Question

Motivation is a vital factor for business in the production process. Laborers are not machines, and cannot always do the same task with equal passion. 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 honored about the value of Starbucks employees. Starbucks offers an interactive structure that makes personnel throw themselves into their job. 1) Equal treatment: The managers in Starbucks treat each employee equally and all of the staff are called partners even the supervisors of each branch. In order to narrow the gap between managers and employees, they also co work with the basic level staff in the front line. Due to this, they can maintain a good management system and create a much closer and more familiar atmosphere than other places. Not only do employees enjoy their job but customers are also affected by their enthusiasm. 2) Listen to employees: Starbucks has a well-organized communication channel for employees. It places great importance on labor. 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. Starbuck seven 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 employee’s 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. Starbucks also thinks that debt financing is not the best choice, thus it chooses to allocate stock dividends to all employees with a free script issue. By this policy, the employees can get benefits from the dividends of the company. Because of this, they have the same goal in other words, they are motivated to increase the sales to earn more profits. To Starbucks, the employees are the most important asset. 1) How does Starbucks keep its employees motivated?

Which motivational theories can be applied?

Answer 1

Answer - Starbucks does many things to keep the employees motivated. As mentioned in the question, starbucks calls it workers as "partners". Moreover facilities such as medical insaurance and vacations are provided to them.

Some of the motivational theories that can be applied are as follows -

1) Maslows theory of motivation- Fullfling psychological, safety, social, self- esteem, self actualization needs of employees motivates them.

2)Hertzberg’s two factor theory - This theory indicates that motivational factors such as achievement, recognition, responsibility and growth encourage employee to work more efficiently. Hygiene is also a motivation influencer at workplace.

3) McClelland theory of needs - Mcclelland theory indicates that employees have achievement, affiliation and power needs. Fullfilling these needs motivates employees.

4) Vroom’s theory of expectancy- Victor Vroom stated that people are very productive and motivated if they believe that their efforts will result in success and will be rewarded. This theory can be applied to motivate employees.

5) McGregor’s theory X and theory Y- Following this theory of motivation, viewing the employees in optimistic and pessimistic ways they could be motivated by rewarding them and providing them skills enhancement opportunities.

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