ob 2012 oct a2 phong - submit

BTEC HND IN BUSINESS (FINANCE) ASSIGNMENT COVER SHEET

NAME OF STUDENT Nguyễn Việt PhongREGISTRATION NO. F05-173UNIT TITLE Organisations and BehaviourASSIGNMENT TITLE StarbucksASSIGNMENT NO 2 of 2 (individual report)NAME OF ASSESSOR Mr. John AndreSUBMISSION DEADLINE 9th Jar 2013

I, __________________________ hereby confirm that this assignment is my own work and not copied or plagiarized from any source. I have referenced the sources from which information is obtained by me for this assignment.

________________________________ _________________________

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Assignment Received By: Date:

OB Assignment 2 Oct 2012 1

Unit Outcomes

Outcome Evidence for the criteria

Feedback Assessor’s decision Internal Verification

First attempt

Re-work

Understand ways of usingmotivational theories in

organisations

LO3

discuss the impact that different

leadership styles may have on motivation in

organisations in periods of change

3.1

compare the application of different motivational theories within the workplace

3.2

evaluate the usefulness of a

motivation theory for managers

3.3

Understand mechanisms

fordeveloping

effectiveteamwork in

organisations

LO4

explain the nature of groups and group behaviour within

organisations

4.1

discuss factors that may promote or

inhibit thedevelopment of

effective teamwork in organisations

4.2

evaluate the impact of technology on team functioning within a given organisation

4.3

Merit grades awarded M1 M2 M3

Distinction grades awarded D1 D2 D3


Outcome Evidence for the criteria

Feedback Assessor’s decision Internal Verification

First attempt

Re-work

Assignment

( ) Well-structured; Reference is done properly / should be done (if any)

Overall, you’ve

Areas for improvement:

ASSESSOR SIGNATURE DATE / /

NAME:

(Oral feedback was also provided)

STUDENT SIGNATURE DATE / /

NAME :

FOR INTERNAL USE ONLYVERIFIED YES NO

DATE :

VERIFIED BY :

NAME :


Organization and Behaviour Report

Prepared for: Mr. John Andre

Prepared by: Nguyễn Việt Phong ID: F05-173

Number of words: 3029

Course: Organisations and Behaviour

Banking Academy, Hanoi

BTEC HND in Business

Submit date: 9th Jar, 2013


Contents

Introduction................................................................................................................................63.1 Discuss the impact that different leadership styles may have on motivation in organisations in periods of change.............................................................................................7

3.1.1 Periods of change in case of Starbuck...........................................................................73.1.2 Leadership style of Howard Schultz..............................................................................73.1.3 Howard Schultz’s leadership style impacted the motivation of workers.......................8

3.2. Compare the application of different motivation theories within the workplace................8Maslow's theory......................................................................................................................8Herzberg's two-factor theory..................................................................................................94.1.1 Nature of groups..........................................................................................................104.1.2 Group behavior............................................................................................................11

4.2. Discuss factors that may promote or inhibit the development of effective teamwork in organizations............................................................................................................................114.3. Evaluate the impact of technology on team functioning within a given organization......12

4.3.1 The impact of Technologies on team functioning.......................................................13Conclusion................................................................................................................................14References................................................................................................................................15


Introduction

With the purpose of learning about Organization and Behavior, I have

conducted some researches in this assignment in order to show my understanding

about the module. This report is to write a report to show impact that different

leadership styles may have on motivation in organizations in periods of change in

Starbuck. Also it gives an overview about the usefulness of a motivation theory for

managers.

Furthermore, this report also identifies and assesses the ability of leaders and

mangers in two companies. The scope of this report includes:

Discuss the impact that different leadership styles may have on motivation in

organizations in periods of change.

Compare the application of different motivational theories within the

workplace.

Evaluate the usefulness of a motivation theory for managers.

Explain the nature of groups and group behavior within organizations.

Discuss factors that may promote or inhibit the development of effective

teamwork in organization.

Evaluate the impact of technology on team functioning within a given

organization.

