Organizational Analysis
Starbucks continues to expand globally, this result to a large and global growth in their workforce.
In order to manage diversity across the globe, Starbucks created a team of people from different countries that will answer the concerns of the employees, look for solutions and offer a report during the Open Forums of the organization. As a result of the quarterly Open Forums, the company formulated new mission statements in order to improve their performance and answer the concerns of their employees:· Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining and uncompromising principles as we grow. This following six guiding principles will help us measure the appropriateness of our decisions.· Provide a great work environment and treat each other with respect and dignity.· Embrace diversity as an essential component in the way we do business.· Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.
· Develop enthusiastically satisfied customers all of the time.· Contribute positively to our communities and our environment.· Recognize that profitability is essential to our future success.Starbucks, the coffee corporation, is the great paradigm of a product that could have left the path of a low brand. After all, what is the difference of drinking coffee in Starbucks? This has proven by Starbucks and this also the question that other coffee company profited from asking.
The coffee from Starbucks is warm, rich in colors and shapes, and created in a way that the consumers will have a lot to look forward to while waiting. Their coffee is very stimulating in a way that is pleasing to most consumers.Being obliged by the rapid expansion also destined to put in systems to employ, take into service, and teach baristas and store managers. (Student Resources:2005) Starbucks’ is basically looking for avid people who love coffee, diverse workforce which reveals their people and who enjoys what they’re doing and for whom work is an extension of themselves. Some 80 percent of Starbucks employees were white, 85 percent had some education beyond high school, and the average age was 26.
The rivalry in the coffee industry is very competitive from both local to global market. Starbucks have two major competitors in the industry, Seattle’s Best Coffee, San Francisco Coffee, while there are local coffee shops like Mocha Blends in Asia and in other regional/local markets.1. Discovering its best customer (the sophisticate or sophisticate “wannabe” looking to duplicate the Italian cafe experience).2. Optimizing its company strength of producing a coffee experience with what customers value–having their sense of self worth reflected in an affordable luxury.
3. Creating a brand wide enough to allow for brand extensions (jazz, Frappuccino, ice cream, cafes), yet narrow enough to guide actions (highest quality, some snob appeal, a rich experience rather than just the sale of a product).Current Diversity PracticesSince Starbucks is a very big company, managing diversity in the organization is a broad and complex issue. Stakeholders and managers encounter difficult challenges in establishing a multicultural company that truly gives importance to diversity. In order to achieve success, the management of Starbucks need to shift their traditional methods, change the approaches of operation, implement organizational culture, revise policies, make new organizational structures and reinvent their human resources systems (Jamieson ; O’Mara, 1991). This a venti (using their language for the biggest size of frapucinnos) order and indeed may be so hard and complex that Starbucks accepted that they need a new paradigm to be the backbone of their organizational management and the managers as well.
Starbucks manage diversity using some strategically created methods on employee relations objectives (DeLuca ; McDowell, 1992). For the leaders guiding and working in a very culturally diverse company like Starbucks, the altitude of elasticity, communication skills and hands-on management required by the company. The location of the coffee shop, are less of the concern of the management because the employees themselves are well-motivated and continuously struggling for more motivation.The managers and stakeholders of Starbucks are very well experienced that is why they are very capable of dealing with the differences inside the organization. The presence of differences among employees are nothing new to Starbucks, this also complicates the responsibilities of the management. The management of Starbucks gives value to communication in order to be transparent and firm from within all levels of the company.
The coffee company implements strategic cultural change in the firm that is very effective in workforce diversity management. Although, they are a global company, multiculturalism and change in their system in the company culture, the potentials of each people can be developed, challenges in diversity can be distinguished and resolved, because support from the management are given and employees are more motivated to participate. According to the study of Jayne and Dipboye in 2004, the management of workforce diversity should involve the examination of the organizational culture, identification of organizational behavior elements, and determination of these elements’ effect on diversity management and the transformation of these behavioral aspects so as to support workforce diversity.Starbucks is keen in training and educating their employees in order to develop the principles of diversity and this is done according the company objectives. The next step is to enhance and implement the measures in initiating change inside the organization (Basett-Jones, 2005).
