Leadership

Leader born or made.....

Are leaders born or made? This has been a great debate among people, different people have different opinions, some people say leaders are born, while others say leaders are made. In my opinion, I say both, leaders are born then made. I feel some people are just born with leadership qualities in them, and they need to further develop their abilities through effort and experience. Natural ability can only take you so far, so leaders who don't make the effort, will eventually be overtake by those who put a lot of effort to develop and refined their leadership skills.

My leader

There are many great leaders in the business world like Steve Jobs, Bill Gates, Tim Cook, Ray Kroc, among all these great leaders, I decided to choose to do about Howard Schultz. In 1987, he purchased Starbucks and became CEO and chairman of the company. In 2000, he resigned as Starbucks's CEO. In 2008, he returned to head the company.

Leadership Style

Leadership style is the manner and approach of providing direction, implementing plans, and motivating people. There are 3 leadership styles, each with their own advantages and disadvantages:

1)   Autocratic:

Autocratic style is something similar to dictatorship, where the leader has full control over the followers or workers. Nobody can question their decisions, whatever they say goes. They plan out everything and order their subordinates to work according to their rules.

Advantages:

• The leader feels in control of the situation
• With an autocratic leader, people know what to do and what to expect
• Enables fast decision-making

Disadvantages:

• People feel oppressed and frustrated
• Too much dependence on leader
• Fear of punishments can lead to poor performance
• Allow no scope for individual contributions from group members

2) Democratic:

The democratic style encourages employees to play a part in the decision making process. Democratic managers keep their employees informed about everything that affects their work and shares decision making and problem solving responsibilities. This style requires the leader to be a coach who has the final say, but gathers information from staff members before making a decision.

Advantages:

• Develops a greater feeling of loyalty and commitment to the team from members who play a part in decision-making
• Leader feels more supported by team members
• Contributions are encouraged from team members with a wider range of skills and experience
• Participation can increase motivation

Disadvantages:

• Decision-making can be slow
• Leader may not agree with decision taken but feel obliged to accept them
• Team members may not have sufficient knowledge or experience to make decisions

3) Laissez-faire

Laissez faire leaders try to give the least possible guidance to subordinates, and try to achieve control through less obvious means. They believe that people excel when they are left alone to respond to their responsibilities and obligations in their own ways.

Advantages:

• Encourages loyalty and commitment to the team by giving members responsibility for their own actions
• Allows members to use their own skills to the full

Disadvantages:

• No real direction
• Poor co-ordination of team could lead to duplication of effort or working at cross-purposes
• May give rise to conflict within the team

Howard Schultz is more democratic than anything, Employees are allowed to exercise a certain amount of control through Schultz's empowerment philosophy, but Schultz is anything but a laissez-faire leader. The systems that are in place still permit Schultz to exercise control. According to the leadership grid of Blake and Moukin, Schultz would be a team manager. He exemplifies concern for both production and people, yet remains flexible and open to change. This is true for the company that has developed a breakfast menu, introduced new drinks, and brought WIFI to stores. The team is united by their common interest and independence.

My admiration

I admire Howard Schultz for two things, one, his compassionate heart and courage, second, how he save Starbucks from recession. In 1997, Howard received news about 3 Starbucks employees at the Georgetown store in Washington, DC had been shot and killed. Instead of calling lawyers and Starbuck’s public relation people, Schultz flied down to Washington and obtain the addresses of the victims, He went to each of their homes, told their families the news. This shows he is an admirable and respectful leader, I wish I could work for someone like this when I am older.

Howard Schultz resigned as CEO in 2000, and returned in 2008. During his absence, the stock did hit a then all-time high of just under $40 in November 2006. But by early 2008, the stock had fallen to about $18.

In early 2007, Schultz wrote a memo to then-CEO Jim Donald about the company's slow demise. A few months later, the board ousted Donald and brought Schultz back in. By March 2009, Starbucks shares had plunged to barely above $8.The stock hit an all-time high Thursday of just below $76. So Starbucks has surged more than 800% from the bear market lows.

What is even more impressive, He achieved all this while refusing to cut back on employees’ health insurances, because Schultz thinks that if company's workers are happy, then that should also lead to happy consumers.

