{"id":216,"date":"2018-12-27T19:23:54","date_gmt":"2018-12-28T00:23:54","guid":{"rendered":"http:\/\/pressbooks.library.upei.ca\/smallbusinessmanagement\/chapter\/chapter-7-recruiting-motivating-and-keeping-quality-employees-exploring-business\/"},"modified":"2020-01-06T09:58:34","modified_gmt":"2020-01-06T14:58:34","slug":"chapter14","status":"publish","type":"chapter","link":"https:\/\/pressbooks.library.upei.ca\/smallbusinessmanagement\/chapter\/chapter14\/","title":{"raw":"Chapter 14: Employees","rendered":"Chapter 14: Employees"},"content":{"raw":"
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Recruiting, Motivating, and Keeping Quality Employees<\/h1>\r\n<\/div>\r\n
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The Grounds of a Great Work Environment<\/h2>\r\n

Howard Schultz has vivid memories of his father slumped on the couch with his leg in a cast.[footnote]Introductory material on Howard Schultz and Starbucks comes from Howard Schultz and Dori Jones Yang, Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time (New York: Hyperion, 1997), 3\u20138.[\/footnote] The ankle would heal, but his father had lost another job\u2014this time as a driver for a diaper service. It was a crummy job; still, it put food on the table, and if his father couldn\u2019t work, there wouldn\u2019t be any money. Howard was seven, but he understood the gravity of the situation, particularly because his mother was seven months pregnant, and the family had no insurance.<\/p>\r\n

This was just one of the many setbacks that plagued Schultz\u2019s father throughout his life\u2014an honest, hard-working man frustrated by a system that wasn\u2019t designed to cater to the needs of common workers. He\u2019d held a series of blue-collar jobs (cab driver, truck driver, factory worker), sometimes holding two or three at a time. Despite his willingness to work, he never earned enough money to move his family out of Brooklyn\u2019s federally subsidized housing projects. Schultz\u2019s father died never having found fulfillment in his work life\u2014or even a meaningful job. It was the saddest day of Howard\u2019s life.<\/p>\r\n\r\n

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\r\n\r\n[caption id=\"attachment_1389\" align=\"alignleft\" width=\"270\"]\"7.0.0\"<\/a> Howard Schultz toasts at the launch of their new \u201ceveryday\u201d brew, Pike Place Roast, April 8, 2008, in Bryant Park in New York City. CC BY 2.0.[\/caption]\r\n\r\n<\/div>\r\n<\/div>\r\n

As a kid, did Schultz ever imagine that one day he\u2019d be the founder and chairman of Starbucks Coffee Company? Of course not. But he did decide that if he was ever in a position to make a difference in the lives of people like his father, he\u2019d do what he could. Remembering his father\u2019s struggles and disappointments, Schultz has tried to make Starbucks the kind of company where he wished his father had worked. \u201cWithout even a high school diploma,\u201d Schultz admits, \u201cmy father probably could never have been an executive. But if he had landed a job in one of our stores or roasting plants, he wouldn\u2019t have quit in frustration because the company didn\u2019t value him. He would have had good health benefits, stock options, and an atmosphere in which his suggestions or complaints would receive a prompt, respectful response.\u201d[footnote]Schultz, H., and Dori Jones Yang, Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time (New York: Hyperion, 1997), 138.[\/footnote]<\/p>\r\n

Schultz is motivated by both personal and business considerations: \u201cWhen employees have self-esteem and self-respect,\u201d he argues, \u201cthey can contribute so much more: to their company, to their family, to the world.\u201d[footnote](Schultz & Yang, 1997)[\/footnote][footnote]Schultz, H., and Dori Jones Yang, Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time (New York: Hyperion, 1997), 138.[\/footnote] His commitment to his employees is embedded in Starbuck\u2019s mission statement, whose first objective is to \u201cprovide a great work environment and treat each other with respect and dignity.\u201d[footnote]Starbucks, \u201cOur Starbucks Mission Statement,\u201d Starbucks, http:\/\/www.starbucks.com\/about-us\/company-information\/mission-statement (accessed October 8, 2011)[\/footnote] Those working at Starbucks are called partners because Schultz believes working for his company is not just a job, it\u2019s a passion.[footnote]Starbucks, \u201cOur Starbucks Mission Statement,\u201d Starbucks, http:\/\/www.starbucks.com\/about-us\/company-information\/mission-statement (accessed October 8, 2011).[\/footnote]<\/p>\r\n\r\n

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Video Clip The Man Behind Starbucks Reveals How He Changed the World<\/h3>\r\nA major piece of the Starbucks success story has been the superior service provided by its motivated employees.\r\n\r\n \r\n\r\n<\/div>\r\n<\/div>\r\n

