Organisations and Behaviour Assignment 2

Nguyễn Thị Kiều Anh - Snow - F05014

BTEC HND IN BUSINESS (FINANCE)
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Nguyễn Thị Kiều Anh - Snow - F05A
F05-014
Organisations and Behaviour
Starbucks
2 of 2 (individual report)
Mr. John Andre
9th January, 2013

I, ____Nguyễn Thị Kiều Anh_____ hereby confirm that this assignment is my own work and not
copied or plagiarized from any source. I have referenced the sources from which information is
obtained by me for this assignment.

_____9th January, 2013______

________________________________
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Unit Outcomes
Evidence for the
criteria

Outcome

Feedback

Assessor’s decision
First
attempt

Understand
ways of using
motivational
theories in
organisations

discuss the impact
that different
leadership styles may

have on motivation in
organisations in
periods of change

3.1

compare the
application of different
motivational theories
within the workplace

3.2

evaluate the
usefulness of a
motivation theory for
managers

3.3

explain the nature of
groups and group
behaviour within
organisations

4.1

discuss factors that
may promote or
inhibit the

development of
effective teamwork in
organisations

4.2

evaluate the impact of
technology on team
functioning within a
given organisation

4.3

LO3

Understand
mechanisms
for
developing
effective
teamwork in
organisations
LO4

Merit grades awarded

M1

M2

M3

Distinction grades awarded

D1

D2

D3

Assignment
( ) Well-structured; Reference is done properly / should be done (if any)

2

Rework

Internal
Verification


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Evidence for the
criteria

Outcome

Feedback

Assessor’s decision
First
attempt

Rework

Overall, you’ve

Areas for improvement:

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ORGANIZATIONS STRUCTURE, CULTURE

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Prepared for:
Lecturer, Mr. John Andre
Organization and Behaviors
Banking Academy, Hanoi
BTEC HND in Business (Finance)

Prepared by:
Nguyễn Thị Kiều Anh - Snow - F05A
Registration No. ITPF05-014
No of words: 2833

Submission date: 9th January, 2013

TABLE OF CONTENTS

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INTRODUCTION
This assignment helps learner understand ways of using motivational theories and
mechanisms for developing effective teamwork in Starbucks. Starbucks Corporations is an
American global coffee company and coffee house chain which is established in 1971.
Nowadays, it owns about 4,000 branches in the whole world and is considered as one of the
most rapidly growing corporations in American as well (Scenario, 2012). Through the
analysis of Starbucks company, learner can know exactly the impact that leadership style
many have on motivation in period of change, application of different motivational theories
within the workplace, useful of motivation theory, nature of groups and group behavior,
factors that may promote or inhibit the development of effective teamwork, and know impact
of technology on team functioning within the organization as well.
This report based on many resources on internet, books to compare, explain, evaluate
problems which are relevant to motivation theories of Starbucks and especially give some
evidences to prove my opinion, my ideas is right.

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CONTENTS

III. Understand ways of using motivational theories in organisations
3.1 Discuss the impact that different leadership styles may have on motivation in
organisations in periods of change
Leadership style involves essentially people-centred activities, with effects potentially
beyond the scope of controlled performance. A leader’s special function is to create a
vision, communicate the vision, energise, inspire and motivate, and create the culture
(BPP, 2010)
There are a number of different leadership styles that a manager of a company can
choose to approach, and motivate their employees. Different styles were needed for
different situations and each leader needed to know when to exhibit a particular
approach (Anon, 2002). Therefore, as a leader, it is very important for them to
understand and adopt leadership styles for motivation in periods of change of their
organization. In order to understand more clearly about impact of different leadership
style in motivating enterprises in periods of change, the analysis below is about two
leadership styles that Starbucks used in their business in the period of rapid
globalization, these are democratic and servant.
a.

Democratic
Because of rapid globalization in recent years, Starbucks face many intensely
competitions in over the world. Therefore, the key to succeed in Starbucks’ enterprise is
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not only the products’ quality but also creating work environment and enhancing human
resources’ role to motivate their employees. At Starbucks, the managers treat their
employees equally. Specifically, in order to narrow the gap between managers and
employees, they co-work with the basic level staffs in the front line and call each other
is “partners” whatever their position (Scenario, 2012). This built a good relationship

among members of the company and create friendly atmosphere to help employees feel
comfortable and only focus on contributing to the company. Furthermore, the managers
also listen to their employees. It is expressed in decision-making process. Employees is
took part in meeting and speak out their ideas while leaders know listening, respect for
the contrary opinion and share information with subordinates. According to scenario,
Starbucks wants every employee to join in making and developing plans, then achieving
their goals together. More than over, it encourages employees to give their opinion,
create an opportunity to promote the capability of individual, and motivate their
creativity. Especially, employees will feel them have more values within the
organization. As a result, according to Fortune magazine, Starbucks was ranked the 16 th
best company to work for in 2007 in the USA. In the same year, Starbucks was also
voted as one of the top ten UK workplaces by the Financial Times (starbucks, n.d.).
b.

