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Employee loyalty

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Note on how employees can be motivated to perform better

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Employee loyalty

  1. 1. IMPACT OF EMPLOYEE LOYALTY ON ORGANIZATIONAL PERFORMANCE: (A CASE STUDY OF STARBUCKS)
  2. 2. 1 Chapter 1:Introduction 1.0 Title The title of this research is “Impact of employee loyalty of organizational performance: A case study of Starbucks”. As the title indicates this study will concentrate and evaluate employee’s behavior which can improve the performance of an organization. Through the evaluation of employee’s behavior, the employee loyalty has to be understood. It will lead to understand the contribution of employee loyalty towards the performance of an organization. Here, in this research the organization as well as the employee behavior will be evaluated in terms of Starbucks Company. It will lead to understand how the performance of Starbucks has improved due to employee’s loyalty. 1.1 Background of the Study In present scenario, continuous economic fluctuation has affects almost every company worldwide. The industries of UK also have been affected by economic fluctuation. As a result, it brings serious competency to every industry of UK. On the other hand, consumers are getting more information about the different brands as well as its products. People tend to buy the best product as there have lots of substitute products available in the market. It brings tough competition to the organization in the market. So, organizations performance matters a lot to gain competitive advantage. For example: In terms of the coffee industry of UK, introduce a new brand with a variety of products makes the industry very competitive. So, there need to maintain sustainability in this industry. For that, organizations have to formulate effective strategies and maintain professionalism working culture. In this situation, the employees can contribute towards their organization to run business effectively and efficiently. The employees of an organization play a very essential role in the growth of the organization. Abiodun (2010) opined that the employee’s contribution is very much important in achieving the organization’s aim. By appreciating this, Adam et al. (2007) suggested that if the efficiency of employees would enhance, it will lead to
  3. 3. 2 develop an efficient working environment within the organization. Thus employee’s efficient work can improve the overall performance of the organization which will give competitive advancement to the organization. In opinion of Antoncic and Antoncic (2011), to manage the employees of an organization there need to stress on the human resource as well as operational strategies. The strategies have to be formulated for short term goals, as well as accomplish medium and long term objectives. In terms of HR strategies the considered functions to manage human resources are like: recruitment and selection, personnel management, employee appraisal systems, employee reward, training etc. Barling et al. (2007) have been believed that experienced employees create more value to the company. On the other hand, Barrs (2008) mentioned that keeping existing employees acquire significant challenges to the organizations. However, the absence of key multi skilled employees can create large voids within organizational performance. Organization should hire right person to the right job at the right time. So, the organization has to focus on the existing employee whether they are multi skilled or not. If they are not multi skilled then training has to be provided to them. In order to measure employee’s performance organization should prefer effective appraisal techniques which will handle the situation. The reward has to be given to efficient employees which will motivate them as well as other employees also to work efficiently. On the other hand Baumruk (2009) opined that highly motivated employees acquire a certain degree of loyalty for the organizations. Employee’s loyalty is related with customer satisfaction. The loyal employees can help the organization in achieving sustainability goals as well as enhance customer satisfaction. The study is working on to evaluate the impact of employee’s loyalty on the performance of the Starbucks Company. The Starbucks is a leading company in the coffee industry of UK which has global influence as well.
  4. 4. 3 1.2 Research Aim, Objectives and Questions 1.2.1 Research Aim: The aim of the research study is to determine the impact of employee loyalty on organizational performance for Starbucks, UK. 1.2.2 Research Objectives: Following are the objectives that are wished to be achieved in the due course of the research study:  To determine the factors that affect employee loyalty within Starbucks  To evaluate whether some factors are more influential than others.  To determine how employee loyalty increases Starbuck’s organizational performance 1.2.3 Research Questions: The solutions of the following questions are wished to be solved in the due course of the research work:  What are the key factors that impact employee loyalty in Starbucks?  What factors have contributed positively in increasing employee loyalty in Starbucks?  How employee loyalty can contribute towards effective organizational performance of Starbucks? 1.3 Hypothesis: The investigate process begins and ends with the hypothesis. It is core to the entire procedure. Hypothesis can be formed in several ways yet it always performs the basic function of predicting the final outcome of the investigation (ref). The hypothesis usually occurs after inductive reasoning, in which the researcher
  5. 5. 4 performs a series of observations in order to form a theory. Hypothesis helps the research to find an answer to a problem. It is express in declarative form. In this research, the hypothesis has been formed like: H0: Employee’s loyalty increases the performance of an organization. H1: Employee’s loyalty does not increase the performance of an organization. 1.4 Problem Statement: In present scenario, almost all companies of coffee industry of UK are having problem regarding their employee retention. There have lack of motivation of employees which is the main cause of that problem. 1.5 Justification of the Study: This research stress on the employee loyalty which helps to increase the overall performance of the organization. For that, there need to find out the factors influences on employee loyalty and how it contributes to organizations performance. The Starbucks Company has taken to evaluate as well as its employees. This will lead to understand the term employee loyalty from organizational perspective. The case study of Starbucks would help in this research to evaluate the impact of employee loyalty which improved the performance of the organization. The study will lead to understand the contribution of various factors which forms employee loyalty. It will help companies to focus on those factors that increase employee loyalty. It will help to increase organization’s performance as well as help to gain customer loyalty. Through the contribution of all these company can get competitive advancement. 1.6 Rationale of the Study: Every organization wants to maintain profitable business and achieve sustainability. For this, organization faces massive competition in the market. So if the performance of the organization is good then it can help in getting competitive
  6. 6. 5 advancement. In order to improve performance the organization has to manage all resources properly. Among all resources, human resources need more effort to maintain. The organizations future depends upon the human resources. So, it is very important to manage them and once it has been managed properly, it can improve the organization’s performance. The organization has to implement employee management strategies which can bring a good relationship between the company and its employees. On the other hand, these strategies can help to motivate employees as well as remove the worker’s dissatisfaction. This will lead employees to being loyal to their company. Thus, the loyal employees can deliver value to the organization. It can improve organizations performance as well as deliver value to its customers. If the customers are getting value from the organization, it will lead the organization to stay a step ahead in the market. 1.7 Purpose of the study: The purpose of this study is to understand the impact of employee loyalty on the organizations performance. Through evaluating the Starbucks Company as well as its employees, the study will lead to understand the term employee loyalty. It will also evaluate how the employee loyalty helps to increase organization’s performance. The study will help to understand what factors contribute towards employee’s loyalty through which organization performance has improved. 1.8 Structure of the study: The study will consist of five chapters: Chapter 1: Introduction: The first chapter is the introductory chapter where the purpose of the study as well as aim and objective of this research are formed. The research question has been formed in chapter 1. The chapter will conclude with problem statement of the research as well as rational and structure of the study. Chapter 2: Literature Review: In chapter 2, various studies done earlier will be evaluated which will help in this research. There will have a discussion on various marketing communication approaches that focuses on value formation.
  7. 7. 6 Chapter 3: Research Methodology: Chapter 3 will provide an overview of the methods that have been undertaken by the researcher in conducting the research study. This includes the data collection methods, designing, approach, sampling technique and al the ethical issues that can be involved with the research study. It has been believed that effective research methods can help conducting the research work in methodical way. On the other hand appropriate data collection can lead to effective analysis of the data and thus can help evaluating the objectives. Chapter 4: Findings and Data Interpretation: The fourth chapter deals with analyzing the data collected through primary research and interpreting them with the help of graphical tools. Chapter 5: Conclusion and Recommendations: The final chapter of the study presents the conclusion of the research. This chapter reflects the success of the study in fulfilling the research objectives and answering the research questions. Here, the researcher provides suitable recommendations based on the data analysis and findings of the study. 1.9 Background of the Company: This research has been focusing on the impact of employee loyalty on the performance of the Starbuck Company. The Starbucks is UK’s one of the leading brand which has wider its range internationally. It was established in 1971 [Available from: http://starbucks.co.uk/, 27th January 2013]. Since its establishment the company has been growing day by day. It indicates the effective internal environment of the organization which contributes to its success. Starbucks Company has maintaining its effective communication and service quality which help it to hold the customers. It also leads to attract new customers. Starbucks Company has doing their business in more than 50 countries. There are around 17009 stores of the company all over the world and among them 8870 stores are company owned as well as 8139 stores are licensed. The company has acknowledged its employees who worked efficiently for their company. The company believed that the efficient workforce is their strength which gives a successful position to the company.
  8. 8. 7 The brand portfolio of Starbuck Company includes: Starbucks Coffee, Seattle’s Best Coffee as well as Tazo Tea and Torrefazione Italia Coffee. In order to being a responsible company Starbucks Company stressed on to maintain ethical sourcing, environmental stewardship and society involvement. 1.10 Conclusion: This chapter contains with an issue of employee loyalty through which the impact of employee loyalty on organization performance will be evaluated. Here, the hypotheses have been formed to justify the result. The aim and objective of this research have been set to reach the goals of this mission. The problem of the study, rational as well as justification of this research has been discussed in this chapter. The next chapter will continue the discussion with the evaluation of literature review. .
