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Starbucks Human Resources Case Study

A case study analysis involves investigating a business problem, exploring alternative solutions, and proposing the most effective solution with supporting evidence. The document emphasizes the importance of strategic human resource management, using Starbucks as a case study to illustrate effective practices in recruitment, training, and employee engagement. It concludes that investment in human capital can lead to positive organizational outcomes if managed strategically.

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0% found this document useful (0 votes)
23 views8 pages

Starbucks Human Resources Case Study

A case study analysis involves investigating a business problem, exploring alternative solutions, and proposing the most effective solution with supporting evidence. The document emphasizes the importance of strategic human resource management, using Starbucks as a case study to illustrate effective practices in recruitment, training, and employee engagement. It concludes that investment in human capital can lead to positive organizational outcomes if managed strategically.

Uploaded by

dramatticwebdev
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

1

What is a Case Study?

A case study analysis requires you to investigate a business problem, examine the alternative
solutions, and propose the most effective solution using supportive evidence.

A case study should include background information on the specific topic, an analysis of the case
under student showing problems or effective strategies, as well as recommendations.

A case study can focus on a business or entire industry, a specific project or program, or a person.

Format your paper according to your assignment instructions.

The following sample includes APA-style citations and references.

*Adapted by the UAGC Writing Center from original paper by Aimee Garten. Used by permission.
The introduction of your case study should introduce the business, industry,
project, or person that is represented in your study. 2

An Analysis of Human Resources Practices at Starbucks Coffee Company


The thesis should state the
Organizations must perform at reliable and successful levels to stay inproposed
business.
solution to the
problem you have determined or
One indicator of organizational performance is its human resources outcomes.
state theTo be assessment of
general
the case being studied.
competitive in a global marketplace, a large multinational organization should manage

human resources as strategically as any other division or department. Starbucks is an

example of strong human resources strategy coupled with logistical planning and effective

management. It serves as a strong example for all large organizations to model human

resources upon.

Overall Human Resources Strategies

Human capital is a large investment for any organization. Management of this

capital is a necessary task to ensure strong return on the investment. Human resource
Section 1:
The first section of the case study should
management
discuss the background of therequires strong strategy to effectively and efficiently achieve goals,
organization,
industry, or program.
objectives, and – in turn – better performance. The strategy, management program, and all

other human resource activity are then required to determine relevant dimensions of

performance and the impact on the company’s success (Cania, 2014).

Starbucks, a Seattle-based global coffee company, follows a mission to “inspire and

nurture the human spirit: one person, one cup, and one neighborhood at a time” (Starbucks,

2015, para. 4). The company fulfils this mission through ethical sourcing of product,

environmentally friendly processes and recycling practices, and employee service in the

community. After the era of Great Recession, the company launched a new motto: “Great

Coffee Everywhere” and grew to include international locations and at-home products

(Noe et. al, 2013). This growth also included the acquisition of the La Boulange, Seattle’s

Best Coffee, Tazo, Evolution Fresh, and Teavana brands. With large competitors like
3

Dunkin’ Donuts and new start-up Joyride, Starbucks is poised to be a leader in the next

generation of coffee shops or be left behind as an outdated relic (Sacks, 2014).

Unlike most large companies, employees of Starbucks are called “partners” and

are encouraged to join young and build a career with the organization. Human resources

are handled by Starbucks’ “Partner Resources Department” with 500 employees serving

roles in staffing, learning and development, compensation and benefits, organizational

development, and partner services (Starbucks, n.d.). Researchers Korschun et al. (2014)

describe the engaged employee’s impact on the brand as follows:

Employees who identify with the organization will adopt suggested workplace

behaviors and be motivated to support the company’s products and brands. Yet

prior research also prompts us to suggest that this effect will be mediated by the

employee’s customer orientation. Identification is known to encourage behaviors

that benefit the collective. Thus, the more an employee identifies with the

organization, the more he or she will seek opportunities to contribute to company

performance. Because serving customers’ needs is a key way that frontline

employees help the company maintain and deepen relationships with those

customers, such employees may view their own efforts to contribute to customer

loyalty as helping drive long-term organizational success (p. 24).

