Starbucks HR Policy

 THE STRENGTH & WEAKNESSES OF DIFFERENT APPROACHES TO RECRUITMENT & SELECTION

 There are two methods of recruitment – internal recruitment & external recruitment.

Internal recruitment is the process where an employment opportunity is filled from inside the business. Shift of position of existing employees , or inter-branch transfer of employees are the examples of Internal recruitment.

Strength of Internal Recruitment process:-

·        It aims to promote their employees and raise their morale support and work efficiency.

·        Such a decision of recruitment is not based without extensive planning, and effective judgment evaluation

·        Lesser training costs

Weakness of Internal Recruitment process:-

·        Such recruitment process is driven by strict HR rules and HR Policies.

·        The unclear rules can bring lot of confusions because of which the organization can lose its efficient employees.

External recruitment is the process to recruit for new organizations or when the internal applicants are not found appropriate or when it decides to get some younger groups , through advertisement, vacancy posts.

Strength of External Recruitment process:-

·        Younger blood

·        More employees can be evaluated

·        Lesser cost as lower remuneration can be given to fresher

Weakness of External Recruitment process

·        Extensive training cost

·        Risk of inefficient employee selection

·        Training time taken is loss to the organization

Let us take an example of a company eg: Starbucks Corporation.

Strength

1.     Founded in 1971, this           Seattle(Washington) based company aims to spread its outlets worldwide. It has outgrown itself to make itself an organization which aims to employ above 25,000 employee by 2025. By the progress chart enlisted below , we can see how efficient its employment target has been achieved..

2.     Starbucks has been named one of the world`s most ethical companies by the Ethisphere Institute.

3.     Importance has been given to the female employees and the minority sector for its recruitment purpose. The graph statistics are shown below-

   Weakness:

There are certain weaknesses that hold back the growth of Starbucks Corporation. Based on the SWOT Analysis, the weaknesses of the organization can be enlisted as follows:-

1.     High Price points: It has high price points that maximize profit margins but reduces the affordability of the product. This is a disadvantage because the areas having lower disposable income have difficulty in buying the products.

2.     Generalized Standards for most of the products: Most of the Starbucks products apart from the beverages (core product) are easily available in the market at cheaper prices. So setting high standard prices causes a disadvantage to them.

3.     Immitability of products: Most of the products it sells are imitable. As a results competitors can easily copy their designs and imitate their ambiences and sell the products at a lower range.

Explaining the benefits of different HRM practices within the organization for both employer & employee

Human Resources are the ones which give the organization a proper structure and the ability to fulfill business needs through managing company`s employees( Tsui, et al,1997). These teams though their body of knowledge and set of practices, define the nature of work and they regulate the job relationship.

Human Recourse Management(HRM) is the vital part of organization that is associated with the “people” dimension (Noe, et al,2006). These people are responsible for resolving issues with the line employees and those who are directly related to the production of goods & services. It aims to enhance productivity though bridging the gap of personal communication between the employee & the employer.

The benefits of different HRM Practices are:-

? Improved employee turnover

? Conflict resolution

? Employee satisfaction

? Improved employee performance

? Training & Development

? Helping Budgetary controls

A minority of employees may not want to be engaged and hence the organization would have to give particular attention to recruitment & communications like:-

     Informing them what is happening in the organization

     Involving them for decision making

     Allowing to voice their ideas to the manager

     Encouraging them to perform well

     Being concerned about their health & well being.

Employers who are successful engaging their employees observe activities throughout the employment cycle.

1.     Recruitment & Selection

It is more effective to select someone who can be a cultural fit to the organization.

Selection should be like- select job fit, career fit & cultural fit candidates.

2.      Orientation/on-boarding

The purpose of this is to help new staff settle into the jobs as quickly as possible.

When new staff joins the organization he/she should be guided towards workplace, health , safety and hygiene information, a clear understanding of the values & aims of the organization.

3.     Training & Development

Employees who receive work related training feel more positive about their long term career growth in the organization

4.     Recognition, compensation & benefits

The employees` worth should be appreciated with the right compensation payment in terms of the value.

Evaluating the effectiveness of different HRM practices in terms of raising organizational profit and productivity

To evaluate employee productivity as sanctioned by Human Resource management practice, as HRM practices have significant impact on employee outcomes particularly on productivity. Positive and significant effects are found for organizations that take over more deliberate planning , recruitment and selection strategies.

With regards to Starbucks Corporation, this entity takes sufficient steps for motivating their employees by way of incentive compensation programme, efficient and friendly work cultures, flexible working shifts etc.

·        The company aims to analyze its effectiveness by comparing performance to productivity levels.

·        Setting a benchmark, to evaluate the best productivity levels.

·        Relating to several theories & application of the HRM practices, it evaluates employee productivity.

Conclusion

HRM aims to design a management system which can manage the human talent to successfully achieve organizational goals. When it comes to recruitment of people , every organization aims to develop a set of people whose services can be acquired , their skills can be developed and they can be motivated to work towards a common goal for achievement of company`s objective.

Hence the efficient work done by the HR department would signify the growth of any organization. On a whole weighted average score of the responses shown by the employees of Starbucks Corporation has been showing a high level of satisfaction among the employees. Irrespective of the education, gender & designation, the respondent employees , more than ninety-five percent have strongly agreed with their job satisfaction over their roles.