Assignment No.

Subject: Organizational Behaviour Dated: May 18th, 2020

Submitted By:
Muhammad Fahad Zafar FA17-BBA-103
Muhammad Hasseeb Hassan FA17-BBA-106
Muhammad Maaz Ashar FA17-BBA-108
Kashif Khan FA17-BBA-075

Submitted To:
Salima Hafeez

Starbucks Corporation: Case Study in Motivation and Teamwork

1. Starbucks’ employees can be seen as a formal team as opposed to an informal team.

Differentiate between ‘formal’ and ‘informal’ teams?
Answer:
Formal Team:
A formal team is a structure team, created for a specific purpose. It will have a leader and everybody
within the team will have a distinct role. At Starbucks the formal group has a formal organizational
structure and involves a flat structure that is Board of Directors, Managers and Subordinates. AT the
Branches the formal team was made up of Managers and Subordinates which both shared common
specialties.

Informal Teams.
An informal team is similar to formal team, but does not have a rank structure as in having a leader or
someone who co-ordinates as task. All team members in an informal Teams where developed to ensure
that communication was effective. They used the groups to deal with matters arising in the company and
communicate the information to the rest of the workers.They differ also in the form of origin, purpose,
size, authority, behavior and communication.

2. The employees of Starbucks retail shops clearly work together well as a team. List
four characteristics of teams that have ‘gelled’ together.
Answer:
 Starbucks managers and supervisor co-work with line staff on the front line which creates a closer
and familiar atmosphere.
 Number of employees at Starbucks are usually from 3-6 so that helps staff to know each other
well and quicker. Any ideas and objectives are treated equally.
 The CEO believes the spirit of the Starbuck is the employees and offer a structure of interaction
to make them put out all the best into their jobs.
 Managers treat employees equally and give them status of partners. This lessen the gap between
managers and employees.

3. “… the numbers of employees are usually from three to six.”

a. Why is the size of team an important factor?
b. What are the benefits to Starbucks of having small teams of staff in each branch?

Answer:
a) Team size of the an organization is derived from task, goals and processes. Larger teams are
harder to manage and sometimes bias to some individuals than others, large teams also pose
difficulties in knowing each member well. Smaller teams most of the times gives better work
quality and outcomes, less conflict, stronger communication and more cohesion. Size is always
important to a manager or supervisor so they can exercise span of control which the amount of
persons an individual can manage given task.

b)
 Lessen the gap of politics in the organization
 Stronger communication amongst staff
 Better quality work and outcomes
 Treat employees of equal importance
 Remove gaps between different positons
 Creates a bridge between the organization strategies and staff development

4. Starbucks achieve success and adhere to the criteria of planning, execution and
review.
a. Explain three issues that need to be addressed in the planning process.
 b. Reviewing is an ongoing process. Explain three things Starbucks can do
continually to ensure goals are being accomplished.

Answers:
1. Three Issues
 Equal Treatment: This means employer may not treat anyone differently. Starbucks managers
rely on treating each employee equally to which all staff are call partners. Managers should treat
employees with fairness, respect equality this will create a friendlier workplace. Starbucks
narrowed the gap between managers and employees by addressing equal treatment in planning
processes which created better work environment
 Listen to Employee: Starbuck allows employees to join in to make and develop plans together
in achieving goals. This needs to be addressed in the planning process by communicating politics
principle between all staff, giving them importance which motivate and encourage them to
concentrate on their task.
 Good Welfare: Starbucks offer employees (formal or in-formal) great deals in welfare politics.
Addressing this in the planning process will motivate employees and give better environment.

2. Three Things
 Motivate Employees: For Starbucks to keep being a rapidly growing organization,
management will keep staff motivated properly. By doing so goals will be achieved and
business will expand
 Communication and teamwork: Communication channels will have to be effective, also
proper between the staff and management. This also foster good team work leading to
organization accomplishing it goals
 Maintain Good Relationship: Customers along with employees are the most important
entities of any business corporation. Starbuck try hard to maintain good relations in-order to
ensure that organization objectives are fulfilled.

5. How does Starbucks manage to keep good relationships between their managers
and employees?
Answer:
Starbucks establishes a well-developed system to keep good relationships between managers and
employees. As mentioned, they use the title “partner” regardless of the level of the worker, which narrows
the gap of bureaucracy. Furthermore, they co-work in the first line to eliminate the distance between
different statuses. Thirdly, the numbers of employees are usually from three to six. Such a small size
helps staff get to know each other easily and deeply. Suggestions and complaints made by employees are
treated of equal importance. In the same way, they have a right to participate in the process of revising
company policies. In that case, each staff member thinks that they also play an important role in company
operating, and they jointly work out the direction of Starbucks. All this gives employees respect and a
sense of participation.

6. Name the five issues that teams should take note of and address if necessary, before
these issues become a crisis?
Answer:
 Strong Customer Values: Starbucks mission is that of providing good workplace atmosphere
and treat workers with respect. Also good relationships with suppliers. These will improve
customer’s values.
 Value-based Service Brand: Brand is very important, it can improve or damage a company.
Starbucks marketed its bands along with creating a warm and comfortable environment.
 Value-based Leadership Service: Starbucks engages in empowerment, corporation and
communication of culture and value.
 Value-based Service Experience: Starbucks offer great environment for customers to be
comfortable while shopping and provide necessary commodities which are needed by customers.
 Strategy to sustain in the business: Starbucks have good relationship with suppliers to
control quality and prices. They focus on social and environment points and engage in business
ethics, mission and code of conduct.

7. The staff at Starbucks are empowered and motivated employees. Briefly explain, in
your own words, the three principles that Starbucks implement in motivating their
employees?
Answer:
Three principles that Starbucks implement in motivating their employees are

 Good Welfare: 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 dental) and vacations.
 Equal Treatment: The managers in Starbucks treat each employee equally and all of the staff
are called ‘partners’, even the supervisors of each branch. In order to narrow the gap between
managers and employees, they also co-work with the basic level staff in the front line. Due to
this, they can maintain a good management system and create a much closer and more familiar
atmosphere,
 Listen to Employees: When employees are involve in developing plans, goals are achieved
easier.

8. Management needs to commit to certain aspects in order to empower employees.

List four of these aspects?
Answers:
In order to empower employees there are few practices that will need implementing that help them to feel
confident, capable and in control of their work.

 Give Rewards: Reward employees for their productivity. They will encourage them to do better
work.
 Develop Competence: Train employees properly to improve on their competence.
 Delegate task: Make employee aware that it is up to them to get job done in other words give
important task.
 Sharing Information: Managers needs to share organizational plans with the employees for
then to be effective and also have sense of purpose within the organization