For every business, the people are considered as the most significant assent that assist the entity to avoids its weaknesses and capitalize on its strengths as much as possible. The success of business is largely relied on its people who offer their services inversely as stakeholders. In the competitive business arena, managing the people effectively is vital because it helps in increasing the productivity and motivation; enhance work environment, employee development, attraction & retention of the talent as well as helps in aligning the business objectives. If the organizations have talented people then it directly impacts their success and growth. This report is based on the case study of Starbucks where employees fired for being three minutes late”. This report will include critical evaluation of case study aspects in relation to leadership, strategic human resource management and cultural aspects. The first section of this report contains comprehensive information relevant leadership. The second section based on the strategic human resource management. The third section of this assessment will be based on the culture of business which directly impacts the retention of employees. This report will also include all the theories relevant to these concepts. A framework for incorporate people management and development techniques are also highlighted for the achievement of long-term corporate objectives.
Analysis
Leadership
The term leadership is defined as capability of the people in order to encourage and direction to the team members of the company. It is crucial for all the organization to have the effective leadership because it helps in improving the morale and motivating the employees. In the business, the leaders are setting the objectives and goals facilitating the team members to understand their roles and responsibilities, minimizing confusion and improving the productivity (Ciulla and Ciulla, 2020). Effective leadership helps the organization in creating the positive environment where the employees feel comfortable to share the issue, ideas and feedback which helps in enhancing the alignment and collaboration. The topic of leadership is directly linked to the case study of Joselyn Chuquillanqui's termination at Starbucks. It is crucial for Starbucks to enhance the leadership style from which helps in creating the positive work environment and the employees are not required to leave the organization.
From the case study, it has been determined that, Joselyn Chuquillanqui's had work for this organization for nearly 7 years and she fired by the boss for late by only three minutes (BBC, 2022). It is vital for this organization to improve their leadership style that helps the employees to cooperate and motivate from which they feel encouraged and influenced. She likes her job as a barista because it gave her flexibility to work and waiting for the decisions. She was one of the key important employees for the business among all the team members because she worked as a union leader and shift supervisor. However, the termination of the employee is negatively impacts the overall operation and efficiency of the business. When organization downsize then gaps within the workload are created. Termination of employee increases the workload on the existing team members. The additional responsibilities create the pressure as well as stress on the remaining workforce and it ultimately negatively affects the motivation and morale of the team members (Strielkowski et al, 2022). It is vital for the management of Starbucks to focus on the effective leadership to retain the employees and provide support to them.
Effective leadership style assists Starbucks to make the potential decisions that immensely impacts the team and its success. If the organization has effective leadership style then, the leaders are providing the opportunity to their employees to share their problems or issues. If the Starbucks has effective leadership style then she shares its reasons of being late by three minutes to her boss. There are many leadership styles such as transformational, transactional, laissez-faire, democratic, autocratic etc. that can be implemented by the organization Presently, Starbucks is adopting transformational leadership in order to maintain the workplace integrity, promote motivation and improves the communication of the employees. In the context of current case study, due to lack of this leadership style the leaders are unable to focus on their employees, disruption of routines and misuse of power which directly increase in turnover intentions as well as emotional exhaustion.
In addition to this, transformational leaders are put lot of stress on the authenticity and they are breathing and living the organization’s values & cultures. From this pressure the employees feel demotivated and looking to switch in other organizations (Kurniawati and Sulaeman, 2022). Howard Schultz is a transformational leader and he is not providing freedom to its employees and put pressure on them to accomplish the organizational goals and objectives. Due to the poor work environment, the boss of Starbucks fired Joselyn Chuquillanqui's. On the other hand, to keep its employees motivate and encourage, the management of Starbucks should focus on democratic leadership style. In the context of case study, implementation of this leadership style will be beneficial for Starbucks because it helps in providing the opportunity to employees to have their inputs in the process of decision-making. The democratic leadership helps the organizations in building the strong relationships with the team members from that they encouraged and put all the efforts to accomplish the organizational goals and objectives (Abu-Rumman, 2021).
The democratic leadership is more effective as compared to transformational leadership because it more focuses on increasing employee morale and job satisfaction. Democratic leaders are focusing more on retaining the employees rather than firing from their employment (Devi, 2021). If the organization adapts this leadership then it positively impacts the employee encouragement and retention.
Strategic Human Resource Management
Strategic human resource management (HRM) is one of the significant processes that are relevant to the people in the business. This process assists the department of human resource to maximize the potential of its workers with the help of talent management, strategic planning, organizational design, and leadership development as well as performance management. In strategic HRM, the managers plays an immersive role in ensuring that the business has right people that aids in enhancing the business performance and delivers its mission effectively (Ahammad, Glaister and Gomes, 2020). Additionally, strategic HRM includes developing and adopting the strategies for motivating, attracting, retaining & managing the talented people who significantly contribute towards the success of business. The key aim of the strategic HRM in the business is to gain the competitive advantage over the competitors by valuing its people like shareholders, employees, customers and other stakeholders.