  9. 9. 8 Chapter 2: Literature Review 2.0 Introduction: The present chapter consists of the theories and related concepts about the topic ‘Impact of Employee Loyalty on Organization Performance’. As described by Antoncic and Antoncic (2011), “the theories justify the subject matter of the study, collected from various literary sources, journals, books and various websites”. The current chapter is the base of the whole research study. Adam et al. (2007) has opined that, review of the presented literatures would help evaluating all the gaps in knowledge concerning the issue. In the current scenario of the study, all the theories concerning employee loyalty and its impact on the organizational performance have been reviewed. Furthermore, all the relevant models and previously researched literatures have also been evaluated to develop a clear knowledge about the research issue. The theories that are reviewed in this portion are concerning employee loyalty, effective employee loyalty at organization, human resource management policy as well as employee loyalty and motivation (Antoncic and Antoncic 2011). 2.1 Conceptual Framework: The conceptual framework of his chapter indicates to the overall summary of all the theories and models, involved in this chapter. All the concepts and theories are related to the topic of this research. It represents an outline of the theories and related concept, used to evaluate the employee loyalty to understand its impact on organization’s performance in terms of Starbucks Company. As mentioned by Adam et al. (2007), “the framework initiates to link to all factors comprising the main issue and defined on the basis of the primary objectives”. 2.2 Employee Loyalty: As opined by Barling et al. (2007), employee loyalty a psychological term which is influence by various factors. It increases workers efficiency that leads to increase employee as well as organizations overall performance. The satisfaction of employee comes from the contribution of employee loyalty. On the other hand, Adam et al. (2007) commented that employee satisfaction matters a lot in terms of employee loyalty. The loyal employees are spirit of successful business. If employees are satisfied with their job or they feel fulfilled as per their requirement, they can go beyond to help their organization. Their behavior has been changed
  10. 10. 9 which build strong relationship with organization that develops the path of organization’s performance. So there have to concentrate on employees need and motivational factors. It leads to employee satisfaction as well as to employee loyalty. In order to satisfy employees, the organizations have to have some well- mannered strategies (Barrs 2008). In the words of William Shakespeare “If music be the love of life, play on”, taking this forward it can be said if ‘Variety is the spice of life, then why not desire more’.If this is translated into the UK coffee industry, then it could be noted that the based on these demands there are a variety of coffee shops that have grown in the UK (). For the people looking at luxury and premium variety, Starbuck lounges are there. Also the independent boutiques that serve coffee is slowly catching up and growing to good numbers. According to a research, the coffee market in UK is growing at 6 times that of the economy. The sector has been growing at a rate of 6.5% in 2012 and has reached a level of £4.75 billion. In a published report the number of coffee shops in UK is expected to shoot beyond 19,000 and do business in the range of £7.25 billion by 2016. The main growth will be fuelled by the branded groups and the non - specialists (Available from: http://www.ukcia.org/activism/coffeeshops/index.php [Accessed 24th February 2013]). Figure: Coffee drinking in UK 23.7 23.7 23.5 23.4 23.2 23.2 23.2 23.5 22.8 22.8 23.6 1 2 3 4 5 6 7 8 9 10 11 Gallons / British
  11. 11. 10 (Source: Available from: http://www.ukcia.org/activism/coffeeshops/index.php [Accessed 24th February 2013]) At the present situation, a large chunk of the market is largely held by the branded groups, autonomous players and non – specialists. Brands like Starbucks, Nero, Costa Coffee, etc, have faced challenging times and still have maintained the growth. This was due to the people in the right places and the customer retention. Branded shops are 30% of the total coffee shops in the market. In the opinion of Stiles et al. (2008), UK is becoming a coffee drinking country from the tea drinking country it was earlier. With the demand in coffee drinking in the rise, there is a demand for increasing the number of outlets. This demand also puts pressure on the labor force (Walter and Bruch 2008). Coffee shops are not just plain Jane outlets where people go for having coffee, the interiors are changing in mind the demands of the customer. The servicing people are also trained to accept the change and obey by it. In the opinion of Wright (2006), a worker who is continuously learning and adapting is a real asset for the company. Changing interiors has not only bring more customers but it also keeps them for a longer time, this gives the servicing people to have a better understanding of the customers and provide better feedback to the management for making strategic decisions (Zheng et al. 2010). There is another aspect to the story also. With the troubled economy, people are more into savings rather than spending. This has put pressure on the branded groups to survive as people have reduced their consumption from these stores. According to Yilmaz and Ergun (2008), when an established company feels the threat of market changes, PORTER’s 5 forces model is used for evaluating the situation. The model is more aligned to marketing. On the other hand if the model can be used properly HR managers can benefit the organization. The application can be illustrated by means of examples cited below:
  12. 12. 11 Figure: Porter’s 5 Forces Model (Source: Schaufeli and Bakker, 2008, p 295) I. Latent Newcomers – In the case of Starbucks, the company is already established and has good employee strength. Most of the employees are well trained and are ingrained with the working of a service industry based organization. If Café Morning is planning to open a store in the same locality as Starbucks, the first attack is on the employees. In the words of Tharenou (2009), poaching helps a new comer to get better and trained resources at lesser cost than acquiring talent and spending on their training. On the other hand if Starbucks plan to open another store in the same locality, they can transfer people from the existing store. In the words of Salanova and Peiro (2009), this might not work in the favor of Starbucks. There are certain employees who would have opted to join a particular store on certain benefits derived from it. When such a situation arises the HR manager needs to be aware of it before hand otherwise there are chances that good resources will walk out. II. Suppliers - In the context of Starbucks and Café Morning, suppliers here would mean the HR consultants who provide man power to the different Bargaining Power of Supplier Latent Newcomers Buyers Industry Competitors Substitutes
  13. 13. 12 organizations. In the words of Saks (2007), money is not a problem for the right candidate. In such a scenario, the contract between Café Morning and Starbucks would be at a higher level per resource supplied. On the other hand Starbucks would be paying at the same levels as agreed before Café Morning entered the scene. According to Roberts (2008), suppliers are always in the lookout for new comers to the market place, this gives them an upper hand in getting better pay outs. Thus their bargaining power also goes up. III. Substitutes – Richardson (2010) has opined that a resource is always in the lookout for new opportunities. Whenever a new option comes, the individual never declines it. The options can be from the existing industry or from an industry which is totally different. It needs to be noted that although the industry is different, the skill needed for the job matches with the skill sets of the resource. In that case, there is no second thinking of remaining with the existing organization. In the words of Phillips and Gully (2011), Starbucks can also go and poach people from other industries whose skill sets match with standards set by the organization. According to Pearsoan (2006), the HR manager needs to appraise themselves about such threats and opportunities. They need to keep the management informed about the potential of such events occurring. In absence of proper communication between management and HR team, resources are lost (Paul and Anantharaman 2003). IV. Industry Competitors – Within the industry also there is a trend of poaching for people. This can happen if Nero is opening a store next to Starbucks, they would like to hire people who are already aware of the functioning of a coffee shop. This would mean that Nero would cut out the suppliers form the scene. In the words of Newman and Harrison (2008), if a resource is directly approached by the competitor, the response from resource is positive. On the other hand if a resource that is performing well
  14. 14. 13 within the limits of Nero is on the radar of Starbucks can be approached and recruited. According to Muse et al. (2008), today’s market is in a dog fight situation. No one is willing to leave ground to the other. V. Buyers – Starbucks, Nero and Café Morning are all buyers. They buy resources in the form of people from the HR consultants. In the words of Meyer et al. (2009), a coffee drinker is also a buyer. Ever single buyer, irrespective of an organization or individual has the bargaining capacity. According to McIntyre et al. (2009), individual buyers are more powerful than organizations. Customers keep the brand alive, in case they are angry with the brand, there is no way the brand can gain a way into their hearts again. How can they have a bargaining power in context to employee loyalty? The answer is simple, if a person is working with Starbucks for a year, a loyal customer base would have been created. These loyal customers visit a particular store and at a particular time only for the service provided by this individual. In case the individual moves to a new organization, the customer base is also liable to shift as they would prefer to be served by a person who knows their preferences well (Richardson 2010). The same is true of any person who moves from Nero to Starbucks. In the words of Macey and Schneider (2008), service industry works on recommendations of the people working with the brand. HR managers and leaders need to understand it is people and not brand that sells.
  15. 15. 14 It is said that people and not brand that sells. Lilius et al. (2008), has opined that the marketing mix theory of Kotler had to be amended by Mackenzie for accommodating a new set of characteristics. This new set was termed as Service marketing mix. Figure: Service Marketing Mix (Source: Luthans et al, 2008, p 390) Marketing Strategy Placement Process People Physical Environment Price Product Promotion
  16. 16. 15 People in an organization and especially for Starbucks can be listed under the broad job categories as listed below: Job Role Job Function Store Managers According to Mason et al. (2008), he is a jack of all trades but master of none. At times when there is a load on the servicing people, he jumps to fill in so that the customers are satisfied. When there is any problem, he is the first person on the site to solve and bring peace. He is the man with the invisible wand, controlling everything that is visible to the customer inside the store and also outside. This would include the signages and the delivery driver / boy attitude and dressing. If he falters the store falls like a house of cards. Receptionist / Hostess The first person in the organization that is visible to the customers. The perception of the brand is gained from the person. If the individual is not happy with the work or any aspect of the organization it will reflect in her attitude and hamper the organizational progress May et al. (2008). Order Takers In the words of Abioudun (2010), these people are the second line of brand reinforcement. A smiling face and happy to help attitude relieves the customers of the perceived notion of the brand being expensive and premium.
