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.
Implementation of the of Servant Leadership Principles in the Organization
The basis of Starbucks’ operations and policies is to connect with the staff so that they can better the organizational
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The main stakeholders of Starbucks include the employees, customers, suppliers, investors, environment and the government (Thompson, 2015). Starbucks gives priority to their staff and ensures that they are happy with the provision of better working conditions, job security, and higher wages. Thus, the company builds the community, facilitating the growth of the employees. The company listens to their customers to improve the quality of service and products. For instance, Starbucks creates a warm and friendly relation with customers to satisfy their social responsibility with this stakeholder. By ensuring their suppliers are properly paid through their Coffee and Farmer Equity (CAFÉ) program, Starbucks fulfills their commitment to the suppliers through awareness. The company creates eco-conscious stores (Starbucks Corporation, 2016) and ensures to follow environmentally sound business practices using their foresight. Starbucks supports the emergency relief services. In 2005, they helped rebuild the Hurricane Katrina struck areas (Adams, 2007). Through their high financial performance in the industry, the company meets the interests of the investors proving the ability to conceptualize. Being an international company, Starbucks remains respectful of the people’s perspectives from the respective governments. Thus, they satisfy their commitment and …show more content…
In 2014, the Starbucks offered the free college education for the employees (Lichtenwalner, 2014). Starbucks used empathy, awareness, and foresight to nurture the spirit of the staff to help build a community with empowered people through this move. This action demonstrates that the company continues to follow the principles of servant leadership.
This move might have caused conflict within the organization about the profitability. This is because the people could just join the company for the free tuition and leave which would cost the company great losses (Rooney, 2015). However, by taking such a prominent step by the leadership, the company 's stock has only risen consistently since then. This denotes that, the attempt of leadership to assist the employees with the higher education helped raise the company to greater heights.
Benefits for the Organization The quality of any organization that uses servant leadership improves, because of the organization’s continuous efforts on development. These efforts help create more efficient, content, empowered and innovative teams to generate more profitability (Schmidt, 2013). Starbucks’ employee satisfaction rate has increased and they have markedly grown since 2014 with their attempt to build a community by offering the free college tuition (Business Wire,
Servant leadership is a perplexing theory. It takes on radical ideas like a lifetime employment policy, or employee-wide furlough, to illustrate how putting the leader at the service of their employees can result in efficient leadership. “When individuals engage in servant leadership, it is likely to improve outcomes at the individual, organizational, and societal levels (PSU, 2014)". The servant leadership actions of Charlie Kim and Bob Chapman depict how the proper use of servant leadership creates trust, and inspires productivity; benefiting their organization, their employees, and
Starbucks mission statement states: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” The corporation focus on the local communities and takes a proactive strategy to be a part of their lives. According to the Starbucks’ principles, every single store is a part of a community and it is a responsibility to live in a good relations with everyone. Instead of looking for an opportunities to expand in the most profitable places, it would rather be invited to do business in particular areas. Also, the company principle states that the business can take the lead in changing and helping in improving the society around. It is going to be a force pushing everyone ahead.
Servant leadership, as defined by Spears (2010) “Servant leadership seeks to involve others in decision making, is strongly based in ethical and caring behavior, and enhances the growth of workers while improving the caring and quality of organizational life”. Spears (2010) goes on to describe ten pillars of servant leadership: listening, empathy, healing, awareness, persuasion, conceptualization, foresight, stewardship, commitment to the growth of people, and building community. Listening is not only listening with purpose to the employee but also communicating the views and goals of the organization to the employee. Empathy is about understanding and accepting employees as well as recognizing employee efforts. Healing aids in helping employees on an emotional level, employees go through turbulent times throughout their career; therefor the servant leader is a liaison within the relationship. Awareness, self-awareness strengthens the leader values and ethics, awareness aids the leader in looking at problems from a more integrated approach. Persuasion is seeking to convince rather than coerce employees or persuading employees rather than using an authoritarian approach. Conceptualization is looking beyond day-to-day problems and dreaming big, while day-to-day operations are important for the organization, leaders must keep their eye on the bigger
Many leadership styles exist. The determining factor if a leadership style is effective or not is often how it is carried out and if it is appeasing to those, the leader is attempting to lead. One of the leadership styles that has become popular is Servant leadership. Although Greenleaf developed servant leadership more than thirty-five years ago and he identified ten characteristics that pertain to servant leadership. (book p. 56) Servant leadership has been successful in various industries and its popularity continues to increase.
Steward or Servant-leadership characterizes a model of leadership in which the leader undertakes a supportive, service orientated role among stakeholders and employees. The leader assists by building the skills of employees, minimizing obstacles, and enabling creative problem solving and innovation. “The characteristics associated with servant leadership include incorporating active listening, empathy, healing, awareness, persuasion, conceptualization, foresight, stewardship, commitment to the growth of people, and community building” (Spears, 2002). Servant leaders build up their employees and surround themselves with good people and then motivate them to achieve greatness and this starts at the top within BMW
One of the main problems which Starbucks is currently facing is the watered down “Starbucks experience”. Over the years the baristas and the atmosphere of Starbucks locations have lost the appeal which they originally possessed. The baristas which work at Starbucks have lost their personal touch of customer service, as well as the connection which should be made with the customers. If baristas were taught how to properly make drip coffee, engage the customer, teach them about the product which they are consuming, etc. then the company could bring back the original vision. A passionate barista which knows about the product has the ability to teach consumers, as well as share the craft that is roasting coffee. Another problem which has occurred over the years is the lack of pos...
