Impact of Employee Relations on HRM Decision-Making at Starbucks

This report examines the critical role of employee relations and human resource management (HRM) practices in organizational decision-making, using Starbucks as a case study. It begins with an introduction to employee relations and their importance, emphasizing the need for positive relationships to boost employee productivity and motivation. The report then analyzes the impact of employee relations on HRM decision-making, highlighting how effective teams, employee loyalty, innovation, and reduced absenteeism are fostered by strong employee relations. Key elements of employee legislation, such as equal employment opportunities, flexible working times, perks and benefits, and compulsory leaves, and their influence on decision-making are also discussed. Furthermore, the report delves into HRM practices, specifically recruitment and training & development, and evaluates their application in relation to employee relations and their impact on organizational decision-making. The report concludes that employee relations and effective HRM practices are essential for organizations to make accurate and beneficial decisions.

Understanding human
resource management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Analysis of the importance of employee relations in respect to influencing HRM decision-
making.........................................................................................................................................3
HRM practices and their implementation in organisation .........................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Human resource management refers to those management of the organisation which
conducts the number of activities in the organisation in relation to employee recruitment and
training. Human resource management is one of the most important and valuable department of
the organisation because It fulfils the need of workforce which is arises from every department
of the organisation. One of the important function of human resource function is that it helps the
organisation to develop effective employee relation. The relation between the employee and the
employer is called employee relations. It is very important for the management of the
organisation to develop effective employee relations in the organisation which are helpful to
increase the productivity of employees in the organisation. The hospitality organisation which is
chosen here to demonstrate this report is Starbucks. It is an American multinational corporation
which manage and control one of most largest coffee house chain in the world. This report is
based on the aspect of employee relations in the organisation. It provides information related to
importance of employee relation while taking decision by human resource department. It
involves the key points of employee relations which influence the decision making of the
organisation. It includes two HRM practise of the organisation.
TASK
Employee relation refers those concept of the organisation which involves the relation
between the employee and the employer in the organisation. It is very important for the
organisation to develop effective relation with the employees which promotes their motivation
towards the organisation (Sahoo, 2021). The motivation of employees are depend upon the
fulfilment of their needs and desire. If the employee of the organisation becomes motivated
towards the organisation then their productivity and effectiveness can be increase in the
organisation. The human resource department of Starbucks need to take number of decision in
their management which is influence by importance of employee relations.
Analysis of the importance of employee relations in respect to influencing HRM decision-
making
The decision making process of organisation are depend upon the the skills and abilities
of managers. The role of employee relations are very in the organisation which helps to take
effective decisions. If the relation of employee are positive with their employer then I helps the

management to take accurate decision which helps to increase the productivity of the employees.
There are number of importance are present in relation to employee and the brief discussion
related to the same are given below:
Helps to build effective teams :- The development of teams in the organisation is one of
the important and critical aspect which is not possible without mutual understanding and spirit in
the organisation. All the employees of the organisation are having different mind set (Câmara
and Petrenko, 2021). They have provided different ideas and suggestions on number of topic
which increases the chances of disturbance. If the employee relations are positive in the
organisation then it becomes easy for the management to convince the employee towards the
development of effective teams. The management of Starbucks operates their business in
different countries of world under which the scope of business operations are high. The
requirement of team building are increase by huge number. If the relations of the company are
positive with their employees then it becomes easy for them to create effective relations in the
market.
Increase employee loyalty :- The loyalty of employees towards the organisation has
played important role for long term benefits of the organisation. If the employees of the
organisation becomes motivated towards the organisation then it helps to increase their
engagement. There are number of factors are present in the organisation which helps to increase
the level of loyalty such as effective wages, compensation, benefits, promotions and many more.
The human resource department of Starbucks is one of the important and valuable management
which has developed number of strategies for the betterment of their employees which makes
them loyal for the organisation. The effective employee relation improve the motivation of
company employees which improves the loyalty of the employees in the organisation.
Promote innovation :- Innovation refers to the changes in existing product and develops
new features according to the needs of the customers in the market (Curtin, 2019). As the taste
and preference of the customers becomes dynamic in the organisation which demands new and
innovative product in the organisation. Effective employee relation promotes the engagement of
employees which provides them chance to provide their ideas and suggestions in the
organisation. The diverse range of ideas and suggestions promotes the level of motivation in the
organisation. The management of Starbucks is conducts business of beverages which increase
the demand of innovation. If the employees of the organisation are having freedom to provide

