For this assignment we were required to review the case study titled “Starbucks’ Structure” found in Chapter 3 of our The five functions of effective management text. We are required to write a paper that answers the four case questions of 1. Complete a job description and job specification for a Starbucks employee. 2. What form of departmentalization should Starbucks use? Should the form be changed in stores offering food products and lunch? Why or why not? 3. When the company began to experience financial problems, should the leadership try to centralize power and decision-making or decentralize the operation? 4. What form of organizational configuration best fits Starbucks? Before you can address the case study questions you need to get a little background on the company. What do you think of when someone says the word “coffee”.
For me, the first image that comes to mind is the twin-tailed siren. If you don’t know what I am referring to it is the logo for Starbucks Coffee. Starbucks started operation in Seattle’s Pike Place Markets, Washington in 1971. They were originally known as Starbucks Coffee, Tea and Spice and later changed their name to Starbucks Coffee Company.
Starbucks are known worldwide and is leading retailer of specialty coffee market, it offers quality coffee while conducting business that produces social, environmental and economic benefits. They offer the best roasted coffee, handcrafted beverages, coffee experience products, excellence service and innovation, plus they are dedicated to produce a great coffee experience to customers. (Starbucks, 2011) Starbucks mission is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. ” (Starbuck, 2011).
Basically what that translates to is they want to provide satisfaction not only to their customers, but also to their partners, neighborhoods, shareholders and of course their employees. They set out to offer only quality products and services in their stores and improve the lives of the people that work and grow with the company. This brings us to the first question of the case study. “Complete a job description and job specification for a Starbucks employee. ” Employees at Starbucks are vital to the company’s success. According to Howard Schultz, they can make or break the company.
If a customer has a great experience with an employee, the likely hood that customer will come back is much greater that if the experience was negative. Then the customer is probably gone for good and letting everyone know about their experience which is bad for business. This is crucial not only for Starbucks but any company to recruit and hire the right people. It is important for Starbucks to attract, develop, and retain quality employees. Catching the attention of talented employees involves the recruitment of qualified candidates and the selection of those who best fit the organization’s needs.
In order to do this you need to construct a solid Job design. A job design is “progresses when managers determine the tasks needed to be done, who will do them, and what selection criteria will be used to choose employees and place them on the job. The standard approach to job design involves three steps: (a) job analysis, (b) job description, and (c) job specification. ” (Reilly, Minnick, and Baack, 2011). A job analysis is “the process of assigning tasks to jobs. ” (Reilly, Minnick, and Baack, 2011).
Managers also use the information collected form the job analysis to prepare A job descriptionjob descriptionOutline of the duties and responsibilities of a position. , which lists the duties and responsibilities of a position and a job specificationjob specificationDetailed list of the qualifications needed to perform a job, including required skills, knowledge, and abilities. , which lists the qualifications, skills, knowledge, and abilities needed to perform the job. Job Description and Specification Do you love coffee? Do you want to share your enthusiasm and at the same work in an environment where you can learn more about coffee?
At Starbucks, we deliver outstanding customer service to every person that walks through the door. We do this through providing excellent customer service by greeting customers, offering assistance, and providing a clean and safe store environment for associates and customers. You will be responsible for taking customer orders and inform customers of related products, services or promotions. Additional duties support sanitation and organizational standards of the shop. You must be able think on your feet while you meet and greet our regulars and new guests alike. Cheerfully respond to all customer requests no matter how small.
Be a creative problem solver. Ask if you can help take the customer to the product. One-on-one interaction with every customer within 10 feet of you. Smile and greet every customer with genuine feeling. Ready to work and in uniform. Name tag on and shirt tucked in. Everyone is thanked and sincerely invited back. Report to work on a regular and timely basis as scheduled. Work schedule requirements include nights, weekends, and holidays. Process customer orders by having knowledge of preparation, production and monitoring quality of coffee and food product, then packaging to specifications.
Run register and control cash. Operate and keep Drip Brew and Espresso machines flowing with proper daily maintenance. Perform specific duties like opening the store, daily projects to complete morning, afternoon and evening, closing the store), and tasks to be completed by the end of the week. Retrieve stock from backroom and replenish shop with supplies and product. Maintain a cleaning and sanitation program to keep processing and guest areas in compliance. What form of departmentalization should Starbucks use? Should the form be changed in stores offering food products and lunch? Why or why not?
Departmentalization can be defined as an effective organizational tool in that it involves dividing people up into different departments or divisions in which collections of tasks are placed together, such as accounting, marketing, and production. (Reilly, Minnick, and Baack, 2011). I feel the best suited departmentalization for Starbucks coffee houses and stores that offer food products would be by Geographic Region then broken down by function and product. They are already set up this way by having their financial offices, associations, and legal affairs separated from stores located at their division headquarters.
They have also added human resources and training and development as part of being specialized departments located at the headquarters. (Starabucks,2011). This structure works; because it is separated from day to day business and doesn’t interfere with store operations. It is the responsibility of the executive managers to provide this information and training to store managers. This ensures that store managers can focus on what is important; customers and employees. When the company began to experience financial problems, should the leadership try to centralize power and decision-making or decentralize the operation? Centralization and decentralization refer to the degree of delegation of decision making, authority, and power within an organization. ” (Reilly, Minnick, and Baack, 2011).
Starbucks had a decentralized authority because they created decision-making for each manager. There are also lots of stores around the world and each store has different from the authority, managers, and customers. However in February 2008, Howard Schultz, president, CEO, and chairman of Starbucks outlined changed his organizational structure and centralized/consolidated many areas in the company.
This was done to ensure that within “each division, partners supporting Store Development, Marketing, Partner Resources and Finance will report directly to their respective functions while still being accountable for results at the divisional level. These teams are being centralized to create an infrastructure with global span, capability, and effectiveness. ” (Shultz, 2008). This is a culture change within the company because individuals at the lowest levels must understand they will do not have the authority to make decisions and are expected to follow orders from above.
In my option this was a good move by the CEO. This ensured that control and decisions came down from the top and helped drive the company again. This also ensured the CEO had a person he could go to if needed to increase sales or revenue. This was a good move by Mr. Schultz. What form of organizational configuration best fits Starbucks? Starbucks serves as a classic example of machine bureaucracy because they have achieved success through meticulous standardization that produces cheap and efficient products.
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