December 7, 2011
By: Andrew Rucker, Kayla Villayvanh,
Megan Lanagin, Savitrii (Kiki) Rizki, and Zea Collentine
Management 311: Managing Human Resources Professor Vandra Lee Huber Foster School of Business, University of Washington Introduction Our paper examines Starbucks’ human resource management practices related to recruiting, hiring and compensation, benefits. Our study focuses on the recruiting practices for Starbucks’s core competency teams in the United States: the coffee divisions – those working directly to create and re-create profitable brewed beverages. These are the product people in headquarters, and the baristas and store managers in the customer frontline. We have excluded, however, employees at roasting plants, and any suppliers. In order to understand the relationship between human resource practices and company goals we have first looked at the shifts in CEO leadership as well as a SWOT analysis of Starbucks as a whole. We then take a closer look at compensation and benefits, recruitment and hiring, and lastly a SWOT analysis of human resources practices.
History Orin Smith succeeded Schultz as CEO in June 2000. In the ten years prior to his position as Starbucks CEO, Mr. Smith held a number of executive positions at Starbucks. As discussed in Chapter 5 of Human Resource Management, there are several advantages to relying on internal sources. Not only does the firm know the applicant, but the applicant knows the firm. Before he was CEO, Mr. Smith held positions as executive vice president, chief financial officer, and chief operating officer. Under Smith’s leadership as CEO, growth and earnings remained strong. When Mr. Smith retired in 2005, Jim Donald was hired as the CEO. Mr. Donald became one of the first Starbucks executives to be hired from the outside. This marked a transition for Starbucks from internally developed executives to external involvement (Gray). In many
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