Brief Summary of the Case
Starbucks Corporation has managed to redefine the concept of human resource management. In the 1990s, Starbucks realized that “motivated and dedicated human resources were critical to the success of the company” (Regani 2005, p. 4). This knowledge led to new HR policies and practices that eventually supported the firm’s expansion strategy. The company’s recruitment motto has been “to have the right people hiring the right people” (Regani 2005, p. 4). The outstanding qualities targeted by the firm include dependability, teamwork, and adaptability (Regani 2005). This framework has continued to support the company’s human resource needs.
Analysis of Starbucks HR Practices Using Maslow’s Theory
Theories of motivation describe several issues that can be used to achieve the best business goals. Experts believe that a motivated workforce will focus on targeted business objectives. Abraham Maslow’s hierarchy of needs is a powerful motivation theory that can analyze the major strategies used by Starbucks to empower its employees. This theory argues that “human beings have a unique pyramid hierarchy of needs that must be satisfied” (Koltko-Rivera 2006, p. 309).
People will climb the pyramid when the lower needs have been met. The pyramid has both growth and deficiency needs. Deficiency needs such as safety and psychological expectations must be satisfied before an individual focuses on growth. The theory has been applied profitably in different working environments. Starbucks is a successful firm that has followed different aspects of the theory to empower its employees.
According to the theory, deficiency needs can be addressed by providing job securities, proper remunerations, medical benefits, and positive working environments (Koltko-Rivera 2006). As well, companies can address the problems affecting their employees. The theory also focuses on the best approaches to promote social interaction. For instance, companies “can improve the level of employee participation, create team spirits, and embrace different social activities” (Koltko-Rivera 2006, p. 312). Praises and awards have been used in different companies to promote self-esteem. Training is also given to workers to improve their self-esteem. The last segment of the pyramid is self-actualization. This need is fulfilled through the provision of challenges and creative ideas. Training is also a useful tool for addressing these needs.
Maslow’s hierarchy of needs theory can be used to describe how this company has managed to motivate its workers. To begin with, a positive organizational culture has defined Starbucks operations. The firm addresses various employees’ psychological needs. The welfare of the workers is given priority to promoting the best practices. The company’s core objective has been “to provide a great working environment that treats everyone with dignity” (Regani 2005, p. 6). Concepts of partnership, equality, and togetherness have always supported the firm’s goals. The concept of equality ensures that the needs of more employees are addressed. The company also promotes humility.
The small company concept has been maintained over the years despite the firm’s rapid growth. This move is critical towards supporting the entrepreneurial spirit of different workers. Camaraderie and informality have become common because of this working atmosphere (Regani 2005). Workers interact positively with their customers thus delivering the best outcomes. Awards and open forums are embraced to empower more workers. Such individuals are involved in different decision-making processes. Teamwork has also been encouraged thus delivering the best results.
The firm has been on the frontline to address most of the employees’ growth needs. Starbucks also established several training centers for its employees. The training programs encourage more “workers to support Starbucks’ service principles and philosophy” (Regani 2005, p. 4). Such aspects have always been critical towards promoting the company’s success. The training sessions also offer the major Star Skills that redefine the interpersonal relationships of the company (Regani 2005). These skills “include ask for help, maintain and enhance self-esteem, and listen and acknowledge” (Regani 2005, p. 5). Managers at Starbucks also receive adequate training to ensure the company achieves most of its objectives.
The case study shows that majority of the employees have always appreciated such training programs. This move indicates that such workers are important and valuable to the company. The practice supports the concept of employee growth. Work-life balance has been embraced by Starbucks for several years. The program promotes the mental, spiritual, and physical wellbeing of every worker (Regani 2005).
According to different analysts, the company gives the best wages in the industry. The “pay-per-hour in the company exceeded the minimum wage outlined by different state regulations” (Regani 2005, p. 5). Starbucks has also been offering comprehensive and timely stock options to its workers. The employees also receive comprehensive health perks and benefits. The company focuses on different issues such as eyesight and dental health. Howard Schultz is a celebrated leader who developed a powerful employee-ownership program at Starbucks. For instance, Starbucks ‘ Bean Stock Plan offered stock options to many part-time employees. The company also treats its workers as partners (Regani 2005).
The firm’s Working Solutions program has continued to present numerous benefits to different employees. The program has managed to address the needs and wellbeing of many workers. For instance, the program made it easier for Joan Moffat to get assistance for her sick grandmother (Regani 2005). This program complements the firm’s work-life balance thus delivering quality to different stakeholders. The ‘Partner Connection’ program continues to bring together individuals with similar needs and interests. The employees also “receive discounts on various Starbucks branded merchandise” (Regani 2005, p. 6). Such programs and approaches have continued to retain top talent at the company. The organization also finds it easier to attract new workers who can support its goals and objectives. The individuals work together in an attempt to support the company’s vision.
Concluding Remarks
Maslow’s hierarchy model shows clearly that Starbucks focuses on the needs of its employees. According to this model, wages are salaries that should be considered as critical aspects of people’s deficiency needs. Starbucks offers above-average wages as a guarantee of security (Tay & Diener 2011). Bonuses, rewards, and other benefits fulfill the changing needs of different workers. An atmosphere of praise and encouragement has emerged due to the small company concept. These strategies have made it possible for Starbucks Corporation to motivate its employees. The HR department has found it easier to address most of the issues affecting its workers and customers. Consequently, Starbucks has been named one of the best firms to work for (Regani 2005). The employees are always satisfied and contented thus decreasing the level of turnover.
List of References
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Koltko-Rivera, M 2006, ‘Rediscovering the Later Version of Maslow’s Hierarchy of Needs: Self Transcendence and Opportunities for Theory, Research, and Unification’, Review of General Psychology, vol. 10, no. 4, pp. 302-317. Web.
Paryani, K 2011, ‘Product quality, service reliability and management of operations at Starbucks’, International Journal of Engineering, Science and Technology, vol. 3, no. 7, pp. 1-14. Web.
Regani, S 2005, ‘Starbucks’ Human Resource Management Policies and the Growth Challenge’, ICMR, vol. 1, no. 1, pp. 1-12. Web.
Tay, L & Diener, E 2011, ‘Needs and subjective well-being around the world’, Journal of Personality and Social Psychology, vol. 101, no. 2, pp. 354-365. Web.