Servant
Perhaps most importantly, servant leadership focuses on serving all stakeholders in the
corporation. This includes employees, customers and the community in general
(investopedia, 2012). Starbucks serve their employees to motivate and help them to
have chance of using their talents to help organizations best in serving society because
employees is people who always approach customers and realize what customers really
need. Specifically, all employees, including informal personnel, are offered a great deal
of welfare policies, for instance, commodities discounts for employees, medical
insurance (including health, vision and dentil) and vacations. The partners who work
over 20 hours a week are entitled for benefits (Scenario, 2012). As well as the style
above, employees are also considered as core values, and most important asset of
Starbucks. All positive policies also have one purpose is to help employees feel satisfy
and happy so that they dedicate their best to the organization through listening and
connection to customers to help firm remain competitive advantage in market.
Moreover, Starbucks also contributes part of its profits to public service; on the other
hand, it also set a goal to improve and donate to the society. As a result, the aim makes

all staffs have an idea that what they do for Starbucks is for the society as well
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(ukessays, n.d.). This makes staff love more their work, and inspire enthusiasm. Thanks
to this, firm’s profit turned loss into gain and continue growing the recent years.
Specifically, firm’s sales growth of 7% and total net revenue increase 15% in fiscal
second quarter 2012 (news.starbucks, 2012)

3.2 Compare the application of different motivational theories within the workplace
a.

Application of Maslow’s theory
Maslow divided human need into five levels; from bottom to top of Maslow’s
hierarchy of need are physiological needs, safety needs (basic needs), and love/social
needs, esteem needs, self-actualization (meta needs)
•

Physiological needs: Starbucks’s employees receive free “behind the counter”
drinks while they are on shift or ½ hour before and after shift. This included
brewed coffee, espresso drinks, and cold drinks. Starbucks’s employees also
receive one free pound of coffee a week for personal use. When not working,
they receive a 30% discount on all beverages or merchandise, this same discount
applies to pre-bottled drinks and food items while on shift (John, 2006)

•

Safety needs: All employees are offered medical insurance (including health,
vision and dentil). Starbucks pay for a fair salary to help workers feel safe in their

financial life. Moreover, they allocate stock dividends to all employees with a
free scrip issue for getting benefits from it (Scenario, 2012)

•

Love/social needs: The firm create a friendly work environment with many social
welfare activities so that their employees build good relationships with each
other.

•

Esteem needs: Starbucks respect employees’ ideas by listening to them and
recognize their achievement by giving reward, bonus for their effort.

•

Self - actualization: Starbucks encourages their employees in making, developing
and implementing the plan to promote their ability, good performance and reach
the company’s goals as well (Scenario, 2012)

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b.

Application of Herzberg’s Two-Factor theory
This motivation theory is divided into two factors; these are Environmental/Hygiene
factors (job dissatisfaction) and Motivator factors (job satisfaction).

•

Environmental factors
- Starbucks always creates a cozy environment for their employees and
customer as well.
- The firm focus on work - life balance for their employees by offer vacations,
break time...
- Starbucks provided medical insurance (including health, vision and dentil)
and always adjust salary to ensure that they provide a fair salary to help them
feel safe in financial life and contribute their best for the company’s goals.
- They encourage employees work in team, and take part in social welfare
activities to enhance and improve solidarity. For instance, Starbucks
established community services. One of them called ‘April was our global
month of service’ to provide volunteer opportunities for employees promote
spirit, improve solidarity and contribute to communities.

•

Motivator factors
- Starbucks respect employees’ ideas by listening to them and recognize their
achievement by giving reward, bonus for their effort.
- The organization holds a contest such as Coffee Master to create a chance to
the employees challenge themselves.
- Starbucks encourages their employees in making, developing and
implementing the plan to promote their ability, good performance.

