BSc Business Management - Strategic HRM Case Study: Starbucks Analysis

This case study examines Starbucks' strategic human resource management (SHRM) practices. It explores how Starbucks implements SHRM to enhance its business growth, productivity, and competitive advantage. The assignment delves into various functional aspects of SHRM, including employee training and development, compensation, and the creation of a positive work culture. It analyzes the roles and responsibilities within Starbucks' SHRM framework, such as introducing best practices and modern tools, and how these contribute to employee job satisfaction and productivity. The study also highlights SHRM policies, such as transforming HR staff and retaining talented employees, to address declining market conditions. The case study concludes by emphasizing the critical role of SHRM in Starbucks' overall performance and its ability to adapt to market challenges.

Case Study
Strategic Human
Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
ESSAY.............................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
.........................................................................................................................................................1

INTRODUCTION
Strategic human resource management is refers to as the process which an HR adopts in
order to increase companies growth and productivity level in the market place. The purpose
behind the implementation of these strategic human resource management within the business is
to advance flexibility, innovation and competitive advantage along with improving the business
overall performance. This concept is mainly concerned with the human resource as well as the
strategies of the organisation that the firm implements for the effective and efficient results. In
order to complete this assignment the chosen association is Starbucks which is world wide
known for their coffee brands. The company was formed in the year 1971 at Seattle. This report
has been prepared in regard to cover different topics such as different functional aspects of the
strategic human resource management which is implementable to employees of the Starbucks.
Apart from this, the document also focuses on the study of diverse Strategic human resource
management policies which the Starbucks will established within their business in order to fit in
declining markets(Daley, 2012).
ESSAY
Human resource management within the organisation is termed to be as the vital
component as these are the whole and sole for the organisation which focuses on the overall
management of the business starting from its functioning , staff, and overall activities which are
to be performed within the business so that the efficiency of a business to perform the task can be
increased. HRM for the business is essential as these enables the firms to carry out their task in a
smooth manners so that they can easily compete with the other competitive firm by gaining a
competitive advantage. By the successful establishment of these human resource management
within the Starbucks, the company can gain certain range of advantage such as increment in their
overall productivity , profitability, easy adoption of different training and development
programmes along with the frequently changing environment, consistency of the employees
within the Starbucks so a long lasting period of time so that the ultimate goal of the firm can be
attain within a tenure.
Strategic human resource management is the core for the business association as it
helps the association in attaining a position which differentiate them from the competitors
available within the market place(Kramar, 2014). This SHRM is to ensure that human resource

is completely integrated into the strategic planning. It is very necessary to implement SHRM in
the Starbucks as this will support the business in attaining competitive advantage over other rival
firms, in retaining the employees within the business for a longer period of time so that business
can easily perform their task without any hindrance in their working procedure. Strategic human
resource management has to undergo infinite number of challenges which are due to quality,
team working, structure of the company, performance level and many other. The end purpose of
these strategic human resource management is to advance flexibility, innovation, competitive
advantage and innovation. This concept of strategic human resource management is a proactive
concept within the business as this looks up to the ways for the HR manager to adopt so that
business can easily maintain a level of growth and enhancement. SHRM is vital for the
association like Starbucks as this will enable the firm in their maximisation of the job satisfaction
level either directly or indirectly, rendering the business with effective work culture, enhancing
overall productivity and profitability margin, providing better level of satisfaction to the
customers, proactive conceptualization to manage the co-workers etc(Kaufman, 2012). Some of
these points have been talked below:
Raising job satisfaction level this can be done through the establishment of strategic
human resource management within the business of Starbucks. As this will help the firm in
developing, rewarding the employees for their performance which will be beneficial to both
employers and employees. By this the working capacity of the employees will be boost along
with rendering them full job satisfaction.
Effective work culture is achievable in Starbucks through the successful implementation
of all these SHRM. As through the establishment of these strategic human resource management
the worker within the business will try to perform the task in an effective manner without raising
any diplomatic situation an by causing conflicts so that they can easily cope up with the changing
needs and demands of the customers. Effective working culture will enable the business of
Starbucks in surviving through competitive in this cut throat competitive era.
Productivity ratio this can be raised within the Starbucks only through the effective
implementation of all the strategic human resource management as this will assist the business
in performing the task in such a manner so that the cost of activity is reduced and overall
performance level of the workforce is increased which further proved as beneficial as it could be

for the business and contribute towards the increment in business productivity ration(Mello,
2014).
Appropriate resource management this can be achieved by the business of Starbucks
only if they implement strategic human resource management within their business as through
effective implementation of these SHRM the business can easily provide their staff with
effective training and development programmes which will helps them in development of their
skills and knowledge how how to manage resources so that business can attain a position of
growth and development within the market place.
Thus, strategic human resource management within the business will lead the business of
Starbucks to the higher position in the market place as compare to their competitors prevailing in
the market.
Strategic human resource management within the association comprises of diverse range
of role and responsibilities which helps them in achieving the targeted goals of the firm within
the given time frame. Some roles which the business of Starbucks have considered within their
business are introducing best practices, improving human resource effectiveness, introducing
modern tools and techniques, providing compensation and benefits, conducting training and
development sessions for sub-ordinates, maintain a strong relationship with all levels etc. some
of these roles have been discussed below:
Introducing best practices this role of SHRM is considered to be the best within the
Starbucks as through these SHRM the business can easily come up with strategic decision which
are beneficial to them in various ways so that manager of the Starbucks can easily formulate
their decision and come up with better results. Strategic human resource management will also
provides the businessperson with the best practices to carry forward their business in the market
place(Jiang and et. al., 2012).
Introducing modern tools and techniques is the most crucial function and role which is
done with the help of analysis and research . Here in the manager of the Starbucks search for the
new ways, tools and equipment to perform the task so that they can easily gain a competitive
advantage over their rival firms and can sustain their business in the market place for a longer
period of time. Along this with they can easily cope up with the changing needs and demands of
the customers can satisfy their needs to the fullest.

