UNIT 16

HUMAN RESOURCE MANAGEMENT IN BUSINESS

ASSIGNMENT-2

(Human Resource Planning in Business)

Student name: MUHAMMAD UMAR

Student ID: 20191164
INTRODUCTION
In this task I am going to discuss about the importance of employee inspiration and why an
employee must have to take a commitment to the business they are working for. I will also
discuss about the different types of methods of motivation which are used by companies for
their employees.

Task # 1(P3)
Starbucks is one of the most leading coffee beverage
companies all over the world. The company was founded by
Jerry Baldwin, Zev Siegl and Gordon Bowker in 1971.
Starbucks is an international company present in 76 countries.
Starbucks is a private company with revenue of US$22.387
billion. It has a total asset of 14.366 billion US$. In order to
run the business smoothly the company owes 238,000
employees inside the organization over the world. The available products in Starbucks are
coffee beverages, tea, smoothies, sandwiches and other backed products.

WHAT IS MOTIVATION?
The word motivation has come from the word motive which actually means wants, desires or
need. It is the process of simulating people towards something for achieving goals. In work
place simulating the people’s behaviour can be
 Desire for money
 Success
 Team work

When I think about the motivation strategies for the employee Starbucks is the first to come
in my mind because it is my most favourite coffee beverage company and I am one of their
loyal customer. So it is so interesting for me to know about their motivation strategies they
use for their employees to keep them motivated.
Why is employee motivation important?
If the organization has a motivated work force the business will surely perform well and have
greater output. The productivity form the labour will be higher which will result higher
profits.
If we talk about coffee retailers their employees have to deal their customers face to face so if
they are well motivated they will attend their customers with full attention and happily.
Starbucks take their employee as their partners because they are the part of the business
which makes their employees motivated in a way.
(Below are the main merits of the motivated employees)

HEALT AND LIFEINSURANCE: Starbucks provides health and life insurance for its every
employee whether it’s a full-time or part-time employee. Which is a main reason for the
employees to stay motivated and get their work done carefully

EXTRINSIC REWARDS: Starbucks provides extrinsic awards which are called bonuses.
Bonuses are usually given when an employee fulfils the client’s needs. These are play an
important to keep the employees motivated and work harder and fulfil the client’s targets
which can result in higher outputs and greater profits.

LOW ABSENTEEISM: If the employees are well motivated they will not take excuse for
minor diseases and come to work rather than refusing to work. Coming to work regularly can
result in greater profits or income.

LOWER STAFF TURNOVER: If employees are motivated they will work happily and proudly.
Well motivated staff is likely to leave the job and if they leave recruiting new staff and
training them can be very costly.

HIGHER PRODUCTION: Motivated staff work more carefully are treat their job well and
work hard with full attention and proudly which will be then a reason for higher productions.

MORE INNOVATION: Developing new products and new systems will help them to be
competitive. For a successful business well motivated are likely than under-rated workers.

PLEASANT WORKING ENVIONMENT: A good working environment if friendly. Staff feel

more comfortable working in a clean environment and can stay motivated which will help to
deal customers comfortably which can create good relation and can be a reason for increased
sales and customers would not feel any difficulty visiting again if they are treated well.

OVERTIME: This is a higher amount of salary for those who work extra more than their duty
time. This amount is according per hour.

RECOGNITION & PRAISE: It is important to appreciate and compliment when an employee

performs well and achieves client’s goals as it can make the employees feel special and
happy which can make them more effectively.
PROMOTION: It is a dream for many workers to improve their skills in their workplace they
want gain experience and improve their skills and work harder for their organization. Ability
to promote people will inspire them and they will work harder and try their best to improve
their organization.

Employees can also be rewarded with

Company facilities
Company vehicles
Pension contribution
Health and other insurances

MOTIVATIONAL THEORIES
Organizations use theories of motivation to understand what do employees need or want
which encourage them to work harder. The 5 most famous motivation theories are listed
below:

TAYLOR’S MOTIVATION THEORY

In this theory employees are motivated through cash rewards according to their
performance. This theory also follows “piece cost” which is law that tells that
employees who work more are paid higher and significantly employees are paid less
who work less.

MAYO’S MOTIVATION THEORY

This theory indicates that employees are not motivates with their pay or a good
environment but due to their social needs keeps them motivated. Better
communication between manager and employee and working in groups keeps these
terms also keep them motivated.

