Human Resources Management

Human Resources Managementat Starbucks

Class Project Adward, Agustini, Andre, Nara

West Coast University-Surabaya-Indonesia

Starbucks Mission Statement

• To establish Starbucks as the premier purveyor of the finest coffee in the world, while maintaining our uncompromising principles while we grow.

Starbucks culture

• Third space (after home & work)

• Employee focus

• Corporate social responsibility

6 Principles

• Develop enthusiastically satisfied customers all of the time

• Contribute positively to our communities and our environment

• Recognize that profitability is essential to our future success

• Provide a great work environment and treat each other with respect and dignity

• Embrace diversity as an essential component in the way we do business

• Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.

Starbucks Foundation

• Created by the chairman of Starbucks, Howard Schultz.

• Dedicated to creating hope, discovery and opportunity in communities where Starbucks are located.

HRM at Starbucks

• Starbucks realized early on 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.

• Starbucks relied on its baristas and other frontline staff to a great extent in creating the ‘Starbucks Experience' which differentiated it from competitors

HRM at Starbucks

• Starbucks hired people for qualities like adaptability, dependability and the ability to work in a team.

• The company often stated the qualities that it looked for in employees upfront in its job postings, which allowed prospective employees to self-select themselves to a certain extent.

• Having selected the right kind of people, Starbucks invested in training them in the skills they would require to perform their jobs efficiently.

• Starbucks was one of the few retail companies to invest considerably in employee training and provide comprehensive training to all classes of employees.

Important things in HRM

• Compensation• Hiring• Performance Management• Organizational Development• Safety• Wellness• Benefits• Employee Motivation• Communication• Administration• Training

HRM

• Recruitment of employee

• Management of employee

• Providing direction for employee

Employee Motivation :

• Health Insurance(Manager level up)

• Flexible work schedule

• Treat people with respect & dignity

• Employee appraisal

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STARBUCKS HRM RECIPE

Competitive Capabilities

• The Competitive Capabilities are the cost, quality, time and flexibility dimensions of competitive priorities that a process or value chain actually possesses and is able to deliver.

Cost as aCompetitive Capability

– Low Cost means delivering a service or product at the lowest possible cost to the satisfaction of the customer.

• Top Quality: Delivering an outstanding service or product.– Considerable interaction with the customers

may be required to determine what that means.

• Consistent Quality: Producing services or products that meet design specifications on a consistent basis.

Quality as aCompetitive Capability

Time as aCompetitive Capability

• Delivery Speed is quickly filling a customer’s order.– Lead Time is the time between receipt

of an order and filling the order.• On-Time Delivery means meeting

the delivery time promises.• Development Speed is quickly

introducing a new service or product.• Time-Based Competition is a

strategy that focuses on development speed and delivery speed.

• Customization means satisfying the unique needs of each customer by changing the service or product designs.

• Variety involves handling a wide assortment of services or products efficiently.

• Volume Flexibility requires accelerating or decelerating the rate of production quickly to handle large fluctuations in demand.

Flexibility as aCompetitive Capability

Training Strategies Adopted• All class of employees• Field like retail business, coffee making skills and

create a positive customer experience• Management trainees extended between 8-12

weeks• Fields like store operations, managing people,

training people and Information System

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“Treat people like family & they will be loyal & give their all”

starbucks keywords

Starbucks rules

• Training employees to perform job efficiently

• First Impressions

• Your special Blend

• Professional Baristas

Baristas Principles• Making a connection with customers at the

store level is a key component of Starbucks’s strategy, and particular emphasis is put on the relationship the customer has with the barista.

• Each barista receives full training in customer service and basic retail skills, as well as “Coffee Knowledge” and “Brewing the Perfect Cup” classes.

• Baristas are taught to anticipate the customer’s needs, and to make eye contact while carefully explaining the various flavors and blends.

Starbucks Communication Skills

• Maintain & Enhance Self Esteem

• Listen & Acknowledge

• Ask for help

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HR-Basics

• To have right people hiring the right people

• Adaptability, dependability and ability to work in a team

• Employees upfront in job postings

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• Human Resources– Employee/Company culture. Starbucks values its

employees, and shows this through employee benefits.

– Employee training program.

Core Competencies

Conclusion

• Starbucks has a high standards in HRM (as one of the biggest retail companies).

• All the frontline staffs are important to create the ‘Starbucks experience’

Thank You