Learning Outcome 1
“Organizational culture is a system of shared assumptions, values, and beliefs, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they dress, act, and perform their jobs. Every organization develops and maintain behavior of the members of the organization.”(Study.com,2017). Starbucks unique organizational culture ensures that both customers and employees are completely satisfied, which makes their organization do exceptionally well.
Starbucks mission statement focuses on treating every employee with respect and dignity. All employees working at the Starbucks organization are covered under the company’s compensation plan and are offered health insurance. Starbucks claims that their secret is to not look at spending more money in their HR budget as a loss but as an investment, which is why they always enroll their employees in new training courses and workshops. Shlutz believes that treating employees well should not be viewed as extra costs to the business but instead as an investment to the business. Former Starbucks President Howard Behar believed that if employees are put first, they would put the customers first. Therefore, Behar developed the servant leadership approach, “in this approach, leaders, managers and supervisors emphasize support for subordinates to ensure that everyone grows in the company” This approach would encourage strong relationships between employees. This leads to Starbucks’ second approach, the relationship-driven approach, “in this approach, all baristas display a warm friendly relationship with each other, this attitude would extend to costumers and they would get treated with warmth as well, encouraging them to return to the establishment.” Another feature to the company’s organizational culture is Collaboration and Communication; this is where Starbucks encourages synergetic efforts through effective communication, for example, the baristas at Starbucks have to communicate and work together in order to complete a customer’s order, encouraging team work and strong relationships. In some companies, employees have a hard time speaking to their superiors because they are afraid, therefore, if they have complaints or even ideas to share with their superiors, it would go unvoiced, making the employees feel undervalued and uncared for, which would discourage them from their jobs, making their work habits lazy or care less. Starbucks President Behar introduced open forums to encourage employees to speak to their managers, supervisors and leaders, making the employees feel more comfortable. Employees would then feel free to voice their opinions and concerns, which will help managers improve their work life, which would improve customer service. This lead to employees feeling appreciated and as if their opinions matter, which would lead to happier employees with excellent work habits. Starbucks believes that happy employees would lead to happy customers. Happy customers would lead to customer loyalty , this explains to us why Starbucks is so successful. The motivational theory that defines how Starbucks motivates its employees is Abraham Maslow’s Theory of Motivation that states the need for physiological, safety, social, esteem and self actualization.
According to Brandon & Seldman, 2004, Organizational politics can be informal and sometimes a way to increase power or achiever other objectives within the business. In order for companies to get employees to enjoy their jobs but also work hard, they must develop a politicial culture that is easy to understand. They must make the policies clear and understandable to all employees. As mentioned before, Starbucks believes in treating all employees equal, therefore there would rarely be any conflict between them, therefore they have high productivity. According to Dubrin P, techniques used of gaining power in the organization can be unethical if it is practiced unreasonably and with bad intentions. According to American sociologists John French and Bertram Raven, there are five sources of power, coercive, referent, legitimate, expert and reward power. Coercive is the belief that one should be punished for non compliance. The purpose of coercive power is to aid with the way employees act within the organization and ensure that they follow all the rules and regulations. Referent power refers to the power one gains from having personal connections with managers and people of a higher status. Reward power comes from promotions raises etc. Expert power comes from being an expert or having knowledge in a particular area. This type of power often leads to promotions in the organization, giving him/her legitimate power. Legitimate power is type of power depends on the position a person holds in the organization. The higher the position the employee holds in a firm’s hierarchy is the power he/she will possess. Within the Starbucks’s organization, legitimate power can be found. Legitimate power pertains to the power based on the organization’s structural position wherein formal authority resides. Managers should not threaten their employees by telling them they would be fired or reprimanded, that type of leadership is known as negative power. In Starbucks, managers think of their employees as equals and treats each employee with respect therefore managers may not be strict with employees, so negative power does not exist within this organization. In this organization they believe that they should all work as one to ensure total customer satisfaction. They are all treated with dignity and respect regardless of rank or power within the organization. On studying and learning about the Starbucks organization, it is clear that they have a very inspiring and supportive culture. The customer service industry in Trinidad is not known for being the friendliest; many may say that it is actually very poor. An individual who is accustomed to this may enter the Starbucks work force with this attitude, eventually he/she would have to conform to the new environment and culture of the organization because of the rules and regulations as Starbucks is an organization that prides itself on excellent customer service. An employee with a negative attitude would not be tolerated, therefore the individual would have to forget what they are use to and get adjusted to Starbucks’ warm and friendly culture. This can have a great impact on them because after carrying on in a specific manner it would become a norm to them and they may continue to carry on in the same manner outside of the work place, creating a better society. Starbucks sends their employees to training seminars and workshops to ensure that they are always up to date and familiar with the standards and ethics of their organization. An individual’s behavior would change depending on how much power they are given. If an employee moves up in the organization, he/she will not act the same as they were before. For example, if a barista gets promoted to a manager, their attitude and behavior would change, they would start demanding more respect and acting with more authority and in a boss like manner.
Starbucks encourages team work within their organizations. Trinidadians tend to not work well in teams due to the fact that everyone likes having their own way. Starbucks’ order process requires all employees to work together in order to fulfill the customer’s order. Trinidadian employees would have to learn and adapt to working well in teams in order to keep working at the establishment.
