Analysis of HRM and Leadership Strategies at Starbucks

This report provides a comprehensive analysis of Human Resource Management (HRM) and leadership strategies within Starbucks. It begins by exploring various HRM models, including the standard causal model and the HR value chain model, and their application in managing the workforce, intellectual capital, and people within the company. The report then critically examines Starbucks' HR functions in relation to strategic human resource initiatives, such as recruitment, selection, and human resource development, offering recommendations for improvement. It also evaluates the role of HRM software in enhancing HR practices. Finally, the report discusses the characteristics of effective leaders, considering the identified issues and providing insights into how Starbucks can optimize its HRM and leadership approaches to achieve its organizational goals. The report is based on the analysis of past papers and solved assignments available on the Desklib platform.

MANAGING HUMAN
CAPITAL AND
LEADERSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Different model of HRM for manage human resource...............................................................1
TASK 2............................................................................................................................................5
Critically discuss the organisation's HR Function in relation to strategic human resource
initiatives.....................................................................................................................................5
TASK 3..........................................................................................................................................11
Critically evaluate the numbers of HRM software...................................................................11
TASK 4..........................................................................................................................................12
Characteristics of effective leaders taking into consideration all the identified issues.............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Human Resource Management (HRM) plays an important role in the working of the
company. HRM aims at effectively accomplishing the goals and objectives of the company. This
is the function of the business organisation that adopts and implements various practices in order
to improve the employees' satisfaction and motivation level to achieve organisational goals. The
present report is based on Starbucks Corporation which is a coffee-house chain. It was founded
in the Seattle, Washington in the year 1971. Starbucks operates in more than 30000 locations
around the world-wide.
The present report will explain about the improvements in the various HR management
so that organisation can compete with others in the marketplace in more effective and efficient
way. The report will analyse about various relevant HRM models in details. Functions of HR
will be discussed critically in the report with relation to the strategic human resource initiatives.
Further some HRM software programs will be evaluated and the most beneficial one for the
organisation will be identified. Report will discuss about the characteristics of effective
leadership as well.
TASK 1
Different model of HRM for manage human resource.
Implying use of HR models to manage workforce is the essential practice which assist
organisation in effective management of workforce, people and intellectual capital. It is very
important for Starbucks to manage their human resource practices at workplace, in order to make
sure that all activities are going as per needs and requirement. In accordance with this human
resource department of Starbucks can use various model that help in conduct all the activities in
appropriate manner. Models of HRM which can enhance HR practices of Starbucks are as
follows:
Standard causal model of HRM
This is the best model that should be adopted by the company in their HR practices
(Standard casual model, 2017). The model present casual chain which starts with business needs
and strategy. This start from new employee requirement, any training requirement, etc. Currently
HR focuses on the training and development as well as effective recruitment and selection that
will help in to improve the overall performance of the organisation. Further it has been
mentioned by (Banfield, Kay and Royles, 2018) that with the help of HR process of approach,

the financial performance will improve in effective manner. Starbucks can use this model to
align all their activities with business strategy. The By implementing the models in Starbucks,
HRM department enable to manage the Human Resource and the function include workforce
management, intellectual capital management, people management.
On the other hand this model enable HR department of Starbucks and make them able to
focus on improving internal performance of the industry such as productivity, employees hard
work, innovation quality and quantity of work. Along with it, it will help in to manage the people
that are working and other intellectual property. According to (Morgeson, Brannick and Levine,
2019) some HRM practices have direct impact on internal employee's performance. For
example:
11 Training and development can directly help coffee house chain in managing
improvement in employee's performance because with the help of this employee can
Illustration 1: the standard casual model of HRM
(Source: Standard casual model, 2017)

