MGMT603
nhaloean
AbuPPT.pptx
Organizational Culture: Starbucks
Abu I Sesay
American Military University
MGMT 603
Dr. E
September 18, 2021
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ORGANIZATIONAL CULTURE
INTRODUCTION
Organizational culture is represented by the value and belief systems that define an organization in its market operations. One prominent company to consider in understanding organizational research is Starbucks.
Starbucks an American multinational chain of coffeehouses and the world’s largest coffeehouse chain.
The application or exploitation of organizational management skills, practices, and tools is a key factor that leads to success or failure in business practice (odor, 2018). Starbucks coffee company is one of the largest American-based multinationals with wide global coverage.
scholars agree that Starbucks’ prominence and great achievements as a powerful multinational are partly driven by the company’s organizational culture. The development and expansion history of Starbucks offers a classical revelation and illustration of how good business practices and skills inspire organizational success.
Starbucks enjoys a prodigious organizational structure that enables the management and administration of the company to make decisions and actions that propel the company to success.
The company’s great emphasis and attention to customer and employee experience further posit the organization’s culture as a key strength and driver of success.
Diversity and inclusion, organizational management and leadership, collaboration and communication, openness, and a relationship-driven approach are key features of an organization’s culture that inspires great performance and success.
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REQUIRED STRUCTURE FOR ORGANIZATIONAL SUCCESS
A concrete, prodigious, and robust organizational structure is key towards the successful management or performance of a business enterprise.
As part of an organization’s structure, the management and leadership of a company are significantly essential in the success or performance of a business.
Poor leadership or management is a precursor for poor performance while efficient and excellent leadership is a motivating force for good performance (Suwinci, 2020).
Starbucks’ organizational structure emerges as one of the company’s key strengths as the firm.
Starbucks offers a hierarchical system of management that classically inspires prompt and effective administration of the firm. The duties and responsibilities of both senior and junior employees are well defined whereby the productivity and utilization of human labor are optimal
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STARBUCK’S ORGANIZATIONAL CULTURE MODEL
Starbucks organizational culture models a servant leadership approach (Ferguson, 2015).
As a style of organizational leadership, servant leadership entails an approach that places great value on the employee and inspires greater involvement and participation of junior workers in the management and running of a company.
With servant leadership approach, the company’s managers and leaders pay great attention to the needs and views of subordinate staff whom they classically assist during their work process.
Scholars agree that employees that are well cared for are the most productive agents within a firm (Tsai, 2011).
organizational leadership and management are a key force that propels or inspires company success or failure (Tsai, 2011).
As seen through Starbucks, the use of a suitable and appropriate leadership style coupled with a prodigious management structure enables effective administration and subsequent good performance and success of a business enterprise.
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DIVERSITY AND INCLUSION IN BUSINESS
In modern-day practice, diversity and inclusion have emerged as a key tenet of business practice which managers strive to promote as an effective approach that inspires better productivity, performance, and success of a company.
In the United States, Starbucks operates in a highly diversified market as the country draws people from multiple nationalities or ethnicities across the world.
As a multinational, diversity emerges as a key area of interest as seen through Starbucks culture.
Through inclusion, promoting diversity in business enables a company to enjoy benefits such as higher productivity, creativity, social acceptance, economic power, as well as diverse skills and mindset (Brown, 2017).
The world is one global village that shelters multiple social groups or human ethnicities.
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DIVERSITY AND INCLUSION AS TRIGERS OF ANTI-DISCRIMINATORY POLICIES
Due to benefits like higher productivity, creativity, social acceptance, economic power, as well as diverse skills and mindset , Starbucks maintains a culture that robustly seeks to preserve diversity and inclusion. For instance, the company has a strict anti-discrimination policy which is a key feature that symbolizes the firm’s culture (Ferguson, 2015).
Starbucks organizational culture prohibits any form of discrimination across any grounds such as race, ethnicity, disability, cultural attitudes, sexual and gender differences, as well as social status.
diversity and inclusion present an organization with a myriad of opportunities and strengths that propel a business towards satisfactory or well-performing levels (Brown, 2017).
Starbucks pays great attention to employees and is, therefore, a great advocate for inclusion in the workplace.
An organizational culture that greatly promotes diversity and inclusion is an effective pathway and business strength that aids in the success or good performance.
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ORGANIZATIONAL CULTURE THAT PROMOTES COMMUNICATION AND COLLABORATION
An organizational culture that aptly promotes and supports effective communication and collaboration is a precursor for business success or good performance.
The importance of communication and collaboration is greatly undeniable as poor structures or practices can induce poor performance or derailment of a business entity (Odor, 2018).
while communication and collaboration may emerge as a naturally occurring phenomenon in the workplace, scholars agree that an organization has a responsibility to develop effective and concrete systems and practices.
It is noteworthy that an effective communication culture or system in the workplace encourages the sharing and transfer of views, ideas, decisions, or instructions between junior and senior employees (Warrick, 2017).
As previously stated, the use of servant leadership at Starbucks classically supports the sharing and transfer of information or ideas between management and subordinate workers.