The concept of strategic HRM is directly associated with the case study of Starbucks i.e. fired its employee on being three minutes late. The management of this organization is not fired its employee directly on being late because it directly affects the reputation and efficiency of the business. As critically said by Vrontis et al, (2022), it is crucial for the organization to implement the effective HRM strategies & policies from which the employee put all the efforts and likely to retain with the company for long period of time. The management of Starbucks was not treating fairly to Joselyn Chuquillanqui's from which she feels demotivated. She also asked her boss to started punishing for arriving late by few minutes. Moreover, the management of Starbucks need to focus on implement effective HRM strategies in order to motivate and influence its workforces from which they are likely to retain with them for long period of time.
The boss of Starbucks should not directly fire her; he needs to give opportunity in the form of warning mail to stay with the company. The HRM department of Starbucks needs to take such corrective actions from which its employees feel high level of motivation and encouragement. As critically opposed by Anwar and Abdullah (2021), many organizations are failed to create the positive work culture from which they feel demotivated and discouraged to do work. Before firing the employee it is crucial for the business to hold a meeting with the employee who are going to be fired by them. In the meeting, the manager of organization requires to discuss the reason of firing with them and provide the opportunity to react (El Shoubaki, Laguir and Den Besten, 2020). Apart from this, it is significant for the Starbucks to adopt strategic HRM policies which in turn facilitates job satisfaction and employee retention. Due the ineffective strategic HRM approach and policies as well as decisions the employees of Starbucks feel demotivated and fired efficient employees which directly affect its operational efficiency.
Presently, to motivate and fulfil the requirements of the employees, Starbucks should adopt Maslow’s hierarchy needs theory. According to this theory, the HR department of Starbucks not treated its employees equally and fired one of the employees Joselyn Chuquillanqui's on late by only three minutes. On the other hand, to motivate the people and improve the environment of the business Starbucks will need to focus more on human capital theory. As per the view of Abu-Rumman (2021), implementation of this theory will be beneficial for the business to encourage and retain employees for the long period of time. In the context of case study, Starbucks is required to make huge investment in skills and knowledge of the employees. If the organization will offer the opportunity of training & development to its employees then they feel motivated and encouraged to do the work. The management of Starbucks will also provide the opportunity of training and development to its employees before directly fire them. Implementation of strategic HRM policies will be beneficial for the business because it helps in enhancing employee performance, strengthened recruitment and increase employee satisfaction as well as engagement. To encourage and influence the employees, the HRM department of Starbucks will need to organize welfare program for them. From this they put all efforts in order to accomplish the business goals and objectives which positively impact their growth and success (Ahammad, Glaister and Gomes, 2020).
Culture
In the context of organization, culture is defined as set of shared goals, values, practices and attitudes that featured the business. The organization which has positive culture then it tend to be less structured and more successful because it has proper system in place that helps in fostering employee productivity, performance & engagement. The chosen case study is directly linked with the topic of culture. The culture of Starbucks was not good and it directly fired the employee on being late by three minutes. Paais and Pattiruhu (2020), argued that it is crucial for the organization to have the positive culture in order to motivate and encourage the employees. Additionally, positive culture is important for the business and its people because it helps in increasing the engagement, decrease turnover, elevate productivity, strong brand identity and create healthy team environment. Apart from this, to improve the business culture, Starbucks is implementing Hofstede model. Implementation of this model is valuable for the business because it helps in gaining people insight of the regarding country’s culture that is based on the values & beliefs.
This model helps Starbucks in enhancing the cooperation and communication between the individuals from the different cultures. This model is consisting of six dimensions such as power distance, individualism, uncertainty avoidance, long term orientation, indulgence and masculinity Vs femininity (Azeem et al, 2021). In the context of power distance, USA has low score and if majorly focuses on equal rights within the community and government. In this model, the power index comprises of organizational hierarchy, decision-making, leadership, power delegation and supervisory staff. Starbucks has flatter organizational hierarchy that permits easier admittance and more visibility to management. The decision-making of Starbucks is more centralized so it helps them in developing the positive culture. As contended by Murtiningsih (2020), if the organization has positive work culture then it helps the employees to feel motivate and encourage from which they are likely to retain with them.
The individualism Vs collectivism dimension of culture model is consisting of privacy, time, individual accomplishment and creativity. In the perspective of privacy, Starbucks didn’t value its employee’s privacy in the workspace as well as personal life. It is crucial for the organization to consider the personal values of its employees in order to build the positive culture of the workplace from which they feel encourage and motivate to work. The long term orientation and short normative orientation dimension includes focus on education and thrift, obligation and virtues, values as well as right. This organization is majorly focuses on providing the education to its employees in order to develop the positive work culture (Escandon-Barbosa, Ramirez and Salas-Paramo, 2022). If the business has positive work culture then the employers are support to their employees and offer the motivation sessions regarding punctuality rather than fire them. In the context of values and rights, Starbucks places high significance on the people’s rights and values within the community. This organization has to provide equal treatment to their employees from which they feel motivate and encourage as well as prefer to retain for the long period of time. However, Paais and Pattiruhu (2020) argued that if the company is not providing equal treatment to its employees then it adversely impacts the culture and growth as well as success of the employees.