To remain competitive in the coffee and food-and-beverage marketplace, Starbucks needs

to keep its partners happy and the public coming back for more.
Sections 2-4:
4 the writer
In the following three sections,
focuses on several key points or operations
about the case.
Recruiting Practices
Here, the author ties her evaluations of the case to
theories or research. What theory can you use as
support to show that yourRecruitment
case study has aprocesses
problem, are an important part of any human resources strategy.
or is an effective practice?
Economic crisis, market booms, natural disasters, and other unforeseen occurrences should
It isn’t enough to simply state what is working or
what is not working. You need
not send thetohiring
support thisfiring
and with process into a tailspin. Instead, organizations should have
evidence from theories, experts, or examples.
strong plans to weather any literal or metaphorical storm. Long-term vision should include

anticipation of the need for new hires, job specificity, strong candidate pools, logical

assessment of candidates, securing the best talent, integrating new hires, and reviewing

processes for efficiency and efficacy (Fernandez-Araoz et al., 2009). Though Starbucks

responded to the recent recession with slashed jobs and closed locations, later efforts

focused on long-term goals and recruitment strategy. The “Starbucks College Achievement
Be sure to include
an evaluation of
Plan” was recently launched, offering free college education through Arizona State
each key point of
the case.
University Online to all partners, including part-time employees (Starbucks, n.d.).

Training Structure

Business failures can sometimes be solved through training to develop new skills,

refine efficiency, and instruct staff on new policies, procedures, and tools. Issues

frequently trigger training but training efforts should always trigger business results

(Castaldi, 2012). When a large mistake, error, or need for improvement arises, not every

company is prepared to make improvements. As a large successful company, Starbucks

has more resources available to take staff out of their daily work and place them in

training sessions. Investment in training needs assessment and training sessions

themselves may be daunting for small companies; however, an organization operating in

more flexible environments can reap the rewards (van Eerde, Tang, & Talbot, 2008). As

an example of a luxurious training session, Starbucks took their entire work force off the
5

line for a three-hour barista training event, focused on making perfect espresso, in the

middle of the economic meltdown of 2008 (MacDonald, 2008). Most retail outlets would

steer clear of a door-closing event during busy open hours. Starbucks, however, deemed
Here again, the author is presenting an
the reward to be greater than the risk. evaluation of this particular practice of
this company. The author also uses
Organizational Effectiveness theory or research to support her
evaluation.
Starbucks has a strong human resources strategy and management system. This

has led to high organizational effectiveness in the industry, stemming in part from

successful employee engagement. Positive employee engagement leads to a

psychological climate, cultural attitude, and set of employee behaviors that positively

impact an organization from top to bottom (Kataria, Rastogi & Garg, 2013). Therefore, it

is safe to say that Starbucks’ Partner Resources has had positive effect on the

organization as a whole. Solutions

Solutions If your case study focuses on a


problem within the company or
In a recent article, food editor Bret Thorn (2014) described the project, you would include a section
on your proposed solution.

“starbucksification” of Dunkin’ Donuts. While a donut shop is not, specifically,


Be sure to both present your solution
and to also present theory or research
competition for a coffee shop, customers are loyal to the coffees made by each
to support your solution.

What theory,
establishment. This includes the spread of Dunkin’ Donuts to wider regions across expert,
the or example can
you use as support to show that your
proposed solution would work?
United States with larger retailing of their coffee products. Like Starbucks, Dunkin’

Donuts offers K-Cup and ground coffee in supermarkets and convenience stores around
In this section, the writer is
the world. showing a comparison of her case
study to a case study from a
Like Starbucks, Dunkin’ Donuts (n.d.) recruits online, focusing on entry-level competitor.

employees who seek career mobility. Unlike Starbucks, Dunkin’ Donuts has only 7,500

storefronts in just 40 states. Each location is a franchise with unique local business
6

owners running daily operations. Dunkin’ Brands, Inc. is the corporate entity and also

owns the Baskin Robbins ice cream shop chain. Corporate headquarters boasts free

coffee, donuts, and ice cream at corporate offices along with fitness centers, electric car

charging stations, and half-day Fridays (Dunkin’ Donuts). This cannot be said for

employees of franchised locations.

