Business Research: Impact of Performance Management on Starbucks

This report examines the impact of performance management systems on employee performance, using Starbucks in Hong Kong as a case study. The research explores the significance of performance management on employee and organizational performance, addressing research questions and hypotheses. It delves into the background of Starbucks' focus on employee development, the decrease in sales, and the resulting problem definition. The literature review covers performance management tools, employee appraisal, motivation, and the impact of innovation. The research methodology employs a positivism philosophy and a deductive approach. The report's introduction highlights the importance of performance management in enhancing workforce capabilities and organizational competitiveness, and the conclusion will summarize the findings and suggest suitable performance strategies. The report also includes an abstract, table of contents, and references to support its claims.

Running head: BUSINESS RESEARCH METHOD
Business research method
Name of the student
Name of the university
Author note

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Acknowledgement
By this research, I have experienced best possible learning of my life. By conducting this
research, I have learnt various concepts, models and theories. I first thank to the almighty
God. After that, I want to thank to my supervisor ______________ who is my friend,
philosopher and guide. I also thank my parents for being supportive and accommodative for
completing this research. I want to thank my friends for giving me the moral support while
conducting this research.

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Abstract
This is a research which portrays the impact of the performance management system
on the performance of the employees in the organization named Starbucks. Performance
management is a tool of polishing the capacity of the human resources which will help in the
development of the performance of the workforce in an organization. The managers in the
modern era are trying to find new ways of performance management to motivate the
employees so that they can make improvements in their respective performance (Shields et
al. 2015). The workforce is a key indicator of the performance of an organization and can
provide competitive advantage to the organization. This study will deal with the case of
Starbucks, Honk Kong which will critically analyse the performance management techniques
in the organization to identify its impact on performance of the employees. The analysis will
be conducted considering the primary data. In addition to this, the implementation of the
study will also help to learn the present trends and facts related to the performance
management system. The study will also help to know how technology is being implemented
in the performance management system to make the method more effective and transparent.

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Table of Contents
Introduction................................................................................................................................4
Background................................................................................................................................5
Research objectives....................................................................................................................5
Research Question......................................................................................................................5
Research Hypothesis..................................................................................................................5
Problem definition......................................................................................................................5
Literature review........................................................................................................................6
Research methodology...............................................................................................................8
Findings and analysis.................................................................................................................9
Conclusion................................................................................................................................10
Reference..................................................................................................................................11

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Topic: Examining the impact of performance management system on employee
performance- A case study of Starbucks, Hong Kong
Introduction
This is a research which portrays the impact of the performance management system
on the performance of the employees in the organization named Starbucks. Performance
management is a tool of polishing the capacity of the human resources which will help in the
development of the performance of the workforce in an organization. The managers in the
modern era are trying to find new ways of performance management to motivate the
employees so that they can make improvements in their respective performance (Shields et
al. 2015). The workforce is a key indicator of the performance of an organization and can
provide competitive advantage to the organization. This study will deal with the case of
Starbucks, Honk Kong which will critically analyse the performance management techniques
in the organization to identify its impact on performance of the employees. The following
report is based on the investigation of the impact of employee performance system on
employee performance. Performance management system is one of the significant approaches
falling under the human resource management. In order to motivate and enhance the
performance of the employees, the organization must fulfil the needs and demands of the
employees. It is certain that effective performance management system contribute to the
organizational productivity. This is because the employees find motivation in such practices.
However, it is significant to learn the efficiency of such practices as not all organizations
implement such method to motivate employees and gain productivity. Thus, to learn the
impact, the present report considers the organization Starbucks, Hong Kong. The report
presents the type of methods that will be used in the proposed study.

