Analysis of Starbucks' Organisation Design and HR Management

This report provides a comprehensive analysis of Starbucks' strategic human resource management and organizational design. It begins with an introduction to strategic HRM and organizational design, followed by an analysis of Starbucks' organizational structure, which is identified as a contemporary matrix structure. The report then delves into an analysis of Starbucks' performance appraisal system, highlighting the benefits of a 360-degree appraisal approach. Based on these analyses, the report offers recommendations for improving both the organizational design and performance management systems at Starbucks. Specifically, it suggests leveraging contemporary designs, such as the matrix structure, for enhanced collaboration and communication, and adopting a 360-degree appraisal system to boost self-awareness, work effectiveness, and employee development. The conclusion summarizes the key findings and emphasizes the importance of strategic HRM and effective organizational design for achieving business objectives.

Strategic Human Resources
Management and Organisation
Design

Contents
INTRODUCTION...........................................................................................................................1
Analysis of your organisational design........................................................................................1
Analysis of Performance Appraisal system.................................................................................3
Recommendation.........................................................................................................................5
a) Recommendations on Organisation Design......................................................................5
b) Recommendations on Performance management System.................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic human resource management is considered as an approach for maintaining
individuals which supports firm’s longer term objectives with a whole planned as well as
coherent framework. Moreover, the firm’s should describe its own innovative strategy based
upon its specific goals, culture and context (Armstrong and Taylor, 2020). While organisational
design is considered as the procedures of determining as well as planning several different
functions within entity for assuring smooth performance of overall operations in order to attain
firm’s objectives. The undertaken company for this report is to Starbucks Corporation, it is a
leading American multinational chain of coffee house which operates their business into various
part of the country like Canada, Japan, UK and others. Its headquarters is in Seattle, Washington,
U.S. The topic which are going to be covered in this report are analysis of organisational design
and performance appraisal system.
Analysis of your organisational design
Organisational design is considered as the procedures of determining as well as planning
several different functions within entity for assuring smooth performance of overall operations in
order to attain firm’s objectives. In addition to this, it is also undertaken as whole that
concentrates upon developing as well as forming several frameworks, procedures and roles
within entity that assists them to attain firm’s schemes and goals. Basically, the organisational
design comes under two categories that are traditional and contemporary. Traditional one
involves functional structure, simple and design structure (Baluch and Ridder, 2020). While
contemporary incorporates matrix structures, team structures, boundary less organisation,
learning organisation and others. The Starbucks Corporation utilise the Contemporary design
among these, they are following matrix structure. This is considered to be one that assigns
experts from extraordinary practical departments to paintings on one or greater initiatives. In an
business enterprise there may be exceptional projects happening straight away. Each particular
project is assigned a task supervisor and he has the duty of allocating all of the assets wished to
perform the task. In a matrix structure the ones resources include the extraordinary capabilities of
the company such as operations, accounting, sales, advertising, engineering, and human sources.
Basically the assignment manager has to accumulate professionals from each feature on the way
to paintings on a mission, and whole it efficiently. In this shape there are two managers, the
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venture manager and the department or useful supervisor. As this allows them to easily
collaborate as well as communicate with various departments related to particular activities or
project. In addition to this, various problems can be solved in faster and quick way.
Apart from this, According to (Neilson, Estupinan and Sethis, 2015), there are ten
guiding principles of organisation design that can lead to a successful organisation design.
Respective firm have to undertake all these so that they can able to deal with the changes which
occur within marketplace. Therefore, some of the principles can be undertaken in respect of
Starbucks Corporation are discussed underneath:
 Acceptance: In this principle of organisation design, Starbucks Corporation can able to
take acceptance of that there are performance issues which are doubtlessly affecting the
employer performance. Also accepting the fact that you have failed to become aware of
your competencies and stakeholders needs.
 Simplicity: In this principle of organisation design, Starbucks Corporation can able to
keep it simple, keep away from making corporation layout unnecessarily complex, pick
out and decode sports and processes, construct the building blocks of your employer
layout and placed the blocks together.
