The department of human resource management, in general, involves planning, organizing, implementing, managing, and controlling various essential initiatives within an organization related to human resource aspects. Likewise, human resource management of Starbucks aim at maximizing its productivity by enhancing employee effectiveness along with improved work life balance of the members. It includes efforts to encourage personal development, career growth and satisfaction of employees apart from realizing organizational objectives. It made great efforts in selecting the right set of human assets and also strived on retaining them. It paid much attention towards people it recruited. It hired people with qualities such as dependability, adaptability, and team spirit.
For fulfilling the basic responsibilities of human resource objectives, the professionals of Starbucks engage in various activities of human resource management for execution of plans. All major activities may be grouped into four basic categories such as acquisition, compensations, development, and maintenance (Bartlett & DeWeese, 2014).
General Workforce Productivity – The most effective measure metric for the entire human resource success is that of workforce productivity. The human resource department of Starbucks takes responsibility to improve workforce productivity and is quite sure to be the leader amidst senior executives. The main aim is to improve continuously the ratio amidst the employee cost including wages, human resource expenses, and benefits and that of organizational revenues. The metrics here involves:
Employee Engagement – It is important for the Company to maintain balance in employee engagement as well as productivity for ensuring that organizational managers do not lose their employee asset in an effort to enhance productivity. In fact, both the factors are essential and as per studies it is reflected that describes effect of increased engagement upon productivity as well as organizational success. Organizational managers must be rewarded to realize both high productivity as well as engagement of employees. The metric in this category of Starbucks include:
Human Resource Costs – The Company has realized much earlier that motivated as well as committed employees is keys to organizational success. It made great efforts in selecting the right set of human assets and also strived on retaining them. It paid much attention towards people it recruited. It hired people with qualities such as dependability, adaptability, and team spirit. Once selecting the people, Starbucks invested highly in training the employees to acquire necessary skills of effectiveness (Judge & Schechter, 2009).
Health care cost of employee – As per research it has been assessed that Starbucks spend more upon employee healthcare than that on coffee. It assures that all its employees receive adequate healthcare option and plans to continue delivering effectively towards organizational objectives.
Employee Turnover data - The human resource department of Starbucks takes responsibility to improve workforce productivity and is quite sure to be the leader amidst senior executives. The main aim is to improve continuously the ratio amidst the employee cost including wages, human resource expenses, and benefits and that of organizational revenues (Murphy & Zandvakili, 2000). This is quite motivating for employees to continue working with the organization. Besides, the firm increasingly spends upon healthcare aspects of employees. This motivates them and makes them feel important to the organization.
One of the key features of human resource management at Starbucks is evaluation of human resource methods as well as measuring outcomes. Even the greatest planned as well as executed human resource management programs are ineffective in absence of techniques to judge the relevant effectiveness as well as confirming the credibility (Nigenda et al., 2011). The evaluation of methods related to HRM must involve both internal as well as external assessments. Evaluating internally emphasizes upon overall advantages of such HRM methods to achieve organizational goals. Human resource department of Starbucks use much detailed and advanced statistical analysis approaches for testing success of such initiatives. The outcomes may be utilized for adjusting human resource programs or conduct organizational changes.
Competence means the extent to which human resource policies successfully attract, retain and develop organizational employees. Similarly, cost-effectiveness measures the effectiveness of fiscal policies in context to benefits, wages, turnover, absenteeism, and disputes of labor or management (Pease, Byerly & Fitz-enz, 2012). Analysis of congruence enables determining the way by which human resource policies create as well as maintain coordination amidst various groups of organization internally and externally, including employees, departments, subordinates, and managers.
Besides advanced gathering of data as well as analysis of techniques, some simple observations may be practiced to provide deep insight into effectiveness of human resource of Starbucks. For instance, ratio of management costs to that or employee costs show effectiveness of the firm labor force. Generally, low managerial expense exhibits an increasingly empowered as well as effective workforce (Ram, Gerstorf, Fauth, Zarit & Malmberg, 2010). Cost per employee as well as revenues, when compared to other associated industries may provide deeper insight into effectiveness of HRM of the firm.
Additionally, average speed of filling of job vacancies act as an indicator of whether or not the firm has got necessary talents as well as competencies. Other measures with respect to success of HRM involve employee complaint as well as statistics relating to customer satisfaction, workers' compensation and insurance claims, and quality ratings (Schwarz & Murphy, 2007). Also, several significant innovations every year like that of manufacturing or even product breakthroughs, exhibit success of human resource management of Starbucks to foster an environment which rewards innovative ideas and also amenable towards change.
Apart from evaluating internal aspects of the department, firms must try assessing the efficiency of programs related to human resource management by assessing the impacts upon entire business success (Swanson, 2000). Firms must relate their evaluation of such methods with firms’ performances for determining if the methods are suitable in increasing organizational quality, reduction of costs, expansion of market share, etc. Finally, the firms must ensure that right number of skilled and competent employees who perform effectively to achieve organizational goals along with increased motivation of employees and organizational profitability.
Bartlett, J., & DeWeese, B. (2014). Using the Q Methodology Approach in Human Resource Development Research. Advances In Developing Human Resources, 17(1), 72-87. doi:10.1177/1523422314559811
Bartolucci, C. (2013). Gender Wage Gaps Reconsidered: A Structural Approach Using Matched Employer-Employee Data. Journal Of Human Resources, 48(4), 998-1034. doi:10.1353/jhr.2013.0027
De Cáceres, M., Sol, D., Lapiedra, O., & Legendre, P. (2011). A framework for estimating niche metrics using the resemblance between qualitative resources. Oikos, 120(9), 1341-1350. doi:10.1111/j.1600-0706.2011.19679.x
Judge, G., & Schechter, L. (2009). Detecting Problems in Survey Data Using Benford's Law. Journal Of Human Resources, 44(1), 1-24. doi:10.1353/jhr.2009.0010
Murphy, T., & Zandvakili, S. (2000). Data- and metrics-driven approach to human resource practices: Using customers, employees, and financial metrics. Human Resource Management, 39(1), 93-105. doi:10.1002/(sici)1099-050x(200021)39:13.0.co;2-
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