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Background
Research objectives
 To evaluate the impact of performance management on employee performance
 To critically analyze the significance of performance management on organizational
performances
 To recommend suitable performance strategies for Starbucks, Honk Kong
Research Question
 What is the impact of performance management strategies on employee performance?
 What is the significance of performance management on employee performance?
Research Hypothesis
H0 – Performance management has no impact on the employee performance of Starbucks,
Honk Kong
H1 – Performance management has impact on the employee performance of Starbucks, Honk
Kong
Problem definition
Starbucks have always been focused on the development of their employees so that
they can provide their consumers with the best possible experience. Therefore, the
organization introduced training programs where the employees are provided with the
knowledge about the various subjects such as the different types of coffees and how to
communicate with the consumers in an effective manner (Jenter and Kanaan 2015). However,
recently it has been seen the sales of the organization have decreased significantly due to hike
in the price of the products offered. This study will try to identify the causes related to
performance management which has affected the overall performance of the organization.

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Literature review
Performance management is a tool which is being used by the managers in the
organization to evaluate and develop the performance of the employees in the organization.
The evaluation part will include performance appraisal of the employees, retention,
promotion and termination of the employees. The development part will include the
identification of the needs of the employees such as the training and the development needs,
identification weaknesses and strength, feedback on the performance of the employees and
provide guidance for the improvement of the employees (Anitha 2014). The organization are
shifting their focus to the performance of their workforce as it is one of the most important
part of the organization. The ability of the workforce of an organization will determine
whether they will be gain competitive advantage in the market. Thus, the wellbeing and
growth of the organization is dependent on the performance of the workforce in the
organization.
Employee appraisal is one of the common tools of performance management which
has been sued by the organization to monitor the performance of the employees. The
appraisal system will identify the present performance of the employees and how they can
make improvements in their performance. The productivity of an organization is partially
dependent on the workforce so it essential for the managers in the organization to make sure
that they regularly monitor the performance of the employees so that they can help the
employees to make continuous improvements in the field of expertise. As stated by Elnaga
and Imran (2013), it is essential for the organization to make sure to keep a two-way
communication channel which will help to communicate the goals of the organization with
that of the employees. This will help the employees to align their goals with that of the
organization. However, according to Judge et al. (2013), the employees will have to keep
faith in the processes and evaluation system follwo9ed by the organization so they can grow.

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When the employees lose their trust on the evaluation basis of the organization then it will
hamper the growth of the workforce in the organization. It has been seen that in order to
maintain a professional allied behaviour the organization will have to monitor the
performance of the employees. The various methods that has been used in the performance
appraisal management are the ways of motivating the employees in the organization.
The second most important factor in the performance management is motivation of
employees. Motivation is a factor which will drive the employees to make sure that they are
able to achieve their goals in the organization. The appraisal system will definitely have a
strong impact on the performance level of the employees. The employees in the organization
are provide with a lot of benefits in the appraisal performance which will help to motivate to
work at their full potential. Innovation is the key to competitive advantage in the market and
so most of the companies in the market are making use of innovation in the human resource
practices of the organization so they are able to make improvements in the business model of
the organization. These innovative processes are aimed at generating more amount of
motivation within the employees in the market. This market is growing at a rapid rate where
the organizations are more concerned about the employees and the human resource practices
in the organization. According to Landy, Zedeck and Cleveland (2017), the learning aptitude
of the employees, innovation, environment of the workforce and management are crucial
factors in the performance of the employees. Motivation is one of the key factors is
increasing the productivity of the organization. Thus, motivation plays an important role in
harmonizing the performance of the employees with that of the organization. Performance
consist of these crucial factors which will be the integral part of the managing the workforce
of the organization.
Starbucks is a n organization who is known for the exclusive services they provide to
their consumer in the market. The products and services offered by the organization is