 Building blocks: In this principle of organisation design, Starbucks Corporation can able
to formulate building blocks. As once the building blocks are developed, regulate agency
shape. Modifying the structure need to be the closing factor in the manner of OD which
need to be in-line with those blocks sports and techniques (Kaufman, 2020).
 Talent identification: In this principle of organisation design, Starbucks Corporation can
able to identify correctly the top skills to your employer and make certain that the talent
is used positively successfully and where it's miles needed.
 Focus: Focus at the elements which are inside your control mainly the ones which can
probably preserve the organisation lower back. Don't attempt to exchange the matters that
you do no longer have control over.
 The authority responsibility and accountability: In this principle of organisation design,
Each one in the company who holds authority must be given duty and be geared up to
responsible for performance that's under a pre-set requirements.
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 Setting performance standards: In this principle of organisation design the standards
serve as a benchmark for the overall performance and help the business enterprise to find
the troubles which want attention.
 Design it yourself: This describes that it is not important that one company design that
suits corporation like Starbucks may also suit other. It isn't always one size in shape all
you need to have a look at the requirements of your company and then construct the
layout according.
 Concentrate on strengths: OD may be overwhelmingly traumatic however you need to
focus and give attention to your strengths which might be the base for enhancing your
weaknesses.
 Keep it simple and informal: In this principle of organisation design, firm frequently
make it difficult for alternate business enterprise structure or maybe agency chart
however simple things should be saved easy that is a key to success.
Moreover, all these above principles of organisation design help Starbucks Corporation to
deal with the changes which occur within marketplace.
Analysis of Performance Appraisal system
Performance appraisal is considered as a continuous review of staff’s job performance as
well as whole contribution to firm. It is also known as annual review, employee appraisal and
others. Moreover, the performance appraisal system facilitates a means of systematized
evaluation of staff across several dimension of performance. Moreover, this also aids entity to
justify its employment decisions (Knezović, Bušatlić, and Riđić, 2020). The system can include
above than annual performance review. Also, robust appraisal system might involve an annual
review and spot rewards, commendations and disciplinary procedures. Along with this,
Performance management system is considered as the systematic approach for measuring the
staff performance. Moreover, this is a procedure by which entity aligns its targets, objectives and
mission with available resources such as material, manpower and others system as well as
determined the priorities. Additionally the main performance appraisal system is to sustain as
well as recognising stronger performance as well as encourage staff for improving weak areas. In
addition to this, performance management system assists human resource manager of Starbucks
Corporation to develop clear expectations of performance by which staff may simply know that
can be expected from them Also, this allow their managers for reinforcing upon its workers, the
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person responsibility to meet its objectives as well as determine its own performance. There are
various types of performance management and appraisal system which can be effective for
Starbuck Corporation. Some of them are discussed below:
 360 degree Appraisal: 360 degree appraisal is considered as holistic review procedures
of employee. Moreover, this is includes accumulation of anonymous views as well as
perception of managers, direct reports and others that is utilized to provide an staff well
rounded and constructive feedback. This performance management system enable peer,
fundamental manager, cross functional manager, direct report and another external and
internal stakeholders for sharing feedback upon team behaviours and staff performance
(Kretschmer and Khashabi, 2020). Moreover, this kind assists workers for learning their
strengths as well as weaknesses.
 Employee Self Assessment: This is considered as one of the essential and effective
performance management system into procedures of seeking at performance as well as
establishing both career and job objectives. Its key intent is to aids staff as well as
managers for developing performance evaluations. Moreover, its also aids employees for
reflecting its own performance over previous past years as well as to document their
attainment as well as its affects upon department.
 General appraisal: This is considered as the continuous communication among staff and
administrative throughout whole year. At year end, both would hold a meeting as well as
identify if the pre-determined objectives were accomplished. Thereafter, the manager
facilitates feedback as well as establishes new objectives. Moreover, the administrative
are also suggested developing plans and training session for workers to assists them for
improving its competencies (Types of Performance Management Systems, 2020).
