Organisations and Behaviour Assignment 2

Nguyễn Thị Kiều Anh - Snow - F05014 BTEC HND IN BUSINESS (FINANCE) ASSIGNMENT COVER SHEET NAME OF STUDENT REGISTRATION NO UNIT TITLE ASSIGNMENT TITLE ASSIGNMENT NO NAME OF ASSESSOR SUBMISSION DEADLINE Nguyễn Thị Kiều Anh - Snow - F05A F05-014 Organisations and Behaviour Starbucks of (individual report) Mr John Andre 9th January, 2013 I, Nguyễn Thị Kiều Anh _ hereby confirm that this assignment is my own work and not copied or plagiarized from any source I have referenced the sources from which information is obtained by me for this assignment _9th January, 2013 Signature Date -FOR OFFICIAL USE (Course Administrator) Assignment Received By: Date: Nguyễn Thị Kiều Anh - Snow - F05014 Unit Outcomes Evidence for the criteria Outcome Feedback Assessor’s decision First attempt Understand ways of using motivational theories in organisations discuss the impact that different leadership styles may have on motivation in organisations in periods of change 3.1 compare the application of different motivational theories within the workplace 3.2 evaluate the usefulness of a motivation theory for managers 3.3 explain the nature of groups and group behaviour within organisations 4.1 discuss factors that may promote or inhibit the development of effective teamwork in organisations 4.2 evaluate the impact of technology on team functioning within a given organisation 4.3 LO3 Understand mechanisms for developing effective teamwork in organisations LO4 Merit grades awarded M1 M2 M3 Distinction grades awarded D1 D2 D3 Assignment ( ) Well-structured; Reference is done properly / should be done (if any) Rework Internal Verification Nguyễn Thị Kiều Anh - Snow - F05014 Evidence for the criteria Outcome Feedback Assessor’s decision First attempt Rework Overall, you’ve Areas for improvement: DATE ASSESSOR SIGNATURE / / / / NAME: (Oral feedback was also provided) STUDENT SIGNATURE DATE NAME : FOR INTERNAL USE ONLY VERIFIED YES NO DATE : VERIFIED BY : NAME : ORGANIZATIONS STRUCTURE, CULTURE Internal Verification Nguyễn Thị Kiều Anh - Snow - F05014 Prepared for: Lecturer, Mr John Andre Organization and Behaviors Banking Academy, Hanoi BTEC HND in Business (Finance) Prepared by: Nguyễn Thị Kiều Anh - Snow - F05A Registration No ITPF05-014 No of words: 2833 Submission date: 9th January, 2013 TABLE OF CONTENTS Nguyễn Thị Kiều Anh - Snow - F05014 INTRODUCTION This assignment helps learner understand ways of using motivational theories and mechanisms for developing effective teamwork in Starbucks Starbucks Corporations is an American global coffee company and coffee house chain which is established in 1971 Nowadays, it owns about 4,000 branches in the whole world and is considered as one of the most rapidly growing corporations in American as well (Scenario, 2012) Through the analysis of Starbucks company, learner can know exactly the impact that leadership style many have on motivation in period of change, application of different motivational theories within the workplace, useful of motivation theory, nature of groups and group behavior, factors that may promote or inhibit the development of effective teamwork, and know impact of technology on team functioning within the organization as well This report based on many resources on internet, books to compare, explain, evaluate problems which are relevant to motivation theories of Starbucks and especially give some evidences to prove my opinion, my ideas is right Nguyễn Thị Kiều Anh - Snow - F05014 CONTENTS III Understand ways of using motivational theories in organisations 3.1 Discuss the impact that different leadership styles may have on motivation in organisations in periods of change Leadership style involves essentially people-centred activities, with effects potentially beyond the scope of controlled performance A leader’s special function is to create a vision, communicate the vision, energise, inspire and motivate, and create the culture (BPP, 2010) There are a number of different leadership styles that a manager of a company can choose to approach, and motivate their employees Different styles were needed for different situations and each leader needed to know when to exhibit a particular approach (Anon, 2002) Therefore, as a leader, it is very important for them to understand and adopt leadership styles for motivation in periods of change of their organization In order to understand more clearly about impact of different leadership style in motivating enterprises in periods of change, the analysis below is about two leadership styles that Starbucks used in their business in the period of rapid globalization, these are democratic and servant a Democratic Because of rapid globalization in recent years, Starbucks face many intensely competitions in over the world Therefore, the key to succeed in Starbucks’ enterprise is Nguyễn Thị Kiều Anh - Snow - F05014 not only the products’ quality but also creating work environment and enhancing human resources’ role to motivate their employees At Starbucks, the managers treat their employees equally Specifically, in order to narrow the gap between managers and employees, they co-work with the basic level staffs in the front line and call each other is “partners” whatever their position (Scenario, 2012) This built a good relationship among members of