  17. 17. 16 Job Role Job Function Service People If the order taker is not happy he will not serve in the manner that is expected out of him. Demotivated workers, unhappy workers are always problem creators. Their attitude can drive off customers (Baumruk 2009). Delivery Driver / boy In the opinion of Becker and Gerhart (2009), at times when customers do not visit the store but want to consume the product, they order it and get it delivered at their doorstep. When the delivery driver / boy steps up to you and delivers the goods, it creates an instant impact about the brand. On the other hand if the person is gloomy, then brand image goes for a toss. Table: Job Role and Function of Starbucks Employee (Source: Available from: http://www.business2community.com/customer- experience/is-starbucks-watering-down-its-coffee-brand-0326625 [Accessed 20th February 2013] When people need to perform a job day in and day out, it becomes monotonous for them. Sometimes they go into reverse gear, this are signals of the employee unhappiness and the tendency of the person to shift. According to Chen and Huang (2007), when such signs are visible to the management, it should be taken up and discussed with the HR managers. The HR managers are skilled enough to pull these employees from the reverse gear and put them back into track. Some of the techniques used by the HR managers have been discussed in detail. 2.3 Importance of Employee Loyalty: Konrad (2009) had evaluated the importance of employee loyalty to a business. On the other hand Richadson (2010) has opined that it can be highly beneficial for a company or business venture. The term loyalty straightly comes from consumer fulfillment. It is because, development as well as revenue of an organization mainly inspired by customer loyalty. The satisfaction of consumer comes from the value which has formed primarily by the employees of the organization. So, here the issue comes as ‘employee satisfaction’. Employee satisfaction is needed first which
  18. 18. 17 will lead to consumer satisfaction. It makes to feel the crucial role plays by employee loyalty (Kluger and DeNisi, 2007). In the words of Julie and Arthur (2008), there is a well built correlation between employee satisfaction, loyalty, and efficiency of workforce, customer loyalty and profit of the organization. On the other hand, Josse and Robert (2007) has stressed that an organization works for profit earning. So to get profit, above mentioned factors are responsible which have great impact on that. According to Jelinek (2010), if the management of an organization cares as well as listens to its worker’s view, it helps in developing the background of an organization. It helps in gain profit of the organization. A successful business strongly required loyal employees to maintain and growth of their business. They may lead a company to a successful position whereas lack of loyal employees can make the organization worst. The organizations performance reflects on those loyal employees. Through employee loyalty a company can get competitive advancement (Ilke et al. 2008). Employee loyalty can help in successful implementation of business strategy of a company. Hyvönen et al. (2009), has suggested that employee loyalty can be formed through creation of effective shared value and culture. In the words of Huey (2008), the behavior of employers towards its employees should be impressive. It should be present such a way that it becomes a good example for the employees which is enough to motive them. Going that way can able the organization to squeeze more knowledge, capability, gains belief, sincerity as well as consistency etc. Holman and Fernie (2010), has acknowledged that these could be the effective steps towards create employee loyalty. In the words of Holman and Fernie (2010), employers should not have to hide which related with the organization. They should be flexible in terms of sharing and frankness. The employees have to be aware of what is the progress of the mission they are working for. There need to share companies overall performance to which employees contribution is most important. According to Konrad (2009) information on the employees need to be maintained properly. Getting half information can create misunderstanding among employees. It can affect in cohesiveness which will have negative impact on employees. On the other hand it will be an obstacle in the way of building loyalty which will directly effect on organization’s performance (Kruj, 2006). Helen et al. (2009), has demonstrated that employers should stress on the growth of the employees career. There have a requirement of career opportunity activities. The leaders have to share about their career courses that help employees to understand about the opportunities they are getting from their company side. In
  19. 19. 18 the words of Harter et al. (2010), this will also help employees to improve their performance to overcome their hard time. The opportunities presented to them to improve their skills as well as knowledge. These things encourage employees to share their proficiency which is necessary for the organization. In the opinion of Hakanen (2008), the relationship between employees and employers is plays a very important role in development of the organization. They have to create good working environment which values genuine community relationship. It brings togetherness among them. On the other hand, it makes them feel that all of them are equally contributing to achieve mutual aim. In the words of Griffin and Moorhead (2009) if the cohesiveness builds among them, it will lead to achieve target faster. As a result, the performance of the organization increases. In the words Green and Medlin (2006), the leaders or the employers should not blame employees without proper judgment. If it happens, it will not only make employees uncomfortable but also de-motivate them. Then it will effect on employee loyalty as well as organizations performance. In the words of Gordon and DiTomaso (1992), employee may have mistakes but the employers have to discuss with that person individually and try to find out the reason. Accordingly, he/she have to be provided training and all to solve the problem. On the other hand, Germain et al. (2008), has suggested another option that the leaders should create some strategies to manage the mistakes which would thing to occur in future. For that, first the problems need to be find out that are thinking to be occur in future. Accordingly the policies should have formed. There have much possibility that the problem may not occur if the strategies are implemented in the initial stage (George and Clive, 2007). According to Gary and Christopher (2008) employee loyalty can be measured through the evaluation of their attitude towards the organization. There have various ways that employers can apply to increase the employee loyalty. 2.4 Motivation and employee loyalty: According to Fullager et al. (2007), employee motivation is very important in order to maintain a successful business. It not only helps in creating employee loyalty but also develops the organizations performance. Starbucks can be considered as company having good products and services as well as operates with high budget. If the employees are de-motivated it can be a major problem for the organization. It may stay on as an obstacle for the company and come in the way of profit earning. In words of Fred et al. (2007), motivation indicates the practice of inspiring a person to implement a desired accomplishment.
  20. 20. 19 All human beings have needs, why should employees be different then. In the words of Fine et al. (2010), every employee would want to fulfill those needs through their job. When a person is engaged with an organization, it is the duty of the organization to make sure that the needs of the employee is recognized. Once the needs are recognized, they can be cured by way of correct motivational medicine provided by the organizational heads. According to Eunmi (2009), some organizations, Starbucks can be considered here with multi cultural work force have problems in offering proper motivation to the employees. It happens due to cultural differences as well as lack of proper communication between employers and employees. Ellen (2008) believes that, in order to get competitive advancement many organizations like Starbucks and Costa Coffee are implementing modern management strategies. These are essential to manage the employees as they are most important resources for the organization. The effective human resource management can help to address this concern. On the other hand, Elizabeth and Adelina (2007) has opined that motivation of employees can help in improving employee’s performance and create employee loyalty. It will lead to enhance organization’s performance. In context of the employee motivation within Starbucks, Elicker et al. (2008) has suggested that Maslow’s hierarchy of need theory can help to identify the needs of the employees. Through the fulfilling of these needs the employees can be motivated leading to better employee loyalty and service to the organization. In the words of Eby et al. (2008), by addressing the needs of an employee, the organizations can get the individual motivated. The theory stressed on various needs. These ranged from psychological, safety, social, esteem to self actualization needs (Dyne and Pierce, 2008). Maslow has considered the psychological, safety and social needs as absolute basic needs that organizations should provide to the employee. On the other hand, Dyne and Pierce (2008) have criticized that esteem needs and self actualization are regarded to be optional needs that are needed to be take in hand once the other needs are fulfilled.
  21. 21. 20 Figure: Maslow's Hierarchy of Needs: Figure: Maslow’s Hierarchy Theory (Source: Konrad 2009,p 215) SelfActualization:(Dyne and Pierce(2008), has quoted that “The last requirement of human being is Self-Actualization which takes place after having all basic needs“. Esteemneeds:AccordingtoEllen(2008), esteemneedscanbe categorizedasinternalandexternalmotivators.The external factors include rewardsinreturnof the bestperformance,promotiontohigher level etc.Onthe otherhandexternal factorsindicateaboutthe personal goalsthatsetbythe employee itself forpersonal achievement. Social Needs: In the words of Dewberry (2010), from organization perspective cohesiveness is urgently required among workers. It will encourage employees to work as team and share knowledge with each other. On the other hand it will not only make the task easier for the employees but also help the organization to achieve its aim. SafetyNeeds:Accordingto Denison etal. (2007), safetyneedsindicate aboutthe Physical Safety,Financial Safetyetc.Workenvironmenthastobe safe andsecure and shouldnotcause harm eitherphysicallyorfinancially. The emotional factors alsohave to be maintainedbythe management. Physiological Needs: In the words of Dana (2008), in this initial stage every human being requires basic amenities like Air, Water, and Clothing etc. These basic things would help him to survive.