Without the central mission, homogenous culture, and overall size of Starbucks,

Dunkin’ Donuts cannot provide a bold and uniform human resources management system

for all employees. This gives Starbucks the competitive edge for recruiting from the

common pool of potential employees. With more money to spend, Starbucks has more to

offer in terms of investment in human capital. Thus, Starbucks has the edge.

Conclusion

Employers ask employees to work hard, be pleasant, and show results. The

investment of time and money into human resources can, and will, pay off in positive

organization outcomes if a strategic management system is in place and well-used.

Seattle-based Starbucks has been an example of success through strategic human

resource management through good times and bad. Its practices, though occasionally

flawed, show an overwhelmingly successful model of large company investment in

human capital.
The conclusion is where you wrap up your take-
away points for your reader. Here, you may also
present the significance of your case study. Why
is this valuable?
7

References

Cania, L. (2014). The Impact of Strategic Human Resource Management on

Organizational Performance. Economia: Seria Management 17(2), 373-383.

Castaldi, J. (2012). Constructing a Business Case for Training: Cause, Coincidence, or

Correlation?. T+D, 66(6), 32-34.

Dunkin’ Donuts. (n.d.) Come Run with Dunkin’.

[Link]

Fernández-Aráoz, C., Groysberg, B., & Nohria, N. (2009). The Definitive Guide to

Recruiting in Good Times and Bad. Harvard Business Review, 87(5), 74-84.

Kataria, A., Rastogi, R., & Garg, P. (2013). Organizational Effectiveness as a Function of

Employee Engagement. South Asian Journal of Management, 20(4), 56-73.

Korschun, D., Bhattacharya, C. B., & Swain, S. D. (2014). Corporate Social

Responsibility, Customer Orientation, and the Job Performance of Frontline

Employees. Journal of Marketing, 78(3), 20-37.

[Link]

MacDonald, N. (2008). Starbucks goes back to coffee camp. Maclean's, 121(10), 44.

Marler, J. H. (2012). Strategic Human Resource Management in Context: A Historical

and Global Perspective. Academy Of Management Perspectives, 26(2), 6-11.

[Link]

Sacks, D. (2014). Brewing the perfect Cup. Fast Company, (188), 86-104.

Starbucks. (2015). Starbucks Company Profile.

[Link]
8

Starbucks. (n.d.). Supplier Diversity Program.

[Link]

Starbucks Career Center. (2015). Career Center: Working at Starbucks, Military &

Spouses – Serve with Us, Starbucks College Achievement Plan, Our Brands.

[Link]

Thorn, B. (2014). The Starbucksification of Dunkin' Donuts. Nation's Restaurant News,

48(19), 110. [Link]

van Eerde, W., Tang, K. S., & Talbot, G. (2008). The mediating role of training utility in

the relationship between training needs assessment and organizational

effectiveness. International Journal of Human Resource Management, 19(1), 63-

73. [Link]

Common questions

Powered by AI

Starbucks and Dunkin’ Donuts employ different human resource management practices that impact their competitive positions. Starbucks, with its centralized 'Partner Resources Department', focuses on creating a homogenous, inclusive culture, offering extensive training, and providing educational opportunities such as the 'Starbucks College Achievement Plan.' This creates strong internal brand loyalty and employee satisfaction. In contrast, Dunkin' Donuts operates with a decentralized franchise model, lacking a uniform HR strategy across locations. The centralized resources and cohesive culture at Starbucks potentially enhance its competitive position by fostering greater employee engagement and brand consistency, whereas Dunkin’s fragmented approach might limit its capacity for unified strategic HR initiatives .

