BSc Business Management: Strategic HRM Case Study on Starbucks

This case study analyzes Starbucks' strategic human resource management (SHRM), focusing on functional aspects and strategic policies. It begins by defining SHRM and its importance in attracting, rewarding, and developing employees for organizational benefit. The case study identifies key functional aspects relevant to Starbucks, including performance evaluation, participative management, team formation, training, and delegation of work. It then explores how Starbucks can adapt its SHRM policies to address declining markets, foster innovation, and navigate international contexts. Specific policies such as hiring practices, working environment considerations, diversity initiatives, and wage/hour rules are examined. Furthermore, the case study emphasizes the importance of maintaining product quality, workplace health, safety, and security to achieve long-term sustainability and profitability. The report concludes by highlighting the crucial role of strategic management in organizational growth and success.

Case Study Starbucks

Contents
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
1. 1dentify and review functional aspects of strategic human resource management that is
applicable to the employees of Starbucks....................................................................................1
2. Determine the strategic human resource policies that Starbucks can adapt to fit into
declining markets, innovative capacity and international contexts.............................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Strategic human resource management (SHRM) is sated as practice of attracting,
rewarding retaining and developing sub-ordinates for the benefits of both employees and
employers as a whole. Organization by conducting strategic human resource management
effectively best outcomes can be attained as compare to rivalry. In this report Starbucks is
undertaken. Which is a leading American coffee company and came into existence in the year
1971. This assignment covers functional aspects of strategic human resource management which
is relevant to the staff members of Starbucks. Additionally, strategic human resource
management policies that Starbucks can execute into declining market , international context and
innovative capacity is determined.
TASK 2
1. 1dentify and review functional aspects of strategic human resource management that is
applicable to the employees of Starbucks.
Strategic human resource management refers to the connection between company's
human resources and their objectives, goals and strategies. The main motive behind regulating
effective strategic human resource management is to bring innovation, flexibility and to gain
higher competitive advantage (Armstrong, 2016). Other, the main duty which is performed by
the management of human resource is to enhance the performance of business organisation by
properly use all the resources of firm. In regards to Starbucks, it is required to the management
of this company is to understand that appropriate management of human resource is essential in
order to achieve the desired outcomes of the business and to improve the overall performance. In
this aspect, various functions are undertaking by the strategic human resource management
which are discussing below:
Evaluating the Performance: It is essential for each and every organisation to evaluate
the performance of employees to determine that they are going on a right track or not. It is same
applied to the management of Starbucks that they must give their focus on assessing the efforts
of each employees in achieving the organisational goals so that required changes can be
implemented in their operations and rewards can be given to the well deserved employees in
order to get their higher motivation and contribution in organisation (Strategic HRM, 2019).

Participative Management: In order to gain higher support of employees in attaining
the organisational goals and objectives it is necessary for the management of Starbucks to
involve their employees in decision making process. This will allow them to share their ideas,
thoughts with top management and in this management requires to welcome their ideas in taking
effective decisions so that their motivation can be retained in giving best outcomes for achieving
the desired goals in limited period of time.
Formation of Different Small Teams: It is essential for the management of Starbucks to
make small teams in terms to maintain effectiveness of accomplishment of each and every task.
As by dividing all the work among different teams workload from a specific team can be reduced
and also it enables managers to divide their work as per the skills and capabilities of each
personal which results huge profitability and sustainability of the organisation within the
marketplace (Hendry, 2000).
Providing Training: In regards to attain desired outcomes, an adequate training is
required to give to the employees as because by giving proper training skills and knowledge of
the employees towards their work can be increased. Consideration of this concept is also
essential for Starbucks which defines that it is require for them to provide effective training to
their employees. As this will enables them to take the advantage of enhanced skills and
capabilities of employees in effectively accomplishing all the given task which results higher
profitability and sustainability of the organisation.
Delegation of Work: This is considered as most important function of management
within the organisation as it has direct impact on the motivation of employees. As it is related to
transfer the roles and responsibilities among the employees. In this case it is essential for the
manager of Starbucks to delegate their roles and responsibilities among the employees in a most
effective manner after ascertaining their abilities and skills. This will help them in accomplishing
all the assigned work in a significant way with the higher support of employees (Huselid,
Jackson and Schuler, 1997).
These are some of the functions of the strategic human resource management which are
undertaking by them in order to carry out all the activities or operations effectively and sustain
their position within the marketplace for a longer period of time. In case if the management of
Starbucks will not give their focus on effectively underlying all these functions then they will not
be able to attain their desired outcomes within the limited period of time.