  22. 22. 21 To understand how Maslow’s theory can be used on the employees of Starbucks and get them to work for the organization for a longer period, let’s consider the table Job Role Job Function Needs Store Managers According to Mason et al. (2008), he is a jack of all trades but master of none. At times when there is a load on the servicing people, he jumps to fill in so that the customers are satisfied. When there is any problem, he is the first person on the site to solve and bring peace. He is the man with the invisible wand, controlling everything that is visible to the customer inside the store and also outside. This would include the signages and the delivery driver / boy attitude and dressing. If he falters the store falls like a house of cards. He sits at the top of the hierarchy table. Most of his needs have been taken care of. Still the individual is not satisfied. There is something that eats him from within. Time for the HR managers to step in and help the individual. Give the person training and move to a new assignment. This way the person gets motivated as new challenge would put person under pressure and push for excellence
  23. 23. 22 Job Role Job Function Needs Receptionist / Hostess The first person in the organization that is visible to the customers. The perception of the brand is gained from the person. If the individual is not happy with the work or any aspect of the organization it will reflect in her attitude and hamper the organizational progress May et al. (2008). This person enjoys the safety and physiological needs. Has been with the organization for long time. It is becoming depressing for the person to do the same job, solution is provide her best possible training and elevate her to the Store manager level. This would cover the esteem needs. Order Takers In the words of Abioudun (2010), these people are the second line of brand reinforcement. A smiling face and happy to help attitude relieves the customers of the perceived notion of the brand being expensive and premium. Both these set of individuals have had their physiological and safety needs fulfilled. They would like to move on in life. The problem here is on a larger scale. Both the set would not have a defined set to move to. Reward these people on their job and service. This will keep them going. Service People If the order taker is not happy he will not serve in the manner that is expected out of him. Demotivated workers, unhappy workers are always problem creators. Their attitude can drive off customers. Delivery Driver / boy At times when customers do not visit the store but want to consume the product, they order it and get it delivered at their doorstep. When the delivery driver / boy steps up to you and delivers the goods, it creates an instant impact about the brand. On the other hand if the person is gloomy, then brand image goes for a toss. His initial need factor, physiological needs has been fulfilled. He has a job but still there are certain needs that have to be catered to. His safety needs are the primary concern of Starbucks. The vehicle he drives need to be good. Proper medical and medication needs to be provided in case of accident Table: Job Function and Needs of employees Source: Available from: http://www.business2community.com/customer-experience/is- starbucks-watering-down-its-coffee-brand-0326625 [Accessed 20th February 2013]
  24. 24. 23 Figure: Alderfer’s ERG Theory of Motivation (Source: Eby et al., 2008, p 475) Clayton Alderfer has propounded another theory motivation which can be mentioned as synchronization of Maslow’s theory with Empirical research. Alderfer had stressed on three factors like: Existence Needs, Relatedness and Growth needs. (ref) criticized that in compare to the Maslow’s theory, Alderfer’s theory is gives more attention on evaluating the pros and cons of existing management performance of the organization. According to Kruj (2006), existence needs indicates about the basic needs such as: physiological needs as well as safety needs. On the other hand, Relatedness needs are same like Maslow’s social needs as well as esteem needs whereas growth needs related with self development. Maslow’s self actualization need is same like growth needs. Although, Alderfer’s theory has similarities but there have some differences also. As opined by Konrad (2009), there can be operated more than one needs at a specific period of time. Presence in the Organization Feeling of being connected with the Organization Development within the Organization
  25. 25. 24 Practical Implication of Alderfer’s theory on Starbucks Company: The managers of Starbucks Company have to understand that the employees working for their company have a variety of needs. It is important to fulfill these needs at the same period of time. It will motivate employees but if the manager focuses on only one needs at a time the motivation process will not effective. If the organization does not facilitate some opportunity like growth to its workforce they might go back to relatedness needs. So Starbucks Company has to take care of these things to motivate the employees which will lead to enhance employee loyalty. Then it increases the overall performance of the organization which forms value within the organization. Dalal et al. (2008), has demonstrated that effective motivational strategies creates a effective working environment. It has strengthened the relationship between employees and the organization. On the other hand Colbert (2004)has opined that motivational strategies have a great impact on employee loyalty as it stressed on satisfaction of employees. If the organization can fulfill the employee’s requirements it gives them satisfaction which can lead to employee loyalty.
  26. 26. 25 Herzberg’s Two Factor Theory Figure: Herzberg’s Two Factor Theory (Source: Stiles et al., 2008, p 60) Dissatisfaction and Demotivation Not dissatisfied but not motivated Satisfied and motivated  Company Rules and Regulations  Supervisor’s Quality  Interpersonal Relationship  Personal Life  Remunaration  Job Security  Working Condition Healthy Practices  Achievement  Career Growth  Personal Growth  Job Interest  Rewards  Responsibility Motivational Factors
  27. 27. 26 Herzberg’s Theory and Starbucks Comparison of Maslow, Adelfer and Herzberg’s Theory Figure: Comparative modelof Maslow, Adelfer and Herzberg’s Theory (Source: Wright, 2006, p 439) 2.5 Enhancing employee loyalty by effective human resource management strategies: In the ever changing market place and the techniques, the organizations need to be savvy in its approach to take on the challenges of retaining employees. According to Clare et al. (2009), the performance of an organization is influenced by various factors. Employee loyalty is also an important factor which improves organizational performance. If Starbucks is able to implement proper human resource management strategies it will enhance organizational performance. Employee recruitment and selection strategies are among them which play an important role in employee loyalty and improve organizational performance. In the words of Chun and Soo (2008), to retain employees both short term as well as long term approaches can be applied. There have ample proof that Starbucks can use from past experience which can indicate how employee loyalty has had a direct effect on the enhancement of organization’s performance. So, there need to stress on the human resource management policies and strategies that practices by the organization. Social Safety Physiological Self Actualization Esteem Motivation Hygiene Growth Relatedness Existence Higher Needs Lower Needs Intrinsic Motivation Extrinsic Motivation
  28. 28. 27 Chorng et al. (2007), acknowledged by saying that successful implementation of human resource strategies motivates employees to being loyal to their organization. As per the latest research reports of UK the organizations have trying to manage employee loyalty though involvement of human resource practices as well as acquire a serious competitive edge over the rival companies. Hence, due to globalization modern human resource management practices is required for the organization that makes employee loyalty (Chen and Huang, 2007). The reports made earlier observe that workers of an organization focus on both personal and organizational growth. In the words of Carl (2007), Starbucks need to focus not only for organizational development but also to the growth of the employees. Both of them are related with the organization’s performance as well as employee loyalty. If the organization helps employees for their personal growth, employees will motivate to focus on the organization’s goals. It indicates to employee loyalty which impacts on organization’s performance. On the other hand, Camardella (2007) suggested that effective communication strategy helps workers to evaluate their career. It affects reflects on the performance of the organization. So it can be said that the successful implementation of human resource strategies as well as effective communication helps both employees as well as the organization. Both are dependent on each other. All together it brings employee loyalty which affects in organization’s performance (Bruch and Walter, 2008). A complete human resource strategy includes retention strategy to implement that strategy successfully. The retention strategy includes the elements like: Communication, Performance, Loyalty and Competitive advancement (Brenton and Driskill, 2010).
  29. 29. 28 Accordingto BrentonandDriskill (2010),inthe wayof accomplishaparticulargoal;humanresources are beingpleasedif the organizationfullytakescare of them.Itindicatesthatthe performance of the employeehasincreaseddue tothis.The objectiveshave tobe measurable forthe employeesasit doesnothappendue to performance intermsof employeeretention.The previous studiesindicates that people feel thattheyare succeedingastheircontributionandperformancemakesdifferencein the businessorcompanytheyare workingfor.Thisbringsbelongingnesswiththe companywhich motivatesemployeestodotheirbestforthe company.Once motivated,theyfeellike theyare workingfortheirowncompanyandso theycontribute withfull efforttowardsthe company.Thus,it not onlyenhancesemployee loyaltybutalsoimprove organization’sperformance(BrendaandHy, 2008). AccordingtoBrentonandDriskill (2010),in the wayof accomplishaparticulargoal;humanresources are beingpleasedif the organizationfullytakescare of them.Itindicatesthatthe performance of the employeehasincreaseddue tothis.The objectiveshave tobe measurable forthe employeesasit doesnothappendue to performance intermsof employeeretention.The previousstudiesindicates that people feel thattheyare succeedingastheircontributionandperformancemakesdifferencein the businessorcompanytheyare workingfor.Thisbringsbelongingnesswiththe companywhich motivatesemployeestodotheirbestforthe company.Once motivated,theyfeellike theyare workingfortheirowncompanyandso theycontribute withfull efforttowards the company.Thus,it not onlyenhancesemployee loyaltybutalsoimprove organization’sperformance(BrendaandHy, 2008). P E R F O R M A N C E C O M M U N I C A T I O N In the wordsof Boselie etal. (2005), successful employee retentionpolicy includesemployeeloyalty. Loyaltybringsbelief,admirationaswell ascommitmentthroughwhichthe relationshipgetsstronger. It enhancesworkersperformance aswell aseffectsonoverall performance of the organization.The loyaltydoesnotcome withthe employeesatbeginningdayof theirjob.Itisthe organization’s responsibilitytomake themloyal. L O Y A L T Y
  30. 30. 29 The above discussed provides human resource management a retention strategy to improve performance, good interconnection etc. With successful integration of all these elements organization can enhance employee’s performance and gain employee loyalty. It will lead the organization to get success through improved its performance. 2.6 Employee Loyalty and Organizational Performance: In the opinion of Boselie et al. (2005), employee loyalty plays a vital role in the bottom line of the company. Through the review of recent research reports on UK industry it has been observed that employee loyalty is playing an important role in enhancing the overall performance of the companies. In a published report, it has been suggested that if the organization is willing to spend 9 percent of its earning on the improvement of employee related issues, productivity will rise by 7.25 percent. On the other hand if the same amount was invested on capital goods, the improvement would have been around 4 percent (Available from: http://www.reuters.com/article/2010/04/22/coffee-coffeeshops- idUSLDE63L1JQ20100422 [Accessed 24th February 2013] To consider the case of Starbucks Company their profit margins and market performance have grown significantly with contribution of employee loyalty. On the other hand Abiodun (2010) mentioned that several human resource managers of various UK companies have acknowledged that employee loyalty has helped in accomplishment of organizational goals and objectives. Adam et al. (2007) opined that around 45 percent organization of UK has succeeded through employee loyalty. AccordingtoBoselie etal.(2005), the company has to increase the performance andhave togive value towardsitscustomers.Thiswill helptogetcompetitiveadvancement.Onthe otherhand,from employee’sperspective,theytendtoworkwiththe companywhose performanceisbestinthe market.Thisperceptionmotivatesemployeestoworkwiththatcompany.Theyknow thatworkfor that companywhose performance isbestinthe marketwillchallenge.So,tobelongtothatkindof companythe employee hastoenhance theirperformance orcommitbestperformance. O U T S M A R T
  31. 31. 30 It clarifies the shining in terms of future prospects of the organization in economic recession. As opined by Antoncic and Antoncic (2011), the greater part of the UK human resources have the same opinion that job satisfaction has very much impact in developing employee loyalty of the organizations. There are approximately 73% of the employee interviewed have agreed that managerial loyalty can help enhance efficiency in the work environment. It creates employee loyalty through motivating them. On the other hand the survey report reports also indicates that almost a quarter of employees interviewed have found to be loyal to their respective companies. Barling et al. (2007) opined that apart from the assortment, all the researchers suggested that employee loyalty is highly reliant on the supervisor procedure of companies. The reports suggested that employees always looking for better treatment by the executive bodies of the companies. So, there have exists a need of the assessment of association the human resource practices of companies with that of the employee loyalty. It has been assumed that proper human resource strategies can help introducing loyalty within the employees of organizations. It will enhance the performance of the organization which will give competitive advantage (Barrs, 2008). In the words of Baumruk (2009), employee loyalty and business outcomes are directly related and give sufficient insight to the managers. In fact research has proved that employee loyalty has had a positive impact on the outcome of the business. Infact the manager can gain more insight about their loyal business units when based on the relationship of the manager with the employees. According to Brenton and Driskill (2010), although the manager’s are equipped with the data that can help in improving the system, most organizations overlook the situation. For most managers the information gathered does not exist, a laxity on the manager’s part to collate the data and analyze it. As individual’s everyone is worried about the bad news. When the managers fail to analyze the data provided, bad news hits them in employees leaving the organization. Employee loyalty is like a mirror ie, till the time the company is loyal to the employee, the employee is loyal to the company (Buchner, 2007).
