Starbucks Determination Strategy

Nowadays, the competition becomes more extreme because rapid globalization in the modern times, especially for the service industry with the similar products. Essentially the most essential point for business to success isn't just the quality of products they provide, but the atmosphere of cooperating and the amount from produce of teamwork in retail sales. The employees who always touch with customers and can realize what customers really need are first-line staffs. Therefore, it changes to be needed for companies to stimulate, reward and coach their employees to be the very best quality personnel.

In the first level, the historical track record of Starbucks will be unveiled. Secondly, an issue about the methods of motivating employees are going to discuss. Next, the strategies, which are being used by Starbucks to make their teamwork performance well, will be pointer out. In the end, there's a conclusion about the result of insurance policies in desire and teamwork.

Managers are constantly searching for ways to make a motivational environment where associates (employees) to just work at their ideal levels to perform company objectives. Place of work motivators include both financial and non-monetary bonuses. Monetary bonuses can be diverse whilst having a similar influence on associates. One example of monetary incentives is mutual funds provided through company pension programs or insurance programs. Since it has been suggested that affiliates, depending on the age group, have different needs regarding incentives, traditional motivation plans are being substituted with alternatives to attract younger associates. This newspaper will discuss how financial and non-monetary incentives are influenced by career periods and the issues associated with financial and non-monetary incentives.

how the whole total compensation and human resources (HR) systems at Starbucks are linked to the business objectives and reinforce the company's strong culture and ideals. Working in mutual support of the business enterprise, the culture, and prices, this included HR system has helped shape a robust success story that didn't rely on standard thinking and fads with regards to the treatment of its workforce.

Part 2 Arranging the Scene

Co info, & industrial

A Brief Record of Starbucks

Starbucks Espresso Company, as we know it today, commenced in 1987, when Howard Schultz, the current chairman and CEO, obtained the assets from the initial founders, whom he previously worked with from 1982 to 1985. In 1987, Starbucks experienced 11 stores. The original business plan, and offer to the buyers, was to have 125 stores within five years.

From 1987 to 1992, the business continued to be private, growing at the astonishing rate of 80% per 12 months to more than 150 stores. In June 1992, the business went open public, and it was one of the most successful initial general public offerings of the year. Today, Starbucks is the leading store, roaster, and brand of specialty espresso in North America. It manages more than 1, 800 retail locations in North America, the United Kingdom, and the Pacific Rim and has generated joint-venture partnerships with Breyer's (to create coffee ice cream) and PepsiCo (to create Frappuccino, a bottled espresso drink). Sales for fiscal calendar year 1997 were $967 million, an increase of almost 39% over the prior year, and the business applied more than 25, 000 partners (the company's term for employees). The company goal is to have significantly more than 2, 000 locations in North America by the entire year 2000. The company objective is to "establish Starbucks as the top purveyor of the best possible coffee on the globe while maintaining our uncompromising guidelines as we increase. "

Starbucks' Culture and Beliefs: The Drivers of HR and Praise Systems

Starbucks is a values-driven company, with a firmly established set of rules that are generally shared within the organization. Additionally it is a firm that sets its employees first and invests a significant amount in them. None of the is unintentionally. Source: Wilson, Thomas, B. , Rewards That Drive POWERFUL, Amazon, New York, 1999. www. wilsongroup. com 1

It all stems from the ideals and beliefs of its CEO. Says Schultz, "I wanted to establish the sort of company that offered people a kind of equity (possession) and complete health insurance, & most importantly, provide them with self-esteem in the workplace. People feel that Starbucks is a place that gives them self-respect and prices the efforts they make, no matter their education or where these are in the business. " The company believes that if it puts partners first, the result will be exceptional customer service, and by expansion, if it has highly satisfied customers, the financial earnings will observe.

The history of Starbucks

Starbucks began by three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who knew the other person in the University of Seattle. In 1971, the first name with their store is "Starbucks Espresso, Tea, and Spice" in Seattle, Washington's Pike Place Market. They employed in making benefit from selling coffees roasted to individual customers and restaurants. Until 1982, they had increased the number of stores to four. During the same period, a sales representative of the home ware business in New York, Hammerplast, been to them. Howard Schultz wished to know why a small company needs a huge amount of percolators from Hammerplast. Due to the trade romantic relationship between these two companies, he was familiar with the three inventors. After he recognized the atmosphere and environment of the business, he decided to become a part of Starbucks, then as a director of marketing and retail sales.