learn best and effective style of work. With the help of training wastage and mistakes are
reduced within the company.11 Motivation and appraisal are also directly improve internal performance. By this
employees are motivated and feel appraised and it make them able to give more
contribution in order to achieve goals and objectives of Starbucks.11 The functions of Human Resource will enable Starbucks to have proper recruitment and
selection of the employees
In the present model, strong financial performance tend more investment on HR practices for
better result of work. (Collings, Wood and Szamosi, 2018) stated that if performance of
employee and if they properly manage by the effective approaches and models that will result in
an effective manner that will help in high engagement with company and give their full effort for
achieving it.
On the other hand, With the help of this model, HR strategy of Starbucks are formulated
and directly impact to the internal performance and process of a company to achieve the best
result of work.
The HR value chain model
As per the view of (Boon and et.al., 2018) HR value chain model is best and effective for
use in human resource department of Starbucks to manage people and the intellectual capital. For
achieving the best result in that purpose and manage all HR activities in the proper manner,
Starbucks can use the HR value chain model. This model will implement in the operational
function of HR to ensure the desired outcome. The value chain model help the company in
converting the challenges in the opportunities and managing organisations arise mostly from
people centred problems (HR value chain, 2017).

 HRM activities included training, development, recruitment, selection, compensation and
planning for effective management of Human resource. These activities are used by the
HR manager of Starbucks which denotes efficiency metrics. Hereby, it has been
mentioned by (Offermann and Coats, 2018) that it is important to measure every HRM
practice which is automatically helped to reduce cost and maximize efficiency of
employees. For achieving the best result of, this model will help in aligning processes
with set the goals and direct appropriate way. For example: Starbucks hires candidates
and new employees by adapting various techniques.
This simply means that hire right candidate, providing proper training Starbucks is
achieved hire goals and objective by improving internal performance. For achieving higher level
of employee performance, here is important to invest in the HR program by including various
HR software and give development opportunities to their employees.
Illustration 2: HR value chain model
(Source: HR value chain, 2017)

With the help of those model HR of Starbucks able to manage human resources at
company by improving their work performance and best result of work.
 Workforce planning: In this HR practice, HRM of Starbucks is focused on understanding
and aligning needs of company with regard to employees where focus of firm is on
meeting legislative requirement, production, motivation, results and organisational
objectives. However, in accordance with increasing competition at market place
Starbucks can focus on coaching mentoring of employees during workforce planning.
This will help in improving efficiency and motivation at workplace for attaining business
goals.
 Workforce management: HRM of Starbucks is concentrated with the people that are
working in the company and is responsible to understand that their needs are being
fulfilled. Along with it, they are focusing on the improvement area of the workforce and
provide them effective training so that employees' productivity and performance can be
improved.
TASK 2
Critically discuss the organisation's HR Function in relation to strategic human resource
initiatives
The human resource management of business organisation aims at and strives for
delivering effective services to its customers and satisfy them. Starbucks aims that human
resource department focuses on effectively and efficient play its roles and responsibilities so that
it can ensure about the accomplishment of targeted goals and objectives (Wudhikarn, 2018).
Human resource management of Starbucks plays different functions that mainly deals with
concerns of employee such as it focuses on recruiting the best and talented employees, providing
direction and guidance to employees, providing required training and development programs,
performance management, rewarding manpower of the organisation, etc.
Starbucks aims at improving the HR practices up-to the next level so that it can compete
in the intense competitive markets in better and effective manner. First and foremost, initiative
and function of human resources is focused on people of the organisation, i.e. employees.
Strategic Human resource initiatives focuses on creating and developing organisational culture in
a way that employees get empowered and get effectively engaged in the business operations and
activities. Following is given the brief description of the organisation's Human Resource function

in relation to the strategic human resource initiatives. Further the recommendations are also
provided for improving these functions and initiatives.
Various Functions of Human Resource Management, Workforce Management, People
Management and Intellectual Capital Management in Starbucks Corporations
Recruitment and Selection: This is considered as the most important function and also
most challenging activity or task of the human resource department. In this HR professionals
aims at recruiting and selecting the best potential candidates who can put their best efforts in
organisational operations and achieve the goals (Offermann and Coats, 2018). Human Resource
Department of Starbucks makes use of different approaches of recruitment and selection so that
it can ensure about recruiting the best candidates. Internal and external recruitment approaches
are used by the Starbucks. Internal approaches of recruitment include job promotion, transfer of
employees and employee referrals. Recruitment of employees can also be done through external
sources and it includes campus recruitment, advertisements, E-recruitment, employment
exchange, casual callers, employment agencies and walk-in interviews.
Starbucks corporation can take strategic HR initiatives by improving and modifying the
criteria of selection of candidates for attracting more effective and potential candidates. Strategic
HR initiative also suggest that all the elements of Recruitment process needs to be done in
appropriate manner such as development of person specification and job description, job posting
in various print media and social media websites, sourcing prospective candidates, interview
process, negotiating salary and other benefits and finally making the job offer (Buenechea-
Elberdin, Sáenz and Kianto, 2018).
In order to critically analyse the recruitment and selection process, it can be said that
process may get affected due to the discrimination aspect. The candidates in the process of
recruitment and selection may get discriminated on the basis of their gender, age, race, religion
or culture. For reducing and removing such practices, Starbucks needs to make use of digital
technology for making fair decisions.
Human Resource Development: This function is also the most important function of
Human Resource Department of the organisation as it aims at development in HR management
as a whole (Functions of Human Resource Management, 2019). HRD focuses on providing
employees with various opportunities for improving their skills, knowledge and capabilities.
Starbucks ensures that employees are provided with management training, education programs,

