Written project

2009

Theodore Beck &

Musab Ali Kadan
Manage people 抯
performance
Starbucks Co -
Operation
 TABLE OF CONTENT

PC 1.2 - BRIEFLY DESCRIBE THE ORGANIZATION..............................................3

MISSION STATEMENT- Operational Goal.....................................................................3
PC 1.1 & 1.3 BRIEFLY DISCUSS HOW WORK IS ALLOCATED EFFICIENTLY AND
EFFECTIVELY ................................................................................................4
Conduct risk analysis of factors that may affect operations of the business...............4
Risk analysis and management is relevant to many aspects of HRM..........................5
PC 1.4 & 1.5 STATE WHICH EMPLOYEE/POSITION YOU ARE FOCUSSING ON IN
DETAIL..........................................................................................................5
STARBUCKS STORE MANAGER POSITION..................................................................5
KEY RESULT AREAS.....................................................................................................5
A broad aim of performance management system is the creation of working
environments that are more satisfying and productive..............................................8
Performance management systems objectives:.........................................................8
Barriers to implementing and operating performance management systems............9
FORMAL SYSTEM....................................................................................................................9
INFORMAL SYSTEM..................................................................................................................9
STARBUCKS ASSESSING PERFORMANCE:.........................................................................................10
PC 2.1 & 2.4 DESCRIBE METHODS OF MONITORING USED FOR THE POSITION . 10
Techniques for assessing performance.....................................................................11
METHODS OF MONITORING USED IN STARBUCKS (ADOPTED STAR BUCKS, 2009).....................................11
TRAINING IN PERFORMANCE MANAGEMENT .....................................................................................11
(View appendix 5 for Managers Performance and standard Performance)...............12
PC 2.2 EXPLAIN HOW ALL PARTICIPANTS (E.G. SUPERVISORS AND EMPLOYEES)
ARE TRAINED REGARDING THE PERFORMANCE MANAGEMENT SYSTEM...........12
Appendix one (Risk Management)............................................................................13
Appendix two Code of conduct.................................................................................14
Appendix three (Performance Management cycle) ..................................................16
................................................................................................................................17
Appendix Four (Behavioural ratings)........................................................................17
Appendix Five (Performance management and Performance profile).......................19
Standard Performance Profile ..................................................................................19
References:..............................................................................................................20

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PC 1.2 - Briefly describe the organization

 Company started in 1971 in Seatle, Washington

 Grew from 55 stores in 1989 to over 2,200 stores today

 Products sold include:

 Beverages

 Pastries

 Whole coffee bean

 Coffee – Related retail items

MISSION STATEMENT- Operational Goal

Overall, the aim of becoming a worldwide global brand. ‘’To inspire and nurture
the human spirit-one person, or and one neighbourhood at a time”

The mission of Starbucks is to establish Starbucks is to establish as premier

purveyor of the finest coffee in the world.

None of this success would have been possible without set goals that the
company aimed to achieve and a set of priorities which governed the decision
making process.

 Provide a great work environment and treat each other with respect
and dignity.

 Embrace diversity as an essential component in way do business.

 Apply the highest standard 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.

 Recognise that profitability is essential to our future success.

(Adopted Starbucks operational goal, 2009)

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PC 1.1 & 1.3 Briefly discuss how work is allocated
efficiently and effectively
Everyone in our workplace has an important part to play in organisational
performance. Good organisational performance is the result of high –quality
functioning by the individuals within it.

Store managers are responsible for guiding and managing the performance the
employees, both as individuals and as a team. Store managers need to set
performance objectives, provide feedback, appraise performance, guide
development and ensure employees are rewarded for good performance.
(Adopted Starbucks, 2009)

 Know which tasks to delegate

 Select right person to delegate to and show trust

 Give necessary authority for each task assignment

 Establish clear performance standards and deadlines for task

completion

 Exercise post delegation control/maintain feedback

 Reward performance/criticise constructive /build self confidence.

 Carefully match people to positions

 Ensuring employees understand their fit within the organisation

Conduct risk analysis of factors that may affect operations

of the business.
There are four main types of risks

• Strategic risk covers such issues as the organisation’s

management structure

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 • Operational risk can arise as a result of the way assets are
purchased, used and stored and daily operations and workplace
activities.