In the following year, he previously a vocation to Milan, Italy. Although time, he experienced an completely different coffee culture from america. The culture of Italian cafe have been one part of people's daliy life. There have been numerous coffee pubs around the region and the public usually liked to socialize in a coffee bar. Under those circumstances, Schultz got an idea of a fresh flavour of cafe and a stylish environment to communicating with friends.

After the trip, he prepared the business plan for his eye-sight. However, the three initiators didn't want to copy their business into restaurant industry. As a result, in 1985 he chose to establish a new restaurant, named II Giornale, in Seattle. After the next two years, due to the successful plan of Schultz, the original three owners of Starbucks made a decision to sell their company to Schultz. Then Schultz obtained other buyers and took over the name of II Giornale to Starbucks. He desired to pursue his aspiration to make everyone taste his caffeine, so he centered on the rate of expanding. In those days, he though that the most effective way to grow the quantity of branches is to set up new stores in other areas. In I987, Starbucks experienced the first abroad store in Japan.

In the next years, due to the rising expenditures with the worldwide broadening, there is a deficit in Starbucks for the next three years. On the other hand, he firmly presumed that never to "sacrifice long-term integrity and worth for short-term income" (Michelli, 2006). In 1991, it switched reduction into gain and its own sales was raised sharply to 84 percent. Until the end of 2002, Starbucks is rolling out from 17 stores to 5, 688 growing over 30 countries in by this plan, it is an over 300 times growing in these a decade! (shown as Exhibit 1) From Lot of money journal, Starbucks was placed the 11th best company to be employed by in 2005 in america and then increased up in 2006 to 29th. Concerning 2007, it was ranked as the 16th best. Within the same calendar year, Starbucks was also voted as one of the top ten UK workplaces by the Financial Times. (Source: wikipedia)

Part 3 Literature Review

Rationale for literature reviewed

Critical review of literature relating to academic objectives

Definition of Motivation

Motivation is one of the most important areas of an individualsb eh av io r that can determine not only how specific behaves and feels but also ways that they interacts with others and affects them. Motivation is derived from the term motives. The word motive comes from Latin phrase movere, this means to move or even to energize. Thus inspiration actives us and directs our tendencies to a particular goal.

According to Armstrong (2002 P. 56) claims that


"People won't change their behaviour unless it makes a difference to

them to do so"

Managers are those who achieve their goals through other people. They can be constantly searching for ways to inspire their employees to make sure they are work at their optimal level of performance to perform the company aim. Various incentives are given by the professionals to their employees for drive. The incentives that are provided by the mangers to their employees can be broadly categorised as monetary bonuses and non-monetary incentives.

2. 1 Contrast of monetary and non-monetary incentives

The purpose of monetary incentives is to pay back associates for excellent job performance through money. Monetary incentives include profit writing, project bonuses, commodity and warrants, scheduled bonus items (e. g. , Christmas and performance-linked), and additional paid holiday time. Customarily, these have helped maintain a confident motivational environment for affiliates. Monetary bonuses can be diverse whilst having a similar influence on associates. One example of monetary incentives is mutual cash provided through company pension strategies or insurance programs. Because it has been advised that affiliates, depending on the years have different needs pertaining to incentives, traditional incentive deals are being changed with alternatives to catch the attention of younger associates. On the other hand, the goal of non-monetary benefits is to praise excellent job performance through opportunities. Non-monetary incentives include flexible work time, training, pleasant work environment, and sabbaticals.

2. 2 Issues with monetary incentives

"Managements have always looked at man as an pet animal to be

manipulated with a carrot and stay. They discovered that whenever a man is lured/harmed, he will move to get the award/avoid the pain-and they say, 'We're motivating the employees. ' Hell you are not motivating them, you are moving them. "*

-Frederick Herzberg, Professor Emeritus

Monetary incentives usually encourage compliance and achievements of difficult focuses on instead of pushing creativity, invention and foresight which are more important over time. Thus employees are not able to communicate their true ability and over time lose their creativity. Employers also may use monetary incentives as an extrinsic rather than an intrinsic motivator. Quite simply, associates are influenced to do things just for the monetary reward versus doing something because it is the right thing to do. This can disrupt or terminate good human relationships between

employees because they are altered from co-workers to competition, which can quickly disrupt the office environment. Another problem with monetary incentive is that it's given to circumvent a bigger problem for a short run. Sales employees are given higher monetary incentives to pay for poor management and poor products, employees are paid more for employed in poor work place. Monetary incentives can even drive the employees to falsely confirming their accomplishments. Huge monetary bonuses given to middle mangers have emerged as a hook to retain them which may make them work counterproductively. Although monetary incentives have an improved impact than the economic bonuses in the short run, they fail miserably over time and in extreme cases downfall of the company (when employees start anticipating monetary incentives even for routine jobs and in lack of which they start working inefficiently or go on a strike as regarding some authorities employees). Also almost all of the non-monetary incentives are intrinsic in dynamics. Intrinsic motivation works more effectively as the impetus to work is from within. Employees will work because they feel satisfied or satisfied by the activity they carry out. Under these situations the management can be thought to be more of a support than control. So managers should focus more on non-monetary bonuses after the minimal level of economic benefits and properly structure them corresponding with their employee's preference. This may ensure high motivational level of the employees that will get shown in their better performance at work.

