Employee Relations at Starbucks: A Comprehensive Analysis

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Employee relations

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Table of Contents
Introduction.................................................................................................................................................3
Background of Starbucks.............................................................................................................................4
LO1.Implement the principles of employee relations in Starbucks.............................................................4
P1.Value, and importance of employee relations in the organization......................................................4
P2.Essentials of employment law that implement to organizational examples........................................5
M1.Make valid recommendations on how a company could expand and improve efficiently to
employee relations...................................................................................................................................6
D1. Several mechanisms for handling the employment relationship.......................................................7
LO2. Rights, duties and obligations of the employment relationship..........................................................8
P3. Rights, duties and obligations an employer and employee................................................................8
P4. Suitable advice relating to rights, duties and obligations...................................................................9
M2.Analyze the psychological contracts and support for worker work life balance................................9
LO3.Role of different stakeholders...........................................................................................................10
P5. Conduct a stakeholder analysis for Starbucks..................................................................................10
M3 and D2: How stakehodler egagement, contribution may support favroable employment
relationships within the organization.....................................................................................................12
LO4.Impact of positive and negative employee relationship.....................................................................14
P6. Impact of positive and negative employee relations........................................................................14
M4.How positive and negative employee relationships may affect conflict avoidance and resolution..15
Recommendations.....................................................................................................................................15
Conclusion.................................................................................................................................................17
References.................................................................................................................................................18

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Introduction
The main objective of this analysis is to showcase and explain the principals of employee
relations in an organizational context. Starbucks Company will be chosen in the task to discuss
and outline the significance of employee relations. The duties, roles, rights and obligations that
are performed by employer and employee would be explained in the task briefly. The report will
analyze how psychological contract helps in maintaining work life balance in regard to rights and
obligations of employment relationship. A brief information about the stakeholder analysis will
be outlined in the paper.

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Background of Starbucks
Starbucks company is an American coffee firm that was incorporated in 1971. The company
operates and manages its operations and functions in more than 30,000 locations globally. In
today’s era, the firm is serving clients by providing coffee beverages and tea products
worldwide. Starbucks is passionate purveyors of coffee and everything else that goes with a
recognition and rewarding coffeehouse experience.
LO1.Implement the principles of employee relations in Starbucks
P1.Value, and importance of employee relations in the organization
Employer employee relation may be referred to the relationship shared or exchanged among the
workers in the organization. It is an innovative art which effectively and efficiently focuses and
handles the relations between individual either of the common team or from different team. The
dynamic and unique employee relations help in making dynamic decisions at the workplace. In
this way, effective employee relation is important and fundamental for Starbucks to serve the
customers dynamically.
For example, at Starbucks, there are several issues related to management on which an individual
cannot take decisions. Therefore, the top management needs employee assistance and guidance
to conduct decision making process smooth and effective (Naseem, et al, 2011). Thus,
employees play a major role in Starbucks to participate in decision making process.
Furthermore, healthy and strong employee relations discourage and minimize conflicts, disputes
and fights among the workers. For instance, people tend to regulateand alter more and stop
finding errors and responsibilities in each other. The workers do not waste their precious time in
worthless issues and conflicts rather focus on their effort and struggle hard to perform roles and

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responsibilities in a hassle free manner. In this way, powerful employee value and relations
minimize the issue related to absenteeism at the workplace. With power employee relations, they
start discussing each other as colleagues and try best to achieve desired targets and goals of
Starbucks (Shuck, et al, 2011).
P2.Essentials of employment law that implement to organizational examples
Employment laws are put in place to protect or safeguard employees from misconduct and
wrongdoing by their employers. The key employment laws entail minimum wage,
discrimination, workplace safety laws, compensation and child labor laws. The primary purpose
of the labor laws is to safeguard the moralities, and set forth employers responsibilities and
liabilities. They further have various functions and operations. The main functions or operations
of labor laws and acts are to render equal and innovative opportunities and pay employees
mental and physical wellbeing, security, safety and workplace diversity. For example, Starbucks
implements family and medical leave act to provide leave to the workers through a worker
request form and essential medical certifications. By doing so, employers may evaluate and
measure whether an employee’s absence fulfills the standards for FMLA leave set out under this
law (Shen and Jiuhua Zhu, 2011).
National labor relations act (NLRA) is another example that is applied by Starbuck at the
workplace. This law provides workers right to unionize, cooperatively bargain and engage in
concerted activity for their protection and mutual aid. The federal fair labor standard act (FLSA)
also is implemented by Starbucks to set the minimum wage for the workers. The employees who
covered under FLSA are exempt workers (Felstiner, 2011). HR and other compliance personnel
are commonly accountable for analyzing and identifying which workers are exempt, as per the
prescribed legal criteria. Another example is that managers at Starbucks ensure that workplace

