Essay Sample on Starbucks' Human Resource Management Practices

Introduction

The policies and practices of human resource management are the most important of all the other management activities. The reason is that they are the tasks carried out to attract and maintain a workforce that is effective in the organization. The human resource management at Starbucks is well known for its culture of treating individuals with dignity and respect. Employees in Starbucks are treated as part of the organization and as vital elements that help the company thrive. According to the report given by the job posting websites and employee rankings, working at Starbucks is friendly because the organization has created a culture of open communication. Open forum events are frequently organized by the senior management that is meant to solve employees' problems in the organization.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

The company embraces diversity, offering its employees who are referred to as partners various benefits. The benefits given to employees include vacation, tuition reimbursement, medical care, and stock options. Starbucks' human resource management team believes in social consciousness, where they involve in various volunteering works within the community (Doz, 2019). They also hire individuals not based on their ability in customer satisfaction and cafe work but to inspire and nurture the human spirit. At Starbucks, employees are provided with various training programs that equip them with knowledge of the values of the company. The knowledge obtained from the training programs enables employees to interact well with customers, which in turn creates a hospitable environment. The practices of human resources at Starbucks are frequently developed to strengthen the relationship between the employees and the management. By doing this, the employees feel connected to the company, and this facilitates the entire growth of the business.

Starbucks' Strategy

The management strategy in Starbucks has enabled the company to maintain a competitive advantage in the market of eateries and coffee shops. The policy enabled Starbucks to diversify its business and introduce new products into the market despite a downshift in the food industry. Product innovation is one of the critical elements of Starbucks' strategy that have enabled the company to keep its customers. Launching the pumpkin spice latte increased the market share of Starbuck, and this gave them a competitive advantage over its competitors, Dunkin' and McDonald's. Starbucks' flexibility has enabled it to maintain its popularity over time and to capitalize on the changing tastes and preferences of the consumers.

The ability of Starbucks to be flexible and introduce products such as almond milk and coconut milk allowed it to survive the tough times in the china market (Wood, 2018). Another critical element of Starbucks' strategy is expanding its stores in regions that are backward economically. The company believes in the culture of social consciousness which led to the launching of a program that supports economic development. The ability to participate in social change is not only an opportunity to increase the competitive advantage of the company, but it also creates a reputable image of the business.

Starbucks' Technology and Innovation

Starbucks has innovated various ways of understanding its consumers, and this has enabled the company to build and maintain an exemplary global brand that has resulted in customers all over the world. A standardized look of Starbucks' brand has enabled the company to offer a relaxed and pleasurable customer experience. The need to provide quality customer experience as well as expand the customer base resulted in digital presence and social media. Starbucks brand has an active Instagram, Twitter and Facebook page to engage better with consumers. Collaborating with Duracell Powermat enabled the company to introduce digital innovation in its operations, which increased the customers' experience (Subtil de Oliveira, Echeveste & Cortimiglia, 2018). With digital innovation, Starbucks invested heavily in mobile marketing with an app for paying for the products offered and earning and redeeming points.

Mobile marketing has increased the customer base of Starbucks where more than nine million are using this app. The promotion strategy applied by the company is unique. The company rarely advertises on magazines, billboards and newspapers instead it focuses more on word-of-mouth methods (Wahyuni, 2019). Starbucks believes in physical communication with consumers, which has actively developed the company's brand. As the company expands its operations, several changes are being made in the organizational structure. There is constant innovation in the company that has enabled it to improve the existing services and products as well as invest in other developments. Starbucks is also focusing on developing channels of communication with consumers and implementing strategies that enhance efficiency.

Conclusion

In conclusion, human resource management practices are essential in creating a better organizational culture. A productive workforce in the organization not only creates a competitive advantage but also increases the chances of success of a company. A mindset of innovation and the ability to position the company's stores will result in improved customer experience. Without doubt, Starbuck is a thriving worldwide marketer with enough expertise in penetrating and expanding itself in new markets. Increased expansion and growth will require the company to continually reassess itself to have extensive knowledge of the preferences of the consumers.

References

Doz, Y. (2019). Fostering strategic agility: How individual executives and human resource practices contribute. Human Resource Management Review, 100693. Doi: 10.1016/j.hrmr.2019.100693

Subtil de Oliveira, L., Echeveste, M., & Cortimiglia, M. (2018). Critical success factors for open innovation implementation. Journal of Organizational Change Management, 31(6), 1283-1294. Doi: 10.1108/jocm-11-2017-0416

Wahyuni, S. (2019). The influence of product innovation, brand image, and physical evidence to purchase decision and WOM of Starbucks in Jakarta. Middle East J. Of Management, 6(2), 123. Doi: 10.1504/mejm.2019.097812

Wood, R. (2018). Visionary customers: source of long-term competitive advantage. Strategy & Leadership, 46(3), 29-36. Doi: 10.1108/sl-02-2018-0014