2. 3 Theories which support intrinsic motivation

Various theories that support the idea that intrinsic desire which is obtained through non-monetary bonuses is important and better than extrinsic drive are as follows

Maslow's Hierarchy of needs

This theory areas that the needs of sociable, esteem and self actualisation are higher order needs. The differentiation between your higher order needs and lower order needs is that the higher order needs are satisfied at the individual level whereas the low order needs are satisfied externally.

Herzberg's two-factor theory

It facilitates the emphasis on factors associated with work like promotional opportunities, opportunities for personal growth, reputation, responsibility, and achievement which employees find intrinsically rewarding

  • McClelland's Theory of Needs

This theory targets three needs: achievements, electric power and affiliation. These are thought as follows

Need for achievements: The drive to excel, to achieve in relation to a set of standards, to strive to succeed.

Need for power: The necessity to make others behave in a manner that they would not need behaved otherwise

Need for affiliation: The desire to have friendly and tightly interpersonal connections.

  • Cognitive evaluation theory

This theory states that allocating extrinsic rewards for behavior that were rewarding intrinsically contributes to decrease in overall level of motivation. Thus it facilitates the view that it is easier to continue intrinsic motivation to improve the morale of employees.

  • Goal-Setting theory

This theory facilitates the theory that specific and difficult goals with feedback lead to higher motivation and performance.

  • Self-efficacy theory(Friendly cognitive theory)

It is the individual's opinion that a task assigned can be carried out. Higher the home efficacy higher is the self-confidence of the worker at the place of work.

  • Reinforcement theory

This theory areas that the behaviour is a function of its repercussions. If employees feel that their work are duly compensated then they will work in a far more effective manner for the company.

  • Equity theory

This theory states that individuals compare their job inputs and results with those of others and then react to eliminate any inequities. If their colleagues are given popularity employees will work towards attaining those rewards. This motivates them to perform them to are better which good for the organisation.

  • Expectancy theory

The strength of any tendency to do something in a certain way depends upon the strength of an expectation that the action will be followed by a final result and on the attractiveness of that final result to the individual. Thus when targets from a worker increases the worker responds with better performance.

From the above theories (however different they might be) it is clear that intrinsic desire is desired by the employees.

2. 4 Intrinsic Drive by non-monetary incentives

Various non-monetary incentives motivate employees intrinsically which is better than the extrinsic motivation. The intrinsic desire that these bonuses offer is the consequence of intrinsic rewards of self management.

Self management

In employee's perspective self-management is choosing activities, monitoring competence, investing in purpose and monitoring improvement. The intrinsic desire that energises the task comes straight from the four management occurrences namely activities, purpose, opportunities and rewards. From these four happenings the employees make a judgement -of the meaningfulness of the task purpose, the amount of preference available in selecting activities, the competence with that your activities are performed, and the amount of progress being made to the task goal. The judgements from self-management lead to intrinsic rewards which in turn provide the energy for personal- management which completes the routine.





From task


From task


Table 1: Intrinsic





  • Sense of meaningfulness

It is the chance that makes the employees feel that they are on a path that will probably be worth the energy and time-that they are on a very important mission that matters in the bigger scheme of things.

  • Sense of choice

It is the ability that the employees feel to select task activities that produce sense to them also to perform them with techniques that seem appropriate to them. The feeling of preference is the feeling of being absolve to choose-of being able to use their judgement and react out of their own understanding of task

  • Sense of competence

It is the accomplishment that employees feel in skilfully carrying out task activities that have been chosen by them. The feeling of competence requires the sense that they are doing good, high-quality work on a task.

  • Sense of PROGRESS

It is the success felt in achieving the task goal. The feeling of progress will involve the sense that the duty is moving forward, and their activities are really completing something.

It is the fulfillment felt in reaching the task purpose. The feeling of progress involves the sense that the duty is continue, and their activities are really accomplishing something.