Starbucks not only shapes a defined importance on its product, the coffee, but also the relationships on its partners, its customers and its shareholders to create diversity, “to create a place where each of us can be ourselves” (Starbucks Coffee), to treat all related partners with dignity and respect at the greatest corporate level. In this sense, Starbucks involves its customers, its neighbors and is shareholders to participate in the community to “be a force for positive action—bringing together [its] partners, customers, and the community to contribute every day (Starbucks Coffee).
There are many topics that arise throughout the case with Starbucks Corporation. Starbucks Coffee is located worldwide and there are many different ways to look at this situation. The company offers a unique range of coffee, lattes, espressos, and café style drinks. The company intended to reach a specific target audience, but has ended up in many different markets and has been growing rapidly. Starbucks has greatly used the “youth appeal” strategy to gain entrance into new markets. However, such enthusiasm cannot be counted on indefinitely; other strategies are always in the works. Over time Starbucks has been able to acquire a solid brand reputation and has a world renowned company logo.
Starbucks began its retention plan by analyzing their employees’ needs. The analysis drew variables of importance, such as positive culture, employee development, and benefits. As a result of the analysis, Starbucks CEO, Howard Schultz, came up with a plan to start a long-term retention program in his company. Mr. Schultz made sure that “he made it a point to put himself at the top of a respect pyramid in which he would be sure to be kind to everyone in the company with whom he interacted, with them passing on the respectful treatment, right down to the pyramid’s base”(“How Starbucks retains its employees”). The company also set up an online portal for employee development. Starbucks also launched a program to help its employees to achieve a college education. This educational program sends employees to Arizona State’s online program, providing juniors with free tuition and sophomores with financial aid. As a result of this initiative, Forbes (2015) has named Starbucks as one of “America’s Best
The Starbucks Corporation is built around an experience, the Starbucks experience. While the Starbucks experience is most notably associated with the way customers are treated, one could argue however, that the Starbucks experience transcends just the way customers are treated. The Starbucks experience is an all encompassing culture that revolves not just around customers but also to employees, or “partners” and suppliers. Burks (2009) notes that the company cares about the footprint it leaves, no matter where it does business; “the company is dedicated to making positive contributions to the communities where it doe...
Servant leadership, it is to make certain that other people’s highest priority requests are being served. Starbucks has an objective to ensure that the top priority needs are being served with each cup. Servant leaders lead in methods that serve the greater good of the organization, community, and society. Starbucks exhibits servant leadership and goes beyond the needs of its customers to the needs of the
One of the main problems that Starbucks is facing at the present time is the ability to maintain national competitive advantage (Monash South Africa, 2014). Due to their local demand conditions, Starbucks tries to satisfy all customers by trying “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks Corporation, 2014). Local demand conditons consist of a company trying satisfy needs of their closest customers and expanding their competitive advantage by upgrading their strategic management policies (Monash South Africa, 2014).
Founded in 1971 at Seattle’s Pike Place Market, Starbucks Coffee, Tea and Spices, as it was originally called, has been “brewing-up” its famous blends in over 43 countries, including the United States. Now called Starbucks Coffee Company, business isn’t just about the coffee and tea anymore. Starbucks has its own line of bottled water, handcrafted beverages, fresh food, entertainment, merchandise and a Starbucks Card. The company has received numerous awards for their outstanding business practices. Fortune Magazine has ranked them as one of “The Best 100 Companies to Work For” in 1998, 2000, 2002, and 2008 (Starbucks, 2008). The Starbucks Experience provides consumers and the general public a direct line a of business communication. From friendly baristas to press releases from CEO Howard Schultz, Starbucks keeps its “partners” informed.
Everything centers on the organizational culture within Starbucks. While being a customer service-based company and understanding that the customer satisfaction and loyalty are what will make the company profitable, Starbucks takes a different approach to customer service than other companies. By hiring employees that fit in the organizational culture (ICFAI, 2005) and treating their employees well (Lefevere, n.d.), Starbucks brings in and retains customers through their happy employees. The qualities that Starbucks hires for are "adaptability, dependability and the ability to work in a team" (ICFAI, 2005). The culture is supportive and laid back (Montana, 2005). Howard Shultz, Starbucks president and CEO, has the theory "that if you treat your employees well, they will treat your customers well" (Starbucks, 1997).
Starbucks recognizes its employees for much of its success. This is due mostly to maintenance of a great and proven work environment for all employees. The company does not have a formal organizational chart; sot employees are permitted by management to make decisions without a management referral. Moreover, management trust and stands behind the decision of the employees and it is this that allows for employees to thinks for themselves as a part of the business, so as to make them feel as a true asset and not as just another employee.