Performance Management and HRM in the Case of Starbucks Corporation

  • 9 Pages
  • Published On: 03-11-2023

Introduction: Disciplinary issues dealt with

In the disciplinary hearing, Aruna, a middle-aged woman of Indian heritage who has been work for Starbuck Corporation for the past three years, appearing before the disciplinary hearing chaired by District Manager against her wearing a nose ring. Aruna argued the significance of Phul (Stud/ ring traditionally worn by a woman on the left nose) is related to woman reproductive and in honor of the goodness of marriage in Indian culture and every Indian woman, although not forcibly obliged, have their nose pierced. In addition, it is a personal choice in compliance with the section 7 of the Civil rights of 1984 in which the company is violating in baring and discriminating against her (Bond, 2014). On the other hand, the District managing director of Starbuck restated dressing code policy of the company, which prohibited piercing or tattoos of any form on the employees’ facial part of the body.


Performance Management relating to Hard HRM approach

An efficient HRM strategic process sets the basis alignment of the individual employee and companies business goals. By incorporating and linking individual employees’ workforce with the organization goals, objective and missions, both the employee and the business management partakes insightful understanding of the job and its contribution to the organization. Fostering employee gradual development has become one of the essential features of effective organization (McMahon, 2013).

Consequently, clear performance expectations with results-oriented actions help not only the employee but also the business strive to successful performance (Sridhar, 2015). In the case of Starbuck Corporation, an airtight objective, goals and vision “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow,” and having in place strategic plan to achieve them, establishes the organization’s will of getting what need to be done and eliminating redundancy.

On the other hand, engaging employees as partners, holding open forums that answer and mitigating any uprising issues, and outsourcing its coffee from different ethical background worldwide and with annual volunteering communal works, the company ascertains its claim of “One person, one cup and one neighborhood ” on its mission. Further, adopting David Guest theory (1987), behavioral commitment to enhancing organization goals and objective, ensures all personnel are fully on board with any policy and driven towards similar goals.

Culture in HRM Power distance

In the context of organization culture in relation to the treatment of employees particularly from different ethical backgrounds, business management perceives its practice as independent of minority population culture and perception (Al-Sarayrah et al., 2016). The Starbucks managers have to ascribe to cultural diversity, and successfully assimilate the change in society, technology and systems for advancement and business growth. The need to accommodate a wider view of cultural difference undermines the old organization policies such dressing and association policies.

Although the nature of HRM is culturally specific, the management philosophy that is appropriate for one society is not necessarily applicable for another (Al-Sarayrah et al., 2016). Effective HRM is oriented to the success of the organization, the practices that incorporate diverse individuals globe and local is paramount for employee motivation and workability, though this has major struggle for an organization trying to balance the two (Masa’deh et al., 2016). For multi-national companies such as Starbuck, the issue tends to problematic in designing and implementing different practices for instance dressing code in the various regions.

The nature of organizational culture provides captivating understanding into shared and distinguishing individual employee experiences (Abbasiet 2015). For the case of Aruna, the difference in Indian and American cultures brings the conflict between the organization policies and personal beliefs. This difference in culture (Organization and Employee) necessitate the corporation Managers especially international companies to understand different culture system among societies. Furthermore, people should be aware that they belong to a culture whether an organization or traditional and they have a specific way on how things are done (Al-Sarayrah et al., 2016).


Management of human resources has two essential parts, personnel and the operating systems of the organization (Alami et al., 2015), and since the operating system is human factors, human resource can confidently assert as the most important asset of any organization. The business’s success not only depends on its corporate strategies and policies but majorly depended on the efficient use of its human resources (Eneh & Awara, 2017). The management, business managers, and directors must learn how and which methods and tools to use for better performance in recruiting and dealing with staff and subsequently improving their incentives and abilities in undertaking the organizational task (Burma, 2014). For Manager, having that skills is essential for every HRM activity as it enhances business growth.

Naturally, HRM department has a fundamental role in personnel recruitment, performance appraisal, and overseeing the conduct of employees. Having well-trained managers ensures adequate performance at the managerial level that is passed down the organization workforce to the lowest personnel (Mulang, 2015). The staff job demand state of balance through recruitment, orientation, and training offered by the organization. Furthermore, once talented and qualified personnel are recruited to the corporation, management through HR Manager are responsible for optimizing those talents and qualities otherwise could be rendered useless and ineffective (Sridhar, 2015). In proposition to the acquisition of relevant skills and competence by executive staff, prompt personnel satisfaction and hence high quality of service provision.

