A Detailed Report on HRM Practices at Starbucks: A Case Study

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Starbucks. It begins with an introduction to HRM, outlining its purpose and functions within an organization, with a focus on staffing, training, and performance management. The report then delves into specific HRM functions, evaluating the strengths and weaknesses of different approaches to workforce planning, recruitment and selection, development and training, performance management, and reward systems. The benefits of effective HRM practices, such as improved employee relations, conflict resolution, and training and development, are also explored. Furthermore, the report examines the impact of HRM on organizational profit and productivity, highlighting the importance of practices like performance management and recruitment. The report concludes with an overview of key legislation impacting HRM and its application in a work-related context. The Starbucks case study is used throughout to illustrate the practical application of HRM principles.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Purpose and function of HRM at workforce in an organisation............................................1
P2 Strengths and weaknesses of approaches to HR functions....................................................2
LO 2.................................................................................................................................................4
P3 Benefits of HRM practices within an organization................................................................4
P4. Impact of HR practices in increasing organizational profit and productivity. ....................5
LO3..................................................................................................................................................6
P5 Importance of employee relations .........................................................................................6
P6 Key legislation and their impact on HRM decision making..................................................8
LO 4.................................................................................................................................................9
P7 Application of HRM practices in work related context.........................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management (HRM) plays vital role in managing the employees within
the organisation. There are various activities which are carried under human resource
management such as staffing, benefits and employee compensation and the definition of work. In
this report it describes the various goals and functions which helps the company to become
successful and also explains the approaches to staffing and other practices. It also highlights the
various laws and legislation which is applied on personnel management which impacts on the
decision making of the organization.
LO 1
P1 Purpose and function of HRM at workforce in an organisation
The company was formed by Gordon Bowker in 1971. Afterwards company changed
their name to Starbucks. Their intention was not to hit the coffee business directly. Human
resource planning is a process where management provides the best people at the exact timing
(Oppel, Winter and Schreyögg, 2017). Management without planning is useless as managers can
reduce future uncertainties. Human resource helps the organization to raise the productivity,
profitability and also helps people in making their careers. The main aim of the management is to
ensure that the workforce is compatible to complete the task and accomplish organizational goals
of the company. The following are the purpose of the management:
 It helps in increasing efficiency and productivity with the help of desired workforce.
 It helps to create positive and safe environment within the organization and harmonious
employees relationships
Human Resource Management is a leadership function related to recruitment, motivation
and training in an organization. Starbucks consists of people which obtain their services, develop
their skills and motivate them to achieve peak performance.
Staffing: Staffing is the crucial part of the human resource management as it helps to recruit the
best candidates which are enthusiastic and serious about their work as a result it will help the
company to raise productivity and profit. Starbucks adjusted its strategy by providing the best
customer service representatives by developing its own verification system. The main purpose of
staffing is to get the most talented people those who can perform well and can contribute well in
raising productivity of business unit. HR manager ensures that deserving candidates get entered
into business so that productivity of the firm can be improved.

Training and Development: Starbucks summarizes its strategy to provide customers with the
best customer experience by developing programs and developing clean techniques. Training
programs such as Coffee Master Programs and high priority for the company's brand image.
Purpose of training function is to improve knowldge, skill, behaviour of employees. This helps in
making them aware with their job role and minimising their mistakes as well. This is important
in raising efficiency and retaining staff in business for longer duration.
Performance Management System: The company uses the approach which depends on bonus
targets, free coffee, training aids, partner discounts, and a 30% discount in stores. The Starbucks
Growth Model helps in increasing employee growth in organization. The purpose of this function
is to monitor or evaluate performance of each candidate and accordingly take promotion
decisions. This helps in maintaining satisfaction level of workers and promoting the right
candidate who can work better for growth of business unit.
P2 Strengths and weaknesses of approaches to HR functions.
Workforce planning: This planning is done to improve the workforce within the organization
by analysing talented management and to ensure that the best people is selected within the given
time framework.
Workforce approach: This helps to check current workforce and work and project the number
and characteristics of work and the number of people needed in the future.
Strengths: One of the phase of making a workforce plan is the current employee evaluation. This
phase is a kind of strength for the company, identifying employees who have problems and
identifying employees who work hard.
Weaknesses: In the workforce planning phase, the budget available for the department and
employee salaries are processed. However, this phase can be a weakness for progress if the
budget is limited.
Starbucks uses this approach to make sure that they have the enthusiastic employees who
are serious about their work. (Harrison and Bazzy, 2017). This is an ongoing process within the
organization. Starbucks workforce planning reduces labour costs because management can
anticipate congestion.
Recruitment and selection: There are various methods through which organization can hire the
deserving candidates who have skills and practical knowledge. Both of these steps are equally
important in attracting people who are suitable and attract talent.

