Starbucks Corporation: Strategic Human Resource Management

Human resource management (HRM) is a field that supports the performance of many business organisations. Corporations that implement a proper HRM structure will realise their goals much faster. Proper HRM policies guide companies to empower their workers and ensure different activities are completed in a timely manner. Strategic human resource management (SHRM) is an evidence-based approach whereby companies implement adequate HR practices that can improve the productivity of every employee (Iveta 2012). An effective SHRM approach will promote a positive rapport between the management and the workers. The ultimate goal is to come up with new practices and processes that are beneficial to both parties. The purpose of this report is to describe the major aspects of SHRM applied at Starbucks Corporation.

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Company Profile: Starbucks Corporation

Founded in 1971, Starbucks Coffee remains one of the best performing firms in the coffee shop industry. The firm currently has its headquarters in Seattle, Washington. The company has over 23,000 coffee shops across the world. Some of the destinations include Canada, China, Japan, United Arab Emirates (UAE), the United Kingdom, and Japan (Morais et al. 2014). The shops serve cold and hot drinks to their customers. Other common products include tea, coffee beverages, and smoothies. In 2015, the company’s revenue stood at around 19.16 billion US dollars (Morais et al. 2014). The net income during the same period was around 2.76 billion US dollars. The company has a powerful business model that attracts many employees in order to deliver quality services.

In the recent past, the company has managed to acquire or start a number of subsidiaries. Such firms support the company’s business model. Some of these subsidiaries include Seattle’s Best Coffee, Ethos Water, Hear Music, Teavana, and Tazo. The company has a total of around 238,000 employees across the globe. Starbucks’ mission has been to ‘inspire and nurture the human spirit – one person, one cup, and one neighbourhood at a time’ (Morais et al. 2014, p. 37). The mission is supported by these values:

  • Creating a culture of belonging and warmth;
  • Acting with the right courage and desire to challenge the status quo;
  • Respect, transparency, dignity, and being present;
  • Delivering the best in every little thing the firm does.

SHRM: Achievement of Organisational Objectives

Importance of SHRM in an Organisation

Strategic Human Resource Management is something needed by many companies such as Starbucks Corporation. The use of SHRM at Starbucks has made it easier for the corporation to plan strategically and ensure the right goals are realised in a timely manner. The approach is used to identify the unique gaps in the firm and implement powerful practices to maximise performance. With proper SHRM, the managers in the HR department find it easier to empower and develop the workers at a personal level (Iveta 2012). The practice guides the workers to seek adequate support from the leaders.

The HR department has been using the best frameworks to recruit and select more individuals from diverse backgrounds. The individuals are then trained and equipped with the right skills in order to support the company’s values and mission. Conflicts are addressed in a timely manner before they get out of hand. When the right candidates are hired and empowered, it becomes much easier for different departments to focus on the changing needs of the customers (Strutzmann 2013). Leadership is decentralised in order to ensure the emerging issues are addressed in a timely manner.

Purpose of SHRM Activities in an Organisation

Iveta (2012) indicates that SHRM is a powerful process in every business organisation. The practice begins with effective planning in order to ensure the right individuals are brought on board. Starbucks uses effective SHRM to implement the best practices and processes that have the potential to transform the company’s performance (Strutzmann 2013). The success of the company is determined by a number of initiatives such as corporate citizenship, human drive, continuous improvement of customer services, and identification of new ideas that can promote business performance.

Starbucks Corporation has designed a powerful SHRM model in order to ensure various objectives are realised in a timely manner. The first one is promoting the best workforce planning. The SHRM focuses on the best measures to recruit, train, and empower the employees in order to deliver the targeted goals. The department goes further to analyse gaps and offer proper training. The firm has been focusing on the best practices in order to develop a powerful workforce that can deliver quality services to more customers (Vui-Yee 2015). The SHRM has been promoting the best working environment for every employee.

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Culturally competent SHRM practices have been embraced by the company in order to meet the needs of more employees and customers in different corners of the world. For instance, the workers are guided to form teams and embrace the idea of diversity. This practice has led to better working processes that meet the needs of the targeted customers (Iveta 2012). Corporate citizenship is a powerful concept that can be supported through the implementation of a powerful strategic human resource approach.

Contribution of SHRM to Achieve Organisational Objectives

The SHRM initiatives implemented at Starbucks have made it easier for the company to achieve its organisational objectives. The first attribute embraced at the firm is workforce planning. When the right individuals are hired and empowered using the best working environments and resources, it makes it easier for the firm to support the targeted customers (Vui-Yee 2015). The employees engage in continuous improvement in order to come up with better practices that can support the company’s model.