Apart from this, Starbucks needed to change the decision making process and offer opportunity to Joselyn Chuquillanqui's for retention rather than fired. It is crucial for Starbucks to change the culture of its business operation and change the decision process; it will need to focus on uncertainty avoidance index. The organizations which have culture of high uncertainty avoidance then they tend to be more controlling standpoint. This dimension of culture model comprises of opened to change, learning and decision making process, risk-taking, sense of urgency and flexibility. According to this dimension, if Starbucks implemented flexible strategies that it will increase the probability of improve the working culture or environment which directly impacts the growth and success of the employees. To improve the culture of business, Starbucks will need to provide support the employees and consider their values from which the employers are not fire them rather than retain.
Conclusion
From the above assessment it has been summarized that, to motivate and retain the employees it’s can be crucial for the organization to implement effective leadership style. Effective leadership helps the organization in creating the positive environment where the employees feel comfortable to share the issue, ideas and feedback which helps in enhancing the alignment and collaboration. Currently, the leadership style of Starbucks is based on the transformational that created the rigid working environment and culture from which the employee feel demotivated and discouraged. Due to this leadership style, the boss of Starbucks fired his employee on being late by three minutes. In addition, to motivate the employees, Starbucks will need to focus on democratic leadership style. The ineffective strategic HRM strategies and policies also directly affect the growth and success of employees. To influence or encourage the employees, the HR department of Starbucks can require focusing on human capital theory. This topic is directly linked to the case study of Starbucks and it is crucial for them to focus majorly on the peoples in order to improve the performance and efficiency of company. Apart from this, another topic is culture that is directly associated with the case study of Starbucks. To inspire and retain the employees it can be crucial for business to focus on uncertainty avoidance index dimension of culture theory.
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Refrenece
Books and Journals
Abu-Rumman, A., 2021. Transformational leadership and human capital within the disruptive business environment of academia. World Journal on Educational Technology: Current Issues, 13(2), pp.178-187.
Ahammad, M.F., Glaister, K.W. and Gomes, E., 2020. Strategic agility and human resource management. Human Resource Management Review, 30(1), p.100700.
Anwar, G. and Abdullah, N.N., 2021. The impact of Human resource management practice on Organizational performance. International journal of Engineering, Business and Management (IJEBM), 5.
Azeem, M., Ahmed, M., Haider, S. and Sajjad, M., 2021. Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66, p.101635.
Ciulla, J.B. and Ciulla, J.B., 2020. The importance of leadership in shaping business values. The search for ethics in leadership, business, and beyond, pp.153-163.
Devi, A.D., 2021. Implementation of democratic leadership style and transformational head of madrasah in improving the quality. Nidhomul Haq: Jurnal Manajemen Pendidikan Islam, 6(1), pp.14-26.
El Shoubaki, A., Laguir, I. and Den Besten, M., 2020. Human capital and SME growth: The mediating role of reasons to start a business. Small Business Economics, 54, pp.1107-1121.
Escandon-Barbosa, D., Ramirez, A. and Salas-Paramo, J., 2022. The effect of cultural orientations on country innovation performance: hofstede cultural dimensions revisited?. Sustainability, 14(10), p.5851.
Kurniawati, S. and Sulaeman, A., 2022. The influence of stakeholder engagement and transformational leadership on business sustainability. Jurnal Bisnis dan Manajemen, 23(1), pp.45-65.
Murtiningsih, R.S., 2020. The Impact of Compensation, Training &Development, and Organizational Culture on Job Satisfaction and employee Retention. Indonesian Management and Accounting Research, 19(1), pp.33-50.
Paais, M. and Pattiruhu, J.R., 2020. Effect of motivation, leadership, and organizational culture on satisfaction and employee performance. The Journal of Asian Finance, Economics and Business, 7(8), pp.577-588.
Strielkowski, W., Firsova, I., Azarova, S. and Shatskaya, I., 2022. Novel Insights in the leadership in business and economics: A post-coronavirus update. Economies, 10(2), p.48.
Vrontis, D., Christofi, M., Pereira, V., Tarba, S., Makrides, A. and Trichina, E., 2022. Artificial intelligence, robotics, advanced technologies and human resource management: a systematic review. The International Journal of Human Resource Management, 33(6), pp.1237-1266.
Online
BBC, 2022. Starbucks fired me for being three minutes late'. [online]. Available through:< https://www.bbc.com/news/business-62426940 >. Accessed On: 8th January, 2024.
