Written project
2009
Theodore Beck & Musab Ali Kadan Manage people 抯 performance Starbucks Co Operation
TABLE OF CONTENT
PC 1.2 - BRIEFLY DESCRIBE DESCRI BE THE ORGANIZATIO ORGAN IZATION N....... ............... ............... ............... ............... ............. ......... ... 3 MISSION STATEMENT- Operational Goal........ 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. business............... ..............4 4 Risk analysis and management is relevant to many aspects of HRM.......................... HRM..........................5 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......... productive................. ..................................... .............................8 Performance management management systems objectives:.................... ................................... ..................... ........... ........... ........... .....8 8 Barriers to implementing and operating performance management systems...... .......... ...... ..9 9 FORMAL SYSTEM.................................................................................................................... 9 INFORMAL SYSTEM.................................................................................................................. 9 S TARBUCKS ASSESSING PERFORMANCE:....................... .............................................. ............................................ .......................... ........... ............ ........... .....10 10 PC 2.1 & 2.4 DESCRIBE METHODS OF MONITORING USED FOR THE POSITION . 10 Techniques for assessing performance....................... ............................................... ........................................... ...................... ...11 11 METHODS OF MONITORING USED IN S TARBUCKS (ADOPTED S TAR BUCKS, 2009)...................... ................................ ............... .....11 11 TRAINING IN PERFORMANCE MANAGEMENT ........ ................ ................ ................ ................ ................ ................ ..................................... .............................11 11 (View appendix 5 for Managers Performance and standard Performance)... ....... ........ ........ ....12 12 PC 2.2 EXPLAIN HOW ALL PARTICIPANTS (E.G. SUPERVISORS AND EMPLOYEES) ARE TRAINED TRAINE D REGARDING REGARD ING THE PERFORM PER FORMANCE ANCE MANAGEMENT MANAG EMENT SYSTEM. SY STEM. ... ...... ...... .....12 Appendix one (Risk Management) Management)...................... ............................................. ....................................... ...................... ............ ......... ...13 13 Appendix two Code of conduct........................ ............................................... ....................................... ...................... ............ ............ ......14 14 Appendix three (Performance Management cycle) ..................................................16 ................................................................................................................................ 17 Appendix Four (Behavioural (Behavioural ratings)...................... ........................................... ........................... ............ ............ ............ ........... .....17 17 Appendix Five (Performance management and Performance profile) ............... ..................... ........ ..19 19 Standard Performance Profile ..................................................................................19 19 References:..................... ............................................ ............................................... ....................................... ..................... ............ ............ ............ ......... ...20 20
2
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 customers all of the time.
Contribute positively to our communities and our environment. environment.
Recognise that profitability is essential to our future success.
(Adopted Starbucks operational goal, 2009)
3
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 i n organisational performance. performance. Good organisational performance 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 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 person to delegate delegate to and show trust
Give necessary authority for each task assignment
Establish clear performance standards standards and deadlines for task completion
Exercise post delegation control/maintain control/maintain feedback
Reward performanc performance/criticise e/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
•
4
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 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 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 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 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
5
performance standards standards. (Adopted Starbucks Job description, 2007) 1. FINANC FINANCIAL IAL CONT CONTRIB RIBUTI UTION ON
Contributes toward 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. Deve Develo lop p Partn Partner ers s
Trains and develops partners to demonstrate all Starbucks customer service standards operating standards 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 MAINTAINS QUALITY QUALITY STORE STORE OPERA OPERATIONS TIONS
Ensures all company policies, store standards and procedures are communicated communicated effectively to partners and maintained and followed in a consistent manner.
4. PERFO PERFORM RMANC ANCE E STANDA STANDARDS RDS
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, l aws, rules and regulations.
6
•
•
•
•
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. 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 performance of staff so that organisational goals and objectives are more effectively achieved while simultaneously 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, clarification, coaching and ongoing communications that are designed to help staff develop and improve performance. Performance Performance management is an ongoing and cyclical process that incorporates incorporates a number of related tasks including: •
Communicating Communicating expectations
•
Monitoring performance
•
Documenting performance
•
Coaching
7
•
Giving and receiving feedback
•
Involving staff
•
Appraising performance 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, 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 organisation
Improving individual and organisation organisation performance 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 performance and providing accurate and constructive feedback on same
Providing a firm basis for validating and defending HR/personnel HR/personnel management decisions.
(Adopted Jones, 2002, p.32)
8
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 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 promotion/demotion A means of control over organisation 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.
9
•
•
•
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 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, 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 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 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 10
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 employees at Starbucks is conducted when first employed, every 18 months and if the employee has been promoted. Within Starbucks, there are contracted 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 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. 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 practises and procedures as set forth in company‘s operating manual, information systems and basics of managing people.
11
•
•
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 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 performance management system
Starbucks extensively trains both supervisors and staff in administrative and behavioural dimensions di mensions 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 performance management approach approach which requires a substantial investment in training supervisors in objective setting, performance analysis and performance performance counselling techniques.
12
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 assessment has been conducted.
Starbucks ensure that a relationship between the results of performance appraisal and other human resource management considerations, considerations, such as salary increments, promotion and training and development opportunities.
Appendix one (Risk Management)
13
T. O’Loughlin, 2009. Manage Risk, p.22
Appendix two Code of conduct
14
Starbucks Code of conduct
15
Appendix three (Performance Management cycle)
http://www.ohr3.gatech.edu/depa http://www.ohr3.gatech.edu/departmental rtmental %20folders/avp_web/PTM/PerfMgtCycle2.jpg
16
Appendix Four (Behavioural ratings)
R. Jones, 2002. Manage Peoples Performance, 80
17
R. Jones, 2002. Manage Peoples Performance, 81
18
Appendix Five (Performance management and Performance profile)
6 5 4 3 A T i l t x s e
Curre 2
Previ
1 0 Customer Relations
Store operation
Performance Standards
Quality Standards
Starbucks Perfo erfomanc mance Management
Standard Performance Profile
19
Leadership
References: About Starbucks , Company Monster, 2006. Retrieved August 24 th from
http://company.monster.com http://company.monster.com/starbucks/abo /starbucks/about/structure.htm ut/structure.htm Become a Starbucks partner , Starbucks, 2007. Retrieved August 25th from
http://www.starbucks.co.nz/index http://www.starbucks.co.nz/index.cfm?contentN .cfm?contentNodeID=26 odeID=263 3 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 Publication Pty Ltd , NSW
R. Jones, 2002. Manage Peoples Performance, Vocational Education and training, WA
QA Field Manager – Starbucks, Alshaya, 2009. Retrieved on August 25 th from http://www.gulftalent.com/home/QA-Field-Manager-Starbucks-jobs-inDubai-UAE-12168.html Regional Operations Manager – Starbucks, Alshaya, 2009. Retrieved August 25 th
from http://www.gulftalent.com/hom http://www.gulftalent.com/home/Regional-Opera e/Regional-Operations-Manager tions-Manager-Starbucks-Starbucks jobs-in-Saudi-Arabia-6247.html Store Manager Job Description, Starbucks, 2007. Retrieved August 24 th from
http://www.starbucks.co.nz/index http://www.starbucks.co.nz/index.cfm?contentN .cfm?contentNodeID=26 odeID=269 9
20