Organizational Structure

Theory

The organizational structure for an organization describes the different levels of responsibility, and how decisions are put into practice. This structure can be represented by an organisation chart. An organization chart shows the chain of command – the way in which decisions are passed up or down the organization, from on level - the next- and the span of control – the number of employees for whom a person at a higher level has direct responsibility. A tall organization is one in which there is a long chain of command. Different levels of the organization are known as hierarchy. A flat organization has a short chain of command.

Starbucks Organization Structure

I feel Starbucks’ organization structure is good, or how else are they so successful, if they don’t have a good organizational structure, I won’t make any changes as right now Starbucks are going strong, so as people say, what isn’t broken, don’t fix it. Starbucks organizational structure is a functional structure. The major functions such as production, marketing and accounting are all grouped internally, individual functions report to the CEO. Within a functional structure, Starbucks is able to have enhanced coordination and control over the company and more centralized decision making. Some of the more difficult tasks with a functional structure is unifying performance standards.

Recruitment

Theory

Recruitment is the process of finding and hiring the best-qualified candidate, for a job opening, in a timely and cost effective manner. A business must hire the right employees or the business will not achieve its aims effectively. Recruitment is essential in every business and it can be broken down to number of steps:

1. Notification of the vacancy
2. Constructing  job description
3. Writing a job specification
4. Finding candidates
5. Sending out application forms and job details to interested candidates
6. Considering applications when they are received
7. Shortlist the most suitable for interview
8. Interview the candidates
9. Selecting the most suitable candidate
10. Making an offer of employment to the selected candidate
11. Issuing a contract of employment.

Starbucks’ recruitment

Starbucks has a unique way of recruiting, they realised that candidates were tired of the black hole applicant tracking system our recruitment process had become, now they use the social network to recruit and the man who is responsible for the program, Jeremy Langhans, head of talent attraction at global travel company Expedia, says engaging with candidates through mobile devices is the way of the future for all recruiters. This has been very successful, as the first year the program put into effect, the Starbucks Jobs Twitter account attracted 20,000 followers. The issue is that if the issue was we were saying ‘no’ to job applicants and assumed they’d still go and buy a coffee from us,” Langhans says. “We had to balance this negative process with something more positive. Candidates are also customers. They came up with a solution, if someone applied and didn’t get a job, we give them advice, even if it’s just broad stuff like how they should apply three months down the road.

Starbucks webpage for applying a job: http://www.starbucks.com/careers

Starbucks Job Description

This is a job description for the position barista which I copied from the Starbucks website:

Job Description

Job Summary and Mission

This position contributes to Starbucks success by providing legendary customer service to all customers. This job creates the Starbucks Experience for our customers by providing customers with prompt service, quality beverages and products, and maintaining a clean and comfortable store environment. Models and acts in accordance with Starbucks guiding principles.

Summary of Key Responsibilities

Responsibilities and essential job functions include but are not limited to the following:

• Acts with integrity, honesty and knowledge that promote the culture, values and mission of Starbucks.
• Maintains a calm demeanor during periods of high volume or unusual events to keep store operating to standard and to set a positive example for the shift team.
• Anticipates customer and store needs by constantly evaluating environment and customers for cues. Communicates information to manager so that the team can respond as necessary to create the Third Place environment during each shift.
• Assists with new partner training by positively reinforcing successful performance and giving respectful and encouraging coaching as needed.
• Contributes to positive team environment by recognizing alarms or changes in partner morale and performance and communicating them to the store manager.
• Delivers legendary customer service to all customers by acting with a customer comes first attitude and connecting with the customer. Discovers and responds to customer needs.
• Follows Starbucks operational policies and procedures, including those for cash handling and safety and security, to ensure the safety of all partners during each shift.
• Maintains a clean and organized workspace so that partners can locate resources and product as needed. 
• Provides quality beverages, whole bean, and food products consistently for all customers by adhering to all recipe and presentation standards. Follows health, safety and sanitation guidelines for all products.
• Recognizes and reinforces individual and team accomplishments by using existing organizational methods. 
• Maintains regular and punctual attendance

