Discuss about the Leadership Stratagies For a Changing World.
In this study, the main focus is to understand and learn the effective theories and practices of leadership used by Starbucks Company is order to have deep understanding about leadership. Leaders play a very important role in every organization they are the one who shows path to the employees. Leaders are also responsible in achievement of objectives of organizations. In this study, Starbucks Company and its leadership styles will be discussed. Many types of models of leadership will be analyzed used in Starbucks.
This study explores about the different styles of leadership used in an organization Starbucks. It is the world famous coffee company whose leader is Howard Schultz. He is the chief executive officer of Starbucks coffee company. It is found that 2003 was the, most prominent year for Starbucks as their company earned a profit of $ 4.1 billion which is almost twice the amount earned by this company in 2000. The company earned $ 265 million in 2000. In 2006, Schultz was ranked as the 354th richest person n the USA with a net worth of over one billion dollars. On the initial stage, Schultz joined Starbucks Company as executive officers in the year 1987 (Van Knippenberg, and Hogg, 2004).
Leadership strategy refers to the potential of the leaders to communicate the strategic mission and vision of the organization to the employee. In this strategy, the leaders have to motivate and persuade the employees to achieve the organizational goals of the company.
There are two brilliant management strategies Howard Schultz used to build the empire of Star bucks coffee. The first strategy is that Schultz recruited some of the top employees and encourages them to set new operations of Starbuck Company. He also helps the employees to push up their ideas and implement them in the functions and operation of the organization. He has hired employees from Microsoft and Disney to manage the Starbuck team. He is a leader who is very open to the new ideas and always entertains new employees in the organisation (Doh, 2003).
The other strategy is delegation of poor and authority. In this, the manager and leaders divide the work among the employees and give them responsibility to accomplish the respective tasks. The core elements of a well-developed leadership strategy decision (Dutton, 2012).
Talent acquisition- The process of talent acquisition is takes place when Starbucks indentify and acquire most of the skilled and intelligent staff to their organization so that the needs and requirements can meet in future. It is the work performs by the HR of Starbucks whose main focus is to hire the right candidate at a right place and at a right time. For this, they recruit and select only hose candidates who are suitable for the company. They search the employees who are hard working and can cooperate with the talented employees of the Starbucks (Egri, and Herman, 2000).
Talent pipeline- The strategies of Starbucks for the pipeline is to acquire employees form diversified culture. They use different ways to hire the employees like online portals, workforce trainings, hiring of youth from summer employement, etc. the motive is to hire right talent in the organization. This company provides opportunities to build a strong relationship at the time of hiring so that he candidates become familiar with the company. Starbucks give training program to the youth people so that they can explore their career options. Many types of leadership workshops are organized by this company to develop leadership quality in the candidates (Detert, and Burris, 2007).
Talent sustainability- It refers to the ability of the company to hire, attract and sustain talented employees in the organization. The aim of talent sustainability is to increase the retention ratio of the company; Starbucks is a company which is highly sustainable to their employees. The strategies and policies of this company is to attract group of young and fresh talent in their organization by providing them attractive salary and facilities. They use innovative approaches to hire the candidates that can work for the longer period of time (Vera, and Crossan, 2004).
Leadership practices- The leadership practiced in Starbucks is servant leadership. It is one of the most impressing practices as it states that leaders are servants. It is due to the fact that leaders are not the individuals who order, punish and scold the employees. These terms are related to the manger but not to the leaders. A leader is the one who get the work done with motivation and satisfaction of the employees (Waldman, Ramirez, House, and Puranam, 2001).
The motive of leadership practice is to develop relations and trust between the employee and the employers. Howard Schultz is one of the most effective leaders of Starbucks as he acts as a bridge between the company and the employees. It is also defined that the Starbucks Company can achieve its five term goals through the effective applicability of business strategy and practices with the leadership styles of Howard Schultz. Leadership practices are relevant for all the organization to maintain a balance between the goals of the organization and the goals of the employees. Leaders are the people who are responsible in achieving these goals by applying those practices (Dent, Higgins, and Wharff, 2005).
The leadership styles used in Starbucks Company is transformational and democratic style of leadership which helps in easy application of business strategy of the company. Democratic style of leadership is termed as types of leadership in which the leaders allow the employees and staff members to shares the views and opinions of them. In this organization, the views of the employees are taking into the consideration by the managers and the leaders. The employees are allowed to exercise he inputs on the organization. The ultimate decisions are then taken by Howard Schultz as he is the leader of Starbucks company and accountable for each and every step takes place in the company (Gardner, Cogliser, Davis, and Dickens, 2011).