2. 5 Non-monetary incentives

The non-monetary incentives desired by employees across decades have gone immediate changes. The next table shows the personal preferences in non-monetary bonuses across years.

Baby Boomers

(delivered between 1946-63)

Generation X'ers

(born between 1964-81)

Generation Y'ers

(born after 1982)

Retirement planning

Flexible schedules

Job training


Flexible schedules

Professional development


Tangible rewards

Work environment

Flexible schedules

Professional development


Tangible rewards

Work environment

Attentive Employers


Table 2: Tastes in non-monetary bonuses across generations

Thus it is clear that the needs of the current technology of employees are ever increasing and in current situation where there is low devotion to the companies, high attrition rate these demands need to be met sensibly well to entice potential employees who can perform really well and to retain the employees.


Various non-monetary bonuses in Desk 1 are afflicted by career stage and proximity to pension. The older the associate, the greater the concentration is put on retirement or supplementing pension income with part-time or temporary jobs. Younger the associate, the more the target is put on job satisfaction and the work environment.

Types of non-monetary incentives

Various types of non-monetary incentives are as follows
  • Flextime
  • Professional development
  • Feedback
  • Tangible rewards
  • Work environment
  • Attentive employers
  • Autonomy
  • Redesigning of jobs
  • Retirement planning while others.

3. 1 Flextime

Flextime refers to several agreements that allow the staff to work a non-traditional agenda. The worker and the director agree in advance on the hours of work. Flextime is a favorite option for good reason--it lends balance to busy lives. Fortunately, flextime also benefits the administrator too. Allowing employees to work schedules that best suit their lives leads to more productive individuals. The most frequent flextime arrangements include
  • Compressed workweek

This agreement allows the employees to work a complete, 40-hour program in 4 times by increasing the hours they work every day. The compressed week can also be planned over 2 workweeks, where they work 9 longer days and nights and have the tenth off. In any case, the compressed workweek maintains the same overall variety of hours, just divided up in another way. The workload, benefits, and pay aren't damaged by the design.

  • Adjusted lunch

Working an adjusted lunch program doesn't actually allow any additional days and nights off. Instead, he employees can take a longer lunchtime each day, making up the hours at the start or end of your day. For instance, he director may allow the employee to take your meal from 11-1 so that the last mentioned can run chores, go to a doctor's session, or work out, however in exchange the staff works that additional hour at the start or end of your entire day. This sort of layout may be an unofficial privilege of every worker, especially if it's used only occasionally.

  • Core hours

Next to the compressed workweek, this is actually the most popular arranging strategy because of the flexibility it offers. With this schedule, an employee could work certain hours every day, and as long as the schedule is built around the task time specified. For example, if the central time are 10-3, the staff must work 10-3 every day, but the starting and finishing times may differ. The employee may choose to work 10-6, or 7-3, or any other combo so long as those core hours are covered. If the employee preserves the same total number of time, your workload, benefits, and pay remain the same.










6 A. M 9 A. M

12 noon

1 P. M

3 P. M

6 P. M

Figure 2: Example of a Flextime schedule

The only problem with flextime is the fact it can not be long to employees involved in production as the work time also depends upon the machines that have to be run constantly for a certain period of time. Problems may come up if flextime emerges to employees of other departments rather than to people of production department. So it is more preferable not to introduce flextime in organisations where it can not be extended to all or any the departments.

3. 2 Professional development

In a broad sense professional development can include formal types of vocational education, typically post-secondaryor polytechnic training resulting in qualification or acredentia l required to get or hold on to employment. Informal or individualized programs of professional development could also include the idea of personalcoaching. Professional development face to face may develop or improve process skills, sometimes referred to as leadership skills, as well as activity skills. A few examples for process skills are 'success skills', 'team working skills', and 'systems pondering skills'. Some examples of process skills are software applications applications, customer support skills and basic safety training. Types of skills relevant to a currentoccupation are management training for professionals and training for specific techniques or equipment for educators, technicians, metal workers, medical practitionersand technical engineers. For a few occupations there's a provision for accreditation linked with "continuing professional education" and proving competence governed by a professional body.


