Performance Management System in Starbucks - Essay Example

The Paper Is Human Resource Management Table of Contents Introduction 3 Discussion 4 Defining Performance and Choosing a Measurement Approachfor Shift Supervisor in Starbucks 7 Implementation of a Performance Management System in Starbucks 10 Conclusion 13 Recommendations 13 References 14 Introduction Starbucks Corporation is an international conglomerate dealing in beverage sector all across the globe. It is one of the foremost United States based privately possessed organisations in the beverage segment. It is recognised as one of the successful coffee brands in the world with its head office established in Seattle, Washington in the United States. It has positioned itself as one of the leaders in the segment of coffee and tea (Starbucks, n.d.). Starbucks was established in the year 1971 which is presently functioning in approximately 19, 555 stores in more than 58 countries all round the world. It was started with the help of three associates namely Jerry Baldwin, Gordon Bowker and Zev Siegl with the desire to offer best quality of coffee to its customers (Scribd, n.d.). The prime objective of Starbucks is to offer its target customers with finest Italian coffee in order to enhance customer loyalty and satisfaction. In addition to coffee, Starbucks also provides varied types of food items and roasted coffee beans as well to its consumers. Moreover, it also attempts to attract large number of customers in order to augment its corporate image and brand identity in the market among other competing organisations. The objective of the paper is to highlight the importance of Starbucks along with preparing a performance management system in order to assess the performance of a shift supervisor. Moreover, it also highlights varied types of performance management approaches in order to augment the performance level of a shift supervisor of Starbucks. Discussion Performance management is referred as the method of creation of a uniform working environment, which can facilitate individual employees to augment their eminence of performances. It is also described as the process of examining and investigating the level of performances of an individual in order to attain the desired results (Kansas Department of Administration, n.d.). The main focus of performance management is to identify the areas for providing job enrichment training and to instruct the employees in order to achieve the required level of performances, which is shown in the below figure. Performance Management Source: (Scribd, n.d.) Moreover, performance management is also essential, as it would facilitate an individual to attain recognition for his/her job performance. It also enables to identify the areas in job description that require to be worked upon in order to eliminate certain deficiencies within an individual. It is extremely essential for an organisation to sustain in this era of competitiveness among other players of the market (Scribd, n.d.). In addition, performance management also facilitates in attainment of a constructive comment about the critical strengths and weaknesses of an individual, resulting in reduction of his/her shortcomings. Similarly, performance management also acts as a significant technique to identify the best and the poor performers of a particular group, which facilitates the management of an organisation in selecting the types of requisite training programmes. It might prove beneficial for the employees to attain the required organisational goals, which would enhance its portfolio in the market. Therefore, performance management is described as a philosophy which helps in encouraging and developing the abilities of an employee, resulting in augmentation of technical skills and team spirit (Armstrong & Baron, 2005). Thus, it can be affirmed that performance management is a fragmentary procedure of communicating and illuminating job responsibilities, preferences and performance expectations in order to enhance shared understanding within the hierarchy. This can be maintained with the help of strategic procedure including certain explicit components namely planning, coaching and feedback, reconsidering and performance appraisal and rewards and recognition (Armstrong & Baron, 2005). This is depicted in the below diagram: Performance Management Components Source: (Kansas Department of Administration, n.d.) Performance planning is the most important step in the procedure of performance management. It is the primary source of performance appraisal in an organisation (Department Of Business Innovation And Skills, n.d.). The main reason behind this stage is to evaluate the level of activities of an individual. This method is performed with the help of appraisee and the reviewee in order to identify the fundamental abilities. This procedure facilitates in determining the areas of dependability of an employee among other members in the organisation (Armstrong & Baron, 2005). After analysing the limitations, it also helps in development of a strategic plan, in order to enhance the level of performances by reducing the deficiencies. Moreover, it also helps in alignment of the future goals and objectives of both the staff and the organisation in an efficient way, which might prove beneficial to sustain its position in the long run (Department Of Business Innovation And Skills, n.d.). In addition, to planning, another vital component is coaching and constant feedback. In this phase, the employee obtains continuous feedback from his/her appraiser or trainer in order to diminish the loopholes by augmenting the abilities (Marchington & Wilkinson, 2008). It is mainly done to enhance the desired returns from the employees, which might facilitate in achievement of organisational aspirations. The next step is to analyse the limitations of an