Human Resources Management at 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

Free template from www.brainybetty.com Employee Motivation : Health Insurance(Manager level up) Flexible work schedule Treat people with respect & dignity Employee appraisal 9/22/2018 Free template from www.brainybetty.com 10 10

Free template from www.brainybetty.com STARBUCKS HRM RECIPE Cocktail with an awesome kick that elevated Starbucks. Blended Scientific Management Human Relations App. 9/22/2018 Free template from www.brainybetty.com 11 11

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

Quality as a Competitive Capability 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.

Time as a Competitive 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.

Flexibility as a Competitive Capability 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.

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 9/22/2018 Free template from www.brainybetty.com 17 17

“Treat people like family & they will be loyal & give their all” starbucks keywords 18

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 9/22/2018 Free template from www.brainybetty.com 21 21

Free template from www.brainybetty.com HR-Basics To have right people hiring the right people Adaptability, dependability and ability to work in a team Employees upfront in job postings 9/22/2018 Free template from www.brainybetty.com 22 22

Core Competencies Human Resources Employee/Company culture. Starbucks values its employees, and shows this through employee benefits. Employee training program.

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’

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