3. 3 Feedback

People don't leave organisations, they give up bosses. This is extended to acquaintances too. Poor communication, negative relationship, backbiting etc can result in inefficiency and counter productivity. To get over this, organisations are adopting feedback culture. It is the culture wherein all the employees are taught the abilities of effectively acquiring and giving reviews which is the amount to which carrying out the task activities required by the work brings about the worker obtaining immediate and clear information about the effectiveness in their job performance. This includes telling each other frankly, frankly and effectively what they think about their behavior, job performance, ideas etc. Employees favor being told what others think about them directly instead of in the circular about way plus they like being given feedback to self examine their performance. They also would like to frankly notify their bosses the many problems and issues confronted by them. Responses is of two types positive and negative. Positive feedback improves the morale of the receiver and negative reviews enhances the performance of the recipient. Poor feedback can reduce morale, the ability to do the job, self confidence of employees and may also lead to conflicts between your management and the employees. Hence great treatment must be taken while presenting and receiving reviews. So when both managers and the employees acquire these skills of supplying and receiving reviews the feedback culture computes well for the company. The next factors are to be considered while presenting feedback:

  • Make reviews specific

Ambiguity and vagueness will make feedback inadequate as the receiver might skip the whole point. It ought to be made sure that there surely is no personality clash between the giver and device. Both of them should be comfortable with the way the feedback is being given and neither of these should feel attacked or offended. To accomplish away with these problems the responses needs to be specific.

  • Concentrate on behavior and results

Feedback should concentrate on behavior, results and future prospective and not on personality and behaviour so the receiver gets the desired message in the desired manner.

  • Take responsibility

The administrator/employee should take the initiative of giving feedback rather than adding the blame on others expressing that it's not their job. Most often it is due to lack of skills and unwillingness to give feedback. Employees should also be encouraged to take responsibility as you can find lot of focus on teamwork and empowerment in present day's organisations which have become flat.

  • Balanced feedback

Feedback should be balanced and accurate. Overstating or understating results will lead to ineffectiveness of reviews.

  • Feedback on periodic basis

Feedback needs to be on a regular basis ideally on weekly basis. Wait in giving reviews will render it inadequate.

Similarly while getting feedback the device has to listen attentively to all or any what is said, analyse the feedback and take remedial action.

Though difficult to establish, feedback culture promotes teamwork, job satisfaction, worker empowerment, improvement in job performance therefore is preferred by most of the employees.

3. 4 Tangible rewards

It is important to understand how different groups of employees perceive the full total reward package offered by the organisation, particularly if the marketing adage 'Conception is Actuality' were to be recalled. If the worker doesn't understand the full total reward package, how can staff value it? And how can it encourage he employee to perform?

Therefore, there is a need to get a knowledge of how managers and employees understand reward, and, in the case of the Senior Management Team, where they think incentive should focus? Conception of compensation can be researched using the next tool
  • Senior Management Team Brainstorm

It is usually important to require the Senior Management Team (SMT) altogether Reward plan development. It is best to involve them from the outset to ensure that they understand and donate to what you are doing. The primary reason for doing management interviews or emphasis groups is to get buy-in from those who'll be in charge of putting into action the strategy. Interviews can help identify the info that managers will see useful, and start to develop an action plan. This should give attention to the 'big picture' and on priorities, not on details. Top clubs (or other mature groups) will tend to be unenthusiastic about comprehensive level definitions. The precise organisation and style of the question will be based upon the make-up of the team and the type of the facilitator's marriage with it. The focus will be on exploring either 'what really issues to the people who work here?' or 'founded on the kind of people you want to work here, what do you think would really subject to them?' The target in each case will be on exploring either 'what really matters to people who work here?' or 'based on the type of individuals you want to work here, what do you consider would really subject to them?'

  • Cash vs. Tangible Rewards

Why Do Products and other Tangible Rewards Motivate MUCH BETTER THAN Cash?

Perks programs feature custom-designed rewards catalogues with highly appealing and attainable products as rewards. Our incentive items are memorable and strengthen the relationship between your reward earner and the prize provider. They continue giving each time a merchandise incentive is looked at or seen: recipients relive the special identification and appreciate the organization that honoured them.

Cash rewards on the other hand, frequently have fleeting impact and generally, leave the recipient's head when they are put in. Cash - regrettably for those companies that try to inspire with it - is the least lasting type of pay back, because it's typically perplexed with other settlement and therefore overlooked. Additional reasons to use tangible rewards somewhat than cash are summarized below.

Comparison between cash and tangible rewards.