individual employee to provide crucial advice to him/her regarding performance, so it is referred as reviewing. Reviewing also facilitates in continuous growth and advancement of an individual employee with the help of diverse training programmes, in order to reinforce better performances (Armstrong & Baron, 2005). It mainly endeavours to assess the poor performing employees within a specific group, in order to offer more attention and concentration to enhance their level of activities. Furthermore, the final stage of performance appraisal is to enhance the level of performance in such a way that may lead to various types of rewards and benefits. It might help an individual to augment his/her self-confidence and esteem resulting in enhancement of employee motivation and morale (Armstrong, 2006). Hence, it can be revealed that performance management is not just a method but a technique as well utilised for the development of an individual employee within an organisation or a group. Defining Performance and Choosing a Measurement Approach for Shift Supervisor in Starbucks Performance acts as the backbone for any organisation or employee to retain its competitiveness in this period of globalisation and industrialisation. This is due to the fact that with the help of excellent performance, an organisation can enhance its brand image and identity in the market. Moreover, it also helps in augmenting customer dependency and loyalty of its target consumers, resulting in reduction of its business risks. Consequently, it is also beneficial in case of an employee as well, as it facilitates in retention of his/her reputation among other co-workers of the organisation (Armstrong, 2006). Thus, it helps in fulfilment of his/her both primary and secondary desires within an organisation, leading to upgradation of individual self respect and dependence over the assigned tasks (Scribd, n.d.). Hence, performance is described as a multidimensional construct, which depends on a range of aspects namely behaviour, situation and result (Armstrong, 2006). In order to sustain in this era of competitiveness, every organisation endeavours to follow the best suitable performance management approach. This is because it can help in enhancement of the functional skills of its employees resulting in upgradation of the market share and brand distinctiveness of an organisation. Although there exists varied approaches, in order to identify the key attributes and responsibilities of a shift supervisor of Starbucks, mainly competency and behavioural approaches can prove valuable (Slideshare, n.d.). Behavioural approach describes that accurate level of performance can be attained by an individual employee only with the help of desirable behaviours. This can be identified by analysing his/her dedication towards the allotted task. If the work is performed with desired efficiency and effectiveness then it can be expected that the employee can prove to be constructive for the organisation in future days (Department Of Business Innovation And Skills, n.d.). Moreover, after an individual in the organisation depicts certain individual traits and features, specific behavioural aspects can also be identified which can be amplified with the help of diverse training programmes. It might prove extremely valuable for both the employee as well as the organisation. Thus, with the help of this approach, the management or superiors of Starbucks can critically analyse the attributes required to execute the role of a shift supervisor (Slideshare, n.d.). Similarly, competency approach is also the other significant method, which can be utilised by Starbucks in order to evaluate the traits required for performing the responsibilities of a shift supervisor in a proficient way. It mainly includes varied practices such as multi-source and upward feedback and 360 degree system to identify the essential skills as well as capabilities of an individual. In multi-source feedback, all other co-workers, superiors as well as clients of Starbucks can be included while assessing the performance of an individual employee working as a shift supervisor. It is mainly done, in order to offer a detailed idea about the strengths and the weaknesses, which might be rectified through workshops leading to augmentation of his/her level of performances (Pulakos, 2009). Subsequently, in 360 degree feedback as well, all the members of Starbucks can be involved at the time of the appraisals in order to provide a clear idea about the attributes required to perform the tasks assigned for a job such as shift supervisor. On the other hand, in upward feedback, the immediate superior provides a feedback about the employee engaged as a shift supervisor of Starbucks, in order to evaluate his/her quality of performance or devotion towards the work. Moreover, it might also help in enhancement of employee relationships resulting in augmentation of self-esteem and morale (Acas, n.d.). It might help the management of Starbucks to implement certain specific training programmes for the upgradation of the individual skills of the employee (Slideshare, n.d.). Hence, it can be depicted from the above mentioned facts, that appropriate execution and supervision of the methods of performance management are indispensable to retain and to continuously enhance the level of performances of the employees (Slideshare, n.d.). Implementation of a Performance Management System in Starbucks The concept of performance management has attained high significance over the past few decades due to its essence to facilitate an organisation to maintain its competitiveness. For this reason, the notion of performance management is offered high attention by each and every multinational organisation operating in diverse segments. As a result, it can be avowed that the performance of an individual can be