Assignment 2: Providing Quality Service

Employee Turnover

Introduction

Starbucks organization was founded in the year 1971 in Seattle. Currently, the company has an approximate of 15,000 stores in 50 states. The company is believed to be the best in the production of coffee globally. Starbucks has become popular globally because of its products. The company started as a coffee restaurant and later developed to be the world largest producer of drinks and fast foods. Today, the company is has developed globally because of the large revenues it earns annually. The employee turnover in the industry has been extensive over the past 20 years; as a result, of the huge incomes the company receives from its clients. The company has employed different employees in different sections over the past 20 years. Today, the company still has numerous employees that have greatly enhanced the services of the company.

Describe the type of hospitality industry and its main categories of employees. 

Starbucks employs different categories of workers, from waiters to Human Resource Managers. However, the rate of employee turnover in the company has been high over the years. The company has employed, and sacked thousands of employees annually ever since it was developed. Today, the trend is still the same the job is in high demand. Despite lack of jobs, people have always been looking Starbucks and other hospitality as great opportunities to seek jobs. However, employee turnover has been greatly influenced by a number of factors. Employees in hospitality industries never last compared to the organization. This is discrimination of job opportunities because people are denied the right to work and the right to have happiness and joy rights. The right to have joy is mainly employed in the turnout of employees in the workplace (Hom & Griffeth, 2009).

Starbucks has reduced the rate of employees in order to save their developments. This factor is greatly contributing to negative effect that is gradually affecting the development of the economy. In addition to that, the turnover of employee is low because the salaries or the wages of the workers are high than in common organizations. Hospitalities in America reflect a low turnover of employees because there are no options by these organizations to create more opportunities to other people with the desire to work as employees. For instance, Starbucks employs and sacks people annually because they believe that it is the right method to expand the organization. There are different categories of employees such as waiters, accountants, cooks, managers, storekeepers, and Managers. However, the turnover remains high in this hospitality because the jobs are on demand (Hom & Griffeth, 2009).

Summarize three (3) primary reasons that turnover is so high in this industry. 

High employee turnover in these industries is, as a result, of different factors. Sometimes employees leave the organization because the salaries are low. In Starbucks, people quit to be employees because the salaries are low while the jobs are tiresome. Most employees in Starbucks never enjoy or have fun because they are always busy. This influences these employees to quit the job while others seek for the job. This has been a random and a recurring habit over the years ever since the company was developed. There are major reasons that explain why employee turnover is high in Starbucks organization. One of the major reasons is that productivity is not considerable because people do not have the prospect of development. It is evident that hospitality jobs do not satisfy workers. Employees are not given the chance to rest or develop themselves. This has affected most works to an extent of some leaving their relationship and marriages. This is a clear indication that the job satisfaction is unfortunate (Hodgetts, & Hegar, 2008).

Another reason is that employees are not given equal opportunities despite their social affiliation. It is clear that most workers are capable of doing other tasks if they are given the chance. However, over the years, waiters, accountants, and other employees in other positions have rarely been promoted to better levels. This has influenced more than a few issues because employees have worked in their same position ever since they were employed. This reduced the motivation of workers towards work and increases their turnover instead. Generally, workers in Starbucks are never motivated, and their competence can affect productivity. In general, it is evident that the current workers do not have the ability to enhance their outputs because they are never motivated. Lack of opportunities and promotion at work has forced workers to seek jobs in other organizations. This huge turnover has affected the performance of employees in the recent years (Hom & Griffeth, 2009).

The third reason for employee turnover in Starbucks organization is a lack of better salaries and loans. Clearly, employees at have always been demanding for better pay and increase of their chances to get loans, but the company has never fulfilled these promises. This has forced more than a few employees to quit their jobs because they are not given their rights as other workers. Since the employees are not entitled to loans, it is hard for them to attain socio-economic development. Starbucks has also never been categorized as one of the companies that offer good remuneration to its employees. For this reason, it is hard for the community to develop since almost each household never receives a form of considerable income. These policies have affected the company since many employees who want to work with the company cannot sustain their needs with the kind of services they give their employees. As a result, ethical practices have failed too built a positive image for the company that has failed to boost its productivity (Hodgetts, & Hegar, 2008).

Recommend one (1) method to address each of the three (3) primary reasons that turnover is so high in this industry. 

There are a number of methods that describe why employee turnover is high in the industry. The performance of the business clearly describes that the turnover is high. The productivity of the company has reduced. This has given other competitors such as McDonalds a good chance to enhance its revenues. In the recent years, research reviews that Starbucks Company has gradually reduced its performance because of the large turnover of employees. The company’s growth rate has reduced because most of the employees have given up working for the organization. This has affected the company because the number of employees has reduced with a very high rate. Other employees that join the company are also willing to give up because the company does not offer a better pay that can help employees meet their needs and demands (Hodgetts, & Hegar, 2008).

Recommend one (1) method to improve job satisfaction in general for this industry. 

There are numerous ways in which the company can enhance job satisfaction to employees and influence positive chance. First, there is a need to evaluate worker’s performance. A formal basic approach helps to evaluate employees on the basis of attendance, quality of work done, quantity of turnover and punctuality. The performance appraisal is used by the employees to provide employees with performance feedback. The performance feedback helps to improve the future turnover of the employees hence improving their motivation and satisfaction in the workplace. The tool can be used to determine whether an employee needs development through training. Some deficiencies in performance may be caused because the employee has inadequate skills and competences in the workplace. In this case, the management of the company should be advised to use performance appraisal to improve the performance of employees in the workplace. The use of performance appraisal also helps to validate internal and external affairs of the employees (Hodgetts, & Hegar, 2008).

The management of Starbucks company can use past performance of individual employees in an aim of improving their outcome. On the same token, performance appraisal is also used to transfer job responsibilities. The identification procedure of the best performing employees can be carried out hence being given specific tasks. Layoff decisions can also be used in regard to performance appraisal. When an employee shows a proof of in consisted performance, they should be laid off because they do not have any benefits to the organization. The performance appraisal is also used in making compensation decisions such as improving the salary for each employee. Consequently, the performance appraisal can be used as an opportunity to identify individual strengths and weaknesses in the workplace. Managers who use performance appraisal tools have improved performance in their workplace as compared to those who do not use the tool. The use of performance appraisal also improves the communication process in the workplace (Hom & Griffeth, 2009).

Conclusion

In summation, the use of performance appraisal will benefit Starbucks as compared to the disadvantages. A performance appraisal benefits the employer, employee and the organization. The performance appraisal can be used as a tool for improving performance of individual workers. The tool can also be used to communicate the expectation of the organization to the employees. Some of the expectations include the goals and objectives that should be attained at the end of certain time period. Although there are many performance appraisal methods that can be employed to organizations, the management by objective’s performance appraisal is the best tool for measuring the productivity of employees.

References

Hodgetts, R. M., & Hegar, K. W. (2008). Modern human relations at work. Mason, OH: Thomson/Southwestern.

Hom, P. W., & Griffeth, R. W. (2009). Employee turnover. Cincinnati, Ohio: South-Western College Pub.