Summary of Experience                                                  

•  No previous experience required 

Basic Qualifications

• Maintain regular and consistent attendance and punctuality, with or without reasonable accommodation
• Available to work flexible hours that may include early mornings, evenings, weekends, nights and/or  holidays
• Meet store operating policies and standards, including providing quality beverages and food products, cash handling and store safety and security, with or without reasonable accommodation
• Engage with and understand our customers, including discovering and responding to customer needs through clear and pleasant communication
• Comply with a dress code that prohibits displaying tattoos, piercings in excess of two per ear, and unnatural hair colors, such as blue or pink
• Prepare food and beverages to standard recipes or customized for customers, including recipe changes such as temperature, quantity of ingredients or substituted ingredients
• Available to perform many different tasks within the store during each shift

Required Knowledge, Skills and Abilities

• Ability to learn quickly
• Ability to understand and carry out oral and written instructions and request clarification when needed
• Strong interpersonal skills
• Ability to work as part of a team
• Ability to build relationships

I feel that the recruitment is fair, equal, and equal opportunities, because the description is reasonable.

Training

Theory

Training is often needed to do achieve the needs listed below. These needs can be long term or short-term

• Introduce a new process or equipment
• Improve efficiency
• Decrease supervision needed
• Improve the opportunity for internal promotion
• Decrease the chance of accidents

Employees should know the benefits of training for them to take it seriously. Here are some objectives of training:

• Increase skills
• Increase knowledge
• Change attitude, raise awareness

There are three main types of training:

1) Induction training:

• Introducing a new employee to their business/management/co-workers/facilities.
• Lasts one to several days

2) On-the-job training:

• Employees are trained by watching professionals do a job
• Only suitable for unskilled and semi-skilled jobs
• Cut travel costs
• The trainee may do some work
• The trainer’s productiveness is decreased because he has to show things to the trainee
• The trainer’s bad habits can be passed to the trainee

3) Off-the-job training:

• Workers go to another place for training
• Methods are varied and usually more complex
• Usually classroom training
• Employees still work during the day
• Employees can learn many skills

Starbucks’ training

Every barista hired received at least 24 hours training in the first two to four weeks. The training is off-the-job which includes classes on coffee history, drink preparation, coffee knowledge, customer service, and retail skills, plus a workshop called "Brewing the Perfect Cup." Baristas are train in using the cash register, weighing beans, opening the bag properly, capturing the beans without spilling them on the floor, holding the bag in a way that keeps air from being trapped inside, and affixing labels on the package exactly one-half inch over the Starbucks logo. Beverage preparation occupied even more training time, involving such activities as grinding the beans, steaming milk, learning to pull perfect shots of espresso, memorizing the drinks’ recipes, practicing making drinks, and learning how to make drinks according to customer desires.

There are sessions on how to clean the milk wand on the espresso machine, explain the Italian drink names to customers, sell an $875 home espresso machine, make eye contact with customers, and take personal responsibility for the cleanliness of the coffee bins. Everyone was drilled in the Star Skills, three guidelines for on-the-job interpersonal relations: (1) maintain and enhance self-esteem, (2) listen and acknowledge, and (3) ask for help. And there are rules to remembered

Management trainees attended classes for 8 to 12 weeks. Their training go much deeper, which explains about the details of store operations, practices and procedures as set forth in the company's operating manual, information systems, and the basics of managing people. Starbucks' trainers were all store managers and district managers with on-site experience. One of their major objectives was to ingrain the company's values, principles, and culture and to impart their knowledge about coffee and their passion about Starbucks.

Motivation

Motivation is about the ways a business can encourage staff to give their best .Motivation is essential in the business world, below is a table difference between workers who are not motivated and workers who are motivated:

Workers who are not motivated	Workers who are motivated
Produce fewer products	Work hard – increasing productivity
Be more careless – so more accidents	Be enthusiastic and offer ideas
Be slow to react to requests from management	Better customer service – increasing sales
Arrive late	Arrive early and take few days off
Produce poor quality products/ services	Be loyal – reducing labour turnover costs
Have high rates of absenteeism
Not stay long – creating high staff turnover

There are 4 motivational theories:

1) Rewards

Financial	Non-financial
Piece rate pay	Job enlargement
Performance	Job rotation
Commission	Team work
Profit share	Job enrichment
Fringe benefits	empowerment

2) Manager

Manager
Interpersonal	Informational	Diaconal
Figure head	Monitor	Entrepreneur
Leader	Disseminator	Disturbance handler
Liaison	Spokesperson	Resource locator
		Negotiator

3)   3) Maslow’s hierarchy of needs

     4) Hertzberg hygiene factor

Starbucks’ motivation

Schultz's approach to motivation is consistent with his value system. It is a hierarchical structure  based on positive reinforcement and a team approach. Schultz believes that working hard will lead to good results for oneself and for others. 