Internal Recruitment
This recruiting process hires the deserving candidates which are good in skills and have
experience in the field they are working is known as internal recruitment.
Strength: It helps in motivating the staff as it hire the best people which have tendency to remain
positive in every circumstances.
Weaknesses: This recruiting process is cost effective and can retain the deserving candidates.
External Recruitment
The problems can be eliminated with the help of external recruitment. The training of
candidates must be done by company, subscribe to databases, and publish online advertisements.
Strength: Automatic staffing identifies and audits candidates, is not ideal. Although this saves
time and money and attract potential candidates.
Weaknesses: The recruitment software automatically disqualifies application from the start and is
more expensive and time consuming.
Starbucks follows external recruitment as it hire or recruit candidates through Taleo
screening system and those who can fit in Starbucks culture. It adjusted its strategy by providing
the best customer service representatives by developing its own verification system.
Development and training: There are various tools which are used to improve the skills of the
employees related to management and also enhance their values, ethics and culture towards the
company which can help in growth of company.
Systematic approach: The systematic learning process ensures that training begins and ends
with company's needs. This approach helps employees to acquire skills through training
programs and desired knowledge which can help them to accomplish organisational goals.
Strengths: Systematic approaches are relatively easy to create, implement, compare and
understand. This is very important for training and development that works with tight budget
constraints.
Weaknesses: This may not always be practical, causing delays in decision making, and the nature
of interdependence is not determined.
Starbucks uses this approach to be consistent with its strategy to provide customers with
the best customer experience by developing programs, developing clean technology.
Performance management: This management helps in evaluating the work done by the
employees and measure effectiveness of their work which helps in meeting organizational goal.

Balance scorecard approach: The Balanced Scorecard strategy formulation and rank must be
according to the perspective of the performance management.
Strengths: This approach is so popular that it looks strategic and focuses on the lower limit. It
also focuses on implementing the company's strategy, which requires constant change and
flexibility.
Weaknesses: There are difficulties in measuring the most important results and fees for
commissioning, training and system development are high.
Starbucks pays employees to complete surveys by letting them work. In this way, they
unite workers with the core values of job creation and respect each other.
Reward System: Organizations with good offset and benefits drive staff costs, manage
employee work, and rewards at excellence.
Monitoring approach: Starbucks used this approach which provide bonus-based goals, free
coffee, training aids, partner discounts, and a 30% discount in stores.
Strengths: It will help in satisfying the needs of employees and encourage their motivation level.
Weaknesses: Employees who do the best and do not meet the requirements to get incentives may
feel disturbed by Star Performers.
LO 2
P3 Benefits of HRM practices within an organization.
There are many benefits which is given to the employees and employers within the HR
practices such as HR managers helps in improving the employers relationship and manage the
labour cost and for employers it provides the right and various laws to ensure their work. The
centre of every successful company is the Human Resources team, which manages all aspects of
human resource management. Following are some benefits that human resources practices bring
to the workplace.
 Reward management: this is beneficial for employees as it reduces employee turnover.
High employee fluctuations affect the company's final results. It costs twice that of
current employees to find and train new employees. As an HR specialist, Starbucks knew
from the start to recruit the right people for the company. Interview candidates carefully,
not only to ensure they have the skills they need, but to see if they are in line with the
company's culture. But this is beneficial for employer as well, by this way employer can