The other type of leadership styles used in Starbucks is transformational leadership that is a simple leadership style. It is generally based on the advancement takes place on the higher levels of the motivation and oral of the employees. In this leadership style, the flowers and leaders both are related and bound to each other by the strength present in vision and personality of the leaders like Howard Schultz. The leaders in this style are very passionate and try to leave a positive impact on the followers to gain the trust and respect of their followers (Dent, Higgins, and Wharff, 2005).
This type of leadership style is a clear mixture of democratic styles of leadership and autocratic style of leadership. As in this style, the leaders have to influence the followers to achieve the same goals which are an autocratic leadership and at the same time, leaders ask the employees to speak and hare their own opinions that can be contributed to the company (Wang, et.al 2005). The concept of transformational leadership has a great impact on Starbucks as its helps the employees in achieving the business strategies framed by the company.
It helps the employees to face the challenge and also encourage them to show their creativity in the Starbucks so that the employees can come up with fresh talent and use their creativity in Starbucks.
The leaders who are transformational in nature lie Schultz provide support and encourage the employees to have effective communication and relation among each other. He believes that there must be an involvement between the flowers and leaders so he listens to the employees, provide them direction, recognize their contribution, etc. (Creswell, 2013)
The leaders of Starbucks are very clear with the mission and vision so they are able to communicate them and motivate them to perform better and to achieve company’s goal. He tries to inspire the employees so that they can realize their value to the organization and work with more satisfaction (Witziers, Bosker, and Krüger, 2003).
Schultz acts as a role model for all the employees of Starbucks and the employees trust and respect him. It helps the employees to follow the right path and guidance so that they know their responsibilities and roles in the organisation (Srivastava, Bartol, and Locke, 2006).
Schultz Howard uses a combination of business strategies of Starbucks and the leadership styles of adopted by him. The business strategy of Starbucks is to expand the organisation by opening more stores. In order to achieve these business strategies, Howard always use above leadership styles. It is clear that Howard Schultz is a leader whose style of leadership revolves around the inspiration and motivation of the employees of Starbucks. He always tries to grasp the feedbacks of the employees to bring more effectiveness. He also allows advice and encourages the employees through making personal calls and also emails to them. Howard Schultz goals of leadership are through the applicability of empowerment, entrepreneurship, quality of service, performance, etc. In the Starbucks Company, Howard Schultz is a leader who gave opportunity to the employees to make decisions, and also provide them required flexibility so that they can choose their own working hours. It helps to motivate the employees to work better. Ultimately, the goals, approach and ideals of Schultz is to make the leadership of Starbucks the most effective force of the company to achieve its business strategy (Gardner, et.al. 2010).
It is observed that recently, Starbucks Company has completed their planning process for the senior leadership team and their new focus is to achieve FY16 plans for the operations. The new priorities of the leaders for the upcoming years are the new goals that will be achieved by allocating the human resource against those desired goals (Chua, and Banerjee, 2013). Some of the new plans framed by the leaders in order to achieve goals are-
This is one of the new innovations taken places in Starbucks that will help the company to reach to higher levels in the international markets. In this, the pan is to export the roastry to the international markets.
The main focus of leaders of the company is to achieve the loyalty of the customers for a longer period of time. This can be done when the company delivers goods and services that are liked by all the customers present in the global markets. So, the leaders are making policies so that these goals can be attained (Jean, Normore, and Brooks, 2009).
With the dynamic environment and technological advancement, it has become very relevant for Starbucks to acquire updates technology in the company. This required training and development of the employees so that they can be aware about the use of the same. Howard Schultz always tries to provide required training to their employees to make them familiar with the latest technology (Piwowar, Becich, Bilofsky, and Crowley, 2008).
Overall, the report suggests that there should be a mixture of modern styles of leadership as well as traditional methods. Sometimes, there is a requirement of autocratic style of leadership which must be used by Howard Schultz so that he can control the performance of the employees. He must motivate the employees so that leadership qualities can be developed within them and they worked with self motivation and control. The leaders must develop charisma and inspirations in the employees so that in future Starbucks Company can have more leaders and fewer followers (Avolio, and Yammarino, 2013).
Conclusion
This section is to provide the conclusion to the report and also. It is observed that various types of leadership styles help to achieve the motivation and satisfaction of the employees. It can be clearly highlighted by the leadership style of Schultz. In this study, various types of leadership styles discussed that are used in Starbucks company. Schultz is one of the most effective leaders who act as a bridge between the company and the employees. It is also defined in this report that how the Starbucks company can achieve its five term goals through the effective applicability of business strategy with the leadership styles of Howard Schultz. It is very relevant for all the organization to maintain a balance between the goals of the organization and the goals of the employees. Leaders are the people who are responsible in achieving these goals. Schultz is a leader who uses high understanding of leadership styles in achievement of Starbucks objectives.
References
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