To achieve the main goals of mentioned above, this report has gathered

information from many sources like the internet, books, as well as through the

newspapers and magazines


3.1 Discuss the impact that different leadership styles may have on motivation in

organisations in periods of change

3.1.1 Periods of change in case of Starbuck

Starbucks Corporation, one of the famous chains of retail coffee in the world,

mainly benefits from the roasting and selling special coffee beans and other drinks

coffee or tea drinks today. According to Starbuck, it was started by three friends are

Jerry Baldwin, Zev Siegl, and Gordon Bowker, who knew each other in the University

of Seattle in 1971. Since from activities with only one store in Seattle, Washington,

they had work quite effectively and experiencing many different period of changes.

One of the most important periods of change of Starbuck is when the original three

owners of Starbucks decided to sell their corporation to Howard Schultz in 1987,

their previous director of marketing and retail. And from that, Schultz has been the

owned the Starbucks brand and keeps the CEO position of the company. By his

leadership style, Schultz has made Starbucks brand is becoming increasingly

popular with 20,366 stores in 61 countries over the world.

3.1.2 Leadership style of Howard Schultz

Howard Schultz has been known as a CEO has leadership styles is

“Democratic” and “Coaching”. Howard expressed the democratic by made a well-

organized communication channel for employees in Starbuck. For example, Howard

allowed managers plan the working hours per workers and arrange the schedule of

time off, according to their wants to meet their requirements. There are interviews

weekly to see what employees’ need is. A special survey called ‘Partner View

Survey’ is taken off approximate every two years. The managers can receive

feedbacks through the event to which part should be improved or what issue should

be paid more attention to. Moreover, the “partners” have the right to figure out what

is the best policy for them, and the directors show a respect for each suggestion.

Howard even wants every employee to join in making and developing plans, then

achieving their goals all together. In addition, he is focused on developing employees

for company and has positive impact on overall culture of Starbuck also shown the

Coaching in his style. Example, Schultz created many training programs for both

new and old employees of the company such as Well-roundedness, Precise standards and Hands-on learning with very strict standards (gaebler.com, 2001). One of his positive impact on the overall culture of Starbucks is making


provisions about the managers in Starbucks treat each workpeople equally and all of

the staffs are called ‘partners’, even the supervisors of each branch are called it as

well. In order to narrow the gap between managers and employees, they also co-

work with the basic level staffs in the front line (freeonlineresearchpapers.com,

2006).

3.1.3 Howard Schultz’s leadership style impacted the motivation of workers

With those leadership styles, Howard Schultz made for employees in the

Starbucks a strong motivation to complete their work. Starbuck’s employees can feel

comfortable with works because they can choose times to do their work and even

have the right to propose to the leaders about the best policy for them. In addition, all

employees, including informal personnel, are offered a great deal of welfare policies,

for instance, commodities discounts for employees, medical insurance (including

health, vision and dentil) and vacations. Moreover, the most positive effect is that

Schultz has created a work environment which is very friendly and democracy

between employees and managers in the company. Therefore, employees feel

respected and enjoy working at Starbucks. Evidence is from Fortune magazine;

Starbucks was ranked the 11th best company to work for in 2005 in the USA and

then risen up in 2006 to 29th.

3.2. Compare the application of different motivation theories within the workplaceAt Starbucks, there are many theories used by leaders, but the most can be

clearly seen is the two theories of Maslow's hierarchy of needs and Herzberg's two-factor theory.

Maslow's theory Starbucks has met five levels of needs in Maslow's theory of motivation. In

that, the three lowest needs in turn are “Love/social needs, Safety needs and

Physiological needs”. Physiological needs are things which keep us alive such as

food, warmth, shelters, drink, etc; and safety needs are ones which give us security

and protection from threat. According to Starbucks.com, they provide to their

employees the Starbucks Total Pay package is called “Your Special Blend” to

ensure their employees can meet their physiological and safety needs. It include

Competitive pay , Insurance: medical, prescription drug, dental, vision, life, disability,


Bonuses, Paid time off, Retirement savings plan, Equity in the form of Starbucks

stock and discounted stock purchase plan, etc. In addition, all employees, including

informal personnel, are offered a great deal of welfare policies, for instance,

commodities discounts for employees, medical insurance (including health, vision

and dentil) and vacations. Actually, salary in Starbucks also helps its employees to pay food, house, and drink. Love/social needs are for relationship, belonging, is

satisfied through connected programs. According to Starbucks, there are more than

50 partner clubs and networks that help their partners share interests and find

work/life balance. These include recreational athletic leagues, foreign language clubs

and parenting resources such as Thrive Wellness Program, Elite Athlete Assistance

Program, Internal recognition programs, Career sabbaticals, etc. In this way,

employees had been met their needs.

