Performance Management Report: Starbucks Store Manager in Sydney

This report focuses on the performance management of a Starbucks store manager in a Sydney shopping mall, analyzing the internal and external environments of Starbucks' retail division in Australia. It details the job analysis and job description, highlighting key dimensions used to develop a performance appraisal form based on a graphic rating scale. The report explains the performance management cycle, including planning, review, and rewards, and how it aligns with the business unit's strategic goals. It explores how the performance appraisal adds value to the organization by improving store manager performance, customer relationship management, and financial outcomes, ultimately contributing to Starbucks' expansion strategy in Australia. The report also discusses the conduction of performance appraisal, its usage, and its fit within the business unit strategy. The report emphasizes the importance of aligning the store manager's performance with the overall strategic objectives of the retail unit, aiming to enhance customer experience and build a stronger brand presence in the Australian market.

Running head: PERFORMANCE MANAGEMENT
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Executive Summary
The report discusses the job analysis and job description of a store manager of Starbucks in a
popular shopping mall in Sydney. The internal and external environment of the retail division of
Starbucks is studied before the job analysis process. Key dimensions are chosen from the job
analysis to develop a performance appraisal form. The performance management process will
help the company to achieve goals of its strategic unit –that is the retail division of Starbucks
Australia and will add value to the company. These factors are discussed in detail in the report.

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Contents
1. INTRODUCTION.......................................................................................................................2
2. DISCUSSION..............................................................................................................................3
3. PERFORMANCE MANAGEMENT PROCESS....................................................................4
3.1 GRAPHIC RATING SCALE IS USED TO DEVELOP THE PERFORMANCE
APPRAISAL FORM....................................................................................................................6
3.2 THE PERFORMANCE APPRAISAL FORM USAGE DESCRIPTION.............................8
3.3 THE CONDUCTION OF PERFORMANCE APPRAISAL.................................................9
4.1 HOW THE PERFORMANCE APPRAISAL a) FITS WITH BUSINESS UNIT STRATEGY
.......................................................................................................................................................10
4.2 HOW THE PERFORMANCE APPRAISAL ADDS b) VALUE TO THE ORGANIZATION
.......................................................................................................................................................10
CONCLUSION..............................................................................................................................11
APPENDICES...............................................................................................................................12
5. REFERENCE LISTS.................................................................................................................15

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1. INTRODUCTION
Starbucks is a leading global retail outlet of coffee and operates in more than 20,000
locations worldwide. The company was founded in Washington and since its inception in the
year 1971, the global coffee chain has gained huge customer base and has been innovative in
managing its operations worldwide. However in Australia, Starbucks has faced major difficulty
in expanding. The company has very few stores in Australia. Starbucks faces stiff competition
from Coffee Club and Gloria Jeans café in Australia. Starbucks Australia has faced more than
$100 million losses in the year 2002 because Australians do not prefer an American brand and
have demonstrated buyer loyalty to the local cafes. However, recently the global café chain is
planning for expansion in Australia and would open more stores in major cities including Sydney
and Melbourne (Anon 2017).The strategy of the retail business unit will be to open stores in
shopping complexes and popular tourist locations. The strategy will be to target the tourists
visiting Australia who are already familiar with the popular brand. However, the company will
try to win a good customer base comprising of Australian population and will focus on Corporate
Social Responsibility in Australia. The role of a store manager will be of paramount importance
in achieving the business objectives of the retail unit of Starbucks Australia (Salleh et al 2013).
2. DISCUSSION
The job of Store Manager of Starbucks Australia will be aligned with the expansion
strategy of the company. From the analysis of the internal and external environment of Starbucks
Australia, it is evident that the company has failed to establish its brand value among local

