Research Related To Human Resource Planning

Introduction

Human resources in the era of knowledge economy is undoubtedly the most valuable asset of enterprises. This also makes the current competition between enterprises more concentrated in the human resources level (Xiao, 2016). With the increasing prosperity of Changsha's economy, the competition among enterprises has gradually evolved into competition for quality service. Quality service can be the fine edge that separates successful and failing enterprises. Once core technology and products are identified the fine difference between enterprises will be their competition between their human resource departments.

Therefore, the effective implementation of employee motivation strategies has also become a key factor in the development of enterprises. Having effective employee motivation strategies is an indispensable tool for company management.

Motivation is the most direct and effective way to improve employees' work enthusiasm which leads to efficiency and productivity. Effective and comprehensive employee motivation is a process of building communication between managers and staff. A mutually caring relationship is needed. There should be an ongoing agreement to work toward a common goal of the entire organization.

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The process involves managers realizing the individual needs of each employee and tying that into the goals of the entire organization. In addition managers should understand that competition between employees exists and how the concept of corporate culture interacts and uses incentive systems to create a well run efficient company.

This paper will first take a look at the existing research on human resource management in relation to Starbucks corporation's business practices and employee motivation. It will then look at the challenges Starbucks has faced in the Changsha market and propose potential solutions to these problems.

A survey was given to Starbuck's employees to get an insider’s perspective on how employee motivation business practices at Starbuck's has impacted the company as it operates in the Changsha market. Based on the findings a new system to optimize motivation was created and an outline on how it will be implemented.

Research Problem

Solutions are needed to help the current situation of employee incentive strategies in Starbucks Changsha, China. Starbuck's continues to see an increase in competition from new well funded companies many of which are trying to copy Starbucks successful business model. Although Starbucks has been hailed as a choice employer in China, it still has shown shortcomings in certain Human Resource areas that effect staff turnover, lack of initiative and dedication from staff to solve problems. By refining motivational incentives Starbucks can promote greater cooperation, creativity and responsibility among employees. With increased competition Starbucks will better succeed in a growingly competitive marketplace with improvement and innovation in such areas especially by using effective employee motivation strategies.

When looking at analytical framework, employee motivation can be considered a an important aspect of many retail companies operating in 2nd and 3rd tier Chinese cities. The use of analysis to identify external factors relating to employee motivation is crucial in identifying important issues to consider in firm’s strategy management formulation. Identifying what specific issues fall into each of these categories can help companies develop more effective strategies that address predicted problems. Despite the importance of this issue, there has been little research examining how companies currently operating in lower tier cities such as Changsha have, in practice, adapted to a consumer based business environment. Looking particularly at Starbucks employee motivation practices in Changsha, Hunan can give us a unique insight can lead to further research into what kinds of employee motivation practices will be helpful toward driving economic growth through consumerism particularly in Changsha and can be used in teir 2 and 3 cities across China.

Starbucks offers a good example of a large international firm that has entered the Chinese market. There is much wisdom to be collected by looking at the methods the company has used to adapt to the changing Chinese market. What has worked and what hasn’t? The strategies used by Starbucks can also be compared with the strategies used by other companies that have been successful to see if findings can be generalized. By analyzing the finding of an employee survey a new system can be created to adapt to the increasingly competitive marketplace of Changsha. Business norms of this Chinese city can help other companies better adjust as they also expand.

Research Aim

Our aim is to analyze and examine how Starbucks implements it's employee motivation planning to address organizational challenges specifically to Changsha and to modify and improve their system while giving guidelines for implementation. While Starbucks does have international standards for it operating procedures we can analyze the coffee chain industry in relation to employee motivation in Starbucks Changsha. Our models are used to hone in a city company specific employee motivation areas of interest. Unique opportunities like the development and growth in a market need to be studied carefully in relation to shop employee motivation in order to help Starbucks Changsha grow and increase it's marketshare.

In planning for employee motivation practices, an organization like Starbucks or any other must consider the allocation of people to jobs over long periods of time instead of just for the next month or even the next year. This allocation requires knowledge of any foreseen expansion or reduction in operations and any technological changes that may affect the organization. Organizations like Starbucks on the basis of such analyses, plans can be made for shifting employees within the organization, or retraining present employees. Factors to consider include the current level of employee knowledge, skills, and abilities in an organization and the expected vacancies resulting from retirement, promotion, transfer and layoffs. These are all important areas of interest.

At the heart of strategic planning for effective employee motivation is the knowledge gained from observing the external environment for changes. Environmental observing is the process of studying the environment of the organization to pinpoint opportunities and areas that need improvement. Quality of shop employee motivation especially affects human resource planning because each organization must draw from the same labor market that supplies all other employers and we need to also analyze the competition that may exist. Indeed, one measure of organizational effectiveness is the ability of an organization to compete efficiently for the supply of labor. Top talent should result in better output. When an organization's employees are satisfied they will have higher motivation and lead to higher output. A side effect of having motivated employee is attracting better quality labor. Maximizing shop employee motivation under the premise that it will maximize employee output is the aim of this research.

Research Significance

Why do we need motivated employees? The answer is survival (Smith, 1994). Motivated employees are needed in our rapidly changing workplaces. Motivated employees help organizations survive. Motivated employees are more productive. To be effective, managers need to understand what motivates employees within the context of the roles they perform. Of all the functions a manager performs, motivating employees is arguably the most complex. This is due, in part, to the fact that what motivates employees changes constantly (Bowen & Radhakrishna, 1991). For example, research suggests that as employees' income increases, money becomes less of a motivator (Kovach, 1987). Also, as employees get older, interesting work becomes more of a motivator.

This study's significance is to analyze the importance of certain factors in motivating employees at the Starbucks in Changsha, China. Specifically, the study seeks to describe the following five motivating factors: satisfaction level for employee compensation, career planning, performance appraisal, training, and promotional opportunities.

Starbucks Changsha is first the first time seeing huge investment by multinational and national coffee shop chains with ambitions to take part of Starbucks marketshare and to dominate a growing market. Starbucks for the times is seeing well well financed competition with resources that rival its own. The coffee chain retail market in China is still growing rapidly, fueled by strong demand from second, third and fourth-tier cities. Data from Euromonitor show that revenue of specialist coffee shops, coffee-themed outlets that focus primarily on serving coffee－is expected to rise from 20.95 billion yuan ($3.03 billion) in 2017 to 29.42 billion yuan ($4.26 billion) in 2021. It is of the utmost significance for Starbucks to utilize all of it resources starting with it's human resource management employee motivation strategies to get the most out of it's workforce.

Research Content

There has been much focus in research on Starbucks and other firms looking to occupy space in the coffee shop retail market tend to focus on product differentiation, marketing, etc. when looking for innovative ways to grow market share. The concept of employee motivation and satisfaction is less so emphasized. After completing an analysis we can see that employee motivation carries great significance in relation to company success. In a growingly competitive market Starbucks can leverage employee motivation strategies to expand market share and keep up with new well financed competitors. This study focuses on shop employees in Starbuck Changsha and does not touch on middle or corporate management. It is the shop employees that are front facing employees every day and have the most impact on each locations performance. The motivational strategies that we are proposing are meant to be of use for Starbucks Changsha management to implement.