Herzberg's two-factor theory With Herzberg’s theory, motivating factors is need for personal growth.

They’re including: Status, advancement, gaining recognition, being given

responsibility, challenging work, achievement, and growth in the job, etc. According

to Starbucks, they tried to create jobs satisfaction and motivate an individual to

superior performance and effort by many ways. Starbucks contributes part of its

profits to public service; on the other hand, it also set a goal to improve and donate

to the society. As a consequence, the aim makes all staffs have an idea that what

they do for Starbucks is for the society as well. Management also encourages its employees to give their ideas, opinions and suggestions to improve the company's operations to better serve customers and make employees feel that they are responsible in the company. They are also given opportunity to get

career advancement if they satisfy the requirements offered by Starbucks such as

working at least 12 months.

3.3 Evaluate the usefulness of a motivation theory for managers

Without motivation, individuals will become lazy and dependent. By

motivating employees, leaders are able to inspire people to work, individually or in

groups in the ways such as to produce best results in order to exert high levels of

effort towards organizational goals or induce the people to act in a desired manner. If

individuals can be motivated, by one means or another, they will work more

efficiently or will produce a better quality of work.


In Starbucks, Howard Schultz has used two motivation theories because not

all employees are motivated by the same thing and these theories helped him to

improve his employee’s work performance, enhance responsibilities with their work,

attract more talent for company and ensure that his employees are doing better

quality of work and satisfied with their job. More than that, it also helps in Starbucks’s

workers become more confident and able to contribute better ideas for company.

Therefore, motivating others is the most important of management tasks. In

other words, motivation is the key to performance improvement in workplace. For

Starbucks, the important thing is grasping and choosing the best appropriate

motivator factors to encourage extra performance from employees. It may comprise

good working environment, work relationships, job satisfaction ( by creating

challenges, interests, recognition, providing feedback, empowering, participating in

decision-making, increasing accountability, involvement, pay conditions), and non-

monetary rewards as well as incentives for employees.

Example, by using motivation theories, Starbucks has met their employee’s

needs and received appreciation for the work environment from employees. Actually

Starbucks is in the top 100 best companies to work with No.73 (money.cnn.com,

2012) and in list of World’s most ethical companies (ethisphere.com, 2012).

4.1 Explain the nature of groups and group behavior within organizations

4.1.1 Nature of groups

Group is defined as “several individuals, interacting and interdependent, who

have come together to achieve particular objectives”. In practice, groups are

everywhere in our society. It can be a basketball team, fellow - countrymen group,

fan groups, volunteer groups, or work groups at office, etc. When the people

interacting and working together, it helps individual and group goals can be easily

accomplished and fulfilled. For organisational environment, the work group is

establishing to become primary means in which managers can coordinate

individuals' behaviour in order to achieve organisational goals. However, working in

group is not a simple task and it is more complex when managers have a duty to

direct and coordinate interactions of groups within organisation. In other words, in an

organizational setting, groups are common entities and the study of groups as well

as group dynamics is an important area of study in organizational behavior.

In Starbucks, they are a huge group who have common interest and passion

for coffee beans and working for benefits of community are gathered to create a


group. There are more than 50 partner clubs and networks that help our partners

share interests and find work/life balance. Those are informal group, which some

people with common interests gather to share their interests about café, sports,

music, life, etc. However, Starbucks has a lot of small shops all over the world, so

the store does not seem to have many connections. Each small shop is one formal group. They work together, living together, towards one common goal. These

groups were created by the company to make a profit for them. Also, they have

some formal groups in their company such as: Advertising & Enterprise Sales,

Business Operations & Development, Finance, Human Resources.