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always dependent on the workforce of the organization. The workforce has been involved in
a lot of training and development process which has enabled them to provide a better
experience to the consumers in the market. The organization have been facing problems in
maintaining the social values and cultures in the organization in various countries because
they are unable to understand the national culture in the organization (Hernandez et al.2016).
This shows that innovation is the key to gaining competitive advantage and the organization
will have to make sure that they are able to make use innovative ideas in the human resource
management. In the service industry it is difficult to reproduce the service provided by the
employees so it is essential provide the employees with continuous training so that they grow
and provide better service to the customers. The organization is facing problems in the Asian
countries as they are unable to access the type of organizational culture that is required in the
consumers. Thus, the revenue of the organization is declining and the organization is facing
problems in making the changes in to the human resource practices. Thus, from the literature
review of the organization it can be seen that performance management is the key to
improving the performance of the employees.
Research methodology
The research methodology is one of the most important part in the development of the
project. This chapter of the study successfully represents the various methods, research
approaches and designs. The result of the research is dependent on the choice of methodology
for research and carries a lot of implication in the study. The identification of the research
method is imperative but the execution and proper accomplishment of the techniques have
equal importance. When the current study is concerned, the selection of the each of the
methods has been justified. The positives and the negatives associated with all the techniques
have also been discussed. According to Taylor, Bogdan and DeVault, 2015, the methodology
framework consists of fixed set of assumptions in the model which are used to conduct the

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research. The most appropriate and relevant objective of the research is the methodology and
moreover, the methodology should be as such that it can used to reproduce the methods and
sue it in other research studies of similar types. Research philosophy of the project is
positivism. Positivism is the kind of philosophy which will help in the identifying the hidden
truth from the all the facts of the research. The scope of observation for the descriptive study
is improved with the help of this research philosophy. This philosophy of the research will
facilitate in the testing of the hypothesis which in turn will help in validating in the existing
theories. The approach of the research that has been chosen for the study is deductive in
nature. The deductive approach will help in validating the existing theories and inductive
approach has been rejected because it helps in generalization and creating new theories
(Silverman 2016). Thus, in the current field of the study deductive approach has been
selected for validating the existing theories in the market. The data collection method for the
study will be primary which will include mixed method. The mixed method will include
qualitative and quantitative analysis of the data. The quantitative analysis will include close
ended questions to the employees of the organization which will help to gain their
perspective. The qualitative analysis of the data will consist of open ended questions and will
be asked to the higher level of employees. The ethical aspect for the research has to be
maintained and all the confidentiality of the data has to be maintained. It will be made sure
that the reliability and validity of the data has been maintained as it will help to reproduce
similar kind of data for other similar projects (Panneerselvam 2014).
Findings and analysis
It is expected that the research will provide an expected outcome, as all relevant and
appropriate methods will be applied to the study. It is expected that the survey will provide
the fats that performance management system is effective for the employees if is

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implemented appropriately. The findings might also indicate the facts that improper or biased
appraisal system could increase the level of dissatisfaction among the employees.
Conclusion
In conclusion, it can be mentioned that the proposed will provide a relevant and
authentic outcome because the study includes primary data. The analysis will be conducted
considering the primary data. In addition to this, the implementation of the study will also
help to learn the present trends and facts related to the performance management system. The
study will also help to know how technology is being implemented in the performance
management system to make the method more effective and transparent.

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Reference
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P.,
Johns, R., O'Leary, P., Robinson, J. and Plimmer, G., 2015. Managing Employee
Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.
Jenter, D. and Kanaan, F., 2015. CEO turnover and relative performance evaluation. The
Journal of Finance, 70(5), pp.2155-2184.
Anitha, J., 2014. Determinants of employee engagement and their impact on employee
performance. International journal of productivity and performance management.
Elnaga, A. and Imran, A., 2013. The effect of training on employee performance. European
Journal of Business and Management, 5(4), pp.137-147.
Judge, T.A., Rodell, J.B., Klinger, R.L., Simon, L.S. and Crawford, E.R., 2013. Hierarchical
representations of the five-factor model of personality in predicting job performance:
integrating three organizing frameworks with two theoretical perspectives.
Landy, F., Zedeck, S. and Cleveland, J. eds., 2017. Performance measurement and theory.
Taylor & Francis.
Hernandez, M., Avery, D.R., Tonidandel, S., Hebl, M.R., Smith, A.N. and McKay, P.F.,
2016. The role of proximal social contexts: Assessing stigma-by-association effects on leader
appraisals. Journal of Applied Psychology, 101(1), p.68.
Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods:
A guidebook and resource. John Wiley & Sons.
Silverman, D. ed., 2016. Qualitative research. Sage.
Panneerselvam, R., 2014. Research methodology. PHI Learning Pvt. Ltd.