Organizational Commitment and Communication
The leadership styles, power tactic, form of motivation and level of commitment all have a significant impact on the development of an organization. The way in which leaders communicate these methods plays a key role in the success of an organization (Robbins & Judge, 2007). Starbucks’ success has been accomplished to a great degree on how well the leaders and employees have communicated with each other as well as with their customers. Effect of Leadership Style on Group Communication
There are many leadership theories, the most contemporary include charismatic, authentic, transformational, and transactional. The leadership style used will set the tone of the organization (Kreitner & Kinicki, 2008). Howard Schultz, CEO of Starbucks, has been described as having a charismatic leadership style. Charismatic leaders are more effective in their leadership style because they are willing to take personal risk to achieve the organization’s vision, are perceptive to the needs of the employees, and demonstrate emotional conviction to the vision. The charismatic leadership style of Howard Schultz has made Starbucks a leading retailer by conducting open and honest communication with employees to create a trusting relationship (Spector, 2010). The transformational leadership style has many similarities to the charismatic style. Transformational leaders provide a vision, seek high expectations, promote trust, and give personal attention to the employees. Transformational leaders focus on setting goals and articulating those goals to the employees, instilling commitment to the vision and creating mutual trust (Robbins & Judge, 2007). Starbucks believes that the key to company success is its employees, called partners. The transformational leadership style is apparent at Starbucks where leadership development is a core element of the business process, to ensure that the organizational culture of the company is maintained (Spector, 2010). The authentic leadership style encourages honesty, ethical behavior, integrity, loyalty, and promotes trust. Authentic leaders build trust in their employees by sharing information, communicating openly, and staying true to their ideals. These attributes fall right in line with Starbucks values, which include high standards, positive contributions, trust, and treating each other with respect and dignity (Wilsongroup, 2010). These characteristics are all desirable in a leader, but lack the persuasive and dynamic communication style to motivate employees to the levels of accomplishment that are seen with the charismatic and transformational leadership styles (Robbins & Judge, 2007). Transactional leadership promises rewards for good performance, recognizes employees’ accomplishments, takes corrective action instead of being proactive, and delegates responsibilities. This style does not encourage employees to perform and lacks the motivation to inspire exceptional performance. The transactional leadership style would stifle communication at Starbucks where the creative energy of all employees is necessary to produce innovative solutions to provide exceptional service (Wilsongroup, 2010). Sources of Power in Organization
Power has an integral role within an organization’s culture. Power is the capacity or potential to influence others. Power exists when there is a perception of being dependent upon someone for resources or something of value. Legitimate, reward and coercive power are sources of formal power that are derived from the role assigned in an organization. Expert and referent sources of power come from the power holder’s individual characteristics (Robbins & Judge, 2007). Legitimate and reward power at Starbucks represents the formal authority its managers have to control and use organizational resources and distribute rewards. At Starbucks, non-financial rewards, such as recognition and promotions, are more desirable. Control of information flow...
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