Strategic HRM: Starbucks Policies for Declining Markets and Innovation

This report provides a detailed analysis of Starbucks' strategic human resource management (SHRM) practices. It begins with an introduction to SHRM and its objectives, followed by a review of the functional aspects Starbucks uses to manage its employees, including hiring policies, diversity initiatives, workplace safety, and wage regulations. The report then explores how Starbucks can adapt its SHRM policies to navigate declining markets, foster innovation, and operate in international contexts. It examines key components of SHRM, such as aligning HR strategy with business goals, analyzing HR functions, forecasting future requirements, and evaluating tools. The report also discusses the importance of cultural competence and teamwork practices. Finally, it concludes by emphasizing the significance of SHRM in enhancing employee productivity and achieving organizational goals. This report, contributed by a student, is available on Desklib, a platform offering AI-based study tools.

Strategic human resource
management

Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Review of the functional aspect of SHRM that Starbucks use to manage its employees......3
SHRM policies that Starbucks can adapt to fit in declining markets, innovative capacity and
international contexts..............................................................................................................5
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

Introduction
Strategic human resource management involves a opportunity orient course of development and
implementation of Human resource programs. The main objective of human resource programs
is to address & resolve business problems that can directly contribute towards achieving the long
run & short term objectives played by the particular organisation. It is a combination strategy of
human resource management and strategy that provides a distinctive approach to employment
management. Presently, there is analysis of function aspect of strategic human resource
management that Starbucks as a global brand is using for the purpose of managing its employees.
Another, aspect is related with Star bucks willing to adapt certain practices for the purpose of
dealing with the declining markets international context and innovation capacity. Starbucks is a
brand established in 1971 and since then it has become one of the fastest growing companies
across world (Fey and Björkman, 2017). They entered in 21st century with an objective of
enhancing shareholder worth by consolidating the place in mature market. For the Starbucks is
willing to achieve a higher competitive advantage as well as superior profit margins by using
strategic human resource management as a functional aspect.
Main body
Review of the functional aspect of SHRM that Starbucks use to manage its employees
Starbucks as a global brand believes that they possess the responsibility to educate the public
policies and internal support for managing their employees and communities they are serving.
Human resource policy are referred to strategy that describe the company’s principles, values
and strategies that have to be implemented in the course of specific human resource management
areas (Mamba, Beharry-Ramraj. and Mashau, 2021). For this purpose Starbucks policies
demonstrate a obligation to be a accountable business that ranges from worldwide principled
commerce standards and being one of the best coffee suppliers. For this certain standards have to
be considered with the mission to motivate & cultivate the human spirit. So, some of the
different functional aspects that are used by Starbucks to manage their employees are discussed
below:
Hiring policies: Starbucks is consistent with global human right standard. They are promoting
equal opportunities in their hiring practices and recruitment policies. The Human resource

department of star bucks have properly design assortment practice to recognize the candidate and
match them with the required job position and specific organisational requirements.
Diversity aspects: Starbucks is actively creating and willing to promote the environment that
comprehensive of all people & their exclusive strengths, ability & differences. Further, there is
achievement of competitive business advantage by having a workforce from different
backgrounds (Tadesse and Jembere, 2020). Starbucks as a global brand believes that it provides
them a sense of more Innovation and creativity that is helping them in long run survival.
Workplace safety and security: Starbucks as a global brand is willing to follow all the safety
practices and rules to enforce them across organisational working. The Human resource
department is working towards ensuring proper safety security of all the employees working in
different departments and levels. There is requirement to provide safety training and report
immediately if there are unsafe practices injuries accidents in case of employee working.
Substance abuse and weapons: Starbucks have strict principles related to matter weapons and
abuse. Its partners are not legalized to use any alcoholic beverages except where the alcohol is
specifically promoted in sponsored social events. Further it is also very essential to understand
and follow all the policies because Starbucks have to follow all the rules related to administrative
centre health safety security very critically.
Wage and hour rules: Starbucks is highly dedicated to follow all the laws, regulations and
wages. They are willing to ensure that all the work that is performed in Starbucks how to be
compensated correctly on the basis of hours worked. It ensures that there is accurate recording of
time with establishment of local procedure.
Community involvement: Starbucks as a global brand believes in having proper involvement of
all its staff members towards achievement of their laid vision and mission. They are having
higher commitment to the role of environment leadership in the business. For this purpose they
are working towards understanding all the environmental issue, contribution of information with
the partners, developing flexible and innovative solution related to amend, striving to sell buy
and use environmental friendly commodities and further recognising the responsibility towards
environmental future (Santos, 2020). Lastly there are also monitoring and measuring the progress
of each project so that they are able to develop proper involvement of all their associated
stakeholders.

Wage & hour rules: Starbucks is dedicated towards follow all the laws and rules that are
applicable to wage practices (Lin, 2021). They ensure that all the work that is performed in
Starbucks is remunerated accurately on the origin of number of hours that are work by each
individual
For this purpose Starbucks is also recording accurate time in accordance with established local
procedure. All these practices are helping start bucks in formulation of best rules (Eivazinezhad,
and Parishani, 2020). These practices assist in having a satisfactory employee base.
Workplace safety and security: In Starbucks all the partners are expected to follow safety
practices and rules. The human resource management is willing to enforce these practices and
rules so that all the necessary steps are taken to ensure safety training.
SHRM policies that Starbucks can adapt to fit in declining markets, innovative capacity and
international contexts
As per view points of Wright and McMahan (1992), strategic human resource management is a
pattern of planned human resource activities and deployment that are used to enable
Organisation in achieving their late aims and objectives. As per this definition there are four
major components of strategic Human resource management:
1. It is focused on organisations human resource practices as the primary needs, source of
organisation willing to achieve the competitive advantage
2. The various activities highlight the policies, programs and practices that can help in
achieving the required competitive advantage.
3. The overall plan and pattern is focused towards implying a fit between human resource
strategy and organisations business strategy.
4. The practices people and planned patterns are purposeful towards achievement of
organisational goals only.