the company and create friendly atmosphere to help employees feel comfortable and only focus on contributing to the company Furthermore, the managers also listen to their employees It is expressed in decision-making process Employees is took part in meeting and speak out their ideas while leaders know listening, respect for the contrary opinion and share information with subordinates According to scenario, Starbucks wants every employee to join in making and developing plans, then achieving their goals together More than over, it encourages employees to give their opinion, create an opportunity to promote the capability of individual, and motivate their creativity Especially, employees will feel them have more values within the organization As a result, according to Fortune magazine, Starbucks was ranked the 16 th best company to work for in 2007 in the USA In the same year, Starbucks was also voted as one of the top ten UK workplaces by the Financial Times (starbucks, n.d.) b Servant Perhaps most importantly, servant leadership focuses on serving all stakeholders in the corporation This includes employees, customers and the community in general (investopedia, 2012) Starbucks serve their employees to motivate and help them to have chance of using their talents to help organizations best in serving society because employees is people who always approach customers and realize what customers really need Specifically, 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 dentil) and vacations The partners who work over 20 hours a week are entitled for benefits (Scenario, 2012) As well as the style above, employees are also considered as core values, and most important asset of Starbucks All positive policies also have one purpose is to help employees feel satisfy and happy so that they dedicate their best to the organization through listening and connection to customers to help firm remain competitive advantage in market Moreover, Starbucks also 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 result, the aim makes all staffs have an idea that what they for Starbucks is for the society as well Nguyễn Thị Kiều Anh - Snow - F05014 (ukessays, n.d.) This makes staff love more their work, and inspire enthusiasm Thanks to this, firm’s profit turned loss into gain and continue growing the recent years Specifically, firm’s sales growth of 7% and total net revenue increase 15% in fiscal second quarter 2012 (news.starbucks, 2012) 3.2 Compare the application of different motivational theories within the workplace a Application of Maslow’s theory Maslow divided human need into five levels; from bottom to top of Maslow’s hierarchy of need are physiological needs, safety needs (basic needs), and love/social needs, esteem needs, self-actualization (meta needs) • Physiological needs: Starbucks’s employees receive free “behind the counter” drinks while they are on shift or ½ hour before and after shift This included brewed coffee, espresso drinks, and cold drinks Starbucks’s employees also receive one free pound of coffee a week for personal use When not working, they receive a 30% discount on all beverages or merchandise, this same discount applies to pre-bottled drinks and food items while on shift (John, 2006) • Safety needs: All employees are offered medical insurance (including health, vision and dentil) Starbucks pay for a fair salary to help workers feel safe in their financial life Moreover, they allocate stock dividends to all employees with a free scrip issue for getting benefits from it (Scenario, 2012) • Love/social needs: The firm create a friendly work environment with many social welfare activities so that their employees build good relationships with each other • Esteem needs: Starbucks respect employees’ ideas by listening to them and recognize their achievement by giving reward, bonus for their effort • Self - actualization: Starbucks encourages their employees in making, developing and implementing the plan to promote their ability, good performance and reach the company’s goals as well (Scenario, 2012) Nguyễn Thị Kiều Anh - Snow - F05014 b Application of Herzberg’s Two-Factor theory This motivation theory is divided into two factors; these are Environmental/Hygiene factors (job dissatisfaction) and Motivator factors (job satisfaction) • Environmental factors - Starbucks always creates a cozy environment for their employees and customer as well - The firm focus on work - life balance for their employees by offer vacations, break time - Starbucks provided medical insurance (including health, vision and dentil) and always adjust salary to ensure that they provide a fair salary to help them feel safe in financial life and contribute their best for the company’s goals - They encourage employees work in team, and take part in social welfare activities to enhance and improve solidarity For instance, Starbucks established community services One of them called ‘April was our global month of service’ to provide volunteer opportunities for employees promote spirit, improve solidarity and contribute to communities • Motivator factors - Starbucks respect employees’ ideas by listening to them and recognize their achievement by giving reward, bonus for their effort - The organization holds a contest such as Coffee Master to create a chance to the employees