CASE STUDY ON MOTIVATING PARTNERS AT STARBUCKS2
Question 1: Given Starbuck’s training approach, benefits, package, work/life program, and partner relations mechanisms, what insights have you gained about its approach to employee motivation? Explain your answer.2
Expectancy- Probability (E to P)4
Instrumentality- Probability (P to O)4
Question 2 : What needs does Starbucks appeal to through its training approach, benefits package, work/life program and partner relations mechanisms?7
Employees’ inner satisfaction.7
Listen to employees8
Question 3: What is important to you in terms of your personal work motivation? How does that which motivates you fit with Starbuck’s approach to motivating partners?10
CASE STUDY ON MOTIVATING PARTNERS AT STARBUCKS
Question 1: Given Starbuck’s training approach, benefits, package, work/life program, and partner relations mechanisms, what insights have you gained about its approach to employee motivation? Explain your answer.
Starbucks Corporation, the most famous chain of retail coffee shops in the world, mainly benefits from roasting, selling special coffee beans and various kinds of coffee or tea drinks. It owns about 4000 branches in the whole world. The reasons of why Starbucks is worldwide popular are not only the quality of coffee, but also its customer service and cosy environment. Besides, it is also famous for its satisfaction of employees. The turnover rate of employees at Starbucks was 65% and the rate of managers was 25% a year However, the rates of other national chain retailers are 150% to 400% and 50% respectively. Compared with them, the turnover rate of Starbucks is much lower than other industries on averagely. As a result, Starbucks would be one of the optimal business models for the strategies of employee motivation, customer satisfaction and cooperation of teamwork.
Motivation refers to forces within an individual that account for the level, direction and persistence of effort expended at work. People have basic needs such as food, secure or achievement, that translate into an internal tension that motivates specific behaviours with which to fulfil the need. If the behavior leads to ones success, the person will fall in the state of satisfaction or we can call it reward.
Rewards are two types; intrinsic and extrinsic. Intrinsic rewards refer to satisfaction occurs in the process of performing an action. Such as a salesperson that sold encyclopaedias for intrinsic reward of helping children read well. Extrinsic refers to a reward given by another person such as promotion and bonuses.
The understand that I had on Starbuck’s approach to its employee motivation is best by explaining the case based on the Vroom’s Expectancy Theory of Motivation; is based on an idea that work effort is directed toward behaviors that people believe will lead to desired outcomes.
The Expectancy Theory of Motivation explains the behavioral process of why individuals choose one behavioral option over another. It also explains how they make decisions to achieve the end they value.
Vroom introduces three variables within the expectancy theory which are valence (V), expectancy (E) and instrumentality (I). The three elements are important behind choosing one element over another because they are clearly defined: effort-performance expectancy (E to P expectancy), performance-outcome expectancy (P to O expectancy).
Three components of Expectancy theory: Expectancy, Instrumentality, and Valence.
1. Expectancy: Effort → Performance (E→P);
2. Instrumentality: Performance → Outcome (P→O);
3. Valence - V(R)
Expectancy- Probability (E to P)
Expectancy is the belief that one's effort (E) will result in attainment of desired performance (P) goals....