(Source: Strategic Human Resource Management (SHRM), 2020)
In context of Starbucks it can be stated that strategic human resource management will help in
dealing with issues and practices that are affecting the organisation strategic plan. In general
context there are certain commonly faced issues arising because of contemporary environment
(Husienand Ogla, 2020). It includes availability of people, retaining of employees, motivating of
employees and developing necessary required resources. In order to stay ahead of competition
organisation have to continuous to look for different ways to gain a competitive advantage.
Strategic human resource management is based on having a proactive management of people to
achieve the desired value. It is designed to help organisations and meeting the needs of
employees while promoting the organisational goals (Krishnan, 2019).
Strategic human resource management is the basic association between organisations human
resource objective strategies and goals. The meaning of strategic human resource management in
every organisation is 3 fold:
First goal is to advance innovation flexibility and achievement of higher competitive advantage
 Next aim is to develop fit for organisational culture
 Third major aim is to improve overall business performance in long run

For the purpose of having the proper strategic Human resource management process human
resources play a vital position as a strategic partner when organisations policies are created and
implemented. Strategic human resource is established to various actions that include hiring of
employees, training them and providing them necessary rewards. Strategic human resource in
star bucks has to be based on looking at different ways where human resource can make a direct
impact on over organisational growth (Keegan, Ringhoferand Huemann, 2018). Human resource
personnel have to develop a strategic approach to retain and grow employees to meet their long-
term plans. Presently there is an analysis of different strategic human resource policies that
Starbucks can adapt to fit in the diminishing markets developed innovation capacity &
international context.
Understanding organisation strategy and present objectives: In case of strategic human
resource management practices the Human resource department have to work towards alignment
of HR strategy with the wider business area (Krishnan, 2019. In Starbucks a senior leadership
team of business have to define the goals objectives and communicate them effectively to the
whole business.
Undertaking analysis of HR functions: In this step there is requirement to evaluate the recital
of existing human resource team to appreciate the skill and capacities that are required to add
value in different areas. In star bucks this process can start with the performance review process
by making analysis of effective skill sets and competency framework assessments to analyse the
opportunities and strengths of each individual.
Forecasting future human resource requirements: In context of human resource department
of Starbucks it is the responsibility of HR department to look ahead of the business strategies and
planning to meet the lead objectives (Kaufman, 2019). In starbucks this situation is related to
analysing the process of demand and supply of workforce. Supply relates to the employees that
are already in the industry and the opportunity that our existing as per the skill set. Demand
considers the obligation in outlook in terms of required human resource skills.
Evaluation of the tools: there are certain to tools that are required to evaluate as per role of
employees. It is one of the critical steps in the strategic Human resource management process. In
context of Starbucks the Human resource department have to work in partnership with various
other functional departments. Collectively it will help in providing the best opportunities to work

effectively. Another aspect is that it is going to help in analysing the areas where investment is
required in future.
Defining human resource strategic goals: It is important for the human resource department of
Starbucks to outline their strategic goals and further implement the strategy. Major aspect of
Human resource management process is to start the recruitment process by identifying the
present personal gaps. Common aspect of Human resource department is to communicate the
human resource goals and strategy across the whole production so that it can become fully
integrated into daily business operation.
Evaluation of effectiveness of strategic human resource practices: There has to be proper
implementation of certain human resource management practices. In star bucks the HR manager
has to analyse the business priorities and needs I'm making a constant review of the late human
resource strategy. It is very important to ensure that there is contribution made towards
achievement of positive business success.
Culturally competent: It is very important for strategic human resource management practices in
Starbucks. For this purpose customers and employee across different types of the world after that
have to work towards having proper idea of diversity (Jiang. and Li, 2019. This practice is
required to help in having a better working process to me the requirements of target customer
needs.
Team work practices: Strategic appropriate best environment employee is willing to focus on the
target objectives. Further it is going to help in having proper employee engagement for
continuous improvement to come up with better business practices for supporting the
organisation model.

Conclusion
From the above discussed aspects it can be concluded that strategic human resource
management is a part of planned human resource activities and deployments that have a major
intention to enable Organisation in achieving their goals. There are different effective strategies
and approaches that are related to decisions in context of recruitment employment relations
training performance management employee relations employee development and rewards. All
these aspects have to be carefully managed to enhance the productivity of employees in the
organisation.

Reference
Books and Journal
Jiang, K. and Li, P., 2019. Models of strategic human resource management. Sage handbook of
human resource management, pp.23-40.
Kaufman, B.E., 2019. Managing the human factor. Cornell University Press.
Keegan, A., Ringhofer, C. and Huemann, M., 2018. Human resource management and project
based organizing: Fertile ground, missed opportunities and prospects for closer
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Krishnan, T.N., 2019. Strategic Human Resource Management in Small and Medium
Enterprises: Challenges and Opportunities. NHRD Network Journal, 12(3), pp.225-231.
Husien, A.A.A. and Ogla, M.M., 2020. Theoretical philosophy in the study of strategic human
resources management. AL-Anbar University journal of Economic and Administration
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Eivazinezhad, S. and Parishani, A., 2020. The Impact of Strategic Human Resource of
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Online
Strategic Human Resource Management (SHRM), 2020 [online], Available
throughhttps://www.iedunote.com/strategic-human-resource-management