STARBUCKS CORPORATION: CASE STUDY IN MOTIVATION

Because of rapid globalization over recent years, the competition around the world
becomes more intense, especially for the service industry with the similar products. The
most critical point for business to success is not only the quality of products they supply.
The employees who always touch with customers and can realize what customers really
need are first-line staffs. Therefore, it turns to be essential for companies to motivate,
reward and train their employees to be the best quality personnel. And Starbuck is a
typical example of this problem.
1. Induction Starbuck:
Starbucks Corporation, the most famous chain of retail coffee shops in the
world, mainly benefits from roasting, selling special coffee beans and various kind
of coffee or tea drinks. It owns about 4000 branches in the whole world. Moreover,
it has been one of the rapidest growing corporations in America as well. The reasons
of why Starbucks is worldwide popular are not only the quality of coffee, but also
its customer service and cosy environment. Starbucks establishes a comfortable
surroundings for people to socialize with a fair price, which attracts all range of
ages’ consumers to get into the stores. Besides, it is also noted for its satisfaction of
employees. Starbucks is one of the optimal business models for the strategies of
employee motivation, customer satisfaction and cooperation of teamwork.
2. Equity Theory:
Equity theory of motivation suggests that employees compare their relative
work contributions and rewards with those of other individuals in similar situations.
 Employees experience inequity when they feel either under- or over- rewarded for
their contribution relative to that of others.
One factor about the management of Starbucks which distinguishes from
other companies was that all employees within Starbucks would co-work with each
other. Despite that there were level of status between managers and workers.
Applying this equity theory, employees in the workforce would feel that they
are working in a friendly, lively and enthusiastic environment, without a sense of
status within the organization. This sense of belonging towards the company could
lead to employee satisfaction, and could be able to motivate employees to work and
hence increase efficiency of the business.
 According to Hammers (2003), the top two reasons why people work for Starbucks:
“People have the opportunity to work with an enthusiastic team”
“To work in a place where I feel I have value”
Motivation is defined as “the set of forces that initiates, directs and makes people
persist in their efforts to accomplish a goal.” (McWilliams, 2012) It is one of the important
factors which could influence the efficiency of the business. With applying the most
suitable motivation theories for employees, not only it would improve its efficiency, but
would also make employees enjoy being part of Starbucks, and hence increase job
satisfaction. Starbucks, one well-known and successful business in the coffee industry, is
one of the great examples in terms of motivating employees. The chief executive officer of
Starbucks corporation, Howard Schultz, considers that the reason for success in Starbucks
is not coffee but employees. He firmly believes that the spirit of Starbucks is employees
and feels honoured about the value of Starbucks employees. Starbucks offers an interactive
structure that makes personnel throw themselves into their job.
1. Equal treatment The equity theory is “a theory that states that people will be
motivated when they perceive that they are being treated fairly.” (McWilliams, 2012) As
reported in the research papers about motivation and teamwork in Starbucks, managers
would treat each employee as ‘partners’, which includes the basic working staff of the
company, who might need support from senior staff. One factor about the management of
Starbucks which distinguishes from other companies was that all employees within
Starbucks would co-work with each other. Despite that there were level of status between
managers and workers.
 Applying this equity theory, employees in the workforce would feel that they are
working in a friendly, lively and enthusiastic environment, without a sense of status within
the organization. This sense of belonging towards the company could lead to employee
satisfaction, and could be able to motivate employees to work and hence increase efficiency
of the business.
2. Listen to employees: Starbucks has a wellorganized communication channel for
employees. It places great importance on labour. For example, managers plan the working
hours per workers and arrange the schedule of time off, according to the workers’ wants in
order to meet their requirements. There are interviews weekly to see what employees’
needs are. The partners have the right to figure out what is the best policy for them, and the
directors show a respect for each suggestion. Starbucks even wants every employee to join
in making and developing plans, then work together in achieving their goals. As a result,
the policies and principles are communicated between all staff, and there is no limitation
in employees’ personal opinions.
3. Good welfare measures: All employees, including informal personnel, are offered
a great deal of welfare policies, for instance, commodities discounts for employees,
medical insurance (including health, vision and dental) and vacations. Moreover, the
partners who work over 20 hours a week are entitled to benefits.