retain skilled people in business and can motivate them to work more hard to get more
benefit.
 Conflict resolution: The managers helps in reducing the conflicts between the employees
and employers which can help in making decision making more accurate and enhance
positive behaviour within the organization. This is beneficial for employer in managing
people and raising their productivity, if there is no conflict then people will work together
and will raise more products and will deal with consumers well. Employees also get
benefit from it as they get healthy workplace environment where they can learn new
things from other employees. This gives them more carer development opportunities.
 Training and development: Starbucks organizes training programs and establishes an
appropriate methodology for introducing training materials tailored to the needs of
workers. Employees get benefit as they improve their knowledge and become able to get
promotion opportunities. Employer gets benefit in term of minimising mistakes and
wastage can minimised which improves net profit of company.
 Performance Management: The HR management team develops a performance
management system. Starbucks has human resources professionals. Applicants can easily
find work without having the skills and experience needed for the job. That's why human
resources are needed at every work station. Employer promote the right person which
raises productivity of company. Employees get to know their strength and weakness
which makes them more productive.
P4. Impact of HR practices in increasing organizational profit and productivity.
By implementing training programs to the workforce they can increase their skills and
knowledge in their field and helps in increasing efficiency, productivity and profitability, thus
creating the necessary motivation and improving work. This will help Starbucks to maintain
skills and staff who are qualified to achieve their business goals.
Selection and recruitment means finding and winning a group of people who can choose
the right candidate for accomplishing organizational goals. The right basis for this is a detailed
description of work performance requirements through workplace analysis. All aspects of the
business, including the recruitment and selection process, to help companies achieve optimal
profits and success. This is beneficial for Starbucks because by this way entity hires right person

who understand their job and perform it well. This improve productivity and help in raising
satisfaction level of consumers because talented and experienced person deal with consumers
well which make consumers loyal towards the brand hence entity gets profit out of it.
Performance management is the most important practice of HRM which gives benefit to
organisation, as Starbucks take support of 360 degree method which helps in understanding
capabilities of person and promoting the right candidate who can deal with consumers well. This
raise sales of business and support firm in retaining consumers for longer duration. The
performance of the employees can be calculated through monitoring and evaluating company
performance (Lim, Wang and Lee, 2017). This is the most widely used definition for ranking. It
will boost the motivation of employees and work hard to increase the productivity.
Compensation refers to all types of gifts which are a token of thanks to people who do
work. Compensation not only motivates the employees but also improves quality of work,
including indirect financial and non-financial benefits. This will help in increasing employee
motivation and satisfaction and to increase company productivity. It motivates workers and they
put more efforts to raise productivity and profitability of company. Motivated staff concentrate
on needs of consumers and serve them best which gives profit to the Starbucks.
LO3
P5 Importance of employee relations
The relation between the employees and employers is very important and essential for an
organisation that to have strong bonding between management and staff members. This
relationship supports the organization to keep employees for the longer period and increase their
positivity with respect to brand(von Bonsdorff and et.al., 2018).
Robinson model of employee engagement
It can be explained as science of engaging people and developing confidence of them.
This theory explains that managers are required to pay attention on values of employees and their
feelings. Organisation has to make such policies that may help in meeting with the needs of staff
members (Lu and et.al., 2015). Training & development, communication, performance appraisal
all such kinds of activities assist in encouraging people and making them positive towards the
brand. High level of co-operations aids in making them feel valued by this way they feel satisfied
in organisation and get engaged with their seniors and peer group members.