Therefore, from the above this has been determined that 360 DEGREE appraisal
performance system is effective for Starbucks Corporation as this enhances self awareness,
improved work effectiveness, encourage personal development, improve work relations and
others. Also, all these assist entity as well as their staff to perform in effective manner. It also
outcomes in gaining higher productivity as well as profitability of firm in effective and efficient
way (Kundu, Mor and Gahlawat, 2020).
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Recommendation
From the above report, this has been determined that into order to improve their performance
and productivity some of the recommendations are recommended to them.
a) Recommendations on Organisation Design
Organisational design is considered as the procedures of determining as well as planning
several different functions within entity for assuring smooth performance of overall
operations in order to attain firm’s objectives. So, it is essential for Starbucks Corporation
to effectively concentrate upon organisation design as this aid them to perform their
functions appropriately. So, this is recommended to Starbucks Corporation to utilise
contemporary design because they are applying matrix structure into their workplace.
This allows them to easily collaborate as well as communicate with various departments
related to particular activities or project. In addition to this, various problems can be
solved in faster and quick way.
b) Recommendations on Performance management System.
Performance management system is considered as the systematic approach for measuring
the staff performance. Moreover, this is a procedure by which entity aligns its targets,
objectives and mission with available resources such as material, manpower and others
system as well as determined the priorities (Singh, Klarner and Hess, 2020). Therefore, it
is recommended to Starbucks Corporation is to use effective performance management
systems as this permits their manager to determine as well as compare staff in such a way
so that they can able to attain whole organisational objectives. So, form the above
discussion of various types of performance management system, the respective entity
should adopt 360 DEGREE appraisal performance system is effective for Starbucks
Corporation as this enhances self awareness, improved work effectiveness, encourage
personal development, improve work relations and others. Also, all these assist entity as
well as their staff to perform in effective manner. It also outcomes in gaining higher
productivity as well as profitability of firm in effective and efficient way.
CONCLUSION
As per the above report, it has been concluded that Strategic human resource management
and organisation design plays crucial role as this assists firms to describe its own innovative
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strategy based upon its specific goals, culture and context. Moreover, organisation design aids
entity o concentrates upon developing as well as forming several frameworks, procedures and
roles within entity that assists them to attain firm’s schemes and goals. Along with this,
performance management system assists human resource manager of corporation to develop
clear expectations of performance by which staff may simply know that can be expected from
them Also, this allow their managers for reinforcing upon its workers, the person responsibility
to meet its objectives as well as determine its own performance effectively and efficiently.
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REFERENCES
Books and Journal
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Baluch, A.M. and Ridder, H.G., 2020. Mapping the Research Landscape of Strategic Human
Resource Management in Nonprofit Organizations: A Systematic Review and Avenues
for Future Research. Nonprofit and Voluntary Sector Quarterly, p.0899764020939653.
Kaufman, B.E., 2020. The real problem: The deadly combination of psychologisation, scientism,
and normative promotionalism takes strategic human resource management down a 30‐
year dead end. Human Resource Management Journal, 30(1), pp.49-72.
Knezović, E., Bušatlić, S. and Riđić, O., 2020. Strategic human resource management in small
and medium enterprises. International Journal of Human Resources Development and
Management, 20(2), pp.114-139.
Kretschmer, T. and Khashabi, P., 2020. Digital transformation and organization design: An
integrated approach. California Management Review, 62(4), pp.86-104.
Kundu, S.C., Mor, A. and Gahlawat, N., 2020. Strategic human resource management and
employees' intention to leave: testing the moderated mediation. International Journal of
Productivity and Performance Management.
Singh, A., Klarner, P. and Hess, T., 2020. How do chief digital officers pursue digital
transformation activities? The role of organization design parameters. Long Range
Planning, 53(3), p.101890.
Online
Types of Performance Management Systems. 2020. [Online]. Available Through:<
https://icehrm.com/blog/types-of-performance-management-systems/.>
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