If you want 10 days of happiness, grow grain. If you want 10 years of happiness grow a tree. If you want 100 years of happiness, grow people. -Harvey Mackay.

Introduction to Starbucks Company started in 1971 in Seattle, Washington Largest coffeehouse in the world Grew from 55 stores in 1989 to over 16,226 stores in 44 countries in 2008 Products sold include:- beverages - pastries - whole coffee beans - coffee-related retail items

Revenue - US$ 9.411 billion (2007) Employee 172,000 (2008)

Human Resource Management and the Growth ChallengeHuman Resource Management

Fortune Best Companies to Work For survey in January 2005 Employee friendly policies and supportive work culture Benefits program to part time workers

Challenges

Retention on Rapid Expansion Program Possible problems

Howard Schultz

Treat people like family , and they will be loyal and give their all.*In 2002, top 25 Managers of the Year by Business Week magazine *In 2004,Time 100, Time magazine's list of the most influential people of the 20th Century

Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow

*Provide a great work environment and treateach other with respect and dignity

*Embrace diversity as an essential component in the waywe do business *Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee *Develop enthusiastically satisfied customers all of the time *Contribute positively to our communities and our environment *Recognize that profitability is essential to our future success

Recruitment and Training Starbucks recruitment motto- To have the right people hiring the right people Training program- First Impressions Coffee making Science at Starbucks Three basic star skills Maintain and enhance self-esteem Listen and acknowledge Ask for help

Recruitment and Training Additional training to managers Details of store keeping Practices and procedures in Company operating manual Basics of managing people Outside training programs and seminars

Corporate objectives strategic plans, vision, and values

Business unit strategies How do we win (gain competitive advantage) in those businesses?

HR strategies

What business should we be in?

How should HR help us win? Strategic compensation decisions

Strategic Choices on Compensation

Compensation systems

Employee attitudes and behaviors

Competitive advantage

Strategic Compensation Decisions Objectives Alignment Competitiveness Administration

The Strategic Compensation Decisions Facing Starbucks1. Objectives: How should compensation support business strategy and be adaptive to the cultural and regulatory environment? Starbucks objectives: Grow by making employees feel valued. Recognize that every dollar earned passes through employees hands. Use pay, benefits, and opportunities for personal development to help gain employee loyalty and become difficult to imitate.

The Strategic Compensation Decisions Facing Starbucks2. Alignment: How differently should the various types and levels of skills be paid within the organization? Starbucks: De-emphasize differences. Use egalitarian pay structures, cross-train employees to handle many jobs, and call employees partners.

The Strategic Compensation Decisions Facing Starbucks3. Competitiveness: How should total compensation be positioned against our competitors? What forms of compensation should we use? Starbucks: Pay just slightly above competitors. Provide health insurance and stock options for all employees (including part-timers). Give everyone a free pound of coffee every week.

The Strategic Compensation Decisions Facing Starbucks4. Administration: How open and transparent should pay decisions be to all employees? Who should be involved in designing and managing the system? Starbucks: As members of the Starbucks family, our employees realize what is best for them. Partners can and do get involved. your special blend

Employees benefit programs Health benefits : Insurance coverage Employee ownership program(ESOPs) Bean stock plan : stock options to part timers Flexi time schedules Onsite fitness programs

Employees benefit programs(continued)

Child care and elder care assistance Working solutions Partner connection Perks : 30% discount and free coffee every week

Retention Retain small company atmosphere Spirit of friendliness Starbucks experience Encourage innovativeness Self managed teams Awards (warm regards, MUG, bravo & spirit of friendliness)

Work Culture and Motivation Work CultureProviding great work environment was integral part of mission statement

MotivationAwards, calling them partners

Motivated Employee

Reinforcement of mission statement

Motivation leads to innovation

Mission Review Programme No capitalization of job titles

Example: Frappuccinos, a popular cold coffee, was a result of the ideas of few employees

ChallengesTo maintain its image after expansion Human resource cost was very high High HR cost may get reflected in increased price of beverages Complain of loosing its attractiveness as the size was Increasing Increased awareness amongst other retail companies about the importance of HR policies leading to increased competition

THANK YOUPresented By: Gaurav DhananjayJ. Prabhu Gautam S.V. Geetanjali Upadhyay Hari Krishna Deep Kiran