ideas and suggestion to their employees then it becomes positive for the company to improve
their innovation channels
Helps to minimise employee absenteeism :- One of the greatest advantages of employee
relations is that all the employees of the organisation are treated equally, enjoy their rights and
benefits, achieve growth and compensation (Eid and Dahadha, 2021). This help to increase the
level of motivation of employees in the organisation. The high level of motivation enables the
employees to provide considerable time to company which ultimately decreases the number of
employee leaves in the organisation. The management of Starbucks operates their business even
in weekends so the requirement of employees are high which can only be possible due to positive
employee relations in the organisation.
Description of key elements of employee legislations and their impact on decision making of
organisation
Employee legislations are the rules and regulations which the government of state
develops for the protection of employee rights and duties in the market. It is seen from many
examples of the world under which employer does not provide considerable rights to their
employees which increases employee exploitation. The government of the respected states has
developed number of rules and regulations which the business organisations has to follow at the
time of doing business. These rules and regulations acts as safeguard for the rights and duties of
employees in the organisation.
Equal employment opportunities :- It refers to those legislation of employee which
defines the equal opportunities to all the candidates which came for the interview. Under this
legislation, the managers of human resource department needed to be unbiased towards the
candidates. It is the duty of the managers of the organisation that they provide equal chance and
opportunities to all the employees (Koch and Manzella, 2019). The human resource managers of
Starbucks need to develop those framework in their organisation under which the candidates are
selected in the organisation on the basis of their skills and capabilities instead of any approach.
Flexible working times :- As the life of employees involves different aspect such as
personal, profession and social which they have to live. There are many examples are present
where the employees has to provide major portion of their life to professional aspect due to
aggressive working time. This increases the level of stress and anxiety in personality of
employees due to unsatisfied personal and social needs. It is very important for the management

of Starbucks that they develop the working time of employees in such a way that it provides
considerable time to different aspect of their life.
Perks and benefits :- It is related to those aspect of employee legislation which promotes
the motivation of employees at high level. Under this aspect of employee legislation, the
management is required to analyse the performance of employees and provides them attractive
perks and benefits to the employees for their higher performance (Pahuja, Chowdary and Mittal,
2021). It is essential for the management of Starbucks that they develop effective performance
measurement approach which helps the organisation to measure the performance of employees.
It is important for them to provide recognitions to higher performer which helps to make them
motivated towards the organisation.
Compulsory leaves :- There are many rules and regulations are present which is
developed by the government of state to provide relaxations to employees from stress of work.
There are number of leaves are provided by law which should be given to the employees for the
fulfilment of their personal duties. It is very helpful for the employees to reduce the level of
stress which is developed due to the extensive workloads. It is very important for the
management of Starbucks to provides number of leaves to their employees which helps to
motivate the employees towards the achievement of goals and objectives of the organisation.
HRM practices and their implementation in organisation
Human resource management is a process of recruitment, training and development of
employees in the organisation. All the practises related to the workforce are conducted by the
human resource department of the organisation. The importance of these practises are very high
in the business because the requirement of employees are arises from each department and
function of the organisation. It is important for the organisation to provide considerable resources
and funds to human resource department so that all the practises can be done in effective manner.
The human resource practises which is chosen here is Recruitment and training & development
and the brief discussion related to the same are given below:
Recruitment practise of human resource
It refers to those practise of human resource under which the management of the
organisation examined the employees on different criteria for their selection in the organisation.
It is very important for the organisation to analyse the number of skills and abilities of employees
so that only talented employees can be recruited in the organisation. The management of

company need to provide considerable time to all the candidates which helps them to explain
their side.
Implication:- It is important for the management of Starbucks that they create effective
approach for the recruitment of employees which helps to select the talented employees in the
organisation (Pahuja, Chowdary and Mittal, 2021). It is important for the managers to organise
number of aptitude test which helps to analyse the potentials of all employees of the
organisation.
Training and development of employees
It is not possible for any type of employee that all the working skills and abilities are
present in their personality at the time of joining the organisation. The organisation needs to
provide proper training and development of these employees so that they can work in the
organisation in effective manner. There are number of skills are present such as communication
skills, time management skills, leadership skills and many more which is developed in
employees.
Implication :- It is essential for the management of Starbucks to use new and modern
technology for the training and development of the employees in the organisation because it
enables the management to operate their business in effective manner.
Critical evaluation related to application of employee relations and HRM practises which
influence the decision making of organisation
It is evaluate from the above report that employee relation has serious impacts on the decision
making of the organisation. Employee relation provides number of measures to organisation such
as build effective teams, increase employee loyalty, promote innovation minimise employee
absenteeism which helps to keep the decision of the organisation safe and healthy. If the number
of human resource practises are performed in effective manner then it helps the Starbucks to
achieve their goals and objectives (Poon, 2019)).

CONCLUSION
It is concluded from this report that employees relations and human resource practises helps the
organisation to take accurate decision. It conclude information related to importance of employee
relation while taking decision by human resource department. It conclude the key points of
employee relations which influence the decision making of the organisation.

REFERENCES
Books and Journals
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Engagement: A Study on Indian Power Sector Undertakings (Doctoral dissertation).
Câmara, A. and Petrenko, O., 2021. The influence of diversity and employee relations on
corporate philanthropy and performance. Business and Society Review, 126(4), pp.407-
431.
Curtin, P.A., 2019. How employee relations shaped and maintained US corporate welfare: A
historical overview. Public relations, society and the generative power of history, pp.45-
57.
Eid, N.L. and Dahadha, M., 2021. Bipolar Tension and Employee Relations Challenge at a
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Pahuja, S., Chowdary, K.M. and Mittal, S., 2021. Employee relations as a tool of strategic
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