Organizationalbehavior is the study of the effect of persons, groups as well asstructures of human behavior in an organization. It involves severalfields such as psychology, management, communication, economics,anthropology and sociology. It is mainly considered as an interfacebetween an organization and human behavior. It can be subdivided intothree features, i.e.,
Workgroups or mesolevel
Individuals within the organization or micro-level
Behavior of organizations or macro-level
Organizationalreward is one element considered when reviewing the behavior ofcorporation. Designing a reward plan is one the most complex issuesin any organization. Most of the corporations do not achieve theright balance. A wrongly structured plan can cause discontent amongthe employees or limit the profit margins. This paper will focus onStarbucks Corporation, how it rewards its employees as well as thecustomers. In addition, the paper will focus on how the rewards arecommunicated to the employees, the purpose of each plan, and how theycan be improved. Starbucks is a performance driven corporationconsisting of various customers involved in the My Starbucks RewardProgram. Being an international organization, Starbucks adapts to thediverse needs of its clients in different countries.
Thecompany reinforces culture and values as a way of ensuring totalrewards. It gives the customers as well as the employees a kind ofequity or rather ownership. As a way of strengthening the Starbucksculture, the benefits and compensation programs are well initiated.The employees are offered vision, dental, and health insurances. Theycan also access the employee assistance program (EAP) to cater fortheir needs. Starbucks has a short and long-term disability, workingsolution, and reimbursement accounts, Inc. that is a referral servicefor assisting employees to manage their jobs and family issues. Thiscriterion pays high dividends. This system motivates the employeeshence, they strive to provide better services to the customers.
TheCaring Unites Partners (C.U.P) program is another way Starbucksrewards its employees. In this program, the employees, also regardedas partners, provide funds and assist one another whenever there isan issue. CUP supports the partners in hardship times, for instance,when a partner loses a dear relative or someone is sick. The valuesadopted by the company are of high standards, thus providing aconducive working environment. However, as this research paper willrelay, more can be done to improve sales further and widen themarkets (Starbuck, 2004).
Atotal reward system is also achievable through comprehensive employeeeducation, communicative environment, and partner snapshot aimed atgetting feedback from the organization’s partners. All staff beinghired are given adequate training on various aspects of the company.A detailed management-training program that focuses on diversity,career development, customer service, and leadership skills is alsoavailable.
Purposeof the Rewards Plans
Givingthe employees a sense of ownership motivates them to work evenharder. This plan is rewarding since the employees strive to beproductive to ensure the profits are heightened. The medical coversas well as C.U.P program unites the employees and makes them feelwanted in the corporation. The workers know they are well covered toundertake their duties diligently. In any business, when an employeefeels safe, he/she performs the tasks as per the required standards.Communication and training are another way of enticing the employees.It enhances their knowledge and ensures their up-to-date regardingthe company’s operations. As the OB concepts will elaborate it, therewarding plan is well constructed to fit the particular purposes.
Applicationof OB Concepts
Themotivation of an employee is an important aspect of any company. Itentails giving a worker the desire to perform his/her task withenthusiasm, determination on a daily basis. The employees at Starbuckare highly motivated. The company created a stock option wherebyemployees were made partners. The employees are given ownership ofthe business and share financial rewards. This criterion is quitefruitful since the employees become intellectually and emotionallyattached to the company’s success. Actually, surveys reveal thatthe firm’s partners are highly engaged with the company. Wheneverthey market the company, they show great desire to do more than isrequired of them indicating their willingness to stick with theenterprise (Starbuck, 2004).
Thecompany also has numerous ways of recognizing partners. It boasts ofover 30 recognition programs in which achievements of variouspartners are outlined including acknowledgment of profound effects ofparticular partners on the organization as well as the commendationfor tasks well done. Recognition of individual acts of the partnerstends to boost their morale, and other partners may want to receivethe same. Whenever partners push each other regarding performance,the company benefits accordingly due to improved productivity levels.Recognition is also a way of making partners feel they are valued andappreciated by the firm. Another motivational idea utilized byStarbucks entails informal programs. This includes celebratingspecial occasions of the partners like birthdays, anniversaries amongother professional or personal milestones. These acts tend tostrengthen bonds, thereby creating a better working environment(Starbuck, 2004).
