BUS7B31 HRM In Context Sample

Introduction

Human Resource Management (HRM) and its decision-making in an organisation are very critical because it helps the entire corporation to improve their business accessibility and profitability in a strategic manner. In this relation, the following study has been focused on critically understanding the national and international market with the competitive environment of the selected organisation, among which Starbucks has been selected. Apart from this, a review of key external factors affecting the HRM will be attained with the help of STEEPLED analysis. Along with this, evaluating the approaches of HRM of the organisation will be constructed with the support of a theory. Moreover, a brief analysis will be structured where the response of HRM practitioners has been identified at organisational and strategic level.

Discussion

Key external factors and its impact on HRM

In order to undertake a review of key external factors affecting the HRM of Starbucks, STEEPLED analysis has been identified, which refers to all of the factors and impacts respectively.

Social

The social factor has found to be having a low impact on the HRM because Starbucks has been doing significant measures to overcome social challenges. From the STEEPLED analysis, there has been changing preferences in terms of income and benefits and work-life balance. This has the ability to easily influence the behaviour of employees that can directly have a contribution on the HRM and their decision making (Refer to appendix 1).

In relation to this, it has been analysed that the Starbucks work-life balance is found to be A+, as 939 employees have put a review of the company where 36% of Starbucks employees are found to be satisfied with their work-life balance (Comparably, 2022) (Refer to appendix 2). Apart from this, wellbeing at Starbucks is very blended as they are committed to welcome culture and connect with great support that helps to improve the work-life balance and their well-being to be happier and healthier.

Technological

It has been identified that technological factors have a medium impact on the HRM of Starbucks because several sustainable innovations are having a huge growth at Starbucks. They share with people positive aspirations and there has been a high level of innovation towards deploying new efficient hand handheld devices, storage, espresso machine, coffee brewing equipment and several others (Stories Starbucks, 2022).

At certain locations, cellphone order-ahead accounts for up to 20% of maximum requests, which reflects the innovation level in the company workplace (Zuckerman, 2020). Moreover, in terms of gamification, Starbucks has been improving their coffee buying experience with new concepts and rewards programs but the company is lagging behind in terms of gamifying human resources (Menon, 2020). Lack of gamification in human resources, might have an impact on the HRM of Starbucks due to which it has an implicating medium impact.

Economical

From the analysis, it has been identified that an economical factor is having a high impact on the HRM of Starbucks because there has been constant changes in the marketplace along with consumer demands and employee demands as well (Refer to appendix 1). However, it has been understood that Starbucks has been empowering people to live life well with health coverage, stock and saving, paid time off, parental leave, education, computer benefits, partner assistance and many others (Starbucks, 2022).

The online bachelor’s degree programme offered by Arizona State University, has been supported by Starbucks covering 100% of all schooling costs. Over 2,400 employees have completed the online bachelor’s degree programme and 12,000 currently enrolled (Zuckerman, 2020). Even though Starbucks and its HRM is doing a lot in terms of offering economical support, this factor is something which is constantly changing and it is essential for the organisation in order to improve the employability as per the changing market requirements, which is why it has a high impact on its HRM.

Environmental

Environmental factors are found to be having a high impact on Starbucks because there has been a constant changing initiative that is being taken by organisations in order to improve their CSR (Refer to appendix 1). Even though Starbucks is valuing their CSR by committing to recycling, energy, water, green building, climate change and others (Starbucks, 2022). However, in today’s environment, it has become extensively important for most of the employees and the staff to be working on those organisations who are having sustainability efforts and policy.

Undoubtedly, the company is taking effective decisions in planning to reduce carbon emission by 50% and reducing waste and manufacturing by 50% by the year 2030 (Warnick, 2020). Moreover, they are taking initiatives on plant-based food and beverages along with reusable packaging so a culture and promotion of CSR and sustainability among the workplace is sustainable (Warnick, 2020). In relation to this, even though the organisation and its HRM are taking decisions in terms of environmental factors, it requires more initiative to be taken into consideration to improve the HRM and its productivity.

