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Assignment 5

In: Business and Management

Submitted By kaoteinc
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Starbucks Human Resource * Recruiting and Hiring
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. Consequently, the company's human resource policies reflected its commitment to its employees. Starbucks relied on its baristas and other frontline staff to a great extent in creating the “Starbucks Experience' which differentiated it from competitors. Therefore the company paid considerable attention to the kind of people it recruited. Starbucks' recruitment motto was "To have the right people hiring the right people."
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, including part-timers. * Human resources strategy
Human Resources Strategy: Starbucks believes that the Company

is in the “people development” business as well as in the coffee business.

As stated in its mission

“Provide a great work environment and treat each other with respect and dignity”,

Starbucks realizes that one of the most important resources contributing to

success is their employees or “partners” as referred by the Company. Starbucks is attempting to

imbed its values in the Company culture. They use these values to give employees a sense of

meaning to their work even if it is just pouring a cup of coffee. The coffee chain provides

medical, dental, and vision coverage to all employees, even including part-timers. The part-time

partners are also eligible for the company’s stock program. The purpose is to instill in its

partners a sense of purpose, commitment, loyalty, and enthusiasm. Expectedly, what Starbucks

benefits are the reduced recruiting and training costs, and added value for the company.

* The strength of human resources

With a positive strategic of human resources, the company is going to grow.

The primary reasons that most corporations are going international are

strategic growth and profits. Starbucks is not an exception. Part of the advantage

of having an international chains or affiliates is that a strong foreign presence helps

increase brand recognition and may also boost a company’s domestic business.

Although Starbucks expands internationally to increase market penetration

for those reasons, it can expand to track its customers who travel around world

especially in Asia. The more locations Starbucks has, therefore, the more

loyalty and familiarity it can build among its existing and potential customers. * The weakness Human resources
Though it is an undeniable fact that Starbucks is one of the most popular

workplace that majority of job seekers want to work for, the company is not totally

immune to human resource issues that most large companies face such as sexual

harassment. Though Starbucks set a policy and rule for such issues described below

as overtime violation and sexual harassment, the problem detected is partly due to

lack of communication.

a. Overtime violation

Starbucks has positioned itself as a socially responsible corporate, but citizen

has filed a pair of lawsuits accusing the company of cheating its management and

assistant managers out of overtime pay. Starbucks faces lawsuits filed under

California’s unique labor laws, challenging the exempt status of managers and

assistants managers.

Under state law, employer s must pay overtime unless an employee qualifies for an

exemption, which, among other things, requires that he spend more than 50% of his

time on management duties. It’s so apparent to anybody who walks into a

Starbucks that the managers are doing the same work as the subordinates, said

Dennis Moss, a Santa Monica lawyer who is representing tow managers in a suit filed

in Los Angeles county superior court. If you are out there making coffee or cleaning

a cappuccino machine, it’s not managerial time. It’s not exempt.

b. Sexual harassment

Starbucks, meanwhile, is gearing up its defense for a lawsuit filed by three

female employees who insisted that they were sexually harassed, then faced

retaliation for reporting the complaints. However, the company reported that the

allegations were not on legitimate basis.

* Distinctive competences
Starbuck’s distinctive competence in store ambience and innovative coffee drinks has propelled it to the forefront among coffee retailers. What Starbucks stands for is not just a good cup of fresh coffee. Starbucks is about the passion for the soul of people, quality product, excellent customer service, and the experience and understanding of the culture of coffee. Starbucks has so far enjoyed its unprecedented achievements in coffee chain industry, thanks to the well-brewed, mixed and served strategies of 5P, people, product, place, promotion, and price.


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