Learning Outcome 2
According to business dictionary, motivation is defined as the internal and external factors that spark desire within people to be interested in a job or a goal. Many organizations in Trinidad fail to recognize the importance of having motivated employees, which is why we have such a bad reputation in the field of customer service. Motivated employees can lead to increased productivity and a better quality of work therefore a higher level of output and saving the company time and money on re-making products or re-doing work. It would also lead to employee satisfaction; employee satisfaction keeps workers happy, happy workers would lead to happy customers. If employees are happy in their jobs this would encourage loyalty towards their organization and if customers are happy, this would also encourage their loyalty towards the organization. Motivated employees would also have a lower absenteeism level, as they would actually enjoy coming to work.
According to Abraham Maslow and his hierarchy of needs, as an individual’s needs is accomplished, another needs becomes more supreme and this leads to a continuous state of motivation. Another famous quote by Maslow was, “One can choose to go back toward safety or forward toward growth. Growth must be chosen again and again; fear must be overcome again and again.” Therefore Maslow strongly believed in growth and that with growth, we must change, therefore our needs would no longer be the same, this is why Maslow created the Hierarchy of needs.
Maslow’s hierarchy of needs is a motivational theory in psychology comprising a five tier model of human needs, often depicted as hierarchical levels within a pyramid. Maslow stated that motivated people are motivated to achieve certain needs. These needs are, biological and physiological needs such as air, water, shelter and warmth: Safety needs, such as law, order, stability, thirdly: A sense of belongingness, this includes the need for friendship, intimacy and trust. Fourthly, Esteem needs, which Maslow categorized in two theories,(i) esteem for oneself (dignity, achievement, mastery, independence) and (ii) the desire for reputation or respect from others (e.g., status, prestige). Lastly, Self Actualization needs, this includes, realizing ones true potential, a desire “to become everything one is capable of becoming.
As the newly appointed manager of Starbucks I would use Maslow’s hierarchy theory because it would give an understanding of what employees needs are and therefore, I would know what would make the employee want to work hard at his/her job. A young person entering the work force for the first time, would only be interested in physiological needs, such as a good salary and a stable income, however in ten years time, his/her needs would change. Employees would start looking for more benefits, if it is not being provided the employee would not be satisfied at their job and would have nothing to work towards, which is why Maslow’s theory is important. As the Brand Manager of Starbucks I would ensure that I meet all five needs of the individual to keep them motivated in order to ensure customer satisfaction and a high level of production. Enforcing this theory would also give employees a feeling of importance, as the employer would not only be providing monetary benefits but also non-monetary benefits.
Clinical psychologist, Fredrick Herzberg believed that job satisfaction and job dissatisfaction are not opposites, but instead the opposite of satisfaction is no satisfaction and the opposite of dissatisfaction is no dissatisfaction. Herzberg believed that remedying the causes for dissatisfaction will not create satisfaction. For eg. if you have an unsafe working environment, giving an employee a raise will not make him/her satisfied. Therefore he related job satisfaction to five motivator factors known as: achievement, recognition, work itself, responsibility and advancement. He also related five job dissatisfaction factors, known as, company policy and administration, supervision, salary, interpersonal relationships and working conditions. As the newly appointed Brand Manager of Starbucks I would have one-on-one conversations with each employee within the organization and identify what satisfies them and what dissatisfies them as different people would be motivated by different things. This would also help to build an interpersonal relationship between the employees and I, the Brand Manager, giving them a sense of importance and belonging in the organization, satisfying one of the Maslow’s hierarchy needs.
Basically Victor Vroom believed that employees will work harder if their actions will get them an outcome that they desire. ‘Efforts lead to performance and performance leads to productivity .” As manager of Starbucks I would give the employees something to work towards, such as an employee of the month reward, giving gift cards or vouchers or a bonus at the end of that month. If the employees have something to work towards, they would work harder. Vroom’s theory was based upon three beliefs: Valence, expectancy and instrumentality. This theory highlights the importance of matching rewards for effort on an individual. Therefore I would have to have one-on-one conversations with employees to find out what motivates them, as I would have done using the Herzberg theory. Last but not least, the forth theory I would use to motivate my organizational staff is Adam’s Equity Theory. Adam’s equity theory states that an employee should be rewarded for as much as he/she works. Much like the five levels of needs determined by Maslow and the two factors of motivation by Herzberg, the Adams’ Equity Theory of motivation states that positive outcomes and high levels of motivation can be expected only when employees feel like their treatment is fair.
In all theories, I as the manager would have to build relationships with the employees, in order to satisfy their sense of belonging in the organization and to gain an insight on what truly motivates them. Knowing what truly motivates them would tell me what I would have to make available for them to work towards and to know what would make them satisfied at their job at Starbucks. If we don’t have satisfied employees, we would not have satisfied customers. Apart from giving out an employee of the month award, I would also give a reward to the employees that work the best in teams and gets along well with their coworkers, in order to motivate them to work well in teams. Recently Starbucks CEO Howard Shclutz announced a pay raise of at least 5% to all employees, in a way to make employees feel appreciated.
To conclude, I would like to add my personal views and share my own Starbucks experience. I truly believe that the uplifting work culture has spread to the employees of Trinidad and Tobago. Every other weekend I have been to Starbucks located in the South Park Shopping Complex, the employees always greet me with a smile, also, as they write your names on your cup, the employees greeted me by my name on entering and no longer have to ask what name to write on the cup. I truly do feel a sense of important in the Starbucks Organization, therefore I stand by the methods of Howard Schlutz.