Topics: Leadership, Organizational structure, Situational leadership theory Pages: 10 (3621 words) Published: July 28, 2013
An Introspective into the Mechanism of Starbucks’ Clockwork: Leadership Culture, Team Structure and Human Resource Strategy Analysis Wanda Goodnough
University of the Rockies

Strong leadership strategy and efficient leadership culture are an integral part of any entrepreneurship. Predetermining the course of the company’s actions, the strategies that are going to be chosen in the relationships with the customers, and the specifics of the organizational behavior within the firm, these elements serve as the building blocks for the company’s organizational environment. Considering the example of Starbucks, its recent downfall and nonetheless impressive success that followed the misfortune as a result of adopting a unique leadership strategy will help prove the significance of a leadership strategy.

An Introspective into the Mechanism of Starbucks’ Clockwork: Leadership Culture, Team Structure and Human Resource Strategy Analysis Adopting the right leadership approach is not easy. Choosing a leadership culture, one sets the standards for the organizational behavior and predetermines the rates of the employees’ engagement, which influences the quality of the product considerably. One of the most outstanding examples of a leadership culture is the one adopted by the head of the Starbucks. Because of the choice of a mixture of servant leadership and persuasive leadership cultures, Schultz has managed not only to survive the recent notorious expansion crisis (Seaford, Culp, & Brooks, 2012), but also to reorganize the company a mere year later towards even more recognition and success. Starbucks and Its Leadership Culture

Speaking of the leadership culture at Starbucks, one must mention that the company has deviated from the traditional concept of a perfect leadership style. It is a common knowledge that the transformational leadership is the optimum choice for any major company to arrange the work of its employees in the most efficient way possible. According to the existing sources, transformational leadership offers for much more opportunities in improving the production process through the change of organizational behavior of the employees and the change of corporate culture, since it allows for a transformation of the way in which the employees see their work and its significance. Helping the company leader both pay enough attention to the staff and control the production process, the given approach is considered the most efficient one at present. However, Starbucks went even further in their dedication to the needs of their staff, claiming that the company adopts a servant leadership strategy. The above-mentioned choice can be justified by the fact that Starbucks has always insisted on the significance of establishing perfect relationships between the company leader and the staff. According to the principles, which Starbucks is guided by, the company’s highest priority is the concern for the personal and professional growth of its employees. As it is stated in Behar and Goldstein’s article that studies the specifics of leadership structure in Starbucks, “At Starbucks, we value people most of all, more than we value money. From the very beginning, people have always come first. People come before profits. People come before worrying about lawsuits. People come before the coffee” (Behar & Goldstein, 2010, 20). It must be admitted that the given leadership culture has its pros and cons. One of the doubtless benefits of the given strategy is that Starbucks will always have devoted staff, which works to provide only top quality products. After all, it is important to develop trustworthy relationships between the members of the staff and the managers. Thus, numerous conflicts can be avoided, and the process of knowledge management can be improved considerably. With the help of servant leadership approach, one can make sure that the contribution of each member of the staff is appreciated and that the...
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