skill development programs so that they can develop their potential and effectively accomplish
the targeted objectives and goals. The Strategic Human Resource initiatives aims that Starbucks
needs to focus on undertaking for sponsoring their employees regarding various trade shows,
seminars and also for corporal responsibilities. Such strategic HR initiatives are implied to
motivate employees so that they tend to put more efforts in the organisational operations and
activities.
Human Resource Development function can be critically analysed as if organisation does
not focus on developing and improving the potential of employees, then they may feel
dissatisfied and demotivated (Wudhikarn, 2018). Employees may not be able to achieve their
goals of tasks or activities because they may fail to put their best efforts in the business
operations and activities. Therefore, in order to reduce negative impacts and bring developments
and improvements in the Human Resource Development function, organisation needs to focus on
improving the employees' motivation and satisfaction level by providing them with required
development activities. Organisation may also focus on creating and maintaining the
organisational culture in a way that it makes employees feel satisfied.
Motivating Workforce: This is considered as the basic function and feature of Human
Resource Department. In every business organisation, HR aims at identifying those factors and
practices which can lead to motivate employees. HR then focuses on implementing practices
which can help in motivating employees. Motivated employees tend to work more and put extra
efforts in the organisational operations and activities (Northouse, 2018). Starbucks corporation
also aims at motivating employees as this is the most significant aspect for accomplishing targets
and objectives of the organisation. It motivates employees by providing them with proper
working conditions, providing appropriate salary and benefits, implementing proper policies of
company and maintaining effective employee relations. Starbucks operates as coffee-house chain
business in which employees deal directly with customers and provides them services. Thus,
when employees of Starbucks feel motivated, they will tend to put extra efforts in providing
customer services which will make customers satisfied and happy. And this will lead to
accomplishment of organisational objectives and also increase the brand image and reputation of
the company.
Initiatives of strategic human resource aims at identifying about those factors and
practices which can lead to motivate employees and then it also focuses on implementing such

practices within the organisation (Boon and et.al., 2018). Company may focus on creating
effective and positive organisational culture, implementing effective development practices,
improving and maintaining working conditions, providing compensation and benefits to
employees and providing job security to employees and this will help in effectively motivating
and satisfying employees.
This human resource function can be criticised as if organisation does not put efforts for
motivating employees then the employees will not perform their roles and responsibilities in
effective manner. Employees may also not perform their activities with full enthusiasm and may
also fail to fulfil their commitments (Banfield, Kay and Royles, 2018). Overall, dissatisfaction of
employees will impact the working of company, increase communication gap, failure to achieve
goals and objectives, incur high cost and affect the brand image and reputation as well. Thus,
organisation needs to focus on building confidence and motivation level of employees in order to
make them perform in systematic and effective manner.
Performance Appraisal: This function of human resource management is considered as
the essential function that provides satisfaction to employees. Human resource department of
organisation focuses on evaluating the performance of employees. Starbucks ensures that human
resource department makes periodic assessment on the performance of employees and output of
the task in relation with the pre-established objectives or criteria of the company (Morgeson,
Brannick and Levine, 2019). Periodic assessment will guide Human resource about if employees
require any training or development programs for improving their skills or knowledge in some
specific areas. There are different methods through which Starbucks aims at measuring and
monitoring the performance level of employees such as Traditional methods and Modern
methods. Traditional method includes grading system, ranking technique, paired comparison,
field review method, confidential report, etc. The modern methods include Management By
Objectives (MBO), Behaviourally anchored rating scales, 360-degree appraisal, cost accounting
method and assessment centres.
The initiatives of strategic human resource is focused on effectively managing its
intellectual capital which refers to the intangible value of the business organisation and it covers
the people or human capital, relational capital and structural capital. Starbucks aims at ensuring
that HR establishes performance standards and also communicates with employees about the set
standards (Collings, Wood and Szamosi, 2018). Then, HR needs to focus on measuring the

