As a kid did Schultz ever imagine that one day hed be the founder and chairman

As a kid did schultz ever imagine that one day hed be

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As a kid, did Schultz ever imagine that one day he’d be the founder and chairman of Starbucks Coffee Company? Of course not. But he did decide that if he was ever in a position to make a difference in the lives of people like his father, he’d do what he could. Remembering his father’s struggles and disappointments, Schultz has tried to make Starbucks the kind of company where he wished his father had worked. “Without even a high school diploma,” Schultz admits, “my father probably could never have been an executive. But if he had landed a job in one of our stores or roasting plants, he wouldn’t have quit in frustration because the company didn’t value him. He would have had good health benefits, stock options, and an 321
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Photo by Mario Tama/Getty Images atmosphere in which his suggestions or complaints would receive a prompt, respectful response.”Howard Schultz and Dori Jones Yang, Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time (New York: Hyperion, 1997), 138. Schultz is motivated by both personal and business considerations: “When employees have self-esteem and self-respect,” he argues, “they can contribute so much more: to their company, to their family, to the world.”Howard Schultz and Dori Jones Yang, Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time (New York: Hyperion, 1997), 6–7. His commitment to his employees is embedded in Starbuck’s mission statement, whose first objective is to “provide a great work environment and treat each other with respect and dignity.”“Our Starbucks Mission Statement,” Starbucks, company-information/mission-statement (accessed October 8, 2011). Those working at Starbucks are called partners because Schultz believes working for his company is not just a job, it’s a passion.“Our Starbucks Mission Statement,” Starbucks, - statement (accessed October 8, 2011). Video Clip (click to see video) A major piece of the Starbucks success story has been the superior service provided by its motivated employees. Chapter 7 Recruiting, Motivating, and Keeping Quality Employees 322
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7.1 Human Resource Management LEARNING OBJECTIVE 1.Definehuman resource managementand explain how managers developand implement a human resource plan. Employees at Starbucks are vital to the company’s success. They are its public face,and every dollar of sales passes through their hands.Howard Schultz and Dori JonesYang,Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time(NewYork: Hyperion, 1997), 125. According to Howard Schultz, they can make or breakthe company. If a customer has a positive interaction with an employee, thecustomer will come back. If an encounter is negative, the customer is probably gonefor good. That’s why it’s crucial for Starbucks to recruit and hire the right people,train them properly, motivate them to do their best, and encourage them to staywith the company. Thus, the company works to provide satisfying jobs, a positivework environment, appropriate work schedules, and fair compensation andbenefits. These activities are part of Starbucks’s strategy to deploy human resourcesin order to gain competitive advantage. The process is calledhuman resourcemanagement (HRM)1, which consists of all actions that an organization takes toattract, develop, and retain quality employees. Each of these activities is complex.Attracting talented employees involves the recruitment of qualified candidates andthe selection of those who best fit the organization’s needs. Developmentencompasses both new-employee orientation and the training and development ofcurrent workers. Retaining good employees means motivating them to excel,appraising their performance, compensating them appropriately, and doing what’spossible to retain them.Human Resource PlanningHow does Starbucks make sure that its worldwide retail locations are staffed withjust the right number of committed employees? How does Walt Disney Worldensure that it has enough qualified “cast members” to provide visitors with a“magical” experience? How does Norwegian Cruise Lines make certain that whentheNorwegian Dawnpulls out of New York harbor, it has a complete, fully trainedcrew on board to feed, entertain, and care for its passengers? Managing these tasks
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