3.3 Evaluate the usefulness of a motivation theory for managers
At Starbucks, Herzberg’s theory is considered as one of motivation theories which
managers prefer to apply for the workplace because of its effectiveness. The
effectiveness of the application this theory can be expressed through levels of job

satisfaction and productivity of workers. The analysis below will make more clearly

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about usefulness of Herzberg’s theory through two factors: environmental factors and
motivators factors.
About environmental factors, Starbucks have many motivation policies so that its
employees can work in the best working conditions. Firstly, Starbucks has created a great
work environment which motivates and encourages employees’ contribution. Due to this,
their employees feel a much closer and more familiar atmosphere than other place and
reach work-life balance (Scenario, 2012). Secondly, Starbucks regularly adjust their
salaries to ensure that it is competitive salary so that their existing employees are not
tempted to go elsewhere, and attract more talent people (starbucks, n.d.). Thirdly,
interpersonal relations are fostered through working process in a team and public welfare
activities. Therefore, teamwork and relationships among colleague are be strengthened.
Besides, Starbucks also fulfil

motivator factors effectively. Starbucks has

acknowledged the role of their employees when they offer every employee join in
making, developing plans and speak out their ideas. As a result, there is no limitation in
employees’ personal opinions. For this reason, business can improve their strategies even
innovate by different ideas. Additionally, one of the career advancement ways at
Starbucks is to achieve the title ‘Coffee Master’. Employees have to go through a lot of
competition as well as participate in training course to get this title. It is considerable as
a chance for employees challenge themselves. Moreover, the company reward their
employees when they do well in their work. All things help managers motivate
employees contribute their best for the company.

Thanks to implement effectively two factors above, the number of clients and revenue of
the company is more and more increasing. Nowadays, there are more than 7,500
Starbucks in hundreds of cities, in 25 countries around the world. Currently, each week
Starbucks sold more than 20 million cups of coffee, with revenue reached tens of
millions of dollars. Specifically, the total revenue increased 11%, reaching a record $3.36
billion, the highest level ever in November, 2012 (businesseconomics, n.d.). It is
undeniable that Herzberg’s theory has positive effect on management at Starbucks.
Therefore, Starbucks’s leader realizes that motivating employees is the key of the
business’s success “Employees are the most important asset of Starbucks” (Scenario,
2012)

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IV. Understand mechanisms for developing effective teamwork in organisations
4.1 Explain the nature of groups and group behaviour within organisations
A group is any collection of people who perceive themselves to be a group. A group has
some certain features that make it different from team or any other “crowed”, including a
sense of identity, loyalty to the group, and purpose and leadership (BPP, 2010)
Two types of groups
•

Formal group: is people are put together by organization to serve a specific
purpose, leader may be chosen within the group, but are typically given authority
by the organization

•

Informal group: includes people who get to exchange information with purpose

relate to group, individual member satisfaction (BPP, 2010)

Tuckman (2001) identifies four stages in group development
•

Forming (first stage): As a collection of individuals, each group member tries to
find out about each other, and the aims and norms and the purpose of the group.

•

Storming (second stage): It involves conflicts occur because of members’ own
ideas and attitudes. It may encourage disagreement, creativity, and changes in the
group’s objective, leadership, procedures, and norms.

•

Norming (third stage): As a period of settling down, there are agreements about
work sharing, output levels and group customs.

•

Performing (fourth stage): The group members concentrates on its task and
performance because the difficulties of growth and development no longer get in
the way of the group’ task objectives (BPP, 2010).

For Starbucks, like other company, they prefer informal working groups because with
informal group, all the employees can discuss and share ideas to each other easily. In
order to the projects can be implemented effectively, and reach company’s objectives
quickly as well, Starbucks also concern more process of group formation to form strong
group. Each stage always does not follow in a clearly-defined progression so adjusting

timing of each stage to suitable for company’s objectives is very important. For example,
when the task must be performed urgently, the first stage should be taken place in a short
time to spend much time for important middle stages.

