STARBUCK FALLS SHORT ON VOW TO MAKE WORKERS’ SCHEDULES FAIRER

GROUP ASSIGNMENT – CASE STUDY

1) Describe the term fair process and how it affects people’s attitude and behaviour.

Fair process is a concept that builds execution into strategy by creating people’s buy-in up
front. When fair process is exercised in the strategy formulation phase, people trust that a
level playing field exists, inspiring voluntary cooperation during the execution phase.

Employees do not trust managers to make good decisions or to behave with integrity,
their motivation is compromised. Their distrust and its attendant lack of engagement is a huge
and unrecognized problem in most organizations. This issue has always mattered, but it
matters now more than ever, because knowledge-based organizations are totally depends on
the commitment and ideas of their employees. (Blue Oceans & Shift Tools)

Neither integrity nor good judgment can be magically conferred on all the managers
in an organization. It is possible for top executives to create processes that help keep
managers honest and it also help build employees’ trust. W. Chan Kim and Renée Mauborgne
describe one such process, which grew out of their research into the links between trust, idea
sharing, and corporate performance. Their central finding is that employees will commit to a
manager’s decision even one they disagree. If they believe that the process the manager used
to make the decision was fair. It sounds simple, but most organizations do not practice fair
process. Because they don’t, they never know what they have lost in the way of ideas.

Fair process turns out to be a powerful management tool for companies struggling to
make the transition from a production-based to a knowledge-based economy, which the value
creation depends high on ideas and innovation. Fair process influence attitudes and
behaviours critical to high performance which builds trust and brainstorm ideas. With it,
managers can achieve even the most difficult goals while gaining the voluntary cooperation
of the employees affected. Without fair process, outcomes that employees might favor can be
difficult to achieve.

Fair process is very important to be implemented in any organizations because it

affect employees working attitude. The best and fair management will help in increasing the

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work performance and organization’s profit as well. (Fair Process: Managing in Knowledge
Economy, 2003)

2) 3E Principles of fair process that can be implemented at Starbuck.

There are three elements that define this fair process term which can be implemented at
Starbuck includes engagement, explanation and expectation clarity. Fair process is a concept
developed by W. Chan Kim and Renée Mauborgne that builds execution into strategy by
creating people’s buy-in up front. When fair process is practised in the strategy formulation
phase, people trust that a level playing field exists, inspiring voluntary cooperation during the
execution level. (Blue Oceans & Shift Tools)

The first element is engagement means involving individuals in the strategic decisions
that affect them by soliciting their input and allowing them to refute the merits of one
another’s ideas and assumptions. Engagement communicates management’s respect for
individuals and their point of view. The result is better strategic decisions by management
and genuine commitment from everyone involved in execution. The best strategy is allowing
the employees to give their point of view.

The second is explanation which means that everyone involved and affected should
understand why final strategic decisions are made. An explanation of rationale engenders
confidence among employees that managers have considered their opinions and have made
decisions impartially in the overall interest of the company, even if their own ideas have been
rejected. It also serves as a powerful feedback loop to enhance learning. Management team
should do well explanation to the employees so they can understand and do their job part
properly.

The third is expectation clarity. It requires that after a strategy is set, managers clearly
state the new rules of the game. Although the expectations may be demanding, employees
know up front the standards by which their work will be judged and the consequences of
failure. When people clearly understand expectations, political jockeying and favoritism are
minimized, and people can focus on executing the strategy rapidly. Nothing goes well at first,
everything needs time to adapt well.

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 There are some ways that can be done to apply this fair process. For company’s
success employees are vital. They are public face of company and their hands passes through
every single dollar of sales. Employees can break or make a company. If an employee has a
positive interaction with customer, definitely customer will be come back. Vice versa,
customer is gone. It’s important for Starbucks to hire and recruit the right person, train well,
motivate and retain them. Therefore, the company should give satisfying jobs, appropriate
work schedules, a positive work environment and fair compensation and benefits.

Training is essential for organizational development and success. With proper training,
an employee will be more efficient and productive. There are 4 training basics which are;

1.Training is given to new applicant. It teaches them with basic organizational knowledge.
Such as, goals, rules and regulations as well as vision.

2. The existing employees are retaught to gather their knowledge.

3. If any change technology, training is given to handle with those changes.

4. Trainings are given when employees get promoted to share the responsibilities.

Every partner or barista hired for a retail job has to undergo intensive training before
working. The training class topics even include coffee history and customer service. Their
workshop motto is “Brewing the Perfect Cup.” Basic Starbucks retail skills are taught too.
Barista are even taught to satisfy customer special requirements. Everyone is trained and
three guidelines for interpersonal skills includes: (1) Increase self-esteem, (2) Always
attentive and (3) Ask for assistance.

Trainees also have to attend intensive classes. Their intensive training consists of
knowledge of store operations, procedures, supervising people. Qualification to be a trainee
must have experience or at least store managers. Part of their main objectives was to enforce
the company’s values, principles, and even knowledge of Starbucks history and coffee. Every
staff need to learn values especially trust and fair values in working area.

