1. • The most famous chain of retailed coffee shop around
the world with 4000 branches word wide.
• Known for its customer services and employee
satisfaction.
• Low employee turnover rate and high profit
performance

2. ERG THEORY
Individual growth in Starbucks provides proper motivation for
employees, but how? Based on the ERG (Existence, Relatedness
and Growth) theory by Clayton P. Alderfer, every individual has
their own growth needs such as self-esteem and self-
actualizations. Growth needs includes desires to be innovative,
productive and effective in performing their tasks. In other words,
if an organization provides growth needs to their employees, then
these employees will have proper motivation in order to work
effectively. Growth needs are constantly provided by Starbucks to
their employees, specifically training and education. Starbucks’
training and education includes “coffee education”, “learning to
lead” and “business and communication”.

3. MC CLENNAND THEORY
Based on McClelland’s Theory, achievementis one of the means
for proper motivation and achievers want constant feedback. If
employees have increasingly levels of ability, therefore they
should be recognized such as providing them rewards. Rewards
will make employees realized that they have achieve something
since these serve them as feedback. Starbucks provides eighteen
recognition programs, from Mug Award to the Howard Behar
Award and bonuses, in order to promote achievements to their
“partners” (employees).
 Need for Achievement
 Need for power
 Need for Affiliation

4. EQUITY THEORY
Another motivational principle of Starbucks is called
equity. Equity means satisfaction of an individual based on
how “fair” they are treated by their employers during their
work. In other words an employee must feel that they are
treated fairly in order to have proper motivation and
satisfaction. Starbucks usually consider their employees
not just employees but also “partners” to their business. In
other words, Starbucks ways of treating their employees as
partners are through giving enough training and education
and providing generous benefits and rewards. Apart from
that, Starbucks offers excellent working place for their
“partners” and they usually treat their partners with respect
and dignity – a part of their ethics program (Starbucks.com
2008).