 The management of Starbucks also covers different benefits for employees so that
they could satisfy their needs within the workforce. Medical care would also be provided
to employees. And their pay would have a certain increase as employees work for a period
of time or when more contributions are made to the business. Employees would receive
training in how to make coffee and how to deal with customers. In this case, employees in
Starbucks could be motivated to work in order to increase sales and being a profitable
business. (Hammers, 2003)
We could see that the Maslow’s hierarchy of needs could be also applied within
Starbucks’ motivation theories. The Starbucks management has provided benefits which
could achieve employees’ safety needs and love and belonging needs. Employees could
satisfy safety needs as they got medical care from the management. And as for the love and
belonging needs, they could be achieved by having every employee within the company
treat each other as their ‘friend’ or ‘partners’. Therefore, would enhance the sense of being
part of Starbucks. Employees could also satisfy their esteem needs as they could contribute
to the business and could be able to gain respect from others, and managers treated them
as important assets to Starbucks. Also, employees were trained not only in how to make
coffee, but also in how to treat and deal with customers. When customers are satisfied with
the services provided, employees could feel the confidence in providing good services
towards customers, hence, helps motivation within employees.
We could also see that there was extrinsic motivation within employees. The more they
contribute to the business, the more they get paid. So this consists of monetary aspects. On
the other hand, there could be intrinsic motivation as well, as all employees in Starbucks
had set a goal for themselves, which is to serve customers and earn profits.
4. Teamwork
Teamwork can not only construct a small social structure in organization for employees
to socialize, but also composite of various kind of members who equip with different
background of skill and knowledge on account of the mission. Each member plays an
important role in the teamwork; therefore everyone in that team can meet their need for
getting acquainted with different colleagues and learn new skill from each other. Hoegl &
Gemuenden (2001) observed that the definition of teamwork is a social system including
more than three people in an organization or context. These members identity others as one
member of the team and they have the same goal. Robbins (2001) stated that the factors
influencing teamwork are relation of leadership, roles, principles, status, size, composition
and the power of agglomerate.
4.1 The strategies to keep well relationship
Starbucks establishes a well-developed system to keep good relationship between
mangers and employees. At first, the leaders of a retail shops use the same title “partner”
as a basic level worker to narrow the gap of bureaucracy. Furthermore, they co-work in the
first line to eliminate the distance between different statuses. Secondly, the numbers of
employees are usually from three to six. Such a small size of a retail shop makes staffs
acquaint with each other easily and deeply. In the co-working period, this helps a team to
match different personalities and majors quickly to achieve well performance. Next, the
suggestions and complaints provided by employees are treated of equal importance. In the
same way, they have a right to participate in the process of revising company policies as
well as a manager. In that case, each staff thinks that they also play an important role in
company operating, and they can join to work out a direction of Starbucks. These give
employees not only a respect, but a sense of participation.
4.2 A goal of public welfare
Starbucks has endeavored to create “third place” (outside from home or office) for
people to take a rest (resource: wikipedia). They want to provide such a comfortable
environment to increase the harmoniousness of the society. Apart from this, Starbucks
contributes part of its profits to public service; on the other hand, it also set a goal to
improve and donate to the society. As a consequence, the aim makes all staffs have an idea
that what they do for Starbucks is for the society as well. As the goal theory, Starbucks set
a challenging and specific goal, and it permits all partners to decide the direction.
Afterward, employees embrace to do what they chose and they get some feedbacks form
the goal. The concept causes an increase of the power of agglomerate and enthusiasm in
relation with a positive effect to the profit of Starbucks.
5. Conclusion
Starbucks changes the behaviours and view points of global consumers to coffee, and
this successful example has caught global attention. Nevertheless, it was also a small retail
coffee shop in North American initially. Nowadays, it is not only one of the fastest growing
corporation, but also an outstanding business model with lower employee turnover rate and
higher profit performance. According to the case of Starbucks, it shows that motivation is
the key factor of a company policy; in other words, opposite to the principles of classical
management which only concerns about produce but ignore workers’ ideas. In recent
successful businesses, the appropriate management for labours should include financial
and emotional rewards. Besides, motivation and personal satisfaction should be put into
first rank. A good relationship between managers and employees could maintain a high
quality of performance. Just like Starbucks, to use the correct strategy would lead to a
successful path.
 https://starbuckswebsite.wordpress.com/motivation2/?fbclid=IwAR0tk5dps9FfUhyq1x
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1. Hammers, M. (2003, October 3), Starbucks is pleasing employees and pouring

profits. Retrieved from http://www.workforce.com/articles/7600
2. McWilliams, W. (2012). MGMT (2010-2012 edition). Mason, USA: South-Western
Cengage Learning
3. Hoegl, M & Gemuenden, H G (2001) Teamwork Quality and the Success
ofinnovative Projects: A Theoretical Concept and Empirical Evidence Organization
science,