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safety and security is a top priority for everyone within the organization. The occupational health
and safety act are set to render a safe and secure workplace including any mandatory training and
learning for managers and workers. The racial discrimination act 1975 was also set by the
company for aiming to prohibit discrimination based on ethnicity, race and national origin. Apart
from this, equal employment opportunity act is another example that Starbucks adheres
employment laws while functioning at international level. The equal employment opportunity act
is the law which provides the equal employment opportunity commission authority to use in
federal courts when it bargains appropriate causes to believe that there is an employment
discrimination on the basis of sex, color, race, sex and national origin (Barnard, 2012) .
M1.Make valid recommendations on how a company could expand and improve efficiently
to employee relations
It is noted that open dialogue and effective communication is a key to improving and enhancing
employee relations. Good and open communication helps to ignore worker confusion and
unnecessary stress. It also helps in setting clear and dynamic goals, objectives and expectations.
Consider generating employee goals and objectives with workers instead of handing them down.
Promote workers to set stretch goals: objectives and goals are complex but attainable. It has
been found that Starbucks could inspire and motivate the workers to maintain effective and
dynamic relations with workers at the workplace. Along with that, career development assistance
and direction can be provided to the workers to promote and enhance strong employee relations.
Another way to stimulate and inspire workers is to reward them. Consider having a silver, gold
and bronze incentive for several attainments of employee objectives and goals. In this way,
Starbucks could enhance and boost dynamic and powerful employee relations (Farndale and
Kelliher, 2013). It is examined that Starbucks should focus on the shared culture, power sharing,

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communication and learning strategies to improve and augment the positive employee relations
in the workplace.
D1. Several mechanisms for handling the employment relationship
There are various mechanisms for handling and managing the employment relationship
presented below.
 Encourage and promote the workers to take roles and responsibilities for conducting
business functions and operations in an effective manner. For example, KFC adheres
several employment laws like discrimination act, and minimum wage act to handle and
manage the employment relationship.
 Support the workers with coaching, mentoring and advice. By providing coaching, advice
and mentoring, top management can handle and manage the employee’s grievances,
issues and complaints within the organization as it will help in building strong and
reciprocal employment relationship in the workplace. For instance, at Burger King, all
the employers are needed by law to abide with minimum employment standards and
rules. The company also protects the child by abiding child labor act. In addition, the
employers conduct constant reviews and audit of their employment agreements,
procedures, and policies to ensure and showcase that they are updated and complaint.
 Using a facilitator and first hand examples whenever possible help in promoting effective
and unique employee relationship and commitment. Facilitator guides and assists the
workers to understand and evaluate the policies and norms of the company. They train
the workers to perform tasks and duties effectively by setting ample of practical
examples. These mechanisms are used by Starbucks to handle and build strong employee
relations.

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LO2. Rights, duties and obligations of the employment relationship
P3. Rights, duties and obligations an employer and employee
The different types of rights, duties and obligations of an employer and employee are shown
below.
Rights, duties, and obligations of an employer
 The duties and obligations of employer is to render an appropriate amount of work, offer
a safe and secure working environment, compensate workers in accordance with the
terms of the contract of job or employment.
 The principal and innovative duties of the employers are: use proper care and skill, render
adequate and dynamic supervision, employ competent and skilled staff, and offer safe
plant and equipment.
 The rights include right to demand hard work, loyalty for workplace and the right to
quality conscientious work (KrygerAggerholm, et al, 2011).
Rights, duties and obligations of employee
 An employee duties and obligations are to take appropriate care of the wellbeing and care
of themselves and of others who might be influenced by what they ensure or do not do.
 It is the responsibility of an employee to follow reasonable and unique directions
provided by or on basis of the employer on conflicts, issues and challenges related to
health and safety.
 It is the duty of the workers to ensure that materials, instruments and protective
equipment are well maintained in a suitable condition (Bidwell, et al, 2013).
 Rights to contribute in the workplace health and safety initiatives through the health and
safety committee.

