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The history of the Starbucks corporation
Historical development of starbucks
Historical development of starbucks
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In today’s successful organisations, the most important focus is managing individual employee satisfaction and motivation, apart from complying with formal rules and operating procedures, to maintain high qualityproductivity. Unlike the classical perspectives of management such as Scientific Management and Bureaucracy, “the importance of informal social factors in the work place such as co-worker relationships and group norms that influence employee motivation and performance is highlighted” (Macky & Johnson, 2003, p.82) under the ‘Human Relations Movement’. This essay will discuss how the Human Relations Movement has been adapted and carried out successfully in New Zealand by the restaurant chain, Starbucks Coffee. By focusing on the principles of maintaining a socialised natural group working environment and two-way communication between employees and managers, this essay will demonstrate how they became the most powerful and well-known coffee franchise restaurant in New Zealand market.
To start with, the Human Relations Movement firstly emphasises the importance of the working environment for employees as a socialised natural group in which social aspects for both employees and managers take precedence over functional organisational structures. Elton Mayo, who was called “the founder of both the Human Relations Movement and of industrial sociology” (Pugh & Hickson, 1989, P.152), had the basic idea that “workers had strong social needs which they tried to satisfy through membership of informal social groups at work place” (Nicholson, 1998, p.215). Opposing the classical perspectives of management principles of the Scientific Management and Bureaucracy, Mayo claimed that scientifically clarified rules, strict work procedure and incentive money payments were not the only stimulus to inspire workers and that they were “less factors in determining output than were group standards, sentiments and security” (Robbins, Millett & Waters-Marsh, 2004, p.815-816) after he proceeded an experiment, called the ‘Hawthorne Experiment’. According to the Hawthorne Studies, employees were motivated to work harder and efficiently when managers provided a more comfortable and informal working environment taking into account individual satisfaction and their personal needs rather than manipulating employees by way of higher remuneration. Mayo demonstrated that an organisation could not generate much beneficial output if managers “treat workers simply as economic individuals wanting to maximise pay and minimise effort” (cited Nicholson, 1998, p.215). As a result, “managers would no longer consider the issue of organisation design without including the effects on work groups and employee attitudes” (Robbins & Barnwell, 2006, p.47). They now see their jobs as dealing with human beings rather than simply with work.
Managers know the importance of having positive relationships with their employees. It boosts the company’s goals while the lack of any relationship with the workers may lead to losses in the business. Most managers rarely know that they are looked up to by many employees and, as such, should be careful with the actions they take. Lee b. Bolman & Terrence E. Deal, the authors of the book The Reframing Organizations, point out that the kind of measures taken in the business influences the employees acts and thoughts. In particular, this book gives insight to managers on how to relate to their subordinates. The discussion is carried out on the three parts of the book that highlight the missteps taken by managers as they try to improve their businesses.
Human Resource Management (HRM) is the administration and control of employees. Its purpose is to ensure that the workers and the employer cultivate a valuable relationship. As a result, the company will record an exceptional performance particularly with regard to employee productivity (Paauwe, 2004). Further, the workers will benefit in terms of job satisfaction and self-development (Paauwe, 2004). Some of the activities involved in managing workers include selection and recruitment, training, development, motivation, and appraisal (Sharma, 2009). This paper aims to analyse the role of human resource management in organisations and its linkage to the wider organizational strategy using Tesco and Harrods as illustrations.
One of the leading organizations that follow the servant leadership style is the coffee giant, Starbucks. The basis of the company’s organizational culture is the servant leadership principles. These principles pervade every aspect of their business. The company believes in caring their employees first, as they are the one who takes care of the customers (Ferguson, 2015). The hiring and management of the staff, the way the staff work and interact with one another, serving the customers all represent the organizational culture, their policies, and operations.
The work place is something we can all relate to because we all have had a job at some point in time and we all understand that we act differently when we are at work compared to when we are with our friends at the bar or with our family at dinner. These are all different types of social systems that we belong to. The social system I will be using the Johnson Framework to analyze our behaviors is my current employment at the Bucyrus Arby’s. Arby’s is a fast food franchise that specializes in selling roast beef sandwiches and is considered higher quality that McDonalds but lower quality than Chipotle. For this paper, I will discuss my role and my coworkers roles in this social system using the Johnson framework.
Under, Douglas McGregor’s theory Y it states that “people enjoy the mental and physical purpose that work provides”. Without having a structure which provides managers, no one person can give formal recognition to good employees, therefore not allowing for more contributions from employees. Without a clear authority figure, such as a manager, employees might not feel that there concern is acknowledged, and may even threaten to strike, or even completely stop working if they don 't receive acknowledgement for their
Whole Foods build human capital with a strategic plan of empowering the intelligence and the eagerness to learn of their employees, and the enthusiasm and motivation of their employees. Through building a community of individuals that has a willingness to learn and improve and develop their skills, Whole Foods can increase their ventures into other factors. Their plan of hiring virtuous and sharp operatives ensues their commitment offer ample productivity and excellent customer service. In Joseph H. Bragdon’s article, “Capitalism as a Human System: The Value of Relational Equity,” he insists that organizational leaders that understand the benefit of human capitalism build values that stimulate growth and increase profit (Bragdon, 2009).