4.1.2 Group behavior

In each groups, group behavior is affected by leadership and opinion of the

majority. In Starbucks, the nature of group and group behavior also affected by the

working culture and leadership styles. At Starbucks, not only managers make

decisions, but also the contribution from their employees. With his leadership style,

Schultz created for the employees a work environment of equality and fairness.

Manager in Starbucks also encourages their employees to give more ideas, opinions

and suggestions in group decisions. In a group, when all the members give their own

opinion, they will come together to choose a correct decision and implement it. This

makes the performance work groups become much more effective than the usual

group structure.

4.2. Discuss factors that may promote or inhibit the development of effective teamwork

in organizations

Similar to individual behavior, groups also behave in different way. In order to

help the Starbucks leaders manage and promote (as well as avoid the inhibition) the

development of effective team work in the organization, some of the factors should

be evaluated. According to Shanahan (2001), following are two factors that may

promote of inhibit the development of effective teamwork in Starbucks.

The first factor is “Training and experience in own job” which is an

important factor which promote the development of effective teamwork. This factor

means the training and experience that individuals have before joining teamwork. If

each team member has equal experience and ability, teamwork will be more

efficiently. In contrast with the group with poorly members, members of this group

will become a burden, they can rely on the group or putting false ideas, making

teamwork not achieve the results expected. So, in Starbucks, experience and


http://media.starbucks.com.edgesuite.net/dotcom/media/pdf/Partner_Connections_Club_Descriptions.pdf

training process has always been important. According to Starbucks, managers

receive at least 80 hours of training and a baristas receives 40 hours of training

before being allowed to make coffee. Each store of Starbucks is a group and has

teamwork, employees have good experience and training will give customers better

service and attract more new customers.

Second factor is “Workload and stress” which is an important factor which

inhibit the development of effective teamwork. This factor means the amount of

work that each member of the group must do .If the workload exceeds the capacity

of an individual; they will be stressful and reduce the effectiveness of teamwork.

Example, with Starbucks, they are a chain of retail stores very well-known and

popular. Therefore, there are a lot of customers to serve every day. But if there

encountered workload really large, the staff of the retailer will have to work too hard,

they will be stress. This time, the group conflict may arise, the team members can

become personalized, and one of them will rely for the group or leave the group. This

seriously affects teamwork and group performance. So, in a group, the distribution of

workload and how to makes employees to avoid stress is really important.

4.3. Evaluate the impact of technology on team functioning within a given organization.

Today, technology is an indispensable, and it has a lot of impact on the

activities of groups and organizations. Technology consists of many different types,

but today, technology has the most impact to the team functions in an organization is

Information and Communication Technologies (ICT). ICT have many modes of

information exchange and communication. In order to enhance effective work teams,

improve decision-making process, develop networks connection, adapt with

complexity of changes, and reduce costs of running business as well as travel,

Starbucks should adopt and implement information and communication technologies

in their business. Understanding how ICTs is used and what is the impact of ICTs on

team functioning that can assist the Starbucks leaders and their work teams in

choosing appropriate ICTs and formulating future plans to apply ICTs in workplace.

Example:

Face-to-face meetings/ conversation: using Yahoo, Skype…

Electronic email: using Gmail, Microsoft Outlook, Hot mail…

Social media: using Facebook, YouTube, and LinkedIn…


4.3.1 The impact of Technologies on team functioning

Because of the convenience of it, the technology has many good impact for

group functioning. There is in fact that our assignment’s group members do not

always work together at the same time and same place. Due to job conditions and

requirements of task, they have to move as well as the demand of information

exchange and communication between team members becomes more important

than ever. Geographical factors and technologies make the information exchange

and communication tasks become extremely difficult. When we conducted the

researches for the group assignment, thanks to the technology, we can

communicate with others easily using Skype, Yahoo Messenger, or Facebook.

Moreover, we can do the exercises together but not necessary to show all the time.

Once done our parts, we can send the results to the captain via e-mail, such as

Gmail, Hotmail, etc. Addition, by using technology to complete the work, it will help

members save time and costs, especially health care. Our technology also provides

a variety of information to learn about the Internet and we can take advantage of the

resources to make our work more effective.