  32. 32. 31 2.7 The Test of Measuring Employee Loyalty Can employee loyalty be measured? How and what impact does it have on the company’s performance. While loyalty cannot be directly linked to the level of earnings or profits, which impacts the bottom line. (Carl, 2007, p 346) has quoted that ‘there is proof that when the employees who are happy with the company perform, the bottom line reflects it’. on the other hand people have called this theory not so convincing. According to Cheng and Huang (2007), using employee loyalty as a measurement of performance has its own positive side. If the loyalty were to be measured in monetary terms by putting a value to the priority that an employee would give to individual needs before organizational goals cannot be ascertained (Chorng et al., 2007). In the words of Chun and Soo (2008), should organizations be bothered about bringing in the loyalty factor among the employees when certain employers want their employees to follow what has been asked of them. There is a challenge that the employers face at this juncture, the employees have more choice of jobs then earlier, so the risk would be with the employer (Dewberry, 2010). This leaves the bosses with nothing
  33. 33. 32 2.8 Conclusion: For every employee working in a retail outlet, there is a motivational factor which provide impetus to the work. It can be the driver or the server who would need a motivation for delivering the service.
  34. 34. 33 Chapter 3 Research Methodology 3.0 Introduction: Research methodology provides a framework to conduct the research study in a systematic process. Bernard (2011) opines that the identification of research problems and providing conclusive solutions requires careful selection of research elements Moreover, Brannen (2009) added that the appropriate selection of research design, data collection tools, and analysis is crucial to carry out an objective based research. 3.1 Method Outline: A brief outline of the entire research methodology helps to provide an overview of the research process. The method outline of this study is guided with the adoption of the research onion where each layer is considered. Initially, the selected research philosophy is positivism and later the process moved towards selection of deductive research approach. Descriptive design supports the primary and secondary data collection, presentation and analysis and has been chosen. Quantitative research, using survey questionnaire distribution is the strategy chosen for primary data collection. 35 employees of the organization, Starbucks was chosen using probability sampling technique to collect quantitative data 3.2 Research Onion: The research activity constituents are described in a research onion. Bryman and Bell (2011) described that research onion provides a standard structure of research methodology. Based on various concepts, models and statements, rests the process of research onion. Cameron (2009) mentioned that research onion essentially consists of six layers named as philosophies, approaches, strategies, choices, time horizons, techniques and procedures. Each layer helps a researcher in reaching to the next level of research process. Arguably Crowther and Lancaster (2012) believed that research onion should ideally be comprised in such a form where data
  35. 35. 34 collection process is the initial layer. However, the simplicity of research onion’s six layers allows having a wider knowledge about the topic and the research process. 3.3 Research Philosophy: The initial layer of research onion is philosophy that helps in appropriate set of research methodology selection. According to Freshwater (2007), based on various assumptions, practices and concepts, research philosophy is formed. However, Morgan (2007) opined that research philosophy reflects the thinking ability of the researcher while developing knowledge for the topic. Research philosophies are of varied kinds however, the most popular ones are positivism, interpretivism and realism. Toloie-Eshlaghy et al. (2011) have explained that the philosophies of positivism are based on the methodology structure that describes the observation and evaluation pattern. This philosophy uses various forms of natural sciences so that a critical and objective method is followed. According to Bryman and Bell (2011), interpretivism believes in the complexities of theories and laws unlike positivism. This philosophy tries to explain various hidden truths and meanings of the facts. Lastly, another important philosophy is realism where human values and beliefs are interdependent. As explained by Cameron (2009), realism helps in defining the reaction of an individual towards a real situation of the world. 3.3.1 Justification for choosing the Research Philosophy Undertaken: The current selection of the topic explains the relationship of employee’s royalty over organisational performance in Starbucks. The research philosophy selection should be able to connect natural science while the process of data collection and observation occurs. Philosophy supports the role of research as being an objective analyst so it suits the nature of the study. Evaluation of the data and proper result is needed to determine the success of the research study, hence positivism was the choice. On the other hand, interpretivism and realism study does not qualify for the time-constraint study so they were not the proper choice of research philosophy for this study.
  36. 36. 35 3.4 Research Approach: The basic function of research approach is determination of the evidence’s nature and extent (Crowther and Lancaste, 2012). Including both the deductive and inductive, research approach is formed. Freshwater (2007), described that role of research approach is ideal when understanding of any particular situation, event, role or group is required. Compilation of both the logic and observation determines the concept of research approach (Toloie-Eshlaghy et al. 2011). Division of research approach is broadly categorized under two sections of deductive and inductive approach. According to Morgan (2007), deductive approach is relevant with the existing theories and information. Depending on these collected secondary data, the research strategy is initiated. However, in case of inductive approach, initially process of detailed observation takes place alter on specific topic selection occurs (Freshwater, 2007). Thus, deductive theory happens in presence of adequate secondary sources whereas inductive approach occurs in lack of any theories or data. Based on preliminary researchers and findings, the researcher tries to evaluate the research topic id deductive approach. On the other hand, Crowther and Lancaste, (2012) have defined that a new theory or idea is formulated in case of inductive approach. Thus, inductive and deductive research approach adopts hill climbing and waterfall structure respectively. 3.4.1 Justification for choosing the Research Approach Undertaken: Study of Starbucks requires initial knowledge gathering so that the general idea can be known. Similarly, deductive approach depicts the study pattern where study topics are observed from being a general topic to more definite topic. Based on the earlier research study of the researcher, the researcher has observed the employees’ loyalty and organizational performance in Starbucks. Moreover, critical study of theories and models supports the deductive research approach. Based on the theories, models, laws and rules, the researcher observed the research topic and hence were able of gaining a crucial idea for the topic. Application of deductive approach is ideal for a time-constraint study, as inductive approach requires
  37. 37. 36 enough time to have observation of the research topic. Thus, deductive approach justifies research approach selection a more apt way. 3.5 Research Design: Function of research design is to frame the research project in a synchronized manner so that important information of the study is highlighted (Brannen 2009). Addressal of the research question is based on research design as it helps in bridging gap between the theories of literature review and analysis of the findings. However, Crowther and Lancaste, (2012) have noted that research design is helpful in selecting the research questions that will be incorporated for the research project. Importance of research design is as same as blueprint of a project. Bryman and Bell (2011) have mentioned that research design deal in explaining the procedures of the research problems where specific information about the collection and analysis pattern is described. The common forms of research designs includes exploratory, descriptive and explanatory. Crowther and Lancaste, (2012) explained that exploratory design are used when a new phenomenon or study is undertaken. Usually in lack of theories or secondary sources, exploratory research design is selected. However, Brannen 2009 defined that descriptive design helps in validating the selection by specifying the reasons. Due to the use of archives, this design is also termed as archival research. Lastly, explanatory research comprises use of casual research to conduct a relationship between the variables. 3.5.1 Justification for choosing the Research Design Undertaken: Exploratory role in research design is limited to answer questions of “what” and is appropriate in cases where lack of study exists. Similarly, exploratory is mean to answer questions for “how” and “why”. Exploratory is thus limited to explaining the relationship of the variables. However, use of descriptive design is useful for answering questions of “who”, “where”, “how many”, “how much” and so on. Thus, descriptive research designs helps in portraying a detailed report of the research study. Thus, descriptive design will lead to detail analysis of any particular topic or
  38. 38. 37 issue. Moreover, quantitative analysis supports descriptive design that is helpful in saving time of the researcher unlike exploratory and explanatory research design. 3.6 Working Data Type: Importance of working data type is crucial for the success of the research study. Crowther and Lancaste, (2012) viewed that process of collecting and analyzing data represents the method of presentation and organization of the data. However, explained that at times selection of the most appropriate from of the data is a barrier for the research study as it affects both the quality and time. Although there lies numerous forms of data sources but they are broadly categorized under sections of primary and secondary data. Primary data are self-collected data of the researcher achieved via application of various techniques and procedures. Toloie-Eshlaghy et al. (2011) have illustrated that primary data requires enough time and effort so that the lengthy process of data collection is conducted. However, Bryman and Bell (2011) have defined that primary data are capable of producing better relevant data for the concerned topic in comparison to the secondary sources. In this research study, the researcher has conducted survey on the employees of Starbucks to gain answers of the research objectives with the help of questionnaire. The secondary sources of data are comprised of early researches by various researchers, analysts, authors, scholars and so forth. Toloie-Eshlaghy et al. (2011) have noted that secondary sources are inexpensive and timesaving option while collecting data. and Lancaste, (2012) have argued that although this is a fast process but the ethical issues such as confidentiality and integrity effects the quality of secondary data. The application of secondary sources for this dissertation was in literature review where application of various theories, models and tools occurred. 3.7 Research Method: The process of research method describes the process of data collection chosen for any study. Kothari (2008) has mentioned that research method is broadly divide into two categories of quantitative and qualitative research methods or both.
