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Example: Starbucks Performance Appraisal

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Example: Starbucks Performance Appraisal

Starbucks is American company that is the largest coffeehouse chain in the world.
Working at big company, people some time doesn’t have the idea are they doing a good
job at their workplace.  One of the ways of knowing that is to do a performance
appraisal. There are two stages to do a performance appraisal. First is to measure the job
performance, second is to share the feedback with the employees. They using a customer
comment card which is an survey question about their thought on  employees and
services, and the products. Starbucks in Jakarta, managers usually gives bonuses to
employees that have scored great—more than 70 out of 100 in the customer comment
card.
After doing so, company must provide a feedback, training as well as a reward to their
workers. The feedback given is a 360-degree feedback. It means that both lower level
manager (baristas and cashiers) and middle level manager (store manager) give feedbacks
to each other. In one Starbucks booth, there are only nine people working. So, they have
tight relationship and wont mind giving feedbacks to improve each other’s performances.
The reward given is called a compensation. As an example, Starbucks gives a bonus to
workers that were given the “Employee of the Month” reward. Here at Starbucks,
employees are given something called budget each month. A budget is a target of how
much money they make in their work shift. If they made enough sales to reach their
target, there will be no money cut from their salaries. However, if their sales is higher
than the target, the difference between the amount of their sales and the target will be
their bonus—which they term incentive.
In conclusion, Starbucks Coffee Company are really good at applying the performance
appraisal methods to their human resource management. 

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