• Financial risks can arise as a consequence of cash flow and

the way that financial information is documented and stored

• Risk related to people and culture can include: the skills,

knowledge and attitude of personnel; the culture of the
organisation’s succession plan

(View appendix one for risk management diagram)

Risk analysis and management is relevant to many aspects

of HRM.
• Failure to properly induct staff into an organisation

• Not provide ongoing training so as to keep staff up to date with respect to

skills and knowledge and cable of responding of responding to changing
circumstances.

• Safe work environment depends on being vigilant in identifying hazards

and the risk they pose, assessing those risks and controlling them.

PC 1.4 & 1.5 State which employee/position you

are focussing on in detail
STARBUCKS STORE MANAGER POSITION
This position is critical to Starbucks success by having responsibility for the
efficient and profitable operation of a Starbucks store. Store managers are
responsible for ensuring that the Starbucks “Service Experience” is consistently
provided for all customers, quality store operations are maintained, store
partners are lead and empowered in positive manner, and financial contribution
is maximised. This position requires customary and regular exercise of
independent judgement and discretionary powers in the day-to- day
performance of job duties, and ensures the Company‘s policies are implemented
and maintained in a consistent manner. (Adopted Star bucks, 2009)

KEY RESULT AREAS

As a store manager for Starbucks some responsibilities are obligated and are the
responsibility of the managers to avoid the unexpected from accruing and to
make the needed happen. Some of these areas that require most attention are
budgets, the smooth operation of the store, customer support, and quality and

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performance standards standards. (Adopted Starbucks Job description,
2007)

1. FINANCIAL CONTRIBUTION

 Contributes toward store profitability by seeking opportunities to

increase sales, manage inventory and cost of goods control and labour
cost.

 Maintains final accountability for store operations, partner

development and financial contribution.

2. Develop Partners

 Trains and develops partners to demonstrate all Starbucks customer

service standards operating standards and Star Skills

 Resolves partner complains and concerns, provides ongoing

performance feedback, conducts formal performance feedback,
conducts formal performance and salary reviews and counsels partners
when necessary.

3. MAINTAINS QUALITY STORE OPERATIONS

 Ensures all company policies, store standards and procedures are

communicated effectively to partners and maintained and followed in a
consistent manner.

4. PERFORMANCE STANDARDS

 Regular exercise of independent judgement

 Discretionary powers in the day-to-day performance of job duties

 Ensure the Company’s policies are implemented and maintained in a

consistent manner.

DESCRIBE HOW THE KRA ‘S, PERFORMANCE STANDARDS, CODE

OF CONDUCT WERE COMMUNICATED/AGREED WITH BY THE
EMPLOYEE.

KEY RESULT ARE (KRA)

• All partners at Starbucks are given the performance standards, code of

conduct, ethic standards, key result area, laws, rules and regulations.

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 • This process is communicated and a copy is given at the introduction of
the employment and updated through partners meetings or memos.

• Partners are also encouraged to check noticeboards and company website

for any information they want find out within the organisation.

• Every partner employed at Starbucks including the board of directors live

under same code and contains the specific corporate policies adopted by
the board of directors that relate to the legal and ethical standards of
contact of directors, partners and franchises of the company.

• The code can be changed in order to help the partners who out depend on
the country they are employed in and what the countries laws, roles,
culture backgrounds and current states of the country. (Adopted,
Starbucks 2009)

(View appendix two for code of conduct)

2.1 & 2.3 Define a performance management

system and describe the system that the
organisation uses. Use a diagram to make this
clear. Describe the timeframes involved.
A process for identifying ,evaluating and developing the job performance of staff
so that organisational goals and objectives are more effectively achieved while
simultaneously benefitting staff by way of recognition, the giving of feedback
and catering for work and career needs.

Performance management describes a comprehensive and continuous system

that, in addition to traditional aspects of performance appraisal, includes role
clarification, coaching and ongoing communications that are designed to help
staff develop and improve performance.

