In 1971 Starbucks had began with a single store. Starbucks goes by their philosophy, "leave no behind." Keeping this in mind, provided for new hires is 24 hours of on the site training. During this training period they learn how to greet, meet, and satisfy their customers. It is during this time that all employees learn the fundamentals about coffee. Full health-care benefit package including dental, vision, medical, and other services is provided for Starbucks employees. These benefits are available for part-time employees as well. EAP is made available to all employees as well. The employees of Starbucks can share the growth of the company via "Bean Stock" that amounts up to 14% of their pay. They are also offered a stock investment plan that allows employees to buy shares of Starbucks common stock at a discounted price of 85 percent. Employee contributions are also matched by the company and put into their "Future Roast." The 401k plans add anywhere from 25 to 150% of the first 4% pay, deepening on the duration of the employee. Sound like an amazing place to work? We will learn the positive and negatives of Starbucks throughout this essay!
Three friends are to blame for the creation of Starbucks. Zev Siegl, Jerry Baldwin, and Gordon Bowker were college friends. The year 1971 marks the first store named Starbucks Coffee, Tea, and Spice n Seattle, Washington. They roasted coffee beans to restaurants and individual customers. In 1982 the trio had increased to four stores. After questioning why a small company needed a large number of percolators from Hammerplast, Howard Schultz had decided to join Starbucks as the director of retail sales, and marketing. Schultz proved to be very successful after opening up his own shop named Giornale. The three who started Starbucks decided to sell their corporation to Schultz. It wasn't until 2002 that Starbucks grew from 17 stores to 5,688 that had spread over 30 countries. In 2005 Starbucks was ranked the 11th best company to work for by Fortune Magazine. In 2007 the company had been ranked the 16th best.
The company tends to use motivation as a key contributor to it's business and decision-making. We all know that motivation by money is not always the only motivation employees need. If physical rewards are the only incentive to do well, the work of employees may decline. The relationship between employees and managers, and a good working environment factor in to success of the company. An experiment done by Pugh and Hickson (1989) resulted in seeing that if managers provided a decent working environment that had considered the personal requirement for each of the workers, rather than a bonus or higher salary, employees were encouraged to be more efficient and hardworking. As a result of this experiment, employers has learned that it is not only finical incentives that make an work-place function properly.
Starbucks requires that team-work be a part of each employees daily routine. Team-work provides all employes the option to interact, and socialize in an environment that they feel comfortable. All kinds of members with different skills, knowledge, and backgrounds are a part of Starbucks mission. Each member of the team plays a key role. There for everyone can become acquainted with different members and their skills. Merriam-Webster Dictionary describes teamwork as "work done by several associates with each doing a part but all subordinating personal prominence to the efficiency of the whole." By permitting teamwork to play such an important role in their business, Starbucks has continued to be successful. As a result of teamwork all employees receive equal treatment. Staff members of Starbucks are referred to as "partners," including the managers, and supervisors. By narrowing the gap between employees, and managers Starbucks co-works each employee. Because of this, the company maintains a familiar and closer atmosphere, and this maintains a well management system.
However, as with any corporation there are always those individuals who can not be satisfied. A post by sickly amazed on the I hate Starbucks states this, "I have worked for Starbucks for 2 years, in the beginning I really liked working there. I thought I was working for "something." Until I realized what a load of crap I was living. I am currently a supervisor, who recently stepped down due to a manager who gives "corrective action" forms for barista's not rinsing their milk pitchers right away. I don't think that this is the "Correct Action," especially after 3 of these lovely little things you get fired. It's a friggin milk pitcher. Can't we focus on real issues here. I feel that the corporate monster has micro managed every employee to insanity. My lovely manager sat me down at 4 am to have a "coaching conversation" about not supporting the "team." I support the team, she kills all morale with stupid write ups with no purpose. I have never worked for anyone who is so unreasonable, viscous, and scandalous, all disguised behind fake concern. This is ridiculous. This crazy lady lives, breaths and worships the Starbucks "values and experience" and fails to realize that just because this is her life, her employees have a real life and this is a job. We need to get paid, not have a lousy "experience." I am not normally one who dwells on negativity, but I am absolutely shocked at the crap we are required to do. I cannot be a permanent happy ray of sunshine for 8 hours a day and 39.5 hours a week. I DONT GET PAID ENOUGH!!! and...when your not getting paid full time wages when your working full time, the benefits tend to be a little pricey. What's the point in benefits if you can't afford them?" I can relate to this post. How can an individual afford to pay for a full benefit package when all their check goes to the benefits. Logically speaking an individual who works for $8 an hour can't afford to pay $400 per month for benefit. Basically, half their check is gone. All the rules that Starbucks puts into place to make a better environment, can easily be manipulated by every employee, or supervisor. My issue with Starbucks is this, my community is made up of 15,000 individuals. Local coffee shops have made their home here for many of years. Recently, Starbucks decided to move into my community. A Starbucks in town was great for those who needed work but not so good for the local coffee shops. In the last year of Starbucks being here three local shops has went out of business. That does not seem so good for the individual who made a living off the once successful shops. I do think that Starbucks belongs in the big towns, and cities. I can not see a need for Starbucks to overcome all the local shops in communities like mine.
