REWARD APPROACH AT STARBUCKS

Reward Approach at Starbucks

Reward Approach of Starbucks

Introduction

In the recent years, the importance of Human Resource Management in an organization has increased substantially. The globalisation effects have impacted the business setup throughout the world, the competition has increased, the work boundaries have expanded, and the work nature has changed considerably. This has led to creating newer challenges for HR managers around the globe. The challenges include the changing world of work and the psychological contract, managing job design and flexibility, managing recruitment and selection, developing high performance working, managing retention and absenteeism, and managing work life balance and wellness of employees. With respect to these ongoing changes in human resource all over the world, it is important for companies to considerably focus on the human resource strategies especially to the ones related to employees reward and compensation. The strategies regarding reward can keep employees motivated which can ultimately enhance the performance of the employees, and thus the performance of the company improves. This chapter in connection to the study will review different dynamics of motivation and will present some of the prominent theories of motivation.

Background of the Company

The company officially started its operation during 1981; the said first operation had grown up to 10,000 cafés, in the US alone, and more than 5,000 cafés around the world. The popularity of the said brand enables the company to create a strong relationship with their customers, because its product and services had become part of the life of many of the aficionados of coffee in the world. Above all, the current position of the company makes the company as one of the most successful companies in the world (Read 2010, pp. 24-38).

Starbucks is considered as one of the most famous and most love brand in the world in any of the industry and market. The said brand literally moves beyond the walls of its traditional stores, offices as well as its roasting and production plant. Increasingly, more and more people, in places where in the company's stores are located, experience or at least heard about the brand. Furthermore, due to its global hits and phenomenon, it had become the success story of the 1990s. Starbucks renewed its quest for high quality coffee by offering fresh coffee that can be considered as different from the idea of the canned coffee products like what General Foods, Nestlé, Procter & Gamble and Jacobs offer. Howard Shultz, Starbucks president and CEO, has the theory that if you take care of your employees well, they will take care of your customers well (Starbucks Annual Report 2006, pp. 25-60).

Motivation

Motivation can be define in terms of specific behaviors. People who are motivated, they put more effort into achieving something than those who were missing. However, such comparative definition tells us little. The definition of a more descriptive and less formal, it is concluded that the motivation is the desire to do something, depending on the ability to fulfill the needs of the action of a given individual ...