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One of important thing about group behaviour is groupthink. It is considered as one
phenomenon of group behaviour. Groupthink is the norm for consensus overrides the
realistic appraisal of alternative course of action (Bezroukov, n.d.). It has both advantages
and disadvantages. Its advantages is that group members always agree with the whole
group so the decision making process become faster. However, if all members have the
same thinking, and do not speak out their own ideas, there is no creativity in plans. As a
consequence, the plan may not succeed as expected. For Starbucks, they always
encourage employees contribute their ideas, creative thinking, join in making and
developing plans to achieve their goals all together (Scenario, 2012).
4.2 Discuss factors that may promote or inhibit the development of effective teamwork
in organisations
It can be said that there are two main factors that can promote the effective of teamwork
in organization, namely great work environment and good motivation policies.
At Starbucks, teamwork performance is boosted because of work environment
- Equal, respectful treatment: The managers of Starbucks treat each workpeople equally
and respectfully; all of the staffs are called ‘partners’, opening communication between
members to create the good relationship among the member of a team.
- Idea sharing: Starbucks encourages employees speak out their ideas, exchange
information with each other, joins in making and developing plans (Scenario, 2012)
Motivation policies are considered as key factors to encourage their team members.
- All employees, including informal personnel, are offered a great deal of welfare
policies: commodities discounts for employees, medical insurance (including health,

vision and dentil) and vacations.
- Besides, team members receive bonuses, rewards for their effort to reach the
company’s objectives (Scenario, 2012).
All these things have positive influences on satisfaction of members in a team so that
team goals as well as company’s objectives can be reached effectively. As a result,
Starbucks was voted as one of top ten UK workplaces by the Financial Times in 2007
(Scenario, 2012). Its total revenue increased 11%, reaching a record $3.36 billion, the
highest level ever in November, 2012 (businesseconomics, n.d.).

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4.3 Evaluate the impact of technology on team functioning within a given organisation
At Starbucks, technology has a significant effect on many different aspects of team
functioning. Firstly, by applying modern technology, Starbucks can set up an intranet.
With intranet, the company can update information about stated plans and schedule
assigned tasks to each team, each department, it also allows employees view reports
relevant to some changes of the company, or know their specific role, and responsibilities.
Especially, with wifi network, team members can access data from anywhere in the
company through their own computers, therefore, performing the task become more
quickly and conveniently. Secondly, it is said that technological devices such as laptops,
tablets, projectors, printers is used commonly at Starbucks. They are very useful in
meeting, conferencing, and even other simple activities of employees. For instance,
projectors can connect to computers to present slides containing information, data and
exploiting the strengths such as colour effects, and animation as well, the information can
be conveyed effectively to partners. Finally, Starbucks is a multinational company so
connecting with colleagues, partners and customers from anywhere in over the world is
very necessary. The term virtual team appear to meet this demand. A global virtual team
can be defined as “a temporary, culturally diverse, geographically dispersed,

electronically communicating work group” (BPP, 2010). In other word, it allows people
from different nations with geographical boundaries are joined together in a team, can
work together without face to face. The fact is that thanks to modern technology,
Starbucks are more and more growing both domestic and international market.

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CONCLUSION
This report can be helpful resources to help people, especially students can understand deeply
about “Organization and Behaviour” subject through analysis specific company Starbucks. It shows that by understanding and adopting democratic and servant
leadership styles, Maslow’s theory and Herzberg’s two - factor theory as well, the CEO
of Starbucks has really succeed in motivating and encouraging their employees.
Furthermore, the company recognize the important role of teamwork and always find
out ways to develop informal work group. Finally, being aware of that modern
technology is an indispensable part of any company; Starbucks always uses effectively
the advantage of modern technology in teamwork. It is undeniable that the key to
succeed of Starbucks is due to their effective strategies in “organization and
behaviour”. In general, with more understanding of organization and behaviour will
help company to have the correct orientation to develop the company.

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REFERENCES
Anon. (2012) Leadership styles. (n.d.), [online] Available at:
[Accessed:
2012]

Anon. (2012) Styles of leadership, [online] Available at: [Accessed: 2012].
Bezroukov, N. (n.d.) Groupthink, [online] Available at:
/>BPP Professional Education (2004) Organisations and Behaviour, 1st ed., London: BPP
Professional Education Aldine House, Aldine Place.
investopedia (2012) What is servant leadership?, [online] Available at:
[Accessed:
09 April 2012]
John. (2006) Does Starbucks employee get to drink free coffee? [online] Available at:
[Accessed:
2006]
news.starbucks (2012) Starbucks Reports Record Second Quarter Fiscal 2012 Results,
[online] Available at: />[Accessed 26 April 2012]
Scenario (2012) Scenario - Starbucks Corporation
Starbucks (n.d), [online] Available at: />ukessays (n.d.) Starbucks Corporation Case Study in Motivation and Teamwork, [online]
Available at: />
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