Strategic HRM Case Study: Starbucks Analysis of Policies and Practices

This case study examines Starbucks' strategic human resource management (SHRM), focusing on its functional aspects and adaptation to different contexts. The analysis identifies and reviews key SHRM functions applicable to Starbucks' employees, including performance evaluation, participative management, team formation, training, and delegation of work. Furthermore, it explores strategic HR policies tailored for declining markets, innovative capacity, and international environments, covering hiring practices, working conditions, diversity, wage and hour rules, product quality, and workplace health and safety. The study concludes that effective SHRM is crucial for Starbucks' long-term sustainability and success, particularly in navigating market changes and maintaining a competitive edge. The case study underscores the importance of aligning HR strategies with broader organizational goals to enhance employee performance and overall business outcomes.

Case Study Starbucks

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 2............................................................................................................................................3
1. 1dentify and review functional aspects of strategic human resource management that is
applicable to the employees of Starbucks...................................................................................3
2. Determine the strategic human resource policies that Starbucks can adapt to fit into
declining markets, innovative capacity and international contexts.............................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic Management can be explained as the process where planning, monitoring,
analysing and assessment is needed to be done for the purpose of accomplishing the goals of an
organisation. It is necessary to understand that strategic management should be adopted in each
and every organisation because it helps to provide relevant idea to organisation that how they can
attain the objectives which are pre-determined. The chosen organisation for this respective
project is Starbucks which are started in the year 1971. It is one of the fastest growing
organisation which performs business activity in different part of the world. In respect to the file
different questions will be solved which are related with identifying and reviewing functional
aspects of strategic human resources management also several HR policies will be explained in
it.
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 can be explained as a approach to the practice of
human resource which directly address the problems which organisation faces due to which long
term goals can be accomplished easily within the specific time period. The main duty which is
strategic human resource management have is to enhance the performance of business
organisation by utilising each and every resources which is available within the company. In
context of Starbucks, it is necessary to understand that strategic human resource management
plays the crucial role for improving the performance of every single employees (Becker and
Huselid, 2006). There are some of the functions of strategic human resource management which
has been discussed below:
Evaluating the Performance: In any of the organisation it is necessary to understand
that performance of every employees should be evaluated so that if there is any requirement to
improve the performance then it can be done easily. In context of Starbucks, it is very crucial for
their organisation to evaluate the performance of every single employees because it will help
company to provide additional option to improve the performance by providing the suitable
training to everyone.

Participative Management: Every organisation wants that employees must show their
participation towards the company as it will help to find the accurate way that how company can
introduce the changes in bes possible manner (Huselid, 1995). While talking about Starbucks,
their top-level management must form the structure where they allows there employees to take
part within the process of decision making as it will directly help them to motivate through much
better results can be obtained in future period of time.
Formation of Different Small Teams: In any of the business organisation, different
teams are needed to be formed so that there will be higher possibilities that every productivity
can be improved. While talking about Starbucks, it is necessary for HR team to understand that
they must form the number of teams where different employee will work together. It will give
the additional opportunity to those employees weak employees to improve their performance
who are unable to perform better while working alone.
Providing Training: Every organisation requires different team who can help and
support to perform better. It is necessary to understand that company must give suitable training
to every new candidate who joins the organisation. In context of Starbucks, it is necessary for
them to understand that proper training is required to be given to each and every employees so
that they will have the opportunity to work as per the requirement of organisation and even it
will directly help company to accomplish the goals within the given time period.
Delegation of Work: It is important that work must be delegated to every person
working within the organisation (Huselid, Jackson and Schuler, 1997). The main thing which is
necessary to be focused is that while delegating the work, skills and talents must be identified so
that their will be higher possibilities to attain the goals. In context of Starbucks, they are needed
to understood that employees are needed to be given responsibilities as it will help them to
understand the situation through they can easily adjust themselves to perform better in any of the
situation.
This are some of the functional aspects of strategic human resource management which
will directly help Starbucks to sustain with the market for longer period of time. Whenever HR
department of a company doesn't focuses on all of this aspects then there are very less changes
company will attain the desire goals within the specific time period.

