Starbucks aims to improve employer-employee relations in its USA stores.

To do this, Starbucks
could either focus on changing its organisational structure, or extend its flexible working practices
for employees.

(e) Evaluate these two options and recommend which one is the most suitable for Starbucks to
improve its employer-employee relations.

ADV changing org (flexible working)

Unfair treatment

Empowerment-based structure

Project-oriented framework

ADV ext flexible working (changing org)

Automation fatigue

Employee vs customer needs

Ans: ext flexible working

Conflicting interests

Starbucks need to be careful to ensure customer needs do not conflict employee needs which
present if in attempt to improve consumer service they have made hours flexible which lead to ‘one
person on barista’ highlighting issues of balancing the conflicting interests

Create unfair treatment to deal with the apparent ‘undersupport’ whilst facing the north star iniative
given that they are part time exploitative measures such as demanding unpaid overtime to combat
these issues. Preventative measures from ext organisational structures may have been preferential
given that it would reduce chance of pressure building on one employee

However the empowerment based strategy of flexible working hours may give employers less need
to demand promotions hence the flat organisational structure may seem desirable to employers and
employees as managers can implement their incentive of north star better to employees who would
be more motivated due to flexible hours

Changing organisational structure

Competitive landscape

Starbucks labour may be benefited by ext. org structure as the recent cutting of labor has been met
with unclear delegation of responsibility's given that there was ‘one’ person on coffee server.
Demonstrating one of the challenges faced by competitive innovations.

Better adaptable to competitive landscapes can create greater trust throughout business which
could result in staff orientated incentives given that managers have ‘great autonomy’ proving
workforce can be motivated without needing flexible hours
However a taller organisational structure may not lead to greater tackling of challenges from tech
innovation. Staff having ‘half labour’ means that consumers may feel their job is at risk, which could
decentivise staff. This is important given that it is likely the change in scope was to help Starbucks
adapt to challenges in the industry such as disruptive innovation, such as technology adv. As a result
even with better delegation of roles Starbucks may still not react to changes in comp. Landscape esp.
If they have automation fatigue given Starbucks work close with tech.

Cutting labor