2. Determine the strategic human resource policies that Starbucks can adapt to fit into declining
markets, innovative capacity and international contexts.
Within the business organisation, various situations are occurring where marketers needs
to adopt changes as it has direct impact on the performance of business organisation. In this
regard, formulation of effective policies is essential for the organisation so as to adjust
themselves as per the market requirements and enhancement of innovation (Marler and Fisher,
2013). This is also refereed to management of Starbucks that they needs to make appropriate
human resource policies in regards to employ talented employees and to enhance the motivation
of existing employees so that they can give their best efforts in achieving the organisational goals
and objectives. All the policies which are formulating by the management must in the favour of
employees so that their motivation for significantly using all the resources can be maintained.
Here are defining some of policies which can adopt by Starbucks:
Hiring Policies: This refers to that policies which are making by management of a firm
to recruit best candidates within the organisation. In respect of Starbucks, management of this
organisation must give their emphasis on employing that candidates at their workplace who are
capable to perform their job role in their working environment of Starbucks. Herein, the policies
are also related to the provide equal opportunities to employees in order to maintain their
satisfaction and motivation level higher. By making appropriate policies for employees managers
also can enhance the performance of employees by giving them the knowledge about that where
they need to giving their higher efforts in the situation of market declining (Noe and et. al.
(2017).
Working Environment: This is broad terms which refers to the surroundings where an
employees is working. In terms to attain all the set targets on time and with great efficiency of
employees then it is essential to have positive environment within the organisation. But it might
possible sometimes that working environment of the firms is not positive due to which a range of
difficulties are coming in the way of adopting changes which are required to a company. In order
to save themselves from this negative effect, it is essential for management of Starbucks that they
set some strict restrictions for saving the employees from harassment, bullying and discriminate.
With the help of this, Starbucks will be able to attain higher support and contribution of
employees in achieving the organisational goals and objectives.

Diversity: Diversity within the organisation promotes respect, teamwork, acceptance
without considering the differences on the basis of employees race, religion, gender etc. It is also
necessary for management of Starbucks to maintain proper diversity in their organisation as this
will help them in increasing productivity, creativity, profitability and also enhance opportunities
for workers. Along with this, this will also manager to motivate and encourage their employees
to adopt the changes significantly so as to enhance the organisational success as well as their
personal development (Shaw, Park and Kim, 2013).
Wages and Hour Rules: In the present corporate world, rules related to wage and hours
plays a crucial role in sustaining employees for a longer period of time within the organisation. It
is require to each and every organisation even to the management of Starbucks to manage the
working hours of employees and their wages amount as it is considered as a biggest motivation
of retaining employees for longer period of time.
Maintaining the quality of product: The strategic management states that an
organisation need to put efforts in maintaining healthy working environment so that the
employees can give their maximum efforts in producing products in an optimum quality. This
will make easy for company to attract targeted customers and influence them to buy their wide
range of coffee products. As nowadays, the customers prefer quality over price due to which
focusing on improving quality can be the profitable decision for an organisation.
Workplace Health, Safety and Security: An organisation such as Starbucks are known
brand at global level who always thinks for the betterment of their workforce by providing them
wide range of secure services including health insurance, providing safety equipment,
implementing safety acts etc. This will increase the retention rate of employees which is a

positive sign for a company for future. Implementing safety equipment at workplace to prevent
accidents, applying health and safety act etc. increases the working behaviour and performance
level of employees (Shields and et. al., 2015).
With the help of these actions, Starbucks can easily achieve long term sustainability which is
one of their main objective. Maintaining quality of products and providing benefits to employees
are two such important factors that can make easy for company to achieve high profitability
within limited period of time.
CONCLUSION
It has been concluded from the above report that strategic management plays a significant
role in the growth and success of business organisation as it assists them to formulate an
effective planning using taking support from management. The managers is held liable to
implement various actions and policies which can help in retaining quality and employees of an
organisation.

REFERENCES
Books and Journals
Armstrong, M. (2016) Armstrong Handbook of Strategic Human Resource Management,
London, Kegan Page
Hendry, C. (2000), Human Resource Management, Nashville, South Western College.
Huselid, M. A., Jackson, S. E., & Schuler, R. S. (1997). Technical and strategic human resource
management effectiveness as determinants of firm performance. Academy of
Management Journal, 40(1), 171–188
Marler, J. H., & Fisher, S. L. (2013). An evidence-based review of e-HRM and strategic human
resource management. Human Resource Management Review, 23(1), 18-36.
Noe, R. A., & et. al. (2017). Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Shaw, J. D., Park, T. Y., & Kim, E. (2013). A resource‐based perspective on human capital
losses, HRM investments, and organizational performance. Strategic management
journal, 34(5), 572-589.
Shields, J. & et. al., (2015). Managing employee performance & reward: Concepts, practices,
strategies. Cambridge University Press.
Online:
Strategic HRM. 2019. [Online]. Available through:
<https://www.hrzone.com/hr-glossary/what-is-strategic-hrm-0>