2. Determine the strategic human resource policies that Starbucks can adapt to fit into declining
markets, innovative capacity and international contexts.
There are number of situation where market changes and which has a direct impact on the
performance of a company as they are unable to adopt the changes which can help them to
accomplish the goals. Company can only attain their goals on time if they are considering the
policies which can direct enhance the performance of a company. In context of Starbucks, they
must form different policies which can help them in the situation of declining market. Below,
some of the policies are explained.
Hiring Policies: It is said that company like Starbucks believes that they must try to hire
the employees who are capable of working within the environment of Starbucks (Welbourne and
Andrews, 1996). This will give idea to company that how they can give equal opportunities to
every single employees. This will directly improve the performance of employees where they
can easily tackle the situation where demand in market is declining.
Working Environment: There are number of situation where working environment of
organisation are not suitable due to which it becomes difficult to adopt the changes as per the
requirement of a company. It is necessary while working within the Starbucks that no one is
allowed to do bullying, harassment or discriminate any of the employees. If working
environment will be suitable then it can help company to adopt any of the changes through which
goals can also be achieved.
Diversity: It is necessary for every business organisation to understand that they must try
to think that how they can bring the diversity in their environment because that will help the
company to perform easily (Mello, 2014). Even there will be number of employees who will
have different talent which will allow themselves to tackle with problem by using skills and
knowledge.
Wages and Hour Rules: In present situation it is crucial for business organisation to
understand that wage and hour rules plays the important role because employees will be aware
that how they are needed to work. In context of Starbucks, they work as per the laws and
regulation formed by the legislations which allows employees to work freely in the company.
This will have a direct impact on company as whenever they will like to commence business
activity at a greater platform then they can attract the suitable candidate for company which will
allow company to accomplish their goals.

Maintaining the quality of product: The strategic management simply says that
company can only maintain their working environment if they can be able to provide the
services to customers at a reasonable price where market is not performing so well (Armstrong,
2016). The main thing which is needed to be understood for Starbucks that they should be able to
maintain the quality of services which they provide to their customers which will help them to
ensure that customers will not change their preferences and it will directly help company to
maintain their reputation within the international market.
Workplace Health, Safety and Security: Company like Starbucks are very clear about
their concept that they will not compromise with the health and safety level of employees as they
are the one who can help them to accomplish the goal within the given time period (Hendry,
2000). Here, company maintain the security system where customers and employees can take
emergency if any of the accident occurs within the company.
These are some of the policies which are being followed within the Starbucks which is
helping them to sustain within the market for longer period of time. It will help company to uplift
their perform in the market even in the situation where market is declining.

CONCLUSION
From the above file, it can be concluded that Strategic management is one of the most
important things in context of business organisation as it will guide them that how company is
required to do planning for attaining the goals of a company. It is necessary for strategic human
resource to take appropriate initiatives so that they can be able to adopt the changes whenever it
is necessary for the business organisation.

REFERENCES
Books & Journals
Armstrong, M. (2016) Armstrong Handbook of Strategic Human Resource Management,
London, Kegan Page
Becker, B. E., & Huselid, M. A. (2006). Strategic human resources management: Where do we
go from here? Journal of Management,32(6): 898–925 
Hendry, C. (2000), Human Resource Management, Nashville, South Western College.
Huselid, M. A. (1995). The impact of human resource management practices on turnover,
productivity, and corporate financial performance. Academy of Management
Journal,38, 635–672
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
Mello, J. (2014) Strategic Human Resource Management, Nashville, South Western College
Welbourne, T., & Andrews, A. (1996). Predicting performance of initial public offering firms:
Should HRM be in the equation? Academy of Management Journal, 39, 910–911.