Training executive staff aids to improve knowledge and decision-making process. In this case, handling culture constraint among the personnel and engaging with different people of varying backgrounds, those skills are necessary. In approaching personal culture, dressing code and general outlook to conform to organization policies and objectives require an in-depth understanding of employee’s perspective (Al-Sarayrah et al., 2016). Therefore, the manager should be well conversant with emotional intelligence skills. Finally, every HR manager should be fully conversant with the practices, potential, and prescriptions on the performance management and its appraisal type systems (Burma, 2013).


The essence of the personnel reward and remuneration strategy is to attract, maintain, and retain employees who are efficient, motivated, and high performing (Burma, 2014). Starbuck is known for its stipulated employee motivation programs and engagements that include free college tuition to both part- and full-time personnel, free weekly coffee for each employee and relating to staff as collaborates. However, despite all of the above, ultimate accolades to long serving staff lifts morale for the other employees.

Employees’ commitment to their jobs is largely depended on the perceived organization support and acknowledgment, which also influences personnel attitudes and satisfaction levels towards work (Ajmal et al., 2015). Employee attitudes describe their actions towards the business and personal objectives and goals. The relation of employees and organization has a significant influence on the personnel skills and knowledge, commitment and organizational outcome (Alami et al., 2015). According to Karen Legge’s in his theory (1995), human being effectiveness can be tapped more effectively by adopting mutual-consistent policies that promote commitment.

A well-established reward system for high-performing, efficient and long-term employees is necessary for the desired level of motivation among the personnel. Extrinsic factors such as pay raise, bonuses, and promotions have a major impact on employees’ motivation (Ajmal et al., 2015). On the other hand, non-monitory recognition like acknowledgment, a delegation of authority, long service certificate award, gifts, and voucher have a vital role in employee morale and therefore organization output. People have personal values according to which they believe is important to them (Eneh and Awara, 2017).

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In reflection to the disciplinary hearing pertaining Aruna wearing conduct, as much as the organization has stipulated policies, dressing and appearance codes, personal and culture background should be the basis of such policies. Employee satisfaction and attitude towards the management and organization policies have a significant influence on their output and thus business outcome. For business growth, an elaborate strategic plan that is inclusive of all the organization players including full and part time employee and executive staff should be well stipulated.

Furthermore, a firm’s culture should integrate all personnel personal beliefs and values, and must accommodate a wider view incorporating the minority without discrimination as each employee brings a unique and vital value to the corporation, no matter how infinitesimal it seems. HRM is tasked with management and exploitation of human resource qualities that can propel the organization to success, which is only achieved if managers possess adequate skills and knowledge on human qualities and skills optimization. Finally, rewards are pivotal feature in employee motivation, and therefore sequential work input, which in return determines the level of business growth and success.

Dig deeper into Performance Management with our selection of articles.


  • Ajmal, A., Bashir, M., Abrar, M., Mahroof Khan, M. and Saqib, S. (2015). The Effects of Intrinsic and Extrinsic Rewards on Employee Attitudes; Mediating Role of Perceived Organizational Support. Journal of Service Science and Management, 08(04), pp.461-470.
  • Alami, R., Sohaei, R., Berneti, A., Younesi, A. and Farnia, M. (2015). The Effectiveness of Human Resource Management on Improving the Performance of Education Staff. International Journal of Business and Social Science, 6(5), pp.251-254.
  • Al-Sarayrah, S., Tarhini, A., Obeidat, B., Al-Salti, Z. and Kattoua, T. (2016). The Effect of Culture on Strategic Human Resource Management Practices: A Theoretical Perspective. International Journal of Business Management and Economic Research (IJBMER), 7(4), pp.704-716.
  • Bond, J. (2014). From civil rights to human rights. Sign Language Studies, 15(1), 10-20.
  • Burma, Z. (2014). Human Resource Management and Its Importance for Today’s Organizations. International Resource Management and Its Importance for Today's Organizations, 1(2), pp.85-94.
  • Eneh, S. and Awara, N. (2017). Strategic human resource management practices and organizational growth: a theoretical perspective. Global Journal of Social Sciences, 15(1), p.27.
  • Mulang, A. (2015). The Importance of Training for Human Resource Development in Organization. Journal of Public Administration and Governance, 5(1), p.190.
  • Sridhar, R. (2015). HRM Process Advantage for Firm Performance. Management and Organizational Studies, 2(3).
  • Masa’deh, R., Almajali, D., Obeidat, B.Y., Aqqad, N., and Tarhini, A. (2016). The Role of Knowledge Management in Enhancing Job Satisfaction. International Journal of Public Administration.
  • McMahon, G. (2013) Performance Management in Human Resource Management. UK: Palgrave Macmillan

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