To sustain its competitive advantage in the next generation of coffee shops, Starbucks could enhance its human resources strategies by further innovating in employee engagement technologies, expanding educational programs with more diverse options, and integrating advanced data analytics to personalize employee development. Additionally, cultivating a more flexible work environment to respond to economic or market changes swiftly, and continuously evolving its community involvement initiatives to reflect changing social values, can ensure that Starbucks remains relevant and appealing to both employees and customers .

The 'Partner Resources Department' at Starbucks significantly impacts employee career development and organizational growth by framing employees as 'partners' and investing in their long-term success. This department supports career growth through training and educational programs like the Starbucks College Achievement Plan, positioning employees to advance within the company. This strategy not only enhances individual career trajectories but also contributes to organizational growth by developing a skilled and loyal workforce capable of driving the company's strategic objectives .

Starbucks' human resources strategy heavily influences its competitive advantage by fostering a strong organizational culture and employee engagement. This strategy includes ethical sourcing, environmentally friendly practices, and community service which align with their mission to inspire and nurture the human spirit. The 'Partner Resources Department' of Starbucks emphasizes developing long-term careers, thereby enhancing employee identification with the organization. This creates engaged employees who support the company's brand and contribute to customer loyalty, which is crucial for maintaining competitive advantage in the global marketplace .

The key components of Starbucks' human resource management contributing to its organizational success include comprehensive training programs, strong internal branding as 'partners', strategic recruitment practices, and extensive employee benefits like the Starbucks College Achievement Plan. These elements foster high levels of employee engagement and satisfaction, leading to improved service quality and customer loyalty. Moreover, Starbucks’ centralized HR strategy ensures consistency and cohesion across its global operations, reinforcing its competitive position in the marketplace .

Employee engagement plays a significant role in enhancing the organizational effectiveness of Starbucks by creating a positive psychological climate and cultural attitude that benefits the organization from top to bottom. Engaged employees adopt workplace behaviors beneficial to the collective, which supports long-term success by improving customer loyalty and overall company performance. Moreover, the engaged workforce at Starbucks is driven by a strong identification with the company, motivating them to contribute to customer service and the brand's success .

Starbucks adapts its strategic human resource management to handle challenges during economic downturns by focusing on long-term goals and sustainability. During economic troubles, such as the Great Recession, Starbucks implemented strategies like slashing jobs and closing stores initially, followed by focusing on strengthening its core – investing in its partners through educational programs and specialized training. This approach ensures that despite short-term challenges, the company retains talent and capabilities needed for future competitive advantage and recovery once market conditions improve .

Starbucks’ approach to recruitment and training reflects its organizational goals and values by emphasizing long-term investment in human capital and aligning with its mission to inspire and nurture. The company utilizes strategies like the 'Starbucks College Achievement Plan' to offer educational opportunities, reflecting its commitment to employee growth and community involvement. Furthermore, Starbucks conducts extensive training, such as taking employees off the line for barista training during the economic downturn, showcasing its prioritization of quality and employee development over immediate profit .

Starbucks' strategy of sourcing and community involvement is deeply connected to its mission of inspiring and nurturing the human spirit. The company employs ethical sourcing and engages in environmentally friendly practices, which not only appeal to socially conscious consumers but also reinforce Starbucks' brand image as a responsible global entity. Community service activities further strengthen this mission-aligned image, encouraging customer loyalty and positive public perception, which are crucial components of sustaining a premium brand in competitive markets .

Starbucks' decision to invest in a comprehensive barista training session during the 2008 economic downturn reflects its overarching business strategy of prioritizing product quality and long-term employee development over short-term profits. This investment demonstrates a commitment to maintaining high service standards despite economic challenges, aligning with the company's mission of quality and service excellence. It positions Starbucks to recover quickly and effectively in post-recession environments, underscoring the strategic importance of human capital in sustaining the company's brand and market position .

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