Political

Political factors are having a medium impact on the HRM of Starbucks, as there has been changing employment laws and rules along with new government policies to comply and abide by. However, Starbucks has been operating in the marketplace for several years now and its income for the fiscal period that ended in June 2022 was $31.983 billion, a 17.94% raise over the previous year (Macrotrends, 2022) (Refer to appendix 3). Starbucks has been positioning itself and expanding to a higher extent in other international markets with their successful operation; it can be understood that the political aspects are being easily maintained and handled by the HRM of the organisation. However, with changing government bodies and political situation laws and regulation changes alongside, which is why it has a medium impact over the HRM of Starbucks (Rosenbloom et al. 2020).

Legal

From the analysis of STEEPLED, it has been discovered that the legal factor has a low impact on the HRM of Starbucks because the organisation has been operating in the international market for several years successfully with high profitability (Refer to appendix 4). Thus, from the understanding, it can be comprehended that HRM and their decision-making are quite evident due to which the organisation has been successfully operating along with having an improved sales alongside. Undoubtedly, there are several legal acts such as Equality Act 2010, Minimum Wage Act 1948, which are being maintained by Starbucks (Living our values, 2022). Due to completely abiding by the laws and successfully maintaining the workplace with the satisfaction rate of A+ as mentioned above, the company is quite evident in successfully maintaining legal requirements, due to which it has a low impact.

Ethical

From the analysis, it has been discovered that ethical factors have a high impact on the HRM (Refer to appendix 1). Starbucks has been discovered to have few privacy policies, which can help in ensuring the protection of the collected data and any other transmitted information with the organisation (Starbucks, 2022). However, in terms of ethical behaviour in the HRM of the company, it has been investigated that Starbucks has been sued by “Equal Employment Opportunity Commission” for overfiring disabled women (Business Human Rights, 2022). Due to disability in an individual, the employee has been fired, which is completely against their ethical behaviours of a company and it does not accommodate with the company value and policy (Jammaers, 2022). After this incident, it can be stated that ethical behaviour is needed to be accommodated in the organisational HRM decision-making, otherwise, it can have a negative impact on their HRM as well as organisation productivity.

Demographics

It has been identified that demographics is the final factor of the STEEPLED analysis, which is reflecting a high impact on the HRM on Starbucks (Refer to appendix 1). It has been determined that it is very important to have a racial and gender equality in the organisation with equal chances in training and development. In relation to that, Starbucks has announced that they are reaching 100% towards paying equally to the women and men all across its chains for similar work (BW People, 2022).

Along with strengthening the community with $5 million investments to be BIPOC youth and $1.5 million in neighbourhood for non-profit organisations and others are reflecting their CSR effectively (Stories, Starbucks, 2022). Thus, from understanding it can be stated that Starbucks is required to be abide by the organisational policy and commitments more effectively so that there will be no discrimination and inequalities happening further.

Evaluation of HRM strategy connecting with organisational strategy

In accordance with the studies of Almodovar (2022, p.24), it has been concluded that Starbucks has been using a significant human resource management strategy in their operational management. According to Starbucks Coffee’s HRM strategy, it has been observed that the organisational management gives partners and workers perks, including vision, health, and dental insurance. The company uses five major HRM strategies which provide them with the ability to enhance their quality of customer service and increase work performance within the workspace. The HRM strategies of Starbucks are stated as recruitment, training, mentoring, workplace violence, and disciplinary procedures (Taksa and Thornthwaite, 2022). The first primary strategy which is being followed by the Starbucks management in their HRM strategy is the concept of recruitment or selection of the employees. Therefore, it has been noted that Starbucks focuses on the recruitment policy which helps them to select the best individuals that are suitable for specific jobs in their organisation as per their demands (Azriuddin et al. 2020). For example, the company has been operating in more than 39 countries all around the globe and is focused on attracting the best talent to enhance their operations. As a result, the company has adapted to the strategy of the open recruitment process which allows them to attract the different and diverse type of candidates that are suitable for their organisational objectives.