mapped in a competent way by evaluating his/her competencies, which is referred as competency based performance management system (The Chartered Institute of Personnel Development, n.d.). A competency is identified as the underlying qualities of an individual employee that permit him/her to execute excellent performances within a specific situation, role or task. For this cause, competencies are also referred as inputs of an individual. According to Hayes (1979), competencies are general knowledge, intentions or traits of an individual, which are entirely linked to execution of better performance within a job. It also helps an individual to effectively complete a specific task or job within a particular time-frame, which might lead to future rewards or promotions within an organisation. Moreover, competency can also be described as a behavioural attribute as these are the key strengths of excellent performers of an organisation (Hayes, 1979). Thus, from the above mentioned facts, it can be affirmed that competency based approach may prove most valuable for Starbucks while evaluating the task-based responsibilities of a shift supervisor. Competency based approach is regarded as one of most essential approaches for all the employees irrespective of their function, as it acts as the catalyst to resolve any discrepancy (The Chartered Institute of Personnel Development, n.d.). This is because it might help in identifying varied traits such as analytical thinking capability, work rationalisation, tactical handling of diverse situations, willingness to experiment inventive aspects and communication power among others within its employees, which are marked extensively valuable to sustain. Implementation of competency based approach might facilitate in enhancement of analytical thinking capability (Workitect, Inc, 2006). Analytical thinking ability is extremely essential for an employee in order to deal with diverse issues or problems within an organisation in an effective way. This might help in reduction of business risks along with organisational conflicts resulting in augmentation of brand equity and uniqueness. Moreover, work rationalisation is also essential as it helps in analysing the prioritised responsibilities of a particular job prior to executing the task, which might prove advantageous in accomplishing it in a successful way. With the help of this approach, employees can also become efficient to handle strategic situations in order to retain organisational inimitability (Workitect, Inc, 2006). Thus, it can be revealed that competency based approach is best suitable for Starbucks as it is a service oriented organisation. This is because in these types of organisations, the jobs include no quantifiable outcomes but the qualitative abilities are the best indicators of a worker’s performance. Thus, in order to enhance the subjective outcomes of an employee, competency approach might be utilised (Scribd, n.d.). Moreover, Starbucks always attempts to satisfy the alternating desires and requirements of its target customers, in order to retain its brand dependency among the customers resulting in lowering of switching costs. This can be possible only if the employees execute accurate behaviours and skills, leading to customer gratification and contentment. It might facilitate the employees to achieve their targeted results, leading to organisational efficiency (Workitect, Inc, 2006). Competency based approach is also beneficial for Starbucks as it might help in improvement of the future performance levels of the employees, essential to retain its corporate image in the service sector (Department Of Business Innovation And Skills, n.d.). In addition, competency based approach is also imperative for Starbucks due to its inclination to alter the set strategies according to the demands of the markets (The Chartered Institute of Personnel Development, n.d.). It is mainly done in order to remain competitive among other influential market players of this segment. For this purpose, the employees of Starbucks might include that potency or competency to sell the new range of products in the global markets, resulting in augmentation of total revenue of Starbucks. It might also facilitate Starbucks in amplification of its unique selling proposition (USP) and position among other reputed players of the market (Workitect, Inc, 2006). Conclusion It can be affirmed that appropriate performance management system is extremely essential for an organisation, in order to offer value added products and/or services to its customers at an efficient cost. Moreover, it is also essential to provide qualitative services to its customers in order to enhance their level of satisfaction and loyalty. This is because customers are most essential resource of a service oriented organisation like Starbucks. Hence, it is highly essential to enhance the skills and competencies of its employees specially shift supervisor in order to improve his/her level of services. Recommendations After analysing the benefits and importance of competency based performance management approach, it can be revealed that the management of Starbucks should offer higher concentration upon the abilities and potentialities of its employees. This is because employees are the prime assets who would help in augmentation of the attributes of an organisation. Due to this reason, Starbucks might attempt to implement competency based approach resulting in enhancement of its employee performance. Moreover, Starbucks might also offer on-the-job training programmes to its employees in order to amplify the requisite skills and abilities. This might facilitate Starbucks to enhance the level of happiness and pleasure of its customers, which would retain its dominance over the other market players. 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