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 Right to refuse unsafe and unsecure work and right to be informed about potential and
actual dangers in the workplace (Fudge, 2012).
P4. Suitable advice relating to rights, duties and obligations
It is recommended that employer must maintain aoptimistic and favorable relationship with
workers to safeguard or protect the rights, duties and obligations of the workers. For example, an
audit committee can be appointed to handle and resolve the issues and challenges of the workers
which are being faced by them while working. It will also help the employees to perform duties
and obligations in a constructive manner. It is further suggested that employer should provide
training and development coaching to the workers to improve and enlarge their skills, talents and
capabilities. For example, a mentor or coach can be appointed to provide right guidance in order
to conduct business initiatives in a dynamic manner. Recognition and lucrative incentives shall
be provided to talented and qualified workers for aiming to feel them comfortable and happy at
the workplace. Performance management system shall be set to judge and evaluate the duties,
performance and productivity of the workers at Starbucks. There shall not be any discrimination
and bullying on the behalf of the sex, gender and culture. The employer and employee should
know and understand the health and safety requirements, terms and conditions of the
employment, employment act, and labor laws. In this way, rights, duties, and obligations can be
performed effectively and efficiently while functioning (Laddha, et al, 2012).
M2.Analyze the psychological contracts and support for worker work life balance
The psychological contracts may be defined as an unwritten set of needs, demands and outlooks
of the employment relationship as dissimilar from the formal, codified employment contract. The
psychological contract contracts build and enhances constantly based on communication,
collaboration, cooperation and lack thereof, between the employer and employee. It has been

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found that psychological contract eliminates indecision, forms behavior, and provides an
understanding and overview of situation in Starbucks to worker. This contract further helps the
reason why recruits leave during original training, engagement, commitment and satisfaction
within the organization. In this way, it supports for employee work life balance in regard to
duties, rights and responsibilities of the employment relationship. The rights and obligations of
workers and employers are to expand and flourish the functions and operations of Starbucks
widely and to abide all the employment laws and rules prescribed by Starbucks internationally.
These rights and obligations are attained by making psychological contracts with them openly
and effectively.
Apart from this, it is useful in measuring and analyzing people’s reaction to the changing
framework of career development and enhancement. Additionally, it supports to make sense of
current employment relationship and supports to showcase who has power. In this way,
psychological contract helps the workers to maintain work life balance in regard to duties,
obligations and rights of the employment relationship and effectiveness (Van Buren et al, 2011).
LO3.Role of different stakeholders
P5. Conduct a stakeholder analysis for Starbucks
It is studied that Starbucks continues to enhance and improve its corporate social responsibility
to evaluate and report the concerns and issues of various stakeholder groups. The main
stakeholders of Starbucks include the following:
Employees: The Company prioritizes workers in its CSR endeavors. Thus, the stakeholders like
worker demands for better working environment and conditions, greater wages and job security.
The company’s organizational culture promotes and encourages the worker first attitude. Apart
from this, workers are provided wages above the legally instructed minimum wage. Starbucks

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protects the rights and values of the workers by providing innovative culture and working
environment.
Customers: Customer is one of the innovative and significant stakeholders at Starbucks. The
interests and value of this stakeholder group are high quality products and services, like coffee
and beverages. The organization protects the interest of the customers by providing good quality
of beverage and food products to them.
Suppliers: The company suppliers are self-possessed of wholesale supply companies and coffee
farmers. The primary interest of this stakeholder is incentives, compensation and an increasing
demand from Starbucks. The firm addresses and takes care the interest of these stakeholders
through a wide range of CSR programs and activities.
Investors: The investors have high and innovative interests in financial performance of the firm.
Therefore, the company satisfies this stakeholder group’s interest (Thompson, 2019).
Governments: The organization shall address the interest of government as stakeholder,
focusing and considering the organization’s global existence. In general, the company adheres
with norms, rules and regulations. Thus, the organization keeps motivated and happy to the
workers by protecting their rights, worth, profitability and values (Campbell and Helleloid,
2016).

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(Source: Hipevoy, 2019)
M3 and D2: How stakehodler egagement, contribution may support favroable employment
relationships within the organization
It has been analyzed that stakeholders have direct and unique influence on core business. Thus,
the achievement and growth of the business is dependent values, profitability and interest of the
stakeholders. In today’s modern world, the company that fosters and flourishes a deep level of
interconnection with their stakeholders are more effective and unique in shaping that impact to
their higher benefit. For example, if Starbucks monitors on the needs, demands and needs of the
stakeholder like customers then it will lead higher profitability and employment relationship at
the workplace. It will help in making comfortable and positive the customers towards the
organization. Additionally, if the organization follows proper guidance, rules, norms and policies
prescribed by the government help in making dynamic and unique decisions related to
performance and productivity. To engage with different stakeholders like suppliers, investors,