challenge themselves - Starbucks encourages their employees in making, developing and implementing the plan to promote their ability, good performance 3.3 Evaluate the usefulness of a motivation theory for managers At Starbucks, Herzberg’s theory is considered as one of motivation theories which managers prefer to apply for the workplace because of its effectiveness The effectiveness of the application this theory can be expressed through levels of job satisfaction and productivity of workers The analysis below will make more clearly Nguyễn Thị Kiều Anh - Snow - F05014 about usefulness of Herzberg’s theory through two factors: environmental factors and motivators factors About environmental factors, Starbucks have many motivation policies so that its employees can work in the best working conditions Firstly, Starbucks has created a great work environment which motivates and encourages employees’ contribution Due to this, their employees feel a much closer and more familiar atmosphere than other place and reach work-life balance (Scenario, 2012) Secondly, Starbucks regularly adjust their salaries to ensure that it is competitive salary so that their existing employees are not tempted to go elsewhere, and attract more talent people (starbucks, n.d.) Thirdly, interpersonal relations are fostered through working process in a team and public welfare activities Therefore, teamwork and relationships among colleague are be strengthened Besides, Starbucks also fulfil motivator factors effectively Starbucks has acknowledged the role of their employees when they offer every employee join in making, developing plans and speak out their ideas As a result, there is no limitation in employees’ personal opinions For this reason, business can improve their strategies even innovate by different ideas Additionally, one of the career advancement ways at Starbucks is to achieve the title ‘Coffee Master’ Employees have to go through a lot of competition as well as participate in training course to get this title It is considerable as a chance for employees challenge themselves Moreover, the company reward their employees when they well in their work All things help managers motivate employees contribute their best for the company Thanks to implement effectively two factors above, the number of clients and revenue of the company is more and more increasing Nowadays, there are more than 7,500 Starbucks in hundreds of cities, in 25 countries around the world Currently, each week Starbucks sold more than 20 million cups of coffee, with revenue reached tens of millions of dollars Specifically, the total revenue increased 11%, reaching a record $3.36 billion, the highest level ever in November, 2012 (businesseconomics, n.d.) It is undeniable that Herzberg’s theory has positive effect on management at Starbucks Therefore, Starbucks’s leader realizes that motivating employees is the key of the business’s success “Employees are the most important asset of Starbucks” (Scenario, 2012) 10 Nguyễn Thị Kiều Anh - Snow - F05014 IV Understand mechanisms for developing effective teamwork in organisations 4.1 Explain the nature of groups and group behaviour within organisations A group is any collection of people who perceive themselves to be a group A group has some certain features that make it different from team or any other “crowed”, including a sense of identity, loyalty to the group, and purpose and leadership (BPP, 2010) Two types of groups • Formal group: is people are put together by organization to serve a specific purpose, leader may be chosen within the group, but are typically given authority by the organization • Informal group: includes people who get to exchange information with purpose relate to group, individual member satisfaction (BPP, 2010) Tuckman (2001) identifies four stages in group development • Forming (first stage): As a collection of individuals, each group member tries to find out about each other, and the aims and norms and the purpose of the group • Storming (second stage): It involves conflicts occur because of members’ own ideas and attitudes It may encourage disagreement, creativity, and changes in the group’s objective, leadership, procedures, and norms • Norming (third stage): As a period of settling down, there are agreements about work sharing, output levels and group customs • Performing (fourth stage): The group members concentrates on its task and performance because the difficulties of growth and development no longer get in the way of the group’ task objectives (BPP, 2010) For Starbucks, like other company, they prefer informal working groups because with informal group, all the employees can discuss and share ideas to each other easily In order to the projects can be implemented effectively, and reach company’s objectives quickly as well, Starbucks also concern more process of group formation to form strong group Each stage always does not follow in a clearly-defined progression so adjusting timing of each stage to suitable for company’s objectives is very important For example, when the task must be performed urgently, the first stage should be taken place in a short time to spend much time for important middle stages 11 Nguyễn Thị Kiều Anh - Snow - F05014 One of important thing about group behaviour is groupthink It is considered as one phenomenon