Performance management is an ongoing and cyclical process that incorporates a

number of related tasks including:

• Communicating expectations

• Monitoring performance

• Documenting performance

• Coaching

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 • Giving and receiving feedback

• Involving staff

• Appraising performance

Performance management is a cycle or process which typically spans a defined

period of time, often one year, and which incorporates a number of components
including or defining performance, development and appraisal.

(View appendix three for performance management cycle)

A broad aim of performance management system is the creation

of working environments that are more satisfying and
productive.
This can contribute to laudable goals such as:

 Personal development

 Performance improvement

 High levels of motivation and morale

 Targeted training

Performance management systems objectives:

 Developing individual job objectives which link with those of

the organisation

 Improving individual and organisation performance

 Improving two way communications between job holder and

supervisor

 Improving staff motivation and morale

 Developing job holder’s knowledge and skills by providing

training and personal and career development

 Realistically evaluating job holder’s performance and

providing accurate and constructive feedback on same

 Providing a firm basis for validating and defending

HR/personnel management decisions.

(Adopted Jones, 2002, p.32)

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Barriers to implementing and operating performance
management systems

Formal system

• Gives an appearance of being fair and objective

• Can provide more comprehensive and accurate information

• Less subject to personal bias if properly developed and implemented

• More regular, predictable and universally applied

• Provides better information base for workforce, career and succession

planning decisions as well as promotion/demotion

• A means of control over organisation activities

(Adopted Jones, 2002, p.37)

Informal system

• More intimate, personal contact

• Immediacy –appraisal and feedback generally occur almost

simultaneously

• Flexibility –not contained by guidelines and procedures

• Cheaper and easily administered and in small organisations

(Adopted Jones, 2002, p.37)

Performance management systems can serve the

following purposes:
• Facilitate promotion, separation and transfer decisions

• Provide evaluation of relative contributions made by individuals and

sections in delivering higher level organisational goals.

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 • Provide criteria for evaluating the effectiveness of selection decisions
including how information used in those decisions.

• Ascertain and diagnose training and development needs for individuals

and entire sections or departments

• Provide criteria for evaluating the effectiveness of training and

development decisions

(Adopted Jones, 2002, p.38)

Starbucks assessing performance:

Technical and professional abilities-the store manager level of expertise in

performing the duties of the role; for example, administration, and finance or
policy advice.

Leadership and management – How people lead and manage the

performance of others.

Communication – All forms of communication rely upon how well information,

ideas and proposals are expressed.

Task and work output-in terms of timeless and quality.

Relationships –how effectively he works with partners in store, as well with

external contacts.

Management and development of self –a person‘s ability for self –reflection

and learning, stress

Management an attaining work life –balance.

360-degree feedback consists of data gathered, peers, employees, customers

and other stakeholders.

It is preferable for performance assessment to be a two-way conversation in

which employees rate their managers.

This approach can foster a cooperative, action –based and solution –

focussed discussion.

Through feedback managers can improve their performance as well as that of

their partners. (Adopted Starbucks, 2009)

PC 2.1 & 2.4 Describe methods of monitoring

used for the position
When monitoring employees at Starbucks, All positions are monitored using the
same techniques and criteria to allow a fair go to all employees. When

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monitoring, Starbucks ensures that all factors of the particular job are included
into the process such as OH&S, Performance results, Customer relations.
Monitoring employees at Starbucks is conducted when first employed, every 18
months and if the employee has been promoted. Within Starbucks, there are
contracted people allocated to perform the monitoring audits, these people are
qualified and trained to complete the process. These people can ensure that can
the audits are conducted to industry standard and law. Some techniques used
within the monitoring audits are:- (Adopted Starbucks Job Description,
2007)

Techniques for assessing performance

There are a number of techniques for measuring performance (i.e. appraisal
techniques) that are in general use. In choosing a technique or a combination of
techniques, the objectives of the appraisal program need to be kept in mind.
(Adopted Jones, 2002, p.67)

Methods of monitoring used in Starbucks (Adopted Star

bucks, 2009)
• All store managers within Starbucks are monitored using the same
techniques to ensure there is fairness to all partners and employers.

• The mentoring and audit process is built into the code of business conduct
is designed to detect, conduct all audits and processes of mentoring
professionally and fairly.