Cash or Any Cash Equivalent

1. Simply an extrinsic motivator with little psychological involvement; does not provide lasting satisfaction and long-term performance activation

2. Creates targets, causes entitlement and therefore looses its motivating value

3. A money is a buck; participant attaches no greater emotional or inspirational value to cash. Lacks emotional impact of tangible rewards; thus quickly spent and neglected

4. No "trophy" value to be always a regular reminder and continue to motivate. It is difficult to show off; thus restricts the long lasting impact of the reward

5. Difficult to target a particular behaviour because of the lacking connection with a particular achievement

6. Recipients often can't remember what they purchased with cash incentive which further reduced its impact

7. Minimal connection with Sponsor Company credited to nominal trophy value of prize which reduces the potential of goodwill toward the company

8. Not cost-effective; requires 3 x the incentive investment in comparison to non-cash, on average

9. Usually allocated to necessities thus missing a positive connection with the targeted accomplishment or behaviour

10. Participant feels guilty for not spending a cash honor on essentials which taints the reward with distressing feelings

  • Tangible Rewards

1. Carry a significant "trophy value" thus continue to reinforce the good performance and behaviours

2. Provide tangible mark of achievement and help as an encouragement to other employees

3. Reinforce the association with Sponsor Company and so increase loyalty

4. Provide guilt-free excitement of praise thus escalates the motivating impact

5. Both extrinsic and intrinsic motivators; provide strong mental appeal to members' personal desires and interests

6. Carry an increased perceived value because of the increased emotional attachment; therefore, stimulate performance better than cold cash

7. Can be attached to a specific behaviour thus rousing a specific response in an extended term

8. Participant's family is involved in selecting and writing prizes thus multiplying the psychological value of the prize and its effect on the participant

9. Provide a 3-to-1 profits on return compared to cash. On average, cash programs cost 12 cents per incremental dollars netted by increased performance, versus 4 cents per dollars for non-cash programs

10. Do not become an expected part of an employee income or an entitlement; always seen as a reward for a specific achievement or performance

Based after the fore mentioned factors it could be observed that following the minimum level of monetary payment, employees are increasingly more enthusiastic about non-monetary bonuses i. e. , tangible rewards as opposed to the cash rewards.

3. 5 Work environment

Work environment has become a good non-monetary incentive for employees. Current employees are requiring work area wherein they can balance the needs of their work and their family lives rather than choosing one over the other. Organisations have also accepted that among many dreams of employees the demand for a good work environment is quite sensible. In the time of IT trend, almost all of the IT companies are offering air-conditioned rooms and state-of-the-art furniture for the employees. Restrooms, dormitories, good canteens, washrooms are provided by the organisations to their employees. This escalates the morale of the employees and thus motivates them.

3. 6 Attentive Employers

Employees want their bosses to be mindful of their concerns, issues and become proactive in general management rather than looking forward to the event that occurs. They want identification for the work that they do. Employee recognition programs like "Employee of the month", a good spontaneous or private "thank you" and other broadly publicised formal programs that encourage specific type of behaviour and the task to attain popularity is clearly defined. In Nichol Foods Ltd. , a United kingdom bottling company there's a different kind of employee recognition program known as "bragging boards", where the accomplishments of various individuals and teams are regularly up to date. Monthly rewards receive on the basis of peer analysis. In another company Applebee's restaurants, the president herself leaves appreciation notes and speech emails on the worker tables if the staff does well. Simple things such as sending personalised birthday cards, anniversary credit cards etc signed by the highest official can work wonders in increasing the morale of the employees.

3. 7 Autonomy

Employees desire to be able to work independently. They don't want someone constantly viewing over them and questioning their every move. They prefer to receive their projects -more suitable with the time frame required for completion and then have independence to complete the work given the guidelines and construction you have arranged independently merits.

3. 8 Redesigning of jobs

This is planning of already existing regular jobs into more creative or at least not really a boring one. Various ways of redesigning the jobs are as follows

  • Job rotation

It is the regular shifting of a worker from one task to some other. This ensures that the staff doesn't do the same thing over and over for a considerably long period of time.

  • Job enlargement

It is the procedure of increasing the quantity and variety of responsibilities that an individual performs ends up with jobs with more diversity. This increases the scope of the work and makes it more interesting.

  • Job enrichment

It is the vertical development of careers, increasing the amount to which the worker controls the planning, execution and analysis of the work.

  • Job sharing

It is the layout that allows several individuals to break up a traditional 40-hour-a-week job. This encourages co-operation amongst the employees.

  • Telecommuting

It identifies employees who do their home based at least two times a week on the computer that is associated with their office.

There are different ways of redesigning the work which are very like the details in 3. 1 to 3. 7.