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Australians. Also Starbucks Café charges a premium price for coffee which is much more than a
local independent coffee outlet in Australia. Thus, the major roles and responsibilities of the
Store Manager of Starbucks Sydney should help the company to achieve its strategic business
objective of earning more profit from tourists as well as trying to establish a strong brand image
of the company among local Australians.The job aims to create an indelible experience for
tourists visiting the Store as well as the store manager is supposed to build innovative strategies
to enhance the brand image among local Australians. The store manager will be responsible for
overall operation of the store which will include financial performance of the store, stock
handling and maintenance, organizing ATL promotional activities to drive footfalls of customers
in the store, supervising the human resource department of the store and ensuring overall safety
and security in the store. The job responsibilities will be aligned with overall strategic objective
of the retail business unit of the Starbucks Australia.
3. PERFORMANCE MANAGEMENT PROCESS
Performance management of the store Manager of Starbucks will provide an
understanding about how he contributes to the strategic goals of the retail head of Starbuck
Australia. The performance management will follow a cycle which will involve planning of the
key responsibilities of the store manager so that expectations and standards of performance can
be created on the basis of the strategic goals of the retail unit. The performance management
process will also enable the higher management like the retail head or operations manager to
identify gaps in training and development required by the store manager of Starbucks Australia.
After this gap is identified, adequate training can be provided to him so that he gathers the
necessary skills and abilities to perform his job in more efficient and effective manner. The
review of the performance will be the next step of performance management. There are different

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methods of performance appraisals. In modern organizations 360 degree appraisals is used by the
company where performance is reviewed by self, peer, manager, customers and supervisors. This
method of performance appraisal can be used to review the performance of store manager of
Starbucks so that a holistic review of his performance can be obtained. Once the completion of
performance review is completed, the store manager of Starbucks can be rewarded either
tangentially like a pay hike, or an increase in bonus or he can be rewarded by praise from
supervisors which will induce positive reinforcement in his behavior. Reward can only be
provided on good performance, however if performance is not satisfactory, training can be
provided to the store manager so that he can gain necessary skills to perform better. If
performance level of the store manager of Starbucks Sydney is poor then management can also
think of replacement.
Performance Appraisal of store manager of Starbucks Sydney can be done using
traditional techniques like Graphic Scale Method, Ranking method, Essay Method, Checklist
Method. Other modern methods can also be used to rate the performance of the store manager.
These are Management by Objectives,360 degree Appraisal. The Graphic Rating scale is used to
rate the performance of the store manager.
Performance management of the store manager of Starbucks Sydney will have different
objectives-The store manager can achieve superior standards of performance through this
process, this process will help the store manager to identify the barriers which will prevent him
from performing effectively. The Operations head or the Retain head can intervene at this stage
by providing the necessary mentoring and coaching. The performance management will also
help the store manager of Starbucks Sydney in personal growth and will help in his career
development, planning and succession. Performance appraisal can help the company to

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contemplate on the productivity and efficiency of the store manager of Sydney Australia. The
customers visiting the café and the human resource team at the store can also participate in rating
the performance of the manager. The store manager will be responsible for performance
management of his team which is the front-line employees in Starbucks Sydney.
Performance Management Process of the store Manager of Starbucks will be evaluated
by Operations Head and Retail Head of Starbucks Sydney. Performance appraisal is a tool of
performance management (Buckingham and Goodall 2015). The standards and expectations of
performance of the store manager of Starbucks Sydney is developed based on the job analysis
and job description. It is ensured that the performance management process is strategically and
contextually congruent. The overall strategic goals of the retail business unit of Starbucks
Australia are in alignment with the performance management of the store manager. Also, the
culture of Starbucks and the Australian culture are incorporated in the performance management
system.
3.1 GRAPHIC RATING SCALE IS USED TO DEVELOP THE PERFORMANCE
APPRAISAL FORM
Performance Dimension Distinguished Excellent Commendable Adequate Poor
a)Job Knowledge about
in-store retail activities,
Customer Relationship
Management, Enterprise
5 4 3 2 1

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Resource Planning,
overall Operational
Management is measured
b)Human Resource
Management-
Performance of store
manager with respect to
recruiting, training and
developing and evaluating
performance of staffs of
the store are rated
5 4 3 2 1
c)Financial Management-
Performance of the Store
manager in managing
expense of store according
to the budget allocated
and his ability to achieve
financial objectives of the
store is measured
5 4 3 2 1
d)Communication- Both
oral and written
communication of the
Store Manager is
5 4 3 2 1