Providing compensation and benefits this is the most curial role which is to be
performed within the business of Starbucks as her in this role the manger of the business will
keep an eye on their employees performance on a continuous basis so that they can easily
analysis which of the employees within the business is performing with their best efforts and
whom should be the compensation amount to be given (Dolzhenko, 2018). This will keep the
morale of the employees boost and indirectly leads to the increase productivity and profitability
of the Starbucks.
Building healthy relations between employer and employees this function is essential
to be performed within the business of Starbucks as through this role of SHRM the business can
easily focus on developing healthy relationship with their employees and can also retain
employees within the business for a longer period of time. This will also lead the business with
the smooth working procedure without any conflicts and issues.
Balance score card this will be used within the business of Starbucks in regard to
measure the employees performance As through the measurement of the employees performance
within the business the firm like Starbucks can easily identify where they are lacking and which
training and development practices should be adopted so that employees can be trained and their
performance within the business can be enhanced in a effective way. Measuring performance and
determining the areas of weaknesses will enable the business in their effective decision making
process(Lopa, 2019).
Thus, all these above mentioned are the functions of the strategic human resource
management which will assist the business Starbucks in their smooth business performance and
operations so that goals and vision which have been targeted can be achieved.
In current business scenario, every business has to perform so well so that they can
easily capture and fit in this declining market condition. In order to do so the associations are
required to consider on the certain strategic human resource management policies which are as
mentioned beneath:
Transforming HR staff: this is the most suitable strategic human resource policies as in
this the business of Starbucks will look after their HR staff who are responsible for the hiring of
the employees within the business. In this Starbucks will focus on the hiring of skilled and HR
staff who have the capability to influenced the people to work so that declining market position
of the Starbucks can be controlled in a effective manner(Mutiarin, Moner and Nurmandi, 2019).

Retaining talented employees: This will also help the business of the Starbucks to
overcome their issue of declining market situation as talented employers within the business may
lead the business to a higher level as they know how to work and what will be the best suitable
practices as per the situation so that this issue can be resolve and business can easily sustain their
position in the market place.
Training and development: Proper training and development to the employees will help
the employees in performing their job in the best suitable manner as proper training will render
one's with enormous power and capability to think and perform the job in accurate manner so
that the desired level of result for the business of Starbucks can be gathered and a position which
the Starbucks is holding can be maintained for a longer period of time can be sustained.
So all these strategic human resource management policies aids the business of Starbucks
with some benefits and advantages by increasing their overall business profitability and
productivity , by rendering employees with perks, bonus, benefits that will leads the overall
enhancement of business along with its employers and employees(Röhl, 2019).
CONCLUSION
From the above mentioned reports it can be concluded that strategic human resource
within the organisation like Starbucks plays an essential role as has developed the business
overall performance and strategy formulation power. Along with this various practices and
functions like balance scorecard, improving satisfaction level has been focused which helps the
management and performance to be enhanced. Implementing various human resource practices
has also enabled the business in their smooth operation so that they can easily beat with their
competitors and can adopt diverse range of policies which helps in fit into declining markete,
innovative capacity.

REFERENCES
Books and Journals
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management.
pp.120-125.
Kramar, R., 2014. Beyond strategic human resource management: is sustainable human resource
management the next approach?. The International Journal of Human Resource
Management. 25(8). pp.1069-1089.
Mello, J. A., 2014. Strategic human resource management. Nelson Education.
Kaufman, B. E., 2012. Strategic human resource management research in the United States: A
failing grade after 30 years?. Academy of Management Perspectives. 26(2). pp.12-36.
Jiang, K. and et. al., 2012. Clarifying the construct of human resource systems: Relating human
resource management to employee performance. Human Resource Management
Review. 22(2). pp.73-85.
Lopa, S. R. I., 2019. Strategic Recruitment and Selection procedure followed and applied by
grow n excel Human Resources & Management Consultants.
Mutiarin, D., Moner, Y. P. and Nurmandi, A., 2019. The Adoption of Information and
Communication Technologies in Human Resource Management in the era of Public
Governance.
Röhl, M. T., 2019. Essays on the integration and implementation of a demographically oriented
human resource management (Doctoral dissertation, Hannover: Institutionelles
Repositorium der Leibniz Universität Hannover).
Dolzhenko, R. A., 2018. Trends and future of professions in the field of personnel management
in Russia. Herald of Omsk University. Series “Economics. (3). pp.121-130.
Hermans, M., 2018. Three Essays on the Implementation of High Performance Work Practices.
Iy, A., Abdelrahman, S.E. and Majid, A. H. A., 2018. Closing Strategic Human Resource
Management Research Lacunas with Mediating Role of Employee Creativity. Academy
of Strategic Management Journal.

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