HRM

Compiled ByASSIGNMENT
– Tanya1 (BFT/18/639)

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 INTRODUCTION
• Starbucks is a well-established international brand that was
founded in 1971. At present, the company is based in
Seattle, Washington, and is involved in selling coffee and
other beverages, coffee beans (purchased from coffee
provinces all around the world), and some bakery products
with 18,009 stores in 83 countries.
• Starbucks also owns Starbucks Entertainment and Hear
Music, which means that the company can sell books,
movies, and music. Starbucks stores are usually situated in
visible places with high traffic
• Number of employees – 3,46,000
• Net income – US$ 3.59 Billion (2019)
• Customer service – 1860 266 0010
• Starbucks was awarded the Employer of Choice Silver
Award at the recent Malaysia HR Awards organized by
the Malaysian Institute of Human Resource Management
(MIHRM)
HR Practices
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HRM at Starbucks
Human resource management(HRM) is the process of
finding , developing and keeping the right people to
form a qualified work force, and to develop and
maintain an effective workforce within an
organization.
STARBUCKS realized early, that motivated and
committed human resources were the key to the
success of a retail business. Therefore the company
took great care in selecting the right kind of people
and made an effort to retain them. Consequently, the
company's human resource policies reflected its
commitment to its employees.
Starbucks is known to have the best management
team and staffs because Starbucks number one
mission statement is “provide a great work
environment and treat each other with respect and
dignity.”
Starbucks special HRM Recipe

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Barista Training
• Starbucks relied on its baristas and other
frontline staff to a great extent in creating
the 'Starbucks Experience' which
differentiated it from competitors.
• Starbucks calls their employees partners.
• Every partner/barista hired for a retail job
in a Starbucks store received at least 24
hours training in the first two to four weeks
in which every employee has to master the
“ Star Skills ” and be a certified Starbucks
Barista.
• Starbucks wants to make every employee a
part of a worldwide family and in order to
do so, they make them aware of the
challenges of the company.
Supporting partners outside work
Starbucks always give more importance to its people than products. To increase job
satisfaction and engagement, the company provides health benefits, financial support, and
encourages its employees to take part in various development programs. The satisfaction
level is measured two times in a fiscal year to be able to make changes if the new policy is
ineffective.

• The following incentives have been introduced to increase job satisfaction

• The incentives that Starbucks provide to its workforce are free health care that also
includes vision and dental care facilities as well.
• Both full- and part-time partners can receive college tuition fees, the company will pay
the biggest portion of the sum and may even offer to pay for the full tuition for juniors.
• Starbucks gives its stocks to the staff members every year, this benefit can significantly
increase engagement as the employees of the company acquire the feeling of belonging;
• working for Starbucks gives one a right to have a pound of coffee beans or tea once a
week; besides, the employees get a 30% discount for products and can drink any
beverage for free during the breaks.
• The employees even get paid vacation time.
 Annual Appraisal
• Starbucks helps employees to grow and has a mindset that the employees
should grow as fast as the company grows as C.E.Os. are chosen internally.
• The partners do surveys every 6 months answering questions about their
overall performance, job satisfaction and commitment to the company.
• Starbucks pays their employees to fill out the surveys by having them do it
on work time. In doing this, they align workers with their key values of
creating a workplace were people treat each other with respect and dignity.
• District managers and functional departments of the company review the
surveys and respond to the employees.
• The company also makes use of customer comment cards, which are
opinion polls allowing customers to share their impressions of the quality
of goods and services. This way of appraisal is an evident strength of the
company as in most cases customers do not know any of the employees
personally, which means that their assessment is likely to be impartial.
Those employees who have high scores according to customers’ opinions
receive bonuses.
Reward Strategy
The system of performance award is another strong side of the company as it
provides an opportunity to increase job satisfaction at all levels. The awards
include
• Manager of the Quarter Award (identifies a store manager in each of the areas who has
shown excellent leadership qualities and increased the efficiency of the workflow)
• Manager of the Year Award (is given to the most professional quarter manager for a
particular fiscal year)
• District Manager of the Year Award (is given to the best district manager of the year in
five categories: Partner, Business, Customer, Rookie, and Overall)
• Spirit of Starbucks Award (recognizes those employees who are committed to the culture
of the company and provide the greatest assistance to their partners)
• Team Spirit of Starbucks Award (is granted to teams consisting of more than 3 people)
• Bravo Award (is given to those who manage to achieve outstanding results)
• Team Bravo Award (the same but for a team)
• Ten Year Service Award (for uninterrupted employment)
• Fifteen Year Service Award
• Twenty Year Service Award
• Twenty-Five Year Service Award.
 Challenges
• Starbucks biggest challenge in the early 2000s would
be to ensure that the company's image as a positive
employer survived its rapid expansion program, and
to find the right kind of people in the right numbers
to support these expansion plans.
• Considering the rate at which the company was
expanding, it was an absolute challenge to retain its
spirit even when it doubled or tripled its size and
hence, by the early 2000s, the company began to
show signs that its generous policies and high human
resource costs were reflecting on its financial
strength.
• But still company did not cut down on benefits,
instead gave an increase of 11percent's on its
beverage prices in mid-2014 which was again a
challenge as customers already paid a premium for
Starbucks beverages.
 CONCLUSION
• Starbucks has tried to develop its human resources practices and make them
stronger to the extent that employees have better relationships with their
managers and feel connected to the organization as a whole.
• Even after the financial issues faced Starbucks never compromised on its
employees benefits. In enhancing Starbucks’s competitiveness, its
willingness to listen to employee input, allows emergent strategies to come
directly from the marketplace by determining and responding to the exact
mix of customer desires
• Starbucks is one of the big organizations of the globe, with a large
employee base and the way through which it is managing its employees is
very appreciable although the need for more work in some areas is always
remain even in perfect systems.

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THANK YOU