The organisational culture associated with Starbucks Corporation is dictated by the SHRM functions undertaken by the leaders. The SHRM promotes the best practices and behaviours that resonate with the firm’s values and mission. This approach creates the best environment whereby the workers are willing to focus on the targeted objectives. The employees are encouraged to use the firm’s resources and eventually support the company’s goals (Iveta 2012). These practices explain why more people have continued to receive exemplary services from Starbucks.

Teamwork has emerged at the organisation whereby the HR department promotes cohesion, collaboration, and continuous participation. This practice has guided the employees to embrace the idea of corporate citizenship. Guided by the values of integrity, justice, transparency, and corporate social responsibility, the HR practices at the company has made it easier for the workers to drive performance (Vui-Yee 2015).

Human Resource Plans for an Organisation

Business Factors Underpinning Human Resource Planning in an Organisation

Human resource planning is a powerful practice that guides an organisation to align its human capital with targeted business goals. Whenever engaging in HR planning, it is necessary to consider the unique factors that affect or dictate business performance. Starbucks Corporation has been considering a number of factors in order to achieve its objectives globally (Strutzmann 2013). The first factor is the political climate. In the MENA (the Middle East and North Africa) region, the firm considers the changing factors in order to attract competent employees and design appropriate business models.

The targeted business growth and goals are critical factors underpinning the firm’s HR planning process. Whenever recruiting, selecting, and retaining the targeted employees, the firm is guided by the targeted goals. For instance, the company used to attract the right candidates in order to increase the number of its stores across the world (Vui-Yee 2015). The firm outlines the major competencies that should be possessed by the employees. The next thing is to implement powerful support mechanisms and training programs to empower recruited employees.

The coffee shop industry is heavily regulated because it operates within the consumable products sector. This kind of regulation is required in order to ensure the final products are healthy and appropriate for the consumer (Strutzmann 2013). The issues of workplace safety and remunerations have been outlined under the existing policies. Starbucks has been focusing on these legal attributes and regulations in order to empower the workers (Phillips & Gully 2014).

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The issue of diversity is another factor that influences the manner in which HR planning is done in many firms. The wave of globalisation has encouraged people to move from region A to B. The practice has increased the level of diversity across the world. Starbucks Corporation considers this factor in order to support the needs of diverse employees. Throughout the HRM process, the company identifies specific employees and equips them with appropriate skills and resources that can boost the level of performance (Vui-Yee 2015). The firm also encourages the workers to form teams that can offer faster and quality services to the customers.

Technology has been changing very fast in different industries. Starbucks considers the manner in which technology is influencing business operations. The firm has implemented powerful electronic systems to ensure the targeted employees are empowered, guided, and encouraged to focus on the targeted goals (Phillips & Gully 2014). The use of technology is, therefore expected to transform the manner in which human resources are managed in the firm.

Human Resource Requirements in a Given Situation

From the early 21st century, Starbucks Corporation continued with its expansion journey. In order to achieve this goal, several human resource requirements stood out. The issue of business growth was taken seriously by organisational leaders. The HR department in different regions implemented a powerful strategy in order to attract the right individuals who could support the firm’s expansion (Vui-Yee 2015). Attracted individuals are equipped with the right tools and resources in order to support the corporation’s goals.

The company has been focusing on the best approaches in order to implement the use of information technology and boost business performance. This factor has been treated as a major human resource requirement. In the United Arab Emirates and China, the company has been attracting technologically-savvy individuals in order to ensure the changing needs of more customers are met (Vui-Yee 2015). The use of modern technology is something that will continue to support the company’s future business goals.

The desire to transform customer experience is something that has led to different HR practices at Starbucks. From 2006, the company introduced ‘automated espresso machines’ (Morais et al. 2014, p. 41). In order to ensure the machines supported the targeted business goals, the firm went ahead to identify and recruit competent candidates who could support the new strategy.

HR Development Plan

Before implementing a powerful human resource (HR) development plan, a company can begin by identifying the industry’s external forces and factors. Starbucks can come up with a sustainable HR development plan in order to improve performance and focus on the targeted goals (Morais et al. 2014). The first step is to understand the targeted business objectives or goals. Starbucks Corporation is planning to maximise profits and continue delivering memorable experiences to its global customers. With this kind of knowledge, Starbucks comes up with specific skills that can ensure the targeted goals are realised.