MASLOW’S HIERARCHY OF NEEDS

This theory indicates the employee must get basic needs before they get motivated in
order to achieve high level productivity.

The hierarchy consists of 5 levels

HERZBERG TWO FACTOR THEORY
The two factors are “Motivators” and “Hygiene factors”. These two factors helps
managers to know how happy and satisfied the workers are.

MCREGOR’S THEORY
This theory believes that management of employee has main 2 approaches:

THEY THEORY X: In this theory employees are fired or expelled if the work is not
finished on time

THE THEORY Y: In this theory employees work is respected and are rewarded
according to the amount of work completed.
Task # 2(P4)
In this task I will tell you that how organizations obtain the cooperation of their employees.

WHAT IS A CONTRACT OF EMPLOYEMENT?

This a written agreement called an employment contract between employers and employees
which indicates that who has certain duties to perform. It is an agreement which needs to be
followed to ensure both the parties are kept happy Contract employment is an important
factor for an organization in order to obtain the cooperation of their employees. Most staff
commit to an organization by fulfilling its contractual obligations. Different types of
entitlements and rights are drawn up within contract employment. It is essential as it lays out
the security line between the employer and the employee because it outlines what both the
employer and the employee have to do, because it lays out the wage the employee would
receive and also the work the employer expects of the employee for a particular job. It also
provides the employee with control over their job and connects them with the corporate
obligations.

CONTACTUAL ENTITLEMENTS
Elements are listed below which come under the employment contract in order to clear the
rights. This is so that the employers and employee know well what is expected from one
another. These entitlements may include.

Number of working hours

This indicates the number of hour an employee has to work per week in Starbucks which
surely depends on the job title.

Sick pay
This entitlement is when an employee is sick or ill and cannot come to work but is being paid
for that leave period that pay is known as sick pay and is written in the contract.

Payment
Starbucks is not allowed to change the pay of their employees unless the employee is agreed.
If they are in need to change the pay they must discuss with the employee and inform them
about the change in the pay and if the employee agrees only then Starbucks is allowed to
change the pay. Employee in Starbucks are paid according to the contract signed between the
employee and employer

Notice period
A notice period is the duration of notice that an employee will provide to his employer related
to removal. It's also the amount of notice that an employer has to send an employee before
their contract is terminated.

Leave
This is the leave from work of the employee due to any type of reason or it is a personal
vacation. Employees are also entitled to receive wages for this when they sign the agreement.
Employment contract types

PERMANENT CONTRACT
A permanent contract is like a regular contract which does not have any expiry date or any
due date for the employee to be dismissed. The employee has to work accordingly to the
normal working hours and an employee from Starbucks has to work for about 56- 60 hours
per week. .The permanent contract also consists of wages, contributions, job role in the
organization and other benefits including insurances and sick leaves counter.

TEMPORARY CONTRACT
This type of contract is used when a seasonal employee works in an organization. An
employee is hired in the organization for extra and seasonal work for example on Eid’s and
Christmas. This type of contract is for certain period of time and is expired on its due date
and the employee has to leave.

PART TIME CONTRACT

This type of contract is signed for employees those who only need to work for few hours a
week for example 15 to 20 hours per week which mainly depends on the job role. An
employee working less than 50 hours work is assigned with part time contract.

Disciplinary rules

Disciplinary rule is a mandatory regulation that sets out the minimum standards of
professional conduct that an individual must uphold in order not to be subject to disciplinary
action. Disciplinary rules and procedures are required to facilitate stable working
relationships, as well as fairness and consistency in individual care.

 The employee shall be entitled to be told of the intent of every meeting. If not,
then inquire before the meeting begins.

 The employee is also entitled to appeal against any action taken against him / her
and should also inform his / her representative of his / her intention to appeal.

 The employee shall have the right to have a delegate at every disciplinary
meeting for himself.
Employer and employee rights

Both the employee and the employer have certain rights and obligations towards one another.
Below are some of the rights between employer and employee at Starbucks.

 Equal pay and fair treatment

 Maternity/paternity pay
 Catalogued payslip
 Notice, not to be unfairly dismissed

The employees working at Starbucks have to go along the company as planned if they don’t
do so the employer might not like the work done by the employee and if he didn’t like the
work he/she has the right to disagree with the terms and decrease the wage of that employee
below the minimum and by law the employee has to agree with this. Moreover manager have
to treat all the employees equally and should avoid favouring separately. Therefore, as
mentioned, some of the employer rights; to provide excellent work from the workers and to
make sure they operate within the laws of health and safety. They do have the right to recruit
and fire workers with correct procedures.