As a result of enabling and promoting communication, an organization enjoys such benefits as prompt decision making and the reception of input, which consequently results in the good performance of an enterprise.
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ORGANIZATIONAL CULTURE THAT PROMOTES COMMUNICATION AND COLLABORATION CONT’
Communication and collaboration augment each other as both promote greater interaction in the workplace.
Strong collaboration in the workplace inspires greater productivity as different employees work in cooperation. For instance, at Starbucks, different baristas communicate clearly and subsequently in order to fulfill customer orders.
Communication and collaboration thereby promote efficiency in business practice, hence inspiring greater organizational performance and success (Flamholtz & Randle, 2019).
A culture that promotes collaboration and communication in the workplace is thereby better placed and suited to achieve or perform successfully.
As a result of enabling and promoting communication, an organization enjoys such benefits as prompt decision making and the reception of input, which consequently results in the good performance of an enterprise.
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OPENNESS IS SIGNIFICANT WHEN INGRAINED IN AN ORGANIZATIONAL CULTURE
Openness is a major propellant for business success when well-ingrained in an organization’s culture.
Openness in business practice conventionally refers to the ease and ability to freely share and exchanges information with the workplace.
scholars agree that openness further encompasses the nature of being open to different ideas, styles, practices, skills, feedback, or opinions (Odor, 2018). Starbucks culture maintains openness as key to the organization's structure and operations which is classically responsible for the firm’s growth and prosperity in various markets.
Modern-day business practice deviates away from authoritarian systems and practices in favor of a culture that encourages or supports openness in the workplace.
Openness is a key principle that augments or promotes effective communication, hence indicating a great interdependence and relationship between the two (Lorne, 2020).
Starbucks culture foresees a two-way communication channel within the ranks of management and among employees thus creating an environment for fast, prompt, and effective exchange of information.
Openness enables the development of strong connections within an organization’s workforce which consequently inspires great achievement and productivity. In addition, Starbucks' openness policy further inspires economic prosperity by inspiring innovation. Encouraging workers to communicate ideas or seek new ways enables a business to remain competitive and pursue its objectives (Cropley & Cropley, 2017).
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RELATIONSHIP-DRIVEN APPROACH IS KEY TO ORGANIZATIONAL CULTURE
A relationship-driven approach is a key feature to Starbucks Coffee Company’s organizational culture which significantly aids in the overall performance of the business.
As seen through its website, Starbucks prides itself on more than fifty years of serving communities. The company goes beyond focusing on its product but extends its attention to maintain and build an experience where customers are well catered for and addressed.
There is a need for businesses to create and foster relationships as they operate in markets that are social spheres since human beings, factors, and issues affect business activities.
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RELATIONSHIP-DRIVEN APPROACH IS KEY TO ORGANIZATIONAL CULTURE CONT’
Besides customer experience, Starbucks also provides great attention to its partners, employees, and society at large (Ferguson, 2015)
In terms of social experience, Starbuck company’s involvement in charitable events or sponsoring social activities ensures it leaves a major footprint in society. In essence, the positive dedication to customer, employee, or society's experience and satisfaction characterizes Starbucks' organizational culture. As such, the company shows that an organizational culture that encourages a relationship-driven approach that addresses all vital stakeholders is a catalyst for business success.
CONCLUSION
organizational culture is a significant aspect of business practice.
A robust and prodigious organizational culture can inspire growth and success while an ineffective and weak culture can precipitate failure.
Starbucks’s case illustration shows how a robust and effective organizational culture can inspire business prosperity, success, or performance. As core features to an organization’s culture, diversity and inclusion, organizational management and leadership, communication and collaboration, openness, and a relationship-driven approach are major avenues that can inspire good business performance.
Starbucks Coffee Company remains a successful business enterprise due to its effective organizational culture.
REFERENCES
Brown, J. (2017). Inclusion: Diversity, the New Workplace & the Will to Change by Jennifer Brown. Publish Your Purpose Press.
Ferguson, E. (2015). Starbucks Coffee Company Organizational Culture. Panmore Institute. Retrieved 3 September, 2021 from http://panmore.com/Starbucks-coffee-comppany-organsational -structure
Flamholtz, E., & Randle, Y. (2019). Leading change at Starbucks coffee company. Leading Strategic Change, 86–98. https://doi.org/10.1017/cbo9780511488528.009
Lorne, C. (2020). The limits to openness: Co-working, design and social innovation in the neoliberal city. Environment and Planning A: Economy and Space, 52(4), 747-765.
Odor, H. O. (2018). Organizational culture and dynamics. Global Journal of Management and Business Research.
Suwinci, N. K. (2020). Influence of leadership and organization climate to organizational fairness and employee engagement. Journal of Advanced Research in Dynamical and Control Systems, 12(SP8), 173–186. https://doi.org/10.5373/jardcs/v12sp8/20202513
Tsai, Y. (2011). Relationship between organizational culture, leadership behavior, and job satisfaction. BMC Health Services Research, 11(1), 1-9.
Warrick, D. D. (2017). What leaders need to know about organizational culture. Business Horizons, 60(3), 395-404.
