Hr Philosophies

Strategic Human Resource Management

Starbucks

Submitted to: Prof. Malou Dimasakat

Submitted by: Shiela A. Sandigan

HR Philosophies

Starbucks is an Equal Employment Opportunity Employer. All partners and applicants will be treated fairly, without regard to race, color, religion, sex, national origin, age, disability, sexual orientation, marital status, veteran status, gender identity and expression, genetic information, or any other basis protected by local, state, or federal law. This Policy applies about all aspects of one’s employment, including hiring, transfer, promotion, compensation, eligibility for benefits, and termination. Failure to comply with this Policy and related Standards will result in disciplinary action, up to and including termination of employment

HR Strategies, Policies, Processes, Practices and Programs

The Starbucks Corporation utilizes its human resources practices and policies as a strategy to gain competitive advantage and drive the overall success of the company and its globalization efforts. The purpose of this research paper is to analyze Starbucks’ recruiting practices, training structures, and overall human resource management strategies in order to give insight into how the Seattle based coffee company stands out from its competitors and remains a successful enterprise in spite of the challenges facing it.

Starbucks’ Human Resource Management Practices

The Starbucks Corporation sees its employees as a key part of its view of itself as a business serving the community; its employees are vital for its growth, helping the business grow and thrive.  To work at Starbucks is much like working with friends, its website claims; the company understands appreciates, respects, and includes different kinds of people.  It is a company that also embraces diversity.  Starbucks provides all employees and their same-sex or opposite sex-partners comprehensive health benefits that include medical, dental, and vision care as well as tuition reimbursement, stock options, vacation, and the 401 (k) retirement plan. Starbucks is also company that practices open communication.  It keeps employees or “partners” frequently informed, its senior leaders frequently holding “Open Forum” events to answer employee questions and mitigate issues or concerns.  Starbucks believes that it is important to hire those not just for the ability to be trained in cafe work and customer satisfaction, but also those with an aptitude for social consciousness.  Its mission is to inspire and nurture the human spirit “one person, one cup, and one neighborhood at a time”.  The company is well-known for its ethical sourcing of coffee from farmers all over the globe and environmental leadership (by 2015 all its cups will be reusable or recyclable).  It is also renowned for its community involvement through volunteer work in neighborhoods where stores are located.

Performance Management, Benefits, and Customer Satisfaction

Starbucks has offered a variety of training programs to provide employees sufficient knowledge of the company’s values and how to foster it amongst their customers.  According to Obloga (2011), “First Impressions” has given insight to baristas as how to interact with customers in terms of service principles.  Employees are made aware of the company’s history and learn how to perform coffee preparation and use a cash register.  In addition, they learn the right kind of communication skills to interact optimally with customers in order to create the environment that Starbucks aims to promote.  Starbucks has tried to develop its human resources practices and make them stronger to the extent that employees have better relationships with their managers and feel connected to the organization.  Starbuck’s has gained admiration and recognition by being a pioneer in offering the same benefits to part-time workers as are offered to full-time employees. Such benefits include health care, dental, and vision insurance.  Benefits also cover alternative medical treatments, such as hypnotherapy and narcotherapy.  Starbucks additionally, offers their employees benefits such as income protection, saving plans, partner discounts, and free drinks on a regular basis.  Another unique benefit of Starbucks is their “Adoption Assistance Program,” which reimburses employees a certain amount of expenses incurred during a child adoption process.  Noe et al. (2010) stated that such benefits serve to increase employee motivation, recognition, and retention; they also assist in decreasing employee turnover.  

Fundamentally, Starbucks believes its baristas are the key feature to the Starbucks experience and customer satisfaction.  Starbucks wants them to have coffee knowledge and product expertise, providing great customer service.  For example, to make sure that customers were delighted and served coffee to high-quality standards, Starbucks closed most of its stores in 2008 for a full day training event (Noe et al., 2010).  The training event, known as “Perfect the Art of Espresso,” was held to help baristas deliver high-quality espresso.  One activity involved pulling an espresso shot and then evaluating and reflecting upon the process and the product. (Did it take too long or too short a time? Was it the right color?).  Staff discussions about how the training would be of use to customers occurred at each store (Noe et al., 2010).  This highlights the degree to which the company values the training of its baristas and views the importance of their role in the Starbucks experience.