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Starbucks: Employment relationship and the firms approach to intrinsic and extrinsic motivation of workers - Assignment Example

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In today’s competitive business environment, the term ‘employment relationship’ is of considerable importance because it is the central element affecting employee contributions to an organisation…
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Starbucks: Employment relationship and the firms approach to intrinsic and extrinsic motivation of workers
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"Starbucks: Employment relationship and the firms approach to intrinsic and extrinsic motivation of workers"

Download file to see previous pages Generally, employment relationship reflects the relationship between employees and the organisation from an employer perspective. Since better employment relationship would assist an organisation to promote employee satisfaction and to reduce staff turnover rate, today top level managements particularly focus on establishing and maintaining improved employment relationship. In order to obtain desired outputs from employees and to foster employee involvement, managements use different employee motivation techniques, namely, intrinsic motivation and extrinsic motivation. This paper will analyse Starbuck’s employment relationship and the firm’s approach to intrinsic and extrinsic motivation of workers. A brief overview of Starbucks Starbucks Corporation is a US based coffeehouse chain headquartered at Washington. The company was founded by Jerry Baldwin, Gordon Bowker, and Zev Siegl in 1971. Currently, Starbucks is the world’s largest coffeehouse company having 20,366 stores across 61 countries. The company has strong presence in countries like US, Canada, Japan, UK, China, South Korea and Mexico. The organisation’s product lines include hot and cold beverage, full-leaf teams, whole-bean coffee, microground instant coffee, pastries, and snacks (Starbucks, CNN Money, n.d.). The company also maintains an entertainment division, through which it markets books, music and film. The company achieved explosive growth during 1990s and 2000s. At present, the overseas stores account for the nearly firm’s one third of total stores. The company announced hundreds of store closures in US since 2008 as part of downsizing the organisation and thereby improving its efficiency. According to Fortune 500 ranking, Starbucks was the 227th largest corporation in America in 2012 (ibid). Employment relationship of Starbucks While analysing Starbucks Corporation, it seems that the company performs better in terms of employee relationship. The company management believes that employees are the firm’s most valuable assets, and they are worth more than plenty of equipments and facilities. Starbucks management calls its human capital ‘partners’ rather than employees or workers as the management likes to maintain a direct and open relationship with its human elements. The Starbucks’ management officials say that the company does not want a third party to act on behalf of its employees. While going through the firm’s corporate history, it is clear that Starbucks’ management directly deals with its workers in a fair and respectful manner. In addition, the organisation believes that this strategy would assist the firm to provide its employees with a positive workplace or a feeling of being involved. The company management strongly holds the view that Starbuck’s success would not be possible without the valuable contributions its ‘partners’ make on a day-to-day basis; and hence, the company promotes itself as one of the progressive employers in the United States (Starbucks Newsroom 2009). ...Download file to see next pagesRead More
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