Performance Management at Starbucks: Strengths and Weaknesses

This report provides an analysis of the performance management approach used by Starbucks. The analysis begins by outlining the key steps in Starbucks' performance management, including setting clear objectives, regular performance measurement, and providing feedback to employees. It then highlights the strengths of the system, such as its role in identifying areas for improvement, determining appropriate compensation, and guiding promotion decisions. The report also identifies weaknesses, such as the lack of a standardized action plan for employee development and the inconsistency in the review process across different locations. Finally, the report offers recommendations for improvement, including developing a standardized action plan, using the performance management approach as a motivation tool, and implementing a uniform evaluation system to enhance clarity and build a strong brand reputation.

Strengths of Starbucks Performance Management Approach
The performance management approach of Starbucks is streamlined and involves several steps based
on which the evaluation is done. Firstly, the objectives are clearly laid out for the employees to know
the criteria based on which their evaluation will be done. Secondly, measurement of the performance
is done on a regular basis that includes the objectives that were achieved and the ones that were
missed. Appropriate amount of feedback to employees is given based on which they can improvise
themselves in the near future. The feedback also includes the intake of information about the needs
of the employees and how they think they can perform better. Thirdly, the appraisal is given based
on the performance assessment. Once the review of performance is done on a monthly or quarterly
basis, a rating is given to the employee along with a brief on the ways they can improvise
themselves.
There are a large number of factors based on which the review of performances is done at Starbucks.
The performance management approach is used for analyzing the causes of poor performance and
the actions that the senior management can take to improvise the customer experiences. With
performance appraisal systems, Starbucks is also able to know about the compensations that should
be ideally given, whether a person is qualified enough to get a promotion and the amount of
additional training that the employees need to be given, to achieve the company standards. The
employees with poor review are terminated and replaced by other applicants.
Weaknesses
The Starbucks performance management approach has several benefits that it offers to the
employees; however, there are certain weaknesses of the system as well. A typical management
approach should also include assistance in the development of an action plan based on which
employees can improve their overall performance. The approach adopted by the company today
includes review and feedback provision. The performance review process is not the same in all
branches of the company, in different countries. A uniform review process can bring more clarity
and stability in the organization as a whole.
Recommendations:
Based on the information attained from the review of the report on the performance management
approach used by Starbucks, few recommendations can be made based on which the company can
improvise its processes. Firstly, a format for the development of an action plan can be done to offer

individual recommendations to employees. Through this the employees can develop more loyalty
towards the company and the HR department can cut down the costs of hiring new employees and
terminating the old ones. Performance management approach can be used as a motivation tool by
asking employees on the ways they think their performance can be improved. Based on that,
additional trainings can be given to the employees through which results can be achieved.
Another recommendation is the application of a uniform evaluation system through which the
company can know about the performance of the employees and build a brand reputation in terms of
hiring as well.