Part time and full time staff are enjoying the benefits. A flexible, work-life balance,
health insurance, vision insurance and dental is being offered to his employee. He offered the
elderly care program for their parents and company shares with the name of ‘BeanStock’ to
employee. CUP Fund is a program that helps employees with financial support during times
of hardship or crisis and a Total Pay package which offers discretionary bonuses. To motivate

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the employee these incentives were design so they can satisfy customer and Starbucks. It also
helps Starbucks to retain competent, high performing employees and high employee
satisfaction rate. Schultz’s rationale was that they will treat your customers well if you treat
your employees well.

Starbucks succession due to many factors. Firstly, Starbucks hires good employees.
Employees are important; they can break or make a company. Therefore Starbucks only hire
and recruit the right person, train them well, motivate them to try their best and retain them to
gain competitive advantage, Starbucks deploy Human Resource Management to attract,
develop and retain only good and suitable employees like other companies.

3) Use of hot spot and cold spot practice at Starbuck and how it can be applied in this
company.

Hot or cold spots in restaurant s or cafe need to be controlled for guest comfort,
employees productivity and turnover rates, and energy cost savings. Some reasons of hot and
cold spot affect restaurant or café are pressurization. Air pressure imbalance may cause hot or
cold air to hang around certain zones or causing hot kitchen air to flow into the dining area.
This practice can be improved by doing well programming for optimal outdoor air intake
which will affect indoor air quality, air flow and air pressure.

Hot or cold spots in restaurants can occur in the winter months too. For example,
some restaurant owners install separate heaters in entryways and near large windows to keep
spaces warm. A temperature imbalance in an entryway can also affect the plenum
temperature. This is an issue for some restaurants that have water lines tracking through
ceilings to soda machines which is also common in Starbuck cafe.

There are 7 main reasons hot or cold spots affect your restaurant or café; (7 Reasons Why
you Still Have Hot and Cold spot at your Restaurant, 2017)

1. Outside air optimization: If your HVAC system is not programmed for optimal
outdoor air intake, several factors that affect comfort in your restaurant will be
affected, including indoor air quality, airflow and air pressure.

2. Which brings us to pressurization: An air pressure imbalance may cause hot or cold
air to hang around certain zones in your restaurant, or cause hot, kitchen air to flow

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 into the dining area. A negative pressure balance in your restaurant may cause outside
air to come rushing in whenever a door opens or closes.

3. Solar gain: Many restaurants have large south- or west-facing windows. It's nice to
be able to keep the view open for patrons and to allow people to see inside the
restaurant from the street, but the heat from the sun is sometimes just too much. Most
HVAC systems cannot compensate for the heat generated at tables next to the
windows without causing the rest of the restaurant to put in an icebox.

4. Airflow balancing: All buildings are dynamic, especially restaurants, which

experience varying numbers of patrons throughout each day and have a kitchen
environment to maintain. As the sun moves from east to west, the dynamics of the air
in your building change in direct proportion to the sun's intensity. Restaurant hot or
cold spots are influenced by the ability of the HVAC system to funnel and balance air
appropriately throughout the day to compensate for the position of the sun and the
local weather effects.

5. Diffuser positioning: HVAC air diffusers are those square vents you see in the
ceiling. They are the end of the line for the supply air flowing from your air ducts.
Diffusers and air temperature sensors should be positioned strategically throughout
your restaurant, based on the dynamics of your building and business. If diffusers and
sensors are not optimally positioned, a dynamic airflow balancing system may be able
to prevent most hot or cold spots in the space, but it is important to be strategic with
placement from the outset of HVAC system design.

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 6. Equipment energy loads: Kitchen equipment such as refrigerators, stoves, fryers,
ovens and grills produce a large amount of heat. If that heat is allowed to escape into
the dining area instead of up and out exhaust vents, diners will be in for an unpleasant
experience. Even a small amount of hot air transfer from the kitchen can create
discomfort at tables close to the kitchen.

7. Equipment sequencing: Many restaurateurs believe their exhaust fans and makeup
air (MUA) units are synchronized at all times, but we have found this to rarely be the
case. Out-of-sync HVAC equipment in a restaurant easily causes pressurization issues,
which lead to temperature imbalances and unwanted odors seeping from the kitchen
to the dining room.

This hot and cold spot can be apply to starbuck in many ways. One of them is decide
place that have to be hot or cold spot areas. This condition will allows customer to choose
their seats based on their comfort. Other than that, it can be apply in any kind of weather,
whether it is summer or winter days. This condition will attract more customers as well
increasing in product sales. Comfortable dining area allow customer to do their business or
even me-time in a pleasant way.

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REFERENCES

Blue Ocean Strategy & Shift Tools. (n.d.). Retrieved 7 May, 2019, from Blue Ocean:
https://www.blueoceanstrategy.com

Fair Process: Managing in Knowledge Economy. (January, 2003). Retrieved 5 May, 2019,
from Harvard Business Review: http://host.uniroma3.it

7 Reasons Why you Still Have Hot and Cold spot at your Restaurant. (19 July, 2017).
Retrieved 5 May, 2019, from 75F: https://www.75f.io