3. 9 Retirement Planning

Companies are providing various options based on the old age planning or retirement living financial planning. Retirement financial planning identifies a assortment of systems, methods, and processes which, in their aggregate, support a family unit's (employee's) desire to accomplish a state of financial independence, such that the need to be gainfully utilized is optional. Pension planning can be considered a limited or simplified form of financial planning handling only this one purpose, as opposed to the attainment of multiple concurrent goals (e. g. college funding for children). Two often desired results of retirement living planning work are:

1. To assess a employee's present state, here specifically to indicate a probabilistic examination of readiness-to-retire given a desired retirement and lifestyle, and

2. To identify employee decisions or actions to improve readiness-to-retire.

In recent years, producers such as a financial planner or financial adviser have been open to help employees develop old age plans, where payment is either fee-based or commissioned contingent on product sale. Such arrangement may also be considered conflicting to a employee's interest to have advice rendered without bias or at cost that justifies value. Employees can now elect a do it yourself (DIY) procedure, given the advancement of a large, ever before growing body of resources proposed by the organisation. For example, pension software tools from the organisation in the form of simple calculator, mathematical model or decision support system have made an appearance with greater occurrence. With these options, the staff can make the the one that is best suited. Thus organisations have the ability to motivate their workers by offering versatile retirement solutions rather than common plan which might not be ideal for certain employees.

Besides the fore stated types of non-monetary bonuses which are common to all the employees, it is equally profitable to move further and offer other tailor-made bonuses to employees for high motivation and better job performance.

Part 4 Program of Literature

Reinforcing Culture & Worth through HR and Total Rewards

In order to reinforce and help drive the Starbucks culture, leading-edge settlement and benefits programs have been put in place. Full- and part-time lovers (who meet eligibility criteria) are offered health, dental care, and eyesight insurance, as well as access to a worker assistance program (EAP), reimbursement accounts, brief- and long-term impairment, and Working Solutions, Inc. (a source of information and referral service) to help manage work and family issues. That is very atypical of the retail industry, which generally will not pay the costs associated with providing advantages to part-time employees. Even though the costs of providing these benefits to part-time employees increases the overall cost of benefits at Starbucks, the average cost of providing advantages to a worker, vis-a`-vis your competition, continues to be lower. While this investment is significant, it pays off tremendous dividends. Folks who acquire these benefits greatly appreciate and value them and, as a result, provide customers with better service.

Second, all associates have an opportunity to become owners of the business. The business instituted the Bean Stock (i. e. , broadbased) stock option program in 1991 and the Stock Investment Plan (SIP) to acquire stock at a discount in 1995. Part-time employees who maintain the very least number of time are again qualified to receive both programs. The Bean Stock program provides commodity on an total annual basis, within an amount up to 14% of base salary, for just about any partner employed from April 1 to the finish of the fiscal calendar year, working at least 500 time during this period, and utilized with the company when your options are allocated in January. As Starbucks stock price has continued to climb, the worthiness of your options provided to employees has been significant; more important, when combined with education the company offers in accordance with creating value and profits, it has associated employees to shareholder value.

Reinforcing culture and prices is more than just a total rewards concern, however. The total rewards system, while a powerful lever to help drive the business, is but one component that can't be looked at in isolation from other key human resources levers which have been put in place. These other levers include intensive worker education, an open and highly communicative environment, and a unique program called Mission Review, which is part of any broader program called Spouse Snapshot. Partner Snapshot is a comprehensive effort targeted at getting responses from the business's partners.

Source: Wilson, Thomas, B. , Rewards That Drive POWERFUL, Amazon, NY, 1999. www. wilsongroup. com 2


The success of Starbucks and its rapid expansion can be typically related to its determined and motivated workforce. Starbucks stimulates an empowered staff culture through generous benefits programs, a worker stock ownership plan and worker training over a functional level. While starting to work for Starbucks, each staff will need to have at least a day of training.

Starbucks provides nice benefits to its employees. The benefits packages are offered to both, part-time and full-time employees and includes medical, dental care, eyesight and short-term impairment insurance, as well as paid getaway and getaways, mental health/chemical dependency benefits, a worker assistance program, a 401k cost savings plan and a stock option plan. All employees are cared for the same, e. g. the health care plan of your barista is the same as the health care and attention plan of your senior executive. On top of that they offer based mostly coverage that also contains same-sex partners. And will be offering all these benefits the management of Starbucks attempts to achieve an increase in employee devotion and an inspired attentive service to the client. Due to the fact that employees stay enthusiastic, Starbucks has a relatively low staff turnover.


strategies has Starbucks used in order to gain the inspiration and commitment of its employees? With reference to appropriate theories and models provide a reasoned dialogue of the way the company can ensure the levels of motivation and dedication that it needs to achieve the future.