Lastly, the process of change and its impact to Starbucks are regularly evaluated. In using these methods, the workforce diversity management in Starbucks though is a very long process, is a very efficient method for them. Moreover, the company’s culture has a great impact to the practices, values and the company’s operation.AnalysisThe most common aspect of workplace diversity is on how the company see themselves, and how their people functions and most importantly how capable are their employees. For example, the management and leadership factors in Starbucks, view gender roles can develop or be a hindrance in a specific job positions (Gifford, 1991). In most cases, the manners to which men and women behave and act socially often serve as the basis of how people see them as managers or leaders.
Communication abilities for example, which is an important factor of an effective leader, are different among men and women. As the communication styles of men are perceived to be the most appropriate for managerial functions, males typically dominate the top management positions.Employing a diverse workforce can lead to certain difficulties, particularly in recruiting and training. As employees differ in culture, gender and lifestyles, organizations typically encounter difficulties in establishing integration among them without causing conflicts. Though Starbucks employs certain strategies on how to manage diversity, these processes are usually time-consuming and can lead to even more workforce problems, resulting to a more inefficient performance of the employees. According to the research findings of Chemers (1997), employees whose gender, age or cultural backgrounds are different from others tend to be absent more frequently.
Moreover, workforce diversity can also lead to higher employee turnover rate; this can be disadvantageous to the company due to wasted hiring costs. Former studies also stated that diversity in the workplace can only work if the employees had been able to work together for a long time. As they have grown more accustomed to each others differences, employees become more cooperative and participative, especially in providing ideas.Starbucks intends to operate globally; workforce diversity is an important factor. In the marketing aspect, success is more attainable if diverse employees will conduct marketing efforts to ethnic minority and foreign communities (Lipiec, 2001). Moreover, using locals to handle some of the activities in the organization can help in developing more appropriate international strategies.
In general, diversity in the workplace can help organizations in adapting to the challenges of global operations (Benibo, 1997). The role of workforce diversity should be stressed not only because of its beneficial effects but also because it is a legal matter. At present, certain legislations are implemented so as to protect people from discrimination and other diversity issues (Jane and Dipboye, 2004). Hence, organizations who are not handling workforce diversity issues effectively may encounter certain legal penalties. Aside from the prevention of legal issues, workforce diversity should also be handled effectively so as to protect the public image of the company. Legal matters are typically public matters; hence, a company involved in illegal discrimination can encounter the problem on reduced talent pool (Cox ; Blake, 1991).
This matter can also affect the morale and loyalty of the current employees of the organization, and may cause them to resign.Effectiveness of Diversity Management PracticesDespite the many issues and problems related to workforce diversity, literatures claim that this is an important element of an effective organization as well as provides several advantages (Benibo, 1997). According to Delaney and Huselid (1996), the recruitment of a highly diverse workforce in terms of culture and age is very useful as it provides the organization a larger pool of skills and talents. This also increases the opportunity of the organization to hire employees that are highly appropriate for specific company needs and requirements. In actual company operations, workforce diversity can also help in generating a multitude of useful ideas for decision-making.
In other words, workforce diversity broadens the company’s perspectives and increases its options for developing decisions. Lipiec (2004) noted that the quality of decisions is significantly improved through workforce diversity.The significant benefits of workforce diversity management should be stressed to senior company management so as to convince them that this aspect is important for their business success and development. There are several other possible benefits that can be gained through the proper management of workforce diversity. These include the improvement of the recruitment processes, augmentation of marketing capabilities, improved morale, reduction of discrimination issues, higher innovations and creativity and less costs acquired through frequent absenteeism and fast turnover. Aside from competitive advantages, managerial competencies can also be improved through diversity management.
The organization becomes more adept in developing ways how to manage workforce diversity and can implement them with less interpersonal conflicts involved (Bassett-Jones, 2005).Naturally, if workplace diversity is effectively managed in the organization, the benefit of diversity will be achieved as well. For instance, decisions developed by the company will have a higher quality; organizations will be able to have a greater talent pool and chances of hiring the employees who are most appropriate for the job; and ideas that will contribute for the company’s progress will also be varied. Effective communications and relations are also developed through diversity management. With this, productivity of the employees will be improved significantly.
Stronger relations between the management and the subordinates will also be promoted, resulting to higher employee loyalty and less turnover.