The second primary strategy of Starbucks human resource management is to be focused on providing sufficient training, which enables them to provide adequate knowledge, competency and skills that are required to provide superior services to the consumers by the employees (Tian, 2022). Hence, it provides Starbucks with the ability to enhance their employees with the right skills, which provide them with the ability to undertake a specific job or an objective of an organisation responsibly. Therefore, it has been noted that this particular strategy provides Starbucks with the ability to maintain, upgrade, and update their employee’s skills as per the consumer’s demands (Dachner and Makarius, 2022). Apart from that the third aspect of Starbucks’ human resource management strategy is on focusing on limiting any type of workplace violence between the employees and employers. For example, it enables Starbucks to eliminate chances of violence between the managers and the employees of a particular outlet which can lead to dissatisfaction of the consumers. On the other hand, it also enables Starbucks to enhance their communication and training facilities and make their employees more comfortable in their workspace. As a result, it enhances the employee satisfaction rate of Starbucks which results in better productivity and performance from the workforce.

However, the remaining two strategies which are being adopted by Starbucks based on human resource management are discipline procedures in their outlets and mentoring. Hence, both of the human resource strategies of Starbucks provide them with an ability to control the efficiency and performance of the employees within their outlets (Azriuddin et al. 2020). It enables Starbucks to focus on important personal development and empowerment of the employees to maximise their potential in terms of customer service. Apart from that it also helps them to maintain the rules and relations which are being set by the organisation and management to the workforce to enhance their efficiency and work performance within the outlets resulting in greater customer service.

In this relation, this segment can be interrelated with “general system theory”, which emphasises on interrelation and independent parts of a human made system. It is very important in HRM that there should be bound space and time that can influence and be defined by the proposed structure of the environment (Ruben, 2018). Through this theory, the organisation can be able to change their pattern of behaviour as per the degree and adaptation of the environment while achieving a visible and transparent HR system.

From the understanding of Starbucks HRM strategy, it has been asserted that they are mostly focusing on quality of consumer service, sufficient training and enhancing employee’s skills, discipline procedures along with maintaining facilities. Through all of these, Starbucks is successfully interrelating their organisational strategy of premium and high quality services with offering a pleasurable and relaxing customer experience (Azriuddin et al. 2020). With the support of HRM strategy and its interrelationship with the competitive advantage, Starbucks is able to be successful with the organisation structures while offering the best possible proposition of becoming the third place for customers after their workplace (Mimoun and Gruen, 2021).

HRM practitioners response to national and international factors on operational and strategic level

From the above analysis, it has been discovered that the national and international factors are social factors, technological factors, economic factors, environmental factors, political factors, legal factors as well as demographic factors (Hossain and Shams, 2020). In terms of focusing on national and international factors while reflecting an implication on both operational and strategic level, Starbucks use product differentiation along with high quality offerings that improves the possibility of HRM to understand the interrelationship of organisational culture and values respectively (Tajeddini et al. 2020).

Apart from this, Starbucks focuses on recruiting onboarding along with managing workers with compensation benefits and wellbeing policy. Furthermore, Starbucks HR practitioner’s focuses on socio-economic factor with support mental fitness of the organisation with Partner Life, Bupa, Headspace, Mental Health Champion along with corporate wellbeing policy that is interrelated with the organisational values and beliefs (Vercida, 2022). Apart from this, Starbucks HR practitioners are resolving the issue of environmental and technological factors and with organising training programs and ensuring counselling and coaching along with focusing on being highly innovative (Latina et al. 2020).

Moreover, in terms of ethical and demographic factor, the organisational commitment and its action become quite contradictory towards firing disabled employees. On the other hand, the organisation is advancing a culture of inclusion, diversity and equality with achieving Black, Indigenous and People of Colour (BIPOC) representation (Stories Starbucks, 2022). Hence, from the evaluation of HRM strategy along with organisational strategy, it has been noticed that Starbucks is also focusing on workplace violence and disciplinary procedure, which is undoubtedly one of the key factors that needs to be adopted in organisation in order to maintain better workplace culture that can improve the HR to operate successfully (Azriuddin et al. 2020).

Conclusion

Based on the overall understanding and analysis, it can be stated that HRM decision-making in an organisation is mostly critical because it helps in adopting policies and decisions that can help a business to operate successfully. In this relation, STEEPLED analysis has been done where several different factors have been analysed while showing justification and impact. Apart from this, it is discovered that Starbucks is efficient in terms of HRM strategy and organisational strategy, which has been identified with the support of general system theory. From the understanding, it can be comprehended that in terms of national and international factors, HRM practitioners mostly focus on their internal aspects to improve the overall business procedure.

Reference list

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Appendices

Appendix 1: STEEPLED Analysis

(Source: Created by learner)

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