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Human Resources Management


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Human Resources Management at Starbucks

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Human Resources Management

  1. 1. Human Resources Management at Starbucks Class Project Adward, Agustini, Andre, Nara West Coast University-Surabaya-Indonesia
  2. 2. Starbucks Mission Statement <ul><li>To establish Starbucks as the premier purveyor of the finest coffee in the world, while maintaining our uncompromising principles while we grow. </li></ul>
  3. 3. Starbucks culture <ul><li>Third space (after home & work) </li></ul><ul><li>Employee focus </li></ul><ul><li>Corporate social responsibility </li></ul>
  4. 4. 6 Principles <ul><li>Develop enthusiastically satisfied customers all of the time </li></ul><ul><li>Contribute positively to our communities and our environment </li></ul><ul><li>Recognize that profitability is essential to our future success </li></ul><ul><li>Provide a great work environment and treat each other with respect and dignity </li></ul><ul><li>Embrace diversity as an essential component in the way we do business </li></ul><ul><li>Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. </li></ul>
  5. 5. Starbucks Foundation <ul><li>Created by the chairman of Starbucks, Howard Schultz. </li></ul><ul><li>Dedicated to creating hope, discovery and opportunity in communities where Starbucks are located. </li></ul>
  6. 6. HRM at Starbucks <ul><li>Starbucks realized early on that motivated and committed human resources were the key to the success of a retail business </li></ul><ul><li>Therefore the company took great care in selecting the right kind of people and made an effort to retain them. </li></ul><ul><li>Starbucks relied on its baristas and other frontline staff to a great extent in creating the ‘Starbucks Experience' which differentiated it from competitors </li></ul>
  7. 7. HRM at Starbucks <ul><li>Starbucks hired people for qualities like adaptability, dependability and the ability to work in a team. </li></ul><ul><li>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. </li></ul><ul><li>Having selected the right kind of people, Starbucks invested in training them in the skills they would require to perform their jobs efficiently. </li></ul><ul><li>Starbucks was one of the few retail companies to invest considerably in employee training and provide comprehensive training to all classes of employees. </li></ul>
  8. 8. Important things in HRM <ul><li>Compensation </li></ul><ul><li>Hiring </li></ul><ul><li>Performance Management </li></ul><ul><li>Organizational Development </li></ul><ul><li>Safety </li></ul><ul><li>Wellness </li></ul><ul><li>Benefits </li></ul><ul><li>Employee Motivation </li></ul><ul><li>Communication </li></ul><ul><li>Administration </li></ul><ul><li>Training </li></ul>
  9. 9. HRM <ul><li>Recruitment of employee </li></ul><ul><li>Management of employee </li></ul><ul><li>Providing direction for employee </li></ul>
  10. 10. <ul><li>Employee Motivation : </li></ul><ul><li>Health Insurance(Manager level up) </li></ul><ul><li>Flexible work schedule </li></ul><ul><li>Treat people with respect & dignity </li></ul><ul><li>Employee appraisal </li></ul>06/03/09 Free template from
  11. 11. 06/03/09 Free template from STARBUCKS HRM RECIPE
  12. 12. Competitive Capabilities <ul><li>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. </li></ul>
  13. 13. Cost as a Competitive Capability <ul><ul><li>Low Cost means delivering a service or product at the lowest possible cost to the satisfaction of the customer. </li></ul></ul>
  14. 14. <ul><li>Top Quality : Delivering an outstanding service or product. </li></ul><ul><ul><li>Considerable interaction with the customers may be required to determine what that means. </li></ul></ul><ul><li>Consistent Quality : Producing services or products that meet design specifications on a consistent basis. </li></ul>Quality as a Competitive Capability
  15. 15. Time as a Competitive Capability <ul><li>Delivery Speed is quickly filling a customer’s order. </li></ul><ul><ul><li>Lead Time is the time between receipt of an order and filling the order. </li></ul></ul><ul><li>On-Time Delivery means meeting the delivery time promises. </li></ul><ul><li>Development Speed is quickly introducing a new service or product. </li></ul><ul><li>Time-Based Competition is a strategy that focuses on development speed and delivery speed. </li></ul>
  16. 16. <ul><li>Customization means satisfying the unique needs of each customer by changing the service or product designs. </li></ul><ul><li>Variety involves handling a wide assortment of services or products efficiently. </li></ul><ul><li>Volume Flexibility requires accelerating or decelerating the rate of production quickly to handle large fluctuations in demand. </li></ul>Flexibility as a Competitive Capability
  17. 17. Training Strategies Adopted <ul><li>All class of employees </li></ul><ul><li>Field like retail business, coffee making skills and create a positive customer experience </li></ul><ul><li>Management trainees extended between 8-12 weeks </li></ul><ul><li>Fields like store operations, managing people, training people and Information System </li></ul>06/03/09 Free template from
  18. 18. “ Treat people like family & they will be loyal & give their all” starbucks keywords
  19. 19. Starbucks rules <ul><li>Training employees to perform job efficiently </li></ul><ul><li>First Impressions </li></ul><ul><li>Your special Blend </li></ul><ul><li>Professional Baristas </li></ul>
  20. 20. Baristas Principles <ul><li>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. </li></ul><ul><li>Each barista receives full training in customer service and basic retail skills, as well as “Coffee Knowledge” and “Brewing the Perfect Cup” classes. </li></ul><ul><li>Baristas are taught to anticipate the customer’s needs, and to make eye contact while carefully explaining the various flavors and blends. </li></ul>
  21. 21. Starbucks Communication Skills <ul><li>Maintain & Enhance Self Esteem </li></ul><ul><li>Listen & Acknowledge </li></ul><ul><li>Ask for help </li></ul>06/03/09 Free template from
  22. 22. HR-Basics <ul><li>To have right people hiring the right people </li></ul><ul><li>Adaptability, dependability and ability to work in a team </li></ul><ul><li>Employees upfront in job postings </li></ul>06/03/09 Free template from
  23. 23. <ul><li>Human Resources </li></ul><ul><ul><li>Employee/Company culture. Starbucks values its employees, and shows this through employee benefits. </li></ul></ul><ul><ul><li>Employee training program. </li></ul></ul>Core Competencies
  24. 24. Conclusion <ul><li>Starbucks has a high standards in HRM (as one of the biggest retail companies). </li></ul><ul><li>All the frontline staffs are important to create the ‘Starbucks experience’ </li></ul>
  25. 25. Thank You