However, using the technology still has some negative affect teamwork and

team performance. Work indirectly through the internet reduces the time direct

communication between each member, people become too dependent on the

internet and it would inhibit the effective work. Nowadays, the modern computer

technology can allow us to do many things at the same time on the computer, so it is

really difficult to control the other members of the team to focus on work instead of

playing games or surfing the webs. Moreover, modern technology has a lot of

weaknesses, such as when the power is failure; you cannot work and has the risk of

data loss or disclose important documents.

For example, Starbucks has also used technologies very effective, like in

Social Media to attract customers. According to “smallbusiness.chron.com”

Starbucks was able to use social technology to its advantage and bring customers

back to its stores by giving them an online space to submit ideas and provide

feedback on the brand and their experience with it or Starbucks launched a

nationwide mobile payment app in early 2011. The app is available for iPhone,

Android and Blackberry, and, according to a June 2011 article on "Mashable," it can

be used at 9,000 Starbucks locations (Amy Adkins, 2010).


Conclusion

In today's development environment of globalization and dynamic, whether working

in any industries, human is always the most important force that spells the success of any

workplace in the world. However, motivation is the key to getting work done. Importance of

motivation in a workplace helps the workers fully charge up their energy, focus their

attention on work a lot better than ever and give outcomes that are more excellence. For

leaders should know the art of motivating employees working under them and inspire a team

work hard to get what they expect out of human resource in the organization.

This part of the report was succeeded to some extent in my opinion. However, the rest

of the assignment has some limitations due to lack of expertise in doing research. In the next

assignment, I will put more effort in order to complete the working methods to improve the

quality of the outcomes.


References1. Fortune's 100 Best Companies to Work For 2011 (2011) Starbucks ranked No. 98. [online]

Available at: http://money.cnn.com/magazines/fortune/bestcompanies/2011/snapshots/98.html [Accessed: 9 Jan 2013].

2. Fortune's 100 Best Companies to Work For 2011 (2012) Starbucks ranked No. 73. [online] Available at: http://money.cnn.com/magazines/fortune/best-companies/2012/snapshots/73.html [Accessed: 9 Jan 2013].

3. Gaebler.com (2001) Starbucks Training Program - Training Workers. [online] Available at: http://www.gaebler.com/Starbucks-Training-Program.htm [Accessed: 9 Jan 2013].

4. Goodman, P. (2012) 'Something Is Wrong': Starbucks CEO Says Calls For National Job Creation Effort. [online] Available at: http://www.huffingtonpost.com/2012/06/29/starbucks-ceo-issues-open_n_1632674.html [Accessed: 9 Jan 2013].

5. Home.workforce.com (1996) Workforce Management : Login. [online] Available at: https://home.workforce.com/clickshare/authenticateUserSubscription.do?CSProduct=workforce&CSAuthReq=1:373487066173396:AID:AA96BB090A7A67F9C6258A001E3C109B&AID=20031003/NEWS02/310039973&title=Starbucks%20is%20Pleasing%20Employees%20and%20Pouring%20Profits&CSTargetURL=http://www.workforce.com/article/20031003/NEWS02/310039973/starbucks-is-pleasing-employees-and-pouring-profits [Accessed: 9 Jan 2013].

6. Mail Online (2012) Not exactly the best advert: CEO of Starbucks says 'best cup of coffee known to mankind' is made at home with a simple French press. [online] Available at: http://www.dailymail.co.uk/news/article-2130468/CEO-Starbucks-says-best-cup-coffee-known-mankind-home-simple-French-press.html [Accessed: 9 Jan 2013].

7. Small Business - Chron.com (2010) Starbucks & Its Use of Technology. [online] Available at: http://smallbusiness.chron.com/starbucks-its-use-technology-28272.html [Accessed: 9 Jan 2013].

8. Starbucks Coffee Company (2011) Working at Starbucks. [online] Available at: http://www.starbucks.com/career-center/working-at-starbucks [Accessed: 9 Jan 2013].


ob 2012 oct a2 phong - submit

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