  39. 39. 38 Depending on either of the research method, the researcher will try to collect information for employee loyalty on organizational performance in reference to Starbucks. Qualitative research methods are considered as social sciences of early forms where previous researchers tried to collect information by applying various concepts, theories, tools and concepts. Saunders et al. (2009) have described that qualitative research methods helps in description of why, how and when of any event or incident. The common tools of qualitative research are observations, focus group, interviews and so on. Qualitative researches are helpful in gaining in-depth details of the selected topic; however it is a lengthy and time-consuming process (Saunders et al. 2009).Kothari (2008) has viewed that qualitative research techniques allows for the comfort zone of the participants. Unlike quantitative analysis, the participants’ opinions are not restricted to the available options only. The researcher was having a time-constraint study so application of qualitative research was avoided for this dissertation. In research study, application of quantitative analysis helps in getting larger number of participants involved in the data collection procedure. Saunders et al. (2009) have examined that quantitative analysis is handy for application of research study as it gives numerical data that helps in simplifying the process of data collection. According to Kothari (2008), quantitative analysis is termed as a research method where statistical tools are applied to derive data for a set of research objectives. In this research study, the researcher uses quantitative data to overcome the barrier of cross-sectional study. In chapter four, statistical tools are helpful in deriving various forms of table, charts and figures that will describe the data as per the response of the participants. 3.8 Sampling Choice: According to Bryman and Bell (2011), sampling refers to selection of sub-set within a larger set of options. Sampling helps in estimation of accurate details concerning smaller group of representatives. Toloie-Eshlaghy et al. (2011) have noted that sampling choice helps any researcher in data collection procedure with minimized
  40. 40. 39 cost, time and efforts. However, Freshwater, 2007 has argued that sampling requires knowledge of sampling methods so that the correct and most suitable sampling method is selected as per the nature of the study. Sampling choice is broadly classified as probability and non-probability sampling techniques. (Saunders et al. 2009) have explained that as the entire population cannot be considered for the data collection procedure so sampling techniques are applied to simplify the process of data collection. As Starbucks employs huge number of people, so the selected topic has larger number of representatives. Bryman and Bell (2011) have propelled that larger number of people are easily identified through probability sampling, so the researcher opted for probability sampling choice. However, there was no special criterion so no special parameters were considered; hence, simple random technique was applied for this research study. 3.9 Sampling Size: Toloie-Eshlaghy et al. (2011) have stressed that sample size with larger number helps in validity of the research data. The researcher tried to involve at least 50 employees of Starbucks, but only 35 were properly filled in answers for the sample survey conducted by the researcher. Initially, the researcher gained permission from the company to interact with their employees, and after grant of permission, the research process was conducted. 3.10 Research Ethics: As examined by Freshwater, 2007, research ethics are a set of behaviours that helps in recognition of the correct forms of behaviours required in a scientific research study. In order to overcome various issues, applications of research ethics are required so that a proper and standard form of principle can be applied to conduct a research study (Bryman and Bell 2011). In this research study, the researcher has maintained various forms of research ethics to differentiate correct and wrong set of behaviours.
  41. 41. 40 The participants were encouraged for voluntary participation so that their biasness can be handled. Moreover, the researcher tried to frame such set of questions that are incapable of hurting sentiments of any involved participant. Apart from academic purpose, the data were strictly maintained by the researcher to avoid any commercial use of data. Toloie-Eshlaghy et al. (2011) have noted that maintenance of participants’ identity are restricted so that they remain unaffected with the result of the study. The researcher prohibited identity of the participants. 3.11 Research Limitations: Bryman and Bell (2011) have explained that acknowledgement of research limitations gives a scope of addressing future research for the project study. Cross- sectional study restricted the study to quantitative research method that in some way affected the quality of data collection procedure. The participants were restricted within the given option and thus could not explain their viewpoint or feedback in a detailed manner. Lack of finance restricted the use of SPSS software to analyse the data in a statistical manner. Biasness and validity of the research data is dependent on the participants’ views and hence it cannot be guaranteed. 3.12 Summary: Research methodology helped the researcher in selection of the most appropriate tools and procedures for data collection. Selections of research tools such as positivism, deductive, descriptive, quantitative, and so forth were helpful in giving a standard form of research process to this selected study.
  42. 42. 41 Chapter 4 Data Interpretation and Findings 4.0 Introduction: The researcher has investigated the findings of the primary research in this chapter for attaining a genuine conclusion to the study. The questionnaire was formed according to the aims, objectives and research questions formed in Chapter-1 of the study. The researcher will evaluate and understand the impact of marketing communication approaches in value formation. Data analysis and interpretation helps the researcher in identifying the practicality of the situations and recognize the problems and solutions of the related topic (Walter and Bruch 2008). In this research, the researcher has selected 50 people from different international firms for gathering primary data. The analyst has conducted quantitative analysis for interpreting the answers of the respondents. Survey was accomplished through emails and telephonic calls. 4.1 Research Type: This research depends upon the quantitative data collection method. There have taken 50 respondent’s view for the evaluation of this research. The respondents were faced 14 close ended questions to each respondent with multiple options. The respondent had to choose one answer from their choice. The statistical method has been used for the analysis of this research. 4.2 Quantitative Data Analysis: The easiest way to present and analyze quantitative data generated through questionnaire is using the bar, charts or graphs (Carl, 2007). According to Chorng et al. (2007), the most often the tables are created after the collection of results through questionnaire and then they can be transformed into charts and graphs for presentation. For this purpose the most common and useful method is to use charts because they help to compare statistics. In this research, the data is presented through table and charts.
  43. 43. 42 Q1. How many years you have been working with present company? Years # of Respondents Total Respondents Percentage Below 1 2 50 4 1 to 2 4 50 8 2 to 3 7 50 14 3 to 4 8 50 16 4 to 5 12 50 24 5 and above 17 50 34 Figure: Working experience of respondents Answer to Q1: The survey had done among 50 respondents. Among 50 respondents there are 4 % respondents who have below 1 year working experience in present job. Whereas 8 % respondent is having experience between 1-2 years. There is another 14 % respondent who are working for 2-3 years then 16 % respondent having 3-4 % 4 8 14 16 0 2 4 6 8 10 12 14 16 18 Below 1 1 to 2 2 to 3 3 to 4 Below 1 1 to 2 2 to 3 3 to 4
  44. 44. 43 experience in their present company. 24 % respondents are working for and rest 34 % respondents are working for more than 5 years. Data Interpretation: From the above data it has been observed that maximum respondents are working for more than 5 years in their present job. It indicates that respondents are getting satisfaction in their job. They may not getting all are required things but company is trying to satisfy them as much as possible. Due to that reason they are not leaving their job. This brings opportunities to the employers and they should try to make their experienced employees loyal towards their organization. For that employee have to have some activities which will motivate them as well as make them loyal towards the company. Employees have to be provided training as well as reward them for their excellence. It will build employee loyalty which can improve the organizational performance.
  45. 45. 44 Q2. How long you have been worked for a particular company? Years # of Respondents Total Respondents Percentage Below 1 3 50 6 1 to 2 2 50 4 2 to 3 9 50 18 3 to 4 8 50 16 4 to 5 12 50 24 5 and above 16 50 32 Figure: Job period of respondents in a particular company Answer to Q2: As per the survey report there are 6 % respondents who have worked less 1 year for a particular company. On the other hand, 4 % respondent out of total respondent has worked for 1-2 years whereas 18 % respondent stayed for 2-3 years in a company. The number of respondent who worked for 3-4 years in a 6 4 18 16 0 2 4 6 8 10 12 14 16 18 20 Below 1 1 to 2 2 to 3 3 to 4 Percentage
  46. 46. 45 company is around 16 % and 24 % respondents stayed 4-5 years in a company. The rest 32 % respondents have worked more than 5 years in a company. Data Interpretation: The above data clarifies that there have maximum people who worked for more than 5 years. In spite of that they left the job. So, it has been observed that they were having trouble in that organization or might get better platform than the existing one. There have much possibility that the employees felt lack of motivation in their working environment. There might not have career opportunity in that company which demotivates employees and as a result they left the job. It indicates that the employees might change their job because, they always looking better opportunities. But, what the company can do is motivate employees and build strong relationship with the organization. It will make them thing that they are the part of organization. Employees satisfaction is must for any company to get success in the market. For that, there have to build employee loyalty which will lead to keep employees in the organization and get excellence output from them. First organization has to be loyal to their employees. It will create good relationship among employers and employees. Then organization has to focus on the fulfillment of employee needs. The satisfaction of employee comes from fulfillment of their requirements. Due to this employee loyalty has formed which can improve organizational performance.
