At present, high turnover has been a thorny issue. The market these days that is global and competitive leads to new challenges for both organizations and employees. Companies and managers have to face the new market and use appropriate strategies. Human resource management (HRM) creates company structure and management practices. It is not only a guide but also a strategic plan of organizations. Therefore, it plays a vital role on the goal attainment and overall development of the global companies especially. However, the traditional human resource management adapts to the relatively stable environment. Strategic human resource management (SHRM) is more adaptive in the changeable environment. The concept of SHRM is that which characterized by long term, fundamental decisions and the search for sustainable competitive advantage (Lynch, 2009). This essay will both illustrate the theories of strategic human resource that has been used in a global coffee company named Starbucks but also give my critical analysis of it. Starbucks was a small-scale coffee bean roasting shop founded by Howard Schultz in Washington State during the 1970s. In 1971, Starbucks opens the first store in Seattle’s Pike Place Market. Today it has 17,651 coffee shops all around the world. Schultz (1994) stated that the success of Starbucks was transforming the local coffee factory into a profitable retailer with an easy and ethical strategy: investing in people. According to Emily Ericen, who is the head of human resource sector, she claims that Starbucks is doing a business of people-development as well as the coffee business.
Outline of the company’s HR policy
i. Training in Starbucks’ HR policy
The strategy human resource management that Starbucks used plays a crucial role in its success. Primarily, Starbucks’ employee training is extensive and emotional. Starbucks invest in people’s skills that they will be required to perform a more efficiently work. There is few coffee companies train all classes of employees, including part-time workers. The number of Starbucks’ part-time job workers is big and students are the big part of its staffs. Pfeffer (1998) states the sixteen HR practices for that people is a competitive advantage. That is one of the best practice models and have been revised into seven practices for that gaining profits depends on putting people first by Marchington and Wilkinson (2005). One of that is extensive training. Employees in Starbucks learn the culture of Starbucks, the company services and how to help consumers decide which coffee bean is more suitable for them. All the new staffs joined in Starbucks have at least 24 hours training for the working and services for the next three months. Staff training encourages employees to work innovatively and actively. In the HR planning aspect, to implement HR strategy, HR planning might seem to be attempting to plan to bridge the gap through recruitment or training. Starbucks brings new leaders of overseas stores to Seattle (headquarter) for three months further training about the local culture and management. It seems as a succession planning which can help retention of people by providing company development opportunities for individuals (Hills, 2009). It is also an example of cultural HR planning model that concentrates on the integration of strategic business planning and reinforce Starbucks’ organizational culture. All the employees including part-time people have a report time and share the information to each other every week. It is a learning approach of Senge’s five disciplines. According to Pfeffer ’s (1998) seven critical people management policies of concerning for employee welfare, training and development, Starbucks does little advertisement these years. Instead of that, it focuses on people’s healthy care, training and individual development.
ii. Working Environment in Starbucks
Secondly, Starbucks’ Human Resource sector creates a good...