Howard Schultz toasts at the launch of their new "everyday" brew, Pike Place Roast, April 8,2008, in Bryant Park in New York City. The simplest definition for motivation is internal and external factors that stimulate desire and energy in people to be continually interested and accomplish to a job or role. Basically, it divided into two sections; they are financial rewards and non-financial rewards. According to accurate statistic, average of turnover rate of Starbucks is lower than other industries. This is because Howard Schultz as a leader of Starbucks has effective ways to motivate them. Howard Schultz treats employees as 'partners' or considered them as 'owners'. Starbucks 'partners' get motivated to contribute themselves and try their best mostly. Financial Rewards - Commission, Fringe Benefit, Profit Share As a Starbucks full time or part time 'partners' works more than 6 months and 20 hours in a week, they are awarded annual salaries, grant price of the stock and the profitability of the company. Moreover, they receive full health care benefits even though dental insurance, visual care and disability and life insurance in package form. Besides that, Schultz had set up a regular team building named as "Bean Stock". It gives opportunity to employees of Starbucks able to share the growth of Starbucks up to 14% of their salary and allows them to buy common shares of Starbucks at a discounted price of 85%. 'Partners' are greatly invited to join the retirement plan, receive free pound of coffee every week, price discount on Starbucks Merchandise including vacation time and personal day-off. Last but not least, I agree that what Schultz had done because employees are the most important asset to a successful company; I will be motivated if I receive those rewards from my boss especially, fringe benefits which satisfy humans needs and wants. In the other point of view, it is very difficult for a small company to motivate their employees because they do not have so much resources to invest on. Passion is one of the reason that everyone should own it to motivate ourselves. References Nelson, Bob. How Starbucks Is Offering Not Just Jobs but Careers. 19 November 2013. A. Thompson, JR., and A. J. (Lonnie) Strickland. (1999). Student resource: Starbucks Corporation. Strategic management, 11th ed. New York: McGraw-Hill. Adair, John. (1990). Understanding motivation. England: The Talbot Adair Press. |
Have you heard about Howard Schultz ? Read the articles below and you will know his leadership style, organizational structure, recruitment, training, motivation and corporate culture
Wednesday, 27 November 2013
MOTIVATION - It isn't just a job, it is a passion
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