Starbucks has used lots of ways to get commitment and desire from its employees. To be able to attempt its technique for mass enlargement, it was vital to provide employees with attractive career so as to attract and maintain high quality personnel. Examples of the ways in which Starbucks determined included relatively high salary, health, oral and perspective insurance, stock options, fitness programmes, child and elderly care, flexible working options and staff social groupings, training and development, staff surveys and feedback, equality, rewards and discount rates, encouragement of innovativeness and a amount of self- managed teams. During the first stages of the organisation's expansion this strategy appeared very successful. Staff turnover was significantly less than one-third of the retail industry average and absenteeism was low. Employee satisfaction and retention were at high levels. However, as the business's expansion insurance policy grew and other retail companies realised the value of worker satisfaction, these strategies have were less effective. Starbucks must therefore review its drive and commitment procedures.

One way in which this could be achieved would be by relating performance and pay, backed by the use of appraisal systems to assess performance and send out rewards or punishments correspondingly. Goal theory helps this view of inspiration stating that specific, challenging goals and feedback rises desire (Armstrong and Stevens, 2005:75). However, this approach can be criticised. Kohn (1993) is convinced that money achieves only temporary compliance somewhat than commitment and destroys cooperation by forcing visitors to compete for rewards (Kohn, 1993 as cited in Cornelius, 2001). Needs theory would also cit e this approach: "It is quite true that man lives by bakery exclusively - when there is absolutely no bread. But what happens to man's desires when there is enough of bread and his abdomen is chronically filled up?" (Maslow, 1945 as cited in Crainer, 2006:165). Considering that employees are currently used to a system that is supportive rather than punishing, instigating this process would likely be counterproductive and additional lower degrees of motivation and commitment. Furthermore, it might be costly, requiring superior levels of dimension and enforcement including the appraisal system. Starbucks needs to minimise cost as concerns already can be found and may a ffect sustainable competitiveness.

Another far better strategy might therefore be to further develop the real human resource programme and show Starbucks' commitment to its employees' welfare. The fact that some employees have been hoping to gain union representation shows that they desire a more formal and powerful source with which to express themselves. This may be explained through expectancy theory which helps bring about the view that behavior results from the expectation that a specific behaviour will lead to a certain performance and set of rewards (Buchanan and Huczynski, 2006 :252).

It parallels the Customer Snapshot program aimed at getting comments from customers. Partner Snapshot includes company-wide studies, Objective Review, and a relatively new telephone-based review system on key company and partner-related issues.

Mission Review is a formal program that was setup in 1990 to ensure that the business is living up to its mission affirmation. Every location has comment credit cards addressed to the Mission Review team that employees use when they see decisions and final results that not support the mission statement. Relevant managers have fourteen days to respond to the staff and the problem. Also, a cross-organizational team complies with to review worker concerns, seek solutions, and provide a report at the wide open forums. Not only does this keep carefully the mission affirmation alive and well; it reinforces the openness of the culture.

All partners employed to work in a retail position receive a minimum of 24 hours of training throughout their first month with the business. This training includes an orientation to the business, customer support skills, and the specialized skills necessary to work in the stores. An intensive management-training program also is out there, focusing on control skills, customer support, diversity, and career development.

Open communication is also area of the norm at Starbucks. Open up forums, held several times a year, update companions on happenings within the business, explain the financials, and allow lovers to ask questions of senior management and provide insight to them as well. Also, a regular employee newsletter is publicized that also talks about developments within the company, plus a column on benefits and possession programs.

Part 4 Summary and Conclusions

- bottom line of linkage in body and research Q (bottom on 3 objetive to explain)

- business applications : the best practice

- suggest area for even more search

How can the business continue to reinforce and live its strong culture and value system as it gets more diverse, spread out, and bigger? As Starbucks grows larger, how can it maintain a tiny company feel? How do programs such as Bean Stock, which have been extremely successful, maintain their vibrancy and stay aligned with the changes available and the needs of employees?

Providing solutions to these questions in ways that continue to reinforce the company's culture and values and demonstrate determination to adding employees first, is where HR and total rewards at Starbucks will be focusing today and into the forseeable future. If the future is anything like the past, stay tuned for a few exciting and unique innovations. Source: Wilson, Thomas, B. , Rewards That Drive POWERFUL, Amazon, New York, 1999. www. wilsongroup. com 4



Armstrong Michael. (2002) Employee compensation. 3rd edn. London: Chartered Institute of Personnel and Development


Partingon, D. & Harris, H. (1999), "Team role balance and team performance: An empirical study", Journal of Management Development, 18(8), pp. 694-705


About. com (2010) Job Decisions: Self Diagnosis [Online] Available at http://careerplanning. about. com/od/selfassessment/a/self_assessment. htm (Accessed 4/11/2010)

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