of group behaviour Groupthink is the norm for consensus overrides the realistic appraisal of alternative course of action (Bezroukov, n.d.) It has both advantages and disadvantages Its advantages is that group members always agree with the whole group so the decision making process become faster However, if all members have the same thinking, and not speak out their own ideas, there is no creativity in plans As a consequence, the plan may not succeed as expected For Starbucks, they always encourage employees contribute their ideas, creative thinking, join in making and developing plans to achieve their goals all together (Scenario, 2012) 4.2 Discuss factors that may promote or inhibit the development of effective teamwork in organisations It can be said that there are two main factors that can promote the effective of teamwork in organization, namely great work environment and good motivation policies At Starbucks, teamwork performance is boosted because of work environment - Equal, respectful treatment: The managers of Starbucks treat each workpeople equally and respectfully; all of the staffs are called ‘partners’, opening communication between members to create the good relationship among the member of a team - Idea sharing: Starbucks encourages employees speak out their ideas, exchange information with each other, joins in making and developing plans (Scenario, 2012) Motivation policies are considered as key factors to encourage their team members - All employees, including informal personnel, are offered a great deal of welfare policies: commodities discounts for employees, medical insurance (including health, vision and dentil) and vacations - Besides, team members receive bonuses, rewards for their effort to reach the company’s objectives (Scenario, 2012) All these things have positive influences on satisfaction of members in a team so that team goals as well as company’s objectives can be reached effectively As a result, Starbucks was voted as one of top ten UK workplaces by the Financial Times in 2007 (Scenario, 2012) Its total revenue increased 11%, reaching a record $3.36 billion, the highest level ever in November, 2012 (businesseconomics, n.d.) 12 Nguyễn Thị Kiều Anh - Snow - F05014 4.3 Evaluate the impact of technology on team functioning within a given organisation At Starbucks, technology has a significant effect on many different aspects of team functioning Firstly, by applying modern technology, Starbucks can set up an intranet With intranet, the company can update information about stated plans and schedule assigned tasks to each team, each department, it also allows employees view reports relevant to some changes of the company, or know their specific role, and responsibilities Especially, with wifi network, team members can access data from anywhere in the company through their own computers, therefore, performing the task become more quickly and conveniently Secondly, it is said that technological devices such as laptops, tablets, projectors, printers is used commonly at Starbucks They are very useful in meeting, conferencing, and even other simple activities of employees For instance, projectors can connect to computers to present slides containing information, data and exploiting the strengths such as colour effects, and animation as well, the information can be conveyed effectively to partners Finally, Starbucks is a multinational company so connecting with colleagues, partners and customers from anywhere in over the world is very necessary The term virtual team appear to meet this demand A global virtual team can be defined as “a temporary, culturally diverse, geographically dispersed, electronically communicating work group” (BPP, 2010) In other word, it allows people from different nations with geographical boundaries are joined together in a team, can work together without face to face The fact is that thanks to modern technology, Starbucks are more and more growing both domestic and international market 13 Nguyễn Thị Kiều Anh - Snow - F05014 CONCLUSION This report can be helpful resources to help people, especially students can understand deeply about “Organization and Behaviour” subject through analysis specific company Starbucks It shows that by understanding and adopting democratic and servant leadership styles, Maslow’s theory and Herzberg’s two - factor theory as well, the CEO of Starbucks has really succeed in motivating and encouraging their employees Furthermore, the company recognize the important role of teamwork and always find out ways to develop informal work group Finally, being aware of that modern technology is an indispensable part of any company; Starbucks always uses effectively the advantage of modern technology in teamwork It is undeniable that the key to succeed of Starbucks is due to their effective strategies in “organization and behaviour” In general, with more understanding of organization and behaviour will help company to have the correct orientation to develop the company 14 Nguyễn Thị Kiều Anh - Snow - F05014 REFERENCES Anon (2012) Leadership styles (n.d.), [online] Available at: http://changingminds.org/disciplines/leadership/styles/leadership_styles.htm [Accessed: 2012] Anon (2012) Styles of leadership, [online] Available at: http://www.essortment.com/stylesleadership-36149.html [Accessed: 2012] Bezroukov, N (n.d.) Groupthink, [online] Available at: http://www.softpanorama.org/Skeptics/groupthink.shtml BPP Professional Education (2004) Organisations and Behaviour, 1st ed., London: BPP Professional Education Aldine House, Aldine Place investopedia (2012) What is servant leadership?, [online] Available at: http://www.investopedia.com/articles/financialcareers/10/servant-leadership.asp [Accessed: 09 April 2012] John (2006) Does Starbucks employee get to drink free coffee? [online] Available at: http://vn.answers.yahoo.com/question/index?qid=20070621062900AAjdOR6 [Accessed: 2006] news.starbucks (2012) Starbucks Reports Record Second Quarter Fiscal 2012 Results, [online] Available at: http://news.starbucks.com/article_display.cfm?article_id=651 [Accessed 26 April 2012] Scenario (2012) Scenario - Starbucks Corporation Starbucks (n.d), [online] Available at: http://www.starbucks.com/ ukessays (n.d.) Starbucks Corporation Case Study in Motivation and Teamwork, [online] Available at: http://www.ukessays.com/essays/business/starbucks-corporation-case-study-inmotivation-and-teamwork-business-essay.php 15 [...]... 09 April 20 12] John (20 06) Does Starbucks employee get to drink free coffee? [online] Available at: http://vn.answers.yahoo.com/question/index?qid =20 070 621 0 629 00AAjdOR6 [Accessed: 20 06] news.starbucks (20 12) Starbucks Reports Record Second Quarter Fiscal 20 12 Results, [online] Available at: http://news.starbucks.com/article_display.cfm?article_id=651 [Accessed 26 April 20 12] Scenario (20 12) Scenario... in “organization and behaviour In general, with more understanding of organization and behaviour will help company to have the correct orientation to develop the company 14 Nguyễn Thị Kiều Anh - Snow - F05014 REFERENCES Anon (20 12) Leadership styles (n.d.), [online] Available at: http://changingminds.org/disciplines/leadership/styles/leadership_styles.htm [Accessed: 20 12] Anon (20 12) Styles of leadership,... understand deeply about “Organization and Behaviour subject through analysis specific company Starbucks It shows that by understanding and adopting democratic and servant leadership styles, Maslow’s theory and Herzberg’s two - factor theory as well, the CEO of Starbucks has really succeed in motivating and encouraging their employees Furthermore, the company recognize the important role of teamwork and. .. at: http://www.essortment.com/stylesleadership-36149.html [Accessed: 20 12] Bezroukov, N (n.d.) Groupthink, [online] Available at: http://www.softpanorama.org/Skeptics/groupthink.shtml BPP Professional Education (20 04) Organisations and Behaviour, 1st ed., London: BPP Professional Education Aldine House, Aldine Place investopedia (20 12) What is servant leadership?, [online] Available at: http://www.investopedia.com/articles/financialcareers/10/servant-leadership.asp... Understand mechanisms for developing effective teamwork in organisations 4.1 Explain the nature of groups and group behaviour within organisations A group is any collection of people who perceive themselves to be a group A group has some certain features that make it different from team or any other “crowed”, including a sense of identity, loyalty to the group, and purpose and leadership (BPP, 20 10)... satisfaction (BPP, 20 10) Tuckman (20 01) identifies four stages in group development • Forming (first stage): As a collection of individuals, each group member tries to find out about each other, and the aims and norms and the purpose of the group • Storming (second stage): It involves conflicts occur because of members’ own ideas and attitudes It may encourage disagreement, creativity, and changes in the... (Scenario, 20 12) All these things have positive influences on satisfaction of members in a team so that team goals as well as company’s objectives can be reached effectively As a result, Starbucks was voted as one of top ten UK workplaces by the Financial Times in 20 07 (Scenario, 20 12) Its total revenue increased 11%, reaching a record $3.36 billion, the highest level ever in November, 20 12 (businesseconomics,... thinking, and do not speak out their own ideas, there is no creativity in plans As a consequence, the plan may not succeed as expected For Starbucks, they always encourage employees contribute their ideas, creative thinking, join in making and developing plans to achieve their goals all together (Scenario, 20 12) 4 .2 Discuss factors that may promote or inhibit the development of effective teamwork in organisations. .. exchange information with each other, joins in making and developing plans (Scenario, 20 12) Motivation policies are considered as key factors to encourage their team members - All employees, including informal personnel, are offered a great deal of welfare policies: commodities discounts for employees, medical insurance (including health, vision and dentil) and vacations - Besides, team members receive bonuses,... objective, leadership, procedures, and norms • Norming (third stage): As a period of settling down, there are agreements about work sharing, output levels and group customs • Performing (fourth stage): The group members concentrates on its task and performance because the difficulties of growth and development no longer get in the way of the group’ task objectives (BPP, 20 10) For Starbucks, like other