Employee Relations
› Starbucks promotes frequent visits to store locations from regional/district mgrs › Encourages open employee communications › Starbucks values each employee as “partner” › Employees provided medical, vision/dental, 401k/stock options, tuition reimbursement, vacation
Starbucks Networking
› “My Starbucks Idea” social networking site launched in March 2008:
– – – – – Customers play role in shaping company’s future Re-ignites emotional attachment with customers Builds a network of loyal and dedicated clientele Allows open forum for ideas and discussion Provide customers the ability to provide ideas on products and service –
Effects of Organizational Ethics and Corporate Culture
› Employees share in “Starbucks Experience “ › Reduction in employee turnover rate
– 20% Management – 80% Lower tier (Avg retail turnover rate + 200%)
› Results in more satisfied/happy employees › Results in value oriented ethics
Corporate Citizenship
› Developed the Shared Planet™:
– Reflects company’s desire to conduct business in responsible manner
Conclusion
› Starbucks has become the most successful company in gourmet coffee by integrating:
– – – – – – Restructuring of organization Social Networking Focus on Diversity and Customer Service Global promotion of ethical business practices Strengthening employee relations Promoting corporate citizenship
Diversity and Customer Focus
› Management execs regularly visit stores to ensure quality › Strategies are implemented to enhance benefits for customers and employees › Customer ownership and loyalty are key to success › Customer feedback regularly solicited
Diversity and Customer Focus
› Starbucks is not a “franchise” › Customer base includes all nationalities › Repeat customers include business professionals, healthcare professionals, students › Store locations are international › Sites include schools, malls, hospitals, airports, grocery chains
Organizational Structure
› Howard Schultz – CEO › Restructuring has created new positions for flatter organization:
– – – – – – Global Real Estate Design Mgr Global Strategy Mgr Human Resource Strategy Mgr Customer Experience Mgr Marketing & Brand Strategy Mgr Store expeditors at all locations
› Long-term plans include improving corporate ethics by 2015 by:
– Ethical sourcing – Environmental stewardship – Community involvement.
› Created International Youth Foundation, Give2Asia, China Education Project
Oratter organizational structure will:
– Lead to more efficient and more effective business strategy – Streamline information flow from customer and low-tier employee to corporate level – Keep customer and bottom line a priority to Starbucks business strategy – Utilize new employee manual to streamline production and increase employee efficiency
Starbucks Corporate Culture
Katie Brindley, Michelle Grant, Evangelita Nez, Ryan Scalmanini and Robin Tigler University of Phoenix PSY428 – Organizational Psychology May 18, 2009
Organizational Ethics
› Supports six point mission statement › Mission statement is guiding principle and holds it up as a filter for decision making › Employee training includes review of mission statement, customer service theory and corporate culture › Starbucks New Partner Training Plan includes training on ethics, ergonomics, safety, legal compliance, hands-on training
Introduction
› The following topics will be discussed:
– Diversity and Customer Focus – Organizational Structure – Networking – Organizational Ethics – Employee Relations – Corporate Citizenship
References
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