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measured, performance
related to handling
sensitive information and
clearly communicating
adequate information to
staffs of the store are
measured
e)Decision Making/
Problem Solving- Ability
to take independent
decisions to achieve
overall strategic goals of
retail business unit is
measured
5 4 3 2 1
f)Team Work- Team work
with staffs of store and
other partners like Supply
Chain partner is measured
5 4 3 2 1
g) Customer Relationship
Management-
Performance related to
soliciting feedback from
customers and delivering
incredible service to them
5 4 3 2 1

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by designing an excellent
promotional schedule is
measured.
3.2 THE PERFORMANCE APPRAISAL FORM USAGE DESCRIPTION
Graphic Rating Scale of Performance Appraisal for the store manager is used. The
graphic rating scale presents the seven dimensions of performance of the store manager. These
dimensions are based on the performance standards and expectations which can be contemplated
from the job analysis and job description of the store manager of Starbucks Sydney. Each of the
seven performance dimensions are rated on scale of 1 to 5. Scale 1 denotes a poor performance
and scale 5 denotes distinguishable performance (Bernardin and Wiatrowski 2013).
3.3 THE CONDUCTION OF PERFORMANCE APPRAISAL
The performance Appraisal will help in communicating the performance of the store
manager of Starbucks Sydney so that he can comprehend how well he his handing his job
responsibilities, the key areas of improvement. The performance appraisal will enable the store
manger to identify his key strengths and weakness and will help the company to assess any
further developmental needs for the store manager. Rewards like compensation and promotion
will be given based on performance appraisal. A performance review meeting will be conducted
by Operations Head and Retail Head of Starbucks Sydney quarterly so that the store manger
receives a feedback on his performance. Key areas of improvement and a future action plan will
be developed during the meeting. The Operations head will work together with the Store
Manager of Starbucks Sydney and will develop solutions of any performance related problem.
Motivation and competencies of the store manager will be reviewed in performance appraisal

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and if he performs well, a positive feedback will be given. The pay and financial rewards of the
Store Manager of Sydney Australia will be reviewed and designed based on Equity Theory
where the market standards and other economical factors will be considered while designing
financial rewards (Shields et al 2015).
4.1 HOW THE PERFORMANCE APPRAISAL a) FITS WITH BUSINESS UNIT
STRATEGY
The performance appraisal and the entire performance management process helps in
achieving the strategy of the retail business unit of Starbucks Australia. The performance
management process focuses on key dimensions of performance which are derived from
performance expectations or standards of job analysis of retail store manager. The performance
of retail store manager of Starbucks Sydney is aligned with strategic business unit goals of
increasing footfalls of customers in the store which include both local and tourists. The location
of store in a leading shopping mall of Sydney is a strategy to increase customer footfalls. The
performance of the store manager in meeting and exceeding financial goals of the store will help
in the expansion process of Starbucks in Australia. The performance appraisal measures the
customer centric approach of the store manager by rating his customer relationship management
dimension which will enable the strategic business unit to achieve its desired customer base
(Rausch, Sheta and Ayesh 2013).

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4.2 HOW THE PERFORMANCE APPRAISAL ADDS b) VALUE TO THE
ORGANIZATION
The performance appraisal help in analyzing the performance of store manager, positive
feedback and both tangential and non-tangential rewards are given in case the performance of the
store manager meets the set standards. Problems related to performance are discussed by seniors
with the store manager so that future action plan for improved performance can be set and
implemented (De Waal 2013). The performance management adds value to the organization
because this process enables the company to review how well the store manager is contributing
to the vision and strategic goals of Starbucks retail division in Australia. Performance
management follows a holistic approach measuring key dimensions like financial goals and
customer relationship management. This process will enable Starbucks to be a customer-centric
organization and can have a long term impact on increasing brand value of the company in
Australia (Bednall, Sanders and Runhaar 2014).
CONCLUSION
The job of store manager of Sydney is of paramount importance to the retail division of
Starbucks Sydney. The key job responsibilities of the store manager will enable the retail
division to achieve its strategic business unit. The performance management process will help
the reporting head of the store manager to review his performance and give him necessary
feedback. Performance appraisal which is a tool of performance management rates the store
manger on key performance dimensions. The rating will give an overview of the performance of
the manager. If he demonstrates expected performance he can be given rewards like praise and
financial reward. If his performance is above expectation, a promotion or salary hike can be