• When doing an audit on performing on store mangers job, this must be

included health, personal safety, job performance and other people’s
performance.

• Store manager thoughts must also be monitored and audit.

• Starbucks must also train partners who is doing performing audits.

• Most trainees will come from partners inside Starbucks organisation.

Training in performance management

• Every partner received at least 24 hours training in the first two to four
weeks and store managers at least 8-to 12 weeks’ classes.

• This training includes store operations, practises and procedures as set

forth in company‘s operating manual, information systems and basics of
managing people.

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 • Major object in this training was to ingrain the company’s values,
principles, and culture.

• Through this training system partners will become passion about

Starbucks.

(Adopted Starbucks, 2009)

(View appendix 5 for Managers Performance and standard

Performance)

PC 2.2 Explain how all participants (e.g.

supervisors and employees) are trained
regarding the performance management
system.

At Starbuck, the training regarding the performance management systems is

spit throw out a weeks time, to balance between work hours and training hours,
it requires 25 hours to complete the training course to learn and understand the
methods used in monitoring or audits with in Starbucks. This course was created
to teach and inform employees about their own environment. Topics in this
training course are customer service, leadership, quality standards.

Training for supervisors and employees regarding performance

management system

 Starbucks extensively trains both supervisors and staff in

administrative and behavioural dimensions of performance
appraisal that are also a fundamental element of an appraisal
scheme.

 Starbucks Managers receives skill training and assistance in

using a performance appraisal system and are specifically coached
and counselled.

 Starbucks see’s a need in training their supervisors in

behaviour sampling as it becomes a routine part of their jobs which
establishes an atmosphere; in evaluation has positive outcomes for
both supervisors and staff.

 Starbucks canters their objectives in a performance

management approach which requires a substantial investment in
training supervisors in objective setting, performance analysis and
performance counselling techniques.

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  At Starbucks, their appraisal system is implemented by
helping managers to effectively manage performance.

 This approach enables Starbucks to design training programs

that can efficiently teach skills once a needs assessment has been
conducted.

 Starbucks ensure that a relationship between the results of

performance appraisal and other human resource management
considerations, such as salary increments, promotion and training
and development opportunities.

Appendix one (Risk Management)

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 T. O’Loughlin,
2009. Manage Risk, p.22

Appendix two Code of conduct

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Starbucks Code of conduct

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Appendix three (Performance Management cycle)

http://www.ohr3.gatech.edu/departmental
%20folders/avp_web/PTM/PerfMgtCycle2.jpg

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Appendix Four (Behavioural ratings)

R. Jones, 2002. Manage Peoples Performance, 80

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R. Jones, 2002. Manage Peoples Performance, 81

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Appendix Five (Performance management and Performance
profile)

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Current
T
tleA
x
is

2
Previous
1

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Customer Store Performance Quality Leadership
Relations operation Standards Standards

Starbucks Perfomance Management

Standard Performance Profile

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References:
About Starbucks, Company Monster, 2006. Retrieved August 24th from

http://company.monster.com/starbucks/about/structure.htm

Become a Starbucks partner, Starbucks, 2007. Retrieved August 25th from

http://www.starbucks.co.nz/index.cfm?contentNodeID=263

K. Cole, 2005, Management theory and practice, 3rd Edition,

Pearson Education Australia, Frenchs Forest NSW.

T. O’Loughlin, 2009. Manage Risk, 1st edn,

Software Publication Pty Ltd , NSW

R. Jones, 2002. Manage Peoples Performance,

Vocational Education and training, WA

QA Field Manager – Starbucks, Alshaya, 2009. Retrieved on August 25th from

http://www.gulftalent.com/home/QA-Field-Manager-Starbucks-jobs-in-

Dubai-UAE-12168.html

Regional Operations Manager – Starbucks, Alshaya, 2009. Retrieved August 25th

from

http://www.gulftalent.com/home/Regional-Operations-Manager-Starbucks-

jobs-in-Saudi-Arabia-6247.html

Store Manager Job Description, Starbucks, 2007. Retrieved August 24th from

http://www.starbucks.co.nz/index.cfm?contentNodeID=269

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