Communicationwithin the organization is quite vital. Communication entails howinformation is relayed between employees and management. How theyrelate to each other for the benefit of the company. Starbucks putstremendous emphasis on communication techniques. The communicationsystem is designed in such a manner that all parties involved have avoice in the various features. This means that anyone can participatein reviewing missions, company standards, and business conduct amongothers. Every person is also afforded recognition. As their culturestates, partners need to know each other well and help one anotherwhenever possible. A good example is the Caring Unites Partners (CUP)program that tends to improve communication among partners as well asmanagement (Starbuck, 2004).
Communicationis a core value in Starbucks. When a partner raises questions, theyare directed to the individual responsible and a response is given,the whole procedure is monitored to ensure transparency, and theapprehensions are shared with the leaders.
Starbucksalso has a helpline vehicle which partners use to communicate.Standards of Business Conduct Helpline (SBCH), is a program that isutilized 24/7 in calling to have direct communication with impartialagents or non-company operatives. The information is treated asconfidential and in the case of any issues, it can be investigatedand solve amicably (Meyer, 2015).
Insome cases, partners opt to share their fears directly with thecompany’s CEO. The channel “ASK ORIN” is utilized for thispurpose. Partners use this vehicle to channel their concerns whetherconfidential or not and expect to get responses within ten days.Additionally, this channel organizes informal meetings involving allthe partners in the organization (Meyer, 2015).
Recommendationon how the Reward Plan can be improved
Sincethe company is a global brand, it ought to ensure propercommunication to all its partners. One of the challenges regards theaspects of marketing. Starbuck did its first television advertcampaign 15 years after its inception. This is quite a long period,and though the company is growing at an alarming rate, there is aneed to maximize on communication with all its partners. Growth comesalong with numerous challenges hence demands more responsibility.There is a feeling that Starbuck can achieve more with effectivecommunication and venture into broader markets (Geereddy, 2010).
Theorganization also changes its operations regularly affecting thepartners involved. For instance, in April this year, Starbuckschanged its rewarding program a star-per-view kind to a 2-stars-per $spent. Though the company anticipates making more profits from thissystem, it was quite detrimental to the partners. With the newsystem, one has to spend more to get rewards. In that respect,regularly altering the rewarding program is harmful to the partnerssuch as the employees (Sharma, 2016).
Thecompany should adopt an all-inclusive mechanism whereby employees areallowed to acquire shares. In other words, the employees areincorporated as shareholders. Though the company does not valueunionization due to time wastages, giving the employees an extensiverole to play would be beneficial to both parties. The employees willstrive to market the products and heighten the sales with a view ofsharing the profits.
Theyshould embrace a community-based approach in their reward plan. Sincethe company deals with foodstuff, the approach would suit theconsumers to heighten the profits. For instance, it could classifyits products and provide rewards depending on the purchases made.Enticing the consumers will also attract the employees to workharder. The company could also create a network kind of rewardsystem. In this technique, any employee registering a new member intothe network gets bonuses. The longer the chain, the more thebenefits. This would motivate them to work extra hard to earn more.
Geereddy, N. (2010). Strategic Analysis of Starbucks Corporation. Strategic Analysis of Starbucks Corporation, 1-17.
Meyer, P. (2015, September 13). Starbuck`s Coffee Company Organizational Structure. Retrieved from Starbuck`s Coffee Company Organizational Structure: http://panmore.com/starbucks-coffee-company-organizational-structure
Sharma, A. (2016, March 2). Starbucks Corporation`s Revised Rewards Plan: Masterful, or Misguided? Retrieved from Starbucks Corporation`s Revised Rewards Plan: Masterful, or Misguided?: http://www.fool.com/investing/general/2016/03/02/starbucks-corporations-revised-rewards-plan-master.aspx
Starbuck . (2004). Living Our Value: Corporate Social Responsibility. Washington.