Since the end of the 19th century, when factory manufacturing became widespread and the size of organisations increased, people have been looking for ways to motivate employees and improve productivity. A need for management ideas arise which lead to classical contributors such as Frederick Taylor and Henri Fayol generating management theories such as Taylor’ Scientific Management and Fayol’s Administrative Management. In the late 1920’s and early 1930’s the Hawthorne studies were conducted where Elton Mayo was the predominate figure and contributed to the Behavioural viewpoint. This brought about a Human Relations Movement which included Douglas McGregor’s Theory X and Theory Y approach. Similarities and differences can be found between the theories due to the relevant time period they were implemented, the motives or goal of the theory and how they view organisations. However the use of contingency theory can help negate the dissimilarities which occur as it allows the relevant elements from each theory to be applied to specific situations.
There are many variables that determine how well a company operates. Effective communication, conflict resolution, motivation and employee’s self-satisfaction are some aspects that are necessary for a business to thrive. Abraham Maslow’s “Hierarchy of Need” suggests that in order to be satisfied, people have subconscious demands that should be met. The first level of his triangle design is the physiological need to survive. The second level is security; whether a person feels safe or not. The third, and most important, level for an organization’s productivity is affiliation, which is the need to feel loved or have a sense of belonging. Therefore, for one to moil in workplace, one needs to see oneself a part of the organization rather than a
Global talent management plays a central role in improving employee engagement, commitment and retention rate at all levels through developing a strong international mindset (Sparrow, 2006). A separate operating units strategy is recommended, it would allow Cafe Expresso clearly focus on local needs and culture, thus, maximizing employee performance
It is said that there is no such thing as failure, instead we have results. This was the idea that gave rise to the start of a company and later shooting of this video, in the outskirts of Addis Ababa in Africa. The video is about a shoe company called oliberte, which prides itself as the first company to be offered a fair trade certification. The founder, Mr. Tal Dehtiar has appreciated and employed great motivation methods in the growth of his company in a challenging environment (Oliberte, 2011). Motivation’s purpose is to initiate, guide and maintain goal oriented behaviors on the person that it is applied to. It can be driven by biological, social, emotional or cognitive forces. People are motivated to behave in a certain way because it is a core creational component of the human race. The two motivational theories that can be seen in this video are Mayo’s theory of human relations and Maslow and Herzberg’s theory of human needs (Latham, 2007).
Hawthorne Studies have been subjected to many criticisms. Yet, the evolvement of many of the management theories today would not have come about without the experiments done by Elton Mayo. This essay will cover the various aspects of management that has been refined through the findings of the tests conducted and how improvements were made to aid in the development of organisational behaviour. It will also discuss the various studies and will show how these theories implement Hawthorne studies as the foundation and the basis of the human relations movement. It will also investigate the criticisms that arise within it.
The importance of Human Resource management is associated with the beginning of mankind. As the knowledge of survival had begun including safety, health, hunting and gathering, tribal leaders passed on the knowledge to their youth. However more advanced HRM functions were developed as early as 1000 B.C and 2000 B.C. Since the modern management theory took over, the working environment was transformed into a more friendly and safe work place. The workers were termed as most valuable resources. While some companies took the human side of employment seriously, there were others who did not find it mandatory. Hence they faced huge labor unions and factory shut downs (Henning, 2001).
Thompson, P & Mchugh, D 2002, Work organisations: A critical introduction, 3rd edn, MacMillan Palgrave, New York, viewed 4 April 2014, http://site.ebrary.com.ezproxy.uow.edu.au/lib/uow/docDetail.action?docID=10038997&p00=organisational+behaviour.
In this assignment I will be looking at the role played by the Personnel Management to Human Resource Management (HRM) for Sainsbury's and there historic developments. I will also be looking at how the existing HR function for Sainsbury's could be developed to work more effectively with the rest of the organisation.
In Today’s world, the composition and how work is done has massively changed and is still continuing to change. Work is now more complex, more team base, depends greatly on technological and social skills and lastly more mobile and does not depend on geography. Companies are also opting for ways to help their employees perform their duties effectively so that huge profits are realized in the long term .The changes in the workplaces include Reduction in the structure of the hierarchy ,breakdown in the organization boundaries , improved and better management tactics and perspectives and lastly better workplace condition and health to the employees. (Frank Ackerman, Neva R. Goodwin, Laurie Dougherty, Kevin Gallagher, 2001)