Schultz believes that by empowering his employees he will get the most out of them. Giving people freedom in their work will get the best results. Treating employees benevolently shouldn't be viewed as an added cost that cuts into profits, but as a powerful energizer that can grow the enterprise into something far greater than one leader could envision. With pride in their work, Starbucks people are less likely to leave. Our turnover rate is less that half the industry average, which not only strengthens our bond with customers. But the benefits run even deeper. If people related to the company they work for, if they form an emotional tie to it and buy into its dreams, they will pour their heart into making it better. When employees have self-esteem and self respect they can contribute so much more: to their company, to their family, to the world." He gives all employees, including part-time, health benefits.

This way of motivation would motivate me, because this is mention in Maslow’s hierarchy of needs, self-esteem, everyone want to feel appreciated, and Howard use that to motivate his employees.

Corporate culture

The definition of corporate culture and I quote, ‘The beliefs and behaviors that determine how a company's employees and management interact and handle outside business transactions. Often, corporate culture is implied, not expressly defined, and develops organically over time from the cumulative traits of the people the company hires. A company's culture will be reflected in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions, treatment of clients, client satisfaction and every other aspect of operations.’

Starbucks’ corporate culture

Starbucks write about their culture on their website and this is what is written:

We’re committed to upholding a culture where diversity is valued and respected. So it’s only natural that as a guiding principle, diversity is integral to everything we do.

Our company-wide diversity strategy focuses on four areas: partners, customers, suppliers and communities:

·         Partners (our employees) – We seek out and engage partners who are as diverse as the communities we serve. 

·         Customers – We extend the Starbucks Experience to all customers, recognizing and responding to their unique preferences and needs. We aim to provide an exceptional customer experience by connecting with our customers in a culturally relevant way. 

·         Communities – We support and invest in local neighborhoods and global communities through strategic partnerships and economic development opportunities that deepen our ties in the communities where we do business. 

·         Suppliers – We are a trusted and welcoming company for suppliers. Through our supplier diversity program, we work to increase our business relationships with minority- and women-owned suppliers.

Starbucks is dedicated to creating a workplace that values and respects people from diverse backgrounds, and enables its employees to do their best work. We honor the unique combination of talents, experiences and perspectives of each partner, making Starbucks success possible.

As such we expect our partners to act with a spirit of kinship, tolerance and humanity toward all customers making our stores welcoming to everyone.

Bibliography

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Dent, Georgina. Starbucks tweets a new recruitment experience. 18 October 2012. http://www.brw.com.au/p/sections/fyi/starbucks_tweets_new_recruitment_8CwwesgFWB4QuHdiJYvrfK. 27 September 2013.

N.A. Diversity and Inclusion. n.d. http://www.starbucks.com/responsibility/community/diversity-and-inclusion. 28 September 2013.

—. Diversity at Starbucks. N.D. http://www.starbucks.co.uk/responsibility/diversity. 29 September 2013.

—. Howard Schultz. N.D. http://f09-mana3001.wikispaces.com/Howard+Schultz. 27 September 2013.

—. motivation. N.D. http://www.businessdictionary.com/definition/motivation.html. 28 September 2013.

—. Starbucks Corporation. N.D. http://www.mhhe.com/business/management/thompson/11e/case/starbucks-2.html. 27 September 2013.

Riley, Jim. Theories of Motivation. 23 September 2012. http://www.tutor2u.net/business/gcse/people_motivation_theories.htm. 28 September 2013.

Robin, Myriam. How Starbucks used social media to humanise recruitment. 6 November 2012. http://leadingcompany.smartcompany.com.au/technology/how-starbucks-used-social-media-to-humanise-recruitment/201211052984?displaypage=start. 27 September 2013.

Stallard, Michael Lee. Howard Schultz’s Connection and Leadership. 28 July 2011. http://site.successtelevision.biz/leadershipskills/index.php/uncategorized/howard-schultzs-connection-and-leadership/#.UkjT9YbIudw. 27 September 2013.

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