Human Resource Management<\/span><\/h1>\r\n<\/div>\r\n
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Learning Objective<\/h3>\r\n
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  1. Define human resource management<\/em> and explain how managers develop and implement a human resource plan.<\/li>\r\n<\/ol>\r\n<\/div>\r\n

    Employees at Starbucks are vital to the company\u2019s success. They are its public face, and every dollar of sales passes through their hands.[footnote]Schultz, H., and Dori Jones Yang, Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time (New York: Hyperion, 1997), 125.[\/footnote] According to Howard Schultz, they can make or break the company. If a customer has a positive interaction with an employee, the customer will come back. If an encounter is negative, the customer is probably gone for good. That\u2019s why it\u2019s crucial for Starbucks to recruit and hire the right people, train them properly, motivate them to do their best, and encourage them to stay with the company. Thus, the company works to provide satisfying jobs, a positive work environment, appropriate work schedules, and fair compensation and benefits. These activities are part of Starbucks\u2019s strategy to deploy human resources in order to gain competitive advantage. The process is called [pb_glossary id=\"984\"]human resource management (HRM)[\/pb_glossary]<\/a><\/span>, which consists of all actions that an organization takes to attract, develop, and retain quality employees. Each of these activities is complex. Attracting talented employees involves the recruitment of qualified candidates and the selection of those who best fit the organization\u2019s needs. Development encompasses both new-employee orientation and the training and development of current workers. Retaining good employees means motivating them to excel, appraising their performance, compensating them appropriately, and doing what\u2019s possible to retain them.<\/p>\r\n\r\n

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    Human Resource Planning<\/h2>\r\n

    How does Starbucks make sure that its worldwide retail locations are staffed with just the right number of committed employees? How does Walt Disney World ensure that it has enough qualified \u201ccast members\u201d to provide visitors with a \u201cmagical\u201d experience? How does Norwegian Cruise Lines make certain that when the Norwegian Dawn<\/em> pulls out of New York harbor, it has a complete, fully trained crew on board to feed, entertain, and care for its passengers? Managing these tasks is a matter of [pb_glossary id=\"986\"]strategic human resource planning[\/pb_glossary]<\/a><\/span>\u2014the process of developing a plan for satisfying an organization\u2019s human resources (HR) needs.<\/p>\r\n

    A strategic HR plan lays out the steps that an organization will take to ensure that it has the right number of employees with the right skills in the right places at the right times. HR managers begin by analyzing the company\u2019s mission, objectives, and strategies. Starbucks\u2019s objectives, for example, include the desire to \u201cdevelop enthusiastically satisfied customers\u201d as well as to foster an environment in which employees treat both customers and each other with respect.[footnote]Starbucks, \u201cOur Starbucks Mission Statement,\u201d Starbucks, http:\/\/www.starbucks.com\/about-us\/company-information\/mission-statement (accessed October 8, 2011).[\/footnote] Thus, the firm\u2019s HR managers look for people who are \u201cadaptable, self-motivated, passionate, creative team members.\u201d[footnote]CNNMoney, \u201c25 Top MBA Employers,\u201d CNNMoney, http:\/\/money.cnn.com\/galleries\/2007\/fortune\/0704\/gallery.MBA_employers.fortune\/14.html (accessed October 8, 2011).[\/footnote] Likewise, Disney\u2019s overall objectives include not only making all visitors feel as if they\u2019re special in a special place but also ensuring that employees\u2019 appearance reflects a special image (there\u2019s even a forty-seven-page book on the subject).[footnote]Vault, \u201cHow Disney Puts the Magic in Recruiting,\u201d Vault, http:\/\/www.vault.com\/nr\/newsmain.jsp?nr_page=3&ch_id=400&article_id=51875&cat_id=1083 (accessed May 6, 2006).[\/footnote] Disney looks for people who best fulfill these job requirements. The main goal of Norwegian Cruise Lines\u2014to lavish passengers with personal attention\u2014determines not only the type of employee desired (one with exceptionally good customer-relation skills and a strong work ethic) but also the number needed (one for every two passengers on the Norwegian Dawn<\/em>).[footnote]Career Prospects in Virginia, \u201cOverview of Careers on Cruise Ships,\u201d Career Prospects in Virginia, http:\/\/www3.ccps.virginia.edu\/career_prospects\/briefs\/PS\/SummaryCruise.shtml (accessed May 6, 2006).[\/footnote]<\/p>\r\n\r\n

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    Job Analysis<\/h2>\r\n

    To develop an HR plan, HR managers must obviously be knowledgeable about the jobs that the organization needs performed. They organize information about a given job by performing a [pb_glossary id=\"987\"]job analysis[\/pb_glossary]<\/a><\/span> to identify the tasks, responsibilities, and skills that it entails, as well as the knowledge and abilities needed to perform it. Managers also use the information collected for the job analysis to prepare two documents:<\/p>\r\n\r\n