Task # 3(P5)
In this task I will discuss about how the performance is measured in a business and discuss
how managing and measuring performance can benefit a business and will access the
importance of measuring performance at work place.

HOW DO COMPANIES MEASURE EMPLOYEE PERFORMANC?

Motivation is an important aspect which helps the employees to work harder and achieve
goals. As it is mandatory for Starbucks to measure employee performance as it is the way for
business to track their workforce. Motivation theories help a business to measure employee
performance. Employee performance can be measured with the help of performance
indicators where the owners set a target to be achieved and employees work on it and then
performances are measured that how well an employee has performed to achieve a specific
goal. If an employee or group of employee fails to achieve a specific goal new strategies are
prepared in order to achieve that specific goal. Measuring employee performance can in
result in growing productivity which employees must do their best to fulfil their objectives
and thus the business stay competitive on the market.
 Performance Indicators
This is type of extent of performance, this indicates the achievement of the organization in
relation with an activity. There are many performance indicators if we talk about Starbucks.
Sales figures are an essential part for performance indicators. Suppose if the sales figures are
high within the given period for Starbucks which will indicate that the employee
performances are executed at advanced levels, and very well managed. Comparing the sales
figures with previous years also helps to calculate employee performances for Starbucks and
if the sales figures are high than previous year that indicates that workforce is performing
accordingly. Feedbacks from the customers also helps a lot know about the employee
performance. In Starbucks, therefore, there may be many other measures as the output of the
manager can be calculated by the revenue produced by their store.

Goal theory
In this method employee set a goal and work on it or achievements. Such goals are achieved
when working together. All worker work in a group in order to achieve that goal. Working
together can help to increase trust. Creating trust between managers will help the employees
to work effectively. Setting a goal can improve employee performances as they’ll work
effectively to reach the goal in any condition. Reaching the goal for employees will help to
improve their performances as there are clear goals to execute so they’ll do their best to
achieve the goal.

Smart targets
Smart targets are used to know how important an objective is to record employee
performance. Smart targets are set for the employees to achieve and when the goal is
completed the improvement can be measured easily. To boost Starbuck’s efficiency of its
workers, which could well set SMART goals for them to achieve. Such goals can be

 Time-bound
This is used to measure how long it took for the employee to achieve a specific task.

 Achievable
This is the observing of how that target is achieved

 Realistic
The goals should be real, based on the available resources and skills

 Measurable
Targets would involve something tangible

Starbucks can measure performance by setting goals like increasing profit by 10% by the year
end or increasing customer satisfaction by 7% in result employees will work their best to
achieve the goal and this will help Starbucks to measure employee performance.
HOW DO COMPANIES MANAGE PERFORMANCE AND HOW IT LEADS TO
EMPLOYEE DEVELOPMENT?

 PROBATION:
When an employee starts working in a company that employee monitored clearly. The new
employee is given a certain time to achieve a task the time given depends on the job role
given. This helps the employee to clearly show their skills and prove them that how good
they are and indicate the manager or employer that they are suitable for the job role. Other
employers also monitor him to decide whether this new employee is trustable or not.

 SUPPORTING EMPLOYEES:
Supporting employees is when a new employee decides to join the work place an expert
worker in order to make that new employee comfortable with the work place which helps him
to understand the work easily. If the new employee is satisfied with the work place and its
member and is motivated then he will start working without any difficulty and will work
more effectively even in difficult times thinking that he is being supported.

 MANAGING WORKLOAD:
Managing workload is when a supporter inspires and supports the employee and helps them
to achieve goals. Managing workload will help the employee to work more effectively and
will be comfortable next time when managing workload without any difficulty. This will
make the employee comfortable and they will able to discuss their ideas and thoughts and
clear their doubts which help them to feel their importance so they are motivated in their
work place.

REFRENCES

https://en.wikipedia.org/wiki/Starbucks
https://www.managementstudyguide.com/what_is_motivation.htm
https://www.knowledgehut.com/tutorials/project-management/motivation-theories
https://definitions.uslegal.com/d/disciplinary-rule/
https://www.reed.co.uk/career-advice/types-of-employment-contracts/
https://www.ere.net/7-easy-ways-to-measure-employee-performance/
https://www.15five.com/blog/how-do-i-improve-employee-development/