International Human Resource Management

Running Head: INTERNATIONAL HRM 0
International Human Resource
Management
#04036
7/12/2019

INTERNATIONAL HRM 1
Table of Contents
Introduction............................................................................................................... 2
Starbucks............................................................................................................ 2
TASK 1.................................................................................................................... 2
Organisational structure..................................................................................... 2
International HRM............................................................................................... 3
Sources of staffing.............................................................................................. 4
TASK 2................................................................................................................... 5
International Reward and Compensation............................................................5
Culture awareness.............................................................................................. 7
Conclusion & Recommendations...........................................................................8
Bibliography........................................................................................................... 9
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INTERNATIONAL HRM 2
Introduction
This report shall include the expansion and organisational structure of Starbucks. Later it
shall discuss about the International human resource management. It also includes sources of
staffing in Starbucks. This report shall also state the international theories and models of
HRM. As per recent reports, Starbucks is present in six continents and seventy eight countries
with 27,340 locations. The business is working against large and small coffee shops, food
facilities companies such as McDonalds, Dunkin Donuts, Wendy’s and Burger King(Nair &
Thomas , 2017).
Starbucks
Starbucks was established in 1971 in Seattle, Washington. It is an American based coffee
house chain. It has a slogan called ‘good to the last drop’. It is currently operating around the
globe in countries like Australia, Brazil, Canada, France, Malaysia etc. It is popular for its
dark roasted coffee and the services given by coffee venues in terms of taste, quality and
customer experience. Its other products also include caffe latte, caramel macchiato,
milkshakes and hot chocolate (Akingbola, Sean , & Alina , 2019).
Starbucks was first expanded in Midwest and British Columbia in 1980s. Then, it gained
prosperity with entry into California in 1990s.There are three types of MNC i.e. transitional,
parent, and foreign. Foreign MNC include subsidiary, associate and branches. The first
Starbucks site was launched in Tokyo in 1996. In 1999, Starbucks opened a restaurant chain
called Circadian, later it converted to Starbucks cafes (Gopalakrishna, Rajewshwari, &
David, 2016)
TASK 1
Organisational structure
Starbucks structure is largely governed by the Board of Directors, which conducts roles from
Seattle, Washington headquarters. The towns are divided with district executives into
regional jurisdictions. District executives take care of regional shops. As a indigenous boss,
the shop manager acts to oversee employees at the places. As a partner, the Starbucks team
works towards quality rules. It works on the objective of client satisfaction. It also looks after
the contribution of individuals and most of its clients are fan based (Kelly, 2019).
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INTERNATIONAL HRM 3
Starbucks maintains its competitive advantages through its corporate structure. The
competitive advantages include the Porter Five Forces, with the design and development of
corporate structure. The following are the essential features of Starbucks corporate structure:
- Functional hierarchy; Geographic divisions; Product divisions; Teams.
Functional Hierarchy- It refers to grouping on the basis of business functions. There are
departments which include HR, finance, and marketing.
Geographic hierarchy- Starbucks corporate includes geographic divisions and physical
locations. America, China, Europe and Africa. In the US market, further geographical
divisions includes:- Western, Northwest, Southeast and Norteast. Each division has a senior
executives so each manager has to report to two superiors i.e. geographical and functional
head.
Product based division: - Starbucks has product based lines. The company has a separate
division for coffee, baked goods and merchandise. This feature helps in product development
through innovation in its products.
Teams: - Several teams are set up to provide clients with products and services. It helps in
providing resourceful services to customers. The more effective and efficient team the more
is its impact on financial performance (Khan, Murad , & Muhamamd , 2018)
Evaluate its effectiveness in managing the workforce throughout the subsidiaries of
Starbucks
The human resource has to be managed efficiently in order to achieve the objectives of an
organisation. In Starbucks, the Fayol’s five rules of management are combined into four and
are effectively applied. A proper planning is done in deciding the job roles and the specified
work to be allotted to whom. The activities are organized into working groups with the help
of resources, techniques and other services. A leader shall ensure a culture of motivation and
support between the workmen force. The activities are monitored to achieve the goals of
productivity. Controlling is done in order to measure performance and results. The CEO
spends more times planning and leadership functions whereas supervisors spend more of their
time in organising and controlling workforce (DeCenzo, Stephens , & Susan, 2016).
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