Working for Starbucks allows each individual to plan their schedule according to their needs, and wants. For instance, managers may take over hours for their workers to allow time off. Each week interviews are held to discuss the needs of each employee. Policies and principles of Starbucks will be communicated between all staff. The partners have the right to decide which policy is best for them, and the directors show respect for every suggestion. Starbucks does not limit the personal opinions of any employee. By doing this business, and strategies improve in the workplace. Starbucks makes a point to value each employee as an individual. The fact that Starbucks has shown respect for their employees has produced the best workplace for employees.
Considering all the above it is no surprise that Starbucks employees have a satisfaction rate of 85 percent, according to Hewitt Associates Starbucks Partner View Survey. Specific numbers have not been released. However, 74% of the employees state it is the "best place to work." Although Starbucks offers an extremely satisfying benefit package that is not the only thing to attract employees. According to another company survey the top two reasons people are employees for Starbucks are, "that ability to work in a place where I feel I have value, and the opportunity to work with an enthusiastic team.
Starbucks continues to maintain a feel-good atmosphere in a small company. So a person may wonder how is it that Starbucks maintains a company full of spirit when they employ 60,000 part time employees, 11,000 full time employees, and 7,400 workers globally? Dave Pace, executive vice president of partners resources states that "staying small while we grow is one of our biggest challenges." He also says that Starbucks tends to take their mission statement seriously, unlike other companies. Starbucks uses their mission statement as a guideline and they relate to it for decision-making. Starbucks has a six point mission statement. This list includes: a commitment to diversity, roasting and delivering coffee, contributing to communities and the environment, excellence in purchasing, and achieving profitability.
The partners, or employees of Starbucks always keep in mind the mission statement. They are to submit any questions or comments, and monitor management decisions. Employees of Starbucks are to submit a 200 Mission Review quarries a month. Also, a two person team will consider, and respond to each one. Not only does Starbucks like their employees involved, they arrange for the community to be involved as well. The encourage people to donate $10 for each hour one of their employees volunteers at a charitable or nonprofit organization. The profits from these donations will be put to services and clubs for employees. These can include bowling leagues, running groups, and book clubs. Employees have the option to donate an amount of their choice to a Caring Unites Partners fund. This fund is used to establish grants to other employees who find themselves in hard times. Every year a few employees will be selected to travel to coffee-producing parts of the world. This sounds like an amazing incentive to do well at the job!
According to Pace, "People come to Starbucks to socialize and interact, so our partners do much more that just make coffee. They are the ones who create that environment in our stores and make this a place that people feel good about. So they feel empowered and know they are making contribution. This is a company where we look out for each other and look out for the community. And when people see us responding to them, they feel like this company really 'gets it'."
Starbucks has definitely set the bar for other employers. They have manages to change the viewpoints of a community, employees, and global consumers. It is obvious that their success has caught global attention. Starbucks is not only the fastest growing corporation, but Starbucks is also an outstanding business model with higher profit rate, and lower employee turnover rate. Starbucks believes that motivation is the main contributor to their success. This thought ignores the thought of classical management, which tends to ignore any ideas or concerns a worker may have. Starbucks keeps not only their employees happy, but their customers as well. Many other business could take a lesson from the successful lesson path of Starbucks. It is clear that Starbucks has been successful in their business strategies. According to the statistics most workers are happy with the company. Is ther a chance I could be satisfied at a Starbucks? I don't think so, but that is just my opinion. Who am I to argue with a 85% satisfaction rate? I never enter a Starbucks because their so-called harmonious environment only makes me uncomfortable. Workers often overwhelm me with their excitement. I hate they refer to their sizes as a grande or viente. When really it think medium, or large is easy enough to say. The onetime I ended up at a Starbucks, I had no idea what to order or if my order had been repeated back to me correctly. There for I tend to stick to my local coffee shops, who can remember my drink every time I pull up. I like it that way!
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