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As a kid, did Schultz ever imagine that one day he’d bethe founder and chairman of Starbucks CoffeeCompany? Of course not. But he did decide that if hewas ever in a position to make a difference in the livesof people like his father, he’d do what he could.Remembering his father’s struggles anddisappointments, Schultz has tried to make Starbucksthe kind of company where he wished his father hadworked. “Without even a high school diploma,” Schultzadmits, “my father probably could never have been anexecutive. But if he had landed a job in one of our storesor roasting plants, he wouldn’t have quit in frustrationbecause the company didn’t value him. He would havehad good health benefits, stock options, and an321
Photo by Mario Tama/GettyImagesatmosphere in which his suggestions or complaintswould receive a prompt, respectful response.”HowardSchultz and Dori Jones Yang,Pour Your Heart into It: HowStarbucks Built a Company One Cup at a Time(New York:Hyperion, 1997), 138.Schultz is motivated by both personal and business considerations: “Whenemployees have self-esteem and self-respect,” he argues, “they can contribute somuch more: to their company, to their family, to the world.”Howard Schultz andDori Jones Yang,Pour Your Heart into It: How Starbucks Built a Company One Cup at aTime(New York: Hyperion, 1997), 6–7. His commitment to his employees isembedded in Starbuck’s mission statement, whose first objective is to “provide agreat work environment and treat each other with respect and dignity.”“OurStarbucks Mission Statement,” Starbucks,company-information/mission-statement(accessed October 8, 2011). Thoseworking at Starbucks are called partners because Schultz believes working for hiscompany 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 motivatedemployees.Chapter 7 Recruiting, Motivating, and Keeping Quality Employees322
7.1 Human Resource ManagementLEARNING OBJECTIVE1.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