  47. 47. 46 Q3. How many organizations you have worked with? No of organizations # of Respondents Total Respondents Percentage 1 9 50 18 2 15 50 30 3 18 50 36 4 5 50 10 5 & more 3 50 6 Figure: Number of organization the respondent work with Answer to Q3: Above data illustrates that there are 18 % respondent who mentioned that the work with only one company till present whereas 30 % respondent had been worked with 2 companies. On the other hand, out of total respondent, 36% respondent changed 2 companies before the current job. However 10 % respondent has changed 4 companies and 6% respondent said that they have changed more than 5 companies till now. 18 30 36 10 0 5 10 15 20 25 30 35 40 1 2 3 4 Percentage
  48. 48. 47 Data Interpretation: By observing the survey report, it has been noticed that people always looking for better option if the existing one is not like as they expected. So, it is organizations responsibility to keep the effective employees. The management of the organization has to implement strategies for employees to enhance their performance by motivating them. Increasing performance of the employees indicate that they have been motivated by the management of the organization. On the other hand, some organization mainly focuses on the profit of the organization. In that time, organizations concentration has diminishes from employee satisfaction. It might be a result of employee de-motivation which makes to leave their job.
  49. 49. 48 Q4. Have you satisfied with the remuneration provided by your Company? Levels # of Respondents Total Respondents Percentage Satisfied 9 50 18 Very Satisfied 12 50 24 Neutral 9 50 18 Dissatisfied 8 50 16 Very Dissatisfied 12 50 24 Figure: Satisfaction Level of Respondents in terms of Remuneration Answer to Q4: Above table and chart represents the respondent’s feedback about the satisfaction regarding remuneration provided by the company. It has seen that 18 % respondent have satisfied with the remuneration provided to them. Similarly, 24 % respondents are very satisfied regarding this. On the other hand, 18 % respondents of total respondent could not justify their answer as they being neutral. There are 18 24 18 16 0 5 10 15 20 25 30 Satisfied Very Satisfied Neutral Dissatisfied Percentage
  50. 50. 49 16 % respondents who are dissatisfied about remuneration whereas 24 % respondents are very dissatisfied. Data Interpretation: The report indicates that remuneration plays an important role in motivating employees. From the survey report it has been observed that almost 50 percent of the total respondent is not satisfied with remuneration provided to them. It clarifies that the reward system effects on employees attitude. If reward has not been provided to the workers in return of their excellent performance, it leads to de- motivation. So, organization needs to concentrate on employees motivational factors because it is very important to build employee loyalty. Due to employee loyalty the organization can enhance its performance to get competitive advantage.
  51. 51. 50 Q5. What is the level of satisfaction with promotional policies provided by your company? Levels # of Respondents Total Respondents Percentage Satisfied 14 50 28 Very Satisfied 9 50 18 Neutral 12 50 24 Dissatisfied 6 50 12 Very Dissatisfied 9 50 18 Figure: Satisfaction Level of Respondents Regarding Promotional Policies Answer to Q5: As per the feedback about the level of promotional policies the respondents view have presented by the table and chart above. Out of total respondent 28 % respondent said that they are satisfied with strategy provided by human resource management of their company. There are 18 % respondents who are very satisfied 28 18 24 12 0 5 10 15 20 25 30 Satisfied Very Satisfied Neutral Dissatisfied Percentage Percentage
  52. 52. 51 about that whereas 24 % respondents were being neutral about promotional policies. They could not justify their answer whether the strategies are effective or not. On the other hand 12 % respondent is not satisfied with the promotional strategies whereas 18 % are very dissatisfied with the terms and conditions of promotionalpolicies. Data Interpretation: The promotional policies help in motivation process and increase the performance of employees. From the above data, it has been observed that maximum number of respondent shows the positivity towards the terms and conditions of promotional strategies. It is the responsibility of management of the organization to create flexible strategies to reach employee attraction. In terms of Starbucks Company the promotional policies should be depend upon the performance of the worker as well as the attitude towards its customers. It will not only help in increasing the performance of employees but also attracts customers. Because, there are lots of competitors of Starbucks in UK itself. If Starbucks will not stress on these strategies the other companies like: Nero and Cafe Morning will take the opportunity. It will affect on the perception of employees of Starbucks and there have much possibility of change the job to other companies.
  53. 53. 52 Q6. Are you satisfied with the present human resource management system of your company? Details # of Respondents Total Respondents Percentage Satisfied 23 50 46 Somewhat satisfied 12 50 24 Neutral 8 50 16 Dissatisfied 7 50 14 Figure: Respondents view on present Human Resource Management System of their organization Answer to Q6: The above data represents the view of respondents about the present human resource management system of their organization. Among 50 respondent 46 % are satisfied with the management system whereas 24 % respondents are partially satisfied. There were 16 % respondents who did not comment about that. The rest 14 % respondent are not satisfied with the management system of their respective organization. 46 24 16 14 0 5 10 15 20 25 30 35 40 45 50 Satisfied Somewhat satisfied Neutral Dissatisfied Percentage
  54. 54. 53 Data Interpretation: From the above analysis it has been observed that majority of respondents are satisfied with their management system which operates the organization. It indicates that professionalism brings efficiency as well as implements proper management system. Now-a-days, organizations are managed by professional human resources who help in efficient and effective use of various resources of the organization. Various human resource management strategies have to be implemented by the administrative department. There need to specially take care of workers through which the company aims to achieve its target. The employees have to be motivated to improve their work performance and try to build employee loyalty.
  55. 55. 54 Q7. What is the level of satisfaction with present human resource management system? Levels # of Respondents Total Respondents Percentage Very High 16 50 32 High 12 50 24 Neutral 5 50 10 Low 8 50 16 Very Low 9 50 18 Figure: Satisfaction Level of Respondents Regarding their Human Resource Management System Answer to Q7: The above data represents the respondent’s views about the level of satisfaction with their present Human resource management system. The 32 % employee of different companies has very highly satisfied with the management system of their company. Another 24 % respondent also shows satisfied with their human resource management system. Among total respondents 10 % respondents were being neutral regarding this issue. On the other hand, there are 16 % respondents 32 24 10 16 0 5 10 15 20 25 30 35 Very High High Neutral Low Percentage
  56. 56. 55 working with different companies mentioned that they are not fully satisfied with the management process of their company. The rest 18 % respondent are not satisfied at all with their management system as their level of satisfaction is very low. Data Interpretation: The survey report among different respondents indicates that human resource management plays a very essential role in terms of employee satisfaction. On the other hand satisfaction is directly related with employee loyalty. So, the human resource management can help to make the bridge between employee satisfaction and employee loyalty. As a result, the performance of the organization increases which can delivers to its customer. The management system of Starbuck Company needs to implement flexible strategies to its employees which will give advantage over other competitors like: Nero and Cafe Morning that known to be good competitor of Starbucks. There were some respondent, belong to Nero and Cafe Morning out of total respondents. Through their view it has been observed that they are implementing various strategies to improve the employee’s performance of their employees to build loyalty. It has not only applied by Nero and Cafe Morning, almost every company is trying to implement different strategies to get employee loyalty. It creates profitability of the organization.
  57. 57. 56 Q8. How many times you rewarded for your outstanding performance? Details # of Respondents Total Respondents Percentage 1-3 28 50 56 4-6 12 50 24 7 & Above 6 50 12 Never 4 50 8 Figure: Respondents rewards provided by their respective company Answer to Q8: The above data represents the respondent’s judgment regarding rewards provided by the organization in return to their excellent performance. Out of total respondent there are 56 % respondent mentioned that they get rewarded by the organization 1-3 times. There are 24 % respondents who have been awarded for their outstanding performance whereas 12 % respondents get awarded for more than 7 times. On the other hand, the rest 8 % people out of total respondent never get rewarded by their company. 56 24 12 8 0 10 20 30 40 50 60 1-3 4-6 7 & Above Never Percentage
  58. 58. 57 Data Interpretation: It has been observed that companies are providing rewards as per the performance of employees. It helps companies to enhance the performance of employees and motivates them to concentrate on the goals of the organizations. If one employee gets rewarded for his performance, it encourages other employees to work hard to get awards. In that way the performance of the employees increases which leads to enhance the organizational performance. On the other hand, rewards system creates positive impact on employee’s perception. It can motivate them to being loyal towards its organization.
  59. 59. 58 Q9. Is there any opportunity for career growth in your organization? Details # of Respondents Total Respondents Percentage Yes 25 50 50 May be 7 50 14 Can’t say 4 50 8 No 14 50 28 Figure: Respondents view regarding career growth opportunities in their organization. Answer to Q9: The above data represents the respondent’s view regarding the opportunities for their career development in the organization. By acknowledging their respective organization 50 % of respondents said yes in terms of getting career growth opportunities. According to 28 % respondents, there may have career opportunity program in their organization. But they are not aware of that or they have not been provided. Another 8 % respondents could not justify their answer. On the other 50 14 8 28 0 10 20 30 40 50 60 Yes May be Cant say No Percentage
  60. 60. 59 hand, 28 % respondents said that there have no career growth opportunities in their organization. Data Interpretation: By observing the above data analysis, it can be said that there should have career growth opportunities in an organization. It will not only motivate employees but also make the relationship stronger between employers and employees. Career development programs of an organization give a platform to its human resources to enhance their performance which also helps in their personal growth. It makes the organization responsible and loyal to its employees and which helps in building employee loyalty.