The second step will be to analyse the pressure of the major forces dictating the company’s performance such as consumer needs, technological changes, globalisation, regulations, and environmental conservation (Zehir et al. 2016). This understanding will ensure the targeted employees can address the impact of these forces. This approach will ensure the workers resonate with these factors and eventually support the company’s business model.

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The third step is coming up with an HR policy that dictates the kind of employees in the firm. The step will encompass a number of processes such as employee empowerment, provision of resources, and training (Sani 2012). Emerging opportunities in the coffee shop industry can be tapped and considered in order to ensure the workers promote business performance.

How Human Resources Plan Contribute to Meeting Starbucks’ Objectives

The implemented HR plan has the potential to transform the company’s performance and make it a leading player in the industry. After attracting competent individuals, the right resources are presented in order to realise every objective. The emergence of new business opportunities is what governs the practices of the employees (Sani 2012). The workers are guided to identify new opportunities, present appropriate models, and support the organisation’s goals.

Training is usually done at the firm as part of the HR planning process. The managers identify the existing gaps and offer adequate support depending on the skill gaps and strengths of the workers. The workers are empowered to form cohesive teams in order to deliver exemplary services to the greatest number of customers. The emerging changes and factors in the industry, such as technological shifts and regulations are implemented in the HR planning process (Zehir et al. 2016).

The success of Starbucks in the industry is attributable to the HR planning processes implemented at the company. HR managers constantly review the needs and performance of the employees. This practice makes it easier for them to identify the major gaps that can disorient performance (Kesti & Syvajarvi 2015). The effectiveness of every workforce is monitored frequently in order to align its action plans with the company’s objectives. The practice has resulted in a positive resonance, thereby making Starbucks Corporation a successful player in the industry.

Human Resources Policy Requirements in an Organisation

Purpose of Human Resource Management Policies in Organisations

HR policies play a positive role in firms because they define the rules, roles, and actions that should be embraced by the targeted workers. At Starbucks, HR policies are implemented in order to dictate the performance of the employees. The first attribute focuses on structure. The HR policies in the company outline the working hours, disciplinary actions, workplace practices, safety requirements, and performance reviews (Zehir et al. 2016). The employees are allowed to focus on the policies in order to minimise conflicts and interact positively.

The HR department at the company understands a number of legal concerns and regulations that govern the coffee shop industry. The company uses non-discriminatory practices whenever hiring targeted employees. Both women and men are attracted and recruited at the company (Kesti & Syvajarvi 2015). Disabled and elderly people are also hired at the company in order to promote diversity. The managers are usually fair whenever resolving disputes at the firm. Fair employment, empowerment, and retention practices have always defined the company HR philosophy.

The HR department at Starbucks has implemented a powerful code of ethics. This code guides employees to relate positively with one another. The individuals are guided by the code to act ethically and maintain professional relationships with their respective customers. These policies have made it possible for the firm to achieve its business objectives. These practices have promoted a culture of effectiveness (Kesti & Syvajarvi, 2015). The consistency of operations encourages the employees to act ethically. The manager disciplines the workers without any form of discrimination.

Impact of Regulatory Requirements on Human Resource Policies

In the United Arab Emirates, there are various regulatory requirements that impact HR practices and policies. To begin with, the Labour Ministry has rigid guidelines describes the employee-employer relationships. The HR department at Starbucks in the region ensures that the rights of the workers are taken seriously. Issues such as health insurance, proper salaries, safe working environments, and leaves have been included in the HR policy (Sani 2012). The Labour Law of 1980 discourages companies from being biased whenever hiring new employees.

The Health Insurance Permit (HIP) is a license required by companies in different sectors. In the food and hospitality industry, firms should ensure their employees are insured because they are exposed to a wide range of dangers. The provision of insurance cover is considered by Starbucks whenever designing its HR policy (Kesti & Syvajarvi 2015). The organisation has therefore, been focusing on the best practices in order to ensure every regulation is followed. Consequently, the firm has been able to support its business model.

Human Resources Management in an Organisation

Impact of Organisational Structure on HRM

Starbucks Corporations uses various structures because of the complexity of its departments. A divisional structure is embraced when it comes to different functions such as HR, outsourcing, supply chain management, and leadership. The structure is also characterised by a decentralised leadership practice whereby the employees are guided to make decisions while at the same collaborating with their supervisors (Uysal 2014). Additionally, the company also has a hierarchy to define how critical decisions are made by senior managers.

The structure has had numerous implications on the HR practices undertaken at the company. To begin with, the HR department has a manager who guides his or her subordinates to focus on the best approaches that can improve the level of performance. The manager is expected to make specific decisions such as the right materials, technologies, and approaches that should be embraced at the company (Zehir et al. 2016).

