave. Starbucks also provides Family Expansion Reimbursement of up to $10,000 per adoption,
surrogacy or Intrauterine Insemination for eligible partners.
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Paid Time Off
Both non-retail and retail partners are eligible for paid vacation days and partner and family sick time,
while salaried / non-retail partners also receive two personal days per year. Starbucks observes seven
paid holidays, during which retail hourly partners are paid 1½ times their base hourly rate of pay for any
hours worked on these holidays.
Safety
Starbucks Coffee is committed to maintaining a safe and healthy environment for all employees. It is
important for all employees, including supervisors, to follow all safety and health measures prescribed
by Starbucks Coffee Company. Safety is the top priority for the Company.
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Chapter 4: Conclusion
Starbucks core value is its employees because they are the most important asset. A culture of respect to
employees and well-developed environment have lead Starbucks to produce the best working quality for
customers and an increase in profits. From a small retail coffee shop in Seattle, Starbucks successfully
caught global attention and offers quality coffee for coffee lovers around the world. Today, it is not only one
of the fastest growing corporation, but also an outstanding business model with lower employee turnover
rate and higher profit performance. Based on Starbucks’ case, it shows that good company policy and
employee motivation is the key factor of a company success. All employees have a voice at Starbucks which
is emotionally rewarding and resulted in high motivation and personal satisfaction. In addition, good
relationship between managers and employees is key in maintaining high quality performance.
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Chapter 5 annexure
https://www.starbucks.in/
https://www.starbucks.com/
https://www.starbucks.com/responsibility/global-report/policies
https://www.linkedin.com/pulse/starbucks-hr-policy-priyam-jaiswal
https://www.ukessays.com/essays/management/hrm-policies-and-organizational-performance-at-
starbucks-management-essay.php#:~:text=Employee's%20Development%20Policy%20and
%20Starbucks,-In%20employee%20development&text=The%20employees%20are%20provided
%20refresher,making%20workshops%2C%20customer%20care%20programs.
https://www.monsterindia.com/amp/job-vacancy-assistant-manager-partner-resources-starbucks-
mumbai-india-2-3-years-27558993.html?
utm_campaign=google_jobs_apply&utm_source=google_jobs_apply&utm_medium=organic
https://www.google.com/search?q=starbucks+human+resources+jobs&oq=starbucks+
+human+resources+&aqs=chrome.3.69i57j0l2j0i457j0l6.21742j0j15&sourceid=chrome&ie=UTF-
8&ibp=htl;jobs&sa=X&ved=2ahUKEwjogdq717_wAhUGILcAHT8NAKcQkd0GMAF6BAgHEAE#f
pstate=tldetail&htivrt=jobs&htiq=starbucks+human+resources+jobs&htidocid=jRCavEvBIZ-
DOp2RAAAAAA%3D%3D&sxsrf=ALeKk00EquY7yMkqk1xRghGMVcD9gfXGJA:1620669258702
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