  61. 61. 60 Q10. What is your view on fulfillment of training and development of your company? Levels # of Respondents Total Respondents Percentage Very High 11 50 22 High 15 50 30 Neutral 5 50 10 Low 10 50 20 Very Low 9 50 18 Figure: Respondents view regarding fulfillment of training and development in their organization. Answer to Q10: Answering the question about the fulfillment of training and development of employees, 22 % respondent shows that they are highly satisfied with that. Another 30 % respondent also feels the satisfaction but the level of satisfaction is little bit low. On the other hand 10 % respondents were being neutral as they could 22 30 10 20 0 5 10 15 20 25 30 35 Very High High Neutral Low Percentage
  62. 62. 61 not justify their answer. There are 20 % respondents who are having low level of satisfaction regarding training and all whereas, rest 18 percent respondent were not satisfied. Data Interpretation: Through the analysis of following data, it has been observed that maximum number of respondents is getting training as well as opportunities for develop their career. These facilities help employees to their personal growth. It can enhance their performance as well as bring satisfaction to its customers. The Starbucks Company would provide training and offer career development programs to its employees to enhance their performance. In a way, it will motivate employees to being loyal to their company. If it happens, then employee will lead to enhance the organization’s performance by giving their best effort.
  63. 63. 62 Q11. What is your level of loyalty towards the organization? Levels # of Respondents Total Respondents Percentage Very High 16 50 32 High 19 50 38 Neutral 5 50 10 Low 8 50 16 Very Low 2 50 4 Figure: Respondent’s Level of loyalty towards their organization Answer to Q11: As per the above data presented through table and charts, 32 % respondents out of total respondents are in favor of very high level loyalty towards their organization. There are 38 % respondents who are highly loyal towards the organization whereas 10 % respondents were being neutral. On the other hand, 16 % respondents are in favor of low loyalty and rest 4 % respondent are having very low level loyalty towards its organization. 32 38 10 16 0 5 10 15 20 25 30 35 40 Very High High Neutral Low Percentage
  64. 64. 63 Data Interpretation: Based on the data analysis, it has been observed that maximum numbers of respondents were loyal towards their company. It happened due to employer’s loyalty to its employees. It effects in build trust, honesty, sincerity between employers and employees. If the employers take care of its employees then employees also willing to being loyal towards its employers which leads to improve organizations performance.
  65. 65. 64 Q12. Are you thinking of leaving this organization? Details # of Respondents Total Respondents Percentage Yes 9 50 18 Maybe 7 50 14 Neutral 5 50 10 Can't say 10 50 20 No 19 50 38 Figure: Employees perception towards leaving the organization. Answer to Q12: The respondent’s feedback regarding leaving their present job represents the above data. There are 38 % respondents who are in favor of the organization as they are not leaving their organization. Another 14 % people said that they may leave the job whereas 10 % people were being neutral. On the other hand, 18 % people out 18 14 10 20 0 5 10 15 20 25 Yes Maybe Neutral Can't say Percentage
  66. 66. 65 of total respondents are planning to leave their job whereas 20 % people are not sure about that. Data Interpretation: Based on the above analysis, it can be said that maximum respondent do not want to leave the organization. It indicates that they are getting proper facilities whatever they required. The company may not able to fulfill the all their requirements but trying to satisfy their employees as much as possible. It creates value within the organization which makes the relation of employee and employer stronger. It brings loyalty from the employee side as well as employer side. It creates impact on organizations performance through which company can able to deliver value to its customer. In that way organization can gain customer loyalty also which will give competitive advancement.
  67. 67. 66 Q13. Why are you thinking of living the organization? Reasons # of Respondents Total Respondents Percentage Lack of Motivation 12 50 24 Work Pressure 9 50 18 Difficulties in communication 10 50 20 Dissatisfaction with management system 10 50 20 Other Reason 9 50 18 24 18 20 20 0 5 10 15 20 25 30 Lack of Motivation Work Pressure Difficulties in communication Dissatisfaction with management system Percentage
  68. 68. 67 Figure: Reason behind leaving the organization Answer to Q13: The above data represents the feedback of employees regarding the problems they are having in their present job. There are 24 % respondents who are suffering from lack of motivation. 18 % people out of total respondents mentioned that they have so much work pressure in their job, so that they cannot continue the job. On the other hand 20 % people having difficulty in communication within the organization whereas 20 % people are not satisfied with the management system of their organization. The rest 18 % people have some other problems, which make them to leave the job. Data Interpretation: Through the presented report it has been observed that employees have problem with those factors which can lead to employee loyalty as well as enhance organizations performance. It shows the ineffective management system of the organizations. These organizations need to follow effective marketing strategies which can help in motivating human resources of the organization. Organizations need to concentrate on motivation of employees through proper communication. The organization should not put very difficult task which an employee cannot effort within a particular time. It means the task have to be reasonable to them. The facility which have necessarily required to the employees must be fulfilled by the organization. Q14. Employee loyalty can enhance organization’s performance.
  69. 69. 68 Levels # of Respondents Total Respondents Percentage Agree 30 50 60 Somewhat Agree 10 50 20 Neutral 4 50 8 Disagree 5 50 10 Strongly Disagree 1 50 2 Figure: Respondents view on employee loyalty Answer to Q14: The above data represents the respondents feedback collected through survey. There is 60 % out of total respondent who agreed that employee loyalty can improve organization’s performance. Another 60 % respondent are somewhat agree with that whereas 8 % respondents could not justify their answer. On the other hand, 10 % respondents opposed it and rest 2 % respondent strongly disagree. Data Interpretation: From the analysis of above data, it has been observed that maximum respondents believe in employee loyalty which can improve the performance of the organization. 60 20 8 10 0 10 20 30 40 50 60 70 Agree Somewhat Agree Neutral Disagree Percentage
  70. 70. 69 As an employee of their respective organization they feel the importance of loyalty. It needs to be understood what factors motivates them to be loyal to their company. The employees understand their role in their organization. They know that they are the strength of the company. So, their requirement also increases day by day stepping with increasing work pressure as well as the overall performance of the organization. So, it is organization’s responsibility to fulfill the requirements of employees to make them loyal to the company. It will help the organization to get success in long run. 4.3 Conclusion From the overall discussion, it has been observed that the employee loyalty can help helps in enhancing organizational performance. The above analysis examines the factors that lead to employee loyalty in terms of increase the performance of the organization. Based on the data analysis, it can be demonstrated that various factors have influence on employee loyalty. Employees tend to go to better position. They are looking for a better opportunity. So, organization has to be very conscious about that. It they unable to fulfill the requirements of employees then there have much possibility of losing employees. So, organization has to focus on employee loyalty which comes through motivation. It has seen that because maximum respondents are being loyal to their company whereas some of them are dissatisfied with the management system. They either dissatisfied with communication, facilities, ineffective motivational factors or management strategies. These problems stay as the obstacles in the way of employee loyalty. It is very necessary for the organization to implement proper management strategies which can influence employee in terms of employee loyalty. So, it has been evident that the employee loyalty plays a very important role in improving the performance of an organization. It can give the competitive advantage to the company. Thus null hypothesis is accepted.
  71. 71. 70 Chapter 5 Conclusions and Recommendations 5.0 Conclusion: This chapter will stress on the final result of the research study which will link the conversation with the objectives. There will be some recommendation for future prospect of the study. Here, in this chapter the limitations of this study will be pointed out. It will basically concentrate on the data analysis part through which the decision can be made. The aim of the research was to understand the impact of employee loyalty towards the organizational performance in terms of UK’s Starbucks Company. This study had evaluated the literatures of organizational behavior as well as marketing strategies to understand the issue. On the other hand the collected data has been presented through tables and charts as well as evaluated to get answer of the research question. The mind set of workers towards its company recognizes the workers loyalty. Good performance of the workers indicates the loyal behavior towards the company to achieve its aim. The loyalty brings efficiency in their working process through which organization delivers quality to its consumer. As opined by Julie and Arthur (2008), employee loyalty defines the element of human performance in an organization. To get success in long run, employee retention plays a very important role in favor of the organization. On the other hand, in present scenario, the human resources have been managed in such a way that it can lead the organization in a successful position. Through this, it can not only able to deliver value to its consumers in terms of product or service but also helps in getting competitive advancement. It is not a big deal to the organization to spend something for their company. Because the foundation of success is build by the workers of the organization. The main thing that the organization has to do is concentrate on those issues which can build employee loyalty.
  72. 72. 71 From the overall discussion following issues have been found out which can form employee loyalty as well as enhance organizational performance.  Effective communication process in the organization between employees and employers.  Create an effective working environment.  Must focus on employee satisfaction.  Ensure that employees get proper information regarding all happenings of the organizations.  Concentrate on employee empowerment  Fulfill organizations commitment towards its employees.  Provide opportunities for career growth of employees.  Organization should not hide anything from employees which can de-motivate them.  Organization has to provide clear information regarding the aim and objective of the organization.  Give chance to employees to set their view.  Managing proper facility etc. 5.1 Linking with objectives: Objective 1: To determine the factors that affect employee loyalty within Starbucks For achieving this objective the researcher has determined the various factors that influence on employee loyalty. These factors motivate employees which brings loyalty among them. The human resource management system of Starbucks giving more concentration on motivating employees as the employees of Starbucks is facing lack of motivation. From the data analysis of various respondents it has been observed that due to lack of motivation people tend to change the job to other company. In UK, there have lots of good competitors of Starbucks such as: Café morning, Nero etc. If the employees of Starbucks faced problem with the management than they might shift to other companies. The employee who has experience with Starbucks will get good chance in other companies because it is amongst the top companies of UK. In

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