actual performance of employees by using and administering suitable methods. HR then focuses
on comparing actual performance of the employees against the set standards (Boon and et.al.,
2018). The performance appraisal function is concerned with rewarding and appraising the
talented and best employees of the organisation. This function is also responsible for identifying
the gaps between the performance standards and actual performance of employees and if
required, providing them with training and development programs.
Performance appraisal function of the human resource management can be criticised as
when talented employees are rewarded and appraised for their performance level, it may
dissatisfy the low-skilled employees who did not get any appraisal or rewards (Northouse, 2018).
Some employees may face low or slow growth in the organisation due to their skills and
capabilities and they tend to give negative feedback to the ones who are getting rewards and
appraisal. Such kind of situation within the organisation may affect its culture and working of the
company and may also lead to affect the operations. Thus, business organisation needs to focus
on effectively measuring the employee's performance and on the basis of this focus on improving
the skills and capabilities of employees who do not match with set standards.
Health and Safety: Business organisation and human resource management needs to
focus on implementing various health and safety measures and maintaining safe workplace for
employees. This function of human resource management makes employees satisfied and they
tend to put their best efforts in the working of organisation. Health, welfare and safety measures
are not just the functions but a mandatory to be maintained by the human resource department of
the organisation (Rosenbach, 2018). Starbucks corporation aims at implementing various legal
and regulatory legislation that are in relation with safety, welfare and health of the employees.
HR also focuses on developing and implementing various frameworks that complies with health
and safety measures in order to satisfy and motivate employees.
The initiatives of strategic human resource states that Starbucks and its human resource
department needs to be aware about the policies and legislations which are related with the
working conditions, working hours, health and safety measures, etc. It also needs to ensure about
compliance with such regulatory legislations and measures (Offermann and Coats, 2018).
This can be critically analysed as if Starbucks fails to maintain proper and effective
welfare, health and safety measures for employees, then employees will not feel satisfied and
motivated and they will also fail to make proper utilisation of resources, the goals will not be

accomplished and absenteeism of employees will also be higher (Wudhikarn, 2018).
Organisation will also be liable for penalty action by the law, if it fails to maintain legal and
regulatory measures in relation to the welfare, health and safety of employees.
Recommendations for improvements
Workforce management, intellectual capital management, people management and
human resource management are the backbone of the organisation that helps in accomplishing
the overall goals and objectives (Buenechea-Elberdin, Sáenz and Kianto, 2018). In order to
compete in effective and better way, HR of Starbucks can focus on choosing and selecting the
candidates on the basis of professional skills such as effective communication skill, problem-
solving skill and decision-making skills. Starbucks also needs to focus on maintaining positive
organisational culture, and applying fair internal recruitment techniques in order to improve the
hiring and recruitment process.
Reardon and et.al. (2019) describes that Starbucks can improve the performance
management and appraisal function by being clear about the expectations from employees as this
will make them being more focused in the business operations and activities. Setting standards
and expectations will bring improvements in the business process and thus, company can
compete with other in more effective manner.
Starbucks can provide employee welfare by providing medical or first aid facilities,
maintaining cleanliness, providing good canteen facilities, restrooms and lunch-rooms. Company
can maintain the safety of employees by focusing on to avoid injuries and accidents of
employees at workplace. Health of employees can be maintained by Starbucks maintaining
cleanliness, waste management and disposal of waste, maintaining healthy workplace
environment, cleaning and washing facilities with fresh water, etc.
Starbucks can improve the function of motivating workforce by providing employees
with various career and skills development opportunities and programs, providing them job
security, maintaining effective relationship with employees and also providing rewards and
recognition to them (Boon and et.al., 2018). This will help company to motivate employees and
also to increase productivity so that they can compete with intensive competitive marketplace in
better and effective way.