With a divisional approach, the employees in various departments will be empowered differently. This fact explains why some employees in a given department might be more satisfied than their counterparts in the company (Uysal 2014). The leadership has also made it easier for more workers to focus on the targeted goals.

The Impact of Organisational Culture on the Management of Human Resources

Hofstede’s model offers different practice levels that describe the nature of organisational cultures in many companies. Several levels of the model are applicable to Starbucks Corporation. The employees are allowed to work as a team and focus on the changing needs of the customers. Problems and conflicts are addressed amicably even without the help of the top managers. The workers take the goals of the company seriously.

They work together, focus on their objectives, and embrace the idea of work-life balance (Strutzmann 2013). This means that Starbucks is associated with a goal oriented culture. According to Hofstede’s model, the company has the following structural attributes: goals oriented, internally driven, open system, high leadership acceptance, and high association with the company (Zehir et al. 2016).

These aspects have made it easier for the company to realise its goals. The culture has created the best environment whereby the workers support the targeted goals. The company goes a step further to provide adequate resources in order to support the business model (Phillips & Gully 2014). The culture has therefore made it easier for the HR department to achieve its goals. The department will also be required to implement powerful systems that can support this kind of culture.

Monitoring Effectiveness of HR

Starbucks understands that effective HR practices dictate the level of business performance. The company has been using a number of metrics and scorecards to measure the effectiveness of every HR program. The first key indicator used to measure HR performance is employee satisfaction. The company uses the approach to identify new improvements and processes that can drive performance (Zehir et al. 2016). A workforce scorecard makes it easier for the company to identify the skills of different HR managers and competencies.

HR metrics are used to monitor how different departments adhere to the existing policies. Changes are implemented depending on the results of the metrics. The concept of benchmarking is taken seriously. This is done by monitoring the performance of different companies and competitors in the targeted region (Zehir et al. 2016). Some of the best practices are borrowed and implemented in order to become part of the HR process.

Recommendations for Improvement

This discussion shows conclusively that Starbucks Corporation’s success is attributable to is positive HR practices. The HRM model at the firm supports the needs of the workers in order to support the targeted goals. The approach has made it easier for the firm to achieve its business objectives. However, the nature of structure in the company has led to several conflicts. It would therefore be necessary to use a unique structure that can support the best HR practices.

A matrix structure can bring more departments together and eventually maximise performance. The second recommendation is implementing a powerful training program especially for individuals from diverse backgrounds (Uysal 2014). The program will equip them with the right concepts and eventually support business performance. New empowerment initiatives such as the provision of better remunerations and packages will ensure the firm achieves its goals. Finally, different departments can be coordinated and allowed to work together in order to make Starbucks the preferred brand in the global coffee shop industry.

Reference List

Iveta, G 2012, ‘Human resources key performance indicators’, Journal of Competitiveness, vol. 4, no. 1, pp. 117-128.

Kesti, M & Syvajarvi, A 2015, ‘Human capital production function in strategic management’, Technology and Investment, vol. 6, no. 1, pp. 12-21.

Morais, U, Pena, J, Shacket, K, Sintilus, L, Ruiz, R, Rivera, Y & Mujtaba, B 2014, ‘Managing diverse employees at Starbucks: focusing on ethics and inclusion’, International Journal of Learning & Development, vol. 4, no. 3, pp. 35-50.

Phillips, J & Gully, S 2014, Human resource management, Cengage Learning, Boston.

Sani, A 2012, ‘Strategic human resource management and organisational performance in the Nigerian industry: the impact of organisational culture’, Business Intelligence Journal, vol. 5, no. 1, pp. 8-20.

Strutzmann, T 2013, The Starbucks corporations: past, present and future, GRIN Verlag, Munich.

Uysal, G 2014, ‘Stages, content, and theory of strategic human resource management (SHRM): an exploratory study’, Journal of Modern Accounting and Auditing, vol. 10, no. 2, pp. 252-256.

Vui-Yee, K 2015, ‘The impact of strategic human resource management on employee outcomes in private and public limited companies in Malaysia’, Journal of Human Values, vol. 21, no. 2, pp. 1-13.

Zehir, C, Gurol, Y, Karaboga, T & Kole, M 2016, ‘Strategic human resource management and firm performance: the mediating role of entrepreneurial orientation’, Procedia – Social and Behavioural Sciences, vol. 235, no. 1, pp. 372-381.

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