Figure 1Robinson model of employee engagement
(Source: Models of employee engagement & their applications, 2018)
Importance
 Employee engagement and relationship is beneficial for the Starbucks in order to develop
communication among all staff members. By this way people coordinate with each other
and this minimises confusion at workplace. Effective communication helps in smooth
functioning of operations and raising efficiency level as well (Haneda and Ito, 2018).
 Employee relationship is very important in increasing profitability and efficiency.
Healthy relationship or bonding aids to keep deserve employees in business for long
period. By this way these talented people contribute well in accomplishment of goal of
firm and support in enhancing productivity of the firm (Sandholtz and Burrows, 2016).
 Starbucks has good relationship with its staff members, It helps in reducing conflicts. All
the people discuss their problems with management and managers resolve their quarries
soon. This is helpful in minimising negative situations at workplace.
 Employee engagement and relationship is beneficial in increasing loyalty of works. By
this way all the workers become loyal towards brand and support Starbucks in gaining
competitive advantage (García-Lillo, Úbeda-García and Marco-Lajara, 2017).
 Employee relationship creates healthy workplace atmosphere; it raises motivation level of
staff members. They give respect to their higher authorities and support them in every
complex situation.

P6 Key legislation and their impact on HRM decision making
For organisation it is very important to take care of each legislation and follow it properly.
There are several laws that need to be followed by Starbucks which influence on decision
making of human resource management(Chen and Ahlstrom, 2017).
Health and safety act 1974: It is essential for Starbucks to follow this legislation, company has
to provide safer atmosphere to its staff members so that they feel comfortable and work for
longer duration at workplace. Now it becomes essential for Starbucks that to provide insurance to
all its employees and take care of safety measures in organisation. This increases cost of business
but also helps in making people loyal towards the brand. If enterprise fails to follow this law
carefully then it would impact negatively on business unit and it will not be able to retain its
workers for longer duration (Zehir and et.al., 2016). Management has to ensure maintaining
working premises, if any accidents occur then HR would be responsible to pay compensation to
staff for the injury. HR has to arrange training sessions for its employees and make them aware
with welfare provisions. This will give positive results to Starbucks to great extent.
Equality act 2010: Starbucks needs to follow this act and has to ensure that it treats all its staff
member’s equality. Starbucks needs to measure performance of each employee and accordingly
has to take decision of promoting them (Kim and et.al., 2019). Company does not discriminate
any person on the bases of their age, gender, race etc. It treats disable person equality as normal
workers. All workers are recognised on the bases of their capabilities and their contribution in
business unit. If any person bullies other than HR takes strict decision against the person and
give them punishment for the same.
National minimum wages act 1998: This legislation needs to be followed by Starbucks, as it is
essential for company to give salaries as per this law (Renz, 2016). If enterprise fails to offer
adequate among then it would create negatively among all staff members which will demotivate
them and they will not like to work in organisation for longer duration.
LO 4
P7 Application of HRM practices in work related context
Staffing plays the crucial part for the growth of the company and uses various methods to
hire the deserving candidates who are desired to work for organization goals. HR manager has to
hire skilled people those who can perform well in the firm and can contribute well in

accomplishment of goal of business unit. In order to recruit talented people HR manager has to
prepare many documents (Gatewood, Feild and Barrick, 2015).
Job specification
Company Starbucks
Location England
Post Marketing manager
Responsibilities Generating sales
Leading sales team
Analysing annual reports
Dealing with consumers
Qualification MBA in marketing from renowned university
Experience Minimum 2 year experience in relevant field
Job Title Marketing Manager
Date: 13/05/2019
Required Qualification Essential Desirable Met
MBA in Marketing from
renowned University
Diploma is management
Yes
Yes
Experience
2year experience as
marketing person
Experience of handling
customer data base
Yes
Yes

Skills and abilities
Strong communication
skill
Positive attitude
Leadership skill
Yes
Yes
Yes
Roles and
Responsibilities
Employee management
Sales planning
Database handling
Dealing with consumers
Managing team of more
than 15 members
Yes
Yes
Yes
Yes
Yes
Preparatory notes for interview
 What do you know about Starbucks?
 Why do you want to work with Starbucks?
 Are you comfortable in traveling to other location with official work?
 What are your strong and weaker points?
 Why company should select you?
Selection criteria and score sheet
Working experience
Qualification
Communication and team management skills
Category 1 (Good ) 2 (Average) 3 (Poor) Some additional
comments
Supervision
capabilities